Southern District of Florida
Press releases recorded for this federal judicial district.
Two Defendants Charged with Defrauding Sony OpenRead 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 unsealing of an indictment alleging that two former employees of IMG Worldwide, Inc. defrauded the company that runs the Sony Open Tennis tournament on Key Biscayne.Mikel Mims, 37, of Miami Gardens, and Simon Habbershaw, 41, formerly of Miami, were charged with conspiring to commit wire fraud and substantive wire fraud charges. Mims was arrested this morning and is scheduled to have an initial appearance this afternoon in Miami. Simon Habbershaw remains at large.
Each defendant faces a maximum term of 20 years in prison for each count of wire fraud and five years in prison for conspiring to commit wire fraud.
According to the indictment, Mims and Habbershaw were employees of IMG Worldwide, Inc. responsible for coordinating with sponsors and patrons for the delivery of tickets to the Sony Open Tennis tournament on Key Biscayne. The defendants are alleged to have told the printing vendor for IMG Worldwide, Inc., that patrons and customers of IMG Worldwide, Inc. had purchased more tickets than the patrons and customers had actually purchased. As a result, the printing vendor for IMG Worldwide, Inc. printed extra tournament tickets that it delivered to the defendants. The defendants then told customers that purported patron and customers of IMG Worldwide, Inc. had extra tickets for the tennis tournament that needed to be sold, stating that various companies had previously purchased too many tournament tickets. Between 2008 and 2013, Mims and Habbershaw sold these extra tournament tickets to patrons and customers of IMG Worldwide, Inc., but instead used the proceeds of the sale of the additional tournament tickets for their own personal benefit and the benefit of others. The indictment seeks forfeiture in the amount of $407,409.
Mr. Ferrer commended the investigative efforts of the FBI. The case is being prosecuted by Assistant U.S. Attorneys H. Ron Davidson and Alison Lehr.
An indictment is merely an accusation and defendants are 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.
Loxahatchee Pair Sentenced in Government Benefit Fraud CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Lester Fernandez, Special Agent in Charge, U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, Thomas Caul, Special Agent in Charge, Social Security Administration (SSA), Office of Inspector General, Atlanta Field Division, Karen Citizen-Wilcox, Special Agent in Charge, U.S. Department of Agriculture (USDA), Office of Inspector General, and Brian P. Martens, Acting Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), announce that Gloria Nereida Valle-Clas, 49, and Alexander Gonzalez, 41, of Loxahatchee, were sentenced today in West Palm Beach before United States Senior District Judge Kenneth L. Ryskamp.
Valle-Clas was sentenced to 51 months in prison, three years supervised release, and restitution of $283,359.43. Gonzalez, her husband, was sentenced to 364 days in prison, three years supervised release, and $9,999 in restitution.
Valle-Clas previously pled guilty to one count of conspiracy, in violation of Title 18, United States Code, Section 371, and one count of making a false statement to HUD, in violation of Title 18, United States Code, Section 1001. Gonzalez pled guilty to one count of aiding and abetting Valle-Clas in making a false statement to HUD, in violation of Title 18, United States Code, Section 1001.
According to the indictment, and as made public at the plea and sentencing hearings, Valle-Clas obtained two social security numbers (SSN), one which was originally associated with her birth name, “Nereida Valle,” and one which was originally associated with the name “Gloria Lopes Clas.” From at least December 2003 to January 2013, she used the SSN for “Nereida Valle” to obtain almost $500,000 in federal housing, social security, food, cash, and medical benefits from HUD, SSA, USDA and HHS. At the same time, she used the SSN for “Gloria Lopes Clas” to obtain mortgage loans and buy real estate in both Broward and Palm Beach Counties. As “Gloria Clas,” she sold two Broward properties for a profit of over $200,000. She also purchased over an acre of property in Loxahatchee on which she built an approximately 2,700 square foot residence. After the residence was built, she received a $200,000 HELOC collateralized by the property, but defaulted on it owing over $150,000. At various times, her husband, Gonzalez, assisted her in obtaining housing benefits.
Valle-Clas, who formally changed her name from “Nereida Valle” to “Gloria Nereida Valle-Clas” in 2003, used approximately 12 aliases in perpetrating the scheme, most of which were variations on “Nereida Valle” and “Gloria Lopes Clas.”
Mr. Ferrer commended the investigative efforts of HUD-Office of Inspector General, the Palm Beach County Sheriff’s Office, SSA-Office of Inspector General, USDA-Office of Inspector General, and the HHS-OIG. This case is being handled by Assistant U.S. Attorney Carolyn Bell.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami-Dade Resident Sentenced in Identity Theft SchemeRead 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 José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Jean-Elguentino Cayo, 26, of Miami Gardens, was sentenced today to 37 months in prison, followed by three years of supervised release for his participation in a stolen identity scheme. Cayo previously pled guilty to one count of access device fraud, in violation of Title 18, United States Code, Section 1029(a)(2).
According to court documents, beginning in December 2012 through June 2013, the defendant sold approximately 400 names, dates of birth, and social security numbers belonging to other persons to a confidential informant and undercover law enforcement officer in exchange for money. The defendant had no authorization to traffic in the names, dates of births, and social security numbers belonging to other persons and acted with the intent to defraud.
Mr. Ferrer commended the investigative efforts of ICE-HSI and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Frank 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.
United States Attorney and SEC Act Cooperatively to Shut Down Alleged Investment FraudRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce the arrest of Joseph Signore, 49, of Palm Beach Gardens, and Paul Lewis Schumack, II, 56, of Coconut Creek, in connection with an alleged $70,000,000 investment fraud concerning the sales and marketing of a “Virtual Concierge” machine by a Jupiter-based company, JCS Enterprises, Inc., and T.B.T.I., Inc. formerly of Highland Beach. The Securities and Exchange Commission (SEC) sought and obtained a temporary restraining order freezing the accounts and assets of the companies in a separately-filed civil action.
According to the criminal complaint, Signore and Schumack allegedly collected approximately $70,000,000 from investors nationwide with the representation that for an approximate investment of $3,500 the investor would be guaranteed a monthly payment of $300 for three years, and their payments would be based on advertising revenue earned from ads sold on “Virtual Concierge” machines (VCMs). The criminal complaint alleges that detailed financial analysis revealed that little advertising revenue was actually received by JCS Enterprises, and that in fact old investors were paid with new investors’ money which is the hallmark of a Ponzi scheme. The criminal complaint alleged that TBTI served as the sales arm for JCS Enterprises.
Signore and Schumack each have been charged with conspiracy to commit mail and wire fraud, five counts of mail fraud each, and six counts of wire fraud. Each of those counts carries a maximum period of twenty years in prison, three years of supervised release, a fine of up to $250,000 and mandatory restitution.
Mr. Ferrer commended the investigative efforts of the FBI. The case is being prosecuted by Assistant U.S. Attorneys Stephen Carlton and Ellen Cohen.
A criminal complaint is only an accusation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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.
Ten Individuals Indicted for Medicare Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Brian P. Martens, Acting Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced that nine residents of Miami-Dade County and a resident of Hillsborough County have been indicted for their alleged participation in a $12.5 million Medicare fraud scheme.
On March 20, 2014, a federal grand jury in Miami returned a 59-count indictment charging Vicente Diaz, 39, Daniel Ocampo, 35, Elsa Capo, 71, Santiago Sepulveda, 79, Marta Curbeco, 67, Margarita Rodriguez, 72, Francisco Maysonet, 67, Pedro Peralta, 69, Amira Galan, 79, and Ana Rosa Santana, 77, for allegedly participating in a scheme to defraud Medicare by submitting false and fraudulent claims, and the payment and receipt of kickbacks in connection with a federal health care program, from approximately November 2011 to October 2013.
All ten defendants are charged with conspiracy to commit health care fraud and wire fraud, and conspiracy to pay and receive bribes and kickbacks in connection with a federal health care program. Diaz is additionally charged with nine counts of health care fraud, and nineteen counts of paying kickbacks and bribes in connection with a federal health care program. Ocampo is additionally charged with nine counts of health care fraud, and thirteen counts of paying kickbacks and bribes in connection with a federal health care program. Capo, Sepulveda, Curbeco, Rodriguez, Maysonet, Peralta, Galan, and Santana are charged with one count of health care fraud, and various counts of receiving kickbacks and bribes in exchange for serving as patients of Marcialed Health Care Corp. (Marcialed) and Sacred Health, Inc. (Sacred Health). Curbeco, Rodriguez, and Peralta are also charged with soliciting and accepting kickbacks and bribes in exchange for referring other beneficiaries to serve as patients of Marcialed and Sacred Health.
The allegations center on the operation of Marcialed and Sacred Health, two companies located in Miami-Dade County which were purportedly in the business of providing home health care to Medicare beneficiaries.
According to the indictment, Diaz controlled Marcialed and Sacred Health. Ocampo was for a time an officer of Sacred Health. Diaz and Ocampo offered and paid kickbacks and bribes to patient recruiters in return for referring beneficiaries to serve as patients so that Marcialed and Sacred could bill Medicare for home health services that were not medically necessary and were not provided. Curbeco, Rodriguez and Peralta solicited and accepted kickbacks and bribes in exchange for referring beneficiaries to serve as patients of Marcialed and Sacred Health. Capo, Sepulveda, Curbeco, Rodriguez, Maysonet, Peralta, Galan, and Santana are Medicare beneficiaries who solicited and accepted kickbacks in return for agreeing to serve as patients of Maricaled and Sacred Health so that the companies could bill Medicare for home health services that were not medically necessary and were not provided.
The indictment alleges that the defendants falsified, and caused to be falsified, records to document the receipt of home health services from Marcialed and Sacred Health that were not provided and were not medically necessary. Diaz and Ocampo violated Medicare rules and regulations by offering and paying kickbacks and bribes to patient recruiters in exchange for the referral of beneficiaries to Marcialed and Sacred Health. Diaz and Ocampo then caused Marcialed and Sacred Health to submit false and fraudulent claims seeking payment from Medicare for the home health services which had purportedly been provided to beneficiaries, when in truth the services had not been provided and were not medically necessary. The indictment alleges that as a result of the fraudulent claims, Diaz and Ocampo caused Medicare to pay approximately $7,809,243 to Marcialed and $4,694,834 to Sacred Health.
The indictment alleges that Diaz, Ocampo and other conspirators used the money fraudulently obtained from Medicare for their personal use and to further the fraud. The indictment seeks forfeiture of two properties and four Mercedes vehicles.
Mr. Ferrer commended the investigative efforts of U.S. Postal Inspection Service, HHS-OIG, and the FBI and was brought as part of the Medicare Fraud Strike Force. This case is being prosecuted by Assistant U.S. Attorney Eric E. Morales.
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.
Miami Resident Sentenced in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and J.D. Patterson, Director, Miami-Dade Police Department, announce that Roshawn Jermaine Davis, 38, of Miami, was sentenced for his participation in a stolen identity tax refund scheme. Davis was sentenced to 57 months in prison, to be followed by three years of supervised release. Davis previously 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 aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, during a traffic stop of a vehicle Davis was driving, a bag was found containing pre-paid debit cards in other individuals’ names, together with over 150 pieces of personal identification information (PII) on handwritten sheets of paper, printouts, and patient information sheets from doctors’ offices. Some of the sheets had handwritten notes indicating dollar amounts, routing numbers, and account numbers.
Court documents also state that fraudulent tax returns were filed for the 2011 tax year on behalf of at least sixteen individuals whose PII was found in the defendant’s bag. The handwritten dollar amounts listed on the documents found in the bag matched the tax refund amounts on the sixteen fraudulent tax returns.
Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to IRS-CI and the Miami-Dade Police Department. The case is being prosecuted by Assistant U.S. Attorney John R. Byrne.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Jesse Lewis Detained on Charges of Violently Forcing Women to Engage in Acts of ProstitutionRead 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 Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), announce the arrest and detention of Jesse Lewis, 28, on charges of sex trafficking by force, fraud or coercion, in violation of Title 18, United States Code, Section 1591(a). These charges carry a minimum mandatory sentence of fifteen years and a possible maximum sentence of life in prison.
According to the allegations contained in the criminal complaint, Lewis met a 26 year- old victim in Tampa in June 2013 and offered her a place to live after finding out that she was homeless. After unsuccessfully trying to prostitute her in Tampa, Lewis transported the victim to Broward County where he took sexually provocative pictures of her, posted them on-line and then forced her to engage in prostitution dates with numerous men over the course of several days. Following each “date,” Lewis took all the money. According to the victim, Lewis choked her and slapped her in the face, instructing her to always look him in the eye and call him ‘Daddy.’ The victim said she had about 10 “dates” over several days, collecting between $80 and $150 per date, with all the money going to Lewis, who waited outside the hotel rooms during each sexual encounter. After approximately one week with Lewis, the victim was able to escape after Lewis fell asleep. She contacted the police who located Lewis and arrested him in June 2013 on what were originally state charges of human trafficking, forcing commercial sexual activity, procuring for prostitution another to become a prostitute, and living off the earnings of a prostitute. The federal criminal complaint and arrest warrant were issued shortly thereafter, but before Lewis could be taken into custody on the federal charges, he was transported to Miami-Dade County where he was facing charges of living off the earnings of a prostitute, stemming from a previous arrest in Miami Beach on March 14, 2013. Lewis pled guilty to the Miami charges and after his release from custody on April 2, 2014, he was arrested on the federal complaint.
During Lewis’ April 7, 2014 detention hearing, the government proffered additional testimony that Lewis forced another victim to engage in acts of prostitution in 2010. According to that victim, she met Lewis when she was unemployed and Lewis offered her a place to live. Soon thereafter, Lewis convinced her to work as an “escort” but when the victim told Lewis she did not want to engage in prostitution, Lewis beat her. When the victim tried to escape, Lewis prevented her from leaving by holding a gun to her head and threatening to carve the word “liar” into her forehead with a knife.
At the conclusion of the hearing, United States Magistrate Judge Patrick M. Hunt found that Lewis posed a serious danger to the community and ordered him detained pending trial.
Mr. Ferrer commended the investigative efforts of ICE-HSI and BSO. The case is being prosecuted by Assistant U.S. Attorney Francis Viamontes.
A complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the 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.
Coral Gables Physician Sentenced for Tax FraudRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Lourdes Margarita Garcia, 62, of Pinecrest, a Medical Doctor, was sentenced today by U.S. District Judge K. Michael Moore to 51 months in prison, followed by three years of supervised release. Garcia was previously convicted by a federal jury in Miami in January 2014, of conspiracy to defraud and to file false returns with the IRS, and of three counts of filing false returns with IRS.
According to documents filed in court, Garcia was the owner and operator of Global Medical Group, LLC, a Sub-S Corporation, or “flow-through” entity for income tax purposes, which operated a clinic in Coral Gables, and previously in Miami. The evidence presented at trial showed that Garcia, a physician assistant at the time the false returns were filed in 2007 and 2008, had originally been the subject of an IRS collection action for multiple years of back-taxes owed. During the collection case, the IRS learned that Garcia and her now deceased spouse were delinquent in filing income tax returns for the years 1997-2005. When those returns were filed in 2007, under penalties of perjury, the 1997 and 2001 through 2005 returns reported $0.00 adjusted gross income, and a 2006 amended return also filed in August 2007, reported less than $20,000 of adjusted gross income.
