Southern District of Florida
Press releases recorded for this federal judicial district.
Former City of Miami Police Sergeant Sentenced on Civil Rights Violations, Narcotics Distribution Conspiracy and Obstruction of Justice ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Manuel Orosa, Chief, City of Miami Police Department (MPD), announced the March 22, 2013 sentencing of defendant Raul Iglesias, 40, of Miami, Florida, a former City of Miami police sergeant, following his January 2013 conviction on eight counts, including two civil rights violations, conspiracy to possess and possession with the intent to distribute cocaine and crack cocaine, obstruction of justice and making false official statements. U.S. District Judge Cecilia Altonaga sentenced Iglesias to 48 months in prison, to be followed by three years of supervised release.
Iglesias was convicted in January 2013, following a two week trial. According to the evidence presented at trial, Iglesias, in his capacity as a supervisor of an anti-narcotics unit in the City of Miami Police Department, planted cocaine on a subject, stole drugs and money from other subjects, obstructed justice and made false statements to federal investigators.
The prosecution is the result of a joint investigation by the City of Miami Police Department’s Internal Affairs Unit and the FBI’s Public Corruption Squad. The case was prosecuted by Assistant U.S. Attorneys Ricardo Del Toro and Michael Berger.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Plantation Man Sentenced in Child Pornography CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Franklin Adderley, Chief, Ft. Lauderdale Police Department, and Scott Israel, Sheriff, Broward Sheriff’s Office, announce that James E. Price, III, 42, of Plantation, Fla., was sentenced today before U.S. District Judge Kathleen M. Williams, in connection with his previous conviction for distribution and possession of child pornography , in violation of Title 18, United States Code, Sections 2252(a)(2) and 2252(a)(4)(B).
At today’s hearing, U.S. District Judge Kathleen M. Williams sentenced Price to 156 months (13 years) in prison, to be followed by 25 years of supervised release upon his release from imprisonment. Restitution will be determined at a later date.
According to court documents and three days of testimony during trial, the case originated from a South Florida Internet Crimes against Children Task Force (ICAC) investigation into an individual suspected of possessing and trading child pornography using a peer to peer file sharing network. The individual was later identified as Price. A search warrant was executed on Price’s residence, where agents discovered a hard drive hidden behind boxes in the home. Subsequent examination revealed that the hard drive was protected by encryption and contained hundreds of images and videos of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mr. Ferrer commended the investigative efforts of the South Florida ICAC, including the Martin County, Fla., Sherriff’s Office, the Broward County, Fla., Sherriff’s Office, and the Fort Lauderdale Police Department, with assistance from the CEOS High Technology Investigative Unit. The case was prosecuted by Assistant U.S. Attorneys Marc Anton and Mark Dispoto of the Southern District of Florida and by Trial Attorney Thomas Franzinger of CEOS in the Justice Department’s Criminal Division.
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.
Peruvian Woman Sentenced to 60 Months and Bahamian Woman Sentenced to 36 Months in Prison for Alien SmugglingRead the Press Release
Peruvian national Jessie Katherine Gonzales Urquizo and Bahamian national Irene Mildred Janette Burrows were sentenced yesterday to serve 60 months and 36 months in prison, respectively, for their roles in smuggling undocumented migrants to the United States for private financial gain, 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, and U.S. Immigration and Customs Enforcement (ICE) Director John Morton.
Urquizo, 37, and Burrows, 66, were sentenced by U.S. District Judge Kenneth A. Marra in the Southern District of Florida.
On Jan. 11, 2013, Urquizo and Burrows both pleaded guilty to charges arising from facilitating the illegal smuggling of Brazilian nationals into the United States by working for a known human smuggler in Brazil. According to court documents, the pair charged between approximately $100 and $125 per day in exchange for providing lodging and transportation to undocumented migrants waiting to be transported by boat to the United States. As part of the scheme, Urquizo and Burrows received instructions from Brazil-based smugglers on when and where to deliver certain undocumented migrants to waiting boats for passage to the United States.
Urquizo and Burrows admitted that they brought undocumented migrants, all of whom are Brazilian nationals, to the United States for financial gain. Urquizo admitted to taking payment for lodging the undocumented migrants at various hotels and stash houses, including a nursing home operated by Burrows, her co-defendant and mother-in-law. Urquizo further admitted that she arranged for food to be taken to the undocumented migrants, transported the undocumented migrants to a waiting boat upon instructions from a known human smuggler in Brazil, and demanded payment for her services. For her part, Burrows admitted to working with Urquizo, taking payment for lodging undocumented migrants at her nursing home, and providing transportation.
The case was prosecuted by Trial Attorney Jay Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Alexandra Hui of the Southern District of Florida.
The investigation was conducted by the ICE Homeland Security Investigations in Miami.
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.
Homestead Resident Sentenced for Tax Refund FraudRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Antonio J. Gomez, Acting Inspector in Charge, U.S. Postal Inspection Service, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), announced today’s sentencing of defendant Kilwoind Jones, 28, of Homestead, Florida, on charges of theft of government monies resulting from her participation in a stolen identity tax refund scheme. At today’s hearing, U.S. District Judge William J. Zloch sentenced Jones to 32 months in prison, to be followed by three years of supervised release.
On October 5, 2012, a federal grand jury charged Kilwoind Jones with receiving stolen U.S. Treasury refund checks having forged signatures, with possessing stolen mail, and theft of government money. On January 10, 2013, Kilwoind pled guilty to Count 7 of the Superseding indictment, which charged the defendant with theft of government property, and Count 10 of the Superseding Indictment, which charged the defendant with aggravated identity theft.
During the plea hearing, Kilwoind admitted to receiving three stolen U.S. Treasury tax refund checks and to depositing the three stolen U.S. Treasury tax refund checks with the forged signatures into her bank account.
Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to the U.S. Postal Inspection Service and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Gera Peoples.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Brazilian Husband and Wife Sentenced in Florida for Alien SmugglingRead the Press Release
Brazilian nationals Juliana Rose Tome-Froes and her husband, Fabio Rodrigues Froes, were sentenced today in Miami to 60 months and 46 months in prison, respectively, for smuggling undocumented migrants to the United States for profit, 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 and U.S. Immigration and Customs Enforcement (ICE) Director John Morton.
Tome-Froes, 36, and Froes, 49, were sentenced by U.S. District Court Judge Federico A. Moreno in the Southern District of Florida. In addition to the prison sentences, Judge Moreno ordered each defendant to forfeit $150,000 in illegal proceeds.
On Jan. 16, 2013, Tome-Froes and Froes pleaded guilty to charges arising from their involvement in human smuggling. According to court documents, from at least October 2008 until approximately September 2010, the defendants organized, operated and managed a human smuggling network that spanned from Brazil to France, England, The Bahamas and the United States. The defendants met with undocumented migrants and negotiated forms of payment to be smuggled into the United States. Before the undocumented migrants departed Brazil, the defendants instructed them to act like tourists and explained that the itinerary through Europe would support a tourist cover story. In exchange for approximately $16,000, Tome-Froes, with assistance from Froes, arranged air transportation from Brazil to Paris, then London and Nassau, Bahamas. Tome-Froes arranged the undocumented migrants’ lodging in Paris and Nassau, and then instructed them to fly to Freeport, Bahamas, where they waited for a boat to transport them to the United States. For the final leg into the United States, Tome-Froes coordinated with various individuals in South Florida to pilot a small boat to Freeport, which picked up the undocumented migrants and transported them to the United States. According to court documents, the defendants knew the undocumented migrants did not have authorization to enter the United States.
The case was prosecuted by Trial Attorney Jay Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Marton Gyires of the Southern District of Florida. The investigation was conducted by ICE Homeland Security Investigations in Miami.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami Beach Community Health Center CEO Pleads Guilty in $6 Million Embezzlement ScamRead the Press Release
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Michael A. 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 the Inspector General (HHS-OIG), announced that defendant Kathryn Abbate, 64, of Hollywood, FL, pled guilty today to theft of money from programs receiving federal funds, in violation of Title 18, United States Code, Section 666. Sentencing is scheduled for May 29, 2013 at 11:30 AM before U.S. District Judge Marcia G. Cooke. At sentencing, the defendant faces a maximum statutory sentence of up to10 years in prison.
According to the factual proffer field with the court, the defendant served as Chief Executive Officer of the Miami Beach Community Health Center (MBCHC) from 2002 to mid-2012. During this time, MBCHC was a Federally Qualified Health Center (FQHC) that provided medical care to persons regardless of ability to pay or insurance status. As an FQHC, MBCHC received millions of dollars of federal funding each year from 2008 to 2012 through cash grants and Medicaid reimbursements.
According to the factual proffer, beginning around 2008 and continuing through around May 2012, Abbate embezzled money from MBCHC. First, Abbate caused MBCHC to pay her non-accrued vacation pay and other forms of compensation that totaled over $3 million from 2008 to 2012. Second, Abbate embezzled money from MBCHC by causing non-payroll checks to be issued from MBCHC payable to her. Specifically, from 2007 to 2012, Abbate caused MBCHC to disburse approximately 837 checks made payable to her totaling approximately $3 million (the Abbate Checks) for “community development.” No backup documentation (such as an invoice or receipt) was provided for any of these checks and money from these funds was misappropriated by Abbate, including for personal use.
According to the factual proffer, in May 2012, auditors requested backup documentation for the Abbate checks disbursed by MBCHC in 2011, totaling approximately $1 million. In response, Abbate caused false backup documentation to be provided to the auditors, falsely indicating that the $1 million had been paid to five doctors at a medical facility. In fact, however, the money had not been paid to these doctors, but had been misappropriated by Abbate.
Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. The case is being prosecuted by AUSAs Michael N. Berger and Patrick 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.
Dual U.S. Costa Rican Citizen Pleads Guilty in Connection with Costa Rica-Based Business Opportunity Fraud VenturesRead the Press Release
Operation Had Connections to Florida, New Mexico, Colorado, Nevada, Wisconsin and Pennsylvania
Sean Rosales pleaded guilty in Miami federal court to one count of an indictment pending against him, charging conspiracy to commit mail and wire fraud, the Justice Department and the U.S. Postal Inspection Service announced today.
Rosales, a dual United States and Costa Rican citizen charged in connection with the operation of a series of fraudulent business opportunities, was arrested in Chicago late last year following his indictment by a federal grand jury in Miami on Nov. 29, 2011. Rosales was arrested based on charges that he and his co-conspirators purported to sell beverage and greeting card business opportunities, including assistance in establishing, maintaining and operating such businesses. The indictment is part of the government’s continued nationwide crackdown on business opportunity fraud.
Eleven other individuals have been charged in connection with business opportunity fraud ventures based in Costa Rica. Rosales is the eighth of those individuals to be convicted in the United States.
“Fraudulent business opportunity sellers must realize that financial fraud victimizing Americans will be prosecuted vigorously, even if the schemers conduct their fraudulent operations from abroad,” said Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida. “Increased international law enforcement cooperation eliminates safe havens for those who cheat American citizens from overseas.”
“The Department of Justice is committed to cracking down on financial fraud, including business opportunity fraud schemes,” said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Justice Department’s Civil Division. “That is why we will continue to prosecute those who would deprive innocent, hardworking Americans of their hard-earned money by offering phony business opportunities.”
