Southern District of Florida

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and J.D. Patterson, Director, Miami-Dade Police Department (MDPD), announced arrests of defendants Marco Cruz, 47, of Hialeah, and Ramses Llufrio, 38, of Hialeah. The charges arise from the May 14, 2013 theft of gold bars worth an approximate value of $625,000 from American Airlines Flight 902, a flight that arrived at Miami International Airport from Guayaquil, Ecuador. The defendants are scheduled for an initial appearance today at 1:30 p.m. before U.S. Magistrate Judge Jonathan Goodman.

The criminal complaint against Cruz charges him with, among other things, knowingly stealing gold bars which were part of a foreign shipment of property, in violation of Title 18, United States Code, Section 659. According to the allegations in the complaint, Flight 902 was a passenger flight that also contained cargo. After the flight arrived at Miami International Airport, airline employees removed the cargo, which included six boxes of gold bars. When airline employees noticed that one box of gold bars had gone missing, they notified law enforcement of the theft. Cruz, who works as a Fleet Service Clerk, had access to Flight 902 on the morning of its arrival. As part of its investigation into the theft, law enforcement interviewed employees at the airline, including Cruz. Although Cruz initially denied involvement in the theft, he gave law enforcement consent to search his home. In his home, law enforcement found one of the stolen bars and $200,000 in cash. Cruz later provided law enforcement with an additional $50,000 in cash.

The criminal complaint against Llufrio charges him with receiving one of the stolen gold bars, knowing that it had been stolen, in violation of Title 18, United States Code, Section 659. According to the allegations in the complaint, Llufrio owns a pawn shop located at 548 NW 57th Avenue, Miami, FL, 33126. The complaint alleges that Cruz delivered a total of five gold bars to Llufrio and received approximately $250,000 in cash as a result of these transactions. Llufrio allegedly accepted one of the bars immediately after Cruz informed him that the bar was “hot.”

If convicted, the defendants face a maximum of ten years imprisonment.

Mr. Ferrer commended investigative efforts of the FBI, the Miami-Dade Police Department, the City of Miami Police Department and the Coral Gables Police Department. This case is being handled by Assistant U.S. Attorney John Byrne.

A criminal complaint is merely an accusation and a defendant is presumed innocent unless and until proven guilty.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

Sixty-nine defendants charged to date by USAO on timeshare resale telemarketing fraud

At a press conference held in Miami today, Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Darin M. Didier, Acting Supervisory Special Agent, Federal Bureau of Investigation (FBI), Miami Field Office, and Ronald Verrochio, Inspector in Charge, U.S. Postal Inspection Service, Miami Field Office, joined Charles A. Harwood, Acting Director, Federal Trade Commission’s (FTC) Bureau of Consumer Protection, Florida Attorney General Pam Bondi, and Jay Levenstein, Deputy Commissioner, Florida Department of Agriculture and Consumer Services, to highlight to their respective offices’ efforts in combatting timeshare property resale fraud in Florida and around the country.

According to the FTC, 191 actions were brought by the FTC and its law enforcement partners around the nation. Of these actions, the U.S. Attorney’s Office for the Southern District of Florida claimed 18 criminal cases, charging a total of 69 defendants, between 2011and 2013.

U.S. Attorney Wifredo A. Ferrer, focusing his remarks on Florida, stated, “We cannot allow our elderly and vulnerable real property owners to continue to be the target of fraud schemes. For that reason, our respective offices – federal and state, criminal and civil – have joined forces to combat Florida-based fraud schemes victimizing timeshare unit owners across the country. These victims, many of them elderly or in financial distress, looked to sell their units to help make ends meet or pay other bills. Instead, they were defrauded out of more than $14 million in total. Such fraud will not be tolerated.”

According to Charles A. Harwood, Acting Director of the Federal Trade Commission’s Bureau of Consumer Protection, “Timeshare resale scammers have cheated tens of thousands of timeshare owners out of tens of millions of dollars by convincing them to pay for a false promise. But law enforcement at virtually every level of government is working together to put an end to the problem.”

“We will continue to pursue scam artists who attempt to essentially steal from timeshare owners, and the Timeshare Resale Accountability Act that I worked with the Legislature on in 2012 is already having a great effect on ending this type of fraud. With strong partnerships among federal, state and local leaders, we will continue to protect Floridians,” stated Florida Attorney General Pam Bondi.

“If you think you are the victim of a timeshare scam, file a complaint with your state attorney general’s office and the Internet Crime Complaint Center,” said Darin M. Didier, acting Supervisory Special Agent assigned to FBI Miami Division. “To avoid becoming a victim of this type of crime take a few prudent steps such as; do not agree to anything on the phone or online until you have had a chance to check out the reseller, get all information in writing, verify that the reseller’s agents are properly licensed and ask about fees and timing. Go to the FBI’s and FTC’s websites for more important tips.”

Ronald Verrochio, Inspector in Charge, U.S. Postal Inspection Service, Miami Field Office, stated “The timeshare resale fraudsters sound legitimate and convincing, but put pressure on victims to make decisions quickly. Hopefully the arrests of these fraudsters and dismantling of their criminal organizations will bring light to this rising fraud and educate the community. Our goal is to stop the crime and educate community members on these scams so they don’t become victims.”

“These scam artists defrauded consumers in Florida and across the country out of millions of dollars, often through illegal telemarketing,” said Commissioner of Agriculture Adam H. Putnam. “We’re proud to partner with other state and federal officials to protect consumers from further harm and bring justice to those who have violated the law.”

Among the criminal cases recently prosecuted by the U.S. Attorney’s office are the following:

1. U.S. v. Pappalardo et al.,, 13-60049-CR-Dimitrouleas (15 defendants charged) 2. U.S. v. Faraguna et al.,11-60247-CR-Marra (13 defendants charged) 4. U.S. v. Davis, 11-60268-CR-Hurley (1 defendant charged) 5. U.S. v. Friedman et al., 12-60019-CR-Scola (4 defendants charged) 6. U.S. v. Spinelli et al., 12-60149-CR-Scola (5 defendants charged) 7. U.S. v. Crapella and Walker, 12-mj-6114-Rosenbaum (2 defendants charged

These seven cases charge a total of 41 defendants with various counts, including conspiracy to commit mail fraud, conspiracy to commit wire fraud, and conspiracy to commit money laundering.

According to the charging documents and other documents filed with the court, Timeshare Mega Media and Marketing Group, Inc. (TMMMG) was a timeshare telemarketing room that operated in Fort Lauderdale, Florida, from July 2009 through May 2010. According to the allegations in the indictment, the defendants conspired to unlawfully enrich themselves by making false representations over the telephone to individuals who were trying to sell their time-share units. Among the false statements, the defendants would tell customers, most of who lived outside of the State of Florida, that the defendants had successfully sold their time-share unit and asked the customer to pay a fee to finalize the sale, which fee would purportedly be refunded at closing. This fee ranged from at least $1,996 to as much as $10,000. In fact, however, there were no buyers for their units, and the defendants kept the victims’ money for their personal use. During the ten months that TMMMG was in business, it fraudulently induced more than 2,000 victims to send approximately $5,000,000 to TMMMG.

Among the 41 defendants are the owners of TMMMG, Pasquale Pappalardo and Joseph Crapella, 33 top salespeople, and 6 others who handled customer service, verification, leads, payroll and other vital functions for TMMMG. To date, 23 of the 41 defendants charged in these 7 related cases have pled guilty and have received sentences ranging from 5 years to 3 months in prison, 6 defendants have pled guilty and are awaiting sentencing, 2 defendants are fugitives, 1 defendant is deceased, and the remaining 9 defendants are pending trial. If convicted, the defendants face a maximum statutory sentence of up to 20 years in prison on each count of conspiracies to commit mail fraud, wire fraud, and money laundering. This series of cases is being prosecuted by Assistant U.S. Attorney Jeffrey Kaplan.

In addition to the cases identified above, the Northern Division of the United States Attorney’s Office prosecuted 11 cases, which charged a total of 28 defendants with various counts, including conspiracy to commit mail fraud and conspiracy to commit wire fraud. These 11 cases involved two timeshare fraud rings which operated in Palm Beach County, but solicited victims throughout the United States. The defendants would typically operate a company for 4 to 10 months, and then, to avoid detection by law enforcement, close the company and reopen under a new name. The new company would operate in the same fashion as the original company with many of the same owners, managers and salespeople.

