Southern District of Florida
Press releases recorded for this federal judicial district.
Palm Beach County Resident Sentenced for Enticement of A Minor to Engage in Unlawful Sexual ActivityRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Gary Goldberg, 49, of Palm Beach County, was sentenced yesterday to 156 months in prison by U.S. District Judge Kenneth A. Marra in West Palm Beach for enticing a minor to engage in an illegal sexual activity, in violation of Title 18, United States Code, Section 2422(b).
According to documents filed with the court, Goldberg entered into a relationship with a 17 year old victim and her 15 year old friend. Goldberg paid the minors to allow him to take sexually explicit photographs of them.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mr. Ferrer commended the investigative efforts of the FBI, the Boca Raton Police Department, the FBI Safe Streets Task Force, and the South Florida Minor Vice Task Force. The case is being prosecuted by Assistant U.S. Attorney Lothrop Morris.
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 Marine Life Dealer and Corporation Sentenced for Illegal Wildlife TraffickingRead the Press Release
Wilfredo A. Ferrer, United States Attorney for the Southern District of Florida, and Edward Grace, Deputy Assistant Director U.S. Fish & Wildlife Service, Office of Law Enforcement, announce that Jerrold C. Tieder, 47, of Dania, Florida and Tropical Fish Transhippers, Inc. (TFT), a Florida corporation based in Dania Beach, were convicted and sentenced today in Key West for transporting and selling wildlife in interstate commerce, specifically nurse sharks, with a fair market value in excess of $350.00, knowing the marine life was taken, possessed, transported, sold, and intended to be sold in violation of the laws and regulations of the State of Florida, contrary to the federal Lacey Act, Title 16, United States Code, Sections 3372(a)(2)(A), (a)(4), 3373(d)(1)(B), and Title 18, United States Code, Section 2.
The defendants entered their guilty pleas to the single charge before U.S. District Judge Jose E. Martinez, who after accepting the guilty pleas imposed sentence on both defendants. Tieder was sentenced to a term of probation of two years, a criminal fine of $1,000, and ordered to make a payment of $4,000 as a special condition of his probation to the National Fish & Wildlife Foundation (NFWF), a Congressionally-chartered organization authorized by law to receive payments arising as a result of a criminal conviction. NFWF will distribute the funds to the Mote Marine Laboratory, Summerland Key Branch, to promote research, management, education, conservation, and restoration of marine life and corals throughout the waters of the Florida Keys National Marine Sanctuary and the Florida Keys. TFT was placed on probation for a period of three years and ordered to pay a criminal fine of $1,000, with an additional payment to the NFWF of $1,500.
According to the indictment, joint factual statements submitted to the Court, and statements in court, Tieder was President of TFT, a corporation with its principal place of business in Dania, Florida. Tieder, through TFT, was engaged in the day to day business of purchasing, importing, distributing, and selling in interstate and foreign commerce various species of marine life, including live corals, live fish, and live rock.
In October 2012, the defendants purchased four juvenile nurse sharks (Ginglymosthoma cirratum) from a supplier located in Monroe County, Florida. The supplier did not hold the required license or permit from the State of Florida which would permit the supplier to harvest or sell sharks. In early November 2012, an employee of TFT confirmed the availability and willingness of TFT to sell eight juvenile nurse sharks to a customer outside the State of Florida. Thereafter, on November 6, 2012, a supplier in Monroe County transported four nurse sharks from Marathon Key to TFT at Dania. Unknown to the supplier or TFT, the four sharks had been outfitted with Passive Integrated Tags (PIT), each responding to an electronic reader with a unique 15 digit serial number.
On November 7, 2012, TFT delivered eight nurse sharks to Fort Lauderdale International Airport, for shipment in interstate commerce to a customer of TFT. Four of the sharks were scanned and found to be carrying the PIT Tags previously placed by Special Agents of the U.S. Fish & Wildlife Service. TFT subsequently received payment for the eight sharks in the amount of $440.00.
Mr. Ferrer commended the investigative efforts of the U.S. Fish & Wildlife Service, Office of Law Enforcement and NOAA Fisheries Office of Law Enforcement. This case was prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Government Intervenes in Lawsuits Against Health Management Associates Inc. Hospital Chain Alleging Unnecessary Inpatient Admissions and Payment of KickbacksRead the Press Release
The government has intervened in eight False Claims Act lawsuits against Health Management Associates Inc. (HMA) alleging that HMA billed federal health care programs for medically unnecessary inpatient admissions from the emergency departments at HMA hospitals and paid remuneration to physicians in exchange for patient referrals, the Justice Department announced today. The government also has joined in the allegations in one of these lawsuits that Gary Newsome, HMA’s former CEO, directed HMA’s corporate practice of pressuring emergency department physicians and hospital administrators to raise inpatient admission rates, regardless of medical necessity. HMA operates 71 hospitals in 15 states: Alabama, Arkansas, Florida, Georgia, Kentucky, Mississippi, Missouri, North Carolina, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Washington and West Virginia.
“Unlawful financial relationships between hospitals and physicians solely to increase referrals are, unfortunately, a common practice that corrupts the health care system,” said U.S. Attorney for the Southern District of Florida Wifredo A. Ferrer. “The system also suffers a direct financial hit when hospitals fraudulently increase admissions where they are not indicated, solely to benefit hospitals’ bottom line. We will not relent in our efforts to combat these kinds of fraudulent schemes and recover funds for the Medicare program.”
“The Department of Justice is committed to ensuring that health care providers who attempt to misuse federal health care programs for their own profit are held accountable,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “Schemes such as this one can contribute significantly to the rising cost of delivering health care and create needless patient risk.”
The lawsuits allege that HMA’s corporate officers, at the direction of Newsome, exerted significant pressure on doctors in the emergency department to admit patients who could have been placed in observation, treated as outpatients or discharged, and that this resulted in the submission of inflated or false claims to federal health care programs. One lawsuit also alleges that patients were improperly admitted for scheduled surgical procedures that should have been done on an outpatient basis. The complaints further allege that HMA paid kickbacks, either in the form of bonuses or awarded contracts, to physician groups staffing HMA emergency rooms to induce the physicians to admit patients unnecessarily.
In addition, the lawsuits allege that HMA paid kickbacks to other physician groups to induce referrals. For example, HMA allegedly provided improper remuneration, both through the provision of free office space and staffing and through direct payments, to Primary Care Associates, a physician practice group in Port Charlotte, Fla., in exchange for referrals to two HMA hospitals in Florida. HMA also allegedly paid kickbacks to physicians in Lancaster, Pa., by paying inflated prices for physician-owned assets, providing sham medical directorship contracts and selling assets to physicians for below fair market value.
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid and other federally funded programs. The Stark Statute prohibits a hospital from submitting claims for patient referrals made by a physician with whom the hospital has an improper financial arrangement. Both the Anti-Kickback Statute and Stark Statute are intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based on the best interests of the patient.
“This intervention decision marks the culmination of a lengthy and comprehensive investigation into a variety of serious fraud allegations against one of our district’s largest health care providers,” said Acting U.S. Attorney for the Middle District of Florida A. Lee Bentley III. “We hope that this case will serve as a reminder to our provider community that this office is fully engaged in the struggle against misconduct of this kind.”
“Improper hospital admissions cost the government millions of dollars in unnecessary fees and subject patients to excessive treatment and needless risk, driving up the cost of health care,” said U.S. Attorney for the Western District of North Carolina Anne M. Tompkins. “The government will pursue aggressively providers that boost their profits at the expense of Medicare and other government programs.”
“HMA’s submission of claims to Medicare, Medicaid and TRICARE for unnecessary inpatient stays is a serious matter that threatens the integrity of our entire health care system, and the end result is that those who need health care cannot afford it,” said U.S. Attorney for the Middle District of Georgia Michael J. Moore. “The Middle District of Georgia is committed to fighting health care fraud.”
“Investigations such as these are a very high priority for the FBI because of the potential impact to the nation’s health care system and to the public,” said FBI Assistant Director Ron Hosko. “Because of the priority nature of these cases as well as their complexity, we have created a centralized team to provide nationwide support to our field offices called the Major Provider Response Team. The FBI is committed to working with our partners in these types of investigations and appreciates the public’s involvement in the process.”
The lawsuits were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government when they believe that defendants submitted false claims for government funds and to receive a share of any recovery. The False Claims Act also permits the government to intervene in such lawsuits, as it has done in these cases. The eight lawsuits are pending in the Southern and Middle Districts of Florida, Middle District of Georgia, Northern District of Illinois, Western District of North Carolina, Eastern District of Pennsylvania and District of South Carolina.
The government’s intervention in these matters illustrates its emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $17 billion through False Claims Act cases, with more than $12.2 billion of that amount recovered in cases involving fraud against federal health care programs.
These matters were investigated by the Commercial Litigation Branch of the Justice Department’s Civil Division; the U.S. Attorney’s Offices for the Southern and Middle Districts of Florida, Middle District of Georgia, Northern District of Illinois, Western District of North Carolina, Middle and Eastern Districts of Pennsylvania and District of South Carolina; the Department of Health and Human Services Office of Inspector General and the Federal Bureau of Investigation.
The cases are captioned United States ex rel. Paul Meyer v. Health Mgmt. Assocs. Inc., et al.,11-62445 cv-Williams (S.D. Fla.); United States ex rel. Brummer v. Health Mgmt. Assocs. Inc., et al.,3-09-cv-135 (CDL)(M.D. Ga.); United States ex rel. Williams v. Health Mgmt. Assocs. Inc. et al., 3:12-cv-151 (M.D. Ga.); United States ex rel. Plantz v. Health Mgmt. Assocs. Inc., et al., 13C-1212 (N.D. Ill.); United States ex rel. Miller v. Health Mgmt. Assocs. Inc., et al., 10-3007 (E.D. Pa.); United States ex rel. Mason v. Health Mgmt. Assocs. Inc., et al., 3:10-CV-472-GCM (W.D.N.C.); United States ex rel. Nurkin v. Health Mgmt. Assocs. Inc., et al., 2:11-cv-14-FtM-29DNF (M.D. Fla.); United States ex rel. Jacqueline Meyer & Cowling v. Health Mgmt. Assocs. Inc., et al.; 0:11-cv-01713-JFA (D.S.C.).
The claims asserted against HMA and Newsome are allegations only, and there has been no determination of liability.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Seven Defendants Indicted in $49.6 Million Mortgage Fraud Scheme Involving North Carolina Property DevelopmentRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Fred W. Gibson, Jr., Acting Inspector General, Federal Deposit Insurance Corporation, Office of Inspector General (FDIC-OIG), announce the unsealing of a 15-count indictment charging seven defendants in a mortgage fraud scheme which resulted in the approval of approximately $49.6 million in fraudulent loans, and millions in losses to the lenders, including Bank of America, Regions Bank, SunTrust Bank, and Wachovia Bank. The properties referred to in the indictment consist of multiple vacant lots in a community development in North Carolina.
The indictment charges the following individuals as co-conspirators: Domenico “Dom” Rabuffo, 77, of Miami; Mae Rabuffo, 74, of Fort Lauderdale; Diane M. Hayduk, 64, of Miami; Raymond E. Olivier, 52, of Land O’ Lakes; Curtis Allen Davis, 51, of Tampa; Victor Miguel Vidal, 48, of Miami; and, Lazaro Jesus Perez, 43, of Miami Lakes.
According to the indictment, the defendants conspired to perpetrate a complex $49.6 million mortgage fraud scheme against various FDIC-insured lenders from 2003 to 2008. Defendants Domenico Rabuffo and Mae Rabuffo used shell companies to acquire ownership and control of a purported residential property development known as Hampton Springs, located in Cashiers, North Carolina. According to the indictment, Domenico Rabuffo, Mae Rabuffo, Diane M. Hayduk, Raymond E. Olivier, and Curtis Allen Davis recruited numerous straw buyers to purchase lots in the Hampton Springs development. The straw buyers financed the purchase of the building lots in Hampton Springs using mortgage loans and further obtained construction loans for the same properties. Defendants caused the straw buyers to submit false and fraudulent loan applications and related documents to the lenders to ensure that the straw buyers qualified for the loans. Defendant Victor Miguel Vidal served as a loan officer at SunTrust Mortgage, where he shepherded the fraudulent loan applications of the straw buyers through the approval process, including fraudulent applications for $33 million in construction loans. Defendant Lazaro Jesus Perez furnished fictitious and fraudulent accountant’s letters to Vidal, in support of various fraudulent mortgage loan applications submitted to SunTrust Mortgage.