Beginning in 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 the American consumer from the predatory nature of business opportunity schemes,” said Tony Gomez, Acting U.S. Postal Inspector in Charge in Miami.
Principal Deputy Assistant Attorney General Delery commended the investigative efforts of the Postal Inspection Service. The case is being prosecuted by Assistant Director Jeffrey Steger and trial attorney Alan Phelps with the U.S. Department of Justice Consumer Protection Branch.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami Man Convicted in $3.3 Million Identity Theft Tax Refund Fraud SchemeRead the Press Release
Defendant Filed Approximately 400 Fraudulent Tax Returns Seeking Refunds
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), Miami Field Office, and Rafael P. Hernandez, Jr., Chief, North Miami Beach Police Department, announced that a jury convicted Charlton Escarmant, 29, of Miami, of one count of conspiracy to submit false claims to the Internal Revenue Service, in violation of Title 18, United States Code, Section 287, one count of access device fraud, in violation of Title 18, United States Code, Section 1029(a)(3), and two counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). Sentencing has been scheduled for June 17, 2013, before U.S. District Judge Lenard. At sentencing, he faces a possible statutory maximum sentence of 24 years in prison.
On October 5, 2012, Charlton Escarmant and co-conspirator Arthy Icart were charged in a five-count indictment for their participation in an identity theft tax refund scheme. According to testimony and evidence presented at trial, some of the personal identification information used by Escarmant and Icart to file fraudulent tax returns was stolen from Tallahassee Community College’s (TCC) financial aid office. In fact, more than 3,200 names found on a computer in Escarmant’s possession came from TCC.
To execute the scheme, Escarmant filed tax returns using the stolen identification information and also in his own name and created false W-2 forms with fictitious employer information. Escarmant’s W-2 form falsely claimed that he was a veterinarian at Central Broward Animal Hospital. In fact, however, Escarmant never worked at the Central Broward Animal Hospital.
At the time of their arrest, Escarmant and his co-conspirator unlawfully possessed approximately 22 pre-paid tax debit cards in the names of other individuals. In total, during the course of the scheme, the defendant and his co-conspirator submitted approximately 400 fraudulent tax returns to the Internal Revenue Service, seeking more than $3.3 million in tax refunds.
Co-conspirator Arthy Icart pled guilty on January 17, 2013 to charges of conspiracy to file fraudulent claims, access device fraud, and aggravated ID theft. Sentencing is scheduled for April 1, 2013 before U.S. District Judge Lenard.
Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to the IRS-CI and the North Miami Beach Police Department. Mr. Ferrer also thanked the Tallahassee Community College for their cooperation during this investigation. The case is being prosecuted by Assistant U.S. Attorneys Michael B. Nadler and Elina Rubin-Smith.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Fugitive Sentenced on Conspiracy to Defraud the IRSRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), Miami Field Office, announce today’s sentencing of defendant Domingos Trofino, 64, on charges of conspiracy to defraud the IRS. Trofino was sentenced to 14 months in prison, which he has already served. Trofino was charged in a superseding indictment filed on October 13, 2000. He was extradited from Italy on August 10, 2012, and was detained pending trial since that time.
According to documents filed in court, during 1989, Trofino formed Compubras Export and Import Corporation (Compubras) in Miami, Florida. Compubras manufactured and sold electronics and computer hardware to customers in South Florida, Paraguay and Uruguay. As part of its business operations, Compubras maintained a dual set of records. One set of records accurately reflected its business activities. The second set of records was created to understate its actual income in an attempt to support a multi-year scheme to evade the payment of federal income taxes. The false set of records included false invoices that understated the true amount of Compubras’ sales and allowed the defendant and Compubras’ other shareholders to skim cash sales proceeds from Compubras without reporting the funds as income.
According to documents filed with the court, the IRS conducted an audit of Compubras, during which it received only with the false set of corporate records. After the IRS determined that it had been provided with fraudulent business records, a search warrant was obtained for the downtown Miami offices of Compubras and the personal residences of the defendant and other Compubras shareholders. Evidence seized during the execution of these search warrants confirmed the fraudulent nature of the previously produced business records.
Mr. Ferrer commended the investigative efforts of IRS-CID. This case is being prosecuted by Assistant U.S. Attorney Sean Cronin.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami Man Pleads Guilty in Identity Theft Tax Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Antonio J. Gomez, Acting Inspector in Charge, U.S. Postal Inspection Service, Miami Division, and Sergio Velazquez, Chief, Hialeah Police Department, announced that defendant Lineten Belizaire, 22, of Miami, pled guilty today for his role in a stolen identity tax refund scheme.
More specifically, Belizaire pled guilty to conspiracy to defraud the government with respect to claims, in violation of Title 18, United States Code, Section 286, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Sentencing is scheduled for May 28, 2013 at 8:30 a.m. before U.S. District Judge Cecilia M. Altonaga. At sentencing, the defendant faces a possible statutory maximum sentence of up to 12 years in prison.
According to the plea documents, beginning in mid-2011 and 2012, Belizaire was involved in a scheme to use stolen personal identification information of others to file fraudulent and unauthorized tax returns claiming refunds on debit cards. Belizaire exchanged personal identification information of victims by text message for use in the tax refund fraud scheme. During a traffic stop conducted on January 31, 2012, law enforcement found notebooks and papers containing personal information on more than 1,000 victims and approximately 40 prepaid debit cards, including some of the identities exchanged by Belizaire. In addition, more than 80 fraudulent tax returns using stolen identifications were electronically filed from the IP address belonging to the defendant. The defendant was also observed on ATM video withdrawing money on multiple occasions from debit cards loaded with fraudulent tax refunds.
Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to IRS-CI, U.S. Postal Inspection Service, and the Hialeah Police Department. The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Medicare Beneficiaries Found Guilty of Soliciting Kickbacks in Home Health Care CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Antonio J. Gomez, Postal Inspector In Charge of the U.S. Postal Inspection Service, and Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), inform that a federal jury found Defendants Rene Suarez-Basanta, 67 years of age, and Marta Gonzalez, also 67 years of age, guilty of charges related to Medicare fraud.
The conviction of the defendants 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. Defendants Suarez-Basanta and 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. In addition to be patients recruiters, Suarez-Basanta and Gonzalez are Medicare beneficiaries.
In total, nine defendants have been convicted of paying and receiving health care kickbacks in this investigation. Defendants Suarez-Basanta and Gonzalez are scheduled to be sentenced on May 25, 2013, at 10:00 a.m., before United States District Judge Ursula Ungaro, in Miami.
Mr. Ferrer commended the investigative efforts of the Federal Bureau of Investigation, U.S. Postal Inspection Service and the Office of the Inspector General for the Department of Health and Human Services. 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.
Medical Director for Miami-Based Health Care Clinic Sentenced to 144 Months in Prison for Role in $50 Million Medicare Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney 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, 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), Office of Investigations Miami Office announced that a former medical director for Biscayne Milieu, a Miami-based mental-health clinic, was sentenced today to serve 144 months in prison for his role in a fraud scheme involving the submission of more than $50 million in fraudulent billings to Medicare.
Dr. Gary Kushner, 72, of Plantation, Fla., was sentenced by U.S. District Judge Robert N. Scola Jr. in the Southern District of Florida. In addition to the prison term, Kushner was ordered to serve three years of supervised release.
Kushner was convicted on Aug. 24, 2012, of one count of conspiracy to commit health care fraud and one substantive count of health care fraud, following a two-month jury trial.
According to the evidence at trial, Kushner and his co-conspirators caused the submission of over $50 million dollars in false and fraudulent claims to Medicare through Biscayne Milieu, which purportedly operated a partial hospitalization program (PHP) – a form of intensive treatment for severe mental illness. Instead of providing legitimate PHP services, the defendants devised a scheme in which they paid patient recruiters to refer ineligible Medicare beneficiaries to Biscayne Milieu for services that were never provided or were not properly reimbursable by Medicare. Many of the patients admitted to Biscayne Milieu were not eligible for PHP because they were chronic substance abusers, suffered from severe dementia and would not benefit from group therapy, or had no mental health diagnosis but were seeking exemptions for their U.S. citizenship applications.
The evidence at trial further showed that, as Biscayne Milieu’s medical director, Kushner authorized the treatment of patients that he knew were ineligible for PHP treatment. Biscayne Milieu then billed Medicare for millions of dollars in PHP treatments for these patients under Kushner’s name. Evidence further revealed that Kushner would often conduct cursory examinations lasting only minutes before authorizing such fraudulent billings.
Various owners, doctors, managers, therapists, patient brokers and other employees of Biscayne Milieu have also been charged with various health care fraud, kickback, money laundering and other offenses in two indictments unsealed in September 2011 and May 2012. Biscayne Milieu, its owners and more than 25 of the individual defendants charged in these cases have pleaded guilty or have been convicted at trial. Antonio and Jorge Macli and Sandra Huarte – the owners and operators of Biscayne Milieu – were each convicted at trial of various offenses and are scheduled for sentencing in April 2013.
Mr. Ferrer commended the investigative efforts of the Federal Bureau of Investigation and the Office of the Inspector General for the Department of Health and Human Services in coordination with the Medicare Fraud Strike Force. The case was prosecuted by Assistant U.S. Attorneys Michael Davis, Marlene Rodriguez and James V. Hayes.
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.
Former Broward Resident Pleads Guilty to Passport Fraud and Aggravated Identity TheftRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Wendy Bashnan, Special Agent in Charge, U.S. Department of State, Diplomatic Security Service, Miami Field Office, announce that defendant Arcesio Rojas Valencia a/k/a Arcisio Rojas Valencia a/k/a Arcy Valencia, 50, formerly of Broward County, Florida, and most recently of Costa Mesa, California, has entered a guilty plea to charges of passport fraud and aggravated identity theft, in violation of Title 18, United States Code, Sections 1542 and 1028A. Valencia appeared today in federal court in Fort Lauderdale before U.S. District Judge William P. Dimitrouleas.
Valencia admitted that he was born in Colombia, South America in December 1962, but in or around March 2001 in Florida, applied for and obtained for his own use and with his own photograph, a U.S. passport in the name of his U.S.-born son and birthdate of October 1965. To do so, Valencia submitted to the Department of State a copy of his son’s U.S. birth certificate, with the year of birth altered from 1985 to 1965. Valencia admitted that he knew that his statements in the passport application as to the name, date of birth, and place of birth were false. Valencia further admitted to willfully and knowingly using the passport on or about May 26, 2008, at Fort Lauderdale International Airport, and during and in relation thereto, to knowingly possessing and using, without lawful authority, the means of identification of his son, “A.V.”
On November 30, 2012, a federal grand jury in Miami charged Valencia, and an arrest warrant was issued for him. Diplomatic Security Service agents located Valencia in Southern California, where they arrested him in Los Angeles on December 5, 2012. Based in part on an active Broward County arrest warrant dating back to 1990, the U.S. Magistrate Judge in California ordered that Valencia be detained until trial. Valencia was returned to the Southern District of Florida in late December. At a hearing before U.S. Magistrate Judge Lurana Snow in early January 2013, Valencia stipulated to continued pre-trial detention due to the outstanding state arrest warrant.
