Southern District of Florida
Press releases recorded for this federal judicial district.
Justice Department Releases Investigative Findings on the City of Miami Police Department and Officer-Involved ShootingsRead the Press Release
WASHINGTON – Following a comprehensive investigation, the Justice Department today released its letter of findings determining that the city of Miami Police Department (MPD) has engaged in a pattern or practice of excessive use of force through officer-involved shootings in violation of the Fourth Amendment of the Constitution. Between 2008 and 2011, officers intentionally shot at individuals on 33 separate occasions, three of which MPD itself found unjustified. The department found that a number of MPD practices, including deficient tactics, improper actions by specialized units, as well as egregious delays and substantive deficiencies in deadly force investigations, contributed to the pattern or practice of excessive force.
The department's findings noted that MPD did not provide close supervision or hold individuals accountable for their actions by failing to complete thorough, objective and timely investigations of officer-involved shootings. For a significant number of the shootings, including one that occurred in 2008, MPD has not reached a conclusion internally as to whether or not the officer’s firearm discharge was lawful and within policy. The Justice Department found that MPD’s failure to complete timely and thorough investigations of officer-involved shootings undermined accountability and exposed MPD officers and the community to unreasonable risks that might have been addressed through prompt corrective action, noting that several investigations remained open for more than three years. Significantly, a small number of officers were involved in a disproportionate number of shootings, while the investigations into their shootings continued to be egregiously delayed. The findings released today mark the conclusion of the department’s second investigation of MPD in recent years. The department noted that similar deficiencies were found in its previous investigation that began in 2002.
“Although MPD appeared to correct course after our first investigation, many of the systemic problems that we previously identified returned to root deeply in MPD’s practices. Our findings should serve as a catalyst to help MPD and the city of Miami restore the community’s confidence in fair, effective and accountable law enforcement,” said Roy L. Austin Jr, Deputy Assistant Attorney General for the Civil Rights Division. “We look forward to collaborating with Chief Orosa, Mayor Regalado and the people of Miami to create and implement a comprehensive, court-enforceable plan to ensure sustainable reform.”
Wifredo Ferrer, U.S. Attorney for the Southern District of Florida stated, “In November 2011, the Civil Rights Division of the Department of Justice began a formal investigation to determine whether the city of Miami Police Department had engaged in a pattern or practice of excessive use of deadly force by firearms. After a careful and thorough review of the facts and circumstances surrounding a series of police-involved shootings, the Civil Rights Division found that the police department in fact engaged in such prohibited conduct. Today, we are releasing the detailed findings of the investigation, with the dual goal of shining a light on past wrongs and – more importantly – setting a clear course for the future that will assure the residents of the city of Miami that this type of behavior will not be repeated in our city. We commend Chief Orosa for recognizing some of the problems the Civil Rights Division found and for pursuing initiatives to address them. We are confident that the findings and recommendations will be heeded, and will result in institutional long-term reform that will make our city and police force better than ever.”
The department’s investigation involved an in-depth review of thousands of documents, including written policies and procedures, training materials, and internal reports, photographs, video and audio recordings and investigative files. The review benefited from productive dialogue with MPD supervisors and officers, city of Miami officials, the Office of the State Attorney, the Civilian Investigative Panel, and members of the Miami community. The Justice Department provided feedback to MPD during the investigation and commends Chief Manuel Orosa for taking steps to address some of the deficiencies identified since the investigation began.
The investigation was conducted by the Special Litigation Section of the Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office for the Southern District of Florida, with the assistance of an experienced law enforcement expert, pursuant to the pattern or practice provision of the Violent Crime Control and Law Enforcement Act of 1994. The findings letter will be available on the department’s website at http://www.justice.gov/crt/about/spl/. The department welcomes comments or concerns from the community via email at [email protected].
Attachment:
Miami PD Findings Letter (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.
Four Colombian Nationals Charged in International Drug Money Laundering ConspiracyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Mark R. Trouville, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division, announced the filing of one count indictment charging four defendants for their participation in an international money laundering conspiracy in which they laundered millions of dollars for transnational drug trafficking organizations.
Charged in the indictment were Dilleman Hernando Solorzano-Lozano, 46, Isaac Perez Guberek Ravinovicz, 77, Henry Guberek Grimberg, 55, and Johanna Patricia Ceballos-Bueno, 27, all Colombian nationals. More specifically, the defendants are charged with conspiracy to launder the illegal proceeds from the manufacture, importation, sale, and distribution of a controlled substance. If convicted, the defendants face a possible maximum statutory sentence of up to 20 years in prison.
U.S. Attorney Wifredo A. Ferrer stated, “Money launderers provide a critical service to narco-traffickers, helping them to wash, move, and hide their drug money. Today’s indictment, however, sends a message to those who hide behind seemingly legitimate businesses to launder drug money. The reach of American justice is as long as it is strong. With the help of our international law enforcement partners, we will find you and you will be brought to justice.”
DEA Special Agent in Charge Mark R. Trouville stated, “Drug traffickers' main motivation to enter the illegal drug trade is making money, and they will go to any length to hide and protect their drug profits. These bad actors often depend on international businesses to facilitate the illegal movement of their drug profits. But be on notice: whether you are a successful businessman or a secretary, if you assist drug traffickers to launder their funds, you will face the same justice.”
In a separate action also announced today, the U.S. Department of the Treasury announced the designation of Isaac Perez Guberek Ravinovicz, his son, Henry Guberek Grimberg, and Johanna Patricia Ceballos-Bueno, as well as 29 other individuals and entities, including companies located in Colombia, Panama, and Israel, as Specially Designated Narcotics Traffickers (SDNTs). This action, taken pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin Act), generally prohibits U.S. persons from conducting financial or commercial transactions with these entities and individuals, and freezes any assets they may have under U.S. jurisdiction. Since June, 2001, the Treasury Department has designated more than 1,200 individuals and entities linked to 103 drug kingpins.
Mr. Ferrer commended the investigative efforts of the DEA and the U.S. Treasury Department. This case is being prosecuted by Assistant U.S. Attorney Michael B. Nadler.
An indictment is only an accusation and the defendants are presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Supervisor of $63 Million Health Care Fraud Scheme Sentenced in Florida to 10 Years in PrisonRead the Press Release
A former supervisor at defunct health provider Health Care Solutions Network Inc. (HCSN) was sentenced today in Miami to serve 10 years in prison for her central role in a fraud scheme that resulted in more than $63 million in fraudulent claims to Medicare and Florida Medicaid.
The sentence was announced by 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; Michael B. Steinbach, Special Agent in Charge 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.
Wondera Eason, 51, of Miami, was sentenced by U.S. District Judge Cecilia M. Altonaga in the Southern District of Florida. In addition to her prison term, Eason was sentenced to serve three years of supervised release and ordered to pay $14,985,876 in restitution.
On April 25, 2013, a federal jury found Eason guilty of conspiracy to commit health care fraud.
Eason was employed as the director of medical records at HCSN’s partial hospitalization program (PHP). A PHP is a form of intensive treatment for severe mental illness. In Florida, HCSN operated community mental health centers at two locations. After stealing millions from Medicare and Medicaid in Florida, HCSN’s owner, Armando Gonzalez, expanded the scheme to North Carolina, opening a third HCSN location in Hendersonville, N.C.
Evidence at trial showed that at all three locations, Eason, a certified medical records technician, oversaw the alteration, fabrication and forgery of thousands of documents that purported to support the fraudulent claims HCSN submitted to Medicare and Medicaid. Many of these medical records were created weeks or months after the patients were admitted to HCSN facilities in Florida for purported PHP treatment and were utilized to support false and fraudulent billing to government-sponsored health care benefit programs, including Medicare and Medicaid. Eason directed therapists to fabricate documents, and she also forged the signatures of therapists and others on documents that she was in charge of maintaining. Eason interacted with Medicare and Medicaid auditors, providing them with false and fraudulent documents, while certifying the documents were accurate.
The “therapy” at HCSN oftentimes consisted of nothing more than patients watching Disney movies, playing bingo and having barbeques. Eason directed therapists to remove any references to these recreational activities in the medical records.
According to evidence at trial, Eason was aware that HCSN in Florida 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. Eason also knew that many of the ALF referral patients were ineligible for PHP services because many patients suffered from mental retardation, dementia and Alzheimer's disease.
From 2004 through 2011, HCSN billed Medicare and the Medicaid program more than $63 million for purported mental health services.
Fifteen defendants have been charged and have pleaded guilty or been convicted by a jury for their roles in the HCSN health care fraud scheme.
This case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by 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, former Special Trial Attorney William Parente and Deputy Chief Benjamin D. Singer 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 & 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.
Seven Charged with Oxycodone Conspiracy in Broward County Pill Mill OperationRead the Press Release
The defendants include a Doctor, a Physician’s Assistant, and Clinic Owners/Managers
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 Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), announced the unsealing of a federal indictment charging seven defendants for their participation in the illegal dispensing and distribution of oxycodone, among other offenses. The 20-count indictment, filed July 2, 2013, charges defendants Jason Boyd, 43, of Davie, Jason Rodriguez, 36, of Fort Lauderdale, Vijay Chowdary, M.D., 69 of Boca Raton, Harish Chowdary, P.A., 64, of Fort Lauderdale, Amanda Bozer, 34, of Fort Lauderdale, Nestor Merces, Jr., 35, of New York, and Hector Bruno, 35, of Pembroke Pines with various crimes, including conspiracy to distribute, dispense and possess controlled substances, maintaining drug-involved premises, and money laundering. Six of the defendants made their initial appearances in federal court in Fort Lauderdale and Connecticut earlier today. Defendant Hector Bruno remains a fugitive.
Researchers from the Centers for Disease Control and Prevention report that Schedule II prescription painkillers, like oxycodone, cause more drug overdose deaths than cocaine and heroin combined. Oxycodone and other Schedule II drugs have a high potential for abuse and can be crushed and snorted, or dissolved and injected, to get an immediate high. This abuse can lead to addiction, overdose, and sometimes death.
The indictment alleges that from October 2010 to the present, the defendants operated Intracoastal Medical Groups, Inc. (IMG), in Broward County, as a pill mill clinic that offered patients prescriptions for oxycodone and other controlled substances without any legitimate medical purpose and outside the usual course of professional medical practice. According to the charges, individuals, including drug addicts and traffickers, seeking to buy large quantities of oxycodone and other controlled substances would travel from hundreds of miles from other states to obtain prescriptions at the defendants’ clinic. Defendant Jason Boyd operated and financed IMG until the Florida Legislature enacted legislation requiring pain management clinics to be owned by licensed physicians. At that time, ownership of IMG was transferred on paper to a physician and in March 2012, to Dr. Chowdary.
To execute the scheme, IMG employed doctors, like defendant Vijay Chowdary, who agreed to prescribe oxycodone and other controlled substances to patients without regard to medical necessity, with only a cursory physical examination of the patient, and in violation of numerous federal and state laws and DEA regulations regarding the storage and distribution of controlled substances. To accomplish the scheme, the defendants created and used a number of false documents. For example, the defendants used phony Florida identification cards to make it appear that all of IMG’s patients were residing in Florida. The defendants also made and used false MRI reports, and discarded urinalysis results that showed that patients were using cocaine and other drugs, advising the patients to return when their urine was clean. The clinic allowed and encouraged the use of “sponsors,” a practice in pill mills where an individual “sponsors” a group of patients in the clinic and pays all of the expenses associated with clinic visit in return for all or a portion of the pills prescribed.
U.S. Attorney Wifredo A. Ferrer stated, “As this case demonstrates, federal and local law enforcement continue to stand united to tackle the pill mill epidemic that has plagued Broward County and our state. Together, we are making a positive difference, as we continue to bring down these unscrupulous doctors and drug dealers who seek to hide behind a medical license. Pill mill operators be warned: we are not done yet.”
Mark R. Trouville, DEA Special Agent in Charge stated, “This is a text book example of an illegal prescription drug trafficking organization. These rogue doctors and greedy drug dealers tried to make a pill mill look like a legitimate business. The days of profiting from these crimes have come to an end for these seven defendants. The diversion of pharmaceutical drugs remains a priority for the DEA and our law enforcement partners in South Florida. We will stay committed to ridding our communities of those who look to become rich from the diversion of powerful prescription medications.”
“I’m extremely proud of the hard work and dedication our investigators have put into building a solid case against these suspects,” Sheriff Scott Israel said. “This group is made up of drug traffickers passing themselves off as businessmen and medical patients and unscrupulous clinicians pretending to be medical professionals. They did all of this to further their criminal enterprise without concern for the people whose lives they were putting at risk.”
If convicted, the defendants face up to 20 years in prison for conspiracy to distribute, dispense and possess oxycodone; up to 20 years for distributing, dispensing, and aiding and abetting the distribution and dispensing, of oxycodone outside the usual course of professional practice and not for a legitimate medical purpose; and up to 20 years for maintaining a location for the distribution of narcotics. Lastly, defendant Boyd faces up to 20 years on the money laundering charges.
Today’s case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
Mr. Ferrer commended the DEA and BSO for their hard work on this case. This case is being prosecuted by Assistant U.S. Attorney Julia Vaglienti.
An indictment is only an accusation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
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.
Palm Beach County Man Sentenced in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Paula A. Reid, Special Agent in Charge, U.S. Secret Service (USSS), and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announced that defendant Fednol Pierre, 34, of West Palm Beach, was sentenced today to 34 months in prison, to be followed by 3 years of supervised release. Pierre was also ordered to pay $83,450.74 in restitution to the victims of his offenses. Pierre previously pled guilty to one count of theft of government money and one count of aggravated identity theft.
According to documents filed in court, on September 29, 2009, Pierre added an individual as a joint account holder to his bank account, without this individual’s knowledge or consent, using this individual’s name, Social Security number, date of birth, and driver’s license number. The following day, Pierre deposited a $22,081 tax refund check from the U.S. Treasury in the name of this individual. In the weeks following this deposit, Pierre withdrew funds from the joint account. On December 3, 2009, Pierre closed the joint account and transferred the remaining funds into his account.
Mr. Ferrer thanked USSS and IRS-CI for their work on the case. The case is being prosecuted by Assistant U.S. Attorney Benjamin C. Coats.
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.
Key West Man Sentenced to Child Pornography ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Rick Ramsey, Monroe County Sheriff, announce that on July 1, 2013, U.S. District Judge Jose E. Martinez sentenced William J. Britt, 55, of Key West, Florida, to 18 years in prison, to be followed by a lifetime of supervised release and registration as a sex offender.
On November 8, 2012, law enforcement conducted a traffic stop on Britt’s Ford Econoline van and arrested Britt on a state warrant for possession of child pornography. During a consensual search of the van, law enforcement found a Harrington and Richardson 20 gauge shotgun that was sawed off at both the barrel and the stock. In addition, law enforcement seized numerous computers, hard drives and thumb drives during a consensual search of Britt’s recreational vehicle, located at Naval Air Station, Sigsbee Trailer Park, Key West, Florida. A forensic analysis revealed that the computers and computer-related equipment contained thousands of images and movies containing child pornography, which include minor children engaging in sexually explicit conduct.
On February 14, 2013, Britt was charged in a superseding indictment with possessing child pornography, receiving child pornography, and possessing a firearm not registered to him in the National Firearms Registration and Transfer Record. On April 17, 2013, Britt pled guilty to receiving child pornography and possessing the unregistered firearm.
Mr. Ferrer commends the investigative efforts of the Monroe County Sheriff’s Office, the Key West State Attorney’s Office, HSI, ATF, and FBI for their assistance and their work on this case. The case is being prosecuted by Assistant U.S. Attorneys Elina A. Rubin-Smith and Robert T. Watson.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Defendant Pleads Guilty to Health Care Fraud in Connection with HIV Infusion ClinicRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office and Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), announced that defendant Jorge Alipio Perez Villa pleaded guilty yesterday to one count of healthcare fraud for his participation in a healthcare fraud scheme involving a purported HIV infusion clinic. Sentencing is scheduled for September 9, 2013 before U.S. District Judge Joan A. Lenard.
According to documents filed with the court and statements made during the plea hearing, Perez Villa was the purported owner and operator of an HIV infusion clinic, ABC Physician’s Group, Inc. ABC Physician’s Group, however, did not treat any patients. Rather, the defendant, through his company, fraudulently represented to Medicare that it was administering HIV infusion treatments to patients suffering from HIV. In truth, however, the defendant simply used the stolen Medicare numbers from unwitting Medicare beneficiaries to bill for treatments that were never provided. In this way, between March and September 2006, ABC Physician’s Group submitted approximately $5.3 million in fraudulent claims to Medicare. As a result of those claims, Medicare paid ABC Physician’s Group approximately $616,710. The defendant distributed the fraud proceeds to himself and others.
