Southern District of Florida
Press releases recorded for this federal judicial district.
Armed Robber Targeting Taxi Cab and Food Delivery Drivers IndictedRead 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 defendant Lionell Sanders (a/k/a “Pistol,” and “Briscoe”), 19, of Miami, Florida, was indicted by a federal grand jury 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 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).
The defendant is the alleged leader of a group targeting taxi cab and food delivery drivers in the Allapattah and Little Haiti neighborhoods of the City of Miami. The drivers were called out to the areas during the early morning hours, and accosted by the defendant and his coconspirators. The drivers were forced out of their vehicles at gunpoint, robbed, and often pistol-whipped.
Once the defendant realized that law enforcement was on his trail, he fled the area. Due to a multi-agency effort, the defendant was apprehended on September 27, 2013. The defendant is presently detained, pending trial. If convicted, he faces up to life in prison.
Mr. Ferrer commended the investigative efforts of ATF, the U.S. Marshal’s Service, the Miami-Dade Police Department, and the City of Miami Police Department. The case is being prosecuted by Assistant U.S. Attorney Vanessa Singh Johannes.
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.
Jury Convicts Former Hialeah Police Officer and Wife of 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, Michael J. De Palma, Acting 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 found guilty by a federal jury of all counts charged in connection with the unlawful sale of hundreds of firearms without a federal firearms license.
After a two week trial and over 300 items of admitted evidence, the 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. At sentencing, Rafael Valdes faces a combined maximum statutory term of imprisonment of 37 years, as well as paying restitution to the City of Hialeah and possible fines. At sentencing, Tammy Valdes faces a combined maximum statutory term of imprisonment of 18 years and possible fines. Sentencing is scheduled for December 12, 2013, before U.S. District Judge Donald M. Middlebrooks.
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.
Former City of Miami Police Officer Convicted on Corruption ChargessRead 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 Manuel Orosa, Chief, City of Miami Police Department, announce that Vital Frederick, 27, a former City of Miami Police Officer, was convicted after a five day trial before U.S. District Judge K. Michael Moore. The jury returned a guilty verdict on all seven counts in the indictment, including four counts of interference with commerce by extortion, one count of access device fraud, and two counts of aggravated identity theft. The defendant provided protection and security for an illegal check cashing scheme and exploited the Police databases to steal identities and sell the identifiers believing they were to be used to commit tax fraud.
FBI Public Corruption Task Force and the City of Miami Internal Affairs Section initiated an investigation on former Officer Frederick after receiving a report of Frederick’s suspicious activity while on duty. On four separate occasions, between August 2012 and September 2012, Frederick provided protection for a courier who he believed was cashing fraudulent government checks at the check cashing store. He did so, while in full uniform and while driving his marked City of Miami Police Department vehicle. Frederick, in an effort to further facilitate the criminal activity, escorted the courier away from the check cashing store to give the courier safe passage. In exchange for providing security of the courier, who was purportedly cashing fraudulent government checks at the check cashing store, Frederick took receipt of approximately $800 cash.
In October 2012, Frederick sold the personal identifiers of 52 individuals to a second cooperating source after accessing City of Miami Police Department databases. During the investigation, City of Miami Police Department Internal Affairs Unit covertly monitored Frederick’s Police issued laptop and found that he conducted searches of the victims whose identities he was selling.
Mr. Ferrer commended the investigative efforts of the FBI and the City of Miami Police Department. This case is being prosecuted by Assistant U.S. Attorneys Robin Waugh and Michael Davis.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Attorney Sentenced in Plot to Conceal and Dispose of Assets in Connection with Rothstein CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Scott F. Saidel, 45, was sentenced to 36 months in prison to be followed by 2 years of supervised release by U.S. District Judge Robin S. Rosenbaum. In addition, Saidel was ordered to pay restitution in the amount of $515,000.
Saidel pled guilty to conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 371 on January 30, 2013. Saidel was charged, along with Kimberly Wendell Rothstein, 38, and Stacie Weisman, 49, in September 2012, in connection with certain crimes committed in furtherance of a plot to conceal and dispose of assets which were forfeitable in connection with a Ponzi scheme orchestrated by Scott W. Rothstein. At the same time, in September 2012, Eddy Marin, 50, and Patrick Daoud, 54, were also charged in a separate, but related, matter with obstruction of justice and perjury, in violation of Title 18, United States Code, Sections 1512(k) and 1621.
According to the documents filed with the court, former Ft. Lauderdale attorney Scott W. Rothstein, who was the Chief Executive Officer and Chairman of the law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA), used the funds obtained from the operation of a Ponzi scheme to purchase tens of millions of dollars of real estate, vehicles, vessels, business interests, luxury watches, jewelry and sports memorabilia for himself, his wife, Kimberly Rothstein, and others. As part of his plea agreement, Scott W. Rothstein agreed to forfeit to the government all assets acquired with funds derived through the aforesaid Ponzi scheme. On November 9, 2009, agents of the Internal Revenue Service, Criminal Investigations, went to the Rothstein residence, where Kimberly Rothstein assisted the agents in retrieving what was believed to be all of the available cash, jewelry and luxury watches which had previously been purchased by Scott W. Rothstein with proceeds derived from the Ponzi scheme. However, according to Court documents, before, during and after the aforesaid seizure by federal agents on November 9, 2009, Kimberly Rothstein, Stacie Weisman, and Scott F. Saidel knowingly took action to conceal certain items of jewelry, valued in excess of one million dollars, for the purpose of preventing the government from exercising its authority to take such property into its lawful custody and control. Thereafter, Kimberly Rothstein and Stacie Weisman sold and attempted to sell a portion of this jewelry to and through various persons, including Eddy Marin and Patrick Daoud.
The documents further allege that, in connection with civil proceedings instituted by the Trustee in bankruptcy for RRA, the defendants took steps to obstruct justice by concealing the true location of certain items of jewelry in order to prevent its availability for use in the bankruptcy proceedings. It is further alleged that Marin and Daoud committed perjury during depositions in connection with the bankruptcy proceedings, and that Kimberly Rothstein, Stacie Weisman and Scott F. Saidel sought to have Scott W. Rothstein testify falsely in connection with those proceedings.
Kimberly Rothstein and Stacie Weisman are scheduled to be sentenced on November 12, 2013. Trial in the matter of Eddy Marin and Patrick Daoud is set to commence on October 21, 2013.
Mr. Ferrer commended the investigative efforts of IRS-CI and FBI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence LaVecchio, Jeffrey Kaplan, Paul Schwartz and Evelyn Sheehan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Vero Beach Resident Pleads Guilty to 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, entered a guilty plea in Fort Pierce before U.S. Magistrate Judge Frank J. Lynch to importing illegal catch in violation of the Lacey Act, Title 16, United States Code, Sections 3371(a)(2)(A) and 3373(d)(1)(A).
According to allegations in the information and statements made in court, on or about June 23, 2013, in St. Lucie County, Lamm attempted 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.
The information also seeks the forfeiture of the illegal catch: approximately, 338 queen conch, 11 spiny lobster tails, 31 stone crab claws, and 140 pounds of snapper and grouper fillets.
Sentencing is scheduled for December 16, 2013 before U.S. District Judge Jose E. Martinez. Lamm faces a possible sentence of up to one year in prison, the forfeiture of the illegal catch, and a fine of up to $10,000.
Mr. Ferrer commended the investigative efforts the NOAA, Office of Law Enforcement, FWC, and Customs and Border Protection. 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.
Former City of Miami Police Officer Convicted in Identity Theft Tax Refund Fraud 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, Manuel Orosa, Chief, City of Miami Police Department (MPD), and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce the conviction of Malinsky Bazile, 28, of North Miami Beach, for his participation in a stolen identity tax refund scheme.
Specifically, Bazile was convicted by a jury of one count of fraudulent use of unauthorized devices, in violation of Title 18, United States Code, Section 1029(a)(2), four counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1), one count of exceeding authorized access to a protected computer, in violation of Title 18, United States Code, Section 1030(a)(4), and one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3).
According to testimony and evidence presented at trial, the defendant operated an identity theft tax refund scheme from January 2012 to October 2012. During that period, the defendant, while employed as a City of Miami Police Officer, used his access to the Florida driver’s license database to steal the personal identity information of approximately seven hundred middle-aged women with common last names throughout the State of Florida. Using those identities, the defendant filed false and fraudulent tax returns with the Internal Revenue Service seeking refunds payable on to pre-paid debit cards. The defendant was captured on multiple bank ATM videos withdrawing money from pre-paid debit cards loaded with fraudulent tax refund proceeds. FBI and MPD conducted a search at the defendant’s residence and found ledgers in a safe filled with hundreds of people’s identities and several pre-paid debit card containers. The defendant admitted to FBI and MPD that he made between $130,000 to $140,000 from the fraud scheme in 2011 and 2012.
Sentencing is scheduled for December 16, 2013 at 9:00 a.m. before U.S. District Judge Robin Rosenbaum. Bazile faces a possible maximum prison sentence of 33 years in prison.
Mr. Ferrer commended the FBI, MPD, and IRS-CI for their work on the case. The case is being prosecuted by Assistant U.S. Attorneys Michael N. Berger and Peter Forand.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Second Female Getaway Driver Arrested and Detained in the Two St. Lucie County PNC Armed RobberiesRead 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, John A. Bolduc, Chief, Port St. Lucie Police Department, Kenneth Mascara, St. Lucie County Sheriff’s Office, J. Michelle Morris, Chief, Sebastian Police Department, and Deryl Loar, Sheriff, Indian River Sheriff’s Office, announce the arrest and detention of Raven Simone Sayers, 23, of Hallandale, FL. Sayers made her initial appearance on September 26, 2013, and was ordered detained pending trial as both a risk of flight and danger to the community by U.S. Magistrate Judge Frank J. Lynch, Jr. in Ft. Pierce. She is scheduled for arraignment on Friday October 4, 2013.
The criminal complaint charged Sayers with conspiracy to obstruct, delay, or affect commerce or the movement of any article or commodity in commerce by robbery (Hobbs Act), in violation of Title 18, United States Code, Section 1951; and conspiracy to use and carry a firearm during and in relation to a crime of violence in violation of Title 18, United States Code, Sections 924(o) and 924(c). If convicted of the Hobbs Act robbery conspiracy, Sayers faces a possible maximum statutory sentence of 20 years in prison. If convicted of the conspiracy to use and carry a firearm during and in relation to a crime of violence, Sayers faces a mandatory minimum of seven years, and a possible maximum sentence of life, in prison, consecutive to any other sentence imposed.
According to the criminal complaint, on July 8, 2013, the PNC Bank, located in Fort Pierce, Florida, and PNC Bank in Port St. Lucie, Florida were robbed almost simultaneously at gunpoint by groups of black males wearing white clothing and white cloth masks. In each robbery, the groups of males fled in mini vans stolen earlier that morning. One group, was apprehended after a police chase that ended near the intersection of Port St. Lucie Boulevard and Aster Road in Port St. Lucie, Florida. Upon execution of a state search warrant on the white Chrysler sedan, a large amount of currency, a semi-automatic handgun, several cellular phones, cloth gloves, and numerous articles of clothing, consistent with what the bank robbers wore during the robbery of the PNC Bank in Fort Pierce, Florida, was recovered. The driver Tomaleesha Jeffie Laqua McKeliver, and the three passengers, Anthony Isaac Johnson, Allan Demetrius Bradford, and Ivory Lee Robinson, III were arrested and transported to the Port St. Lucie Police Department.
The criminal complaint also states that shortly after two of the males fled the PNC Bank in Port St. Lucie, Florida, the third became momentarily trapped inside, and was observed removing clothing as he fled. A bag containing money was recovered near the PNC Bank, and Paul Edward Moore was arrested nearby and transported to the Port St. Lucie Police Department. With the exception of Moore, the other individuals involved in the PNC Bank in Port St. Lucie, Florida, remained at large.
