Southern District of Florida
Press releases recorded for this federal judicial district.
Thirteenth Defendant Pleads Guilty in Transnational Scheme to Defraud U.S. ConsumersRead the Press Release
A Peruvian national pleaded guilty yesterday for his participation in transnational mail and wire fraud schemes that targeted vulnerable United States consumers.
According to court documents, David Cornejo Fernandez, 36, of Lima, Peru, facilitated fraud schemes that stole millions of dollars from Spanish-speaking victims across the United States. Cornejo provided Internet-based telephone lines, caller-ID spoofing services, and recording capabilities to a network of fraudulent call centers based in Peru. Relying on Cornejo’s services, those call centers defrauded and extorted thousands of Spanish-speaking victims by falsely threatening them with court proceedings, fines, and other consequences. Cornejo further provided the call centers with the technology – and, at times, the training – to convincingly impersonate federal agents, police officers, attorneys, court personnel, and other government officials in order to extort payments from victims. Cornejo was extradited from Peru in November 2024 to face charges related to the scheme.
Cornejo is the 13th defendant to be convicted in connection with a $15 million transnational fraud scheme that defrauded and threatened Spanish-speaking U.S. consumers. These fraudsters falsely claimed the victims would suffer severe legal, financial and other consequences if they did not pay for English-language products. Collectively, the scheme was responsible for defrauding more than 30,000 United States consumers, many of whom were vulnerable.
“The Department of Justice is committed to protecting vulnerable U.S. consumers from fraud, especially schemes carried out by criminals impersonating U.S. government officials,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “Those who target American consumers from abroad will be identified, prosecuted, and held accountable for their crimes. We thank the Republic of Peru for their assistance in arresting and extraditing this defendant and others involved in these scams.”
“This guilty plea marks another important victory in our relentless pursuit of transnational fraudsters who impersonate U.S. government officials to exploit vulnerable Spanish-speaking communities across the United States,” said U.S. Attorney Hayden P. O'Byrne for the Southern District of Florida. “David Cornejo Fernandez enabled a sophisticated network of call centers that used technology to impersonate government officials, instill fear, and steal millions from hardworking individuals. Today's outcome sends a clear message: we will work hand-in-hand with our international partners to dismantle these schemes, extradite those responsible, and ensure they face justice in U.S. courts, no matter how far they try to hide”
“The defendant thought he could hide behind borders and phone lines, but the Postal Inspection Service is relentless when it comes to protecting American consumers,” said Acting Inspector in Charge Bladismir Rojo, U.S. Postal Inspection Service, Miami Division. “Setting up fake call centers to harass and intimidate innocent victims, Cornejo and his co-conspirators, crafted a campaign of fear designed to rob people of not only their savings but their peace of mind. If you target Americans, no matter where you are in the world we will find you.”
In pleading guilty, Cornejo admitted that he provided his co-conspirators with the technology to manipulate the phone numbers on victims’ caller IDs, which enabled them to place threatening calls that appeared to be coming from U.S. federal agencies, court officials or law enforcement agencies. Cornejo also placed recordings on his co-conspirators’ inbound phone lines that appeared to be recordings from actual U.S. courts, police departments and federal agencies. These recordings enhanced the apparent legitimacy of the threatening calls and were used to extort payments from vulnerable consumers in the Southern District of Florida and across the United States. Cornejo also regularly replaced telephone numbers that victims reported as fraudulent, thus enabling his co-conspirators to continue with the fraudulent scheme.
Yesterday, Cornejo pleaded guilty to conspiracy to commit mail and wire fraud. A sentencing hearing is scheduled before the Senior U.S. District Judge Robert N. Scola in Miami on Sep. 25. Cornejo faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
USPIS and the Consumer Protection Branch investigated the case.
Senior Trial Attorney and Transnational Criminal Litigation Coordinator Phil Toomajian and Trial Attorney Carolyn Rice of the Consumer Protection Branch are prosecuting the case and Assistant U.S. Attorney Annika Miranda for the Southern District of Florida is handling asset forfeiture. The Justice Department’s Office of International Affairs, U.S. Attorney’s Office for the Southern District of Florida, State Department’s Diplomatic Security Service, U.S. Marshals Service, Peruvian National Prosecutor General’s Office and Peruvian National Police provided critical assistance.
If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.
More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints can be filed with the FTC at www.reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.
Man Convicted of Hiring Hitman to Murder a Federal Prosecutor, FBI Special Agent, Witnesses, and Victims Before the Start of his Federal Cyber Harassment TrialRead the Press Release
MIAMI – On July 11, 2025, a federal jury sitting in Ft. Lauderdale found Anthony Brillante II, age 36, guilty of attempted murder of an employee of the United States, solicitation to commit a crime of violence, use of interstate commerce facilities in the commission of murder-for-hire, witness tampering, and obstruction of justice. The charges stemmed from a plot engaged in by the defendant to murder the federal prosecutor and FBI Special Agent who investigated and prosecuted him for cyber harassment, by hiring a hitman to kill them. He was also found guilty of attempting to kill the witnesses and victims of his cyber harassment case before the start of his federal cyber harassment trial on October 30, 2023.
In August of 2022, the FBI arrested Brillante for cyber harassing his family in New York. Brillante, a student at FIU during most of the time of the crimes, spoofed hundreds of different phone numbers to send three victims—his cousin, her husband, and their 12-year-old daughter—tens of thousands of phone calls and text messages over a 15-month period between 2021 and 2022, including countless explicit threats to kill them. The messages included threatening to shoot them in the in the face and running them over with a car. The federal cyber harassment investigation established that Brillante was also sending similar threatening messages to another cousin and her husband, who both resided in Texas.
In October 2023, just before the start of his federal cyber harassment trial, Brillante directed and paid a total of $40,000 in furtherance of the murder plot. On October 29, 2023, the day before his cyber harassment trial was scheduled to begin, Brillante met with an undercover FBI agent, who was posing as a hitman, and enlisted him to commit the murders of the prosecuting Assistant United States Attorney, the investigating FBI special agent, and the victims of his cyber harassment case in order to obstruct his federal trial. Despite his efforts, Brillante was convicted in his first trial of cyber harassment and ultimately sentenced to nine years’ imprisonment.
Sentencing in the murder-for-hire case is scheduled for October 1, 2025.
U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida and Special Agent in Charge Brett D. Skiles of the FBI, Miami Field Office made the announcement.
The FBI Miami Field Office investigated the case.
Assistant U.S. Attorneys Lawrence D. LaVecchio and Deric Zacca from the Southern District of Florida are prosecuting the case. AUSA Daren Grove is handling asset forfeiture.
You may find a copy of this press release (and any updates) 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 at http://pacer.flsd.uscourts.gov, under case number 24-cr-60204.
###
Law Enforcement Recovers over $6 Million in Forfeited Assets from Miami Couple Sentenced to 9- and 3-Year Prison Terms for Health Care Fraud and Money Laundering ConspiraciesRead the Press Release
MIAMI – On July 10, 2025, Magaly Travieso, 54, of Miami, Fla., was sentenced to nine years’ imprisonment for conspiracy to commit health care fraud, and Yudorki Ramirez, 53, of Miami, Fla., was sentenced to three years’ imprisonment for conspiracy to commit money laundering.
Travieso was an advanced practitioner registered nurse and the owner of ProMed Healthcare, L.L.C., a medical clinic that purportedly provided back and shoulder braces, physical therapy, psychosocial rehabilitation, and other mental health therapy services to beneficiaries with commercial insurance, Medicare, and Medicare Advantage Plans, and to Medicaid recipients. From approximately March 2019 through at least January 2023, Travieso conspired with others to submit over $20 million in fraudulent claims for reimbursement, of which ProMed received over $10 million.
Specifically, Travieso and her co-conspirators paid patients illegal kickbacks and fabricated medical records to substantiate thousands of insurance claims for medically unnecessary goods and services—and services that ProMed never even provided. For example, Travieso and other ProMed mental health counselors completed progress notes for “psychosocial rehabilitation” (“PSR”) with fabricated stock quotes of PSR patients that they copied throughout records of dozens of different elderly patients. ProMed’s medical records even copied the typos in those fabricated quotes. Travieso and others’ PSR progress notes not only copied participant responses, the notes also fabricated observations, results, and other medical notations.
Once ProMed’s health care fraud proceeds were deposited into ProMed’s bank accounts, Travieso and her former spouse, Ramirez, used the fraud proceeds for their personal use and benefit. For example, Travieso spent approximately $75,000 in proceeds on the purchase of a 2021 Land Rover Range Rover in the name of ProMed and approximately $750,000 in proceeds on the purchase of her residence in Miami, Florida. Similarly, Ramirez spent approximately $141,923.02 of proceeds on the purchase of his residence in Miami. Ramirez also laundered approximately $2,068,904.55 of health care fraud proceeds into his investment accounts. In June 2024, pursuant to seizure warrants, law enforcement seized Travieso’s Range Rover and over $4 million in health care fraud proceeds from bank accounts belonging to Travieso and Ramirez. Since then, law enforcement has recovered over $2 million in additional forfeited assets, and the Court ordered Travieso and Ramirez to pay millions more to the Government and the victims.
Hayden P. O’Byrne, U.S. Attorney for the Southern District of Florida, Acting Special Agent in Charge Brett Skiles from the Federal Bureau of Investigations, Miami Field Office, Acting Special Agent in Charge Ryan Lynch of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Miami Regional Office and Florida Attorney General James Uthmeier for the Florida Office of the Attorney General Medicaid Fraud Control Unit (MFCU) made the announcement.
This case was investigated by the FBI Miami Field Office, the Department of Health and Human Services Office of Inspector General, and Medicaid Fraud Control Unit of the Florida Office of the Attorney General. Assistant U.S. Attorney Joseph Egozi prosecuted the case and Assistant U.S. Attorney Joshua Paster handled asset forfeiture.
You may find a copy of this press release (and any updates) 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 at http://pacer.flsd.uscourts.gov, under case number 25-CR-20074-KMM.
###
Extradited Colombian Entrepreneur Convicted in Miami of Conspiracy to Distribute Thousands of Kilograms of Cartel Cocaine for Import to the United StatesRead the Press Release
MIAMI – A federal jury in the Southern District of Florida returned a guilty verdict against defendant Neder Valencia Julio for a multi-year conspiracy to distribute thousands of kilograms of cocaine, with knowledge that the cocaine would be unlawfully imported into the United States.
Based on the evidence at trial, Valencia owned several businesses along the coastal gulf of Colombia near the Caribbean Sea, including a resort-style hotel, an apartment complex, a boat transport business, and a fleet of speedboats. These businesses were all located in territory controlled by the Clan del Golfo (CDG), a Colombian paramilitary group, racketeering organization, and armed drug trafficking cartel. The CDG cartel was a highly organized criminal group that trafficked its own cocaine, selling to partners in Costa Rica, Nicaragua, and Honduras, who would then sell the cocaine to Mexican cartels for eventual transport across the border of the United States. The CDG cartel also charged a per-kilogram tax for any other drug trafficking groups that moved cocaine through CDG territory in Colombia and Panama. In exchange for the payment of this tax, CDG would provide storage, security, and inventorying of the cocaine until the traffickers were ready to dispatch the cocaine for shipment.
On May 14, 2018, a Colombian military plane began tracking a speedboat that left from this region and was moving north along a known drug trafficking corridor. As the boat crossed into Panama’s territorial waters, a patrol boat from Servicio Nacional Aeronaval de Panamá (SENAN) was able to locate and begin pursuit of the speedboat. The speedboat crew tossed its cargo overboard and turned back towards Colombia. The crew escaped and the empty boat was seized by Colombian law enforcement. However, the SENAN patrol boat was able to follow the speedboat’s wake and recover 626 kilograms of bundled cocaine still afloat along its path.
Valencia provided the speedboat, organized and hired the crew, and met with CDG cartel leadership to plan and coordinate this May 2018 shipment of 1,050 kilograms of CDG cocaine. Valencia was personally present to oversee the loading and dispatch of the cocaine onto his speedboat.
Beyond the May 2018 shipment, Valencia served as a logistics and transportation coordinator for many more thousands of kilograms and millions of dollars’ worth of cocaine shipments, dating back to at least 2011. In 2012, Valencia participated in planning meetings with CDG cartel leadership and representatives of a Honduran narcotrafficking client of CDG, and then provided the boats and crew for a 1200-kilogram shipment of CDG cocaine to Honduras. In 2015, Valencia held the same role in a 1500-kilogram shipment to this same group in Honduras. In 2017, Valencia oversaw the loading and dispatch of a 1000-kilogram shipment from one of his speedboats, piloted by his crew. In February 2018, Valencia again oversaw the loading and dispatch of a 1400-kilogram cartel cocaine shipment from one of his speedboats, piloted by his crew.
Valencia continued to oversee the coordination, logistics, and transportation of cocaine shipments in 2019 and 2020. He was arrested in Colombia in 2021 and subsequently extradited to the United States.
The evidence at trial otherwise reflected that one of the branded stamps on the cocaine bricks from the May 2018 seizure had been linked to the CDG cartel, and that cocaine bricks bearing the same or similar branded markings had been seized in United States territory between 2017 and 2020, including in San Juan, Puerto Rico and Corpus Christi, Texas.
U.S. District Judge Raag Singhal presided over the trial. Valencia faces a maximum term of life imprisonment. The sentencing hearing has been set for September 23, 2025. Judge Singhal will sentence Valencia after a review of the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida and Special Agent in Charge Deanne Reuter of the Drug Enforcement Administration, Miami Field Division, announced the guilty verdict.
DEA investigated the case, with substantial assistance from law enforcement and armed forces in the Republic of Colombia, including the Fiscalía General de la Nación, the Colombian Navy, and the Republic of Panama, including SENAN. The Justice Department’s Office of International Affairs and the Criminal Division’s Narcotic and Dangerous Drug Section’s Office of Judicial Attaché in Bogotá, Colombia provided significant assistance in this matter. The United States Marshals Service, the Federal Bureau of Prisons, and the Broward Sheriff’s Office also provided valuable support during the proceedings.
Assistant U.S. Attorneys Marc Chattah and Sterling M. Paulson are prosecuting the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-CR-20273-AHS.
###
Two South Florida Men Sentenced to Federal Prison for Bank FraudRead the Press Release
MIAMI – On June 13, Jeremiah Wolliston, 23, and Keith Patrick, 38, of West Palm Beach, Florida, were sentenced to 168 months and 72 months in federal prison, respectively, after pleading guilty to their involvement in a scheme to buy stolen business checks from the mail and commit bank fraud.
According to court documents, between December 2022 and May 2024, Wolliston and Patrick were involved in a conspiracy with others to buy stolen business checks from the mail, which were then altered and deposited into fraudulently opened bank accounts. As part of the scheme, Wolliston and Patrick set up fictitious corporations in Florida and Georgia using the names of their corporate victims and opened fraudulent bank accounts. Wolliston and Patrick deposited the checks before making ATM and counter withdrawals, wire transfers, and drafting checks to transfer the money to other members of the conspiracy. Total losses related to the scheme exceeded $4.5 million.
U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida and acting Inspector in Charge Bladismir Rojo of the U.S. Postal Inspection Service (USPIS) made the announcement.
USPIS, Homeland Security Investigations, USPS Office of the Inspector General, Treasury Inspector General for Tax Administration, West Palm Beach Police Department, and the Palm Beach Sherriff’s Office jointly investigated the case.
Assistant U.S. Attorney Daniel Rosenfeld prosecuted the case.
Assistant U.S. Attorney Mitch Hyman is handling asset forfeiture.
You may find a copy of this press release (and any updates) 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 at http://pacer.flsd.uscourts.gov,under case number 24-CR-20440.
###
Former Miami-Dade Transit Supervisor and Wife Sentenced for Roles in Metrorail Bribery SchemeRead the Press Release
Dale Robinson, a former Miami-Dade Transit Track and Guideway Supervisor, and Marcia Robinson, his wife, were sentenced yesterday by U.S. District Judge K. Michael Moore after pleading guilty to federal charges. Dale Robinson pleaded guilty to soliciting a bribe from a contractor for Miami-Dade Transit in connection with the issuance of Metrorail repair and maintenance contracts. Marcia Robinson pleaded guilty to misprision of a felony for helping her husband cover up the bribery scheme.
Dale Robinson was sentenced to 18 months imprisonment to be followed by 3 years of supervised release. In addition, a forfeiture judgment of $75,956 was previously entered against Dale Robinson, which he has already paid to the United States. Marcia Robinson was sentenced to 3 years of probation for her lesser role.
According to the facts admitted at the change of plea hearings, Dale Robinson was the acting General Superintendent and lead Rail Structure and Track Supervisor in the Track and Guideway unit of Miami-Dade Transit. His responsibilities included making recommendations for the selection of contractors to do Metrorail track maintenance and repair work for the transit unit and overseeing the work done by those contractors, including Jessie Bledsoe. Bledsoe was the co-owner and operator of JB Railroad Contracting, Inc. (JB Railroad), a North Dakota-based company that did railroad track and rail replacement, repair, and maintenance work throughout the United States.
In or around January 2021, while JB Railroad was working on a previously obtained contract for the removal and replacement of Metrorail track fasteners and was in the process of seeking an additional contract to perform welding work on the Metrorail system for Miami-Dade Transit, Dale Robinson requested a large bribe from Bledsoe. Bledsoe agreed to pay Robinson that bribe, which was intended to influence Robinson’s selection of a contractor for the upcoming welding project. Bledsoe also agreed to conceal the payment by making it to a company specified by Dale Robinson.
After this, in late January 2021, Dale Robinson directed Marcia Robinson, who lived in Maryland, to create a company and open a company checking account on which she would serve as the sole signatory. Marcia Robinson formed Tailored Railroads & Consulting LLC (Tailored Railroads), filing the company paperwork in the State of Maryland.
Between February 2021 through February 2022, Dale Robinson directed Marcia Robinson to send a total of four invoices from Tailored Railroads to JB Railroad. When Marcia Robinson sent each of these invoices, she knew that Tailored Railroads had not provided any goods or services to JB Railroad. Bledsoe then caused JB Railroad to issue four checks to Tailored Railroads to pay the invoices, which were actually payments for the bribe solicited by Dale Robinson. Bledsoe ultimately provided $75,956 to Tailored Railroads for Dale Robinson’s personal benefit as part of Dale Robinson’s bribe solicitation.
While not knowing all the details of her husband’s illegal bribery agreement with Bledsoe, Marcia Robinson knew that the four checks were being paid by Bledsoe for Dale Robinson’s recommendation to select JB Railroad to perform work for Miami-Dade Transit. Despite this, she did not inform authorities of her husband’s crime, and her actions helped conceal his criminal activity.
In a related case, Bledsoe pled guilty to paying a bribe to Dale Robinson in connection with his contracts with Miami-Dade Transit. Bledsoe’s sentencing hearing before U.S. District Judge Beth Bloom is set for October 3, 2025.
U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida, Special Agent in Charge Brett D. Skiles of FBI Miami, and Inspector General Felix Jimenez of the Miami-Dade County Office of Inspector General (MDC-OIG) made the announcement.
Assistant U.S. Attorney Edward N. Stamm prosecuted the case. Assistant U.S. Attorney Marx Calderon is handling forfeiture matters.
You may find a copy of this press release (and any updates) 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 at http://pacer.flsd.uscourts.gov, under case number 25-cr-20168.
###
Cuban National Pleads Guilty to Stealing More Than $800,000 from Elderly Victim’s Bank AccountRead the Press Release
MIAMI – Michel Duarte Suarez, 50, a Cuban national, pleaded guilty for his role in a scheme he directed from his residence in Panama to obtain control over an elderly victim’s bank account, steal more than $800,000 from the victim’s account, and then launder the proceeds with the assistance of co-conspirators in South Florida.
Suarez was initially indicted in September 2023 but resided in Panama City, Panama at the time. In January 2025, Suarez was arrested in Panama and brought to South Florida to face the charges.
According to court documents, in March 2022 Suarez explained to a confidential informant that he had access to the bank of account of an elderly victim, who was 82 years old at the time. To carry out the fraud conspiracy, Suarez created and mailed fraudulent checks from Panama to South Florida with directions to cash the checks and return 50% of the fraud proceeds to Suarez by wiring the money to Suarez’s Miami-based company, Online Electronics. The fraudulent checks contained forged signatures designed to resemble that of the victim’s signature on his/her signature card for that same bank account.
In total, Suarez and his co-conspirators stole approximately $803,000 from the elderly victim’s bank account during a four-month period.
Sentencing is set for September 29, 2025, in Miami before United States District Court Judge Kathleen M. Williams. Suarez pleaded guilty to one count of conspiracy to commit bank fraud and mail fraud (Count 1) and one count of aggravated identity theft (Count 4). Suarez faces up to 30 years in prison on Count 1, and an additional mandatory two years in prison, to run consecutive to any term of imprisonment imposed on Count 1.