The first ring involved 6 companies which solicited approximately $7 million in advance fees from approximately 3,000 timeshare owners. The second ring involved 7 companies which solicited approximately $2.7 million from approximately 1,200 timeshare owners. According to the charging documents and other documents filed with the court, both rings involved essentially the same scheme. Defendants in these cases cold called timeshare owners and made false representations to induce them to pay advance fees for purported timeshare marketing and sales services. Among the false statements, the defendants would tell customers that the companies had successfully sold or would sell their timeshare units, that the companies would handle the appraisals, title searches, closings, and other services associated with the sales, and that the companies would use the advance fees to cover the necessary costs associated with the sales. In truth, the defendants never located a single buyer, never completed a single sale of a timeshare unit, and never used the advance fees for anything other than their own personal benefit.

Among the 28 defendants prosecuted in connection with these 2 rings were the company owners, managers, top salespeople, and an individual who allowed one of the companies to use his merchant account to process victim credit card payments. To date, 18 of the 28 defendants charged in these 11 cases have pled guilty and received sentences ranging from 6 months to 151 months, 5 defendants have pled guilty and are awaiting sentencing, 4 defendants are scheduled to plead guilty, and 1 is a fugitive. The defendants in these cases face a maximum statutory sentence of up to 20 years in prison on each conspiracy count. These cases are being prosecuted by Assistant U.S. Attorneys Adrienne Rabinowitz and Kerry Baron.

A complete list of the cases prosecuted by the United States Attorney’s Office for the Southern District of Florida is attached.

Mr. Ferrer commended the investigative efforts of the FBI and U.S. Postal Inspection Service in the criminal cases. Mr. Ferrer also recognized the invaluable support and assistance provided by the FTC during these investigations.

Attachment:

List of Cases (PDF)

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announced that defendant Johnny Alexander Melo, 36, of Miramar, was sentenced today for his participation in an identity theft tax refund scheme. Melo was sentenced to 60 months of imprisonment, followed by one year of supervised release. In addition, U.S. District Judge Robert N. Scola ordered Melo to pay restitution of $18,594.63 to the IRS. Melo previously pled guilty to one count of conspiracy to use a false identification document, one count of possession of five or more identification documents, one count of theft of government funds and one count of aggravated identity theft. The defendant was remanded to the custody of the U.S. Marshals Service following the hearing.

On October 5, 2012, defendant Melo was charged in a ten (10) count indictment for his participation in an identity theft tax refund scheme. According to the indictment, defendant Melo and his co-conspirators stole personal identification information and used the stolen information to file false tax returns in the identities of at least 22 individuals. The U.S. Treasury issued tax refund checks in the names of those individuals. Melo then attempted to cash these fraudulently obtained tax refund checks by using false driver’s licenses in the names of the stolen identities.

Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to the FBI and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Michael B. Nadler.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Paula A. Reid, Special Agent in Charge, United States Secret Service (USSS), Ronald Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Field Office, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced the sentencing of defendant Jesus Calvo, 30 of Cutler Bay, for his role in an identity theft tax refund fraud scheme, to 58 months in prison, to be followed by 3 years of supervised release. U.S. District Judge Jose Martinez also ordered the defendant to pay $9.2 million in restitution to the Internal Revenue Service.

According to the factual proffer, the defendant operated a check cashing store called J&S Taxes in Perrine, Florida. Beginning in or around February 2012, and continuing through in or around June 2012, the defendant cashed thousands of fraudulently obtained United States Department of Treasury income tax refund checks (totaling approximately $12MM) that were brought by co-conspirators. The defendant knew that the checks had been obtained by fraud and without authorization of the true taxpayer.

According to the factual proffer, the defendant received more than the standard fee for cashing the checks because the tax-refund checks had been obtained by fraud. The standard fee for cashing these checks would have been from two to five percent. However, the defendant took much more than that fee and used this money for his own personal expenditures – he purchased two houses, he funded his retirement account, he invested in a “start-up company,” he purchased an investment property, and he purchased cars and other items.

According to the plea agreement and statements made in court, the defendant agreed to forfeit two houses, five cars, three bank accounts, high-end watches, jewelry and cash. These assets had an estimated value of approximately $2 million.

Mr. Ferrer thanked IRS-CI, USSS, USPIS, and FBI for their work on this case. The case is being prosecuted by Assistant U.S. Attorneys Michael N. Berger, Evelyn Sheehan and Elijah Levitt.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, announce yesterday’s sentencing of defendants Vincent Olavarria, Jr., 46, and Darren D. Cuff, 26, both of Port St. Lucie, on charges of conspiracy to violate federal firearms sales laws and making false statements to a federal officer. Olavarria had previously pled guilty to conspiracy to violate federal firearms laws, in violation of Title 18, United States Code, Section 371. Cuff had previously pled guilty to making false statements to a federal officer, in violation of Title 18, United States Code, Section 1001, in the course of the investigation of this case. At yesterday’s hearing, U.S. District Judge K. Michael Moore sentenced Olavarria to 34 months in prison to be followed by two years of supervised release; Judge Moore sentenced Cuff to 21 months in prison to be followed by two years of supervised release.

From March 2010 through December 2011, defendant Olavarria was a federally licensed firearms dealer in Port St. Lucie. Olavarria conspired with other defendants including defendant Cuff to falsify firearms sales records and conceal the actual buyers and true destination of sixty rifles that Olavarria had sold to an undocumented buyer. In concert with Olavarria and at his direction, Cuff and others pretended to be the buyers, and lied to ATF agents investigating the sales and transfer of the rifles, claiming to have taken the rifles and resold them on the street, when in fact they had all gone to another purchaser as yet unknown to ATF.

Mr. Ferrer commended the investigative efforts of the ATF. The case is being prosecuted by Assistant U.S. Attorney Theodore Cooperstein.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

Michael P. Jackson, 40, of Carmi, Ill., was sentenced yesterday in the U.S. District Court for the Southern District of Florida to serve 72 months in prison for selling the prescription drug known as Adderall, from 2009 to 2012, to a Florida woman who operated an illegal Internet-pharmacy business. Jackson also was sentenced to three years of supervised release.

According to the Dec. 6, 2012, indictment, defendant Jackson supplied his co-defendant Lina Rodriguez with pills of Adderall, which contains amphetamine, a Schedule II controlled substance. As defendant Jackson was aware and intended, co-defendant Rodriguez resold the Adderall pills through an Internet business she owned and operated in southern Florida.

“This prosecution aims to curb the sale of dangerous drugs to United States citizens,” said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division of the U.S. Department of Justice. “The controlled substance drugs allegedly sold by the defendants were not dispensed by U.S. licensed pharmacies, and were not prescribed by any physician. Along with FDA, the U.S. Postal Inspection Service, and our other law enforcement partners, we will continue to protect our citizens from unsafe and potentially harmful drugs.”

Jackson pled guilty to the lead count of the indictment on March 11, 2013, which charged him and Rodriguez with conspiring to possess with the intent to distribute Adderall. Pursuant to his plea agreement, Jackson agreed not to oppose a judgment against him in the amount of $18,862, as gross proceeds of the offense to which he pleaded guilty. Rodriguez was sentenced to 72 months’ imprisonment on April 22, 2013.

The case was investigated by the Miami Field Office of the U.S. Food & Drug Administration’s Office of Criminal Investigations; the Miami Division of the U.S. Postal Inspection Service; and the Sacramento Field Office of the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Kevin J. Larsen of the U.S. Attorney’s Office for the Southern District of Florida, and Perham Gorji, Trial Attorney for the U.S. Department of Justice’s Consumer Protection Branch.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kenneth Mascara, Sheriff, St. Lucie County Sheriff’s Office (SLCSO), announced today that U.S. District Judge K. Michael Moore sentenced Cameron Dean Bates, 46, of Port Saint Lucie, to 20 years imprisonment, followed by 15 years of supervised release.

According to testimony at trial, in March 2011, SLCSO detectives and members of the South Florida Internet Crimes against Children (ICAC) Task Force began an Internet investigation using Peer-to-Peer (P2P) software. During this investigation, law enforcement found that between December 2010 and June 19, 2012, several internet protocol (IP) addresses linked to Cameron Dean Bates in both St. Lucie County and Palm Beach County were used to download and share child pornography files. Detectives reviewed a number of the files associated with the IP addresses, and confirmed that the files contained child pornography.

On June 29, 2012, a state authorized search warrant was executed at Bates’ residence in Port Saint Lucie, Florida. During the search, law enforcement seized a Dell black/silver laptop computer from Bates’ car. An on-sight forensic preview scan of the computer found numerous, non-deleted, child pornography images and videos, which included a minor child engaging in sexually explicit conduct. A full forensic analysis of Bates’ laptop revealed numerous images and videos of child pornography, along with personally produced adult pornography by Bates.