Valencia faces a mandatory two-year term of imprisonment when he is sentenced on May 28, 2013.
Mr. Ferrer commended the efforts of the U.S. Department of State, Diplomatic Security Service, in locating the defendant. The case is being prosecuted by Assistant United States Attorney Robert T. Watson.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Congressional Candidate Pleads Guilty to Violation of the Federal Election Campaign ActRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Mythili Raman, Acting Assistant United States Attorney for the Criminal Division of the Department of Justice, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced today that Justin Lamar Sternad, 35, pled guilty before U.S. District Court Judge Robin S. Rosenbaum to violating the Federal Election Campaign Act (Election Act) in connection with the 2012 Democratic Party primary election for Florida’s 26th Congressional District.
Sternad, 35, of Miami, pleaded guilty before U.S. District Court Judge Robin S. Rosenbaum in the Southern District of Florida. Sternad pleaded guilty to all counts of a criminal information that charged him with one count of conspiracy to make false statements to the Federal Election Commission (FEC), one count of making false statements to the FEC and one count of accepting illegal campaign contributions.
Sternad was a candidate in the 2012 Democratic Party primary election for Florida’s 26th Congressional District. According to court documents, Sternad engaged in a conspiracy to accept illegal campaign contributions and file false statements with the FEC in order to conceal the true source, amount and nature of the funds used by his campaign.
Sternad admitted that his campaign accepted cash and checks in excess of Federal Election Campaign Act limits, and that he filed statements that intentionally misled the FEC about his campaign’s activities. During the campaign, illegal cash contributions from co-conspirators were used to pay for a rental car and the design, printing and distribution of campaign flyers.
According to court documents, Sternad reported to the FEC that he made loans to his campaign in the amount of $63,801, when he knew that he had actually loaned fewer than $300. In total, Sternad accepted over $70,000 in misreported campaign contributions.
Judge Rosenbaum set sentencing for May 31, 2013 at 10:00 a.m. At sentencing, Sternad faces a maximum penalty of five years in prison and a fine up to $250,000 on each count.
Mr. Ferrer commended the investigative efforts of the Federal Bureau of Investigation. The case is being prosecuted by Senior Litigation Counsel Thomas J. Mulvihill and Richard C. Pilger, Director of the Election Crimes Branch of the Public Integrity Section of the Criminal Division of the U.S. Department of Justice.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Cooper City Resident Sentenced for Tax Refund FraudRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), and Paula Reid, Special Agent in Charge, United States Secret Service (USSS), announced today’s sentencing of defendant David Forbes, 43, of Cooper City, Florida, on charges of theft of government monies resulting from his participation in a stolen identity tax refund scheme. At today’s hearing, U.S. District Judge Kenneth A. Marra sentenced Forbes to 48 months in prison. In addition, Forbes was sentenced to three years of supervised release and was ordered to pay restitution in the amount of $372,342.41.
Forbes had previously pled guilty to the theft of government funds in connection with an identity theft tax refund scheme in which the defendant converted more than $1,574,791.83 in tax refunds and had those amounts deposited into his personal and corporate bank accounts. These tax refund payments had been obtained through the filing of false tax returns using stolen personal identification information of unwitting victims. During the investigation and prosecution, defendant Forbes consented to the government’s seizure of $888,399.08. In addition, other bank accounts were identified and an additional $313,550.00 was frozen and returned to the government.
Mr. Ferrer commended the investigative efforts of the IRS-CID and Secret Service. The case is being prosecuted by Assistant U.S. Attorney Laurie Rucoba.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
St. Lucie County Resident Convicted of Child Pornography ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kenneth Mascara, Sheriff, St. Lucie County Sheriff’s Office (SLCSO), announced that on March 7, 2013, a Ft. Pierce federal jury found defendant Cameron Dean Bates, 46, of Port Saint Lucie, guilty on all 18 counts of an indictment that charged Bates with receipt and distribution of child pornography via the internet.
U.S. District Judge K. Michael Moore, who presided over the eight day trial, immediately remanded Bates to the custody of the U.S. Marshall Service. Sentencing has been scheduled for June 3, 2013 in Ft Pierce. At sentencing, Bates faces a mandatory minimum of five years in jail and up to 20 years in prison and a lifetime of supervised release on each of the eight counts of receipt of child pornography and the one count of distribution of child pornography. Bates faces up to ten years imprisonment on the eight counts of accessing child pornography and the one count of possession of child pornography. In addition, Bates will be required to register as a sex offender.
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.
Michigan Couple Pleads Guilty in Fraudulent Test Kit SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Allison C. Lerner, Inspector General, National Science Foundation (NSF), and Antonio J. Gomez, Acting Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, announced today that Alexander Lorin Davis, 40, and Dawn Marie Davis, 46, both of Pinckney, Michigan, pled guilty today in federal District Court in West Palm Beach to charges related to falsely making and forging the seal of the National Science Foundation (NSF), an agency of the United States, and mail fraud in connection with the marketing by internet of environmental test kits to the public which were not in fact analyzed by qualified laboratories as asserted in advertisements and literature accompanying the kits, in violation of Title 18, United States Code, Sections 506(a)(1), 1341, 4, and (2).
U.S. District Judge Kenneth Ryskamp accepted the guilty pleas, and set sentencing for Alexander Davis for June 27, 2013 at 2:00 p.m. in West Palm Beach. The defendant faces a term of possible imprisonment of up to five years on the count of misusing the logo of the NSF and up to 20 years for the charges related to mail fraud. Additionally, he faces a term of supervised release of up to five years. Dawn Davis, who pled guilty to a charge of misprision of a felony for failing to alert appropriate authorities to the criminal conduct, was immediately sentenced in the matter by Judge Ryskamp to a 2 year term of probation and will be subject to a restitution order after a hearing to be held on April 25, 2013.
According to court records and Joint Factual Statements submitted to the Court, during the period from May 2011 through November 2012, Alexander Davis was the owner and operator of Davis Test Kits (DTK). DTK was in the business of marketing test kits to be used in homes or businesses for the purpose of detecting the presence of various environmental pollutants and substances, such as molds, asbestos, radon, and lead. During this time, the DTK website displayed the forged and counterfeited seal of the NSF, without the permission or knowledge of the NSF. As part of the scheme, Alexander Davis also made materially false representations and promises on the DTK website, claiming that upon return of the test kit by the customer DTK would cause the kit to be submitted for testing by individuals from an established, accredited laboratory.
In this way, Davis knowingly caused hundreds of the DTK kits to be delivered to and returned from customers via the U. S. Postal Service . In fact, DTK did not operate or employ testing laboratories certified as represented on the website and many test kits returned to DTK were never submitted for testing by an accredited laboratory. In order to provide a test report to customers whose mold test kits were not in fact tested, defendant would use a template from other laboratory tests as if they were unique to the new customer’s sample. The purpose of the false representations was to obtain money from customers whose samples were not tested by the accredited laboratory and/or to induce the customers to engage DTK to provide additional services for further payment.
During the same time period, Dawn Davis, was aware that her husband was employing and using the seal of the NSF on the internet website of DTK and knew the company was marketing the test kits. She was also aware that DTK in fact did not submit all the customer test kits received through the mail to accredited laboratories for analysis as DTK represented on its website and in written materials provided to the customers. Despite her knowledge of the mail fraud being perpetrated by her husband, Dawn Davis concealed and failed to make known as soon as possible to an appropriate official that DTK was selling its testing services without any affiliation or connection to NSF, and was failing to provide the purchased testing services to some customers.
The National Science Foundation is an independent federal agency established by Congress in 1950 to promote the progress of science and to advance the national health, prosperity, and welfare. The agency meets this mission by funding approximately 20% of all federally supported basic research conducted by America’s colleges and universities with an annual budget of approximately $6.9 billion. The National Science Foundation neither tests consumer products, nor audits and inspects private laboratories.
Mr. Ferrer commended the investigative efforts of the National Science Foundation and the U. S. Postal Inspection Service. The criminal case is being prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Four Defendants Sentenced in Timeshare FraudRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Daniel C. Alexander, Chief, Boca Raton Police Department, announced yesterday that Senior United States District Judge Kenneth L. Ryskamp sentenced defendants Anthony J. Chiaramonte, 35, of New York City, Nicholas Charles Higgins, 27, of Boynton Beach, Florida, Wensley Robin McFarlane, 53, of Lake Worth, Florida, and James Michael Tomasso, 53, of Boca Raton, Florida, for conspiring to commit mail and wire fraud, in violation of Title 18, United States Code, Section 1349.
Defendant Chiaramonte was sentenced to 51 months in prison; defendant Higgins was sentenced to one year and one day in prison; defendant McFarlane was sentenced to 90 months in prison; and defendant Tomasso was sentenced to 42 months in prison.
These defendants participated in a telemarketing boiler room through which telemarketers negotiated to purchase victim-owned timeshares on condition that the victim paid an advanced fee to cover such things as a title search. This fee ranged as high as tens of thousands of dollars. The victims were also told that this fee would be refunded to them at closing together with the money the conspirators were to pay them for the timeshares. None of these purchases ever occurred. In total, the conspiracy victimized over 1,000 people, many of whom were senior citizens, and cost the victims, in aggregate, more than $2.5 million.
Mr. Ferrer commended the investigative efforts of the FBI and the Boca Raton Police Department. This case is being handled by Assistant U.S. Attorney Kerry S. Baron.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Gymnastics Coach Charged with Attempted Transfer of Obscene Material to A Minor and Attempted Receipt and Possession of Child PornographyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced the arrest of defendant Raymond Adams, 42, of Boca Raton, in connection with a seven count indictment charging Adams with attempted transfer of obscene material to a minor, possession of child pornography, and attempted receipt of child pornography, in violation of Title 18, United States Code, Sections 1470, 2252(a)(2) and 2252(a)(4)(B).
Adams, who is also facing pending state charges in Broward County 17th Judicial Circuit in case number 09019123CF10A related to molesting a 10 year old gymnastics student of his in 2009, had his initial appearance before United States Magistrate Judge William Matthewman yesterday. A pre-trial detention hearing is set for Monday, March 18, 2013, before the duty United States Magistrate Judge. If convicted, Adams faces a mandatory statutory minimum sentence of five years and a possible maximum statutory sentence of up to twenty years in prison and a lifetime of supervised release. In addition, Adams would have to register as a sex offender.
Anyone with any information about this case should contact the FBI at (305) 944-9101.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Project Safe Childhood was launched in May 2006 by the Department of Justice and is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mr. Ferrer commended the investigative efforts of the FBI. The case is being prosecuted by Assistant U.S. Attorney Brandy Brentari Galler.
An indictment 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.
Two City of Miami Police Officers and One State Corrections Officer Arrested and Charged in Separate Corruption InvestigationsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Manuel Orosa, Chief, City of Miami Police Department, announced today that Bernard Beliard, 27, a State Corrections officer assigned to the South Florida Reception Center, Vital Frederick, 26, and Malinzky Bazile, 28, City of Miami police officers, were arrested today and charged in three separate complaints with fraud and extortion offenses. The defendants made their initial appearance in federal court this afternoon before U.S. Magistrate Judge Robert L. Dubé.