Mr. Ferrer thanked the FBI and HHS-OIG for their work on the case. This case is being prosecuted by Assistant U.S. Attorney Alicia Shick.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Three Florida Residents Arrested on Charges of FraudRead the Press Release
Indictment Alleges that Defendants Operated Fraudulent Companies for Years Despite December 2000 Court Order
Three individuals charged in connection with operating a series of fraudulent business opportunity companies were arrested Friday following their indictment by a federal grand jury in Miami on June 25, 2013, the Justice Department and the U.S. Postal Inspection Service announced today. Mitchell Berman (aka Brian Griffin), of Boca Raton, Fla., Robert Gallo (aka Bobby Pace, Vincent Pastone, Joe Barone, Bobby Marino, Anthony Russo), of Coconut Creek, Fla., and Steven Axelrod (aka Michael Hutton), of Wellington, Fla., were arrested and charged with conspiracy to commit mail fraud and mail fraud. Mitchell Berman was also charged with criminal contempt of court.
The indictment alleges that the defendants operated a series of fraudulent companies that sold coffee display racks business opportunities. Buyers were told they would receive display racks and packets of coffee, as well as assistance in establishing and maintaining a business selling the coffee.
Beginning in August 2000 and continuing through October 2011, the indictment charges that Berman, Gallo, and Axelrod operated a series of five coffee display rack business opportunity companies: Selective Services Business, Best Gourmet Coffee, Cambridge Coffee, Royal Gourmet Coffee and South Beach Coffee. The business opportunities the defendants sold cost a minimum of approximately $10,000. Each company operated for six months to a year, and after one company closed, the next opened.
The indictment alleges that Berman and Gallo ran the companies, while working as salesman together with Axelrod. All three defendants allegedly made numerous false statements to potential purchasers of the business opportunities to induce them to buy. Among the misrepresentations alleged in the indictment are that purchasers would likely earn substantial profits, that prior purchasers of the business opportunities were earning substantial profits, that purchasers would be given lucrative “commercial accounts,” and that the company would provide assistance in establishing and maintaining the business. According to the indictment, purchasers made little to no money on their investments, were unable to find profitable locations or accounts, and were not provided the support promised by defendants. In making misrepresentations to potential purchasers, Berman was violating a December 2000 federal court order barring him from misrepresenting profits, locations, and other aspects of business opportunities.
According to the indictment, once purchasers began filing complaints with the Better Business Bureau or state authorities, the defendants shut down each of their companies in turn, and opened the next one. In order to evade detection, all the defendants allegedly used aliases and gave out false addresses for the company. The indictment alleges that Berman and Gallo also avoided listing their own names on corporate and promotional documents, and instead paid people who did not work at the companies to be titular presidents.
“Business opportunity schemers use deceit to target and victimize hard-working Americans who are seeking opportunities to better provide for themselves and their families,” said Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida. “We will continue to vigorously pursue these individuals who seek to steal the American Dream from their victims.”
“The Department of Justice is committed to protecting consumers from business opportunity fraud schemes,” said Stuart F. Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division. “As this indictment demonstrates, we will continue to prosecute individuals who seek to swindle innocent Americans out of their hard-earned money.”
All three defendants were charged with conspiracy to commit mail fraud. In addition, Berman was charged with 8 counts of mail fraud and 9 counts of criminal contempt; Gallo was charged with 8 counts of mail fraud; and Axelrod was charged with 4 counts of mail fraud. If convicted, Berman, Gallo, and Axelrod face a maximum statutory term of 20 years in prison, a possible fine, and mandatory restitution on each conspiracy and mail fraud count. Berman faces a maximum statutory term of up to life in prison, a possible fine, and mandatory restitution on each of the criminal contempt counts.
“Cases like this one illustrate the Postal Inspection Service’s dedication to investigating business opportunity fraud that insidiously targets innocent victims,” said Ronald Verocchio, U.S. Postal Inspector in Charge in Miami.
The charges in the indictment form part of the government’s continued nationwide crackdown on business opportunity fraud.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants. For more information on the task force, please visit www.stopfraud.gov.
Acting Assistant Attorney Stuart Delery commended the investigative efforts of the Postal Inspection Service. The case is being prosecuted by Assistant Director Richard Goldberg and Trial Attorney Cindy Cho of the Consumer Protection Branch of the Civil Division of the Department of Justice.
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.
Executives from Miami-Area Mental Health Care Hospital Convicted for Participating in $70 Million Medicare Fraud SchemeRead the Press Release
A federal jury Friday convicted four individuals for their participation in a Medicare fraud scheme involving nearly $70 million in fraudulent billings by Hollywood Pavilion (HP), a mental health care hospital.
Friday’s verdict was announced by 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.
Karen Kallen-Zury, 59, of Lighthouse Point, Fla., and Daisy Miller, 44, of Hollywood, Fla., were each 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. Michele Petrie, 64, of Ft. Lauderdale, Fla., was found guilty of one count of conspiracy to commit wire fraud and health care fraud and three substantive counts of wire fraud. Kallen-Zury, Miller, Petrie and a fourth defendant, Christian Coloma, 49, of Miami Beach, Fla., were also convicted of one count of conspiracy to pay bribes in connection with Medicare, with Kallen-Zury and Coloma also each being convicted on five substantive counts of paying bribes.
“The defendants participated in a massive scheme that attempted to defraud the United States of approximately $70 million by taking advantage of Medicare beneficiaries,” said Acting Assistant Attorney General Raman. “By paying bribes to a network of patient recruiters and falsifying documents, the defendants created the illusion of providing intensive psychiatric care to qualifying patients, when in reality they provided no care of substance. The verdict illustrates the success of the inter-agency Medicare Fraud Strike Force, which is dedicated to stamping out Medicare fraud.”
The defendants were charged in an indictment returned on Oct. 2, 2012. 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 in order 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.
Karen 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.
Evidence at trial established that 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.
Trial evidence also demonstrated that 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.
The criminal case is being prosecuted by Trial Attorneys Robert A. Zink, Andrew H. Warren and Anne McNamara of the Criminal Division’s Fraud Section. The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida.
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.
Monroe County Residents Charged for Illegal Harvest and Sale 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 for the National Oceanic and Atmospheric Administration (NOAA), Office of Law Enforcement, Southeast Division, and David G. Pharo, Resident Agent in Charge, U.S. Fish & Wildlife Service (FWS), Office of Law Enforcement, announced the filing of criminal charges against Key Marine, Inc., a Florida corporation with its principal place of business on Grassy Key, Eric P. Pedersen, 51, and Serdar Ercan, 42, both residents of Monroe County, Florida. The single-count Information alleges that the three defendants engaged in a conspiracy to take, harvest, capture, transport, and sell various species of marine wildlife harvested from the Florida Keys National Marine Sanctuary (FKNMS) and State waters, for commercial sale and distribution in interstate and foreign commerce to their financial gain, in violation of the laws and regulations of the State of Florida, and the federal Lacey Act, Title 16, United States Code, Sections 3372(a)(1),(a)(2)(A), and (4), and 3373(d)(1), all in violation of Title 18, United States Code, Section 371. Initial court appearances on the charges have not yet been set.
The case has been assigned to U.S. District Judge Jose E. Martinez. If convicted on the charge, Key Marine, Inc. faces a possible fine of $500,000 or twice the gross pecuniary gain or loss arising from the relevant conduct. Defendants Pedersen and Ercan each face a statutory maximum sentence of up to five years in prison.
According to the Information, from October 2010 through February 2011, the defendants engaged in the day to day business of collecting, exporting, and selling in interstate and foreign commerce various species of marine life, including 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), with market values in excess of $350.00, knowing that the marine life was taken and intended to be sold in violation of the laws and regulations of the State of Florida. The Information further charges that the defendants exceeded the legal limit on the harvest of Ricordia florida as part of their illicit harvesting activities.
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.
Florida Administrative Code, Section 68B-42.008, prohibits the harvest of live rock. Florida Statue 370.07 requires that a person who sells salt water marine related wildlife such as Ricordia florida, to hold a State wholesale and retail license. The federal Lacey Act, among other things, makes it unlawful for any person to import, export, transport, sell, receive, acquire, or purchase in interstate or foreign commerce, any fish or wildlife, taken, possessed, transported, or sold in violation of any law or regulation of any State. 16 U.S.C. §3372(a)(2)(A). According to the allegations in this case, the defendants were not authorized by any competent authority to harvest or attempt to harvest any Live Rock from the FKNMS or State waters during the time period relevant to this Information, nor did they hold the marine-related wholesale and retail permits required by Florida Statute 370.07.
Mr. Ferrer commended the investigative efforts of the Special Agents of NOAA-OLE and FWS-OLE in this case. The case is being prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald.
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.
Michigan Man Sentenced in Fraudulent Test Kit SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Allison C. Lerner, Inspector General, National Science Foundation (NSF), and Ronald Verrochio, Postal Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, announced that Alexander Lorin Davis, 40, of Pinckney, Michigan, was sentenced yesterday in federal District Court in West Palm Beach on charges related to falsely making and forging the seal of the National Science Foundation (NSF), an agency of the United States, and mail fraud in connection with the marketing by internet to the public of environmental test kits that were not in fact analyzed by qualified laboratories as asserted in advertisements and literature accompanying the kits, in violation of Title 18, United States Code, Sections 506(a)(1), 1341, 4, and (2).
U.S. District Judge Kenneth Ryskamp, who had previously accepted guilty pleas in this matter from Alexander Davis and his spouse, Dawn Marie Davis, 46, also of Pinckney, sentenced Alexander Davis to 15 months in prison, to be followed by three years of supervised release. Judge Ryskamp also ordered Alexander Davis to pay $50,264.53 in restitution to 154 victims of the fraudulent scheme. Dawn Davis, who previously pled guilty to a charge of misprision of a felony for failing to alert appropriate authorities to the criminal conduct, was sentenced by Judge Ryskamp to two years of probation and was ordered to pay restitution in the amount of $9,596.09 after a hearing held on April 25, 2013.
According to court records, including Joint Factual Statements submitted to the Court and statements made during the sentencing hearing, from May 2011 through November 2012, Alexander Davis owned and operated Davis Test Kits (DTK). DTK was in the business of marketing test kits for use in homes and businesses to detect the presence of various environmental pollutants and hazards, such as molds, asbestos, radon, and lead. To promote business, the DTK website displayed the forged and counterfeited seal of the NSF. As part of the scheme, Alexander Davis also made materially false representations and promises on the website, claiming that, upon return of the test kit by the customer, DTK would cause the kit to be submitted for testing by individuals from an established, accredited laboratory.
In fact, however, DTK did not operate or employ testing laboratories certified as represented on the website and many test kits returned to DTK were never submitted for testing by an accredited laboratory. To perpetuate the fraud, the defendants would mail customers whose test kits had not been tested results from other laboratory tests. Some, customers were induced to pay additional amounts, in some instances exceeding thousands of dollars, based on false assertions by the defendants that additional testing was necessary.
During the same time, Dawn Davis was aware that her husband was using the seal of the NSF on the internet website of DTK and knew the company was marketing the test kits. She was also aware that DTK did not submit all the customer test kits received through the mail to accredited laboratories for analysis as DTK represented on its website and in written materials provided to the customers. Despite her knowledge, Dawn Davis concealed the fact that DTK was selling its testing services without any affiliation or connection to NSF, and was failing to provide the purchased testing services to some customers.
The National Science Foundation is an independent federal agency established by Congress in 1950 to promote the progress of science and to advance the national health, prosperity, and welfare. The agency meets this mission by funding approximately 20% of all federally supported basic research conducted by America’s colleges and universities with an annual budget of approximately $6.9 billion. The National Science Foundation neither tests consumer products, nor audits and inspects private laboratories.
Mr. Ferrer commended the investigative efforts of the National Science Foundation Office of Inspector General and the U. S. Postal Inspection Service. The criminal case is being prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Four Defendants Plead Guilty in Staged Automobile Accident SchemeRead the Press Release
92 defendants have been charged to date in Operation Sledgehammer I-VI
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, 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), Jeff Atwater, Florida Chief Financial Officer, and Dave Aronberg, State Attorney, Office of the State Attorney for Palm Beach County, announced that defendants Luis Ivan Hernandez, 40, and Maria Testa Baceiro, a/k/a “Maria Testa,” 29, both of Miami, and Olinda Rodriguez, 39, of West Palm Beach, pled guilty today for their participation in a staged automobile accident scheme. Defendant Iris Roca, 41, of Davie, pled guilty on June 26, 2013 for her role in the scheme. Sentencing is set for September 30, 2013 before Judge Marra starting at 9:00 a.m.
Clinic owners Hernandez and Baceiro each pled guilty to one count of conspiracy to commit mail fraud, in violation of Title 18, United States Code, Section 1349; 27 counts of mail fraud, in violation of Title 18, United States Code, Section 1341; and one count of conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h). Hernandez also pled guilty to 21 counts of money laundering, in violation of Title 18, United States Code, Section 1956(a)(1). Baceiro pled guilty to 20 counts of money laundering, in violation of Title 18, United States Code, Section 1956(a)(1).
Licensed massage therapists Rodriguez and Roca each pled guilty to one count of conspiracy to commit mail fraud, in violation of Title 18, United States Code, Section 1349. These defendants were charged in separate Informations for their participation in the staged accident fraud schemes.
The defendants face the following possible maximum statutory sentences: 20 years in prison for each count of conspiracy to commit mail fraud, substantive mail fraud, conspiracy to commit money laundering, and substantive money laundering. Restitution to the victims of the offenses is mandatory.
According to court documents, between approximately October 2006 and December 2012, the defendants staged automobile accidents and thereafter caused the submission of false insurance claims through chiropractic clinics they controlled. To execute the scheme, the true owners of the chiropractic clinics recruited individuals, who had the medical or chiropractic licenses required by the state to open a clinic, to act as “nominee owners” of the clinics. The defendants also recruited individuals, whom they referred to as “Perro” and “Perra,” to participate in the accidents, and others to help the clinics launder the insurance proceeds. The defendants also hired complicit chiropractors and therapists who prescribed and billed for unnecessary treatments and/or for services that had not been rendered. Thereafter, complicit clinic employees prepared and submitted claims to the automobile insurance companies for payment for these unnecessary or non-rendered services. Twenty-one clinics participated in this scheme.
Starting with Operation Sledgehammer I in June 2011 and including the defendants charged in Operation Sledgehammer VI, 92 defendants have been charged for their participation in this automobile insurance fraud scheme. Of those 92 defendants, 56 have been charged federally by the U.S. Attorney’s Office, resulting in court-ordered restitution of more than $5 million to the defrauded insurance companies. Thirty-six defendants have been charged by the Palm Beach County State Attorney’s Office.
Mr. Ferrer commended the efforts of the FBI, IRS-CI, the Florida Department of Insurance Fraud, the Palm Beach County State Attorney’s Office, and the Greater Palm Beach County Health Care Fraud Task Force for their outstanding work in this case. Mr. Ferrer also recognized the National Insurance Crime Bureau (NICB) for its collaboration and assistance in this investigation. The federal cases are being prosecuted by Assistant U.S. Attorney A. Marie Villafaña and the state cases are being prosecuted by the Palm Beach County State Attorney’s Office.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Broward Residents Arrested on Charges of FraudRead the Press Release
Criminal Complaint Charges Individuals with Scheme to Defraud Spanish-Speaking Consumers by Threatening Them with Deportation
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Stuart F. Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division and Ronald Verrochio, Postal Inspector in Charge, U.S. Postal Inspection Service, Miami Division, announced yesterday that two individuals were arrested on a federal warrant alleging that they operated a series of fraudulent businesses targeting Spanish-speaking consumers. The criminal complaint, charged Daniel Carrasco, 54, and Federico Martin Gioja, 45, both of Miramar, alleging that the pair incorporated, owned, and ran Florida companies that used a phone room in Argentina to extract money from consumers using lies and extortion.
In addition to the criminal complaint, the Justice Department filed a civil case against Carrasco, Gioja, Romina Tasso and their businesses, seeking an injunction to prevent further fraud and an asset freeze to prevent dissipation of funds obtained from consumers.
Carrasco and Gioja made their first appearances in court yesterday.