U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida; Special Agent in Charge Brett Skiles of the FBI Miami Field Office; Special Agent in Charge Jason Scalzo of the FDIC-OIG Electronic Crimes Unit; and Special Agent in Charge Rafael Barros of the US Secret Service Miami Field Office made the announcement.
Assistant United States Attorney Alexander Thor Pogozelski is prosecuting the case. Assistant United States Attorney Marx Calderon is handling asset forfeiture proceedings.
You may find a copy of this press release (and any updates) 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 at http://pacer.flsd.uscourts.gov, under case number 23-CR-20359-WILLIAMS.
###
Boca Raton Resident Pleads Guilty to Insider TradingRead the Press Release
MIAMI – A Boca Raton resident pled guilty today in the Southern District of Florida to securities fraud based on an insider trading scheme that netted over $420,000.
According to court documents, during a July 4th gathering in 2020, Charles Lawrence Baugh, Sr. (“Baugh”), 60, learned of a pending partnership between Google LLC and ADT Inc. (“ADT”). Baugh also learned that Google LLC would be making a substantial investment in ADT. At the time, ADT’s shares were publicly traded on the Nasdaq stock exchange.
A close family member who occupied a senior role at ADT revealed the pending partnership and investment to Baugh. Baugh knew that the news was material, non-public information and that he had a duty to keep the information confidential. Nonetheless, in violation of that duty, Baugh proceeded to purchase in trading accounts he controlled approximately 1,000 ADT call options and 800 ADT shares. Baugh began purchasing the securities on July 6, 2020—the first trading day after the July 4th holiday.
In addition to trading in his own accounts, Baugh traded in ADT securities in the accounts of at least two other family members and convinced two additional family members to buy ADT securities, all while news of the partnership and investment was non-public.
On August 3, 2020, news of the partnership and investment became public. ADT’s share price increased over 50%. Baugh sold all 1,000 call options, netting over $314,000.
As part of his guilty plea, Baugh agreed to forfeit $316,044, all the proceeds from the scheme he personally received.
Baugh’s sentencing will take place before Judge Donald M. Middlebrooks at a later date.
U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida and Special Agent in Charge Brett Skiles of the FBI Miami Field Office made the announcement.
The FBI Miami Field Office investigated the case. The U.S. Attorney’s Office appreciates the assistance of the U.S. Securities & Exchange Commission, who previously sued and settled with Baugh.
Assistant U.S. Attorney Eli S. Rubin is prosecuting the case. Assistant U.S. Attorney Josh Paster is handling asset forfeiture.
This is the fifth insider trading conviction in 2025 secured by the U.S. Attorney’s Office for the Southern District of Florida and the FBI Miami Field Office. Convictions were previously obtained in United States v. Federico Nannini et al., 24-20398-CR, and United States v. Stephen George, 25-60011-CR.
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 at http://pacer.flsd.uscourts.gov, under case number 25-cr-80089.
###
Nigerian National Pleads Guilty to International Fraud Scheme that Defrauded Elderly U.S. VictimsRead the Press Release
MIAMI – A Nigerian national pleaded guilty recently to operating a transnational inheritance fraud scheme that defrauded elderly and vulnerable consumers across the United States.
According to court documents, Ehis Lawrence Akhimie, 41, was a member of a group of fraudsters that sent personalized letters to elderly victims in the United States over the course of several years. The letters falsely claimed that the sender was a representative of a bank in Spain and that the recipient was entitled to receive a multimillion-dollar inheritance left for the recipient by a family member who had died overseas years before. Akhimie and his co-conspirators allegedly told a series of lies to victims, including that, before they could receive their purported inheritance, they were required to send money for delivery fees, taxes, and other payments to avoid questioning from government authorities. Akhimie and his co-conspirators allegedly collected money victims sent in response to the fraudulent letters through a complex web of U.S.-based former victims, whom the defendants convinced to receive money and forward to the defendants or persons associated with them. Victims who sent money never received any purported inheritance funds. In pleading guilty, Akhimie admitted to defrauding over $6 million from more than 400 victims, many of whom were elderly or otherwise vulnerable.
“The Justice Department’s Consumer Protection Branch will continue to pursue, prosecute and bring to justice transnational criminals responsible for defrauding U.S. consumers, wherever they are located,” said Assistant Attorney General Brett A. Shumate, head of the Justice Department’s Civil Division. “This case is testament to the critical role of international collaboration in tackling transnational crime. I want to thank the members of the Postal Inspection Service and Homeland Security Investigations, as well as the National Crime Agency and Crown Prosecution Service of the United Kingdom for their outstanding contributions to this case.”
“The U.S. Postal Inspection Service is committed to protecting American consumers from being defrauded by Transnational Criminal Organizations,” said Acting Postal Inspector in Charge Bladismir Rojo for the U.S. Postal Inspection Service (USPIS) Miami Division. “We have long partnered with the Department of Justice’s Consumer Protection Branch to deliver justice and we will continue to do so.”
“Transnational fraud schemes thrive in the shadows, turning illicit gains into a facade of legitimacy, especially those involving seniors or other vulnerable people,” said Acting Special Agent in Charge Ray Rede for HSI Arizona. “HSI and our law enforcement partners commitment to investigate criminals who steal money sends a clear message: justice will prevail, and those who exploit others for personal gain will be held accountable. We thank all our partners who assisted in this investigation.”
On June 17, Akhimie pleaded guilty to conspiracy to commit mail and wire fraud. Akhimie faces a maximum penalty of 20 years’ imprisonment.
This is the second indicted case related to this international fraud scheme. Seven other co-conspirators from the United Kingdom, Spain, and Nigeria have previously been convicted and sentenced in connection with this scheme. On Nov. 1, 2023, the Honorable Kathleen M. Williams sentenced Ezennia Peter Neboh, who was extradited from Spain, to 128 months of imprisonment. On Oct. 20, 2023, Judge Williams sentenced another defendant who was also extradited from Spain, Kennedy Ikponmwosa, to 97 months of imprisonment. Three other defendants who were extradited from the United Kingdom also received prison sentences. Judge Williams sentenced Emmanuel Samuel, Jerry Chucks Ozor, and Iheanyichukwu Jonathan Abraham to prison sentences of 82 months, 87 months, and 90 months, respectively, for their roles in the scheme. Amos Prince Okey Ezemma was paroled into the United States from Nigeria and was sentenced in July 2024 to 90 months imprisonment for his role in the scheme. Lastly, on April 25, the Honorable Roy K. Altman sentenced Okezie Bonaventure Ogbata, who was extradited from Portugal, to 97 months of incarceration for his role in the scheme.
USPIS, HSI, and the Consumer Protection Branch are investigating the case. Senior Trial Attorney and Transnational Criminal Litigation Coordinator Phil Toomajian and Trial Attorney Josh Rothman of the Justice Department’s Consumer Protection Branch are prosecuting the case. Assistant U.S. Attorney Annika Miranda for the Southern District of Florida is handling asset forfeiture. The Justice Department’s Office of International Affairs, the U.S. Attorney’s Office for the Southern District of Florida, the Department of State’s Diplomatic Security Service, and authorities from the UK, Spain, and Portugal all provided critical assistance.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish, and other languages are available.
More information about the Department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at reportfraud.ftc.gov/ or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 24-cr-20140.
###
Nigerian National Pleads Guilty to International Fraud Scheme that Defrauded Elderly U.S. VictimsRead the Press Release
A Nigerian national pleaded guilty recently to operating a transnational inheritance fraud scheme that defrauded elderly and vulnerable consumers across the United States.
According to court documents, Ehis Lawrence Akhimie, 41, was a member of a group of fraudsters that sent personalized letters to elderly victims in the United States over the course of several years. The letters falsely claimed that the sender was a representative of a bank in Spain and that the recipient was entitled to receive a multimillion-dollar inheritance left for the recipient by a family member who had died overseas years before. Akhimie and his co-conspirators allegedly told a series of lies to victims, including that, before they could receive their purported inheritance, they were required to send money for delivery fees, taxes, and other payments to avoid questioning from government authorities. Akhimie and his co-conspirators allegedly collected money victims sent in response to the fraudulent letters through a complex web of U.S.-based former victims, whom the defendants convinced to receive money and forward to the defendants or persons associated with them. Victims who sent money never received any purported inheritance funds. In pleading guilty, Akhimie admitted to defrauding over $6 million from more than 400 victims, many of whom were elderly or otherwise vulnerable.
“The Justice Department’s Consumer Protection Branch will continue to pursue, prosecute and bring to justice transnational criminals responsible for defrauding U.S. consumers, wherever they are located,” said Assistant Attorney General Brett A. Shumate, head of the Justice Department’s Civil Division. “This case is testament to the critical role of international collaboration in tackling transnational crime. I want to thank the members of the Postal Inspection Service and Homeland Security Investigations, as well as the National Crime Agency and Crown Prosecution Service of the United Kingdom for their outstanding contributions to this case.”
“The U.S. Postal Inspection Service is committed to protecting American consumers from being defrauded by Transnational Criminal Organizations,” said Acting Postal Inspector in Charge Bladismir Rojo for the U.S. Postal Inspection Service (USPIS) Miami Division. “We have long partnered with the Department of Justice’s Consumer Protection Branch to deliver justice and we will continue to do so.”
“Transnational fraud schemes thrive in the shadows, turning illicit gains into a facade of legitimacy, especially those involving seniors or other vulnerable people,” said Acting Special Agent in Charge Ray Rede for HSI Arizona. “HSI and our law enforcement partners commitment to investigate criminals who steal money sends a clear message: justice will prevail, and those who exploit others for personal gain will be held accountable. We thank all our partners who assisted in this investigation.”
On June 17, Akhimie pleaded guilty to conspiracy to commit mail and wire fraud. Akhimie faces a maximum penalty of 20 years’ imprisonment.
This is the second indicted case related to this international fraud scheme. Seven other co-conspirators from the United Kingdom, Spain, and Nigeria have previously been convicted and sentenced in connection with this scheme. On Nov. 1, 2023, the Honorable Kathleen M. Williams sentenced Ezennia Peter Neboh, who was extradited from Spain, to 128 months of imprisonment. On Oct. 20, 2023, Judge Williams sentenced another defendant who was also extradited from Spain, Kennedy Ikponmwosa, to 97 months of imprisonment. Three other defendants who were extradited from the United Kingdom also received prison sentences. Judge Williams sentenced Emmanuel Samuel, Jerry Chucks Ozor, and Iheanyichukwu Jonathan Abraham to prison sentences of 82 months, 87 months, and 90 months, respectively, for their roles in the scheme. Amos Prince Okey Ezemma was paroled into the United States from Nigeria and was sentenced in July 2024 to 90 months imprisonment for his role in the scheme. Lastly, on April 25, the Honorable Roy K. Altman sentenced Okezie Bonaventure Ogbata, who was extradited from Portugal, to 97 months of incarceration for his role in the scheme.
USPIS, HSI, and the Consumer Protection Branch are investigating the case. Senior Trial Attorney and Transnational Criminal Litigation Coordinator Phil Toomajian and Trial Attorney Josh Rothman of the Justice Department’s Consumer Protection Branch are prosecuting the case. The Justice Department’s Office of International Affairs, the U.S. Attorney’s Office for the Southern District of Florida, the Department of State’s Diplomatic Security Service, and authorities from the UK, Spain, and Portugal all provided critical assistance.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish, and other languages are available.
More information about the Department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at reportfraud.ftc.gov/ or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.
Former Air Force Member Sentenced to Five Years in Prison for Sexual Assault at Air Base in EnglandRead the Press Release
MIAMI – James Loubeau, a former U.S. Air Force member, was sentenced today to five years in prison to be followed by 20 months of supervised release for sexually assaulting another service member at Royal Air Force Mildenhall, United Kingdom, in May 2019. In April 2025, Loubeau, 37, of Miami, pleaded guilty to two counts of abusive sexual contact.
As part of his guilty plea, Loubeau admitted that, on May 4, 2019, he sexually assaulted the victim on base at Royal Air Force Mildenhall. Loubeau was later discharged from the Air Force in March 2020. The charges were brought under the Military Extraterritorial Jurisdiction Act (MEJA), which establishes U.S. jurisdiction over certain offenses committed abroad by, among others, persons who served with the armed forces but who are no longer subject to military prosecution.
In May 2019, Loubeau and the victim met at a bar on the Air Force base where the victim consumed several alcoholic beverages. Later, a friend of the victim accompanied the victim back to her on-base housing and helped her get ready for bed. The friend then left and the victim fell asleep alone. Around 2:30 a.m., the victim awoke to find Loubeau on top of her in her bed. The victim almost immediately called two friends to say she had been raped. Surveillance video captured Loubeau after he left the victim’s room to return to his dorm room. A medical examination revealed that the victim had injuries consistent with sexual contact, and DNA testing later linked Loubeau to the sexual assault.
U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida; Matthew R. Galeotti, Head of the Justice Department’s Criminal Division; Special Agent in Charge Michael Koellner of Air Force Office of Special Investigations Detachment 512; and Special Agent in Charge Brett D. Skiles of the FBI, Miami Field Office made the announcement.
The Air Force Office of Special Investigations and the FBI investigated the case.
Assistant U.S. Attorney Bertila Fernandez for the Southern District of Florida and Trial Attorney Alexandra Skinnion of the Criminal Division’s Human Rights and Special Prosecutions Section are prosecuting the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 24-cr-20454.
###
Former Air Force Member Sentenced to Five Years in Prison for Sexual Assault at Air Base in EnglandRead the Press Release
James Loubeau, a former U.S. Air Force member, was sentenced today to five years in prison to be followed by 20 years of supervised release for sexually assaulting another service member at Royal Air Force Mildenhall, United Kingdom, in May 2019. In April 2025, Loubeau, 37, of Miami, pleaded guilty to two counts of abusive sexual contact.
As part of his guilty plea, Loubeau admitted that, on May 4, 2019, he sexually assaulted the victim on base at Royal Air Force Mildenhall. Loubeau was later discharged from the Air Force in March 2020. The charges were brought under the Military Extraterritorial Jurisdiction Act (MEJA), which establishes U.S. jurisdiction over certain offenses committed abroad by, among others, persons who served with the armed forces but who are no longer subject to military prosecution.
In May 2019, Loubeau and the victim met at a bar on the Air Force base where the victim consumed several alcoholic beverages. Later, a friend of the victim accompanied the victim back to her on-base housing and helped her get ready for bed. The friend then left and the victim fell asleep alone. Around 2:30 a.m., the victim awoke to find Loubeau on top of her in her bed. The victim almost immediately called two friends to say she had been raped. Surveillance video captured Loubeau after he left the victim’s room to return to his dorm room. A medical examination revealed that the victim had injuries consistent with sexual contact, and DNA testing later linked Loubeau to the sexual assault.
Matthew R. Galeotti, Head of the Justice Department’s Criminal Division; U.S. Attorney Hayden O’Byrne for the Southern District of Florida; Special Agent in Charge Michael Koellner of Air Force Office of Special Investigations Detachment 512; and Special Agent in Charge Brett D. Skiles of the FBI Miami Field Office made the announcement.
The Air Force Office of Special Investigations and the FBI investigated the case.
Trial Attorney Alexandra Skinnion of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Bertila Fernandez for the Southern District of Florida are prosecuting the case.
National Health Care Fraud Takedown Results in 324 Defendants Charged in Connection with over $14.6 Billion in Alleged FraudRead the Press Release
37 Defendants Charged in the Southern District of Florida
MIAMI – Today, United States Attorney Hayden P. O’Byrne announced criminal charges against thirty-seven defendants in connection with alleged schemes to unlawfully distribute controlled substances and defraud federal health care programs, including Medicare and Medicaid. The charges were filed in federal court and are part of the Department of Justice’s 2025 National Health Care Fraud Takedown.
The Justice Department today announced the results of its 2025 National Health Care Fraud Takedown, which resulted in criminal charges against 324 defendants, including 96 doctors, nurse practitioners, pharmacists, and other licensed medical professionals, in 50 federal districts and 12 State Attorneys General’s Offices across the United States, for their alleged participation in various health care fraud schemes involving over $14.6 billion in intended loss. The Takedown involved federal and state law enforcement agencies across the country and represents an unprecedented effort to combat health care fraud schemes that exploit patients and taxpayers.
Demonstrating the significant return on investment that results from health care fraud enforcement efforts, the government seized over $245 million in cash, luxury vehicles, cryptocurrency, and other assets as part of the coordinated enforcement efforts. As part of the whole-of-government approach to combating health care fraud announced today, the Centers for Medicare and Medicaid Services (CMS) also announced that it successfully prevented over $4 billion from being paid in response to false and fraudulent claims and that it suspended or revoked the billing privileges of 205 providers in the months leading up to the Takedown. Civil charges against 20 defendants for $14.2 million in alleged fraud, as well as civil settlements with 106 defendants totaling $34.3 million, were also announced as part of the Takedown.
Today’s Takedown was led and coordinated by the Health Care Fraud Unit of the Department of Justice Criminal Division’s Fraud Section and its core partners from U.S. Attorneys’ Offices, the Department of Health and Human Services Office of Inspector General (HHS-OIG), the Federal Bureau of Investigation (FBI), and the Drug Enforcement Administration (DEA). The cases were investigated by agents from HHS-OIG, FBI, DEA, and other federal and state law enforcement agencies. The cases are being prosecuted by Health Care Fraud Strike Force teams from the Criminal Division’s Fraud Section, 50 U.S. Attorneys’ Offices nationwide, and 12 State Attorneys General Offices.
“This record-setting Health Care Fraud Takedown delivers justice to criminal actors who prey upon our most vulnerable citizens and steal from hardworking American taxpayers,” said Attorney General Pamela Bondi. “Make no mistake – this administration will not tolerate criminals who line their pockets with taxpayer dollars while endangering the health and safety of our communities.”
“As part of making healthcare accessible and affordable to all Americans, HHS will aggressively work with our law enforcement partners to eliminate the pervasive health care fraud that bedeviled this agency under the former administration and drove up costs,” said Secretary Robert F. Kennedy Jr. of the Department of Health and Human Services.
“The Criminal Division is intensely committed to rooting out health care fraud schemes and prosecuting the criminals who perpetrate them because these schemes: (1) often result in physical patient harm through medically unnecessary treatments or failure to provide the correct treatments; (2) contribute to our nationwide opioid epidemic and exacerbate controlled substance addiction; and (3) do all of that while stealing money hardworking Americans contribute to pay for the care of their elders and other vulnerable citizens,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “The Division’s Health Care Fraud Unit and U.S. Attorneys’ Offices stand united with our law enforcement partners in this fight, and we will continue to use every tool at our disposal to protect the integrity of our health care programs for the American people.”
“The scale of today’s Takedown is unprecedented, and so is the harm we’re confronting. Individuals who attempt to steal from the federal health care system and put vulnerable patients at risk will be held accountable,” said Acting Inspector General Juliet T. Hodgkins of HHS-OIG. “Our agents at HHS-OIG work relentlessly to detect, investigate, and dismantle these fraud schemes. We are proud to stand with our law enforcement partners in protecting taxpayer dollars and safeguarding patient care.”
“Health care fraud drains critical resources from programs intended to help people who truly need medical care,” said FBI Director Kash Patel. “Today’s announcement demonstrates our commitment to pursuing those who exploit the system for personal gain. With more than $13 billion in fraud uncovered, this is the largest takedown for this initiative to date. Together, the FBI and our law enforcement partners will continue to hold those accountable who steal from the American people and undermine our health care systems.”
The following individuals were charged in the Southern District of Florida:
In United States v. Eduardo Tieles Ruiz, Case No. 25-20283-CR-Becerra, Eduardo Tieles Ruiz, 43, of Miami, Florida, was charged by indictment with health care fraud. Tieles Ruiz was the owner of the clinic Newtech Medical Supply, LLC (“Newtech”), located in Margate, Florida. The indictment alleges that, between March 2022 and September 2022, the defendant, through Newtech, submitted $2,946,910 in false and fraudulent claims to Medicare and Medicaid for durable medical equipment that was not needed or provided and was paid approximately $1,310,277. HHS-OIG Miami, FBI Miami, and the Medicaid Fraud Control Unit of the Florida Office of the Attorney General (MFCU) investigated the case. Assistant U.S. Attorney Timothy Abraham is prosecuting it. Assistant U.S. Attorney Marx Calderon is handling asset forfeiture.
In United States v. Sergio De La Noval, Case No. 25-20276-CR-Williams, Sergio De La Noval, 54, of Miami Lakes, Florida, was charged by indictment with conspiracy to offer and pay health care kickbacks to patients. As alleged in the indictment, De La Noval, as a beneficial owner of the clinic Florida Behavior Health, Inc., located in Hialeah, Florida, participated in a conspiracy to pay patients illegal kickbacks to attend psychosocial rehabilitation (PSR) services at the clinic which were then billed to Medicaid. The co-conspirators used the recruited patients to submit claims to Medicaid and were paid a total of approximately $1,264,974. HHS-OIG Miami, FBI Miami, and Florida MFCU investigated the case. Assistant U.S. Attorney Timothy Abraham is prosecuting it. Assistant U.S. Attorney Marx Calderon is handling asset forfeiture.