Mr. Ferrer commended the investigative efforts of the St. Lucie County Sheriff’s Office and HSI for their assistance and their work on this case. The case is being prosecuted by Assistant U.S. Attorneys Carmen Lineberger and A. Marie Villafana.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, announce today’s sentencing of defendant Jose Antonio Delgado, 46, of Fort Pierce, on charges of unlawful possession of stolen firearms. Delgado had previously pled guilty to possession of a stolen handgun, in violation of Title 18, United States Code, Sections 922(j) and 924(a)(2). At today’s hearing, U.S. District Judge K. Michael Moore sentenced Delgado to 120 months in prison to be followed by three years of supervised release.

On November 14, 2012, defendant Delgado was arrested by officers of the St. Lucie County Sheriff’s Office, after he was spotted carrying a prohibited firearm in public and fled police pursuit into his home in Fort Pierce. Following Delgado’s surrender to the police who surrounded the home, a state search warrant issued for the home. The search resulted in the seizure of two firearms found in Delgado’s home (a .22 caliber TEC-22 short barreled rifle modified with an added stock, and a homemade silencer) as well as the .40 caliber Smith & Wesson handgun Delgado was carrying as he fled police, which was found outside on the ground. According to court records, Delgado had been deprived of the right to possess firearms following previous felony convictions. Judge Moore imposed the maximum sentence under federal law, noting the defendant’s extensive criminal history going back to the age of nine years old.

Mr. Ferrer commended the investigative efforts of ATF, the Fort Pierce Police Department, and the St. Lucie County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Theodore Cooperstein.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s, Homeland Security Investigations (ICE-HSI), Miami Field Office, U.S. Consumer Product Safety Commission (CPSC), and Vernon Foret, Director Field Operations, U.S. Customs and Border Protection (CBP), Miami Field Office, announced today that defendants Hung Lam, 55, and Isabella Kit Yeung, 37, both of Miami-Dade County, and Florida corporations LM Import-Export, Inc. (LM), Lam’s Investment Corp. (LIC), and LK Toys Corporation, (LK) were sentenced for violations regarding the smuggling of hazardous children’s products from China.

Lam was sentenced by U.S. District Court Judge Kathleen M. Williams to 22 months incarceration, a $10,000.00 fine, three years of supervised release and a $200 special assessment. LM, LIC, and LK were sentenced to five years’ probation and an $800 special assessment. Yeung was sentenced to one year of probation, a $1,000 fine and $25 special assessment. In addition, a forfeiture judgment and order in the amount of $862,500 was imposed against the defendants. The judgment also ordered the forfeiture of property imported by defendants and seized by the United States.

The sentencing was based on defendant Hung Lam’s earlier guilty plea to one count of conspiracy to traffic and smuggle children’s products, including toys, containing banned hazardous substances, such as lead and small parts, in violation of 18 U.S.C. § 371, and one count of trafficking in counterfeit goods, in violation of 18 U.S.C. § 2320. Co-defendant Isabella Kit Yeung pled guilty to one misdemeanor count of submitting a false label country of origin, in violation of 19 U.S.C. §1304(a).

According to the documents filed with and statements made in court, from approximately April 2000 through May 2011, defendants Lam, LM, LIC, and LK conspired to sell and distribute in commerce children’s products imported from China in violation of the Consumer Product Safety Act and the Federal Hazardous Substances Act. These products allegedly presented the risk of choking, aspiration, and ingestion, and some contained lead above the allowed statutory limits. The defendants imported these products by means of false statements on custom declaration forms. Yeung was charged with the misdemeanor count of importing goods without the required country of origin labeling.

Mr. Ferrer commended the investigative efforts of ICE-HSI, CPSC, and CBP. This case is being prosecuted by Assistant U.S. Attorneys Norman O. Hemming, III and Daren Grove.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Ronald Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Field Office, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), announced today the sentencing of defendant Rene Suarez-Basanta, 67, to imprisonment for receiving kickbacks from a home health agency.

Defendant Suarez-Basanta was sentenced by U.S. District Judge Ursula Ungaro to 12 months imprisonment, to be followed by three years of supervised release. Suarez-Basanta was also ordered to pay restitution to the Medicare trust fund in the amount of $16,740.57. Judge Ungaro cited the need to deter this behavior in the community as a factor in issuing the sentence.

The conviction of Suarez-Basanta stemmed from the investigation of Safe Home Health Care, Inc., a home health agency in Miami that was offering and paying kickbacks to obtain beneficiaries to serve as patients for home health services, mostly physical therapy. Conspirators at the agency used the beneficiary information to bill Medicare. Defendant Suarez-Basanta and co-defendant Marta Gonzalez were convicted of conspiring to pay and receive kickbacks. Defendant Gonzalez was also convicted of two additional counts for soliciting and accepting kickbacks in exchange for serving as a patient of Safe Home Health Care, Inc. and having her parents serve as patients of Safe Home. Defendant Gonzalez was sentenced to 15 months imprisonment and three years of supervised release. Judge Ungaro had previously sentenced co-defendant Jorge Sell to 97 months imprisonment and three years of supervised release.

In total, nine defendants have been convicted of paying and receiving health care kickbacks in this investigation.

Mr. Ferrer commended the investigative efforts of the U.S. Postal Inspection Service, FBI, and HHS-OIG. The case was prosecuted by Assistant U.S. Attorney Eric Morales.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced that Robert J. Vitale, 42, of Ft. Lauderdale, Florida, was charged by Information with obstruction of proceedings and providing false testimony before the U.S. Securities and Exchange Commission (SEC). Specifically, the Information charges one count of obstruction of proceedings before an agency of the United States, in violation of Title 18, United States Code, Section 1505, and one count of perjury, in violation of Title 18, United States Code, Section 1621. Vitale faces a potential sentence of up to five years imprisonment and a $250,000 fine as to each count.

According to the Information, in or around May 2012, the SEC was conducting an official investigation into allegations that Vitale engaged in violation of the securities laws. As part of the investigation, the SEC attempted to identify assets and bank accounts attributable to Vitale. On or about June 4, 2012, Vitale completed and provided to the SEC, a “Background Questionnaire” form purporting to list bank accounts and other assets attributable to him. Shortly before completing the questionnaire, Vitale transferred $100,000 from an account that was disclosed on the form, to a separate account that he controlled.

As alleged in the Information, Vitale willfully failed to disclose the existence of the funds or the bank account holding the funds, to the SEC. Thereafter, on June 5, 2012, Vitale provided sworn testimony to the SEC at the SEC’s Southeast Regional Offices, in Miami, Florida. During this sworn testimony, the Information alleges, Vitale provided false testimony about his assets and accounts, as well as the accuracy of the Information provided on the form he had submitted to the SEC.

Previously, in an unrelated matter, on or about August 15, 2006, the United States District Court for the Southern District of Florida entered a Final Judgment in SEC v. Robert Vitale, et al., No. 04-60493 (the “2004 Case”), in which Vitale was, among other things, ordered to pay disgorgement and civil penalties of $100,025 for alleged violations of the federal securities laws. As of June 5, 2012, the Information alleges, Vitale had failed to satisfy his obligations from the 2004 Case.

United States Attorney Wifredo A. Ferrer stated, “The SEC plays a vital role in policing our nation’s securities markets and protecting investors from misconduct. We will not allow defendants to obstruct the SEC or provide false testimony to thwart the due administration of justice.”

“The FBI will vigorously investigate and seek prosecution of individuals who allegedly attempt to obstruct an agency of the United States from carrying out its mission, such as the SEC’s efforts to protect investors. When an individual provides false testimony or conspires to obstruct justice, our system of justice is undermined,” said Michael B. Steinbach, Special Agent in Charge, FBI Miami Division. We will continue to work with the U.S. Attorney’s office, the SEC and our other partners to safeguard the integrity of the legal system.”

Mr. Ferrer commended the investigative efforts of the FBI and the SEC. The matter is being prosecuted by Assistant U.S. Attorney Jerrob Duffy.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

Operation Smoking Gun III results in federal and state arrests of 97 individuals

Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Katherine Fernandez Rundle, Miami-Dade County State Attorney, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Firearms, Tobacco and Explosives (ATF), Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, Neil DeSousa, Acting U.S. Marshal, U.S. Marshal’s Service, and Matthew Boyd, Chief, Miami Gardens Police Department, announced the results of Operation Smoking Gun III, a concerted multi-agency effort to combat the crime and violence associated with illegal firearm and drug trafficking activity in Miami-Dade County.