During Sayers’ detention hearing, an FBI Agent testified that Sayers was implicated as part of the West Palm Beach group that traveled to St. Lucie County for the specific purpose of robbing PNC banks. According to the agent, Sayers was identified as the second getaway driver, and that cell tower records place Sayers in close proximity to both of the St. Lucie County PNC banks, prior to the gun point robberies, and near the site of the minivan thefts. Testimony also revealed that Sayers was in cell phone contact with at least three of the five co-defendants, around the time of the two St. Lucie County bank robberies. The FBI agent also testified that there is a West Palm Beach Walmart video showing Sayers purchasing gloves, consistent with those worn by the robbers during the two St. Lucie County PNC bank robberies.
Mr. Ferrer commended the investigative efforts of the FBI, Port St. Lucie Police Department, St. Lucie County Sheriff’s Office, and the Sebastian Police Department for their work on this case. The case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.
A criminal complaint is only an accusation and a defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Sunrise Man Pleads Guilty to $20 Million Payroll Tax Fraud 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, Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), announce that defendant Sonny Austin Ramdeo, 35, of Sunrise, pled guilty in connection with a $20 million federal payroll tax fraud scheme to two counts of fraud by use of wires and money laundering, in violation of Title 18, United States Code, Sections 1343 and 1956(a)(1)(B)(i).
According to court documents, from as early as 2005, defendant Ramdeo was employed as the payroll supervisor at Promise Healthcare, Inc. (Promise Healthcare) and Success Healthcare Group (Success Healthcare), both of which owned and operated hospital facilities throughout the United States. As payroll supervisor for these two companies, Ramdeo was responsible for overseeing the payment of bi-weekly wages and related payroll taxes for more than 3,500 employees.
To execute his scheme, Ramdeo allegedly incorporated PayServ Tax Inc., and thereafter represented to officers and employees of Promise Healthcare that PayServ Tax would handle the transfer of local, state and federal payroll taxes to the proper agencies on behalf of Promise Healthcare and Success Healthcare. In fact, however, Ramdeo kept the monies paid by Promise and Success Healthcare to PayServ and used the funds to open and operate EZ Jet Airlines between Guyana and New York.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Ellen L. Cohen.
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.
Bookkeeper Sentenced for Filing False Tax ReturnRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigations (IRS-CI), announce that Edda Obando, 65, of Miami, Florida, was sentenced on September 30, 2013 based on her earlier guilty plea to making and subscribing a false tax return, in violation of Title 26, United States Code, Section 7206(1).
According to the allegations of the charging instrument, Obando, who served as a bookkeeper, prepared a false and fraudulent tax return by significantly under-reporting her income on her own personal tax return.
Obando was sentenced by Chief U.S. District Judge Frederico A. Moreno to forty-five days in prison, followed by five years of probation, with special conditions to include, inter alia, cooperation with the IRS in determining and paying tax liabilities. Further, Obando was sentenced to pay restitution in the amount of $72,212.68 and $100 special assessment.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Special Counsel to the U.S. Attorney, Norman O. Hemming, III.
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 Physician Indicted in Medicare Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that a federal grand jury indicted defendant Christopher Gregory Wayne, 53, of Miami Beach, an osteopathic physician residing in Miami, for health care fraud. Wayne was arrested today and made his initial appearance at 2:00 p.m. before U.S. Magistrate Judge Barry L. Garber.
The indictment charges Wayne with twelve counts of health care fraud by executing a scheme to defraud the Medicare program, in violation of Title 18, United States Code, Section 1347. The case has been assigned to U.S. District Judge Robert N. Scola, Jr.
If convicted, Wayne faces a maximum statutory sentence of up to ten years in prison and a $250,000 fine.
Mr. Ferrer commended the investigative efforts of HHS-OIG and the FBI. The case is being prosecuted by Assistant U.S. Attorney Eric Morales.
The Indictment is only an accusation and is not evidence of guilt. A defendant is presumed innocent unless and until he is 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 Indicted in $4 Million Ponzi 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, and Eric I. Bustillo, Regional Director, Securities and Exchange Commission (SEC), announce the filing of an indictment charging defendant Jenny Coplan, 54, of Lauderhill, with three counts of wire fraud, in violation of Title 18, United States Code, Section 1343. In a parallel action, the SEC announced civil charges against Coplan.
According to the indictment filed in this matter, Coplan was the president of Immigration General Services, LLC (IGS) and solicited investors for purported investments in federal bail and immigration bonds. Coplan promised investors interest rates exceeding sixty percent a year on their investments.
According to the indictment filed in this matter, to induce investors to invest money with IGS, Coplan made material oral misrepresentations, which included, among others, promises that the investments were insured by the Federal Deposit Insurance Company, that the investments were secure and had little risk, and that Coplan had the experience and licenses to invest in these bonds. Further, to induce investors to invest money with IGS and to keep their investment with IGS, Coplan made material written misrepresentations to investors, including, among others, providing investors fraudulent and fictitious financial statements and fraudulent and fictitious e-mails from the bond corporation in which investors were purportedly investing.
Induced by Coplan’s misrepresentations, the indictment alleges, investors invested approximately $4 million with Coplan by wiring money, writing checks, or providing cash to Coplan. Rather than investing the money in the bonds as promised, Coplan used the monies from new investors to pay old investors and used the money for her personal use and benefit.
If convicted, the defendant faces a possible maximum statutory sentence of 20 years in prison for each count of wire fraud.
Mr. Ferrer thanked the FBI and SEC for their work on this case. The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
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.
U.S. Attorney Wifredo A. Ferrer Announces Hiring Grants for Law Enforcement and School Safety OfficersRead the Press Release
Funds Will Hire School Resource Officers and Critical Law Enforcement Positions
United States Attorney Wifredo A. Ferrer, in conjunction with the U.S. Department of Justice Office of Community Oriented Policing Services (COPS), today announced funding awards for the Southern District of Florida.
The Southern District of Florida has been awarded grants totaling $8,118,029 to the following Police Departments and/or their respective municipalities for the hiring of police officers: Ft. Pierce Police Department, Hendry County Sheriff's Department, Key West Police Department, City of Lauderdale Lakes, Metropolitan Dade County, Miami Gardens Police Department, City of Miami, Miami-Dade County Public Schools Police Department, the City of Opa-Locka, St. Lucie County Sheriff's Office, and the City of West Palm Beach.
U.S. Attorney Wifredo A. Ferrer stated, “Keeping our children safe when they go to school is of critical importance and I am pleased to join the Attorney General and the COPS Office in announcing these grants which will help provide our communities with the resources needed to accomplish this vital mission.”
“In the wake of past tragedies, it's clear that we need to be willing to take all possible steps to ensure that our kids are safe when they go to school,” said Attorney General Eric Holder. “These critical investments represent the Justice Department's latest effort to strengthen key law enforcement capabilities, and to provide communities with the resources they need to protect our young people. Especially in a time of increased challenges and limited budgets, our top priority must always be the safety and well-being of our children.”
Overall the COPS Office funded awards to 263 cities and counties, aimed at creating 937 law enforcement positions. More than $125 million will be awarded nationally, including nearly $45 million to fund 356 new school resource officer positions.
“The COPS Office is pleased to assist local law enforcement agencies throughout the country address their most critical public safety issues,” said Joshua Ederheimer, Acting Director of the COPS Office. “Funding from this year’s program will allow many cities and counties to apply new sworn personnel to issues related to violent crime, property crime, and school safety.”
The COPS Hiring Program offers grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers. The program provides the salary and benefits for officer and deputy hires for three years.
Grantees for the 2013 hiring program were selected based on their fiscal needs, local crime rates, and their community policing plans. There was an additional focus this year on agencies requesting assistance in developing school safety programs that would include the hiring of a school resource officer. School resource officer positions funded by the COPS Office are sworn law enforcement positions that work within a school district or facility, interacting directly with school administrators and students.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has awarded over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 125,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.
For the entire list of grantees and additional information about the 2013 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Miami-Area Residents Indicted for Alleged Roles in $190 Million Medicare Fraud SchemeRead the Press Release
Two Miami-area residents were indicted in connection with their alleged participation in a $190 million 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 HHS Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement after the indictment was unsealed.
Mayelin Santoyo, 28, and Jose Martin Olivares, 36, were each charged with one count of conspiracy to defraud the United States and to receive illegal health care kickbacks, and two counts of receiving health care kickbacks. Each charge carries a maximum penalty of five years in prison upon conviction.
According to the indictment, the scheme that Santoyo and Olivares allegedly participated in lasted from approximately February 2006 to October 2010. The scheme was orchestrated by the owners and operators of American Therapeutic Corporation (ATC) and its management company, Medlink Professional Management Group Inc. (Medlink). ATC and Medlink were Florida corporations headquartered in Miami. ATC operated purported partial hospitalization programs (PHPs), a form of intensive treatment for severe mental illness, in seven different locations throughout South Florida and Orlando. Both corporations have been defunct since their owners were arrested in October 2010.
The indictment alleges that Santoyo and Olivares served as patient brokers who provided ineligible patients to ATC in exchange for kickbacks in the form of checks and cash. The amount of the kickback was based on the number of days each recruited patient spent at ATC. Throughout the course of the ATC conspiracy, millions of dollars in kickbacks were paid in exchange for Medicare beneficiaries who did not qualify for PHP services and who attended treatment programs that were not legitimate PHPs so that ATC could bill Medicare for the medically unnecessary services. According to court filings, to obtain the cash required to support the kickbacks, the co-conspirators laundered millions of dollars of payments from Medicare.
ATC, Medlink, and various owners, managers, doctors, therapists, patient brokers and marketers of ATC and Medlink have pleaded guilty or have been convicted at trial. In September 2011, ATC owner Lawrence Duran was sentenced to 50 years in prison for his role in orchestrating and executing the scheme to defraud Medicare.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney's Office for the Southern District of Florida. The case is being prosecuted by Trial Attorneys Anne P. McNamara and Robert A. Zink of the Fraud Section.
Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,500 defendants who collectively have falsely billed the Medicare program for more than $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 Recruiter Pleads Guilty in $48 Million Health Care Fraud SchemeRead the Press Release
A patient recruiter of a Miami health care company pleaded guilty 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 Dennis of the HHS Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
Emilio Amador, 46, pleaded guilty before U.S. District Judge Federico A. Moreno to one count of conspiracy to receive health care kickbacks and two counts of receiving health care kickbacks. He faces a maximum penalty of five years in prison for each count when he is sentenced on Dec. 4, 2013.
According to court documents, Amador was a patient recruiter who worked for Caring Nurse Home Health Care Corp. (Caring Nurse), a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries.
According to court documents, from approximately January 2006 through approximately 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. (Nation’s Best) as relevant conduct. Amador was the owner, operator and president of Nation’s Best. The billings for Nation’s Best were approximately $30 million.
In a related case, on Feb. 27, 2013, Rogelio Rodriguez and Raymond Aday, the owners and operators of Caring Nurse and Good Quality Home Health Care, Inc. (Good Quality), another fraudulent home health care agency, were sentenced to 108 and 51 months in prison, respectively. Their sentencings followed their December 2012 guilty pleas to one count each of conspiracy to commit health care fraud charged in an October 2013 indictment. From in or around January 2006 through in or around 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 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 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 1,500 defendants who collectively have falsely billed the Medicare program for more than $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.
Medical Clinic Owners and Patient Recruiters Charged in Miami for Role in $8 Million Health Care Fraud SchemeRead the Press Release
Several patient recruiters, including two medical clinic owners, have been arrested in connection with a health care fraud scheme involving defunct home health care company Flores Home Health Care Inc. (Flores Home Health).
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 Dennis of the HHS Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
In an indictment returned on Sept. 24, 2013, and unsealed this afternoon, Isabel Medina, 49, and Lerida Labrada, 59, were charged with conspiracy to commit health care fraud, which carries a maximum penalty of 10 years in prison upon conviction. Together with Mayra Flores, 49, and German Martinez, 36, Medina and Labrada also face charges for allegedly conspiring to defraud the United States and to receive health care kickbacks as well as receipt of kickbacks in connection with a federal health care program, which carry a maximum penalty of five years in prison upon conviction.