In United States v. Ernesto Davila, 25-60163-CR-Damian, Ernesto Davila, 52, of Miami, Florida, was charged by information with conspiracy to offer and pay health care kickbacks to patients. The information alleges that Davila, as the registered owner of the clinic Florida Behavior Health, Inc., located in Hialeah, Florida, participated in a conspiracy to pay patients illegal kickbacks to attend psychosocial rehabilitation (PSR) services at the clinic, which were then billed to Medicaid. The co-conspirators used the recruited patients to submit claims to Medicaid and were paid a total of approximately $1,264,974. HHS-OIG Miami, FBI Miami, and the Medicaid Fraud Control Unit of the Florida Office of the Attorney General investigated the case. Assistant U.S. Attorney Timothy Abraham is prosecuting it. Assistant U.S. Attorney Marx Calderon is handling asset forfeiture.
In United States v. Dave Sudarshan Singh, Case No. 25-60164-CR-Leibowitz, Dave Sudarshan Singh, 37, of Pembroke Pines, Florida, was charged by indictment with conspiracy to commit health care and wire fraud, health care fraud, and money laundering for submitting false and fraudulent claims to Medicare for over-the-counter (OTC) COVID-19 tests for Medicare beneficiaries who had not requested the tests, including some claims where the Medicare beneficiaries were actually deceased. Between April 4, 2022, and May 11, 2023, Medicare covered up to eight OTC COVID-19 tests per month for Medicare beneficiaries who requested them. As alleged in the Indictment, Singh, along with his co-conspirators, through his business, MDP Products and Services, Inc., submitted and caused the submission of approximately $14,112,672 in false and fraudulent claims to Medicare, of which approximately $13,007,376 was paid, for OTC COVID-19 tests that the Medicare beneficiaries did not request and were not eligible for reimbursement. The indictment alleges that Singh and his co-conspirators paid marketing companies kickbacks and bribes in exchange for Medicare beneficiary information needed to bill for OTC COVID-19 tests. The indictment also alleges that Singh engaged in a $198,160 transaction using health care fraud proceeds at a Mercedes dealership and seeks to forfeit a 2021 White Mercedes G63. The case is being prosecuted by Assistant U.S. Attorney Timothy Abraham of the U.S. Attorney’s Office for the Southern District of Florida, with assistance from HHS-OIG, FBI, and the Medicaid Fraud Control Unit of the Florida Office of the Attorney General. Assistant U.S. Attorney Marx Calderon is handling asset forfeiture.
In United States v. Patrick Buchanan, Case No. 25-60163-CR-Damian, Patrick Buchanan, 39, of Broward County, Florida, was charged by information with conspiracy to commit wire fraud. Buchanan was the registered owner of Sigma Institute of Health Careers, Inc., located in Lauderhill, Florida. As charged, Buchanan participated in a conspiracy to sell fraudulent nursing diplomas and transcripts to individuals seeking licenses and jobs as registered nurses. FBI Miami, HHS-OIG Miami, and Medicaid Fraud Control Unit of the Florida Office of the Attorney General investigated the case. Assistant U.S. Attorney Christopher J. Clark is prosecuting it. Assistant U.S. Attorney Nicole Grasnoff is handling asset forfeiture.
In United States v. Jacquez Dion Tullis, et al., Case No. 25-20271-CR-Ruiz, Jacquez Dion Tullis, 41, of Tamarac, Florida; Taneka Nakia Pace, 49, of Miami, Florida; and Junaque Nicole Tullis, a/k/a “Juanaque Tullis,” 44, of Coral Springs, Florida, were charged by indictment with conspiracy to commit bank fraud, bank fraud, aggravated identity theft, and wire fraud in connection with a scheme to defraud financial institutions out of approximately $1,780,000 through the submission of fraudulent credit applications for cosmetic surgery and other medical services that were never provided. As alleged in the indictment, the defendants created six cosmetic surgery clinics and then submitted applications on behalf of those clinics to become approved merchants with financial institutions with lending programs that provided lines of credit to individuals seeking funding for out-of-pocket medical care, treatments, and services not covered by insurance. The defendants then used the personal identifying information of individuals without their authorization or consent to submit credit applications to those financial institutions on behalf of those individuals, falsely certifying that the clinics would provide cosmetic surgery and related medical care to them. In fact, the clinics never provided any such medical care, nor did the individuals on whose behalf the clinics submitted credit applications need or want any such treatments. The defendants are also charged with individual counts of wire fraud for submitting fraudulent loan applications on behalf of the clinics and another business to the Small Business Administration for small business loans designed to provide emergency financial assistance to businesses suffering from the economic effects caused by the COVID-19 pandemic. FBI Miami investigated the case. Assistant U.S. Attorney Will J. Rosenzweig is prosecuting it. Assistant U.S. Attorney Sandra Demirci is handling asset forfeiture.
In United States v. Noris Artola, et al., Case No. 25-20296-CR-Williams, Noris Artola, 64, and Ailyn Francisco, 40, both of Miami, Florida, were charged by information with conspiracy to commit health care fraud for submitting false and fraudulent claims to the Medicare Part D Program on behalf of Miami-based US Hwy 1 Pharmacy Inc. for the provision of prescription drugs to Medicare beneficiaries that were medically unnecessary and, in many cases, never provided. As a result of these false and fraudulent claims, the Medicare Part D Program and Medicare drug plan sponsors paid US Hwy 1 Pharmacy Inc. approximately $784,903. FBI Miami and HHS-OIG investigated the case. The case is being prosecuted by Assistant U.S. Attorney Will J. Rosenzweig of the U.S. Attorney’s Office for the Southern District of Florida. Assistant U.S. Attorney Sandra Demirci is handling asset forfeiture.
In United States v. Jorge Luis Almansa, et al., Case No. 25-60142-CR-Dimitrouleas, Jorge Luis Almansa, 53, and Christian “Chris” Cruz, 44, both of Pompano Beach, Florida, were charged by indictment with conspiracy to commit health care and wire fraud and health care fraud for submitting false and fraudulent claims to Medicare in the approximate amount of $11,417,462 for the provision of durable medical equipment to Medicare beneficiaries. As a result, Medicare paid approximately $3,712,345, which Almansa and Cruz then distributed to themselves and their co-conspirators. The indictment alleges that Almansa and Cruz, through a company called Brace Yourself, paid marketing companies for referrals of Medicare beneficiaries for medically unnecessary durable medical equipment (“DME”). The marketers used telemedicine companies to obtain doctors’ orders prescribing DME to beneficiaries who had never been seen by the prescribing doctor, which Brace Yourself would then use to bill Medicare. In some instances, the marketers generated doctors’ orders that included the electronic signature of a beneficiary’s own doctor without that doctor’s permission or authorization. HHS-OIG and FBI Miami investigated the case. Assistant U.S. Attorney Will J. Rosenzweig is prosecuting it. Assistant U.S. Attorney Sandra Demirci is handling asset forfeiture.
In United States v. Jean Jethro Alexandre, et al., Case No. 25-60147-CR-Dimitrouleas, Jean Jethro Alexandre, 44, of Haiti; Cheyenne Twinette Early, 30, of Plantation, Florida; and Sheere Antoinette Proctor, 51, of Plantation, Florida, were charged by information with conspiracy to commit health care fraud. Alexandre, Early, and Proctor were the owners, operators, and managers of CMJ Health Group, Inc. (“CMJ”), located in Miami Gardens, Florida, and The Proctor Medical Group (“TPMG”), located in Pompano Beach, Florida. CMJ and TPMG purported to operate as medical clinics providing health care services to individuals for the prevention and treatment of sexually transmitted diseases (STDs), including human immunodeficiency virus (HIV) and acquired immunodeficiency syndrome (AIDS). In reality, defendants and their co-conspirators ran CMJ and TPMG as prescription mills for drugs intended to prevent and treat HIV/AIDS, which CMJ acquired at significant discounts from drug manufacturers through its participation in the 340B Drug Pricing Program (the “340B Program”). Defendants and their co-conspirators exploited the 340B Program by, among other things, paying kickbacks to patient recruiters and purported patients to furnish prescriptions for 340B drugs; falsifying dispensing records; destroying 340B drugs before they were provided to any person; and using the fraud proceeds for their personal benefit. The alleged intended loss from the conspiracy was approximately $58.1 million. FBI Miami investigated the case. Assistant U.S. Attorney David A. Snider is prosecuting it. Assistant U.S. Attorney G. Raemy Charest-Turken is handling asset forfeiture.
In United States v. Richard Weldon Crowder II, Case No. 25-60150-CR-Smith, Richard Weldon Crowder II, 59, of Miami, Florida, the true owner of New Day Health Solutions (“New Day”), Liberty Medical Supply (“Liberty”), and RNK Medical Supply Inc. (“RNK”) in Boca Raton, Florida, was charged by criminal information. The information charges the defendant with conspiracy to commit health care fraud for conducting a scheme to fraudulently bill Medicare on behalf of unsuspecting beneficiaries for durable medical equipment (“DME”). The information alleges that, in addition to naming another employee as the listed owner of New Day, Liberty, and RNK in order to hide his own ownership of the companies, the defendant also conspired with others to enlist the services of telemedicine doctors who would sign off on medically unnecessary DME prescriptions for the Medicare beneficiaries. The information alleges that, from June 2022 through September 2022, New Day, Liberty, and RNK received approximately $381,703 in fraudulently induced reimbursements from Medicare. HHS-OIG investigated the case with assistance from the FBI Miami. This case is being prosecuted by Assistant U.S. Attorney Eduardo Gardea, Jr., and Assistant U.S. Attorney G. Raemy Charest-Turken is handling asset forfeiture.
In United States v Lazaro Delgado, Case No. 25-20290-CR-Ruiz, Lazaro Delgado, 59, of Miami, Florida, was charged by criminal information with conspiracy to commit health care fraud. The information alleges that the defendant participated, along with other co-conspirators, in a scheme to submit fraudulent claims to Medicare and Medicaid on behalf of unsuspecting beneficiaries. The information also alleges that the defendant acted as an intermediary to place a nominal owner as the head of Hucel Custom Med Inc. (Hucel), while other co-conspirators coordinated the false and fraudulent claims for durable medical equipment products that the beneficiaries did not need. The information alleges that, from January 2022 through at least July 2022, Hucel fraudulently billed Medicare/Medicaid for approximately $9 million worth of orthotic braces and received Medicare/Medicaid reimbursements for approximately $1.8 million from the fraudulent claims. Health and Human Services—Office of Inspector General and Homeland Security Investigations investigated the case. This case is being prosecuted by Assistant U.S. Attorney Eduardo Gardea, Jr., and Assistant U.S. Attorney G. Raemy Charest-Turken is handling asset forfeiture.
In United States v. Juan Carlos Cardella, 25-20280-CR-Gayles, Juan Carlos Cardella, 60, of Miami, Florida, was charged by indictment with conspiring to sell and distribute Medicare beneficiary identifier numbers under the Medicare Access and CHIP Reauthorization Act (“MACRA”), possession of fifteen or more unauthorized access devices, and aggravated identity theft. The indictment alleges that going back as far as around June 2022, the defendant conspired with others to obtain confidential patient information from a regional health care provider based in Miami-Dade County, in order to sell the patient names, dates of birth, and Medicare beneficiary numbers of those patients to unauthorized individuals. The indictment further alleges that on multiple occasions, including as recently as November 14, 2024, and February 11, 2025, the defendant sold patient lists of more than 100 Medicare beneficiaries for approximately $7,000 per list. FBI Miami and HHS-OIG investigated the case. This case is being prosecuted by Assistant U.S. Attorney Eduardo Gardea, Jr., and Assistant U.S. Attorney G. Raemy Charest-Turken is handling asset forfeiture.
In United States v Marlen Veliz Rios, Case No. 25-20281-CR-Ruiz, Marlen Veliz Rios, 58, of Hialeah, Florida, owner of Loves Community Health Mental Health Inc. (“Loves”), was charged by indictment with health care fraud and conspiracy to commit money laundering. The indictment alleges that Veliz Rios carried out a scheme with others to fraudulently bill approximately $15,349,089 worth of wound care and skin graft products on behalf of Medicare beneficiaries that never received and did not need them, and that Loves received approximately $10,033,562 in fraudulently induced reimbursements from Medicare. Further, the indictment alleges that upon receipt of the fraud proceeds, Veliz Rios caused bank transfers from the Loves bank account to shell companies that she also controlled. The indictment also alleges that Veliz laundered fraud proceeds by issuing checks from her shell company accounts to others. As a result of this broader investigation, the government has already seized more than $4,600,000 in fraud proceeds from the various accounts involved in this case. HHS-OIG and the FBI Miami investigated the case. This case is being prosecuted by Assistant U.S. Attorney Eduardo Gardea, Jr., and Assistant U.S. Attorney G. Raemy Charest-Turken is handling the asset forfeiture.
In United States v. Ismaray Alvarez Larzabal, Case No. 25-20287-CR-Gayles, Ismaray Alvarez Larzabal, 38, of Cape Coral, Florida, was charged by indictment with conspiracy to commit money laundering in connection with two fraudulent durable medical equipment (“DME”) companies that defrauded Medicare and Medicaid in the approximate amount of $8 million for DME that was medically unnecessary and not being provided as represented. As alleged in the indictment, Larzabal was the manager and registered agent of Larzabal Remodeling Services, LLC, which she used to launder approximately $615,078 of fraud proceeds into the company’s bank account and her personal bank accounts. HHS-Miami and the Medicaid Fraud Control Unit of the Florida Office of the Attorney General investigated the case. The case is being prosecuted by Special Assistant United States Attorney Marc Canzio of the U.S. Attorney’s Office for the Southern District of Florida. Assistant U.S. Attorney Mitch Hyman is handling asset forfeiture.
In United States v. Onel Marquez Rodriguez, a/k/a "Osiel," Case No. 25-20279-CR-Williams, Marquez Rodriguez, 55, of Miami, Florida, was charged by indictment with conspiracy to commit money laundering involving health care fraud proceeds and money laundering of health care fraud proceeds. The indictment alleges that between June 2019 and December 2023, the defendant, with others, laundered approximately $4,341,676 in health care fraud payments from health care companies and shell companies through hundreds of checks written to several money laundering companies. FBI Miami and HHS-OIG Miami investigated the case. Assistant United States Attorney Roger Cruz is prosecuting it. Assistant U.S. Attorney Joshua Paster is handling asset forfeiture.
In United States v. Approximately $1,008,709.82 in U.S. Currency Seized from Account No. 9116035605 at Citibank, N.A., in the Name of Florida Med Equip Corp., Case No. 25-cv-22648-RKA, a civil asset forfeiture action, the United States seeks to forfeit $1,008,709.42 in health care fraud proceeds seized from Florida Med Equip Corp.’s bank account. Florida Med was a Florida corporation located in Sunrise, Florida, that between January 2022 and September 2022 submitted false and fraudulent claims to Medicare for durable medical equipment that was medically unnecessary and not provided as represented. Many providers and Medicare beneficiaries told law enforcement that they did not prescribe, receive, request, or need any of the medical equipment that Florida Med cited when it billed Medicare. Medicare paid approximately $1,163,967 to Florida Med, and law enforcement seized almost all of it, $1,008,709. In this civil forfeiture complaint, the money is the defendant, and the United States alleges that this money is proceeds of a conspiracy to commit health care fraud and proceeds of health care fraud subject to civil asset forfeiture pursuant to 18 U.S.C. § 981(a)(1)(C). This case is being prosecuted by Asset Forfeiture Assistant U.S. Attorney Gabrielle Raemy Charest-Turken in the Southern District of Florida.
In United States v Jose Ramon Chang Moreno, Case No. 25-mj-8351-WM, Jose Ramon Chang Moreno, 38, of Miami, Florida, owner of Quantum Complete Inc. (“Quantum”), was charged via complaint with health care fraud. The complaint alleges that Chang Moreno carried out a scheme to fraudulently bill approximately $9,403,423 worth of wound care products, on behalf of Medicare beneficiaries that never received and did not need them, and that Quantum received approximately $4,980,418 in fraudulently induced reimbursements from Medicare. HHS-OIG and FBI Miami investigated the case. This case is being prosecuted by Assistant U.S. Attorney Shannon Shaw.
In United States v. Caleb Espinoza, Case No. 25-20291-CR-Altonaga, Caleb Espinoza, 28, of Weston, Florida, was charged by information with conspiracy to defraud the United States. As alleged in the Information, Espinoza created and enrolled with Medicare a series of durable medical equipment (“DME”) companies that he then sold to various conspirators who desired to submit fraudulent claims to Medicare. Espinoza and his co-conspirators falsified Medicare enrollment forms and other records to conceal the true ownership and management of the DME companies, which enabled the true owners who purchased the DME companies to immediately submit false and fraudulent claims to Medicare. The DME companies that Espinoza sold as part of the conspiracy made false and fraudulent claims totaling approximately $21,635,791 for orthotic braces and wound dressings that were medically unnecessary, ineligible for Medicare reimbursement, and not provided as billed. Medicare paid approximately $9,197,220 for these claims. FBI Miami and HHS-OIG investigated the case. The case is being prosecuted by Trial Attorney Angela J. Benoit, with substantial assistance from Jessica A. Massey of the Florida Strike Force. Assistant U.S. Attorney Sandra Demirci of the U.S. Attorney’s Office for the Southern District of Florida is handling asset forfeiture.
In United States v. Sean J. Alterman, Case No. 25-80105-CR-Middlebrooks, Sean J. Alterman, 37, of Lake Worth, Florida, was charged by information with conspiracy to commit health care fraud and conspiracy to offer and pay health care kickbacks in connection with a scheme to bill Medicare for medically unnecessary genetic testing. As alleged in the information, Alterman owned two laboratories through which he billed Medicare for doctors’ orders that he procured through kickbacks. Specifically, he paid call center operators to generate the orders by running deceptive telemarketing campaigns to persuade the Medicare beneficiaries to agree to the tests. The call centers then would “doctor chase” the beneficiaries’ physicians to sign orders for the tests by sending them faxes containing false, fraudulent, and misleading representations designed to induce them into ordering the tests. Alterman’s laboratories billed approximately $52 million to Medicare, of which about $36 million was paid. Alterman is forfeiting his primary residence located in Lake Worth, Florida, and his 2022 Rolls Royce Ghost as assets traceable to proceeds of the scheme. HHS-OIG and FBI Miami investigated the case. The case is being prosecuted by Trial Attorneys Reginald Cuyler Jr. and Aisha Schafer Hylton of the Florida Strike Force. Assistant U.S. Attorney Marx Calderon of the U.S. Attorney’s Office for the Southern District of Florida is handling asset forfeiture.
In United States v. John R. Robinson Jr., Case No. 25-80104-CR-Rosenberg, John R. Robinson Jr., 35, of Boca Raton, Florida, was charged by information with conspiracy to commit health care fraud and conspiracy to solicit and receive health care kickbacks in connection with a scheme to bill Medicare for medically unnecessary genetic testing. As alleged in the information, Robinson owned a call center through which he sold doctors’ orders for genetic tests to laboratories by running deceptive telemarketing campaigns to get the Medicare beneficiaries to agree to the tests. His call center then would “doctor chase” the beneficiaries’ physicians to sign orders for the tests by sending them faxes containing false, fraudulent, and misleading representations designed to induce them into ordering the tests. The laboratories to which he sold the orders billed approximately $62 million to Medicare, of which about $44 million was paid. HHS-OIG and FBI Miami investigated the case. The case is being prosecuted by Trial Attorneys Reginald Cuyler Jr. and Aisha Schafer Hylton of the Florida Strike Force. Assistant U.S. Attorney Marx Calderon of the U.S. Attorney’s Office for the Southern District of Florida is handling asset forfeiture.