The United States Attorney’s Office and its federal and state law enforcement partners are committed to reducing the crime and violence associated with illegal firearm and drug trafficking. To this end, over the past year, the U.S. Attorney’s Office, the State Attorney’s Office and federal and state law enforcement have cooperated in a number of joint investigations and prosecutions, collectively called Operation Smoking Gun III, targeting illegal firearms and drug trafficking, including the unlawful sale of prescription drugs. This proactive investigation used undercover agents to purchase guns and drugs from violent and repeat offenders.

Operation Smoking Gun III has yielded substantial results. Since its inception in June 2012, 97 individuals have been arrested on federal and state firearm and narcotics offenses. Federal charges have been brought against 22 individuals. Of those charged federally, 16 have been arrested and will be making their initial appearances in federal court tomorrow. Federal charges against the remaining 6 individuals remained sealed. In addition, approximately 80 individuals have been arrested separately on state narcotics and firearm violations.

Operation Smoking Gun III has resulted in the following seizures:

--248 firearms including 1 sawed off shotgun; --342 grams crack cocaine; --1,728 grams cocaine; --634 grams heroin; --2473 MDMA pills; --2874 Oxycodone pills; --15,208 grams of marijuana; --5 bullet proof vests; --576 Percocet pills; --10 Morphine pills;

U.S. Attorney Wifredo A. Ferrer stated, “As a result of this long-term concerted effort, 97 dangerous individuals, the vast majority of whom are previously convicted felons, their guns and their drugs, have been removed from the streets of Miami-Dade and South Florida. Working as a team, we shared intelligence, effectively multiplied our resources, and enhanced our ability to tackle violent crime in this community. We are proud of our collaborative relationship and look forward to many more successful operations -- like this one -- aimed at making our communities safer."

Katherine Fernandez-Rundle, Miami-Dade County State Attorney, stated, “Guns plus drugs always equal violence and death. That’s why such multi-agency law enforcement efforts are important. Every illegal gun dealer and drug dealer we get off the streets of Miami Gardens means less violence for the city’s citizens. Every member of our law enforcement community is committed to that essential goal.”

ATF Special Agent in Charge Hugo J. Barrera stated, “The citizens of the City of Miami Gardens can breathe a little easier tonight. Violence should never become the order of the day. The message is clear; if you choose to use a firearm to inflict violence on the innocent people of this or any other community in South Florida, you will be dealt with swiftly. Together with this seamless integration of federal, state and local law enforcement we can ensure solid investigations, successful prosecutions and long stays in prison for these predators.”

DEA Special Agent in Charge Mark R. Trouville stated, “Whenever money and drugs come together, violence will follow. Where drug trafficking is rampant, neighborhoods can become a war zone bringing havoc to its residents. The DEA is committed to working with the ATF and our local partners to remove these violators off our streets and make our communities safe and drug free.”

Matthew Boyd, Chief of the Miami Gardens Police Department, stated, “The Miami Gardens Police Department has been extremely successful in reducing crime over the last five years. This success continues to create a safer environment for our residents and is a direct result of the cooperation and partnerships at the State and Federal level as evidenced in this multi-agency operation.”

“It is due to Operations like Smoking Gun that the partnership of federal and local law enforcement agencies come together to share resources and remove dangerous criminals off of our streets,” said Neil DeSousa, Acting U.S. Marshal. “The U.S. Marshals Service remains dedicated to this intensive effort, today the City of Miami Gardens is safer because of the commitment by all of the criminal investigators and officers that led this proactive Operation over the course of the year.”

In February 2010, Operation Smoking Gun I, which targeted gang and gun crime in Broward County, resulted in federal charges against 33 defendants with firearm, narcotics, and other offenses. In addition, 63 defendants were separately charged by the Broward County State Attorney’s Office with narcotics and firearm violations.

Then, in July 2011, Operation Smoking Gun II, focusing on Palm Beach County, resulted in federal firearm and narcotics charges against 49 defendants. Of those 49 charged federally, many were felons in possession of a firearm. In addition, approximately 58 defendants were charged separately by the Palm Beach County State Attorney’s Office with narcotics and firearm violations.

U.S. Attorney Ferrer thanked the many law enforcement agencies involved in this Organized Crime Drug Enforcement Task Force (OCDETF)/ South Florida High Intensity Drug Trafficking Area Task Force (HIDTA) operation. In particular, Ferrer thanked the Miami-Dade County State Attorney’s Office, and the agents, detectives and police officers from ATF, DEA, the U.S. Marshal’s Service, and the Miami Gardens Police Department, for their concerted efforts during this long-term investigation. Ferrer also thanked the Miami-Dade Police Department, City of Miami Police Department, City of Aventura Police Department, Florida Department of Law Enforcement, Hialeah Police Department, the Palm Beach Sheriff’s Office, and the Broward Sheriff’s Office for their assistance in this matter. The federal cases resulting from Operation Smoking Gun III are being prosecuted by Assistant U.S. Attorney Bruce Brown. The state cases are being prosecuted by Miami-Dade County Assistant State Attorney Frank Ledee.

Operation Smoking Gun III is the result of an ongoing OCDETF joint investigation. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.

The South Florida HIDTA was established in 1990. This program, made up of federal, state and local law enforcement agencies, fosters intra-agency cooperation among law enforcement agencies in South Florida and involves them in developing a strategy to target the region’s drug-related threats to public safety. The South Florida HIDTA uses the funding provided by the Office of National Drug Control Policy (ONDCP) that sponsors a variety of law enforcement initiatives that target the region’s illicit drug threats.

An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.

Attachments: Operation Sledgehammer Defendant List (PDF)

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and J.D. Patterson, Director, Miami-Dade Police Department, announced the sentencings of defendants Derrick Santiesteban, of Miami, Juan Felipe Castañeda, of Miami, Alexander Santiesteban, of Miami, German Silvestro, of Miami, David Silva, of Miami, Francisco Javier Diaz, of Miami-Dade, Alejandro Pimentel, of Miami, John Villalonga, of Miami-Dade, Raul Fabian Ramirez, Jr., of Miami, Yadira Santiesteban, of Miami, Dayana Castellanos, of Miami, and Estrella J. Mijares, of Miami, before U.S. District Judge K. Michael Moore.

According to court documents, the defendants operated an extensive network of hydroponic marijuana grow houses throughout South Florida. In 2009, a large quantity of marijuana belonging to the organization was stolen. Members of the organization set out to find the people responsible for the theft. On June 28, 2009, Derrick Santiesteban, Gilberto Santiesteban, Jr., Norge Manduley, and Juan Felipe Castañeda kidnapped the individual who they thought was responsible for the theft of the marijuana. During the abduction, the individual was shot and killed.

Derrick Santiesteban was sentenced to life in prison on charges of drug, money laundering, and kidnapping with death resulting.

Juan Felipe Castañeda was sentenced to 360 months in prison, to be followed by 5 years of supervised release, on charges of conspiracy to possess with the intent to distribute marijuana.

Alexander Santiesteban was sentenced to 262 months in prison, to be followed by 5 years of supervised release, on charges of conspiracy to possess one thousand (1,000) or more marijuana plants with the intent to distribute and conspiracy to commit money laundering.

German Silvestro was sentenced to 144 months in prison, to be followed by 5 years of supervised release. David Silva, Francisco Javier Diaz, Alejandro Pimentel, and John Villalonga were each sentenced to 120 months in prison, to be followed by 5 years of supervised release. Raul Fabian Ramirez, Jr. was sentenced to 46 months in prison, to be followed by 2 years of supervised release. Each of these defendants previously pled guilty to Count 1 of the indictment, charging them with conspiracy to possess 1,000 or more marijuana plants with the intent to distribute.

Yadira Santiesteban was sentenced to 70 months in prison, to be followed by 3 years of supervised release. Dayana Castellanos was sentenced to 37 months in prison, to be followed by 2 years of supervised release. Estrella J. Mijares was sentenced to 37 months in prison, to be followed by 1 year of supervised release. Each of these defendants pled guilty to one count of conspiracy to commit money laundering.

In addition, the following individuals previously pled guilty and are awaiting sentencing:

Gilberto Santiesteban, Jr., of Miami, previously pled guilty to conspiracy to possess with the intent to distribute marijuana, conspiracy to commit money laundering, and conspiracy to commit kidnapping (Counts 1, 2, and 3). Sentencing is scheduled for July 18, 2013 at 2:00 p.m. before U.S. District Judge K. Michael Moore. At sentencing, the defendant faces a minimum mandatory term of 10 years in prison, and a maximum term of up to life imprisonment for Count 1; a maximum term of 20 years in prison for Count 2; and a maximum term of up to life in prison for Count 3.