According to the civil complaint and the affidavit filed in support of the criminal complaint, the case was the result of a referral from Spanish-language television station, Univision. Companies belonging to Carrasco and Gioja are alleged to have falsely claimed an affiliation with Univision and purported to sell products such as vitamins, lotions, medical insurance, and English-language training products. However, according to the documents, the companies frequently did not deliver products ordered by consumers. The companies allegedly did not have many of the products they promised to send to consumers, and so consumers received other products instead.
According to the civil and criminal complaints, after consumers refused delivery of the companies’ shipments, employees of the Argentinian phone room used by Carrasco and Gioja called and falsely threatened the consumers with arrest, deportation, or fines on their gas and electric bills.
Mr. Ferrer stated, “These defendants specifically targeted Spanish-speaking victims, pretending to be affiliated with the Univision television network, to sell their products from their phone room in Argentina. In fact, however, the defendants had absolutely no connection to Univision, and their companies did not deliver the products ordered by consumers. As this case illustrates, the U.S. Attorney’s Office is committed to investigating and prosecuting fraudsters, both domestic and international, whose schemes defraud American consumers.”
“This case demonstrates our commitment to use every tool at our disposal -- including asset freezes, injunctive relief, and criminal prosecution -- against companies that seek to lie, extort, threaten, and defraud Americans,” said Stuart F. Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division. “Protecting consumers from fraud continues to be a top priority for the Department of Justice.”
“Postal Inspectors will continue to investigate cases involving fraud against consumers and will vigorously pursue those individuals who use the mail in furtherance of their criminal schemes,” said Ronald Verrochio, U.S. Postal Inspector in Charge, Miami Division.
According to the criminal and civil complaints, Carrasco and Gioja routinely changed the names of the companies under which they did business to evade complaints, regulators, and law enforcement. The businesses allegedly were contacted by a variety of state agencies regarding their illicit practices. In emails cited in the affidavit in support of arrest, those working with Carrasco and Gioja referred to companies tainted by complaints as “burnt.” Rather than changing their practices, the defendants allegedly incorporated new companies and started the same illegal practices again.
Mr. Ferrer commended the investigative efforts of the Postal Inspection Service. The civil case is being handled by Trial Attorney Jessica Gunder of the U.S. Department of Justice’s Consumer Protection Branch. The criminal case is being prosecuted by Assistant Director Richard Goldberg with the Consumer Protection Branch.
A criminal complaint is only an accusation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt. A civil complaint contains allegations only and the defendants will have the opportunity to challenge those allegations in court.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Three Miami Men 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 Division (IRS-CID), Ronald Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), and Sergio Velazquez, Chief, Hialeah Police Department, announced that defendants Lineten Belizaire, 22, Earnest Baldwin, 36, and Earl Baldwin, 42 all of Miami, were sentenced today for their participation in a $1.7 million identity theft tax refund fraud scheme. Specifically, U.S. District Judge Cecilia M. Altonaga sentenced Belizaire to 129 months in prison, to be followed by 3 years of supervised release. Defendant Earnest Baldwin was sentenced to 172 months in prison, to be followed by 4 years of supervised release and defendant Earl Baldwin was sentenced to 84 months in prison, followed by 4 years of supervised release. Judge Altonaga ordered that a restitution hearing be held within 90 days.
Lineten Belizaire pled guilty to access device fraud and aggravated identity theft on March 18, 2013. Earnest and Earl Baldwin were convicted at trial on April 10, 2013, on charges of conspiracy to defraud the government, conspiracy to commit access device fraud, access device fraud, and multiple counts of aggravated identity theft. On April 17, 2013 co-defendant Marckell Steward, 21, of Miami, was sentenced to 72 months in prison, to be followed by 3 years of supervised release for his participation in the identity theft tax refund fraud scheme. Steward had previously pled guilty to conspiracy to commit access device fraud and aggravated identity theft.
According to court documents and testimony, Lineten Belizaire, along with co-conspirators Earnest and Earl Baldwin, and Marckell Steward, were involved in an identity theft tax fraud scheme that operated from July 2011 through June 2012. During the course of their fraud scheme, approximately $1.7 million in fraudulent refund claims were submitted to the IRS for payment.
According to documents filed in court, Belizaire conspired with Steward and Earnest and Earl Baldwin on a plan to use stolen personal identification information of others to file fraudulent and unauthorized tax returns claiming refunds on debit cards. Some of the refund claims were filed from Earl Baldwin's residence. According to the factual proffer, Belizaire exchanged text messages with Steward in which the defendants sent and received personal identification information of victims and also sent and received debit card account numbers that were used for receiving victims’ tax refunds.
As stated in trial testimony and evidence, Earnest Baldwin possessed more than 1,000 names, dates of birth, and Social Security numbers and approximately 40 pre-paid debit cards in other people’s names. Among the papers seized were high school report cards with identity information and data from an organization for disabled persons containing identity information. The evidence at trial also showed that Earnest and Earl Baldwin withdrew money from debit cards loaded with fraudulently obtained refunds. According to plea documents, more than 80 fraudulent tax returns using stolen identifications were electronically filed from the IP address belonging to the Belizaire. Defendant Belizaire was also observed on ATM video withdrawing money on multiple occasions from debit cards loaded with fraudulent tax refunds.
Mr. Ferrer commended IRS-CID, USPIS, and the Hialeah Police Department for their work on the case. The case is being prosecuted by Assistant U.S. Attorneys Michael N. Berger and Maurice Johnson.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami-Dade Resident Sentenced in Identity Theft Tax 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), Steven Steinberg, Chief, City of Aventura Police Department, and Ray Black, Chief, City of Miramar Police Department, announce today’s sentencing of defendant Braxton Geovanni Bell, 21, of Miami Gardens, Florida. Bell was sentenced to 34 months in prison, to be followed by 3 years of supervised release.
On February 7, 2013, Bell was convicted at trial of one count of access device fraud, in violation of Title 18, United States Code, Section 1029(a)(2), and two counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). On April 16, 2013, Bell pled guilty in a separate criminal case to one count of access device fraud.
According to testimony at trial and court documents, Bell used the names and social security account numbers of unwitting victims to submit fraudulent tax returns to the Internal Revenue Service. Based on these fraudulent returns, Bell obtained tax refunds on prepaid debt cards, and then used the money to purchase luxury items, including a Mercedes Benz, a custom made gold chain, a Rolex “Presidential” Gold watch, a bracelet, and expensive furniture.
Mr. Ferrer commended the investigative efforts of IRS-CI, the City of Aventura Police Department, and the City of Miramar Police Department. The case is being prosecuted by Assistant U.S. Attorneys Gera R. Peoples, Michael Nadler, 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.
St. Lucie County Man Indicted for Internet Transportation and Receipt of Child PornographyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kenneth Mascara, Sheriff, St. Lucie County Sheriff’s Office (SLCSO), announce the indictment of defendant Joshua Adams Bagala, of Port Saint Lucie, on child pornography charges. Bagala was arraigned on June 20, 2013, before U.S. Magistrate Judge Frank J. Lynch, Jr., in Ft. Pierce and is detained pending trial.
The two-count indictment charges Bagala with transportation of child pornography via the internet, in violation of Title 18, United States Code, Section 2252(a)(1), and receipt of child pornography via the internet, in violation of Title 18, United States Code, Section 2252(a)(2). If convicted, Bagala faces a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years in prison on each count. Bagala will also be required to register as a sex offender in any jurisdiction in which he lives, works, or attends school.
On April 16, 2013, a Nebraska State Patrol sergeant was conducting an online undercover investigation in a chat room. The officer, who was posing as a 14 year old girl, was contacted by a user with the screen name of “death_by_eskimo.” The user asked the undercover whether the undercover liked underage sex films and suggested that they use an instant messaging service to communicate. Thereafter, the user of the “death_by_eskimo” screen name sent two child pornography videos to the undercover officer. Upon further investigation, the IP address for “death_by_eskimo” was traced to Bagala’s residence in Florida.
On April 26, 2013, members of the South Florida ICAC Task Force executed a state search warrant at Bagala’s residence in Port St. Lucie. A forensic examination of the Bagala’s computer revealed several thousand videos and photographs of child pornography.
Mr. Ferrer commended the investigative efforts of the St. Lucie County Sheriff’s Office and the South Florida Internet Crimes against Children (ICAC) Task Force for their work on this case. The case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.
An indictment is only an accusation and a defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami Resident Sentenced in Identity Theft Tax Fraud Scheme Involving Baptist Health System Patient InformationRead 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), announced today’s sentencing of defendant Cristobal Raul Puig, 25, of Miami. Puig was sentenced to 31 months in prison, to be followed by three years of supervised release.
Puig previously pled guilty to one count of possessing 15 or more social security numbers of other persons, with corresponding names and dates of birth, and one count of knowingly using, without lawful authority, the means of identification of another person.
According to court documents, an employee of Baptist Health System’s West Kendall location sold the names, dates of birth, social security numbers, and addresses of hospital patients to Puig. Defendant Puig then used the stolen patient identification information to file unauthorized income tax returns. At the time of his arrest, Puig was in possession of a list containing the names, dates of birth, social security numbers, and addresses of 20 recent hospital patients.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Maurice A. Johnson.
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 Department of Public Works Employee Charged with Accepting Bribes from ContractorRead 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 filing of a criminal complaint charging defendant George Brown, 50, of Hollywood, FL, with accepting bribes in connection with programs receiving federal funds, in violation of Title 18, United States Code, Sections 666. Brown was arrested yesterday and is scheduled to appear in federal court tomorrow in Fort Lauderdale at 11:00 a.m. before Magistrate Judge Lurana S. Snow.
According to the criminal complaint, Brown was the Roadway Lighting Coordinator for the Department of Public Works (DPW) in Miami-Dade County. In this capacity, Brown was responsible for, among other things, overseeing the installation and/or maintenance of more than 45,000 street lights in the county’s roadway system. In 2011, a lighting contractor allegedly offered to provide Brown with “rewards” in exchange for the DPW’s purchase of the contractor’s lighting products. Brown agreed and subsequently accepted more than $13,000 in bribes from the contractor in 2011 and 2012. As detailed in the complaint, the bribes included appliances, computer equipment, and other merchandise, all paid for by the contractor. Among the merchandise that Brown received from the contractor was a 2.5 ton air conditioning unit, a Samsung stainless steel refrigerator, and a KitchenAid built-in single electric convection oven. The merchandise was either shipped directly to Brown’s home address or picked up by Brown at the contractor’s business in Miami, Florida.
During the investigation, the contractor began to cooperate with law enforcement and recorded the conversations with Brown. In one recorded conversation, Brown assured the contractor that no one else knew about their arrangement. In another recorded conversation, the two discussed delivery to Brown of certain merchandise costing approximately $2,600, in exchange for Brown’s assistance in getting the DPW to purchase more than $40,000 worth of lighting products from the contractor for a project on 27th Avenue in Miami, Florida.
If convicted of the charges in the criminal complaint, Brown faces a possible maximum statutory sentence of up to 10 years in prison.
Mr. Ferrer commended the investigative efforts of the FBI. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
A complaint is only an accusation and a defendant is presumed innocent unless and until proven guilty.
Attachment:
Complaint (PDF)
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Four Miami-Dade Residents Charged in $1.5 Million Bank Fraud and Money Laundering Scheme in Connection with Fraudulent Boat Loan ApplicationsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Jeff Atwater, Florida Chief Financial Officer, and J.D. Patterson, Director, Miami-Dade Police Department, announce the unsealing of a 40-count indictment charging four defendants with various counts of bank fraud, money laundering, and wire fraud. The indictment also seeks the forfeiture of criminal proceeds derived from the fraud, including real property and $1,585,657.10. All four defendants were arrested yesterday and made their initial appearances today in front of Magistrate Judge Edwin G. Torres.
The indictment charges defendants Eduardo Hernandez, Jr., 32, of Miami, Alexander Orriols, 43, of Miami Beach, Jose Arias, 50, of Miami, and Milena Hernandez, 30, of Miami, with one count of conspiracy to commit bank fraud (Count 1), and one count of conspiracy to commit money laundering (Count 21). Additionally, the indictment charges various individual defendants with 19 counts of substantive bank fraud (Counts 2-20), 18 counts of money laundering (Counts 22-39), and one count of wire fraud (Count 40).
According to the indictment, the defendants engaged in a bank fraud scheme using straw buyers to obtain loans using false supporting information and documentation. To execute the scheme, the defendants allegedly recruited and induced individuals to act as straw buyers/loan applicants for boats from companies owned by or associated with the defendants. The straw buyers/loan applicants would then submit loan applications to financial institutions. The applications contained false financial information and documentation regarding purported down payments and deposits allegedly made by the straw buyers/loan applicants to the defendants’ boat companies. The defendants also allegedly falsified the financial records of the straw buyers/loan applicants, including IRS W-2 Forms, bank statements and federal income tax returns, and submitted these false financial documents to the financial institutions. Based on these false documents and misrepresentations, the financial institutions approved and issued loans to the straw buyers/loan applicants.
The indictment further alleges that the defendants paid the straw buyers/loan applicants a portion of the loan proceeds that the boat companies received from the lending institutions, as payment for their service and also to cover some of the monthly payments on the loans so as to keep the fraud afloat. The defendants paid the straw buyers/loan applicants in cash and through third party checks to avoid detection. Lastly, the defendants diverted the loan proceeds for their personal use and used some of the money to perpetuate the fraud scheme.
If convicted, the defendants face the following possible maximum statutory sentences: 30 years in prison for conspiracy to commit bank fraud and substantive bank fraud; 20 years for money laundering conspiracy, substantive money laundering (Counts 22-31), and wire fraud; and 10 years for substantive money laundering (Counts 32-39).
Mr. Ferrer commended the ICE-HSI, IRS-CI, Florida Department of Insurance Fraud, and the Miami-Dade Police Department for their outstanding investigative work in this case. The case is being prosecuted by Assistant U.S. Attorney Robert J. Lehner.
An indictment is only an accusation and a defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Palm Beach County Resident Pleads Guilty to Enticement of A Minor to Engage in Unlawful Sexual ActivityRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced that Gary Goldberg, 49, of Palm Beach County, pled guilty on Friday, June 14, 2013, before U.S. District Judge Kenneth A. Marra in West Palm Beach, Florida, to one count of enticing a minor to engage in an illegal sexual activity, in violation of 18 U.S.C. section 2422(b).
Sentencing has been scheduled for September 16, 2013. At sentencing, Goldberg faces a statutory mandatory minimum sentence of 10 years and a maximum term of up to life in prison on the enticement of a minor count.
According to documents filed with the court, Goldberg entered into a sexual relationship with a 17 year old victim and her 15 year old friend. In addition, Goldberg paid the minor victims to allow him to take sexually explicit photographs of them.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mr. Ferrer commended the investigative efforts of the FBI, Boca Raton Police Department, the FBI Safe Streets Task Force, and the South Florida Minor Vice Task Force. The case is being prosecuted by Assistant U.S. Attorney Lothrop Morris.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Broward Company Pleads Guilty and Is Sentenced for 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, announced that Aquatic Trading Company, Inc. (ATC), a Florida corporation based in Pompano Beach, entered a guilty plea and was sentenced yesterday in federal district court in Miami for conspiring to harvest, transport, and sell juvenile nurse sharks and angelfish, knowing the fish 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.
ATC was sentenced by Senior U.S. District Judge James Lawrence King, who had earlier accepted ATC’s guilty plea to the criminal charge. The company was placed on court-supervised probation for three years, ordered to pay a criminal fine of $3,000, and ordered to surrender to the Florida Fish & Wildlife Conservation Commission and to the United States Fish & Wildlife Service all licenses, permits, and endorsements issued to or held by the company. Two co-defendants in the case, Walter R. Bloecker and Lila M. Bloecker had entered guilty pleas to the same charge before Judge King on April 18, 2013, and each been sentenced to a period of 90 days home confinement, followed by a one year term of probation.
According to the indictment and statements in court, the defendants were involved in the illegal harvest of juvenile nurse sharks (Ginglymosthoma cirratum) and a variety of oversized angelfish (Pomocanthus arcuatus, Holocanthus bermudensis, and Holocanthus ciliaris), from around as early as June 2012 through October 2012. Harvesting of the fish was arranged through telephone calls between ATC’s employees and an individual in the Florida Keys. Walter Bloecker advised the harvester that he could conceal the illegal source of the sharks by using false paperwork to make it appear the sharks had been imported from Nicaragua. Neither ATC nor the harvester held the required permits for harvesting nurse shark pups for commercial purposes. The illegally acquired sharks were, according to the indictment and admissions in court, harvested from Florida State waters in the Florida Keys and marketed by telephone to a retailer in Michigan. The sharks were shipped to the Michigan-based buyer by commercial air cargo.