In United States v. Marco Antonio Rosas Scamarone, et al., Case No. 25-60148-CR-Singhal, Marco Antonio Rosas Scamarone a/k/a “King Po,” 33, Renee Vazquez a/k/a “King Jungle,” 32, and Roberto Vasquez Morales, 32, all of Tamarac, Florida, and Jose Cristobal Mendez a/k/a “BayBay,” 33, of Coral Springs, Florida, were charged by indictment with conspiracy to defraud the United States for their roles in a scheme to fraudulently bill Medicare approximately $6.8 million for durable medical equipment (“DME”) that was medically unnecessary and procured through the payment of kickbacks and bribes to marketers, including to an offshore call center. Scamarone, Mendez, and Vazquez were also charged with conspiracy to commit money laundering and multiple counts of money laundering for their roles laundering the proceeds of the fraud through shell companies. As alleged in the Indictment, Scamarone and Mendez purchased two DME companies, Braces and Orthotics LLC and Stone Oak Durable Medical Equipment, LLC, and concealed their ownership of these companies from Medicare by employing Vazquez and another individual to serve as the listed owners of the companies. Scamarone and Morales paid kickbacks and bribes to co-conspirators, including one who operated an offshore call center based in the Philippines, to obtain Medicare beneficiary information and doctors’ orders used to bill Medicare for medically unnecessary DME. Medicare paid approximately $2,685,000 based on the false and fraudulent claims submitted. Scamarone, Mendez, and Vazquez then used shell companies held in the names of friends and relatives to launder fraud proceeds from the DME companies. Scamarone and Vazquez also concealed their involvement by making cash withdrawals from various accounts, including a $50,000 cash withdrawal from an account for Stone Oak. The case is being prosecuted by Assistant Chief Jamie de Boer of the Florida Strike Force and Assistant U.S. Attorney Alexander Thor Pogozelski of the Southern District of Florida, with substantial assistance from Trial Attorneys Jessica A. Massey and Claire Horrell of the Florida Strike Force. Assistant U.S. Attorney Daren Grove is handling asset forfeiture. FBI Miami, HHS-OIG, DOL-OIG, and MFCU investigated the case, with support from the Broward County Sheriff’s Office and DOL-EBSA. This case is part of an Organized Crime Drug Enforcement Task Forces (“OCDETF”) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
In United States v. Erit Estrada Espinosa, Case No. 25-60135-CR-Altonaga, Erit Estrada Espinosa, 52, of Miami, Florida, was charged by indictment with conspiracy to distribute a controlled substance and two counts of distributing a controlled substance. The indictment alleges that, between April 2022 and October 2022, the defendant conspired with others to distribute oxycodone. The indictment further alleges that the defendant distributed 160 tablets of 30mg oxycodone on September 23, 2022, and 145 tablets of 30mg oxycodone on October 21, 2022. FBI Miami, HHS-OIG Miami, and DEA Miami investigated the case. Assistant U.S. Attorney Alexander Thor Pogozelski is prosecuting it.
In United States v. Sergei Margulian et al., Case No. 25-60144-CR-Smith, Dr. Sergei Margulian, 58, of Hallandale Beach, Florida, and Damary Mendez, 53, of Miami, Florida, were charged by indictment with conspiracy to distribute a controlled substance and multiple counts of distributing a controlled substance. As alleged in the indictment, the defendants conspired to distribute at least 2,933,013 pills of oxycodone to patients of two pain clinics located in South Florida, ignoring obvious signs of addiction and drug diversion in these patients. Dr. Margulian, a licensed medical doctor who owned and operated the clinics, prescribed oxycodone to patients without medical need and on dates when he was out of the country and did not see or examine the patients. Mendez, an employee of the clinics, sent Margulian lists that contained patients’ names, dates of birth, and the number of pills of oxycodone to prescribe to them, knowing that Margulian had neither seen nor examined those patients on that date and knowing that Margulian would write electronic prescriptions for oxycodone for them. Approximately $74,000 was seized from the clinics and related bank accounts. FBI Miami and HHS-OIG investigated the case. The case is being prosecuted by DOJ Trial Attorney Jacqueline DerOvanesian of the Florida Strike Force. Assistant U.S. Attorney Nicole Grosnoff of the U.S. Attorney’s Office for the Southern District of Florida is handling asset forfeiture. This case is part of an Organized Crime Drug Enforcement Task Forces (“OCDETF”) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
In United States v. Olushola Yusuf et al., Case No. 25-60145-CR -Damian, Olushola Yusuf, 59, and Saman Cala Gimenez, 53, both of Tampa, Florida, were charged by indictment with conspiracy to distribute a controlled substance and five counts each of distributing and dispensing a controlled substance in connection with their roles in a scheme to illegally dispense oxycodone through two pharmacies, Boots LLC d/b/a Striderite Pharmacy (“Boots”) and Chans Pharmacy Plus, Inc. (“Chans”). As alleged in the indictment, from in or around April 2021 through in or around October 2024, the defendants, through Boots and Chans, dispensed at least 335,351 pills of oxycodone 30mg, which is highly addictive and dangerous, to patients of Boots and Chans who showed obvious signs of addiction and drug diversion. As alleged in the indictment, Yusuf, a licensed pharmacist who owned and operated Boots and Chans, dispensed oxycodone to nearly all of Boots’ and Chans’ patients without medical need and also dispensed it to patient recruiters, including Gimenez. Gimenez purchased numerous prescriptions for oxycodone from multiple patients to fill at Boots and Chans in order to aggregate the pills. Patients and patient recruiters often paid Boots and Chans in cash even though they had insurance that covered some or all of the cost of prescription medications. DEA, FBI Miami, and HHS-OIG investigated the case. The case is being prosecuted by DOJ Trial Attorney Jacqueline DerOvanesian of the Florida Strike Force. Assistant U.S. Attorney Nicole Grosnoff of the U.S. Attorney’s Office for the Southern District of Florida is handling asset forfeiture.
In United States v. Irakli Nakashidze, Case No. 25-03116-MJ-D’Angelo, Irakli Nakashidze, 34, of Miami, Florida, was charged by complaint with money laundering in connection with the submission of approximately $113 million in fraudulent claims for durable medical equipment. As alleged in the complaint, Nakashidze, the owner of ABRH Care Inc., laundered hundreds of thousands of dollars paid by insurers to ABRH for medical equipment and wound dressings that were never actually provided to beneficiaries. HHS-OIG, FBI Miami, and OPM-OIG investigated the case. HSI, USCIS-FDNS, and USMS provided valuable assistance. The case is being prosecuted by Trial Attorneys Claire Horrell and Angela Benoit of the Florida Strike Force. Assistant U.S. Attorney Joshua Paster of the U.S. Attorney’s Office for the Southern District of Florida is handling asset forfeiture.
In United States v. Christopher Harwood, Case No. 25-60138-CR-Dimitrouleas, Christopher Harwood, 43, of Ft. Lauderdale, Florida, was charged by indictment with conspiracy to commit health care fraud and wire fraud, health care fraud, conspiracy to solicit and receive health care kickbacks, and solicitation and receipt of kickbacks in connection with a federal health care program, in connection with a $46.2 million scheme to generate and sell signed doctors’ orders for medically unnecessary DME and laboratory tests. As alleged in the Indictment, Harwood and his co-conspirators used telemarketing companies to recruit Medicare beneficiaries, and then Harwood arranged for medical providers to sign doctors’ orders for DME and laboratory tests for the beneficiaries regardless of medical necessity, in the absence of a doctor-patient relationship, without a physical examination, and frequently without even speaking to the beneficiary at all. Harwood solicited and received illegal kickbacks and bribes from purported marketers and the owners of DME companies and laboratories for the signed doctors’ orders. Harwood also acquired, managed, and operated multiple DME suppliers and used the doctors’ orders he generated to submit false and fraudulent claims to Medicare himself. Harwood used a web platform he called TelevisitMD as the nucleus of his operations. HHS-OIG and FBI Miami investigated the case. The case is being prosecuted by Trial Attorneys Owen Dunn and Jennifer Burns of the Florida and National Rapid Response Strike Forces. Assistant U.S. Attorney Annika Miranda is handling asset forfeiture. Trial Attorney Evan Schlom of the Special Matters Unit has provided invaluable assistance.
In United States v. Susan Braddock, Case No. 25-80103-CR-Rosenberg, Susan Braddock, 63, of Fort Worth, Texas, was charged by information with conspiracy to commit health care fraud in connection with a $26.4 million Medicare fraud scheme. As alleged in the information, Braddock owned and operated a telemedicine company called Big Easy Bad Dog (“BEBD”), through which she billed Medicare for telemedicine consultations that were medically unnecessary, ineligible for Medicare reimbursement, and not provided as billed. Through BEBD, Braddock also sold doctors’ orders to laboratories for medically unnecessary genetic tests based on the purported telehealth consultations. BEBD and the laboratories submitted approximately $24,666,245 in false and fraudulent claims to Medicare as a result of Braddock’s conduct, and Medicare paid approximately $9,581,330 based on these claims. HHS-OIG and FBI Miami investigated the case. The case is being prosecuted by Trial Attorneys Reginald Cuyler Jr. and Owen Dunn of the Florida Strike Force. Assistant U.S. Attorney Mitchell Hyman is handling asset forfeiture.
U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida, acting Special Agent in Charge Jesus Barranco of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Miami Regional Office, and Special Agent in Charge Brett D. Skiles of the FBI, Miami Field Office made the announcement.
The United States Attorney’s Office for the Southern District of Florida, worked with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), FBI Miami, and the Medicaid Fraud Control Unit of the Florida Office of the Attorney General to investigate and prosecute these cases filed during the enforcement period.
The Health Care Fraud Unit’s National Rapid Response, Florida, Gulf Coast, Los Angeles, Midwest, New England, Northeast, and Texas Strike Forces; U.S. Attorneys’ Offices for the District of Arizona, Central District of California, Northern District of California, Southern District of California, District of Columbia, District of Connecticut, District of Delaware, Middle, District of Florida, Northern District of Florida, Southern District of Florida, Middle, District of Georgia, District of Idaho, Northern District of Illinois, Eastern District of Kentucky, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, District of Maine, District of Massachusetts, Eastern District of Michigan, Northern District of Mississippi, Southern District of Mississippi, District of Montana, District of Nevada, District of New Hampshire, District of New Jersey, Eastern District of New York, Northern District of New York, Southern District of New York, Western District of New York, Eastern District of North Carolina, Western District of North Carolina, District of North Dakota, Northern District of Ohio, Southern District of Ohio, Northern District of Oklahoma, Western District of Oklahoma, District of Oregon, Eastern District of Pennsylvania, District of South Carolina, Middle District of Tennessee, Western District of Tennessee, Northern District of Texas, Southern District of Texas, Western District of Texas, District of Vermont, Eastern District of Virginia, Western District of Washington, and Northern District of West Virginia; and State Attorney Generals’ Offices for Arizona, California, Georgia, Illinois, Indiana, Louisiana, Massachusetts, Missouri, New York, Ohio, and Pennsylvania are prosecuting the cases in the National Health Care Fraud Takedown, with assistance from the Health Care Fraud Unit’s Data Analytics Team.
A complaint, information, or indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
You may find a copy of this press release (and any updates) 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 at http://pacer.flsd.uscourts.gov.
###
South Florida Man Who Visited Colombia as a Child Sex Tourist Sentenced to Life in PrisonRead the Press Release
MIAMI – A Miami man was sentenced to life in federal prison after pleading guilty to traveling to Colombia for the purpose of having sex with minors.
According to court documents, law enforcement officers stopped Stefan Andres Correa, 42, on the jet bridge at Miami International Airport as he attempted to board a flight to Bogota, Colombia. During an outbound border search, officers discovered nine cellular phones in Correa’s possession. A search of the cellular phones uncovered over 100 videos of Correa having sex with over 50 minors. The minors were between 11 and 17 years of age. A search of one of the cell phones also revealed a text message exchange with a sex trafficker in Colombia, who Correa agreed to pay $300,000 Colombian pesos (the equivalent of $75 U.S. dollars) to arrange for commercial sex with children that were 10 to 12 years old.
“The United States of America will always seek to protect children near and far,” said U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida. “This prosecution and this sentence should serve as a warning to any predator who is trying to travel through our District to prey on children. We will find you and prosecute you to the fullest extent of the law. A life sentence for this conduct is entirely appropriate. Predators such as Correa are a scourge upon humanity, and must be dealt with accordingly.”
“To the brave survivors, your courage was the driving force in this case, and I hope that the life sentence of this predator brings you some measure of justice and relief,” said Jose R. Figueroa, Acting Special Agent in Charge of Homeland Security Investigations (HSI) in Miami. “This investigation underscores the global and horrific nature of child sex trafficking and the importance of international cooperation to end it. I thank our federal and Colombian counterparts for their steadfast dedication and reiterate HSI’s continued commitment to holding those who prey on minors fully accountable.”
HSI Miami investigated the case with assistance from HSI offices in Cleveland, Ohio and Bogota, Colombia, as well as U.S. Customs and Border Protection (CBP). The Narcotic and Dangerous Drug Section’s Office of the Judicial Attaché in Bogota, Colombia also provided critical assistance.
Major Crimes Deputy Chief Assistant U.S. Attorney Lauren Astigarraga prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
To report suspected human trafficking or to obtain resources for victims, please call 1-888-373-7888; text “BeFree” (233733), or live chat at HumanTraffickingHotline.org. The toll-free phone, SMS text lines, and online chat function are available 24 hours a day, 7 days a week, 365 days a year. Help is available in English, Spanish, Creole, or in more than 200 additional languages. The National Hotline is not managed by law enforcement, immigration, or an investigative agency. Correspondence with the National Hotline is confidential, and you may request assistance or report a tip anonymously.
To report online child sexual exploitation visit https://report.cybertip.org/ or call 1-800-843-5678. The Cyber Tip Line is operated by the National Center for Missing and Exploited Children (NCMEC) in partnership with HSI and other law enforcement agencies.
To learn more about the National Resource Hotline, visit http://www.humantraffickinghotline.org. To learn more about the U.S. Department of Justice’s efforts to combat human trafficking, visit www.justice.gov/humantrafficking.
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 at http://pacer.flsd.uscourts.gov, under case number 24-cr-20186.
###
Headed to Prison: Disbarred South Florida Lawyer Who Stole Client FundsRead the Press Release
MIAMI – A federal district judge in Ft. Lauderdale sentenced disbarred lawyer John Spencer Jenkins yesterday to 33 months’ imprisonment for misusing more than three quarters of a million dollars of his clients’ money.
According to plea documents and information provided during the sentencing hearing, Jenkins’ clients wired funds into his law firm’s Interest on Trust Account (“IOTA”) business account and general business account for the purpose of receiving legal services from Jenkins. In relation to his representation of one client’s estate, Jenkins admitted that the executor of the estate wired funds into his business accounts so that Jenkins would manage the distribution of the assets among his client’s designees. However, Jenkins wired those funds into separate accounts for his own personal use.
During the sentencing hearing, Judge David S. Leibowitz emphasized the importance of holding accountable people with Bar cards because they are uniquely situated with holding the public’s trust as licensed attorneys.
U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida and Special Agent in Charge Brett Skiles of the FBI Miami made the announcement.
FBI Miami investigated the case. Assistant United States Attorney Altanese Phenelus prosecuted it.
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 at http://pacer.flsd.uscourts.gov under case number 24-CR-60172-DSL.
###
Dozens Charged in South Florida with Federal Firearms and Drug Trafficking Crimes, 80 Firearms and Multiple Kilos of Fentanyl, Other Dangerous Drugs SeizedRead the Press Release
MIAMI - U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida and acting Special Agent in Charge Gordon Mallory of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Miami Field Division announced today the results of a two-month, multi-agency effort targeting repeat offenders in South Florida during a press conference.
In April, the ATF launched “Operation Showdown,” an enhanced enforcement initiative focused on combating violent crime and the illegal possession and trafficking of firearms in South Florida. As part of this initiative, ATF personnel from around the country were deployed to work alongside federal and local law enforcement agencies, bringing with them a broad range of expertise—including tactical operations, technical support, and undercover capabilities.
So far, the ATF-led initiative has resulted in federal charges and arrests of 31 Miami-Dade and Broward County residents with firearms and narcotics trafficking offenses. In total, 80 firearms were seized along with 900 rounds of ammunition. The seized firearms include automatic and semiautomatic weapons, rifles, handguns, and machine gun conversion devices. Additionally, approximately 10 kilograms of illegal narcotics were confiscated, including fentanyl, methamphetamine, cocaine, crack, oxycodone, and others.
“Drugs and guns continue to fuel the violence that threatens the safety of our community,” said U.S. Attorney O’Byrne. “By prosecuting violent offenders, in close collaboration with ATF and other federal and local law enforcement agencies, we send a clear and unified message that South Florida will not be defined by fear but by safety and justice. I commend the agents and officers that made Operation Showdown a success.”
“This Enhanced Enforcement Initiative in Southern Florida has resulted in long term results,” said acting Special Agent in Charge Mallory. “ATF will continue to prioritize keeping violent offenders, those who traffic, possess, and utilize firearms illegally, and narcotics traffickers, out of our communities, because it is a critical component of keeping our communities safe. This targeted program could not have been possible without the support and collaboration from our local and federal partners. ATF strives to foster and maintain these relationships to ensure that we safeguard the public that we serve.”
U.S. Attorney O’Byrne and acting ATF Miami Special Agent in Charge Mallory acknowledged and commended the investigative support and assistance from the United States Marshals Service, Drug Enforcement Administration, Homeland Security Investigations, Broward Sheriff’s Office, Miami-Dade Sheriff’s Office, and The Fort Lauderdale Police Department.
The federal cases are being coordinated by Deputy Chief Sharad Motiani of the U.S. Attorney’s Office’s International Narcotics and Money Laundering Section.
United States v. Bethel, Case No. 25-cr-20256, is being prosecuted by Assistant U.S. Attorney Andrea Montes.
United States v. Breedlove, Case No. 25-mj-06411, is being prosecuted by Assistant U.S. Attorney Kevin Gerarde.
United States v. Doe, Case No. 25-mj-06390, is being prosecuted by Assistant U.S. Attorney Nicholas Carre.
United States v. Downing, Case No. 25-mj-06403, is being prosecuted by Assistant U.S. Attorney Christopher Killoran.
United States v. Ferdinand, Case No. 25-mj-06409, is being prosecuted by Assistant U.S. Attorney Joseph Mahoney.
United States v. Graham, Case No. 25-cr-60143, is being prosecuted by Assistant U.S. Attorney Joseph Mahoney.
United States v. Harris, Case No. 25-cr-20264, is being prosecuted by Assistant U.S. Attorney Audrey Pence Tomanelli.
United States v. Holmes, Case No. 25-cr-60136, is being prosecuted by Assistant U.S. Attorney Jacob Koffsky.
United States v. James et al., Case No. 25-cr-20212, is being prosecuted by Assistant U.S. Attorney Kseniya Smychkouskaya.
United States v. Jefferson, Case No. 25-cr-20206, is being prosecuted by Assistant U.S. Attorney Jacob Koffsky.
United States v. McIntyre, Case No. 25-cr-20113, is being prosecuted by Assistant U.S. Attorney Jeremy Fugate.
United States v. Memnon et al., Case No. 25-mj-06406, is being prosecuted by Assistant U.S. Attorney Kevin Gerarde.
United States v. Moultry, Case No. 25-cr-60131, is being prosecuted by Assistant U.S. Attorney Jeremy Thompson.
United States v. Rodriguez, Case No. 25-cr-20246, is being prosecuted by Assistant U.S. Attorney Brianna Coakley.
United States v. Roxton, Case No. 25-mj-06404, is being prosecuted by Assistant U.S. Attorney Joseph Mahoney.
United States v. Washington et al., Case No. 25-mj-03196, is being prosecuted by Assistant U.S. Attorney Elena Smukler.
United States v. Williams, Case No. 25-mj-06402, is being prosecuted by Assistant U.S. Attorney Christopher Killoran.
United States v. Williams, Case No. 25-cr-20112, is being prosecuted by Assistant U.S. Attorney Jeremy Fugate.
United States v. Worthy, Case No. 25-cr-60139, is being prosecuted by Assistant U.S. Attorney Kseniya Smychkouskaya.
This case is part of Operation Take Back America a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
The charges contained in indictments and complaints are not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Note: images on display during the press conference can be viewed here.
###
South Florida Medical Providers Agree to Pay $810,301 to Resolve Allegations of Fraudulently Billing MedicareRead the Press Release
MIAMI - Vascular and Interventional Specialists, LLC (VIS); Vascular and Spine Institute, Inc. (VSI); Oscar Sosa, M.D.; and Osmany DeAngelo, D.O. have agreed to pay $810,301 to resolve allegations that they violated the False Claims Act by submitting claims for medically unnecessary percutaneous transluminal angioplasties (PTA)—a procedure that is performed to increase blood flow through a diseased or abnormally narrowed vessel.
The United States alleged that from 2015 to 2024, VIS, VSI, Sosa, and DeAngelo performed hundreds of PTAs without conducting any diagnostic inquiry or making a clinical diagnosis to support the medical necessity of the PTAs they performed. VIS, VSI, Sosa, and DeAngelo subsequently submitted claims to federal healthcare programs, including Medicare, for the PTAs that were not reasonable or medically necessary.
VIS is an endovascular surgery center in Miami, which provides vascular and interventional radiology services with a specialty in the diagnosis and treatment of vascular disease as well as the management and maintenance of dialysis access. VSI submitted bills to federal healthcare programs for services provided by VIS and its individual practitioners. DeAngelo and Sosa are individual practitioners who provided medical services, including PTAs, on behalf of VIS.
