Southern District of Florida
Press releases recorded for this federal judicial district.
Twenty-Four South Florida Residents Charged as Part of Nationwide Coordinated Takedown by Medicare Fraud Strike Force OperationsRead the Press Release
89 Individuals Charged Nationally for Submitting
Approximately $223 Million in Fraudulent Billing;
South Florida Responsible for more than $45,299,935 in False BillingsWifredo 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, Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Ronald Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Field Office, and Michael J. DePalma, Acting Special in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announced that twenty-four (24) South Florida residents were charged for their alleged participation in various schemes to defraud Medicare out of more than $45,299,935 million. The charges in South Florida are part of a nationwide takedown by Medicare Fraud Strike Force operations in eight cities that resulted in charges against 89 individuals, including doctors, nurses and other licensed professionals, for their alleged participation in Medicare fraud schemes involving approximately $223 million in false billings.
U.S. Attorney Wifredo Ferrer stated, “Health care fraud continues to be a drain on scarce Medicare dollars, as unscrupulous individuals insist on using the Medicare Trust Fund as their private ATMs. We are undaunted and remain committed in our resolve to help preserve and protect Medicare for those who need it – the sick, the elderly and the poor.”
“Today’s announcement marks the latest step forward in our comprehensive efforts to combat fraud and abuse in our health-care systems,” said Attorney General Holder. “These significant actions build on the remarkable progress that the HEAT has enabled us to make – alongside key federal, state, and local partners – in identifying and shutting down fraud schemes. They are helping to deter would-be criminals from engaging in fraudulent activities in the first place. And they underscore our ongoing commitment to protecting the American people from all forms of health-care fraud, safeguarding taxpayer resources and ensuring the integrity of essential health-care programs.”
“The Affordable Care Act has given us additional tools to preserve Medicare and protect the tens of millions of Americans who rely on it each day,” said Secretary Sebelius. “By expanding our authority to suspend Medicare payments and reimbursements when fraud is suspected, the law allows us to better preserve the system and save taxpayer dollars. Today we’re sending a strong, clear message to anyone seeking to defraud Medicare: You will get caught and you will pay the price. We will protect a sacred trust and an earned guarantee.”
“Today’s Medicare Fraud Strike Force takedown reminds us that South Florida remains ground zero for health care fraud. Almost one third of those charged in this eight-city operation were from the Miami area, accounting for more than $45 million in fraud,” said Michael B. Steinbach, Special Agent in Charge of FBI Miami Division. “Health care fraud is a multi-billion dollar crime problem that is not going away. The FBI is committed to rooting out health care fraud and reclaiming money that was dishonestly obtained.”
“Taxpayers expect us to work harder and smarter, and that is exactly what happened here today,” said Christopher B. Dennis, Special Agent in Charge, Office of Inspector General, U.S. Department of Health and Human Services, Miami region. “With the coordinated work of my agents and other law enforcement officials, we will not cease aggressive investigation and prosecution of those who exploit taxpayers and federal health programs. Today’s arrests clearly demonstrate our joint commitment with all our law enforcement partners to identify and rapidly address health care fraud.”
Michael J. DePalma, Acting Special in Charge for IRS-CI stated, “It is disappointing that these defendants opted for what many think is fast and easy money. But health care fraud is not a victimless crime. Health care fraud affects each of us, as tax dollars are stolen and squandered. IRS-CI will continue to lend its financial investigative expertise to ensure that fraudsters are not allowed to enjoy their ill-gotten gains. Together with our law enforcement partners we will continue to aggressively investigate health care fraud in South Florida.”
“This is what these operations are all about: coordinated takedowns such as this are at the heart of our Strike Force efforts to stop the illegal schemes that hurt victims in our communities and our government,” said USPIS Inspector in Charge Ronald Verrochio.
The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since their inception in March 2007, Strike Force operations in nine locations have charged more than 1,500 defendants who collectively have falsely billed the Medicare program for more than $5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Specifically, the South Florida cases announced as part of the nationwide Medicare Fraud Strike Force takedown include:
1.U.S. v. Emilio Amador, Cristobal Gonzalez, Eduims Mora, Jose Contreras, and Elizabeth Monteagudo,
Case No. 13-20315-CR-Lenard
Five defendants are charged with conspiracy to receive health care kickbacks and substantive counts of receiving kickbacks in connection with a federal health care program. According to the indictment, the defendants participated in a scheme involving Caring Nurse Home Health, Corp. and Good Quality Home Health, Inc. The defendants allegedly supplied patients to Caring Nurse and/or Good Quality in exchange for kickbacks and bribes. Caring Nurse and Good Quality, in turn, fraudulently billed Medicare for approximately $50 million for home health services that were not provided and/or were not medically necessary. If convicted, the defendants face up to five years for each count. This case is being prosecuted by Trial Attorney Joseph Beemsterboer of the Criminal Division’s Fraud Section2.United States v. Rafael Meana and Janet Farigola,
Case No. 13-20275-CR-Middlebrookss
Defendants Rafael Meana and Janet Farigola are charged with conspiracy to commit health care fraud and several substantive counts of health care fraud. According to the indictment, the defendants participated in a scheme involving Lord’s Medical & Rehab Center, Inc. (Lords), a medical clinic that purportedly provided Medicare Advantage beneficiaries with medical items and services. From February 2010 through July 2011, Meana and Farigola allegedly caused Lord’s to submit approximately $5,497,047 in Medicare claims falsely claiming that health care benefits and services were medically necessary and had been provided to Medicare beneficiaries. As a result of the submission of these claims, Medicare paid Lord’s approximately $2,240,134. If convicted, the defendants face up to ten years in prison for each count of health care fraud. This case is being prosecuted by Assistant U.S. Attorney Christopher Clark.3.United States v. Jose Moran, Rafael Meana, and Armando Rubio Cordero, Case No.
13-20274-CR-Graham
The defendants are charged with conspiracy to commit health care fraud and several substantive counts of health care fraud. According to the indictment, the defendants participated in a scheme involving Lord Family Services, Inc., a medical clinic that purportedly provided Medicare Advantage beneficiaries with medical items and services. From January 2010 through September 2011, the defendants allegedly caused Lord Family Services, Inc. to submit approximately $1,919,751 in Medicare claims falsely claiming that health care benefits and services were medically necessary and had been provided to Medicare beneficiaries. As a result of the submission of these claims, Medicare paid Lord Family Services, Inc. approximately $976,476. If convicted, the defendants face up to ten years in prison for each count of health care fraud. This case is being prosecuted by Assistant U.S. Attorney Christopher Clark.4.United States v. Karina Merino,
Case No. 13-20332-CR-Martinez
Defendant Karina U. Merino is charged with a single count of health care fraud in connection with her role in a massive health care fraud scheme involving Ideal Home Health, Inc. (Ideal), which submitted more than $40 million in fraudulent claims to Medicare. The Information alleges that Merino, as a nurse for Ideal, falsified patient visitation logs to reflect that home health care nursing services had been provided to beneficiaries when such services had, in fact, not been provided. Ideal fraudulently billed the Medicare program for approximately $148,000. If convicted of the health care fraud charge, Merino faces up to ten years in prison. This case is being prosecuted by Assistant U.S. Attorney Kevin J. Larsen.5. United States v. Delia Y. Chaveco and Arturo Y. Chaveco,
Case No. 13-20333-CR-Moore
Delia Y. Chaveco and Arturo Y. Chaveco (the Chavecos) were charged by Information with a single count of conspiracy to receive kickbacks in connection with a federal health care benefit program. This charge stems from the Chavecos’ role in a health care fraud scheme involving Ideal Home Health Inc. (Ideal), an agency that submitted more than $40 million in fraudulent claims to the Medicare program. The Information alleges that Ideal and other Miami-Dade area home health agencies paid the Chavecos kickbacks in exchange for recruiting Medicare beneficiaries that they later used to bill the Medicare program. If convicted, the defendants face up to five years in prison. This case is being prosecuted by Assistant U.S. Attorney Kevin J. Larsen.6. United States v. Roberto Marrero, Sandra Fernandez Viera and Enrique Rodriguez,
Case No. 13-20318-CR-Moore
In this case, the defendants are charged with conspiracy to commit health care fraud, conspiracy to receive and pay health care kickbacks, and substantive kickback charges. Defendants Roberto Marrero and Sandra Fernandez Viera were the owners and operators of Trust Care Health Services, Inc. (Trust Care), which allegedly paid kickbacks and bribes to patient recruiters and beneficiaries to obtain Medicare beneficiaries, and then submitted more than $20 million in false and fraudulent claims to Medicare, primarily for skilled nursing diabetic care and physical/occupational therapy. Defendant Enrique Rodriguez worked as a patient recruiter for Trust Care, supplying patients in exchange for kickbacks and bribes. A civil injunction is being filed under 18 U.S.C. § 1345 to restrain the defendants’ assets to satisfy restitution in the criminal matter. If convicted, the defendants face up to ten years for the health care fraud charges and five years for each count of the kickback charges. This case is being prosecuted by Trial Attorney Brendan Stewart of the Criminal Division’s Fraud Section and the civil injunction is being handled by Civil Health Care Fraud Coordinator Assistant U.S. States Attorney Mark Lavine.7. United States v. Dora Moreira, Ivan Alejo, and Hugo Morales,
Case No. 13-20298-CR-Martinez
In this case, the defendants are charged with conspiracy to commit health care fraud, conspiracy to receive and pay health care kickbacks, substantive kickback charges, conspiracy to commit money laundering, and substantive money laundering. Defendant Dora Moreira was the owner and operator of Anna Nursing Services Corp. (Anna Nursing), which paid kickbacks and bribes to patient recruiters and beneficiaries to obtain Medicare beneficiaries. Anna Nursing was paid more than $7 million for the false claims it submitted to Medicare, which claims were primarily for physical/occupational therapy. Defendant Ivan Alejo worked at Anna Nursing, and was responsible for, among other things, negotiating kickback rates and distributing kickback payments to patient recruiters on behalf of Anna Nursing. Defendant Hugo Morales worked as a physical therapist on behalf of Anna Nursing, and was responsible for, among other things, fabricating patient medical documentation. Defendant Dora Moreira laundered money for the purpose, among others, of concealing the proceeds of the fraud and the payment of kickbacks to recruiters. The Asset Forfeiture Section has obtained restraining orders on the corporate bank account and on real property that is traceable to the fraud. If convicted, the defendants face up to ten years for the health care fraud charges, five years for each count of the kickback charges, and twenty years for the money laundering charges. This case is being prosecuted by Trial Attorney Brendan Stewart of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Eloisa Fernandez of the Asset Forfeiture Section.8. United States v. Marina Sanchez Pajon and Miguel Jimenez,
Case No. 13-20299-CR-Ungaro
Defendants are charged with conspiracy to commit health care fraud, conspiracy to receive and pay health care kickbacks, and substantive kickback charges. Defendants Marina Sanchez Pajon and Miguel Jimenez were the owners and operators of Flores Home Health Care Inc. (Flores Home Health), which allegedly paid kickbacks and bribes to patient recruiters and beneficiaries to obtain Medicare beneficiaries. Flores Home Health was paid more than $8 million for the false claims it submitted to Medicare, which claims were primarily for physical/occupational therapy. The Asset Forfeiture Section has obtained seizure warrants and restraining orders on five vehicles and bank accounts containing $160,000. They have also filed lis pendens against four real properties that were purchased with proceeds of the fraud. If convicted, the defendants face up to ten years for the health care fraud charges and five years for each count of the kickback charges. This case is being prosecuted by Trial Attorney Brendan Stewart of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Timothy Abraham of the Asset Forfeiture Section.9. United States v. Miguel A. Rodriguez,
Case No. 13-20319-CR-Lenard
Defendant Miguel A. Rodriguez is charged with three counts of paying kickbacks in connection with a federal health care program. The defendant allegedly paid kickbacks and bribes to induce medical providers to refer Medicare beneficiaries to his medical company for services, including x-rays. If convicted, the defendant faces up to five years in prison for each count of the kickback charges. This case is being prosecuted by Assistant U.S. Attorney John Gonsoulin.10. United States v. Enrique Alberto Siret Rodriguez,
Case No. 13-20284-CR-Moore
Defendant Enrique Alberto Siret Rodriguez is charged with four counts of health care fraud and two counts of paying kickbacks in connection with a federal health care program. The defendant allegedly paid kickbacks and bribes to a doctor for fraudulent home health care prescriptions that could be used to fraudulently bill Medicare. If convicted, the defendant faces up to 10 years in prison for each health care fraud count and up to five years for each of the kickback counts. This case is being prosecuted by Assistant U.S. Attorney John Gonsoulin.11. United States v. Alberto Cosme Garcia,
Case No. 13-20283-CR-Ungaro
Defendant Alberto Cosme Garcia is charged with one count of health care fraud and two counts of paying kickbacks in connection with a federal health care program. The defendant allegedly paid kickbacks and bribes to a doctor for fraudulent home health care prescriptions that could be used to fraudulently bill Medicare. If convicted, the defendant faces up to 10 years in prison for the health care fraud count and up to five years for each of the kickback counts. This case is being prosecuted by Assistant U.S. Attorney John Gonsoulin.Mr. Ferrer commended the investigative efforts of the FBI, HHS-OIG, USPIS and IRS-CI.
An indictment and Information are merely charges and defendants are presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Hospital Employee and Accomplice Plead Guilty to Tax Refund Fraud Using Stolen Patient InformationRead 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), Miami Field Office, Ronald Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), and Scott J. Israel, Sheriff, Broward County Sheriff’s Office, announce that defendants Shalamar Major, 32, and Tanisha Wright, 27, both of Deerfield Beach, pled guilty yesterday in connection with a tax refund scheme that used stolen social security and other personal identifying information to file on-line tax returns claiming fraudulent tax refunds from the IRS.
More specifically, Wright was convicted of three counts of identity theft, in violation of Title 18, United States Code, Section 1028(a)(7), three counts of theft of public money, in violation of Title 18, United States Code, Section 641, one count of access device fraud, in violation of Title 18, United States Code, Section 1029(a)(3), one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A, one count of theft of mail, in violation of Title 18, United States Code, Section 1708, and one count of conspiracy to commit false claims, in violation of Title 18, United States Code, Section 286. Major was convicted of one count of unauthorized HIPAA disclosures, in violation of Title 42, United States Code, Section 1320d-6, and one count of conspiracy to commit false claims, in violation of Title 18, United States Code, Section 286.
Sentencing has been scheduled for July 22, 2013 at 8:45 a.m. before U.S. District Judge Robin S. Rosenbaum in Ft. Lauderdale. At sentencing, defendant Wright faces a maximum statutory sentence of up to ten years in prison on each of the theft of public money, access device fraud, and conspiracy to commit false claim counts, a maximum statutory sentence of up to fifteen years in prison on the identity theft counts, a maximum statutory sentence of up to five years in prison on the theft of mail counts, and a mandatory consecutive two years imprisonment on the aggravated identity theft count. Defendant Major faces a maximum statutory sentence of up to ten years in prison on each of the unauthorized HIPAA disclosure and conspiracy to commit false claims counts.
According to documents filed and statements made in court, from January through June 2012, Wright and Major possessed and used stolen personal identifying information of others to file federal income tax returns claiming tax refunds to which they were not entitled. Specifically, defendant Shalamar Major was employed as a scheduler at the Boca Raton Regional Hospital in Boca Raton, Florida. As a scheduler, she had access to personal identification information of Boca Raton Regional Hospital patients, including their names, dates of birth, social security numbers, and other sensitive personal information. In exchange for the promise of future payments, Shalamar Major unlawfully provided Tanisha Wright sensitive personal identifying information, including names, dates of birth, and social security numbers, of numerous Boca Raton Regional Hospital patients. Tanisha Wright, upon receipt of the sensitive personal identifying information of the Boca Raton Regional Hospital patients, used this information to electronically file fraudulent federal income tax returns without the knowledge or authorization of the victims and claimed refunds to which she was not entitled from the IRS.