Darvis Santiesteban, of Miami, previously pled guilty to Counts 1 and 2 of the indictment. Count 1 charged him with conspiracy to possess one thousand (1,000) or more marijuana plants with the intent to distribute and Count 2 charged him with conspiracy to commit money laundering. Sentencing is scheduled for July 18, 2013 at 2:00 p.m. before U.S. District Judge K. Michael Moore. At sentencing, the defendant faces a minimum mandatory term of 10 years in prison, and a maximum term of up to life imprisonment on Count 1; and a maximum term of 20 years in prison on Count 2.

Gilberto Santiesteban, Sr., of Miami, previously pled guilty to Count 1 of the indictment charging him with conspiracy to possess 1,000 or more marijuana plants with the intent to distribute. Sentencing is scheduled for July 18, 2013 at 2:00 p.m. before U.S. District Judge K. Michael Moore. At sentencing, the defendant faces a minimum mandatory sentence of 10 years in prison, and a possible maximum term of up to life in prison.

Norge Manduley, of Hialeah, was convicted at trial of one count of conspiracy to possess less than one hundred (100) marijuana plants with the intent to distribute. Sentencing is scheduled for July 30, 2013 before U.S. District Judge K. Michael Moore. At sentencing, Manduley faces a statutory maximum sentence of up to 20 years imprisonment.

Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, and Miami-Dade Police Department. The case is being prosecuted by Assistant U.S. Attorneys William Athas and Pat Sullivan.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

A former health care clinic director and licensed therapist was sentenced in Miami to 111 months in prison today in connection with a health care fraud scheme involving defunct health provider Health Care Solutions Network Inc. (HCSN).

U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division; Michael B. Steinbach, Special Agent in Charge of the FBI's Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office, made the announcement.

Paul Thomas Layman, 66, of Miami, pleaded guilty on March 7, 2013, to conspiracy to commit health care fraud.

During the course of the conspiracy, Layman was employed as a substance abuse counselor, therapist and clinical director of HCSN’s Partial Hospitalization Program (PHP). A PHP is a form of intensive treatment for severe mental illness.

HCSN of Florida (HCSN-FL) operated community mental health centers at three locations. During his employment, Layman worked full time at all HCSN-FL locations in various capacities. According to court documents, Layman was aware that HCSN-FL paid illegal kickbacks to owners and operators of Miami-Dade County Assisted Living Facilities (ALF) in exchange for patient referral information to be used to submit false and fraudulent claims to Medicare and Medicaid. Layman also knew that many of the ALF referral patients were ineligible for PHP services because many patients suffered from mental retardation, dementia and Alzheimer's disease.

Court documents reveal that Layman was aware that HCSN-FL personnel were fabricating patient medical records. Many of these medical records were created weeks or months after the patients were admitted to HCSN-FL for purported PHP treatment and were utilized to support false and fraudulent billing to government sponsored health care benefit programs, including Medicare and Florida Medicaid. During his employment at HCSN-FL, Layman signed fabricated PHP therapy notes and other medical records used to support false claims to government sponsored health care programs.

HCSN of North Carolina (HCSN-NC) operated one location in Hendersonville, N.C. At HCSN-NC, Layman served as the clinical director and assisted HCSN owner Armando Gonzalez in obtaining necessary licensing, credentials and Medicare authorizations for HCSN-NC. According to court documents, from 2008 through 2009, Layman purportedly supervised the therapists within the HCSN-NC PHP, including Alexandra Haynes, who was an unlicensed therapist purportedly performing PHP therapy to HCSN-NC patients. Gonzalez and Haynes were sentenced to 168 months and 70 months, respectively, in prison.

According to court documents, from 2004 through 2011, HCSN billed Medicare and the Florida Medicaid program approximately $63 million for purported mental health services.

This case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division's Fraud Section and the U.S. Attorney's Office for the Southern District of Florida. The cases are being prosecuted by Trial Attorney Allan J. Medina and Special Trial Attorney William J. Parente of the Criminal Division's Fraud Section.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.

To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announced the filing of a 30-count indictment charging defendants Rigoberto Cabrera, 37, and Carlos Perez, 34, both of Miami-Dade County, in a tax preparation fraud scheme. Defendant Perez had his initial appearance on May 16, 2013 in Ft. Lauderdale before U.S. Magistrate Judge Andrea M. Simonton. Defendant Cabrera is expected to make his initial appearance tomorrow at 11:00 a.m. in Ft. Lauderdale before Chief U.S. Magistrate Judge Barry S. Seltzer.

Specifically, each defendant is charged with one count of conspiracy to defraud the government with respect to claims, in violation of Title 18, U.S.C. Section 286; and one count of conspiracy to commit wire fraud, in violation of Title 18, U.S.C. Section 1349. Defendant Cabrera is also charged with 18 counts of making false claims to the IRS, in violation of Title 18, U.S.C. Section 287; four counts of wire fraud, in violation of Title 18, U.S.C. Section 1343; one count of conspiracy to commit money laundering, in violation of Title 18, U.S.C. Section 1956(h); and four counts of money laundering, in violation of Title 18, U.S.C. Section 1956(a)(1)(B)(i). Defendant Perez is charged with 11 counts of making false claims to the IRS, in violation of Title 18, U.S.C. Section 287; and two counts of wire fraud, in violation of Title 18, U.S.C. Section 1343.

According to the indictment, defendants Cabrera and Perez recruited individuals and offered to prepare their individual income tax returns with the promise that the defendants could obtain substantial tax refunds for the taxpayers. The recruited taxpayers agreed to pay Cabrera and Perez a percentage of the refunds they received. The defendants then prepared fraudulent 2008 and 2009 federal income tax returns on behalf of the recruited taxpayers, claiming tax credits or deductions to which the taxpayers were not entitled. After the taxpayers received the fraudulent refunds from the IRS, Cabrera and Perez collected a percentage of the funds from the taxpayers through checks payable to companies that the defendants controlled and shell companies.

Through this scheme, the defendants claimed approximately $1,458,905 in tax refunds from the IRS.

If convicted, the defendants face up to ten years in prison for each count of conspiracy to defraud the government, making false claims, and conspiracy to commit money laundering; and up to twenty years in prison for each count of conspiracy to commit wire fraud, wire fraud, and money laundering.

Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorneys Daniel Bernstein and Alejandro O. Soto.

An indictment is only an accusation and the defendant is presumed innocent until proven guilty.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

Attorney Mitchell J. Stein, 53, of Hidden Hills, Calif., was convicted by a jury in the Southern District of Florida for his role in operating a five-year, multimillion-dollar market manipulation and fraud scheme, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.

Stein was charged in a December 2011 indictment and on May 20, 2013, he was convicted on all counts: conspiracy to commit mail and wire fraud and three counts each of mail fraud and wire fraud, each of which carries a maximum penalty of 20 years in prison; three counts of securities fraud, which each carry a maximum penalty of 25 years; three counts of money laundering, which each carry a maximum penalty of 10 years; and one count of conspiracy to obstruct justice, which carries a maximum penalty of five years in prison. Stein is being detained until sentencing, which is scheduled for Aug. 16, 2013.

According to evidence presented at trial, Stein’s wife held a controlling interest in Signalife Inc., a publicly-traded company currently known as Heart Tronics that purportedly sold electronic heart monitoring devices. Stein engaged in a scheme to artificially inflate the price of Signalife stock by creating the false impression of sales activity for Signalife. Specifically, the evidence at trial showed that Stein and his co-conspirators created fake purchase orders and related documents from fictitious customers, then caused Signalife to issue press releases and file documents with the U.S. Securities and Exchange Commission (SEC) trumpeting these fictitious sales. Evidence at trial also proved that in a further effort to create the false appearance of sales activity, Stein arranged to have Signalife products shipped to and temporarily stored with an individual who had not purchased any products.

Evidence at trial further proved that Stein disguised his selling of stock during the conspiracy by placing shares in purportedly blind trusts, and that he had a co-conspirator sell shares of Signalife stock after Stein caused false information to be disseminated to the public. Stein also caused Signalife to issue shares to third parties so that those third parties could sell the shares and remit the proceeds of those sales to Stein. From one co-conspirator alone, Stein received illicit gains of over $1.8 million.

In addition, evidence at trial proved that Stein conspired to obstruct the SEC’s investigation into Heart Tronics by testifying falsely and arranging for others to testify falsely in an effort to conceal the scheme described above.

