Southern District of Florida
Press releases recorded for this federal judicial district.
Five Defendants Sentenced to Prison Terms for Multi-Million Dollar Theft of Pre-Retail Medical ProductsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and David W. Bourne, Special Agent in Charge, Food and Drug Administration, Office of Criminal Investigation (FDA-OCI), Miami Field Office, announce that five Miami-area residents were recently sentenced to prison terms in connection with violations of the Safe Doses Act, which prohibits theft of “pre-retail” medical products. Ivan Manuel Valle, 34, of Miami, Daniel Martinez Zamora, 45, of Homestead, Raul Nick Garcia, 52, of Surfside, Ali Saleh, 35, of Miramar, and Jesus Mariano Gutierrez, 51, of Miami, were all sentenced to prison terms by U.S. District Judge Joan A. Lenard in connection with a scheme to steal more than $2.2 million worth of Mucinex cough medicine and $550,000 worth of Similac baby formula.
According to the indictment and documents filed in court, as part of an organized theft ring, 44 pallets of Similac were stolen by the conspirators from a distribution site in Forth Worth, Texas, and more than 131,000 cases of Mucinex were pilfered from a tractor-trailer truck in Mississippi. These pre-retail medical products were then transported by members of the theft ring to South Florida, stored in various locations, and offered for sale to brokers and retailers in and around Miami-Dade County. The defendants worked together to sell and distribute the stolen cargo. Valle and Zamora were brokers who obtained stolen product from others and sold portions of the stolen cargo. Garcia was a co-owner of Tadeo Supermarket in Miami where stolen cargo was sold, and he acted as a buyer and re-seller of stolen cargo using his family business, National Pallet, in Miami, where stolen product was stored. Saleh operated a beauty supply business in Broward County, where he stored stolen product and offered it for sale, and Gutierrez was a broker of the stolen cargo.
The stolen products were originally intended for sale at Wal-Mart and Walgreens stores and other retailers in the Southeastern United States.
Garcia and Zamora were each sentenced to 48 months in prison on September 22, 2014; Valle was sentenced to 60 months in prison and Gutierrez was sentenced to 30 months in prison on August 28, 2014; and, Saleh was sentenced to 34 months in prison on September 4, 2014. The defendants all previously pleaded guilty before Judge Lenard. A sixth defendant, Jorge Nimer Rolo, 47, of Miami, is currently in federal custody in Indiana and is awaiting trial on separate federal charges in the Southern District of Indiana.
The Safe Doses Act, passed by Congress in November, 2012, created a new offense, 18 U.S.C. § 670, which prohibits 1) stealing, or obtaining by fraud or deception, any pre-retail medical product; 2) knowingly and falsely making, altering, forging, or counterfeiting the labeling or documentation of a pre-retail medical product; 3) knowingly possessing or transporting a stolen or fraudulently-obtained pre-retail medical product; and, 4) buying or otherwise obtaining an expired or stolen pre-retail medical product with intent to defraud. Pre-retail medical products such as baby formula and cold medicine are covered by the Act.
Mr. Ferrer commended the investigative efforts of the FBI and FDA-OCI, as part of the Miami Major Theft Task Force. This case is being prosecuted by Assistant U.S. Attorney Jerrob Duffy.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Brazilian Man Sentenced on Firearms Trafficking ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, announce that Sergio Carvalho, 50, formerly of Boca Raton and Brazil, was sentenced on September 19, 2014, on charges of making false statements in a firearm sales record, in violation of Title 18, United States Code, Section 924(a).
Chief U.S. District Judge K. Michael Moore in Fort Pierce sentenced Carvalho to two years in prison, to be followed by two years of supervised release.
According to statements made in open court and documents filed in the case, Carvalho together with his colleague Moizes Maia Nogueira, 44, of Pembroke Pines, visited a federally licensed firearms dealer named Vincent Olavarria, Jr., 48, of Port St. Lucie, on March 30, 2001, in Port St. Lucie. The two men purchased 12 semiautomatic rifles from Olavarria, requesting that Olavarria conceal their names from the firearms sales records. Olavarria agreed to the request, and falsely placed the rifles in the names of other straw purchasers, when completing the sales paperwork required by federal law. Both Nogueira and Carvalho then resold and delivered rifles to Vicente de Paula Vieira, and his son Marcos Barbosa Vieira, two Brazilians who were exporting firearms illegally from the United States to Brazil. Olavarria recruited other straw purchasers to lend their names to false sales records concealing the actual destination of the rifles.
An ATF investigation into the sales records discrepancies led ATF Special Agents to question Carvalho in April 2011 about his purchase of rifles from Olavarria. Carvalho falsely denied knowledge of the rifles. Carvalho also did not volunteer the existence or involvement of Nogueira or the father and son team of the Vieiras, and their respective exports of firearms to Brazil. Following a federal Grand Jury indictment of the defendants in September 2012, all of the other charged defendants have pled guilty and been sentenced by Chief Judge Moore. In June 2013, Olavarria was sentenced to 34 months in prison, and Nogueira was sentenced to 30 months in prison. Straw buyer Darren Cuff, 26, of Port St. Lucie, was sentenced in June 2013, to 21 months in prison, and in September 2013, straw buyer Anthony Olavarria, 49, of Juana Diaz, Puerto Rico, was sentenced to five months in prison. Both Vicente de Paula Vieira and Marcos Barbosa Vieira have been arrested in Brazil by the Brazilian Federal Police and charged with crimes of firearms importation under Brazilian law.
Carvalho was found and arrested on April 30, 2014, in New Orleans, Louisiana, on the arrest warrant from his indictment in this case, and the U.S. Marshals Service returned him to Fort Pierce to face the pending charges.
This case is a result of Project Safe Neighborhoods (PSN). PSN is a Department of Justice nationwide initiative that combines traditional law enforcement activities with community-based support and intervention programs. The two primary goals of the PSN initiative are to reduce and prevent violent crimes and to help past offenders adjust and re-enter the community.
Mr. Ferrer commended the investigative efforts of ATF and the U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorney Theodore Cooperstein.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Rothstein Associates Charged with Conspiracy to Commit Wire FraudRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce the filing of charges against David Boden, 52, of Hallandale Beach, and Richard L. Pearson, 57, of Miami, for conspiring to commit wire fraud in connection with the operation of the former Fort Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA). In 2009, it was discovered that RRA was being utilized by its Chairman and Chief Executive Officer, Scott W. Rothstein, to commit a massive Ponzi scheme stemming from the sale of fictitious confidential settlements.
According to the information which was filed earlier today, Boden was an attorney who, in April 2008, began employment at RRA as a non-equity shareholder. Pearson agreed to act as a broker for Rothstein’s settlements. In February 2009, Boden began assisting Pearson in the sale of the settlements. Pearson would receive a sales commission from Rothstein derived from the money paid by the investor, and would pay a portion of that sales commission to Boden for his services. Beginning in September 2009, a group of investors (hereinafter referred to as “the Investor Group”) began investing in the confidential settlement agreements following a meeting with Rothstein. Boden and Pearson agreed that the Investor Group would pay a sales commission directly to Pearson. The Investor Group was not informed by Boden or Pearson that they were also receiving an additional undisclosed sales commission from the money paid by the Investor Group to Rothstein. The information further charges that Boden and Pearson, through material misstatements and omissions made to the Investor Group, caused it to incur a loss of approximately $2,400,000.
If convicted, the defendants face a maximum statutory sentence of up to five years in prison.
Mr. Ferrer commended the investigative efforts of the IRS-CI and FBI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, and Jeffrey N. Kaplan.
An information is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
North Miami Beach Resident Convicted in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), and J. Scott Dennis, Chief, North Miami Beach Police Department, announce that Paul Borgella, 35, of North Miami Beach, was convicted by a federal jury of three counts of theft of government funds, in violation of Title 18, United States Code, Section 641, for his participation in a stolen identity tax refund fraud scheme. Sentencing is scheduled for December 3, 2014, before U.S. District Judge Marcia Cooke. Paul Borgella faces a maximum term of 10 years in prison.
Co-defendant Carl Borgella, 32, of North Miami Beach, previously pled guilty to one count of conspiracy to steal tax refunds, in violation of Title 18, United States Code, Section 371, and one count of theft of government funds, in violation of Title 18, United States Code, Sections 641 and 2. Carl Borgella was sentenced on June 11, 2014 to 36 months in prison, followed by three years of supervised release, and was ordered to pay restitution of $288,044.21.
According to records filed in this case and statements made in court, in 2011, Carl Borgella and Paul Borgella each opened a business bank account for “TRCJ Asset Services,” a company incorporated in Florida listing Carl Borgella as the president and Paul Borgella as the vice president. From January 2011 to September 2011, the defendants used the bank accounts to receive over 300 fraudulently obtained United States Department of Treasury tax refunds via Electronic Funds Transfers. All of the tax refunds deposited into the bank accounts were issued as a result of fraudulent tax returns that contained materially false information and were filed using stolen personal identifying information. During the course of the conspiracy, the bank accounts received fraudulently obtained tax refunds totaling over $400,000. The defendants would then withdraw money from the bank accounts and use the money for their personal expenses by making ATM withdrawals, debit card payments, and issuing checks.
Mr. Ferrer commended the investigative efforts of IRS-CI, the USSS, and the North Miami Beach Police Department. The case is being prosecuted by Assistant U.S. Attorneys Vanessa Snyder, Cristina M. Moreno and Amanda Perwin.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Three Patient Recruiters Sentenced in $20 Million Miami Health Care Fraud SchemeRead the Press Release
Three patient recruiters were sentenced to prison today for their participation in a $20 million health care fraud scheme involving defunct home health care company Trust Care Health Services Inc. (Trust Care).
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Acting Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement. U.S. District Judge Darrin P. Gayles of the Southern District of Florida imposed the sentences.
Estrella Perez, 57, of Coral Gables, Florida, was sentenced to serve 37 months in prison, followed by three years of supervised release, and ordered to pay $1,172,162 in restitution. Solchys Perez, 34, of Miami, was sentenced to serve 30 months in prison, followed by three years of supervised release, and ordered to pay $746,600 in restitution. Abigail Aguila, 40, of Miami, was sentenced to serve 30 months in prison, followed by three years of supervised release, and ordered to pay $491,438 in restitution. On July 10, 2014, Estrella Perez and Solchys Perez pleaded guilty to conspiracy to commit health care fraud, and Aguila pleaded guilty to conspiracy to defraud the United States and receive health care kickbacks.
According to court documents, Estrella Perez, Solchys Perez, and Aguila recruited patients for Trust Care, a Miami home health care agency, in exchange for kickbacks paid in cash or by check to the defendants or their shell companies. In turn, Trust Care billed the Medicare program for home health care and therapy services that were not medically necessary or were not provided.
Estrella Perez and Solchys Perez also paid kickbacks and bribes to co-conspirators in doctors’ offices and clinics in exchange for home health and therapy prescriptions, plans of care and medical certifications for their recruited patients. Co-conspirators at Trust Care then used these documents to fraudulently bill the Medicare program for services.
From March 2007 through January 2010, Trust Care submitted approximately $20 million in false claims for home health services. Medicare paid Trust Care approximately $15 million for these fraudulent claims.
On Sept. 16, 2014, another patient recruiter, Monica Macias, was sentenced to serve 24 months in prison for her participation in the same scheme.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorneys A. Brendan Stewart and Anne P. McNamara of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
North Miami Beach Resident Sentenced in Identity Theft Tax Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), and J. Scott Dennis, Chief, North Miami Beach Police Department, announce that Dines Blanc, 24, of North Miami Beach, was sentenced before U.S. District Judge K. Michael Moore to 42 months in prison, followed by one year of supervised release.
Blanc previously pled guilty to one count of possession of 15 or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, law enforcement executed a search warrant at the residence where Blanc lived and found handwritten lists of names, dates of birth, and social security numbers of other individuals; applications to a staffing agency, including W-4s, 1-9, and resumes; medical information sheets; and approximately 25 debit cards. In total, Blanc was in possession of 611 unique pieces of personal identifying information (PII) of others. Fraudulent tax returns were filed on behalf of at least 16 individuals whose PII was found in Blanc’s residence. The loss amount is $305,500.
Mr. Ferrer commended the investigative efforts of IRS-CI, the USSS, and the North Miami Beach Police Department. This case is being prosecuted by Assistant U.S. Attorney Jamie Galvin.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Fort Lauderdale Jury Convicts Hollywood Man of Kidnapping and Sex Trafficking by ForceRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Scott Israel, Sheriff, Broward Sheriff’s Office, and Frank Fernandez, Chief, Hollywood Police Department, announce the conviction of Shaun Eric McKinley, 35, on charges of kidnapping, in violation of Title 18, United States Code, Section 1201(a) and sex trafficking by force, fraud or coercion, in violation of Title 18, United States Code, Section 1591(a).
Sentencing for McKinley has been scheduled for November 25, 2014, before U.S. District Judge William P. Dimitrouleas. At sentencing, McKinley faces a minimum mandatory sentence of 15 years in prison for the sex trafficking charge and a possible maximum sentence of life in prison for both charges.