According to the evidence presented at trial, during a 1997 Chapter 11 bankruptcy case, Garcia filed sworn monthly reports with the Bankruptcy Court reporting $81,000 of salaries and commissions for the months of May 1997 through October 1997. Additionally, during 2001 through 2007, the clinic, Global, had steadily increased its revenues from insurance payments and patient fees, from approximately $81,000 in 2001, to approximately $1.9 million in 2006 and $1.7 in 2007, but no flow-through income from Global was reported on the 2001 through 2005 individual returns of Garcia and her spouse. Their 2006 and 2007 returns omitted approximately $400,000 of insurance payments and patient fees from Global. The evidence at trial also showed that in 2007, Garcia and her spouse purchased an approximately $2 million residence in Pinecrest, despite the $0.00 adjusted gross income reported in the 1997, and 2001 through 2005 returns, and the less than $20,000 and $30,000 of adjusted gross income reported in the 2006 and 2007 returns, respectively. Further, the evidence presented at trial showed that Garcia and her spouse conspired to defraud the IRS, by impairing, obstructing and defeating its lawful functions in the ascertainment, computation and collection of federal income taxes, including by withdrawing approximately $900,000 from bank accounts, only days before an IRS Notice of Levy attached to the accounts.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case was prosecuted by Assistant U.S. Attorneys Jose A. Bonau and Andy R. 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.
Vero Beach Resident Charged in Series of Armed RobberiesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, Deryl Loar, Indian River County Sheriff, and Ric Bradshaw, Palm Beach County Sheriff’s Office, announce that Glenn Thomas Carvajal, 34, of Vero Beach, has been charged in an indictment for two armed robberies of Treasure Coast GameStop stores. Carvajal was arraigned today before U.S. Magistrate Judge Frank J. Lynch Jr. in Ft. Pierce and is being detained, pending trial, as a risk of flight and danger to the community.
Carvajal was charged with two counts of interfering with commerce by threats or violence (robbery), in violation of Title 18, United States Code, Section 1951(a), and two counts of possessing and brandishing a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Section 924(c)(1)(A). If convicted of interfering with commerce by threats or violence (robbery), the defendant faces a possible statutory maximum sentence of up to 20 years in prison. If convicted of possessing and brandishing a firearm in furtherance of a crime of violence, the defendant faces a consecutive seven year term in prison. If convicted of the second count of possessing and brandishing a firearm in furtherance of a crime of violence, the defendant faces another consecutive 25 year term in prison.
According to documents filed in the case, Carvajal, a former GameStop manager, robbed a total of three GameStop stores, in less than two weeks. This robbery spree, which spanned three Florida counties, began on October 8, 2013, at the GameStop store located in Brevard County. On October 10, 2013, Carvajal robbed the Game Stop store located in Indian River County. Carvajal’s spree ended after the October 17, 2013 armed robbery of the GameStop store located in Palm Beach County. During each of the robberies, Carvajal wore a baseball cap and sunglasses, and handed the store clerks a note, as he brandished a handgun in his waistband. Carvajal would instruct the employees to set the store safe timer, and used a number of GameStop terms, used primarily by GameStop employees.
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, the Indian River County Sheriff’s Office, the Palm Beach County Sherriff’s Office and the Melbourne Police Department. The case was prosecuted by Assistant U.S. Attorney Carmen Lineberger.
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.
Russell Adler Pleads Guilty to Conspiracy to Violate the Federal Election Campaign ActRead 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 Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Russell S. Adler, 52, of Ft. Lauderdale, pled guilty today before United States District Judge James I. Cohn to one count of conspiracy to violate the Federal Election Campaign Act and to defraud the United States, in violation of Title 18, United States Code, Section 371. The defendant was a shareholder of the former Ft. Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA).
Sentencing is scheduled for June 27, 2014 at 9:30 a.m. in Ft. Lauderdale. At sentencing, the defendant faces a maximum statutory sentence of up to five years in prison.
In connection with his guilty plea, the defendant admitted that, in order to circumvent campaign finance laws setting limitations on the amounts which donors can contribute, RRA Chairman and CEO Scott W. Rothstein enlisted some of the attorneys and administrative personnel of RRA, and other persons associated with RRA, including Adler, to make political contributions to various political campaigns which were unlawfully reimbursed to them by RRA.
Mr. Ferrer commended the investigative efforts of the FBI and IRS-CI. 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.
Eight Defendants Charged 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, José A. Gonzalez, 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 unsealing of a twenty-two count indictment charging eight defendants with 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.
All of the defendants were charged with one count of conspiracy, in violation of Title 18, United States Code, Section 1349, and several defendants were charged individually with access device fraud, in violation of Title 18 United States Code, Sections 1029(a)(2) and 1029(a)(3), and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
The defendants charged are: Chouman Emily Syrilien, 25, of Lauderdale Lakes, Arrington Basil Segu, 28, of Miami, Carlos Antonio Alexander, 24, of Orlando, Angel Arcos, 23, of Pompano Beach, Shantegra La’Shae Godfrey, 23, of Deerfield Beach, and Monique Smith, 31, of Pompano Beach. Arcos, Godfrey and Smith had their initial appearances this morning before U.S. Magistrate Judge Alicia O. Valle. Segu had his initial appearance yesterday. Alexander is currently incarcerated. Two defendants remain at a large.
According to the indictment, Syrilien was employed by Interactive Response Technologies, lnc. (IRT) located in Margate. IRT provides staffing for call centers to handle direct sales and customer inquiries for AT&T. Syrilien unlawfully provided a co-conspirator with the personal identifying information from multiple AT&T customer files. Segu also unlawfully provided personal identifying information of numerous individuals to the co-conspirator.
Alexander, Godfrey, and Smith and 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. 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.
If convicted, the defendants each 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 each aggravated identity theft charge, at least one of which must be served consecutive to any other term in prison.
Mr. Ferrer commended the investigative efforts of IRS-CI and FBI. The case is being prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
An indictment is only an accusation and the defendants are 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.
Broward Resident Charged for Filing over $439,000 in False Claims for Income Tax RefundsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce the unsealing of an indictment charging Bradley Bowman, of Lighthouse Point, with two counts of filing false claims to the IRS, in violation of Title 18, United States Code, Sections 287 and 2.
According to court documents, Bowman engaged PMDD Services, a tax return preparation firm in Shelley, Idaho, to prepare his 2005 and 2008 Individual Income Tax Returns. Bowman claimed fraudulent tax refunds of $299,024 and $140,355 on his tax returns for the 2005 and 2008 tax years, respectively.
If convicted, the defendant faces a maximum term of five years in prison for each count.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Bertha R. Mitrani and Department of Justice Tax Division Trial Attorney Gregory P. Bailey.
An indictment is only an accusation and the defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
25 Defendants Charged in Separate Schemes That Resulted in Thousands of Identities Stolen and Millions of Dollars in Identity Theft Tax FilingsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Jose A. Gonzalez, 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, Miami Field Office, Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Max Eamiguel, Special Agent in Charge, U.S. Postal Service, Office of Inspector General (USPS-OIG), and J. Scott Dennis, Chief, North Miami Beach Police Department (NMBPD), announce the filing of federal charges against 25 defendants in 19 separate cases, dealing with thousands of stolen identities and millions of dollars of fraudulent identity theft tax filings. Today’s cases reaffirm the joint federal and local commitment to crack-down on stolen identity tax refund fraud (SIRF) perpetrators.
According to the Federal Trade Commission, Florida had the highest rate of identity theft in the United States in 2013. While identity theft in Florida ranks highest in the United States, the identity theft rate in Miami has reached near epidemic proportions. Florida’s rate of 192.9 complaints per 100,000 residents – the highest in the United States – is dwarfed by the Miami rate of 340.4 complaints per 100,000 residents.
In an attempt to combat the rising wave of stolen identity tax refund scams, and armed with recent directives from the Department of Justice’s Tax Division, making prosecutions faster and easier, the U.S. Attorney’s Office for the Southern District of Florida established the South Florida Identity Theft Tax Fraud Strike Force (Strike Force) in August 2012.
The members of the Strike Force, and participating agencies, include the United States Attorney’s Office, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, Federal Bureau of Investigation (FBI), Miami Field Office, U.S. Secret Service, U.S. Postal Inspection Service (USPIS), Miami Division, Social Security Administration, Office of Inspector General (SSA-OIG), Aventura Police Department, North Miami Beach Police Department, Miami-Dade Police Department, Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), Miami Field Office, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, Town of Davie Police Department, Florida Highway Patrol, Lee County Sheriff’s Office, Broward Sheriff’s Office (BSO), Ft. Lauderdale Police Department, Coconut Creek Police Department, Sunrise Police Department, Coral Springs Police Department, Miramar Police Department and North Miami Police Department.
Since the inception of the Strike Force, we have charged 296 defendants responsible for approximately $485.5 million in intended stolen identity refund fraud loss and in excess of $106 million in actual SIRF fraud loss.
The U.S. Attorney’s Office and the IRS have also attacked this problem at its root by revoking so called “electronic filing identity numbers” or EFIN numbers, which allow individuals to file tax returns on behalf of others. Before revoking these EFIN numbers, SIRF fraudsters had used them to file 166,495 fraudulent tax refund claims over the past two years.
United States Attorney Wifredo A. Ferrer stated, “The number of stolen identities and the dollar amount of the tax fraud involved in these cases is staggering. These cases serve as a reminder that each and every one of us is a potential victim. While we have a talented and effective team dedicated to fight this fraud, we need everyone – both taxpayers and institutions – to remain vigilant in safeguarding personal identifying information. Protect it as if it were a trade secret.”
IRS Special Agent in Charge José A. Gonzalez stated, “Today’s announcement should send a message to those who might consider disguising themselves as legitimate tax return preparers or Electronic Filing Identification Number (EFIN) holders for the purpose of submitting false claims with the IRS. Protecting the integrity of our U.S. tax system is essential, therefore, those who chose to corrupt this system will be investigated and brought to justice, regardless of their level of participation in the fraud.”
“Criminals all over South Florida are turning to computers to make an easy buck at the public’s expense,” said George L. Piro, Special Agent in Charge, FBI Miami. “Identity theft, the fastest growing crime here, is as easy as one, two, three. One, criminals steal someone’s name and social security number; two, they use that identity to file a fraudulent tax return on line; and three, they collect the refund check. Repeat thousands of times. Don’t become a victim, learn how you can protect your personal identifying information from these thieves at FBI.GOV or FTC.GOV.”
U.S. Secret Service Special Agent in Charge Paula Reid added, “Once again, the U.S. Secret Service is glad to be an integral part of combatting this massive fraudulent scheme that is plaguing South Florida. Together, we will continue to identify and penalize those who misuse our government systems with no regard to the financial and unjust impacts they cause on others.”
Ronald Verrochio, Inspector in Charge for Postal Inspection Service stated, “Tax return fraud directly affects millions of Americans each year and indirectly affects every tax payer throughout the country, we are committed to working with our law enforcement partners to combat this problem.”
Alysa D. Erichs, Special Agent in Charge for ICE-HSI stated, “Homeland Security Investigations utilizes its vast authorities to work with their partners to disrupt and dismantle criminal organizations involved in tax refund fraud schemes and other financial violations that affect our citizens and economy.”
“U.S. Postal Service employees are honest, hardworking, and trustworthy, but when a Postal Service employee engages in criminal activity, our Special Agents will investigate those matters vigorously, as we did in this case,” says Max Eamiguel, Special Agent in Charge, U.S. Postal Service, Office of Inspector General.
Today, U.S. Attorney Ferrer, joined by members of the Strike Force, announce the most recent results of their investigative efforts. The cases announced today include:
- United States v. Rhim-Grant, et al., Case No. 14-20181-Cr-Lenard. United States v. Nydia Tanay Laron Nelson, Case No. 14-2375-mj-Goodman
On March 21, 2014, Pamela Rhim-Grant, 40, and Eugene Moss, 33, both of Miami, were charged by information in a scheme to steal identities for the purpose of conducting stolen identity fraud. On April 1, 2014, Nydia Tanay Laron Nelson, 30, of Miami, was charged by criminal complaint in connection with the same scheme.
According to the criminal complaint, the defendants conspired to steal the identities of Miami-Dade Public Schools students by exploiting Rhim-Grant’s access to the student information computer database as a food service manager at Horace Mann Middle School. Over the course of more than a year approximately 400 student identities were stolen from across the Miami-Dade County Public Schools district, resulting in numerous fraudulent tax returns.
The information and complaint charge the defendants with conspiracy to commit computer fraud and aggravated identity theft.
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 Maderal.
- United States v. Marlon Maikel Palacios, Case No. 14-20121-Cr-Cooke
On February 28, 2014, Marlon Maikel Palacios, 38, of North Miami, was charged in a twelve count indictment for his participation in a conspiracy to defraud the government and mail theft.
According to the indictment, the defendant, a former [effective 3/28/2014] mail carrier for the U.S. Postal Service, provided to his co-conspirators addresses on his mail routes used with filing false tax returns with the IRS, receiving IRS correspondence, and tax refund checks. The defendant would then identify and pull the IRS correspondence and refund checks, for which the defendant would be paid. With the IRS correspondence, the defendant’s co-conspirators would file false, fictitious, and fraudulent federal income tax returns and thereafter claim refunds to which they were not entitled from the IRS.
The indictment charges the defendant with conspiracy to defraud the government with respect to federal income tax refunds and theft of mail by a postal employee.
Mr. Ferrer commended the investigative efforts of the USPS-OIG, USPIS, ICE-HSI, and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Andy R. Camacho.
- United States v. Rodelyn Lamour and Nestor Armando Herrera, Case No. 14-20169-Cr-Martinez
On March 14, 2014, Rodelyn Lamour, 26, and Nestor Armando Ficquire Herrera, 22, of Miami, were charged in a seven count indictment for their participation in a conspiracy to steal mail and a stolen identity tax refund scheme.
According to the indictment, the defendants used a stolen postal service key to open various apartment complex mailboxes and steal mail containing debit cards. The debit cards contained refunds from fraudulent federal income tax returns filed using stolen identities. The defendants then used the stolen debit cards to obtain cash, without the knowledge or authorization of the identity theft victims. The intended loss to the IRS was approximately $39,000.
The indictment charges the defendants with conspiracy, theft of mail, use of a postal service key, unauthorized use of personal identification information, and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of USPIS. The case is being prosecuted by Assistant U.S. Attorney Vanessa Snyder.
- United States v. Paul Evans Auguste, Case No. 14-80087-Cr-Scola
On February 12, 2014, Paul Evans Auguste, 30, of Miami, was charged in a seven-count indictment for his participation in a stolen identity tax refund scheme.
According to the criminal complaint, Auguste sold approximately 260 stolen identities to an undercover law enforcement officer and stated that he could provide the undercover law enforcement officer any types of identities he would want, including those of children and the elderly. Auguste also stated his intention to conduct tax fraud with the multitude of stolen identities he maintained at his residence. Law enforcement obtained a federal search warrant for Auguste’s residence which revealed an additional 1,200 stolen identities in his possession.
The defendant was charged with access device fraud and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of ICE-HSI and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Frank Maderal.
- United States v. Freddie Howard, Case No. 14-60068-Cr-Rosenbaum
On April 1, 2014, Freddie Howard, 56, of Davie, was charged in a one-count information in a stolen identity refund fraud scheme that involved the submission of approximately $22 million in fraudulent refund claims.