This case was investigated by the U.S. Postal Inspection Service and the Office of the Special Inspector General for the Troubled Asset Relief Program.

This matter was referred to the Department by the SEC, which conducted a parallel investigation and in December 2011 announced the filing of a civil enforcement action against Stein and others. The Department thanks the SEC for its substantial assistance in this matter. The Department also acknowledges the substantial assistance of FINRA’s Criminal Prosecution Assistance Group.

This case is being prosecuted by Assistant Chief Albert B. Stieglitz, Jr. and Trial Attorneys Kevin B. Muhlendorf and Andrew H. Warren of the Criminal Division’s Fraud Section.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced today’s sentencing of Crispian Carl Sprague, 38, formerly of Palm Beach Gardens. U.S. District Judge Kenneth A. Marra sentenced Sprague to 66 months in prison, to be followed by three years of supervised release, for five bank robberies he committed between November 21, 2012 and January 3, 2013. Judge Marra also ordered Sprague to pay $11,620 in restitution.

As Sprague admitted in his guilty plea, on the day before Thanksgiving, November 21, 2012, Sprague robbed the BB&T Bank in Palm Beach Gardens. Sprague approached a teller and handed her a note that demanded money and implied that he had a weapon. The teller handed Sprague the money. A few days later, on December 4, 2012, Sprague robbed the JP Morgan Chase Bank in Palm Beach Gardens. During this robbery, Sprague approached a teller and handed her a note that read: “This is a Robbery open your Drawer[.] Give me all your 100's and 50's[.] Nobody will be hurt[.] I am armed[.]” The teller handed Sprague the money. On December 20, 2012, Sprague robbed the JP Morgan Chase Bank in Jupiter, Florida. Sprague handed the teller a note that demanded money and stated that he was armed. Again, the teller complied and handed Sprague some money. On Christmas Eve, Sprague robbed the JP Morgan Chase Bank in Lake Worth, Florida. Sprague handed the teller a note demanding money and stating that he was armed. The teller complied and gave Sprague the money. On January 3, 2013, Sprague entered the TD Bank in Juno Beach, Florida. Sprague entered the bank, approached the teller, and handed the teller a note that stated: “This is a Robbery[.] No Dye Packs No Alarms[.] 100's, 50's, 20's ONLY[.] I AM ARMED[.]” The teller gave Sprague bank-owned funds.

On January 8, 2013, the note used by Sprague during the January 3, 2013 TD Bank robbery was processed by a CSI/Certified Latent Fingerprint Examiner and a partial print was located on the top area of the note. The fingerprint was subsequently positively identified as that of Crispian Carl Sprague. On January 10, 2013, Sprague was arrested at his residence.

Mr. Ferrer commended the investigative efforts of the FBI. Mr. Ferrer also thanked the Palm Beach Sheriff’s Office, West Palm Beach Police Department, Juno Beach Police Department, and Palm Beach Gardens Police Department. The case was prosecuted by Assistant U.S. Attorney A. Marie Villafaña.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

Operation Had Connections to Florida, New Mexico, Colorado, Nevada, Wisconsin and Pennsylvania

Sean Rosales, a dual United States and Costa Rican citizen, was sentenced today in connection with a series of business opportunity fraud ventures based in Costa Rica, the Justice Department and the U.S. Postal Inspection Service announced today. Rosales was sentenced by U.S. District Court Judge Ursula M. Ungaro in Miami to 97 months in prison and 5 years supervised release. Rosales was also ordered to pay more than $7.3 million in restitution.

On March 20, Rosales pled guilty to one count of an indictment pending against him, charging conspiracy to commit mail and wire fraud. Rosales was arrested in Chicago, Illinois late last year following his indictment by a federal grand jury in Miami on Nov. 29, 2011. The indictment alleged that Rosales and his co-conspirators purported to sell beverage and greeting card business opportunities, including assistance in establishing, maintaining and operating such businesses. The charges form part of the government’s continued nationwide crackdown on business opportunity fraud.

Prior to Rosales’ sentencing today, eleven other individuals were charged in connection with business opportunity fraud ventures based in Costa Rica. Rosales is the eighth of those individuals to be convicted and sentenced in the United States.

“Fraudulent business opportunity sellers must realize that financial fraud victimizing Americans will be prosecuted vigorously, even if the fraudsters conduct their operations from abroad,” said Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida. “Increased international law enforcement cooperation eliminates safe havens for those who seek to cheat Americans from overseas.”

“Many Americans dream of owning and operating their own small business, but fraud schemes such as the one perpetrated by this defendant can turn that dream into a nightmare,” said Stuart F. Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division. “The Department of Justice will continue to be aggressive in prosecuting those who take advantage of innocent, hardworking Americans through business opportunity fraud.”

Beginning in May 2005, Rosales and his coconspirators fraudulently induced purchasers in the United States to buy business opportunities in USA Beverages Inc., Twin Peaks Gourmet Coffee Inc., Cards-R-Us Inc., Premier Cards Inc., The Coffee Man Inc., and Powerbrands Distributing Company. The business opportunities cost thousands of dollars each, and most purchasers paid at least $10,000. Each company operated for several months, and after one company closed, the next opened. The various companies used bank accounts, office space and other services in the Southern District of Florida and elsewhere.

Rosales, using aliases, participated in a conspiracy that used various means to make it appear to potential purchasers that the businesses were located entirely in the United States. In reality, Rosales operated out of Costa Rica to fraudulently induce potential purchasers in the United States to buy the purported business opportunities.

The companies made numerous false statements to potential purchasers of the business opportunities, including that purchasers would likely earn substantial profits; that prior purchasers of the business opportunities were earning substantial profits; that purchasers would sell a guaranteed minimum amount of merchandise, such as greeting cards and beverages; and that the business opportunity worked with locators familiar with the potential purchaser’s area who would secure or had already secured high-traffic locations for the potential purchaser’s merchandise stands. Potential purchasers also were falsely told that the profits of some of the companies were based in part on the profits of the business opportunity purchasers, thus creating the false impression that the companies had a stake in the purchasers’ success and in finding good locations.

The companies employed various types of sales representatives, including fronters, closers and references. A fronter spoke to potential purchasers when the prospective purchasers initially contacted the company in response to an advertisement. A closer subsequently spoke to potential purchasers to finalize deals. References spoke to potential purchasers about the financial success they purportedly had experienced since purchasing one of the business opportunities. The companies also employed locators, who were typically characterized by the sales representatives as third parties who worked with the companies to find high-traffic locations for the prospective purchaser's merchandise display racks.

Rosales, using aliases, was a fronter for USA Beverages, a fronter and reference for Twin Peaks, a fronter and reference for Cards-R-Us, a fronter, locator and reference for Premier Cards, a locator for Coffee Man, and a locator for Powerbrands.

Each of the companies was registered as a corporation and rented office space to make it appear to potential purchasers that its operations were fully in the United States. USA Beverages was registered as a Florida and New Mexico corporation and rented office space in Las Cruces, N.M. Twin Peaks was registered as a Florida and Colorado corporation and rented office space in Fort Collins, Colo., and Cards-R-Us was registered as a Nevada corporation and rented office space in Reno, Nev. Premier Cards was registered as a Colorado and Pennsylvania corporation and rented office space in Philadelphia, and The Coffee Man was registered as a Colorado corporation and rented office space in Denver. Powerbrands was registered as a Wisconsin corporation and rented office space in Glendale, Wisconsin and Palm Beach Gardens, Fla.

“The success of this investigation shows that the U.S. Postal Inspection Service is committed to working with the Department of Justice and our law enforcement partners, both foreign and domestically, to protect Americans from the predatory nature of business opportunity frauds,” said Ronald Verrochio, U.S. Postal Inspector in Charge, Miami Division.

Acting Assistant Attorney General Delery commended the investigative efforts of the Postal Inspection Service. The case was being prosecuted by Assistant Director Jeffrey Steger and trial attorney Alan Phelps with the U.S. Department of Justice Consumer Protection Branch.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

Defendant Physician Owned and Operated Pain Management Clinic

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, and Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, announced that Dr. Stephen Anthony, 64, of Davie, Florida, pled guilty to conspiring to distribute and dispense large amounts of oxycodone without a legitimate medical purpose and outside the usual course of professional practice. Dr. Anthony also pleaded guilty to money laundering and income tax evasion. Anthony faces a maximum term of imprisonment of five years on the drug charge, ten years on the money laundering charge and 5 years on the tax evasion charge. The sentencing hearing is set for October 4, 2013 in front of U.S. District Judge Robert N. Scola, Jr.