According to records filed in this case and statements made in court, McKinley met a 28 year old female outside his home in Hollywood in December of 2013. Within three days of meeting her, McKinley was acting as her pimp and physically assaulting her for what he saw as minor infractions, such as returning home late from a prostitution date. Thereafter, the victim was required to meet all customers at McKinley’s home where he could keep an eye on her. The victim averaged approximately 5-7 dates a day, seven days a week, with all the earnings going to McKinley. The victim first attempted to leave McKinley in February but he quickly found her. When he got her home, by dragging her for blocks by the hair, McKinley punished her by making her strip naked, covering her head with a pillow case, hog-tying her with extension cords and beating her with a board. The victim waited until April to get the courage to attempt another escape, this one successful. Unfortunately, on May 18, 2014, McKinley lured her out of hiding using a ruse to get her into a dark alley, where he physically assaulted her, threw her into a car and drove away with her. The kidnapping was captured on a surveillance video from a nearby business and was played for the jury. The victim was able to escape only when McKinley stopped at a convenience store for a cigar, and left his friend in charge of watching her. That friend, a government witness, testified that after McKinley was out of sight, he unlocked the car door so the victim could run. After flagging down a passing ambulance, the victim was taken to Memorial Regional Hospital where she was treated for her injuries, which included a fractured front tooth, a lip laceration and head contusions. Still undeterred, and fearing the victim would talk to police, McKinley showed up at the hospital looking for her, dressed in blood covered clothes. A concerned nurse and an alert Hollywood Police Officer working a detail kept McKinley from reaching the victim, and McKinley was placed under arrest.
Mr. Ferrer commended the investigative efforts of ICE-HSI, the Broward County Sheriff’s Office and the Hollywood Police Department. The case was prosecuted by Assistant U.S. Attorneys Corey Steinberg and Paul Schwartz.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami Resident Sentenced in Identity Theft Tax Fraud and Social Security SchemesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Thomas Caul, Special Agent in Charge, Social Security Administration (SSA), Office of Inspector General, announce that Kevin Cimeus, 21, of Miami, was sentenced before Judge William J. Zloch to 156 months in prison, to be followed by three years of supervised release.
On June 20, 2014, Cimeus was convicted after a four day jury trial in Fort Lauderdale for his roles in identity theft tax fraud and social security schemes. Specifically, Cimeus was convicted of ten counts in the superseding indictment, including one count of conspiracy to steal government property or money, in violation of Title 18, United States Code, Section 371, three counts of theft of government money or property, in violation of Title 18, United States Code, Section 641, one count of access device theft, in violation of Title 18, United States Code, Section 1029(a)(3), and five counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to records filed in this case and statements made in court, federal agents found over 2,400 social security numbers and names of real people stored on thumb drives, laptop computers, iPad, and Cimeus’ email account at Cimeus’ residence. The evidence at the trial also showed that Cimeus recruited Miami Dade College (MDC) students to allow the defendant to use their Higher One Bank accounts to receive fraudulently obtained tax refunds and that Cimeus used his own Higher One Bank and Chase accounts to receive fraudulently obtained tax refunds. Cimeus filed at least one thousand tax returns from two IP addresses. He also used the two IP addresses to access the Social Security Administration’s web site and create online profiles for social security recipients in order to re-route the victims’ social security payments to other accounts.
Mr. Ferrer commended the investigative efforts of FBI, IRS-CI, and the SSA. This case is being prosecuted by Assistant U.S. Attorneys Gera R. Peoples and Cynthia Wood.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Florida Home Health Care Company and Its Owners Agree to Resolve False Claims Act Allegations for $1.65 MillionRead the Press Release
A Plus Home Health Care Inc. and its owners, Tracy Nemerofsky and her father, Stephen Nemerofsky, have agreed to pay $1.65 million to the United States to settle allegations that A Plus paid spouses of referring physicians for sham marketing positions in order to induce patient referrals, the Justice Department announced today. A Plus is a home health care company located in Fort Lauderdale, Florida.
“Kickback schemes undermine the integrity of our public health care programs,” said U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida. “The settlement announced today holds A Plus accountable for its submission of false claims, including restoring funds paid as a result of the false claims to Medicare. We will not relent in our efforts to combat these kinds of fraudulent schemes.”
“Kickback schemes drive up the cost of health care and cause physicians to make decisions based on their own bottom line instead of what is in the best interest of their patients,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “We will hold any health care company, and the individuals that own those companies, responsible for using kickbacks to line their pockets at the expense of taxpayers and federal health care beneficiaries.”
The United States filed a complaint against A Plus and Tracy Nemerofsky alleging that, beginning in 2006, A Plus engaged in a scheme to increase Medicare referrals in the heavily saturated home health care market in southern Florida. The company allegedly hired at least seven physicians’ spouses and one physician’s boyfriend to perform marketing duties, but required the spouses and boyfriend to perform few, if any, actual job duties. Instead, the spouses’ and boyfriend’s salaries allegedly served as an inducement and reward for the physicians’ referrals of Medicare patients to A Plus. According to the complaint, Tracy Nemerofsky fired at least two spouses when their husbands failed to refer a certain number of patients to A Plus. Tracy Nemerofsky allegedly reaped large rewards for the scheme, receiving a salary of $685,000 from A Plus in 2010, when A Plus’ business increased as a result of Medicare referrals generated from the sham marketer scheme.
“Home health care company owners who engage in such blatant, aggressive kickback schemes to get physicians to refer Medicare patients for the company’s services will instead pay for their improper conduct at the settlement table,” said Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG). “We will continue to crack down on such illegal, wasteful business kickback arrangements, which undermine impartial medical judgment, corrode the public’s trust in the health care system and divert scarce Medicare funding.”
The settlement resolves allegations that were originally brought by William Guthrie, a former director of development at A Plus, under the qui tam or whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the United States for the submission of false claims and to receive a share of any recovery. The False Claims Act authorizes the United States to intervene in such lawsuits and take over primary responsibility for litigating them, as the United States did here. Guthrie’s share of this settlement has not yet been determined.
The United States previously settled with five couples that allegedly accepted payments from A Plus: Steven and Fortuna Hornreich, Mark and Meredith Rogovin, Sam and Christy Sareh, Gary and Stacy Wolfson, and Keifer Wyble and Nuria Rodriguez.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $22.4 billion through False Claims Act cases, with more than $14.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The investigation of this matter reflects a coordinated effort among the Commercial Litigation Branch of the Civil Division, the U.S. Attorney’s Office for the Southern District of Florida, HHS-OIG and the FBI.
The lawsuit is captioned U.S. ex rel. Guthrie v. A Plus Home Health Care, Inc., 12 CV 60629 (S.D. Fla.). The claims settled by the lawsuit are allegations only, and there has been no determination of liability.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami Resident Sentenced in Identity Theft Tax Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), announce that Josue Pierre, 30, of Miami, was sentenced today before U.S. District Judge Donald M. Middlebrooks to 30 months in prison, followed by three years of supervised release.
Pierre previously pled guilty to one count of use of unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(2), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, in early 2013, Pierre used his brother's IRS electronic filing identification number (EFlN) to obtain a batch of pre-paid debit cards from a tax refund payment company. Pierre then used this EFIN to file tax returns in other people's names containing false information for the purpose of obtaining refunds from the Department of Treasury. The refunds were paid out onto pre-paid debit cards activated in other people’s names, and Pierre made withdrawals on these debit cards at ATM locations.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, USSS and ICE-HSI. This case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Cay Clubs Executives Charged in Connection with $300 Million Ponzi Scheme Involving Sales of Vacation Rental UnitsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Michael Stephens, Acting Inspector General, Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG), announce that Fred Davis Clark, Jr., a/k/a Dave Clark, 56, and Cristal R. Clark, a/k/a Cristal R. Coleman, 41, both formerly of Monroe County, were charged in a superseding indictment with conspiracy to commit bank fraud and multiple counts of bank fraud, in connection with a $300 million fraud scheme involving the sale of vacation rental units to approximately 1,400 investors in the Florida Keys and elsewhere.
According to the superseding indictment, Fred Davis Clark and Cristal Clark were executives of Cay Clubs Resorts and Marinas (Cay Clubs), which operated from 2004 through 2008 from offices in the Florida Keys and Clearwater. Cay Clubs marketed vacation rental units for 17 locations in Florida, Las Vegas and the Caribbean, to investors throughout the United States. Cay Clubs would promise to develop dilapidated properties into luxury resorts, and would promise investors an upfront “leaseback” payment of 15 to 20% of the sales price of the unit at the time of closing. Once an investor agreed to purchase a unit, Cay Clubs would arrange for a real estate closing and lender financing, but would not disclose the leaseback payment and other financial inducements to the investors on paperwork submitted to lending institutions. Cay Clubs would also use fraudulent representations in marketing the investments, including using insider sales to increase the price of the units and reporting these sales on marketing materials. Cay Clubs never made the improvements that were promised to investors.
By at least 2006, Cay Clubs did not have sufficient funds to make improvements to properties or to make the leaseback payments that had been promised to earlier investors. Cay Clubs would use the proceeds of sales to new investors to make incremental leaseback payments to earlier investors. Without obtaining more loan proceeds from new investor sales, Cay Clubs would have collapsed. In this way, Cay Clubs came to operate as a Ponzi Scheme.
After the collapse of Cay Clubs, the U.S. Securities and Exchange Commission began an investigation into alleged securities fraud at Cay Clubs. According to the indictment, Fred Davis Clark and Cristal Clark thereafter engaged in conduct aimed at concealing the location of assets under their control, and Fred Davis Clark gave false and misleading testimony to the SEC.
Through a previous indictment unsealed in June 2014, Fred Davis Clark and Cristal Clark were charged with conspiracy to commit mail and wire fraud, and mail fraud, in connection with a scheme to steal money from CMZ Group, Ltd., a Cayman Islands company that operated pawn shops in the Caribbean. According to the initial indictment, after the collapse of Cay Clubs, Fred Davis Clark and Cristal Clark used bank accounts and shell companies based in Key Largo that they had used during their Cay Clubs activities, to siphon off funds from the business operations of CMZ Group, so that they could lead a lavish lifestyle in the Caribbean.
Furthermore, in or around January 2013, shortly before an action was brought by the SEC alleging that they committed securities fraud, the indictment alleges, Fred Davis Clark and Cristal Clark caused the transfer of more than $2 million to a bank account they controlled in Honduras for the purpose of preventing the SEC from learning the location and control of these monies. These funds have since been frozen by the government of Honduras.
Fred Davis Clark and Cristal Clark were expelled from Panama and Honduras, respectively, in June 2014, and were ordered detained pretrial by U.S. Magistrate Judge Lurana S. Snow. They currently await trial on these charges in Key West before U.S. District Judge Jose E. Martinez.
Mr. Ferrer commended the investigative efforts of IRS-CI, ICE-HSI and FHFA-OIG, and the assistance of the SEC Miami Regional Office in this matter. The matter is being prosecuted by Assistant U.S. Attorney Jerrob Duffy.
An indictment is only an accusation and the defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Registered Sex Offender Sentenced to 235 Months in Prison for Attempting to Entice A Minor to Engage in Unlawful Sexual ActivityRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Dave Aronberg, State Attorney, Office of the State Attorney for Palm Beach County, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Jeffrey S. Katz, Chief, Boynton Beach Police Department (BBPD), announce that Paul David Culbreth, 52, of Loxahatchee, was sentenced by U.S. District Judge Kenneth L. Ryskamp to 235 months in prison, a life term of supervised release and will have to continue to register as a sex offender, for enticing a minor to engage in sexual activity, in violation of Title 18, United States Code, Section 2422(b).
Culbreth pled guilty to enticing a minor to engage in sexual activity on May 15, 2014. According to court records, Culbreth sent numerous sexually explicit messages via a web-based social media application to an undercover officer who posed as a 15 year old boy. Culbreth then attempted to meet the minor to engage in illegal sexual activity on New Year’s Eve. Culbreth was arrested by Special Agents from ICE-HSI after he drove to a location where he believed he would pick up the 15 year old boy. Culbreth was found with lubricant and condoms in his vehicle and is a registered sex offender in Palm Beach County.
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.
Mr. Ferrer and Mr. Aronberg commended the investigative and cooperative efforts of ICE-HSI, BBPD and the South Florida Internet Crimes Against Children (ICAC) Task Force. The case was prosecuted by Assistant U.S. Attorney Adam McMichael and Special Assistant U.S. Attorney and Assistant State Attorney Gregory Schiller.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Port Saint Lucie Return Preparer Sentenced for Tax Fraud and Identity Theft SchemesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that defendant Stevens Nore, 33, of Port Saint Lucie, was sentenced today before U.S. District Judge Kenneth A. Marra to 84 months in prison, followed by three years of supervised release and ordered to pay $2,761,397 in restitution.