Tanisha Wright thereafter instructed the IRS to direct-deposit the refunds onto pre-paid reloadable debit cards that were already in her possession and had been previously stolen out of the U.S. mail. Once the debit cards had been funded by the Department of the Treasury, Tanisha Wright would convert the funds on the debit cards to cash by making withdrawals at local automated teller machines or would make personal purchases at various local businesses. Once Tanisha Wright obtained cash from the fraudulently funded debit cards, she would split the proceeds with Shalamar Major. In total, at least 57 fraudulent tax returns were filed with the IRS, requesting $306,720 in federal tax refunds.
Mr. Ferrer commended the investigative efforts of IRS-CI, the U.S. Postal Inspection Service, and the Broward Sheriff’s Office. This case is being handled by Assistant U.S. Attorney Marc Anton.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Community Health Center Program Coordinator Sentenced to 70 Months for Role in $63 Million Fraud SchemeRead the Press Release
A former program coordinator at the defunct health provider Health Care Solutions Network Inc. (HCSN) was sentenced in Miami to 70 months in prison today for her role in a $63 million fraud scheme.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; 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 after sentencing by U.S. District Judge Cecilia M. Altonaga.
Dana Gonzalez, 43, of High Point, N.C., pleaded guilty on March 6, 2013, to conspiracy to commit health care fraud. In addition to the prison sentence, Gonzalez was also sentenced to three years of supervised release and ordered to pay $19,428,120 in restitution.
During the course of the conspiracy, Gonzalez was employed as a therapist and program coordinator of HCSN’s Partial Hospitalization Program (PHP). A PHP is a form of intensive treatment for severe mental illness.
According to court documents, HCSN of Florida (HCSN-FL) operated community mental health centers at two locations. Gonzalez 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.
Gonzalez admitted that she routinely fabricated medical records for purported mental health treatment that were used to support false and fraudulent claims to health care benefit programs, including Medicare and Medicaid. Gonzalez admitted that she routinely fabricated these medical records, despite knowing that many of the ALF referral patients were ineligible for PHP services because many patients suffered from mental retardation, dementia and Alzheimer's disease. Gonzalez, an unlicensed clinical social worker intern at the time, also admitted to providing unlicensed therapy to PHP patients when licensed therapists were absent.
In total, Gonzalez admitted that during her employment at HCSN, she and her co-conspirators submitted approximately $46,959,975 in false and fraudulent claims. 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 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. The case was prosecuted by Trial Attorney Allan J. Medina and former Special Trial Attorney William J. Parente of the Criminal Division’s Fraud Section. In support of the Medicare Fraud Strike Force, the FBI Criminal Investigative Division’s Financial Crimes Section has funded the Special Trial Attorney position.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and 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 Broward Residents Plead Guilty to 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 that defendants Nathaniel Troy Maye, a/k/a Troy May, 44, and Tiwanna Tenise Thomason, 40, both of Ft. Lauderdale, both pled guilty on Friday, May 10, 2013, to one count of possession of 15 or more unauthorized access devices, in violation of Title 18, United States Code, Sections 1029(a)(3) and 2, and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2.
Sentencing has been scheduled for July 19, 2013, before U.S. District Judge William J. Zloch. At sentencing, the defendants each face a maximum of up to 10 years in prison for the possession of unauthorized access devices charge, and a mandatory sentence of 2 years in prison for the aggravated identity theft charge.
According to court documents, on January 5, 2013, a cooperating source (CS) met with Thomason and Maye. During the meeting, Maye told the CS that he had a large number of stolen identities on a flash drive, and discussed using the stolen identities to file fraudulent tax returns and get refunds from those returns. On January 7, 2013, Maye gave the CS a flash drive containing 50 names, dates of birth, and accompanying social security numbers.
On January 8, 2013, the IRS executed a search warrant at Thomason’s apartment. During the search, the IRS recovered numerous electronic storage devices, including computers and flash drives. On two of the flash drives, the IRS found the personal identifying information of thousands of individuals, most of whom were from outside the state of Florida. The personal identifying information included the names, dates of birth, addresses, and social security numbers of numerous individuals.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Strider Dickson.
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 Sentenced in Conspiracy to Commit Visa FraudRead the Press Release
Wilfredo 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), announced the sentencing of three defendants who had engaged in a visa fraud case.
At today’s sentencing, that U.S. District Judge Jose E. Martinez sentenced Sarah Tipfun to 60 months in prison, to be followed by one year of supervised release. Chatchai Nakornprai, a/k/a Tony, was sentenced to 24 months in prison, to be followed by one year of supervised release. Defendant Boonting Nuampaton, a/k/a Tina, was sentenced to 18 months in prison, to be followed by 1 year of supervised release. The defendants had previously pled guilty to conspiracy to commit visa fraud and bribery, in violation of Title 18, United States Code, Section 371 and 1546, and 201(b)(1)(A).
According to the factual proffer submitted in connection with the plea, Sara Tipfun owned two Thai restaurants in the Treasure Coast and was attempting to obtain fraudulent immigration documents for her employees. During the investigation, an undercover agent (UCA) posing as a corrupt ICE agent who could fraudulently obtain and sell genuine Lawful Permanent Resident Cards (otherwise known as I-551 cards or green cards) was introduced to Tipfun.
From December 2011 to October 11, 2012, Tipfun, Nakornprai, Nuampatona and others arranged for 43 Thai nationals to meet with the UCA in an attempt to buy illegal green cards. The UCA conducted several undercover meetings with others in order to process (i.e., photograph and fingerprint) the aliens and obtain completed I-485 forms (green card applications) from them. All of these meetings were audio-recorded. During these meetings, the UCA was introduced to other restaurant owners who also participated in the scheme. Some of these owners recruited and transported aliens to and from the meetings with the UCA, helped the aliens fill out I-485 forms and gather their immigration documents, lent some of the aliens money to purchase the illegal green cards and, according to Tipfun, charged the aliens additional money on top of the price of the green card for introducing the alien to Tipfun and the UCA.
Mr. Ferrer commended the investigative efforts of ICE-HSI, ICE-ERO, U.S. Marshal’s Office, and the Florida Department of Alcohol and Tobacco. The case is being prosecuted by Assistant U.S. Attorneys Shaniek Maynard, Carmen Lineberger 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.
Previously Convicted Felon Charged in Stolen Identity Tax Refund Scheme and Possession of A FirearmRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), Michael J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), announced the indictment of David Joseph, 27, of Ft. Lauderdale, on identity theft and tax refund fraud charges and possession of a firearm by a convicted felon. Defendant Joseph made his initial appearance in federal court earlier today before U.S. Magistrate Judge Barry S. Seltzer in Ft. Lauderdale.
The indictment charges defendant David Joseph with four counts of filing false claims with the IRS, in violation of 18 U.S.C. § 287, one count of access device fraud, in violation of 18 U.S.C. § 1029(a) (3), four counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A (a) (1), and one count of possession of a firearm by a convicted felon, in violation of 18 U.S.C. §§ 922(g)(1) and 924(a)(2). The indictment also includes a forfeiture allegation, pursuant to Title 18, United States Code, Section 924(d)(1).
According to the affidavit filed in support of the criminal complaint, on April 25, 2013, USSS and IRS-CI agents executed a search warrant at a residence in West Park, Florida, regarding possible stolen identities and tax refund fraud (SIRF) activities at the subject location. SIRF involves the unauthorized use of victims’ identities and personal information to file fraudulent tax returns requesting fraudulent, refunds. During the search, the agents recovered numerous notebooks, medical printouts, IRS correspondence, prepaid debit cards, bank documents, and various other documents that contained thousands of access devices— victims’ names with corresponding social security numbers and dates of birth. A fully loaded semi-automatic MasterPiece Arms 9 mm pistol and additional ammunition belonging to defendant Joseph, a previously convicted felon, was also recovered.
If convicted, the defendant faces a maximum of five years’ in prison on each of the fraudulent claims counts, up to 10 years in prison on the access device fraud count, up to 2 years on each aggravated identity theft count, and up to 10 years in prison on the count of possession of a firearm by a convicted felon.
Mr. Ferrer commended the investigative efforts of the USSS, IRS-CI, and ATF. The case is being prosecuted by Assistant U.S. Attorney Bertha R. Mitrani.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Tax Preparer Charged with 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 Efrain Felipe, 41, of Hallandale Beach, was charged in a two count Information 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). Defendant Felipe made his initial appearance in federal court yesterday before U.S. Magistrate Judge Alicia M. Otazo-Reyes.
According to the charges, Felipe operated a tax preparation business in Broward County, and prepared fraudulent tax returns on behalf of his customers by claiming that some customers were entitled to a First Time Home Buyers Credit (FTHBC) of $7,500.00, 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.
If convicted, Felipe faces a maximum statutory sentence of up to 3 years in prison on each count. Trial has been set for June 17, 2013 before U.S. District Judge Robert N. Scola, Jr. in Fort Lauderdale.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Norman O. Hemming, III.
An Information is only an accusation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Health Care Clinic Director Pleads Guilty in Miami for Role in $63 Million Fraud SchemeRead the Press Release
A former health care clinic director and licensed clinical psychologist pleaded guilty yesterday in connection with a health care fraud scheme involving defunct health provider Health Care Solutions Network Inc. (HCSN), announced 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.
Alina Feas, 53, of Miami, pleaded guilty before U.S. District Judge Cecilia M. Altonaga in the Southern District of Florida to one count of conspiracy to commit health care fraud and one substantive count of health care fraud.
During the course of the conspiracy, Feas was employed as a therapist and clinical director of HCSN’s Partial Hospitalization Program (PHP). A PHP is a form of intensive treatment for severe mental illness. HCSN operated two community mental health centers in Florida and one community mental health center in North Carolina.
In her capacity as clinical director, Feas oversaw the entire clinical program and supervised therapists and other personnel at HCSN in Florida (HCSN-FL). Feas also conducted group therapy sessions when therapists were absent.
According to court documents, Feas was aware that HCSN-FL paid illegal kickbacks to owners and operators of assisted living facilities (ALF) in Miami-Dade County in exchange for patient referral information to be used to submit false and fraudulent claims to Medicare and Medicaid. Feas knew that many of the ALF referral patients were ineligible for PHP services because they suffered from either mental retardation, dementia or Alzheimer's disease, which are not effectively treated by PHP services.
Court documents reveal that Feas submitted claims to Medicare for individual therapy she purportedly provided to HCSN-FL patients using her personal Medicare provider number, knowing that HCSN-FL was simultaneously billing the same patients for PHP services. Feas continued to bill Medicare under her personal provider number while HCSN in North Carolina (HCSN-NC) simultaneously submitted false and fraudulent PHP claims.
Feas was aware that HCSN-FL personnel were fabricating patient medical records, according to court documents. 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 her employment at HCSN-FL, Feas signed fabricated PHP therapy notes and other medical records used to support false claims to government sponsored health care programs.
At HCSN-NC, Feas was aware that her co-conspirators were fabricating medical records to support the fraudulent claims she was causing to be submitted to Medicare. Feas was aware that a majority of the fabricated notes were created at the HCSN-FL facility for patients admitted to HCSN-NC. In some instances, Feas signed therapy notes and other medical records even though she never provided services at HCSN-NC.
According to court documents, from 2004 through 2011, HCSN billed Medicare and the Florida Medicaid program approximately $63 million for purported mental health services.
Fifteen defendants have been charged for their alleged roles in the HCSN health care fraud scheme, and 13 defendants have pleaded guilty. On April 25, 2013, Wondera Eason was convicted, following a five-day jury trial, on one count of conspiracy to commit health care fraud for her role in the scheme at HCSN. Alleged co-conspirator Lisset Palmero is scheduled for trial on June 3, 2013. Defendants are presumed innocent until proven guilty at trial.
This case was prosecuted by Trial Attorney Allan J. Medina and former Special Trial Attorney William J. Parente. 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.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and 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.
Administrator and Employee of Miami Home Health Companies Pleads Guilty for Role in $74 Million Health Care Fraud SchemeRead the Press Release
A Miami resident who was an administrator of a home health care company and was the employee of another home health care company pleaded guilty today for her participation in a $74 million home health Medicare fraud scheme, announced 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.
Myriam Acevedo, 63, pleaded guilty before U.S. District Judge Marcia G. Cooke in the Southern District of Florida to one count of conspiracy to pay health care kickbacks and two counts of payment of kickbacks in connection with a federal health care benefit program.
Acevedo was an administrator of LTC Professional Consultants Inc. and an employee of Professional Home Care Solutions Inc., Miami home health care agencies that purported to provide home health and therapy services to Medicare beneficiaries. According to court documents, Acevedo and her co-conspirators operated LTC and Professional Home Care for the purpose of billing the Medicare program for, among other things, expensive physical therapy and home health care services that were not medically necessary and/or were not provided.
According to court documents, Acevedo’s primary role in the scheme was to pay kickbacks and bribes to patient recruiters at LTC and Professional Home Care. Specifically, Acevedo conspired with patient recruiters and others for the purpose of billing the Medicare program for unnecessary home health care and therapy services. Acevedo and co-conspirators paid kickbacks and bribes to patient recruiters, who provided patients to LTC and Professional Home Care, as well as prescriptions, plans of care (POCs) and certifications for medically unnecessary therapy and home health services for Medicare beneficiaries. Acevedo and her co-conspirators used these prescriptions, POCs and medical certifications to fraudulently bill the Medicare program for home health care services, which Acevedo knew was in violation of federal criminal laws.
From approximately September 2007 to June 2012, LTC and Professional Home Care submitted approximately $41 million in claims for home health services that were not medically necessary and/or not provided, and Medicare paid approximately $27 million on those claims.
At sentencing, scheduled for July 24, 2013, Acevedo faces a maximum penalty of five years in prison for each count.
This case is being prosecuted by Assistant Chief Joseph S. Beemsterboer 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 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers. To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Three Charged with Wire Fraud in Investment SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Alysa Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), Miami Field Office, announce the arrests of defendants Anibangel Molina, 42, of New York, New York, Antonino Castro, 65, of Hialeah, Florida, and Betsy Aguiar Molina, 41, of Miami Lakes, Florida. Anibangel Molina and Antonino Castro made their initial appearances in federal court on May 6, 2013 before U.S. Magistrate Judge Alicia Otazo-Reyes. Anibangel Molina and Antonino Castro were released on bonds. Betsy Aguiar Molina had her initial appearance in federal court today and a bond hearing is scheduled before the duty magistrate court judge on May 13, 2013.
The criminal complaint, which was unsealed upon the defendants’ arrest on May 6, 2013, charges Anibangel Molina, Antonino Castro, and Betsy Aguiar Molina with conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349. If convicted, the defendants face a possible statutory maximum sentence of up to 20 years in prison.
According to the complaint, Bancard Financial Services, located in Miami, purportedly offered investment opportunities since at least 2009 through trading in precious metals, oil, and foreign exchange currency and high interest checking accounts. Anibangel Molina was the President, Betsy Aguiar Molina was the Operations Manager, and Antonino Castro was the Officer Manager of Bancard Financial Services. The complaint alleges that the defendants made false representations, failed to pay dividends to investors since at least October 2012, and allocated investor money for their personal expenses instead of purchasing the commodities or paying the interest that was promised to investors. For example, in December 2011, Anibangel Molina wrote a check from Bancard’s bank account to purchase a $59,741 2012 Range Rover Evoque as a gift for Betsy Molina.
According to the complaint, the defendants executed the scheme by soliciting investors through television commercials that advertised classes in foreign exchange currency trading in Miami. After people attended these seminars, the defendants offered to invest customers’ money in foreign currency markets, commodities, or high interest checking accounts. From November 1, 2011 through November 2012, Anibangel and Betsy Molina received at least $4 million from more than 50 individual investors. None of the defendants or Bancard Financial Services are registered or licensed to trade in commodities, securities, currency, or as a broker of these articles.