According to the information, Howard operated a tax preparation business called QTS1, Inc. (Quality Tax Service) in Broward County. Howard prepared false and fraudulent tax returns using the identity information of willing participants and stolen identity information. Howard used false and fictitious income and withholding tax information on the returns submitted to the IRS to justify fraudulent large-dollar refund requests. The requested refund amounts generally ranged from $60,000 to $1,400,000, and Howard typically requested payment of these refunds via U.S. Treasury tax refund check. To conceal his identity, Howard submitted the tax returns to the IRS by mail and did not include preparer information. Howard also blocked out the tax preparer software information, and used other people to contact the IRS to inquire about the status of the fraudulent returns.
According to the information, Freddie Howard submitted over $22 million in false and fraudulent tax refund claims to the IRS. The IRS paid approximately $4.5 million on these refund requests.
The defendant was charged with access device fraud and identity theft.
Mr. Ferrer commended the investigative efforts of the Strike Force, with special commendation to the FBI and IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
- United States v. Anthony A. Pace, Jr., et al., Case No. 14-20101-Cr-Moore/Torres
On February 18, 2014, Anthony A. Pace, Jr., 29, Brandon A. Terry, 29, Derel L. Henry, 39, and Rosa Johnson, 26, all of Miami, were charged in a twenty-three count indictment for their participation in a $3.3 million stolen identity tax refund scheme.
According to the indictment, the defendants obtained personal identifying information, including names, dates of birth and Social Security numbers, of hundreds of identity theft victims, for use in this identity theft tax fraud scheme. The defendants used this stolen personal identity information, including personal identity information of former and current inmates of the Miami-Dade Corrections and Rehabilitation Program, to file false and fraudulent federal income tax returns without their victims’ knowledge and authorization. Based on Internet Protocal data and a unique tax filing number issued by the IRS called an EFIN, each of the defendants filed false and fraudulent tax returns using stolen identities and directed the IRS to deposit the funds into bank accounts and onto debit cards accessible to the members of the scheme.
According to disclosures at bond hearings, Anthony A. Pace, Jr. was employed as a correctional officer with the Miami-Dade Corrections and Rehabilitation Program. False and fraudulent tax returns were filed in the names of former and current prisoners using an EFIN associated with defendant Pace. These same tax filings directed payment of the illicit tax refund proceeds into accounts controlled by Pace and Johnson. ATM video reveals that Pace was withdrawing funds from the accounts into which the illicit funds were deposited.
The indictment charges all of the defendants with conspiracy to make false claims, in violation of 18 U.S.C. ' 286 and aggravated identity theft, in violation of 18 U.S.C. ' 1028A, defendants Brandon Terry and Derel Henry with access device fraud, in violation of 18 U.S.C. ' 1029, and defendants Anthony Pace and Rosa Johnson with theft of government property, in violation of 18 U.S.C. ' 641.
Mr. Ferrer commended the investigative efforts of IRS-CI, FBI and USSS. The case is being prosecuted by Assistant U.S. Attorney Peter A. Forand.
- United States v. Judes Stanley Celestin, Case No. 13-60243-Cr-Scola
On September 27, 2013, Judes Stanely Celestin, 36, of Hallandale Beach, was charged in a sixteen-count indictment in a stolen identity refund fraud scheme that resulted in the submission of approximately $1 million in fraudulent refund claims.
According to the indictment, Celestin set up Florida corporations (JC Easy Tax and Taxes on Time) with himself as the president and then opened up bank accounts at numerous different banks from 2010 through 2012 in the name of these corporations. Celestin subsequently caused false and fraudulent tax returns to be filed with the IRS in the names of individuals without these individuals’ knowledge or authority. In total, Celestin caused approximately $1 million dollars in tax refund monies to be direct deposited to these bank accounts and related bank accounts from 2010 through 2012 and then withdrew the money for his own personal use.
The defendant was charged with wire fraud and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the Strike Force, with special commendation to IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
- United States v. Karl Moltimer, Case No. 14-20117-Cr-Altonaga
On February 27, 2014, Karl Moltimer, 34, of Miami, was charged in a fourteen-count indictment in a stolen identity tax refund fraud scheme that resulted in the submission of over $1 million in fraudulent refund claims.
According to the indictment, Moltimer obtained EFIN numbers that permitted him to file tax returns in the names of other persons. Moltimer opened bank accounts for himself and his business name. Moltimer, through his EFINs, caused false and fraudulent tax returns seeking refunds to be filed with the IRS using stolen individuals’ personal identity information. Moltimer caused the fraudulently obtained tax refunds to be either deposited into bank accounts controlled by him, paid via refund anticipation checks controlled by him, or paid via pre-paid debit cards controlled by him. Moltimer caused over one million dollars in false and fraudulent tax refund claims to be submitted to the IRS from 2009 through 2012 through his EFINs.
The defendant was charged with wire fraud and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the Strike Force, with special commendation to IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
- United States v. Marlon Hamilton, Case No. 14-20175-Cr-Moreno
On March 18, 2014, Marlon Hamilton, 40, of Hialeah, was charged in a six count indictment for his participation in a stolen identity tax refund scheme.
According to the indictment, the defendant obtained and sold the personal identifying information of numerous identity theft victims, including their names, dates of birth, and social security numbers, to an individual who intended to utilize the information to electronically file false, fictitious, and fraudulent federal income tax returns without the knowledge or authorization of the identity theft victims, and thereafter claim refunds to which they were not entitled from the IRS. The intended loss to the IRS was approximately $190,000. The indictment charges the defendant with unauthorized possession of personal identification information and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the FBI. The case is being prosecuted by Assistant U.S. Attorney Vanessa Snyder.
- United States v. Marcus Braxton, Case No. 14-20174-Cr-Ungaro
On March 18, 2014, Marcus Braxton, 29, of Plantation, was charged in a six count indictment for his participation in a stolen identity tax refund scheme.
According to the indictment, the defendant obtained and sold the personal identifying information of numerous identity theft victims, including their names, dates of birth, and social security numbers, to an individual who intended to utilize the information to electronically file false, fictitious, and fraudulent federal income tax returns without the knowledge or authorization of the identity theft victims, and thereafter claim refunds to which they were not entitled from the IRS. The intended loss to the IRS was approximately $58,500.
The indictment charges the defendant with unauthorized possession of personal identification information and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the FBI. The case is being prosecuted by Assistant U.S. Attorney Vanessa Snyder.
- United States v. Richard Anthony Siler, Case No. 14-20116-Cr-Williams
On February 27, 2014, Richard Anthony Siler, 50, of Hollywood, was charged in a nine-count indictment in a stolen identity refund fraud scheme that involved the sale of over 5,000 people’s identities.
According to the indictment and other documents filed in court, Siler discussed selling approximately 10,000 to 15,000 identities to a confidential source who told Siler that the identities would be used to file taxes. Siler indicated to the confidential source that these identities were “never revealed before.” Siler discussed selling the 10,000 to 15,000 identities to the confidential source for approximately $6,200. On February 14, 2014, an FBI controlled e-mail account received an e-mail from Richard Siler containing approximately 5,200 individuals’ personal identifying information that appeared to be patients. On that same date, the confidential source provided Siler with $6,200 in currency and Siler was arrested.
The defendant was charged with access device fraud and identity theft.
Mr. Ferrer commended the investigative efforts of the Strike Force, with special commendation to the FBI and IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
- United States v. Giovanni Francois Noel, Case No. 14-20198-Cr-Moore
On March 28, 2014, Giovanni Francois Noel, 24, of North Miami Beach, was charged in an eight count indictment for his participation in an identity theft tax refund scheme.
According to the indictment, the defendant possessed the social security numbers of at least fifteen individuals. The indictment also alleges that the defendant stole the means of identification, specifically, the name and date of birth, of seven individuals.
Mr. Ferrer commended the investigative efforts of the Strike Force, with special commendation to the IRS-CI and the NMBPD. The case is being prosecuted by Assistant U.S. Attorney John R. Byrne.
- United States v. Wallens B. Alcime, Case No. 14-02372-mj-Goodman
On April 1, 2014, Wallens B. Alcime, 26, of Miami, was charged by criminal complaint for his participation in a stolen identity tax refund scheme.
According to the criminal complaint, a confidential source informed law enforcement that Alcime was using the mailing addresses of accomplices to receive stolen identity tax refunds deposited onto pre-paid debit cards. A controlled delivery was arranged where Alcime took possession of a debit card loaded with stolen identity tax refunds while under law enforcement surveillance. Alcime was later captured on surveillance video making cash withdrawals from the debit card.
The defendant was charged with access device fraud and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the FBI and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Frank Maderal.
- United States v. Steven Toussaint, et al., Case No. 14-20161-Cr-Martinez
On March 14, 2014, Steven Toussaint, 32, and Emmanuel Alphonse, 28, both of Miami, were charged by indictment in a scheme to launder money from stolen identity tax refund fraud.
According to the indictment, the defendants conspired to conduct financial transactions the purpose of which was to conceal the proceeds of theft from the government. Each defendant is also charged with ten counts of money laundering connected to individual money orders cashed on various dates alleged in the indictment.
The complaint charges the defendants with conspiracy to commit money laundering and money laundering.
Mr. Ferrer commended the investigative efforts of USPIS and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Frank Maderal.
- United States v. Mark Anthony Dacres, Jr., Case No. 14-20204-Cr-Ungaro
On April 1, 2014, Mark Anthony Dacres, Jr., 30, of Homestead, was charged in a seven-count indictment for identity theft in connection with his unauthorized possession of at least fifteen social security numbers belonging to other individuals. Dacres was found with over 1,700 names, dates of birth and social security numbers of other individuals.
Mr. Ferrer commended the investigative efforts of the Strike Force, with special commendation to IRS-CI and USSS. The case is being prosecuted by Assistant U.S. Attorney Gera Peoples.
- United States v. Providencia Llanos, Case No. 14-20205-Cr-Lenard
On April 1, 2014, Providencia Llanos, a/k/a “Providensia Llanos,” a/k/a “Providencia Allison,” 36, of Miami Gardens was charged in a seven-count indictment for identity theft in connection with her unauthorized possession of at least fifteen social security numbers belonging to other individuals. Llanos was found with over 3,000 names, dates of birth and social security numbers of other individuals.
Mr. Ferrer commended the investigative efforts of the Strike Force, with special commendation to IRS-CI and USSS. The case is being prosecuted by Assistant U.S. Attorney Gera Peoples.
- United States v. Stevens Nore, Case No. 14-14016-Cr-Middlebrooks
On March 24, 2014, Stevens Nore, 35, of Port St. Lucie, was charged in a twenty-eight count indictment for his participation in tax fraud and identity theft schemes.
According to the indictment, from June 11, 2009 through April 2012, Nore owned and operated Fraternity Tax and Services, a tax return preparation business located in Fort Pierce. Nore prepared and submitted Individual Tax Returns (Forms 1040), with accompanying schedules, to the IRS on behalf of taxpayers claiming false deductions and credits for tax years 2009 to 2011. Nore also filed false tax returns for 2010 and 2011 by falsely stating the amount of gross receipts and sales on Schedule C forms. The defendant stole three tax refunds totaling $26,349.30 to which he was not entitled, and used the identity of two individuals without their permission.
Nore was charged with twenty-one counts of preparing false tax returns, two counts of filing false tax returns, three counts of theft of public money, and two counts of aggravated identity theft.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Shaniek Maynard.
- United States v. Rony Maurival, Case No. 14-14014-Cr-Middlebrooks
On March 24, 2014, Rony Maurical, 38, of Port St. Lucie, was charged in fifty-two count indictment for his participation in tax fraud and identity theft schemes.
According to the indictment, from July 3, 2008 through March 23, 2012, Maurival owned and operated RJ’s Tax & Services, a tax return preparation business located in Fort Pierce. Maurival prepared and submitted Individual Tax Returns (Forms 1040), with accompanying schedules, to the IRS on behalf of taxpayers claiming false deductions and credits for tax years 2008 to 2011. Maurival also filed false tax returns for 2009 and 2010 by falsely claiming Head of Household and falsely stating Schedule C income, gross receipts, and sales. The defendant stole three tax refunds totaling $3,292 to which he was not entitled, and used the identity of three individuals without their permission.
Maurival was charged with forty-four counts of preparing false tax returns, two counts of filing false tax returns, three counts of theft of public money, and three counts of aggravated identity theft.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Russell R. Killinger.
If convicted, the defendants face a possible maximum statutory sentence of twenty years in prison for each count of wire fraud; ten years in prison for conspiracy to make false claims against the United States; five to fifteen years in prison for access device fraud; ten years in prison for stealing government funds; and two years in prison consecutive to any other term for aggravated identity theft.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Mutual Benefits Corporation Trustee Sentenced to Ten Years for His Role in $1 Billion MBC SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Anthony Livoti, Jr., 65, of Fort Lauderdale, was sentenced today in Miami by U.S. District Judge Robert N. Scola, Jr. to ten years in prison. Livoti was also ordered to pay over $800 million in restitution to fraud victims.
Livoti was convicted after nearly a three-month trial by a Miami federal jury of conspiracy to commit wire and mail fraud, conspiracy to commit money laundering, and mail fraud, in violation of 18 U.S.C. ' 1349, 1956(h), and 1341, respectively. The verdict was the result of Livoti’s participation in a scheme to defraud approximately 30,000 victims who invested in the viatical and life settlement company Mutual Benefits Corp. (MBC). According to the indictment, Livoti and others, including Joel Steinger, a/k/a “Joel Steiner,” Steven Steiner a/k/a Steven Steinger, and Michael McNerney, raised more than $1.25 billion from these investor-victims before being shut down by federal regulators in May 2004. Steven Steiner received a fifteen-year sentence and Joel Steinger, who recently pled guilty, is scheduled to be sentenced by U.S. District Judge Scola on June 6, 2014.
According to the evidence presented at trial, from approximately 1994 to May 2004, MBC purchased life insurance policies from the elderly, as well as persons suffering from AIDS and other chronic illnesses. Thereafter, MBC sold fractionalized interests in insurance policy death benefits, known as “viatical settlements,” to approximately 30,000 investor-victims. MBC told investors that its viatical settlements offered a fixed rate of return with low risk, and that investors’ principal and returns were paid by the insurance companies. Evidence presented at trial established that MBC misrepresented many important facts relating to its viatical settlements, including, for example, the estimated life expectancies of the insured persons, MBC’s fraudulent methods used to acquire life insurance policies, the risks associated with certain policies, the payment of premiums, and the source of funds used to pay investors.
Anthony Livoti, Jr., an attorney licensed by the State of Florida, was MBC’s premium trustee, and as a result was entrusted with millions of dollars of investor money placed in bank accounts under his control. Livoti was also the designated “trustee” of thousands of the insurance policies sold by MBC. Evidence showed that Livoti assisted MBC with the marketing of its fraudulent investment by meeting with investors in his Fort Lauderdale law office and encouraging them to purchase MBC investments.
Witnesses testified that new investor money was regularly used to pay premiums on life insurance policies purchased by earlier investors and to pay investors who requested their money back. In Ponzi-like fashion, Livoti and his co-conspirators were using new investor money to pay for earlier investor obligations. As the fraud continued, eventually investor money was required to prevent the MBC Ponzi from collapsing. Ultimately, investors lost more than $800 million.
Mr. Ferrer commended the investigative efforts of the FBI and the Miami Regional Office of the Securities and Exchange Commission, which previously brought a civil action against MBC and its principals. This case was tried by Assistant U.S. Attorneys Karen Rochlin and Roger Cruz.
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.
Defendants Plead Guilty to Tax Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Scarlet Veres, and Steven M. Veres, III, both of Clermont, formerly of Broward County, pled guilty today before U.S. District Judge Robert N. Scola, Jr. for their participation in a scheme to evade paying taxes on income received through their construction company following the 2004 and 2005 hurricanes.