Ultimately, based on the indictment, the lenders were induced to advance approximately $49.6 million in loan proceeds in connection with this scheme. The proceeds of the defendants’ mortgage fraud scheme were funneled through shell-corporation accounts controlled by Domenico Rabuffo and Mae Rabuffo, and other accounts, for the use and benefit of the defendants and their co-conspirators, and to further the defendants’ fraudulent scheme.
The indictment includes charges of conspiracy to commit bank fraud and wire fraud affecting a financial institution, and substantive bank fraud offenses. The offenses charged in the indictment each carry a statutory maximum sentence of 30 years in prison, a $1 million fine, and mandatory restitution.
Mr. Ferrer commends the investigative efforts of the FBI and FDIC-OIG. The case is being prosecuted by Assistant U.S. Attorney Dwayne E. Williams.
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.
Passenger Charged in Making Threats to Take Down AirplaneRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Katherine Fernandez Rundle, Miami-Dade County State Attorney, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and J.D. Patterson, Director, Miami-Dade Police Department (MDPD), announce today the filing of a criminal complaint charging Francisco Fernando Cruz, 22, a citizen of Brazil, with sending threatening emails claiming that a TAM Airline flight from Miami to Brasilia “will go down”.
According to the criminal complaint, on January 8, 2014, an e-mail was sent to MDPD as well as TAM Airlines. The content of the e-mail made a specific threat against a TAM Airlines Flight which was to depart on January 10, 2014, from Miami to Brasilia. The threat stated the following: “Flight must not take off. Targeted. It will go down. Retaliation. Cargo is dangerous. Be advised.”
U.S. Attorney Wifredo A. Ferrer stated, “Law enforcement remains ever vigilant for threats to domestic and international air travel. We will leave no stone unturned when a threat to the safety of air passengers is made and to ensure that justice is served.”
Miami-Dade State Attorney Katherine Fernandez Rundle stated, “The protection of our flying public depends on the skills and expertise of our federal, state, and local law enforcement team. This case shows that South Florida’s law enforcement professionals, working together like clockwork, will not let fear hamper our ability to travel and live our lives productively.”
“The FBI and its partners take threats of this nature very seriously,” said Michael B. Steinbach, Special Agent in Charge of FBI Miami. “Through the hard work of Miami Dade PD, Customs and Border Protection and the FBI’s Newark office, the flight was not disrupted.”
“Once again, the successful collaboration between federal, state, and local authorities yields an important indictment. The public safety of those traveling is paramount, and any threats made to disrupt it will be investigated without impunity,” said J.D. Patterson, Director, Miami-Dade Police.
MDPD was able to trace the origin of the e-mail and determined the e-mail originated from a computer at Montclair State University in Montclair, NJ. The university was able to capture video of the person that utilized the kiosk that sent the e-mail.
The following day, the email was resent, again with the threat. Law enforcement were able to identity Cruz as the sender of the two emails. Cruz traveled from New York to Miami and was scheduled to travel to Brasilia on the flight against which he made the threat.
If convicted, the defendant faces a statutory maximum of five years in prison and a $250,000 fine. The case is set for pretrial detention hearing on January 14, 2014 and for arraignment on January 24, 2014. Both hearings are scheduled for 10:00 a.m. before the duty magistrate.
Mr. Ferrer commended the investigative efforts of the FBI and MDPD. The case is being prosecuted by Assistant U.S. Attorneys Karen Gilbert and Jaime Galvin.
A complaint is only an accusation and the defendants are presumed innocent until proven guilty.
Attachment:
Complaint (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.
Florida Residents Sentenced for Defrauding and Threatening Spanish-Speaking ConsumersRead the Press Release
Two individuals charged with running a telemarketing operation that defrauded Spanish-speaking consumers were sentenced yesterday in Miami federal district court, the Department of Justice and U.S. Postal Inspection Service (USPIS) announced. Daniel Carrasco, 54, was sentenced to serve 121 months in federal prison, and Federico Martin Gioja, 45, was sentenced to serve 108 months in federal prison, for their operation of telemarketing companies in Argentina whose representatives consistently lied to consumers about products they would receive and threatened consumers with consequences of failure to pay for their shipments. In addition to their sentences of imprisonment, Carrasco and Gioja were ordered to forfeit a variety of assets, including approximately 20 pieces of real property, an automobile, motorcycles, a boat, a jet ski and firearms.
“Fraud is unacceptable,” said U.S. Attorney for the Southern District of Florida Wifredo A. Ferrer. “Fraud by threat and intimidation is particularly troublesome because it targets the perceived, but oftentimes real, vulnerabilities of those preyed upon. In this case, the defendants targeted Spanish-speaking consumers and falsely threatened them with arrest, deportation or fines when the consumers refused delivery for products they had not ordered. Such tactics are intolerable. My office is committed and stands united with the department’s Civil Division, Consumer Protection Branch to stem such fraud.”
“The Department of Justice is committed to protecting all consumers from fraud, regardless of the language they speak,” said Assistant Attorney General for the Civil Division Stuart F. Delery. “We will be particularly vigilant towards schemes that target specific populations, and we will track down fraudulent actors whether they commit their offenses from the United States or abroad, and whether they commit them in English or another language.”
Carrasco’s and Gioja’s telemarketers promoted products such as vitamins, lotions and English-language training products. They also promised buyers would receive valuable gifts such as expensive watches and perfumes, gift cards and medical assistance and insurance. However, the companies frequently did not deliver products ordered by consumers. Since the companies did not have many of the products they promised to send to consumers, they sent other products instead. Then, after consumers refused delivery of the companies’ shipments, the Argentinian phone room telemarketers called and falsely threatened consumers with arrest, deportation or fines on their gas and electric bills.
As part of their guilty pleas, Carrasco and Gioja admitted they routinely changed the names of the companies under which they did business to evade consumer complaints, regulators and law enforcement. A variety of state agencies contacted the businesses regarding their illicit practices. Those working with Carrasco and Gioja referred to these companies tainted by complaints as “burnt.” Rather than changing the “burnt” companies’ practices, Carrasco and Gioja incorporated new companies and started the same illegal practices again.
Also in pleading guilty, Carrasco and Gioja admitted their telemarketers falsely represented to consumers that they were affiliated with Spanish-language television networks. This fraud first came to light when the Spanish language network Univision informed the USPIS they believed a company was involved in a fraud scheme in which it misrepresented its affiliation with the network. Subsequently, USPIS investigated the case, submitted the affidavit in support of the criminal complaint and arrested the defendants.
“Sadly, these types of crimes create a distrust in people and leave victims feeling ashamed for falling for a scam,” said Inspector In Charge Ronald Verrochio for the U.S. Postal Inspection Service, Miami Division. “The U.S. Postal Inspection Service remains committed to pursuing crimes that are furthered via the U.S. mail and building trust with consumers. Postal Inspectors will investigate and bring the criminals to justice.”
Carrasco and Gioja were originally charged by criminal complaint and arrested on June 26, 2013. Both defendants were later indicted on July 25, 2013, and pleaded guilty on September 24, 2013. Carrasco and Gioja, and a third individual, Romino Tasso, also were named in a civil suit filed by the Justice Department. In the civil case, the Justice Department requested and obtained from the court a preliminary injunction barring further lies to consumers and freezing the assets of Carrasco, Gioja, Tasso and companies under their control.
Assistant Attorney General Delery commended the Postal Inspection Service for their investigative efforts and thanked the U.S. Attorney’s Office for the Southern District of Florida for their contributions to the civil case. The criminal case was prosecuted by Assistant Director Richard Goldberg with the Department of Justice’s Civil Division, Consumer Protection Branch and Assistant U.S. Attorney Timothy Abraham of the Southern District of Florida.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
City of North Miami Resident Convicted in Stolen Tax Refund SchemeRead 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, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Tom Weschler, Chief, City of Naples Police Department, announce that Marie Jean Baptiste, 22, of North Miami, was convicted by a federal jury of three counts of stealing tax refunds, in violation of Title 18, United States Code, Sections 641 and 2. The trial was held before U.S. District Court Judge Robin S. Rosenbaum. Sentencing is scheduled for March 21, 2014 at 9:30 a.m. Baptiste faces a maximum sentence of ten years in prison for each count.
According to the indictment and evidence presented at trial, Baptiste received four tax refunds that she knew were stolen, and converted them for her own use and gain. Baptiste participated in a scheme in which fraudulent tax returns were filed directing the tax refunds to be directly deposited into her bank account. After the tax refunds were deposited into her bank account, Baptiste would withdraw the tax proceeds from the bank and various ATMs for her own use and gain.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI and the City of Naples Police Department. This case was prosecuted by Assistant U.S. Attorney Gera R. Peoples.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Southern District of Florida U.S. Attorney’s Office Collects More Than $94 Million in Civil and Criminal Actions in Fiscal Year 2013Read the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, announced today that the Southern District of Florida collected $70,006,305.57 in criminal and civil actions in Fiscal Year (FY) 2013. Of this amount, $33,136,076.16 was collected in criminal actions and $36,870,229.41 was collected in civil actions. The office also collected $24,327,589 in criminal and civil forfeitures. Total, during FY 2013, our office collected $94,333,894.57 related to criminal and civil actions and forfeitures – more than double the appropriated budget of our office.
Additionally, the Southern District of Florida worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $272,476,057.95 in cases pursued jointly with these offices. Of this amount, $5,523.71 was collected in criminal actions and $272,470,534.24 was collected in civil actions.
U.S. Attorney Wifredo A. Ferrer stated, “I am proud of the men and women of our office who work hard to secure restitution for crime victims and recover monies for the U.S. taxpayers. They work hard not only to protect the people of this great country of ours, but to ensure that criminals do not profit from their crime. Today’s numbers reflect that the U.S. Attorney's Office collects substantially more money than it spends and provides the taxpayers with an excellent return on their investment.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in Southern District of Florida, working with partner agencies and divisions, collected $24,327,589 in asset forfeiture actions in FY 2013. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
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.
Second Defendant Pleads Guilty in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Daniel C. Alexander, Chief, Boca Raton Police Department, announce that defendant Brandon James, of Miami, pled guilty today for his participation in a stolen identity tax refund scheme. Sentencing is scheduled for March 26, 2014 at 9:00 a.m. before Senior U.S. District Judge Daniel T.K. Hurley.
Specifically, James pled guilty to one count of conspiracy to steal monies of the United States, in violation of Title 18, United States Code, Section 641, the conspiracy being a violation of Title 18, United States Code, Section 371; one count of theft of government funds, in violation of Title 18, United States Code, Section 641; and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. At sentencing, the defendant faces a maximum of five years in prison for the conspiracy charge, a maximum of ten years in prison for the theft of government funds charge, and a mandatory term of two years in prison, consecutive to any other term in prison, for the aggravated identity theft charge.
According to court documents, James and co-defendant Laron Lanece Larkin were involved in a scheme to unjustly enrich themselves by obtaining income tax refunds to which they were not entitled. The defendants and their co-conspirators submitted false income tax returns in the names of individuals without their knowledge or consent. To receive the fraudulent refunds, James and a co-conspirator purchased debit cards at a convenience store with stolen identity information, such as names, dates of birth and Social Security account numbers belonging to real persons. Based upon the false income tax returns submitted, the lRS sent the income tax refunds electronically to the pre-purchased debit cards. The defendant admitted that he cashed-out the monies electronically transferred to the debit cards by making point of sale purchases and cash withdrawals from automatic teller machines at various locations within Broward and Palm Beach counties. The actual loss sustained by the U.S. Treasury in connection with this scheme is in excess of $43,000.
Laron Lanece Larkin, of Miami, was sentenced on October 7, 2013 to 36 months and one day in prison, to be followed by three years of supervised release. Larkin pled guilty to one count of conspiracy to steal monies of the United States, in violation of Title 18, United States Code, Section 641, the conspiracy being a violation of Title 18, United States Code, Section 371; and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
Mr. Ferrer commended the investigative efforts of IRS-CI, FBI, and the Boca Raton Police Department. 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.
Former Hialeah Police Officer and Wife Sentenced for Dealing in Firearms Without A LicenseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Scott J. Israel, Sheriff, Broward County Sheriff’s Office (BSO), and Ric L. Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO), announce that Rafael Oscar Valdes and Tammy Lynn Valdes, of Miami, Florida, were sentenced today in connection with the unlawful sale of hundreds of firearms without a federal firearms license. Rafael Oscar Valdes was sentenced to 60 months in prison, to be followed by three years of supervised release. Tammy Lynn Valdes was sentenced to 42 months in prison, to be followed by three years of supervised release. Both defendants were ordered to pay restitution in the amount of $6,613.51.