The first complaint (Criminal No. 13-2314-Dubé) charges Bernard Beliard with access device fraud and aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(3) and 1028A(a)(1), respectively. The second complaint (Criminal No. 13-2315-Dubé) charges Vital Frederick with extortion under color of official right, access device fraud, and aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(3), 1028A(a)(1), and 1951(a), respectively. The third complaint (Criminal No. 13-2316-Dubé) charges Malinsky Bazile with access device fraud, use of a computer to facilitate the access device fraud, and aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(2), 1030(a)(4), and 1028A(a)(1), respectively.
According to the allegations in each of the complaints, the defendants used their official law enforcement position to gain and/or access personal identifying information, including names, dates of birth, and social security numbers of individuals. More specifically, Beliard and Frederick are alleged to have gained access to and sold personal identifying information of unsuspecting individuals to an FBI source believing that such information would be used in a tax return fraud. Bazile allegedly used the City’s official computer to gain access to personal identifying information of individuals, and then used the information to participate in a tax return fraud scheme. Frederick is also charged with providing security and protection services to a check cashing operation that purportedly cashed fraudulent treasury checks.
U.S. Attorney Wifredo A. Ferrer stated, “Identity theft and stolen identity refund fraud are the fastest growing crimes in South Florida, spreading like a virus. The perpetrators of this type of fraud have been as diverse as the victims they prey upon. To date, we have prosecuted Social Security office employees, hospital employees, clinic workers, former NFL players, gang members, and violent criminals, to name a few. Today, we sadly add law enforcement to the list of thieves.”
“Lawmen have a great responsibility and therefore must be held to a higher standard,” said Acting SAC William J. Maddalena for FBI Miami. “The FBI’s Miami Area Corruption Task Force was assembled and designed to ensure that these high standards of integrity are met and maintained.”
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, Internal Revenue Service, and the Florida Department of Corrections - Office of Inspector General (FDOC-OIG). These cases are being prosecuted by Assistant U.S. Attorneys Robin W. Waugh and Michael N. Berger.
A criminal complaint is only an accusation and a defendant is presumed innocent unless proven guilty.
Attachments:
Bazile,Malinsky Complaint (PDF)
Beliard,Bernard Complaint (PDF)
Frederick,Vital Complaint (PDF)A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Hollywood Man Sentenced to 16 Years in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), Miami Field Office, and Steven Steinberg, Chief, Aventura Police Department (Aventura PD), announce the sentencing of defendant Jonathan Torres-Bonilla, 36, of Hollywood. Torres-Bonilla was sentenced to 16 years in prison, to be followed by 3 years of supervised release. The defendant was also ordered to pay $100,388.01 in restitution to the Internal Revenue Service.
On December 27, 2012, defendant Torres was convicted at trial of all six counts in the indictment against him. Specifically, Torres was convicted of two counts of access device fraud, in violation of Title 18, United States Code, Sections 1029(a)(2) and 1029(a)(3), and four counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1), in connection with an identity theft tax refund fraud scheme.
According to testimony and evidence presented at trial, the defendant had been observed by plain-clothes Aventura police officers at the Aventura Mall using multiple debit cards at multiple different ATMs on November 25, 2011. Aventura police officers followed the defendant to the mall garage, where he tried to flee in a minivan. The defendant was arrested when he refused to provide identification. The officers then searched the defendant and his car and found 28 pre-paid debit cards (loaded with $117,000 in tax refunds), dozens of ATM receipts, and more than $1,700 in cash. At sentencing, the defendant was found to have obstructed justice by lying during his testimony at trial.
Mr. Ferrer commended the efforts of IRS-CID and Aventura PD for their work on the case. The case was prosecuted by Assistant U.S. Attorney Michael N. Berger.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Health Care Clinic Director Pleads Guilty in Miami for Role in $63 Million Health Care Fraud SchemeRead the Press Release
A former health care clinic director and licensed therapist pleaded guilty today 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.
Paul Thomas Layman, 66, 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.
Layman’s co-conspirator Dana Gonzalez, 43, of Miami, a registered clinical social worker intern in Florida, pleaded guilty yesterday to one count of conspiracy to commit health care fraud for her role in the scheme.
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.
In Florida, HCSN operated community mental health centers at three locations. During his employment, Layman worked full time at all HCSN locations in Florida in various capacities. According to court documents, Layman 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. 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 personnel in Florida were fabricating patient medical records. 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. During his employment at HCSN in Florida, Layman signed fabricated PHP therapy notes and other medical records used to support false claims to government sponsored health care programs.
HCSN also operated one location in Hendersonville, N.C. At the Hendersonville location, Layman served as the clinical director and assisted HCSN owner Armando Gonzalez in obtaining necessary licensing, credentials and Medicare authorizations for HCSN. According to court documents, from 2008 through 2009, Layman purportedly supervised therapists at HCSN in Hendersonville, including Alexandra Haynes, who was an unlicensed therapist purportedly performing PHP therapy to HCSN patients. For their roles in the conspiracy, Gonzalez pleaded guilty to one count of conspiracy to commit health care fraud and one count of conspiracy to commit money laundering, and Haynes pleaded guilty to one count of conspiracy to commit health care fraud. On Monday, Feb. 25, 2013, Gonzalez was sentenced to serve 168 months in prison for his role in the scheme.
According to court documents, Dana Gonzalez worked at HCSN in Florida from approximately April 2005 through December 2010. At HCSN in Florida, Gonzalez fabricated patient medical records, which were used to support false and fraudulent billing to Medicare and Florida Medicaid. In 2011, Gonzalez worked at HCSN in North Carolina, where she fabricated therapy notes and medical records, and provided unlicensed therapy when licensed therapists were absent.
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 12 defendants have pleaded guilty. Alleged co-conspirator Wondera Eason is scheduled for trial on April 22, 2013, before Judge Altonaga in Miami. 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.
The cases are being prosecuted by Special Trial Attorney William Parente and Trial Attorneys Allan J. Medina and Steven Kim of the Criminal Division's Fraud Section. 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.
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.
Fifteen Charged in Telemarketing Scheme to Defraud Time-Share Unit OwnersRead the Press Release
Forty-one defendants charged to date on timeshare resale telemarketing fraud
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, announced today a two-count Indictment charging conspiracy to commit mail fraud and wire fraud and conspiracy to commit money laundering. The indictment charges the following 15 defendants: Pasquale Pappalardo, 60, of Coral Springs, FL, Pasqualino Agovino, 49, of Coral Springs, FL, Patride Ditroia, 43, of Coral Springs, FL, Louis Duany, 64, Wilton Manors, FL, Michael Bleich, formerly of Boca Raton, FL, 36, Audwin Lovinsky, of Tamarac, FL, 35, Ibrahim Al-Dabbas, 47, Deerfield Beach, FL, Michael Vincent Scheel, 50, of Boca Raton, FL, Diana Harrington, 65, of Boca Raton, FL, Ashley Lowton, 24, of Clermont, FL, Charles Lee, 24, of Coral Springs, FL, Kenneth Rockmore, 27, of Lauderhill, FL, Ricardo Davis, 25, of Tamarac, FL, Milton Oliver, 37, of Boynton Beach, FL, and Clinton Ross, 57, of Redondo Beach, CA. All defendants are charged in Count 1 of the indictment with conspiracy to commit mail fraud and wire fraud, in violation of Title 18, United States Code, Section 1349. Count 2 charges defendants Pappalardo, Agovino, Ditroia, and Duany with conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956. Defendants Pappalardo, Ditroia, Lovinsky, Oliver, Agovino, Duany, Lowton, Davis and Lee all appeared in court today before U.S. Magistrate Judge Lurana S. Snow. Bond hearings are scheduled for tomorrow. Arrests are expected to continue during the week.
So far, 41 defendants have been charged to date for their involvement with a time-share resale telemarketing room called Timeshare Mega Media and Marketing Group, Inc. (TMMMG). The other cases previously filed include Case Nos. 11-60190-CR-Cohn, 11-60247-Cr-Marra, 11-60268-Cr-Hurley, 12-60019-Cr-Scola, 12-60149- Cr- Scola, and 12-mj-6114-RSR.
According to the indictment, in June 2009, Pappalardo incorporated TMMMG, using defendant Duany and Duany’s mother as nominee owners. Pappalardo was a co-owner of TMMMG, and Ditroia, Agovino, and Duany helped run TMMMG for him. 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 whom 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.
According to the indictment, the defendants knew that TMMMG never had any buyers for any of the sellers of their time-share units. In this way, during the ten months that TMMMG was in business, it fraudulently induced customers to send approximately $5,000,000 to TMMMG, of which Pappalardo received at least $300,000 in checks and hundreds of thousands of dollars of cash from victims.
If convicted, defendants Pappalardo, Agovino, Ditroia, and Duany each face a possible statutory maximum sentence of up to 40 years in prison. Defendants Bleich, Lovinsky, Al-Dabbas, Scheel, Harrington, Lowton, Lee, Rockmore, Davis, Oliver, and Ross each face a possible statutory maximum sentence of up to twenty years in prison.
Mr. Ferrer commended the investigative efforts of the FBI. Mr. Ferrer also recognized the assistance provided by the Fort Lauderdale Police Department and the Federal Trade Commission during this investigation. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
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.
Palm Beach County Resident Arrested for Production of Child PornographyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced yesterday that Gary Goldberg, 49, of Palm Beach County, was charged with production of child pornography in violation of Title 18, United States Code, Section 2251. A Pre-trial detention hearing is scheduled for Goldberg today at 10:00 a.m.
The complaint charges Goldberg with production of child pornography, in violation of Title 18, United States Code, Sections 2251. If convicted, Goldberg faces a mandatory minimum term of imprisonment of fifteen years and a maximum term of imprisonment of up to thirty years.
According to the complaint, Goldberg entered into a relationship with a 17 year old girl and her 15 year old friend. Goldberg allegedly performed oral sex on the 15 year old girl in the bathroom at the BP station at Glades Road while the 17 year old waited in the car outside. Goldberg paid the minors to allow him to take nude and sexually explicit photographs of them. Goldberg allegedly photographed the girls with a tablet.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mr. Ferrer commended the investigative efforts of the FBI, Boca Raton Police Department, the FBI Safe Streets Task Force, and the South Florida Minor Vice Task Force. The case is being prosecuted by Assistant U.S. Attorney Lothrop Morris.
An indictment 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.
Palm Beach County Man Pleads Guilty in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Paula A. Reid, Special Agent in Charge, U.S. Secret Service (USSS), and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announced that defendant Jeanson Pata, 31, of West Palm Beach, pled guilty before U.S. District Judge James I. Cohn to two counts of theft of government money or property in violation of Title 18, United States Code, Section 641, and one count of false statement to a federal agency in violation of Title 18, United States Code, Section 1001. He faces a possible maximum statutory sentence of 25 years in prison. Sentencing is scheduled before Judge Cohn for May 14, 2013, at 9:00 a.m.