Nore was previously convicted by a jury of 30 counts, including 21 counts of preparing false tax returns, in violation of Title 26, United States Code, Section 7206(2), four counts of filing false individual tax returns, in violation of Title 26, United States Code, Section 7206(1), three counts of theft of public money, in violation of Title 18, United States Code, Section 641, and two counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to records filed in this case and statements made in court, from June 11, 2009 through April 2012, Nore owned and operated Fraternity Tax and Services, a tax return preparation business located in Fort Pierce, Florida. Nore prepared and submitted Individual Tax Returns (Forms 1040), with accompanying schedules, to the IRS on behalf of taxpayers claiming false deductions and credits for tax years 2009 to 2011. Nore also filed false tax returns for 2010 through 2013 by falsely stating the amount of gross receipts and sales on Schedule C forms. Nore stole three tax refunds totaling $26,349.30 to which he was not entitled, and used the identity of two individuals without their permission.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Russell R. Killinger.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Palm Beach County Couple Charged with Bankruptcy FraudRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that husband and wife Richard S. Krugman, 61, and Tamara B. Giordano, 53, of Palm Beach County, were charged today with bankruptcy fraud, in violation of Title 18, United States Code, Section 152(1).
According to an information filed today, Krugman and Giordano filed for bankruptcy on August 27, 2008, in United States Bankruptcy Court in Palm Beach County before U.S. Bankruptcy Judge Erik P. Kimball. At the time of filing, the defendants claimed they owed approximately $2.9 million to creditors, and had available assets worth less than $13,000. The information charges that the defendants concealed from their creditors, the trustee, and the Bankruptcy Court a number of valuable items including a women’s gold and diamond Rolex watch, a gold ring with two carats of diamonds, diamond earrings, Royal Dalton china, Waterford crystal, silver, and two George Rodrigue “Blue Dog” lithographs, signed and numbered.
The case will be heard by Senior U.S. District Judge Kenneth L. Ryskamp in West Palm Beach.
Mr. Ferrer commended the investigative efforts of the FBI. This case is being prosecuted by Assistant U.S. Attorney Carolyn Bell.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami Resident Sentenced in Identity Theft Tax Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), announce that Markinson Dolce, 25, of Miami, was sentenced today before U.S. District Judge Kenneth A. Marra to 72 months in prison, followed by two years of supervised release and ordered to pay $141,768 in restitution to the IRS.
Dolce previously pled guilty to one count of theft of government monies, in violation of Title 18, United States Code, Section 641, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to court documents, on February 2, 2012, a marked Florida Highway Patrol (FHP) unit stopped a vehicle driven by Dolce that resulted in the seizure of six debit and credit cards, a laptop computer and flash drive, a notebook (containing handwritten lists of approximately 300 individuals’ names, social security account numbers, dates of birth, and employer identification numbers), and numerous items of mail in different names listing Dolce's home address. In total, Dolce had the personal identifying information (including names, dates of birth and social security numbers) of 461 different persons in his possession. It was later determined that the debit cards contained approximately $33,000 in fraudulent federal income tax refunds from 16 different fraudulent federal income tax returns that were filed.
In total, at least 75 different fraudulent federal income tax returns were filed in an attempt to secure $545,563.00 in fraudulent income tax refunds from the United States Treasury in Dolce's scheme. All of the names linked to the fraudulent tax refunds were found in the seized notebook from the FHP car stop.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. This case is being prosecuted by Assistant U.S. Attorney Stephen Carlton.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Broward Realtor Charged with Making False StatementsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), announce that Christopher White, 43, of Fort Lauderdale, was charged with three counts of making material false statements to U.S. Citizenship and Immigration Services (USCIS), in violation of Title 18, United States Code, Section 1001(a)(3).
According to the indictment, these statements were included on White’s April 16, 2014, application for naturalization submitted to the U.S. Department of Homeland Security, U.S. Citizenship and Immigration Services. The indictment charged that White made the following material false statements in his naturalization application: (1) that he had never claimed to be a U.S. Citizen; (2) that he had never committed, assisted in committing or attempted to commit a crime or offense for which he was never arrested; and (3) that he had never failed to support his dependents. If convicted, White faces a maximum penalty of five years in prison, three years of supervised release and a fine of up to $250,000 for each count.
Mr. Ferrer commended the investigative efforts of the FBI and ICE-HSI. The case is being prosecuted by Assistant U.S. Attorneys Randy Katz and Thomas P. Lanigan.
An indictment is merely an accusation and a defendant is presumed innocent unless proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami-Dade County Resident Sentenced for Her Role in Massive Stolen Identity Income Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), announce that Crystal Booker, 31, of Miami-Dade County, was sentenced today before U.S. District Judge James I. Cohn to 36 months in prison, to be followed by three years of supervised release.
Booker previously pled guilty to one count of filing a false claim with the IRS, in violation of Title 18, United States Code, Section 287.
According to court documents, defendant Orlando Cairo, 32, of Miami-Dade County, was involved in a massive stolen identity income tax refund fraud scheme where he obtained the names, social security numbers, and other personal identifying information of individuals and unlawfully used this information to file and cause to be filed fraudulent income tax returns with the IRS. The returns reported false withholdings and requested refunds based on fraudulent IRS Forms W2-G, purportedly issued by the Florida Lottery Commission when an individual has gambling income exceeding a certain threshold amount.
Court documents state that Booker assisted Cairo in this scheme by opening approximately eighteen bank accounts at financial institutions located in Broward and Miami-Dade counties. The fraudulent refunds that the IRS paid out were deposited into these bank accounts. Cairo filed and caused to be filed 378 returns identifying one of Booker’s accounts as the account where the refund should be deposited. The returns requested $2,128,841 in fraudulent refunds. In furtherance of the scheme, Cairo, with Booker’s assistance, presented to the IRS a fraudulent tax return, which claimed an income tax refund of $7,064. The refund was paid into one of the bank accounts that Booker opened.
On May 14, 2014, Cairo was sentenced to 120 months in prison, to be followed by three years of supervised release, and was ordered to pay $277,133.58 in restitution. He pled guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
Mr. Ferrer commended the investigative efforts of IRS-CI and USPIS. The case was prosecuted by Assistant U.S. Attorney Bertha R. Mitrani.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami Attorney Sentenced for Not Filing Income Tax ReturnsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Steven E. Siff, 56, of Davie, was sentenced today before U.S. District Judge William P. Dimitrouleas to 13 months in prison, to be followed by one year of supervised release.
Siff previously pled guilty to three counts of failing to file an income tax return, in violation of Title 26, United States Code, Section 7203. As part of his plea agreement, Siff agreed to pay restitution to the IRS of $924,684.
According to court documents, since at least 1982, Siff worked as an attorney in the Miami office of an international law firm, first as an associate, then as a partner. Siff failed to file personal United States income tax returns since at least tax year 1997. Between 2001 and 2011, Siff earned approximately $8,248,401 in partnership profits. For tax years 2009 through 2011, Siff failed to make an income tax return reporting gross partnership income of $716,464, $705,967, and $694,449, respectively.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case was prosecuted by Assistant U.S. Attorney Bertha R. Mitrani.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former TD Bank Employee and Co-Defendant Sentenced in Identity Theft Tax Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), announce that Tenisha Nkesha Francis, 32, of Lake Worth, and Ryan Michael Francis, 27, of Riviera Beach, were sentenced today before Senior U.S. District Judge Kenneth L. Ryskamp for their participation in a stolen identity tax refund scheme. Tensiha Francis was sentenced to 42 months in prison, three years of supervised release and ordered to pay $117,002 in restitution. Ryan Francis was sentenced to 57 months in prison, three years of supervised release and ordered to pay $202,720 in restitution.
The defendants each previously pled guilty to one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2, and one count of theft of government funds, in violation of Title 18, United States Code, Sections 641 and 2.
According to court documents, Tenisha Francis worked as a Financial Services Representative at TD Bank. Tenisha Francis opened seven fraudulent accounts at the bank with stolen identification information obtained from co-defendant Ryan Francis. She was paid between $200 and $500 to open each fraudulent account. After opening the accounts, Tenisha Francis performed maintenance on these accounts and changed certain identifiers associated with the accounts, such as customers’ dates of birth, addresses and telephone numbers. Stolen U.S. Treasury checks were deposited into the accounts, and funds were withdrawn via check card purchases, ATM withdrawals and checks payable to third parties including Ryan Francis and his wife, Vanessa Brown, and Ryan Francis’ company, J.A. Kingz Automotive, LLC.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. The case was prosecuted by Assistant U.S. Attorney Rinku Tribuiani.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Ana Alliegro Sentenced for Having Violated the Federal Election Campaign ActRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Ana Alliegro, 44, of Miami, was sentenced to six months in prison, six months of house arrest, and two years of supervised release by U.S. District Court Judge Robert N. Scola, Jr. for having violated the Federal Election Campaign Act in connection with the Democratic Party primary election for Florida’s 26th Congressional District.
Previously, Alliegro pled guilty to engaging in a conspiracy to make false statements to the Federal Election Commission and to violate the contribution limits of the Federal Election Campaign Act (Count 1); making a false statement (Count 2); and making illegal campaign contributions (Counts 3 & 4).
Mr. Ferrer commended the investigative efforts of the FBI’s Miami Area Corruption Task Force. The case is being prosecuted by Senior Litigation Counsel Thomas J. Mulvihill.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Boynton Beach Man Sentenced to 10 Years in Prison for Attempting to Entice A Minor to Engage in Sexual ActivityRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Dave Aronberg, State Attorney, Office of the State Attorney for Palm Beach County, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Jeffrey S. Katz, Chief, Boynton Beach Police Department, announce that Herman N. Reed, Jr., 35, of Boynton Beach, was sentenced today by U.S. District Judge William P. Dimitrouleas to 10 years in prison, followed by five years of supervised release, for attempting to entice a minor to engage in sexual activity. Upon release from prison, Reed will have to register as a sex offender.
Reed pled guilty to attempting to entice a minor to engage in sexual activity, in violation of Title 18, United States Code, Section 2422(b), on June 25, 2014. According to court documents, Reed spent months exchanging text messages of a sexual nature with a 16 year old customer he met at an AT&T retail store where he was employed. The minor became uncomfortable with Reed’s messages and reported the incident to the Boynton Beach Police Department. A Boynton Beach Detective assumed the minor’s identity and continued to communicate with Reed. Reed made plans to meet the minor to engage in sexual activity and was arrested when he arrived at the prearranged location. The investigation also revealed Reed’s cell phone contained an unrelated exchange of messages and images of child pornography with a 14 year old minor.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Project Safe Childhood was launched in May 2006 by the Department of Justice and is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mr. Ferrer and State Attorney Dave Aronberg commended the investigative efforts of ICE-HSI and the Boynton Beach Police Department. This case was adopted from state prosecution in cooperation with the Palm Beach County State Attorney’s Office and the South Florida Internet Crimes Against Children (ICAC) Task Force. The case was prosecuted by Assistant U.S. Attorney Brandy Galler and Special Assistant U.S. Attorney and Assistant State Attorney Gregory Schiller.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Attorney General Recognizes Southern District of Florida Trial TeamRead the Press Release
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, announces that today in Washington, D.C. Attorney General Eric Holder and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson presented the Director’s Award of Superior Performance by a Litigative Team to those responsible for the prosecution of United States v. Pikerson Mentor, et.al. at the 30th annual Director’s Awards Ceremony held in the Great Hall at the Robert F. Kennedy Department of Justice Building. The Southern District of Florida was one of 44 districts represented at the ceremony.
The recipients of the Superior Performance by a Litigative Team include, from the U.S. Attorney’s Office for the Southern District of Florida, Assistant U.S. Attorneys Anthony W. Lacosta, Roy Altman and Marlene Rodriguez. These Assistant U.S. Attorneys were among 243 members of the Department of Justice recognized; from the United States Postal Inspection Service, Juan Vargas, Otto Fernandez and Delfin Alvarez; from the Miami-Dade Police Department, Michael Brajdic and Douglas McCoy; and from the Internal Revenue Service, Roberto Lopez.
In his prepared remarks to awardees, Attorney General Holder said, “Locally, nationally, and internationally, you represent the very best that this Department has to offer. Your work embodies our ongoing commitment – not merely to win cases, but to do justice; to protect our fellow citizens from crime, violence, and terrorism; to empower the most vulnerable among us; and to uphold the rule of law.”
EOUSA Director Monty Wilkinson echoed those sentiments, saying to the recipients, “You have persevered, and remained focused and motivated – achieving remarkable results in work that makes a difference in the lives of citizens across our great country. The vast scope of your collective accomplishments is nothing short of exceptional.”
The litigative team was recognized for the successful identification, arrest and prosecution of Pikerson Mentor for the murder of Bruce Parton, a United States Postal Service (USPS) Letter Carrier. On December 6, 2010, Bruce Parton was murdered by Mentor while delivering mail. Mentor fled from the scene in Parton’s postal truck and was followed by two accomplices in a getaway car. The conspirators made off with Parton’s USPS Arrow Key and, during the next six months, used that stolen key to facilitate a massive identity theft and tax fraud scheme. After collecting, reviewing, and organizing thousands of pages of phone, debit card, and tax records over a span of two years, the team successfully identified the defendants involved in the murder and identity theft. Following a two-week trial involving approximately 40 witnesses, Mentor was convicted on all 14 counts of the indictment and sentenced to life in prison. His accomplices, Saubnet Politesse and Wilfred Georges, were sentenced to 21 years and 15 years in prison, respectively. Four other members of the identity theft ring received prison sentences of up to three years.
U.S. Attorney for the Southern District of Florida Wifredo A. Ferrer said, “I am very proud of the extraordinary talent and dedication of this year’s award recipients. It was because of the collective efforts of these committed public servants that Pikerson Mentor and his conspirators were brought to justice for the senseless and ruthless murder of Bruce Parton, a hard-working and dedicated mail carrier. I am honored to count them as colleagues.”