The allegations arose from a lawsuit filed by a whistleblower, Emilio Lopez, M.D., under the qui tam provisions of the False Claims Act. Under the False Claims Act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. Dr. Lopez will receive approximately $186,369 from the recovery announced today.
U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida and acting Special Agent in Charge Jesus Barranco of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Miami Regional Office announced the settlement.
HHS-OIG investigated the matter.
Assistant U.S. Attorney Matthew J. Feeley handled the litigation.
Note: See the settlement agreement here.
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 at http://pacer.flsd.uscourts.gov, under case number 20-cv-22046.
###
Lobbyist Who Evaded Payment of More than $2 Million in Taxes Sentenced to PrisonRead the Press Release
MIAMI – Eston “Dusty” Melton III, a lobbyist operating in Miami-Dade and Palm Beach Counties, was sentenced on June 17, 2025, to 18 months in federal prison for evading the payment of over $2 million in federal income taxes.
According to court documents and Melton’s plea agreement, Melton owned and operated a lobbying business in both Miami-Dade and Palm Beach Counties. For tax years 2005 through 2014, Melton filed personal federal income tax returns showing a total tax liability of $1,313,840. With penalties and interest, his total tax debt rose to $2,143,381. Melton made payments totaling $62,100 toward this debt. Additionally, the IRS collected $537,231 through liens and levies.
Between 2012 and 2021, in order to prevent the IRS from collecting his growing tax debt, Melton engaged in a sophisticated scheme to conceal his assets and income in an effort to prevent the IRS from collecting on his increasing tax debt. When an IRS Revenue Officer indicated the IRS intended to levy (or foreclose) on Melton’s house, Melton appeared to cooperate by attempting to sell the house. Melton purported to try to sell the house himself, while actually taking steps to undermine the sale. Melton finally sold the house six years after purporting to put it on the market.
Melton also took other actions to avoid IRS collection efforts. He paid roughly $80,000 in cash from his lobbying business to his wife. He transferred all his clients to a new lobbying business that was supposedly owned by his wife, then continued providing lobbying services there for little or no pay. Melton helped his wife purchase a home solely in her name, using funds primarily from his own business, and transferred ownership of cars and life insurance policies to her as well.
In addition to his prison sentence, U.S. District Judge Robin L. Rosenberg ordered Melton to serve three years of supervised release and to pay $1,736,586 in restitution.
U.S. Attorney Hayden P. O’Bryne for the Southern District of Florida, and Emmanuel Gomez, Special Agent in Charge, IRS Criminal Investigation, made the announcement.
IRS Criminal Investigation investigated the case.
Assistant U.S. Attorney Marc Osborne for the Southern District of Florida prosecuted the case.
You may find a copy of this press release (and any updates) 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 at http://pacer.flsd.uscourts.gov, under case number 25-cr-80001.
###
Nicaraguan National Extradited from Spain for International Extortion and Wire Fraud SchemeRead the Press Release
MIAMI – Ernesto Ortega Padgett, a Nicaraguan national who was previously residing in Miami, FL and was deported from the United States in January 2020, made his initial appearance in a federal court in Miami on June 16. Ortega, a fugitive wanted in the United States, Spain, and Panama, was extradited from Madrid, Spain, to Miami to face federal charges related to an international wire fraud, extortion, and money laundering conspiracy that resulted in more than $29 million in losses to victims located across the United States.
Ortega, 41, is charged in a 27-count indictment returned by a federal grand jury on Feb. 2, 2023. The charges include:
Conspiracy to Commit Wire Fraud,
Wire Fraud,
Conspiracy to Commit Hobbs Act Extortion,
Conspiracy to Commit Money Laundering,
Making a Communication in Interstate Commerce Containing a Threat to Injure,
Engaging in Transactions Involving Criminally Derived Property, and
Conspiracy to Transport Stolen Property
According to the indictment, Ortega’s criminal scheme began in 2020 and targeted businesses across the United States. Ortega and his co-conspirators posed as bank representatives and used a combination of technology and social engineering to deceive victims into providing sensitive account information. Ortega and his co-conspirators then used that information to access victims’ bank accounts and initiate unauthorized wire transfers.
Ortega relied on an international network of money launderers to receive the stolen funds, withdraw them in cash, and forward the proceeds to accounts directly under Ortega’s control, often in the form of cryptocurrency. During commission of the scheme, Ortega and his co-conspirators used extortion, threatened force, and fear of injury to compel some money launderers to take part in the scheme.
Ortega conducted the scheme spanning multiple countries and continents, which resulted in losses exceeding $29 million.
Ortega had also been charged in Spain for related criminal conduct before fleeing that jurisdiction, as well as having pending charges in Panama. He remained a fugitive for nearly a year, with active warrants in all three countries. In December 2023, law enforcement received intelligence that Ortega would be traveling to Paris, France, for Christmas. Law enforcement subsequently intercepted Ortega, who was apprehended at the Charles de Gaulle International Airport in Paris. Ortega was then extradited back to Madrid pursuant to a European Union fugitive warrant, where he remained until extradited to the United States on June 13, pursuant to an indictment issued by the Southern District of Florida.
If convicted, Ortega faces up to 20 years in prison on the conspiracy to commit wire fraud charge, up to 20 years in prison on the wire fraud charge, up to 20 years in prison on the Hobbs Act charge, up to 20 years in prison on the conspiracy to commit money laundering charge, up to 20 years in prison on the making a communication in interstate commerce containing a threat to injure charge, up to 10 years in prison for the engaging in transactions involving criminally derived property charge, and up to five years in prison for the conspiracy to transport stolen property. Each count also carries the possibility of a fine and supervised release upon completion of any prison sentence. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida; Special Agent in Charge Jason Scalzo of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) Electronic Crimes Unit; and Special Agent in Charge Rafael Barros of the US Secret Service (USSS), Miami Field Office, made the announcement.
FDIC-OIG and the U.S. Secret Service are investigating the case. The Justice Department’s Office of International Affairs provided significant assistance in securing Ortega’s arrest and extradition. The United States also thanks the Government of Spain, French authorities, the USSS Madrid Resident Office, and the USSS Paris Field Office for their valuable assistance.
Assistant U.S. Attorneys Robert Moore and Michael Brenner are prosecuting the case. Assistant U.S. Attorney Gabrielle Raemy Charest-Turken is handling asset forfeiture.
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 at http://pacer.flsd.uscourts.gov, under case number 23-cr-20049.
###
Former SBA Employee from South Florida Headed to Federal Prison After Defrauding COVID-19 Relief ProgramsRead the Press Release
MIAMI – A former Small Business Administration (SBA) employee who fraudulently obtained COVID-19 relief money to spend on luxury items was sentenced on June 13.
United States District Judge Rodolfo A. Ruiz II sentenced Malaina Chapman, 38, to 54 months imprisonment, followed by three years of supervised release. Judge Ruiz further ordered Chapman to pay $1,297,178 in restitution.
According to court documents and statements made in court, Chapman was employed as a Disaster Relief Specialist with the SBA from September 28, 2020 through March 18, 2021. While employed by the SBA, Chapman became involved in multiple schemes to defraud the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan program, as well as local credit unions and local and state programs designed to assist those affected by the COVID-19 pandemic.
On February 10, 2021, Chapman submitted an online loan application in the name of Upscale Credit Lounge, LLC to a lender. In support of her application, Chapman submitted a false and fraudulent Schedule C (Form 1040) that reported gross revenues of $103,674 and a tentative profit of $81,860 for 2020. The lender relied upon the representations in Chapman’s application to approve a loan in the amount of $17,052.50.
On February 19, 2021, Chapman submitted an online PPP loan application with the lender on behalf of DA TRAP, LLC. In her application, Chapman claimed that she had four employees and an average monthly payroll of $14,191. In support of her application, Chapman submitted a false and fraudulent Employers Quarterly Tax Return (Form 941), which purportedly documented the wages paid by DA TRAP. Relying on the representations in the application, the lender approved a loan in the amount of $35,477.50.
In total, Chapman received $230,246 for the loan applications she submitted on her own behalf.
Chapman also conspired with others to submit false and fraudulent PPP loan applications on their behalf. Six defendants were charged under case number 24-cr-20079. For that conspiracy, Chapman was held accountable for losses of $837,716.
In addition to defrauding the PPP program, Chapman also took advantage of the State of Florida and the City of Miami’s COVID-19 Emergency Rental Assistance Programs.
Chapman spent the money on luxury items from Louis Vuitton, Nordstrom, Goyard, Chanel, Fendi, as well as a designer teacup puppy. Chapman also spent over $7,500 on a stay at a Key Largo luxury resort.
U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida; Special Agent in Charge Jonathan Ulrich, U.S. Postal Service Office of Inspector General (USPS OIG); Special Agent in Charge Amaleka McCall-Brathwaite, U.S. Small Business Administration Office of Inspector General (SBA OIG), Investigations Division’s Eastern Region; and Special Agent in Charge Mathew Broadhurst of the U.S. Department of Labor Office of Inspector General (DOL-OIG), Southeast Region, made the announcement.
This case was investigated by USPS-OIG, SBA-OIG, and DOL-OIG.
Assistant U.S. Attorney Daniel Bernstein prosecuted the case.
Assistant U.S. Attorney Gabrielle Charest-Turken is handling asset forfeiture.
In March 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Among other sources of relief, the CARES Act authorized and provided funding to the SBA to provide EIDLs to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred. EIDL applications were submitted directly to the SBA via the SBA’s on-line application website, and the applications were processed and the loans funded for qualifying applicants directly by the SBA.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. For more information on the department’s response to the pandemic, please click here.
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 at http://pacer.flsd.uscourts.gov, under case number 24-cr-20321.
###
Investor Pleads Guilty to Filing False Form with IRS to Shield $30 Million in Capital Gains under Puerto Rico Tax Incentive ProgramRead the Press Release
MIAMI - On June 13, Suresh Gajwani, 78, pleaded guilty to making a false and fraudulent statement to the Internal Revenue Service (IRS).
According to the facts admitted at the change of plea hearing, in 2018, Gajwani was a resident of Miami-Dade County. In October 2019, Gajwani owned a company that held stocks and options that had substantially appreciated in value by tens of millions of dollars. In anticipation of the tax on those gains, Gajwani sought to take advantage of a tax incentive program offered pursuant to Puerto Rico Act 60. Under the program, bona fide residents of Puerto Rico could apply for an exemption from federal taxes on certain capital gains realized after the individual became a Puerto Rican resident. Gajwani did not become a bona fide resident of Puerto Rico until January 1, 2020, which was after the stock portfolio had accrued built-in gains.
Gajwani was advised by an accountant and attorney to convert his company to a small business corporation (known as an S Corporation) under the Internal Revenue Code to take advantage of the Puerto Rico capital gains tax exemption. Gajwani was also advised by an attorney that built-in gains for U.S. residents accrued prior to becoming a resident of Puerto Rico could be exempt from federal taxes.
In order to convert the company retroactively, in January 2020, Gajwani submitted a false document to the IRS that claimed that the company had intended to convert as of January 1, 2019. Gajwani knew that he did not intend to treat the company as an S Corporation as of January 1, 2019, and that the real reason for the submission of the paperwork to the IRS was to avoid paying capital gains taxes. Based upon Gajwani’s false statement, the IRS granted Gajwani’s request.
In 2019, Gajwani’s company had a portfolio with approximately $30 million in built-in gains. Had the IRS not allowed Gajwani’s company to convert to an S Corporation retroactively, the company would have owed approximately $7 million in capital gains taxes for 2019.
Gajwani is scheduled to be sentenced on August 30, by Chief U.S. District Judge Cecilia M. Altonaga after considering the U.S. Sentencing Guidelines and other statutory factors. Gajwani faces a maximum penalty of three years in prison, and he has agreed to repay approximately $15.3 million in restitution (taxes, interest, and penalties) to the IRS.
U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida, acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division, and Emmanuel Gomez, Special Agent in Charge, IRS Criminal Investigation, made the announcement.
IRS Criminal Investigation is investigating the case.
Senior Litigation Counsel Michael N. Berger and Trial Attorney Curtis Weidler of the Tax Division are prosecuting the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 25-cr-20117.
###
Three Indicted for Elaborate $24 Million Transnational Gold Smuggling and Money Laundering SchemeRead the Press Release
MIAMI – A federal indictment unsealed today charges Beatriz Eugenia Hernandez (B. Hernandez), 57; her son Carlos Mathias Gonzalez, 26; and her brother Esteban Hernandez (E. Hernandez), 47, of an elaborate transnational gold smuggling and money laundering scheme that involved the wire transfer of over $24 million from the United States to Colombia.
According to allegations in the indictment, B. Hernandez, Gonzalez, and E. Hernandez received shipments from a Colombian company that purported to contain various types of metal widgets when, in fact, half of the packages would contain undeclared gold cylinders that were inserted within the widgets and painted over to avoid detection. B. Hernandez, Gonzalez, and E. Hernandez would extract the gold cylinders, sell the gold through two U.S. corporate entities, and then wire the funds between the entities’ bank accounts before ultimately wiring the funds to the Colombian company’s accounts in Colombia. The scheme’s systematic cycle of gold importation, followed by international wire transfers, resulted in approximately $24,628,943 being wired to Colombia from the United States between December 2018 and May 2022.
U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida and acting Special Agent in Charge José R. Figueroa of Homeland Security Investigations (HSI), Miami Field Office, made the announcement.
HSI investigated the case with assistance from Customs and Border Protection Office of Field Operations.
Assistant U.S. Attorney Zachary A. Keller is prosecuting this case.
An indictment contains mere allegations, and all defendants are presumed innocent unless and until proven guilty in a court of law.
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 at http://pacer.flsd.uscourts.gov, under case number 25-cr-20236.
###
Methamphetamine Trafficker Sentenced to 10 YearsRead the Press Release
MIAMI – Luther Trovian Jones, 52, from Sebring, Florida, was sentenced yesterday by a South Florida federal district judge to 121 months for distribution of methamphetamine and possession with intent to distribute methamphetamine.
Jones was the subject of a joint investigation between the Drug Enforcement Administration and the Highlands County Sheriff’s Office that uncovered Jones’s methamphetamine distribution scheme. The investigation revealed that Jones, on multiple occasions, either sold, or was found in possession of distribution quantities of methamphetamine.
In total, Jones was responsible for 265.79 grams of methamphetamine that was 80 percent pure or higher, along with 29.8 grams of fentanyl.
Hayden P. O’Byrne, United States Attorney for the Southern District of Florida; Deanne L. Reuter of the Drug Enforcement Administration (DEA), Miami Field Division; and Paul Blackman, Highlands County Sheriff, made the announcement.
DEA Miami Field Division and Highlands County Sheriff’s Office investigated the case. Assistant United States Attorney Christopher Hudock is prosecuting it.
You may find a copy of this press release (and any updates) 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 at http://pacer.flsd.uscourts.gov, under case number 24-cr-14003.
###
Illegal Alien from Dominican Republic Sentenced for Impersonating U.S. Citizen to Vote in Federal ElectionRead the Press Release
MIAMI – Carlos Abreu, 36, has been sentenced to 65 months in prison followed by three years supervised release, after pleading guilty in two consolidated federal cases (24cr60155 and 25cr60015) to the following charges: (1) falsely claiming United States citizenship to register to vote; (2) using a United States citizen’s name to vote; (3) possessing firearms as an alien without lawful status; (4) making false statements in support of a passport application; and (5) aggravated identity theft. As a condition of his supervised release, he was also ordered to turn himself into immigration authorities for removal proceedings.
According to the two factual proffers, Abreu entered the United States without inspection and, in 2007, assumed the identity of the victim, “C.R.V.” Between 2007 and his August 2024 arrest, Abreu held himself out as “C.R.V.” to Federal, state, and local government agencies. The victim, “C.R.V.,” is a United States citizen living in Puerto Rico who did not know Abreu.
Abreu obtained a Florida driver’s license in 2007. He registered to vote under the name “C.R.V.” in 2016, and renewed his registration in 2020. He admitted to voting in federal elections in 2016 and 2022. Abreu also admitted to obtaining a Florida concealed carry permit in “C.R.V.’s” name and purchasing four firearms. Abreu also conceded that, in 2021, he had attempted to obtain U.S. passports for his two minor daughters as well as himself, using “C.R.V.’s” name and personal identifying information, all without lawful authorization.
United States Attorney Hayden P. O’Byrne for the Southern District of Florida, and Acting Special Agent in Charge Michael Conklin of the U.S. Department of State Diplomatic Security Service (DSS) Miami Field Office made the announcement.
DSS’ Miami Field Office investigated the case. The DSS San Juan Resident Office in Puerto Rico and ATF Miami provided invaluable assistance. Assistant U.S. Attorneys Brianna Coakley and Daniel Rosenfeld are prosecuting the case. Assistant U.S. Attorney Nadya Z. Cheatham is handling asset forfeiture.
You may find a copy of this press release (and any updates) 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 at http://pacer.flsd.uscourts.gov, under case numbers 24-cr-60155 and 25-cr-60015.
###
Florida Fuel Supplier Charged in Multimillion-Dollar Scheme to Defraud U.S. Department of Defense, other Federal AgenciesRead the Press Release
MIAMI – A federal grand jury in Miami returned an indictment charging a Florida business owner with multiple counts of wire fraud, money laundering, and forgery for orchestrating a scheme to defraud the U.S. Department of Defense and other federal agencies by submitting altered and fake invoices to U.S. Navy ships and other vessels through the SEA Card Program, which allows U.S. vessels to purchase critical fuel from suppliers at ports around the world.
According to court documents filed in the Southern District of Florida, between August 2022 and January 2024, Jasen Butler, 37, of Jupiter, Florida, the owner of Independent Marine Oil Services LLC, submitted dozens of falsified documents to multiple U.S. warships — including the USS Patriot — demanding and receiving over $5 million dollars in payments for phony expenses that Butler had not incurred. These ships were attempting to purchase fuel in international ports such as Saudi Arabia, Singapore, and Croatia, among others. Butler also concealed his identity from government officials by using a false name and feigning employment by a fictitious fuel division of a different company. As alleged in the indictment, Butler used the millions in fraud proceeds to personally enrich himself and purchase multiple properties, including in Florida and Colorado.
“Our office is steadfast in its commitment to prosecute individuals that seek to unjustly profit at the expense of the U.S. military,” said U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida. “Such fraud undermines military readiness and jeopardizes the dedicated service members who selflessly defend our country.”
“This indictment sends a clear, public message: the Antitrust Division and its Procurement Collusion Strike Force under President Trump will not rest until all who defraud the brave men and women of the U.S. military and the American taxpayers receive swift justice,” said Assistant Attorney General Abigail A. Slater of the Justice Department’s Antitrust Division.
“Investigating complex fraud schemes which impact U.S. Coast Guard operations is a priority for CGIS,” said Special Agent in Charge Josh Packer of the Coast Guard Investigative Service (CGIS) Southeast Field Office. “CGIS remains committed to working with our law enforcement partners to investigate any fraud which undermines the integrity of the Coast Guard’s supply chain.”
“Mr. Butler’s alleged involvement in unlawfully submitting fraudulent invoices related to U.S. naval ships receiving fuel during port visits is an affront to the warfighter and taxpayer,” said Special Agent in Charge Greg Gross of the Naval Criminal Investigative Service (NCIS) Economic Crimes Field Office. “NCIS remains committed to thoroughly investigating those who commit fraud impacting the Department of Navy.”
If convicted, Butler faces maximum penalties of 20 years in prison for each count of wire fraud, up to 10 years for each count of forgery, and up to 10 years for each count of money laundering. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the Coast Guard Investigative Service, Defense Criminal Investigative Service, and Naval Criminal Investigative Service.
Assistant Chief Sara Clingan and Trial Attorney Jonathan Pomeranz of the Antitrust Division’s Washington Criminal Section are prosecuting the case.
Anyone with information about this investigation or other procurement fraud schemes should notify the PCSF at www.justice.gov/atr/webform/pcsf-citizen-complaint. The Justice Department created the PCSF in November 2019. It is a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government — federal, state and local. For more information, visit www.justice.gov/procurement-collusion-strike-force.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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 at http://pacer.flsd.uscourts.gov, under case number 25-cr-80093.
###
Palm Beach County Man Sentenced to Federal Prison for Illegal Firearm PossessionRead the Press Release
MIAMI – Tyreek J. Clermont, 24, of Boynton Beach, was sentenced yesterday to 90 months in federal prison, followed by three years of supervised release, for illegally possessing a firearm as a convicted felon. Clermont pled guilty to charge earlier this year.
According to the court record, on October 22, 2023, a Martin County Sheriff’s Office Deputy initiated a traffic stop of a vehicle driven by the defendant on South Kanner Highway. The defendant was smoking a marijuana cigarette when the deputy approached the vehicle. A subsequent search of the vehicle revealed a loaded Smith & Wesson 9mm semi-automatic handgun, approximately 31.59 grams of marijuana, a digital scale, and 1.58 grams of dimethylpentylone – a dangerous designer drug.