According to documents filed in court, on or before May 27, 2010, the defendant, Jeanson Pata, gave his SunTrust Bank debit card and PIN to his cousin (and co-defendant) Fednol Pierre, so that Pierre could deposit stolen tax refund checks into Pata’s bank account. Pierre deposited two such checks into Pata’s checking account, totaling $14,078, on May 27, 2010, and June 10, 2010. Shortly after each deposit, Pierre, with help from Pata, withdrew most of those funds at ATMs, grocery stores, and the teller window. Pata also transferred a total of $1,200 of those funds into his own savings account.
Additionally, according to documents filed in court, on November 20, 2012, Pata falsely told a U.S. Secret Service Special Agent that he had not received payment for allowing Pierre to use his bank account to deposit checks.
Mr. Ferrer thanked USSS and IRS-CI for their work on the case. The case is being prosecuted by Assistant U.S. Attorney Benjamin C. Coats.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Wilton Manors Resident Indicted for Defrauding the State of Florida Unemployment Compensation ProgramRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Richard Walker, Special Agent in Charge, U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, and Jesse Panuccio, Executive Director, Florida Department of Economic Opportunity, announced today the arrest and unsealing of a twelve (12) count indictment charging defendant Denny Ray Hughes, 40, formerly of Wilton Manors, FL, with nine (9) counts of wire fraud, in violation of Title 18, United States Code, Section 1343, and three (3) counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
If convicted on the wire fraud counts, the defendant faces a maximum statutory sentence of up to twenty years in prison, three years of supervised release, and a $250,000 fine. If convicted on the aggravated identity theft counts, the defendant faces a mandatory two years imprisonment consecutive to any other sentence imposed.
According to the indictment, between January 2011 and April 2012, defendant Hughes obtained the personal identifying information of approximately 21 individuals, including their names, dates of birth, and social security numbers, and in order to obtain and build wage credits for the purported employees filed or caused to be filed fraudulent quarterly UCT-6 forms with the Florida Department of Revenue classifying them as employees of Mortgage Relief America, LLC (MRA). Alternatively, defendant Hughes submitted falsified W-2’s to the Florida Department of Economic Opportunity to create the appearance that these individuals had previously worked for MRA. The defendant thereafter classified these individuals as laid off employees and fraudulently filed applications with the Florida Department of Economic Opportunity seeking unemployment compensation benefits on their behalf utilizing their personal identifying information. Once these fraudulent unemployment compensation applications had been submitted to the Florida Department of Economic Opportunity, the defendant made materially false, misleading, and fraudulent claims to the Florida Department of Economic Opportunity Unemployment Compensation Program over the internet and/or over the telephone on either a weekly or bi-weekly basis, and thereby caused unemployment compensation funds from the Florida Department of Financial Services to be deposited directly into the defendant’s bank account via electronic funds transfers. In total, the defendant allegedly defrauded the State of Florida out of approximately $206,000.00.
Mr. Ferrer commended the investigative efforts of the U.S. Department of Labor, Office of the Inspector General and the Florida Department of Economic Opportunity. This case is being prosecuted by Assistant U.S. Attorney Marc Anton.
An indictment is only an accusation and a defendant is presumed innocent unless 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.
International Heating and Cooling Product Distributor Pleads Guilty and Sentenced for Illegal Purchase and Sale of Smuggled Ozone-Depleting Refrigerant GasRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Maureen O’Mara, Special Agent in Charge, United States Environmental Protection Agency (EPA), Criminal Investigation Division, Atlanta Area Office, and Alysa D. Erichs, Special Agent in Charge, United States Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), announced today that defendant, FSD Group, LLC a Florida corporation with its headquarters in Miami, was convicted and sentenced in connection with the illegal receipt, purchase, and sale of ozone-depleting refrigerant gas that had been smuggled into the United States contrary to the Clean Air Act, in violation of Title 18, United States Code, Section 545.
FSD Group pled guilty to a one count Information filed against it before United States District Court Judge Joan Lenard, for knowingly receiving, buying, selling and facilitating the transportation, concealment, and sale of approximately 65,592 kilograms of the ozone-depleting substance hydrochlorofluorocarbon-22 (“HCFC-22") which had been illegally smuggled into the United States contrary to the Clean Air Act. HCFC-22 is a widely used refrigerant for residential heat pump and air-conditioning systems.
Immediately following the guilty plea, FSD Group was sentenced to three years of probation and ordered to pay a $100,000.00 criminal fine. In addition, as a special condition of probation, FSD Group was ordered to implement and enforce a comprehensive Environmental Compliance Plan. FSD Group was also ordered to forfeit to the United States $180,051.00, which represents proceeds received as a result of the crime and pay owed duties to the United States Customs and Border Protection for incorrectly classified merchandise.
Federal law prohibits dealing in merchandise that is imported contrary to law. The Federal Clean Air Act regulates air pollutants including ozone depleting substances such as HCFC-22. The Clean Air Act and its implementing regulations established a schedule to phase out the production and importation of ozone-depleting substances beginning in 2002, with a complete ban starting in 2030. To meet its obligations under an international treaty to reduce its consumption of ozone-depleting substances, the United States issued baseline allowances for the production and importation of HCFC-22 to individuals and companies. In order to legally import HCFC-22, you must hold an unexpended consumption allowance.
According to court records, FSD Group which also operates under the name Saez Distributors, is an international supplier and distributor of merchandise for heating, ventilation, air conditioning, and refrigerator systems, equipment and products including ozone-depleting substances. In business for thirty five years, and itself, an original allowance holder under the Clean Air Act, FSD had extensive knowledge regarding the Act’s rules and prohibition against purchasing illegally imported HCFC-22. During the course of the illegal conduct, in addition to its legal imports, FSD Group made additional purchases of HCFC-22 from various importers, knowing they did not hold the required unexpended consumption allowances, totaling approximately 65,592 kilograms, of restricted HCFC-22, with a fair market value of approximately $733,096.00.
United States Attorney Wifredo A. Ferrer stated, “The regulatory program here is intended to protect us all from the harmful effects associated with depletion of the earth’s ozone layer. By aggressively supporting the investigative agencies in their efforts to enforce federal laws that seek to protect our environment, we are both meeting our country’s commitment and responsibility to our future generations and the international community.”
EPA SAC Maureen O’Mara said, “HCFC’s deplete the stratospheric ozone layer, which is critical to life on earth and protecting people from the harmful effects of ultraviolet radiation, including cancer. EPA will continue working with ICE and other agencies to combat such criminal conduct, preventing these dangerous smuggling and distribution operations, and curbing the world-wide threat of stratospheric ozone depletion. This plea and sentence, the first of its kind against an allowance holder, sends a strong message that those who jeopardize public safety in order to make illegal profits will be vigorously prosecuted and punished.”
“EPA realizes that as HCFCs are phased out domestically, smuggling is likely to rise, jeopardizing human health and our atmosphere. This is why EPA is working harder than ever, in cooperation with our federal partners, to seek justice against those that not only illegally import R-22, but also knowingly purchase contraband material,” said Drusilla Hufford, Director of EPA’s Stratospheric Protection Division.
“The unlawful importation of goods poses a significant threat to the national security, public safety, and in this particular case, the illegal importation posed a global hazard to our environment,” said Alysa D. Erichs, Special Agent in Charge of HSI Miami. “We will continue to vigorously investigate those who are determined to line their pockets with the proceeds of crimes against the environment.”
This matter and others involving the smuggling and distribution of ozone-depleting substances are being investigated through a multi-agency initiative known as Operation Catch-22. Operation Catch-22 has, to date, including the successful conviction of nearly a dozen individuals and corporations at every level of the refrigerant gas smuggling and distribution chain.
Mr. Ferrer commended the investigative efforts of the EPA, ICE-HSI, the Florida Department of Environmental Protection, Criminal Investigation Bureau, and the Miami-Dade Police Department. The case was prosecuted by Special Assistant U.S. Attorney Jodi A. Mazer.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Defendant Convicted of Providing Material Support to TerrorismRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and the members of the South Florida Joint Terrorism Task Force (“JTTF”), announced today that a Miami federal jury today convicted Hafiz Muhammed Sher Ali Khan, 77, on all counts in the indictment charging him with providing material support to terrorists, including the Pakistani Taliban. According to public records, defendant Hafiz Khan was the Imam at the Miami Masjid in Miami, Florida. The indictment did not allege that the masjid participated in the defendant’s scheme.
More specifically, after two months of trial, the jury convicted Khan on charges of conspiring to provide, and providing, material support to a conspiracy to murder, maim and kidnap persons overseas, 18 U.S.C. ' 2339A, and conspiring to provide material support to a foreign terrorist organization, specifically, the Pakistani Taliban, 18 U.S.C. ' 2339B. Sentencing has been scheduled for May 30, 2013. At sentencing, the defendant faces up to 15 years’ imprisonment on each count.
U.S. Attorney Wifredo A. Ferrer stated, “Despite being an Imam, or spiritual leader, Hafiz Khan was by no means a man of peace. Instead, he acted with others to support terrorists to further acts of murder, kidnapping and maiming. But for law enforcement intervention, these defendants would have continued to transfer funds to Pakistan to finance the Pakistani Taliban, including its purchase of guns. Dismantling terrorist networks is a top priority for this Office and the Department of Justice.”
“Today, terrorists have lost another funding source to use against innocent people and U.S. interests,” said Michael B. Steinbach, Special Agent in Charge of FBI Miami. “We will not allow this country to be used as a base for funding terrorists. Individuals such as Hafiz Muhammed Sher Ali Khan, who support terror, represent a threat to our safety and provide an example of why the FBI’s number one priority is counterterrorism.”
The Pakistani Taliban, also known as Tehrik e Taliban Pakistan, Tehrik I Taliban, Tehrik-e-Taliban, and Tehreek e Taliban, is a Pakistan-based terrorist organization formed in or around December 2007 by an alliance of radical Islamist militants. On September 1, 2010, the United States Department of State formally designated the Pakistani Taliban as a Foreign Terrorist Organization, under Section 219 of the Immigration and Nationality Act.
According to the evidence at trial, Khan, with the help of persons in South Florida and Pakistan, sent money and other material support to Pakistani Taliban contacts and sympathizers overseas. The Pakistani Taliban’s objectives include resistance against the lawful Pakistani government, enforcement of strict Islamic law known as Sharia, and opposition to the United States and coalition armed forces fighting in neighboring Afghanistan. The Pakistani Taliban has committed numerous acts of violence in Pakistan and elsewhere, including suicide bombings which resulted in the death of civilians as well as Pakistani police, army, and government personnel, and also provided financing and training for the attempted bombing of New York City’s Times Square in May 2010.
According to the evidence at trial, Khan sought to aid the Pakistani Taliban’s fight against the Pakistani government and its perceived allies, including the United States, by supporting acts of murder, kidnapping, and maiming in Pakistan and elsewhere, in order to displace the lawful government of Pakistan and to establish Sharia. Khan transferred money from the United States to Pakistani Taliban supporters in Pakistan, primarily using bank accounts and wire transfer services in the United States and Pakistan. These funds were intended to purchase guns for the Pakistani Taliban, to sustain militants and their families, and generally to promote the Pakistani Taliban’s cause. Khan also solicited and collected money in the United States for that purpose, taking great care to conceal his activities. In one recorded conversation introduced as evidence at trial, Khan stated that money cannot be sent openly to the Pakistani Taliban, but must instead be sent covertly through its supporters. Khan also used a madrassa he founded in Pakistan (where he was born) to provide shelter and other support to Pakistani Taliban militants. In another recorded conversation introduced as evidence at trial, Khan claimed that children from his madrassa have gone to train to kill Americans in neighboring Afghanistan.
