Southern District of Florida
Press releases recorded for this federal judicial district.
Pompano Beach Resident Pleads Guilty and Is Sentenced for Illegally Trafficking in Marine LifeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Tracy Dunn, Special Agent in Charge, National Oceanic and Atmospheric Administration (NOAA), Office of Law Enforcement, announce that Eric Burman, 60, of Boca Raton, pled guilty and was sentenced today by Senior U.S. District Court Judge James Lawrence King to a term of three years of probation. Burman was also ordered to pay a fine of $250,000, the fine to be transferred upon receipt to the Magnuson-Stevens Fishery Conservation and Management Act Fund administered by the Department of Commerce, National Oceanic & Atmospheric Administration, pursuant to the authority of Title 16, United States Code, Section 1861(e).
Burman was charged with a one count information with conspiracy to violate the federal Lacey Act, by transporting, selling, receiving, acquiring, and purchasing wildlife, that is Florida spiny lobster (Panulirus argus) with a fair market value in excess of $350.00, knowing that said wildlife was taken, possessed, transported, and sold in foreign commerce, in violation of the laws and regulations of the State of Florida, all in violation of Title 16, United States Code, Sections 3372(a)(2)(A), 3373(d)(1) and (2).
According to statements in court, and the court pleadings, at the relevant times, Burman was President and the sole Director of a Florida corporation with its principal place of business in Pompano Beach. Burman, through the business entity, was engaged in the wholesale commercial seafood industry, including the export of live Florida spiny lobster to the seafood market in China.
Burman admitted that during August and September 2010, he and a co-conspirator purchased spiny lobster from harvesters in Monroe County without creating and providing to the harvesters and the Florida Fish & Wildlife Conservation Commission, trip tickets reflecting the transactions. Thereafter, a co-conspirator of Burman’s caused the lobster to be transported to the corporate business premises in Pompano Beach for packing and shipping in foreign commerce. Burman agreed to allow the co-conspirator to package, mark, and ship the spiny lobster under the corporate entity’s name and through the corporation’s shipping agent. The lobster was ultimately transported from the business in Pompano Beach to a commercial airfreight carrier at Miami International Airport and exported to Hong Kong, China. The charges included a series of “overt acts”, describing multiple instances when specific shipments of spiny lobster were made to China by air freight, and the unlicensed and undocumented purchase of spiny lobsters in the Florida Keys.
Mr. Ferrer commended the investigative efforts NOAA Office of Law Enforcement and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Islamorada Field Office. This matter is being prosecuted by Assistant U.S. Attorneys Thomas Watts-FitzGerald and Antonia Barnes.
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.
Chiropractor and Office Assistant Sentenced in Staged Automobile Accident SchemeRead the Press Release
92 defendants have been charged to date in Operation Sledgehammer I-VI
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), Jeff Atwater, Florida Chief Financial Officer, Florida Department of Financial Services, and Dave Aronberg, State Attorney, Office of the State Attorney for Palm Beach County, announce that Lawrence Schechtman, 45, chiropractor, of Parkland, and Sircy Sacerio, a/k/a “Sisi” a/k/a “Sircy Santos”, 31, receptionist and office assistant, of Palm Springs, were sentenced today by U.S. District Judge Kenneth A. Marra for their participation in an automobile insurance fraud scheme involving staged automobile accidents.
Schechtman was sentenced to 52 months in prison, to be followed by two years of supervised release, and was ordered to pay $2,446,906.79 in restitution. Sacerio was sentenced to 48 months in prison, to be followed by two years of supervised release, and was ordered to pay $1,146,824.26 in restitution. Both defendants previously pled guilty to one count of conspiracy to commit mail fraud, in violation of Title 18, United States Code, Section 1341, all in violation of Title 18, United States Code, Section 1349. Schechtman also pled guilty to four counts of mail fraud, and Sacerio also pled guilty to five counts of mail fraud, in violation of Title 18, United States Code, Sections 1341 and 2.
According to court documents, between approximately October 2006 and December 2012, the conspiracy members staged automobile accidents by recruiting individuals to participate in the accidents. The participants were referred to as “Perro” and “Perra” or “Macho” and “Hembra.” Thereafter, the clinic owners caused the submission of false insurance claims through chiropractic clinics that were controlled by members of the conspiracy. To execute the scheme, the true owners of the chiropractic clinics recruited individuals who had the medical or chiropractic licenses required by the state to open a clinic, including Schechtman, to act as “nominee owners” of the clinics. The co-conspirators also hired complicit licensed chiropractors, including Schechtman, who prescribed and billed for unnecessary treatments and/or for services that had not been rendered. Thereafter, complicit clinic employees, including Sacerio, prepared and submitted claims to the automobile insurance companies for payment for these unnecessary or non-rendered services. Twenty-one clinics participated in this scheme.
Starting with Operation Sledgehammer I in June 2011 and including the defendants charged in Operation Sledgehammer VI, 92 defendants have been charged for their participation in this automobile insurance fraud scheme. Of those 92 defendants, 56 have been charged federally by the U.S. Attorney's Office, resulting in court-ordered restitution of more than $5 million to the defrauded insurance companies. Thirty-six defendants have been charged by the Palm Beach County State Attorney's Office.
Mr. Ferrer commended the efforts of the FBI, IRS-CI, the Florida Department of Insurance Fraud, the Palm Beach County State Attorney's Office, and the Greater Palm Beach County Health Care Fraud Task Force for their outstanding work in this case. Mr. Ferrer also recognized the National Insurance Crime Bureau (NICB) for its collaboration and assistance in this investigation. The federal cases are being prosecuted by Assistant U.S. Attorney A. Marie Villafaña and the state cases are being prosecuted by the Palm Beach County State Attorney's Office.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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.
Miramar Resident Sentenced for Filing A False Tax ReturnRead 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 U.S. District Judge James I. Cohn sentenced Erica Jacovia Bryant, 33, of Miramar, to 27 months in prison, to be followed by three years of supervised release, and ordered her to pay $89,190.27 in restitution to the IRS. Bryant was convicted after a two day jury trial on charges of filing a false claim, in violation of Title 18, United States Code, Section 287.
According to the indictment and evidence introduced in court, Bryant filed a false 2011 tax return that fraudulently sought a $110,859.00 tax refund. Based upon this fraudulent return and the information contained therein, Bryant ultimately obtained a $100,653.22 tax refund from the IRS which was later utilized to purchase a 2013 Lincoln MKZ, which was later seized by the IRS for forfeiture.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being handled by Assistant U.S. Attorney Marc Anton.
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.
First Defendant Sentenced 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 U.S. District Judge Marcia G. Cooke sentenced Chouman Emily Syrilien, 25, of Lauderdale Lakes, to 34 months in prison, to be followed by three years of supervised release.
Syrilien previously 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 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.
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.
Co-defendant Angel Arcos, 23, of Pompano Beach, pled guilty on May 15, 2014, to one count conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349. Arcos’ sentencing is scheduled for September 3, 2014 at 2:00 p.m.
Change of plea hearings are scheduled on September 3, 2014, for Monique Smith, 31, of Pompano Beach, and Shantegra La’Shae Godfrey, 23, of Deerfield Beach.
Trial is scheduled on September 22, 2014, for Arrington Basil Segu, 28, of Miami.
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. Defendant Segu also unlawfully provided personal identifying information of numerous individuals to the co-conspirator.
Defendants 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.
Defendants 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. Defendants Alexander, Smith and Godfrey made retail purchases as well as cash advances in excess of $24,000, $12,000 and $8,200, respectively.
Defendant 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 thirty years in prison for the conspiracy charge, a maximum of ten 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.
Colombian Narcotics Kingpin Sentenced to 360 Months in PrisonRead 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, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that U.S. District Judge Patricia A. Seitz sentenced Diego Perez Henao, a/k/a “Diego Rastrojo,” 43, a Colombian national, to 360 months in prison. Perez Henao was also ordered to forfeit $1,000,000.00 to the United States.
Perez Henao had been indicted by a federal grand jury on February 8, 2011, and previously pled guilty on January 24, 2014, to a single count of conspiring with others to manufacture and distribute five or more kilograms of cocaine from 1993 until February 2011, knowing that the cocaine would be imported into the United States.
Perez Henao acknowledged that he was involved in the manufacture, investment or shipment of in excess of 81,100 kilograms of cocaine during the timeframe of his conspiracy. He further acknowledged that he controlled numerous armed workers in his organization and used both airplanes and semi-submersibles to ship the cocaine north from South America to points in Central America and Mexico – en route to its eventual destination of the United States.
Following Perez Henao’s indictment, the U.S. Department of State offered a reward of up to $5 million for information leading to his capture. Perez Henao was ultimately captured by Venezuelan authorities in Venezuela on June 3, 2012. The Venezuelan authorities sent Perez Henao to Colombia, which in turn extradited Perez Henao on August 28, 2013, to the United States to face the current charges.
“For over a decade, Perez Henao – one of the most powerful and prolific drug lords in recent history – controlled dozens of heavily-armed workers in his drug trafficking organization and oversaw the manufacture and distribution of over 80 tons of cocaine into the United States,” said U.S. Attorney Ferrer. “Perez Henao will now spend the next three decades of his life in prison. With this sentence, one of the largest cartel heads in Colombian history was brought to justice.”
DEA Special Agent in Charge Mark R. Trouville stated, “Diego Perez-Henao, one of the last leaders of the North Valley Cartel, was responsible for smuggling more than 80 tons of cocaine into the United States. He used violence and intimidation to line his greedy pockets at the expense of his own people and had no regard for those who would consume this addictive poison. Today’s sentencing is a reminder that there is no place to hide, the DEA along with our domestic and international law enforcement partners will continue to pursue and prosecute those who engage in drug trafficking into our borders.”
“Diego Perez-Henao was a notorious, international drug kingpin who for years profited from the shipment and sale of illegal drugs,” said Ken Sena, Acting Assistant Special Agent in Charge, FBI Miami. “His illicit career was brought to an end through close cooperation with our law enforcement partners.”
The indictment of Perez Henao is the result of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) led by DEA and FBI. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Mr. Ferrer commends the outstanding investigative efforts of DEA, FBI, the DEA Andean Region and their Colombian law enforcement partners. The case was prosecuted by Assistant U.S. Attorneys Adam Fels and Daren Grove.
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 South Florida Residents Charged in Conspiracy to Distribute Performance Enhancing Drugs to Underage High School and Professional AthletesRead the Press Release
In Separate Case, Three Miami-Dade County Residents Charged in Conspiracy to Distribute and Attempted Possession of Molly
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, announce that seven individuals have been charged with conspiring to distribute anabolic steroid testosterone to underage high school and professional athletes.
Charged in this investigation are Anthony Publio Bosch, 50, of Key Biscayne, Carlos Javier Acevedo, 35, of Miami, Yuri Sucart, 52, of Miami, Jorge Augustine Velazquez, a/k/a “Ugi,” 43, of Miami, Christopher Benjamin Engroba, 25, of Miami, Lazaro Daniel Collazo, a/k/a “Lazer” and “Laser,” 50, of Hialeah, and Juan Carlos Nuñez, 48, of Fort Lauderdale. The charges stem from an over 21-month-long investigation by DEA, which focused on the illegal distribution of testosterone by the charged defendants in Miami-Dade County, and elsewhere. Specifically, the investigation focused on the operators of several anti-aging clinics in Miami, recruiters of these clinics, and a black market distributor of testosterone. These anti-aging clinics were incorporated under several different corporate names: Biogenesis of America, LLC; Biokem, LLC; Revive Miami, LLC; and others by the same group of people who occasionally worked together from 2008 through 2012.
In addition, the investigation also uncovered a separate conspiracy which involved Acevedo and the alleged illegal distribution of 3,4-Methylenedioxy-N-Methylcathinone Hydrochloride, a Schedule I controlled substance. The controlled substance 3,4-Methylenedioxy-N-Methylcathinone Hydrochloride is commonly referred to as “molly.” Charged in a separate case with conspiring to distribute molly are Giovanny Brenes, 35, and Jorge Canela, Jr., 25; and charged with attempted possession of molly is Carlos Luis Ruiz, 34, all of Miami.
“The defendants charged today are alleged to have provided easy access to dangerous concoctions of performance enhancing drugs (PEDs) to impressionable high school kids and professional athletes on the promise of playing better, recovering faster from injury and having more energy,” said U.S. Attorney Wifredo A. Ferrer. “Bosch and his network of recruiters and black market suppliers ignored the serious health risks posed to their so-called “patients,” all for a profit. Simply put, doping children is unacceptable – it is not only wrong and illegal, but dangerous. Cheating doesn’t pay and individuals like Bosch and his co-defendants, who distributed PEDs to athletes and, more importantly, to our children, will be held accountable for their actions.”
“Anthony Bosch, the self-acclaimed “Best Fake Doctor Ever” has turned in his lab coat for an orange jumpsuit,” said DEA Special Agent in Charge Mark R. Trouville. “Mr. Bosch’s alleged actions were a danger to the minors and adults who consumed his concoctions. I’m so proud of the men and women of the DEA and our law enforcement partners who conducted this investigation, which focused on greedy drug traffickers, who exploited athletes of all ages for their personal gain.”
The cases announced today include:
1. United States v. Anthony Publio Bosch, Case No. 14-20555-CR-Gayles
Bosch was charged by information with conspiracy to distribute a Schedule III controlled substance, that is, the anabolic steroid testosterone, in violation of Title 21, United States Code, Section 846. The conspiracy charge against Bosch alleges that beginning in at least October 2008 through December 2012, Bosch operated various anti-aging clinics in Miami. Through these anti-aging clinics, the defendant conspired with recruiters of high school and professional athletes, as well as a black market distributor of testosterone, to distribute testosterone in Miami-Dade County, and elsewhere. Many of Bosch’s clients thought he was a doctor. However, Bosch did not have a license to practice medicine in the State of Florida, or anywhere else, nor did he have any kind of license or authorization from the DEA to dispense or prescribe Schedule III drugs, like testosterone. Bosch is expected to be arraigned today.
If convicted, Bosch faces a maximum possible statutory sentence of 10 years in prison.
2. United States v. Carlos Javier Acevedo, Case No. 14-20556-CR-Gayles
Acevedo was charged by information with conspiracy to distribute a Schedule III controlled substance, that is, the anabolic steroid testosterone, in violation of Title 21, United States Code, Section 846; and with conspiracy to distribute molly, in violation of Title 21, United States Code, Section 846. Acevedo is expected to be arraigned today.