Likewise, Lila and Walter Bloecker engaged in business conversations with the Michigan dealer, to arrange the sale of oversized angelfish listed on a weekly inventory sales guide mailed to potential customers. The angelfish, also harvested in the Florida Keys, were sold and shipped to Michigan.
Florida Administrative Code, Section 68B-24.005, which addresses the commercial harvest of sharks from the waters of the state, provides in relevant part that any person harvesting sharks in or from the waters of the state for commercial purposes or sells any shark harvested from such waters must possess a valid federal annual vessel permit for sharks; may only sell to a holder of a valid Atlantic shark dealer permit issued pursuant to 50 C.F.R. §635.4; and that no wholesale dealer, as defined in Florida Statutes Section 379.362(1), may purchase sharks, or any part thereof, unless in possession of a valid federal Atlantic shark dealer permit and without confirming that the seller possesses a valid Florida saltwater products license and the federal licenses and permits specified in the Code Section.
Florida Administrative Code, Section 68B-42.004, “Size Limits” provides in relevant part that in all state waters no person may harvest angelfish with a total length outside of the limits specified for the individual species, specifically a minimum of one-and-one-half inches and a maximum of eight inches for Gray angelfish (P. arcuatus) and French angelfish (P. Paru); and a minimum of one-and-three-quarters inches and a maximum of eight inches for Blue angelfish (H. bermudensis) and Queen angelfish (H. ciliaris).”
Mr. Ferrer commended the investigative efforts of the NOAA Office for Law Enforcement and the Fish & Wildlife Service Office of Law Enforcement. 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.
Tax Preparer Pleads Guilty to Filing False Tax Returns on Behalf of 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), announced that defendant Efrain Felipe, 41, of Hallandale Beach, 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(1).
Sentencing for defendant Felipe has been scheduled for August 29, 2013 at 8:30 a.m. before U.S. District Judge Robert N. Scola Jr. At sentencing, Felipe faces a possible maximum statutory sentence of up to 3 years in prison on each count.
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 is being 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.
Former CEO of Miami Beach Community Health Center Sentenced in Six Million Dollar ScamRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), announced the sentencing of defendant Kathryn Abbate, 64, of Hollywood, FL, to 42 months in prison, to be followed by 3 years of supervised release.
According to the factual proffer, the defendant served as Chief Executive Officer (CEO) of the Miami Beach Community Health Center (the Center) from 2002 to mid-2012. The Center was a Federally Qualified Health Center (FQHC) during this time, and was a community-based organization providing medical care to persons regardless of ability to pay or insurance status. As an FQHC, the Center received millions of dollars of federal funding each year from 2008 to 2012
According to the factual proffer, from about 2008 through May 2012, Abbate embezzled money from the Center in a number of ways. First, Abbate caused the Center to pay her non-accrued vacation pay and other forms of compensation, totaling more than $3 million from between 2008 and 2012. Second, Abbate embezzled money from the Center by causing non-payroll checks to be issued payable to her. Specifically, from 2007 to 2012, Abbate caused the Center to disburse approximately 837 checks made payable to her totaling approximately $3 million for purported “community development.”
Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. The case is being prosecuted by Michael N. Berger.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami Resident Sentenced for Identity TheftRead 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), announced today the sentencing of defendant Josue Faustin, 21, of Miami. United States District Judge William J. Zloch sentenced Faustin to 27 months in prison, to be followed by 3 years of supervised release. In addition, the defendant was ordered to pay restitution in the amount of $43,591.90.
Faustin engaged in a fraud scheme using stolen identities to file fraudulent tax returns. The tax returns falsely claimed refunds and requested that the refunds be direct-deposited into Netspend debit card accounts which Faustin had opened in the names of unwitting identity theft victims. Faustin subsequently went to various ATM machines in Coral Springs, Broward County, and withdrew funds from the Netspend debit card accounts.
According to documents filed with the court, on May 17, 2012, Faustin was observed by a Coral Springs police officer as he went to CVS and 7-11 stores, and bought pre-paid credit cards. After the purchases, Faustin went to ATM machines and withdrew money. After being pulled over for a traffic stop, Faustin was found in possession of bundles of cash totaling $5,881, 3 cell phones, 15 Netspend debit cards loaded with approximately $30,000 from tax refunds, and 4 newly purchased debit cards.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case was prosecuted by Assistant United States Attorney Jennifer Keene.
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.
Ft. Lauderdale Ponzi Schemer Sentenced to 12 Years’ ImprisonmentRead 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, announced the sentencing of George Elia, 69, formerly of Fort Lauderdale. United States District Judge Kathleen Williams sentenced Elia to 12 years’ imprisonment, followed by 3 years of supervised release.
According to evidence presented during the trial and sentencing, George Elia, and his conspirator James “Jim” Ellis, 70, also of Fort Lauderdale, operated a Ponzi scheme. Elia guaranteed that investor money was safe, and that he had high rates of returns from his day trading of stock, including Facebook stock. In late 2011, however, payments to investors became irregular, investors filed civil lawsuits against Elia, and in January 2012, Elia sold his home, shipped his belongings to his native Cyprus, and fled. He was arrested returning to Las Vegas with his wife in March 2012.
As a result of his scheme, approximately 50 victims lost approximately $10 million after investing with Elia. Elia used investor money to purchase two Bentleys, a Rolls Royce, approximately $500,000 in jewelry, and Chanel and Hermes jewelry.
On April 30, co-conspirator Ellis was sentenced to 38 months in prison by U.S. District Judge Williams.
Mr. Ferrer commended investigative efforts of the FBI and the cooperation of the Securities and Exchange Commission. This case is being handled by Assistant U.S. Attorneys H. Ron Davidson and Wilfredo Fernandez.
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.
Walgreens Agrees to Pay A Record Settlement of $80 Million for Civil Penalties Under the Controlled Substances ActRead the Press Release
Largest Fine Paid by a DEA Registrant
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, announced that Walgreens Corporation (Walgreens), the nation’s largest drug store chain, has agreed to pay $80 million in civil penalties, resolving the DEA’s administrative actions and the United States Attorney’s Office’s civil penalty investigation regarding the Walgreens Jupiter Distribution Center and six Walgreens retail pharmacies (collectively “Registrants”) in Florida. The settlement further resolves open civil investigations in the District of Colorado, Eastern District of Michigan, and Eastern District of New York, as well as civil investigations by DEA field offices nationwide, pursuant to the Controlled Substances Act (the Act).
The settlement, the largest in DEA history, resolves allegations that the Registrants committed an unprecedented number of record-keeping and dispensing violations under the Act. According to documents filed in the underlying administrative actions, the Registrants negligently allowed controlled substances listed in Schedules II – V of the Act, such as oxycodone and other prescription pain killers, to be diverted for abuse and illegal black market sales.
According to the most recent report from the U.S. Center for Disease Control and Prevention, prescription drug overdose deaths exceeded motor vehicle deaths and deaths from illegal street drugs, such as cocaine, heroin, and amphetamines in 2009. Oxycodone is a powerful addictive narcotic that is one of the most abused prescription medications in Florida and throughout the United States. Walgreens’ Distribution Center in Jupiter, Florida was the largest supplier of oxycodone to retail pharmacies in the State of Florida.
U.S. Attorney Wifredo A. Ferrer stated, “Prescription drug abuse is a tremendous problem in Florida and throughout the country. Every day, individuals die from prescription drug overdoses. The record-keeping requirements of the Controlled Substances Act and DEA regulations are designed to prevent prescription pain killers, like oxycodone, from ending up on our streets. For this reason, we cannot allow pharmacies to circumvent their regulatory record-keeping and dispensing obligations.”
DEA Special Agent in Charge Mark R. Trouville stated, “National pharmaceutical chains are not exempt from following the law. This settlement sends out a clear message that all DEA registrants will be held accountable when they violate the law and threaten public health and safety. The DEA will continue its efforts to work with our registrants and our law enforcement partners to combat pharmaceutical drug abuse and diversion in Florida.”
The settlement agreement covers conduct that was the subject of DEA’s administrative actions and the U.S. Attorney’s Office civil penalty investigation. More specifically, the settlement covers allegations against Walgreens’ Jupiter Distribution Center and six Walgreens’ retail pharmacies. First, the Jupiter Distribution Center failed to comply with DEA regulations that required it to report to the DEA suspicious prescription drug orders that it received from Walgreens’ retail pharmacies. Walgreens’ alleged failure to sufficiently report suspicious orders was a systematic practice that resulted in at least tens of thousands of violations and allowed Walgreens’ retail pharmacies to order and receive at least three times the Florida average for drugs such as oxycodone.
Second, the six retail pharmacies in Florida that received the suspicious drug shipments from the Jupiter Distribution Center, in turn, filled customer prescriptions that they knew or should have known were not for legitimate medical use. In addition, these retail pharmacies and others elsewhere in the United States failed to properly identify and mark, as required by DEA regulations, hardcopy controlled substance prescriptions that were outsourced to a “central fill” pharmacy for filling. Without Walgreens’ retail pharmacies identifying these outsourced prescriptions, DEA could not accurately determine which prescriptions were filled from the retail pharmacies’ own drug supplies and which prescriptions were filled by a “central fill.” Consequently, DEA could not determine the accuracy of the retail pharmacies’ drug records. The DEA’s administrative actions demonstrated millions of violations of this type.
In addition to the $80 million civil penalty for the above violations, Walgreens agreed to surrender the Registrants’ ability to distribute or dispense controlled substances listed in Schedules II – V for two years, ending in 2014. As part of the settlement, Walgreens admitted that it failed to uphold its obligations as a DEA registrant regarding the above-described conduct. Furthermore, Walgreens has agreed to create a Department of Pharmaceutical Integrity to ensure regulatory compliance and prevent the diversion of controlled substances. Walgreens has also agreed to enhance its training and compliance programs, and to no longer monetarily or otherwise compensate its pharmacists based on the volume of prescriptions filled.
Since 2009, the DEA, along with its federal, state, and local counterparts, have partnered to combat the prescription drug abuse epidemic that has plagued Florida, culminating in Operation Pill Nation I and II and Operation Oxy Alley. These investigations have resulted in charges against more than 172 individuals, including 51 doctors and 24 clinic/pharmacy owners, the seizure of approximately 2.5 million dosage units of controlled substances, approximately $16.6 million, real property, and exotic cars. In addition, approximately 42 doctors and 11 pharmacies have lost their DEA registrations through the issuance of Immediate Suspension Orders. As well, approximately 192 doctors and 68 pharmacies have voluntarily surrendered their DEA registrations following an official visit from the DEA. Lastly, DEA has also taken action against seven other Florida-based distributors.
This investigation was conducted by the DEA’s Miami Field Office and the U.S. Attorney’s Office for the Southern District of Florida, with the assistance of DEA’s Office of Chief Counsel.
Mr. Ferrer thanked U.S. Attorney for the District of Colorado, John Walsh, U.S. Attorney for the Eastern District of Michigan, Barbara L. McQuade, and U.S. Attorney for the Eastern District of New York, Loretta E. Lynch, for their cooperation in this case. Mr. Ferrer also commended the investigative work of the DEA’s Miami Field Office, as well as its DEA counterparts throughout the country for their work and assistance in this matter.
The civil penalty case was investigated and negotiated by Assistant U.S. Attorney Franklin Monsour of the U.S. Attorney’s Office for the Southern District of Florida. The administrative case was principally negotiated by Lee Reeves, Associate Chief Counsel for DEA’s Diversion and Regulatory Litigation Section, and also by Scott Lawson, who acted as lead trial counsel for the DEA in the administrative actions.
Attachment:
Walgreens MOA & Addendum (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.
Marine Life Dealers Charged for Illegal Harvest and Sale of Nurse SharksRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Otha Easley, Acting Special Agent in Charge for the National Oceanic and Atmospheric Administration, Office of Law Enforcement, Southeast Division, and David G. Pharo, Resident Agent in Charge, U.S. Fish & Wildlife Service (FWS), Office of Law Enforcement, announced the unsealing of criminal charges against Allan Wagner, formerly a resident of Monroe County, Florida, and Dean Trinh, 43, of Milpitas, California. More specifically, the indictment against Wagner and Trinh alleges that they engaged in a conspiracy to take, harvest, capture, transport, and sell quantities of juvenile nurse sharks from Florida state waters, for commercial sale and distribution in interstate commerce to their financial gain, in violation of the laws and regulations of the State of Florida, all in violation of the federal Lacey Act, Title 16, United States Code, Sections 3372(a)(2)(A), and 3373(d)(1) and (2). Dean Trinh has been arrested and made his initial appearance on the charges in California; his court appearance date in Florida remains to be set. Allan Wagner passed away prior to the unsealing of the indictment.
The case has been assigned to U.S. District Judge Jose E. Martinez. If convicted on the charges, Trinh faces possible terms of imprisonment of up to five years on each of the six charges brought against him.
According to the indictment, Wagner held a Florida Saltwater Products License but lacked the necessary federal annual vessel permit for sharks. He was the registered owner of a 40’ commercial fishing vessel. Trinh operated a business in Milpitas, California, known as AQUATOP USA, LLC, which, among other things, advertised the sale of nurse sharks on eBay and Craig’s List. Specifically, the indictment alleges that Wagner harvested nurse shark pups from lobster traps he placed in state waters and thereafter he and Trinh negotiated over the internet for the sale and transfer of the juvenile nurse sharks. The sharks were shipped to California by commercial air cargo, for further sale by Trinh. Over the period from August 2009 through October 2009, the defendants are alleged to have sold and transferred approximately 74 sharks.
Florida Administrative Code, Section 68B-44.005, “Commercial Harvest of Sharks: Federal Permit Required” provides in relevant part: “(1) No person shall harvest sharks in or from the waters of the state for commercial purposes or sell any shark harvested from such waters unless such person is in possession of a valid federal annual vessel permit for sharks issued pursuant to 50 C.F.R. §635.4. The federal Lacey Act, among other things, makes it unlawful for any person to import, export, transport, sell, receive, acquire, or purchase in interstate or foreign commerce, any fish or wildlife, taken, possessed, transported, or sold in violation of any law or regulation of any State. 16 U.S.C. §3372(a)(2)(A).
Mr. Ferrer commended the investigative efforts of the Special Agents of NOAA-OLE and FWS-OLE in this case, and the U.S. Attorney’s Office for the Northern District of California for their assistance in the preliminary proceedings in that District. The case is being prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald.
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 Men Arrested in Connection with the Theft of Gold Bars at Miami International AirportRead 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 J.D. Patterson, Director, Miami-Dade Police Department (MDPD), announced arrests of defendants Marco Cruz, 47, of Hialeah, and Ramses Llufrio, 38, of Hialeah. The charges arise from the May 14, 2013 theft of gold bars worth an approximate value of $625,000 from American Airlines Flight 902, a flight that arrived at Miami International Airport from Guayaquil, Ecuador. The defendants are scheduled for an initial appearance today at 1:30 p.m. before U.S. Magistrate Judge Jonathan Goodman.
The criminal complaint against Cruz charges him with, among other things, knowingly stealing gold bars which were part of a foreign shipment of property, in violation of Title 18, United States Code, Section 659. According to the allegations in the complaint, Flight 902 was a passenger flight that also contained cargo. After the flight arrived at Miami International Airport, airline employees removed the cargo, which included six boxes of gold bars. When airline employees noticed that one box of gold bars had gone missing, they notified law enforcement of the theft. Cruz, who works as a Fleet Service Clerk, had access to Flight 902 on the morning of its arrival. As part of its investigation into the theft, law enforcement interviewed employees at the airline, including Cruz. Although Cruz initially denied involvement in the theft, he gave law enforcement consent to search his home. In his home, law enforcement found one of the stolen bars and $200,000 in cash. Cruz later provided law enforcement with an additional $50,000 in cash.
The criminal complaint against Llufrio charges him with receiving one of the stolen gold bars, knowing that it had been stolen, in violation of Title 18, United States Code, Section 659. According to the allegations in the complaint, Llufrio owns a pawn shop located at 548 NW 57th Avenue, Miami, FL, 33126. The complaint alleges that Cruz delivered a total of five gold bars to Llufrio and received approximately $250,000 in cash as a result of these transactions. Llufrio allegedly accepted one of the bars immediately after Cruz informed him that the bar was “hot.”
If convicted, the defendants face a maximum of ten years imprisonment.