Mr. Ferrer commended the investigative efforts of the FBI, U.S. Customs and Border Protection, U.S. Department of State, Broward Sheriff’s Office, Miami-Dade Police, City of Miami Police, City of Miramar Police, City of Margate Police, and the Florida Department of Environmental Protection, and the members of the South Florida Joint Terrorism Task Force. The case is being prosecuted by Assistant U.S. Attorneys John Shipley, Sivashree Sundaram, and Michael Patrick Sullivan, from the U.S. Attorney’s Office for the Southern District of Florida, and Trial Attorney Bridget Behling from the Counterterrorism Section of the Justice Department’s National Security Division.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Owner of North Miami Beach Dry Cleaner Sentenced in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), Miami Field Office, and Larry Gomer, Interim Chief, North Miami Beach Police Department (NMBPD), announce the sentencing of defendant Frantz Auguste, 53, of Sunny Isles, on one count of access device fraud and one count of aggravated identity theft in connection with an identity theft tax refund fraud scheme. U.S. District Judge Donald L. Graham sentenced Auguste to 45 months in prison, to be followed by one year of supervised release.
According to documents filed in Court, law enforcement searched Auguste’'s dry cleaning business in North Miami Beach on October 4, 2012, and found the following in a locked room for which Auguste had the only key:
• Handwritten notes and lists with the personal identification information, including names, dates of birth, and Social Security numbers, of approximately 100 individuals. Several of these lists appeared to have originated from a local nursing home and rehabilitation center.
• Multiple tax refund checks in different individuals’ names.
• Multiple tax returns in different individuals’ names.Mr. Ferrer commended the investigative efforts of IRS-CID and the NMBPD for their work on the case. The case was prosecuted by Assistant U.S. Attorney Michael N. Berger.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
North Miami Resident Pleads Guilty to Identity TheftRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announced today announced that Josue Faustin, 20, of North Miami, pled guilty this morning to charges of possession of unauthorized access devices and aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(3) and 1028A(a)(1), (b), and (c)(4).
Sentencing has been scheduled for May 9, 2013, before U.S. District Judge Zloch. At sentencing, the defendant faces a maximum statutory sentence of up to 10 years in prison for the possession of unauthorized access devices charge, and a mandatory sentence of 2 years’ imprisonment on the aggravated identity theft charge.
According to documents filed and statements made in court, Faustin engaged in a scheme using stolen identities to file fraudulent tax returns. The tax returns falsely claimed refunds and requested that the refunds be direct-deposited into Netspend debit card accounts, which Faustin had opened in the names of unwitting identity theft victims. Faustin subsequently went to various ATM machines in Coral Springs, Broward County, and withdrew funds from the Netspend debit card accounts.
On May 17, 2012, Faustin was observed by a Coral Springs police officer as he went to various CVS and 7-11 stores and bought pre-paid credit cards. After the purchases, Faustin went to ATM machines and withdrew money. Faustin was pulled over for a traffic stop and was found to be in possession of $5,881 in cash (separated into numerous bundles), 3 cell phones, 15 Netspend debit cards, and 4 newly purchased debit cards.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Jennifer Keene.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Fortune 500 Top Executive of Miami Beach Manufacturing Company Pleads Guilty in Multi-Million Dollar Investment SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Claudio Eleazar Osorio, a/k/a “Claudio Osorio Rodriguez,” 54, of Aventura, pled guilty on February 28, 2013, before U.S. District Court Judge William Dimitrouleas. Osorio pled guilty to two counts of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, and one count of conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h).
Sentencing has been scheduled for May 9, 2013. At sentencing, Osorio faces a maximum possible statutory sentence of up to 20 years in prison on each of the wire fraud conspiracies and 10 years in prison on the conspiracy to commit money laundering.
According to documents filed with the court and statements made in court during the plea, Osorio was the owner and majority shareholder of Innovida Holdings, LLC, a Florida limited liability company, located in Miami Beach. Innovida manufactured fiber composite panels for the construction industry for use in residential, commercial, governmental, and other structures without the need for cement, steel or wood. Innovida purported to be a rapidly expanding and financially strong international operation with facilities in the United States, the United Arab Emirates, Germany, Angola, Tanzania, and other countries.
According to statements made in court, between March 2007 and March 2011, Osorio offered and sold shareholder interests and joint-venture partnerships in Innovida to select individuals and groups, raising more than $40,000,000 from approximately ten (10) investors and investment groups in the United States and abroad. Osorio solicited and recruited investors by making materially false representations and concealing and omitting material facts regarding, among other things, the profitability of the company, the rates of return on investment funds, the use of investors’ funds and the existence of a pending lucrative contract with a third-party entity. Osorio received moneys from investors based on these misrepresentations. Osorio used investor monies for his and his co-conspirators’ personal benefit and to maintain and further the fraud scheme.
According to statements made in court, the second conspiracy to commit wire fraud related to a $10,000,000 loan that Osorio and another applied for and obtained a from the Overseas Private Investment Corporation (“OPIC”), a U.S. government agency that promotes U.S. government investments abroad to foster the development and growth of free markets. The purported purpose of the loan was to build a manufacturing facility and 500 homes in Haiti (“the Haiti project”) for displaced families in the aftermath of the January 2010 earthquake. Osorio and others made materially false representations and omissions concerning, among other things, the profitability of Innovida, the purported use of the loan proceeds, an equity contribution to be made by Innovida, and contracts that Innovida purportedly had obtained with third-party vendors. Osorio used the OPIC loan proceeds to repay investors and for his and his co-conspirators’ personal benefit and to further the fraud scheme.
Mr. Ferrer commended the investigative efforts of the FBI. The case is being prosecuted by Assistant U.S. Attorney Lois Foster-Steers.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Bahamian Man Arrested and Charged for Attempting to Smuggle $1.2 Million to the BahamasRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE), Homeland Security Investigations (HSI), Miami Field Office, announced that Rohan Spicer, a Bahamian national, was arrested and charged for allegedly attempting to smuggle approximately $1.2 million to the Bahamas. A bond hearing has been scheduled for 10:00 a.m. Monday, March 4, 2013, before U.S. Magistrate Judge William Matthewman.
According to court documents, Spicer traveled from the Bahamas to the United States by boat, arriving on February 25. HSI agents observed Spicer transfer items from the rear of his sport utility vehicle onto the boat on February 27. Spicer completed a U.S. Customs and Border Protection Vessel Entrance or Clearance Statement in which he declared that he was transporting household goods and speakers. Subsequently, Spicer’s boat was interdicted and boarded approximately six nautical miles east of the Palm Beach Inlet, at which time Spicer advised the officers that he was enroute to Freeport, Grand Bahamas, and that he was in possession of approximately $20,000.00 in U.S. currency that he had failed to declare one hour earlier at the Port of Palm Beach.
A Customs and Palm Beach Sheriff’s Office (PBSO) search of the vessel and cargo lead to the discovery and seizure of approximately $1.2 million in cash, packaged in $50,000 bundles of various dominations. The cash was hidden within merchandise, stereo speakers, and luggage discovered aboard the vessel.
Mr. Ferrer commended the investigative efforts of the ICE-HSI, CBP Office of Air and Marine Operations, CBP/Office of Field Operations, CBP/U.S Border Patrol, PBSO, and the Village of Tequesta Police Department. The case is being prosecuted by Assistant U.S. Attorney Stephanie Evans.
A complaint is only an accusation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Michigan Man Found Guilty of Child Sex Tourism ChargesRead the Press Release
A former Michigan resident was found guilty by a federal jury today in Miami of child sex tourism charges, announced U.S. Attorney for the Southern District of Florida Wifredo A. Ferrer, Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, and Special Agent in Charge Alysa D. Erichs of the U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), Miami Office.
Matthew Andrew Carter, aka “William Charles Harcourt” and “Bill Carter,” 67, formerly of Brighton, Mich., was found guilty in the U.S. District Court for the Southern District of Florida of five counts of traveling in foreign commerce from the United States to Haiti for the purpose of engaging in illicit sexual conduct with children and one count of attempting to do so. Carter is scheduled to be sentenced in Miami, Florida on May 20, 2013, before the Honorable Joan A. Lenard. At sentencing, Carter faces a maximum sentence of 15 years in prison on one count and a maximum sentence of 30 years in prison for each of the other five counts.
U.S. Attorney Wifredo A. Ferrer said, “The sexual exploitation of children, wherever it occurs, is a heinous crime. In this case, a U.S. citizen travelled to Haiti and, over the course of 16 years, preyed on vulnerable children. The daily sexual abuse of the children in his care caused irreparable harm to the victims and their families. Although nothing will repair the damage done to them, we hope that today’s verdict brings a sense of justice and closure to these victims. This verdict is a warning to child predators that they cannot evade justice simply by travelling abroad to avoid detection and prosecution.”
“The unspeakable acts committed by Mr. Carter against his innocent victims brought agencies and countries together to make him face justice. I commend the jury who had to sit through weeks of horrific testimony,” said Alysa D Erichs ,Special Agent in Charge of HSI Miami. “Although nothing can be done to repair the damage done to these victims by Mr. Carter, perhaps this will provide some respite.”
According to court documents and evidence presented at trial, from 1995 to 2011, Carter resided at and operated the Morning Star Center near Port-au-Prince, Haiti, prior to his arrest on May 8, 2011. The Morning Star Center was a residential facility that provided shelter, food, clothing, and school tuition to Haitian children. The children who lived at the Morning Star Center were from impoverished families that could not feed them, send them to school, or otherwise support their children. The evidence at trial showed that Carter specifically targeted children in need and preyed on their vulnerability. Between 1995 and 2011, Carter frequently traveled between the United States and Haiti in order to raise funds from churches and donors for the continued operation of the Center. Carter sexually and physically abused the children in his care and custody at the Center during this period of time. According to court documents and evidence presented at trial, Carter used force to get these children to comply with his sexual demands and required the children to participate in sexual acts in order to receive food, remain at the Center and/or continue to receive school tuition payments.
At trial, 16 Haitian victims who resided at the Morning Star Center between 1995 and 2011 testified. Additionally, four witnesses testified that they were sexually abused by Carter in London during the 1970s. Carter previously was charged with and acquitted of charges related to the sexual abuse of children in London, Cairo, Egypt, and Winter Haven, Fla.