If convicted, Acevedo faces a maximum possible statutory sentence of 10 years in prison for the conspiracy to distribute testosterone count and 20 years in prison on the conspiracy to distribute molly count.
3. United States v. Yuri Sucart, et al., Case No. 14-20550-CR-Altonaga
Yuri Sucart, Jorge Augustine Velazquez, a/k/a “Ugi,” Christopher Benjamin Engroba, Lazaro Daniel Collazo, a/k/a “Lazer” and “Laser,” and Juan Carlos Nuñez, were charged in an eight count indictment for their participation in a conspiracy to distribute a Schedule III controlled substance, that is, the anabolic steroid testosterone, in violation of Title 21, United States Code, Section 846. In addition, Sucart has been charged with five counts of distribution of testosterone; Engroba has been charged with one count of distribution of testosterone; and Velazquez has been charged with six counts of distribution of testosterone, all in violation of Title 21, United States Code, Section 841(a)(1) and Title 18, United States Code, Section 2. Velazquez was also charged with one count of obstruction of justice, in violation of Title 18, United States Code, Sections 1503 and 2. The defendants are expected to be arraigned today.
If convicted, the defendants face a maximum possible statutory sentence of 10 years in prison for the conspiracy to distribute testosterone count. As to the substantive distribution of steroids counts, Sucart, Velazquez and Engroba face a maximum possible statutory sentence of 10 years in prison as to each count. Velazquez faces a maximum possible statutory sentence of 10 years in prison on the obstruction of justice count.
4. United States v. Giovanny Brenes, et. al., Case No. 14-20551-CR-Moreno
Giovanny Brenes and Jorge Canela, Jr. were charged in a four count indictment for their participation in a conspiracy to distribute molly, in violation of Title 21, United States Code, Section 846. In addition, Brenes has been charged with one count of distribution of molly, in violation of Title 21, United States Code, Section 841(a)(1); Canela, Jr. has been charged with one count of possession with intent to distribute molly, in violation of Title 21, United States Code, Section 841(a)(1); and Carlos Luis Ruiz was charged with one count of attempted possession of a controlled substance, in violation of Title 21, United States Code, Section 844(a) and Title 21, United States Code, Section 846.
If convicted, Brenes and Canela, Jr. face a maximum possible statutory sentence of 20 years in prison for each of the following counts: conspiracy to distribute; distribution and possession with intent to distribute. Ruiz faces a maximum possible statutory sentence of one year in prison on the attempted possession of a controlled substance count.
Mr. Ferrer commended the investigative efforts of the DEA Miami Tactical Diversion Squad, which consists of the DEA, Miami-Dade Police Department, Hollywood Police Department, Fort Lauderdale Police Department and the City of Miami Police Department. These cases are being prosecuted by Assistant U.S. Attorneys Michael P. Sullivan and Sharad A. Motiani.
An information and indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
Attachments:
Acevedo, Carlos Javier - Information (PDF)
Bosch, Anthony - Information (PDF)
Brenes, Giovanny et al - Indictment (PDF)
Sucart, Yuri et al - Indictment (PDF)A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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 Seafood Firm Pleads Guilty and Is Sentenced for Imported Seafood Labelling FraudRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Tracy Dunn, Special Agent in Charge, National Oceanic and Atmospheric Administration (NOAA), Office of Law Enforcement, announce that the Miami-based seafood company True Nature Seafood, LLC (TNS), was sentenced in Miami on a one count information, which count charged the defendant with knowingly making and submitting a false record, account, or label for fish which had been or was intended to be imported, exported, transported, sold, purchased, in violation of the Lacey Act, Title 16, United States Code, Sections 3372(d)(1) and (2), 3373(d)(3)(A), and Title 18, United States Code, Section 2.
U.S. District Judge Ursula Ungaro, who accepted the guilty plea of TNS on Friday, August 1, 2014, also imposed the sentence in the case. TNS was sentenced to pay a fine of $500,000, community service payments of $500,000, placed on probation for a term of five years, ordered to implement an Environmental Compliance Plan as a special condition of probation, and ordered to forfeit proceeds in the sale of approximately 43,150.5 pounds of toothfish (Dissostichus Spp.) valued at $400,862.88, previously seized by NOAA.
According to a joint factual statement executed by the parties, statements in court and case-related records, TNS was engaged in the wholesale purchase, importation, processing, packaging, sale, and distribution of seafood products, in interstate and foreign commerce. These activities included transactions involving seafood product, which was imported, re-labelled, and transshipped from Miami to both domestic and foreign customers by and at the direction of the officers and agents of TNS, acting within the scope of their employment and for the benefit of TNS.
TNS admitted in court that in August 2010, at Miami International Airport, it imported approximately 11,192 pounds of seafood product by commercial air carrier from Santiago, Chile. Documents accompanying the shipment and filed with U.S. authorities, described the shipment as processed Steelhead Trout, with a wholesale value of $62,233.86. After clearing U.S. Customs, the shipment was transferred to a cold storage facility in Miami. On August 20, 26, and 27, 2010, an employee of TNS acting within the scope of employment and for the benefit of the defendant, transmitted instructions by email to a subsidiary of TNS, directing that the August 2010 consignment be re-labelled as Salmon. Thereafter, TNS caused the seafood product to be shipped to customers in both the United States and Canada, for which it subsequently received payments from its interstate and foreign customers in the approximate amount of $77,536.80.
U.S. Attorney Wifredo A. Ferrer stated, “Imports have become a major source for the fish, shrimp, and other seafood products enjoyed by many Americans. False labelling of these products undermines efforts to ensure that the seafood has been legally harvested, properly handled, and is otherwise safe for distribution to consumers. The U.S. Attorney’s Office strongly supports the efforts of NOAA Fisheries and other federal agencies in insuring the public is not misled, and that all regulatory requirements are met.”
“Combating seafood fraud is a high priority for NOAA Fisheries,” said Eileen Sobeck, Assistant Administrator for NOAA Fisheries. “This fraudulent activity had a direct financial impact on honest fishermen. Our agents and officers will continue to ensure that legitimately harvested and marketed seafood is not undercut by fraudulent products thus protecting fish stocks, the honest fisherman, and consumers.”
Mr. Ferrer commended the investigative efforts of NOAA Office of Law Enforcement and the efforts of U.S. Immigration and Customs Enforcement’s, Homeland Security Investigations (ICE-HSI), Miami Field Office which contributed to bringing the investigation to a successful conclusion. The case was prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald.
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.
Policeman Indicted for Aiding and Abetting A Conspiracy to Possess with Intent to Distribute Marijuana and for ExtortionRead 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 Filed Office, and J.D. Patterson, Director, Miami-Dade Police Department (MDPD), announce the indictment of Roderick Silva, 45, of Miami, a police officer who formerly served as a detective assigned to the MDPD Narcotics Bureau. The indictment charges Silva with one count of aiding and abetting a conspiracy to possess with intent to distribute marijuana in violation of Title 21, United States Code, Section 846, and one of count of extortion in violation of Title 18, United States Code, Section 1951. .
The conspiracy charge against Officer Silva alleges that he aided and abetted a group of persons who were illegally growing hydroponic marijuana in numerous homes that they owned, rented, or otherwise controlled, in the south west Miami-Dade County area. The conspiracy charge further identified this group of persons as members of the Santiesteban family, and their friends and associates. The Santiesteban family members, and a number of their friends and associates, have already been convicted in a federal prosecution brought against them in 2012 for conspiracy to possess with intent to distribute over 1000 marijuana plants. They pled guilty to that charge in 2013, and are serving long prison sentences.
The conspiracy charge also alleges that Officer Silva aided and abetted the Santiesteban family members, and their friends and associates, in their marijuana growing activities by providing them with confidential MDPD information about when MDPD narcotics detectives were investigating them, and when they might have their marijuana grow houses searched, and their marijuana plants seized; and by providing advice to the Santiestebans and their friends and associates about how to avoid, deflect, frustrate, and obstruct those MDPD investigations and by providing confidential MDPD information about suspected grow houses operated by other marijuana growers, so the Santiestebans and their friends and associates could rob those grow houses of their marijuana plants.
The extortion count of the indictment charges that Officer Silva obtained money from Santiesteban family members, “under color of official right.” It specifies that Officer Silva received $1500 cash on January 5, 2011, in Miami-Dade County for “maintaining his silence and not disclosing to any law enforcement authorities all that he knew about the illegal, criminal activities of the Santiesteban family members.”
U.S. Attorney Wifredo A. Ferrer stated, “We are especially saddened when a public servant misuses his position of trust to engage in criminal conduct. Mr. Silva’s criminal conduct not only undermined the trust of this community, but also undermined the trust of the officers who served by his side. Today’s indictment sends a message to all public officials who commit crime that they are not above the law and that they will be brought to justice.”
“Mr. Silva’s actions undermines the public’s trust in law enforcement, as well as betrays the officers and agents who worked by his side” said Special Agent in Charge George L. Piro of the FBI’s Miami Division. “Silva must now face the consequences of his actions in large part due to the dedication and commitment of the Miami Dade Police Department and the FBI.”
Director J.D. Patterson stated, “The community’s trust is vital to us and make no mistake, the Miami-Dade Police Department remains committed in seeking out, identifying, and ridding itself of individuals who violate that trust. This violation of trust tarnishes the badge of every hard-working officer who risks his/her life daily to protect this community. We appreciate the partnership and support of our federal partners during this sensitive investigation.”
If convicted, Officer Silva faces a minimum mandatory sentence of 10 years in prison up to life in prison on the aiding and abetting a conspiracy count and up to 20 years in prison on the extortion count.
An indictment is only an accusation and each defendant is presumed innocent unless and until proven guilty.
Mr. Ferrer commended the investigative efforts of FBI and MDPD. This case is being prosecuted by Assistant U.S. Attorneys Michael P. Sullivan and Andy Camacho.
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 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 Jacqueline Nicole Lee Warrick, 26, of Miami, and Tracy Delva, 27, of Deerfield Beach, pled guilty today for their participation 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.
Specifically, Warrick and Delva each pled guilty today 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. Sentencing for both defendants is scheduled for October 15, 2014, before U.S. District Court Judge Marcia G. Cooke.
Co-defendant Chouman Emily Syrilien, 25, of Lauderdale Lakes, pled guilty on May 19, 2014, 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. Syrilien’s sentencing is scheduled for August 6, 2014, at 1:30 p.m.
Co-defendant Carlos Antonio Alexander, 24, of Orlando, pled guilty on July 16, 2014 to one count of using an unauthorized 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, at 10:00 a.m.
Co-defendant Angel Arcos, 23, of Pompano Beach, pled guilty on May 15, 2014 to one count conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349. Arcos’ sentencing is scheduled for September 3, 2014, at 2:00 p.m.
Change of plea hearings are scheduled on September 3, 2014 for Monique Smith, 31, of Pompano Beach, and Shantegra La’Shae Godfrey, 23, of Deerfield Beach.
Trial is scheduled on September 22, 2014 for Arrington Basil Segu, 28, of Miami.
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. Defendant Segu also unlawfully provided personal identifying information of numerous individuals to the co-conspirator.
Defendants 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.
Defendants 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. Defendants Alexander, Smith and Godfrey each made both retail purchases as well as cash advances in excess of $24,000, $12,000 and $8,200, respectively.
Defendant 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 thirty years in prison for the conspiracy charge, a maximum of ten 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.
Director of Nursing Pleads Guilty in Miami for Role in $7 Million Health Care Fraud SchemeRead the Press Release
A former director of nursing pleaded guilty yesterday in connection with a health care fraud scheme involving Anna Nursing Services Corp. (Anna Nursing), a defunct home health care company in Miami. 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 Ryan Lynch of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office made the announcement.
Armando Buchillon, 42, of Hialeah, Florida, pleaded guilty before U.S. District Judge Joan A. Lenard in the Southern District of Florida to one count of conspiracy to commit health care fraud. Sentencing is scheduled for Oct. 6, 2014, before Judge Lenard.
According to court documents, Buchillon was a director of nursing at Anna Nursing, a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries. The owners and operators of Anna Nursing agreed to and actually did operate Anna Nursing for the purpose of billing the Medicare Program for, among other things, expensive physical therapy and home health care services that were not medically necessary and/or were not provided.
As part of the fraudulent scheme, Buchillon and his co-conspirators regularly falsified patient documentation in order 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 or receive such services. In addition, Buchillon paid kickbacks and bribes to patient recruiters, in return for the recruiters providing patients to Anna Nursing for home health care and therapy services that were medically unnecessary and/or were not provided. Buchillon also worked as a patient recruiter for Anna Nursing and was paid kickbacks and bribes by the owner of Anna Nursing. Buchillon and his co-conspirators caused the submission of false and fraudulent claims to Medicare on behalf of these beneficiaries.
From approximately October 2010 through approximately April 2013, Anna Nursing was paid by Medicare approximately $7 million for fraudulent claims for home health care services that were medically unnecessary and/or were not provided.
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.
Return Preparer Pleads Guilty in Identity Theft Tax Refund Scheme Involving Personal Identification Information of Miami-Dade County Public School StudentsRead 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 Donald Claude, 34, of Miramar, pled guilty today 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(a)(1). Sentencing is scheduled for October 24, 2014. At sentencing, Claude faces up to 20 years in prison for wire fraud, and a mandatory term of two years in prison, consecutive to any other term in prison, for aggravated identity theft.
According to court documents, Claude was the Chief Executive Officer of J&D Tax Services, LLC. Claude obtained an Electronic Filing Identification Number (EFIN) for J&D Tax Services, LLC which permitted Claude and co-defendant James Jean-Baptiste to file tax returns electronically in the names of other individuals. Claude also obtained a Preparer Tax Identification Number (PTIN) as a tax preparer that permitted him to identify himself as the preparer on tax returns electronically filed in the names of other individuals.
Claude and Jean-Baptiste obtained the personal identification information (PIl) of students from an employee of Miami-Dade County Public Schools. Claude and Jean-Baptiste used the students’ stolen identities to file false and fraudulent tax returns with the IRS to fraudulently obtain tax refunds for their personal use and benefit. Claude and his co-conspirators caused over $200,000 in false and fraudulent tax refund claims to be submitted to the IRS from 2009 through 2011 through his EFIN and PTIN.