According to the indictment, 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. Medina and Labrada were also the owners and operators of Miami medical clinics which allegedly provided fraudulent prescriptions to the owners and operators of Flores Home Health.
Flores Home Health was allegedly operated for the purpose of billing the Medicare program for, among other services, expensive physical therapy and home health care services that were not medically necessary and/or were not provided.
From approximately October 2009 through approximately June 2012, Flores Home Health was paid approximately $8 million by Medicare for allegedly fraudulent claims for home health services.
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 A. Brendan Stewart 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 1,500 defendants who collectively have falsely billed the Medicare program for more than $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.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted.
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.
Jury Convicts Defendant in $25 Million Fraud SchemeRead the Press Release
Defendant Claimed to be a Fortune Teller and Spiritual Adviser
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation, (IRS-CI), Frank Adderly, Chief, Fort Lauderdale Police Department, and Paula Reid, Special Agent in Charge, U.S. Secret Service, Miami Field Office, announce that a Fort Lauderdale federal jury found Rose Marks, 62, of Fort Lauderdale, Florida and New York, New York, guilty of all counts charged in connection with a $25 million fraud scheme.
More specifically, after a month-long trial, the jury convicted Rose Marks of all 14 counts in an indictment which charged conspiracy to commit mail fraud and wire fraud (18 U.S.C. ' 1349), mail fraud (18 U.S.C. ' 1341), wire fraud (18 U.S.C. ' 1343), conspiracy to commit money laundering and money laundering (18 U.S.C. ' 1956 and 1957), and filing false income tax returns (26 U.S.C. ' 7206). At sentencing, the defendant faces a maximum statutory term of 20 years in prison for each of the mail, wire fraud and conspiracy counts, 10 years for the money laundering counts and three years in prison for each of the tax counts, as well as mandatory restitution and possible fines.
Rose Marks was taken into custody after the verdict was returned. Sentencing is scheduled for December 9, 2013 at 3:30 p.m. before U.S. District Judge Kenneth A. Marra in West Palm Beach.
On August 16, 2011, a multi-count indictment was unsealed charging Rose Marks and nine other defendants with conspiracy to commit mail fraud and wire fraud (18 U.S.C. ' 1349), mail fraud (18 U.S.C. ' 1341), wire fraud (18 U.S.C. ' 1343), and money laundering conspiracy (18 U.S.C. ' 1956). The indictment, the result of “Operation Crystal Ball,” focused on a group of individuals, all family members, claiming to be fortune tellers, psychic readers and spiritual advisors. In reality, however, these individuals defrauded more than twenty victims out of $25 million.
According to the evidence at trial, Rose Marks and her co-conspirators held themselves out as fortune tellers, clairvoyants and spiritual advisers. In this way, they falsely represented to their victims that they could remove purported curses or negativity from their lives or that of their loved ones. Rose Marks and her co-conspirators claimed that these curses were the cause of illnesses, family problems, marital and relationship issues and other difficulties faced by their victims.
The evidence and testimony presented at trial showed that to execute the scheme, Rose Marks and her co-conspirators used magic tricks and false statements to induce their victims to give them large sums of money and other valuables, including jewelry and gold coins, to be “sacrificed” and “cleansed” of negativity. The defendants told victims that the money would be used for the “work”, which included meditation and prayer, and that they and their family would continue to suffer terrible consequences, unless the money and valuables was “cleansed.” Although the defendants promised to return the victims’ money and valuables when the “work” was completed, the defendants deposited the victims’ funds into bank accounts they controlled and used the money to pay for their personal expenses and promote their lifestyle.
The following defendants have entered guilty pleas and are awaiting sentencing in connection with the August 16, 2011, Indictment:
Vivian Marks, of Fort Lauderdale, Florida; pled guilty on 2/8/2013; Sentencing is set for 10/7/2013 at 1:30 p.m. in West Palm Beach, Florida.
Ricky Marks, of Fort Lauderdale, Florida and New York, New York; pled guilty on 3/12/2013; sentencing is set for 10/7/2013 1:30 p.m. in West Palm Beach, Florida.
Michael Marks, of Fort Lauderdale, Florida; pled guilty on 11/28/2012; sentencing is set for 10/7/2013 at 1:30 p.m. in West Palm Beach, Florida.
Victoria Eli, of Fort Lauderdale, Florida and Secaucus, New Jersey; pled guilty on 3/15/2013; sentencing is set for 11/4/2013 at 1:30 p.m. in West Palm Beach, Florida.
Nancy Marks, of Fort Lauderdale, Florida and New York, New York; pled guilty on 3/14/2013; sentencing is set for 12/2/2013 at 10:00 a.m. in West Palm Beach, Florida.
Rosie Marks, of Fort Lauderdale, Florida; pled guilty on 2/8/2013; sentencing is set for 12/2/2013 at 10:00 a.m. in West Palm Beach, Florida.
Cynthia Miller, of Fort Lauderdale, Florida; pled guilty on 3/15/2013; sentencing is set for 12/2/2013 at 10:00 a.m. in West Palm Beach, Florida.
Donnie Eli, of Fort Lauderdale, Florida and New York, New York; pled guilty on 2/08/2013; sentencing is set for 12/2/2013 at 10:00 a.m. in West Palm Beach, Florida.Mr. Ferrer commended the investigative efforts of IRS-CI, the Fort Lauderdale Police Department and U.S. Secret Service. This case is being handled by Assistant U.S. Attorneys Roger Stefin and Laurence Bardfeld.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Five Miami Residents Arrested for Alleged Roles in $48 Million Home Health Care Fraud SchemeRead the Press Release
Five Miami residents have been charged for their alleged roles 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 Dennis of the HHS Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement after the case was unsealed following the defendants’ arrests yesterday.
On Sept. 24, 2013, a federal grand jury in Miami returned an 11-count indictment charging Marianela Martinez, 45; Mireya Amechazurra, 49; Lissett Jo-Moure, 55; Omar Hernandez, 48; and Celia Santovenia, 49, each with one count of conspiracy to receive health care kickbacks and two counts of receiving kickbacks in connection with a Federal health care program. Each charge carries a maximum penalty of five years in prison upon conviction.
According to the indictment, the defendants participated in a scheme involving Caring Nurse Home Health Care Corp. (Caring Nurse) and Good Quality Home Health Inc. (Good Quality), Miami home health care agencies that purported to provide home health and therapy services to Medicare beneficiaries. The defendants allegedly referred Medicare beneficiaries to Caring Nurse and/or Good Quality in exchange for kickbacks, knowing that Caring Nurse and/or Good Quality would in turn bill Medicare for home health services purportedly rendered for the recruited Medicare beneficiaries.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted.
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 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 1,500 defendants who collectively have falsely billed the Medicare program for more than $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.
Margate City Commissioner Convicted of Federal Bribery ChargesRead 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 David McLean, 50, a suspended City Commissioner for the city of Margate and board member on the Margate Community Redevelopment Agency (MCRA) Board was convicted by a Ft. Lauderdale federal jury on September 24, 2013, of federal bribery charges. McLean was convicted on counts two and three of a three-count indictment charging him with bribery in a program receiving federal funds, in violation of Title 18, United States Code, Section 666. McLean was acquitted of the charges in Count one.
According to the allegations in the indictment and the evidence presented at trial, on November 2, 2012, McLean accepted $3,000 in cash in exchange for his influence in connection with a $25,000 MCRA construction grant (Count 2). And on January 30, 2013, McLean accepted another $2,000 in cash in exchange for his influence in connection with the $25,000 MCRA construction grant.
The defendant faces a maximum statutory term of 10 years in prison, a $250,000 fine and restitution as to each of the two counts. Sentencing is scheduled for December 6, 2013, before U.S. District Judge James Cohn in Ft. Lauderdale.
Mr. Ferrer commended the investigative efforts of the FBI. This case is being prosecuted by Assistant U.S. Attorney Neil Karadbil.
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.
Idaho Man Sentenced for Obstruction of Justice in Key West Marine Life CaseRead 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, and David Pharo, Resident Agent in Charge U.S. Fish & Wildlife Service, Miami, announce that Peter C. Covino, IV, 20, of Eagle, Idaho, was sentenced yesterday in Key West, for knowingly and corruptly attempting to persuade another to alter, destroy, mutilate, or conceal an object with the intent to impair the object’s integrity and availability for use in an official proceeding, in violation of Title 18, United States Code, Sections 1512(b)(2)(B) and 2.
U.S. District Court Judge Jose E. Martinez, who presided over the trial of Peter Covino in July, imposed a sentence of imprisonment of time served - two months, six months of home confinement under electronic monitoring, and two years of supervised release. The court determined that Covino was unable to pay a fine.
According to testimony presented during the trial and documents in the case file, in February 2013 Covino made two phone calls to a business in the Florida Keys involved in the wholesale marine life trade in an effort to persuade one of the business owners “to erase all the text messages, and emails, or any other evidence” linking the Florida business to Peter Covino’s uncle, Ammon Covino, then a Director of the Idaho Aquarium, Inc., in Boise, Idaho.
In a separate criminal proceeding, United States v. Ammon Covino, et al., Case No. 12-10020-CR-Martinez, Ammon Covino had been arrested on February 21, 2013, and charged with engaging in a conspiracy and other violations of the federal Lacey Act by purchasing and transporting wildlife from the Florida Keys to Idaho for exhibit at the Idaho Aquarium in Boise, Idaho. The wildlife included spotted eagle rays and lemon sharks, which required Florida licenses and permits never acquired by the participants in the deals. Testimony at Peter Covino’s trial established that Ammon Covino and his co-defendant Christopher Conk had made the arrangements for the illegal purchases by emails, text messages, and telephone calls.
Unknown to Peter Covino at the time of the phone calls was the fact that the business owner was cooperating with federal authorities and his phone conversations were recorded. During his trial testimony, Peter Covino admitted that he made the calls at the direction of his uncle, Ammon Covino.
Mr. Ferrer commended the investigative efforts of the NOAA Office of Law Enforcement, the U.S. Fish & Wildlife Service, Office of Law Enforcement, and the Idaho Department of Fish & Game. This case was prosecuted by Assistant U.S. Attorneys 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.
Idaho Aquarium and Employees Plead Guilty to Illegal Trafficking of Marine LifeRead 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, and David Pharo, Resident Agent in Charge U.S. Fish & Wildlife Service, Miami, announce that Idaho Aquarium, Inc., an Idaho corporation based in Boise, Ammon Covino, 40, formerly of Meridian, Idaho, and Christopher Conk, 40, of Middleton, Idaho, entered guilty pleas in federal District Court in Key West yesterday for conspiring to harvest, transport, and sell spotted eagle rays and lemon sharks, knowing the marine life were 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), and 3373(d)(1) and (2), all in violation of Title 18, United States Code, Section 371.
According to the Indictment and Joint Factual Statements submitted to the Court and agreed to by the respective defendants, the defendants confessed that during the period extending from March 2012 through approximately November 2012, they engaged in a conspiracy to purchase and transport wildlife from the Florida Keys to Idaho for exhibit at the Idaho Aquarium in Boise. The wildlife included spotted eagle rays and lemon sharks, which required Florida licenses and permits never acquired by the participants in the deals. According to the Factual Statements, Covino and Conk were both at the time officers of the Aquarium, were individually advised of the requirements of the law, and nevertheless directed their Florida-based suppliers to ignore the law and make the shipments. Unknown to Covino and Conk at the time of the phone calls was the fact that the business owner was cooperating with federal authorities and the phone conversations and text messages were recorded. Payment for the various specimens was made by credit cards held in the Aquarium’s name. All three defendants acknowledged that Covino and Conk’s illegal conduct was within the scope of their employment, and intended to benefit, at least in part, the Idaho Aquarium.