At the time he possessed the 9mm, Clermont had prior Florida felony convictions for robbery, gun, and drug crimes. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida, Acting Special Agent in Charge Gordon Mallory of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Division and Sheriff John M. Budensick of the Martin County Sheriff’s Office (MCSO) announced the sentence imposed by U.S. District Judge Aileen M. Cannon.
ATF Miami Field Office and MCSO investigated the case.
Assistant U.S. Attorney Michael D. Porter prosecuted it.
This case stems from Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. In 2017, PSN was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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 at http://pacer.flsd.uscourts.gov, under case number 24-cr-14042.
###
Federal Jury Finds Man Guilty of Posing as a Flight Attendant to Obtain Free FlightsRead the Press Release
MIAMI – On June 5, a federal jury convicted Tiron Alexander, 35, of wire fraud and entering into a secure area of an airport by false pretenses.
According to court documents and evidence presented at trial, from 2018 to 2024, Alexander booked free flights on an airline carrier’s website that were only available to pilots and flight attendants. In total, Alexander flew on 34 flights with the airline carrier without paying for any of them by posing as a flight attendant who worked for other airlines. Over the 34 flights, Alexander claimed through the airline carrier’s website application process—a process that required an applicant to select whether they were a pilot or flight attendant and provide their employer, date of hire, and badge number information—that he worked for seven different airlines and had approximately 30 different badge numbers and dates of hire. The evidence at trial also showed that Alexander posed as a flight attendant on three other airline carriers. Ultimately, Alexander booked more than 120 free flights by falsely claiming to be a flight attendant.
U.S. District Judge Jacqueline Becerra is scheduled to sentence Alexander on August 25, 2025, after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida and Special Agent in Charge Antonio L. Pittman of the Transportation Security Administration (TSA), Atlanta Field Office, made the announcement.
TSA investigated the case.
Assistant U.S. Attorneys Michael C. Shepherd, Zachary A. Keller, and Andres E. Chinchilla are prosecuting the case.
You may find a copy of this press release (and any updates) 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 at http://pacer.flsd.uscourts.gov, under case number 24-cr-20466.
###
Two South Florida Men Charged with Mail Theft, Thanks to PublicRead the Press Release
MIAMI – Two South Florida men are charged with mail theft after surveillance video released to the public resulted in their identification.
According to the charging complaint and indictment, on April 26, Wilfredo Rivero, 31, was seen on surveillance forcibly opening a cluster of mailboxes at an apartment complex in Sunrise, Florida. Once the mailboxes were opened, Rivero examined and removed pieces of mail. Two days later, on April 28, Rivero returned to the apartment complex with Fernando Bernabe Rodriguez, 28. Rivero and Rodriguez were seen on surveillance prying open another cluster of mailboxes and removing mail.
On May 9, CBS News Miami ran a news story about the mail theft at the apartment complex and aired the April 28 surveillance video to assist the U.S. Postal Inspection Service (USPIS) in identifying, then unknown, Rivero and Rodriguez. As a result of the news story, the USPIS national hotline received several tips regarding the identity of Rivero and Rodriguez.
U.S. Attorney Hayden P. O’Byrne of the Southern District of Florida and acting Inspector in Charge Bladismir Rojo of the USPIS made the announcement.
USPIS investigated the case, with substantial assistance from the public. The Sunrise Police Department and Hialeah Police Department provided support as well.
Assistant U.S. Attorney Christopher Killoran is prosecuting the case.
An indictment is merely an accusation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
You may find a copy of this press release (and any updates) 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 at http://pacer.flsd.uscourts.gov, under case number 25-cr-60134.
###
South Florida Man Charged with Laundering $200,000 in Proceeds from Business Email Compromise SchemeRead the Press Release
MIAMI – On June 6, Robert Arturo De Los Angeles Mejia, 24, appeared in federal court today to face charges for his part in a wire fraud and money laundering scheme operating out of South Florida.
According to the information, Mejia and his co-conspirators defrauded a foreign buyer by deploying a business email compromise (BEC) scheme. Mejia and his co-conspirators intercepted email communications between the foreign buyer and a manufacturer engaged in a business transaction. The intercepted email impersonated the manufacturer’s legitimate email account and deceived the foreign buyer into transferring funds to fraudulent accounts.
Mejia laundered roughly $200,000 in fraud proceeds from the BEC scheme. To conceal the source and ownership of the funds, Mejia used a shell company and opened corporate bank accounts in the name of that company. Once the funds were deposited, Mejia quickly withdrew large sums of cash from multiple accounts and branches, often on the same day, to avoid detection and hinder recovery efforts.
The business transaction was backed by the U.S. Export-Import Bank (EXIM Bank), which is the official export credit agency of the United States. Its mission is to support American jobs by facilitating the export of goods and services from the United States.
U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida; Inspector General Parisa Salehi of the EXIM Bank, Office of Inspector General (OIG) Miami; and José R. Figueroa, acting Special Agent in Charge of Homeland Security Investigations (HSI) Miami, made the announcement.
The case was investigated by EXIM Bank-OIG Miami and HSI Miami.
Assistant U.S. Attorney Altanese Phenelus is prosecuting the case and Marx Calderon is handling asset forfeiture.
An information is merely an accusation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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 at http://pacer.flsd.uscourts.gov under case number 25-cr-20198.
###
CEO of Health Care Software Company Convicted of $1B Fraud ConspiracyRead the Press Release
MIAMI – A federal jury convicted the CEO of Power Mobility Doctor Rx, LLC (DMERx) for his role in operating a platform that generated false doctors’ orders to defraud Medicare and other federal health care benefit programs of more than $1 billion.
According to court documents and evidence presented at trial, Gary Cox, 79, of Maricopa County, Arizona, and his co-conspirators targeted hundreds of thousands of Medicare beneficiaries who provided their personally identifiable information and agreed to accept medically unnecessary orthotic braces, pain creams, and other items through misleading mailers, television advertisements, and calls from offshore call centers. Cox and his co-conspirators owned, controlled, and operated DMERx, an internet-based platform that generated false and fraudulent doctors’ orders for these items. As part of the scheme, Cox connected pharmacies, durable medical equipment (DME) suppliers, and marketers with telemedicine companies that would accept illegal kickbacks and bribes in exchange for signed doctors’ orders transmitted using the DMERx platform. Cox and his co-conspirators received payments for coordinating these illegal kickback transactions and referring the completed doctors’ orders to the DME suppliers, pharmacies, and telemarketers that paid kickbacks and bribes for the orders.
The fraudulent doctors’ orders generated by DMERx falsely represented that a doctor had examined and treated the Medicare beneficiaries when in fact purported telemedicine companies paid doctors to sign the orders without regard to medical necessity, based only on a brief telephone call with the beneficiary or no interaction with the beneficiary at all. The DME suppliers and pharmacies that paid illegal kickbacks in exchange for these doctors’ orders billed Medicare and other insurers more than $1 billion. Medicare and the insurers paid more than $360 million based on these claims. According to evidence presented at trial, Cox and his co-conspirators concealed the scheme through sham contracts and by eliminating from doctors’ orders what one co-conspirator described as “dangerous words” that might cause Medicare to audit the scheme’s DME suppliers.
“Medicare fraud undermines the integrity of our nation's most critical healthcare programs, which are relied upon by millions of patients, doctors and honest healthcare professionals.” said U.S. Attorney Hayden P. O'Byrne for the Southern District of Florida. “Fraud of this kind wastes taxpayer dollars and increases the cost of healthcare for all Americans. Together with our law enforcement partners, we will relentlessly pursue those who steal from taxpayers and exploit our healthcare system for their own personal gain”
“The defendant orchestrated a scheme to defraud government health care benefit programs on a massive scale, creating fraudulent doctors’ orders used to bill insurers over $1 billion,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “Americans are all too familiar with junk mail and spam calls that target seniors to steal their personal information and promote waste, fraud, and abuse in our economy. The Criminal Division will continue to aggressively prosecute health care fraud schemes to hold criminals accountable, protect the vulnerable, and recover financial losses.”
“Fraud schemes perpetrated against veterans are abhorrent and will be thoroughly investigated,” said Special Agent in Charge David Spilker of the Department of Veterans Affairs Office of Inspector General’s Southeast Field Office. “The VA OIG, along with our law enforcement partners, will continue to combat these schemes to ensure the integrity of VA’s healthcare programs for veterans and their families.”
“The defendant deliberately exploited the federal health care system by prioritizing personal enrichment over the medical needs of vulnerable patients,” stated Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “By fraudulently billing the government for medically unnecessary durable medical equipment, the defendant not only violated the law but also assaulted the public’s trust placed in health care providers. There is zero tolerance for those who abuse federal health care programs, and HHS-OIG remains steadfast in its commitment to ensure that individuals who engage in such egregious fraud are held fully accountable.”
“Medicare fraud and other health care related frauds are, unfortunately, nothing new,” said Assistant Special Agent in Charge Mark McCormick of the FBI Miami Field Office. “As such, the FBI and our partners devote considerable resources to investigate, arrest, and prosecute those committing this fraud. The victims are U.S. taxpayers - you and me. Our message to those who commit health care fraud and steal from U.S. taxpayers is clear: you will be caught, and you will face justice.”
Cox was convicted of conspiracy to commit health care fraud and wire fraud, three counts of health care fraud, conspiracy to pay and receive health care kickbacks, and conspiracy to defraud the United States and make false statements in connection with health care matters. Cox faces a maximum penalty of 20 years in prison for the conspiracy to commit health care fraud and wire fraud conviction, 10 years for each health care fraud conviction, five years for the conspiracy to pay and receive health care kickbacks conviction, and five years for the conspiracy to defraud the United States and make false statements in connection with health care matters conviction. A sentencing hearing will be scheduled at a later date. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
HHS-OIG, FBI, VA-OIG, and DCIS investigated the case.
Trial Attorneys Darren C. Halverson and Jennifer E. Burns of the Criminal Division’s Fraud Section are prosecuting the case. Fraud Section Trial Attorneys Andrea Savdie and Shane Butland assisted in the prosecution. Trial Attorney Evan N. Schlom with the Fraud Section’s Special Matters Unit provided valuable assistance.
The charges contained in an information are merely accusations. All defendants are presumed innocent until proven guilty beyond reasonable doubt in a court of law.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
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 at http://pacer.flsd.uscourts.gov, under case number 23-cr-20271.
###
Six People Indicted for COVID-19 Relief Fraud Scheme Totaling over $34 MillionRead the Press Release
MIAMI – Elaine A. Escoe, 40; Alfred L. Davis, 51; Gino J. Jourdan, 37; Cher L. Davis, 53; Latoya T. Clark, 39; and James G. McGhow, 69, have been indicted with conspiracy, wire fraud, and money laundering in connection with a scheme to fraudulently obtain over $34 million in federal COVID-19 relief funds.
According to allegations in the indictment, from May 2020 through November 2021, the defendants conspired to submit more than 90 false and fraudulent applications for funds under the Paycheck Protection Program (PPP), Economic Injury Disaster Loans (EIDL), Restaurant Revitalization Fund (RRF), and Shuttered Venue Operators Grant (SVOG). The applications allegedly contained materially false representations regarding employee counts, payroll expenses, and business revenues. In support of the applications, the defendants are alleged to have submitted falsified IRS tax documents and fabricated bank statements.
The indictment alleges that the scheme resulted in the wrongful disbursement of approximately $29.1 million in PPP funds, $1.2 million in RRF funds, and $3.8 million in SVOG funds. After the funds were disbursed, the defendants allegedly directed payments to each other and to businesses they controlled, withdrew large sums in cash, and used blank, signed checks to conceal the origin and nature of the proceeds.
Each of the six defendants is charged with one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering. Each defendant also faces multiple substantive counts of wire fraud and engaging in monetary transactions involving criminally derived property. If convicted, the defendants face up to 20 years in prison on each wire fraud charge and up to 10 years in prison on each money laundering charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida; Acting Special Agent in Charge Brett Skiles of FBI Miami and Acting Special Agent in Charge José R. Figueroa of Homeland Security Investigations (HSI) Miami, made the announcement.
FBI Miami’s West Palm Beach Resident Agency investigated the case. HSI Miami assisted in the investigation. Assistant United States Attorney Jonathan Bailyn is prosecuting the case. Legal Administrative Specialist Matthew Neff is helping with litigation technology.
An indictment is a mere allegation. A defendant is presumed innocent until found guilty beyond a reasonable doubt in a court of law.
You may find a copy of this press release (and any updates) 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 at http://pacer.flsd.uscourts.gov, under case number 25-cr-80076-AMC.
###
Coral Springs Man Charged with Operating $158 Million Ponzi Scheme Through His Trucking Company, Sentenced to 23 Years in PrisonRead the Press Release
MIAMI – Sanjay Singh, 45, of Coral Springs, Florida, has been sentenced to 23 years in a federal prison for a $158 million investment fraud (Ponzi) scheme run through his over-the-road trucking company, Royal Bengal Logistics, Inc. (“RBL”).
In November, a jury convicted Singh on all 8 counts of an indictment that alleged that he violated federal laws criminalizing conspiracy to commit wire fraud, wire fraud, and engaging in transactions in unlawful proceeds.
According to the indictment, Singh, RBL’s founder and president, organized and ran a substantial Ponzi scheme with co-conspirators. The conspiracy began in January 2020 and was ongoing at the time of his arrest. Singh and his co-conspirators held RBL out to potential investors as a thriving and successful trucking business, all while RBL’s actual trucking business lost money. In the process, Singh and his co-conspirators made material misrepresentations and material omissions about the riskiness of investing in RBL, the profitability of RBL’s trucking operations, how RBL would pay its investors, and how RBL would use investor funds. Through these material misrepresentations and omissions, Singh and his co-conspirators raised over $158 million from investors, which Singh and his co-conspirators then used in part to pay existing investors promised returns.
The indictment also alleged that Singh misappropriated millions of dollars of investor funds to renovate his home, make mortgage payments, pay for personal expenses, and trade stocks on margin.
U.S. Attorney Hayden O’Byrne for the Southern District of Florida; Acting Special Agent in Charge Brett Skiles of the FBI, Miami Field Office; Special Agent in Charge Joseph Harris of the Department of Transportation Office of Inspector General (“DOT-OIG”), Southern Region; and Russell C. Weigel, III, Commissioner, Florida Office of Financial Regulation (“OFR”), made the announcement.
U.S. Attorney O’Byrne commended the investigative efforts of the FBI, DOT-OIG, and OFR in this matter. He thanked the United States Securities and Exchange Commission Miami Regional Office for their assistance. Assistant U.S. Attorney Robert F. Moore and Roger Cruz prosecuted the case. Assistant U.S. Attorney Marx Calderon is handling asset forfeiture.
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 at http://pacer.flsd.uscourts.gov, under case number 23-cr-60117.
###
United States Files False Claims Act Complaint Alleging Genetic Testing Medicare FraudRead the Press Release
MIAMI – The United States has filed a complaint under the False Claims Act against AIMA Business and Medical Support, LLC (AIMA), a company that provides medical billing and compliance services, for allegedly submitting or causing the submission of false claims to Medicare for medically unnecessary genetic laboratory tests.
AIMA is registered as a Florida limited liability company and offers medical billing and compliance services in the United States. AIMA’s CEO, Aaron Liston, was based in the United Kingdom, AIMA’s employees were based in India, and AIMA provided services to customers in the United States, including billing the Medicare Program on behalf of healthcare providers and suppliers. The United States’ claims arise from AIMA’s alleged conduct in offering Medicare billing advice and submitting bills to Medicare on behalf of a Miami-based diagnostic laboratory called Excellent Laboratories Inc., which did business as Selecta Laboratory (Selecta).
The United States contends that from August 2018 through August 2019, AIMA billed Medicare Part B approximately $ 15,178,946.00 for genetic tests on behalf of Selecta, even though AIMA knew or should have known that the tests were not medically necessary and were not ordered by the beneficiary’s treating physician. Medicare does not cover the costs of genetic tests that are not reasonable and necessary for the diagnosis or treatment of illness. To be covered by Medicare, a diagnostic laboratory test, including a genetic test, must be ordered by the physician who is treating the beneficiary for a specific medical problem and who uses the results in the management of that problem. As a result of AIMA’s conduct, Selecta received Medicare funds to which it was not entitled and, correspondingly, paid AIMA for its services.
U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida and Acting Special Agent in Charge Jesus Barranco of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), made the announcement.
Assistant U.S. Attorney Clarissa Pinheiro is handling the matter, with the HHS-OIG conducting the investigation.
The investigation and prosecution of this matter illustrate the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the HHS at 800-HHS-TIPS (800-447-8477).
The claims asserted in the government’s complaint are allegations only, and there has been no determination of liability.
You may find a copy of this press release (and any updates) 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 at http://pacer.flsd.uscourts.gov, under case number 25-cv-22507.
###
Public Servants Sentenced for COVID-19 Relief FraudRead the Press Release
MIAMI – Angelo Stephen, 33, a former Federal Bureau of Prisons Correctional Officer, and George Arestuche, 47, a former Miami-Dade County Aviation Department employee, were sentenced in separate cases after pleading guilty to defrauding COVID-19 relief programs.
Angelo Stephen
On May 22, Stephen was sentenced to four months in prison to be followed by three years of supervised release and ordered to pay $75,513 in restitution by Chief U.S. District Judge Cecilia M. Altonaga. Chief Judge Altonaga also entered a forfeiture money judgment against Stephen in the additional amount of $71,166. The sentence follows Stephen’s conviction for wire fraud in connection with his fraudulent applications for two Paycheck Protection Program (PPP) loans and one Economic Injury Disaster Loan (EIDL), as well as his participation in two bank account takeover schemes.
During his change of plea hearing, Stephen admitted that on August 4, 2020, he submitted a false and fraudulent EIDL application in his own name to the Small Business Administration (SBA), claiming to be an independent contractor and the sole owner of a business that provided event planning and entertainment services with 10 employees. The EIDL application falsely certified that for the applicable 12-month period, the business had approximately $62,018 in gross revenue and a cost of goods sold of $0. Based on his false and fraudulent application, Stephen received $20,000 in EIDL proceeds from the SBA.
Stephen additionally admitted to fraudulently obtaining two PPP loans. On April 24, 2021, Stephen submitted a first-draw PPP loan application, claiming to be the sole proprietor of a non-existent business with $106,554 in gross income in 2020. In support of the application, Stephen submitted a fraudulent IRS Form 1040 Schedule C. Based on his false and fraudulent application, Stephen received $20,833 in PPP loan proceeds from an SBA-approved lender. On May 11, 2021, Stephen submitted a second-draw PPP loan application, making the same false claims about his nonexistent business that was supported by submission of the identical false Schedule C. Based on his false and fraudulent application, Stephen obtained $20,833 in PPP loan proceeds from a different SBA-approved lender.
Stephen also admitted to taking part in two bank account takeover schemes. On March 30, 2023, Stephen received a $20,000 wire transfer from the account of an unsuspecting victim in Virginia. Stephen quickly withdrew all illegally obtained money through a series of cash withdrawals and Zelle transfers to others. In the second takeover scheme, Stephen and his accomplices obtained new checks from the credit union account of a different unsuspecting victim. Stephen subsequently used one of those checks to obtain $8,500 in cash that he was not entitled to.
George Arestuche
On May 28, Arestuche was sentenced by Senior U.S. District Judge Paul C. Huck to five years of probation to include 210 days in home detention and ordered to pay $114,679 in restitution, plus community service. The sentence follows Arestuche’s conviction for conspiracy to commit wire fraud in connection with his fraudulent application for an EIDL.
According to the facts admitted at the change of plea hearing, Arestuche and a co-conspirator devised a scheme to defraud the SBA by submitting a false and fraudulent application for Arestuche to obtain an EIDL and EIDL advance. As part of the conspiracy, Arestuche agreed to pay the co-conspirator a large fee.
On July 9, 2020, Arestuche’s co-conspirator submitted a false and fraudulent EIDL application to the SBA on behalf of Arestuche, claiming that Arestuche was an independent contractor and the sole owner of an automotive repair business with 10 employees. The EIDL application falsely certified that for the applicable 12-month period, the business had $600,000 in gross revenue and a cost of goods sold of $184,000. In reality, Arestuche was not an independent contractor and did not own any type of business. The EIDL application was supported by a fraudulent IRS Form 1040 Schedule C. As a result of this false and fraudulent EIDL application, Arestuche obtained $149,900 in EIDL proceeds and a $10,000 EIDL advance from the SBA. Arestuche subsequently paid his co-conspirator $17,275 for helping him fraudulently obtain the money from the SBA. Since pleading guilty, Arestuche has paid $50,000 in advance restitution payments.