James Jean-Baptiste was charged with one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, seven counts of wire fraud, in violation of Title 18, United States Code, Section 1343, and seven counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). Jean-Baptiste remains at large.
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. 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.
Physician Assistant and Certified Nursing Assistant Convicted in $200 Million Medicare Fraud SchemeRead the Press Release
A federal jury in Miami convicted a physician assistant and a certified nursing assistant, both South Florida residents, for their participation in a Medicare fraud scheme involving approximately $200 million in fraudulent billings by American Therapeutic Corporation (ATC), a mental health care company headquartered in Miami.
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 Health and Human Services Office of Inspector General (HHS-OIG) region including all of Florida made the announcement.
Roger Bergman, 65, a physician assistant licensed in Florida, and Rodolfo Santaya, 55, a certified nursing assistant licensed in Florida, were each charged in an indictment on Jan. 28, 2014. Yesterday, Bergman was found guilty of conspiracy to commit health care fraud and wire fraud and conspiracy to make false statements relating to health care matters. Santaya was found guilty of conspiracy to commit health care fraud and wire fraud, conspiracy to pay and receive bribes and kickbacks, and two counts of receiving bribes and kickbacks in connection with a federal health care benefit program.
ATC, Medlink Professional Management Group Inc. – a management company associated with ATC – and multiple individuals, including ATC’s owners, have all previously pleaded guilty or have been convicted at trial in connection with the fraud scheme. ATC operated purported partial hospitalization programs (PHPs) in seven locations throughout Orlando and south Florida. A PHP is a form of intensive treatment for severe mental illness.
According to evidence presented at trial, Bergman, Santaya and their co-conspirators caused the submission of fraudulent claims to Medicare through ATC seeking reimbursement for mental health services that were not provided or were provided to patients who were not eligible to receive the services. Bergman, who worked at ATC’s Miami and Homestead, Florida, offices, created, falsified and signed fraudulent medical documentation to make it appear to Medicare that ATC’s patients qualified for, and received, PHP services, even though they did not. Santaya received hundreds of thousands of dollars in illegal kickback payments in exchange for delivering ineligible Medicare beneficiaries to ATC’s Homestead office.
Throughout the course of the conspiracy, ATC and its employees paid tens of millions of dollars in kickbacks in exchange for the names and identification numbers of Medicare beneficiaries so that ATC could fraudulently bill Medicare for PHP services that it never provided or that it purportedly provided to beneficiaries who were not eligible to receive PHP treatment.
The case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. The case is being prosecuted by Assistant Chief Robert A. Zink and Trial Attorneys Nicholas E. Surmacz and Kelly Graves of the Criminal Division.
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 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.
Palm Beach Resident Sentenced in Identity Theft Tax Refund Fraud SchemeRead 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 United States District Judge Jose E. Martinez sentenced Tia Lashonda Miller, 39, of West Palm Beach, to 70 months imprisonment, to be followed by 2 years of supervised release. .
Miller previously pled guilty to one count of unlawful possession of more than fifteen 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, Miller was found in possession of notebooks containing stolen personal identifying information (PII) for 726 persons (including names, dates of birth and social security numbers), and 20 debit cards, eighteen of which were in the names of persons also found in the notebooks. The IRS determined that approximately 59 of the names and accompanying information were used to file fraudulent tax returns. During a court-authorized search of Miller’s home, agents found additional names and identifying information of identity theft victims, and some letters from the IRS addressed in other persons’ names. Miller admitted that she went to houses, collected mail and debit cards, and gave the envelopes and cards to two other individuals, whom Miller knew were filing fraudulent tax returns using the stolen PII.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Martin County Sheriff’s Office. The case was 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.
Miami-Dade County Resident Sentenced in Stolen Identity Tax Refund Scheme Involving Thousands of Individuals’ Personal Identifying InformationRead 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 Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), announce that Paul Evans Auguste, 30, of Miami, was sentenced today to 61 months in prison, to be followed by three years of supervised release for his participation in a stolen identity tax refund scheme.
Auguste previously pled guilty to one count of access device fraud, in violation of Title 18, United States Code, Section 1029(b)(2), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to court documents, beginning on approximately September 30, 2013, Auguste began advertising to friends and acquaintances that he had personal identifying information (PII) for sale, that is, stolen names, dates of birth, and social security numbers belonging to real individuals. On December 9, 2013, Auguste sold PII belonging to 200 different individuals to an undercover law enforcement officer for $2,000. The PII sold by the defendant consisted of patient information sheets from rehabilitation center in Philadelphia.
Court documents also state that on January 6, 2014, the defendant sold an additional 60 pieces of PII to an undercover law enforcement officer for $500. During that exchange, the defendant stated that he was opening a “tax” office and needed money; the defendant reiterated that he obtained the PII from Philadelphia and offered to sell another 200 pieces of PII for $1,000.
According to court documents, on January 28, 2014, law enforcement executed a search warrant of the defendant’s residence and discovered an additional 2,164 pieces of PII (702 of which were in his car, which the defendant was driving on his way to another controlled sale to law enforcement, and the remaining 1,462 of which were found in the defendant’s room).
Mr. Ferrer commended the investigative efforts of IRS-CI and ICE-HSI. The case is being prosecuted by Assistant U.S. Attorney Francisco 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.
Former Miami-Dade Department of Public Works Employee Sentenced for Accepting $150,000 in Bribes from ContractorRead 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 Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that today United States District Judge Cecilia M. Altonaga sentenced Garfield Perry, 67, of North Miami Beach, to 60 months imprisonment, to be followed by one year of supervised release. Perry was also ordered to pay a fine of $12,500. Perry previously pled guilty to a one-count information charging him with conspiring to accept bribes in connection with programs receiving federal funds and to commit extortion, all in violation of Title 18, United States Code, Section 371.
According to a previously filed stipulation of facts, from at least 2002 through 2009, Perry was the Roadway Lighting Coordinator for the Department of Public Works in Miami-Dade County. In this capacity, Perry was responsible for, among other things, overseeing the maintenance of more than 22,000 street lights in the county’s roadway system. The Information charges that from 2006 through October 2009, Perry accepted bribe payments from a Manufacturer’s Representative totaling approximately $150,000. Perry regularly directed the Manufacturer’s Representative to make the bribe payments by paying down debts owed by Perry, including payments on two home mortgages, one car loan, two home insurance policies, two car insurance policies, and eight credit cards. Perry accepted as bribe payments from the Manufacturer’s Representative, cruise vacations, domestic and international airline tickets, payments for hotels and theater tickets. Perry regularly directed the Manufacturer’s Representative to make bribe payments by issuing checks payable to third parties, and, after the checks were cashed, determined the manner in which the proceeds were to be split. Perry falsely certified to Miami-Dade County that he was not engaged in any outside employment and did not receive any gratuities. In return for the bribe payments, Perry helped to ensure that lighting products used in Public Works’ projects were represented by the Manufacturer’s Representative.
Mr. Ferrer commended the investigative efforts of the FBI and IRS-CI. The case was prosecuted by Assistant U.S. Attorney 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.
Four Charged in NFL-Related Securities Fraud Scheme Targeting Senior CitizensRead 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, announced that Peter D. Kirschner, 49, of Delray Beach, Stuart R. Rubens, 61, of North Miami, Dean R. Baker, 34, of Coral Springs, and Bret A. Grove, 35, of Delray Beach, were charged with conspiracy to commit mail fraud and substantive mail fraud. The four men are charged for allegedly operating call rooms targeting senior citizens and tricking them into purchasing $2.4 million in stock. U.S. Attorney Wifredo A. Ferrer stated, “Securities fraud jeopardizes the well-being of our citizens. The defendants in this case are alleged to have raised approximately $2.4 million by targeting the elderly and representing that they had technology that was about to be used by the NFL. In truth, there was no such arrangement. Today’s charges are the first step in holding them accountable for robbing these elderly folks of their hard-earned savings for their own personal gain.”
“Those charged today materially misrepresented investments to a vulnerable part of our population,” said George L. Piro, Special Agent in Charge of the FBI’s Miami Field Office. “The FBI will continue to prioritize investigations of investment fraud perpetrators who target the elderly.”
According to the indictment and related Securities and Exchange Commission (SEC) civil complaints, the defendants pressured seniors and other investors into purchasing stock in Thought Development Inc. (TDI), a Miami Beach-based company that claimed its signature invention generated a green laser line on the football field visible in the stadium to players, fans as well as on television. TDI represented that use of its technology would decrease the time used by officials to determine first downs, freeing up broadcast time that could then be sold to television advertisers. The defendants raised approximately $2.4 million through the use of call rooms that targeted more than 200 investors throughout the nation, who were told that an initial public offering (IPO) in TDI was imminent and that their money would be safe and used to develop the ground-breaking technology. Instead, the indictment alleges that the IPO was not forthcoming as promised, and at least 50 percent of the offering proceeds were retained by the defendants or paid to sales agents through undisclosed, exorbitant commissions and fees. The defendants also lured investors by misrepresenting that TDI’s technology was about to be used by the NFL. One investor even made a second $75,000 investment on top of an initial $2,500 investment after being told that NFL Commissioner Roger Goodell purchased TDI’s technology for use in the 2013 Super Bowl. In fact, there was no such arrangement. The defendants also neglected to tell investors the TDI laser technology posed a potential risk of blindness to players on the football field.
The SEC recently announced similar civil charges against Baker and Grove, filed today in federal district court in Miami. This brings to six the number of individuals charged criminally with this scheme. The U.S. Attorney for the Central District of California charged Daniel Baker and Demosthenes Dritsas with mail fraud stemming from this investigation, both of whom recently pled guilty.
Mr. Ferrer commended the investigative efforts of the FBI and the SEC. This case is being prosecuted by Assistant U.S. Attorney Roger Cruz.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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.
Final Defendant Sentenced in Identity Theft Scheme Involving Miami-Dade County Public Schools Students’ Personal Identifying InformationRead 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 Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that defendant Nydia Nelson, 30, of Miami, was sentenced today before U.S. District Judge Cecilia M. Altonaga to 84 months in prison, to be followed by three years of supervised release, and was ordered to pay $87,736 in restitution.
Co-defendants Pamela Rhim-Grant, 40, and Eugene Moss, 33, both of Miami, were sentenced on July 9, 2014, before U.S. District Judge Joan A. Lenard. Rhim-Grant was sentenced to 81 months in prison, to be followed by two years of supervised release. Moss was sentenced to 70 months in prison, to be followed by two years of supervised release. Rhim-Grant and Moss were each also ordered to pay restitution in the amount of $87,736.
Each of the defendants previously pled guilty to one count of computer fraud, in violation of Title 18, United States Code, Section 1030, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to court documents, Rhim-Grant was a food service manager at Horace Mann Middle School and an employee of Miami-Dade Public Schools. In connection with her position, Rhim-Grant had network computer access to the Miami-Dade Public Schools’ Integrated Student Information System (ISIS) database through which Rhim-Grant could access information regarding current and former Miami-Dade County Public Schools students' personal identifying information (PII), including names, dates of birth, and social security numbers.
Court documents also state that from approximately October 2012 through January 21, 2014, Rhim-Grant and co-conspirators Moss and Nelson agreed and conspired to access the network computer, with the intent to commit stolen identity fraud, for the purpose of obtaining student PII in furtherance of that fraud. Moss and Nelson placed orders for student PII with Rhim-Grant. Once the order was received, Rhim-Grant accessed the network computer and printed student information sheets containing the PII from the ISIS database and delivered them to either Moss or Nelson at a prearranged location. Once in possession, Moss and Nelson used the student PII to file income tax returns seeking fraudulent refunds. The fraudulent refunds were directed either to prepaid debit cards or accounts controlled by Nelson.
According to court documents, Rhim-Grant was paid $10 per student’s PII in either cash or gift cards. According to Rhim-Grant, approximately 400 students’ PII were fraudulently accessed on the network computer and delivered to Moss or Nelson pursuant to the scheme.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, and the Miami-Dade Schools Police Department. 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.
Palm Beach County Brothers and Company Sentenced in $4 Million “Cash Back” Food Stamp Fraud SchemeRead 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, Karen Citizen-Wilcox, Special Agent in Charge, U.S. Department of Agriculture, Office of Inspector General (USDA-OIG), Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Ryan P. Lynch, Acting Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO), announce that Ali Jaber, 52, and his brother, Hadi Jaber, 42, both of Greenacres, and Jaber Enterprises, Inc., doing business as Fajita’s Meat and Fish Market (Fajita’s), located in Palm Springs, were sentenced today before U.S. Judge Donald M. Middlebrooks. Ali and Habi Jaber were each sentenced to 70 months in prison, to be followed by three years of supervised release. Both defendants agreed to pay $4 million, jointly and severally, as restitution to the United States Department of Agriculture. The corporation, Jaber Enterprises, Inc., was sentenced to five years of organizational probation and $4 million in restitution.
All three defendants previously pled guilty to one count of conspiracy, in violation of Title 18, United States Code, Section 371. Defendants Ali and Hadi Jaber also each pled guilty to one count of bankruptcy fraud, in violation of Title 18, United States Code, Section 152, and one count of engaging in a monetary transaction in criminally derived property, in violation of Title 18, United States Code, Section 1957.
According to court documents, from October 2006 through their arrest in December 2013, Ali and Hadi Jaber operated a grocery store known as Fajita's. Fajita’s was an authorized retailer for the Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program. SNAP is a program that affords low and middle income households the opportunity to achieve a more nutritious diet by increasing their ability to purchase food. Eligible foods include any food or food product intended to be prepared and eaten at home, such as breads and cereals, fruits and vegetables, meat, fish and poultry, and dairy products. USDA rules specifically prohibit the exchange of SNAP benefits for cash. SNAP recipients collect their benefits through Electronic Benefit Transfer (EBT) cards which operate like debit cards. On a monthly basis, each EBT card is credited with a dollar amount to be used for the purchase of eligible food items.
Between October 2006, when they purchased Fajita’s, and their arrest in December 2013, Ali and Hadi Jaber unlawfully provided certain SNAP recipients cash in exchange for their SNAP benefits. The defendants charged a substantial fee to the SNAP recipient’s EBT card for the cash exchange. In some cases, the fee was as much as approximately 30% to 50% of the amount of the SNAP benefits redeemed.