In a separate criminal proceeding, United States v. Peter C. Covino, IV, Case No. 13-10010-CR-Martinez, Peter Covino, the nephew of Ammon Covino, was tried, convicted, and sentenced for obstruction of justice in connection with his effort to persuade the supplier in the Florida Keys to destroy the invoices and messages related to the illegal purchases of marine life to prevent their use in Ammon Covino’s case, in violation of Title 18, United States Code, Sections 1512(b)(2)(B). Testimony at the trial established that after Ammon Covino had been arrested on February 21, 2013 he induced Peter Covino to make the calls.
Mr. Ferrer commended the investigative efforts of the NOAA Office of Law Enforcement, the Fish & Wildlife Service, Office of Law Enforcement, and the Idaho Department of Fish & Game. This case was prosecuted by Assistant U.S. Attorneys Thomas Watts-FitzGerald and Antonia Barnes, with assistance from the U.S. Attorney’s Office for the District of Idaho.
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 Licensed General Contractor and Spouse Charged with Tax FraudRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Scarlet Veres, a/k/a Scarlet Russo, a/k/a Scarlet Rice, and Steven M. Veres, III (the Veres), both of Clermont, Florida, formerly of Broward County, Florida, were charged with tax fraud. Specifically, the Indictment charges both defendants with conspiracy to defraud the Internal Revenue Service and with willfully filing false tax returns. Steven M. Veres, III, was also charged with aiding and assisting in the preparation of a false tax return. The defendants made their initial appearance yesterday before U.S. Magistrate Judge David A. Baker of the Middle District of Florida.
According to the charges, defendant Steven M. Veres, III was a licensed general contractor who owned and operated Superior Contracting, Inc., a State of Florida construction company. During the 2005 tax year, defendants Scarlet Veres and Steven M. Veres, III were the sole shareholders of Superior Contracting, Inc. In 2005, Superior Contracting, Inc. received millions of dollars from contracts to repair hurricane damaged condominium buildings in St. Lucie County, Florida. As stated in the Indictment, Scarlet Veres was responsible for the corporate bookkeeping which included recording the income and expenses for Superior Contracting, Inc. in the accounting software used to generate the profit and loss statements for the corporation.
As further stated in the Indictment, the Veres were married in July of 2005, in Broward County, Florida. In June 2007, defendant Steven M. Veres, III petitioned for a downward modification of his child support payments to a former spouse, whom Steven M. Veres, III divorced in 2003. In support of this petition, defendant Steven M. Veres, III provided copies of his delinquent personal and corporation income tax returns, which returns were subsequently filed with the IRS. On their 2005 U.S. Individual Income Tax Return, defendants Scarlet Veres and Steven M. Veres, III claimed to have adjusted gross income of a negative amount yet the defendants had expenditures for real property, personal home construction and improvements, vehicles, investments, and jewelry in that same year totaling at least $1.5 million. The false corporate and personal income tax returns served the dual purpose of evading income taxes of defendants Scarlet Veres and Steven M. Veres, III and child support obligations of defendant Steven M. Veres, III.
The Indictment alleges that the Veres conspired with each other to defraud the IRS and file false personal and corporate tax returns for 2005. This was accomplished by diverting corporate receipts of Superior Contracting, Inc. to their own use. In order to conceal their diversion of corporate funds, the Veres allegedly falsified the profit and loss statement of Superior Contracting, Inc. by characterizing personal expenses, as business expenses, which in turn, reduced the income reported on Superior Contracting, Inc.'s corporate tax return. The Indictment further alleges that by providing their tax return preparer with false profit and loss statements for Superior, Inc. the Veres caused the tax preparer to prepare a false 2005 Individual Income Tax Return which failed to correctly report the defendants' share of income generated by Superior Contracting, Inc. The Indictment further states that the defendants made false statements and representations to agents of the Internal Revenue Service for the purpose of concealing the income they received from Superior Contracting, Inc.
If convicted, the defendants face a maximum statutory sentence of up to five years in prison for the conspiracy charge and three years in prison for each count of willfully filing false tax returns. In addition, Steven M. Veres, III faces up to three years in prison for aiding and assisting in the preparation of a false tax return.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Stephanie D. Evans.
The Indictment is only an accusation and is not evidence of guilt. A defendant is presumed innocent unless and until he is 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.
Florida Keys Marine Life Dealers Plead Guilty to Illegal Trafficking of Marine LifeRead 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, and David Pharo, Resident Agent in Charge U.S. Fish & Wildlife Service, Miami, announce that Eric P. Pedersen, 51, of Grassy Key, Florida, and Serdar Ercan, 42, formerly of Grassy Key, entered guilty pleas in Key West today for conspiring to harvest, transport, and sell marine living resources knowing the marine life were 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), and 3373(d)(1) and (2), all in violation of Title 18, United States Code, Section 371.
Pedersen and Ercan each face a possible sentence of up to five years in prison, a period of supervised release of up to three years, and a criminal fine of up to $250,000 in the case. United States District Court Judge Jose E. Martinez set sentencing for the two defendants for December 4, 2013 in Key West, beginning at 10:00 a.m.
According to the Indictment and Joint Factual Statements submitted to the Court, the defendants confessed that during the period extending from October 2010 through approximately February 2011, they engaged in a conspiracy to harvest and transport Live Rock and attached invertebrates, specifically Ricordia florida, sea fans (Gorgonia species), bonnethead sharks (Sphyma tiburo), lemon sharks (Negaprion brevirostris), and nurse sharks (Ginglymostoma cirratum), wildlife from the Florida Keys to buyers throughout the United States and foreign countries. Their activities were conducted without the required licenses and permits mandated by Florida law, and in some instances exceeded permissible bag limits on some of the species of marine life.
According to statements in the record, the harvesting activity occurred within the Florida Keys National Marine Sanctuary, other federal Wildlife Refuges, and State waters. Pursuant to the Florida Keys National Marine Sanctuary and Protection Act and the National Marine Sanctuary Act, the National Oceanic & Atmospheric Administration issued final regulations in January 1997 to govern the conduct of activities within the sanctuary. Title 15, Code of Federal Regulations, Section 922.163(a)(2) prohibits the removal of, injury to, or possession of coral or live rock. Section 922.163(a)(2)(I) prohibits moving, removing, taking, harvesting, damaging, disturbing, breaking, cutting, or otherwise injuring any living or dead coral or coral formation, or attempting any of these activities.
Mr. Ferrer commended the investigative efforts of the NOAA Office of Law Enforcement, the U.S. Fish & Wildlife Service, Office of Law Enforcement. Mr. Ferrer also extended his thanks to the Florida Fish & Wildlife Conservation Commission who assisted in the case. This case was prosecuted by Assistant U.S. Attorneys Thomas Watts-FitzGerald and Antonia Barnes.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Florida Residents Plead Guilty to Defrauding and Threatening Spanish-Speaking ConsumersRead the Press Release
Two individuals charged with running a telemarketing operation that defrauded Spanish-speaking consumers pleaded guilty today to one count of conspiracy to commit mail fraud, the Department of Justice and U.S. Postal Inspection Service (USPIS) announced. Daniel Carrasco, 54, and Federico Martin Gioja, 45, both of Miramar, Fla., pleaded guilty in the U.S. District Court for the Southern District of Florida in Miami to charges alleging they owned and operated Florida companies that used a telemarketing sales room in Argentina to consistently lie to consumers about products they would receive and to threaten consequences of failure to pay for shipments.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, stated: “Fraud, of any kind, is unacceptable. 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 and deportation when the consumers refused delivery for products they had not ordered. Such tactics are intolerable. Together with the Department of Justice’s Civil Division, Consumer Protection Branch, we stand united to stem such fraud.”
“The Department of Justice is committed to protecting consumers from fraud,” said Stuart F. Delery, Assistant Attorney General for the Civil Division. “As these guilty pleas demonstrate, we will be particularly vigilant towards schemes that target specific populations, and we will not be deterred by those who seek to evade detection by changing the name of their fraudulent companies.”
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, consumers received 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, in emails cited in the affidavit in support of arrest, 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. The alleged 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, the Postal Inspection Service investigated the case, submitted the affidavit in support of the criminal complaint and arrested the defendants.
"The U.S. Postal Inspection Service is committed to unraveling operations that scheme to defraud innocent people,” said Ronald Verrochio, U.S. Postal Inspector in Charge in Miami. "Our postal inspectors aggressively investigate mail fraud scams such as this one, with a concerted effort to protect consumers.”
Carrasco and Gioja originally were charged by criminal complaint and arrested on June 26, 2013. Both defendants were later indicted on July 25, 2013. They have remained incarcerated since that time. 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 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.
Former Accountant of Adult Entertainment Businesses Charged with Tax FraudRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Paul Anthony Ruggieri, of Parkland, Florida, was charged in a nine-count Indictment with one count of conspiring to defraud the lawful functions of the Internal Revenue Service, in violation of Title 18, United States Code, Section 371, and eight counts of aiding and assisting in the filing of false tax returns, in violation of Title 26, U.S.C. Section 7206(2). Defendant Ruggieri made his initial appearance today before U.S. Magistrate Judge Dave Lee Brannon.
According to the charges, Ruggieri provided accounting and return preparation services to Anthony Andreozzi, F & A Concepts, Inc. (F & A) and Galaxy Communications, Inc. (Galaxy), two adult entertainment businesses owned and operated by Andreozzi in the State of Florida. Defendant Ruggieri also provided accounting services to the general public through his business, Strategic Accounting Alliance. As stated in the Indictment, Ruggieri and Andreozzi conspired for the purpose of unlawfully enriching themselves by engaging in a fraudulent scheme to evade the payment of federal income taxes.
As alleged in Indictment, Andreozzi diverted corporate receipts of F & A and Galaxy for his own personal use. In order to conceal his diversion of corporate funds, Andreozzi instructed Ruggieri to falsify the corporate books and records by classifying certain personal expenditures of Andreozzi as business expenses. Ruggieri and Andreozzi caused the preparation and filing of false corporate tax returns for F & A and Galaxy, in that the corporate returns included fraudulent business expenses which reduced each corporations’ income. Ruggieri and Andreozzi also caused the filing of false personal income tax returns for Andreozzi for calendar years 2006, 2007, 2008 and 2009, in that the personal returns failed to include the diverted corporate income, thereby understating on Andreozzi’s personal returns his total income and tax due and owing.
Andreozzi was charged on September 9, 2013, with conspiring to defraud the United States.
If convicted, Ruggieri faces a maximum statutory sentence of up to five years in prison for the conspiracy charge, and three years in prison on each count of willfully aiding and assisting in the filing of false tax returns.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Stephanie D. Evans.
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.
Director of Non-Profit Sentenced in BP Claims Fund Fraud CaseRead 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, Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, and Richard L. Walker, Special Agent in Charge, U.S. Department of Labor, Office of Inspector General - Office of Labor Racketeering and Fraud Investigation, and Jessie Panuccio, Executive Director, Florida Department of Economic Opportunity, announced that Jean Mari Lindor, 32, of Homestead, Florida, was sentenced in federal court in Miami today, for his participation in filing false claims in connection with the Deepwater Horizon explosion and pollution incident in the Gulf of Mexico. Lindor was convicted on charges of mail fraud, wire fraud, access device fraud, and aggravated identity theft, all in connection with fraudulent claims filed by the defendant seeking lost income against the Gulf Coast Claims Facility, the filing of fraudulent tax returns with the Internal Revenue Service, and false claims for unemployment compensation against the State of Florida, in violation of Title 18, United States Code, Sections 1341, 1343, 1029(a)(2) and (b)(1), and 2.
U.S. District Judge K. Michael Moore, who presided over the trial in the matter, sentenced Lindor to 286 months’ in prison, followed by five years of supervised release. A restitution hearing has been scheduled for December 4, 2014.