In particular, the complaint alleges that Anibangel and Betsy Molina made false representations to investors by presenting some customers with a fraudulent Certificate of Bond Coverage that falsely claimed that “Lloyds Bank of London” indemnifies Bancard Financial Services LLC against any loss to any client up to $2,200,000. The complaint also alleges that Betsy Molina falsely told at least one customer that President Obama had created a law to guarantee investments. According to the complaint, numerous investors have contacted Anibangel Molina and Antonino Castro seeking to close out their investment accounts but these defendants have not returned their money.
If anyone has information about this fraud or has been a victim of the fraud, please call the toll-free hotline at 1-866-DHS-2-ICE or complete an online tip form at http://www.ice.gov/exec/forms/hsi-tips/tips.asp.
Mr. Ferrer commended the efforts of HSI in the investigation and prosecution of this case. This case is being prosecuted by Assistant U.S. Attorney Michael Thakur.
A complaint is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
State Corrections Officer Pleads Guilty to Identity Theft ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Manuel Orosa, Chief, City of Miami Police Department, announce that Bernard Beliard, a former State Corrections Officer assigned to the South Florida Reception Center, pled guilty today before U.S. District Judge Cecilia M. Altonaga to access device fraud and aggravated identity theft, violations of Title 18, United States Code, Sections 1029(a)(3) and 1028A(a)(1). Beliard is scheduled to be sentenced on July 16, 2013 before Judge Altonaga.
According to court records, Beliard used his official law enforcement position to access personal identifying information of inmates who were checked in at the South Florida Regional Center from October, 2012 to January, 2013.
From October 24, 2012 through January 4, 2013, Beliard met with a FBI confidential human source (CHS) on four separate occasions and provided the CHS with State of Florida Department of Corrections’ daily intake lists. These lists contained the names of approximately 805 inmates, along with corresponding personal identifiers, including social security numbers and dates of birth. Beliard sold the inmates’ personal identifying information to the CHS after having been told that the information would be used to commit tax refund fraud. In exchange for the lists, Beliard accepted a total of $9,600 in cash.
Mr. Ferrer commended the investigative efforts of the FBI Miami Area Public Corruption Task Force, with the assistance of the City of Miami Police Department and the Florida Department of Corrections – Office of Inspector General (FDOC-OIG). This case is being prosecuted by Assistant U.S. Attorney Robin W. Waugh.
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 Man Sentenced on Alien Smuggling ConspiracyRead the Press Release
Eight Others Previously Sentenced for their Role in Smuggling Ring
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), announced yesterday’s sentencing of Leonardo F. Cabrera, 51, of Miami, for his role in a conspiracy to smuggle aliens from Cuba to the United States through the Bahamas for profit.
U.S. District Judge Joan A. Lenard sentenced Cabrera to 15 months in prison, to be followed by two years of supervised release. Cabrera, who pled guilty on February 25, 2013, was the last of nine defendants charged, convicted and sentenced for their respective roles in a conspiracy to smuggle more than 100 aliens from Cuba into the United States between October 2009 and January 2011.
According to court records, the following eight defendants were previously convicted and sentenced for their roles in this conspiracy:
Gerardo Columbie, 45, of Apopka, Florida, was sentenced to 54 months in prison for his role as an organizer responsible for four alien smuggling trips; Ober Merino Cruz, 41, of Apopka, Florida, was sentenced to 38 months in prison; Jorge Alberto Parrado Martinez, aka “El Chifla,” 52, of Miami, was sentenced to 42 months in prison; Francisco Maunteca Lopez, 49, of Miami, was sentenced to 54 months in prison; Lazaro De Leon Rojas, 47, of Miami, was sentenced to 27 months in prison; Yoan Francisco Parra Mosquera, 38, of Miami, was sentenced to 27 months in prison; Victoriano Del Risco, 43, of Miami, was sentenced to 24 months in prison; and Cristian Jesus Cardet Mombiela, 29, of Las Vegas, Nevada, was sentenced to seven months in prison and seven months home detention for his minor role in the conspiracy. Two defendants, Calvin Sweeting, of Andros, Bahamas, and Jose Luis Perez Garcia, of Miami, remain fugitives.
This case was the result of a three-year investigation by HSI into a smuggling operation that included four separate alien smuggling trips undertaken or planned by the defendants on October 31, 2009, March and April of 2010, June 27, 2010, and between late November 2010 and January 16, 2011. According to court records and statements made in court, the defendants were responsible for smuggling 73 aliens from Cuba into South Florida for an average fee of $10,000 per person.
Mr. Ferrer commended HSI for its extensive work on this case. The case was prosecuted by Assistant U.S. Attorney Elisa Castrolugo.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Consultant for the Florida Department of Transportation Sentenced for Accepting A BribeRead 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 DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Marlies T. Gonzalez, Special Agent in Charge, U.S. Department of Transportation, Office of Inspector General, announce today’s sentencing of defendant Ron Capobianco, Jr., 40, of Pompano Beach, FL, on charges of bribery in connection with programs receiving federal funds, in violation of Title 18, United States Code, Section 666. U.S. District Judge Robert N. Scola, Jr. sentenced Capobianco to twelve months plus one day in prison.
According to documents previously filed with the court, Capobianco, Jr. worked as a construction engineering and inspection consultant at Metric Engineering, Inc. (Metric), which specialized in the transportation industry. The Florida Department of Transportation (FDOT) contracted with Metric to provide services, including designing, inspecting, and troubleshooting the construction of roads, signs, and traffic signals. Capobianco, Jr. was assigned as the FDOT District 4 Signalization and Lighting Liaison. In this capacity, he acted as FDOT’s project manager for various signalization and lighting projects. Capobianco, Jr. had a team of employees that assisted him in supervising and inspecting contractors performing FDOT work. Because of his position and expertise, Capobianco, Jr. was consulted as an FDOT expert on certain aspects of signalization and lighting construction, including the use of video detection cameras for traffic signalization and control.
According to the documents previously filed with the court, around 2009, FDOT began a road construction project along Highway 1 in the Florida Keys (the Marathon Key project), which was designed to improve traffic flow. Capobianco Jr. agreed to accept a bribe from a subcontractor working on this project. Around May 2009, an agent of the subcontractor offered to pay a bribe to Capobianco, Jr., if the subcontractor could receive at least $25,000 for the installation of the video detection equipment.
Capobianco, Jr. agreed to the subcontractor’s $25,000 estimate for the installation of the video detection devices, thus enabling the subcontractor to make a significant profit. The subcontractor’s estimate was approved and subsequently paid by the State of Florida after the installation of the video detection equipment. Thereafter, Capobianco, Jr. met with an agent of the subcontractor in Plantation, Florida and was paid $4,000 in cash for his assistance to the subcontractor on the Marathon Key project.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, and the U.S. Department of Transportation, Office of Inspector General, in connection with the investigation of this matter. The case is being prosecuted by Assistant U.S. Attorneys Jeffrey N. Kaplan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Defendants Charged in Theft from Seminole TribeRead 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 return of a ten count indictment charging defendants Frank Excel Marley III, 39, of Miramar and Maria Hassun, 66, of Miami, with unjustly enriching themselves by stealing from the Seminole Tribe of Florida.
Specifically, both defendants are charged with one count of conspiring to commit mail and wire fraud; in violation of Title 18, U.S.C. § 1349, as well as nine counts of theft from an Indian Tribe, in violation of Title 18, U.S.C., §§ 1163 and 2.
According to the indictment, the defendants sought to enrich themselves unlawfully by defrauding the Seminole Tribe of Florida. The indictment states that from approximately October, 2006, through on or about March 3, 2011, the defendants did knowingly and willfully combine, conspire, confederate and agree to knowingly and with intent to defraud, devise and intend to devise a scheme and artifice to defraud and to obtain money from the Seminole Tribe of Florida, that is, approximately $1,033,605, by means of the United States mails and wire communications.
It is alleged that defendant Frank Excel Marley III, an attorney who was retained by the Seminole Tribe, proposed to the Tribe that they undertake a project to open radio stations at the Brighton and Big Cypress Reservations. It is further alleged that Marley retained outside law firms and vendors to assist in accomplishing the radio project and instructed co-defendant Maria Hassun, his administrative assistant, to increase the charges invoiced to the Tribe by inflating the amount of his billable hours and billing the Tribe for travel, conferences, phone calls and meetings that did not occur. The defendants submitted the monthly invoices by email, United States mail and fax to the Tribe for work purportedly done by the Marley Firm each month, which included inflated and falsified charges for the costs that had purportedly been incurred by third party consultants and law firms retained by Marley to assist him with the radio project and other matters on behalf of the Tribe.
If convicted, the defendants face a possible maximum statutory sentence of twenty years in prison for the conspiring to commit mail and wire fraud count and five years in prison for each count of theft from an Indian Tribe.
Mr. Ferrer commended the investigative efforts of the FBI and thanked the Seminole Tribe of Florida for their cooperation and assistance with the investigation. The case is being prosecuted by Assistant U.S. Attorney Neil Karadbil.
An indictment is only an accusation and a defendant is presumed innocent unless 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.
Last Defendant Sentenced in Shooting Death of Brinks Guard at Calder CasinoRead 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 Matthew Boyd, Chief, Miami Gardens Police Department, announce today’s sentencing of Reginald Mitchell, 28, of Miami Gardens, in connection with the August 21, 2011 shooting death of a Brinks guard at the Calder Casino and Race Course (Calder) in North Miami, Florida. U.S. District Judge James L. King sentenced Mitchell to 30 years in prison.
Four other defendants were sentenced previously for their participation in this crime: Vladimir Louissant was sentenced to life in prison; Uri Ammar was sentenced to life in prison; Victoria Barkley was sentenced to 10 years in prison; and Byron Kyler was sentenced to five years in prison. Louissant, Mitchell, Kyler, and Barkley pled guilty before trial. Ammar was convicted after trial on October 15, 2012.
According to documents filed with the court and evidence presented during trial, on August 21, 2011, Mitchell and Ammar conspired to rob a Brinks guard as he made a scheduled pick-up at Calder. Mitchell and Ammar both worked security at Calder, where Ammar was a Security Shift Manager. Mitchell recruited co-defendants Louissant, Barkley and Kyler. On the day of the murder, Mitchell drove Louissant to Calder in Kyler’s truck, which Kyler had falsely reported stolen.
According to the trial evidence, Ammar escorted the Brinks guard through the Calder facility and led him to an open area, where Louissant was waiting. As Ammar and the guard entered the open area, Louissant rushed at the guard, brandishing a firearm. When the guard drew his weapon, Louissant shot the guard and the two exchange gunfire. After shooting the guard, Louissant grabbed the Brinks money bag and fled to Kyler’s truck. Mitchell and Louissant then drove a short distance in Kyler’s truck, which they abandoned to be driven away from the scene by Barkley in another vehicle.
Mr. Ferrer commended the FBI and Miami Gardens Police Department for their work on this case. Mr. Ferrer also thanked the members of the FBI’s South Florida Violent Crimes and Fugitive Task Force. This case was prosecuted by Assistant U.S. Attorneys Michael Gilfarb and Seth Schlessinger.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
International Narcotics Trafficker Extradited to Face Drug Trafficking and Narco-Terrosism ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney of the Southern District of Florida, and Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, announced that Jose Evaristo Linares-Castillo, a/k/a “Don Eva,” has been extradited from Colombia to the United States.
Linares-Castillo and four co-conspirators were indicted in the Southern District of Florida for drug trafficking and money laundering activities within the Southern District of Florida. Linares-Castillo, a Colombian citizen, is designated a Consolidated Priority Organization Target (“CPOT”) by the Department of Justice, a designation given to the most significant narcotics traffickers in the world. Linares-Castillo was responsible for overseeing the manufacture and transportation of thousands of kilograms of cocaine from Apure, Venezuela to Central America and the Caribbean. Linares-Castillo used many lieutenants and independent cocaine sub-contractors to accomplish the movement of cocaine produced in his laboratories in Colombia. Based upon this investigation, Linares-Castillo’s organization maintained possession of approximately 20,000 kilograms of cocaine cached in Apure, Venezuela, near Fuerzas Armadas Revolucionarias de Colombia (the “Revolutionary Armed Forces of Colombia,” or “FARC”) controlled clandestine airstrips, where the cocaine laden aircraft were launched. Linares-Castillo was closely affiliated with CPOT Daniel Arnoldo Barrera-Barrera, a/k/a “Loco Barrera,” as well as with deceased CPOT Pedro Olivero Guerrera-Castillo, a/k/a “Cuchillo.”
Throughout the course of this investigation, agents from the DEA Miami Field Division as well as Assistant United States Attorneys for the Southern District of Florida uncovered a vast drug trafficking and money laundering network, which resulted in the identification of key members of the Linares-Castillo drug trafficking organization responsible for supplying members of the Mexico based Sinaloa Drug Cartel thousands of kilograms of cocaine in Honduras. The kilograms of cocaine were then transported to the United States, via Mexico for distribution. The proceeds from the drug trafficking venture were then repatriated to Colombia through traditional money laundering methods. Linares-Castillo was also named in an indictment returned by a federal grand jury in the Southern District of New York, charging that he conspired to import ton-quantities of cocaine into the United States, to provide material support to the FARC, and to engage in narco-terrorism.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) led by DEA. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Mr. Ferrer commended the investigative efforts of the DEA. This case is being prosecuted by Assistant U.S. Attorney Andrea Hoffman.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
United States Successful in False Claims Act Cases Against Landlords Charging Housing Choice Voucher Tenants Excess RentsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Marcia K. Cypen, Executive Director, Legal Services of Greater Miami, Inc. (LSGMI), announced the United States’ successful prosecution of several civil False Claims Act cases brought under the qui tam provisions of the False Claims Act, 31 U.S.C. §3730(b) against landlords participating in the United States Department of Housing and Urban Development’s (HUD) Housing Choice Voucher/Section 8 (HCV) Program who unlawfully received excessive rent subsidies known as Housing Assistance Payments (HAP).
Through Section 8 of the United States Housing Act of 1937, as amended, HUD distributes federal funds to local public housing agencies to assist eligible low income families in obtaining decent, safe, and sanitary housing in the private rental market. To receive federally subsidized rents, landlords participating in the HCV Program contractually agree to comply with HUD requirements, to charge only the rent authorized by the local public housing agency and to not raise rents or change lease terms without the written approval of the local public housing agency.
Two of the False Claims Act cases were originally filed by LSGMI who represented Sabrina R. Newberry and Taronda Wade, two low income tenants participating in the HCV Program administered by the Miami-Dade Public Housing and Community Development, a department of Miami-Dade County previously known as the Miami-Dade Public Housing Agency. The tenants brought the cases on behalf of the United States alleging that their landlords, the defendants, made unlawful false claims for rental subsidies by charging and accepting excessive rents, in violation of HUD rules and contractual requirements. After investigating the cases, the United States intervened in the two suits. The United States filed amended complaints asserting that the landlords violated the False Claims Act by making false statements to the County’s HCV Program and endorsing HAP rent subsidy checks for which the United States suffered damages.
1. United States of America, ex rel Sabrina R . Newberry, Relator, Plaintiffs, v. George David Horton, Defendant, Case No. 1:11-cv-20153-Graham.
According to court documents, during her brief tenancy, Newberry’s landlord, the Rev. Dr. George David Horton, collected $5,377.32 in rent from Ms. Newberry in excess of that specified in the HAP Contract and the rental agreement approved by the County’s HCV Program. A settlement was reached in this matter after the United States filed a Motion for Summary Judgment. There, the landlord who denied wrongdoing, paid to the United States $26,000 of which Ms. Newberry received, pursuant to the provisions of the False Claims Act, a Relator’s share of $5,377.32 and recovery of her legal expenses. During its investigation of the matter, the United States learned that Rev. Dr. Horton had also accepted at least $19,169.00 in excessive rents from another HCV tenant over a long period of time. In settlement of that matter, the landlord agreed to pay to the United States an additional $24,000.00.