After a two week trial and over 300 items of admitted evidence, a jury convicted Rafael Valdes with dealing in firearms without a license (18 U.S.C. § 922(a)(1)(A)), making a false statement to a federal firearms dealer (18 U.S.C. § 922(a)(6)), interstate transportation of stolen property (18 U.S.C. § 2314), and filing false tax returns for years 2008 – 2011 (26 U.S.C. § 7206(1)). The jury also convicted Tammy Valdes with dealing in firearms without a license and filing false tax returns for years 2008 – 2011.
According to the court record and evidence presented at trial, Rafael Valdes was employed as a police officer with the City of Hialeah, Florida since 2004. Tammy Valdes was also once employed as a police officer with the City of West Miami, Florida, from 2004 until 2008 and the Town of Golden Beach, Florida, from 2008 through 2009. Neither defendant ever possessed a federal firearms license.
The Valdeses were initially indicted on December 13, 2012, for dealing in firearms without a license. Starting as early as July 2005, and continuing through June 2012, the defendants sold hundreds of firearms. In November 2008, the defendants began buying and selling firearms under the fictitious name of Custom Weapons Systems. The defendants advertised and sold over 100 firearms via the Internet to persons across the nation. The defendants also attended over 100 gun shows in the Southern and Middle Districts of Florida, during which they purchased over 400 firearms and sold over 500 firearms. At times, their purchase and subsequent sale of firearms took place on the same day. Additionally, the defendants sold nine firearms to undercover agents, solicited the purchase of firearms from undercover agents, and offered to acquire firearms for undercover agents on a repetitive basis.
As part of the initial indictment, Rafael Valdes was charged with making a false statement to a licensed firearms dealer in December 2008 when he purchased three AR-15 serialized lower receivers. Evidence admitted during trial proved that Rafael Valdes purchased those receivers for the sole purpose of building and selling completed rifles to three other officers after taking deposits. Rafael Valdes then falsely stated on an ATF Form 4473 that all three receivers were his, when in fact he was acquiring those receivers for other persons.
On July 31, 2013, a superseding indictment added tax charges against both defendants for filing false tax returns from 2008 – 2011, in that they failed to report their total income which included money derived from firearm sales. During trial, evidence was presented that the Valdeses failed to report over $350,000.00 in gross receipts during 2008 - 2011.
The superseding indictment also charged Rafael Valdes with transporting stolen firearm parts from the Hialeah Police Department where he was employed in the training section. During trial, the evidence showed that Rafael Valdes took apart firearms that were in evidence at the Hialeah Police Department and deemed to be destroyed. Rafael Valdes then advertised those parts for sale on the internet and later transported those parts to buyers located across the United States, including; New York, California, Utah, and Missouri. Rafael Valdes then deposited the proceeds into his personal bank account. In addition to selling parts of firearms that were once in evidence, Rafael Valdes also sold machine gun parts taken from six different Heckler and Koch, MP-5 machine guns which had been utilized by the Hialeah Police Department SWAT team.
Mr. Ferrer commended the investigative and cooperative efforts of ATF, IRS-CI, BSO, PBSO, Miami-Dade Police Department, Miami Beach Police Department, City of Miami Police Department, Virginia Gardens Police Department, Hialeah Police Department, FDLE, FBI and HSI. The case was prosecuted by Assistant U.S. Attorneys Adam McMichael and John McMillan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Three Key West Men Sentenced for Possession of Stolen FirearmsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, announce that Jermaine Lamar Roberts, 34, Amdado Cardenas, 47, and William Jon Ray, 45, all of Key West, Florida, were sentenced today. Roberts was sentenced to 110 months in prison, Cardenas was sentenced to 170 months in prison, and Ray was sentenced to 180 months in prison, all to be followed by five years of supervised release.
Roberts, Cardenas, and co-defendant Patrick Lawrence Stickney, 43, of Key West, Florida, previously pled guilty to one count of possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922(g), and one count of possession of a stolen firearm, in violation of Title 18, United States Code, Section 922(j). Ray previously pled guilty to one count of possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922(g). Stickney is scheduled to be sentenced on February 19, 2014 at 1:30 p.m. before U.S. District Judge James Lawrence King in Key West, Florida.
According to court documents, the defendants, all previously convicted felons, were involved in the possession and attempted sale of numerous firearms stolen from a recreational vehicle in Stock Island, Florida, including military-style assault rifles.
Mr. Ferrer commended the investigative efforts of ATF, and thanked the Monroe County Sheriff’s Office for its work in this case. 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.
Pill Mill Doctor Sentenced for Oxycodone ConspiracyRead 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), Miami Field Office, and Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, announce that Dr. Scott Becker, 54, of Pembroke Pines, Florida, was sentenced yesterday to 70 months in prison, to be followed by three years of supervised release. Dr. Becker previously pled guilty to conspiring to distribute and dispense large amounts of oxycodone without a legitimate medical purpose and outside the usual course of professional practice. Dr. Becker also pled guilty to money laundering.
According to court documents, Becker agreed to forfeit $470,400 in money and property representing the illegal narcotics proceeds he earned as a result of his involvement as a physician at All Pain Management in Dania Beach. Between February 16 and September 17, 2010, Becker was employed as a clinic doctor at All Pain Management which, at the time, was owned by co-conspirators Vincent Colangelo and several other unnamed individuals. Colangelo pled guilty to narcotics, money laundering and federal income tax offenses on April 2, 2012, arising from his ownership of six pill mill clinics and a pharmacy in Broward and Miami-Dade Counties. According to a review of medical records, while at All Pain Management, Becker prescribed 932,259 oxycodone, 30 milligram pills during the course of 4,821 patient visits and more than 98% of Becker’s patients received prescriptions for oxycodone. Becker also laundered approximately $24,142 in illegal narcotics proceeds.
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 thanked IRS-CI, DEA, and the Broward Sheriff’s Office, as well as the many other state and local agencies for their investigative work. This case is being prosecuted by Assistant U.S. Attorneys Scott Behnke and Roger Powell 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.
Broward Resident Pleads Guilty in Treasury Check Cashing and Stolen Identity 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 defendant Ronald Walker, 36, of Fort Lauderdale, pled guilty today for his participation in a check cashing and stolen identity scheme. Sentencing is scheduled for March 21, 2014 at 9:00 a.m. before U.S. District Judge James I. Cohn.
Specifically, Walker pled guilty to one count of theft of public money, a United States income tax refund check, in violation of Title 18, United States Code, Section 641, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). At sentencing, the defendant faces a maximum term of ten years in prison for the theft of public money charge, and a mandatory term of two years in prison, consecutive to any other term in prison, for the aggravated identity theft charge.
According to court documents, a confidential informant (CI) told federal agents that Walker routinely received stolen or fraudulently obtained U.S. Treasury checks and negotiated them at a check cashing store called American Quick Cash (AQC) located in Broward County, which was owned by Wilson and Kate Lau. The CI also stated that Walker forged the payees’ endorsements on the back of the checks and provided Wilson Lau with the payees’ social security numbers and copies of altered Florida driver’s licenses.
Court documents state that during two undercover operations, Walker was given genuine, unendorsed treasury checks created specifically for this investigation. During another undercover operation, Walker was given three genuine, unendorsed treasury tax refund checks, which resulted from fraudulent tax returns filed by unknown persons in the names and social security numbers of real people. Walker was also provided with driver’s license numbers, social security numbers, and dates of birth for all of the payees on the checks. Walker went to AQC, and then gave the CI and/or undercover agent their portion of the cashed checks. After clearing the banking system, the checks that were created for this investigation included endorsements on the back, but the payees were fictitious and could not have endorsed the checks.
From February 2010 through May 2011, the total amount of U.S. Treasury checks cashed by Walker at AQC is approximately $1,234,114. The number of victims involved is greater than 50, but fewer than 250.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Secret Service. The 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.
Medical Clinic Owner Pleads Guilty in Miami for Role in Multiple Health Care Fraud Schemes Totaling over $20 MillionRead the Press Release
The owner and operator of a Miami medical clinic pleaded guilty today in connection with multiple health care fraud schemes involving the defunct clinic Merfi Corp.
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 Michael B. Steinbach of the FBI’s Miami Field Office, and Special Agent in Charge Christopher B. Dennis 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, pleaded guilty before U.S. District Judge Ursula Ungaro of the Southern District of Florida to conspiracy to commit health care fraud, which carries a maximum penalty of 10 years in prison. Sentencing has been scheduled for March 14, 2014.
According to court documents, Medina was an owner and operator of Merfi, a Miami medical clinic which employed physicians, physician assistants and other medical professionals who were authorized by law to dispense prescriptions for home health care services. Through Merfi, Medina and her co-conspirators provided fraudulent home health and therapy prescriptions and other medical documentation 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 the Medicare program for, among other things, expensive physical therapy and home health care services that were not medically necessary and/or not provided.
Medina has acknowledged that her involvement in fraudulent schemes at multiple home health care companies, including Flores Home Health, 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 Plead Guilty in Miami for Roles in $8 Million Health Care Fraud SchemeRead the Press Release
Several patient recruiters, including a medical clinic owner, pleaded guilty today in connection with 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 Michael B. Steinbach of the FBI’s Miami Field Office, and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami Office made the announcement.
At a hearing held before U.S. District Judge Ursula Ungaro of the Southern District of Florida, Lerida Labrada, 59, of Miami, pleaded guilty to conspiracy to commit health care fraud, which carries a maximum penalty of 10 years in prison, and Mayra Flores, 49, and German Martinez, 36, both of Miami, pleaded guilty to conspiracy to defraud the United States and receive health care kickbacks, which carries a maximum penalty of five years in prison. Sentencing has been scheduled for March 14, 2014.
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.
Flores Home Health was operated for the purpose of billing the Medicare program for, among other things, expensive physical therapy and home health care services that were not medically necessary and/or were not provided.
The defendants 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 agency to bill the Medicare program on behalf of the recruited Medicare patients. These Medicare beneficiaries were billed for home health care and therapy services that were not medically necessary and/or 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.
Service Representative Sentenced in Identity Theft Tax Refund Fraud Scheme Involving Theft of Hundreds of Clients’ Personal Identifying InformationRead 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 defendant Tobin Lamar Lyon, II, a/k/a/ Tobe Kasa, 27, of Charlotte, North Carolina, was sentenced today to 72 months in prison, followed by three years of supervised release. Lyon was also ordered to pay $118,602.52 in restitution.
Lyon and co-defendant Jeffrey Alexander Martin, 27, of Broward County, previously pled guilty to one count of wire fraud conspiracy, in violation of Title 18, United States Code, Section 1349, and one count of aggravated identity theft, in violation of Title l8, United States Code, Section 1028A(a)(1). Martin is scheduled to be sentenced on February 3, 2014 at 9:00 a.m. before U.S. District Judge Robin S. Rosenbaum in Fort Lauderdale, Florida.
According to court documents, Lyon worked as a service representative for Teachers Insurance and Annuity Association - College Retirement Equities Fund (TIAA-CREF), a financial services company specializing in providing retirement services to those in the academic, research, medical and cultural fields. As an employee of TIAA-CREF, Lyon had access to the names, addresses, social security numbers, and dates of birth of TIAA-CREF's clients.
Court documents state that Lyon, in anticipation of a share of the proceeds, provided Martin with personal identifying information (PII) belonging to individual clients of TIAA-CREF for the purpose of filing fraudulent tax returns claiming tax refunds in those clients' names. Lyon sent over 500 different identities to Martin. For the tax years 2011 and 2012, the total amount of fraudulent refunds claimed by Martin as a result of the stolen PII he received from Lyon is approximately $304,611. From those fraudulent returns, Martin received approximately $5,776 in fraudulent refunds. Lyon knowingly possessed and transferred the victims' means of identification without authority and permitted Martin to use the stolen PII to file these fraudulent returns. During the time that Lyon was providing stolen PII of TIAA-CREF clients to Martin, he was also providing stolen PII to others in New York for the purpose of raiding the TIAA-CREF clients' bank accounts.
Mr. Ferrer commended the investigative efforts of IRS-CI, and thanked the Sunrise Police Department for its assistance in this case. The 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.