According to the Indictment and evidence presented at trial, in June 2010, BP established the Gulf Coast Claims Facility (GCCF) for the purpose of administering, mediating, and settling certain claims of individuals and businesses for costs, damages, and other losses incurred as a result of oil discharges due to the April 20, 2010 explosion and fire on the Deepwater Horizon, an oil rig in the Gulf of Mexico that had been drilling an exploration well. In August 2010, the GCCF began receiving and processing such claims of individuals and businesses for costs, damages, and other losses they had incurred as a result of the Deepwater Horizon incident, paying the claims from a $20 billion Trust Fund established for that purpose.
Lindor also used unauthorized access devices during the scheme, consisting of the unique GCCF Claim numbers assigned to his fictitious claims, and without which he would have been unable to communicate with the GCCF, or cause payments to be issued to them. Moreover, Lindor also sought unemployment compensation for more than a year from the State of Florida, falsely certifying that he was not earning income when, in fact, he was actively directing the scheme at Noula.
Furthermore, the evidence at trial showed that Lindor possessed and used without lawful authority the social security numbers of two identity theft victims to file fraudulent tax claims against the IRS, and directed the refunds into either his personal bank account or to bank debit cards.
Mr. Ferrer commended the investigative efforts of the FBI, U.S. Postal Inspection Service, Secret Service, Department of Labor Office of Inspector General, Florida Department of Economic Opportunity and the U.S. Citizenship and Immigration Service, Fraud Detection and National Security Directorate. Mr. Ferrer would also like to thank the National Center for Disaster Fraud (NCDF). This case was prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald.
Members of the public can report fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, including the 2010 Deepwater Horizon oil spill, through the National Center for Disaster Fraud (NCDF) Disaster Fraud Hotline at 877-NCDF-GCF (623-3423), the Disaster Fraud Fax at 225-334-4707, or the Disaster Fraud e-mail at [email protected].
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 Fortune 500 Top Executive of Miami Beach Manufacturing Company Is Sentenced in Multi-Million Dollar Investment 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 Claudio Eleazar Osorio, a/k/a “Claudio Osorio Rodriguez,” 54, of Aventura, was sentenced today by U.S. District Court Judge William Dimitrouleas to 150 months imprisonment and three years of supervised release on two counts of conspiracy to commit wire fraud, and 120 months imprisonment and three years of supervised release on one count of conspiracy to commit money laundering. The terms of imprisonment run concurrently. Osorio was also ordered to pay $23,000,000 in restitution to the victims, and to forfeit his interest in the marital home. Osorio had pled guilty earlier this year, in February 2013.
According to documents filed with the court and statements made in court during the plea, Osorio was the owner and majority shareholder of Innovida Holdings, LLC, a Florida limited liability company, located in Miami Beach. Innovida manufactured fiber composite panels for the construction industry for use in residential, commercial, governmental, and other structures without the need for cement, steel or wood. Innovida purported to be a rapidly expanding and financially strong international operation with facilities in the United States, the United Arab Emirates, Germany, Angola, Tanzania, and other countries.
According to statements made in court, between March 2007 and March 2011, Osorio offered and sold shareholder interests and joint-venture partnerships in Innovida to select individuals and groups, raising more than $40,000,000 from approximately ten (10) investors and investment groups in the United States and abroad. Osorio solicited and recruited investors by making materially false representations and concealing and omitting material facts regarding, among other things, the profitability of the company, the rates of return on investment funds, the use of investors’ funds and the existence of a pending lucrative contract with a third-party entity. Osorio received moneys from investors based on these misrepresentations. Osorio used investor monies for his and his co-conspirators’ personal benefit and to maintain and further the fraud scheme.
According to statements made in court, the second conspiracy to commit wire fraud related to a $10,000,000 loan that Osorio and another applied for and obtained a from the Overseas Private Investment Corporation (“OPIC”), a U.S. government agency that promotes U.S. government investments abroad to foster the development and growth of free markets. The purported purpose of the loan was to build a manufacturing facility and 500 homes in Haiti (“the Haiti project”) for displaced families in the aftermath of the January 2010 earthquake. Osorio and others made materially false representations and omissions concerning, among other things, the profitability of Innovida, the purported use of the loan proceeds, an equity contribution to be made by Innovida, and contracts that Innovida purportedly had obtained with third-party vendors. Osorio used the OPIC loan proceeds to repay investors and for his and his co-conspirators’ personal benefit and to further the fraud scheme.
Mr. Ferrer commended the investigative efforts of the FBI. The case is being prosecuted by Assistant U.S. Attorney Lois Foster-Steers.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Founder of Investment Company Pleads Guilty in $21 Million Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that James C. Howard, III, 53, of Parkland, FL, the founder of Commodities Online LLC (COL), pled guilty yesterday for his participation in a $21 million investment fraud scheme.
Howard pled guilty before U.S. District Judge Ursula Ungaro to one count of conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 1349. Sentencing is scheduled for December 2, 2013.
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 also 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.
Mr. Ferrer commended the investigative efforts of the FBI. 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.
Okeechobee Woman Pleads Guilty to Preparation and Presentation of False Tax ReturnsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that defendant Maria Garcia, 33, of Okeechobee County, pled guilty today to charges of aiding and assisting the preparation and presentation of false tax returns, in violation of Title 26, United States Code, Section 7206(2).
Sentencing is scheduled for December 16, 2013, before U.S. District Judge Donald Graham in Fort Pierce, Florida. At sentencing, Garcia faces a possible maximum statutory sentence of up to three (3) years in prison.
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.
Three Executives of South Florida Psychiatric Hospital Sentenced in $67 Million Health Care Fraud SchemeRead the Press Release
Three executives of Hollywood Pavilion LLC (HP), an inpatient psychiatric hospital located in Broward County, Fla., were sentenced today for their roles in a $67 million Medicare fraud scheme.
U.S. Attorney Wilfredo 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 Investigation’s Miami office made the announcement.
Karen Kallen-Zury, 60, of Lighthouse Point, Fla.; Daisy Miller, 44, of Hollywood, Fla.; and Christian Coloma, 50, of Miami Beach, Fla., were sentenced by U.S. District Judge Jose E. Martinez in the Southern District of Florida. Kallen-Zury was sentenced to serve 25 years in prison; Miller was sentenced to 15 years in prison; and Coloma was sentenced to 12 years in prison. In addition to their prison terms, Kallen-Zury and Miller were ordered to pay more than $39 million in restitution, jointly and severally with certain co-defendants. Coloma was ordered to pay more than $20 million in restitution, jointly and severally with certain co-defendants. The sentencing hearing for Michele Petrie, another convicted executive of HP, is scheduled for Dec. 18, 2013.
On June 28, 2013, Kallen-Zury and Miller were found guilty of one count of conspiracy to commit wire fraud and health care fraud, five substantive counts of wire fraud and two substantive counts of health care fraud. Coloma was convicted of one count of conspiracy to pay bribes in connection with Medicare. Kallen-Zury and Coloma were also convicted on five substantive counts of paying bribes.
“Health care fraud is a devastating crime that threatens the strength and integrity of our health care system,” said U.S. Attorney Ferrer. “As I have previously stated, we remain steadfast in our efforts to protect Medicare from fraud and abuse for those who need it – the sick, the elderly and the poor. Today’s sentencing should send a strong, clear message to anyone seeking to defraud Medicare: You will get caught and you will be brought to justice.”
“These defendants from Hollywood Pavilion who were sentenced today are the first executives from a licensed state hospital prosecuted by the Medicare Fraud Strike Force,” said Acting Assistant Attorney General Raman. “They abused the public’s trust by deliberately targeting disabled substance abusers and conning them into spending weeks locked down at a psychiatric hospital. Their conduct proves that healthcare fraud is not only about harm to the public fisc – it is about real harm to individuals in need of medical care. Thanks to the hard work of the Strike Force, the nine-year, $67 million scheme was discovered, the hospital was shut down, and the executives will now spend as much as 25 years in prison.”
“Bribes, kickbacks and false claims are words that have no place in America’s health care lexicon, yet the greed of these executives developed into an elaborate $67 million health care fraud scheme that involved these very terms,” said FBI Special Agent in Charge Steinbach. “Ultimately, health care fraud robs from the elderly and disabled. The FBI and its partners will continue to pursue those individuals who pay kickbacks and fraudulently bill for medical services that are not necessary or ever provided.”
Evidence at trial demonstrated that the defendants and their co-conspirators caused the submission of false and fraudulent claims to Medicare through HP, a state-licensed psychiatric hospital located in Hollywood that purportedly provided, among other things, inpatient psychiatric care and intensive outpatient psychiatric care. The defendants paid illegal bribes and kickbacks to patient brokers to obtain Medicare beneficiaries as patients at HP who did not qualify for psychiatric treatment. The defendants then submitted claims to Medicare for those patients who were procured through bribes and kickbacks.
According to evidence at trial, Kallen-Zury, the CEO and registered agent of HP, attempted to conceal the payment of bribes and kickbacks by creating false documents to make it appear as if legitimate services were being rendered. Miller, the clinical director of HP’s inpatient facility, and Petrie, the head of HP’s intensive outpatient program, facilitated the payment of bribes to patient recruiters and oversaw the fraudulent admissions and treatment of unqualified patients. Coloma, the director of physical therapy for an entity associated with HP, facilitated the payment of bribes and kickbacks, and he supervised the creation of false documents to conceal the bribery scheme.
From at least 2003 through at least August 2012, HP billed Medicare nearly $70 million for services that were not properly rendered, for patients that did not qualify for the services being billed and for claims for patients who were procured through bribes and kickbacks.
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 Trial Attorneys Robert Zink, Andrew Warren and Anne McNamara of the Criminal Division’s Fraud Section, with assistance from Assistant U.S. Attorney Timothy Abraham of the Southern District of Florida.
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.
Former Owner of Adult Entertainment Businesses Charged with Tax FraudRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Anthony Andreozzi, of Delray Beach, was charged in a one count Information with conspiring to defraud the lawful functions of the Internal Revenue Service (IRS), in violation of Title 18, United States Code, Section 371. Defendant Andreozzi made his initial appearance in federal court today before U.S. Magistrate Judge Dave Lee Brannon.
According to the charges, Andreozzi owned and operated F & A Concepts, Inc. and Galaxy Communications, Inc., which were adult entertainment businesses incorporated in the State of Florida. Andreozzi conspired with another to unlawfully enrich himself by engaging in a fraudulent scheme to evade the payment of federal income taxes. As alleged in the Information, Andreozzi diverted corporate receipts of both corporations for his own personal use. In order to conceal his diversion of corporate funds, Andreozzi instructed his co-conspirator to falsify the corporate books and records by classifying his personal expenditures as business expenses. Defendant Andreozzi and his co-conspirator caused the preparation and filing of false corporate tax returns for F & A Concepts, Inc. and Galaxy Communications, Inc. and false personal income tax returns for defendant Andreozzi for 2006, 2007, 2008 and 2009, in that the corporate returns included fraudulent business expenses and the personal returns failed to include the diverted corporate income, thereby understating the defendant’s total income and tax due and owing on his personal returns.
If convicted, Andreozzi faces a maximum statutory sentence of up to five years in prison.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Stephanie D. Evans.
An Information 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.
Former Fort Lauderdale Securities Professional Sentenced for Obstruction of Proceedings and Providing False Testimony Before the U.S. Securities and Exchange CommissionRead 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 Robert J. Vitale, 42, of Ft. Lauderdale-by-the-Sea, Florida, was sentenced today to 24 months imprisonment, a $50,000 fine, and three-years supervised release by U.S. District Judge Joan A. Lenard. Vitale was convicted of obstruction of proceedings and providing false testimony before the U.S. Securities and Exchange Commission (SEC).
According to court documents, in or around May 2012, the SEC was conducting an official investigation into allegations that Vitale engaged in violation of the securities laws. As part of the investigation, the SEC attempted to identify assets and bank accounts attributable to Vitale. On or about June 4, 2012, Vitale completed and provided to the SEC, a “Background Questionnaire” form purporting to list bank accounts and other assets attributable to him. Shortly before completing the questionnaire, Vitale transferred $100,000 from an account that was disclosed on the form, to a separate account that he controlled.