From January 1, 2009 through April 30, 2013, over $6 million in SNAP proceeds were redeemed by Fajita's. The defendants admitted that between $2.8 and $6 million of the proceeds were fraudulent.
Defendants Ali and Hadi Jaber admitted to withdrawing over $1.8 million in cash from the scheme. In addition, Ali Jaber admitted wiring approximately $179,000 in fraud proceeds to an account in his name in Beirut, Lebanon, and over $400,000 in fraudulent proceeds was wired to various entities and individuals in Lebanon and Canada.
Hadi and Ali Jaber also admitted that approximately $220,000 from the Jaber Enterprises, Inc. accounts was used to purchase a single family home in Greenacres. Though titled in the name of Jaber Enterprises, Inc., the home was the residence of Hadi Jaber and his family.
Ali and Hadi Jaber also admitted to bankruptcy fraud. Ali Jaber admitted that he did not disclose his Beirut account in his bankruptcy filings, and defendant Hadi Jaber admitted he did not disclose his interest in Fajita’s in his filings.
Previously, defendant Daniel Velazquez, a/k/a Diego Antonio Simone, 33, of Greenacres, pled guilty to one count of theft of government funds, in violation of Title 18, United States Code, Section 641, and was sentenced to five months in prison. Velazquez was a long-time clerk at Fajita’s who participated in the fraud.
Mr. Ferrer commended the investigative efforts of USDA-OIG, IRS-CI, HHS-OIG and PBSO. This case was prosecuted by Assistant U.S. Attorneys Carolyn Bell and Adam McMichael.
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 Administrator of Miami Home Health Companies Pleads Guilty for Role in $74 Million Health Care Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Leslie R. Caldwell, Assistant Attorney General, Criminal Division Department of Justice, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation, Miami Field Office and Ryan Lynch, Acting Special Agent in Charge, U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami announced that Elsa Ruiz, 45, of Miami pled guilty yesterday, for her participation in a $74 million Medicare fraud scheme, before U.S. District Judge Marcia G. Cooke to one count of conspiracy to commit health care fraud. Her sentencing is scheduled for October 8, 2014.
According to court documents, Ruiz was an owner of Professional Home Care Solutions Inc. (Professional Home Care) and an administrator of LTC Professional Consultants Inc. (LTC), Miami home health care agencies that purported to provide home health and therapy services to Medicare beneficiaries. Ruiz and her co-conspirators operated LTC and Professional Home Care for the purpose of billing the Medicare program for, among other things, expensive physical therapy and home health care services that were not medically necessary and/or were not provided.
Also according to court documents, Ruiz ran and oversaw the schemes operating out of LTC and Professional Home Care. Ruiz and co-conspirators paid kickbacks and bribes to patient recruiters, who provided patients to LTC and Professional Home Care, as well as prescriptions, plans of care (POCs) and certifications for medically unnecessary therapy and home health services for Medicare beneficiaries. Ruiz and her co-conspirators used these prescriptions, POCs and medical certifications to fraudulently bill the Medicare program for unnecessary home health care and therapy services.
From approximately January 2006 to June 2012, LTC and Professional Home Care submitted approximately $74 million in claims for home health care services that were not medically necessary and/or not provided, and Medicare paid approximately $45 million on those claims.
Mr. Ferrer commended the outstanding investigative efforts of the FBI and HHS-OIG. The case is being prosecuted by Assistant Chief Joseph S. Beemsterboer of the Department of Justice’s 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.
Individual Who Provided False Statements Regarding Attempted Support of Extremist Group Pleads Guilty and Is SentencedRead 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 the conviction and sentencing of Soloman Zaid Alkadhi, 24, of Plantation. On April 24, 2014, Alkadhi pled guilty to a one count information charging him with providing a false statement to Special Agents of the FBI in a matter involving international terrorism, in violation of Title 18, United States Code, Section 1001(a)(2). Alkadhi was sentenced yesterday by U.S. District Judge Joan A. Lenard to 60 months in prison, followed by three years of supervised release.
In October 2009, Alkadhi denied to FBI agents that he planned to travel to Somalia to join and provide assistance to al-Shabaab, a designated foreign terrorist organization. According to court documents, Alkadhi planned to travel to Somalia to join and provide assistance to the extremist group. Alkadhi acknowledged that after conducting online research into al-Shabaab and its efforts to wage jihad, he traveled from Florida to Kenya and then attempted to cross the Kenyan-Somalian border in an effort to join and provide assistance to that organization.
Mr. Ferrer commended the outstanding investigative efforts of the FBI. The case was prosecuted by Assistant U.S. Attorney Adam Fels, with assistance of Trial Attorney Jerome Teresinski of the United States Department of Justice, National Security Division, Counterterrorism 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.
Broward County Sheriff’s Deputy Sentenced in Connection with Rothstein InvestigationRead 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 Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), announce that Jeff Alan Poole, 47, of Weston, was sentenced today in Ft. Lauderdale by U.S. District Judge William P. Dimitrouleas to one year and one day in prison, followed by three years of supervised release. Poole was also ordered to pay $22,071.02 in restitution.
On May 8, 2014, Poole pled guilty to conspiracy to violate civil rights, in violation of Title 18, United States Code, Section 241. At the time of the offense, the defendant was employed by BSO as a detective.
When he entered his guilty plea, the defendant admitted that he utilized his position within BSO unlawfully to arrest the ex-wife of an attorney who was engaged in a child custody dispute with her at the request of BSO Lt. David Benjamin. Poole also agreed at his guilty plea that this request emanated from Scott W. Rothstein, a former attorney who is now serving a 50-year sentence in connection with a Ponzi scheme which he had operated. On July 21, 2014, Benjamin was sentenced to a prison term of five years in connection with the Rothstein case.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI and BSO. 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.
Former Sweetwater Police Detective Sentenced for Role in Credit Card Fraud and Aggravated Identity Theft 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 the sentencing of William Garcia, 39, of Miami, a former Sweetwater Police Department detective, for his role in a credit card fraud and aggravated identity theft scheme.
On April 21, 2014, a jury in federal court found Garcia guilty of twelve counts of the fifteen count indictment. Specifically, the defendant was found guilty of: conspiring to produce, use, or traffic in one or more counterfeit access devices, in violation of Title 18, United States Code, Section 371; use of a counterfeit access device, in violation of Title 18, United States Code, Section 1029(a)(1); and ten counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). United States District Judge Federico A. Moreno sentenced Garcia to a term of 112 months imprisonment, to be followed by one year of supervised release. Garcia was also ordered to pay approximately $13,000.00 in restitution.
During trial, the United States presented evidence documenting Garcia’s improper friendship with a former confidential source. The confidential source, a convicted felon, would provide Garcia and another former South Miami Detective, Richard Munoz, with counterfeit credit cards. During the trial, the source, Munoz, and others testified about Garcia’s possession and use of those cards during shopping trips to the Dolphin and Florida City shopping malls in late 2010 and early 2011. During a meeting recorded by an FBI source, Garcia was recorded providing his own personal credit card for use in stealing account numbers and manufacturing counterfeit cards.
After the source started cooperating in June 2011, Garcia was caught on videotape bringing eight counterfeit credit cards to the confidential sources’ residence. During that and other recorded meetings, Garcia explained that he had taken the counterfeit cards from work and that he would share them with the confidential source. During the next two weeks, Garcia was again caught on tape discussing his use of the cards at restaurants, movies, and the Dolphin Mall. Garcia’s presence during the transactions was further documented through use of phone records, placing Garcia’s cellular telephone in the area of each transaction at the time it occurred.
U.S. Attorney Wifredo A. Ferrer stated, “William Garcia violated his oath as a police officer and misused his position to victimize the civilians he was sworn to protect. Mr. Garcia’s participation in these crimes betrayed not only the public trust, but also his fellow officers’ daily sacrifices as they work tirelessly to protect this community. Today’s sentence sends a strong message that we expect and deserve more from our public servants. I congratulate the hard work of the FBI that led to this successful prosecution.”
"The FBI’s Miami Area Corruption Task Force was assembled to ensure public officials are brought to justice if they betray the community’s trust,” said George L. Piro, Special Agent in Charge, FBI Miami. “In this case, the Task Force along with the assistance of the Sweetwater Police Department worked diligently to ensure justice was served.”
Mr. Ferrer commended the outstanding investigative efforts of the FBI. This case is being prosecuted by Assistant U.S. Attorneys Anthony Lacosta and Sarah Schall.
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 Pleads Guilty in Identity Theft Schemes Involving Fraudulent Social Security Benefits and Income Tax RefundsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Thomas Caul, Special Agent in Charge, Social Security Administration (SSA), Office of Inspector General (OIG), 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 Thervil Alcinor, 34, of Miami, pled guilty to one count of access device fraud, 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. Sentencing is scheduled for September 29, 2014, at 2:00 p.m. At sentencing, Alcinor 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, from January 2013 through May 2014, Alcinor was involved in the use of personal identifying information (names, dates of birth, and social security numbers belonging to real people) to file fraudulent applications for Social Security Retirement Insurance Benefits (RIB) and Social Security Disability Insurance Benefits (DIB), and to file fraudulent income tax returns with the IRS claiming false refunds.
Court documents state that Alcinor was involved in establishing online accounts on the Social Security Administration website, MySSA.gov, for already-existing RIB or DIB beneficiaries to redirect RIB and DIB payments to accounts (often prepaid debit card accounts) controlled by him. Law enforcement identified 945 fraudulently established MySSA accounts, all with similarly concocted fraudulent email addresses. The fraudulent claims resulted in $700,462 in fraudulent RIB and DIB payments.
According to court documents, Alcinor was also involved in the filing of fraudulent tax returns claiming refunds from the IRS which he directed into accounts (often prepaid debit card accounts) controlled by him. Specifically from April 2012 through September 2013, 54 fraudulent income tax refunds, totaling $174,862.20, were identified by H&R Block records as having been deposited into accounts associated with Alcinor. An additional 14 fraudulent tax refunds, totaling $31,137.28, were connected to the scheme by IRS.
Mr. Ferrer commended the investigative efforts of SSA-OIG, IRS-CI and FBI. 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.
Broward County Sheriff’s Deputy Sentenced in Connection with Rothstein InvestigationRead 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 Scott Israel, Sheriff, Broward County Sheriff’s Office (BSO), announce that David Benjamin, 48, of Boca Raton, was sentenced today in Ft. Lauderdale by U.S. District Judge James I. Cohn to five years in prison, to be followed by three years of supervised release. Benjamin was also ordered to pay $22,071.00 in restitution for conspiring to commit crimes in connection with the operation of the former Fort Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA). On May 13, 2014, Benjamin pled guilty to conspiracy to commit extortion and to violate civil rights, in violation of Title 18, United States Code, Section 371. At the time of the offense, Benjamin was a Lieutenant and served as Executive Officer to then Sheriff Al Lamberti.
When he entered his guilty plea, the defendant admitted that he utilized his position within BSO unlawfully to further the interests of RRA, its Chairman and CEO, Scott W. Rothstein, and other persons associated with Rothstein. Specifically, Benjamin admitted that he received approximately $185,000 in money and other things of value from Rothstein and RRA in return for providing his assistance when needed, including arranging with another deputy to arrest the ex-wife of an attorney who was engaged in a child custody dispute with her, arranging to use force and threats of force against the boyfriend of an escort who was threatening to expose the illicit relationship which existed between the escort and one of the partners at RRA, and assisting Rothstein in loading cash and jewelry onto a private airplane which was used by Rothstein to flee to Morocco on October 27, 2009, as the Ponzi scheme being conducted through RRA was beginning to unravel.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI and BSO. 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.
Former West Palm Beach Police Officer SentencedRead 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, David W. Bourne, Special Agent in Charge, U.S. Food and Drug Administration (FDA), Office of Criminal Investigations, Miami Field Office, and Bryan Kummerlen, Chief, West Palm Beach Police Department, announce that Dewitt McDonald, 46, of Wellington, was sentenced today in Ft. Lauderdale by United States District Judge James I. Cohn to five years in prison, to be followed by three years of supervised release. McDonald was also ordered to pay $25,810.00 in restitution. The defendant pled guilty on April 30, 2014, to carrying a firearm during and in relation to a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A). At the time of this offense, the defendant was a police officer with the West Palm Beach Police Department.
When he entered his guilty plea, the defendant admitted that, while he was employed as a police officer, the defendant operated two businesses: Prime Performance Wellness Centers, Inc., located in Lake Worth, and Prime Health and Rejuvenation Clinic, located in Wellington, through which he unlawfully distributed anabolic steroids and other prescription drugs. The defendant further admitted that, on March 5, 2013, while on duty and carrying his Smith & Wesson MP40 pistol, the defendant made a delivery of these drugs to someone in Palm Beach County.
Mr. Ferrer commended the investigative efforts of the FBI and FDA-Office of Criminal Investigations. Mr. Ferrer also thanked the West Palm Beach Police Department for their cooperation and assistance in this matter. 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.
Broward Resident Pleads Guilty to Bank Fraud Charges 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 Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, announce that Willy Toussaint, 41, of Lauderhill, pled guilty today to one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349, and two counts of bank fraud, in violation of Title 18, United States Code, Section 1344. Toussaint also agreed to an order of restitution in the amount of $208,261.90, which represents the actual loss suffered by the IRS in this case.
At sentencing, the defendant faces a maximum statutory sentence of up to thirty years in prison, five years of supervised release, and a $1,000,000 fine. Sentencing has been scheduled for October 10, 2014, at 3:00 p.m. before U.S. District Judge Beth Bloom in Ft. Lauderdale.
According to court documents, Toussaint obtained counterfeit means of identification, including counterfeit State of Florida driver’s licenses, and caused multiple unauthorized personal and business bank accounts to be created at JP Morgan Chase Bank in the names of unsuspecting identity theft victims utilizing their personal identification information (PII). As compensation for opening the bank accounts, Toussaint paid the bank employees between $2,000 and $10,000.
Court documents also state that co-conspirators utilized stolen PII to submit false, fictitious, and fraudulent federal income tax returns to the IRS claiming tax refunds to which they were not entitled. The fraudulently claimed tax refunds were then deposited into the bank accounts established with the assistance of Toussaint. After the tax refunds were received at the bank, co-conspirators would either “wire” the money out of the established accounts or would utilize multiple automated teller machines (ATMs) to withdraw the money in cash.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. The case is being prosecuted by Assistant U.S. Attorney Marc S. Anton.