Registered Sex Offender Living in Palm Beach County, Florida Arrested for Attempting to Entice A Minor to Engage in Unlawful Sexual ActivityRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Dave Aronberg, State Attorney, Office of the State Attorney for Palm Beach County, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, (ICE-HSI), and Jeffrey S. Katz, Chief of Police, Boynton Beach Police Department, (BBPD), announce that Paul David Culbreth, 52, of Loxahatchee, Florida, appeared in federal court today for an initial appearance on the charge of attempting to entice a minor to engage in an illegal sexual activity. If convicted, he faces a 10 year mandatory term of imprisonment and a maximum term of life..
According to the criminal complaint, Culbreth sent numerous sexually explicit messages via a web-based social media application to an undercover officer posing as a 15 year old boy. Culbreth then attempted to meet the minor to engage in illegal sexual activity on New Year’s Eve. Culbreth was arrested by Special Agents from ICE-HSI after he drove to a location where he believed he would pick up the 15 year old boy; lubricant and condoms were found in his vehicle on arrest. Culbreth is a registered sex offender in Palm Beach County, Florida.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mr. Ferrer commended the investigative and cooperative efforts of ICE-HSI and BBPD. The case is being prosecuted by Assistant U.S. Attorney Adam McMichael and Special Assistant U.S. Attorney Gregory Schiller from the Palm Beach County State Attorney’s Office.
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 Indicted 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 the unsealing of a 20-count indictment returned by a Federal Grand Jury in West Palm Beach charging mail fraud and conspiracy to commit mail fraud and wire fraud, in violation of Title 18, United States Code, Sections 1341 and 1349.
The following defendants were charged in the indictment:
- Jason Andrew Vitulano, 38, of West Palm Beach, FL;
- Robert Harry Bacon, 34, of West Newbury, MA;
- Peter Ian Brown, 26, of Sound Beach, NY;
- Christopher Francisco Duharte, 36, of Coconut Creek, FL;
- Brian Fleuridor, 29, of Delray Beach, FL;
- Arthur Vincent Fogarty, III, 57, of Hollywood, FL;
- Neil Lawrence Sack, 40, of Fort Lauderdale, FL;
- Gregory B. Small, 28, of Boynton Beach, FL;
- Jeffrey Charles Leroy Taylor, 39, of North Lauderdale, FL; and
- Ajay Alexander Thuraisingham, 26, of Tamarac, FL.
Each defendant is charged with one count of conspiracy to commit mail and wire fraud and multiple counts of mail fraud. According to the Indictment, 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, 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.
Defendant Vitulano faces up to 20 years imprisonment on each of the 20 counts against him. Defendants Taylor and Thuraisingham face up to 20 years in prison for each of the four counts against them. The other seven defendants, who are each charged in three counts, face up to 20 years in prison on each of those counts. All ten defendants further face up to $250,000 in fines and mandatory restitution as to each charge.
Defendant Vitulano is expected to make his initial appearance in West Palm Beach on January 15, 2014. Defendant Brown made his initial appearance in federal court in the Eastern District of New York on December 24, 2013 and was released on bond. Defendant Thuraisingham will make his initial appearance in the Eastern District of New York today.
Defendants Duharte, Fleuridor, Fogerty, Sack and Taylor made their initial appearances today in West Palm Beach. Fleuridor and Fogarty are being held pending bond hearings scheduled for Monday, December 30, 2013. Defendant Taylor’s pre-trial detention hearing is set for Tuesday, December 31, 2013. Defendants Bacon and Small will make their initial appearances in federal court on December 31, 2013 in West Palm Beach. These initial appearances and hearings will take place at 10:00 A.M. in U.S. Magistrate’s Court in West Palm Beach on their respective days. Defendants Duharte and Sack were released on bond today.
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.
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.
Two Miami Women Sentenced to Ten Years in Prison for Conspiring to Pay Healthcare KickbacksRead 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 Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS OIG), Miami Regional Office, announce that U.S. District Judge Federico A. Moreno sentenced Yiral Cardona, 39, of Miami, and Susan Chi, 42, of Miami, to ten years in prison stemming from their leadership role in a conspiracy to pay healthcare kickbacks.
At trial, Cardona and Chi were convicted on October 22, 2013 of one count of conspiracy to pay healthcare kickbacks and to defraud the United States, in violation of Title 18, United States Code, Section 371, and three counts of unlawful payment of healthcare kickbacks, in violation of Title 42, United States Code, Section 1320a-7b(b)(2)(A).
According to the evidence presented at trial and the sentencing hearing, Cardona and Chi owned Vista Home Health Services, Inc. (“Vista”), a Miami-Dade based home health agency that purportedly provided skilled nursing and home health services to Medicare beneficiaries. The defendants illegally obtained Medicare patients by paying bribes and kickbacks of at least $141,000 to patient recruiters to induce the referral of Medicare patients to Vista for home health services. Cardona and Chi billed the Medicare program for home health services that were not medically necessary and/or not provided. Between approximately May 15, 2009 and April 26, 2012, Medicare paid Vista more than $4.1 million in claims. The Court ordered the defendants to pay more than $733,000 in restitution.
Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case was prosecuted by Assistant U.S. Attorneys Kevin J. Larsen and Eric Morales.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami-Dade Resident Pleads Guilty in Identity Theft 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 defendant Jean-Elguentino Cayo, 26, of Miami Gardens, pled guilty today for his participation in a stolen identity scheme. Sentencing is scheduled for March 5, 2014 at 2:00 p.m. before U.S. District Judge Jose E. Martinez.
Cayo pled guilty to one count of access device fraud, in violation of Title 18, United States Code, Section 1029(a)(2). At sentencing, the defendant faces a maximum term of ten years in prison.
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 IRS-CI and ICE-HSI. 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.
Broward Resident Pleads Guilty and Sentenced for Violating the Endangered Species ActRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Otha Easley, Acting Special Agent in Charge, NOAA Fisheries Office of Law Enforcement, Southeast Division, and Major Camille Soverel, Regional Commander, South A Region, Florida Fish & Wildlife Conservation Commission (FWC), announce that Robert Jaques, 43, of Deerfield Beach, plead guilty to an information today charging him with the attempted sale of an endangered species, specifically a Largetooth Sawfish (Pristis perotteti) rostrums, in violation of the Endangered Species Act (ESA) of 1973, Title 16, United States Code, Sections 1538(a)(1)(F) and 1540(b)(1).
According to Court records, on June 27, 2013, in Palm Beach County, Jaques offered to sell two Largetooth Sawfish rostrums to an NOAA undercover agent. The list of endangered species at Title 50, Code of Federal Regulation, Section 224.101 identifies the Largetooth Sawfish as an endangered species subject to the ESA. An endangered species is any species which is in danger of extinction throughout all or a significant portion of its range. Jaques was sentenced immediately following his guilty plea to 10 days imprisonment.
Mr. Ferrer commended the investigative efforts of the NOAA Office of Law Enforcement and the FWC. The case is being prosecuted by Assistant U.S. Attorneys Norman O. Hemming, III 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.
Unlicensed Miami Clinic Nurse Convicted at Trial and Sentenced for Role in $11 Million HIV Infusion Fraud SchemeRead the Press Release
An unlicensed nurse who fled after being charged in 2008 and was captured this year was sentenced today to serve 108 months in prison for her role in a fraud scheme that resulted in more than $11 million in fraudulent claims to Medicare.
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 Michael B. Steinbach of the FBI’s Miami Field Office and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
Carmen Gonzalez, 39, of Cape Coral, Fla., worked at St. Jude Rehabilitation Center, a fraudulent HIV infusion clinic in Miami that was controlled by her cousins, Jose, Carlos and Luis Benitez, aka the Benitez Brothers. Gonzalez was also sentenced for failing to appear at a June 2008 bond hearing. The sentencing follows her conviction at trial to one count of conspiracy to defraud the United States to cause the submission of false claims and to pay health care kickbacks and one count of conspiracy to commit health care fraud. Gonzalez had previously pleaded guilty to a separate charge of failure to appear.
Gonzalez was sentenced by Chief United States District Judge Federico A. Moreno in Miami, who also sentenced her to serve three years of supervised release.
Evidence at trial revealed that Gonzalez was an unlicensed nurse who paid thousands of dollars over a five month period to HIV beneficiaries so that St. Jude could submit millions of dollars in false and fraudulent claims to Medicare. Gonzalez knew that St. Jude billed millions of dollars to Medicare for expensive HIV infusion therapy that was neither medically necessary nor provided. Gonzalez fabricated patient medical records to facilitate and conceal the fraud, and these fabricated records were utilized to support the false and fraudulent claims submitted to Medicare on behalf of St. Jude.
On Oct. 17, 2013, Gonzalez pleaded guilty to knowingly and willfully failing to appear at a June 2008 hearing as directed by Judge Moreno. Court documents reveal that Gonzalez was released on bond pending trial, but she knowingly and willfully failed to appear as directed by the court to a June 2008 hearing.
In January 2013, Gonzalez’s father, Enrique Gonzalez, was sentenced to 70 months in prison by U.S. District Judge Cecilia M. Altonaga in the Southern District of Florida for his role in separate health care fraud conspiracy.
The Benitez Brothers remain fugitives. Anyone with information regarding their whereabouts is urged to contact HHS-OIG at 202-619-0088.
The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division's Fraud Section and the U.S. Attorney's Office for the Southern District of Florida. This case was prosecuted by Trial Attorneys Allan Medina and Nathan Dimock 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.
Patient Recruiter and Therapy Staffing Company Owner Sentenced for Roles in $7 Million Health Care Fraud SchemeRead the Press Release
A patient recruiter and a therapy staffing company owner were sentenced today to serve 50 months and 46 months in prison, respectively, for their participation in a $7 million health care fraud scheme involving defunct home health care company Anna Nursing Services Corp.
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 Michael B. Steinbach of the FBI’s Miami Field Office and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
Ivan Alejo, 48, and Hugo Morales, 37, both of Miami, were sentenced by U.S. District Judge Jose E. Martinez in the Southern District of Florida. In addition to their prison terms, Alejo and Morales were both sentenced to serve three years of supervised release. Alejo and Morales were also ordered to pay jointly and severally with their co-defendants $6,928,931 and $1,958,279, respectively, in restitution.
In August 2013, Alejo and Morales pleaded guilty before Judge Martinez to conspiracy to commit health care fraud.
Alejo worked as a patient recruiter at Anna Nursing, a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries. Morales owned a therapy staffing company, Professionals Therapy Staffing Services Inc., which provided therapists to Anna Nursing.
According to court documents, co-conspirators of Alejo and Morales operated Anna Nursing for the purpose of billing the Medicare Program for, among other things, expensive physical therapy and home health care services that were not medically necessary and/or not provided.
Alejo’s primary role in the scheme at Anna Nursing involved negotiating and paying kickbacks and bribes, interacting with patient recruiters and assisting in the submission of fraudulent claims to the Medicare program. Alejo and his co-conspirators would pay kickbacks and bribes to patient recruiters in return for the recruiters providing patients to Anna Nursing for home health and therapy services that were medically unnecessary and/or not provided. Alejo and his co-conspirators would pay kickbacks and bribes to co-conspirators in doctors’ offices and clinics in exchange for home health and therapy prescriptions, medical certifications and other documentation. Alejo and his co-conspirators would use the prescriptions, medical certifications and other documentation to fraudulently bill the Medicare program for home health care services, which Alejo knew was in violation of federal criminal laws.
Morales’s primary role in the scheme at Anna Nursing involved operating Professionals Therapy, where he and others created fictitious progress notes and other patient files indicating that therapists from Professionals Therapy had provided physical or occupational therapy services to particular Medicare beneficiaries, when in many instances those services had not been provided and/or were not medically necessary. Morales knew the documents he and others from Professionals Therapy falsified were used to support false claims for home health care services billed to Medicare by his co-conspirators at Anna Nursing, which Morales knew was in violation of federal criminal laws.
From approximately October 2010 through approximately April 2013, Anna Nursing was paid by Medicare approximately $7 million for fraudulent claims for home health care services that were not medically necessary and/or not provided.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case was 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.
Health Care Clinic Owner Sentenced for Role in $7 Million Medicare Fraud SchemeRead the Press Release
The owner of a Miami home health care company was sentenced to serve 235 months in prison yesterday for her participation in a $7 million health care fraud scheme involving defunct home health care company Anna Nursing Services Corp.
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 Michael B. Steinbach of the FBI’s Miami Field Office and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
Dora Moreira, 46, was sentenced by U.S. District Judge Jose E. Martinez in the Southern District of Florida. In addition to her prison term, Moreira was sentenced to serve three years of supervised release and ordered to pay $6,928,931 in restitution.