According to court documents, Vitale willfully failed to disclose the existence of the funds or the bank account holding the funds, to the SEC. Thereafter, on June 5, 2012, Vitale provided sworn testimony to the SEC at the SEC’s Southeast Regional Offices, in Miami, Florida. During this sworn testimony, Vitale provided false testimony about his assets and accounts, as well as the accuracy of the information provided on the form he had submitted to the SEC.
Previously, in an unrelated matter, Vitale was charged civilly with violating securities laws in 2004, and was the subject of Final Judgment in SEC v. Robert Vitale, et al., No. 04-60493 (the “2004 Case”), in which he was ordered to pay disgorgement and civil penalties for violations of the federal securities laws. According to court records, as of June 2012, when he provided false sworn testimony and engaged in conduct designed to conceal his assets, Vitale had failed to satisfy his obligations from the 2004 Case.
In addition to the sentence of 24-months imprisonment and $50,000 fine, during the defendant’s three-year supervised release term, he was ordered to have no involvement in the securities or real estate industries, and no involvement in any investment business absent court permission.
Mr. Ferrer commended the investigative efforts of the FBI and the SEC. The matter is being prosecuted by Assistant U.S. Attorney Jerrob Duffy.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Multiple Defendants Indicted on Drug Trafficking ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Mark R. Trouville, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (ICE-HSI), announce the indictment of several individuals for their alleged participation in a drug trafficking conspiracy. The defendants were arrested on September 4, 2013 and made their initial appearances yesterday in federal court.
Charged in the eight-count Indictment are the following individuals:
Jose Alberto Ontivero Monte de Oca, aka “Pariente,” aka “El Viejo,” aka “Papito,” 54, of Hialeah, Florida;
Pedro Farach, 45, of Hialeah, Florida;
Jaime Maldonado Ramos, aka “Oggie,” 46, of Homestead, Florida;
Jose Alfredo Villarreal, aka “Alfredito,” 40, of Naples, Florida;
Roberto Perez, aka “Rodo,” 46, of Pembroke Pines, Florida;
Juan Enrique Martinez, 50, of Miami, Florida;
Alberto Arregoitia Lorenzo, aka “Lorenzo Arregoitia,” 61, of Miami, Florida;
Miguel Angel Desdin, aka “Miguelon,” 59, of Hialeah, Florida;
Vladimir Mir-Medina, aka “Vladimir Medina,” aka “Vladimir Mir,” 50, of Miami, Florida;
Miguel Cruz, 49, of Hialeah, Florida;
Manuel Bautista Alvarez, 53, of Miami, Florida;
Hernan Rodriguez Alfaro, aka “Iran,” 40, of Cutler Bay, Florida; and
Rafael Luis Ramos Lopez, aka “Lou,” 46, of Miami, Florida.The indictment, filed on August 23, 2013, and unsealed yesterday, charges the defendants with conspiracy to possess with intent to distribute over five kilograms of cocaine and distribution and/or possession with intent to distribute cocaine, in violation of Title 21, United States Code, Sections 841(a)(1) and 846. If convicted, the defendants each face a mandatory minimum sentence of 10 years in prison and a possible statutory maximum sentence of life. Jaime Maldonado Ramos, who is also charged with firearms offenses in violation of Title 18, United States Code, Sections 922(g)(1) and 924(c), faces an additional mandatory minimum sentence of five years in prison and a possible statutory maximum sentence of life.
This case is a result of the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. 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 the DEA, ATF and ICE-HSI. Mr. Ferrer also commended the U.S. Marshals Service, the Miami-Dade Police Department, the Coral Gables Police Department, the Hialeah Police Department, the Homestead Police Department and the West Miami Police Department for their assistance in this investigation. The case is being prosecuted by Assistant U.S. Attorney Elisa Castrolugo.
An indictment is only an accusation and the defendants are 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.
Bolivian Police Officer Arrested on Extortion ChargesRead 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, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, Vernot Foret, Director Field Operations, U.S. Customs and Border Protection (CBP), Miami Field Office, and Richard M. Blom, Chief, Doral Police Department, announce the arrest of defendant Francisco Mario Ormachea Aliaga, 42, of Bolivia, on a criminal complaint charging him with traveling in interstate commerce with the intent to promote, manage, establish, carry on, and facilitate an unlawful activity, that is, extortion, in violation of Florida Statute section 836.05, and Title 18, United States Code, Section 1951(a), and thereafter performing and attempting to perform an act to promote, manage, establish and carry on, and to facilitate the promotion, management, establishment, and carrying on of such unlawful activity, in violation of Title 18, United States Code, Section 1952(a)(3). Ormachea made an initial appearance before U.S. Magistrate Judge Barry L. Garber on Tuesday, September 3, 2013, and is scheduled to be arraigned on September 17, 2013.
According to the allegations in the complaint, the FBI was contacted by a Bolivian businessman with initials “H.R.” on August 29, 2013. H.R. told the FBI that someone who identified himself as “the Colonel” had contacted H.R. to request a meeting in the United States. Subsequent investigation revealed that the caller, who had referred to himself as “the Colonel,” was Ormachea.
On August 29, 2013, Ormachea departed La Paz, Bolivia on a commercial flight to Lima, Peru, and then flew on another commercial flight to Miami International Airport. At Miami International Airport, Ormachea presented a valid Bolivian passport containing a valid United States tourist visa to United States Customs and Border Protection, who admitted him into the United States.
On August 30, 2013, H.R. met with Ormachea. The FBI monitored and recorded this meeting. During the meeting, Ormachea discussed the issues surrounding the criminal case against H.R. in Bolivia. Ormachea offered to dispose of the criminal charges pending against H.R. in Bolivia for a fee of $30,000. Ormachea agreed to take a payment of $10,000 immediately and receive the remainder of the payment later.
On Saturday, August 31, 2013, H.R. met with Ormachea again. The FBI monitored and recorded this meeting. During the course of the meeting, Ormachea stated that, in exchange for $30,000, he would drop the charges against H.R. and charge someone else instead. If, however, H.R. did not pay, Ormachea said that he would pursue H.R.’s arrest in the United States, extradition to Bolivia, and prosecution there. H.R. gave Ormachea $5,000 in previously-recorded bills as an initial payment towards the $30,000 required to resolve the charges against him. After the meeting, Ormachea departed by car.
FBI surveillance teams in coordination with local law enforcement conducted a traffic stop of Ormachea shortly thereafter. Ormachea was detained and $5,000 was recovered from his person. A review of the seized U.S. currency revealed that it matched the previously recorded bills.
Law enforcement officials interviewed Ormachea at the Miami Field Office of the FBI. After receiving and waiving his Miranda warnings in writing, Ormachea acknowledged meeting with H.R. on two occasions but denied attempting to extort H.R. Ormachea acknowledged that he is a member of the Bolivian National Police Corps, but stated that he was not traveling in his official capacity as a diplomat of Bolivia.
Mr. Ferrer commended investigative efforts of the FBI, ATF, CBP and the Doral Police Department. This case is being handled by Assistant U.S. Attorneys John Byrne and Jaime Raich.
A complaint is merely an accusation and a defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Owners of Home Health Companies and Patient Recruiter Plead Guilty in Miami for Role in $20 Million Health Care Fraud SchemeRead the Press Release
The owners and operators of several Miami home health care agencies and a patient recruiter pleaded guilty today in connection with a health care fraud scheme involving defunct home health care company Trust Care Health Services Inc. (Trust Care).
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; 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; 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; and Acting Special Agent in Charge Michael J. DePalma of the Internal Revenue Service—Criminal Investigation’s (IRS-CI) Miami Field Office made the announcement.
Roberto Marrero, 60; Sandra Fernandez Viera, 49; and Enrique Rodriguez, 59, all of Miami, pleaded guilty before U.S. Magistrate Judge Edwin G. Torres in the Southern District of Florida to conspiracy to commit health care fraud and conspiracy to receive and pay health care kickbacks.
Marrero and Fernandez Viera were owners and operators of Trust Care, a Miami home health care agency that purported to provide home health and physical therapy services to Medicare beneficiaries. Rodriguez worked as a patient recruiter on behalf of Trust Care and Marrero and Fernandez Viera.
According to court documents, Marrero and Fernandez Viera operated Trust Care for the purpose of billing the Medicare Program for, among other things, expensive physical therapy and home health care services that were not medically necessary and/or were not provided.
Marrero largely controlled Trust Care and, in light of that role, oversaw the schemes operating out of the company. Fernandez Viera’s primary role, among others, involved managing and supervising personnel at Trust Care. Both Marrero and Fernandez Viera were responsible for negotiating and paying kickbacks and bribes, interacting with patient recruiters, and coordinating and overseeing the submission of fraudulent claims submitted to the Medicare program.
Marrero, Fernandez Viera and their co-conspirators paid kickbacks and bribes to patient recruiters, including Rodriguez, in return for the recruiters providing patients to Trust Care for home health and therapy services that were medically unnecessary and/or not provided. Marrero, Fernandez Viera and their co-conspirators at Trust Care also paid kickbacks and bribes to co-conspirators in doctors’ offices and clinics in exchange for home health and therapy prescriptions, medical certifications and other documentation. Marrero, Fernandez Viera and their co-conspirators used these prescriptions, medical certifications and other documentation to fraudulently bill the Medicare program for home health care services, which Marrero and Fernandez Viera knew was in violation of federal criminal laws.
Rodriguez offered and paid kickbacks and bribes to Medicare beneficiaries in return for those beneficiaries allowing Trust Care to bill Medicare for services that were medically unnecessary and/or not provided. Rodriguez solicited and received kickbacks and bribes from the owners and operators of Trust Care, including Marrero and Fernandez Viera, in return for his patient recruiting. Rodriguez knew that in many instances the patients he recruited for Trust Care did not qualify for the services billed to Medicare.
From approximately March 2007 through at least October 2010, Trust Care submitted more than $20 million in claims for home health services. Medicare paid Trust Care more than $15 million for these fraudulent claims.
Marrero, Fernandez Viera and Rodriguez also acknowledged their involvement in similar fraudulent schemes at several other Miami health care agencies in addition to Trust Care with estimated total losses of approximately $50 million, including Global Nursing Home Health Inc., Lovable Home Health Services Corp., New Concepts In Health Inc., Ubieta Health System Inc., R&M Health Care Inc., Vital Care Home Health Services Inc., Centrum Home Health Care Inc. and A&B Health Services Inc.
At sentencing, scheduled for Nov. 12, 2013, the defendants face a maximum penalty of 10 years in prison for conspiracy to commit health care fraud and five years in prison for conspiracy to receive and pay health care kickbacks.
The case was investigated by the FBI and HHS-OIG, with the assistance of IRS-CI, 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 1,500 defendants who have collectively billed the Medicare program for more than $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.
Miami Resident Sentenced for Taking Migratory Birds and Unlawful Possession of A FirearmRead 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), and David Pharo, Resident Agent in Charge, U.S. Fish and Wildlife Service (USFWS), Office of Law Enforcement (OLE), announce that on September 4, 2013, Jose Valladares, 56, of Miami, pled guilty to charges of taking migratory birds and unlawful possession of a firearm. Valladares was sentenced immediately following his guilty plea by U.S. District Judge Kathleen M. Williams to one year probation and a $125 special assessment.
According to Court documents and statements at the hearing, Valladares established a bird trap on his property which captured a turkey vulture (Cathartes aura), a species of migratory bird protected pursuant to the convention between the United States of America and the then existing Union of Soviet Socialist Republics concerning the conservation of migratory birds and their environment. The case also involved the capture and possession of three painted buntings (Passerina ciris), and four indigo buntings (Passerina cyanea).
During the operation to recover the painted and indigo buntings, Valladares was found to be in possession of a firearm and ammunition. Valladares was prohibited from possessing the same pursuant to a court order issued on or about January 22, 2004, by the Eleventh Judicial Circuit in Miami-Dade County.
Mr. Ferrer commended the investigative efforts of USFWS-OLE and ATF. This 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.