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.
U.S. Citizen Sentenced to 20 Years in Prison in 1984 Hijacking CaseRead 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 William Potts, Jr., a/k/a William Freeman, a/k/a Lieutenant Spartacus, 57, was sentenced today to 20 years in prison on charges of kidnapping. Potts is eligible for parole after he serves one third of his 20-year sentence.
On May 1, 2014, Potts pled guilty to a superseding information charging him with one count of kidnapping, in violation of Title 18, United States Code, Section 1201(a)(3) (1984).
In 1985, Potts was originally indicted in the Southern District of Florida with one count of air piracy, in violation of Title 49, United States Code, Section 1472(i) (1984), after diverting a Piedmont Airlines passenger aircraft to Havana, Cuba as the aircraft was approaching Miami International Airport.
According to court documents, Potts threatened to blow up the airplane and shoot passengers if the plane landed in Miami. The pilot diverted the aircraft and landed in Havana, Cuba. After the plane landed in Havana, Cuban authorities boarded and escorted Potts off of the plane. Cuban authorities charged Potts for diverting the aircraft. Potts was convicted and sentenced to 15 years in prison in Cuba. Potts served approximately 13 years in Cuban custody. Potts remained in Cuba after his release from Cuban custody until his return to Miami on November 6, 2013.
Mr. Ferrer commended the investigative efforts of the FBI. Mr. Ferrer also thanked the Diplomatic Security Service, the Coast Guard, and the Transportation Security Administration for their assistance in this case. This case was prosecuted by Assistant U.S. Attorney Maria K. Medetis.
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 Gardens Resident Sentenced to 170 Months in Prison in Timeshare 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 Gregory Fusca, 46, of Palm Beach Gardens, was sentenced to 170 months in prison, in connection with his operation of RC Innovations, Inc. (RCI), a fraudulent timeshare company located in Palm Beach County.
According to the information and plea documents filed with the court, Fusca and his co-conspirators engaged in a scheme to defraud timeshare owners throughout the United States. Between March 2010 and January 2011, telemarketers contacted hundreds of victims throughout the United States and collected and attempted to collect more than $2.6 million in advanced fees for timeshare marketing and sales services, which were never provided. The telemarketers solicited clients through at least eight boiler rooms, all located in Palm Beach County. The telemarketers would make false and misleading representations to the timeshare owners regarding RCI’s services. Among the false representations, the telemarketers claimed that: RCI had buyers for their timeshare units; RCI had closing scheduled for their timeshares; and that RCI would actively market their timeshares to potential buyers.
Fusca, along with the other owners of RCI, was responsible for running the boiler rooms and overseeing the finances. When dividing the fraudulent profits, Fusca and the other owners kept a percentage of all sales generated by the boiler rooms for themselves and then paid the managers a percentage of the sales for their respective boiler room and the salesmen a percentage of their sales.
Fusca also engaged in a second fraud scheme in which he and his co-conspirators posed as Department of Justice and State of Florida employees, promising to send purported restitution payments to victims of earlier timeshare frauds if the victims agreed to send advance fees.
Mr. Ferrer commended the investigative efforts of the FBI. This case is being prosecuted by Assistant U.S. Attorney Adrienne Rabinowitz.
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.
Multi-Agency Law Enforcement Operation Tackles Gun Violence and Drug Trafficking in Broward CountyRead the Press Release
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Michael J. Satz, Broward State Attorney, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Firearms, Tobacco and Explosives (ATF), Amos Rojas, Jr., U.S. Marshal, U.S. Marshal’s Service (USMS), and Scott Israel, Sheriff, Broward County Sheriff’s Office (BSO), announce the results of a concerted multi-agency effort to combat the crime and violence associated with illegal firearm and drug trafficking activity in Broward County. To that end, the U.S. Attorney’s Office, the Broward State Attorney’s Office, and federal and state law enforcement cooperated in a number of joint investigations and prosecutions targeting illegal firearms and drug trafficking. This joint effort resulted in 16 individuals being charged with federal and state firearm and narcotics offenses.
Of those charged, federal charges have been brought against three individuals. The federal criminal complaints filed on July 1, 2014 and unsealed today, charge: Freddy Lee Gardner, 49, of Plantation, with armed career criminal in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g) and 924(e); Kasheem Antonio Saddoo, 23, of Lauderhill, with possession of a firearm with an obliterated serial number, in violation of Title 18, United States Code, Section 922(k); and Antonio James, 19, of Lauderhill, with possession of a short barreled rifle, in violation of Title 26, United States Code, Sections 5841, 5861(d), 5861(e) and 5871.
Additionally, law enforcement seized: 10 firearms, including one short barreled rifle; 45 grams of cocaine powder; 16 grams of crack cocaine; 95 grams of Molly powder; 74 capsules of Molly; and 149 grams of marijuana.
The defendants are scheduled to make their respective initial appearances on Friday, July 18, 2014, at 11:00 a.m., before U.S. Magistrate Judge Lurana S. Snow.
This investigation is, in large part, the result of the Violence Reduction Partnership, launched by the U.S. Attorney’s Office. Through the Partnership, the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminal networks in local neighborhoods, while simultaneously working with community leaders and concerned citizens to mentor at-risk youths, provide jobs and job training to young families, and help probationers and parolees successfully re-enter society.
United States Attorney Wifredo A. Ferrer stated, “Today, we announce the results of the most recent partnership between federal and state law enforcement to combat violent crime in our communities. The goal of the Violence Reduction Partnership is to help neighborhoods plagued with violent crime shake off the cycle of violence and make those neighborhoods safer for all residents. Enforcement of federal criminal statutes is an integral component of our holistic approach to community building. But we cannot arrest our way out of violent crime. For that reason, our Partnership also focuses on community-partnering, crime prevention, and reentry assistance for offenders attempting to put their pasts behind them and build healthy, productive lives in our community. The results of this investigation clearly illustrate that we remain committed to this comprehensive approach.”
“These arrests are a good example of state and federal law-enforcement agencies working together proactively to make our communities safer,” said Broward State Attorney Mike Satz. “We are going to continue this state-federal partnership and aggressively work together to reduce illegal firearms and drug trafficking.”
ATF Special Agent in Charge Hugo J. Barrera added, “This case illustrates law enforcement’s commitment to remain united in its war on violent crime. Those who choose to live outside the rule of law will be brought to justice.”
U.S. Marshal Amos Rojas, Jr. stated, “Today, as a result of the Violence Reduction Partnership, and these significant indictments, our community is a much safer place to live. The U.S. Marshals Service will continue to partner with other law enforcement agencies and the United States Attorney’s Office to reduce and eliminate gun violence and crime in our cities.”
“The key to the success of this operation is in the proactive nature of the enforcement. With the help of our federal partners, our V.I.P.E.R. unit was able to identify, locate and arrest these violent criminals,” Sheriff Scott Israel said. “We will never know how many crimes were prevented by taking these illegal weapons off the streets, but that’s a statistic I can live without.”
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 the Broward State Attorney’s Office and commended the investigative efforts of ATF, USMS, and BSO. The federal cases resulting from this operation are being prosecuted by Assistant U.S. Attorney Donald Chase.
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 criminal complaint is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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 Resident Pleads Guilty in Stolen Identity 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, United States Secret Service (USSS), Miami Field Office, announce that Karla A. Wilkerson, 26, of Miami, pled guilty to one count of possession of fifteen or more 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. Sentencing is scheduled for October 10, 2014. At sentencing, the defendant 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, in April 2013, law enforcement executed a search warrant on a residence associated with Wilkerson and found a variety of papers reflecting the personal identifying information (PII) — including names and social security numbers — of approximately 62 individuals, together with hand-written notations regarding the filing of fraudulent tax returns. The seized documents were processed for latent fingerprints. Approximately 156 latent fingerprints throughout the pages reflecting the PII of other individuals were positively matched as Wilkerson’s fingerprints. Additional investigation reflected fraudulent tax returns were filed using many of those 62 social security numbers. In total, Wilkerson is responsible for filing fraudulent tax returns in the amount of $118,522; however, not all of this money was paid by the Internal Revenue Service.
Court documents also state that when Wilkerson was arrested on May 29, 2014, she admitted she had filed fraudulent tax returns using other individuals’ names and social security numbers, which had been stolen from various places. She further admitted the 62 unique pieces of PII discovered in the residence belonged to her.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. The 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.
Miami-Dade Resident Pleads Guilty in Identity Theft Tax Fraud Scheme Involving Thousands of Individuals’ Personal Identifying InformationRead 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 Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, announce that William Hernandez, 29, of Miami, pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Sentencing is scheduled for October 8, 2014. At sentencing, the defendant faces up to ten years in prison for the unauthorized 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, on October 17, 2013, a cooperating defendant with the initials O.C. advised the IRS that Hernandez sold him personal identifying information (PII) that O.C. used as part of a stolen identity refund fraud scheme internally referred to as “the lotto scheme.” The lotto scheme listed the same address for unrelated taxpayers and the tax returns contained Forms W-2G, purportedly issued by the Florida Department of the Lottery, for alleged lottery winnings. On or around January 18, 2012, a lotto scheme tax return for tax year 2011 was filed with Hernandez’s PII requesting an $18,744.00 tax refund. Hernandez later admitted that O.C. filed a false return for Hernandez using the lotto scheme because Hernandez needed money.
Court documents also state that on March 28, 2014, during a recorded conversation, O.C. asked Hernandez to provide PII to another cooperating witness (CW) in exchange for payment. Hernandez agreed. Hernandez told O.C. that he would be able to provide the CW with names because he had thousands of names at his house.
According to court documents, IRS executed a search warrant at Hernandez’s residence and found thousands of PII. Hernandez told the IRS that he allowed O.C. to open a tax business in Hernandez’s name using Hernandez’s grandmother’s address. Hernandez also said that the stolen identities and identifying information in his possession were “for real people.” Some of the identities were for individuals who were “old” and some were for individuals who were deceased. Additionally, Hernandez admitted he knew that the stolen identities were being utilized for tax returns prepared by O.C.
Mr. Ferrer commended the investigative efforts of IRS-CI, ICE-HSI and USPIS. The case is being 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.
Hallandale Resident Pleads Guilty and Is Sentenced in Attempted Extortion, Bank Robbery and Product Tampering Cases to 188 Months in PrisonRead 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, Paul Wysopal, Special Agent in Charge, Federal Bureau of Investigation, Tampa Field Office, Aaron T. Ford, Special Agent in Charge, Federal Bureau of Investigation, New Jersey Field Office, and Scott Israel, Sheriff, Broward County Sheriff's Office (BSO), announce that defendant Brian Henderson, 50, of Hallandale, pled guilty and was sentenced before U.S. District Judge Frederico A. Moreno in three separate cases involving attempted extortion, bank robbery and product tampering. Henderson was sentenced to 188 months in prison followed by three years of supervised release. The sentences imposed, as detailed below, are to run concurrently. These cases are the result of a joint investigation conducted by the FBI Miami Field Office, the Tampa Field Office and the New Jersey Field Office.
Brian Henderson pled guilty in the following cases:
Attempted Extortion Case: 14-CR-60044-Scola
Henderson pled guilty to ten counts of an 11-count indictment that charged Henderson with: attempted interference with commerce by extortion, in violation of Title 18, United States Code, Section 1951(a) (Count 1); using an instrument of interstate and foreign commerce to make a threat to destroy property by explosives, in violation of Title 18, United States Code, Section 844(e) (Counts 2, 4, 6 and 8); transmitting a communication in interstate and foreign commerce to extort money by damaging and destroying buildings, in violation of Title 18, United States Code, Section 875(d) (Counts 3, 5, 7 and 9); and attempting to destroy property by explosives, in violation of Title 18, United States Code, Section 844(i) (Count 10). According to the indictment, Henderson attempted to extort money from Publix Super Markets, Inc. (Publix), by the use of actual and threatened force, violence and fear of economic loss. As set forth in the factual statement for the guilty pleas, Henderson attempted to obtain money from Publix by sending several threatening emails to Publix in which he threatened to damage Publix stores through the use of explosive devices. In furtherance of his attempt to extort money from Publix, Henderson placed, and caused to be detonated, a pipe bomb at the Publix Super Market located in Dania.
Henderson was sentenced to 188 months in prison, followed by three years of supervised release on Counts 1 and 10; 120 months in prison, followed by three years of supervised release on Counts 2, 4, 6 and 8; and to 24 months in prison, followed by one year of supervised release on Counts 3, 5, 7 and 9.
Bank Robbery Case: 14-CR-60004-Scola
Henderson pled guilty to an indictment that charged him with bank robbery, in violation of Title 18, United States Code, Section 2113(a). According to the factual statement, Henderson presented a demand note to Chase Bank in which he threatened to detonate a bomb around his neck if the teller did not give him $40,000 in $100 bills. Law enforcement officers confronted Henderson when he departed the bank with the money and subsequently arrested him. Henderson was sentenced to 188 months in prison, followed by three years of supervised release.
Product Tampering Case: 14-CR-60154-Scola
Henderson pled guilty to an information that charged him with threatening to tamper with a consumer product with reckless disregard for the risk that another person would be placed in danger of death or bodily injury, in violation of Title 18, United States Code, Section 1365(d). According to the factual statement, Henderson emailed an extortionate demand to a company in New Jersey in which he threatened to put poison in 20 containers of a product distributed by the company and place those containers on the shelves of 20 different stores unless he was paid a sum of money. Henderson was sentenced to 60 months in prison, followed by three years of supervised release.
Case No. 14-CR-60154-Scola was originally prosecuted and investigated by the United States Attorney’s Office for the District of New Jersey, under the direction of U.S. Attorney Paul J. Fishman, and special agents of the FBI, under the Direction of Special Agent in Charge Aaron T. Ford, Newark Division, prior to being consolidated with other cases in the Southern District of Florida for purposes of Henderson’s guilty plea.
Mr. Ferrer commended the investigative efforts of the FBI Miami Field Office, Tampa Field Office and the New Jersey Field Office, and the BSO Bomb Squad. The case is being prosecuted by Assistant United States Attorney Michael Walleisa.
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 to 15 Years in Prison on Child Pornography ChargesRead the Press Release
Robert Eugene Revay, 79, of Oakland Park, Florida, was sentenced to serve 15 years in prison for conspiring to produce child pornography and for possession of child pornography.