According to the terms of the plea agreement, Anthony has agreed to forfeit $338,300 in money and property representing proceeds he earned and laundered as a result of his involvement as a physician at Broward Urgent Care in Fort Lauderdale. As set forth in the plea agreement, between April 2010 and February 2011, Anthony was employed as a clinic doctor at Broward Urgent Care which, at the time, was had previously been owned by co-conspirators, Vincent Colangelo and Nicholaus Thomas. Colangelo pleaded guilty to narcotics, money laundering and federal income tax offenses on April 2, 2012, arising from his ownership of six pill mill clinics and a pharmacy in Broward and Miami-Dade Counties. Thomas pleaded guilty on November 18, 2011 to narcotics and money laundering charges. Colangelo and Thomas sold Broward Urgent Care to Anthony after the Florida legislature enacted legislation in October 2010 requiring that pain management clinics be owned by licensed physicians. According to a review of medical records, while at Broward Urgent Care, Anthony wrote 12,510 prescriptions for oxycodone and 5,776 prescriptions for Xanax, and more than 99% of Anthony’s patients received prescriptions for oxycodone. In total, Anthony prescribed 42,374,370 milligrams of oxycodone during the ten months he worked as a physician at Broward Urgent Care.

Between 2000 and 2007, Anthony evaded the payment of approximately $556,262 in individual income and employment taxes. According to the plea agreement, Anthony evaded taxes by depositing monies into a bank account in the name of a third party. Instead of paying taxes, Anthony purchased thousands of dollars in personal items including jewelry and automobiles. Anthony also laundered approximately $581,761 in illegal narcotics proceeds generated from Broward Urgent Care between October 15, 2010 and February 22, 2011.

U.S. Attorney Wifredo A. Ferrer stated, “We will continue to investigate and aggressively prosecute physicians like Dr. Anthony, who illegally prescribed prescription pain killers from his pill mill clinic without regard for the safety and well-being of his patients or our community. We are committed to prosecuting unscrupulous doctors, clinic owners, or other operators who deal drugs while hiding behind a medical license.”

Michael J. DePalma, Acting Special Agent in Charge, IRS Criminal Investigation, stated, “IRS Special Agents are experts at following the money trail to ensure that income from legal or illicit sources is properly reported. Dr. Anthony’s guilty plea to tax evasion and money laundering charges, in conjunction with the forfeiture of his ill-gotten assets, sends a clear message that law-breakers will not be allowed to enjoy the fruit of their crimes.”

DEA Special Agent in Charge Mark R. Trouville stated, “This is a great example of where the road leads to for pill mill doctors. Due to these investigations, Florida doctors are no longer among the top oxycodone purchasers in the United States. The DEA will continue to work with our law enforcement partners to investigate those who look to prosper from the diversion of powerful prescription medicines and to ensure public safety.”

Vincent Colangelo was sentenced on June 29, 2012 to twenty years in prison, to be followed by three years of supervised release. Nicholaus Thomas was sentenced on May 23, 2012 to ten years in prison, to be followed by three years of supervised release.

Mr. Ferrer thanked the DEA, IRS-CI and the Broward Sheriff’s Office, as well as the many other state and local agencies for their investigative work. This case is being prosecuted by Assistant U.S. Attorney Scott Behnke and Tax Division Trial Attorney Greg Tortella.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and John E. Brooks, Chief, Sunrise Police Department, announced today the guilty plea of defendant Christopher Ferguson, 40, of Plantation, in connection with an armored truck robbery resulting in the theft of $280,000 and a shootout outside the Space Coast Credit Union in Sunrise, Florida.

More specifically, Ferguson pled guilty to the Hobbs Act, in violation of Title 18, United States Code, Section 1951(a). Sentencing has been scheduled for July 29, 2013 at 1:15 p.m. before U.S. District Judge William P. Dimitrouleas. At sentencing, Ferguson faces a maximum statutory sentence of up to twenty (20) years in prison on the robbery count, as well as up to three (3) years of supervised release, up to a $250,000 fine, and mandatory restitution.

As alleged in the Indictment and statements made in court, on January 17, 2013, a Brinks armored truck arrived at the Space Coast Credit Union in Sunrise, Florida to make a delivery of United States currency. As the Brinks courier exited the truck and approached the front door of the bank, two masked subjects exited a stolen white Honda that was parked at the bank. Both subjects thereafter ran toward the courier, one of whom was pointing what appeared to be a handgun directly at the guard. One subject ordered the Brink’s courier to the ground and the courier put his hands up and laid down on the ground. At that point, one robber tried unsuccessfully to take the courier’s firearm while the other subject grabbed a bag belonging to Brinks and destined for delivery to the credit union, which contained approximately $280,000. Moments later, both subjects ran back to the stolen Honda. This entire robbery was recorded on bank surveillance video.

Furthermore, according to statements made in court, as the subjects entered the Honda, the Brinks driver and the courier who had just been robbed, discharged their firearms multiple times at the subjects and their white Honda as they fled the scene. Ultimately, numerous rounds struck and penetrated their vehicle, which exited the bank parking lot. Law enforcement responded to the location of the abandoned Honda and observed that the vehicle had sustained damage from multiple gun shots. A subsequent search of the stolen vehicle revealed the presence of blood located on the driver’s seat and floorboard area. Law enforcement swabbed the blood and submitted the unknown DNA to the FBI Laboratory. Ultimately, the unknown DNA sample was identified as belonging to Christopher Ferguson.

The second robber remains at large. If anyone has information about the whereabouts of the second individual or this investigation, contact the Miami FBI at 305-944-9101.

Mr. Ferrer commended the investigative efforts of the FBI, the Sunrise Police Department, the South Florida Violent Crime Fugitive Task Force and the Broward County Sheriff’s Office. This case is being handled by Assistant U.S. Attorneys Marc Anton and Mark Dispoto.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, and Raymond A. Martinez, Chief, Miami Beach Police Department, announced the sentences of two individuals who were convicted of various fraud charges in connection with the South Beach “B-Girls” fraud scheme.

U.S. District Judge Robert M. Scola sentenced Albert Takhalov, 31, of Sunny Isles Beach, to 12 years in prison, and Isaac Feldman, 51, of Sunny Isles Beach, to 8 years and 4 months in prison. A third defendant convicted at trial, Stanislav Pavlenko, 41, of Aventura, is scheduled to be sentenced on May 31, 2013.

Takhalov, Feldman, and Pavlenko were convicted on December 20, 2012, of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349; and conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956 (h). Pavlenko and Takhalov were also convicted of various substantive wire fraud counts, in violation of Title 18, United States Code, Section 1343. Additionally, Takhlaov was convicted of conspiracy to defraud the U.S. Department of Homeland Security and U.S. Customs and Border Protection, in violation of Title 18, United States Code, Section 371. Kristina Takhalov pled guilty in the middle of trial to substantive wire fraud counts. Siavash Zargari, 48, of Miami Beach was acquitted. Last year, a total of nineteen defendants were charged in this fraud conspiracy. Thirteen defendants pled guilty before trial. One defendant, Andrejs Romanovs, remains a fugitive.

According to evidence presented at trial, the defendants were the organizers and investors in a criminal organization, which owned and operated numerous private clubs in South Beach. The organization brought Eastern European women into the United States illegally to work as “Bar Girls” or “B-Girls,” to lure out-of town businessmen and tourists from legitimate South Beach clubs to the defendants’ private clubs.

According to testimony and other evidence presented at trial, the defendants would charge the victims exorbitant prices for bottles of alcohol in as many as six private clubs. After the victims were either drugged without their knowledge or too intoxicated to understand what was happening, the B-Girls would order bottles of wine or champagne, make unauthorized charges on the victims’ credit cards and sometimes even forge the victims’ signatures. In order to pay the B-Girls who were illegally working, the defendants set up shell companies to conceal profits and salary payments from their criminal enterprise.

Mr. Ferrer commended the investigative efforts of the FBI, the Miami Beach Police Department, and ICE’s Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorneys Richard D. Gregorie and Michael Thakur and Department of Justice Trial Attorney Clay Porter.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

92 defendants have been charged to date in Operation Sledgehammer I-VI

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Jeff Atwater, Florida Chief Financial Officer, and Dave Aronberg, State Attorney, Office of the State Attorney for Palm Beach County, announced the unsealing of a federal indictment and three separate criminal Informations charging thirty-three (33) defendants, including doctors, licensed professionals and clinic owners, for their participation in a massive staged automobile accident scheme based in Palm Beach and Miami-Dade Counties, Florida. Of the 33 defendants charged, 26 were arrested or are expected to surrender. Four of the defendants are known to have fled to Cuba, with an additional three of the defendants have not been located at this time and are considered fugitives.