Scarlet and Steven Veres each pled guilty to one count of conspiracy to defraud the United States, in violation of Title 18, United States Code, Section 371. At sentencing, the defendants face up to five years in prison and a fine of up to $250,000.
According to court documents, Scarlet Veres and Steven M. Veres III, who was then a licensed general contractor, were the sole shareholders of Superior Contracting, Inc., a Broward County-based construction company. In 2005, Superior Contracting, Inc. received millions of dollars from contracts to make hurricane-related repairs, including a contract to make repairs at a condominium development in Fort Pierce. During 2005, the defendants diverted corporate receipts of Superior Contracting, Inc. for their own use. In order to conceal their diversion of corporate funds, the defendants falsified the profit and loss statement of Superior Contracting, Inc. by characterizing personal expenses, including the purchase of property in Parkland, the construction of their personal residence on the Parkland property, the purchase of a residence in Osceola County, and a $550,000 personal real estate investment as business expenses. The defendants further falsified the profit and loss statement by claiming that a $400,000 personal real estate investment was a repayment of a fictitious loan previously made to Superior Construction, Inc. Pursuant to their plea agreements, the defendants agreed to pay restitution to the Internal Revenue Service in the amount of $600,000.
Mr. Ferrer commended the investigative efforts of the IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Stephanie Evans.
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.
Sixth Defendant Pleads Guilty in Plot to Rob Florida PNC Banks at GunpointRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, John A. Bolduc, Chief, Port St. Lucie Police Department, Ken J. Mascara, St. Lucie County Sheriff’s Office, Sean Baldwin Chief, Ft. Pierce Police Department, J. Michelle Morris, Chief, Sebastian Police Department, Deryl Loar, Sheriff, Indian River Sheriff’s Office, announce that Joe JR Desilien, 24, of West Palm Beach, pled guilty yesterday to conspiracy to interfere with commerce by robbery, in violation of Title 18, United States Code, Section 1951(a); interfering with commerce by robbery, in violation of Title 18, United States Code, Sections 1951(a) and 2; and, using and carrying a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Sections 924(c)(1)(A)(ii)and 2. Sentencing has been set for July 14, 2014 before U.S. District Judge Jose E. Martinez, in Ft. Pierce.
At sentencing, Desilien faces up to 20 years in prison, followed by a term of supervised release of up to five years and a fine of up to $250,000 for the conspiracy to interfere with commerce by robbery charge, and for the interfering with commerce by robbery charge; and, a mandatory minimum of seven years, consecutive to any sentence imposed, and may impose a statutory maximum term of life imprisonment, followed by a term of supervised release of up to five years and a fine of up to $250,000 for the charge of using and carrying a firearm in furtherance of a crime of violence.
According to court documents, between June 8, 2013 and July 8, 2013, employees of five PNC bank branches, located in the counties of Indian River, Volusia, Hillsborough, and St. Lucie Counties, were robbed at gunpoint by three black males, whose faces were covered, wearing gloves. In all of the robberies, one male would brandish a handgun, and two males would jump the tellers’ counters demanding money.
On June 20, 2013, at approximately 9:50 a.m., three black males entered the PNC Bank, at 1090 Dunlawton Avenue, Port Orange, Volusia County, Florida with faces covered and wearing gloves. One male brandished a firearm at bank employees, two jumped the teller counters, and demanded and took United States currency. The three males were picked up by a fourth, driving a stolen Blue Jeep, which was found abandoned nearby. Anthony Isaac Johnson, Paul Edward Moore, and Alan Demetrius Bradford remained in cellular phone contact with one another before and after the robbery.
On July 1, 2013, at approximately 9:50 a.m., three black males entered the PNC Bank, at 12951 Dale Mabry Highway, Tampa, Hillsborough County, Florida, with faces covered, wearing gloves. One male brandished a firearm at the bank employees and two males jumped the teller counters, with another remaining in the lobby area. They demanded and took United States currency. The three males fled the bank in a stolen Dodge Intrepid. While in the area of the PNC bank and the site the vehicle was stolen, Raven Simone Sayers and Bradford remained in cellular phone contact with each other. The stolen vehicle was abandoned in a housing development near the PNC bank. On this date, Sayers was in possession of a leased vehicle.
According to court documents, during the night of July 7, 2013, into the early morning hours of July 8, 2013, Sayers, Ivory Lee Robinson, Tomaleesha Jeffie Laqua McKeliver, Moore, Desilien, Herbert Lenorris Smith, Jr., Johnson, and Bradford, planned and agreed to rob two St. Lucie County PNC banks at gun point. In order to carry out the two robberies, the group separated into two teams. The plan was for each team to have a female as a getaway driver and three males. Sayers and McKeliver agreed to be the robbery getaway drivers. Each team would steal a van, rob each of the banks at gunpoint, with their faces covered, leave the bank in the van, and transfer into the getaway vehicles, in order to flee the area. Sayers and McKeliver drove rental cars. The two teams travelled from Palm Beach County to St. Lucie County in the two rented cars. While en route, the two teams remained in cellular phone contact with one another. Once in St. Lucie County, the teams scouted PNC Banks and escape routes and stole two vans in Ft. Pierce for use in the two bank robberies.
Later on July 8, 2013, between 9:00 and 9:30 a.m., St Lucie County PNC Banks located at 5493 NW St. James Drive, Port St. Lucie, and 4156 Okeechobee Road, Fort Pierce, were robbed at gunpoint, almost simultaneously. After the Ft. Pierce and Port St. Lucie PNC bank robberies, McKeliver, Johnson, Robinson and Bradford were arrested after a police pursuit, and Moore was arrested near the bank. Law enforcement eventually identified, located, arrested and charged Sayers, Smith, and Desilien, who escaped back to Palm Beach County.
Previously sentenced in this case were Robinson, 22, and McKeliver, 22, both of West Palm Beach, by U.S. District Judge Donald L. Graham. Robinson, a career offender, was sentenced to 262 months in prison, followed by five years of supervised release on February 27, 2014; McKeliver was sentenced to 102 months in prison, followed by three years of supervised release on December 16, 2013. Sayers, 23, of Hallandale, was sentenced by U.S. District Judge Jose E. Martinez to 162 months in prison, followed by three years of supervised release on March 11, 2014.
Smith pled guilty on January 29, 2014 to two counts of interference with commerce by robbery (Hobbs Act), in violation of Title 18, United States Code, Section 1951(a) and 2, and one count of using and carrying a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Section 924(c)(1)(A)(ii)and 2. Sentencing for Smith has been set for May 21, 2014 before U.S. District Judge Jose E. Martinez in Ft. Pierce.
Bradford pled guilty on February 4, 2014 to conspiracy to interfere with commerce by robbery, in violation of Title 18, United States Code, Section 1951(a); two counts of interfering with commerce by robbery, in violation of Title 18, United States Code, Sections 1951(a) and 2; two counts of using and carrying a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Sections 924(c)(1)(A)(ii)and 2; and, felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 2. Sentencing for Bradford has been set for May 22, 2014 before U.S. District Judge Jose E. Martinez in Ft. Pierce.
A jury trial for the remaining defendants, Moore and Johnson, is set for May 19, 2014 before U.S. District Judge Jose E. Martinez in Ft. Pierce.
Mr. Ferrer commended the investigative efforts of the FBI, Port St. Lucie Police Department, Ft. Pierce Police Department, Sebastian Police Department, St. Lucie County Sheriff’s Office, Indian River Sheriff’s Office, Palm Beach County Sheriff’s Office, Port Orange Police Department, and Hillsborough County Sheriff’s Office for their work on this case. The case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Man Pleads Guilty in Juno Beach Endangered Sea Turtle Egg Taking CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and William H. Calvert, Supervisory Law Enforcement Officer, United States Fish & Wildlife Service, West Palm Beach, announce that Kenneth Cornelius Coleman, 52, of Riviera Beach, entered a guilty plea today before U.S. District Judge William Zloch to one count of unlawfully transporting endangered sea turtle eggs in violation of the Lacey Act, 16 U.S.C. §3372. Sea turtle eggs are protected under the Endangered Species Act, 16 U.S.C. §1538. At sentencing, Coleman faces up to five years in federal prison, a $250,000 fine and up to three years of supervised release.
According to the Information and other court documents, on July 3, 2013, Loggerhead Marine Life Center beach/sea turtle surveyors discovered disturbed sea turtle nests in the area of the beach crossover at 840 Ocean Drive in Juno Beach. Nearby, a trail of six sea turtle eggs were found in the sand. Probing marks were visible in the disturbed nests.
Juno Beach Police officers responded. At the beach crossover near 840 Ocean Drive, officers found a wooden stick that appeared to have been used to probe the turtle nests, as well as three canvas bags. A blue bag with the name Celtic Tours was discovered and found to contain 213 sea turtle eggs. DNA analysis of this bag concluded that the DNA profile previously obtained from Kenneth C. Coleman matched the DNA on the bag.
Experts at the Loggerhead Marine Life Center, including biologist and sea turtle expert Kelly Martin, found that one of the nests disturbed on July 3, 2013 was a Green Sea Turtle nest (endangered species), and the other three were Loggerhead Sea Turtle nests (threatened species), both species are protected under Federal Law. The total of 219 sea turtle eggs were reburied in an attempt to allow them to continue to mature and to hatch.
On July 4, 2013, four more sea turtle nests were found to have been disturbed and to be missing turtle eggs: three Loggerhead Sea Turtle nests and one Green Sea Turtle nest. These were in the area of the beach crossover near 70 Celestial Way in Juno Beach, not far from the disturbed nests from the day before. Also near that location, Juno Beach police officers discovered a backpack which contained 97 sea turtle eggs. These eggs were reburied as well. Coleman was later contacted on the beach near where these nests were disturbed. Officers detained him on suspicion of sea turtle egg poaching at which point Coleman spontaneously stated, “I don’t know nothing about no turtle eggs.”
Biologist Kelly Martin examined the eggs and confirmed that the 219 eggs found on July 13, 2013 and the 97 eggs found on July 4, 2013 were in fact sea turtle eggs. Because sea turtle eggs are illegal contraband, it is very difficult to establish a precise market value for the eggs. However, based upon research done by the Fish and Wildlife Service, the retail black market value of the sea turtle eggs in this area is estimated to be approximately $3.00 per egg, and in some cases as much as $5.00 per egg. For the 316 sea turtle eggs found in this case, the total value is estimated to be between $948 and $1,580. This value is therefore more than $350.00.
Coleman was previously charged and pled guilty to violating the Lacey Act by transporting endangered sea turtle eggs in 2010 in Case No. 10-80124-CR-Ryskamp. He was sentenced to 30 months in prison in that case.
U.S. Attorney Ferrer commended the U.S. Fish & Wildlife Service, the Juno Beach Police Department and the Florida Fish & Wildlife Conservation Commission for their work in the case. This case is being prosecuted by Assistant U.S. Attorney Lauren Jorgensen.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Mutual Benefits Corporation Head Convicted for His Role in $1 Billion MBC SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (“FBI”), announce that defendant Joel Steinger, a/k/a “Joel Steiner,” (“Steinger”) pled guilty before U.S. District Judge Robert N. Scola, Jr. to conspiracy to commit mail and wire fraud, in violation of 18 U.S.C. §1349, as a result of his scheme to defraud investors in Mutual Benefits Corporation (“MBC”), which marketed viatical and life settlements.
Steinger is the final defendant to be convicted out of 13 charged as a result of the MBC scheme, which defrauded approximately 30,000 victims. As the de facto head of MBC, Steinger, along with conspirators Steven Steiner, a/k/a Steven Steinger, Michael McNerney, and Anthony M. Livoti, Jr., Esq., along with others, raised more than $1.25 billion from investors before being shut down by federal regulators in May 2004. By the time charges were filed in December, 2009, investor losses were estimated to amount to more than $800 million. Steinger is scheduled to be sentenced by U.S. District Judge Robert N. Scola, Jr. on June 6, 2014.
According to the evidence presented in a related trial and summarized during Steinger’s guilty plea, from approximately 1994 to May 2004, MBC purchased life insurance policies from persons suffering from AIDS, the chronically ill, and elderly persons. Having purchased the life insurance policies, MBC sold fractionalized interests in insurance policy death benefits, known as “viatical settlements,” to approximately 30,000 investors. MBC solicited the investments through an international network of sales agents. In promotional materials, MBC told investors that its viatical settlements offered a fixed rate of return with low risk, and that investors’ principal and returns were paid by the insurance companies. Under Steinger’s direction, MBC misrepresented various important facts relating to its viatical settlements, including, for example, the estimated life expectancies of the insured persons, the supposedly independent role of doctors determining those life expectancies, MBC’s fraudulent methods used to acquire life insurance policies, the risks associated with certain policies, the payment of premiums, and the source of funds used to pay investors.
Steinger, already a convicted felon at the time of the MBC fraud, hid behind a figurehead company president to conceal a criminal and disciplinary history that otherwise would have prevented the company from obtaining a license to conduct business in Florida and elsewhere.
Evidence supporting his guilty plea also established that new investor money was used to pay premiums on life insurance policies purchased by earlier investors and to pay investors who requested their money back. In essence, the evidence demonstrated that Steinger and his co-conspirators were operating a Ponzi-like scheme, using new investor money to pay for earlier investor obligations, and that money from new investors was continuously required to prevent the MBC Ponzi-scheme from collapsing, which, ultimately, it did.
Co-defendant Steiner was also a founding principal of MBC, was actively involved in MBC’s marketing and promotional activities, and encouraged investors to buy MBC’s investments. On September 3, 2013, Steiner pled guilty to charges in the same case. Steiner was also found guilty by a federal jury in a related case, United States v. Steven Steiner, No. 11-20578-CR-Williams in connection with money laundering and obstruction of justice related to the use and concealment of more than $15 million dollars in proceeds derived from the MBC fraud. Steiner was sentenced to a total of 15 years in prison.
Co-defendant McNerney, an attorney licensed by the State of Florida, assisted MBC with the marketing of its fraudulent investment by meeting with investors in his Fort Lauderdale law offices and encouraging them to purchase MBC investments. McNerney pled guilty in this case and was sentenced to five years in prison for his criminal conduct.
Co-defendant Livoti, Jr. was convicted for his role in the MBC fraud on December 4, 2013 after a jury trial. Livoti’s sentencing is set for April 1, 2014 before U.S. District Judge Robert N. Scola, Jr.
United States Attorney Wifredo A. Ferrer stated, “I am pleased to announce the guilty plea of Joel Steinger, who led one of the largest investment schemes in South Florida’s history. For a decade, Steinger and his co-defendants victimized approximately 30,000 people and stole nearly one billion dollars. I commend the prosecutors and agents who have worked so hard on this important matter.”
“Joel Steinger used Mutual Benefits Corp to bilk hundreds of millions of dollars from trusting investors,” said FBI Special Agent in Charge George L. Piro. “Now, with Joel Steinger's guilty plea, the FBI is pleased that all 13 defendants charged in the MBC scheme have all been convicted.”
Steinger is the thirteenth defendant convicted as a result of the MBC fraud.
Mr. Ferrer commended the investigative efforts of the FBI and the Miami Regional Office of the Securities and Exchange Commission, which previously brought a civil action against MBC and its principals. The MBC case is being prosecuted by Assistant U.S. Attorney Karen Rochlin.