In October 2013, Moreira was convicted by a jury of one count of conspiracy to commit health care fraud, one count of conspiracy to defraud the United States and receive and pay health care kickbacks, one count of payment of kickbacks in connection with a federal health care program, one count of conspiracy to commit money laundering and five counts of money laundering.
Moreira was the owner and operator of Anna Nursing, a Miami home health care agency that purported to provide home health and physical therapy services to Medicare beneficiaries.
According to evidence presented at trial, Moreira operated Anna Nursing for the purpose of billing the Medicare Program for, among other things, expensive physical therapy and home health care services that were not medically necessary and/or not provided.
Moreira paid kickbacks and bribes to patients, negotiated and interacted with patient recruiters, and coordinated and oversaw the submission of fraudulent claims to the Medicare program. Moreira also laundered money received from Medicare in order to conceal her financial transactions and generate cash needed to pay kickbacks to patients, patient recruiters, and others in return for assisting her in the fraudulent scheme at Anna Nursing.
From approximately July 2010 through approximately May 2013, Anna Nursing was paid approximately $7 million by Medicare for fraudulent claims for home health services that were not medically necessary and/or not provided.
This case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. The case was prosecuted by Assistant Chief Benton Curtis and 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.
Federal Agent Indicted in Conspiracy to Commit Extortion, Bribery and Making False StatementsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, David Nieland, Special Agent in Charge, Department of Homeland Security (DHS), Office of Inspector General (OIG), Miami Field Office, and David D’Amato, Special Agent in Charge, U.S. Immigration and Customs Enforcement, Office of Professional Responsibility, announce the indictment of Juan Felipe Martinez, a Special Agent with DHS, 47, of Coral Gables. The indictment charges Martinez with eight counts of extortion, two counts of bribery, and two counts of making false statements.
One of the extortion counts charges that Martinez and others conspired to extort money and unlawfully enrich themselves by using Martinez’s official position to obtain large payments from a Colombian company and certain individuals associated with it. Martinez and others conspired to falsely state that the company and certain individuals associated with it were going to be put on the Specially Designated Nationals (SDN) list by Office of Foreign Asset Control and then offering to keep them off the SDN list if they made large payments to co-conspirators. Two of the bribery counts allege that Martinez accepted thousands of dollars in exchange for United States significant public benefit paroles.
U.S. Attorney Wifredo A. Ferrer stated, “Today’s arrest is a reminder that no one is above the law. You can’t sell your badge and abuse your power and expect to get away with it. And while Martinez’s alleged conduct tarnishes his badge, it does not tarnish those of the honorable men and women who serve and protect our community faithfully every day.”
David Nieland, Special Agent in Charge for DHS-OIG added, “Whenever a law enforcement officer engages in illegal activity, it erodes the public trust. Such actions by a few undermine the hard work of the many who serve to protect America each day. Corruption remains a top priority of the DHS OIG and we remain committed to holding those who violate the public’s trust accountable for their illegal actions.”
Martinez had his initial appearance today before U.S. Magistrate Judge William C. Turnoff. The Court set bond at $250,000, with a Nebbia condition. Report regarding counsel and arraignment was set for January 21, 2014 before the duty Magistrate Judge.
If convicted, the defendant faces a statutory maximum of twenty years in prison on each extortion count, fifteen years in prison on each bribery count, and five years in prison on each false statements count and a $250,000 fine.
An indictment is only an accusation and each defendant is presumed innocent unless and 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.
Broward Resident Sentenced for Tax FraudRead 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 defendant Mazincia Ductant, 37, of Sunrise, was sentenced today to 36 months in prison, followed by one year of supervised release. Ductant previously pled guilty to one count of tax fraud, in violation of Title 26, United States Code, Section 7206(2). Ductant was also ordered to pay $1,317,508 in restitution.
According to court documents, Ductant was the owner of Ninote Tax Services (“Ninote”), a tax preparation business in Margate, Florida. During the years 2007-2009, Ductant used Ninote to file hundreds of tax returns on behalf of her clientele. Ductant falsified a high percentage of the returns she prepared by inflating or completely fabricating Schedule A deductions, Schedule C losses, First Time Home Buyers' credits, and Household Help wages.
Court documents state that Ductant was responsible for preparing fraudulent tax returns for approximately 125 people, which resulted in a total tax loss to the government of approximately $1,317,508.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Harry C. Wallace. Jr.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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.
Boca Raton Resident Sentenced for Filing False Tax Returns, Access Device Fraud, and Aggravated Identity TheftRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Assistant Attorney General Kathryn Keneally of the Justice Department’s Tax Division, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Harvey Zitron, 62, of Boca Raton, was sentenced to 81 months in prison, to be followed by three years of supervised release.
Zitron was previously convicted by a federal jury on all ten counts charged in the indictment. According to the indictment, Zitron was charged with filing fraudulent IRS United States Individual Income Tax Returns, Forms 1040, for 2004 and 2005 (Counts 1 and 2), and Amended Individual Income Tax Returns, Forms 1040X for 2003, 2004 and 2005 (Counts 3-5), all in violation of Title 26, United States Code, Section 7206(1). In addition, he was charged with three counts of access device fraud, in violation of Title 18, United States Code, Section 1029(a)(2) (Counts 6, 8 and 10), and two counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1) (Counts 7 and 9).
According to the evidence presented at trial, Zitron used companies to write checks to friends or acquaintances who cashed the checks and returned the cash to Zitron. Zitron then failed to declare this income on his tax returns. He also opened credit card accounts in the names of his son and ex-wife, and charged more than $1,000 in a single year on those accounts without their authorization or knowledge.
Mr. Ferrer commended the investigative efforts of the IRS-CI and the FBI. This case was prosecuted by Assistant U.S. Attorney Harry Wallace and Department of Justice Tax Division Attorney Kevin C. Lombardi.
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.
Third Defendant Sentenced in False Tax Return and Identity Theft Tax Refund Fraud 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 defendant Behrmann Desenclos, 43, of Lauderhill, was sentenced for his participation in a scheme to file false tax returns and use stolen identities to claim fraudulent tax refunds. Desenclos was sentenced to 108 months in prison, followed by three years of supervised release. He was also ordered to pay restitution in the amount of $1,358,156.76. Desenclos previously pled guilty to one count of conspiracy to commit wire fraud in violation of Title 18, United States Code, Section 1349, and four counts of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2.
According to court documents, Desenclos, Rachelle Beaubrun, and Louis Richard Nemorin were involved in a scheme to unlawfully enrich themselves by submitting false refund claims on federal income tax returns, causing the IRS to issue refunds which the defendants diverted to their own benefit and use. The defendants prepared various federal income tax returns falsely claiming refunds: (a) on behalf of foreign nationals who had previously been deported from the United States and who were ineligible to receive any refund; (b) based on jobs with companies that had no employees; (c) based on employment with companies or offices where the taxpayer named on the return did not work; (d) utilizing Schedule C to falsely claim deductions for nonexistent business expenses; and (e) by claiming First Time Homebuyer Credits for residences which the taxpayers named on the returns did not actually purchase.
Court documents state that Beaubrun and Desenclos also acquired stolen identification information such as names, dates of birth, and social security numbers, from Nemorin. The defendants prepared fraudulent federal income tax returns through Divine Tax and Financial Services and Global-Tech Financial Management, LLC.
For tax years 2008 and 2009, the defendants caused the submission of federal income tax returns which falsely claimed refunds amounting to more than $2.6 million.
On August 20, 2013, Rachelle Beaubrun, 42, of Lauderhill, and Louis Richard Nemorin, a/k/a Richard Nemorin, a/k/a Louis Nemorin, 35, of Riviera Beach, were sentenced for their participation in the schemes. Beaubrun was sentenced to 102 months in prison, to be followed by three years of supervised release. Nemorin was sentenced to 60 months in prison, to be followed by three years of supervised release. Both defendants pled guilty to one count of conspiracy to commit wire fraud in violation of Title 18, United States Code, Section 1349, and four counts of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2.
Mr. Ferrer commended the investigative efforts IRS-CI. The 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.
Man Using False Identity Arrested for Sex Trafficking in Miami and AustraliaRead 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), Miami Field Office, and Wendy A. Bashnan, Special Agent in Charge, Bureau of Diplomatic Security (DS), Miami Field Office, announce the arrest of Damion St. Patrick Baston, 36, in New York City, New York, where he was ordered detained.
Baston has been charged in Miami by indictment with one count of sex trafficking a victim by means of force, fraud, and coercion, both in the Southern District of Florida and in multiple countries around the world, including Australia, in violation of Title 18, United States Code, Sections 1591(a)(1) and 1596. Title 18, United States Code, Section 1596 provides for extraterritorial jurisdiction in human trafficking cases. The indictment charges a second count of forcible sex trafficking of a victim in the Southern District of Florida. If convicted on either count, Baston faces a mandatory minimum penalty of fifteen years in prison and a maximum penalty of life in prison.
Baston is also charged with five counts of transporting multiple individuals for prostitution, in violation of Title 18, United States Code, Section 2421, importation of an alien for prostitution, in violation of Title 8, United States Code, Section 1328, use of a passport secured by false statement, in violation of Title 18, United States Code, Section 1542, aggravated identity theft, in violation of Title 18, United States Code, Section 1028A, and three counts of money laundering, in violation of Title 18, United States Code, Section 1956. Baston, who is a Jamaican national, has also been charged with illegal reentry of an alien previously ordered removed, in violation of Title 8, United States Code, Section 1326.
The 14 count federal indictment was returned on December 12, 2013. Baston was located and arrested by DS and ICE-HSI agents in New York on December 17, 2013. Baston remains in custody and is expected in federal district court here in Miami soon.
U.S. Attorney Wifredo A. Ferrer stated, “Human trafficking is one the most deplorable crimes our office prosecutes. Law enforcement agencies are teaming up to identify, arrest and prosecute those who seek to profit at the expense of the suffering of others. Working with our dedicated law enforcement partners here and abroad we will press on with efforts to reach those who are being exploited, and prosecute those who choose to engage in this inhumane practice.”
“Sex trafficking is one of the most heinous crimes we investigate, these victims are taken advantage of on a daily basis” said Alysa D. Erichs, Special Agent in Charge, ICE-HSI. “Investigative efforts by HSI alongside our partners at the DSS and the Australian Federal Police highlight the collaborative effort within federal and international law enforcement partners to ensure international boundaries do not hinder the enforcement of justice.”
“We are thankful for our continued partnership with the international law enforcement community. A team of Miami and international DS resources worked closely with the Australian authorities to locate and apprehend Damion Baston,” said Special Agent in Charge Wendy A. Bashnan of the DS Miami Field Office. “We hope that the long awaited prosecution of Baston will provide some satisfaction to the many individuals he victimized and their families. DS’s worldwide presence at U.S. Embassies around the world allows us to work with our host country law enforcement to track and capture fugitives who have fled the U.S. to avoid prosecution.”
Mr. Ferrer commended the investigative efforts of ICE-HSI and DS, as well as the Australian Federal Police. The case is being prosecuted by Assistant U.S. Attorneys Olivia S. Choe and Roy K. Altman.
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.
Three Miami-Dade Residents Sentenced for Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, announce today’s sentencing of defendants Mario R. Triana Martinez, 24, of Miami, Emilio Mederos, 24, of Miami, and Francisco Cartaya, 25, of Hialeah, for charges relating to their participation in a scheme to defraud T-Mobile and Wal-Mart by fraudulently obtaining cellular telephones through the unauthorized use of account information of valid T-Mobile customers.
At today’s hearing, U.S. District Judge Donald L. Graham sentenced Mario R. Triana Martinez to 41 months in prison, to be followed by three years of supervised release. Emilio Mederos was sentenced to 33 months in prison, to be followed by three years supervised release. Francisco Cartaya was sentenced to six months in prison, to be followed by one year of supervised release. Triana Martinez, Mederos and Cartaya were also ordered to pay restitution in the amount of $232,803.88. All of the defendants pled guilty on October 8, 2013 to conspiracy to commit wire fraud.