U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, and Inspector in Charge Ronald J. Verrochio of the U.S. Postal Inspection Service (USPIS) made the announcement. The sentence was imposed by U.S. District Judge Robert N. Scola of the Southern District of Florida. In addition to Revay’s prison term, he was sentenced to a life term of supervised release.
According to court documents and statements made at the plea hearing, in 2011, law enforcement initiated an investigation into an online chat group whose members traveled to engage in sex with prepubescent boys, and produced and distributed child pornography. Through the investigation, law enforcement obtained computer hard drives that belonged to two of the group’s members, Mark J. Newton and Peter Truong, who were sentenced to serve 40 years in prison and 30 years in prison, respectively, for their crimes. Forensic examination of the hard drives yielded images and videos of boys being sexually abused.
Revay was a member of that online chat group. In 1997, Revay and Truong were living together in an apartment in Germantown, Maryland, where they enticed a then-12-year-old child to come to their apartment. They sexually abused the victim on numerous occasions and took pictures and videos of the abuse.
On March 19, 2013, as part of the investigation, law enforcement officers executed a federal search warrant at Revay’s residence in Oakland Park, Florida. On Revay’s computer, law enforcement discovered child pornography in an encrypted container. Revay admitted that he had downloaded and possessed the child pornography. Revay also admitted that on previous occasions, he downloaded child pornography via the Internet.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “resources” tab on the left of the page.
The case was investigated by USPIS, and prosecuted by LisaMarie Freitas and Michael Grant of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Olivia Choe of the Southern District of Florida.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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 Defendants Indicted for Identity Theft and Unemployment Insurance FraudRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Richard L. Walker, Special Agent in Charge of the Atlanta Regional Office, United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, Jesse Panuccio, Executive Director, State of Florida’s Department of Economic Opportunity, and J.D. Patterson, Director, Miami-Dade Police Department (MDPD), announce the unsealing of a fourteen count indictment charging Stanley Fertil, 20, and Steven Fertil, 19, both of Miami, with access device fraud, in violation of Title 18, United States Code, Section 1029(a)(2) and (a)(3), conspiracy to commit access device fraud, in violation of Title 18, United States Code, Section 1029(b)(2) and aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1). The defendants’ initial appearance was held today before U.S. Magistrate Judge Patrick White in Miami.
According to court records, Stanley and Steven Fertil possessed the personal identifying information (PII) of over a thousand unwitting individuals. The PII included such individuals’ names, dates of birth and social security numbers. The brothers are alleged to have conspired to receive State of Florida Unemployment Insurance benefits by fraudulently filing unemployment claims in the victims’ names using the victims’ PII. The individuals victimized included public and private sector employees.
Mr. Ferrer commended the investigative efforts of U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, the State of Florida’s Department of Economic Opportunity and the MDPD Public Corruption Unit. This case is being prosecuted by Assistant U.S. Attorney Jonathan E. Kobrinski.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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.
Mortgage Lender Pleads Guilty in Multi-Million Dollar Mortgage 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, and Drew J. Breakspear, Commissioner, Florida Office of Financial Regulation, announce that Karl Oreste, 56, of Miramar, pled guilty today before U.S. District Judge Robert N. Scola, Jr., to one count of conspiracy to commit wire fraud affecting a financial institution, in violation of Title 18, United States Code, Section 1349.
Sentencing has been scheduled for November 14, 2014 at 8:30 a.m. At sentencing, Oreste faces a maximum possible statutory sentence of up to 30 years in prison.
According to documents filed with the court and statements made in court during the plea, Oreste, president of KMC Mortgage Corporation of Florida, a mortgage lending business in North Miami Beach, along with co-defendants, Okechukwu Josiah Odunna, a/k/a “O.J. Odunna,” Marie Lucie Tondreau, a/k/a “Lucie Tondreau”, and Kelly Augustin, operated a multi-million dollar mortgage fraud scheme in Miami-Dade and Broward Counties, between December 2005 and May 2008. Oreste and Tondreau hosted several radio show programs in the South Florida area which catered to the South Florida Haitian community. During these programs they advertised the services offered by KMC Mortgage. Oreste and Tondreau recruited and paid some of the listeners who responded to those advertisements, as well as other individuals, to pose as borrowers to purchase properties identified by Oreste. Augustin, an employee of KMC Mortgage, also recruited straw borrowers.
According to statements made in court, Oreste, Odunna and other co-conspirators prepared or caused to be prepared applications on behalf of straw borrowers. Odunna was an attorney previously licensed to practice law in Florida and president of O.J. Odunna, P.A. and Direct Title and Escrow Services. These loan applications included false information relating to employment, wages, assets and intent to make the property being purchased a primary residence. The loan applications and documents were submitted by co-conspirators to various mortgage lenders throughout the United States. Once the loan applications were approved, the defendant wired loan funds to O.J. Odunna, P.A., Direct Title or other title companies for closing.
In some instances Oreste, Odunna and other co-conspirators created and submitted duplicate HUD-Settlement Statement Forms, which grossly inflated the true purchase price of the properties. Lenders were not told how the loan proceeds were being disbursed.
At closing, a portion of loan proceeds were disbursed to Oreste through his company, JR Investment and Mortgage Corporation, or other bank accounts controlled by him. A portion was in some instances diverted to accounts controlled by O.J. Odunna, P.A. and Direct Title. Oreste disbursed some of the proceeds that he received to pay recruiters, such as Tondreau and Augustin, and straw borrowers. Oreste also transferred a substantial portion of the funds to the bank account of LTO Investment Corporation’s, a company controlled by Tondreau. Tondreau used funds deposited in LTO Investment Corporation’s bank accounts to make payments on the falsely and fraudulently obtained mortgages in order to maintain the loans, and to conceal and further the fraud. She also used a portion of the funds deposited into LTO Investment Corporation’s bank accounts for her own personal use and benefit.
Over the course of the conspiracy, the defendants fraudulently obtained loans on approximately 20 properties, for which the lenders have suffered losses in the amount of approximately $11,000,000.00.
Mr. Ferrer commended the investigative efforts of the FBI and Florida Office of Financial Regulation. The case is being prosecuted by Assistant U.S. Attorney Lois Foster-Steers.
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 Miami-Dade Correctional Officer and Co-Defendants Sentenced in Stolen Identity Tax Refund 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), George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, 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 Anthony A. Pace, Jr., 29, Brandon A. Terry, 29, Derel L. Henry, 39, and Rosa Johnson, 26, all of Miami, were sentenced today before U.S. District Judge K. Michael Moore. Pace was sentenced to 81 months in prison, to be followed by three years of supervised release. Terry was sentenced to 60 months in prison, to be followed by three years of supervised release, and was ordered to pay $19,674 in restitution. Henry was sentenced to 40 months in prison, to be followed by three years of supervised release, and was ordered to pay $24,489 in restitution. Johnson was sentenced to one year and a day in prison, to be followed by three years of supervised release. Pace and Johnson were ordered to pay joint restitution of $62,683.
Each of the defendants previously pled guilty to one count of conspiracy to defraud the government with respect to claims, in violation of Title 18, United States Code, Section 286. Pace also pled guilty to one count of theft of government property, 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. Terry and Henry also pled guilty to one count of possession of fifteen or more 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. Johnson also pled guilty to one count of theft of government property, in violation of Title 18, United States Code, Section 641.
According to court documents, Pace was employed as a correctional officer with the Miami-Dade Corrections and Rehabilitation Department. From August 2012 to April 23, 2013, Pace, with the assistance of Johnson, filed 176 false and fraudulent tax returns using multiple stolen identities of former and current Miami-Dade County prisoners, among other stolen identities. A number of the tax returns list defendant Johnson as the preparer of the tax returns. The tax returns directed the IRS to deposit the tax refunds into accounts controlled by defendants Pace and Johnson at TD Bank and into an account controlled by Johnson at Bank of America.
Court documents also state that from August 2012 to April 23, 2013, defendant Henry filed 48 false and fraudulent tax returns using multiple stolen identities. During this time, defendant Terry filed 38 fraudulent returns. On April 23, 2013 search warrants were executed on both Henry and Terry’s apartments based, in part, on IP data demonstrating that multiple false tax returns had been filed from their apartments. A search of a computer found in Henry’s apartment revealed multiple .JPEGs which contained names, dates of birth and social security numbers of 243 individuals. In Terry’s apartment, agents saw a spreadsheet open on a computer screen, which spreadsheet, as well as other loose papers found in the apartment, contained personal identity information including names, dates of birth and social security numbers of hundreds of victims, at least some of which had been used to file false and fraudulent tax returns.
According to court documents, both Henry and Terry gave statements at the time of the searches where they admitted that they had been filing false and fraudulent tax returns using stolen identities. Henry admitted to obtaining the identities from his neighbor and co-defendant, Terry, who he claimed had taught him how to file false and fraudulent tax returns. Henry admitted that he had directed the IRS to put the tax refunds associated with these returns on debit cards that he had directed to be delivered to his apartment. Henry used the debit cards to obtain illicit tax proceeds through ATM withdrawals. Terry admitted that he had directed IRS to deposit the illicit tax refunds associated with these returns onto debit cards and into bank accounts provided to him by co-defendant Pace.
Mr. Ferrer commended the investigative efforts of IRS-CI, FBI, USSS and USPIS. The case is being prosecuted by Assistant U.S. Attorney Peter A. Forand.
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.
U.S. Attorney’s Office Reaches Forfeiture Settlement with RRA Liquidating TrusteeRead 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), Miami Field Office, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that the United States Attorney’s Office has reached a forfeiture settlement, subject to court approval, with Michael I. Goldberg, Esq., the Liquidating Trustee for Rothstein, Rosenfeldt & Adler PA (“RRA”), globally resolving all issues between RRA’s bankruptcy estate and the United States relating to forfeiture and restitution matters in connection with the criminal prosecution of Scott W. Rothstein (“Rothstein”). The proposed settlement follows Rothstein’s 2010 guilty plea to conspiracy to violate the RICO statute in violation of Title 18, United States Code, Section 1962(d); conspiracy to commit money laundering in violation of Title 18, United States Code, Section 1956(h); conspiracy to commit mail fraud and wire fraud in violation of Title 18, United States Code, Section 1349; and two counts of wire fraud in violation of Title 18, United States Code, Section 1343. Rothstein was sentenced to 50 years in prison and was ordered to pay restitution to 320 victims of the scheme. Since Rothstein’s conviction, approximately 24 other defendants have been convicted in connection with the scheme.
The United States sought forfeiture of a vast array of real property, luxury boats and vehicles, bank accounts, jewelry, and investments valued at approximately $50 million. According to court documents, the parties will seek approval of the settlement agreement by both the U.S. Bankruptcy Court overseeing RRA’s bankruptcy and the U.S. District Court handling the underlying criminal case. Upon approval of the settlement agreement, the parties have agreed to the entry of a final order of forfeiture for assets sufficient to satisfy the U.S. District Court’s restitution orders. The United States has expressly agreed to restore all forfeited assets and proceeds from those assets to satisfy the restitution orders entered in the criminal case.
Further, subject to court approval, the settlement agreement provides an equitable mechanism that will allow for all non-subordinated victims to be paid in full. Approximately $28 million from the seized assets will go towards restitution payments to qualifying victims in the criminal case, while the RRA bankruptcy estate to receive a distribution in the approximate amount of $21 million. The full restitution to the qualifying victims is possible through a combination of forfeited funds as well as funds obtained by the victims through the bankruptcy proceedings, federal and state proceedings and other collateral sources.
The settlement agreement also provides for the appointment of Michael I. Goldberg, Esq., as the “Restitution Receiver” responsible for distributing the restitution funds to qualifying victims in accordance with the terms of the agreement and the eventual amended restitution order (which shall account for all collateral sources of recovery pursuant to Title 18, United States Code, Section 3664(j)).
U.S. Attorney Wifredo A. Ferrer stated that “This case demonstrates our commitment to work tirelessly to return stolen assets to the victims of the financial crimes perpetrated by Scott Rothstein’s criminal network. Today’s settlement is the culmination of many years of relentless work to maximize forfeiture to obtain restitution for the victims of Rothstein’s fraud consistent with the Department of Justice Asset Forfeiture Program and the Mandatory Victims Restitution Act.”
IRS-CI Acting Special Agent in Charge Donnell Young stated, “IRS-CI enforces the nation’s tax laws, but also takes particular interest in cases where someone, for their own personal benefit, has taken what belonged to others. We are pleased with today’s settlement agreement to return assets to the victims of this case, and will continue to work with our law enforcement partners to assist in dismantling criminal enterprises and forfeiting their assets.”
“In addition to bringing fraud perpetrators to justice, a top priority for the FBI is seizing assets obtained through fraud in order to compensate victims,” said Acting FBI Special Agent in Charge Kelly M. Darden, Jr. “For many fraud perpetrators, taking their assets removes most or all benefit they obtained by their crimes.”
Mr. Ferrer commended the investigative efforts of the IRS-CI and the FBI. The criminal case was prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, and Jeffrey N. Kaplan. The forfeiture proceedings were handled by Assistant U.S. Attorneys Michelle B. Alvarez, Evelyn B. Sheehan, and Alison W. Lehr. The appeal of the forfeiture proceedings was handled by Assistant U.S. Attorney Madeleine R. Shirley
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 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 Frank Preve, 70, of Coral Springs, for conspiring to commit crimes associated 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.
The information, which was filed earlier today, charges Preve with conspiracy to commit wire fraud, in violation of 18 U.S.C. ' 371. If convicted, the defendant faces a maximum statutory sentence of up to five years in prison.
According to the information, Preve 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 information further charges that, from in or about July 2009 through October 2009, Preve 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 information further charges 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.
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.
South Florida Couple Plead Guilty to Money Laundering Involving Third-Party Payments to MexicoRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), announce that Natalie Ladin, 62, and Jed Ladin, 66, both of Lauderdale by the Sea, and their company Natalie Jewelry, doing business as Golden Opportunities, located in Hallandale Beach, each pled guilty to one count of conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h). Sentencing is scheduled for October 31, 2014, at 1:00 p.m. before U.S. District Judge Beth Bloom. At sentencing, the defendants each face up to 20 years in prison.