The case is being prosecuted by Assistant U.S. Attorney Maria K. Medetis of the Southern District of Florida and Child Exploitation and Obscenity Section Trial Attorney Bonnie L. Kane of the Criminal Division. The case against Carter was investigated by ICE-HSI in Miami, the ICE-HSI Assistant Attaché’s Office in Santo Domingo, Dominican Republic and the ICE-HSI Santo Domingo Transnational Criminal Investigative Unit. Substantial assistance was provided by the Haitian National Police Brigade for the Protection of Minors; Haitian Social Services; the Ministry of the Interior for Haiti; the Bureau of Diplomatic Security, Regional Security Office for the U.S. Embassy in Port-au-Prince, Haiti; the Consular Section of the U.S. Embassy in Port-au-Prince, Haiti; the London Metropolitan Police Service; the U.S. Secret Service Miami Field Office; the FBI’s Washington, Boston and Miami Field Offices; and the ICE-HSI Attaché’s Offices in London and Cairo.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Ft. Lauderdale Man Convicted of Money Laundering and Obstruction of Justice in Connection with MBC FraudRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announced that, after a four-week trial before U.S. District Judge Kathleen M. Williams, a federal jury sitting in Miami convicted defendant Steven Steiner, a/k/a “Steven Steinger,” 60, on 19 of 54 counts, including conspiracy to commit money laundering offenses, money laundering, conspiracy to commit offenses against the United States, and various obstruction of justice offenses, relating to Steiner’s participation in a scheme to launder and conceal more than $15 million in proceeds derived from the Mutual Benefits Corporation (“MBC”) fraud, and Steiner’s obstruction of United States Securities and Exchange Commission (“SEC”), the court-appointed receiver for MBC, and the United States District Court, in their efforts to secure and recover assets traceable to the fraud. Co-defendant Henry Fecker, III was acquitted on all charges. Steiner is scheduled to be sentenced by Judge Williams on May 8, 2013.
According to the evidence presented at trial, from approximately 1994 to May 2004, MBC purchased life insurance policies from persons suffering from AIDS, chronically ill, and elderly persons. Having purchased the life insurance policies, MBC sold fractionalized interests in the death benefits, known as “viatical settlements,” to approximately 30,000 investors. In promotional materials, MBC told investors that its viatical settlements offered a fixed rate of return with low risk, and that investors’ principal and returns were paid by the insurance companies. Evidence at trial established that MBC misrepresented various material facts relating to its viatical settlements, including, for example, the estimated life expectancies of the insured persons, MBC’s title to certain life insurance policies, the risks associated with certain policies, the payment of premiums, and the source of funds used to pay investors. Witnesses testified that new investor money was used to pay premiums on life insurance policies purchased by earlier investors and to pay investors who requested their money back. The evidence established that as the fraud continued, investor money was required to prevent the MBC Ponzi-scheme from collapsing. Ultimately, investors lost more than $750 million.
Steiner was a founder, principal, and Vice President of MBC, and he received more than $15 million in proceeds from the MBC fraud through two shell corporations that he controlled, Camden Consulting, Inc., and SKS Consulting, Inc.
In May 2004, the SEC filed a civil enforcement action in the United States District Court for the Southern District of Florida, SEC v. Mutual Benefits Corp., et al., Case No. 04-60573-CIV-MORENO (the “SEC Fraud Action”), against MBC and various “relief defendants,” including Steiner’s shell corporations. On May 4, 2004, United States District Judge Federico A. Moreno entered an order appointing Coral Gables attorney Roberto Martinez as the receiver for MBC, with the mandate to identify, secure, trace, and recover the assets of MBC.
According to evidence presented at trial, the jury found that, following the closure of MBC and the appointment of the MBC receiver, Steiner engaged in money laundering transactions designed to conceal the source, location, ownership, and control of his proceeds from the MBC fraud. At the same time, Steiner acted to obstruct the SEC, the MBC receiver, and the United States District Court.
Evidence at trial also disclosed that in 2006 and early 2007, Steiner submitted false and misleading financial disclosure documents to the SEC to persuade the SEC to agree to a favorable settlement of the SEC claims against him and his shell corporations Camden Consulting and SKS Consulting, in the SEC Fraud Action. Based upon Steiner’s fraudulent financial disclosure, the SEC agreed to a reduced penalty of $3.9 million, and on April 10, 2007, the District Court entered a Final Judgment in the SEC Fraud Action ordering Steiner, SKS and Camden to pay $3.9 million to the court-appointed receiver for MBC. Evidence at trial established that Steiner acted to thwart the MBC receiver’s efforts to trace and recover MBC assets and recover on the final judgment. Among other things, Steiner repeatedly lied under oath during depositions and physically concealed documents, including checks representing proceeds from the MBC fraud.
Steiner is currently awaiting trial in two related cases in the Southern District of Florida. In United States v. Joel Steinger, et al., Case No. 08-21158-CR-Scola, Steiner and co-defendants Joel Steinger and Anthony Livoti are charged with conspiracy to commit mail and wire fraud and money laundering, in relation to the MBC fraud scheme. In United States v. Joel Steinger et al., Case No. 12-20123-CR-Rosenbaum, Steiner, Joel Steinger, and Henry Fecker III are charged with engaging in a multi-million dollar scheme to defraud insurance companies.
Mr. Ferrer commended the investigative efforts of the FBI and IRS-CI. This case is being prosecuted by Assistant U.S. Attorneys Jerrob Duffy and Dwayne E. Williams.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Owners of Miami Home Health Companies Sentenced to Prison in $48 Million Health Care Fraud SchemeRead the Press Release
The owners and operators of two Miami health care agencies were sentenced to nine years and more than four years in prison today, respectively, and ordered to pay millions in restitution for their participation in a $48 million home health Medicare fraud scheme that billed for unnecessary home health care and therapy services.
The sentences, imposed in federal court in the Southern District of Florida, were announced by U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Assistant Attorney General Lanny A. Breuer 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.
U.S. District Judge Frederico A. Moreno sentenced Rogelio Rodriguez, 43, and Raymond Aday, 48, both of the Miami-Dade area, to 108 months and 51 months in prison, respectively. In addition to the prison term, Judge Moreno sentenced Rodriguez to pay $33 million in restitution, and Aday to pay $2.1 million in restitution. Both defendants were also sentenced to serve three years of supervised release and pay a $100,000 fine. In December 2012, each pleaded guilty to one count of conspiracy to commit health care fraud.
According to court documents, Rodriguez was the owner of both Caring Nurse Home Health Corp. and Good Quality Home Health Inc., and Aday was a manager at Caring Nurse and owner of Good Quality.
According to plea documents, Rodriguez and Aday conspired with patient recruiters for the purpose of billing the Medicare program for unnecessary home health care and therapy services. Rodriguez, Aday and their co-conspirators paid kickbacks and bribes to patient recruiters. In return, recruiters provided patients to Caring Nurse and Good Quality, as well as prescriptions, plans of care (POCs) and certifications for medically unnecessary therapy and home health services for Medicare beneficiaries. Rodriguez and Aday used these prescriptions, POCs and medical certifications to fraudulently bill the Medicare program for home health care services, which both Rodriguez and Aday knew was in violation of federal criminal laws.
According to court documents, nurses and office staff at Caring Nurse and Good Quality falsified patient files to make it appear the Medicare beneficiaries qualified for services they did not. Rodriguez admitted to knowing that these files were falsified so the Medicare program could be billed for medically unnecessary therapy and home health related services.
From approximately January 2006 through June 2011, Caring Nurse and Good Quality submitted approximately $48 million in claims for home health services that were not medically necessary and/or were not provided. According to court documents, Medicare paid approximately $33 million for these fraudulent claims.
This case is being prosecuted by Assistant Chief Joseph S. Beemsterboer of the Criminal Division’s Fraud Section. The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Broward Man Sentenced in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Antonio J. Gomez, Acting Inspector in Charge, U.S. Postal Inspection Service, Miami Division, announce the sentencing of defendant Luis Enrique Ledee Bernard, a/k/a “Luis L. Bernard,” 21, of Miramar. Bernard was sentenced to 30 months in prison, to be followed by 3 years of supervised release. The defendant was also ordered to pay $22,000 in restitution. Bernard pled guilty on December 17, 2012 to one count of theft of government funds and one count of aggravated identity theft.
On October 9, 2012, the defendant was charged in a seventeen count indictment in connection with a scheme to obtain fraudulent tax return proceeds. According to the indictment, the defendant deposited nine (9) fraudulent tax refund checks that were fraudulently obtained by using the stolen personal identification information of at least (4) persons who were deceased. The proceeds from the nine fraudulent tax return refunds were direct-deposited into the defendant's bank account.
Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to the U.S. Postal Inspection Service and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Gera Peoples.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Owner of Mental Health Facilities Sentenced to 168 Months in Prison in Connection with $63 Million Health Care Fraud SchemeRead the Press Release
A former owner of mental health facilities in Florida and North Carolina was sentenced yesterday to serve 168 months in prison for his leadership role in 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; Assistant Attorney General Lanny A. Breuer 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.
Armando Gonzalez, 50, of Miami, was sentenced by U.S. District Judge Cecilia M. Altonaga in the Southern District of Florida. In addition to his prison term, Gonzalez was sentenced to serve three years of supervised release and ordered to pay 28,092,283 in restitution, which, under the terms of Gonzalez's plea agreement, will be satisfied in part by seized assets including $987,000 in currency seized in July 2012 and Gonzalez's mansion in Hendersonville, N.C.
On Dec. 17, 2012, Gonzalez pleaded guilty to one count of conspiracy to commit health care fraud and one count of conspiracy to commit money laundering.
According to court documents, HCSN operated community mental health centers at three locations in Miami-Dade County, Fla., and one location in Hendersonville. HCSN purported to provide partial hospitalization program (PHP) services to individuals suffering from mental illness. A PHP is a form of intensive treatment for severe mental illness. According to court documents, HCSN obtained Medicare beneficiaries to attend HCSN for purported PHP treatment that was unnecessary and, in many instances, not even provided.
Gonzalez orchestrated the HCSN fraud scheme, which centered on the recruitment and admission of patients who could not benefit from PHP services. In Miami, Gonzalez utilized patient recruiters to pay cash kickbacks in exchange for referrals from Assisted Living Facilities (ALF) patients who often suffered from conditions such as dementia and mental retardation. Once the unqualified patients were admitted to HCSN, Gonzalez's employees would fabricate virtually every portion of the patients' mental health medical records. The fake medical records were then utilized to support false billings to government sponsored health care benefit programs and to avoid detection by Medicare auditors.
In North Carolina, HCSN employees also routinely submitted false billing for patients watching movies, attending BBQs and, more commonly, patients who were not even present at the Miami and North Carolina facilities.
Gonzalez also admitted to his role in a money laundering scheme involving Psychiatric Consulting Network Inc. (PCN), a Florida corporation that was utilized by HCSN as a shell corporation to launder millions in health care fraud proceeds.
According to court documents, from 2004 through 2011, HCSN billed Medicare and the Florida Medicaid program approximately $63 million for purported mental health services that resulted in more than $28 million in payments.
Fifteen defendants have been charged for their alleged roles in the HCSN health care fraud scheme, and ten defendants have pleaded guilty. Alleged co-conspirators Wondera Eason and Paul Layman are scheduled for trial on March 11, 2013, before Judge Altonaga in Miami. Alleged co-conspirators Dr. Alina Feas, Dana Gonzalez and Lisset Palmero are scheduled for trial on June 3, 2013. Defendants are presumed innocent until proven guilty at trial.
The cases are being prosecuted by Special Trial Attorney William Parente and Trial Attorney Allan J. Medina of the Criminal Division's Fraud Section. 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. 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.