According to court documents, between May 2010 and July 31, 2011, Triana Martinez, Mederos, Cartaya, co-defendant Yandy Rosell Trujillo and others, participated in a scheme to defraud T-Mobile and Wal-Mart by fraudulently obtaining cellular telephones using the personal identification information, such as account numbers and social security numbers, of valid T-Mobile customers, and then re-selling the cellular telephones at a profit. As part of the fraud, Triana Martinez and Mederos, who had unauthorized access to valid T-Mobile customer account information, called T-Mobile, and impersonating a T-Mobile dealer over the telephone, caused the name on a valid T-Mobile account to be changed to match the name of one of the co-conspirators. Once the name on the T-Mobile account was changed, Triana Martinez, Mederos, Cartaya and Rosell Trujillo visited Wal-Mart locations in eleven different states, including locations in the Southern District of Florida; provided the account number or social security number of the valid T-Mobile customer; and proceeded to purchase cellular telephones, such as BlackBerrys or HTCs, at a deeply discounted rate reserved for qualified T-Mobile customers. Triana Martinez and Mederos thereafter sold the fraudulently-obtained cellular telephones at a profit. This fraudulent scheme resulted in losses to T-Mobile and Wal-Mart in excess of $200,000.00.
Defendant Yandy Rosell Trujillo, 28, of Hialeah, pled guilty to conspiracy to commit wire fraud on October 16, 2013, and is scheduled to be sentenced on January 9, 2014.
Mr. Ferrer commended the investigative efforts of the Secret Service. The case was prosecuted by Assistant U.S. Attorney Elisa Castrolugo.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Port St. Lucie Resident Sentenced to Ten Years in Prison on Charges of Receipt and Transportation of Child PornographyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kenneth Mascara, Sheriff, St. Lucie County Sheriff’s Office, announce the sentencing of defendant Joshua Adams Bagala, 25, of Port Saint Lucie. At yesterday’s hearing, U.S. District Judge Donald L. Graham sentenced Bagala to ten years in prison on charges of receipt and transportation of child pornography.
According to the criminal complaint and evidence presented to the Court for sentencing, on April 16, 2013, a Nebraska State Patrol Sergeant, who is a member of the Internet Crimes against Children (ICAC) Task Force, was acting in an undercover capacity, investigating the online exploitation of children on the internet and persons who knowingly distribute visual depictions of sexually explicit conduct involving children. While posing as a 14 year-old female in an online children’s chat room, the undercover investigator was contacted by Bagala. During the ensuing private chat, Bagala uploaded two graphic child pornography videos. The screen name and I.P. address was traced to Bagala’s residence in Port Saint Lucie, Florida.
On April 26, 2013, law enforcement executed a Florida state search warrant at Bagala’s residence and seized several items of electronic media. A forensic examination revealed numerous images of child pornography. A subsequent search warrant executed at Yahoo! Inc. revealed hundreds of instant messenger chat logs where Bagala was in contact with numerous individuals, holding themselves out to be minors, discussing trading and downloading child pornography videos. During one such chat, Bagala claimed to be a talent agent looking for underage girls to perform in underage porn movies. Bagala claimed he was looking for girls between the ages of 9 to 17.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Project Safe Childhood was launched in May 2006 by the Department of Justice and is led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mr. Ferrer commended the investigative efforts of the St. Lucie County Sheriff's Office, the South Florida Internet Crimes against Children (ICAC) Task Force, and the Nebraska State Patrol. The case was 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.
Miami-Dade 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, Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that defendant Peter Michael Daniel, 29, of Miami-Dade, pled guilty yesterday for his participation in a stolen identity tax refund scheme. Sentencing is scheduled for February 18, 2014 at 11:30 a.m. before U.S. District Judge Donald M. Middlebrooks.
Daniel pled guilty to one count of access device theft, in violation of Title 18, United States Code, Section 1029(a)(3). At sentencing, the defendant faces a maximum term of ten years in prison.
According to the plea documents, Daniel admitted to participating in a tax fraud scheme with unindicted co-conspirators to file false tax returns using the personal identification information of individuals without their permission and to have those proceeds directly deposited on prepaid debit cards.
Plea documents also state that Daniel voluntarily provided law enforcement with five loose leaf sheets of paper that contained the names, date of births, and social security numbers of 81 individuals. Daniel admitted that the personal identification information including the social security numbers of the individuals listed on the loose leaf papers were used to file false tax returns. Further investigation revealed that more than ten but less than fifty of the individuals whose names, social security numbers, and date of births were listed on the loose leaf papers had false tax returns filed without their authority.
Mr. Ferrer commended the investigative efforts of the U.S. Secret Service, IRS-CI, and Lee County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Gera R. Peoples.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Leader of Vero Beach Clandestine Methamphetamine Lab Sentenced to 20 Years in PrisonRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, and Deryl Loar, Sheriff, Indian River County Sheriff’s Office, announce the sentencing of four Vero Beach residents for their participation in a Vero Beach clandestine methamphetamine lab: Edward McElhenny, 50, Clinton Story, 30, Paul Richardson, 27, and Kelly McCartney, 36.
Edward McElhenny was sentenced to 20 years in prison, followed by four years of supervised release concurrently on two counts. He pleaded guilty on October 7, 2013 to a superseding information charging him with conspiracy to manufacture, distribute and possess with intent to distribute a controlled substance, over five grams of methamphetamine, in violation of Title 21, United States Code, Section 846. He also pleaded guilty to maintaining a place for the purpose of manufacturing and distributing methamphetamine, in violation of Title 21, United States Code, Sections 856(a)(1) and 2.
Clint Story was sentenced to 66 months in prison, followed by three years of supervised release, concurrently on two counts. He pleaded guilty on September 26, 2013 to manufacturing, distributing and possessing with intent to distribute methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 2. Story also pleaded guilty to maintaining a place for the purpose of manufacturing and distributing methamphetamine, in violation of Title 21, United States Code, Sections 856(a)(1) and 2.
Paul Richardson was sentenced to 24 months in prison, followed by three years of supervised release. He pleaded guilty on September 20, 2013 to manufacturing, distributing and possessing with intent to distribute methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 2.
Kelly McCartney was sentenced to 18 months in prison, followed by two years of supervised release. She pleaded guilty on September 20, 2013 to manufacturing, distributing and possessing with intent to distribute methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 2.
All four defendants were required to pay restitution to the DEA for clean-up of the clandestine lab.
According to the criminal complaint, during the third week of April 2013, the Indian River County Sheriff’s Office (IRCSO), Multi-Agency Criminal Enforcement (MACE) Unit conducted an investigation, which led to the execution of a search warrant. On May 9, 2013, members of the DEA-Clandestine Laboratory Enforcement Team (CLET) executed a state search warrant at the residence of Clint and Angela Story, after a confidential informant purchased methamphetminae from Clint Story at his residence. At the time of entry, Clinton Story, Edward McElhenny, Paul Richardson and Angela Story were at the residence and were detained. Clinton Story, Angela Story, and Paul Richardson all admitted to purchasing pseudoephedrine, knowing it was for the manufacture of methamphetamine.
Edward McElhenny admitted that he manufactured methamphetamine in the past. The DEA CLET team members searched the home and surrounding property. A search of the residence led to the discovery of pre-cursor chemicals and laboratory equipment which were utilized in and comprised a fully operational methamphetamine laboratory. A fingerprint specialist processed the scene and physical evidence, and discovered the fingerprints of Clinton Story, Edward McElhenny, and Kelly Maureen McCartney. McCartney admitted that she visited Clint and Angela Story’s residence on multiple occasions, and was aware of the methamphetamine manufacturing and use that took place at the residence. She also acknowledged that she purchased pseudoephedrine packets on multiple occasions with the knowledge that it was being used to manufacture methamphetamine.
At sentencing, the Court found that McElhenny was responsible for being an organizer or leader of criminal activity involving five or more participants, in that Clinton Story, Angela Story, Paul Richardson and Kelly McCartney all assisted him in the manufacture of methamphetamine, by purchasing the precursor chemical pseudoephedrine from area pharmacies, in an effort circumvent the laws restricting over the counter purchases.
Mr. Ferrer commended the investigative efforts of the DEA and the Indian River County Sheriff’s Office for their work on this case. The case was 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.
Vero Beach Resident Sentenced for Importing Illegal Catch from the BahamasRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Otha Easley, Acting Special Agent in Charge, NOAA Fisheries, Office of Law Enforcement, Southeast Division, and Major Camille Soverel, Regional Commander, South A Region, Florida Fish & Wildlife Conservation Commission (FWC), announce that Toby Lamm, 46, of Vero Beach, was sentenced in Fort Pierce, Florida today for importing illegal catch from the Bahamas.
U.S. District Judge Jose E. Martinez sentenced Lamm to two years’ probation and a $2,500.00 fine. Lamm previously pled guilty to a one-count information, charging him with importing and attempting to import queen conch (Strombus gigus), spiny lobster (Panulirus argus), stone crab (Menippe mercenaria) claws and demersal (fin fish) namely: snapper (Lutjanus) and grouper (Serranidae), in violation of the possession limits for each of the species as set forth in the laws and regulations of the Commonwealth of the Bahamas, specifically, the Fisheries Resources (Jurisdiction & Conservation) Regulations, Part X, Sections 47(1)(a), (b) and 48(1)(f) and the laws and regulations of the State of Florida, specifically 68B-16.003(1), 68B-24.003(4), and 68B-13.005(2) contrary to the federal Lacey Act, Title 16, United States Code, Sections 3371(a)(2)(A) and 3373(d)(1)(A).
According to the allegations in the information and statements made in court, on or about June 23, 2013, in St. Lucie County, Lamm attempted to import from the Bahamas approximately 338 queen conch, 11 spiny lobster tails, 31 stone crab claws, and 140 pounds of snapper and grouper fillets.
Mr. Ferrer commended the investigative efforts of the NOAA, Office of Law Enforcement, FWC, and Customs and Border Protection. The case was prosecuted by Assistant U.S. Attorneys Norman O. Hemming, III 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.
Fort Pierce Man Sentenced for Preparation and Presentation of False Tax ReturnsRead 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 defendant Ventrell Bouie, 46, of Fort Pierce, was sentenced today on charges of aiding and assisting the preparation and presentation of false tax returns, in violation of Title 26, United States Code, Section 7206(2).
Bouie was sentenced by U.S. District Judge Jose E. Martinez in Fort Pierce to 24 months in prison, followed by one year of supervised release and a special assessment of $100. In addition, the Court ordered Bouie to pay restitution to the Government for tax losses of $288,478. The Court also noted that Bouie has agreed to be permanently enjoined by a Consent Judgment and Order filed in a parallel civil case, barring him in the future from ever preparing federal income tax returns for other persons.
According to statements made in open court and documents filed in the case, Bouie prepared multiple fraudulent tax returns for customers from January 2008 through December 2012. He prepared the returns, supplied false income and deduction figures, failed to review them in detail with the taxpayers, and then electronically filed them for those taxpayers.
Mr. Ferrer commended the investigative efforts of IRS-CI. 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.
Okeechobee Woman Sentenced for Preparation and Presentation of False Tax ReturnsRead 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 defendant Maria Garcia, 33, of Okeechobee County, was sentenced today on charges of aiding and assisting the preparation and presentation of false tax returns, in violation of Title 26, United States Code, Section 7206(2).
Garcia was sentenced by U.S. District Judge Donald Graham in Fort Pierce to 18 months in prison, followed by one year of supervised release and a special assessment of $100. In addition, the Court ordered Garcia to pay restitution to the Government for tax losses of $534,946. The Court also noted that Garcia is permanently enjoined by a Consent Judgment and Order filed in a parallel civil case, barring her in the future from ever preparing federal income tax returns for other persons.
According to statements made in open court and documents filed in the case, Garcia prepared multiple fraudulent tax returns for customers from January 2008 through May 2013, first while working for other tax preparers and then in her own tax preparation business. She prepared the returns, supplied false income and deduction figures, failed to review them in detail with the taxpayers, and then electronically filed them for those taxpayers.
Mr. Ferrer commended the investigative efforts of IRS-CI. 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.
Fort Pierce Man Pleads Guilty to Firearms and Drug Trafficking ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), announce that defendant Samuel George Brown, 49, of Fort Pierce, pled guilty today to charges of possessing a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c); and possessing a firearm with an altered or obliterated serial number, in violation of Title 18, United States Code, Section 922(k).
Sentencing is scheduled for March 6, 2014 before U.S. District Judge Donald Graham in Fort Pierce, Florida. At sentencing, Brown faces a possible maximum statutory sentence of up to five years in prison, on the charge of possessing a firearm with an altered or obliterated serial number; to be followed by a mandatory minimum five years consecutive sentence for the charge of possessing a firearm in furtherance of a drug trafficking crime.