U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida; acting Special Agent in Charge Amber Howell of the Department of Justice Office of Inspector General’s Fraud Detection Office (DOJ-OIG); Special Agent in Charge Amaleka McCall-Brathwaite, U.S. Small Business Administration Office of Inspector General (SBA OIG), Eastern Region; acting Special Agent in Charge Brett D. Skiles of FBI Miami; and Inspector General Felix Jimenez of the Miami-Dade County Office of Inspector General (MDC-OIG) made the announcement.
DOJ-OIG and SBA-OIG investigated the Stephen case. SBA-OIG and the FBI’s Miami Area Corruption Task Force, which includes task force officers from the MDC-OIG, investigated the Arestuche case.
Assistant U.S. Attorney Edward N. Stamm prosecuted both cases.
Assistant U.S. Attorney Annika Miranda is handling forfeiture matters in the Stephen case.
In March 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Among other sources of relief, the CARES Act authorized and provided funding to the SBA to provide EIDLs to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred. EIDL applications were submitted directly to the SBA via the SBA’s on-line application website, and the applications were processed and the loans funded for qualifying applicants directly by the SBA.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. For more information on the department’s response to the pandemic, please click here.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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 at http://pacer.flsd.uscourts.gov, under case numbers 25-cr-20014 (Stephen) and 25-cr-20001 (Arestuche).
###
CEO of Health Care Software Company Convicted of $1B Fraud ConspiracyRead the Press Release
Note: this release has been updated to include a quote from the U.S. Attorney for the Southern District of Florida.
A federal jury convicted the CEO of Power Mobility Doctor Rx, LLC (DMERx) for his role in operating a platform that generated false doctors’ orders to defraud Medicare and other federal health care benefit programs of more than $1 billion.
According to court documents and evidence presented at trial, Gary Cox, 79, of Maricopa County, Arizona, and his co-conspirators targeted hundreds of thousands of Medicare beneficiaries who provided their personally identifiable information and agreed to accept medically unnecessary orthotic braces, pain creams, and other items through misleading mailers, television advertisements, and calls from offshore call centers. Cox and his co-conspirators owned, controlled, and operated DMERx, an internet-based platform that generated false and fraudulent doctors’ orders for these items. As part of the scheme, Cox connected pharmacies, durable medical equipment (DME) suppliers, and marketers with telemedicine companies that would accept illegal kickbacks and bribes in exchange for signed doctors’ orders transmitted using the DMERx platform. Cox and his co-conspirators received payments for coordinating these illegal kickback transactions and referring the completed doctors’ orders to the DME suppliers, pharmacies, and telemarketers that paid kickbacks and bribes for the orders.
The fraudulent doctors’ orders generated by DMERx falsely represented that a doctor had examined and treated the Medicare beneficiaries when in fact purported telemedicine companies paid doctors to sign the orders without regard to medical necessity, based only on a brief telephone call with the beneficiary or no interaction with the beneficiary at all. The DME suppliers and pharmacies that paid illegal kickbacks in exchange for these doctors’ orders billed Medicare and other insurers more than $1 billion. Medicare and the insurers paid more than $360 million based on these claims. According to evidence presented at trial, Cox and his co-conspirators concealed the scheme through sham contracts and by eliminating from doctors’ orders what one co-conspirator described as “dangerous words” that might cause Medicare to audit the scheme’s DME suppliers.
“The defendant orchestrated a scheme to defraud government health care benefit programs on a massive scale, creating fraudulent doctors’ orders used to bill insurers over $1 billion,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “Americans are all too familiar with junk mail and spam calls that target seniors to steal their personal information and promote waste, fraud, and abuse in our economy. The Criminal Division will continue to aggressively prosecute health care fraud schemes to hold criminals accountable, protect the vulnerable, and recover financial losses.”
“Medicare fraud undermines the integrity of our nation's most critical healthcare programs, which are relied upon by millions of patients, doctors and honest healthcare professionals.” said U.S. Attorney Hayden P. O'Byrne for the Southern District of Florida. “Fraud of this kind wastes taxpayer dollars and increases the cost of healthcare for all Americans. Together with our law enforcement partners, we will relentlessly pursue those who steal from taxpayers and exploit our healthcare system for their own personal gain.”
“Fraud schemes perpetrated against veterans are abhorrent and will be thoroughly investigated,” said Special Agent in Charge David Spilker of the Department of Veterans Affairs Office of Inspector General’s Southeast Field Office. “The VA OIG, along with our law enforcement partners, will continue to combat these schemes to ensure the integrity of VA’s healthcare programs for veterans and their families.”
“The defendant deliberately exploited the federal health care system by prioritizing personal enrichment over the medical needs of vulnerable patients,” stated Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “By fraudulently billing the government for medically unnecessary durable medical equipment, the defendant not only violated the law but also assaulted the public’s trust placed in health care providers. There is zero tolerance for those who abuse federal health care programs, and HHS-OIG remains steadfast in its commitment to ensure that individuals who engage in such egregious fraud are held fully accountable.”
“Medicare fraud and other health care related frauds are, unfortunately, nothing new,” said Assistant Special Agent in Charge Mark McCormick of the FBI Miami Field Office. “As such, the FBI and our partners devote considerable resources to investigate, arrest, and prosecute those committing this fraud. The victims are U.S. taxpayers - you and me. Our message to those who commit health care fraud and steal from U.S. taxpayers is clear: you will be caught, and you will face justice.”
Cox was convicted of conspiracy to commit health care fraud and wire fraud, three counts of health care fraud, conspiracy to pay and receive health care kickbacks, and conspiracy to defraud the United States and make false statements in connection with health care matters. Cox faces a maximum penalty of 20 years in prison for the conspiracy to commit health care fraud and wire fraud conviction, 10 years for each health care fraud conviction, five years for the conspiracy to pay and receive health care kickbacks conviction, and five years for the conspiracy to defraud the United States and make false statements in connection with health care matters conviction. A sentencing hearing will be scheduled at a later date. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
HHS-OIG, FBI, VA-OIG, and DCIS investigated the case.
Trial Attorneys Darren C. Halverson and Jennifer E. Burns of the Criminal Division’s Fraud Section are prosecuting the case. Fraud Section Trial Attorneys Andrea Savdie and Shane Butland assisted in the prosecution. Trial Attorney Evan N. Schlom with the Fraud Section’s Special Matters Unit provided valuable assistance.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
South Florida Jury Convicts Murder-For-Hire Conspirators, Face Life in PrisonRead the Press Release
MIAMI – A federal jury convicted three South Florida men for their involvement in a murder-for-hire plot carried out in August 2019.
On May 21, Rolando Ramirez, 52, of Doral, and Rasheed “Fresh” Ali, 39, of Miami, were found guilty of solicitation of a crime of violence (interstate stalking), interstate stalking, conspiracy to use and carry a firearm, discharging a firearm in furtherance of interstate stalking, conspiracy to commit murder for hire, and murder for hire. Tamrat “Shifta” Mason, 41, of Miami, together with Ramirez and Ali, was also found guilty of tampering with the investigation that resulted in their arrest in August 2024.
According to court records and evidence introduced during trial, Ramirez and the victim, a local businessman, had a contentious federal lawsuit involving various issues related to their business arrangement, including a non-competition clause. The victim won the right to continue to compete. During settlement negotiations, Ramirez told the victim, “In due time, I will kill you.”
Ali and Mason had a marijuana distributor in New York, Jaime Serrano. Serrano had an outstanding debt to Ali and Mason, which Ali told Serrano he could clear by executing a hit for his friend. Serrano testified that Ali told him the target was a former business partner, who “snitched” on his friend in court. Ali added that Ramirez considered himself “Cuban Mafia.” On August 28, 2019, Serrano, together with Julian Jimenez, carried out the near-fatal shooting of the victim.
During the investigation, it was revealed that Ramirez, Ali, and Mason tampered with the investigation to cover up their involvement or knowledge of the crime.
As part of a separate case, Jimenez pled guilty to interstate stalking, conspiracy to use a firearm in furtherance of a crime of violence, and use of a firearm in furtherance of a crime. A federal jury found Serrano guilty of the same charges. Jimenez and Serrano were sentenced to 35 and 50 years in prison, respectively.
A sentencing hearing is scheduled for September 5, before U.S. District Court Judge Roy K. Altman. Ramirez and Ali face a sentence of up to life in prison.
U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida and acting Special Agent in Charge Brett D. Skiles of FBI Miami made the announcement.
FBI Miami investigated this case, with assistance from the Miami-Dade County Sheriff’s Office.
Assistant U.S. Attorneys Abbie D. Waxman and Michael Gilfarb of the Southern District of Florida are prosecuting the case.
The charges contained in an information are merely accusations. All defendants are presumed innocent until proven guilty beyond reasonable doubt in a court of law.
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 at http://pacer.flsd.uscourts.gov, under case number 24-cr-20341.
###
Former Key West Firefighter Charged with Possession of a Destructive Device and a Short-Barreled RifleRead the Press Release
MIAMI – A former Key West firefighter made his initial appearance in federal court today to face an indictment charging him with the possession of a destructive device and possession of a short-barreled rifle.
According to the indictment, on March 14, Vincent Michael Vega, 38, was in possession of a combination of parts used in converting a device into a destructive device, i.e. an explosive bomb or similar device. Vega was also in possession of a modified semi-automatic rifle, which had a barrel of less than 16 inches. The firearms were not registered to Vega in the National Firearm Registration and Transfer Record, as required under federal law.
U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida and acting Special Agent in Charge Gordon Mallory of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Division, made the announcement.
ATF Miami is investigating the case.
Assistant U.S. Attorney Elizabeth Hannah is prosecuting the case.
An indictment is merely an accusation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
You may find a copy of this press release (and any updates) 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 at http://pacer.flsd.uscourts.gov, under case number 25-cr-10023.
###
Fort Pierce Jury convicts a Louisiana Registered Sex Offender of Various Internet Sex Crimes Involving a Martin County MinorRead the Press Release
MIAMI – On May 20, a federal jury sitting in Fort Pierce, Florida convicted Nicolas James Palmisano, 45, of Destrehan, Louisiana, for attempted enticement of a minor, attempted production of visual depictions involving sexual exploitation of a minor, receipt of visual depictions involving sexual exploitation of a minor, transfer of obscene material to a minor, and offense by a registered sex offender.
According to court records and evidence introduced during trial, in 2019, Palmisano was convicted in St. Charles Parish, Louisiana for sexual offenses involving a juvenile. Upon the completion of his four-year prison sentence, Palmisano registered as a sex offender with the St. Charles Parish Sheriff’s Office in the town in which he resided.
In May 2024, the Martin County Sheriff’s Office (MCSO) learned that a minor had images of sexually explicit activity on her cellular phone. An MCSO computer forensic examiner recovered messages, images, and recordings from the minor’s cellular phone that were sent from Palmisano’s cellular number. Despite acknowledging that the minor was 15 years old, Palmisano wrote thousands of sexually explicit messages and sent multiple sexually explicit images, as well as audio and video recordings, of himself between February 22 and May 6, 2024. Palmisano also solicited, and obtained, sexually explicit images from the minor.
In August 2024, members of the FBI and MCSO arrested Palmisano at the St. Charles Parish Sheriff’s Office, after he arrived for his annual Sexual Offender Registration review and update. Law enforcement executed a search warrant on Palmisano’s residence and recovered his cellular phone, which was found to contain the sexually explicit material that Palmisano and the minor exchanged.
A sentencing hearing is scheduled for August 25, before U.S. District Judge Jose E. Martinez. Palmisano faces a mandatory minimum sentence of 35 years up to life in prison, and up to a lifetime of supervised release.
U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida, acting Special Agent in Charge Brett D. Skiles of FBI Miami, and Martin County Sheriff John Budensiek made the announcement.
FBI Fort Pierce investigated the case, with assistance from MCSO, FBI New Orleans, and St. Charles Parish Sheriff’s Office.
Fort Pierce Branch Managing Assistant U.S. Attorney Carmen M. Lineberger and Assistant U.S. Attorney Jessica Kahn Obenauf are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Anyone with information relating to child sexual exploitation or abuse is encouraged to call the FBI at 1-800-CALL-FBI.
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 at http://pacer.flsd.uscourts.gov, under case number 24-cr-14044.
###
Founder of Haitian Orphanage Sentenced to 210 Years in Prison for Sexually Abusing Boys in His CareRead the Press Release
MIAMI – On May 23, a Colorado man was sentenced to 210 years in prison for sexually abusing numerous children at the orphanage he founded and directed in Haiti.
According to court documents and evidence presented at trial, Michael Karl Geilenfeld, 73, most recently of Littleton, founded St. Joseph’s Home for Boys — a home for orphaned, impoverished, and otherwise vulnerable children in Haiti — in 1985 and operated it for more than two decades. During this time, Geilenfeld repeatedly traveled from the United States to Haiti, where he sexually abused the boys entrusted to his care. He also physically and emotionally abused the children in the home, including through physical assault and other forms of punishment.
In February 2025, a federal jury convicted Geilenfeld of one count of traveling in foreign commerce for the purpose of engaging in illicit sexual conduct and six counts of engaging in illicit sexual conduct in a foreign place between 2005 and 2010. Each of the six counts of engaging in illicit sexual conduct relates to a separate victim who was a child at the time of the offense.
At trial, these six victims testified about the sexual abuse they suffered at the hands of Geilenfeld and the devastating impact it had on them, as did other victims — now adults — who were not the subject of the charged offenses. Victims and witnesses also described the physical abuse Geilenfeld inflicted on his victims and the manipulation that he employed to keep his operation running and financially supported by others.
U.S. Immigrations and Customs Enforcement’s Homeland Security Investigations (HSI) and FBI investigated the case.
Executive Assistant U.S. Attorney Lacee Monk for the Southern District of Florida and Trial Attorneys Jessica L. Urban and Eduardo Palomo of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.justice.gov/psc.
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 at http://pacer.flsd.uscourts.gov, under case number 24-cr-20008.
###
Illegal Alien from Mexico Previously Convicted of Sexual Battery on a Minor, Charged with Illegal ReentryRead the Press Release
MIAMI – A federal grand jury in Miami has charged Juan Perez Santis, 40, a Mexican national previously convicted of sexual battery on a minor, with unlawfully entering the United States after deportation. Perez Santis made his initial appearance in federal court today.
According to the indictment, Perez Santis was removed from the United States on three separate occasions: March 21, 2002; June 20, 2007; and October 2, 2007. Law enforcement discovered Perez Santis had reentered the country without authorization on or about January 2, 2022.
Court documents further show that in 2024, after his prior removals and alleged reentry, Perez Santis was convicted in the state of Florida for sexual battery on a minor under the age of 12 and three related charges. Perez Santis is currently serving a 10-year sentence in state prison.
U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida and acting Field Office Director Juan Agudelo of the U.S. Immigration and Customs Enforcement, Enforcement Removal Operations (ICE-ERO) Prosecutions Unit Miami made the announcement.
ICE-ERO investigated the case. Assistant U.S. Attorneys Audrey Pence Tomanelli and Andrea Montes are prosecuting the case.
An indictment is merely an accusation, and all defendants are presumed innocent unless and until proven guilty in a court of law.
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 at http://pacer.flsd.uscourts.gov, under case number 25-cr-20080.
###
Founder of Haitian Orphanage Sentenced to 210 Years in Prison for Sexually Abusing Boys in his CareRead the Press Release
A Colorado man was sentenced today to 210 years in prison for sexually abusing numerous children at the orphanage he founded and directed in Haiti.
According to court documents and evidence presented at trial, Michael Karl Geilenfeld, 73, most recently of Littleton, founded St. Joseph’s Home for Boys — a home for orphaned, impoverished, and otherwise vulnerable children in Haiti — in 1985 and operated it for more than two decades. During this time, Geilenfeld repeatedly traveled from the United States to Haiti, where he sexually abused the boys entrusted to his care. He also physically and emotionally abused the children in the home, including through physical assault and other forms of punishment.
In February 2025, a federal jury convicted Geilenfeld of one count of traveling in foreign commerce for the purpose of engaging in illicit sexual conduct and six counts of engaging in illicit sexual conduct in a foreign place between 2005 and 2010. Each of the six counts of engaging in illicit sexual conduct relates to a separate victim who was a child at the time of the offense.
At trial, these six victims testified about the sexual abuse they suffered at the hands of Geilenfeld and the devastating impact it had on them, as did other victims — now adults — who were not the subject of the charged offenses. Victims and witnesses also described the physical abuse Geilenfeld inflicted on his victims and the manipulation that he employed to keep his operation running and financially supported by others.
“The defendant’s sustained sexual, physical, and emotional abuse of some of the most vulnerable children in the world is intolerable,” said Matthew Galeotti, Head of the Justice Department’s Criminal Division. “This prosecution demonstrates the Department’s commitment to securing justice for children harmed by criminals who travel abroad from the United States to commit their crimes. We thank our partners for working with us to ensure that the defendant can never harm another child.”
“This sentencing marks the end of a case built on the courage of survivors and the dedication of investigators,” said Assistant Director Jose A. Perez of the FBI Criminal Investigative Division. “For decades, Geilenfeld used his position of trust and access to exploit vulnerable children under the guise of humanitarian work. We are grateful to those victims who came forward to report their abuse. The FBI is committed to pursuing those who commit crimes against children no matter where they occur or how long ago they were committed.”
U.S. Immigrations and Customs Enforcement’s Homeland Security Investigations (HSI) and FBI investigated the case.
Trial Attorneys Jessica L. Urban and Eduardo Palomo of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Lacee Monk for the Southern District of Florida prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.justice.gov/psc.
Colombian National Pleads Guilty to $66 Million Ponzi Scheme, Funded Chateau Wedding and Lavish Vacations with InvestmentsRead the Press Release
MIAMI – Efrain Betancourt, Jr., 36, a dual citizen of Colombia and the United States, pleaded guilty on May 21 to operating a $66 million Ponzi scheme through his payday loan company, Sky Group USA, LLC (Sky Group).
According to the facts admitted at the change of plea hearing, Betancourt was the Chief Executive Officer and sole owner of Sky Group. Betancourt managed Sky Group and sold promissory notes to investors to raise funds. Betancourt and his co-conspirators claimed that Sky Group was in the business of funding small-dollar, short-term loans to consumer borrowers. To purportedly generate these short-term loans, Betancourt and his co-conspirators raised approximately $66 million from over 600 investors from January 2016 to March 2020.
Betancourt made materially false statements to investors regarding the use of their funds, including that investor funds would be used for the sole purpose of making consumer loans and associated business costs. In truth, Betancourt operated a Ponzi scheme, generating revenue primarily through new investor money and using the newly raised money to make scheduled payments to previous investors. Sky Group only made about $12.2 million off consumer loans, and Betancourt and his co-conspirators used millions of dollars to pay undisclosed sales agent commissions. Betancourt misappropriated over $6.5 million for his own personal use, including a luxurious wedding at a chateau in France and other lavish group vacations with friends and family.
Betancourt’s sentencing hearing is set for August 14 before U.S. District Judge Darrin P. Gayles. Betancourt faces a maximum sentence of up to 20 years in prison.
U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida; acting Special Agent in Charge Brett D. Skiles of the FBI Miami; and Russell C. Weigel, III, Commissioner, Florida Office of Financial Regulation (OFR) made the announcement.
The U.S. Securities and Exchange Commission (SEC) had a parallel proceeding against Betancourt, relating to the same investment fraud scheme alleged in the indictment. The SEC’s proceeding was resolved in July 2022.
FBI Miami, the FBI’s South Florida Fraud Task Force, and OFR investigated the case. SEC’s Miami Regional Office provided assistance. Assistant U.S. Attorney Roger Cruz is prosecuting the case. Assistant U.S. Attorney Gabrielle Raemy Charest-Turken is handling asset forfeiture.
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 at http://pacer.flsd.uscourts.gov, under case number 24-cr-20399.
###
Colombian National Sentenced to over 20 Years in Prison for Role in Conspiracy to Kidnap and Assault U.S. Army Soldiers in ColombiaRead the Press Release
MIAMI – A Colombian national was sentenced today in the Southern District of Florida for her role in kidnapping and assaulting two members of the U.S. military who were on temporary duty in Bogotá, Colombia.
Kenny Julieth Uribe Chiran, 35, was sentenced to 262 months in prison followed by three years of supervised release, and ordered to pay $24,115 in restitution. She is the third and final defendant to be sentenced and held accountable for this criminal conspiracy. She pleaded guilty in March 2025 to conspiracy to kidnap an internationally protected person.
“Members of our military, whether serving here or abroad, can count on this Department of Justice’s respect, support, and protection,” said U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida. “Kidnappings and assaults against U.S. service members will not be tolerated. To those who would dare commit such reprehensible acts against America’s heroes, know this: We will identify you; we will find you; and we will prosecute you as aggressively as the law permits.”