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Jose Padilla Re-Sentenced to 21 Years in Prison for Conspiracy to Murder Individuals Overseas, Providing Material Support to TerroristsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and John P. Carlin, Assistant Attorney General for National Security, announce today that U.S. District Judge Marcia Cooke re-sentenced Jose Padilla to serve 21 years in prison for his 2007 conviction for conspiracy to murder, kidnap and maim individuals in a foreign country; conspiracy to provide material support to terrorists; and providing material support to terrorists.
The U.S. Eleventh Circuit Court of Appeals had remanded the case after upholding the convictions but vacating the original sentence of 17 and one-half years as too lenient. Padilla faced a sentence under the U.S. Sentencing Guidelines of 360 months to life in prison.
U.S. Attorney Ferrer commended the investigative efforts of the Federal Bureau of Investigation, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations section. The re-sentencing of this case was handled by Assistant U.S. Attorneys Brian Frazier and Ricardo Del Toro of the Southern District of Florida and Department of Justice National Security Division Trial Attorney Bridget Behling.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Owner of Home Health Care Company Sentenced to 75 Months in Prison for $6.5 Million Medicare Fraud SchemeRead the Press Release
The owner and operator of a Miami home health care company was sentenced to 75 months in prison today for her participation in a $6.5 million Medicare fraud scheme involving the now defunct home health care company, Nestor’s Health Services Inc. (Nestor Home Health).
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, and Acting Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office, made the announcement. U.S. District Judge Robert N. Scola Jr. of the Southern District of Florida imposed the sentence.
Cruz Sonia Collado, 64, of Homestead, Florida, was an owner and operator of Nestor Home Health, a Miami home health care agency that purported to provide home health and physical therapy services to Medicare beneficiaries. On June 23, 2014, Collado pleaded guilty to one count of conspiracy to offer and pay health care kickbacks and to defraud the United States, and one count of offering and paying health care kickbacks. In addition to her prison term, Collado was sentenced to serve three years of supervised release and ordered to pay $6,536,657 in restitution.
According to court documents, Collado paid kickbacks and bribes to patient recruiters in return for the recruiters providing patients to Nestor Home Health for home health care and therapy services that were medically unnecessary and, in many instances, not provided. Collado then fraudulently billed the Medicare program for home health care services on behalf of the recruited patients.
From March 2009 through at least January 2014, Nestor Home Health submitted more than $6.5 million in false claims for home health services. Medicare paid Nestor Home Health more than $6.1 million for these fraudulent claims.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorneys Anne P. McNamara and A. Brendan Stewart of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Highlands County Men Plead Guilty to Firearm and Drug Trafficking OffensesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, Amos Rojas, Jr., United States Marshal, U.S. Marshals Service (USMS), Hugo Barrera, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), John Burke and Addy Villanueva, Special Agents in Charge, Florida Department of Law Enforcement (FDLE), Ft. Myers and Miami Regional Offices, respectively, Susan Benton, Sheriff, Highlands County Sheriff’s Office (HCSO), Paul C. May, Sheriff, Okeechobee County Sheriff’s Office (OCSO), and Ken J. Mascara, Sheriff, St. Lucie County Sheriff’s Office (SLCSO), announce that Alex Guerrier, 29, and Robin Jean Guillaume, 28, both of Highlands County, pled guilty to conspiracy to possess with intent to distribute cocaine hydrochloride and possession of a firearm in furtherance of drug trafficking in West Palm Beach.
As to the conspiracy to possess with intent to distribute charge, Guerrier faces a mandatory minimum sentence of ten years in prison up to a maximum of life in prison, a mandatory minimum term of supervised release of five years, a maximum fine of $10 million and a $100 special assessment. As to the conspiracy to possess with intent to distribute charge, Guillaume faces a mandatory minimum sentence of five years in prison up to a maximum of 40 years in prison, a mandatory minimum term of supervised release of four years, a maximum fine of $5 million and a $100 special assessment. As to the possession of a firearm in furtherance of drug trafficking charge, both defendants face a consecutive mandatory minimum sentence of ten years in prison up to a maximum of life in prison, up to three years of supervised release, a maximum $250,000 fine, and a $100 special assessment.
According to court documents, Guerrier and Guillame were part of a drug trafficking organization which operated in Highlands, Broward, and Miami-Dade Counties within the Southern District of Florida and elsewhere. The drug trafficking organization was responsible for the distribution of multi-kilogram quantities of cocaine hydrochloride, cocaine base, commonly referred to as “crack” cocaine, and other illegal narcotics.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
Mr. Ferrer commended the investigative efforts of the DEA, USMS, ATF, FDLE, HCSO, OCSO, and SLCSO. Mr. Ferrer also thanked the Sebring Police Department for their assistance in this matter. This case is being prosecuted by Assistant U.S. Attorney Jennifer C. Nucci.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami Resident Convicted of Obstruction of Justice by Murder and Firearms TraffickingRead the Press Release
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and J.D. Patterson, Director, Miami-Dade Police Department (MDPD), announce the conviction of Andres Campo, 26, of Miami. Campo was convicted by a jury on all counts of a 12 count indictment charging him with obstruction of justice by murder, possession of a firearm in furtherance of a crime of violence, and a number of related firearms trafficking charges. U.S. District Judge Cecilia Altonaga presided over the trial.
Specifically, Campo was charged with and convicted of conspiring to obstruct justice by murder (18 U.S.C. § 1512); obstruction of justice by murder (18 U.S.C. § 1512); possession of a firearm in furtherance of a crime of violence, resulting in death (18 U.S.C. §§ 924(c)(1)(A) and (j)); conspiracy to export firearms without a license (18 U.S.C. § 554); six counts of possessing firearms parts that were intended for illegal exportation (18 U.S.C. § 554); and two counts of possessing a firearm while a fugitive from justice (18 U.S.C. § 922(g)(2)). The jury further found the murder was premeditated. At sentencing, Campo faces a mandatory sentence of life in prison.
According to the evidence at trial, Erik Comesana, the victim, was a straw purchaser in an international arms trafficking organization responsible for the shipment of numerous AR-15 rifles, .50 caliber rifles, and other firearms and firearm parts to Cali, Colombia. The organization was run by Campo, who used Comesana and other straw purchasers to buy firearms and firearm parts from legal firearm dealers in south and central Florida. The firearms and firearm parts were gathered at various locations in Miami, taken apart into smaller pieces, and then hidden inside of boxes of miscellaneous materials that were shipped to Colombia.
In October 2009, Comesana was detained after an ATF Special Agent noticed Comesana’s accomplice purchasing an unusual number of AR-15 lower receivers. Comesana provided a statement to the agents. The investigation continued until March 2011, when Comesana was ultimately arrested and charged with firearms trafficking violations in the Southern District of Florida.
On May 27, 2011, Comesana notified the federal court that he intended to plead guilty. Later that evening, Comesana’s body was found burning in southwest Miami-Dade County, after being murdered in another location. A joint investigation by the MDPD Homicide Bureau and ATF subsequently identified Campo and Carlos Rios as the perpetrators.
According to the evidence at trial, after Comesana was arrested, Campo grew increasingly paranoid about the prospect that Comesana would cooperate with the ongoing federal investigation.
On May 27, 2011, Campo instructed Comesana to appear at a warehouse, purportedly to give him money to pay for Comesana’s attorney. Instead, Comesana was shot twice and died at the scene. Comesana’s body was transported to another location and set on fire. Campo and Rios then fled Florida for a period of time before ultimately returning to resume their arms trafficking business.
During the next year, while searching for Campo and Rios, the investigation continued. On July 3, 2012, both Campo and Rios narrowly missed being arrested when agents searched a home in which their identification and firearms trafficking paraphernalia was found. Ultimately, on July 26, 2012, Campos and Rios were arrested in a Miami motel parking lot, after they emerged from a room that they had rented in a false name. A loaded firearm and an upper AR-15 was recovered from Campo’s vehicle.
Rios previously pled guilty to participating in the murder and received a sentence of life in prison.
Mr. Ferrer thanked the many law enforcement agencies involved in this South Florida High Intensity Drug Trafficking Area Task Force (HIDTA) operation. In particular, Mr. Ferrer thanked ATF and MDPD. This case is being prosecuted by Assistant U.S. Attorneys Anthony LaCosta and Seth M. Schlessinger.
The South Florida HIDTA was established in 1990. This program, made up of federal, state and local law enforcement agencies, fosters intra-agency cooperation among law enforcement agencies in South Florida and involves them in developing a strategy to target the region’s drug-related threats to public safety. The South Florida HIDTA uses the funding provided by the Office of National Drug Control Policy that sponsors a variety of law enforcement initiatives that target the region’s illicit drug threats.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Defendant Pleads Guilty in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, and J. Scott Dennis, Chief, North Miami Beach Police Department, announce that Wadlin Fevrier, 36, of North Miami, pled guilty today to one count of using unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(2). Sentencing is scheduled for November 25, 2014. At sentencing, Fevrier faces up to ten years in prison.
According to court documents, a representative from Great Florida Bank contacted law enforcement regarding suspicious ATM activity occurring at various bank branches throughout the Miami area. Specifically, an individual conducted numerous ATM transactions at a particular branch bank between the dates of February 7, 2011 and March 26, 2011. The transactions involved cash withdrawals using different ATM cards and occurred on 19 different days.
During surveillance on March 31, 2011, law enforcement observed Fevrier making four separate ATM transactions using different cards. Law enforcement arrested Fevrier and searched his pockets. Inside his pockets were four Visa debit cards and $1,600.00 in cash. None of the Visa cards were embossed with a name. During a later consent search of Fevrier’s car, officers found 11 additional Visa debit cards. Fevrier admitted to being involved in illegal ATM activity.
Following Fevrier’s arrest, law enforcement subpoenaed the 15 cards found in his possession. There were approximately 27 separate tax refunds loaded onto the cards. These returns were collectively worth $62,580.00.
Mr. Ferrer commended the investigative efforts of IRS-CI, the USSS, and the North Miami Police Department. The case is being prosecuted by Assistant U.S. Attorney John R. Byrne.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
One Defendant Sentenced and Two More Defendants Plead Guilty in Identity Theft Fraud Scheme Involving Personal Identifying Information from AT&T Customer FilesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Angel Arcos, 23, of Pompano Beach, was sentenced, and Monique Smith, 31, of Pompano Beach, and Arrington Basil Segu, 28, of Miami pled guilty before U.S. District Judge Marcia G. Cooke for participating in a conspiracy to unjustly enrich themselves by stealing personal identifying information and using the information to make unauthorized wire transfers from the victims’ bank accounts and obtain unauthorized credit or debit cards.
Arcos was sentenced to time served, to be followed by four years of supervised release. As a condition of his supervised release, Arcos was subject to 180 days of home detention with electronic monitoring. Arcos pled guilty on May 15, 2014, to one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349.
Smith pled guilty to one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349, and one count of aggravated identity theft in violation of Title 18, United States Code, Section and 1028A. Segu pled guilty to one count of access device fraud and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(2) and 1028A. Sentencing for Smith and Segu is scheduled for November 19, 2014.
On August 6, 2014, Judge Cooke sentenced Chouman Emily Syrilien, 25, of Lauderdale Lakes, to 34 months in prison, to be followed by three years of supervised release. Syrilien pled guilty to one count of possession of 15 or more unauthorized access devices and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(3) and 1028A.
Co-defendants Jacqueline Nicole Lee Warrick, 26, of Miami, and Tracy Delva, 27, of Deerfield Beach, pled guilty on July 30, 2014, and Carlos Antonio Alexander, 24, of Orlando, pled guilty on July 16, 2014, to one count of using an authorized access device and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(2) and 1028A. Alexander’s sentencing is scheduled for October 1, 2014. Sentencing for Warrick and Delva is scheduled for October 15, 2014.
Trial is scheduled on September 22, 2014, for Shantegra La’Shae Godfrey, 23, of Deerfield Beach.
According to court documents, defendant Syrilien was employed by Interactive Response Technologies, Inc. (IRT) located in Margate. IRT provides staffing for call centers to handle direct sales and customer inquiries for AT&T. Syrilien unlawfully provided a co-conspirator with the personal identifying information from multiple AT&T customer files. Segu also unlawfully provided personal identifying information of numerous individuals to the co-conspirator.
Alexander, Delva, Godfrey, Smith and Warrick were added as “authorized users” on victims’ credit or debit card accounts or bank accounts to access the accounts of persons whose personal identifying information had been stolen. Once a co-conspirator’s name was added as an “authorized user,” the bank and/or credit card company was directed to mail additional debit or credit cards bearing the names of these newly added “authorized users” to their addresses or addresses under their control, all without the true account holder's knowledge or consent. The defendants used these credit and debit cards to make purchases or obtain money.
Delva and Warrick both utilized fraudulently obtained debit and credit cards that bore their names as additional “authorized users” on victims’ accounts to make both retail purchases as well as cash advances in excess of $28,000. Alexander, Smith and Godfrey made retail purchases as well as cash advances in excess of $24,000, $12,000 and $8,200, respectively.