2. United States of America, ex. rel. Taronda Wade, Relator, vs. DBS Investments, LLC, and John P. Joseph, 1:11-cv-20155-Cooke.
Court documents provide that Ms. Wade’s landlord, DBS Investments and John P. Joseph, unlawfully charged and accepted $4,398.00 more than Ms. Wade was lawfully required to pay during her tenancy. U.S. District Judge Marcia Cooke granted the United States’ motion for summary judgment in this matter and entered an award against the Defendants and in favor of the United States of $35,194.00, consisting of damages in the amount of $13,194.00 and penalties of $22,000. The Court additionally entered an award of $4,398.00 in damages, $10,470.00 in attorney’s fees and $152.35 in costs to Ms. Wade.
U.S. Attorney Wifredo A. Ferrer stated, “We will not tolerate abuse of federal housing or other programs. Schemes such as the ones uncovered in these cases steal taxpayers’ monies and often prey on those who need our assistance the most. We appreciate the actions of Legal Services of Greater Miami in bringing these cases and applaud whistleblowers for coming forward and exposing these schemes. We are pleased to return these monies to the taxpayers.”
“This is not only a legal victory for low-income tenants but also serves as a deterrent to other landlords who do not comply with federal housing requirements,” said LSGMI Senior Staff Attorney Sean Rowley. Added Mr. Rowley, “This case also illustrates how the novel use of the False Claims Act to challenge illegal conduct by landlords can be a highly effective legal strategy and can serve as precedent for other public housing tenant advocates.”
Mr. Ferrer commended LSGM and Miami-Dade Public Housing and Community Development for their assistance and investigative efforts. These cases were prosecuted by Assistant U.S. Attorney James A. Weinkle.
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 ConvictedRead the Press Release
A federal jury today convicted a Miami-area supervisor of a mental health care company, Health Care Solutions Network (HCSN), for helping to orchestrate a fraud scheme that crossed state lines and that resulted in the submission of more than $63 million in fraudulent claims to Medicare and Florida Medicaid.
The announcement was made 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 Investigation’s Miami Office.
After a five-day trial, a jury in the Southern District of Florida found Wondera Eason, 51, guilty of conspiracy to commit health care fraud. Sentencing is scheduled for July 8, 2013.
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, exported the scheme to North Carolina, opening a third HCSN location in Hendersonville.
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, which purported to support the fraudulent claims HCSN submitted to Medicare and Florida 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 Florida Medicaid. Eason directed therapists to fabricate documents, and she also forged the signature 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 Florida Medicaid program approximately $63 million for purported mental health services.
Fifteen defendants have been charged for their alleged roles in the HCSN health care fraud scheme, and 12 defendants have pleaded guilty. On Monday, Feb. 25, 2013, Gonzalez was sentenced to serve 168 months in prison for his role in the scheme. Alleged co-conspirators Alina Feas and Lisset Palmero are scheduled for trial on June 3, 2013. Defendants are presumed innocent until proven guilty at trial.
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 Attorneys Allan J. Medina and Steven Kim, 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 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and 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.
South Florida Women Sentenced in Identity Theft Tax Refund Fraud Scheme Involving the Filing of Approximately 2,000 Fraudulent Tax Returns Seeking $11 Million Dollars in RefundsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), Miami Field Office, and Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, announced the sentencing of Alci Bonannee, 36, of Fort Lauderdale, and Sonyini Clay, 40, of Miami Gardens, for their roles in an identity theft tax refund fraud scheme. Bonannee was sentenced to 317 months in prison to be followed by three years of supervised release. Clay was sentenced to 121 months in prison to be followed by three years of supervised release. Judge James I. Cohn also ordered Bonannee to pay $1,908,182 in restitution to the Internal Revenue Service.
On January 28, 2013, Bonannnee was convicted at trial of conspiracy to defraud the government with respect to claims (18 U.S.C. § 286), filing false claims (18 U.S.C. § 287), wire fraud (18 U.S.C. § 1343), and aggravated identity theft (18 U.S.C. § 1028A). On January 13, 2013, Clay pled guilty to conspiracy to defraud the government with respect to claims (18 U.S.C. § 286) and aggravated identity theft (18 U.S.C. § 1028A).
According to testimony and evidence presented at trial, Bonannee, Clay and co-defendant Chante Mozley, engaged in a large scale identity theft tax fraud scheme that operated from December 2010 through June 2012. During the course of the fraud scheme, there were approximately 2,000 fraudulent tax returns submitted to the Internal Revenue Service for payment seeking $11 million dollars in refunds. The Department of Treasury paid out approximately $3.5 million dollars into bank accounts held in the name of and controlled by the defendants, who withdrew approximately $1.9 million in cash.
According to testimony and evidence presented at trial, Bonannee filed a majority of the fraudulent tax returns from her house and other locations. Bonannee filed many of these fraudulent returns using compromised personal identification information obtained from a nurse at a local hospital. Clay filed several hundred fraudulent tax returns form her house and other locations.
On March 29, 2013, after having pled guilty to conspiracy to file fraudulent claims (18 U.S.C. § 286), U.S. District Judge James I. Cohn sentenced Mozley to 42 months imprisonment to be followed by three years of supervised release after having pled guilty to conspiracy to file fraudulent claims. Mozley was also ordered to pay restitution in the amount of $1,908,182.00 to the Internal Revenue Service.
Mr. Ferrer commended IRS-CID and USSS for their work on the case. The case is being prosecuted by Assistant U.S. Attorneys Michael N. Berger 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.
Florida Man Sentenced to 55 Months Imprisonment for Role in Health Care-Fraud and Money Remitting RingRead the Press Release
Wifredo A. Ferrer, United States Attorney of the Southern District of Florida, Addy Villanueva, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), 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 Oscar Sanchez, 47, of Naples, was sentenced to 55 months imprisonment, 20 months home confinement, and three years of supervised release for his role in a money laundering conspiracy, in violation of Title 18, United States Code, Section 1956(h). In addition, U.S. District Judge Paul Huck entered a forfeiture order that consisted of a personal money judgment against Sanchez in the amount of $10,000,000. In partial satisfaction of that judgment, Sanchez will be forfeiting to the United States four properties worth about $635,000, and $63,196, in cash. Sanchez also must perform 1,600 hours of community service during his first year after his term of imprisonment.
On August 30, 2012, Sanchez pled guilty to conspiring to launder the proceeds of health care fraud. According to court documents, Sanchez acted as a middleman between individuals engaging in health care fraud, and Caribbean Transfers, a company that remitted money from the United States to Cuba. Sanchez admitted to providing approximately $10 million in cash to individuals who defrauded the Medicare program.
Mr. Ferrer commended the investigative efforts of FDLE, FBI, and HHS-OIG in coordination with the Medicare Fraud Strike Force, for their work on this case. The case was prosecuted by Assistant U.S. Attorneys H. Ron Davidson and Eloisa Fernandez.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and 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.
Defendant Convicted in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), Miami Field Office, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce the conviction of Nael Dawud Sammour, 52, of Pompano Beach, after a three day jury trial in front of U.S. District Court Judge William P. Dimitrouleas.
More specifically, Sammour was convicted of two counts of aggravated identity theft in violation of 18 U.S.C. § 1028A, for his role in possessing and transferring the means of identification of identity theft victims in conjunction with the transfer and attempted negotiation of fraudulently obtained U.S. Treasury tax refund checks. Prior to trial, Sammour pled guilty to eight counts of theft of public money in violation of 18 U.S.C. § 641. Sentencing has been scheduled for July 1, 2013 at 1:15 P.M. in front of the Honorable William P. Dimitrouleas in Ft. Lauderdale. At sentencing, Sammour faces a maximum statutory sentence of up to ten years in prison on each of the theft of public money counts, as well as mandatory two year consecutive sentences on the Aggravated Identity Theft counts.
According to testimony and evidence presented at trial, as well as from court documents, unknown individuals used stolen identification information, including the names, dates of birth, and social security numbers of unsuspecting taxpayers to fraudulently apply for and receive U.S. tax refunds to which they were not entitled. Thereafter, Sammour obtained many of these fraudulently obtained U.S. Treasury tax refund checks and later transferred these checks, along with counterfeit driver’s licenses and Social Security cards, to undercover IRS agents posing as check cashers. In total, agents seized 75 fraudulently obtained U.S. Treasury tax refund checks totaling $750,369.45 from Defendant Sammour. Moreover, when Sammour was arrested, law enforcement located and seized $30,128.24 in U.S. currency.
Mr. Ferrer commended the investigative efforts of the IRS-CID and the FBI for their work on the case. This case is being prosecuted by Assistant U.S. Attorney Marc Anton.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Defendant Convicted in $39 Million Mortgage Fraud CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Steve Linick, Inspector General, Federal Housing Finance Agency, Office of Inspector General, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announced yesterday’s conviction of defendant Quelyory A. Rigal, a/k/a “Kelly”, of Homestead, FL, after a jury trial before U.S. District Judge William J. Zloch in Fort Lauderdale, FL. Sentencing is scheduled for July 18, 2013 at 10:30 a.m.
Rigal was originally indicted with seven other defendants in Case No. 12-60088-CR-Williams, for fraudulently obtaining mortgages for the purchase of condominium units at Marina Oaks Condominiums in Fort Lauderdale, FL. The indictment charged defendant Rigal with conspiracy to commit wire fraud and mail fraud, as well as substantive counts of wire fraud and mail fraud. Defendant Rigal was found guilty on all counts charged in the indictment. Rigal faces a maximum penalty of 30 years in prison on each count.
The other defendants were: Juan Carlos Sanchez, of New York, N.Y., Sandra P. Campo, of Colombia, Osbelia Lazardi, of Southwest Ranches, FL, Dayanara Montero, of Miramar, FL, Edward R. Mena, of Miami, FL, Celeste Mota, of Fort Myers, FL, and David Arboleda, of Doral, FL. With the exception of Rigal who proceeded to trial, all other defendants plead guilty to conspiracy to commit mail and wire fraud. Defendant Sanchez was sentenced to 180 months in prison and three years of supervised release. Defendant Mena was sentenced to 54 months in prison and three years of supervised release. Defendant Arboleda was sentenced to 30 months in prison and three years of supervised release. Defendant Montero was sentenced to 22 months in prison and three years of supervised release. Defendant Mota was sentenced to five years of supervised release. Defendants Lazardi and Campo are awaiting sentencing. The sentencings are scheduled for May 5 and May 6, 2013, respectively, before Judge Zloch in Fort Lauderdale, FL.
According to the indictment, from January 2007 through November 2008, the defendants conspired to recruit individuals who would be willing to purchase condominium units at Marina Oaks Condominiums. These buyers were promised a “buyers’ incentive,” which payment was not disclosed to the lenders or reflected on any of the closing documents. The conspirators would then prepare materially false mortgage applications for the buyers on HUD Uniform Loan Application Form 1003. These forms contained false information as to material facts regarding the borrowers’ credit worthiness in order to qualify the borrowers for mortgages to purchase the Marina Oaks Condominiums. The conspirators would allegedly also create false documents to support the mortgage applications. Once the loans closed, the conspirators would divert portions of the mortgage proceeds for their personal use and benefit. The indictment alleges that the conspirators obtained approximately $39 million in fraudulent mortgage loans at Marina Oaks, resulting in $34 million in losses to the various lenders including Fannie Mae, which reported losses over $4.1 million to date, while Freddie Mac faces potential exposure of an additional $8.5 million.
Mr. Ferrer commended the investigative efforts of the Federal Housing Finance Agency Office of the Inspector General, as the lead investigative agency in the prosecution of Rigal, and IRS-CI and the Broward Sheriff’s Office for their participation in this investigation. The case is being prosecuted by Assistant U.S. Attorney Thomas P. Lanigan.
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.
Contractors Sentenced for Paying Bribes to Former Broward County Traffic Director of EngineeringRead 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, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Marlies T. Gonzalez, Special Agent in Charge, U.S. Department of Transportation, Office of Inspector General, announced that Anthoneel Allen, 40, of Wellington, FL, and James Hashim, 50, of Plantation, FL, were sentenced today for conspiracy to commit bribery in programs receiving federal funds, highway fraud, mail fraud, extortion under color of official right, and tax fraud, all in violation of Title 18, United States Code, Sections 371, before the Honorable Judge James A. Cohn. Allen received a sentence of 60 months imprisonment, three years of supervised release, a $15,000 fine, and a forfeiture judgment of $3,000,000 was ordered. As stated at the sentencing, Allen has already paid $814,000 to the government with respect to the forfeiture. Hashim received a sentence of 36 months imprisonment, three years of supervised release, a $15,000 fine, and a forfeiture judgment of $3,000,000 was ordered.
Allen and Hashim were charged in connection with a scheme wherein they paid bribes to Jihad El Eid, who was the Director of Traffic Engineering in the Division of Public Works in Broward County. As stated at the sentencing, the bribes paid by Allen and Hashim helped them secure approximately $26,000,000 in contracts from Broward County in which they obtained approximately $6,500,000 in benefits.
According to the documents previously filed with the court, Hashim and Allen admitted that beginning in the fall of 2006 through 2010, they provided to Jihad El Eid more than $150,000 in cash, a 2003 Ford Taurus, and a job at Southeast Underground Utilities (SUU) for Wael El Eid (a relative of Jihad El Eid) in order to curry favor with Jihad El Eid. In return, Jihad El Eid helped SUU obtain work on multi-million dollar projects initiated by the Broward County Traffic Engineering Division, including the Signalization and Street Light Installation (SSLI) contract, a contract to make installations and do repair work of the street lights and traffic equipment in Broward County; the Advanced Transportation Management System (ATMS Project), a federally-funded project, which required the contractor to install an integrated traffic control system which entailed laying hundreds of thousands of feet of underground cable and conduit in order to synchronize traffic flow within Broward County; and the Video Detection Contract (VDC), which required the contractor to install video detection cameras in various intersections in Broward County in order to improve traffic flow. Jihad El Eid also assisted SUU concerning billing, specification and inspection matters that resulted in SUU being overpaid by at least $3,000,000.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, and the U.S. Department of Transportation, Office of Inspector General, in connection with the investigation of this matter. Mr. Ferrer would also like to recognize the assistance provided by the Broward County Office of the County Attorney, the Broward County Professional Standards Section, the Federal Highway Administration, the Florida Department of Transportation, and the employees of the Broward County Traffic Engineering Division. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
City of Miami Police Officer Harold James SentencedRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Manuel Orosa, Chief, City of Miami Police Department, announced that Harold James, former City of Miami police officer, was sentenced yesterday by U.S. District Judge Robert N. Scola to fifteen (15) months imprisonment, as to each Count of the two-count Information, to be followed by two (2) years supervised release. The imposed sentence stems from charges of extortion under color of official right, in violation of Title 18, United States Code, Section 1951(a).
The FBI, working in conjunction with the City of Miami Police Department, initiated an investigation after receiving information that City of Miami police officers were facilitating illicit gambling activity taking place at Player’s Choice, a barber shop located in Miami.
In April 2012, during the course of the investigation, James met with and took a cash payment from a cooperating source for providing security at the gambling establishment. It was at this meeting that James was told of another illicit operation. James agreed to participate in the second scheme and agreed to take cash for his involvement.
On five separate occasions, James provided protection for a courier who he believed was cashing fraudulent government checks at the check cashing store. He did so, while in full uniform and while driving his marked City of Miami Police Department vehicle. James, in an effort to further facilitate the criminal activity, notified the cooperating source when there would be law enforcement activity in the area of the check cashing store. In exchange for providing security of the courier who was purportedly cashing fraudulent government checks at the check cashing store, James took receipt of approximately $800 cash.
U.S. Attorney Wifredo A. Ferrer stated, “The criminal conduct of this officer and other public officials undermines the public trust. This sentence sends a message to all public officials who commit crime that they are not above the law.”