“Uribe Chiran and her co-defendants mercilessly preyed on U.S. soldiers when they drugged their drinks, stole their valuables, and left them incapacitated on the street,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “Kidnapping and assaulting two U.S. military service members is deplorable and the Criminal Division will continue to prioritize protecting our service members through these prosecutions. I thank the prosecutors and our law enforcement partners who work tirelessly to bring justice to these victims.”
“The FBI’s commitment to investigate criminal acts against the U.S. military beyond our borders is clearly demonstrated by our persistent pursuit of justice for the two kidnapped soldiers,” said Acting Special Agent in Charge Brett D. Skiles of the FBI Miami Field Office. “Our close cooperation with Colombian and Chilean law enforcement authorities was essential to this international investigation’s success. To all would be kidnappers the message is clear: target our citizens with violence anywhere in the world and we will hold you accountable for your actions.”
According to court documents, the two U.S. soldiers went to an entertainment district in Bogotá to watch a soccer game on the evening of March 5, 2020. They later went to a pub, where Uribe Chiran and one of her co-defendants approached the soldiers and, without their knowledge, put drugs in their drinks that rendered them incapacitated. Medical examinations later confirmed the presence of benzodiazepines in the two soldiers’ systems. The defendants then kidnapped the soldiers, took their valuables, including their credit and debit card information, and left them incapacitated on the street in separate locations. The defendants used one victim’s credit card and the other victim’s debit card to make purchases and withdraw money.
Uribe Chiran was extradited in September 2024 from Colombia to the United States. Co-defendant Pedro Jose Silva Ochoa was extradited in April 2024 from Chile to the United States, pleaded guilty in December 2024, and was sentenced in March 2025 to 27 years and three months in prison. Co-defendant Jeffersson Arango Castellanos was extradited in May 2023 from Colombia to the United States, pleaded guilty in January 2024, and was sentenced in May 2024 to 48 years and nine months in prison.
The FBI Miami Field Office investigated the case. The Justice Department’s Office of International Affairs and the Criminal Division’s Narcotic and Dangerous Drug Section’s Office of the Judicial Attaché in Bogotá provided significant assistance in this matter. The United States thanks Colombian law enforcement authorities for their valuable assistance.
Assistant U.S. Attorney Bertila Fernandez for the Southern District of Florida and Trial Attorneys Clayton O’Connor and Elizabeth Nielsen of the Criminal Division’s Human Rights and Special Prosecutions Section are prosecuting the case.
You may find a copy of this press release (and any updates) 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 at http://pacer.flsd.uscourts.gov, under case number 23-cr-20173.
###
Jackson Health Foundation Executive Charged with Pocketing over $1 million in Kickbacks, Stealing Foundation Money to Buy Designer Handbags and Rose Gold Golf CartRead the Press Release
MIAMI – A federal indictment unsealed today charges former Chief Operating Officer (COO) of Jackson Health Foundation with designing a scheme to embezzle from the nonprofit foundation by submitting false invoices and taking kickbacks.
According to the indictment, Charmaine Gatlin, 52, formerly of Weston, Fla., served as the COO of the Jackson Health Foundation from 2014 through 2024. The Foundation is the fundraising arm of Jackson Health System (Jackson), a nonprofit hospital and medical system that serves Miami-Dade County. In addition to philanthropic contributions, Jackson’s funding comes from sales taxes, federal government programs, and other sources. As COO, Gatlin received a base salary ranging from $185,000 to $290,000. She signed a conflict-of-interest form with the Foundation preventing her from making decisions that resulted in personal gain.
The indictment alleges that Gatlin submitted false invoices to the Foundation for at least $3.6 million in goods and services that: (a) funded kickbacks to Gatlin; (b) were never provided to the Foundation or Jackson; (c) were provided to Gatlin or her relatives instead of the Foundation or Jackson; or (d) were provided to an Atlanta-based civic organization (Civic Organization 1).
For example, as charged in the indictment, Gatlin approved approximately $2 million in invoices to a Georgia-based audiovisual company for services that were not provided to the Foundation. Instead, the vendor allegedly paid $1 million in kickbacks directly to Gatlin, some of which she used to pay her personal credit card bill. The indictment alleges that Gatlin coached the vendor, via email, on how to falsify invoices.
The indictment also alleges that Gatlin falsified invoices from a merchandise vendor who, at Gatlin’s request, bought her expensive designer gifts from Louis Vuitton, Gucci, and Apple. Gatlin also submitted a false invoice to the Foundation to cover the purchase of a new rose gold-colored golf cart that she had delivered to her Weston, Florida home in September 2023.
The indictment charges Gatlin with one count of wire fraud conspiracy, 26 counts of wire fraud, and five counts of money laundering. Gatlin faces up to 20 years in federal prison on each of the conspiracy and substantive wire fraud counts. She faces up to 10 years’ imprisonment on each money laundering count.
U.S. Attorney Hayden P. O’Byrne of the Southern District of Florida and acting Special Agent in Charge Brett Skiles of FBI Miami made the announcement.
FBI Miami investigated the case, with valuable assistance from the Miami-Dade Sheriff’s Office. Assistant U.S. Attorney Elizabeth Young is prosecuting this case. Assistant U.S. Attorney G. Raemy Charest-Turken is handling asset forfeiture.
An indictment is merely an allegation, and all defendants are presumed innocent unless and until proven guilty in a court of law.
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao-sdfl. The case number is 25-cr-20220.
###
City of Miami Police Officer Pleads Guilty to COVID-19 Relief FraudRead the Press Release
MIAMI – Yesterday, Tramaine Liptrot, 43, a police officer with the City of Miami Police Department (MPD) who has been relieved of duty, pleaded guilty to wire fraud in connection with fraudulent applications for two Paycheck Protection Program (PPP) loans totaling over $200,000. Liptrot entered his guilty plea in Miami before U.S. District Judge Beth Bloom.
According to the facts admitted at the change of plea hearing, Liptrot, along with being an MPD Police Officer, was the owner and President of Liptrots Tax Services L.L.C (Liptrots Tax). With the assistance of an associate, Liptrot fraudulently obtained two PPP loans in the name of Liptrots Tax.
On June 22, 2020, working with the associate, Liptrot caused the submission of a false and fraudulent PPP loan application on behalf of Liptrots Tax, falsely claiming that Liptrots Tax had an average monthly payroll of $36,700 for four employees, and a fraudulent IRS Form 944 in support thereof, falsely claiming that Liptrots Tax paid its employees $440,397 during 2019. As a result of this fraudulent PPP application, Liptrots Tax obtained approximately $91,750 in PPP loan proceeds from an SBA approved PPP lender.
On March 3, 2021, again working with the associate, Liptrot caused the submission of a false and fraudulent second-draw PPP loan application on behalf of Liptrots Tax, falsely claiming that Liptrots Tax had an average monthly payroll of $43,369, and including as part of the application process, a fraudulent IRS Form 944, falsely claiming that Liptrots Tax paid $496,428 in wages and other compensation in 2020. As a result of this fraudulent second-draw PPP application, Liptrots Tax obtained approximately $108,422 in PPP loan proceeds from a different SBA approved PPP lender.
Liptrot is scheduled for sentencing on August 6, 2025, at 10:30 a.m., where he faces a possible maximum sentence of up to 20 years in prison.
U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida, acting Special Agent in Charge Brett D. Skiles of FBI Miami and Special Agent in Charge Amaleka McCall-Brathwaite, U.S. Small Business Administration Office of Inspector General (SBA-OIG), Eastern Region, announced the guilty plea.
FBI Miami’s Area Corruption Task Force, which includes task force officers from the City of Miami Police Department’s Internal Affairs Section, and SBA-OIG investigated the case. Assistant U.S. Attorney Edward N. Stamm is prosecuting the case and Assistant U.S. Attorney Gabrielle Raemy Charest-Turken is handling asset forfeiture.
In March 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Among other sources of relief, the CARES Act authorized and provided funding to the SBA to provide Economic Injury Disaster Loans (EIDLs) to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred. EIDL applications were submitted directly to the SBA via the SBA’s on-line application website, and the applications were processed and the loans funded for qualifying applicants directly by the SBA.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. For more information on the department’s response to the pandemic, please click here.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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 at http://pacer.flsd.uscourts.gov, under case number 23-cr-20155.
###
U.S. Attorney’s Office Hosts Elder Fraud Prevention ForumRead the Press Release
MIAMI – The U.S. Attorney’s Office for the Southern District of Florida hosted a public outreach event and interactive discussion, in partnership with the American Association of Retired Persons (AARP), focused on preventing crimes against senior citizens on May 15, 2025 at Century Village in Pembroke Pines, Florida. Participants included the U.S. Attorney’s Office, FBI, U.S. Postal Inspection Service, Florida’s Office of Financial Regulation, Broward State Attorney’s Office, the Wilton Manors Police Department, and AARP Florida.
The program discussed common schemes affecting senior citizens, investment fraud, lottery, and inheritance fraud, along with a local law enforcement panel with local fraud and abuse case examples.
This program is part of the U.S. Attorney’s Office for the Southern District of Florida’s Elder Justice Initiative. For more information about the Justice Department’s efforts to help American seniors please visit the Elder Justice Initiative webpage at justice.gov/elderjustice and for information regarding how the FBI can help the public, visit https://www.fbi.gov/how-we-can-help-you/scams-and-safety/common-scams-and-crimes/elder-fraud.
To report an elder fraud scam, please call 1-800-CALL-FBI, submit a tip at https://www.ic3.gov/Home/EF, or contact your local field office. The National Elder Fraud Hotline is also available for reports at 1-833-FRAUD-11 (1-833-372-8311).
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.
###
Illegal Alien from Romania Pleads Guilty in South Florida to Laundering Proceeds of Online Auction Fraud SchemeRead the Press Release
MIAMI – Giuliano Orlando Costin Sandu, 32, a Romanian national illegally present in the U.S., has pleaded guilty to a concealment money laundering scheme operating out of South Florida.
In plea documents and statements made during a hearing in federal court in Ft. Lauderdale, Fla., Sandu admitted to laundering the illegal proceeds of a nationwide online auction fraud scheme that targeted U.S. citizens who were duped into believing they were purchasing expensive cars, boats, and tractors through online auction platforms. In fact, the ads and auctions were all part of an elaborate online scam that tricked victims into wiring money to one of several accounts opened by Sandu in South Florida. Sandu used several shell companies, false identities, and fake identity documents, including a counterfeit Czech passport, to open the accounts and conceal his identity.
Once the money was deposited into Sandu’s accounts, he would quickly withdraw large amounts of cash, often from multiple accounts in various branches on the same day, in order to prevent recoupment and conceal the nature, location, and ultimate control of the fraud proceeds. Sandu admitted to laundering over three quarters of a million dollars between late 2023 and early 2024.
Sandu was arrested at a local bank branch in April of this year as he attempted to open new bank accounts using a new fake identity with additional false identification documents.
Sandu’s sentencing hearing is set for August 15 at 1:30 p.m. before U.S. District Judge William P. Dimitrouleas. He faces up to 20 years in federal prison.
U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida and acting Special Agent in Charge José R. Figueroa of Homeland Securities Investigations (HSI), Miami Field Office, made the announcement.
HSI’s Miami and Salt Lake City, Utah, Field Offices investigated the case. Assistant U.S. Attorney Jon Juenger is prosecuting it.
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 at http://pacer.flsd.uscourts.gov, under case number 24-cr-20262.
###
Zoe Mafia Family, Other Gang Members Convicted on Firearms and Narcotics Charges in South Florida Federal CourtRead the Press Release
MIAMI – The U.S. Attorney’s Office for the Southern District of Florida, ATF Miami, and Broward Sheriff’s Office (BSO), in collaboration with other federal and local law enforcement agencies, secured federal convictions and prison sentences against 18 members of violent South Florida street gangs – including Zoe Mafia Family (ZMF), the 3rd World gang, and several sects of the Bloods gang.
The joint operation involved charges of fentanyl, methamphetamine, and cocaine trafficking; carrying a firearm in furtherance of a drug trafficking crime; and felon in possession of a firearm. It led to the recovery of 23 firearms, three kilograms of fentanyl, and seven kilograms of cocaine, as well as methamphetamine, crack cocaine, and marijuana.
The defendants, former residents of South Florida (Miami-Dade, Broward, and Palm Beach counties) were convicted and sentenced to prison terms as follows:
Andre Allen, 37, was sentenced to 120 months for possession with intent to distribute fentanyl (22-cr-20190);
David Brown,41, was sentenced to 151 months for possession with intent to distribute fentanyl (22-cr-60177);
Tirell Caldwell,26, was sentenced to 57 months for possessing a firearm as a convicted felon (22-cr-60220);
Johnnie Gibson,51, was sentenced to 175 months for possession with intent to distribute fentanyl and cocaine (23-cr-60205);
Brionne Griffin,35, was sentenced to 60 months for possessing with the intent to distribute fentanyl, crack cocaine, cocaine, and methamphetamine (22-cr-60082);
Joseph Johnson, Jr.,46, was sentenced to 120 months for possessing with the intent to distribute fentanyl (23-cr-60131);
Timothy Neil Lewis, Jr.,26, was sentenced to 60 months for possessing a firearm in furtherance of a drug trafficking crime (22-cr-60083);
Makinson Moise,35, was sentenced to 248 months for possessing a firearm in furtherance of a drug trafficking crime and possessing with intent to distribute fentanyl, methamphetamine, and cocaine base (23-cr-60004);
Arnicious Odom,48, was sentenced to 30 months for possession with intent to distribute fentanyl and cocaine (23-cr-60205);
Wendy Previl,33, was sentenced to 120 months for possessing a firearm in furtherance of a drug trafficking crime and possessing with intent to distribute fentanyl (23-cr-60089);
Joshua Robinson,38, was sentenced to 51 months imprisonment for possession with intent to distribute methamphetamine (24-cr-60132);
Robert Roseme,28, was sentenced to 42 months for possessing with intent to distribute fentanyl (23-cr-60089);
Nolan Setoute,43, was sentenced to 12 months for possession of a firearm as a convicted felon (22-cr-60124);
Terrance Stanley,40, was sentenced to 60 months for possession of a firearm in furtherance of a drug trafficking crime (22-cr-60120);
Dorshawn Tate,20, was sentenced to 8 months for possession with intent to distribute alprazolam (23-cr-60051);
British Wilkerson,42, was sentenced to 60 months for possession of a firearm in furtherance of a drug trafficking crime (22-cr-60125);
Byron Felecio Williams, Jr.,40, was sentenced to 60 months for possession of a firearm in furtherance of a drug trafficking crime (22-cr-80136); and
Kevin Williams,31, was sentenced to 18 months for possession with intent to distribute methamphetamine (24-cr-60132).
U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida; acting Special Agent in Charge Gordon Mallory of the ATF Miami Field Division, and Sheriff Gregory Tony of the Broward Sheriff’s Office announced the results of the operation.
This case was investigated by ATF Miami and Broward Sheriff’s Office, with assistance from DEA Miami, HSI Miami, and FBI Miami.
Southern District of Florida Managing Assistant U.S. Attorney Bruce Brown and Assistant U.S. Attorney Jason McCormack prosecuted these cases.
Several of the defendants, are associated with Zoe Mafia Family (ZMF), a South Florida Haitian street gang.
Earlier this month, the U.S. State Department designated two Haitian gangs (Viv Ansanm and Gran Grif) as Foreign Terrorist Organizations and Specially Designated Global Terrorists.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/ocdetf.
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at https://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 at http://pacer.flsd.uscourts.gov.
###
The Diamond Desk Corp. and PetersenLowe, LLC operators sentenced in multi-million dollar diamond investment fraud schemeRead the Press Release
MIAMI – On May 15, 2025, Adam Jonathan Lowe, 43, of West Pittston, Pennsylvania, was sentenced to over 6 years in federal prison by the Honorable David Leibowitz, stemming from his conviction for conspiracy to commit wire fraud in violation of Title 18, United States Code, Section 1349, wire fraud in violation of Title 18, United States Code, Section 1343, mail fraud in violation of Title 18, United States Code, Section 1341, and engaging in monetary transactions in criminally derived proceeds, in violation of Title 18, United States Code, Section 1957. Upon release from custody, Lowe must serve three years of supervised release and pay restitution to the victims of his offense.
Previously, on May 13, 2025, co-defendant Murray Todd Petersen, 73, of Fair Oaks, California, was sentenced to 9 years in federal prison by the Honorable James I. Cohn stemming from his conviction after a seven-day jury trial in Fort Lauderdale, Florida for conspiracy to commit wire fraud in violation of Title 18, United States Code, Section 1349 and wire fraud in violation of Title 18, United States Code, Section 1343. Upon release from custody, Petersen must serve three years of supervised release and pay restitution to the victims of his offense.
On October 18, 2024, co-defendant Scott Schafer, 62, of Pembroke Pines, Florida, was sentenced to five years probation stemming from his stemming from his conviction for conspiracy to commit wire fraud in violation of Title 18, United States Code, Section 1349.
As outlined in court documents and trial testimony, Adam Jonathan Lowe, as the president of The Diamond Desk and as the manager of PetersenLowe, LLC., was the supplier of fancy-colored diamonds sourced worldwide. Murray Todd Petersen worked as a salesman for PetersenLowe, LLC., who induced investors to purchase Lowe’s fancy-colored diamonds using materially false and fraudulent representations concerning the safety and security of the investments, the value of the investments, the expected profits and rates of return, and the use of investors’ funds. After selling his victims expensive fancy-colored diamonds supplied with fraudulent overvalued appraisals from co-defendant Scott Schafer, he instructed his clients to hold onto their investments often for one to two years prior to looking to liquidate. When trying to cover his investors cash out demands at the overpriced appraisal prices, he used another false representation of a China investment program, where he would purportedly invest the victims’ money into the Chinese diamond market with a purported guaranteed five to eight percent monthly dividend return on investment. Unbeknownst to his victims, this new investment program was really a Ponzi scheme in disguise designed to pay off his first round of investor clients. When customers began to complain about missing promised returns and highly inaccurate overvalued appraisals, the scheme pivoted again to a theft model, where investors prepaid for diamonds that were never delivered by either Lowe or Petersen. Petersen took approximately $850,000 in sales commissions from his victims, which he used to pay off his high IRS tax liens and cover his business operating expenses. In total, the scheme netted approximately $13 million and defrauded in excess of 100 victims.
U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida and Acting Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, announced the conviction.
FBI Miami investigated the case. Assistant U.S. Attorneys Marc Anton and Latoya Brown prosecuted the case. Assistant U.S. Attorney Marx Calderon is handling asset forfeiture.
You may find a copy of this press release (and any updates) 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 at http://pacer.flsd.uscourts.gov, under case number 23-cr-60225.
###
Repeat Sex Offender Who Held Standoff with SWAT Team Found Guilty of Federal Child Exploitation Crimes by South Florida JuryRead the Press Release
MIAMI – This week, a federal jury sitting in Fort Pierce, Florida found Michael Gordon Douglas, 48, of Escondido, California guilty of seven counts of Distribution of Child Sexual Abuse Material (“CSAM”) and one count of Attempted Enticement of a Minor to Engage in Sexual Activity.
Federal prosecutors proved the following during the five-day trial: In October 2023, South Florida law enforcement learned that Douglas was active in an online chat room focused on incest and other sexual taboo. Douglas communicated with someone he believed was the mother of an eight-year-old girl. During months of chats, Douglas bragged about his sexual experiences with children and posted dozens of sexually explicit photos and videos. He repeatedly instructed the mother on how to gradually sexualize her child so that she would be ready, willing, and able to have sex with him. At one point, Douglas tried to set up a Halloween sex party where he offered to take the child’s virginity “in front of a meth-fueled orgy.”
On the day of a planned meet-up with the child, Douglas spotted law enforcement and erratically drove away. Agents stopped the vehicle, and a female passenger jumped out screaming, “He’s got a grenade, he’s going to kill us!” Douglas then pulled the pin out of what looked like a real grenade and held a standoff with a SWAT team. Douglas eventually put down the replica grenade and was arrested.
Inside Douglas’s car, law enforcement discovered sex toys, personal lubricant, extra-small lingerie, a small speculum, and a unicorn stuffed animal. During planning chats, Douglas said he would bring those very items to his encounter with the child. The trial evidence showed that Douglas purchased most of these items online the day before the meeting with rush delivery.
Sentencing is currently set for August 25 at 10 a.m. before U.S. District Judge Aileen M. Cannon. Douglas faces a minimum of 15 years and up to life in federal prison.
U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida and acting Special Agent in Charge Jose Figueroa of Homeland Security Investigations (HSI), Miami Field Office made the announcement.
HSI Miami and HSI San Diego Field Divisions investigated the case. U.S. Attorneys Justin Chapman and Adam McMichael are prosecuting it.
The Justice Department is committed to combating child sexual exploitation. These cases were brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.justice.gov/psc.
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 at http://pacer.flsd.uscourts.gov, under case number 23-cr-80219.
###