Mr. Ferrer commended investigative efforts of the FBI, the Miami-Dade Police Department, the City of Miami Police Department and the Coral Gables Police Department. This case is being handled by Assistant U.S. Attorney John Byrne.
A criminal complaint is merely an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
U.S. Attorney Joins FTC and Florida Attorney General to Spotlight Telemarketing Schemes Aimed at Defrauding Time-Share Unit OwnersRead the Press Release
Sixty-nine defendants charged to date by USAO on timeshare resale telemarketing fraud
At a press conference held in Miami today, Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Darin M. Didier, Acting Supervisory Special Agent, Federal Bureau of Investigation (FBI), Miami Field Office, and Ronald Verrochio, Inspector in Charge, U.S. Postal Inspection Service, Miami Field Office, joined Charles A. Harwood, Acting Director, Federal Trade Commission’s (FTC) Bureau of Consumer Protection, Florida Attorney General Pam Bondi, and Jay Levenstein, Deputy Commissioner, Florida Department of Agriculture and Consumer Services, to highlight to their respective offices’ efforts in combatting timeshare property resale fraud in Florida and around the country.
According to the FTC, 191 actions were brought by the FTC and its law enforcement partners around the nation. Of these actions, the U.S. Attorney’s Office for the Southern District of Florida claimed 18 criminal cases, charging a total of 69 defendants, between 2011and 2013.
U.S. Attorney Wifredo A. Ferrer, focusing his remarks on Florida, stated, “We cannot allow our elderly and vulnerable real property owners to continue to be the target of fraud schemes. For that reason, our respective offices – federal and state, criminal and civil – have joined forces to combat Florida-based fraud schemes victimizing timeshare unit owners across the country. These victims, many of them elderly or in financial distress, looked to sell their units to help make ends meet or pay other bills. Instead, they were defrauded out of more than $14 million in total. Such fraud will not be tolerated.”
According to Charles A. Harwood, Acting Director of the Federal Trade Commission’s Bureau of Consumer Protection, “Timeshare resale scammers have cheated tens of thousands of timeshare owners out of tens of millions of dollars by convincing them to pay for a false promise. But law enforcement at virtually every level of government is working together to put an end to the problem.”
“We will continue to pursue scam artists who attempt to essentially steal from timeshare owners, and the Timeshare Resale Accountability Act that I worked with the Legislature on in 2012 is already having a great effect on ending this type of fraud. With strong partnerships among federal, state and local leaders, we will continue to protect Floridians,” stated Florida Attorney General Pam Bondi.
“If you think you are the victim of a timeshare scam, file a complaint with your state attorney general’s office and the Internet Crime Complaint Center,” said Darin M. Didier, acting Supervisory Special Agent assigned to FBI Miami Division. “To avoid becoming a victim of this type of crime take a few prudent steps such as; do not agree to anything on the phone or online until you have had a chance to check out the reseller, get all information in writing, verify that the reseller’s agents are properly licensed and ask about fees and timing. Go to the FBI’s and FTC’s websites for more important tips.”
Ronald Verrochio, Inspector in Charge, U.S. Postal Inspection Service, Miami Field Office, stated “The timeshare resale fraudsters sound legitimate and convincing, but put pressure on victims to make decisions quickly. Hopefully the arrests of these fraudsters and dismantling of their criminal organizations will bring light to this rising fraud and educate the community. Our goal is to stop the crime and educate community members on these scams so they don’t become victims.”
“These scam artists defrauded consumers in Florida and across the country out of millions of dollars, often through illegal telemarketing,” said Commissioner of Agriculture Adam H. Putnam. “We’re proud to partner with other state and federal officials to protect consumers from further harm and bring justice to those who have violated the law.”
Among the criminal cases recently prosecuted by the U.S. Attorney’s office are the following:
1. U.S. v. Pappalardo et al.,, 13-60049-CR-Dimitrouleas (15 defendants charged) 2. U.S. v. Faraguna et al.,11-60247-CR-Marra (13 defendants charged) 4. U.S. v. Davis, 11-60268-CR-Hurley (1 defendant charged) 5. U.S. v. Friedman et al., 12-60019-CR-Scola (4 defendants charged) 6. U.S. v. Spinelli et al., 12-60149-CR-Scola (5 defendants charged) 7. U.S. v. Crapella and Walker, 12-mj-6114-Rosenbaum (2 defendants chargedThese seven cases charge a total of 41 defendants with various counts, including conspiracy to commit mail fraud, conspiracy to commit wire fraud, and conspiracy to commit money laundering.
According to the charging documents and other documents filed with the court, Timeshare Mega Media and Marketing Group, Inc. (TMMMG) was a timeshare telemarketing room that operated in Fort Lauderdale, Florida, from July 2009 through May 2010. According to the allegations in the indictment, the defendants conspired to unlawfully enrich themselves by making false representations over the telephone to individuals who were trying to sell their time-share units. Among the false statements, the defendants would tell customers, most of who lived outside of the State of Florida, that the defendants had successfully sold their time-share unit and asked the customer to pay a fee to finalize the sale, which fee would purportedly be refunded at closing. This fee ranged from at least $1,996 to as much as $10,000. In fact, however, there were no buyers for their units, and the defendants kept the victims’ money for their personal use. During the ten months that TMMMG was in business, it fraudulently induced more than 2,000 victims to send approximately $5,000,000 to TMMMG.
Among the 41 defendants are the owners of TMMMG, Pasquale Pappalardo and Joseph Crapella, 33 top salespeople, and 6 others who handled customer service, verification, leads, payroll and other vital functions for TMMMG. To date, 23 of the 41 defendants charged in these 7 related cases have pled guilty and have received sentences ranging from 5 years to 3 months in prison, 6 defendants have pled guilty and are awaiting sentencing, 2 defendants are fugitives, 1 defendant is deceased, and the remaining 9 defendants are pending trial. If convicted, the defendants face a maximum statutory sentence of up to 20 years in prison on each count of conspiracies to commit mail fraud, wire fraud, and money laundering. This series of cases is being prosecuted by Assistant U.S. Attorney Jeffrey Kaplan.
In addition to the cases identified above, the Northern Division of the United States Attorney’s Office prosecuted 11 cases, which charged a total of 28 defendants with various counts, including conspiracy to commit mail fraud and conspiracy to commit wire fraud. These 11 cases involved two timeshare fraud rings which operated in Palm Beach County, but solicited victims throughout the United States. The defendants would typically operate a company for 4 to 10 months, and then, to avoid detection by law enforcement, close the company and reopen under a new name. The new company would operate in the same fashion as the original company with many of the same owners, managers and salespeople.
The first ring involved 6 companies which solicited approximately $7 million in advance fees from approximately 3,000 timeshare owners. The second ring involved 7 companies which solicited approximately $2.7 million from approximately 1,200 timeshare owners. According to the charging documents and other documents filed with the court, both rings involved essentially the same scheme. Defendants in these cases cold called timeshare owners and made false representations to induce them to pay advance fees for purported timeshare marketing and sales services. Among the false statements, the defendants would tell customers that the companies had successfully sold or would sell their timeshare units, that the companies would handle the appraisals, title searches, closings, and other services associated with the sales, and that the companies would use the advance fees to cover the necessary costs associated with the sales. In truth, the defendants never located a single buyer, never completed a single sale of a timeshare unit, and never used the advance fees for anything other than their own personal benefit.
Among the 28 defendants prosecuted in connection with these 2 rings were the company owners, managers, top salespeople, and an individual who allowed one of the companies to use his merchant account to process victim credit card payments. To date, 18 of the 28 defendants charged in these 11 cases have pled guilty and received sentences ranging from 6 months to 151 months, 5 defendants have pled guilty and are awaiting sentencing, 4 defendants are scheduled to plead guilty, and 1 is a fugitive. The defendants in these cases face a maximum statutory sentence of up to 20 years in prison on each conspiracy count. These cases are being prosecuted by Assistant U.S. Attorneys Adrienne Rabinowitz and Kerry Baron.
A complete list of the cases prosecuted by the United States Attorney’s Office for the Southern District of Florida is attached.
Mr. Ferrer commended the investigative efforts of the FBI and U.S. Postal Inspection Service in the criminal cases. Mr. Ferrer also recognized the invaluable support and assistance provided by the FTC during these investigations.
Attachment:
List of Cases (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.
Miramar Man Sentenced in Stolen Identity Tax Refund SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announced that defendant Johnny Alexander Melo, 36, of Miramar, was sentenced today for his participation in an identity theft tax refund scheme. Melo was sentenced to 60 months of imprisonment, followed by one year of supervised release. In addition, U.S. District Judge Robert N. Scola ordered Melo to pay restitution of $18,594.63 to the IRS. Melo previously pled guilty to one count of conspiracy to use a false identification document, one count of possession of five or more identification documents, one count of theft of government funds and one count of aggravated identity theft. The defendant was remanded to the custody of the U.S. Marshals Service following the hearing.
On October 5, 2012, defendant Melo was charged in a ten (10) count indictment for his participation in an identity theft tax refund scheme. According to the indictment, defendant Melo and his co-conspirators stole personal identification information and used the stolen information to file false tax returns in the identities of at least 22 individuals. The U.S. Treasury issued tax refund checks in the names of those individuals. Melo then attempted to cash these fraudulently obtained tax refund checks by using false driver’s licenses in the names of the stolen identities.
Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to the FBI and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Michael B. Nadler.
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.
Cutler Bay Man Sentenced in $12 Million Identity Theft Tax Refund Fraud Scheme Involving the Cashing of Thousands of Fraudulently Obtained U.S. Treasury ChecksRead 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), Paula A. Reid, Special Agent in Charge, United States Secret Service (USSS), Ronald Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Field Office, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced the sentencing of defendant Jesus Calvo, 30 of Cutler Bay, for his role in an identity theft tax refund fraud scheme, to 58 months in prison, to be followed by 3 years of supervised release. U.S. District Judge Jose Martinez also ordered the defendant to pay $9.2 million in restitution to the Internal Revenue Service.
According to the factual proffer, the defendant operated a check cashing store called J&S Taxes in Perrine, Florida. Beginning in or around February 2012, and continuing through in or around June 2012, the defendant cashed thousands of fraudulently obtained United States Department of Treasury income tax refund checks (totaling approximately $12MM) that were brought by co-conspirators. The defendant knew that the checks had been obtained by fraud and without authorization of the true taxpayer.
According to the factual proffer, the defendant received more than the standard fee for cashing the checks because the tax-refund checks had been obtained by fraud. The standard fee for cashing these checks would have been from two to five percent. However, the defendant took much more than that fee and used this money for his own personal expenditures – he purchased two houses, he funded his retirement account, he invested in a “start-up company,” he purchased an investment property, and he purchased cars and other items.
According to the plea agreement and statements made in court, the defendant agreed to forfeit two houses, five cars, three bank accounts, high-end watches, jewelry and cash. These assets had an estimated value of approximately $2 million.
Mr. Ferrer thanked IRS-CI, USSS, USPIS, and FBI for their work on this case. The case is being prosecuted by Assistant U.S. Attorneys Michael N. Berger, Evelyn Sheehan and Elijah Levitt.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Port Saint Lucie Men Sentenced on Firearms Conspiracy ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, announce yesterday’s sentencing of defendants Vincent Olavarria, Jr., 46, and Darren D. Cuff, 26, both of Port St. Lucie, on charges of conspiracy to violate federal firearms sales laws and making false statements to a federal officer. Olavarria had previously pled guilty to conspiracy to violate federal firearms laws, in violation of Title 18, United States Code, Section 371. Cuff had previously pled guilty to making false statements to a federal officer, in violation of Title 18, United States Code, Section 1001, in the course of the investigation of this case. At yesterday’s hearing, U.S. District Judge K. Michael Moore sentenced Olavarria to 34 months in prison to be followed by two years of supervised release; Judge Moore sentenced Cuff to 21 months in prison to be followed by two years of supervised release.
From March 2010 through December 2011, defendant Olavarria was a federally licensed firearms dealer in Port St. Lucie. Olavarria conspired with other defendants including defendant Cuff to falsify firearms sales records and conceal the actual buyers and true destination of sixty rifles that Olavarria had sold to an undocumented buyer. In concert with Olavarria and at his direction, Cuff and others pretended to be the buyers, and lied to ATF agents investigating the sales and transfer of the rifles, claiming to have taken the rifles and resold them on the street, when in fact they had all gone to another purchaser as yet unknown to ATF.
Mr. Ferrer commended the investigative efforts of the ATF. 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.
Illinois Man Sentenced to Serve 72 Months in Prison for Conspiring to Distribute Prescription Drugs over the InternetRead the Press Release
Michael P. Jackson, 40, of Carmi, Ill., was sentenced yesterday in the U.S. District Court for the Southern District of Florida to serve 72 months in prison for selling the prescription drug known as Adderall, from 2009 to 2012, to a Florida woman who operated an illegal Internet-pharmacy business. Jackson also was sentenced to three years of supervised release.
According to the Dec. 6, 2012, indictment, defendant Jackson supplied his co-defendant Lina Rodriguez with pills of Adderall, which contains amphetamine, a Schedule II controlled substance. As defendant Jackson was aware and intended, co-defendant Rodriguez resold the Adderall pills through an Internet business she owned and operated in southern Florida.
“This prosecution aims to curb the sale of dangerous drugs to United States citizens,” said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division of the U.S. Department of Justice. “The controlled substance drugs allegedly sold by the defendants were not dispensed by U.S. licensed pharmacies, and were not prescribed by any physician. Along with FDA, the U.S. Postal Inspection Service, and our other law enforcement partners, we will continue to protect our citizens from unsafe and potentially harmful drugs.”
Jackson pled guilty to the lead count of the indictment on March 11, 2013, which charged him and Rodriguez with conspiring to possess with the intent to distribute Adderall. Pursuant to his plea agreement, Jackson agreed not to oppose a judgment against him in the amount of $18,862, as gross proceeds of the offense to which he pleaded guilty. Rodriguez was sentenced to 72 months’ imprisonment on April 22, 2013.
The case was investigated by the Miami Field Office of the U.S. Food & Drug Administration’s Office of Criminal Investigations; the Miami Division of the U.S. Postal Inspection Service; and the Sacramento Field Office of the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Kevin J. Larsen of the U.S. Attorney’s Office for the Southern District of Florida, and Perham Gorji, Trial Attorney for the U.S. Department of Justice’s Consumer Protection Branch.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
St. Lucie County Resident Sentenced to Child Pornography ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kenneth Mascara, Sheriff, St. Lucie County Sheriff’s Office (SLCSO), announced today that U.S. District Judge K. Michael Moore sentenced Cameron Dean Bates, 46, of Port Saint Lucie, to 20 years imprisonment, followed by 15 years of supervised release.
According to testimony at trial, in March 2011, SLCSO detectives and members of the South Florida Internet Crimes against Children (ICAC) Task Force began an Internet investigation using Peer-to-Peer (P2P) software. During this investigation, law enforcement found that between December 2010 and June 19, 2012, several internet protocol (IP) addresses linked to Cameron Dean Bates in both St. Lucie County and Palm Beach County were used to download and share child pornography files. Detectives reviewed a number of the files associated with the IP addresses, and confirmed that the files contained child pornography.
On June 29, 2012, a state authorized search warrant was executed at Bates’ residence in Port Saint Lucie, Florida. During the search, law enforcement seized a Dell black/silver laptop computer from Bates’ car. An on-sight forensic preview scan of the computer found numerous, non-deleted, child pornography images and videos, which included a minor child engaging in sexually explicit conduct. A full forensic analysis of Bates’ laptop revealed numerous images and videos of child pornography, along with personally produced adult pornography by Bates.
Mr. Ferrer commended the investigative efforts of the St. Lucie County Sheriff’s Office and HSI for their assistance and their work on this case. The case is being prosecuted by Assistant U.S. Attorneys Carmen Lineberger and A. Marie Villafana.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Fort Pierce Man Sentenced on Firearms ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, announce today’s sentencing of defendant Jose Antonio Delgado, 46, of Fort Pierce, on charges of unlawful possession of stolen firearms. Delgado had previously pled guilty to possession of a stolen handgun, in violation of Title 18, United States Code, Sections 922(j) and 924(a)(2). At today’s hearing, U.S. District Judge K. Michael Moore sentenced Delgado to 120 months in prison to be followed by three years of supervised release.