Arcos allowed his personal information to be used to open a bank account to further the fraudulent activity. From September 16 to 18, 2013, five withdrawals totaling $13,000 were made from the fraudulent account and deposited into Arcos’ checking account.
The defendants face a maximum of 30 years in prison for the conspiracy charge, a maximum of 10 years in prison for the access device fraud charge, and a mandatory term of two years in prison for the aggravated identity theft charge.
Mr. Ferrer commended the investigative efforts of IRS-CI and FBI. The case is being prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Mutual Benefits Corporation Head Sentenced to 20 Years in Prison for His Role in $1 Billion MBC SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), announce that Joel Steinger, a/k/a “Joel Steiner,” (Steinger) was sentenced to 20 years in prison, three years of supervised release, and ordered to forfeit $15 million by U.S. District Judge Robert N. Scola, Jr. A restitution hearing is scheduled for November 24, 2014. .
Steinger previously pled guilty to conspiracy to commit mail and wire fraud, in violation of 18 U.S.C. §1349, as a result of his scheme to defraud investors in Mutual Benefits Corporation (MBC), which marketed viatical and life settlements.
Steinger is the final defendant to be convicted out of 13 charged as a result of the MBC scheme, which defrauded approximately 30,000 victims. As the de facto head of MBC, Steinger, along with conspirators Steven Steiner, a/k/a Steven Steinger, Michael McNerney, and Anthony M. Livoti, Jr., Esq., and others, raised more than $1.25 billion from investors before being shut down by federal regulators in May 2004. By the time charges were filed in December, 2009, investor losses were estimated to amount to more than $800 million.
According to the evidence presented in a related trial and summarized during Steinger’s guilty plea, from approximately 1994 to May 2004, MBC purchased life insurance policies from persons suffering from AIDS, the chronically ill, and elderly persons. Having purchased the life insurance policies, MBC sold fractionalized interests in insurance policy death benefits, known as “viatical settlements,” to approximately 30,000 investors. MBC solicited the investments through an international network of sales agents. In promotional materials, MBC told investors that its viatical settlements offered a fixed rate of return with low risk, and that investors’ principal and returns were paid by the insurance companies. Under Steinger’s direction, MBC misrepresented various important facts relating to its viatical settlements, including, for example, the estimated life expectancies of the insured persons, the supposedly independent role of doctors determining those life expectancies, MBC’s fraudulent methods used to acquire life insurance policies, the risks associated with certain policies, the payment of premiums, and the source of funds used to pay investors.
Steinger, already a convicted felon at the time of the MBC fraud, hid behind a figurehead company president to conceal a criminal and disciplinary history that otherwise would have prevented the company from obtaining a license to conduct business in Florida and elsewhere.
Evidence supporting his conviction also established that new investor money was used to pay premiums on life insurance policies purchased by earlier investors and to pay investors who requested their money back. In essence, the evidence demonstrated that Steinger and his co-conspirators were operating a Ponzi-like scheme, using new investor money to pay for earlier investor obligations, and that money from new investors was continuously required to prevent the MBC Ponzi-scheme from collapsing, which, ultimately, it did.
Co-defendant Steiner was also a founding principal of MBC, was actively involved in MBC’s marketing and promotional activities, and encouraged investors to buy MBC’s investments. On September 3, 2013, Steiner pled guilty to charges in the same case. Steiner was also found guilty by a federal jury in a related case, United States v. Steven Steiner, No. 11-20578-CR-Williams in connection with money laundering and obstruction of justice related to the use and concealment of more than $15 million dollars in proceeds derived from the MBC fraud. Steiner was sentenced to a total of 15 years in prison.
Co-defendant Livoti, Jr. was convicted for his role in the MBC fraud on December 4, 2013, after a jury trial. Livoti was sentenced to 10 years in prison.
Today’s sentencing also resolved Steinger’s more recent Case No. 12-CR-20123-Scola, charging conspiracy to commit mail and wire fraud against health insurers, where Steinger, his brother Steven Steiner, and his brother’s life partner, Henry Fecker, made false claims of employment in order to secure group health coverage. Steinger received a total sentence of 20 years, followed by three years of supervised release to run concurrently with the sentence imposed in the MBC case. Mr. Ferrer commended the investigative efforts of the Internal Revenue Service, Criminal Investigation. This case was prosecuted by Assistant U.S. Attorneys Jerrob Duffy, Dwayne Williams and Alison W. Lehr.
Mr. Ferrer commended the investigative efforts of the FBI and the Miami Regional Office of the Securities and Exchange Commission, which previously brought a civil action against MBC and its principals. The MBC case is being prosecuted by Assistant U.S. Attorneys Karen Rochlin and Alison W. Lehr.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former CFO of Rothstein, Rosenfeldt and Adler, P.A. Sentenced for Conspiracy to Launder Money and to Defraud A Financial InstitutionRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Irene Shannon, formerly known as Irene Stay, 50, of Miami, was sentenced today in Miami by U.S. District Judge Ursula Ungaro to five years in prison, to be followed by two years of supervised release.
On May 21, 2014, Shannon pled guilty to conspiracy to commit money laundering and bank fraud, in violation of Title 18, United States Code, Section 371, through the operation of the former Fort Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA). Shannon was the Chief Financial Officer of RRA. In 2009, it was discovered that RRA was being utilized by its Chairman and Chief Executive Officer, Scott W. Rothstein, to commit a massive Ponzi scheme stemming from the sale of fictitious confidential settlements.
When she entered her guilty plea, Shannon admitted that she oversaw the accounting functions of RRA, including the deposits and withdrawals made by RRA and Rothstein at TD Bank and other financial institutions. In furtherance of the Ponzi scheme, Shannon transferred hundreds of millions of dollars obtained from investors to pay prior investors in the scheme and to supplement and support the operation and activities of RRA, among other purposes. The defendant further admitted that she was well aware that hundreds of millions of dollars were not being held in trust accounts for investors, contrary to what those investors had been told, and that the funds were instead being disbursed to further Rothstein’s fraudulent scheme. The defendant also admitted that she utilized her position to float checks between and among certain bank accounts maintained by RRA in a form of bank fraud commonly known as “check kiting.”
Mr. Ferrer commended the investigative efforts of the IRS-CI and FBI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, and Jeffrey N. Kaplan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Defendant Charged in Investment Scam Yielding Millions of Dollars from Investors – And Miami Heat TicketsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Haider Zafar, 36, formerly of Miami-Dade County, has been charged with five counts of wire fraud in connection with an investment scam that yielded millions of dollars from investors and Miami Heat premium ticket package.
If convicted, Zafar faces a maximum penalty of 20 years in prison on each wire fraud count.
According to the indictment, Zafar would introduce and portray himself as Haider Zafar Haswhani, a member of a wealthy and influential Pakistani family that operated several hotels, including the Marriott Hotel bombed in Islamabad, Pakistan, textile plants and oil businesses. He claimed he lived in a penthouse in The Essex house in New York, but also had residences at The Setai, the Mondrian, and 10 Museum Park, across the street from the American Airlines Arena.
In approximately October of 2012, Zafar approached a Miami Heat sales executive and said he wanted to purchase a premium three-season ticket package, which would cost $1,055,000, along with other items related to the Miami Heat and games played at the American Airlines Arena. He was provided the package in anticipation of later payment.
Shortly thereafter, and using this same identity, the indictment alleges Zafar obtained a loan and millions of dollars from investors wanting to invest in an investment opportunity he proposed to them. Zafar, according to the indictment, never invested anything, and instead used the money provided for personal expenses and to pay a portion of what was owed for the Miami Heat tickets.
Though at the time of this offense Zafar was living in Miami-Dade County, Zafar is presently incarcerated in Ohio awaiting sentencing on federal fraud charges there.
Mr. Ferrer commended the investigative efforts of the FBI. The case is being prosecuted by Assistant U.S. Attorney Luis M. Pérez.
An indictment is only an accusation and a defendant is presumed innocent until and unless proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Owner and Seven Employees of Mortgage Company and Two Real Estate Developers Indicted for $50 Million Scam Involving Federally Insured MortgagesRead the Press Release
The owner of a Florida mortgage company, seven employees of the company and two real estate developers were indicted in the Southern District of Florida in connection with an alleged $50 million mortgage fraud scheme.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and David A. Montoya, Inspector General for the Department of Housing and Urban Development (HUD) made the announcement.
Hector Hernandez, 56, of Miami, Florida, the owner and operator of Great Country Mortgage Bankers (Great Country), a mortgage lender in Miami, was charged with one count of conspiracy to commit wire fraud affecting a financial institution and 25 counts of wire fraud affecting a financial institution. Great Country loan officers Durand Deeb, 43, of Miami, Frank Carino, 48, of Apollo Beach, Florida, and Fabian Perez, 39, of Miami; Great Country loan processors Juliette Del Rio, 37, of Miami, and Julissa Saavedra, 43, of Miami,; Great Country underwriters Olga Hernandez, 58, of Lake Mary, Florida, and Olga Rodriguez, 53, of Miami; and real estate developers Armando Bravo, 42, of Coral Gables, Florida, and Aleida Fontao, 61, of Miami, were also indicted for conspiracy to commit wire fraud affecting a financial institution and varying counts of wire fraud affecting a financial institution.
According to the indictment, beginning in January 2006 and continuing through September 2008, Hernandez and others allegedly obtained mortgage loans insured by the Federal Housing Administration (FHA), a division of HUD, for unqualified borrowers by exaggerating the borrowers’ income and otherwise misrepresenting their financial condition.
Specifically, Hernandez and others allegedly created false documents on behalf of borrowers who could not otherwise qualify for FHA-insured loans due to insufficient income, high levels of debt, and outstanding collections. These documents included bogus earnings statements that inflated the borrowers’ income and false verification of employment forms that overstated their work histories.
In addition to creating these false documents, Hernandez and others allegedly offered the unqualified borrowers cash back after closing as an incentive to purchase condominiums. These secret payments were not disclosed in the loan applications and were omitted from loan closing documents so that HUD and the financial institutions that subsequently purchased the loans would not know of their existence.
By later selling the fraudulent loans to financial institutions, Great Country transferred the risk of loss to those institutions . The vast majority of the unqualified borrowers failed to meet their monthly mortgage obligations and defaulted on their loans. When the loans went into foreclosure, HUD, which insured the loans, was required to pay the outstanding balances to the financial institutions, resulting in losses in excess of $50 million to the agency.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
This case is being investigated by HUD’s Office of Inspector General with assistance from the U.S. Marshals Service, Miami-Dade Police Department Warrants Bureau and Miami-Dade State Attorney’s Office – Public Corruption Task Force. This is being prosecuted by Senior Litigation Counsel David A. Bybee and Trial Attorney Michael T. O’Neill of the Criminal Division’s Fraud Section.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two More Sentenced to Lengthy Prison Terms for Treasure Coast PNC Bank Robbery SpreeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, John A. Bolduc, Chief, Port St. Lucie Police Department, Ken J. Mascara, St. Lucie County Sheriff’s Office, Sean Baldwin Chief, Ft. Pierce Police Department, J. Michelle Morris, Chief, Sebastian Police Department, and Deryl Loar, Sheriff, Indian River Sheriff’s Office, announce the sentencing of Anthony Isaac Johnson, 25, and Allen Demetrius Bradford, 23, both of West Palm Beach, by U.S. District Judge Jose E. Martinez. Johnson was sentenced to 35 years in prison, followed by five years of supervised release. Bradford was sentenced to 481 months (over 40 years) in prison, followed by five years of supervised release.
Previously sentenced in this case were defendants Ivory Lee Robinson, III, 22, and Tomaleesha Jeffie Laqua McKeliver, 22, both of West Palm Beach, by U.S. District Judge Donald L. Graham. Robinson, a career offender, was sentenced to 262 months in prison, followed by five years of supervised release on February 27, 2014. McKeliver was sentenced to 102 months in prison, followed by three years of supervised release on December 16, 2013.
Defendants Raven Simone Sayers, 23, of Hallandale, Herbert Lenorris Smith, 37, of West Palm Beach, and Joe JR Desilien, 25, of West Palm Beach, were previously sentenced by Judge Martinez. Sayers was sentenced to 162 months in prison, followed by three years of supervised release on March 10, 2014. Smith was sentenced to 204 months, followed by five years of supervised release on May 20, 2014. Desilien was sentenced to 194 months, followed by five years of supervised release on July 14, 2014.
Paul Edward Moore pled guilty on May 14, 2014, and is scheduled to be sentenced on November 18, 2014.
Each of the defendants previously pled guilty to interference with commerce by robbery (Hobbs Act), in violation of Title 18, United States Code, Section 1951, and using and carrying a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Section 924(c).
According to court documents, between June 8, 2013 and July 8, 2013, employees of five PNC bank branches, located in the counties of Indian River, Volusia, Hillsborough, and St. Lucie Counties, were robbed at gunpoint by three black males, whose faces were covered, wearing gloves. In all of the robberies, one male would brandish a handgun, while the other two approached and/or jumped the tellers’ counters demanding money.