According to statements made in open court and documents filed in the case, Brown was a dealer selling marijuana from his house in Fort Pierce. Following two separate drug sales by Brown to confidential informants working with local law enforcement, on June 8, 2013, officers obtained and executed a search warrant for Brown’s home. On arrival, the officers found on the kitchen counter, alongside marijuana, packaging material, and electronic scales for measuring drug sales, and a loaded Hi-Point .380 caliber handgun. The serial number on the .380 caliber handgun had been obliterated. In a post arrest interview, Brown admitted to keeping the handgun for his personal protection as part of his drug sales business.
Mr. Ferrer commended the investigative efforts of ATF and the St. Lucie County Sheriff’s Office, together with the Fort Pierce Police Department. 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.
Bahamian and Jamaican Nationals Charged with Marijuana ImportationRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Mark R. Trouville, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division, announce the indictment of Quinton Jamal Mitchell, 31, from Sweeting’s Cay Settlement, Green Turtle Cay, Bahamas, and LeRoy Anthony Edwards, 56, from Kingston, Jamaica. Mitchell and Edwards were arraigned on multiple counts before U.S. Magistrate Judge Frank J. Lynch, Jr. Edwards was detained as a risk of flight and a danger to the community.
Mitchell and Edwards are charged with conspiring to and importing 100 kilograms or more of marijuana, in violation of Title 21, United States Code, Sections 952 (a), 963 and 960(b)(2)(G). They are also charged with conspiring to and possessing with intent to distribute 100 kilograms or more of marijuana, in violation of with Title 21, United States Code, Sections 841 (a), 846 and 841(b)(1)(B)(vii). If convicted on either of the conspiracy charges, they face a mandatory minimum of five years in prison and up to a maximum of 40 years in prison, four years to a lifetime of supervised release, and a maximum fine of $5,000,000. Mitchell is also charged with encouraging aliens to come to the United States, causing serious bodily injury, and placing lives in jeopardy in violation of Title 8, United States Code, Sections 1324(a)(1)(A)(iv), 1324(a)(1)(A)(v)(II) and 1324(a)(1)(B)(iii). If convicted, he faces up to a maximum of 20 years in prison, up to three years of supervised release, and a maximum fine of $250,000. Edwards is also charged with being a removed alien after deportation, in violation of Title 8, United States Code Section, 1326(a)(1) and faces up to two years in prison, up to one year of supervised release, and a maximum fine of $250,000.
According to the allegations in the criminal complaint, a vessel capsized in the waters off Jupiter Island, Florida, and three males swam to shore, including Mitchell. Upon arriving to shore, Mitchell ran away from the scene. A second male later identified as LeRoy Anthony Edwards, was rescued from the surf and resuscitated by a good samaritan. Quinton Mitchell was identified as the boat captain. Before running off, Mitchell told the good samaritan that there had been a total of four males on the boat.
Mitchell was later captured by Jupiter Island Police Department Officers and Martin County Sheriff’s Office Deputies, who responded to the area and found the beach littered with white bales and blue gas cans, and the partially submerged boat approximately 200 feet from the shoreline.
Martin County Sheriff’s Office Crime Scene investigators found that the recovered bales contained marijuana, weighing approximately 236 kilograms. Authorities are still searching for the other passengers that were on-board the boat.
Mr. Ferrer commended the investigative efforts of ICE-HSI, DEA, the Jupiter Island Police Department, the Martin County Sheriff’s Office, U.S. Customs and Border Protection, and Florida Fish and Wildlife. The case is being 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.
Two Patient Recruiters for Miami Home Health Companies Sentenced for Roles in $48 Million Health Care Fraud SchemeRead the Press Release
Two patient recruiters for Miami health care companies were sentenced today for their participation in a $48 million home health Medicare fraud scheme.
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 Michael B. Steinbach of the FBI’s Miami Field Office, and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement after sentencing by U.S. District Judge Joan A. Lenard in the Southern District of Florida.
Elizabeth Monteagudo, 33, of Miami, was sentenced to serve 70 months in prison, followed by three years of supervised release, and ordered to pay $3.5 million in restitution jointly and severally with co-defendants. Cristobal Gonzalez, 39, of Miami, was sentenced to serve 46 months in prison, followed by two years of supervised release, and ordered to pay $2 million in restitution jointly and severally with co-defendants
In September 2013, Monteagudo and Gonzalez each pleaded guilty to one count of conspiring to receive health care kickbacks. Monteagudo also pleaded guilty to receiving kickbacks in connection with a federal health care program.
According to court documents, Monteagudo and Gonzalez were patient recruiters who worked for Caring Nurse Home Health Care Corp., and Gonzalez also worked for Good Quality Home Health Care Inc. Caring Nurse and Good Quality were Miami home health care agencies that purported to provide home health and therapy services to Medicare beneficiaries.
According to court documents, from approximately January 2009 through approximately June 2011, Monteagudo and Gonzalez would recruit patients for Caring Nurse and/or Good Quality and would solicit and receive kickbacks and bribes from the owners and operators of Caring Nurse and/or Good Quality in return for allowing the agency to bill the Medicare program on behalf of the recruited patients. These Medicare beneficiaries were billed for home health care and therapy services that were medically unnecessary and/or not provided.
Monteagudo also admitted to her involvement with $7 million in fraudulent billings for Starlite Home Health Agency Inc., which she owned and operated.
In a related case, on Feb. 27, 2013, Rogelio Rodriguez and Raymond Aday, the owners and operators of Caring Nurse and Good Quality, were sentenced to serve 108 and 51 months in prison, respectively. Their sentencings followed their December 2012 guilty pleas each to one count of conspiring to commit health care fraud charged in an October 2012 indictment. According to that indictment, from approximately January 2006 through June 2011, Caring Nurse and Good Quality submitted approximately $48 million in claims for home health services that were not medically necessary and/or not provided. Medicare actually paid approximately $33 million for these fraudulent claims.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Assistant Chief Joseph S. Beemsterboer of the Criminal Division’s Fraud Section.
Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,700 defendants who collectively have falsely billed the Medicare program for more than $5.5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Treasure Coast Robbers That Targeted Gas Stations and Hotels IndictedRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, Julie Leon, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Tampa/Orlando Field Office, Deryl Loar, Sheriff, Indian River County Sheriff’s Office, Wayne Ivey, Sheriff, Brevard County Sheriff’s Office, John A. Bolduc, Chief, Port St. Lucie Police Department, and Frank J. Kitzerow, Chief, Jupiter Police Department, announce that defendants Yubran Alvarez Vasquez, 21, of Bluffton, South Carolina, and Matthew Emmanuel Vasquez, 23, of Savannah, Georgia, were indicted by a federal grand jury in Fort Pierce, on one count of conspiracy to commit armed robbery, in violation of Title 18, United States Code, Section 1951(a), four counts of armed robbery, in violation of Title 18, United States Code, Section 1951(a), and four counts of possessing, brandishing, and discharging a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Section 924(c)(1)(A)(ii & iii).
The defendants are alleged to have targeted gas stations and hotels just off exits on I-95 from Melbourne to Jupiter. In one robbery spree on February 14-15, 2013, the defendants are alleged to have robbed at gunpoint two gas stations and two hotels. The defendants brandished guns in all of the robberies and during the robbery of the Holiday Inn Express in Vero Beach, a firearm was discharged. The defendants wore gloves and masks and changed hotels frequently in an attempt to avoid detection.
The defendants fled Florida with the stolen property, and due to a multi-agency effort, the defendants were apprehended. If convicted, each defendant faces up to life in prison.
Mr. Ferrer commended the investigative efforts of ATF, the Indian River County Sheriff’s Office, the Brevard County Sheriff’s Office, the Port St. Lucie Police Department, and the Jupiter Police Department. The case is being prosecuted by Assistant U.S. Attorney Russell R. Killinger.
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.
Therapist Pleads Guilty in Miami for His Role in $63 Million Health Care Fraud SchemeRead the Press Release
A former licensed mental health counselor at the defunct health provider Health Care Solutions Network Inc. (HCSN) pleaded guilty today in Fort Lauderdale, Fla., for his role in a $63 million health care fraud scheme.
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 Michael B. Steinbach of the FBI’s Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
Ruben Busquets, 50, of Miami, pleaded guilty before U.S. District Judge William J. Zloch in the Southern District of Florida to one count of conspiracy to commit health care fraud. He faces a maximum penalty of 10 years in prison when he is sentenced on Feb. 20, 2014.
According to court records, Busquets was employed as a licensed therapist at HCSN, a mental health facility that purported to provide Partial Hospitalization Program (PHP) services. A PHP is a form of intensive treatment for severe mental illness. HCSN of Florida (HCSN-FL) operated community mental health centers at two locations. Court records indicate that Busquets was aware that HCSN-FL personnel were routinely fabricating patient medical records. Many of these medical records were created weeks or months after the patients were admitted to HCSN-FL for purported PHP treatment and were utilized to support false and fraudulent billing to government sponsored health care benefit programs, including Medicare and Florida Medicaid. During his employment at HCSN-FL, Busquets and his co-conspirators signed fabricated PHP therapy notes and other medical records used to support false claims to government-sponsored health care programs.
According to court documents, from 2004 through 2011, HCSN billed Medicare and the Florida Medicaid program approximately $63 million for purported mental health services.
This 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 was prosecuted by Trial Attorney Allan J. Medina of the Fraud Section.
Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,700 defendants who collectively have falsely billed the Medicare program for more than $5.5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Loxahatchee Pair Plead Guilty to Government Benefit Fraud ChargesRead 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 L. 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 Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Miami Region, announce that defendants Gloria Nereida Valle-Clas, 48, and Alexander Gonzalez, 40, of Loxahatchee, Florida, pled guilty today in West Palm Beach before U.S. Magistrate Judge James M. Hopkins.
According to the indictment, and as the defendants admitted when pleading guilty, Valle-Clas obtained two social security numbers (SSN), one of which was originally associated with her birth name, “Nereida Valle,” and one of 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 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 buy real estate in both Broward and Palm Beach Counties, including over an acre of property in Loxahatchee, Florida on which she built an approximately 2,700 square foot residence. Her husband, Gonzalez, also bought real estate in Broward County. When applying for federal benefits, she failed to disclose her or her husband’s ownership of property, as well as other assets and income.
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.”
Valle-Clas 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. The maximum penalties for each of the Section 371 conspiracy and Section 1001 HUD false statement counts are five years in prison, up to three years supervised release, and a fine of $250,000 or not more than twice the gross gain or loss form the offense, whichever is greater.
Valle-Clas and Gonzalez are scheduled to be sentenced on February 21, 2014 at 1:30 p.m. in West Palm Beach before U.S. Senior District Judge Kenneth L. Ryskamp.
Mr. Ferrer commended the investigative efforts of HUD-Office of the Inspector General, the Palm Beach County Sheriff’s Office, the SSA-Office of the Inspector General, the USDA-Office of the 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.
Deerfield Beach Resident Charged with Violating the Endangered Species ActRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Otha Easley, Acting Special Agent in Charge, NOAA Fisheries Office of Law Enforcement, Southeast Division, and Major Camille Soverel, Regional Commander, South A Region, Florida Fish & Wildlife Conservation Commission (FWC), announce the filing of an information against Robert Jaques, 43, of Deerfield Beach. The information charges that Jaques sold or offered for sale two Largetooth Sawfish (Pristis perotteti) rostrums, an endangered species, in violation of the Endangered Species Act (ESA) of 1973, Title 16, United States Code, Sections 1538(a)(1)(F) and 1540(b)(1). The information also seeks the forfeiture of the Largethooth Sawfish rostrums.
According to the information, on or about June 27, 2013, in Palm Beach County and elsewhere, Jaques sold or offered for sale two Largethooth Sawfish rostrums. The list of species at Title 50, Code of Federal Regulations, Section 224.101 identifies the Largetooth Sawfish as an endangered species subject to the ESA. An endangered species is any species which is in danger of extinction throughout all or a significant portion of its range.
The case has been assigned to U.S. District Court Judge Kenneth A Marra. If convicted, Jaques faces a possible sentence of up to one year in prison, the forfeiture of the Largethooth Sawfish rostrums, and a fine of up to $50,000.
Mr. Ferrer commended the investigative efforts of the NOAA Office of Law Enforcement and FWC. The case is being prosecuted by Assistant U.S. Attorneys Norman O. Hemming, III and Antonia Barnes.
An information is only an accusation and a defendant is presumed innocent until and unless 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.
Serial Armed Robber Targeting Taxi Cab and Food Delivery Drivers Pleads GuiltyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, announce that Lionell Sanders, a/k/a “Pistol,” a/k/a “Briscoe,” 19, of Miami, pled guilty yesterday to one count of conspiracy to commit armed robbery, in violation of Title 18, United States Code, Section 1951(a), two counts of armed 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)(ii).