Former Wellington Resident Charged in Investment Fraud 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, Michael J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Drew J. Breakspear, Commissioner, Florida’s Office of Financial Regulation, announced the return of a 27-count indictment charging Joseph Paul Zada, 55, of Grosse Pointe Shores, Michigan, with mail fraud, wire fraud, interstate transportation of stolen property, and money laundering in connection with an investment fraud scheme.
According to the indictment, in order to attract investors to his fraudulent scheme, Zada projected an image of great wealth, portraying himself as a successful businessman and investor with connections to Saudi Arabian oil ventures. In this regard, Zada hosted extravagant parties, drove expensive luxury vehicles, and maintained expensive homes in Wellington, Florida and Grosse Pointe, Michigan. The indictment alleges that Zada told investors that he would invest their monies in oil related ventures. Instead of being used to invest in oil ventures, the investor monies were used to support Zada’s lavish lifestyle and to make purported returns on investments to prior investors. According to the indictment, Zada caused over twenty investors to invest over $20 million in his fraudulent scheme.
If convicted, Zada faces a statutory maximum penalty of 20 years in prison for each count of mail fraud and wire fraud, and a statutory maximum of 10 years in prison for each count of interstate transportation of stolen property and money laundering.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI and the Florida Office of Financial Regulation. The case is being prosecuted by Assistant U.S. Attorney Rolando Garcia.
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.
Two Patient Recruiters of Miami Home Health Company Plead Guilty in $48 Million Health Care Fraud SchemeRead the Press Release
Two patient recruiters of a Miami health care company pleaded guilty late 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 Dennis of the HHS Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
Elizabeth Monteagudo, 33, and Cristobal Gonzalez, 39, both of Miami, pleaded guilty on Sept. 3, 2013, before U.S. District Judge Joan A. Lenard to one count each of conspiracy to receive health care kickbacks. Monteagudo also pleaded guilty to receipt of kickbacks in connection with a federal health care program. Both charges carry a maximum penalty of five years in prison, and sentencing for both defendants is scheduled for Dec. 2, 2013.
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 108 and 51 months in prison, respectively. Their sentencings followed their December 2012 guilty pleas each to one count of conspiracy to commit health care fraud charged in an October 2012 indictment, which charged 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 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 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 1,500 defendants who collectively have falsely billed the Medicare program for more than $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-Dade Man Charged in $13 Million Stolen Identity Tax Refund Scheme Involving Fraudulent Florida Lottery ClaimsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Ronald Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), announce the indictment of Orlando Cairo, Jr., of Miami, on filing fraudulent income tax returns with the IRS and claiming refunds based on fraudulently claimed income and withholding paid by the State of Florida, Department of the Lottery (“Florida Lottery”). Defendant Cairo had his initial appearance today in federal court in West Palm Beach before U.S. Magistrate Judge James M. Hopkins at 10:00 a.m.
The indictment charges Cairo with one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, eight counts of wire fraud, in violation of Title 18, United States Code, Section 1343, seven counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A, three counts of alteration of a treasury check, in violation of Title 18, United States Code, Section 471, and one count of destruction of records, in violation of Title 18, United States Code, Section 1519.
According to the previously filed complaint and the indictment, Cairo obtained the means of identification of individuals, including their names, dates of birth, and social security numbers. He used these identifications to electronically file IRS income tax returns which claimed fraudulent gambling winnings from and withholdings by the Florida Lottery. From January 2012 through July 12, 2012, Cairo filed and caused to be filed with the IRS approximately 624 fraudulent tax returns seeking refunds of over $13,000,000.
In addition, the indictment alleges that Cairo altered three United States Treasury tax refund checks in the amounts of $412.90, $25.70, and $406.99, to increase the amounts of the checks to $88,412.90, $88,525.70, and $88,406.99, respectively.
If convicted, Cairo faces a possible maximum statutory sentence of 20 years in prison for each count of conspiracy to commit wire fraud, wire fraud, altering a treasury check, and destruction of records, and two years consecutive in prison for each count of aggravated identity theft.
Mr. Ferrer thanked IRS-CI and USPIS for their work on this case. The case is being prosecuted by Assistant U.S. Attorney Bertha R. Mitrani and Department of Justice Trial Attorney Jed Silversmith.
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.
Two Attorneys Charged in Connection with Rothstein Ponzi SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael J. De Palma, Acting 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 the arrest of Douglas L. Bates, 54, of Parkland, and Christina M. Kitterman, 38, of Deerfield Beach. Arraignment for Bates is scheduled for September 4, 2013, and arraignment for Kitterman is scheduled for September 6, 2013, both before U.S. Magistrate Judge James M. Hopkins.
According to two indictments unsealed in court earlier today, Bates was charged with conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, and wire fraud, in violation of Title 18, United States Code, Section 1343 (three counts). Kitterman was charged with conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349. Each of the aforesaid counts is punishable up to twenty years’ imprisonment and a fine of $250,000.00.
U.S. Attorney Wifredo A. Ferrer said, “As I have previously stated, the breadth, scope and sheer complexity of Rothstein’s $1.2 billion Ponzi scheme is mind-boggling. The success of such a large-scale scheme depended on the complicity of Rothstein’s colleagues and associates, like Douglas Bates and Christina Kitterman. Bates and Kitterman, both attorneys, are the fifteenth and sixteenth individuals to face criminal charges in connection with this complex financial fraud.”
Acting SAC Michael J. De Palma stated, “Complex financial schemes such as the one orchestrated by Scott Rothstein do not occur in a vacuum. It is sad when you see two attorneys violate the public’s trust by using their law licenses to perpetrate a massive fraud. Together with our law enforcement partners, IRS-CI is committed to aggressively investigating and bringing to justice those who knowingly assist in perpetrating investment scams.”
“The FBI tirelessly pursues those who defraud investors,” said Michael B. Steinbach, Special Agent in Charge, FBI, Miami. “As attorneys, Bates and Kitterman took an oath to act with fairness and integrity but chose to violate that oath to assist Rothstein with perpetrating his massive fraud scheme.”
The acts set forth in the charging documents were all in furtherance of a “Ponzi” scheme involving the sale of purported confidential settlement agreements in sexual harassment and/or whistle blower cases which were purportedly handled by attorneys at the former Ft. Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA).
The indictment against Douglas Bates charges that, while he was a partner in the Law Offices of Koppel and Bates, located in Plantation, Florida, he assisted Scott W. Rothstein in defrauding certain clients of RRA by creating a fraudulent and fictitious settlement letter purporting to resolve certain civil litigation to the benefit of RRA’s clients when, in fact, Bates did not represent the alleged party and no such litigation had ever been instituted. Additionally, the indictment charges that Bates drafted false and fraudulent opinion letters claiming to represent an investment group which had a business plan to invest in the confidential settlements which formed the basis for the Ponzi scheme when, in fact, he did not, and claiming that he represented a plaintiff who had entered into one of the confidential settlement agreements when, in fact, he did not. The indictment further alleges that Bates assisted Rothstein by arranging to have representatives of an investment group falsely informed that numerous legal cases were referred by Koppel & Bates to RRA when, in fact, they were not.
The indictment against Christina Kitterman charges that, during the course of the Ponzi scheme, and while she was employed as an attorney at RRA, Kitterman falsely posed as the head of the Ft. Lauderdale office of the Florida Bar Association during a meeting with certain investors and falsely claimed that certain of the RRA bank accounts had been frozen in connection with a pending Bar investigation of Rothstein. According to the indictment, this was done in order to explain to the investors the reason why certain payments due to them had not been made.
Mr. Ferrer commended the investigative efforts of IRS-CI and the FBI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, Jeffrey N. Kaplan and Evelyn B. Sheehan.
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.
Fort Pierce Man Indicted for Drug Trafficking and Firearms ChargesRead 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), announce the indictment of Samuel George Brown, 49, of Fort Pierce, on charges of prohibited possession of firearms, in violation of Title 18, United States Code, Sections 922(g) and (k); possession with intent to distribute marijuana, in violation of Title 21, United States Code, Section 841(a); and, possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c). Brown appeared in court earlier this morning before U.S. Magistrate Judge Frank J. Lynch, Jr. for arraignment on the charges.
According to the indictment, as well as an earlier federal complaint, Brown was found in possession of a .380 caliber Hi-Point handgun, as well as a .22 caliber Marlin rifle and a 12-gauge Mossberg shotgun, with corresponding ammunition, in his home. Officers of the St. Lucie County Sheriff’s Office discovered the firearms and ammunition, together with marijuana packaged for sale, when they executed a search warrant at Brown’s Fort Pierce home on June 8, 2013. Brown is a previously convicted felon.
If convicted, the defendant faces a maximum statutory term of imprisonment of ten years on each of the prohibited firearms possession counts, as well as the drug trafficking count, and a mandatory consecutive sentence of an additional five years, on the gun possession in furtherance of a drug crime count.
Mr. Ferrer commended the investigative efforts of ATF, the Fort Pierce Police Department, and the St. Lucie County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Theodore Cooperstein
An indictment is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Office Manager for Health Care Solutions Network Sentenced for $63 Million Medicare FraudRead the Press Release
A former office manager at the defunct health care provider Health Care Solutions Network Inc. (HCSN) was sentenced today in Miami to serve 68 months in prison for her role in a fraud scheme that resulted in more than $63 million in fraudulent claims to Medicare and Florida Medicaid.
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.
Lisset Palmero, 45, of Miami, was sentenced by U.S. District Judge Cecilia M. Altonaga in the Southern District of Florida. In addition to her prison term, Palmero was sentenced to three years of supervised release and ordered to pay restitution in the amount of $17.4 million.
During the course of the conspiracy, Palmero was employed as a receptionist and office manager 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. According to court documents, Palmero was aware that HCSN-FL paid illegal kickbacks to owners and operators of Miami-Dade County Assisted Living Facilities (ALF) in exchange for patient referral information to be used to submit false and fraudulent claims to Medicare and Medicaid. Palmero also knew that many of the ALF referral patients were ineligible for PHP services because they suffered from mental retardation, dementia or Alzheimer's disease.
Court documents reveal that Palmero was aware that HCSN-FL personnel were 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. Palmero was also aware that medical records were fabricated for “ghost patients” who were never admitted to the HCSN-FL PHP. During her employment at HCSN-FL, Palmero actively concealed the fabrication of medical records by preparing, and causing others to prepare, documentation that was later utilized to support false and fraudulent billing to government-sponsored health care benefit programs, including Medicare and Florida Medicaid.
According to court documents, from 2004 through 2011, HCSN billed Medicare and the Florida Medicaid program approximately $63 million for purported HCSN-FL 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 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 and former Special Trial Attorney William J. Parente.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is 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.
Vero Beach Resident Charged with 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 the filing of an information against Toby Lamm, 46, of Vero Beach. The information charges that Lamm imported and attempted to import into the United States fish and wildlife possessed and transported in violation of the laws of the Commonwealth of the Bahamas and the State of Florida, in violation of the Lacey Act, Title 16, United States Code, Sections 3371(a)(2)(A) and 3373(d)(1)(A). The information also seeks the forfeiture of the illegal catch: approximately, 338 queen conch, 11 spiny lobster tails, 31 stone crab claws, and 140 pounds of Snapper and Grouper fillets.
According to the information, on or about June 23, 2013, in St. Lucie County, Lamm attempted 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).
The case has been assigned to U.S. District Court Judge Jose E. Martinez. If convicted, Lamm faces a possible sentence of up to one year in prison, the forfeiture of the illegal catch, and a fine of up to $10,000.
Mr. Ferrer commended the investigative efforts NOAA Office of Law Enforcement, FWC, and Customs and Border Protection. 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.
North Miami Man Charged in Unemployment Benefits SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Richard Walker, Special Agent in Charge, United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, and Jesse Panuccio, Executive Director, State of Florida Department of Economic Opportunity, announce the return of a 21-count indictment charging Guy Robert Nalien, 26, of North Miami, Florida, with wire fraud, mail fraud and aggravated identity theft in unemployment benefits scheme.