On June 8, 2013, three black males entered the PNC Bank in Sebastian. Moore, Johnson and a third male ran into the bank, with Moore and Johnson jumping over the counter, with the third male remaining in the lobby area, brandishing a semiautomatic handgun. Bank employees and a customer, who was at the front counter, were ordered and forced to the floor, as the Moore and Johnson searched the teller drawers. After taking a large quantity of cash, which included a dye pack, all three males fled in a stolen vehicle, which they abandoned nearby.
On June 20, 2013, Moore, Johnson and Bradford entered the PNC Bank in Port Orange with faces covered and wearing gloves. Bradford brandished a firearm at the bank employees, while Moore and Johnson jumped the teller counters, demanding and taking United States currency. The three males fled the bank in a stolen vehicle, driven by Desilien, which was found abandoned nearby. Prior to the robbery, at a nearby McDonald’s restaurant, surveillance camera shows Moore, with Johnson and Desilien.
On July 1, 2013, Moore, Johnson and Bradford entered the PNC Bank in Tampa with faces covered, wearing gloves. One male brandished a firearm at the bank employees while the other two males jumped the teller counters, demanding and taking United States currency. The three males fled the bank in a stolen vehicle, found abandoned nearby. On this date, Sayers was in possession of a leased vehicle, in which the robbers fled the Tampa area.
During the night of July 7, 2013, into the early morning hours of July 8, 2013, Johnson, Moore, Bradford, Desilien, Sayers, Robinson, McKeliver, and Smith, met in West Palm Beach and planned and agreed to rob two St. Lucie County PNC banks at gun point. In order to carry out the two robberies, the group separated into two teams. The plan was for each team to have a female as a getaway driver and three males. Sayers and McKeliver agreed to be the robbery getaway drivers. Each team would steal a van, rob each of the banks at gunpoint, with their faces covered, leave the bank in the van, and transfer into the getaway vehicles, in order to flee the area. Sayers and McKeliver drove rental cars. The two teams travelled from Palm Beach County to St. Lucie County in the two rented cars. While en route, the two teams remained in cellular phone contact with one another. Once in St. Lucie County, the teams scouted PNC Banks and escape routes and stole two vans in Ft. Pierce for use in the two bank robberies. Later on July 8, 2013, two St. Lucie County PNC Banks were robbed at gunpoint, almost simultaneously. Law enforcement eventually identified, located, arrested and charged Sayers, Robinson, McKeliver, and their co- conspirators.
Mr. Ferrer commended the investigative efforts of the FBI, Port St. Lucie Police Department, St. Lucie County Sheriff’s Office, Ft. Pierce Police Department, Sebastian Police Department, Indian River Sheriff’s Office, Palm Beach County Sheriff’s Office, Port Orange Police Department, and Hillsborough County Sheriff’s Office for their work on this case. The case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Tax Return Preparers Charged in Fraudulent Refund SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Ronald A. Cimino, Deputy Assistant Attorney General of the Justice Department’s Tax Division, and Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Claudia Zuloaga, 43, and Sharon Elizabeth Angulo, 49, both of Miami, have been charged in a 32 count indictment with one count of conspiring to defraud the United States, in violation of Title 18, United States Code, Section 371, and 20 and 11 counts, respectively, of assisting in the preparation of false federal income tax returns, in violation of Title 26, United States Code, Section 7206(2).
If convicted, the defendants face a maximum of five years in prison on the conspiracy count and a maximum of three years in prison on each of the Title 26 counts.
According to the indictment, beginning in approximately September 2008 and continuing through September 2012, the defendants jointly operated a tax preparation business from offices located at 18710 SW 107th Avenue, Miami, Florida. The indictment further alleges that Zuloaga and Angulo recruited clients by falsely representing that they could eliminate a substantial portion of their debts by obtaining sizable tax refunds for them. As alleged in the indictment, this would be accomplished through false and fraudulent tax returns which the defendants would prepare for each client in exchange for fees usually amounting to 30percent of the tax refunds fraudulently obtained and totaled in excess of $250,000 from those clients who were successful in receiving fraudulently obtained refunds.
As further alleged in the indictment, the tax returns prepared by the defendants falsely set forth that certain financial institutions had withheld sizable amounts of tax from falsely declared interest income earned from these same financial institutions. Through this fraudulent mechanism, each return gave the false appearance of entitling the client to a significant tax refund due to over-withholding of tax payments in connection with their claimed interest earnings. In addition, the indictment alleges that, in order to provide false substantiation for these fraudulent tax refund claims, the defendants caused fictitious IRS Forms 1099-OID to be created which set forth the false interest and tax withholding amounts fraudulently reported upon their clients’ tax returns.
The indictment also alleges that Zuloaga and Angulo promoted the fictitious “redemption theory” to their clients as the purported justification for their fraudulent tax refund claims. Through this promotion, clients were falsely informed that the submission of tax returns in this manner allowed their clients to legitimately access large amounts of money allegedly contained in certain non-existent “straw man” accounts which the defendants claimed were being maintained by the United States Treasury for each individual who possessed a Social Security number.
As part of the conspiracy, Zuloaga and Angulo are also alleged to have engaged in various acts designed to prevent the IRS from investigating their fraudulent activities and collecting the repayment of any tax refunds falsely and fraudulently obtained. These acts included the submission of numerous false documents on behalf of both their clients and themselves which were designed to obstruct the IRS from taking investigative and enforcement actions against their clients and themselves.
Mr. Ferrer commended the investigative efforts of the IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Peter B. Outerbridge and the department’s Tax Division Trial Attorney Alexander Effendi
An indictment is only an accusation and a defendant is presumed innocent until and unless proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Port St. Lucie Broker Sentenced to 87 Months in Prison in Wire Fraud Embezzlement SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Danny Banks, Special Agent in Charge, Orlando Regional Operations Center, Florida Department of Law Enforcement (FDLE), announce that Paul Elvidge, 54, of Port Saint Lucie, was sentenced by U.S. District Judge Jose E. Martinez to 87 months in prison, followed by three years supervised release, and ordered to pay restitution in the amount of $1,289,878 for embezzling from client investment accounts while acting as a securities broker for Cape Securities, Inc. (Cape Securities) and Seacoast Investor Services, Inc. (Seacoast).
Specifically, Elvidge was sentenced to 63 months in prison for eight counts of wire fraud, in violation of Title 18, United States Code, Section 1343, followed by a consecutive 24 months on the aggravated identity theft count, in violation of Title 18, United States Code, Section 1028A.
According to court documents, Elvidge, formerly a registered representative and stockbroker with Cape Securities and Seacoast from 2010 to 2012, did willfully and knowingly obtain money fraudulently by authorizing numerous wire transfers from his clients’ brokerage accounts to his own personal bank and brokerage accounts.
To carry out the fraud, Elvidge prepared fraudulent letters of authorization directing that funds be transferred from a client’s account to his own Seacoast brokerage or his PNC bank account. He would then forge the client’s signature on the letter of authorization to make it appear that the transfer was authorized by the account holder. Thereafter, he would fax the fraudulent letter of authorization to Cape Securities’ main office in Georgia, or – when he operated as Seacoast – to Pershing LLC, which was the clearing house used to conduct Seacoast transactions. Once the money was transferred to his accounts, he used the money to pay his personal and business expenses, and to conduct day trades through a personal account he had at AMP Global Clearing.
Mr. Ferrer commended the investigative efforts of the FBI and FDLE. This case was prosecuted by former Assistant U.S. Attorney Shaniek Maynard.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Owner of Home Health Care Company Sentenced to Nearly Six Years in Prison for Role in $6 Million Medicare Fraud SchemeRead the Press Release
A co-owner of Professional Medical Home Health LLC was sentenced today to serve 70 months in prison and ordered to pay $6.2 million in restitution for her participation in a health care fraud scheme involving the now defunct home health care company.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, and Acting Special Agent in Charge Reginald France of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami Office made the announcement. U.S. District Judge Federico A. Moreno of the Southern District of Florida imposed the sentence.
According to court documents, Annarella Garcia, 44, of Hialeah, Florida, was a co-owner of Professional Medical Home Health, a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries. Between December 2008 and February 2014, Garcia and others engaged in a scheme to bill the Medicare Program for expensive physical therapy and home health care services that were not medically necessary or were not provided. During that time, Professional Medical Home Health was paid approximately $6.25 million by Medicare for the fraudulent claims.
Specifically, Garcia and her co-conspirators paid kickbacks and bribes to patient recruiters in return for their providing patients to Professional Medical Home Health for home health and therapy services that were not medically necessary or were not provided. In furtherance of the scheme, Garcia and her co-conspirators falsified patient documentation to make it appear that beneficiaries qualified for and received home health care services, when, in fact, many of the beneficiaries did not actually qualify for such services and did not receive such services.
Garcia pleaded guilty to conspiracy to commit health care fraud on June 25, 2014.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorneys A. Brendan Stewart and Anne P. McNamara of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Manager Sentenced to 72 Months in Prison in Loan Modification Fraud Scheme CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, and Ronald J. Verrochio, Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Division, announce that Robert Bacon, 35, of West Newbury, Massachusetts, was sentenced by U.S. District Judge Kenneth Marra to 72 months in prison, to be followed by three years of supervised release and payment of restitution in an amount to be determined. Bacon previously pled guilty to charges of conspiracy to commit mail fraud and wire fraud, and mail fraud, in violation of Title 18, United States Code, Sections 1349 and 1341.
Eight of ten defendants charged in this case have pled guilty to the charges, which involved a scheme to bilk thousands of homeowners who were struggling to make their mortgage payments. Defendants Jason Vitulano and Jeffrey Taylor are currently set for trial starting on November 10, 2014.
According to the indictment and other documents filed in the case, between September 2008 and August 2009, the defendants operated boiler rooms that collected advance fees from distressed homeowners purportedly in exchange for obtaining loan modifications for the homeowners which were, with few exceptions, never provided.
The other defendants who have previously been sentenced include the following, with their respective sentences:
- Peter Brown, 27, of Sound Beach, NY, was sentenced to 33 months in prison and two years of supervised release;
- Ajay Thuraisingham, 27, of Ontario, Canada, was sentenced to 54 months in prison and three years of supervised release;
- Christopher Duharte, 36, of Coconut Creek, was sentenced to 30 months in prison and three of years supervised release;
- Gregory Small, 29, of Boca Raton, was sentenced to 30 months in prison and two years of supervised release;
- Arthur Fogarty, 57, of Hollywood, was sentenced to 21 months in prison and two years of supervised release.
Co-defendants Neil Sack, 40, of Ft. Lauderdale, and Brian Fleuridor, 30, of Delray Beach, are each scheduled for sentencing on September 26, 2014, at 9:00 a.m. and 9:30 a.m., respectively.
The indictment alleges that Jason Vitulano was the organizer and operator of FHA All Day.com, Inc. and two other companies, Housing Assistance Law Center, Inc. and Safety Financial Corp., which operated the boiler rooms in Boca Raton and later in Deerfield Beach. According to the indictment and the factual proffers submitted in support of the guilty pleas, Robert Bacon was an operations manager who wrote and edited sales scripts, while the other eight defendants served as team managers of four to eight telemarketers who made thousands of phone calls to homeowners behind on their mortgage payments.
As alleged in the indictment, the defendants made false statements to the homeowners including telling homeowners they had already been approved or pre-approved for a loan modification that would save the homeowner a specific amount off their mortgage payment, reducing the interest rate and often the principal balance on the mortgage loan. The defendants, according to the indictment, routinely told customers that they had been approved by an “underwriter” and that they had a team of “expert attorneys” who would finalize the loan modifications.
The indictment further alleges that the defendants targeted homeowners across the country who were facing foreclosure, falsely telling them that the company would stop the foreclosure process and that homeowners could stop making mortgage payments while they waited for the company to finalize their loan modifications. FHA All Day, as alleged in the indictment, moved its offices and changed the corporate name several times to avoid law enforcement scrutiny and to hamper consumer complaints. Through the use of these and other false representations, the defendants, according to the indictment, induced over 2,000 distressed homeowners to pay up front fees totaling more than seven million dollars to the defendants.
Mr. Ferrer commended the investigative efforts of USSS and USPIS. This case is being prosecuted by Assistant U.S. Attorney Lauren Jorgensen.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Seven Defendants Charged in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Amos Rojas, Jr., U.S. Marshal, U.S. Marshals Service (USMS), announce the indictment of seven individuals for their roles in a stolen identity tax refund fraud scheme. The indictment charges defendants Lukner Blanc, 31, of Royal Palm Beach, Frank Fleuzinord, 29, of Cape Coral, Jean Juste, a/k/a “Junior” or “Shorty,” 24, of West Palm Beach, Benoit Placide, a/k/a “Snow” or “Mario,” 26, of West Palm Beach, Shelda Phadael, 28, of Lake Worth, Marie Claude, 25, of Lantana, and Marie Demesyeux, 29, of Lake Worth. Six of the defendants have been arrested. Fleuzinord remains at-large.
Defendants Phadael, Claude, and Demesyeux were arraigned today before United States Magistrate Judge Dave Lee Brannon. All three of the defendants pled not guilty. A trial date has not yet been set. Placide’s arraignment is scheduled for August 26, 2014, Juste’s arraignment is scheduled for August 27, 2014, and Blanc’s arraignment is scheduled for August 28, 2014.
All defendants are charged with one count of conspiracy to receive, conceal and retain monies stolen from the United States, in violation of Title 18, United States Code, Section 371.