On November 14, 2012, defendant Delgado was arrested by officers of the St. Lucie County Sheriff’s Office, after he was spotted carrying a prohibited firearm in public and fled police pursuit into his home in Fort Pierce. Following Delgado’s surrender to the police who surrounded the home, a state search warrant issued for the home. The search resulted in the seizure of two firearms found in Delgado’s home (a .22 caliber TEC-22 short barreled rifle modified with an added stock, and a homemade silencer) as well as the .40 caliber Smith & Wesson handgun Delgado was carrying as he fled police, which was found outside on the ground. According to court records, Delgado had been deprived of the right to possess firearms following previous felony convictions. Judge Moore imposed the maximum sentence under federal law, noting the defendant’s extensive criminal history going back to the age of nine years old.
Mr. Ferrer commended the investigative efforts of ATF, the Fort Pierce Police Department, and the St. Lucie County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Theodore Cooperstein.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Florida Corporations and Their Management Sentenced for Trafficking Toys Containing Lead and Smuggling Counterfeit Disney, Marvel and Major League Baseball Merchandise from ChinaRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s, Homeland Security Investigations (ICE-HSI), Miami Field Office, U.S. Consumer Product Safety Commission (CPSC), and Vernon Foret, Director Field Operations, U.S. Customs and Border Protection (CBP), Miami Field Office, announced today that defendants Hung Lam, 55, and Isabella Kit Yeung, 37, both of Miami-Dade County, and Florida corporations LM Import-Export, Inc. (LM), Lam’s Investment Corp. (LIC), and LK Toys Corporation, (LK) were sentenced for violations regarding the smuggling of hazardous children’s products from China.
Lam was sentenced by U.S. District Court Judge Kathleen M. Williams to 22 months incarceration, a $10,000.00 fine, three years of supervised release and a $200 special assessment. LM, LIC, and LK were sentenced to five years’ probation and an $800 special assessment. Yeung was sentenced to one year of probation, a $1,000 fine and $25 special assessment. In addition, a forfeiture judgment and order in the amount of $862,500 was imposed against the defendants. The judgment also ordered the forfeiture of property imported by defendants and seized by the United States.
The sentencing was based on defendant Hung Lam’s earlier guilty plea to one count of conspiracy to traffic and smuggle children’s products, including toys, containing banned hazardous substances, such as lead and small parts, in violation of 18 U.S.C. § 371, and one count of trafficking in counterfeit goods, in violation of 18 U.S.C. § 2320. Co-defendant Isabella Kit Yeung pled guilty to one misdemeanor count of submitting a false label country of origin, in violation of 19 U.S.C. §1304(a).
According to the documents filed with and statements made in court, from approximately April 2000 through May 2011, defendants Lam, LM, LIC, and LK conspired to sell and distribute in commerce children’s products imported from China in violation of the Consumer Product Safety Act and the Federal Hazardous Substances Act. These products allegedly presented the risk of choking, aspiration, and ingestion, and some contained lead above the allowed statutory limits. The defendants imported these products by means of false statements on custom declaration forms. Yeung was charged with the misdemeanor count of importing goods without the required country of origin labeling.
Mr. Ferrer commended the investigative efforts of ICE-HSI, CPSC, and CBP. This case is being prosecuted by Assistant U.S. Attorneys Norman O. Hemming, III and Daren Grove.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Medicare Beneficiary Sentenced to Imprisonment for Accepting Kickbacks from Home Health AgencyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Ronald Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Field Office, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), announced today the sentencing of defendant Rene Suarez-Basanta, 67, to imprisonment for receiving kickbacks from a home health agency.
Defendant Suarez-Basanta was sentenced by U.S. District Judge Ursula Ungaro to 12 months imprisonment, to be followed by three years of supervised release. Suarez-Basanta was also ordered to pay restitution to the Medicare trust fund in the amount of $16,740.57. Judge Ungaro cited the need to deter this behavior in the community as a factor in issuing the sentence.
The conviction of Suarez-Basanta stemmed from the investigation of Safe Home Health Care, Inc., a home health agency in Miami that was offering and paying kickbacks to obtain beneficiaries to serve as patients for home health services, mostly physical therapy. Conspirators at the agency used the beneficiary information to bill Medicare. Defendant Suarez-Basanta and co-defendant Marta Gonzalez were convicted of conspiring to pay and receive kickbacks. Defendant Gonzalez was also convicted of two additional counts for soliciting and accepting kickbacks in exchange for serving as a patient of Safe Home Health Care, Inc. and having her parents serve as patients of Safe Home. Defendant Gonzalez was sentenced to 15 months imprisonment and three years of supervised release. Judge Ungaro had previously sentenced co-defendant Jorge Sell to 97 months imprisonment and three years of supervised release.
In total, nine defendants have been convicted of paying and receiving health care kickbacks in this investigation.
Mr. Ferrer commended the investigative efforts of the U.S. Postal Inspection Service, FBI, and HHS-OIG. The case was prosecuted by Assistant U.S. Attorney Eric Morales.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Ft. Lauderdale Man Charged with 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, announced that Robert J. Vitale, 42, of Ft. Lauderdale, Florida, was charged by Information with obstruction of proceedings and providing false testimony before the U.S. Securities and Exchange Commission (SEC). Specifically, the Information charges one count of obstruction of proceedings before an agency of the United States, in violation of Title 18, United States Code, Section 1505, and one count of perjury, in violation of Title 18, United States Code, Section 1621. Vitale faces a potential sentence of up to five years imprisonment and a $250,000 fine as to each count.
According to the Information, 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.
As alleged in the Information, 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, the Information alleges, 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, on or about August 15, 2006, the United States District Court for the Southern District of Florida entered a Final Judgment in SEC v. Robert Vitale, et al., No. 04-60493 (the “2004 Case”), in which Vitale was, among other things, ordered to pay disgorgement and civil penalties of $100,025 for alleged violations of the federal securities laws. As of June 5, 2012, the Information alleges, Vitale had failed to satisfy his obligations from the 2004 Case.
United States Attorney Wifredo A. Ferrer stated, “The SEC plays a vital role in policing our nation’s securities markets and protecting investors from misconduct. We will not allow defendants to obstruct the SEC or provide false testimony to thwart the due administration of justice.”
“The FBI will vigorously investigate and seek prosecution of individuals who allegedly attempt to obstruct an agency of the United States from carrying out its mission, such as the SEC’s efforts to protect investors. When an individual provides false testimony or conspires to obstruct justice, our system of justice is undermined,” said Michael B. Steinbach, Special Agent in Charge, FBI Miami Division. We will continue to work with the U.S. Attorney’s office, the SEC and our other partners to safeguard the integrity of the legal system.”
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.
Multi-Agency Law Enforcement Operation Tackles Gun Violence in Miami-Dade CountyRead the Press Release
Operation Smoking Gun III results in federal and state arrests of 97 individuals
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Katherine Fernandez Rundle, Miami-Dade County State Attorney, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Firearms, Tobacco and Explosives (ATF), Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, Neil DeSousa, Acting U.S. Marshal, U.S. Marshal’s Service, and Matthew Boyd, Chief, Miami Gardens Police Department, announced the results of Operation Smoking Gun III, a concerted multi-agency effort to combat the crime and violence associated with illegal firearm and drug trafficking activity in Miami-Dade County.
The United States Attorney’s Office and its federal and state law enforcement partners are committed to reducing the crime and violence associated with illegal firearm and drug trafficking. To this end, over the past year, the U.S. Attorney’s Office, the State Attorney’s Office and federal and state law enforcement have cooperated in a number of joint investigations and prosecutions, collectively called Operation Smoking Gun III, targeting illegal firearms and drug trafficking, including the unlawful sale of prescription drugs. This proactive investigation used undercover agents to purchase guns and drugs from violent and repeat offenders.
Operation Smoking Gun III has yielded substantial results. Since its inception in June 2012, 97 individuals have been arrested on federal and state firearm and narcotics offenses. Federal charges have been brought against 22 individuals. Of those charged federally, 16 have been arrested and will be making their initial appearances in federal court tomorrow. Federal charges against the remaining 6 individuals remained sealed. In addition, approximately 80 individuals have been arrested separately on state narcotics and firearm violations.
Operation Smoking Gun III has resulted in the following seizures:
--248 firearms including 1 sawed off shotgun;
--342 grams crack cocaine;
--1,728 grams cocaine;
--634 grams heroin;
--2473 MDMA pills;
--2874 Oxycodone pills;
--15,208 grams of marijuana;
--5 bullet proof vests;
--576 Percocet pills;
--10 Morphine pills;U.S. Attorney Wifredo A. Ferrer stated, “As a result of this long-term concerted effort, 97 dangerous individuals, the vast majority of whom are previously convicted felons, their guns and their drugs, have been removed from the streets of Miami-Dade and South Florida. Working as a team, we shared intelligence, effectively multiplied our resources, and enhanced our ability to tackle violent crime in this community. We are proud of our collaborative relationship and look forward to many more successful operations -- like this one -- aimed at making our communities safer."
Katherine Fernandez-Rundle, Miami-Dade County State Attorney, stated, “Guns plus drugs always equal violence and death. That’s why such multi-agency law enforcement efforts are important. Every illegal gun dealer and drug dealer we get off the streets of Miami Gardens means less violence for the city’s citizens. Every member of our law enforcement community is committed to that essential goal.”
ATF Special Agent in Charge Hugo J. Barrera stated, “The citizens of the City of Miami Gardens can breathe a little easier tonight. Violence should never become the order of the day. The message is clear; if you choose to use a firearm to inflict violence on the innocent people of this or any other community in South Florida, you will be dealt with swiftly. Together with this seamless integration of federal, state and local law enforcement we can ensure solid investigations, successful prosecutions and long stays in prison for these predators.”
DEA Special Agent in Charge Mark R. Trouville stated, “Whenever money and drugs come together, violence will follow. Where drug trafficking is rampant, neighborhoods can become a war zone bringing havoc to its residents. The DEA is committed to working with the ATF and our local partners to remove these violators off our streets and make our communities safe and drug free.”
Matthew Boyd, Chief of the Miami Gardens Police Department, stated, “The Miami Gardens Police Department has been extremely successful in reducing crime over the last five years. This success continues to create a safer environment for our residents and is a direct result of the cooperation and partnerships at the State and Federal level as evidenced in this multi-agency operation.”
“It is due to Operations like Smoking Gun that the partnership of federal and local law enforcement agencies come together to share resources and remove dangerous criminals off of our streets,” said Neil DeSousa, Acting U.S. Marshal. “The U.S. Marshals Service remains dedicated to this intensive effort, today the City of Miami Gardens is safer because of the commitment by all of the criminal investigators and officers that led this proactive Operation over the course of the year.”
In February 2010, Operation Smoking Gun I, which targeted gang and gun crime in Broward County, resulted in federal charges against 33 defendants with firearm, narcotics, and other offenses. In addition, 63 defendants were separately charged by the Broward County State Attorney’s Office with narcotics and firearm violations.
Then, in July 2011, Operation Smoking Gun II, focusing on Palm Beach County, resulted in federal firearm and narcotics charges against 49 defendants. Of those 49 charged federally, many were felons in possession of a firearm. In addition, approximately 58 defendants were charged separately by the Palm Beach County State Attorney’s Office with narcotics and firearm violations.
U.S. Attorney Ferrer thanked the many law enforcement agencies involved in this Organized Crime Drug Enforcement Task Force (OCDETF)/ South Florida High Intensity Drug Trafficking Area Task Force (HIDTA) operation. In particular, Ferrer thanked the Miami-Dade County State Attorney’s Office, and the agents, detectives and police officers from ATF, DEA, the U.S. Marshal’s Service, and the Miami Gardens Police Department, for their concerted efforts during this long-term investigation. Ferrer also thanked the Miami-Dade Police Department, City of Miami Police Department, City of Aventura Police Department, Florida Department of Law Enforcement, Hialeah Police Department, the Palm Beach Sheriff’s Office, and the Broward Sheriff’s Office for their assistance in this matter. The federal cases resulting from Operation Smoking Gun III are being prosecuted by Assistant U.S. Attorney Bruce Brown. The state cases are being prosecuted by Miami-Dade County Assistant State Attorney Frank Ledee.
Operation Smoking Gun III is the result of an ongoing OCDETF joint investigation. 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.
The South Florida HIDTA was established in 1990. This program, made up of federal, state and local law enforcement agencies, fosters intra-agency cooperation among law enforcement agencies in South Florida and involves them in developing a strategy to target the region’s drug-related threats to public safety. The South Florida HIDTA uses the funding provided by the Office of National Drug Control Policy (ONDCP) that sponsors a variety of law enforcement initiatives that target the region’s illicit drug threats.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
Attachments:
Operation Sledgehammer Defendant List (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.
Twelve Defendants Sentenced for Murder/Marijuana Grow House ConspiracyRead 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 J.D. Patterson, Director, Miami-Dade Police Department, announced the sentencings of defendants Derrick Santiesteban, of Miami, Juan Felipe Castañeda, of Miami, Alexander Santiesteban, of Miami, German Silvestro, of Miami, David Silva, of Miami, Francisco Javier Diaz, of Miami-Dade, Alejandro Pimentel, of Miami, John Villalonga, of Miami-Dade, Raul Fabian Ramirez, Jr., of Miami, Yadira Santiesteban, of Miami, Dayana Castellanos, of Miami, and Estrella J. Mijares, of Miami, before U.S. District Judge K. Michael Moore.
According to court documents, the defendants operated an extensive network of hydroponic marijuana grow houses throughout South Florida. In 2009, a large quantity of marijuana belonging to the organization was stolen. Members of the organization set out to find the people responsible for the theft. On June 28, 2009, Derrick Santiesteban, Gilberto Santiesteban, Jr., Norge Manduley, and Juan Felipe Castañeda kidnapped the individual who they thought was responsible for the theft of the marijuana. During the abduction, the individual was shot and killed.
Derrick Santiesteban was sentenced to life in prison on charges of drug, money laundering, and kidnapping with death resulting.
Juan Felipe Castañeda was sentenced to 360 months in prison, to be followed by 5 years of supervised release, on charges of conspiracy to possess with the intent to distribute marijuana.
Alexander Santiesteban was sentenced to 262 months in prison, to be followed by 5 years of supervised release, on charges of conspiracy to possess one thousand (1,000) or more marijuana plants with the intent to distribute and conspiracy to commit money laundering.
German Silvestro was sentenced to 144 months in prison, to be followed by 5 years of supervised release. David Silva, Francisco Javier Diaz, Alejandro Pimentel, and John Villalonga were each sentenced to 120 months in prison, to be followed by 5 years of supervised release. Raul Fabian Ramirez, Jr. was sentenced to 46 months in prison, to be followed by 2 years of supervised release. Each of these defendants previously pled guilty to Count 1 of the indictment, charging them with conspiracy to possess 1,000 or more marijuana plants with the intent to distribute.
Yadira Santiesteban was sentenced to 70 months in prison, to be followed by 3 years of supervised release. Dayana Castellanos was sentenced to 37 months in prison, to be followed by 2 years of supervised release. Estrella J. Mijares was sentenced to 37 months in prison, to be followed by 1 year of supervised release. Each of these defendants pled guilty to one count of conspiracy to commit money laundering.
In addition, the following individuals previously pled guilty and are awaiting sentencing:
Gilberto Santiesteban, Jr., of Miami, previously pled guilty to conspiracy to possess with the intent to distribute marijuana, conspiracy to commit money laundering, and conspiracy to commit kidnapping (Counts 1, 2, and 3). Sentencing is scheduled for July 18, 2013 at 2:00 p.m. before U.S. District Judge K. Michael Moore. At sentencing, the defendant faces a minimum mandatory term of 10 years in prison, and a maximum term of up to life imprisonment for Count 1; a maximum term of 20 years in prison for Count 2; and a maximum term of up to life in prison for Count 3.
Darvis Santiesteban, of Miami, previously pled guilty to Counts 1 and 2 of the indictment. Count 1 charged him with conspiracy to possess one thousand (1,000) or more marijuana plants with the intent to distribute and Count 2 charged him with conspiracy to commit money laundering. Sentencing is scheduled for July 18, 2013 at 2:00 p.m. before U.S. District Judge K. Michael Moore. At sentencing, the defendant faces a minimum mandatory term of 10 years in prison, and a maximum term of up to life imprisonment on Count 1; and a maximum term of 20 years in prison on Count 2.
Gilberto Santiesteban, Sr., of Miami, previously pled guilty to Count 1 of the indictment charging him with conspiracy to possess 1,000 or more marijuana plants with the intent to distribute. Sentencing is scheduled for July 18, 2013 at 2:00 p.m. before U.S. District Judge K. Michael Moore. At sentencing, the defendant faces a minimum mandatory sentence of 10 years in prison, and a possible maximum term of up to life in prison.