“Law enforcement officers are in a position of public trust and therefore must be held to a high standard,” said Michael B. Steinbach, Special Agent in Charge of FBI Miami. “James violated that trust and was brought to justice in large part due to the dedication and commitment of the members of the Miami Area Corruption Task Force and the City of Miami Police Department.”
Mr. Ferrer commended the investigative efforts of the FBI Miami Area Public Corruption Task Force, and the City of Miami Police Department. This case was prosecuted by Assistant U.S. Attorney Robin W. Waugh.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Port St. Lucie Woman Sentenced for Preparing False Income Tax ReturnsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), announced the sentencing of defendant Latonia Lermot, of Port St. Lucie, Florida. Defendant Lermot was sentenced to 24 months in prison, to be followed by one year of supervised release. Defendant Lermot was also ordered to pay $42,629 to the United States as restitution. Lermot previously pled guilty to one count of aiding in the filing of false tax returns in violation of Title 26, United States Code, Section 7206(2).
According to court documents, Lermot was a tax preparer for J&BL Tax Services located in Fort Pierce, Florida. During 2010 and 2011, for the 2009 and 2010 tax years, respectively, Lermot prepared at least 30 fraudulent Forms 1040, United States Individual Income Tax Returns, with false items, in order for her clients to receive substantial tax refunds. Specifically, Lermot filed false tax returns for others that included false information regarding dependents, education credits, and child care. At sentencing, United States District Court Judge Jose E. Martinez also considered the relevant conduct of another tax preparer that had previously pled guilty to preparing false returns for J&BL Tax Services. In total, Judge Martinez found that Lermot was criminally responsible for $215,222 in tax losses.
Mr. Ferrer commended the investigative efforts of IRS-CID. This case is being prosecuted by Assistant U.S. Attorney Adam C. McMichael.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Broward County Return Preparer Sentenced for Tax Fraud Scheme and Failing to File Personal Tax ReturnsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), announced today’s sentencing of defendant Vladimyr Jean Baptiste, 41, of Coral Springs, Florida. Baptiste was sentenced to 57 months in prison, to be followed by 3 years of supervised release. The defendant was also ordered to pay $331,459.49 in restitution to the Internal Revenue Service.
Baptiste previously pled guilty to a 76-count superseding indictment that charged him with 73 counts of aiding in the preparation and presentation to the Internal Revenue Service of false U.S. Individual Income Tax Returns, Forms 1040 and 1040A, for calendar years 2007 through 2010, in violation of Title 26, U.S.C., Section 7206(2); and three counts of failing to file personal income tax returns for calendar years 2008 through 2010, in violation of Title 26, U.S.C., Section 7203.
According to court documents, Baptiste operated Tax Plus in Pompano Beach, Florida and filed numerous false income tax returns for clients. These false returns claimed fraudulent statuses, wages, deductions, credits and expenses. Specifically, Baptiste admitted to: inflating earned income credits; encouraging clients to file separately with each individual claiming head of household although married, thereby obtaining additional tax credits; and giving various clients a fictitious $3,650 personal tax exemption for returns and allowances to lower their taxes. Baptiste also admitted that he has not filed his personal tax returns for the past five years.
Mr. Ferrer commended the investigative efforts of IRS-CID. The case is being prosecuted by Assistant U.S. Attorney Michael Walleisa.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Florida Woman Sentenced to Serve 72 Months in Prison for Conspiring to Distribute Prescription Drugs over the InternetRead the Press Release
Lina Rodriguez, 34, was sentenced today in the U.S. District Court for the Southern District of Florida to serve 72 months in prison, followed by 24 months of supervised release, for operating and facilitating the operation of an Internet-pharmacy business that illegally shipped over $1.5 million of pharmaceuticals since July 2007 to U.S. and overseas purchasers.
According to the Dec. 6, 2012, indictment, Rodriguez owned an Internet-pharmacy business used to advertise, sell and distribute a wide variety of controlled substances and prescription drugs in the United States and abroad. Since May 2009, her co-defendant, Michael P. Jackson, of Carmi, Ill., supplied Rodriguez with the prescription drug known as Adderall, which contains amphetamine, a Schedule II controlled substance.
The drugs distributed by Rodriguez’s business included Adderall, Ritalin (containing the controlled substance methylphenidate), Esbelcaps (containing a combination of the controlled substances fenproporex and diazepam), and other controlled and non-controlled substances.
“This prosecution aims to curb the flow of dangerous drugs into the hands of United States citizens,” said Stuart F. Delery, 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.”
Rodriguez pled guilty to the lead count of the indictment on Feb. 11, 2012, which charged her and Jackson with conspiring to possess with the intent to distribute Adderall. According to her plea agreement, Rodriguez agreed to forfeit two vehicles and not to oppose a judgment against her in the amount of $36,112, as gross proceeds of the offense to which she pleaded guilty. Jackson awaits sentencing on June 3, 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.
Title Attorney, Two Mortgage Brokers and Their Coconspirators Sentenced in Mortgage Fraud SchemeRead the Press Release
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and J.D. Patterson, Director, Miami-Dade Police Department (MDPD), announced the sentencing of Rafael Ubieta, 50, of Miami, Florida, and Angel Barroso, 46, of Miami, Florida, following their January 2013 convictions of conspiracy to commit wire fraud and wire fraud, as well as the sentencing of Joel Zaldivar, 33, of Studio City, California, and Kyle Baker, 33, of Beverly, Massachusetts, following their January 2013 guilty pleas to conspiracy to commit wire fraud. Ubieta, a Title Attorney, was sentenced to 240 months (20 years) of imprisonment. Barroso was sentenced to 210 months of imprisonment. Zaldivar and Baker, who were both Mortgage Brokers, were each sentenced to 48 months of imprisonment. Two other co-defendants, Martha Otero and Fernando Tolon, were previously sentenced to 78 months of imprisonment and 37 months of imprisonment, respectively, following their December 2012 guilty pleas to conspiracy to commit wire fraud. All sentences were imposed by United States District Judge K. Michael Moore.
According to the evidence presented at trial, Ubieta, a member of the Florida Bar, served as the Title Attorney for multiple fraudulent real estate transactions involving the use of straw buyers on whose behalf loan applications and supporting documents containing false information were submitted to various mortgage lenders across the United States by Zaldivar and Baker, who, at the time, were Mortgage Brokers and the Presidents of First Class Mortgage and Lending Corp. Straw buyers were recruited and paid by Barroso, Otero and Tolon. After the lenders approved the loans based on the false information provided, defendant Ubieta, then President of Bayside Title Services, Inc., prepared false HUD-1 Settlement Statements that contained false information. For example, the forms falsely represented to the lenders that the straw buyers were bringing their own money to closing. None of the straw buyers brought their own money to closing. Instead, on multiple occasions Ubieta released lenders’ proceeds to other members of the conspiracy, including Barroso and Otero, prior to receiving the buyers’ required cash-to-close payments. Members of the conspiracy, including Barroso and Otero, then used those proceeds to make the cash-to-close payments on behalf of the straw buyers. Ubieta also signed multiple Title Commitments falsely stating who the owner of record was on various properties. The false Title Commitments allowed Ubieta to conduct real estate closings in which an initial straw buyer resold properties to a second straw buyer before the initial straw buyer appeared as the owner of the property in the public records.
Mr. Ferrer commended the investigative efforts of the MDPD.
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.
Police Officer Sentenced to Prison for Deprivation of Civil RightsRead 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 today the sentencing of Prabhainjana Dwivedi, a police officer with the Miami-Dade Police Department.
Today, U.S. District Judge Jose E. Martinez sentenced Dwivedi to 30 months’ imprisonment, followed by one year of supervised release, as a result of the jury’s verdict. Dwivedi was taken into custody when the verdict was returned.
U.S. Attorney Wifredo A. Ferrer stated, “Dwivedi betrayed the public trust by unlawfully stopping, searching and detaining people in Miami, thereby, depriving them of their civil rights. The U.S. Attorney’s Office is committed to making our communities safer by holding individuals accountable who do not respect the civil rights of others. This case is a reminder that no one is above the law.”
“We are pleased with the sentence for Dwivedi because his actions affected more than the individuals he stopped and/or detained without lawful authority. His actions also undermined the public’s trust in law enforcement,” said Assistant Special Agent in Charge William J. Maddalena, FBI Miami. “The FBI will continue to work with our partners to remove those law enforcement officers who cross the line to engage in criminal misconduct.”
“The officer’s actions have tarnished the badges of all sworn to uphold the law. We support this conviction and remain resolute in policing our own,” stated MDPD Director J.D. Patterson.
Dwivedi was convicted at trial of six counts of deprivation of civil rights. The evidence at trial revealed that between May 27, 2011 and June 26, 2011, Dwivedi, while acting as a police officer with the Miami-Dade Police Department, without lawful authority, stopped and/or detained numerous individuals, and deprived those individuals of their rights secured and protected by the Constitution and laws of the United States, specifically, the right to be free from unreasonable search and seizures by one acting under color of law, in violation of 18 U.S.C. § 242.
Evidence at trial showed that Dwivedi has been employed as an Officer with the Miami-Dade Police Department (MDPD) since February 28, 2005. During the time period between May and June 2011, Dwivedi was assigned to the midnight shift (10:00 p.m. to 6:00 a.m.) and was responsible for patrolling the areas of Key Biscayne, Metrorail and bus stations, and Jackson Memorial Hospital.
The evidence presented at trial further revealed that during the months of May and June 2011, the Miami-Dade Police Department Professional Compliance Bureau received four complaints regarding Dwivedi’s inappropriate behavior. As a result of these complaints, an investigation was conducted. The evidence showed that during one shift, Dwivedi was observed conducting twenty-six traffic stops; however, only three were listed on his daily activity sheet and none were called into the dispatcher. Trial testimony and documents demonstrated that Dwivedi had not run computer checks on any of the victims, had not issued any citations, nor listed his contact with the victims in any paperwork or radio transmissions. Furthermore, each victim testified at trial to events and interactions with Dwivedi that were similar in nature.
Mr. Ferrer commended the investigative efforts of the FBI and MDPD. This case was prosecuted by Assistant U.S. Attorney Karen Gilbert.
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 Pleads Guilty in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Paula A. Reid, Special Agent in Charge, U.S. Secret Service (USSS), and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announced that defendant Fednol Pierre, 34, of West Palm Beach, pled guilty before U.S. District Judge James I. Cohn to one count of theft of government money and one count of aggravated identity theft. The sentencing hearing is set for June 26, 2013 in front of Judge Cohn. At sentencing, Pierre faces a mandatory minimum statutory sentence of two years in prison and a maximum possible sentence of 12 years in prison.
According to documents filed in court, on September 29, 2009, Pierre added an individual to his bank account as a joint account holder -- 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.
Miami Man Sentenced in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), Antonio J. Gomez, Acting Inspector in Charge, U.S. Postal Inspection Service (USPIS), and Sergio Velazquez, Chief, Hialeah Police Department (HPD), announced that defendant Marckell Steward, 21, of Miami, was sentenced yesterday for his participation in a $1.7 million identity theft tax refund fraud scheme. Specifically, U.S. District Judge Cecilia M. Altonaga sentenced Steward to 72 months in prison, followed by three years of supervised release. A restitution hearing is scheduled for Tuesday, June 25, 2013 at 9:45 a.m. Steward previously pled guilty to conspiracy to commit access device fraud and aggravated identity theft.
According to court documents and testimony, Steward along with co-conspirators Lineten Belizaire, 22, Earnest Baldwin, 36, and Earl Baldwin, 42 all of Miami, 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.
As stated in documents filed in court, Steward conspired with Belizaire 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, Steward exchanged text messages with Belizaire where the defendant 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 was found with over 1,000 individual names, dates of birth, and Social Security numbers and approximately 40 pre-paid debit cards in other people’s names. Some of these papers seized included 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 fraudulent refunds in the names of victims in the papers and notebooks found on Earnest Baldwin.
Lineten Belizaire pled guilty to access device fraud and aggravated identity theft on March 18, 2013. He faces a maximum possible sentence of 12 years and is scheduled to be sentenced on May 28, 2013 at 8:30 AM before Judge Altonaga.
Sentencing for Earnest and Earl Baldwin has been scheduled for June 17, 2013 beginning at 8:30 AM before Judge Altonaga. Defendant Earnest Baldwin faces a maximum possible prison sentence of 41 years and defendant Earl Baldwin faces a maximum possible prison sentence of 29 years.
Mr. Ferrer commended IRS-CID, USPIS, and HPD 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.
Twenty Defendants Charged in Separate Schemes to Defraud Immigration by Posing as Cuban CitizensRead 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, Homeland Security Investigations (ICE-HSI), Miami Field Office, Linda Swacina, District Director, U.S. Citizenship and Immigration Services (USCIS), Vernon Foret, Director Field Operations, U.S. Customs and Border Protection (CBP), Miami Field Office, and Wendy Bashnan, Special Agent in Charge, Miami Field Office, U.S. Department of State’s Diplomatic Security Service (DSS), announced the filing of federal charges against twenty defendants in twenty separate cases. The cases announced today highlight the federal commitment to crack down on immigration fraud and its perpetrators.
These indictments and informations are part of Operation Havana Gateway, a response to a rising trend of immigration fraud based upon false claims to Cuban birth and citizenship. Previous investigations and convictions stemming from Operation Havana Gateway have revealed that document vendors create and sell fraudulent and fictitious Cuban birth certificates for thousands of dollars to individuals in need of immigration benefits. Subsequently, those individuals submit fraudulent applications for immigration benefits based upon a fictitious claim of Cuban birth or citizenship supported by a phony Cuban birth certificate.
U.S. Attorney Wifredo A. Ferrer stated, “Fraud cannot be the foundation of one’s pursuit of the American dream. By committing immigration fraud, these defendants sought to cheat the immigration system and those who immigrate to this country lawfully. We will continue to pursue and punish those who unfairly and fraudulently cheat the immigration system.”
“These individuals came here seeking the freedom and benefits this country provides to Cuban nationals. The operation identified and addressed a vulnerability in the application process,” said Alysa Erichs, Special Agent in Charge of HSI in Miami. “These arrests by HSI should send a clear message that we will target anyone who tries to obtain immigration benefits fraudulently.”
“USCIS is committed to ensuring the integrity of our nation’s immigration system by ensuring that only fully qualified individuals receive benefits,” said Linda Swacina, District Director for Miami and the Caribbean. “We evaluate cases individually based on the law and the facts and will refer to USCIS’ Fraud Detection and National Security Directorate (FDNS) or other appropriate authorities any case suspected of fraud or unlawful conduct.”
“This integrated effort is an example of the successful partnership between federal agencies to detect and interrupt organizations that through fraudulent activity exploit the process to obtain immigration benefits,” said Vernon Foret, Director Field Operations Miami, Customs Border Protection.
“These charges send a strong message: Diplomatic Security and our law enforcement partners are committed to making sure those who commit document fraud face consequences for their criminal actions,” said Wendy Bashnan, Special Agent in Charge, Miami Field Office, DSS. “Diplomatic Security’s strong relationship with the U.S. Attorney’s Office and other law enforcement agencies continues to be essential in the pursuit of justice.”