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 Is Sentenced to 30 Months in Prison for Accepting Bribes from ContractorRead 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 George Brown, 50, of Hollywood, was sentenced to 30 months in prison, one year of supervised release, and ordered to forfeit $13,000. Brown previously pled guilty in January 2014 to a one-count information charging him with accepting bribes in connection with programs receiving federal funds, in violation of Title 18, United States Code, Sections 666. The defendant was given until May 13, 2014 to surrender to the United States Bureau of Prisons.
According to documents filed in Court, Brown was the Roadway Lighting Coordinator for the Department of Public Works (Public Works) in Miami-Dade County. In this capacity, Brown was responsible for, among other things, overseeing the installation and/or maintenance of more than 24,000 street lights in the county’s roadway system. In 2011, a lighting contractor offered to provide Brown with “rewards” in exchange for Public Works’ purchase of the contractor’s lighting products. Brown agreed and subsequently accepted more than $13,000 in bribes from the contractor in 2011 and 2012. The bribes included appliances, computer equipment, and other merchandise, all paid for by the contractor. Among the merchandise that Brown received from the contractor was a 2.5 ton air conditioning unit, a Samsung stainless steel refrigerator, and a KitchenAid built-in single electric convection oven. The merchandise was either shipped directly to Brown’s home address or picked up by Brown at the contractor’s business in Miami.
During the investigation, the contractor began to cooperate with law enforcement and recorded the conversations with Brown. In one recorded conversation, Brown assured the contractor that no one else knew about their arrangement. In another recorded conversation, the two discussed delivery to Brown of certain merchandise costing approximately $2,600 in exchange for Brown’s assistance on a Public Works’ project on 27th Avenue in Miami.
Mr. Ferrer commended the investigative efforts of the FBI. The case is being 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.
Another Defendant Sentenced in Identity Theft Tax Refund Fraud Scheme Involving Thousands of Patients’ Personal Identity 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 Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that defendant Marquis Onigirin Moye, 24, of Pompano Beach, was sentenced for his participation in a stolen identity tax refund scheme. Moye was sentenced to 54 months in prison, to be followed by three years of supervised release. Moye previously 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.
Co-defendants Tiffany Shenae Cooper, 33, of Deerfield Beach, and Angela Dione Rosier, 41, of Coral Springs, were sentenced on February 28, 2014. Cooper was sentenced to 57 months in prison, to be followed by three years of supervised release. Rosier was sentenced to 49 months in prison, to be followed by three years of supervised release. The court also ordered both defendants to pay $129,390.06 in restitution to the IRS and the medical services provider whose database had been breached. Cooper previously 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. Rosier previously pled guilty to one count of conspiracy to commit access device fraud, in violation of Title 18, United States Code, Section 1029(b)(2).
Co-defendant Michael Ali Bryant, Sr., 41, of Lauderdale Lakes, previously 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. Bryant’s sentencing is scheduled for April 11, 2014. At sentencing, the defendant faces a maximum of ten years in prison for the possession of unauthorized access devices charge, and a mandatory term of two years in prison, consecutive to any other term in prison, for the aggravated identity theft charge.
Michael Bryant's wife and co-defendant Latina Rashawn Bryant, 43, of Lauderdale Lakes, previously pled guilty to one count of using an unauthorized access device, 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 April 10, 2014.
According to court documents, a confidential source (CS) initially approached Michael Bryant and inquired about purchasing narcotics. Bryant told the CS that he did not have any narcotics but that he did have personal identity information (PII) that he was willing to sell to the CS. The CS made a controlled purchase of ten pages (each page containing approximately 20 to 25 names) of PII. Bryant instructed the CS on how to commit tax fraud using the PII, and provided the CS with specific instructions on what information to enter into the web pages of the internet-based tax services to obtain a tax refund. An examination of the PII revealed that it was from a medical services provider.
Rosier was an employee of the medical services provider. Cooper spoke to Rosier to obtain user names and passwords for current employees of the medical services provider. Cooper admitted to illegally logging on to the medical services provider’s computer network and downloading PII for the purpose of committing various types of fraud. She was assisted in her activities by Rosier and co-defendant Moye.
Mr. Ferrer commended the investigative efforts of the FBI and IRS-CI. 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.
Source of Medical Patient Stolen Identities Pleads GuiltyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS-CI), and Ric. L. Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, announce that Eltonya Wiley, 40, of Lady Lake, pled guilty for her participation in a wide-ranging identity theft scheme. Wiley was the last of six defendants to plead guilty in the case. As part of her guilty plea, Wiley admitted that she made unauthorized use of medical patients’ Social Security numbers in connection with ongoing identity theft. The government alleged, and Wiley agreed that at least 92 patients of Villages Endocopy near The Villages in Central Florida had their identities stolen by virtue of Wiley’s conduct while she was an employee at that medical facility.
Specifically, Wiley pled guilty to one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. ' 1349 (Count 1), three counts of wire fraud, in violation of 18 U.S.C. ' 1343 (Counts 4, 6, and 12), and one count of aggravated identity theft, in violation of 18 U.S.C. ' 1028A (Count 35). At sentencing, she faces a maximum of twenty years in prison for each count of conspiracy to commit wire fraud, and wire fraud; and, a mandatory term of two years in prison for the aggravated identity theft charge, to run consecutively to any other sentence.
Sentencing is scheduled for June 6, 2014 at 2:00 p.m. before U.S. District Judge Kenneth Marra in West Palm Beach.
The scheme involved, in part, stealing the identities of patients at a medical facility in central Florida. Those identities were then used to file fraudulent federal income tax returns in the patients’ names seeking fraudulent refunds, and obtaining fraudulent credit cards which were then used to make fraudulent purchases.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Palm Beach County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Stephen Carlton.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami Resident Convicted in Stolen Identity Tax Refund SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, 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 Cliffort Variste, 34, of Miami, was convicted by a federal jury of one count of access device fraud, in violation of Title 18, United States Code, Section 1029(a)(2), and five counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). The trial was held before U.S. District Court Judge Kathleen M. Williams. Sentencing is scheduled for June 5, 2014. Variste faces a maximum sentence of ten years in prison for the access device charge, and a mandatory term of two years in prison for each aggravated identity theft charge, at least one of which must be served consecutive to any other term in prison.
According to the indictment and evidence presented at trial, Variste obtained an IRS Electronic Filing Identification Number (“EFIN”) and used it to file approximately 52 fraudulent tax returns, many filed with stolen identities. Variste used these returns to obtain fraudulent income tax refunds, which he had deposited on to prepaid debit cards which he controlled. Variste then made numerous withdrawals and purchases on the debit cards for his own personal gain. All of the fraudulent debit cards were issued in the names of real people whose identities were stolen as part of the tax fraud.
Mr. Ferrer commended the investigative efforts of IRS-CI and HSI. This case was prosecuted by Assistant U.S. Attorneys Frank Maderal and Vanessa Snyder.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Manager Pleads Guilty in Loan Modification Fraud SchemeRead 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, Miami Field Office, and Ronald J. Verrochio, Inspector in Charge, United States Postal Inspection Service, Miami Division, announce that defendant Robert Harry Bacon, 34, of West Newbury, MA entered a guilty plea to Counts 1 and 2 of the indictment charging him with conspiracy to commit mail fraud and wire fraud; and mail fraud, in violation of Title 18, United States Code, Sections 1349 and 1341.
Defendant Bacon faces up to 20 years in prison on each of the two counts to which he pled guilty, plus up to $250,000 in fines and mandatory restitution as to each charge.
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 indictment alleges that defendant 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 proffer submitted in support of the guilty plea, defendant 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 that 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 the U.S. Secret Service and the U.S. Postal Inspection Service. This case is being prosecuted by Assistant U.S. Attorneys Lauren Jorgensen and Ellen Cohen.
An indictment 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.
Michigan Aquarium Store Operator Sentenced for Illegal Trafficking of Marine LifeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Tracy Dunn, Acting Special Agent in Charge, NOAA Fisheries Office of Law Enforcement, and Edward Grace, Deputy Assistant Director, U.S. Fish & Wildlife Service, Office of Law Enforcement, announce that Richard Perrin, 80, of Romulus, Michigan, was sentenced today for conspiring with others to commit certain offenses against the United States, that is: transport, sell, receive, acquire, and purchase fish and wildlife, that is marine invertebrates, Sea Fans (Gorgonia flabellum and Gorgonia ventalina), ornamental tropical fish, sharks, and alligators (Alligator mississippiensis), with a fair market value in excess of $350.00, knowing the wildlife was taken, possessed, transported, sold, and intended to be sold in violation of the laws and regulations of the State of Florida, in violation of Title 16, United States Code, Sections 3372(a)(2)(A), 3372(a)(4), and 3373(d)(1) and (2), all in violation of Title 18, United States Code, Section 371.
U.S. District Judge Jose E. Martinez, who had previously accepted Perrin’s guilty plea, after granting a government motion for a downward departure in the case, based on Perrin’s extensive cooperation and assistance in the investigation and prosecution of others, imposed a sentence of a three year term of probation, a criminal fine of $15,000, and forfeiture of the vehicle used in the commission of the Lacey Act violations. Perrin’s co-defendant, Joseph Franko, 35, also of Romulus, is awaiting sentence in Key West on April 14, 2014, at 10:00 a.m.
According to the indictment and joint factual statements submitted to the Court, during the period extending from December 2008 through approximately December 2011, Perrin and Franko engaged in a conspiracy to purchase, harvest, and transport marine life and reptiles from Florida to Michigan for sale through a business known as Tropicorium, Inc. Perrin was the owner Tropicorium, engaged in the day-to-day management and operation of the corporation, while Franko was an employee. Tropicorium was organized in 1993 under the laws of Michigan with its principal place of business in Romulus. Tropicorium was engaged in the purchase and retail sale of marine life and reptiles, including sharks, marine invertebrates, Sea Fans (Gorgonia flabellum and Gorgonia ventalina), ornamental tropical fish, and alligators.
The defendants admitted that they failed to acquire or possess the licenses required by Florida Statute for the marine life they harvested during multiple trips to the Florida Keys. Additionally, the sea fans taken by the defendants and sold in Michigan are prohibited from being harvested from the waters of the State of Florida or the Florida Keys National Marine Sanctuary. According to the factual statements, Perrin and Franko also made stops while en route to and from the Keys in the area of Big Cypress National Preserve, where they illegally poached juvenile alligators to sell through Tropicorium. Unknown to the defendants, on one occasion they actually sold a baby alligator and illegal sea fans from a Florida harvesting trip to an undercover Special Agent of the Fish & Wildlife Service. The two defendants also utilized a facility on Grassy Key as a maintenance base for their harvested marine life until they were ready to ship or transport the specimens to Michigan for sale.
Mr. Ferrer commended the joint investigative efforts of the NOAA Office of Law Enforcement and the U.S. Fish & Wildlife Service, Office of Law Enforcement. Mr. Ferrer also thanked the Michigan Department of Natural Resources and the Florida Fish and Wildlife Conservation Commission. This case was 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.
Vero Beach Resident Charged in Armed RobberyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and Deryl Loar, Indian River County Sheriff, announce the arrest of Glenn Thomas Carvajal, 34, of Vero Beach. Carvajal made his initial appearance in federal court yesterday before U.S. Magistrate Judge Frank J. Lynch Jr. in Ft. Pierce. After a detention hearing, Carvajal was detained, pending trial, as a risk of flight and danger to the community.
More specifically, the complaint charges the defendant with interfering with commerce by threats or violence (robbery), in violation of Title 18, United States Code, Section 1951(a), and possessing and brandishing a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Section 924(c)(1)(A). If convicted of interfering with commerce by threats or violence (robbery), the defendant faces a possible statutory maximum sentence of up to 20 years in prison. If convicted of possessing and brandishing a firearm in furtherance of a crime of violence, the defendant faces a consecutive seven year term in prison.
According to the allegations in the criminal complaint, on October 10, 2013, Carvajal entered the Game Stop store located in Vero Beach. Carvajal handed the employee a hand written note, which read “I have a gun, please empty the register as soon as possible” and showed the employee a black semi-automatic handgun. Carvajal took hundreds of dollars’ worth of inventory and property from the employee. Before Carvajal exited the store, he warned the employee that he had someone monitoring the phones, to wait 15 minutes before calling the police and threatened that if the employee failed to comply, he knew who he was, where he lived, and would kill or hurt him or one of his family members. Investigators have confirmed that Carvajal was previously employed by Game Stop as a manager.
Mr. Ferrer commended the investigative efforts of ATF and the Indian River County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Carmen Lineberger.
A complaint is only an accusation, and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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.
West Palm Beach Resident Charged in Identity Theft Scheme Pleads GuiltyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS-CI), and Ric L. Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, announce that Kawana Brown, 36, of West Palm Beach, pled guilty for her participation in a wide-ranging identity theft scheme.
Specifically, Brown pled guilty to one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. ' 1349 (Count 1), three counts of wire fraud, in violation of 18 U.S.C. ' 1343 (Counts 2, 8, and 13), and two counts of aggravated identity theft, in violation of 18 U.S.C. ' 1028A (Counts 25 and 38).
Sentencing is scheduled for May 30, 2014 at 3:00 p.m. before U.S. District Judge Kenneth Marra. At sentencing, the defendant faces a maximum of twenty years in prison for each count of conspiracy to commit wire fraud, and wire fraud, and a mandatory term of two years in prison for the aggravated identity theft charge, to run consecutively to any other sentence.
The scheme involved, in part, stealing the identities of patients at a medical facility in central Florida. Those identities were then used to file fraudulent federal income tax returns in the patients’ names seeking fraudulent refunds, and obtaining fraudulent credit cards which were then used to make fraudulent purchases.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Palm Beach County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Stephen Carlton.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Florida Resident Sentenced in Connection with Fraudulent International Lottery SchemeRead the Press Release
Angela Althea Peart was sentenced in connection with her role in a fraudulent international lottery scheme that targeted U.S. citizens, the Justice Department announced. Peart was sentenced by U.S. District Court Judge K. Michael Moore for the Southern District of Florida in Miami to serve 33 months in prison and 5 years supervised release. A hearing on restitution has been scheduled for June 5, 2014.
Peart’s prosecution is part of the Department of Justice’s effort, working with federal and local law enforcement, to combat international lottery fraud schemes preying on American citizens. According to the U.S. Postal Inspection Service, Americans have lost tens of millions of dollars to fraudulent foreign lotteries.
“As international fraudsters focus their criminal schemes on Americans, we will do all we can to prosecute and deter such criminal activity,” said U.S. Attorney for the Southern District of Florida Wifredo A. Ferrer. “Now more than ever, the public needs to be mindful of these schemes to avoid falling prey to them. So long as criminals continue to line their pockets with the money of our nation’s seniors, we will be there to prosecute them and bring them to justice.”
“International lottery fraud aimed at stealing from elderly victims cannot, and will not, be tolerated by the Department of Justice,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “We will seek to hold accountable those who participate in illegal lottery schemes, including those in the U.S. who facilitate schemes directed from abroad.”
A federal grand jury in Miami returned an indictment against Peart and co-conspirator Charmaine Anne King on Oct. 31, 2013. Judge Moore adopted a report and recommendation accepting Peart’s guilty plea on Feb. 4, 2014. Co-defendant King was convicted by a federal jury in Miami on Feb. 5, 2014, of one count of conspiracy, three counts of mail fraud and two counts of wire fraud. King’s sentencing is scheduled for April 17, 2014.