Sanders admitted to robbing two Super Yellow Cab, Inc. drivers at gunpoint in August 2013. During both robberies, Sanders pointed a firearm to the victims’ heads, demanded all of their money, and told them that he would kill them if they resisted. Sanders’ fingerprints were found on the driver’s side door of one of the taxis. These robberies were a part of a series of armed robberies of taxi and food delivery drivers that Sanders organized and carried out in the City of Miami during the summer of 2013. In one of the armed robberies, a taxi cab driver was shot in the back as he tried to flee. Sanders not only bragged to his friends about committing these crimes, but also posted photographs of his firearms on his Facebook account, which was aptly named “Pistol.Slidda”.
The defendant faces a mandatory minimum sentence of 32 years in prison and a maximum sentence of up to life. Sanders’ sentencing hearing is scheduled for February 20, 2014 at 2:00 p.m. before U.S. District Judge K. Michael Moore.
This case is, in large part, the result of the Violence Reduction Partnership, launched by the U.S. Attorney’s Office. Through this Partnership, the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminal networks in various neighborhoods, while simultaneously working with community leaders and concerned citizens to mentor at-risk youths, provide jobs and job training to young families, and help probationers and parolees successfully re-enter society.
Mr. Ferrer commended the investigative efforts of the ATF and the City of Miami Police Department. The case was prosecuted by Assistant U.S. Attorneys Vanessa Singh Johannes and Seth Schlessinger.
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 Pleads Guilty to 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 defendant Carlos Rodriguez, 40, of Miami Lakes, pled guilty yesterday 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. Sentencing is scheduled for March 11, 2014 at 9:00 a.m., before U.S. District Judge Kathleen M. Williams. At sentencing, Rodriguez faces up to ten years in prison and the forfeiture of property.
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.
Two Former Miami-Dade Residents Sentenced for Their Role in Smuggling Cocaine Aboard Cargo ShipsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), announce that David Rodriguez, 47, of Miami, and Rogny Jerez Lopez, 35, of Hialeah, were sentenced on December 4, 2013 for their role in a drug importation conspiracy involving the smuggling of cocaine aboard cargo ships operated by King Ocean Services. U.S. District Judge K. Michael Moore sentenced David Rodriguez to 235 months in prison, to be followed by five years of supervised release, and Rogny Jerez Lopez to 87 months in prison, followed by two years of supervised release.
The investigation revealed that beginning in approximately 2005 through 2012, Rodriguez, the leader of a Miami-based drug-trafficking organization, and Jerez Lopez, a former King Ocean Services employee working at Port Everglades, were involved in the importation of millions of dollars’ worth of cocaine. Rodriguez, Jerez Lopez and their co-conspirators smuggled the cocaine into the United States by having it concealed inside cargo containers while King Ocean Services cargo vessels were docked at ports overseas. Once the vessels arrived at Port Everglades, Jerez Perez assisted in removing the narcotics from the cargo vessels and into the hands of drug traffickers under the direction of Rodriguez.
This case was the result of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) led by ICE-HSI. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Mr. Ferrer commended the investigative efforts of ICE-HSI, the South Florida Money Laundering Strike Force, the Broward Sheriff's Office and the DEA. The case was prosecuted by Assistant U.S. Attorney Aimee Jimenez.
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.
Phlebotomist Charged with Using False Identification Documents to Work at Local HospitalsRead 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 R. Sean Baldwin, Chief, Fort Pierce Police Department, announce the arrest of William Evens Josma, 34, of Fort Pierce, for using the name, social security card, and employment authorization card of another person to obtain employment as a phlebotomist at local hospitals. Josma was arraigned in federal court yesterday before U.S. Magistrate Judge Frank J. Lynch, Jr. in Ft. Pierce, Florida.
The complaint alleges that from January 7, 2013 to November 2013, Josma worked as a phlebotomist at Indian River Medical Center under a false name. Josma is a Haitian national, and does not have immigration authorization to work in the United States. Josma used the name, social security card and employment authorization card of another person to satisfy the employment verification requirements of the Immigration and Nationality Act to obtain employment. Josma’s real identity was uncovered when he purchased a fraudulent immigration stamp from Haiti to make it appear that he had continued authorization to work in the United States. Josma also possessed a Florida driver’s license in the false identity, as well as a badge under that identity showing that he previously worked at Martin Memorial Health System as well.
The indictment charges Josma with two counts of making a false attestation on Form I-9, Employment Eligibility Verification, to satisfy a requirement of the employment verification system in violation of Title 18, United States Code, Section 1546(b)(3); two counts of using an identification document not issued to him to satisfy a requirement of the employment verification system in violation of Title 18, United States Code, Section 1546(b)(1); two counts of false representation of a social security number in violation of Title 42, United States Code, Section 408(a)(7)(B); and two counts of aggravated identity theft in violation of Title 18, United States Code, Section 1028A. If convicted, Josma faces up to five years in prison for the false attestation, use of an unlawful identification and false representation of a social security number counts, and a consecutive two years in prison for the aggravated identity theft count.
Mr. Ferrer commended the investigative efforts of ICE-HSI and the Fort Pierce Police Department. The case is being handled by Assistant U.S. Attorney Shaniek Maynard.
A complaint and indictment are only accusations, 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.
Founder of Investment Company Sentenced in $21 Million Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that James C. Howard, III, 54, of Parkland, FL, the founder of Commodities Online LLC (COL), was sentenced on December 3, 2014 for his participation in a $21 million investment fraud scheme.
U.S. District Judge Joan Lenard sentenced Howard to 189 months in prison, followed by three years of supervised release. The Court also ordered a forfeiture judgment of $21,631,466. The Court will also order restitution to be paid to the victims. The restitution hearing is set for February 24, 2014.
Howard pled guilty on September 16, 2013 to one count of conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 1349. According to court documents, Howard conspired with co-defendants Patricia S. Saa, Louis N. Gallo, III, and Michael R. Casey to defraud individuals who invested in COL. From approximately January 2010 through April 2011, Howard and his co-conspirators used material false and fraudulent representations and material omissions to obtain over $21 million from over 700 investors.
According to court documents, Howard and his co-conspirators used COL to sell COL ownership units, subscriptions to the COL website, and investments in purported transactions to buy and sell commodities. After receiving the funds for the COL ownership units, Howard and Saa diverted a large part of those funds for other purposes. In addition to selling COL ownership units, Howard and his co-conspirators caused certain purported “pre-sold” commodities contracts to be offered for investment via the COL website, stating a pre-determined percentage return on investment and the number of days by when investors would be paid. Howard and his co-conspirators also represented to investors that COL had a track record of profits. However, COL did not have profits. Any payments made to investors were made using funds received from newer investors.
Also according to court documents, Howard and his co-conspirators made material misrepresentations and omissions about the leaders of COL. After mid-2010, Howard and his co-conspirators represented that Howard was no longer President of COL and that co-defendant Casey, an attorney, was the President of COL. Howard and his co-conspirators represented that Howard was no longer managing COL, when in fact, Howard remained in charge. Also, Howard and his co-conspirators did not disclose to investors that both Howard and co-defendant Gallo had previously been convicted of federal felonies and that Gallo was still serving a term of supervised release.
The trial of Howard’s codefendants, Casey, Gallo, and Rita Balbirer who were charged in the same indictment is scheduled for March 10, 2014. Balbirer was charged with money laundering.
In addition to codefendants charged in the same indictment with Howard, other participants in the investment fraud conspiracy related to COL have been charged in separate Informations: Timothy B. Josselson, the Chief Operating Officer, Kathryn A. Josselson, the Comptroller, and Robert S. Lananna, the Director of Sales. Timothy Josselson pled guilty November 22, 2013. His sentencing is scheduled for January 30, 2014. Kathryn Josselson pled guilty November 14, 2013. Her sentencing is scheduled for January 23, 2014. Robert Lananna pled guilty November 14, 2013. His sentencing is scheduled for January 31, 2014.
Mr. Ferrer commended the investigative efforts of the FBI and the cooperative efforts of the Miami Regional Office of the U.S. Securities and Exchange Commission. This case is being prosecuted by Assistant U.S. Attorney Ana Maria Martinez.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Three Patient Recruiters for Miami Home Health Company Plead Guilty for Roles in $48 Million Fraud SchemeRead the Press Release
Three patient recruiters for a Miami health care company pleaded guilty yesterday for their participation in a $48 million home health Medicare fraud scheme.
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 Michael B. Steinbach of the FBI’s Miami Field Office, and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
Miami residents Marianela Martinez, 45; Omar Hernandez, 48; and Celia Santovenia, 49, pleaded guilty before U.S. District Judge Donald L. Graham in the Southern District of Florida to one count each of conspiracy to receive health care kickbacks. Sentencing has been scheduled for Feb. 11, 2014.
According to court documents, Martinez, Hernandez and Santovenia were patient recruiters who worked for Caring Nurse Home Health Care Corp., and Santovenia also worked for Good Quality Home Health Care Inc. Caring Nurse and Good Quality were Miami home health care agencies that purported to provide home health and therapy services to Medicare beneficiaries.
From approximately January 2006 through June 2011, the defendants would recruit patients for Caring Nurse and/or Good Quality and would solicit and receive kickbacks and bribes from the owners and operators of Caring Nurse and/or Good Quality in return for allowing the agency to bill the Medicare program on behalf of the recruited patients. These Medicare beneficiaries were billed for home health care and therapy services that were medically unnecessary and/or not provided.
In a related case, on Feb. 27, 2013, Rogelio Rodriguez, 44, and Raymond Aday, 49, the owners and operators of Caring Nurse and Good Quality, were sentenced to serve 108 and 51 months in prison, respectively. The sentencings followed their December 2012 guilty pleas to one count each of conspiracy to commit health care fraud charged in an October 2012 indictment, which alleged that from approximately January 2006 through June 2011, Caring Nurse and Good Quality submitted approximately $48 million in claims for home health services that were not medically necessary and/or not provided. Medicare paid approximately $33 million for those fraudulent claims.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under 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 Assistant Chief Joseph S. Beemsterboer of the Criminal Division’s Fraud Section.
Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,700 defendants who collectively have falsely billed the Medicare program for more than $5.5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami Home Health Company Owner and Recruiter Sentenced for Role in $48 Million Health Care Fraud SchemeRead the Press Release
A patient recruiter of a Miami health care company was sentenced to serve 108 months in prison today for his participation in a $48 million home health Medicare fraud scheme.
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 Michael B. Steinbach of the FBI’s Miami Field Office and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
Emilio Amador, 46, was sentenced by U.S. District Judge Federico A. Moreno in the Southern District of Florida. In addition to his prison term, Amador was sentenced to serve three years of supervised release and ordered to pay $24 million in restitution, jointly and severally with co-defendants.
In September 2013, Amador pleaded guilty before Judge Moreno to one count of conspiring to receive health care kickbacks and two counts of receiving health care kickbacks.
According to court documents, Amador was a patient recruiter who worked for Caring Nurse Home Health Care Corp., a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries.
From approximately January 2006 through June 2011, Amador would recruit patients for Caring Nurse, and in doing so would solicit and receive kickbacks and bribes from the owners and operators of Caring Nurse in return for allowing Caring Nurse to bill the Medicare program on behalf of the patients Amador had recruited. These Medicare beneficiaries were billed for home health care and therapy services that were medically unnecessary and/or not provided.
According to court documents, Amador also pleaded guilty to his involvement with fraudulent billings for Nation’s Best Care Home Health Corp. as relevant conduct. Amador was the owner, operator and president of Nation’s Best. The fraudulent billings for Nation’s Best totaled approximately $30 million.
In a related case, on Feb. 27, 2013, Rogelio Rodriguez, 44, and Raymond Aday, 49, the owners and operators of Caring Nurse and Good Quality, were sentenced to serve 108 and 51 months in prison, respectively. The sentencings followed their December 2012 guilty pleas to one count each of conspiracy to commit health care fraud charged in an October 2012 indictment, which alleged that from approximately January 2006 through June 2011, Caring Nurse and Good Quality submitted approximately $48 million in claims for home health services that were not medically necessary and/or not provided. Medicare paid approximately $33 million for those fraudulent claims.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Assistant Chief Joseph S. Beemsterboer of the Criminal Division’s Fraud Section.
Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,700 defendants who collectively have falsely billed the Medicare program for more than $5.5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.