According to court documents, the defendants committed money laundering by conducting wire transfers from Natalie Jewelry to third parties in Mexico. Operating an unlicensed money transmitter business is a specified unlawful activity for money laundering, and neither Natalie Jewelry nor any of its owners or employees had such a license from the State of Florida or the Department of the Treasury. From October 2013 through January 2014, the defendants exchanged coded text messages with two co-conspirators who would drop off bags of cash at different South Florida locations and provide the defendants with a list of people who should receive wire transfers from that money. In exchange for a commission, the defendants sent money via wire transfer to approximately 21 individuals in Mexico for a total of $2,023,950.00.
Mr. Ferrer commended the investigative efforts of ICE-HSI. This case is being prosecuted by Assistant U.S. Attorney Michael Thakur.
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 to Conspiring to Provide Material Support to Al-Qa’ida, Al-Qa’ida in Iraq/Al-Nusrah Front, and Al-ShabaabRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, John P. Carlin, Assistant Attorney General for National Security, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and the members of the South Florida Joint Terrorism Task Force (JTTF), announce that Gufran Ahmed Kauser Mohammed, 31, a naturalized United States citizen and resident of Dammam, Saudi Arabia, pled guilty to one count of conspiring to provide material support to designated Foreign Terrorist Organizations al-Qa’ida, al-Qa’ida in Iraq/al-Nusrah Front (“AQI/al-Nusrah Front”), and al-Shabaab. Sentencing for Mohammed is scheduled for October 24, 2014, before U.S. District Judge Ursula Ungaro.
Mohammed was charged along with Mohamed Hussein Said in a fifteen-count indictment with conspiring to provide, and attempting to provide, material support to three separately designated Foreign Terrorist Organizations, al-Qa’ida, AQI/al-Nusrah Front, and al-Shabaab. Mohammed faces a possible statutory maximum sentence of up to 15 years in prison.
The indictment alleges that Mohammed and Said conspired to provide money and recruits to al-Qa’ida, AQI/al-Nusrah Front in Syria, and al-Shabaab in Somalia. The charges allege that Mohammed sent a series of wire transfers to Said for the purpose of supporting al-Shabaab, and to an individual whom he believed was a fundraiser, recruiter, and supplier for al-Qa’ida and AQI/al-Nusrah Front for the purpose of supporting al-Qa’ida and AQI/al-Nusrah Front. In addition, Mohammed and Said agreed to support al-Qa’ida and AQI/al-Nusrah Front by recruiting and moving experienced al-Shabaab fighters to the conflict in Syria.
Mr. Ferrer commended the investigative efforts of the FBI and the South Florida Joint Terrorism Task Force. The case is being prosecuted by Assistant U.S. Attorneys Brian Frazier and Ricardo Del Toro and Trial Attorney Jolie Zimmerman from the Counterterrorism Section of the Justice Department’s National Security Division.
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.
Congressional Candidate Sentenced for Violating the Federal Election Campaign ActRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Leslie R. Caldwell, Assistant Attorney General for the Criminal Division of the Department of Justice, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Justin Lamar Sternad, 35, of Miami, was sentenced to seven months in prison by U.S. District Court Judge Cecilia M. Altonaga for violating the Federal Election Campaign Act (Election Act) in connection with the 2012 Democratic Party primary election for Florida’s 26th Congressional District.
Sternad previously pled guilty to all counts of a criminal information that charged him with one count of conspiracy to make false statements to the Federal Election Commission (FEC), one count of making false statements to the FEC and one count of accepting illegal campaign contributions.
Sternad was a candidate in the 2012 Democratic Party primary election for Florida’s 26th Congressional District. According to court documents, Sternad engaged in a conspiracy to accept illegal, direct and coordinated campaign contributions and file false statements with the FEC in order to conceal the true source, amount and nature of the funds used by his campaign.
Sternad admitted that his campaign accepted cash and checks in excess of Federal Election Campaign Act limits, and that he filed statements that intentionally misled the FEC about his campaign’s activities. During the campaign, illegal cash contributions from co-conspirators were used to pay for a rental car and the design, printing and distribution of campaign flyers.
According to court documents, Sternad reported to the FEC that he made loans to his campaign in the amount of $63,801, when he knew that he had actually loaned fewer than $300. In total, Sternad accepted over $70,000 in misreported campaign contributions.
Mr. Ferrer commended the investigative efforts of the FBI. The case is being prosecuted by Senior Litigation Counsel Thomas J. Mulvihill and Richard C. Pilger, Director of the Election Crimes Branch of the Public Integrity Section of the Criminal Division of the U.S. Department of Justice.
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.
Four Patient Recruiters Plead Guilty in Miami for Roles in $20 Million Health Care Fraud SchemeRead the Press Release
Four patient recruiters pleaded guilty in connection with a $20 million health care fraud scheme involving Trust Care Health Services Inc. (Trust Care), a 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 Ryan Lynch of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office made the announcement.
At a hearing today before U.S. District Judge Darrin P. Gayles of the Southern District of Florida, Estrella Perez, 57, and Solchys Perez, 34, both pleaded guilty to conspiracy to commit health care fraud, and Abigail Aguila, 40, pleaded guilty to conspiracy to defraud the United States and receive health care kickbacks. Sentencing for all three defendants is set for Sept. 18, 2014 in front of Judge Gayles. On June 17, 2014, another co-defendant, Monica Macias, 52, pleaded guilty to conspiracy to defraud the United States and receive health care kickbacks before U.S. Magistrate Judge Chris M. McAliley of the Southern District of Florida. Sentencing for Macias is set for Sept. 10, 2014 before Judge Gayles.
According to court documents, the defendants worked as patient recruiters for the owners and operators of Trust Care, a Miami home health care agency that purported to provide home health and physical therapy services to Medicare beneficiaries. Trust Care was operated for the purpose of billing the Medicare Program for, among other things, expensive physical therapy and home health care services that were not medically necessary and/or were not provided.
The defendants recruited patients for Trust Care and solicited and received kickbacks and bribes from the owners and operators of Trust Care in return for allowing the agency to bill the Medicare program on behalf of the recruited Medicare patients. These Medicare beneficiaries were billed for home health care and therapy services that were not medically necessary and/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 providing home health and therapy prescriptions, plans of care, and medical certifications for their recruited patients. Co-conspirators at Trust Care then used these prescriptions, plans of care and medical certifications to fraudulently bill the Medicare program for home health care services.
From approximately March 2007 through at least January 2010, Trust Care submitted more than $20 million in claims for home health services. Medicare paid Trust Care more than $15 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 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.
Food Service Manager and Co-Defendant Sentenced in Identity Theft Scheme Involving Miami-Dade County Public Schools Students' Personal Identifying InformationRead 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 Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that defendants Pamela Rhim-Grant, 40, and Eugene Moss, 33, both of Miami, were sentenced today before U.S. District Judge Joan A. Lenard. Rhim-Grant was sentenced to 81 months in prison, to be followed by two years of supervised release. Moss was sentenced to 70 months in prison, to be followed by two years of supervised release. Rhim-Grant and Moss were each also ordered to pay restitution in the amount of $87,736.00.
Sentencing for co-defendant Nydia Nelson, 30, of Miami, is scheduled for July 25, 2014, before U.S. District Judge Cecilia M. Altonaga. Each of the defendants previously pled guilty to one count of computer fraud, in violation of Title 18, United States Code, Section 1030, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to court documents, Rhim-Grant was a food service manager at Horace Mann Middle School and an employee of Miami-Dade Public Schools. In connection with her position, Rhim-Grant had network computer access to the Miami-Dade Public Schools’ Integrated Student Information System (ISIS) database through which Rhim-Grant could access information regarding current and former Miami-Dade County Public Schools students' personal identifying information (PII), including names, dates of birth, and social security numbers.
Court documents also state that from approximately October 2012 through January 21, 2014, Rhim-Grant and co-conspirators Moss and Nelson agreed and conspired to access the network computer, with the intent to commit stolen identity fraud, for the purpose of obtaining student PII in furtherance of that fraud. Moss and Nelson placed orders for student PII with Rhim-Grant. Once the order was received, Rhim-Grant accessed the network computer and printed student information sheets containing the PII from the ISIS database and delivered them to either Moss or Nelson at a prearranged location. Once in possession, Moss and Nelson used the student PII to file income tax returns seeking fraudulent refunds. The fraudulent refunds were directed either to prepaid debit cards or accounts controlled by Nelson.
According to court documents, Rhim-Grant was paid $10 per student’s PII in either cash or gift cards. According to Rhim-Grant, approximately 400 students’ PII were fraudulently accessed on the network computer and delivered to Moss or Nelson pursuant to the scheme.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, and the Miami-Dade Schools Police Department. 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.
Brazilian Man Pleads Guilty to 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), announce that Sergio Carvalho, 50, formerly of Boca Raton and Brazil, pled guilty today to charges of making false statements in a firearm sales record, in violation of Title 18, United States Code, Section 924(a).
Sentencing is scheduled for September 18, 2014 before Chief U.S. District Judge K. Michael Moore in Fort Pierce. At sentencing, Carvalho faces a possible maximum statutory sentence of up to five years in prison.
According to statements made in open court and documents filed in the case, Carvalho together with his colleague Moizes Maia Nogueira, 44, Pembroke Pines, visited a federally licensed firearms dealer named Vincent Olavarria, Jr., 48, Port St. Lucie, on March 30, 2001, in Port St. Lucie. The two men purchased twelve 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, Port St. Lucie, was sentenced in June 2013, to 21 months in prison, and in September 2013, straw buyer Anthony Olavarria, 49, 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.
Venezuelan Wildlife Dealer Charged with Illegally Trafficking in Marine LifeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and David Pharo, Resident Agent in Charge, U.S. Fish & Wildlife Service (FWS), Office of Law Enforcement, announce that Oscar H. Cordova-Cobian, 42, of Caracas, Venezuela, was arraigned today in Miami on charges he exported, and attempted to export, fish and wildlife, that is, specimens of regulated live corals, live rock, clams, and other marine invertebrates, knowing that said fish and wildlife were possessed, transported, and sold in violation of and in a manner unlawful under the laws, treaties, and regulations of the United States, all in violation of 16 U.S.C. '' 3372(a)(1), (a)(4), and 3373(d)(1)(A).
If convicted, Cordova-Cobian faces a possible sentence of up to five years in prison, a term of supervised release of up to three years, and a criminal fine of up to $250,000. He also faces forfeiture of the wildlife involved in the commission of the Lacey Act violations.
According to statements in the information and other court records, Cordova-Cobian is a resident of Caracas, Venezuela and operates and maintains a website through which he engages in the commercial sale of marine life, including ornamental fish and corals.
In order to protect certain species of fish and wildlife against over-exploitation, the United States is a party to an international treaty known as the Convention on International Trade in Endangered Species of Wild Fauna and Flora, T.I.A.S. 8249, (hereinafter “CITES”). Species are listed by CITES in Appendices, each of which provides a different level of protection. CITES regulates trade in the listed species through a system of permits and certificates (CITES documents), in order to monitor the effects of trade to ensure trade is legal and not detrimental to the survival of the species. Appendix I includes species threatened with extinction that are or may be affected by trade and such trade may take place only in exceptional circumstances. Appendix II includes species that are not presently threatened with extinction, but may become so if their trade is not regulated. CITES, Art. II. Congress has implemented CITES in the United States through the Endangered Species Act, 16 U.S.C. '' 1531-1544. The FWS as the CITES enforcement authority within the United States has published regulations to implement CITES. A list of all the species protected by CITES, the Endangered Species Act, and the FWS regulations is maintained by the CITES Secretariat. 50 C.F.R. § 23.7 and § 23.91.
The information alleges that in mid-May 2014, at Miami International Airport, Cordova-Cobian attempted to export, fish and wildlife, that is, approximately 136 specimens, including CITES App. II regulated live corals, CITES App. II regulated live rock (Scleractinia sp.), CITES App. II regulated clams (Tridacna sp.), and other marine invertebrates, in his checked baggage, for commercial sale to customers in Venezuela.
At no time did Cordova-Cobian apply for or obtain a CITES permit issued by the FWS for the export of CITES Appendix II wildlife from the United States or file a Declaration for the Importation or Exportation of Fish or Wildlife (Form 3-177) with FWS as required by law.
Mr. Ferrer commended the investigative efforts of FWS Office of Law Enforcement, National Oceanic and Atmospheric Administration Fisheries Office of Law Enforcement, the Florida Keys National Wildlife Refuges and the U.S. Customs and Border Protection Air Marine Branch. This matter is being prosecuted by Assistant U.S. Attorneys Thomas Watts-FitzGerald and Antonia Barnes.
An information is only an accusation and a 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.
Two More Defendants Sentenced in Stolen Identity Tax Refund Scheme Resulting in Millions of Dollars in Fraudulent ActivityRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department's Tax Division, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, announce that defendants Herve Wilmore Jr., 29, of Aventura, and Delvin Jean Baptiste, a/k/a “Doo Doo,” 29, of Miramar, were sentenced today before U.S. District Judge Robert N. Scola for their participation in a stolen identity tax refund scheme resulting in millions of dollars in fraudulent activity. Wilmore was sentenced to 240 months in prison, to be followed by three years of supervised release. Baptiste was sentenced to 121 months in prison, to be followed by three years of supervised release.
On March 5, 2014, both defendants were convicted by a federal jury in Miami of one count of conspiring to defraud the Internal Revenue Service (IRS), wire fraud, and aggravated identity theft, all in violation of Title 18, United States Code, Section 371, two counts of wire fraud, in violation of Title 18, United States Code, Sections 1343 and 2, and two counts of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2.
According to court documents and evidence presented at trial, the defendants conspired to unjustly enrich themselves by recruiting knowing co-conspirators and unknowing victims to put businesses, bank accounts and Electronic Filing Identification Numbers (EFINs) in their names, through which fraudulent transactions would be conducted. To accomplish this, the defendants used the personal identification information of individuals, many deceased, to prepare and file false and fraudulent income tax returns with the IRS. The defendants would obtain possession of fraudulently obtained refunds in the form of United States Treasury and Refund Anticipation Loan checks diverted to addresses or into bank accounts that they caused to be created and controlled. The defendants would then negotiate the fraudulently obtained federal income tax refunds within each other’s businesses, and elsewhere, to avoid being detected.
According to evidence at trial and court documents, Wilmore, Baptiste and their co-conspirators caused the filing of approximately $35 million in fraudulent federal income tax returns of which the IRS paid out approximately $14 million. Wilmore was the president of Worldwide Income Tax Multiservices while Baptiste was the president of Royal Tax Multiservices, both tax preparation services located in Miami.