In addition, Defendant Blanc is charged with three counts of theft of government money, in violation of Title 18, United States Code, Section 641, nine counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1), and five counts of wire fraud, in violation of Title 18, United States Code, Section 1343. Defendant Fleuzinord is charged with two counts of aggravated identity theft. Defendant Juste was charged with one count of theft of government money, five counts of aggravated identity theft, and five counts of wire fraud. Defendant Placide is charged with five counts of aggravated identity theft and five counts of wire fraud. Defendant Phadael is charged with one count of theft of government money.
Defendants Claude and Demesyeux are each charged with one count of perjury, in violation of Title 18, United States Code, Section 1623(a), for making a false statement while testifying under oath before a Federal Grand Jury.
According to court documents, the defendants stole the identities of real persons (names, dates of birth, and Social Security numbers) and used the information to file fraudulent income tax returns online to the IRS. The defendants opened personal bank accounts and purchased debit cards that were utilized to receive the fraudulent income tax refunds. After the fraudulent refunds were sent by wire to the bank accounts and debit cards, the defendants and their co-conspirators withdrew the funds at automatic teller machines (ATMs) and point of sale electronic terminals at various retail establishments.
If convicted, the defendants face a maximum of five years in prison for the conspiracy charge, a maximum of ten years in prison for the theft of government money charge, a mandatory term of two years in prison for the aggravated identity theft charge, a maximum of twenty years in prison for the wire fraud charge, and a maximum of five years in prison for the perjury charge.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USMS Regional Fugitive Task Force. This case is being prosecuted by Assistant U.S. Attorney Stephen Carlton.
An indictment is only an accusation and a defendant is presumed innocent until and unless proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Homestead Resident Sentenced in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, announce that Mark Anthony Dacres, Jr., 30, of Homestead, was sentenced today before U.S. District Judge Ursula Ungaro to 81 months in prison, to be followed by three years of supervised release. Dacres was also ordered to pay $34,920.00 in restitution.
Dacres previously pled guilty to one count of possessing fifteen or more unauthorized access devices (social security numbers), in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, special agents executed a search warrant at the residence where Dacres stayed and found numerous prepaid debit cards, printed lists, handwritten notes/papers and books containing the names, date of births, and social security numbers of at least 1,750 individuals. Eighty-five tax returns were filed from the IP address registered to the residence using the names and social security numbers of individuals found on the printed lists and handwritten notes/papers. IRS-CI special agents contacted six of these eighty-five taxpayers and all six taxpayers stated that they did not know Dacres, that they did not authorize Dacres to possess their names, date of births, and social security numbers, and that they did not authorize Dacres to file federal tax returns for the 2013 tax year using their names and social security numbers.
Mr. Ferrer commended the investigative efforts of the Identity Theft Strike Force, with special commendation to IRS-CI and the USSS. The case was prosecuted by Assistant U.S. Attorney Gera R. Peoples.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Florida Man Sentenced for Filing False Claims with Internal Revenue ServiceRead the Press Release
A Lighthouse Point, Florida, man was sentenced today to serve 12 months and one day in prison for filing a false claim for a tax refund with the Internal Revenue Service (IRS), U.S. Attorney Wifredo Ferrer for the Southern District of Florida and Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department’s Tax Division announced.
Bradley Bowman was also ordered to pay $300,403 in restitution to the IRS and to serve three years of supervised release. According to court documents, in 2009, Bowman submitted to the IRS a false individual income tax return for tax year 2005 that fraudulently claimed a refund of $299,024. Bowman engaged Penny Jones, who is currently serving 12 years in prison in a related case involving more than 380 false returns, to prepare this false return. Bowman fraudulently claimed his gross income was $447,036 and then falsely claimed that all of his income was withheld to satisfy his income tax liabilities. Bowman pleaded guilty to this charge on May 27.
The case was investigated by special agents of the IRS-Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Bertha Mitrani for the Southern District of Florida and Trial Attorney Greg Bailey of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found at the division website.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Three South Florida Residents Charged in Conspiracy to Distribute Illegal Drugs, SteroidsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, David W. Bourne, Special Agent in Charge, U.S. Food and Drug Administration (FDA), Office of Criminal Investigations, Miami Field Office, and Ric Bradshaw, Sheriff, Palm Beach Sheriff’s Office (PBSO), announce that Frank Fiore, 59, of Parkland, Gary Lee Jones, 55, of Boca Raton, and Anthony Carbone, 32, of Deerfield Beach, have been charged with conspiring to possess Alprazolam, a controlled substance, with the intent to distribute it, conspiring to traffic in counterfeit Xanax, distributing Alprazolam, and trafficking in counterfeit Xanax. In addition, Fiore and Carbone have been charged with conspiring to possess anabolic steroids and 500 grams or more of cocaine with the intent to distribute them, distributing anabolic steroids, and attempting to possess 500 grams or more of cocaine with the intent to distribute it. Jones has also been charged with possession of a firearm after conviction for a felony.
According to the allegations in the complaints and indictment, the defendants initially sold an undercover officer counterfeit Xanax. The tablets contained Alprazolam, which is the active ingredient in Xanax and is a Schedule IV controlled substance. In addition, Jones, who has a prior felony conviction, sold the undercover officer a ROMARM Wassenaar Arrangement Semiautomatic Rifles, a Romanian variant of the AK-47 rifle, for $1,000 cash. Fiore and Carbone then sold a second undercover officer various anabolic steroids. Carbone, with Fiore’s assistance, also attempted to buy a kilogram of cocaine from a second undercover officer. During the course of these drug dealings, Fiore also asked the undercover officer to kill an associate of Fiore’s and to “beat up” another associate.
Evidence at trial established that Burke and Garland created fictitious companies, including Next Level Development, and used an abandoned coin laundry in Delray Beach, to create an empire of fraudulently obtained investment properties. The abandoned coin laundry had a mailbox that served as the official address for the defendants, various fake companies, and other conspirators and fictitious individuals. Trial evidence established that Burke and Garland used fake documents, including false wage and tax documents, and false claims of employment and income, to obtain bank loans for investment properties in low-income neighborhoods. Garland was held out as the “President” of Next Level, and would sell properties to Burke, using his alias, “David Middleton.” The defendants would then enroll the properties in the U.S. Department of Housing and Urban Development (HUD), Section 8 voucher program, and obtain proceeds from HUD and from low-income tenants. The defendants then used false claims of status for Burke and also for the fake name, “David Middleton,” as total and permanent disabled veterans to avoid property taxes on various fraudulently obtained properties. Burke and his fake alias were neither veterans nor disabled. Trial evidence established that the loans and rental proceeds totaled millions of dollars.
If convicted, Fiore faces maximum possible statutory sentences of 40 years in prison for conspiring to possess controlled substances with the intent to distribute them; 40 years in prison for attempting to possess cocaine with the intent to distribute it; 20 years in prison for conspiring to traffic in counterfeit Xanax; 20 years in prison for each of the four counts of trafficking in counterfeit Xanax; 10 years in prison for each of the two counts of distributing anabolic steroids; and five years in prison for each of the four counts of distributing Alprazolam.
If convicted, Jones faces maximum possible statutory sentences of 20 years in prison for conspiring to traffic in counterfeit Xanax; 20 years in prison for each of the two counts of trafficking in counterfeit Xanax; 10 years in prison for possession of a firearm after conviction for a felony; five years in prison for conspiring to possess Alprazolam with the intent to distribute it; and five years in prison for each of the three counts of distributing Alprazolam.
If convicted, Carbone faces maximum possible statutory sentences of 40 years in prison for conspiring to possess controlled substances with the intent to distribute them; 40 years in prison for attempting to possess cocaine with the intent to distribute it; 20 years in prison for conspiring to traffic in counterfeit Xanax; 20 years in prison for each of the four counts of trafficking in counterfeit Xanax; 10 years in prison for each of the three counts of distributing anabolic steroids; and five years in prison for each of the two counts of distributing Alprazolam.
Mr. Ferrer commended the investigative efforts of FDA–Office of Criminal Investigations and PBSO. This case is being prosecuted by Assistant U.S. Attorney Marc Osborne.
An indictment and information is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Rothstein Associate Pleads Guilty to Conspiracy to Commit Wire FraudRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Frank Preve, 70, of Coral Springs, pled guilty today in Ft. Lauderdale before U. S. District Judge James I. Cohn to conspiracy to commit wire fraud, in violation of 18 U.S.C. § 371. At his sentencing, scheduled for December 12, 2014, Preve faces a maximum statutory sentence of up to five years in prison.
In 2009, it was discovered that the law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA) was being utilized by its Chairman and Chief Executive Officer, Scott W. Rothstein, to commit a massive Ponzi scheme stemming from the sale of fictitious confidential settlements. In a written factual stipulation filed in connection with his guilty plea, Preve admitted that he worked for a number of companies, referred to as “the Banyon Group,” which solicited lenders and investors into the confidential settlement business being offered by Rothstein. The defendant further admitted that, from on or about July 9, 2009 through October 31, 2009, he defrauded investors by not disclosing that Rothstein had failed to make payments that were due to the Banyon Group, that Rothstein had frozen certain bank accounts that were holding investor funds, that certain paperwork was not being prepared, and that verification of the investments was not taking place, all in violation of a private placement memorandum which had been circulated to potential investors by the Banyon Group. The defendant further admitted that, through these material misrepresentations and omissions, Preve caused more than $20 million to be paid by investors to the Banyon Group.
Mr. Ferrer commended the investigative efforts of the IRS-CI and FBI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, and Jeffrey N. Kaplan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Delray Beach Residents Sentenced to Lengthy Prison Sentences in Multi-Million Dollar Bank Fraud Scheme Involving South Florida Investment PropertiesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, announce that Darryl Burke, 50, and Vicki Garland, 50, both of Delray Beach, were sentenced yesterday by U.S. District Judge James I. Cohn for their roles in a multi-million dollar bank fraud scheme spanning from at least 2002 through 2013. Burke was sentenced to 30 years in prison and Garland was sentenced to 15 years in prison.
Previously, Burke and Garland were convicted on February 5, 2014, by a federal jury in Ft. Lauderdale of bank fraud and wire fraud conspiracy, after a two and half week trial. Burke was also convicted of four substantive counts of bank fraud, and Garland was convicted of three substantive counts of bank fraud. Each defendant was also sentenced to serve five years of supervised release and ordered to pay restitution.
Evidence at trial established that Burke and Garland created fictitious companies, including Next Level Development, and used an abandoned coin laundry in Delray Beach, to create an empire of fraudulently obtained investment properties. The abandoned coin laundry had a mailbox that served as the official address for the defendants, various fake companies, and other conspirators and fictitious individuals. Trial evidence established that Burke and Garland used fake documents, including false wage and tax documents, and false claims of employment and income, to obtain bank loans for investment properties in low-income neighborhoods. Garland was held out as the “President” of Next Level, and would sell properties to Burke, using his alias, “David Middleton.” The defendants would then enroll the properties in the U.S. Department of Housing and Urban Development (HUD), Section 8 voucher program, and obtain proceeds from HUD and from low-income tenants. The defendants then used false claims of status for Burke and also for the fake name, “David Middleton,” as total and permanent disabled veterans to avoid property taxes on various fraudulently obtained properties. Burke and his fake alias were neither veterans nor disabled. Trial evidence established that the loans and rental proceeds totaled millions of dollars.
Defendants used the proceeds of the fraud to acquire a multi-residence waterfront compound in Delray Beach, as well as Bentley, Mercedes and Range Rover automobiles, luxury goods, courtside season tickets for the Miami Heat, and to obtain large amounts of cash. Evidence further showed that Burke was convicted in 1997 in the Southern District of Florida of federal bank fraud charges, in relation to conduct that spanned the late 1980s and early 1990s.
Previously, four defendants were convicted in connection with the scheme to defraud multiple lenders. Three title agents, Osvaldo Sanchez, 38, Rafael Amador, 32, both of Miami, Devon Fraser, 31, of Sunrise, and real estate investor Chiquita Alexis, 46, of Boca Raton, all pled guilty to the same conspiracy involving Burke and Garland.
Mr. Ferrer commended the investigative efforts of USSS and the Federal Deposit Insurance Corporation, Office of the Inspector General. This case is being prosecuted by Assistant U.S. Attorneys Jerrob Duffy and Evelyn B. Sheehan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Ana Alliegro Pleads Guilty to Violation of the Federal Election Campaign ActRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Ana Alliegro, 44, of Miami, pled guilty today before U.S. District Court Judge Robert N. Scola, Jr. to having violated the Federal Election Campaign Act in connection with the Democratic Party primary election for Florida’s 26th Congressional District. Sentencing for Alliegro has been scheduled for September 10, 2014 at 8:30 a.m. before U.S. District Court Judge Scola.
Specifically, Alliegro pled guilty to engaging in a conspiracy to make false statements to the Federal Election Commission and to violate the contribution limits of the Federal Election Campaign Act (Count 1); making a false statement (Count 2); and making illegal campaign contributions (Counts 3 & 4). At sentencing, Alliegro faces a maximum term of five years in prison on each count and a fine of up to $250,000 on each count.