Norge Manduley, of Hialeah, was convicted at trial of one count of conspiracy to possess less than one hundred (100) marijuana plants with the intent to distribute. Sentencing is scheduled for July 30, 2013 before U.S. District Judge K. Michael Moore. At sentencing, Manduley faces a statutory maximum sentence of up to 20 years imprisonment.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, and Miami-Dade Police Department. The case is being prosecuted by Assistant U.S. Attorneys William Athas and Pat Sullivan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Health Care Clinic Director Sentenced in Miami to 111 Months for His Role in $63 Million Health Care Fraud SchemeRead the Press Release
A former health care clinic director and licensed therapist was sentenced in Miami to 111 months in prison today in connection with a health care fraud scheme involving defunct health provider Health Care Solutions Network Inc. (HCSN).
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; Michael B. Steinbach, Special Agent in Charge 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.
Paul Thomas Layman, 66, of Miami, pleaded guilty on March 7, 2013, to conspiracy to commit health care fraud.
During the course of the conspiracy, Layman was employed as a substance abuse counselor, therapist and clinical director of HCSN’s Partial Hospitalization Program (PHP). A PHP is a form of intensive treatment for severe mental illness.
HCSN of Florida (HCSN-FL) operated community mental health centers at three locations. During his employment, Layman worked full time at all HCSN-FL locations in various capacities. According to court documents, Layman 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. Layman also knew that many of the ALF referral patients were ineligible for PHP services because many patients suffered from mental retardation, dementia and Alzheimer's disease.
Court documents reveal that Layman 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 and were utilized to support false and fraudulent billing to government sponsored health care benefit programs, including Medicare and Florida Medicaid. During his employment at HCSN-FL, Layman signed fabricated PHP therapy notes and other medical records used to support false claims to government sponsored health care programs.
HCSN of North Carolina (HCSN-NC) operated one location in Hendersonville, N.C. At HCSN-NC, Layman served as the clinical director and assisted HCSN owner Armando Gonzalez in obtaining necessary licensing, credentials and Medicare authorizations for HCSN-NC. According to court documents, from 2008 through 2009, Layman purportedly supervised the therapists within the HCSN-NC PHP, including Alexandra Haynes, who was an unlicensed therapist purportedly performing PHP therapy to HCSN-NC patients. Gonzalez and Haynes were sentenced to 168 months and 70 months, respectively, in prison.
According to court documents, from 2004 through 2011, HCSN billed Medicare and the Florida Medicaid program approximately $63 million for purported mental health services.
This case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division's Fraud Section and the U.S. Attorney's Office for the Southern District of Florida. The cases are being prosecuted by Trial Attorney Allan J. Medina and Special Trial Attorney William J. Parente 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 & 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.
Two Miami-Dade Residents Charged in Tax Preparation Fraud SchemeRead 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), announced the filing of a 30-count indictment charging defendants Rigoberto Cabrera, 37, and Carlos Perez, 34, both of Miami-Dade County, in a tax preparation fraud scheme. Defendant Perez had his initial appearance on May 16, 2013 in Ft. Lauderdale before U.S. Magistrate Judge Andrea M. Simonton. Defendant Cabrera is expected to make his initial appearance tomorrow at 11:00 a.m. in Ft. Lauderdale before Chief U.S. Magistrate Judge Barry S. Seltzer.
Specifically, each defendant is charged with one count of conspiracy to defraud the government with respect to claims, in violation of Title 18, U.S.C. Section 286; and one count of conspiracy to commit wire fraud, in violation of Title 18, U.S.C. Section 1349. Defendant Cabrera is also charged with 18 counts of making false claims to the IRS, in violation of Title 18, U.S.C. Section 287; four counts of wire fraud, in violation of Title 18, U.S.C. Section 1343; one count of conspiracy to commit money laundering, in violation of Title 18, U.S.C. Section 1956(h); and four counts of money laundering, in violation of Title 18, U.S.C. Section 1956(a)(1)(B)(i). Defendant Perez is charged with 11 counts of making false claims to the IRS, in violation of Title 18, U.S.C. Section 287; and two counts of wire fraud, in violation of Title 18, U.S.C. Section 1343.
According to the indictment, defendants Cabrera and Perez recruited individuals and offered to prepare their individual income tax returns with the promise that the defendants could obtain substantial tax refunds for the taxpayers. The recruited taxpayers agreed to pay Cabrera and Perez a percentage of the refunds they received. The defendants then prepared fraudulent 2008 and 2009 federal income tax returns on behalf of the recruited taxpayers, claiming tax credits or deductions to which the taxpayers were not entitled. After the taxpayers received the fraudulent refunds from the IRS, Cabrera and Perez collected a percentage of the funds from the taxpayers through checks payable to companies that the defendants controlled and shell companies.
Through this scheme, the defendants claimed approximately $1,458,905 in tax refunds from the IRS.
If convicted, the defendants face up to ten years in prison for each count of conspiracy to defraud the government, making false claims, and conspiracy to commit money laundering; and up to twenty years in prison for each count of conspiracy to commit wire fraud, wire fraud, and money laundering.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorneys Daniel Bernstein and Alejandro O. Soto.
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.
Attorney Convicted in Multimillion-Dollar Stock FraudRead the Press Release
Attorney Mitchell J. Stein, 53, of Hidden Hills, Calif., was convicted by a jury in the Southern District of Florida for his role in operating a five-year, multimillion-dollar market manipulation and fraud scheme, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
Stein was charged in a December 2011 indictment and on May 20, 2013, he was convicted on all counts: conspiracy to commit mail and wire fraud and three counts each of mail fraud and wire fraud, each of which carries a maximum penalty of 20 years in prison; three counts of securities fraud, which each carry a maximum penalty of 25 years; three counts of money laundering, which each carry a maximum penalty of 10 years; and one count of conspiracy to obstruct justice, which carries a maximum penalty of five years in prison. Stein is being detained until sentencing, which is scheduled for Aug. 16, 2013.
According to evidence presented at trial, Stein’s wife held a controlling interest in Signalife Inc., a publicly-traded company currently known as Heart Tronics that purportedly sold electronic heart monitoring devices. Stein engaged in a scheme to artificially inflate the price of Signalife stock by creating the false impression of sales activity for Signalife. Specifically, the evidence at trial showed that Stein and his co-conspirators created fake purchase orders and related documents from fictitious customers, then caused Signalife to issue press releases and file documents with the U.S. Securities and Exchange Commission (SEC) trumpeting these fictitious sales. Evidence at trial also proved that in a further effort to create the false appearance of sales activity, Stein arranged to have Signalife products shipped to and temporarily stored with an individual who had not purchased any products.
Evidence at trial further proved that Stein disguised his selling of stock during the conspiracy by placing shares in purportedly blind trusts, and that he had a co-conspirator sell shares of Signalife stock after Stein caused false information to be disseminated to the public. Stein also caused Signalife to issue shares to third parties so that those third parties could sell the shares and remit the proceeds of those sales to Stein. From one co-conspirator alone, Stein received illicit gains of over $1.8 million.
In addition, evidence at trial proved that Stein conspired to obstruct the SEC’s investigation into Heart Tronics by testifying falsely and arranging for others to testify falsely in an effort to conceal the scheme described above.
This case was investigated by the U.S. Postal Inspection Service and the Office of the Special Inspector General for the Troubled Asset Relief Program.
This matter was referred to the Department by the SEC, which conducted a parallel investigation and in December 2011 announced the filing of a civil enforcement action against Stein and others. The Department thanks the SEC for its substantial assistance in this matter. The Department also acknowledges the substantial assistance of FINRA’s Criminal Prosecution Assistance Group.
This case is being prosecuted by Assistant Chief Albert B. Stieglitz, Jr. and Trial Attorneys Kevin B. Muhlendorf and Andrew H. Warren of the Criminal Division’s Fraud Section.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Palm Beach Gardens Man Sentenced for Committing Five Bank Robberies During 2012 Holiday SeasonRead 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, announced today’s sentencing of Crispian Carl Sprague, 38, formerly of Palm Beach Gardens. U.S. District Judge Kenneth A. Marra sentenced Sprague to 66 months in prison, to be followed by three years of supervised release, for five bank robberies he committed between November 21, 2012 and January 3, 2013. Judge Marra also ordered Sprague to pay $11,620 in restitution.
As Sprague admitted in his guilty plea, on the day before Thanksgiving, November 21, 2012, Sprague robbed the BB&T Bank in Palm Beach Gardens. Sprague approached a teller and handed her a note that demanded money and implied that he had a weapon. The teller handed Sprague the money. A few days later, on December 4, 2012, Sprague robbed the JP Morgan Chase Bank in Palm Beach Gardens. During this robbery, Sprague approached a teller and handed her a note that read: “This is a Robbery open your Drawer[.] Give me all your 100's and 50's[.] Nobody will be hurt[.] I am armed[.]” The teller handed Sprague the money. On December 20, 2012, Sprague robbed the JP Morgan Chase Bank in Jupiter, Florida. Sprague handed the teller a note that demanded money and stated that he was armed. Again, the teller complied and handed Sprague some money. On Christmas Eve, Sprague robbed the JP Morgan Chase Bank in Lake Worth, Florida. Sprague handed the teller a note demanding money and stating that he was armed. The teller complied and gave Sprague the money. On January 3, 2013, Sprague entered the TD Bank in Juno Beach, Florida. Sprague entered the bank, approached the teller, and handed the teller a note that stated: “This is a Robbery[.] No Dye Packs No Alarms[.] 100's, 50's, 20's ONLY[.] I AM ARMED[.]” The teller gave Sprague bank-owned funds.
On January 8, 2013, the note used by Sprague during the January 3, 2013 TD Bank robbery was processed by a CSI/Certified Latent Fingerprint Examiner and a partial print was located on the top area of the note. The fingerprint was subsequently positively identified as that of Crispian Carl Sprague. On January 10, 2013, Sprague was arrested at his residence.
Mr. Ferrer commended the investigative efforts of the FBI. Mr. Ferrer also thanked the Palm Beach Sheriff’s Office, West Palm Beach Police Department, Juno Beach Police Department, and Palm Beach Gardens Police Department. The case was prosecuted by Assistant U.S. Attorney A. Marie Villafaña.
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.
Eighth Individual Sentenced in Connection with Costa Rica-Based Business Opportunity Fraud VenturesRead the Press Release
Operation Had Connections to Florida, New Mexico, Colorado, Nevada, Wisconsin and Pennsylvania
Sean Rosales, a dual United States and Costa Rican citizen, was sentenced today in connection with a series of business opportunity fraud ventures based in Costa Rica, the Justice Department and the U.S. Postal Inspection Service announced today. Rosales was sentenced by U.S. District Court Judge Ursula M. Ungaro in Miami to 97 months in prison and 5 years supervised release. Rosales was also ordered to pay more than $7.3 million in restitution.
On March 20, Rosales pled guilty to one count of an indictment pending against him, charging conspiracy to commit mail and wire fraud. Rosales was arrested in Chicago, Illinois late last year following his indictment by a federal grand jury in Miami on Nov. 29, 2011. The indictment alleged that Rosales and his co-conspirators purported to sell beverage and greeting card business opportunities, including assistance in establishing, maintaining and operating such businesses. The charges form part of the government’s continued nationwide crackdown on business opportunity fraud.
Prior to Rosales’ sentencing today, eleven other individuals were charged in connection with business opportunity fraud ventures based in Costa Rica. Rosales is the eighth of those individuals to be convicted and sentenced in the United States.
“Fraudulent business opportunity sellers must realize that financial fraud victimizing Americans will be prosecuted vigorously, even if the fraudsters conduct their operations from abroad,” said Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida. “Increased international law enforcement cooperation eliminates safe havens for those who seek to cheat Americans from overseas.”
“Many Americans dream of owning and operating their own small business, but fraud schemes such as the one perpetrated by this defendant can turn that dream into a nightmare,” said Stuart F. Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division. “The Department of Justice will continue to be aggressive in prosecuting those who take advantage of innocent, hardworking Americans through business opportunity fraud.”
Beginning in May 2005, Rosales and his coconspirators fraudulently induced purchasers in the United States to buy business opportunities in USA Beverages Inc., Twin Peaks Gourmet Coffee Inc., Cards-R-Us Inc., Premier Cards Inc., The Coffee Man Inc., and Powerbrands Distributing Company. The business opportunities cost thousands of dollars each, and most purchasers paid at least $10,000. Each company operated for several months, and after one company closed, the next opened. The various companies used bank accounts, office space and other services in the Southern District of Florida and elsewhere.
Rosales, using aliases, participated in a conspiracy that used various means to make it appear to potential purchasers that the businesses were located entirely in the United States. In reality, Rosales operated out of Costa Rica to fraudulently induce potential purchasers in the United States to buy the purported business opportunities.
The companies made numerous false statements to potential purchasers of the business opportunities, including that purchasers would likely earn substantial profits; that prior purchasers of the business opportunities were earning substantial profits; that purchasers would sell a guaranteed minimum amount of merchandise, such as greeting cards and beverages; and that the business opportunity worked with locators familiar with the potential purchaser’s area who would secure or had already secured high-traffic locations for the potential purchaser’s merchandise stands. Potential purchasers also were falsely told that the profits of some of the companies were based in part on the profits of the business opportunity purchasers, thus creating the false impression that the companies had a stake in the purchasers’ success and in finding good locations.
The companies employed various types of sales representatives, including fronters, closers and references. A fronter spoke to potential purchasers when the prospective purchasers initially contacted the company in response to an advertisement. A closer subsequently spoke to potential purchasers to finalize deals. References spoke to potential purchasers about the financial success they purportedly had experienced since purchasing one of the business opportunities. The companies also employed locators, who were typically characterized by the sales representatives as third parties who worked with the companies to find high-traffic locations for the prospective purchaser's merchandise display racks.
Rosales, using aliases, was a fronter for USA Beverages, a fronter and reference for Twin Peaks, a fronter and reference for Cards-R-Us, a fronter, locator and reference for Premier Cards, a locator for Coffee Man, and a locator for Powerbrands.
Each of the companies was registered as a corporation and rented office space to make it appear to potential purchasers that its operations were fully in the United States. USA Beverages was registered as a Florida and New Mexico corporation and rented office space in Las Cruces, N.M. Twin Peaks was registered as a Florida and Colorado corporation and rented office space in Fort Collins, Colo., and Cards-R-Us was registered as a Nevada corporation and rented office space in Reno, Nev. Premier Cards was registered as a Colorado and Pennsylvania corporation and rented office space in Philadelphia, and The Coffee Man was registered as a Colorado corporation and rented office space in Denver. Powerbrands was registered as a Wisconsin corporation and rented office space in Glendale, Wisconsin and Palm Beach Gardens, Fla.
“The success of this investigation shows that the U.S. Postal Inspection Service is committed to working with the Department of Justice and our law enforcement partners, both foreign and domestically, to protect Americans from the predatory nature of business opportunity frauds,” said Ronald Verrochio, U.S. Postal Inspector in Charge, Miami Division.
Acting Assistant Attorney General Delery commended the investigative efforts of the Postal Inspection Service. The case was being prosecuted by Assistant Director Jeffrey Steger and trial attorney Alan Phelps with the U.S. Department of Justice Consumer Protection Branch.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Pill Mill Doctor/Owner Pleads Guilty to Oxycodone ConspiracyRead the Press Release
Defendant Physician Owned and Operated Pain Management Clinic
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), Miami Field Office, and Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, announced that Dr. Stephen Anthony, 64, of Davie, Florida, pled guilty to conspiring to distribute and dispense large amounts of oxycodone without a legitimate medical purpose and outside the usual course of professional practice. Dr. Anthony also pleaded guilty to money laundering and income tax evasion. Anthony faces a maximum term of imprisonment of five years on the drug charge, ten years on the money laundering charge and 5 years on the tax evasion charge. The sentencing hearing is set for October 4, 2013 in front of U.S. District Judge Robert N. Scola, Jr.