The cases announced today include:
1. United States v. Miriam Licea, Case No. 13-20238-CR-Williams
Defendant Miriam Licea, 57, of Miami, was charged in a four-count indictment with assisting two people make fraudulent applications for immigration benefits based upon false claims of Cuban birth. This indictment is related to a prior case, United States v. Entrocassi, 12-20517-CR-SEITZ, indicted in 2012, in which a defendant proffered during a guilty plea that he had paid $15,000 for a fraudulent Cuban birth certificate. The indictment contains two counts of aiding and abetting two people to submit a fraudulent application for immigration benefits based upon a false claim of Cuban birth. The defendant was also charged with two counts of knowingly encouraging and inducing two aliens to reside in the United States illegally. This case is being prosecuted by Assistant U.S. Attorney Robert Watson.2. United States v. Luis Enrique Legon Mena, Case. No. 13-60066-CR-Zloch
Defendant Luis Enrique Legon Mena, 44, of Miramar, was charged in a five-count indictment with conspiring to encourage aliens to reside in the United States illegally, and four counts of knowingly encouraging and inducing four total aliens to reside in the United States illegally. This case is being prosecuted by Assistant U.S. Attorney Anita White.3. United States v. Marcos Erwin Hes Villacis, Case No. 13-20198-CR-Cooke
Defendant Marcos Erwin Hes Villacis, 50, of Miami, was charged in a two-count information with submitting a fraudulent application for legal permanent residence premised on the false claim that he was born in Cuba. This case is being prosecuted by Assistant U.S. Attorney Andy Camacho.4. United States v. Pablo Nunez, Case No. 13-20176-CR-Williams
Defendant Pablo Nunez, 42, of Miami Beach, was charged in a one-count indictment with submitting a fraudulent application for legal permanent residence based on the false claim that he is Cuban. This case is being prosecuted by Special Assistant United States Attorney Tim Cole.5. United States v. Ana Arias, Case No. 13-20003-CR-Lenard
Defendant Ana Arias, 31, of Naples, was charged in a two-count indictment with submitting a fraudulent application for legal permanent residence based on the fictitious claim that she is Cuban. This case is being prosecuted by Special Assistant U.S. Attorney Timothy Cole.6. United States v. Gerardo Mendez, Case No. 13-60065-CR-Dimitrouleas
Defendant Gerardo Mendez, 37, of Miami, was charged in a two count indictment with seeking to naturalize fraudulently based on the false premise that he was born in Cuba. The case is being prosecuted by Special Assistant U.S. Attorney Benjamin Rosen.7. United States v. Maryori Velazquez-Guevara, Case No. 60064-CR-Cohn
Defendant Maryori Velazquez-Guevara, 44, of Davie, was charged in a two-count indictment with seeking to naturalize fraudulently based on the false premise that she was born in Cuba. The case is being prosecuted by Special Assistant U.S. Attorney Benjamin Rosen.8. United States v. Jose Ramirez, Case No. 13-60063-CR-Scola
Defendant Jose Ramirez, 45, of Sunrise, was charged in a two-count indictment with submitting a fraudulent application for citizenship based on the false claim that he was born in Cuba. This case is being prosecuted by Special Assistant U.S. Attorney Benjamin Rosen.9. United States v. Eduardo Gomez, Case No. 13-20004-CR-Cooke
Defendant Eduardo Gomez, 37, of Miami Beach, was charged in a one-count indictment with submitting a fraudulent application for legal permanent residence based on the false claim that he is Cuban. The case is being prosecuted by Special Assistant U.S. Attorney Timothy Cole.10. United States v. Roberto Guzman, Case No. 13-20224-CR-Ungaro
Defendant Roberto Guzman, 46, of Miami, was charged in a one-count information with submitting a fraudulent application for citizenship based on the phony claim that he was born in Cuba. This case is being prosecuted by Assistant U.S. Attorney Andy Camacho.11. United States v. Carlos Zerpa Rodriguez, Case No. 13-20222-CR-Middlebrooks
Defendant Carlos Zerpa Rodriguez, 33, of North Miami, was charged in a two-count information with knowingly attempting to obtain citizenship unlawfully and submitting a fraudulent application for naturalization. The information alleges that the premise of the defendant’s fraudulent applications was the phony claim that he was born in Cuba. This case is being prosecuted by Assistant U.S. Attorney Andy Camacho.12. United States v. Ferdinando Enrique Bello, Case. No. 13-80075-CR-Rosenbaum
Defendant Ferdinando Enrique Bello, 52, of Jacksonville, was charged in a two-count indictment with submitting a fraudulent application for citizenship based on the phony claim that he was born in Cuba. This case is being prosecuted by Assistant U.S. Attorney Alexandra Hui.13. United States v. Santiago Ruben Gonzalez, Case No. 13-20193-CR-King
The defendant, Santiago Ruben Gonzalez, 45, of Jacksonville, was charged in a two-count indictment with attempting to become a lawful permanent resident based on the fraudulent claim that he is Cuban. This case is being prosecuted by Assistant U.S. Attorney Alexandra Hui.14. United States v. Yohel Golsztayn, Case. No. 13-20221-CR-Williams
Defendant Yohel Golsztayn, 29, of Hollywood, is charged in a one-count information with submitting a fraudulent application for legal permanent residence. The information alleges that the premise of his application was the false and fictitious claim that his mother was born in Cuba. This case is being prosecuted by Assistant U.S. Attorney Anita White.15. United States v. Paola Lourdes Bre, Case No. 13-20225-CR-Altonaga
Defendant Paola Lourdes Bre, 37, of Miami, was charged in a two-count information with submitting a fraudulent application for legal permanent residence based on the false and fictitious claim that she was born in Cuba. This case is being prosecuted by Assistant U.S. Attorney Andy Camacho.16. United States v. Sylvia Cruz Chicoma, Case No. 13-20223-CR-Zloch
Defendant Sylvia Cruz Chicoma, 56, of Miami, was charged in a two-count information with submitting a fraudulent application for legal permanent residence based on the false and fictitious claim that she was born in Cuba. This case is being prosecuted by Assistant U.S. Attorney Andy Camacho.17. United States v. Maura Rosario Roca Hurtado, Case No. 13-20195-CR-Martinez
Defendant Maura Rosario Roca Hurtado, 46, of Naples, was charged in a two-count indictment with submitting a fraudulent application for legal permanent residence. The indictment alleges that the basis of her application was the false and fictitious claim that her mother was born in Cuba. This case is being prosecuted by Special Assistant U.S. Attorney Timothy Cole.18. United States v. Alexandra Magdalena Canelon, Case No. 13-20196-CR-Rosenbaum
Defendant, Alexandra Magdalena Canelon, 31, of Doral, is charged in a four-count indictment with submitting fraudulent applications for legal permanent residence on two separate dates. The indictment alleges that, each time, she premised her application on the false claim that her mother was born in Cuba. This case is being prosecuted by Special Assistant U.S. Attorney Timothy Cole.19. United States v. Pablo Muro, Case No. 13-20237-CR-Moreno
Defendant Pablo Muro, 46, of Miami, was charged in a two-count information with submitting a fraudulent application for legal permanent residence premised on the false claim that he was born in Cuba. This case is being prosecuted by Assistant United States Attorney Robert Watson.20. United States v. Francisco Ramirez, Case No. 13-60081-CR-Scola
Defendant, Francisco Ramirez, 45, of Sunrise, was charged in a two-count indictment with submitting a fraudulent application for citizenship based on the false claim that he was born in Cuba. This case is being prosecuted by Special Assistant U.S. Attorney Benjamin Rosen.Defendants Gerardo Mendez, Maryori Velazquez-Guevara, Luis Enrique Legon Mena, Alexandra Magdalena Canelon, and Sylvia Cruz Chicoma are scheduled to make initial appearances in Fort Lauderdale before U.S. Magistrate Judge Barry S. Seltzer at 11:00 a.m. today. Defendants Marcos Erwin Hes Villacis, Pablo Nunez, Ana Arias, Jose Ramirez, Eduardo Gomez, Roberto Guzman, Miriam Licea, Carlos Eduardo Zerpa Rodriguez, Santiago Ruben Gonzalez, Yohel Golsztayn, Paola Lourdes Bre, Maura Rosario Roca Hurtado, Pablo Muro, and Francisco Ramirez are scheduled to make initial appearances in Miami today before U.S. Magistrate Judge Edwin G. Torres at 2:00 p.m.
An indictment or an information is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Director of Non-Profit Convicted in BP Claims Fund Fraud TrialRead 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, Antonio J. Gomez, Acting Inspector in Charge, Miami Division, U.S. Postal Inspection Service (USPIS), Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, and Richard L. Walker, Special Agent in Charge, U.S. Department of Labor, Office of Inspector General - Office of Labor Racketeering and Fraud Investigation, announced that Jean Mari Lindor, 32, of Homestead, Florida, was convicted by a federal jury in Miami yesterday, for his participation in filing false claims in connection with the Deepwater Horizon explosion and pollution incident in the Gulf of Mexico. Lindor was convicted on charges of mail fraud, wire fraud, access device fraud, and aggravated identity theft, all in connection with fraudulent claims filed by the defendant seeking lost income against the Gulf Coast Claims Facility, the filing of fraudulent tax returns with the Internal Revenue Service, and false claims for unemployment compensation against the State of Florida, in violation of Title 18, United States Code, Sections 1341, 1343, 1029(a)(2) and (b)(1), and 2.
The guilty verdicts were returned before U.S. District Judge K. Michael Moore, who set the sentencing hearing for July 30, 2013 at 2:00 p.m. in Miami. Lindor faces possible terms of imprisonment of up to twenty years on each of the thirty-four counts of mail fraud and wire fraud, up to ten years imprisonment on the three counts of access device fraud, and a consecutive sentence of two years each on the two counts of aggravated identity theft. The defendant also faces a fine of up to $250,000 on each count or twice the intended gain or loss caused by the conduct, as well as a period of supervised release of up to five years.
According to the allegations in the Indictment and evidence presented in court, in June 2010, BP established the Gulf Coast Claims Facility (GCCF) for the purpose of administering, mediating, and settling certain claims of individuals and businesses for costs, damages, and other losses incurred as a result of oil discharges due to the April 20, 2010 explosion and fire on the Deepwater Horizon, an oil rig in the Gulf of Mexico that had been drilling an exploration well. In August 2010, the GCCF began receiving and processing such claims of individuals and businesses for costs, damages, and other losses they had incurred as a result of the Deepwater Horizon incident, paying the claims from a $20 billion Trust Fund established for that purpose.
The evidence at trial established that Lindor filed fraudulent claims against the fund, in his own name, and in the name of a Not-For-Profit business he established, Noula, Incorporated, located in Homestead. The value of the claims charged in the Indictment and presented at trial were in excess of $1.2 million. Trial evidence demonstrated that the records supplied to the GCCF to support the many claims were materially false and fraudulent because they purported to show the claimants were employees of various hotels, restaurants, and clubs in the Florida Keys at the time of the spill and that their income had been adversely affected as a result of the Deepwater Horizon incident.
Lindor also used unauthorized access devices during the scheme, consisting of the unique GCCF Claim numbers assigned to his fictitious claims, and without which he would have been unable to communicate with the GCCF, or cause payments to be issued to them. Moreover, Lindor also sought unemployment compensation for more than a year from the State of Florida, falsely certifying that he was not earning income when, in fact, he was actively directing the scheme at Noula.
Furthermore, the evidence at trial showed that Lindor possessed and used without lawful authority the social security numbers of two identity theft victims to file fraudulent tax claims against the IRS, and directed the refunds into either his personal bank account or to bank debit cards.
Mr. Ferrer commended the investigative efforts of the FBI, Postal Inspection Service, Secret Service, Department of Labor Office of Inspector General, and the U.S. Citizenship and Immigration Service, Fraud Detection and National Security Directorate. Mr. Ferrer would also like to thank the Florida Department of Economic Opportunity and the National Center for Disaster Fraud (NCDF). This case was prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald.
Members of the public can report fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, including the 2010 Deepwater Horizon oil spill, through the National Center for Disaster Fraud (NCDF) Disaster Fraud Hotline at 877-NCDF-GCF (623-3423), the Disaster Fraud Fax at 225-334-4707, or the Disaster Fraud e-mail at [email protected].
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Alien Pleads Guilty to Smuggling Luxury Watches from the Dominican Republic to Sell in Downtown MiamiRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), announce that Marcos Ferrando, 29, of Santo Domingo, Dominican Republic, pled guilty yesterday to charges of illegally attempting to smuggle and clandestinely introduce into the United States luxury watches, in violation of Title 18, United States Code, Sections 545 and 2.
U.S. District Judge Donald Middlebrooks accepted Ferrando’s plea and adjudicated him guilty of the offense. Judge Middlebrooks sentenced Ferrando to 100 days imprisonment, followed by reporting to immigration authorities for deportation. Ferrando also agreed to forfeit the watches.
According to statements made in court, Ferrando admitted that on January 31, 2013, he and his wife arrived at Miami International Airport on a commercial flight from the Dominican Republic. Ferrando’s wife completed a Spanish-language binding customs declaration form on behalf of the couple. In response to a question asking if Ferrando and his wife were carrying any articles to be sold in the United States, they answered “no.” For the total value of all items that would remain in the United States, Ferrando and his wife listed nothing. The government estimates the value of the watches to be approximately $400,000.00, and the customs duties owed to be about $20,000.00.
During inspection of Ferrando’s luggage by Customs and Border Protection (CBP), an Officer discovered twelve (12) Audemars Piguet manufacturer manuals and warranties. Further inspection of Ferrando’s luggage revealed four (4) Audemars Piguet men’s watches in his carry-on bag and three (3) Audemars Piguet men’s watches concealed in a sunglasses case in his wife’s carry-on handbag. Both Ferrando and his wife were also each wearing an Audemars Piguet men’s watch. The model number on six (6) of the watches matched the model number on six (6) of the twelve (12) manuals in Ferrando’s possession.
During a later interview with a Special Agent from the Department of Homeland Security, Ferrando stated that all nine (9) of the watches belonged to him and admitted that he had planned to sell all nine (9) watches to a buyer in downtown Miami.
Mr. Ferrer commended the joint efforts of ICE-HSI and CBP. The case was prosecuted by Assistant U.S. Attorney 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.
Miami Man Sentenced in $1.85 Million Stolen Identity Tax Refund SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), Miami Field Office, Paula Reid, Special Agent in Charge, U.S. Secret Service, Miami Field Office, and Rafael P. Hernandez, Jr., Chief, North Miami Beach Police Department, announced that defendant Frandy Prophete, 34, of Miami, was sentenced today for his participation in a $1.85 million stolen identity tax refund scheme. Specifically, U.S. District Judge William P. Dimitrouleas sentenced Prophete to 61 months in prison, followed by 3 years of supervised release, and restitution in the amount of $1.85 million. Prophete previously pled guilty to one count of conspiracy to file false and fraudulent claims and another count of aggravated identity theft.
According to court documents, Prophete was charged in a multi-count indictment together with defendant Frantz Charles and other co-conspirators for participating in an identity theft tax refund scheme involving the use of the identities of over 900 deceased individuals to file fraudulent income tax returns. The tax refunds generated from the filing of these fraudulent returns were, in turn, deposited into bank accounts controlled by the defendants.
Defendant Charles previously pled guilty to one count of conspiracy to file false and fraudulent claims and one count of aggravated identity theft, and was sentenced on April 10, 2013, by Judge Dimitrouleas to 61 months in prison, followed by 3 years of supervised release, and payment of restitution.
Mr. Ferrer commended the investigative efforts of IRS-CID, the U.S. Secret Service, and the North Miami Beach Police Department. The case is being prosecuted by Assistant U.S. Attorney Jose A. Bonau.
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 Pleads Guilty to Securities FraudRead 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 defendant Scott Haire, 48, a resident of Coral Springs, Florida, pled guilty yesterday before U.S. District Judge Kathleen Williams. Haire pled guilty to conspiracy to commit securities fraud in violation of Title 18, United States Code, Section 371, in United States v. Scott Haire and Douglas Martin, Case No. 12-Cr-60133-Williams(s).
At sentencing, Haire faces a maximum of five year’s imprisonment, three years supervised release, and a $250,000 fine.
This case is part of the Southern District of Florida Securities and Investment Fraud Initiative (the Initiative), first announced in December 2010 and designed to combat securities and investment fraud and protect the interests of the investing public. The Initiative was established to address the increase in securities and investment fraud schemes in the Southern District of Florida. In addition to the U.S. Attorney’s Office, FBI, U.S. Securities and Exchange Commission (SEC) and Florida’s Office of Financial Regulation, other participating agencies in the Initiative include the Internal Revenue Service, Criminal Investigation Division (IRS-CID), U.S. Secret Service (USSS), U.S. Postal Inspection Service, Federal Deposit Insurance Corporation, Office of Inspector General (FDIC-OIG), U.S. Commodity Futures Trading Commission (CFTC), and the Federal Trade Commission (FTC) Southeast Region. Among the goals of the Initiative is to alert the public about the prevalence of these types of schemes, educate the public on how to avoid falling prey to these schemes, and to highlight the law enforcement response to the problem.