According to the indictment, Nalien utilized the personal identification of others to falsely represent to the Florida Department of Economic Opportunity Unemployment Compensation Program that such individuals were unemployed and eligible to obtain Florida unemployment compensation benefits. The indictment further alleges that Nalien received the fraudulently obtained benefits for his own personal use.
If convicted, Nalien faces a statutory maximum penalty of 20 years in prison for each count of mail fraud and wire fraud, followed by three years of supervised release, a fine of up to $250,000 and restitution, and a consecutive two years in prison for each count of aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations and the State of Florida Department of Economic Opportunity. The case is being prosecuted by Assistant U.S. Attorney Thomas P. Lanigan.
An indictment is only an accusation, and defendants are 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.
Hallandale Beach Tax Preparer Sentenced for Filing False Tax Returns on Behalf of Himself and His ClientsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigations (IRS-CI), announce that defendant Efrain Felipe, 41, of Hallandale Beach, was sentenced today before U.S. District Judge Robert N. Scola Jr. Defendant Felipe was sentenced to 18 months of imprisonment, to be followed by one year of supervised release. In addition, Felipe was ordered to pay restitution to the Internal Revenue Service in the amount of $17,989. Felipe previously pled guilty to a two-count Information, charging him with making and subscribing a false tax return on behalf of a client, and aiding and abetting, in violation of Title 26, United States Code, Sections 7206(1) and 7206(2).
According to court documents and statements made in court, Felipe operated a tax preparation business in Broward County, and prepared tax returns on behalf of his customers, falsely claiming that some customers were entitled to a First Time Home Buyers Credit (FTHBC) of $7,500 for properties they did not own or for properties that were purchased years earlier. Felipe also falsely claimed the FTHBC on his own personal tax return.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case was prosecuted by Assistant U.S. Attorney Norman O. Hemming, III.
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.
Alleged Colombian Drug Kingpin Extradited to the United States to Face Drug ChargesRead 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 Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce the extradition of Diego Perez Henao, a/k/a “Diego Rastrojo.” Perez Henao, 42, a Colombian national who has been in custody awaiting extradition since his capture in Venezuela in June 2012, was extradited from Colombia on Wednesday, August 28, 2013. He made his initial appearance in federal court in Miami on Thursday, August 29, 2013.
Perez Henao was indicted by a federal grand jury on February 8, 2011, and is charged with conspiring with others to manufacture and distribute five or more kilograms of cocaine from 1993 until February 2011, knowing that the cocaine would be unlawfully imported into the United States. If convicted, Perez Henao faces a statutory mandatory minimum sentence of ten-years in prison and a potential maximum sentence of life.
On January 30, 2013, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated Perez Henao as a Specially Designated Narcotics Trafficker (SDNT). According to OFAC, Perez Henao’s drug trafficking organization was responsible for both supplying and shipping numerous multi-ton loads of cocaine from South America to Central America and Mexico with an eventual destination of the United States. In addition, Perez Henao is identified as one of the primary leaders of one of the largest and most influential narco-trafficking organizations which has filled the power void following the fall of the Norte Valle Cartel and the dissolution of the Autodefensas Unidas de Colombia.
U.S. Attorney Wifredo A. Ferrer stated, “Perez Henao’s extradition not only demonstrates our unwavering commitment to stemming the flow of cocaine into the United States at the source, but also illustrates the strong partnerships we have maintained with our law enforcement counterparts around the world.”
“The collaboration between the United States and the Colombian government has been essential in the arrest and extradition of the notorious Rastrojos leader, Diego Perez-Henao, to the United States,” said DEA Special Agent in Charge Mark R. Trouville. “The DEA will continue to join forces with our foreign law enforcement partners to bring high level narco- traffickers to justice.”
“This is an outstanding example of an international partnership, this time with the Colombian National Police, that disrupted a major drug organization,” said Michael B. Steinbach, Special Agent in Charge of FBI Miami. “Henao’s drug trafficking enterprise knew no boundaries reinforcing the FBI’s commitment to working with law enforcement agencies around the world.”
The indictment of Perez Henao is the result of Organized Crime Drug Enforcement Task Force (OCDETF) led by the DEA and FBI. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Mr. Ferrer commends the outstanding investigative efforts of DEA, FBI and their Colombian law enforcement partners. The case is being prosecuted by Assistant United States Attorney Adam Fels.
An indictment 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.
Two Individuals Charged in Fraudulent Invoice SchemeRead the Press Release
Wifredo A Ferrer, United States Attorney for the Southern District of Florida, and Michael J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that defendant Francis Maikisch, 49, of Pembroke Pines, and Angel Moran, 46, of Miami, were charged in a 23-count indictment with conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, wire fraud, in violation of Title 18, United States Code, Section 1343, and money laundering, in violation of Title 18, United States Code, Section 1957. The indictment also seeks the forfeiture of up to $1,999,414.14, the amount of currency involved in the wire fraud and money laundering offenses.
According to the indictment, Maikisch worked for TracFone Wireless, Inc., as a freight supervisor from June 2008 through November 2012. And, between November 16, 2010 and August 28, 2012, Maikisch intentionally caused TracFone to pay, by wire transfer, Moran’s freight company for false and fraudulent invoices submitted by Moran for fictitious shipments. As further alleged in the indictment, TracFone paid Moran’s freight company $1,999,414.14 for the false and fraudulent invoices.
If convicted, the defendants face a possible statutory maximum sentence of up to 20 years in prison as to each count of wire fraud and conspiracy to commit wire fraud, and 10 years as to each count of money laundering.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Elijah A. Levitt.
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.
Sweetwater Police Detective Arrested for Credit Card Fraud and Aggravated Identity TheftRead 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 the arrest of William Garcia, a detective with the Sweetwater Police Department, for alleged use of a counterfeit access device and aggravated identity theft.
The complaint charges Garcia with a single count of use of a counterfeit access device, in violation of Title 18, United States Code, Section 1029(a)(1), and a single count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). If convicted, Garcia faces a possible maximum sentence of five years’ imprisonment as to the counterfeit access device violation, and a two year mandatory minimum sentence of imprisonment as to the aggravated identity theft violation.
According to the facts alleged in the complaint, Garcia participated in a counterfeit credit card scheme in late 2010 through 2011. Garcia’s criminal activities included providing his own credit card for use in manufacturing fraudulent credit cards, hiding evidence when he learned a co-conspirator had been arrested, and ultimately possessing and using counterfeit cards that Garcia claimed had been seized during the course of his duties.
Mr. Ferrer commended the investigative efforts of the FBI led Miami Area Corruption Task Force. This case is being prosecuted by Assistant U.S. Attorney Anthony LaCosta.
A complaint is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami Resident Convicted in Identity Theft Tax Refund 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), Michael J. DePalma, Acting 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 defendant Math Benjamin, 33, of Miami, was convicted on two counts charged in the third superseding indictment.
Defendant Benjamin was found guilty on Friday, August 23, 2013 of one count of theft of government funds, in violation of Title 18, United States Code, Sections 641 and 2, and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2.
According to testimony and evidence presented at trial, Benjamin received multiple fraudulent tax refunds into his bank accounts. These fraudulent tax refunds were obtained by using the personal identification information of individuals without their permission.
Sentencing is scheduled for November 6, 2013, before U.S. District Judge Marcia Cooke. At sentencing, Benjamin faces up to 10 years in prison for the theft of government funds to be served consecutively by two years in prison for the aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to the USSS, IRS-CI, and the FBI. The case is being prosecuted by Assistant U.S. Attorneys Gera Peoples and Cristina Moreno.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Wellington Resident Charged in Investment Fraud 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, and Drew J. Breakspear, Commissioner, Florida’s Office of Financial Regulation, announce the unsealing of an indictment charging George Louis Theodule, 52, former resident of Wellington, FL, with multiple counts of wire fraud, securities fraud and money laundering. Theodule was arrested on August 23, 2013 and had his initial appearance before U.S. Magistrate Judge Dave Brannon later that morning.
According to the indictment, Theodule engaged in an investment fraud or “Ponzi” scheme, wherein he induced individuals to invest money with his companies, Creative Capital Consortium and A Creative Capital Concepts, based upon the representation that he would be able to double their money in 90 days, primarily by trading in stock options. Theodule, the indictment alleges, targeted the Haitian community in South Florida and elsewhere, forming “investment clubs” which attracted thousands of investors between late 2007 and late 2008. In reality only a small portion of investors’ money was placed into trading accounts – which invariably were depleted without showing any gains whatsoever. Rather, substantial funds were used to repay earlier investors, creating the appearance of investment success, and other funds were used by the defendant for his personal benefit. The scheme unraveled in early 2009 when the Securities and Exchange Commission obtained a restraining order and later an injunction to stop the alleged unlawful practices. Investors ultimately lost tens of millions of dollars.
U.S. Attorney Wifredo A. Ferrer stated, “Ponzi schemes, affinity fraud schemes, and high-yield investment fraud scams such as this pose a serious threat to people. For years, George Louis Theodule lured members of the Haitian community to invest money with promises of high-yield returns. In reality, only a small amount of the money was invested, while a substantial portion was used to repay earlier investors, creating the appearance of investment success. Even worse, George Theodule was using their hard earned money for his own personal benefit. The U.S. Attorney’s Office stands committed to bring to justice those who seek to undermine faith in our investment markets.”
“This is a stark reminder that promises of large returns with little risk should immediately send up red flags and make investors run the other way,” said Michael B. Steinbach, Special Agent in Charge of FBI Miami. “Securities markets must be regulated and transparent so investors can continue to trust and have faith in the system. Proactive investigations allow the FBI to prevent losses to victims by identifying those involved and holding them accountable for their unscrupulous actions.”
“This case provides an egregious example of someone exploiting the trust of members of their own community. It demonstrates the Florida Office of Financial Regulation’s (OFR) commitment to work cooperatively in partnership with other state and federal agencies, such as the United States Attorney’s Office to identify and prosecute those who seek to violate that trust and act illegally for their own financial gain,” said OFR Commissioner Drew J. Breakspear. “The OFR is committed to protecting the citizens of Florida while providing smart, efficient and effective regulation of the financial services industry.”
If convicted, Theodule faces a possible statutory maximum sentence of up to 20 years in prison as to each count of wire fraud, and 10 years as to each count of securities fraud and money laundering.
Mr. Ferrer commended the investigative efforts of the FBI and the Florida Office of Financial Regulation. The case is being prosecuted by Assistant United States Attorneys Roger H. Stefin and Carolyn Bell.
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.
Defendant Sentenced in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael J. DePalma, Acting 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 defendant Nael Dawud Sammour, 52, of Pompano Beach, was sentenced yesterday before U.S. District Judge William P. Dimitrouleas in connection with his previous conviction on two counts of aggravated identity theft in violation of 18 U.S.C. § 1028A and eight counts of theft of public money in violation of 18 U.S.C. § 641.
At yesterday’s hearing, U.S. District Judge William P. Dimitrouleas sentenced defendant Nael Sammour to 139 months in prison to be followed by four years of supervised release.
According to testimony and evidence presented at trial, as well as from court documents, unknown individuals used stolen identification information, including the names, dates of birth, and social security numbers of unsuspecting taxpayers to fraudulently apply for and receive U.S. tax refunds to which they were not entitled. Thereafter, Sammour obtained many of these fraudulently obtained U.S. Treasury tax refund checks and later transferred these checks, along with counterfeit driver’s licenses and Social Security cards, to undercover IRS agents posing as check cashers. In total, agents seized 75 fraudulently obtained U.S. Treasury tax refund checks totaling $750,369.45 from Defendant Sammour. Moreover, when Sammour was arrested, law enforcement located and seized $30,128.24 in U.S. currency.
Mr. Ferrer commended the investigative efforts of the IRS-CI and the FBI for their work on the case. This case is being prosecuted by Assistant U.S. Attorney Marc Anton.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.