According to the terms of the plea agreement, Anthony has agreed to forfeit $338,300 in money and property representing proceeds he earned and laundered as a result of his involvement as a physician at Broward Urgent Care in Fort Lauderdale. As set forth in the plea agreement, between April 2010 and February 2011, Anthony was employed as a clinic doctor at Broward Urgent Care which, at the time, was had previously been owned by co-conspirators, Vincent Colangelo and Nicholaus Thomas. Colangelo pleaded guilty to narcotics, money laundering and federal income tax offenses on April 2, 2012, arising from his ownership of six pill mill clinics and a pharmacy in Broward and Miami-Dade Counties. Thomas pleaded guilty on November 18, 2011 to narcotics and money laundering charges. Colangelo and Thomas sold Broward Urgent Care to Anthony after the Florida legislature enacted legislation in October 2010 requiring that pain management clinics be owned by licensed physicians. According to a review of medical records, while at Broward Urgent Care, Anthony wrote 12,510 prescriptions for oxycodone and 5,776 prescriptions for Xanax, and more than 99% of Anthony’s patients received prescriptions for oxycodone. In total, Anthony prescribed 42,374,370 milligrams of oxycodone during the ten months he worked as a physician at Broward Urgent Care.
Between 2000 and 2007, Anthony evaded the payment of approximately $556,262 in individual income and employment taxes. According to the plea agreement, Anthony evaded taxes by depositing monies into a bank account in the name of a third party. Instead of paying taxes, Anthony purchased thousands of dollars in personal items including jewelry and automobiles. Anthony also laundered approximately $581,761 in illegal narcotics proceeds generated from Broward Urgent Care between October 15, 2010 and February 22, 2011.
U.S. Attorney Wifredo A. Ferrer stated, “We will continue to investigate and aggressively prosecute physicians like Dr. Anthony, who illegally prescribed prescription pain killers from his pill mill clinic without regard for the safety and well-being of his patients or our community. We are committed to prosecuting unscrupulous doctors, clinic owners, or other operators who deal drugs while hiding behind a medical license.”
Michael J. DePalma, Acting Special Agent in Charge, IRS Criminal Investigation, stated, “IRS Special Agents are experts at following the money trail to ensure that income from legal or illicit sources is properly reported. Dr. Anthony’s guilty plea to tax evasion and money laundering charges, in conjunction with the forfeiture of his ill-gotten assets, sends a clear message that law-breakers will not be allowed to enjoy the fruit of their crimes.”
DEA Special Agent in Charge Mark R. Trouville stated, “This is a great example of where the road leads to for pill mill doctors. Due to these investigations, Florida doctors are no longer among the top oxycodone purchasers in the United States. The DEA will continue to work with our law enforcement partners to investigate those who look to prosper from the diversion of powerful prescription medicines and to ensure public safety.”
Vincent Colangelo was sentenced on June 29, 2012 to twenty years in prison, to be followed by three years of supervised release. Nicholaus Thomas was sentenced on May 23, 2012 to ten years in prison, to be followed by three years of supervised release.
Mr. Ferrer thanked the DEA, IRS-CI and the Broward Sheriff’s Office, as well as the many other state and local agencies for their investigative work. This case is being prosecuted by Assistant U.S. Attorney Scott Behnke and Tax Division Trial Attorney Greg Tortella.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Defendant Pleads Guilty to Armored Truck RobberyRead 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 John E. Brooks, Chief, Sunrise Police Department, announced today the guilty plea of defendant Christopher Ferguson, 40, of Plantation, in connection with an armored truck robbery resulting in the theft of $280,000 and a shootout outside the Space Coast Credit Union in Sunrise, Florida.
More specifically, Ferguson pled guilty to the Hobbs Act, in violation of Title 18, United States Code, Section 1951(a). Sentencing has been scheduled for July 29, 2013 at 1:15 p.m. before U.S. District Judge William P. Dimitrouleas. At sentencing, Ferguson faces a maximum statutory sentence of up to twenty (20) years in prison on the robbery count, as well as up to three (3) years of supervised release, up to a $250,000 fine, and mandatory restitution.
As alleged in the Indictment and statements made in court, on January 17, 2013, a Brinks armored truck arrived at the Space Coast Credit Union in Sunrise, Florida to make a delivery of United States currency. As the Brinks courier exited the truck and approached the front door of the bank, two masked subjects exited a stolen white Honda that was parked at the bank. Both subjects thereafter ran toward the courier, one of whom was pointing what appeared to be a handgun directly at the guard. One subject ordered the Brink’s courier to the ground and the courier put his hands up and laid down on the ground. At that point, one robber tried unsuccessfully to take the courier’s firearm while the other subject grabbed a bag belonging to Brinks and destined for delivery to the credit union, which contained approximately $280,000. Moments later, both subjects ran back to the stolen Honda. This entire robbery was recorded on bank surveillance video.
Furthermore, according to statements made in court, as the subjects entered the Honda, the Brinks driver and the courier who had just been robbed, discharged their firearms multiple times at the subjects and their white Honda as they fled the scene. Ultimately, numerous rounds struck and penetrated their vehicle, which exited the bank parking lot. Law enforcement responded to the location of the abandoned Honda and observed that the vehicle had sustained damage from multiple gun shots. A subsequent search of the stolen vehicle revealed the presence of blood located on the driver’s seat and floorboard area. Law enforcement swabbed the blood and submitted the unknown DNA to the FBI Laboratory. Ultimately, the unknown DNA sample was identified as belonging to Christopher Ferguson.
The second robber remains at large. If anyone has information about the whereabouts of the second individual or this investigation, contact the Miami FBI at 305-944-9101.
Mr. Ferrer commended the investigative efforts of the FBI, the Sunrise Police Department, the South Florida Violent Crime Fugitive Task Force and the Broward County Sheriff’s Office. This case is being handled by Assistant U.S. Attorneys Marc Anton and Mark Dispoto.
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.
Bar Club Operators Sentenced in South Beach “B-Girls” Private Clubs 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, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, and Raymond A. Martinez, Chief, Miami Beach Police Department, announced the sentences of two individuals who were convicted of various fraud charges in connection with the South Beach “B-Girls” fraud scheme.
U.S. District Judge Robert M. Scola sentenced Albert Takhalov, 31, of Sunny Isles Beach, to 12 years in prison, and Isaac Feldman, 51, of Sunny Isles Beach, to 8 years and 4 months in prison. A third defendant convicted at trial, Stanislav Pavlenko, 41, of Aventura, is scheduled to be sentenced on May 31, 2013.
Takhalov, Feldman, and Pavlenko were convicted on December 20, 2012, of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349; and conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956 (h). Pavlenko and Takhalov were also convicted of various substantive wire fraud counts, in violation of Title 18, United States Code, Section 1343. Additionally, Takhlaov was convicted of conspiracy to defraud the U.S. Department of Homeland Security and U.S. Customs and Border Protection, in violation of Title 18, United States Code, Section 371. Kristina Takhalov pled guilty in the middle of trial to substantive wire fraud counts. Siavash Zargari, 48, of Miami Beach was acquitted. Last year, a total of nineteen defendants were charged in this fraud conspiracy. Thirteen defendants pled guilty before trial. One defendant, Andrejs Romanovs, remains a fugitive.
According to evidence presented at trial, the defendants were the organizers and investors in a criminal organization, which owned and operated numerous private clubs in South Beach. The organization brought Eastern European women into the United States illegally to work as “Bar Girls” or “B-Girls,” to lure out-of town businessmen and tourists from legitimate South Beach clubs to the defendants’ private clubs.
According to testimony and other evidence presented at trial, the defendants would charge the victims exorbitant prices for bottles of alcohol in as many as six private clubs. After the victims were either drugged without their knowledge or too intoxicated to understand what was happening, the B-Girls would order bottles of wine or champagne, make unauthorized charges on the victims’ credit cards and sometimes even forge the victims’ signatures. In order to pay the B-Girls who were illegally working, the defendants set up shell companies to conceal profits and salary payments from their criminal enterprise.
Mr. Ferrer commended the investigative efforts of the FBI, the Miami Beach Police Department, and ICE’s Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorneys Richard D. Gregorie and Michael Thakur and Department of Justice Trial Attorney Clay Porter.
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.
Thirty-three Defendants Charged in Staged Automobile Accident SchemeRead the Press Release
92 defendants have been charged to date in Operation Sledgehammer I-VI
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, 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), Jeff Atwater, Florida Chief Financial Officer, and Dave Aronberg, State Attorney, Office of the State Attorney for Palm Beach County, announced the unsealing of a federal indictment and three separate criminal Informations charging thirty-three (33) defendants, including doctors, licensed professionals and clinic owners, for their participation in a massive staged automobile accident scheme based in Palm Beach and Miami-Dade Counties, Florida. Of the 33 defendants charged, 26 were arrested or are expected to surrender. Four of the defendants are known to have fled to Cuba, with an additional three of the defendants have not been located at this time and are considered fugitives.
The charges announced today are the culmination of a three-year joint federal and state law enforcement investigation, dubbed Operation Sledgehammer, into a series of chiropractic clinics that were allegedly involved in staged accidents and filing false insurance claims. Starting with Operation Sledgehammer I in June 2011 and including the defendants charged today in Operation Sledgehammer VI, 92 defendants have been charged for their participation in this automobile insurance fraud scheme. Of those 92 defendants, 56 have been charged federally by the U.S. Attorney’s Office, resulting in court-ordered restitution of more than $5 million to the defrauded insurance companies. Thirty-six defendants have been charged by the Palm Beach County State Attorney’s Office.
Operation Sledgehammer VI, announced today, has resulted in a Second Superseding Indictment and three separate criminal Informations charging 33 defendants. The Second Superseding Indictment charges 30 individuals, including ring leaders Vladimir Lopez and Lazaro Vigoa Mauri, with conspiracy to commit and substantive mail fraud (Counts 1–91), conspiracy to commit and substantive money laundering (Counts 92-153), and conspiracy to and actual structuring of financial transactions (Counts 154-183). The indictment also seeks the forfeiture of proceeds of the fraud, including $714,621 in currency, and any real or personal property derived from the fraud. Attached is a list of all defendants charged in the Second Superseding Indictment, including their names, ages, and cities of residence. In addition, defendants Lawrence Schechtman, 45, Parkland, Olinda Rodriguez, 39, West Palm Beach, and Iris Roca, 41, of Davie, were charged in three separate Informations for their participation in staged accident fraud schemes. These three defendants will be surrendering to the court.
U.S. Attorney Wifredo A, Ferrer stated, “Staged accident automobile insurance fraud is not a victimless crime. Rather, it affects every driver in Florida, as fraud inevitably causes our insurance rates to rise. Worse still, staged accidents make our streets more dangerous and distract police from answering legitimate distress calls. We hope that this continued operation will send a message to those who seek to line their pockets through fraud. Together with our federal and state law enforcement, regulatory and private industry partners, we will find you, we will prosecute you, we will take away your ill-gotten money, and you will face substantial prison time.”
“If you get upset about your car insurance premiums going up, this crime is one of the reasons why,” said William J. Maddalena, Assistant Special Agent in Charge of FBI Miami. “Every time an insurance payout is made for a staged accident in Florida, we all feel the pain in the pocketbook. The FBI and our partners with the Greater Palm Beach Health Care Fraud Task Force will continue to use all investigative techniques to bring to justice those responsible for this type of fraud.”
“Consistently, law-breakers try to hide their crimes by laundering their ill-gotten gains and by structuring financial transactions to avoid detection by law enforcement. Today’s indictment reflects the futility of that strategy,” said IRS-CI Acting Special Agent in Charge Michael J. DePalma. “By following the money trail, IRS-CI agents will continue to aggressively target these defendants’ finances and their freedom.”
“These staged accidents are the lifeblood of Personal Injury Protection (PIP) fraud, which has cast a shadow over Florida’s roads,” Florida Chief Financial Officer Jeff Atwater said. “Every Florida family is negatively affected by these fake crashes in the form of high auto insurance premiums. I am proud of the collaborative efforts across local, state and federal agencies to put these criminals behind bars.”
According to the charging documents, between approximately October 2006 and December 2012, the defendants staged automobile accidents and thereafter caused the submission of false insurance claims through chiropractic clinics they controlled. To execute the scheme, the true owners of the chiropractic clinics allegedly recruited individuals, who had the medical or chiropractic licenses required by the state to open a clinic, to act as “nominee owners” of the clinics. The defendants also recruited individuals, whom they referred to as “Perro” and “Perra,” to participate in the accidents, and others to help the clinics launder the insurance proceeds. The defendants also hired complicit chiropractors and therapists who prescribed and billed for unnecessary treatments and/or for services that had not been rendered. Thereafter, complicit clinic employees prepared and submitted claims to the automobile insurance companies for payment for these unnecessary or non-rendered services. Twenty-one clinics participated in this scheme. A list of these clinics is attached to this release.
If convicted, the defendants face the following possible maximum statutory sentences: 20 years in prison for conspiracy to commit mail fraud, substantive mail fraud, and conspiracy to commit money laundering; 20 years for each count of substantive money laundering; 5 years for conspiracy to structure financial transactions, and 10 years for structuring financial transactions involving more than $100,000 in one year. Restitution to the victims of the offenses is mandatory.
Mr. Ferrer commended the efforts of the FBI, IRS-CI, the Florida Department of Insurance Fraud, the Palm Beach County State Attorney’s Office, and the Greater Palm Beach County Health Care Fraud Task Force for their outstanding work in this case. Mr. Ferrer also recognized the National Insurance Crime Bureau (NICB) for its collaboration and assistance in this investigation. Mr. Ferrer thanked the U.S. Marshal’s Service and Customs and Border Protection for their assistance in today’s arrests. The federal cases are being prosecuted by Assistant U.S. Attorney A. Marie Villafaña and the state cases are being prosecuted by the Palm Beach County State Attorney’s Office.
An indictment or Information is only an accusation and a defendant is presumed innocent until proven guilty.
Attachments:
Operation Sledgehammer Defendant List (PDF)
Operation Sledgehammer Clinics List (PDF)A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Mayor of Hialeah and Wife Charged with Tax FraudRead 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 Alysa Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s, Homeland Security Investigations (ICE-HSI), Miami Field Office, announced the indictment of Julio Robaina, 48, and his wife, Raiza Villacis Robaina, 39, both of Hialeah, for criminal tax offenses and making false statements to federal agents.
The indictment charges both defendants with one count of conspiring to defraud the United States for the purpose of impeding, impairing, obstructing, and defeating the lawful governmental functions of the Internal Revenue Service in the ascertainment, computation, assessment, and collection of federal income taxes, in violation of 18 U.S.C. § 371 and two counts of making and subscribing false tax returns, in violation of 26 U.S.C. § 7206(1). In addition, the indictment charges Julio Robaina with two counts of making false representations to federal agents, in violation of 18 U.S.C. § 1001(a)(2). The indictment also charges Raiza Villacis Robaina with one count of making a false representation to federal agents, in violation of 18 U.S.C. § 1001(a)(2).
According to the indictment, the manner and means by which the defendants sought to defraud the United States included conducting financial transactions in a manner that would conceal their true nature, concealing information from their tax return preparer, subscribing to false tax returns, and making false representations to federal agents. The indictment alleges that both defendants subscribed to personal income tax returns that falsely understated their total income and that defendant Julio Robaina also subscribed to corporate income tax returns that falsely overstated losses incurred. The indictment specifically alleges that the defendants subscribed to false personal income tax returns for tax years 2005 through 2007 and that Julio Robaina subscribed to false corporate income returns for tax years 2005 through 2007. Julio Robaina served as the mayor of Hialeah from December 2005 until May 2011.
United States Attorney Wifredo A. Ferrer stated, “Our citizenship comes with many privileges, but also with attendant duties and responsibilities. Among those duties, each of us -- regardless of station or position – is required to pay our fair share of taxes. The U.S. Attorney’s Office will continue to enforce our nation’s tax laws so that honest taxpayers are not burdened by others’ failure to meet their tax obligations.”
“The tax system is built on the premise that taxpayers file accurate tax returns,” said Michael J. DePalma, Acting Special Agent in Charge of IRS-Criminal Investigation, Miami Field Office. “No one is above the law and those who willfully violate our nation's tax laws will be held accountable for their actions.”
Alysa D. Erichs, Special Agent in Charge, ICE-HSI, stated, “Elected officials and people in positions of trust are held to an even higher standard than the general public. Investigative efforts by HSI alongside our partners at the IRS to uncover this alleged tax fraud scheme highlight the collaborative effort within federal law enforcement to ensure that no one operates above the law.”
Mr. Ferrer commended the investigative efforts of IRS-CI and ICE-HSI. Mr. Ferrer also thanked the Miami-Dade Police Department and the City of Miami Police Department for their assistance on the investigation. This case is being prosecuted by Assistant U.S. Attorney Richard Gregorie and Assistant U.S. Attorney Michael Davis.
An indictment is only an accusation and the defendant is presumed innocent until proven guilty.
Attachments:
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.