The Southern District of Florida ranks second in the nation in securities and investment fraud investigations and prosecutions. Using the strike force model successfully developed in the health care and mortgage fraud areas, the Initiative has yielded similar success. Since its inception in December 2010, the Initiative has resulted in charges against 144 defendants in the Southern District of Florida, resulting in more than $1.76 billion in restitution ordered.
Haire – the former CEO of Wound Management Technologies, Inc., and the former CFO and Chairman of VHGI, Inc. –was captured on video and audio recordings engaging in securities fraud during an undercover FBI operation. During the recordings, Haire discussed his football career at the University of Kentucky before turning to fraud.
According to court documents, Haire bribed a pension fund fiduciary to induce the fiduciary to invest in Wound Management, in violation of the pension fund fiduciary’s obligation to act in the best interest of the pension fund’s beneficiaries. In addition, Haire bribed a stock broker to invest money from his client’s discretionary accounts, in violation of the stock broker’s obligation to act in the best interest of his clients. Haire agreed that he conspired with Douglas Martin, a conspirator who previously pled guilty, to inflate the volume and stock of VHGI, a publicly traded company.
To date, 37 individuals have been convicted as part of the FBI’s undercover operation in this and related cases.
Mr. Ferrer commended the investigative efforts of the FBI in this and other cases targeting penny stock fraud in South Florida. Mr. Ferrer would also like to thank the SEC for its assistance in this matter. This case is being prosecuted by Assistant U.S. Attorneys H. Ron Davidson and Jodi L. Anton.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami Woman Convicted in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), Tom Caul, Acting Special Agent in Charge, Social Security Administration, Office of Inspector General (SSA-OIG), and Steven Steinberg, Chief, Aventura Police Department, announced today the conviction at trial of Natoya Mashea Handy, 30, of Miami, for her participation in a tax refund scheme using stolen identities to convert government monies for her own use. More specifically, on Friday, April 12, 2013, Handy was convicted by a jury of one count of access device fraud in violation of Title 18, United States Code, Section 1029(a)(3), and five counts of aggravated identity theft in violation of Title 18, United States Code, Section 1028A, in connection with an identity theft tax refund fraud scheme.
The Honorable Robin S. Rosenbaum, U.S. District Judge, scheduled sentencing for June 24, 2013 at 9:00 A.M.
According to testimony and evidence presented at trial, on or about April 5, 2012, the defendant was found with at least fifteen (15) social security numbers, names, and dates of birth belonging to persons who were formerly or presently incarcerated by the state of Florida. The trial testimony and evidence further showed that fraudulent tax returns were filed for tax year 2011 for seventeen (17) of the individuals whose social security numbers the defendant possessed. Each of these fraudulent tax returns fraudulently claimed entitlement to a refund, amounting to thousands of dollars in fraud.
Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to the City of Aventura Police Department, the City of Miami Gardens Police Department, and IRS-CID, with assistance from the SSA-OIG. The case is being prosecuted by Assistant U.S. Attorneys Alexandra Hui and Amanda Perwin.
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.
Husband and Wife Sentenced in Stolen Identity Tax Refund SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern district of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), Miami Field Office, Rafael P. Hernandez, Jr., Chief, North Miami Beach Police Department, announced that defendants Douglas Michael Young, a/k/a “Douglas Pierre,” 41, and his wife, Nicole Young, a/k/a “Nicole Pierre,” a/k/a Nicole Pierre Smith, 42, both of Miramar, were sentenced yesterday for their participation in a stolen identity tax refund scheme. Douglas Young was sentenced to 61 months’ imprisonment, followed by three years of supervised release. Nicole Young was sentenced to 54 months’ imprisonment, followed by three years of supervised release. In addition, the defendants were ordered to pay joint and several liability restitution in the amount of $849,052.87. Douglas and Nicole Young (the Youngs) had previously pled guilty to one count of conspiracy to steal government property, one count of theft of government property, and one count of aggravated identity theft.
On October 5, 2011, six (6) defendants were charged in a nine count indictment for their participation in a tax refund scheme that resulted in the submission of approximately $1,207,389.00 in fraudulent claims for refunds using the personal identification information of unknowing. Charged in the indictment were Douglas Young and Nicole Young, Jeffrey Andre Young, Jr., 31, and Ernest V. Charles, 37, both of Miami, and Joseph Bshara, 27, and Siham Benabdallah, 23, both of Miami Shores, Florida.
According to the indictment, the Youngs owned and operated two tax preparation companies, Supreme Tax and Young Professional Services, Inc. The Youngs would obtain identification information from unknowing victims and use their identification information without their authorization to file fraudulent refund claims. In furtherance of the scheme, the Youngs charged the unknowing victims a “fee” for their purported tax preparation services. The Youngs would deduct the “fee” from any tax refunds and would deposit the “fee” into bank accounts they controlled. The remainder of the refunds would be converted into personal checks that would be deposited into bank accounts controlled by co-defendants Ernest V. Charles, Joseph Bshara, and Siham Benabdallah. Defendant Jeffrey Andre Young, Jr. would deliver the personal checks to Joseph Bshara and Siham Benabdallah for deposit into the bank accounts that they controlled.
On April 9, 2013, co-defendant Jeffrey Andre Young, Jr was sentenced to 34 months imprisonment followed by three years of supervised release after having previously pled guilty to one count of theft of government property and one count of aggravated identity theft. On that same date, Siham Benabdallah, was sentenced to time served followed by supervised release of three years after having pled guilty to one count of theft of government property.
On January 29, 2013, co-defendant Joseph Bshara pled guilty to one count of theft of government property and one count of aggravated identity theft. Defendant Ernest V. Charles remains at large.
Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to IRS-CI and the North Miami Beach Police Department. The case is being prosecuted by Assistant U.S. Attorney Kurt Lunkenheimer.
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 Man Sentenced in $1.6 Million Stolen Identity Tax Refund SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), Miami Field Office, Paula Reid, Special Agent in Charge, U.S. Secret Service, Miami Field Office, and Rafael P. Hernandez, Jr., Chief, North Miami Beach Police Department, announced that defendant Frantz Charles, 38, of Miami, was sentenced yesterday for his participation in a $1.648 million stolen identity tax refund scheme. Specifically, U.S. District Judge William P. Dimitrouleas sentenced Charles to 61 months in prison, followed by 4 years of supervised release, and restitution in the amount of $1.648 million. Charles previously pled guilty to one count of conspiracy to file false and fraudulent claims and another count of aggravated identity theft.
According to information in court documents, Charles was charged in a multi-count indictment along with other co-conspirators for participating in an identity theft tax refund scheme involving the use of the identities of over 900 deceased individuals to file fraudulent income tax returns. The tax refunds generated from the filing of these fraudulent returns were, in turn, deposited into bank accounts controlled by the defendant and other co-conspirators.
Mr. Ferrer commended the investigative efforts of IRS-CID, the U.S. Secret Service, and the North Miami Beach Police Department. The case is being prosecuted by Assistant U.S. Attorney Jose A. Bonau.
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.
Canadian Citizen Pleads Guilty in Connection with Costa Rica-Based Business Opportunity Fraud VenturesRead the Press Release
Kerry Michael Deevy pleaded guilty in U.S. District Court for the Southern District of Florida in Miami to 13 counts of an indictment pending against him, including one count of conspiracy to commit mail and wire fraud, three counts of mail fraud, and nine counts of wire fraud, the Justice Department and the U.S. Postal Inspection Service announced today.
Deevy, a Canadian citizen, was charged in connection with the operation of a series of fraudulent business opportunities. Deevy was arrested in Costa Rica in February 2012 following his indictment by a federal grand jury in Miami on Nov. 29, 2011. Following his arrest in Costa Rica, Deevy was extradited to the United States for prosecution. Deevy was arrested based on charges that he and his co-conspirators purported to sell vending machine and greeting card business opportunities, including assistance in establishing, maintaining and operating such businesses. The indictment is part of the government’s continued nationwide crackdown on business opportunity fraud.
In addition to Deevy, 11 other individuals have been charged in connection with business opportunity fraud ventures based in Costa Rica. Deevy is the ninth of those individuals to be convicted in the United States.
“Fraudsters must realize that financial fraud victimizing Americans will be prosecuted vigorously, even if the schemers conduct their fraudulent 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 cheat American citizens from overseas.”
“The Department of Justice is committed to cracking down on financial fraud, including international telemarketing schemes,” said Stuart F. Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division. “That is why we will continue to prosecute those who would deprive innocent, hardworking Americans of their hard-earned money by offering phony business opportunities.”
Beginning in 2006, Deevy and his coconspirators fraudulently induced purchasers in the United States to buy business opportunities in Cards-R-Us Inc., Premier Cards Inc. and Nation West Distribution Company. The business opportunities cost thousands of dollars each, and most purchasers paid at least $10,000.
Deevy 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, Deevy 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 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.
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.
Deevy, using aliases, was a fronter and reference for Cards-R-Us, Premier Cards and Nation West.
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. 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. Nation West was a Colorado corporation and rented office space in Denver.
“The success of this investigation shows that the U.S. Postal Inspection Service continues to work closely with the Department of Justice and our law enforcement partners, both foreign and domestically, to protect the American consumer from the predatory nature of business opportunity and telemarketing schemes,” said Tony Gomez, Acting U.S. Postal Inspector in Charge in Miami.
Acting Assistant Attorney General Delery commended the investigative efforts of the Postal Inspection Service. The case is 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.
Two Miami Men Convicted in Identity Theft Tax Refund Fraud Scheme Involving over 1,000 VictimsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), Antonio J. Gomez, Acting Inspector in Charge, U.S. Postal Inspection Service (USPIS), and Sergio Velazquez, Chief, Hialeah Police Department (HPD), announced the conviction at trial of Earnest Baldwin, 36 of Miami, and Earl Baldwin, 42 of Miami, for their participating in a tax refund scheme using stolen identities to convert government monies for their own use. More specifically, both were convicted of one count of conspiracy to defraud the government, one count of conspiracy to commit access device fraud, one count of access device fraud, and multiple counts of aggravated identity theft, in connection with an identity theft tax refund fraud scheme.
According to testimony and evidence presented at trial, the defendants 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. Nearly all of these claims requested payment of the refunds onto pre-paid debit cards and some of these claims were filed from Earl Baldwin’s residence.
The trial testimony and evidence further showed that Earnest Baldwin was found with over 1,000 individual names, dates of birth, and Social Security numbers and approximately 40 pre-paid debit cards in other people’s names. Some of these papers seized included 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 both defendants withdrew money from debit cards loaded with fraudulent refunds in the names of victims in the papers and notebooks found on Earnest Baldwin.
Sentencing for both defendants has been scheduled for June 17, 2013 beginning at 8:30 AM before U.S. District Judge Cecilia Altonaga. Defendant Earnest Baldwin faces a maximum possible prison sentence of 41 years and defendant Earl Baldwin faces a maximum possible prison sentence of 29 years.
Two additional co-conspirators, Lineten Belizaire, 22, and Marckell Steward, 21, both of Miami, previously pled guilty in this matter. Belizaire pled guilty to access device fraud and aggravated identity theft on March 18, 2013. She faces a maximum possible sentence of 12 years and is scheduled to be sentenced on May 28, 2013 at 8:30 AM before Judge Altonaga. Steward pled guilty to conspiracy to commit access device fraud and aggravated identity theft on January 31, 2013. He faces a maximum possible sentence of 12 years and is scheduled to be sentenced at a later date.
Mr. Ferrer commended IRS-CID, USPIS, and HPD 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.
Chinese Business Executive Convicted for Illegal Trade in Rhino HornRead the Press Release
Shusen Wei, 45, a citizen of China, pleaded guilty Friday in Miami federal court to charges stemming from his involvement in the smuggling of a carved rhinoceros horn from the United States to China, announced Wifredo A, Ferrer, U.S. Attorney for the Southern District of Florida, Ignacia S. Moreno, Assistant Attorney General for the Environment & Natural Resources Division, and William C. Woody, Chief of the U.S. Fish & Wildlife Service’s Office of Law Enforcement.
Wei entered his guilty plea before U.S. District Judge Cecilia M. Altonaga, who scheduled sentencing for April 29, 2013. Wei faces a possible term in prison of up to 10 years on the single count filed against him, a fine of up to $250,000, and a term of supervised release of up to three years.
According to documents filed in Court, Wei traveled from China to Miami, Fla., in January 2013, to attend the Original Miami Beach Antique Show. While attending the show, he roomed with another Chinese national who was later arrested for smuggling of rhinoceros horns from the United States to China. In pleading guilty, Wei admitted that he paid commissions to this other individual to purchase objects made of rhino horn in the United States and smuggle them to China and that he knew that this individual was engaged in the smuggling of protected species of wildlife, including rhinoceros horn and elephant ivory. Wei also knew that this individual had paid bribes to Chinese customs officials to assist in his smuggling. Special Agents with the U.S. Fish & Wildlife Service learned that Wei had previously purchased libation cups made from carved rhinoceros horns from this same individual. One of those items was sold at a U.S. auction house for $242,500. This and other photographs of carved rhinoceros horns were found on Wei’s cell phone.
Rhinoceros are an herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under United States and international law, and all black rhinoceros species are endangered. Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by 178 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets. Nevertheless, the demand for rhinoceros horn and black market prices have skyrocketed in recent years due to the value that some cultures have placed on ornamental carvings, good luck charms or alleged medicinal purposes, leading to a decimation of the global rhinoceros population. As a result, rhino populations have declined by more than 90 percent since 1970. South Africa, for example, has witnessed a rapid escalation in poaching of live animals, rising from 13 in 2007 to 668 in 2012.
Mr. Ferrer commended the investigative efforts of the Special Agents of the U.S. Fish & Wildlife Service and thanked the U.S. Attorneys Offices in the Eastern District of New York and the District of New Jersey for their assistance. The case is part of “Operation Crash” (named for the term used to describe a herd of rhinoceros) which is an ongoing multi-agency effort to detect, deter, and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns. This matter is being prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald and Richard A. Udell, a Senior Counsel with the Environmental Crimes Section of the U.S. Department of Justice.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Broward County Resident Convicted in Tax Refund Fraud Scheme Using Stolen IdentitiesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announced that yesterday a jury convicted Lee Ervin Dale, 30, of Fort Lauderdale, for his participation in a tax refund scheme using stolen identities to convert government monies to his own use, and to make and present false, fictitious and fraudulent claims to the IRS. More specifically, Dale was convicted of two counts of converting government funds to his own use (income tax refund checks), six counts of making and presenting false claims to the IRS (presenting income tax returns for refunds), and two counts of aggravated identity theft.
Sentencing has been scheduled for June 17, 2013, at 9:00 A.M. before U.S. District Judge Kathleen M. Williams. At sentencing, the defendant faces a statutory maximum sentence of up to 10 years in prison on each count of theft of government funds, up to 5 years in prison on each count of making and presenting a false claim to the government, and two years consecutive to the other sentences on the aggravated identity theft charges.
According to testimony and evidence presented at trial, 291 handwritten tax returns claiming more than $2 million in refunds were filed between 2006 and 2009 using stolen identities and listing the Dale’s P.O. Box address. Although the IRS was able to prevent refund checks from being issued on most of these claims, approximately $195,000 in refund checks were mailed to Dale’s P.O. Box. Several of these checks were deposited directly into bank accounts bearing both Dale’s name and the identity theft victim’s name. Other checks were cashed at a check cashing store in Oakland Park, Florida, in exchange for cash and money orders that the Defendant then deposited into his own accounts.