Mr. Ferrer commended the investigative efforts of the FBI’s Miami Area Corruption Task Force. The case is being prosecuted by Senior Litigation Counsel Thomas J. Mulvihill.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Miami Residents Sentenced for Money Laundering Activities Involving Stolen Identity Tax RefundsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, announce that Steven Toussaint, 33, and Emmanuel Marvin Alphonse, 28, both of Miami, were sentenced before U.S. District Judge Jose E. Martinez. Toussaint was sentenced to 46 months in prison, to be followed by three years of supervised release. Alphonse was sentenced to 37 months in prison, to be followed by three years of supervised release. Each defendant previously pled guilty to one count of money laundering, in violation of Title 18, United States Code, Section 1956(a)(1)(B)(i).
According to court documents, from January 1, 2011 through July 29, 2011, the defendants engaged in money laundering activities involving the cashing of money orders funded with fraudulent, stolen identity tax refunds. Both Toussaint and Alphonse had their own check cashing accounts at the Cash-A-Check check-cashing store. Steven Toussaint cashed 985 money orders, totaling $490,401, using his own Cash-A-Check account. Emmanuel Marvin Alphonse cashed 581 money orders, totaling $286,995, using his own Cash-A-Check account. The defendants knew that the money orders were funded by unlawful activity, and knowingly conducted the transactions on behalf of third-parties for the purpose of concealing and disguising the nature and source of the unlawful proceeds in exchange for a portion of the funds involved in each transaction.
Mr. Ferrer commended the investigative efforts of IRS-CI and USPIS. The case is being prosecuted by Assistant U.S. Attorney Frank R. Maderal.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Real Estate Developer and Mortgage Broker Plead Guilty to Mortgage Fraud SchemeRead the Press Release
Two Miami, Florida, residents pleaded guilty this week to participating in a mortgage fraud scheme involving the sale of condominium units in the Miami area.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Nadine Gurley of the Department of Housing and Urban Development’s Office of the Inspector General in Miami (HUD-OIG) and Acting Inspector General Michael P. Stephens of the Federal Housing Finance Administration (FHFA) made the announcement.
Luis Michael Mendez, 44, and Wilkie Perez, 39, each pleaded guilty to one count of conspiracy to commit bank fraud and wire fraud before U.S. District Court Judge Darrin P. Gayles in the Southern District of Florida. In their pleas, both defendants admitted that they participated in a scheme to place straw buyers in condominium units owned by real estate developers who are members of Mendez’s immediate family in return for a share of the profits.
As part of Mendez’s plea agreement, he admitted participating in a scheme to sell condominium units in developments controlled by members of his immediate family to straw buyers who would neither own nor be financially responsible for the properties. Mendez conspired with two Florida mortgage brokers to finance the fraudulent transactions with loans obtained by submitting false loan applications and supporting documentation. Mendez also admitted submitting false loan applications in his own name to purchase a number of properties. Following the purchase of the units, the seller funneled a portion of the sale proceeds to shell corporations controlled by Mendez. In total, Mendez admitted that his conduct caused a loss of over $3 million.
According to court papers, Perez was a licensed mortgage broker who owned Kinetic Mortgage Group, Inc., a mortgage brokerage company in Miami, Florida. Perez admitted that he and Luis Mendez, one of Mendez’s immediate family members who owned and controlled the real estate developments, entered into an agreement in which Perez arranged for straw buyers to obtain financing to purchase units controlled by Luis Mendez by, among other things, submitting to financial institutions loan applications and supporting documents containing false information about buyers’ employment, income, and assets. Luis Mendez paid kickbacks to Perez out of the loan proceeds following the closings on the properties. Perez, in turn, used a portion of the kickback payments to compensate straw buyers for the use of their identities and credit information. In total, Perez admitted to obtaining more than $2.5 million in fraudulent loans.
Mendez and Perez were indicted by a federal grand jury on March 31, 2014, with Luis Mendez, Stavroula Mendez, Marie Mendez, and Enrique Angulo, who have entered pleas of not guilty and are scheduled for trial beginning Sept. 8, 2014. The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
The case is being investigated by HUD-OIG and FHFA. The case is being prosecuted by Trial Attorneys Gary A. Winters and Brian Young of the Criminal Division’s Fraud Section.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Medical Resident Sentenced to Child Pornography ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Paula Reid Reid, Special Agent in Charge, United States Secret Service (USSS), Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Daniel J. Oates, Chief, Miami Beach Police Department, announce that U.S. District Judge Robert N. Scola sentenced Daniel Bays, 30, of Clermont, to 52 months in prison, followed by 25 years of supervised release and registration as a sex offender.
In October 2013, officers of the Miami Electronic Crimes Task Force (MECTF) of the USSS and ICE-HSI identified a user on a peer-to-peer file-sharing network who was in possession of files indicative of child pornography. Through investigation, agents identified that Bays, an anesthesiology resident at Jackson Memorial Hospital, was the user.
Through additional investigation, agents determined that the files in Bay’s digital folder matched files that were known to depict child pornography. From approximately August 7, 2013, through December 4, 2013, the shared folder associated with Bay’s username had displayed over 700 videos with titles indicative of child pornography.
On December 11, 2013, MECTF, assisted by the Miami Beach Police Department, executed a federal search warrant at Bay’s residence, located in Miami Beach. Inside the residence, the agents found Bay’s laptop computer. After conducting a forensic analysis of the computer, law enforcement found images and videos that depicted child pornography that had been downloaded using a peer-to-peer file-sharing program.
On January 10, 2014, a federal grand jury sitting in the Southern District of Florida returned a one-count indictment, charging Bays with possessing child pornography. On April 14, 2014, Bays pled guilty to this crime.
Mr. Ferrer commends the investigative efforts of USSS, ICE-HSI and the Miami Beach Police Department for their assistance and their work on this case. The case is being prosecuted by Assistant U.S. Attorney Cristina Moreno.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Medical Assistant Pleads Guilty After Stealing Patients’ Identities from the Memorial Healthcare System DatabaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, announce that La Toya Yvette Tillman, 33, of Hollywood, pled guilty today to one count of possessing fifteen or more unauthorized access devices with the intent to defraud, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Sentencing is scheduled for October 24, 2014 at 9:30 a.m. before U.S. District Judge Darrin P. Gayles. At sentencing, Tillman faces up to ten years in prison for the access device charge, and a mandatory term of two years in prison, consecutive to any other term in prison, for the aggravated identity theft charge.
According to court documents, Tillman, who worked as a medical assistant at Gastroenterology Consultants in Hollywood, confessed to accessing the Memorial Healthcare System database through her computer at work to steal patient identities, including names, dates of birth, and social security numbers, so that she could sell them. She sold an individual approximately 2,000 identities for $1 each, and the individual told her that he used the identities to file fraudulent tax returns. In addition, in her car, Tillman had a list of 114 identities, including names, dates of birth, and social security numbers. Tillman knew that the victims did not authorize her to possess their personal information.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. The case is being prosecuted by Assistant U.S. Attorney Vanessa Snyder.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Five More Individuals Charged in Cybercrime/Bank Fraud SchemeRead the Press Release
22 defendants have been charged to date; financial institutions report millions of dollars in losses
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that five individuals have been charged in connection with a scheme that uses stolen identification information to gain online access to personal bank accounts in order to steal from unwitting account holders. The charges represent the most recent efforts to neutralize this cybercrime scheme, which has already led to 17 convictions in three separate cases. Today’s cases bring the number of people charged in this scheme to 22 in six separate cases. As a result of this fraud, several financial institutions have reported millions of dollars in losses.
Those charged today include Wassim Jamal Abouassali, 22, of Plantation; Luis M. Jimenez, 25, of Miami; Jesus Venereo, 27, of Hialeah; Lazaro Perez, 27, of Hialeah; and Raul Riveron, 43, of Hialeah. Abouassali is charged with conspiracy to commit bank fraud, in violation of 18 U.S.C. §1349, 15 substantive counts of bank fraud, in violation of 18 U.S.C. §1344, and seven counts of aggravated identity theft, in violation of 18 U.S.C. §1028A, all in case number 14-20565-CR-Ungaro. Jimenez is charged with conspiracy to commit bank fraud, in violation of 18 U.S.C. §1349, 22 substantive counts of bank fraud, in violation of 18 U.S.C. §1344, and 10 counts of aggravated identity theft, in violation of 18 U.S.C. §1028A, all in case number 14-20564-CR-Cooke. In case number 14-20566-CR-Williams, Venereo, Perez, and Riveron are charged with conspiracy to commit bank fraud, in violation of 18 U.S.C. §1349; Venereo and Perez are charged in 15 substantive bank fraud counts, in violation of 18 U.S.C. §1344, while Riveron is charged in nine of those same counts; and Venereo and Perez are charged in eight counts of aggravated identity theft, in violation of 18 U.S.C. §1028A, while Riveron is charged in four of those same counts. The indictments allege that Abouassali and Jimenez were tellers at different Wells Fargo bank branches.
All defendants charged have been taken into custody and are expected to make their initial appearances today at 2:00 p.m. before U.S. Magistrate Judge Alicia M. Otazo-Reyes.
If convicted, the defendants face the following possible maximum statutory sentences: 30 years in prison on the bank fraud and bank fraud conspiracy counts; and consecutive two-years in prison on the aggravated identity theft counts.
According to the charges, members of the scheme paid for personal identification information such as names, birthdates and social security numbers, along with bank account numbers, which they would use to make online intrusions into the accounts of victims. In some cases, members of the scheme created online access for accounts where it did not previously exist. Once they obtained access, conspirators changed account passwords and contact information in order to take control of the victims’ accounts. They then used that online access to obtain images of checks and signatures in order to create counterfeit and forged checks. As a final step, additional individuals would be recruited to cash the counterfeit checks at various bank branches. Several financial institutions have reported losses amounting to millions of dollars as a result of this fraud. Today’s arrests involve efforts to target accounts at Wells Fargo, while previous cases have involved intrusions into accounts at other financial institutions.
“Today’s charges involve an alleged modern-day bank robbery scheme that targeted banks using stolen personal identification information (PII) from various individuals to hijack personal checking accounts and steal funds. However, instead of using guns or masks to rob the banks, these charged individuals used the internet,” said U.S. Attorney Wifredo A. Ferrer. “Cybercrime is one of the greatest threats we face today. These cases should serve as a reminder to all consumers to exercise vigilance in protecting their PII and for all institutions to remain vigilant in safekeeping our PII.”
“These indictments are due in large part to the diligent investigative work of the FBI’s Miami Cyber Task Force,” said George L. Piro, Special Agent in Charge, FBI Miami. “More and more, criminals are using the Internet to steal millions of dollars from thousands of account holders without ever stepping inside a bank. The FBI and our partners continue to actively target these fraudsters who seek illicit gains from unwitting victims.”
Mr. Ferrer commended the investigative efforts of the FBI. These cases are being prosecuted by Assistant U.S. Attorney Karen Rochlin.
An indictment is only an accusation and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Vice-President of Investment Company Pleads Guilty in $21 Million Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Louis N. Gallo, III, 45, of Parkland, the Vice-President of Commodities Online LLC (COL), pled guilty on Friday, August 8, 2014, for his participation in a $21 million investment fraud scheme.
Gallo pled guilty before U.S. Magistrate Judge Jonathan Goodman to one count of conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 1349. Sentencing for Gallo is scheduled for October 16, 2014.
According to court documents, Gallo conspired with co-defendants James C. Howard, III, Patricia S. Saa, Michael R. Casey and others to defraud individuals who invested in COL. From approximately January 2010 through April 2011, Howard and his co-conspirators used material false and fraudulent representations and material omissions to obtain over $21 million from over 700 investors.
According to court documents, Gallo and his co-conspirators used COL to sell COL ownership units, subscriptions to the COL website, and investments in purported transactions to buy and sell commodities. Via the COL website, Gallo and his co-conspirators offered investors the opportunity to participate in funding certain purported “pre-sold” commodities contracts. Gallo and his co-conspirators represented to investors that COL had a track record of profits. However, COL did not have profits. Any payments made to investors were made using funds received from newer investors.
Also according to court documents, Gallo and his co-conspirators also caused material misrepresentations to be made about the leaders of COL. After mid-2010, Howard stepped down as President of COL, and Casey, an attorney, became the President of COL. Gallo and his co-conspirators represented to investors that Howard was no longer managing COL, when in fact, Howard remained in charge. Also, Gallo and his co-conspirators did not disclose to investors that both Gallo and Howard had previously been convicted of federal felonies and that Gallo was still serving a term of supervised release.
According to court documents, Gallo and his co-conspirators also made material misrepresentations and omissions about the misuse of funds that COL received from investors. For example, Gallo caused at least $2.5 million to be diverted for himself and his family.
Also according to court documents, after COL was taken over by a court-appointed Receiver, Gallo participated in a similar scheme involving Global Solutions and Acquisitions LLC (GSA). Approximately 50 individuals invested about $1.1 million in GSA. About $200,000 was paid to investors using funds from other investors. The GSA investors lost about $900,000. As part of his plea agreement, Gallo agreed to pay restitution to the victims of both COL and GSA.
Mr. Ferrer commended the investigative efforts of the FBI. This case is being prosecuted by Assistant U.S. Attorneys Ana Maria Martinez and John P. Gonsoulin.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.