As part of her guilty plea, Peart admitted that beginning in or around March 2012 and continuing through, in or around November 2013, she was a member of a conspiracy to fraudulently enrich herself by keeping victims’ money for her own benefit without paying any lottery winnings. Peart acknowledged that a co-conspirator, believed to be located in Canada, mailed letters to elderly victims in the United States falsely informing the victims that they had won more than a million dollars in a lottery. These letters purported to be from an actual sweepstakes company in the United States.
Peart also admitted that as part of the conspiracy, victims were told that they must make a payment of several thousand dollars in order to collect their purported lottery winnings. The victims were told to send their payments to Peart and others. Peart acknowledged that she received victims’ funds, kept 10 percent of the money received from victims and then sent the rest to another member of the conspiracy. Victims never received any lottery winnings.
Assistant Attorney General Delery commended the investigative efforts of the U.S. Postal Inspection Service, Homeland Security Investigations and the U.S. Marshals Service. The case is being prosecuted by Assistant Director Jeffrey Steger and Trial Attorney Kathryn Drenning with the Department of Justice’s Civil Division, Consumer Protection Branch.
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 Sentenced in Plot to Conceal and Dispose of Assets in Connection with Rothstein CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Eddy Marin, 52, of Davie, was sentenced today in West Palm Beach by U.S. District Judge Kenneth A. Marra to ten months in prison, followed by one year of supervised release. Issues regarding the forfeiture of certain funds obtained by the defendant through his criminal activity was continued to a later date. Marin pled guilty on October 18, 2013 to conspiracy to obstruct justice, in violation of Title 18, United States Code, Section 1512(k).
According to the factual statement admitted by the defendant in connection with his guilty plea, former Ft. Lauderdale attorney Scott W. Rothstein, who was the Chief Executive Officer and Chairman of the law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA), used the funds obtained from the operation of a Ponzi scheme to purchase tens of millions of dollars of real estate, vehicles, vessels, business interests, luxury watches, jewelry and sports memorabilia for himself, his wife, Kimberly Rothstein, and others. As part of his plea agreement, Scott W. Rothstein agreed to forfeit to the government all assets acquired with funds derived through the aforesaid Ponzi scheme. On November 9, 2009, agents of IRS-CI went to the Rothstein residence, where Kimberly Rothstein assisted the agents in retrieving what was believed to be all of the available cash, jewelry and luxury watches which had previously been purchased by Scott W. Rothstein with proceeds derived from the Ponzi scheme. In fact, before, during and after the aforesaid seizure by federal agents on November 9, 2009, Kimberly Rothstein, Stacie Weisman, and others knowingly took action to conceal certain items of jewelry, valued in excess of one million dollars for the purpose of preventing the government from exercising its authority to take such property into its lawful custody and control. Thereafter, Kimberly Rothstein and Stacie Weisman sold and attempted to sell a portion of this jewelry to and through various persons, including the defendant Eddy Marin.
The factual statement further alleges that, in connection with civil proceedings instituted by the Trustee in bankruptcy for RRA, the defendant took steps to obstruct justice by concealing the true location of certain items of jewelry in order to prevent their availability for use in those proceedings. Marin further admitted that he committed perjury during a deposition in connection with those proceedings.
Mr. Ferrer commended the investigative efforts of IRS-CI and the FBI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, Jeffrey N. Kaplan, and Evelyn B. Sheehan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Margate Resident Pleads Guilty in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, U.S. Secret Service, announce that Louis A. Francois, 44, of Margate, pled guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). Sentencing is scheduled for June 5, 2014 at 11:30 a.m. before U.S. District Judge Donald M. Middlebrooks.
According to court documents, Francois owned and operated a tax preparation business called A&I Multi Services (A&I) located in Oakland Park. Francois stole personal identifying information (PII) of various individuals, including their names, dates of birth, social security numbers, and addresses, for the purpose of filing fraudulent U.S. income tax returns claiming tax refunds in those individuals’ names. Subsequently, Francois printed out the refund checks payable to the persons whose PII was used at A&I. The checks were in the amount of the fraudulently obtained tax refunds minus Francois’ “tax preparation” fees and other fees. The “tax preparation” fees were deposited into Francois’ bank account. Francois went to a check cashing store located next door to A&I with the fraudulently obtained tax refund checks and fraudulent Florida driver's licenses matching the stolen identities on the checks and cashed them.
From July 2010 through June 2011, the total amount of U.S. Treasury checks cashed by Francois and the total amount of fraudulent refunds requested by Francois is approximately $355,000. The number of victims involved is greater than ten, but fewer than fifty.
Francois faces a maximum sentence of twenty years in prison for the wire fraud charge, and a mandatory term of two years in prison, consecutive to any other term in prison, for the aggravated identity theft charge.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Secret Service. This case is being prosecuted by Assistant U.S. Attorney Alicia E. Shick.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Five Defendants Sentenced in Identity Theft Tax Refund Fraud and Access Device Fraud SchemesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, and Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), announce that Alex Dontfred, 29, David Tilus, 27, Sherika Rowe, 20, Fritznel Etienne, 24, and Latonya Ware, 27, all of Lauderhill, were sentenced for their participation in a stolen identity tax refund scheme and an access device fraud scheme that resulted in the submission of over $137,000 in fraudulent tax refund claims and over $49,000 in unauthorized access device purchases.
Dontfred was sentenced yesterday to 46 months in prison, followed by three years of supervised release, and was ordered to pay forfeiture of $49,561.88 and restitution in the amount of $45,711.10. Tilus was sentenced on March 10, 2014 to 70 months in prison, followed by three years of supervised release, and was ordered to pay $188,322 in restitution. Rowe was sentenced on March 13, 2014 to 45 months in prison, followed by three years of supervised release, and was ordered to pay a money judgment of $136,538 and restitution in the amount of $136,535. Etienne was sentenced on March 14, 2014 to 34 months in prison, followed by two years of supervised release, and was ordered to pay a money judgment of $11,204 and restitution in the amount of $3,844.81. Latonya Ware was sentenced on March 10, 2014 to 34 months in prison, followed by three years of supervised release, and was ordered to pay a money judgment of $136,535 and restitution in the amount of $136,535.
Dontfred previously pled guilty to one count each of conspiracy to commit access device fraud and access device fraud, in violation of Title 18, United States Code, Sections 1029(b)(2) and 1029(a)(2), respectively. Tilus previously pled guilty to one count each of conspiracy to commit wire fraud, wire fraud, conspiracy to commit access device fraud, and aggravated identity theft, in violation of Title 18, United States Code, Sections 1349, 1343, 1029(b)(2) and 1028A(a)(1), respectively. Rowe previously pled guilty to one count each of conspiracy to commit wire fraud, wire fraud and aggravated identity theft, in violation of Title 18, United States Code, Section 1349, 1343 and 1029A(a)(1), respectively. Etienne previously pled guilty to one count each of access device fraud and aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(2) and 1028A(a)(1), respectively. Latonya Ware previously pled guilty to one count each of conspiracy to commit wire fraud and aggravated identity theft, in violation of Title 18, United States Code, Section 1349 and 1029A(a)(1), respectively.
According to court documents, Andrew Ware, David Tilus, Latonya Ware and Sherika Rowe obtained the personal identifying information (PII) of numerous identity theft victims, including their names, dates of birth, and social security numbers. Latonya Ware stole patients' names and social security numbers from a medical office where she worked, and gave the PII to Tilus and her cousin, Andrew Ware. Rowe electronically filed fraudulent tax returns utilizing the victims’ names and social security numbers, and the fraudulent refunds from these returns were loaded onto prepaid debit cards that Tilus and Andrew Ware used to purchase gift cards and other merchandise from retail stores. Fraudulent refunds claimed by Andrew Ware, Tilus, Latonya Ware and Rowe from the stolen identities totaled approximately $137,132.
Court documents state that Andrew Ware, David Tilus, Jaqwayn Henry, Alex Dontfred and Fritznel Etienne utilized victims’ access devices, without their authorization, to purchase merchandise totaling at least $1,000 in a single year. These defendants obtained credit card numbers from various victims and used these stolen access devices to purchase merchandise, gift cards and prepaid debit cards for later use. The total amount of fraudulent charges made or attempted to be made by Andrew Ware, Tilus, Henry, and Dontfred utilizing the stolen credit cards is $49,561.88. From approximately January 20, 2012 through January 22, 2012, the total amount of fraudulent charges made or attempted to be made by Etienne utilizing a stolen credit card number is $11,942.23.
Co-defendant Andrew Ware, 27, of Lauderhill, previously pled guilty to one count each of conspiracy to commit wire fraud, wire fraud, conspiracy to commit access device fraud, and aggravated identity theft, in violation of Title 18, United States Code, Sections 1349, 1343, 1029(b)(2) and 1028A(a)(1), respectively. The defendant is scheduled to be sentenced on April 18, 2014.
Co-defendant Jaqwayn Henry, 23, of Lauderhill, is a fugitive. The indictment was dismissed against Latanya Ware.
Mr. Ferrer commended the investigative efforts of IRS-CI, the USSS, and BSO. The case is being prosecuted by Assistant U.S. Attorneys Alicia Shick and Harry Wallace.
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.
Coral Gables Resident Pleads Guilty and Is Sentenced for Possession of Migratory BirdsRead the Press Release
Wifredo Ferrer, United States Attorney for the Southern District of Florida, David Pharo, Resident Agent in Charge, U.S. Fish & Wildlife Service, and Major Alfredo Escanio, Commander of South Region Bravo, Florida Fish & Wildlife Conservation Commission, announced that Jose E. Souto, 71, of Coral Gables, pled guilty and was sentenced yesterday by U.S. District Judge Kathleen Williams for his involvement in the illegal possession of thirty-four specimens of migratory birds, protected by federal law and regulation, in violation of the Migratory Bird Treaty Act (MBTA), Title 16, United States Code, Sections 703 and 707(a), and Title 18, United States Code, Section 2.
Judge Williams sentenced Souto to the maximum criminal fine under the statute, $15,000, and a one month term of probation. Additionally, pursuant to the plea agreement, Souto must abandon the thirty-four avians, a cage, and a bird trap seized by the government pursuant to a search warrant, and he must also make a donation of $7,500 to the Tropical Audubon Society for the purpose of funding research, education, and monitoring of migratory birds and their habitats in South Florida.
According to the Court documents and a joint factual statement executed by the parties, Souto, at the time a resident of Coconut Grove, was observed by a knowledgeable citizen to possess numerous migratory birds at his residence. Aware that the birds were subject to the protections of the MBTA, the citizen alerted Fish & Wildlife Service Special Agents. A review of federal records revealed that Souto held no valid permits to take and possess any migratory bird as defined in the MBTA and the implementing regulations. A search warrant subsequently executed at the residence located 34 birds, including among other MBTA listed species, thirteen Northern Cardinals (Cardinalis cardinalis), four Indigo Buntings (Passerina cyanea), nine Painted Buntings (Passerina ciris), one Blue Grosbeak (Guiraca cycaerulea), and three Rose-Breasted Grosbeaks (Pheucticus ludovicianus). These species are among a number of native migratory bird species that have diminished significantly over their range in the Eastern United States in recent years.
In order to protect migratory birds from over-exploitation, the MBTA makes it unlawful at any time, by any means or in any manner, to pursue, hunt, take, capture, kill, attempt to take, capture, or kill, possess, offer for sale, sell, offer to barter, barter, offer to purchase, purchase, deliver for shipment, ship, export, import, cause to be shipped, exported, or imported, deliver for transportation, transport or cause to be transported, carry or cause to be carried, or receive for shipment, transportation, carriage, or export, any migratory bird, any part, nest, or egg of any such bird, or any product, whether or not manufactured, which consists, or is composed in whole or part, of any such bird or any part, nest, or egg thereof, subject to certain exceptions not applicable in this case. The protected species are listed in the Code of Federal Regulations at 50 C.F.R. Part 10.13, and in the absence of valid permits, may not be taken or possessed.
Mr. Ferrer commended the investigative efforts of the U.S. Fish & Wildlife Service and the Florida Fish & Wildlife Conservation Commission. The case was prosecuted by Certified Legal Intern Natalie Harrison and 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.
Two Miami-Dade County Men Convicted of Drug TraffickingRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, Amos Rojas, Jr., United States Marshal, U.S. Marshals Service (USMS), Noel Manheimer, Director of Marine Operations, U.S. Customs and Border Protection (CBP), Dan Alexander, Chief, Boca Raton Police Department, Vince Demasi, Chief, West Palm Beach Police Department, Scott Israel, Sheriff, Broward County Sheriff’s Office (BSO), and Dave Aronberg, State Attorney, Office of the State Attorney for Palm Beach County, announce today that following a two week trial in West Palm Beach, a jury convicted Osvaldo Domingo Ceballo, 44, of Hialeah, and Yumar Oliva, 43, of Miami, of conspiracy to possess with intent to distribute more than five kilograms of cocaine hydrochloride and possession with intent to distribute more than five kilograms of cocaine hydrochloride.
Sentencing is scheduled for May 21, 2014, before U.S. District Judge Daniel T.K. Hurley. At sentencing, the defendants face a mandatory minimum sentence of ten years in prison up to a maximum of life in prison, a mandatory minimum period of supervised release of five years up to life, a maximum $4 million fine, and a $100 special assessment as to both the conspiracy to possess with intent to distribute charge and the possession with intent to distribute charge.
According to the evidence presented at trial, Taverne Pierre Louis operated a large scale drug trafficking organization responsible for the importation and distribution of hundreds of kilograms of cocaine from Haiti and the Bahamas to Miami-Dade, Broward and Palm Beach Counties. Osvaldo Domingo Ceballo and Yumar Oliva facilitated Taverne Pierre Louis’ drug distribution organization by transporting the cocaine. During the course of this investigation, 27 kilograms of cocaine and over 100 grams of cocaine base, commonly referred to as “crack” cocaine, were seized.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
Mr. Ferrer commended the investigative efforts of the DEA, USMS, CBP, Boca Raton Police Department, West Palm Beach Police Department, BSO and the Palm Beach County State Attorney’s Office. This case is being prosecuted by Assistant U.S. Attorney Jennifer C. Nucci.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Ringleader of Identity Theft Ring and Accomplice Plead GuiltyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS-CI), and Ric. L. Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, announce that Jennifer Robinson, 36, of West Palm Beach, and Elton Baker, 29, of Center Hill, pled guilty for their participation in a wide-ranging identity theft scheme.
Specifically, Robinson pled guilty to all counts in a superseding indictment, which included one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. ' 1349, twelve counts of wire fraud, in violation of 18 U.S.C. ' 1343, eleven counts of stealing government monies, in violation of 18 U.S.C. ' 641, twelve counts of aggravated identity theft, in violation of 18 U.S.C. ' 1028A, and, one count of unauthorized access device fraud, in violation of 18 U.S.C. ' 1029(a)(2). Elton Baker pled guilty to conspiracy to commit wire fraud, three counts of wire fraud, and one count of aggravated identity theft. At sentencing, the defendants face a maximum of ten years in prison for each count of conspiracy to commit wire fraud, wire fraud, theft of government funds, and unauthorized access device fraud; and, a mandatory term of two years in prison for the aggravated identity theft charge, to run consecutively to any other sentence.
Sentencing is scheduled for May 23, 2014 at 2:00 p.m. before U.S. District Judge Kenneth Marra.