Each of the following co-defendants previously pled guilty to one count of conspiring to defraud the government, in violation of Title 18, United States Code, Section 371, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1):
- Dukens Eleazard, a/k/a “DK,” 33, of Pembroke Pines, was sentenced on April 29, 2014 to 60 months in prison, to be followed by three years of supervised release, and was ordered to pay $6,679,036.78 in restitution.
- Henry Dorvil, a/k/a “D,” 35, of Hollywood, was sentenced on April 17, 2014 to 54 months in prison, to be followed by three years of supervised release, and was ordered to pay $2,537,417 in restitution.
- Corey Williams, 30, of Miami Gardens, was sentenced on May 21, 2014 to 40 months in prison, to be followed by three years of supervised release, and was ordered to pay $2,089,411 in restitution.
- Ronald Gustave, 36, of Miami, was sentenced on April 17, 2014 to 36 months in prison, to be followed by three years of supervised release, and was ordered to pay $544,054 in restitution.
- Luckner St Fleur, a/k/a “Nene,” 44, of Miami, was sentenced on May 9, 2014 to 30 months in prison, to be followed by three years of supervised release, and was ordered to pay $1,376,472 in restitution.
- Brandon Johnson, 29, of Miami Gardens, was sentenced on April 22, 2014 to 30 months in prison, to be followed by three years of supervised release, and was ordered to pay $74,050 in restitution.
- Marie Eleazard, a/k/a “Fanfan,” 32, of Miami, was sentenced on April 9, 2014 to 25 months in prison, to be followed by two years of supervised release, and was ordered to pay $1,880,317.94 in restitution.
- Jesse Lamar Harrell, 26, of Miramar, was sentenced on May 9, 2014 to 15 months in prison, to be followed by three years of supervised release, and was ordered to pay $589,675.93 in restitution.
- Ruth Cartwright, a/k/a “Princess,” 30, formerly of Plantation, is scheduled to be sentenced on September 26, 12014.
Co-defendant Marc Leroy Saint Juste, 47, of Tamarac, previously pled guilty to one count of conspiring to defraud the government, in violation of Title 18, United States Code, Section 371. He was sentenced to two months in prison, to be followed by one year of supervised release.
Co-defendant John Similien, 24, of Plantation, pled guilty on the third day of the eight day trial to making a false statement, in violation of Title 18, United States Code, Section 1001(a)(2), and was sentenced to time served.
The indictment was dismissed against Miguel Patterson, 35, of Miami.
Mr. Ferrer and Deputy Assistant Attorney General Cimino commended the investigative efforts of the IRS-CI, FBI, USSS, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI). The case is being prosecuted by Assistant U.S. Attorney Neil Karadbil and Tax Division Trial Attorney Greg Tortella.
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 Jury Convicts Four Defendants of Conspiracy and Bank Fraud Offenses Arising from $49.6 Million Mortgage 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, and Jason T. Moran, Special Agent in Charge, Federal Deposit Insurance Corporation (FDIC), Office of Inspector General, Atlanta Regional Office, announce the convictions of Domenico “Dom” Rabuffo, 77 of Miami, Mae Rabuffo, 75, of Fort Lauderdale, and Williston Park, New York, Raymond E. Olivier, 52, of Land O’ Lakes, and Curtis Allen Davis, 51, of Tampa. The defendants were convicted after an eleven day-jury trial before Chief United States District Judge Kevin Michael Moore. The jury found each defendant guilty of conspiracy to commit bank fraud and wire fraud affecting a financial institution, in violation of Title 18, United States Code, Section 1349. The jury also convicted Domenico Rabuffo, Olivier, and Davis of multiple counts of bank fraud, in violation of Title 18, United States Code, Section 1344.
Domenico Rabuffo, Mae Rabuffo, Olivier, and Davis are scheduled to be sentenced by Chief Judge Moore on September 25, 2014. The defendants face a maximum sentence of 30 years in prison for each count of conviction.
According to the indictment and evidence at trial, from 2003 to 2008, the defendants conspired to perpetrate a complex $49.6 million mortgage fraud scheme against various FDIC-insured lenders, including Bank of America, Regions Bank, SunTrust Bank, and Wachovia Bank. Domenico Rabuffo and Mae Rabuffo used shell companies to acquire ownership and control of a purported residential property development known as Hampton Springs, located in Cashiers, North Carolina. Then, Domenico Rabuffo, Olivier, and Davis recruited numerous straw borrowers to purchase building lots in the development. Several of the straw borrowers testified at the trial. According to their testimony and other evidence, Domenico Rabuffo paid the borrowers to obtain lot purchase loans and construction loans for building lots in Hampton Springs. To obtain the loans, Domenico Rabuffo, Mae Rabuffo, Olivier, Davis, and other conspirators, submitted fraudulent loan applications and related documents to the lenders and the lenders’ closing agents.
Among other things, the loan applications and settlement statements for the lot loans contained fraudulent statements that the borrowers paid earnest money deposits and cash due at the closing. In fact, the deposits and cash-to-close were paid by Domenico Rabuffo and Mae Rabuffo using proceeds from the fraudulent scheme. Further, Domenico Rabuffo and Mae Rabuffo sent fraudulent correspondence to the closing agents, including letters bearing the forged signatures of borrowers, to create the false impression that the deposits and cash due at closing had been supplied by the borrowers from their own funds.
Olivier and Davis recruited straw borrowers for the fraud scheme and submitted fraudulent loan applications to the lenders. Further, Olivier and Davis caused their private companies to be disclosed as the employers of straw borrowers whose actual employment was inconsistent with the inflated income stated on their loan applications. Then, when they were contacted by the lenders, Olivier and Davis provided fraudulent verifications of employment for those borrowers.
Three other defendants, Diane M. Hayduk, 64, of Miami, Victor Miguel Vidal, 49, of Miami, and Lazaro Jesus Perez, 44, of Miami Springs, pled guilty to the charged conspiracy. Hayduk assisted Domenico Rabuffo and Mae Rabuffo with the misappropriation of loan proceeds and the transmission of fraudulent correspondence to the lenders and the closing agents. Vidal served as a loan officer at SunTrust Mortgage, where he sponsored fraudulent loan applications for lots in Hampton Springs, including fraudulent applications for $33 million in construction loans. Perez furnished fictitious accountant’s letters to Vidal, in support of fraudulent loan applications submitted to SunTrust Mortgage. Hayduk, Vidal, and Perez are awaiting sentencing by Chief Judge Moore.
Mr. Ferrer commends the investigative efforts of the FBI and FDIC, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorneys Dwayne E. Williams and 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.
Miami Wildlife Dealer Convicted in Illegal Rhinoceros Trafficking DealRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Dan Ashe, Director, U.S. Fish and Wildlife Service (FWS) announced that Gene Harris, 76, of Miami, pled guilty yesterday to the sale and purchase of, the offer of sale and purchase of, and the intent to sell and purchase horns of a black rhinoceros (Diceros bicornis) with a market value in excess of $350.00, and to the transport, receipt, acquisition, and purchase of said wildlife, knowing that the wildlife was possessed, transported, and sold in violation of the Endangered Species Act, 16 U.S.C. '' 1538(a)(1)(E) and (F), and 1540(b), all in violation of 16 U.S.C. '' 3372(a)(1) and 3373(d)(1)(B); and 18 U.S.C. ' 2.
Harris faces a possible sentence of up to five years in prison, a term of supervised release of up to three years, and a criminal fine of up to $250,000. U.S. District Judge Marcia G. Cooke who accepted Harris’s guilty plea, scheduled sentencing for September 24, 2014 at 10:30 a.m.
According to case records and a joint factual proffer submitted to the Court, at the relevant times, Harris was engaged in the retail sale of wildlife products, including taxidermy mounts from locations in Miami-Dade County and Laredo, Texas. Further, Harris engaged in the arrangement, brokerage, and purchase/sale of wildlife on a private basis, of various wildlife specimens, specifically including black rhinoceros (Diceros bicornis) horns.
In the proffer, it was agreed that between June 2011 and July 2011, Harris engaged in a series of telephone conversations from Miami with a customer in California to discuss and arrange for the sale of black rhinoceros horns to the customer by a resident of Phoenix, Arizona. Harris reserved airline seats and a hotel room to facilitate his travel from Miami to Phoenix in July 2011. On July 23, 2011, Harris personally drove the customer, to the home of a Phoenix couple who were in possession of a full black rhinoceros shoulder mount, including the two horns of the taxidermied mount. At that meeting, the mount was purchased by the customer for approximately $60,000 in cash, and the rhinoceros horns pried from the head mount. To conceal the nature of the transaction and make it appear that the transaction was solely an intra-state deal, a false invoice was prepared, listing a third-party Arizona resident, also brought to the home by Harris, as the buyer. Harris was paid a “finder’s fee” by the California customer of approximately $10,000 for his services in locating the seller and arranging the deal.
Harris admitted to the Court that based on his prior familiarity with the California-based buyer, and his experience in the industry, he knew that the rhinoceros horns in question would be and in fact were, transported to California and thereafter exported from the United States without compliance with the laws and regulations governing such transactions.
Trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (“CITES”) since 1976. CITES is a treaty providing protection to fish, wildlife and plants that are or could become imperiled due to the demands of international markets. CITES has been signed by over 170 countries including the United States. CITES is implemented in the United States through the Endangered Species Act (“ESA”), 16 U.S.C. § 1538(c); 50 C.F.R. §§ 14 and 23. An animal species listed as protected under CITES cannot be exported from the United States without prior notification to, and approval from, FWS, pursuant to 50 C.F.R. §§ 20.13 and 20.20. Species protected under CITES are listed in a series of appendices (Appendices I, II and III) designating the level of protection afforded each species. Under Appendix II of CITES, a species can be exported from the United States to a foreign country only if, prior to exportation, the exporter possessed a valid CITES export permit issued by the United States. Under Appendix I of CITES, a species can only be exported from the United States if, prior to exportation, the exporter possesses a valid foreign import permit issued by the country of import and a valid export permit issued by the United States. All rhinoceros species are protected under either CITES Appendix I or II. The ESA also made it unlawful to export any endangered wildlife species pursuant to 16 USC ' 1538(a)(1)(A).
Rhinoceros are characterized by their enormous size, leathery skin and horns. Rhinoceros horn is a highly valued and sought after commodity despite the fact that international trade in it has been largely banned and otherwise highly regulated since 1976. Libation cups and other ornamental carvings are particularly sought after in China and other Asian countries as well as in the United States. The escalating value of these items has resulted in an increased demand for rhinoceros horn and helped to foster a thriving black market, including modern carvings being sold as antiques. Most species of rhinoceros are extinct or on the brink of extinction as a result of this thriving black market and export activity.
Mr. Ferrer commended the investigative efforts of the FWS Office of Law Enforcement who participated in the investigation dubbed “Operation Crash,” which is an ongoing multi-agency effort to detect, deter, and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns. This matter is being prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald.
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.
Managers Sentenced to 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 Ajay Thuraisingham, 27, of Ontario, Canada, and co-defendant Christopher Duharte, 36, of Coconut Creek, were sentenced by U.S. District Judge Kenneth Marra to 54 months in prison, and to 30 months in prison, respectively. Both defendants were also sentenced to three years of supervised release and payment of restitution in an amount to be determined. Both defendants 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 pled guilty include the following, with their respective scheduled sentencing dates:
Brian Fleuridor, 30, of Delray Beach, sentencing set for September 5, 2014 at 2:30 p.m.
Peter Brown, 27, of Sound Beach, NY, sentencing set for August 1, 2014 at 9:30 a.m.
Neil Sack, 40, of Ft. Lauderdale, sentencing set for August 8, 2014 at 2:00 p.m.
Gregory Small, 29, of Boca Raton, sentencing set for August 8, 2014 at 1:30 p.m.
Arthur Fogarty, 57, of Hollywood, sentencing set for August 15, 2014 at 11:30 a.m.
Robert Bacon, 35, West Newbury, MA, sentencing set for August 15, 2014 at 3:00 p.m.
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 in the West Palm Beach Office.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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.
Mastermind of Cuban Smuggling Organization Sentenced to 20 Years in PrisonRead 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), and Rear Admiral John H. Korn, Commander, 7th Coast Guard District (USCG), announce that Antonio Comin, 56, of Miami-Dade County, was sentenced to 20 years in prison by U.S. District Judge Jose E. Martinez for one count of conspiracy, 50 counts of encouraging and inducing aliens to enter the United States, 47 counts of alien smuggling for private financial gain, and one count of bringing an aggravated felon into the United States.
The evidence at trial revealed that Comin was the mastermind of an extensive organization that conspired to smuggle Cuban nationals into the United States for profit. In January 2012, the organization successfully landed 29 Cuban nationals on Big Munson Island in the Florida Keys following a high speed chase with the United States Coast Guard, and a conscious decision by the smugglers to run their vessel aground instead of being captured at sea. Of the 29 Cuban nationals landed that day, one, Rogelio Martin-Hernandez, had been previously deported back to Cuba after serving 264 months for cocaine trafficking. In September 2012, another smuggling venture was attempted; however, the vessel used ran out of gas near Cay Sal Bank, Bahamas. An attempt by Comin and his organization to save that trip was thwarted when a second vessel, carrying additional gas, broke down less than two miles from the smuggling vessel. The occupants of both vessels, including four co-defendants of Comin and 21 Cuban nationals, were rescued by the United States Coast Guard Cutter Oak.
Seven co-defendants in the instant case, all from Miami-Dade County, have thus far been sentenced for their participation in these events:
Daniel Rochela, 42, was sentenced to 100 months in prison;
Arial Arias, 43, and Oylver Aguilar, 40, were sentenced to 60 months in prison;
Severo Tapanes, 42, was sentenced to 40 months in prison;
Rogelio Martin-Hernandez, 73, and Alexander Aznay-Gonzalez, 23, were sentenced to 24 months in prison;
Oreste Chavez Torres, 23, was sentenced to 18 months in prison.
An eighth co-defendant, Jose Valdes Diaz, 37, will be sentenced on July 17th in Miami.
Mr. Ferrer commended the investigative efforts of ICE-HSI and the USCG. This case was prosecuted by Special Assistant U.S. Attorney Kelly Blackburn and Assistant U.S. Attorney Jaime Raich.
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.