Mr. Ferrer thanked the agents at IRS-CI for their work on this case. The case is being prosecuted by Assistant U.S. Attorneys Laurie E. Rucoba and Jared Strauss.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami-Based Health Care Clinic and Its Owners and Operators Sentenced for $50 Million Fraud SchemeRead the Press Release
The owners and operators of Biscayne Milieu, a Miami-based mental-health clinic, and the clinic itself were sentenced today for their participation in a Medicare fraud scheme involving the submission of more than $50 million in fraudulent billings to Medicare, announced 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.
Antonio Macli, 73, Jorge Macli, 41 and Sandra Huarte, 49, all of Miami, and Biscayne Milieu were sentenced by U.S. District Judge Robert N. Scola Jr. in the Southern District of Florida. Antonio Macli was sentenced to serve 360 months in prison; Jorge Macli was sentenced to serve 300 months in prison; and Huarte was sentenced to serve 262 months in prison. In addition, Biscayne Milieu, the corporate entity these defendants controlled, was sentenced to one year of probation. In addition to their prison terms, Antonio Macli, Jorge Macli and Huarte were each sentenced to serve three years of supervised release. Restitution payments for each of the defendants will be determined on April 25, 2013.
The defendants were each convicted on Aug. 24, 2012, of conspiracy to commit health care fraud, at least one substantive count of health care fraud, and conspiracy to offer and pay kickbacks following a two-month jury trial. Antonio and Jorge Macli and Huarte were also each convicted of conspiracy to commit money laundering and substantive money laundering counts at trial.
According to the evidence at trial, Biscayne Milieu was a closely held, family-run fraudulent clinic that was owned by Antonio Macli and his son Jorge Macli. Antonio Macli’s daughter Sandra Huarte was an executive at the clinic. Together the defendants created and oversaw a scheme in which they, along with their co-defendants, submitted over $50 million in false and fraudulent claims to Medicare through Biscayne Milieu, which purportedly operated a partial hospitalization program (PHP) – a form of intensive treatment for severe mental illness. Instead, the defendants devised a scheme in which they paid patient recruiters to refer ineligible Medicare beneficiaries to Biscayne Milieu for services that were never provided or that were not reimbursable under applicable Medicare rules. Many of the patients admitted to Biscayne Milieu that they were not eligible for PHP treatment because they were chronic substance abusers, suffered from dementia and would not benefit from group therapy, or were not mentally ill and were procuring false diagnoses of mental illness in order to obtain exemptions from the civics portion of the U.S. citizenship application.
The evidence at trial further showed that Antonio and Jorge Macli and Huarte collectively paid patient recruiters more than $1 million in illegal kickbacks to recruit Medicare patients who were ineligible for PHP treatment. Biscayne Milieu then billed Medicare for tens of millions of dollars in PHP treatments for these patients. Antonio and Jorge Macli and Huarte also hired doctors, therapists and other health care professionals to further their massive illegal scheme. Along with co-conspirators working at their direction, they created falsified medical records intended to conceal their Medicare fraud and phony “case manger” contracts in an attempt to hide their extensive illegal kickbacks.
Antonio Macli was the initiator of the fraud scheme, enlisted his son and daughter to participate in it and had primary control over the clinic’s bank accounts that received money stolen from Medicare that was then used to pay illegal kickbacks.
Jorge Macli was most responsible for the clinic’s day-to-day operations and took steps, on a daily basis, to conceal and further the fraud, including deflecting complaints from patients and staff and paying bribes to patients in exchange for their silence.
Huarte oversaw both the kickback payments and the Medicare billings for the clinic. Huarte ensured that Biscayne Milieu’s fraudulent claims could pass scrutiny by Medicare by creating fraudulent paperwork and medical files, and soliciting other employees to do the same, so that these false claims were paid.
Evidence further revealed that Antonio and Jorge Macli and Sandra Huarte engaged in a sophisticated scheme to use a series of ostensibly legitimate corporations to conceal and launder Biscayne Milieu’s fraudulent profits.
Various owners, doctors, managers, therapists, patient brokers and other employees of Biscayne Milieu have also been charged with various health care fraud, kickback, money laundering and other offenses in two indictments unsealed in September 2011 and May 2012. Biscayne Milieu, its owners, and more than 25 of the individual defendants charged in these cases have pleaded guilty or have been convicted at trial.
The case is being prosecuted by Assistant U.S. Attorneys for the Southern District of Florida Michael Davis, Marlene Rodriguez and James V. Hayes. Hayes was formerly a Trial Attorney in the Criminal Division’s Fraud Section. The case was investigated by the FBI with the assistance of HHS-OIG, and was brought by the U.S. Attorney’s Office for the Southern District of Florida in coordination with 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 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and 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.
Miami Man Sentenced for His Role in A $3.3 Million Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), Miami Field Office, and Rafael P. Hernandez, Jr., Chief, North Miami Beach Police Department, announced that defendant Arthy Icart, 25, of Miami, was sentenced yesterday for his participation in a $3.3 million stolen identity tax refund fraud scheme. Specifically, U.S. District Judge Joan A. Lenard sentenced Icart to 70 months in prison, to be followed by 3 years of supervised release. Icart had previously pled guilty to charges of conspiracy to file fraudulent claims, access device fraud, and aggravated identity theft.
On October 5, 2012, Arthy Icart and co-conspirator Charlton Escarmant, 29, of Miami, were charged in a five-count indictment for their participation in an identity theft tax refund scheme. According to testimony and evidence presented at trial, some of the personal identification information used by Icart and Escarmant to file fraudulent tax returns was stolen from Tallahassee Community College’s (TCC) financial aid office. In fact, more than 3,200 names found on a computer in Escarmant’s possession came from TCC.
To execute the scheme, Icart and Escarmant filed tax returns using the stolen identification information and also in their own name and created false W-2 forms with fictitious employer information. Icart’s W-2 falsely claimed the he worked at Memorial Regional South Auxiliary. Escarmant’s W-2 form falsely claimed that he was a veterinarian at Central Broward Animal Hospital. IRS Special Agents contacted the employers listed on both Icart and Escamant’s W-2 and the employers confirmed that neither defendant ever worked for them.
At the time of their arrest, Icart and Escarmant unlawfully possessed approximately 22 pre-paid tax debit cards in the names of other individuals. In total, during the course of the scheme, Icart and his co-conspirator submitted approximately 400 fraudulent tax returns to the Internal Revenue Service, seeking more than $3.3 million in tax refunds.
Sentencing for Charlton Escarmant has been scheduled for June 17, 2013, before U.S. District Judge Lenard. At sentencing, he faces a possible statutory maximum sentence of 24 years in prison.
Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to the IRS-CI and the North Miami Beach Police Department. Mr. Ferrer also thanked the Tallahassee Community College for their cooperation during this investigation. The case is being prosecuted by Assistant U.S. Attorneys Michael B. Nadler and Elina Rubin-Smith.
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 Sentenced to Lengthy Prison Terms in Shooting Death of Brinks Guard at Calder CasinoRead 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 Matthew Boyd, Chief, Miami Gardens Police Department, announce today’s sentencing of Vladimir Louissant, of Miami Gardens, Victoria Barkley, of Miami Gardens, and Byron Kyler, of Miami, in connection with the August 21, 2011 shooting death of a Brinks guard at the Calder Casino and Race Course (Calder) in North Miami, Florida. Co-defendants Reginald Mitchell, of Miami Gardens, and Uri Ammar, of Hollywood, have not been sentenced yet. Sentencing for defendant Ammar is scheduled for April 18, 2013.
At today’s sentencing hearing, U.S. District Judge James Lawrence King sentenced Louissant to life in prison. Barkley was sentenced to 10 years in prison, and Kyler was sentenced to 5 years in prison, both sentences to be followed by three years of supervised release.
According to documents filed with the court and evidence presented during trial, on August 21, 2011, Mitchell and Ammar conspired to rob a Brinks guard as he made a scheduled pick-up at Calder. Mitchell and Ammar both worked security at Calder, where Ammar was a Security Shift Manager. Mitchell recruited co-defendants Louissant, Barkley and Kyler. On the day of the murder, Mitchell drove Louissant to Calder in Kyler’s truck, which Kyler had falsely reported stolen.
According to the trial evidence, Ammar escorted the Brinks guard through the Calder facility and led him to an open area, where Louissant was waiting. As Ammar and the guard entered the open area, Louissant rushed at the guard, brandishing a firearm. When the guard drew his weapon, Louissant shot the guard and the two exchange gunfire. After shooting the guard, Louissant grabbed the Brinks money bag and fled to Kyler’s truck. Mitchell and Louissant then drove a short distance in Kyler’s truck, which they abandoned to be driven away from the scene by Barkley in another vehicle.
Mr. Ferrer commended the FBI and Miami Gardens Police Department for their work on this case. Mr. Ferrer also thanked the members of the FBI’s South Florida Violent Crimes and Fugitive Task Force. This case was prosecuted by Assistant U.S. Attorneys Michael Gilfarb and Seth Schlessinger.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Margate City Commissioner Indicted on Federal Bribery ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced the unsealing of a three-count indictment charging David McLean, 50, a City Commissioner for the City of Margate and a board member on the Margate Community Redevelopment Agency Board (MCRA), with bribery in connection with programs receiving federal funds. McLean made his initial appearance in federal court this morning before U.S. Magistrate Judge Lurana Snow in Fort Lauderdale. If convicted, the defendant faces a maximum statutory sentence of up to 10 years on each count.
The indictment charges defendant David McLean with three counts of bribery in connection with a program receiving federal funds, in violation of Title 18, United States Code, Section 666. More specifically, the indictment alleges that on May 25, 2012, McLean, while a Margate city commissioner, knowingly and corruptly accepted $1,000 in cash and an $8,000 release of back rent, in exchange for his influence in connection with the award of a Margate occupational license (Count 1). The indictment further alleges that on November 2, 2012, McLean accepted $3,000 in cash in exchange for his influence in connection with a $25,000 MCRA construction grant (Count 2). Lastly, the indictment alleges that on January 30, 2013, McLean accepted another $2,000 in cash in exchange for his influence in connection with the $25,000 MCRA construction grant.
U.S. Attorney Wifredo Ferrer stated, “Public officials who sell their office and their influence to line their own pockets with cash undermine the good work of all hard-working public servants, who labor for the public good. That is why corruption in government, at any level, will simply not be tolerated.”
“Investigating public corruption remains one of the FBI’s top priorities. This indictment represents our commitment to investigate corrupt acts and the individuals who are behind them,” said Assistant Special Agent in Charge Scott A. Gilbert, FBI Miami Division. “We encourage anyone who may have information about corruption to come forward and report it.”
Mr. Ferrer commended the investigative efforts of the FBI. The case is being handled by Assistant U.S. Attorney Neil Karadbil.
An indictment is only an accusation and a defendant is presumed innocent unless 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.
Patient Recruiter for Miami Home Health Company Sentenced to 36 Months in $20 Million Health Care Fraud SchemeRead the Press Release
A patient recruiter for a Miami health care company was sentenced yesterday to serve 36 months in prison for his participation in a $20 million home health Medicare fraud scheme, announced 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 Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami Office.
Vladimir Jimenez, 43, was sentenced by U.S. District Judge Joan A. Lenard in the Southern District of Florida. In addition to his prison term, Jimenez was sentenced to serve two years of supervised release and ordered to pay $950,000 in restitution, jointly and severally with co-defendants.
In January 2013, Jimenez pleaded guilty to one count of conspiracy to receive health care kickbacks.
According to court documents, Vladimir Jimenez was a patient recruiter who worked for Serendipity Home Health, a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries.
According to court documents, from approximately April 2007 through approximately March 2009, Jimenez recruited patients for Serendipity, and in doing so solicited and received kickbacks and bribes from the owners and operators of Serendipity in return for allowing Serendipity to bill the Medicare program on behalf of the patients Jimenez had recruited. These Medicare beneficiaries were billed for home health care and therapy services that were medically unnecessary and/or not provided.
From approximately January 2006 through March 2009, Serendipity submitted approximately $20 million in claims for home health services that were not medically necessary and/or not provided. Medicare actually paid approximately $14 million for these fraudulent claims.
As a result of Jimenez’s participation in the illegal scheme, the Medicare program was fraudulently billed more than $400,000 for purported home health care services.
In a related case, on June 21, 2012, Ariel Rodriguez and Reynaldo Navarro, the owners and operators of Serendipity, were sentenced to 73 and 74 months in prison, respectively, following guilty pleas in March 2012 to one count each of conspiracy to commit health care fraud.
This case is being prosecuted by Assistant Chief Joseph S. Beemsterboer 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 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and 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.
Owner of Miami-Dade Wholesale Distributing Company Sentenced in Tax Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), announced that defendant David Bradman, 54, of Miami, was sentenced yesterday afternoon to 12 months and 1 day in prison, to be followed by 1 year of supervised release for his role in a tax fraud scheme. The court also ordered Bradman to perform 200 hours of community service during supervised release. A restitution hearing is scheduled for June 3, 2013. Bradman had previously pled guilty to one count of making false income tax returns for an S Corporation, Forms 1120S, in violation of Title 26 U.S.C § 7206(1) for tax year 2005.
According to statements made in court and documents filed in the case, Bradman was the sole owner and operator of Diplomat Trading, Inc., in Miami, Florida. The company was a wholesale distributor of consumer electronics that exported merchandise to Latin America. In 2000, a scheme was devised in which the defendant and others set up a Panamanian corporation, CHF Electronics (CHF), and opened a bank account in the company’s name in Panama. Thereafter, on October 20, 2002, a false note was created to make it appear as though Diplomat Trading had borrowed $6,301,008.16 from CHF Electronics. The note was signed by Bradman. Checks representing purported payments on this note were sent from Diplomat Trading to CHF Electronics. Bradman inflated the amounts listed as mortgages, notes and bonds payable, and the corresponding interest deductions, in his tax returns for his S Corporation, Forms 1120S, in the name of Diplomat Trading, Inc. Bradman created the illusion of a bona fide commercial business relationship between Diplomat Trading and CHF Electronics. In fact, however, Bradman controlled both Diplomat Trading and CHF Electronics, and knew that these two companies did not have a genuine commercial business relationship.
In addition, according to documents filed with the court, Bradman used CHF Electronics to cycle money for his personal use. In 2005, Bradman had a second company, MDA Inversiones, incorporated in Panama. Approximately $700,000 was moved from CHF’s bank account in Panama to a Panamanian bank account for MDA Inversiones. A majority of those funds were then wired to the United States so that Bradman could purchase two properties in Miami, Florida.
Mr. Ferrer commended the investigative efforts of the Internal Revenue Service, Criminal Investigation Division. This case is being prosecuted by Assistant U.S. Attorney Lois Foster-Steers.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Palm Beach County Man Convicted as Felon in Possession of A FirearmRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and G. Matthew Immler, Chief, Boynton Beach Police Department, announced today that following a three day trial in West Palm Beach, Florida, a jury convicted defendant William W. Boatley, 34, of Palm Beach County, of possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(e).
Sentencing is scheduled for June 29, 2013 before U.S. District Judge Kenneth A. Marra. At sentencing, the defendant faces a mandatory minimum sentence of 15 years up to a maximum term of life imprisonment, to be followed by up to 5 years of supervised release.
According to evidence presented at trial, on August 18, 2012, Boynton Beach Police patrol officers observed a vehicle illegally parked with an expired license plate while on routine patrol. While running from the police, the defendant was observed throwing an object, which was later recovered and determined to be a .22 caliber H & R revolver. The firearm was loaded with nine .22 caliber rounds of ammunition. According to evidence introduced in trial, the defendant had previously been convicted of a number of felony offenses and was not legally able to carry a firearm.
Mr. Ferrer commended the investigative efforts of ATF and the Boynton Beach Police Department. The case is being prosecuted by Assistant U.S. Attorney Jennifer C. Millien.
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.