The scheme involved, in part, stealing the identities of patients at a medical facility in central Florida. Those identities were then used to file fraudulent federal income tax returns in the patients’ names seeking fraudulent refunds, and obtaining fraudulent credit cards which were then used to make fraudulent purchases.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Palm Beach County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Stephen Carlton.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Medical Clinic Owner Sentenced for Role in Multiple Health Care Fraud Schemes Totaling over $20 MillionRead the Press Release
The owner and operator of a Miami medical clinic, Merfi Corp., was sentenced today to serve 108 months in prison for her participation in multiple health care fraud schemes.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Acting Assistant Attorney General Mythili Raman 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 Brian P. Martens of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
Isabel Medina, 49, of Miami, was sentenced by U.S. District Judge Ursula Ungaro of the Southern District of Florida. In addition to her prison term, Medina was also sentenced to serve three years of supervised release and was ordered to pay $8,437,393 in restitution.
On Jan. 7, 2014, Medina pleaded guilty before Judge Ungaro to conspiracy to commit health care fraud.
According to court documents, Medina was an owner and operator of Merfi Corp., a Miami medical clinic that employed physicians, physician assistants and other medical professionals who were authorized by law to dispense prescriptions for home health care services. Through Merfi Corp., Medina and her co-conspirators provided fraudulent home health and therapy prescriptions to the owners and operators of Flores Home Health Care Inc. and other home health care agencies, as well as to patient recruiters, in return for kickbacks and bribes.
Flores Home Health and these other home health care agencies purported to provide home health and therapy services to Medicare beneficiaries, but were in fact operated for the purpose of billing Medicare for, among other things, expensive physical therapy and home health care services that were not medically necessary and/or were not provided.
Medina has acknowledged that her involvement in fraudulent schemes at multiple home health care companies resulted in losses to the Medicare program exceeding $20 million.
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. This case is being prosecuted by Trial Attorney A. Brendan Stewart of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with 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.
Medical Clinic Owner and Other Patient Recruiters Sentenced for Roles in $8 Million Health Care Fraud SchemeRead the Press Release
Several patient recruiters, including a medical clinic owner, were sentenced today for their participation in a health care fraud scheme involving Flores Home Health Care Inc., a defunct home health care company.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Acting Assistant Attorney General Mythili Raman 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 Brian P. Martens of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
Lerida Labrada, 59; Mayra Flores, 49; and German Martinez, 36, all of Miami, were sentenced by U.S. District Judge Ursula Ungaro of the Southern District of Florida to serve 37 months, 24 months, and 24 months in prison, respectively. In addition to their prison terms, all of the defendants were sentenced to three years of supervised release and ordered to pay between $200,000 and $400,000 in restitution.
On Jan. 7, 2014, Labrada pleaded guilty to conspiracy to commit health care fraud, and Flores and Martinez pleaded guilty to conspiracy to defraud the United States and receive health care kickbacks.
According to court documents, the defendants worked as patient recruiters for the owners and operators of Flores Home Health, a Miami home health care agency that purported to provide home health and physical therapy services to Medicare beneficiaries. Labrada also owned and operated a Miami medical clinic that provided fraudulent prescriptions to patient recruiters and to the owners and operators of Flores Home Health.
The defendants would recruit patients for Flores Home Health and would solicit and receive kickbacks and bribes from the owners and operators of Flores Home Health in return for allowing the company 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.
From approximately October 2009 through approximately June 2012, Flores Home Health was paid approximately $8 million by Medicare for fraudulent claims for home health services.
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. This case is being prosecuted by Trial Attorney A. Brendan Stewart of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with 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.
Medical Clinic Biller Convicted in Medicare Part C 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, Brian P. Martens, Acting Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Office of Investigations Miami Office, and Amy K. Parker, Assistant Special Agent in Charge, Office of Personnel Management, Office of Inspector General, announce that a federal jury found Cecilio Pelaez Delgado, 51, of Miami, guilty of ten counts of health care fraud, in violation of Title 18, United States Code, Section 1347, and conspiracy to commit the same, in violation of Title 18, United States Code, Section 1349. Sentencing is scheduled for June 13, 2014 before U.S. District Judge Robert N. Scola, Jr.
According to the indictment and evidence admitted at trial, Pelaez Delgado was employed by a medical clinic, Viton Therapy Medical Center Inc. (Viton Therapy), a Florida corporation. Viton Therapy was an authorized medical services provider with Blue Cross and Blue Shield of Florida (BCBS) and Cigna, and was eligible to receive reimbursement from the private insurance carriers for medical services rendered to policyholders.
The evidence at trial demonstrated that Cecilio Pelaez Delgado, through Viton Therapy and another related clinic, One Solution Therapy, submitted and caused the submission of approximately $2.5 million in false and fraudulent claims for expensive infusion and injection therapies to the two insurance carriers, and was paid over $400,000 of the submitted claims. The evidence further established that the clinics paid kickbacks and bribes to beneficiaries suffering from HIV to ensure that they would attend the clinics.
Mr. Ferrer commended the investigative efforts of the FBI, HHS-OIG, and the Office of Personnel Management, Office of Inspector General. This case is being prosecuted by Assistant U.S. Attorney Christopher J. Clark.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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.
Bolivian Police Officer Convicted on Extortion ChargesRead 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 yesterday’s conviction of Mario Fabricio Ormachea Aliaga, 43, of La Paz, Bolivia. After a three-day jury trial in Ft. Lauderdale before U.S. District Judge Jose A. Gonzalez, Jr., Ormachea was convicted of traveling to the United States with the intent to commit extortion and attempted extortion.
At trial, the evidence showed that Ormachea, the National Chief of the Bolivian Police’s Anti-Corruption Department, traveled to the United States to extort Humberto Roca, a Bolivian citizen and political exile who was living in the United States.
Mr. Roca was a successful and prominent Bolivian businessman who had run the country’s largest private airline, Aerosur. After Mr. Roca spoke out against the Bolivian government, the Bolivian government charged him and members of his family with various crimes against the State. Ormachea flew to the United States to meet with Mr. Roca. During his meetings with Mr. Roca, Ormachea told Mr. Roca that he was in charge of several of the criminal cases against him, that he decided what the criminal investigations showed and what they did not show, and that he provided the components necessary for the Bolivian government to make decisions on Mr. Roca’s cases. Ormachea then told Mr. Roca that he believed him to be innocent of any crimes but that it would cost him $30,000 to have Ormachea shift the investigations to the guilty parties.
Ormachea faces a statutory maximum sentence of up to 25 years in prison, plus fines and restitution. Ormachea will be sentenced in May by U.S. District Judge Robin S. Rosenbaum.
Mr. Ferrer commended the investigative efforts of the FBI. This case was prosecuted by Assistant U.S. Attorneys John R. Byrne and Jon Juenger.
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 Charged with Attempted ExtortionRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, A. Lee Bentley, III, United States Attorney for the Middle District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation, Miami Field Office, Paul Wysopal, Special Agent in Charge, Federal Bureau of Investigation (FBI), Tampa Field Office, Aaron T. Ford, Special Agent in Charge, Federal Bureau of Investigation, New Jersey Field Office, and Scott Israel, Sheriff, Broward Sheriff's Office (BSO), Bomb Squad, announce the unsealing of an indictment charging Brian Henderson, 49, of Hallandale. The indictment, which was returned in the Southern District of Florida, is 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 is scheduled to make his initial appearance in the Southern District of Florida before U.S. Magistrate Judge Alicia O. Valle on Friday, March 14, 2014.
According to the eleven-count indictment, which was returned on February 25, 2014, Henderson is charged with attempting 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 indictment, 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 store located in Dania Beach.
If convicted, Brian Henderson faces the following potential penalties: up to 20 years in prison, followed by five years of supervised release, and a possible $250,000 fine as to Count 1, attempted interference with commerce by extortion, and as to count 10, attempting to destroy property by explosives; up to 10 years in prison, followed by three years of supervised release, and a possible $250,000 fine on counts 2, 4, 6 and 8, using an instrument of interstate and foreign commerce to make a threat to destroy property by explosives; up to two years in prison, followed by three years of supervised release, and a possible $250,000 fine, on counts 3, 5, 7 and 9, transmitting a communication in interstate and foreign commerce to extort money by damaging and destroying buildings; and, a mandatory minimum term of 30 years in prison, followed by five years of supervised release, and a possible $250,000 fine on count 11, using and carrying a firearm during and in relation to a crime of violence.
A separate criminal complaint charging Henderson in connection with alleged product tampering threats made to a consumer products company was unsealed today in the District of New Jersey.
Mr. Ferrer commended the investigative efforts of the FBI Tampa Field Office, the New Jersey Field Office, and the Miami Field Office, and the Broward Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Michael Walleisa.
An indictment 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.
One Hallandale Resident and Two Palm Beach Residents Sentenced to Lengthy Prison Terms for Robbing Treasure Coast PNC Banks at GunpointRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, John A. Bolduc, Chief, Port St. Lucie Police Department, Ken J. Mascara, St. Lucie County Sheriff’s Office, Sean Baldwin Chief, Ft. Pierce Police Department, J. Michelle Morris, Chief, Sebastian Police Department, and Deryl Loar, Sheriff, Indian River Sheriff’s Office, announce the sentencing of Raven Simone Sayers, 23, of Hallandale, by U.S. District Judge Jose E. Martinez. Sayers was sentenced to 162 months in prison, followed by three years supervised release.
Also previously sentenced in this case were defendants Ivory Lee Robinson, III, 22, and Tomaleesha Jeffie Laqua McKeliver, 22, both of West Palm Beach, by U.S. District Judge Donald L. Graham. Robinson, a career offender, was sentenced to 262 months in prison, followed by five years of supervised release on February 27, 2014; and, McKeliver was sentenced to 102 months in prison, followed by three years of supervised release on December 16, 2013.
Each of the defendants previously pled guilty to interference with commerce by robbery (Hobbs Act), in violation of Title 18, United States Code, Section 1951, and using and carrying a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Section 924(c).
According to court documents, during the night of July 7, 2013, into the early morning hours of July 8, 2013, Sayers, Robinson, McKeliver, Paul Edward Moore, Joe JR Desilien, Herbert Lenorris Smith, Jr., Anthony Isaac Johnson, and Allan Demetrius Bradford, planned and agreed to rob two St. Lucie County PNC banks at gun point. In order to carry out the two robberies, the group separated into two teams. The plan was for each team to have a female as a getaway driver and three males. Sayers and McKeliver agreed to be the robbery getaway drivers. Each team would steal a van, rob each of the banks at gunpoint, with their faces covered, leave the bank in the van, and transfer into the getaway vehicles, in order to flee the area. Sayers and McKeliver drove rental cars. The two teams travelled from Palm Beach County to St. Lucie County in the two rented cars. While en route, the two teams remained in cellular phone contact with one another. Once in St. Lucie County, the teams scouted PNC Banks and escape routes and stole two vans in Ft. Pierce for use in the two bank robberies.
Later on July 8, 2013, between 9:00 and 9:30 a.m. two St Lucie County PNC Banks were robbed at gunpoint, almost simultaneously. Law enforcement eventually identified, located, arrested and charged Sayers, Robinson, McKeliver, and their co-conspirators.
A jury trial for Paul Edward Moore, Anthony Isaac Johnson, and Joe JR Desilien is set for May 19, 2014 before U.S. District Judge Jose E. Martinez in Ft. Pierce.
Mr. Ferrer commended the investigative efforts of the FBI, Port St. Lucie Police Department, Ft. Pierce Police Department, Sebastian Police Department, St. Lucie County Sheriff’s Office, Indian River Sheriff’s Office, Palm Beach County Sheriff’s Office, Port Orange Police Department, and Hillsborough County Sheriff’s Office for their work on this case. The case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former CEO of Miami Lakes Tax Preparation Business Sentenced for Structuring SchemeRead the Press Release
Wifredo A Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Carlos Rodriguez, 40, of Miami Lakes, was sentenced today to 22 months in prison, followed by two years of supervised release.
Rodriguez previously pled guilty to one count of structuring financial transactions with the intent to evade currency reporting requirements, in violation of Title 31, United States Code, Sections 5324(a)(3) and 5324(d)(2). Rodriguez is the former Chief Executive Officer of Rodri Rodri & Associates (Rodri), formerly located in Miami Lakes.
According to court documents and statements, financial institutions are required to report cash transactions in amounts over $10,000.00 to the IRS. From on or about January 4, 2012 through on or about March 22, 2012, Rodriguez was the Chief Executive Officer of Rodri, a tax preparation business. During that time, the defendant cashed or had cashed Rodri business checks in amounts under $10,000.00 at JPMorgan Chase Bank with the intent to evade the currency transaction reporting requirements of Title 31, United States Code, Section 5313(a). Pursuant to the terms of the plea agreement, the amount of money involved in the structuring violations was between $400,000 and $1 million.
According to the evidence, the tax return preparation part of the business was supervised by the defendant’s late wife Jennifer Rodriguez. The defendant was primarily responsible for the day-to-day operations of the business such as paying employees, collecting fees for the preparation of tax returns, paying business expenses, and handling customers with questions, concerns, or complaints. Nonetheless, many of the tax returns prepared by Rodri were fraudulent and contained false credits, such as education and fuel credits that the taxpayers otherwise were not entitled to have. The structured cash was used to provide cash, for a fee, to taxpayer clients in exchange for their inflated tax refunds.
As further stated in court and in court documents, the proceeds generated by the tax preparation business are traceable to the purchase of the properties listed in the indictment, including a couple of parcels of real property. According to the plea agreement, Rodriguez agreed to forfeit said properties to the United States.
As further stated in the plea agreement, Rodriguez agreed to cooperate with the IRS in its civil examination, determination, assessment, and collection of income taxes related to the defendant’s 2009 through 2012 income tax returns and any related corporate tax returns, and further agreed not to conceal, transfer, or dissipate funds or property that could be used to satisfy such taxes, penalties, and interest.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Elijah A. Levitt.
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 Tax Preparer Pleads Guilty to Contempt of CourtRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Dianelys Armengol Guevara, 28, of Pembroke Pines and Dallas, Texas, pled guilty today before U.S. District Judge James I. Cohn to a one-count Information charging her with contempt of court for violating a court order forbidding her from acting as a tax preparer.
According to the factual proffer filed in court, Guevara had worked as a professional tax preparer at Liberty Tax Services, in Hollywood, from 2005-2009. In 2010, the Department of Justice’s Tax Division filed a civil complaint against Guevara, based on a civil IRS investigation, alleging that Guevara had filed tax returns improperly claiming First Time Homebuyer Credits, various education credits, deductions, and expenses. In January 2011, U.S. District Judge Cecilia M. Altonaga entered a judgment which permanently barred Guevara from acting as a federal tax return preparer. However, on or about January 13, 2011, Guevara began willfully disobeying that judgment by continuing to prepare, and assist in preparing, federal tax returns, from her home in Pembroke Pines. Guevara admitted to preparing approximately 130 federal tax returns after the Court had entered its order. Audits by the IRS found that many of these returns prepared by Guevara also made illegitimate claims to education credits and other deductions, resulting in an average under-payment of approximately $3,358 per return.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Jared M. Strauss.
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.
Russell Adler Charged with Conspiracy to Violate the Federal Election Campaign ActRead 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 Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce the filing of charges against Russell S. Adler, 52, of Ft. Lauderdale. The defendant is alleged to have conspired to violate the Federal Election Campaign Act while a shareholder of the former Fort Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA).
According to the criminal information filed with the Court earlier today, the defendant was an attorney who was designated as a shareholder of RRA. He was charged with one count of conspiracy to violate the Federal Election Campaign Act and to defraud the United States, in violation of Title 18, United States Code, Section 371. If convicted, the defendant faces a maximum statutory sentence of up to five years in prison
The information charges that in order to circumvent campaign finance laws setting limitations on the amounts which donors can contribute, Rothstein enlisted some of the attorneys and administrative personnel of RRA, and other persons associated with RRA, including Adler, to make political contributions to various political campaigns which were unlawfully reimbursed to them by RRA.