The charges announced today are the culmination of a three-year joint federal and state law enforcement investigation, dubbed Operation Sledgehammer, into a series of chiropractic clinics that were allegedly involved in staged accidents and filing false insurance claims. Starting with Operation Sledgehammer I in June 2011 and including the defendants charged today in Operation Sledgehammer VI, 92 defendants have been charged for their participation in this automobile insurance fraud scheme. Of those 92 defendants, 56 have been charged federally by the U.S. Attorney’s Office, resulting in court-ordered restitution of more than $5 million to the defrauded insurance companies. Thirty-six defendants have been charged by the Palm Beach County State Attorney’s Office.

Operation Sledgehammer VI, announced today, has resulted in a Second Superseding Indictment and three separate criminal Informations charging 33 defendants. The Second Superseding Indictment charges 30 individuals, including ring leaders Vladimir Lopez and Lazaro Vigoa Mauri, with conspiracy to commit and substantive mail fraud (Counts 1–91), conspiracy to commit and substantive money laundering (Counts 92-153), and conspiracy to and actual structuring of financial transactions (Counts 154-183). The indictment also seeks the forfeiture of proceeds of the fraud, including $714,621 in currency, and any real or personal property derived from the fraud. Attached is a list of all defendants charged in the Second Superseding Indictment, including their names, ages, and cities of residence. In addition, defendants Lawrence Schechtman, 45, Parkland, Olinda Rodriguez, 39, West Palm Beach, and Iris Roca, 41, of Davie, were charged in three separate Informations for their participation in staged accident fraud schemes. These three defendants will be surrendering to the court.

U.S. Attorney Wifredo A, Ferrer stated, “Staged accident automobile insurance fraud is not a victimless crime. Rather, it affects every driver in Florida, as fraud inevitably causes our insurance rates to rise. Worse still, staged accidents make our streets more dangerous and distract police from answering legitimate distress calls. We hope that this continued operation will send a message to those who seek to line their pockets through fraud. Together with our federal and state law enforcement, regulatory and private industry partners, we will find you, we will prosecute you, we will take away your ill-gotten money, and you will face substantial prison time.”

“If you get upset about your car insurance premiums going up, this crime is one of the reasons why,” said William J. Maddalena, Assistant Special Agent in Charge of FBI Miami. “Every time an insurance payout is made for a staged accident in Florida, we all feel the pain in the pocketbook. The FBI and our partners with the Greater Palm Beach Health Care Fraud Task Force will continue to use all investigative techniques to bring to justice those responsible for this type of fraud.”

“Consistently, law-breakers try to hide their crimes by laundering their ill-gotten gains and by structuring financial transactions to avoid detection by law enforcement. Today’s indictment reflects the futility of that strategy,” said IRS-CI Acting Special Agent in Charge Michael J. DePalma. “By following the money trail, IRS-CI agents will continue to aggressively target these defendants’ finances and their freedom.”

“These staged accidents are the lifeblood of Personal Injury Protection (PIP) fraud, which has cast a shadow over Florida’s roads,” Florida Chief Financial Officer Jeff Atwater said. “Every Florida family is negatively affected by these fake crashes in the form of high auto insurance premiums. I am proud of the collaborative efforts across local, state and federal agencies to put these criminals behind bars.”

According to the charging documents, between approximately October 2006 and December 2012, the defendants staged automobile accidents and thereafter caused the submission of false insurance claims through chiropractic clinics they controlled. To execute the scheme, the true owners of the chiropractic clinics allegedly recruited individuals, who had the medical or chiropractic licenses required by the state to open a clinic, to act as “nominee owners” of the clinics. The defendants also recruited individuals, whom they referred to as “Perro” and “Perra,” to participate in the accidents, and others to help the clinics launder the insurance proceeds. The defendants also hired complicit chiropractors and therapists who prescribed and billed for unnecessary treatments and/or for services that had not been rendered. Thereafter, complicit clinic employees prepared and submitted claims to the automobile insurance companies for payment for these unnecessary or non-rendered services. Twenty-one clinics participated in this scheme. A list of these clinics is attached to this release.

If convicted, the defendants face the following possible maximum statutory sentences: 20 years in prison for conspiracy to commit mail fraud, substantive mail fraud, and conspiracy to commit money laundering; 20 years for each count of substantive money laundering; 5 years for conspiracy to structure financial transactions, and 10 years for structuring financial transactions involving more than $100,000 in one year. Restitution to the victims of the offenses is mandatory.

Mr. Ferrer commended the efforts of the FBI, IRS-CI, the Florida Department of Insurance Fraud, the Palm Beach County State Attorney’s Office, and the Greater Palm Beach County Health Care Fraud Task Force for their outstanding work in this case. Mr. Ferrer also recognized the National Insurance Crime Bureau (NICB) for its collaboration and assistance in this investigation. Mr. Ferrer thanked the U.S. Marshal’s Service and Customs and Border Protection for their assistance in today’s arrests. The federal cases are being prosecuted by Assistant U.S. Attorney A. Marie Villafaña and the state cases are being prosecuted by the Palm Beach County State Attorney’s Office.

An indictment or Information is only an accusation and a defendant is presumed innocent until proven guilty.

Attachments: Operation Sledgehammer Defendant List (PDF)
Operation Sledgehammer Clinics List (PDF)

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Alysa Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s, Homeland Security Investigations (ICE-HSI), Miami Field Office, announced the indictment of Julio Robaina, 48, and his wife, Raiza Villacis Robaina, 39, both of Hialeah, for criminal tax offenses and making false statements to federal agents.

The indictment charges both defendants with one count of conspiring to defraud the United States for the purpose of impeding, impairing, obstructing, and defeating the lawful governmental functions of the Internal Revenue Service in the ascertainment, computation, assessment, and collection of federal income taxes, in violation of 18 U.S.C. § 371 and two counts of making and subscribing false tax returns, in violation of 26 U.S.C. § 7206(1). In addition, the indictment charges Julio Robaina with two counts of making false representations to federal agents, in violation of 18 U.S.C. § 1001(a)(2). The indictment also charges Raiza Villacis Robaina with one count of making a false representation to federal agents, in violation of 18 U.S.C. § 1001(a)(2).

According to the indictment, the manner and means by which the defendants sought to defraud the United States included conducting financial transactions in a manner that would conceal their true nature, concealing information from their tax return preparer, subscribing to false tax returns, and making false representations to federal agents. The indictment alleges that both defendants subscribed to personal income tax returns that falsely understated their total income and that defendant Julio Robaina also subscribed to corporate income tax returns that falsely overstated losses incurred. The indictment specifically alleges that the defendants subscribed to false personal income tax returns for tax years 2005 through 2007 and that Julio Robaina subscribed to false corporate income returns for tax years 2005 through 2007. Julio Robaina served as the mayor of Hialeah from December 2005 until May 2011.

United States Attorney Wifredo A. Ferrer stated, “Our citizenship comes with many privileges, but also with attendant duties and responsibilities. Among those duties, each of us -- regardless of station or position – is required to pay our fair share of taxes. The U.S. Attorney’s Office will continue to enforce our nation’s tax laws so that honest taxpayers are not burdened by others’ failure to meet their tax obligations.”

“The tax system is built on the premise that taxpayers file accurate tax returns,” said Michael J. DePalma, Acting Special Agent in Charge of IRS-Criminal Investigation, Miami Field Office. “No one is above the law and those who willfully violate our nation's tax laws will be held accountable for their actions.”

Alysa D. Erichs, Special Agent in Charge, ICE-HSI, stated, “Elected officials and people in positions of trust are held to an even higher standard than the general public. Investigative efforts by HSI alongside our partners at the IRS to uncover this alleged tax fraud scheme highlight the collaborative effort within federal law enforcement to ensure that no one operates above the law.”

Mr. Ferrer commended the investigative efforts of IRS-CI and ICE-HSI. Mr. Ferrer also thanked the Miami-Dade Police Department and the City of Miami Police Department for their assistance on the investigation. This case is being prosecuted by Assistant U.S. Attorney Richard Gregorie and Assistant U.S. Attorney Michael Davis.

An indictment is only an accusation and the defendant is presumed innocent until proven guilty.

Attachments: Indictment (PDF)

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

89 Individuals Charged Nationally for Submitting
Approximately $223 Million in Fraudulent Billing; South Florida Responsible for more than $45,299,935 in False Billings

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, 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 Section

2.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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

 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.

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.

 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.

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.

 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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.