U.S. Attorney Wifredo A. Ferrer stated, “The Federal Election Campaign Act is designed to limit financial influence in the election of candidates. Russell Adler blatantly ignored and circumvented clearly established campaign finance laws in an effort to increase the stature and apparent political power of RRA. The information filed today against Adler holds him accountable for his acts. Adler is now the seventh attorney and seventeenth accomplice to be held accountable in Rothstein’s $1.2 billion Ponzi scheme.”
“According to these charges, Russell S. Adler sought to undermine the campaign finance process and will now have to answer for his decision to do so,” said George L. Piro, Special Agent in Charge, FBI Miami. “This investigation is not over.”
IRS-CI Special Agent in Charge Jose A. Gonzalez stated, “The defendant made contributions to the presidential primary campaign of John McCain and the United States Senate campaign of Charlie Crist, which were unlawfully reimbursed by RRA. Today’s action demonstrates our collective efforts to enforce the law and ensure public trust. This investigation is not over as we are committed to ‘following the money trail’ and pursuing the evidence wherever it leads.”
Mr. Ferrer commended the investigative efforts of the FBI and IRS-CI. 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.
Fort Pierce Man Sentenced for Firearms 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 the sentencing of Samuel George Brown, 49, of Fort Pierce, on charges of prohibited possession of firearms, in violation of Title 18, United States Code, Section 922(k); and, possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c). Brown appeared in court on March 7, 2014, in Fort Pierce before U.S. Senior District Judge Donald L. Graham.
According to the indictment, as well as an earlier federal complaint, and facts agreed upon by the parties at sentencing, Brown was found in possession of a .380 caliber Hi-Point handgun, as well as a .22 caliber Marlin rifle and a 12-gauge Mossberg shotgun, with corresponding ammunition, in his home. Officers of the St. Lucie County Sheriff’s Office discovered the firearms and ammunition, together with marijuana packaged for sale, when they executed a search warrant at Brown’s Fort Pierce home on June 8, 2013. Brown is a previously convicted felon.
Brown pleaded guilty to two counts of the indictment, charging him with possession of a firearm with an obliterated or altered serial number; and possession of a firearm in furtherance of a drug trafficking crime. Judge Graham sentenced Brown to a term of 66 months in prison, to be followed by three years of supervised release, and payment of a $200 special assessment.
Mr. Ferrer commended the investigative efforts of ATF, the Fort Pierce Police Department, and the St. Lucie County Sheriff’s Office. 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.
Ana Alliegro Charged with Violation of the Federal Election Campaign ActRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Ana Alliegro, 44, of Granada, Nicaragua, was arrested and brought back to the United States from Nicaragua, having been previously indicted for having violated the Federal Election Campaign Act in connection with the Democratic Party primary election for Florida’s 26th Congressional District. Alliegro’s initial appearance is scheduled for March 10, 2014 at 1:30 p.m. before U.S. Magistrate Judge Patrick White.
The indictment charges Alliegro with engaging in a conspiracy to make false statements to the Federal Election Commission and to violate the contribution limits of the Federal Election Campaign Act (Count 1); making a false statement (Count 2); and making illegal campaign contributions (Counts 3 & 4). If convicted, Alliegro faces a maximum term of up to five years in prison on each count and a fine of up to $250,000 on each count.
Mr. Ferrer commended the investigative efforts of the FBI’s Miami Area Corruption Task Force, the Legal Attaché Panama City, Panama and Diplomatic Security Service. The case is being prosecuted by Senior Litigation Counsel Thomas J. Mulvihill.
An Indictment is only an accusation and a defendant is presumed innocent until proven guilty.
Attachment:
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.
Former TD Bank Employee and Co-Defendant Plead Guilty in Identity Theft Tax Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), announce that Tenisha Nkesha Francis, 32, of Lake Worth, and Ryan Michael Francis, 27, of Riviera Beach, pled guilty today for their participation in a stolen identity tax refund scheme. Sentencing is scheduled for September 11, 2014 at 1:30 p.m. before Senior U.S. District Judge Kenneth L. Ryskamp.
Specifically, the defendants each pled guilty to one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2, and one count of theft of government funds, in violation of Title 18, United States Code, Sections 641 and 2. At sentencing, the defendants each face a mandatory term of two years in prison for the aggravated identity theft charge, to run consecutively to any other sentence, and a maximum term of ten years in prison for the theft of government funds charge.
According to court documents, Tenisha Francis worked as a Financial Services Representative at TD Bank. Tenisha Francis opened seven fraudulent accounts at the bank with stolen identification information obtained from co-defendant Ryan Francis. She was paid between $200 and $500 to open each fraudulent account. After opening the accounts, Tenisha Francis performed maintenance on these accounts and changed certain identifiers associated with the accounts, such as customers’ dates of birth, addresses and telephone numbers. Stolen U.S. Treasury checks were deposited into the accounts, and funds were withdrawn via check card purchases, ATM withdrawals and checks payable to third parties including Ryan Francis and his wife, Vanessa Brown, and Ryan Francis’ company, J.A. Kingz Automotive, LLC.
The amount of loss attributable to Tenisha Francis’ relevant conduct is between $120,000 and $200,000. The amount of loss attributable to Ryan Francis’ relevant conduct will be determined at his sentencing hearing.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. The case is being prosecuted by Assistant U.S. Attorney Rinku Tribuiani.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Defendants Convicted 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, Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division, Jose A. Gonzalez, 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 convicted today by a federal jury in Miami for their participation in a stolen identity tax refund scheme resulting in millions of dollars in fraudulent activity. Sentencing is scheduled for June 12, 2014, at 9:30 a.m. before U.S. District Judge Robert N. Scola.
Specifically, each of the defendants was convicted of one count of conspiring to defraud the Internal Revenue Service (IRS), commit wire fraud, and commit aggravated identity theft, all in violation of 18 U.S.C. § 371; two counts of wire fraud, in violation of 18 U.S.C. §§ 1343 and 2; and two counts of aggravated identity theft, in violation of 18 U.S.C. §§ 1028A(a)(1) and 2. The defendants face a possible maximum statutory sentence of five years in prison for the conspiracy count, 20 years in prison for each count of wire fraud, and two years consecutive in prison for each count of aggravated identity theft.
Evidence at trial established that 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 return refunds of which the IRS paid out approximately $14 million. Defendant 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.
Co-defendants Marie Eleazard, a/k/a “Fanfan,” 32, of Miami, Henry Dorvil, a/k/a “D,” 35, of Hollywood, Brandon Johnson, 29, of Miami Gardens, Ronald Gustave, 36, of Miami, Ruth Cartwright, a/k/a “Princess,” 30, formerly of Plantation, Dukens Eleazard, a/k/a “DK,” 33, of Pembroke Pines, Luckner St Fleur, a/k/a “Nene,” 32, of Miami, Jesse Lamar Harrell, 26, of Miramar, and Corey Williams, 30, of Miami Gardens, each previously pled guilty to one count of conspiring to defraud the government, in violation of 18,U.S.C. § 371, and one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A(a)(1). Marie Eleazard is scheduled to be sentenced on April 9, 2014 at 8:30 a.m. Sentencing for Dorvil, Johnson, and Gustave is scheduled for April 18, 2014 at 8:30 a.m. Cartwright is scheduled to be sentenced on May 7, 2014 at 8:30 a.m. Dukens Eleazard, St Fleur, and Harrell are scheduled to be sentenced on May 9, 2014 at 8:30 a.m. Williams is scheduled to be sentenced on May 21, 2014 at 8:30 a.m.
Co-defendant Marc Leroy Saint Juste, 47, of Tamarac, previously pled guilty to one count of conspiring to defraud the government, in violation of 18 U.S.C. § 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 18 U.S.C. § 1001(a)(2), and was sentenced to time served.
The indictment was dismissed against Miguel Patterson, 35, of Miami.
U.S. Attorney Ferrer and Assistant Attorney General Keneally commended the investigative efforts of the IRS-CI, FBI, and USSS. 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.
Plantation Man Indicted for Distribution and Possession of Child PornographyRead 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 Patrick Lynn, Chief, Davie Police Department, announce the indictment of Daniel Jonathan Gast, 28, of Plantation, on child pornography charges.
The two-count indictment charges Gast with one count of distribution of child pornography and one count of possession of child pornography, in violation of Title 18, United States Code, Section 2252(a). If convicted, Gast faces a mandatory minimum sentence of five years in prison and a maximum sentence of up to 20 years in prison. Gast would also be required to register as a sex offender in any jurisdiction in which he lives, works or attends school.
According to documents filed with the court, in August 2013, law enforcement officials assigned to the South Florida Internet Crimes Against Children (ICAC) Task Force were conducting an investigation into the advertisement of suspected child pornography over publicly available Peer to Peer (P2P) networks. Their investigation revealed an IP address registered to Gast at his Plantation residence. A search of Gast’s residence in Plantation yielded no evidence of the suspected child pornography. However, a subsequent search of a music school in Broward County, where Gast worked as a music teacher, resulted in the discovery of Gast’s laptop which had over 95 video files of child pornography, much involving children under the age of 12, who were made to engage in the sexually explicit conduct depicted.
Anyone with questions or concerns should contact Davie Police Department Detective Adam Granit at (954) 693-8365.
Mr. Ferrer commended the investigative efforts of ICE-HSI, the Davie Police Department, and the South Florida ICAC Task Force. The case is being prosecuted by Assistant U.S. Attorney Karen Stewart.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
North Miami Man Pleads Guilty in $2.4 Million Tax Refund Scam Involving Large-Dollar Fraudulent Tax Refund ClaimsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), and Ronald J. Verrochio, Postal Inspector in Charge, United States Postal Inspection Service (USPIS), announce that Jeaneno Florent, 38, of North Miami, pled guilty today for his role in a tax refund scheme that resulted in the submission of approximately $2.4 million in fraudulent refund claims.
Florent pled guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343. Sentencing for Florent is scheduled for May 9, 2014 at 9:30 a.m. before U.S. District Judge Federico A. Moreno. At sentencing, the defendant faces a maximum term of 20 years in prison.
According to the plea documents, the defendant caused a false and fraudulent individual income tax return in his own name to be submitted to the Internal Revenue Service (IRS) in January 2012. The tax return falsely and fraudulently indicated that the defendant worked at Capitol Records, Inc. and made approximately $8.7 million and was entitled to a refund of approximately $613,000. In reality, the defendant had not worked at Capitol Records and was not entitled to this refund. IRS approved payment and issued a refund check for approximately $613,000 in the defendant’s name.
According to plea documents and documents submitted in court, the defendant also submitted a similar fraudulent tax refund claim with the IRS in 2013 seeking approximately $573,000 and conspired with Gerald Duverger who submitted similar fraudulent tax refund claims for approximately $613,000 and approximately $573,000 in Duverger’s name in 2012 and 2013, respectively.
Mr. Ferrer commended the investigative efforts of IRS-CI, USSS and USPIS. The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Men Arrested on Charges of Participating in A Cargo Theft RingRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Ric L. Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, announce the arrests of Eliesky Sanchez, 31, and Reinaldo Garcia Suarez, 39, both of West Palm Beach. The defendants were charged by criminal complaint with conspiracy to receive goods stolen from an interstate or foreign shipment, in violation of Title 18, United States Code, Section 659, and sale or receipt of stolen property, in violation of Title 18, United States Code, Section 2315, all in violation of Title 18, United States Code, Section 371.
The defendants made their initial appearances today at 10:00 a.m. before U.S. Magistrate Judge Dave Lee Brannon. A pre-trial detention hearing for Sanchez has been scheduled for March 5, 2014. A pre-trial detention hearing for Garcia Suarez has been scheduled for March 7, 2014.
According to the criminal complaint, the investigation revealed that Eliesky Sanchez and Reinaldo Garcia Suarez were actively selling and providing as samples property which bore identifying numbers that matched the identifying numbers on the products stolen from different tractor trailer thefts. Items sold and/or provided as samples included, but were not limited to, Liquid Crystal Display vehicle monitors, Invicta wrist watches, Ralph Lauren clothing items, Proctor & Gamble products, and Nestle brand products.
According to the criminal complaint, on February 25, 2014, a confidential informant (CI) met with the defendants at the Extra Space Storage facility located in Palm Springs. During their meeting, the defendants opened the storage units and showed the CI pallets of merchandise inside of each unit. During this time, the CI had an empty trailer dropped off at this location as part of his undercover role. The CI discussed with the defendants filling the trailer with merchandise which the CI would purchase on February 27, 2014, and then ship to Brazil. As part of these arrangements, the CI agreed to purchase approximately three 53’ trailer loads of merchandise from the defendants over the course of a few days.
If convicted, the defendants face a maximum of five years in prison on the conspiracy charge.
Mr. Ferrer commended investigative efforts of the FBI and the Palm Beach County Sheriff’s Office. This case is being handled by Assistant U.S. Attorney William T. Zloch.
A criminal complaint is merely 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.
Two Defendants Sentenced in Identity Theft Tax Refund Fraud Scheme Involving Thousands of Patients' Personal Identity InformationRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that defendants Tiffany Shenae Cooper, 33, of Deerfield Beach, and Angela Dione Rosier, 41, of Coral Springs, were sentenced today for their participation in a stolen identity tax refund scheme. Cooper was sentenced to 57 months in prison, to be followed by three years of supervised release. Rosier was sentenced to 49 months in prison, to be followed by three years of supervised release. The court also ordered both defendants to pay $129,390.06 in restitution to the IRS and the medical services provider whose database had been breached.
Cooper previously 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. Rosier previously pled guilty to one count of conspiracy to commit access device fraud, in violation of Title 18, United States Code, Section 1029(b)(2).
Co-defendants Michael Ali Bryant, Sr., 41, of Lauderdale Lakes, and Marquis Onigirin Moye, 24, of Pompano Beach, each previously 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. Bryant’s sentencing is scheduled for April 11, 2014. Moye is scheduled to be sentenced on March 28, 2014. At sentencing, each of the defendants face a maximum of ten years in prison for the possession of unauthorized access devices charge, and a mandatory term of two years in prison, consecutive to any other term in prison, for the aggravated identity theft charge.
Michael Bryant's wife and co-defendant Latina Rashawn Bryant, 43, of Lauderdale Lakes, previously pled guilty to one count of using an unauthorized access device, 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 March 28, 2014.
According to court documents, a confidential source (CS) initially approached Michael Bryant and inquired about purchasing narcotics. Bryant told the CS that he did not have any narcotics but that he did have personal identity information (PII) that he was willing to sell to the CS. The CS made a controlled purchase of ten pages (each page containing approximately 20 to 25 names) of PII. Bryant instructed the CS on how to commit tax fraud using the PII, and provided the CS with specific instructions on what information to enter into the web pages of the internet-based tax services to obtain a tax refund. An examination of the PII revealed that it was from a medical services provider.
Co-defendant Rosier was an employee of the medical services provider. Co-defendant Cooper spoke to Rosier to obtain user names and passwords for current employees of the medical services provider. Cooper admitted to illegally logging on to the medical services provider’s computer network and downloading PII for the purpose of committing various types of fraud. She was assisted in her activities by Rosier and co-defendant Moye.
Mr. Ferrer commended the investigative efforts of the FBI and IRS-CI. 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.