Treasure Coast Tax Return Preparer Sentenced to 42 Months in Prison for Preparing False Income Tax ReturnsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announced that Mary Ann Richard, of Ft. Pierce, Florida, was sentenced today on charges of assisting and advising in the preparation and presentation of 16 fraudulent income tax returns to the IRS, in violation of Title 26, United States Code, Section 7206(2), and 2 counts of filing false personal income tax returns, in violation of Title 26, United States Code, Section 7206 (1). U.S. District Judge Donald L. Graham sentenced Richard to 42 months in prison, to be followed by 2 years of supervised release. In addition, the defendant was ordered to pay the United States $183,026.00 in restitution.
According to the Indictment and factual basis at the time of plea, from about January 2010 through April 2010, defendant Richard was employed by JB&L Tax Service, Inc, a tax return preparation business located in Fort Pierce, Florida. From July 2010 through March 2011, defendant Richard owned and operated M2 Financial Services, a tax return preparation business located in Fort Pierce, Florida. At these businesses, Richard met with taxpayers and prepared tax returns as either an employee of JB&L Tax Services, Inc., or as an owner and operator of M2 Financial Services. Richard then assisted in the preparation and presentation to the IRS of income tax returns, knowing that these returns contained materially false information. Specifically, Richard filed false tax returns for others which included false information regarding wages, business losses, dependents, education credits and child care expenses. Richard also filed false personal tax returns (Forms 1040) for tax years 2009 and 2010 which included false information regarding employer, wages, business expenses, and personal deductions.
Mr. Ferrer commended the investigative efforts of IRS-CI. 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.
Miami Pharmacy Owner Sentenced to 14 Years in Prison in $23 Million Health Care Fraud SchemeRead the Press Release
A co-owner and operator of three Miami discount pharmacies was sentenced today to 168 months in prison for his role in a health care fraud scheme that submitted more than $23 million in false claims to Medicare.
The sentence was announced by U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Assistant Attorney General Lanny A. Breuer 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.
Jose Carlos Morales, 55, of Miami, was sentenced by U.S. District Judge Joan A. Lenard in the Southern District of Florida. In addition to his prison term, Morales was sentenced to serve three years of supervised release and to pay a $100,000 fine. A hearing to determine the amount of restitution Morales will pay has been scheduled for April 29, 2013.
On Dec. 6, 2012, Morales pleaded guilty in the Southern District of Florida to one count of conspiracy to commit health care fraud and one count of conspiracy to defraud the United States and pay illegal health care kickbacks.
According to court documents, Morales was the co-owner of Pharmovisa Inc. and PharmovisaMD Inc., which operated a total of three pharmacies in Miami. Morales paid illegal health care kickbacks to co-conspirators in return for a stream of beneficiary information to be used to submit claims to Medicare and Medicaid. The beneficiaries who were referred to the pharmacies in exchange for kickback payments resided at assisted living facilities (ALFs) located in Miami. Morales and his alleged co-conspirators also paid illegal health care kickbacks to physicians in exchange for prescription referrals, which the pharmacies ultimately billed to Medicare.
Court documents also reveal that beginning in approximately 2007, drivers working for Morales’ pharmacies, at his direction, delivered “bingo cards” containing pop out medications to ALFs located throughout the Southern District of Florida. Morales instructed the drivers to pick up any unused “bingo cards” so that Morales pharmacy personnel could put the medications back into pill bottles. Unused and partially used medications were eventually re-billed to Medicare and Medicaid, and a majority of the previously submitted claims to Medicare and Medicaid were never reversed. Morales also instructed Morales pharmacy personnel to place unused and partially used medications into bottles to be sold directly to the general public from the “community” pharmacy shelves.
Morales and his alleged co-conspirators also engaged in sham financial transactions to facilitate and conceal the fraud schemes and the flow of fraud proceeds, according to court documents. In most instances, the sham transactions involved shell entities owned and/or controlled by Morales or his alleged co-conspirators.
According to court documents, Morales and his co-conspirators submitted and caused to be submitted approximately $23,367,755 in false and fraudulent claims to the Medicare and Florida Medicaid programs.
The case is being prosecuted by Trial Attorney Allan J. Medina and Special Trial Attorney William Parente of the Criminal Division’s Fraud Section. 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.
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.
Fort Pierce Financial Manager and Six Other St. Lucie County Residents Sentenced in $200,000 Mail Fraud Embezzlement SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, and Sean Baldwin, Chief, Fort Pierce Police Department (FPPD), announce the sentencing of Erica Gilmore-Grier, 35, of Fort Pierce, for embezzling more than $200,000 from her former employer, Policy Studies, Inc. (PSI), while working as a financial manager for the PSI Call Center in Fort Pierce, Florida. Margo Nickerson, 36, of Fort Pierce, Bridgette Galarza, 31, of Port St. Lucie, Chelsea Durham, 40, of Port St. Lucie, Jessica Harris, 22, of Fort Pierce, Jamile Williams, 34, of Fort Pierce and Venus Holloman, 26, of Fort Pierce, were also sentenced for their roles in the scheme. All of the defendants are St. Lucie County residents.
Gilmore-Grier was sentenced by the U.S. District Judge K. Michael Moore to 33 months’ imprisonment; Nickerson was sentenced to 30 months’ imprisonment; Harris was sentenced to 24 months’ imprisonment; Holloman was sentenced to 20 months’ imprisonment; Galarza was sentenced to 8 months’ imprisonment; Williams was sentenced to 4 months’ imprisonment; and Durham was sentenced to 4 months’ imprisonment and 4 months’ home detention. All of the defendants will be on supervised release after incarceration, and have been ordered to pay restitution.
From October 2008 to October 2011, PSI was a management company supporting federal and state governments in administering health and human services programs, such as health insurance for low income children, across the United States. One public program administered by PSI was Georgia PeachCare for Kids (GAPC), a children’s health insurance program providing affordable healthcare for children who are Georgia residents and who live in low-income households. PSI’s Fort Pierce Call Center administered the GAPC program. Gilmore-Grier worked as Finance Team Lead at PSI’s Fort Pierce Call Center. Gilmore-Grier was responsible for overseeing the resolution of financial issues on GAPC customer accounts and issuing refunds when customers overpaid their premiums.
From October 2008 to October 2011, Gilmore-Grier authorized fraudulent refund checks for her co-defendants and others, who were not GAPC clients and not entitled to refunds, by claiming that they were legitimate GAPC clients who had inadvertently overpaid their premiums. Based on Gilmore-Grier’s requests, PSI’s main office in Denver, Colorado, issued more than 64 checks to Gilmore-Grier’s friends and family throughout St. Lucie County. Holloman, Nickerson, Galarza, Durham, Harris and Williams were among the individuals who received and cashed checks and split the proceeds with Gilmore-Grier. Gilmore-Grier and others stole approximately $213,147.56 from PSI and GAPC through this scheme.
U.S. Attorney Wifredo Ferrer commended the investigative efforts of the Secret Service and the Fort Pierce Police Department. This case is being prosecuted by Assistant U.S. Attorney Shaniek Maynard.
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.
Coral Springs Firefighter Pleads Guilty to Armed Drug TraffickingRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Division, announced that Santiago Gonzalez, of Coral Springs, Florida, pled guilty today to one count of attempted distribution of five kilograms or more of cocaine and one count of possession of a firearm in furtherance of a drug trafficking crime. Sentencing for Gonzalez, a former firefighter, has been scheduled for May 7, 2013 at 10:00 a.m. At sentencing, Gonzalez faces a maximum possible statutory penalty of up to life in prison for these charges.
As set forth in the plea agreement, law enforcement began investigating Gonzalez in August, 2012 about Gonzalez/s alleged participation in previous armed kidnappings and robberies. During the investigation, Gonzalez met with a confidential informant who was purporting to be a drug trafficker. At this meeting, Gonzalez offered to provide protective services for future drug transactions. Thereafter, Gonzalez provided “armed protection” on four different occasions: September 6, 2012, October 12, 2012, December 11, 2012, and January 24, 2013. After completing each transaction, Gonzalez was paid cash for his services.
Mr. Ferrer thanked the investigative efforts of ATF. He also thanked the Broward Sheriff’s Office, the Florida Department of Law Enforcement, the North Miami Beach Police Department, the Coral Springs Police Department, and the Metro Broward HIDTA Task Force. This case is being prosecuted by Assistant U.S. Attorney Courtney L. Coker.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Three Defendants Plead Guilty in $14 Million Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Paula Reid, Special Agent in Charge, U.S. Secret Service, Matthew Boyd, Chief, Miami Gardens Police Department, and Larry Gomer, Chief, North Miami Beach Police Department, announce that defendants Serge St-Vil, 61, of Miami, Muller Pierre, 62, of North Miami Beach, and Finshley Fanor, 34, of Lauderhill, pled guilty today for their participation in a stolen identity tax refund scheme that resulted in the submission of approximately $14 million in fraudulent refund claims.
St-Vil pled guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Sentencing for St-Vil is scheduled for May 17, 2013 at 8:30 a.m. before U.S. District Judge Robert N. Scola. At sentencing, the defendant faces a maximum possible statutory term of imprisonment of up to 22 years.
Pierre pled guilty to wire fraud, in violation of Title 18, United States Code, Section 1343. Sentencing for Pierre is scheduled for May 21, 2013 at 8:30 a.m. before Judge Scola. At sentencing, the defendant faces a maximum possible statutory term of imprisonment of up to 20 years.
Fanor pled guilty to conspiracy to defraud the government with respect to claims in violation of Title 18, United States Code, Section 286. Sentencing for Fanor is scheduled for May 22, 2013 at 8:30 a.m. before Judge Scola. At sentencing, the defendant faces a maximum possible statutory term of imprisonment of up to 10 years.
According to the plea documents filed with the court, in 2010, the defendants were involved in a scheme to file fraudulent and unauthorized tax returns seeking refunds. During the course of the scheme, more than 5,000 fraudulent and unauthorized returns were submitted to the IRS seeking over $14 million in refunds. Nearly all of these returns were submitted in the names of deceased persons. St-Vil was responsible for the filing of thousands of these returns using an Electronic Filing Identification Number obtained by Fanor.
Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to the IRS-CI, the U.S. Secret Service, the Miami Gardens Police Department, and the North Miami Beach Police Department. The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Palm Beach County Residents Arrested for Sex Trafficking of MinorsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced that defendants Dontavious M. Blake, 32, and Tara Jo Moore, 26, both of Palm Beach County, were charged in a federal criminal complaint with sex trafficking of minors. Pre-trial detention hearings for Blake and Moore are scheduled for Tuesday, February 26, 2013.
More specifically, the complaint charges Blake and Moore with sex trafficking of children and conspiracy to commit sex trafficking of children, and inducing a minor to engage in commercial sex act, in violation of Title 18, United States Code, Sections 1591, 1594 and 2422, respectively. If convicted, Blake and Moore face a maximum possible statutory sentence of up to life in prison.
This case stemmed from an investigation into the production of child pornography. According to the allegations in the complaint affidavit, a victim revealed that she had engaged in prostitution in the summer of 2011, at the age of 15. The victim stated that she had worked in hotels in the Palm Beach County area and identified Blake and Moore as her pimp and his girlfriend. Blake would post online escort advertisements, with photographs of the victim, on Backpage.com listing a phone number belonging to him. Moore would allegedly answer the calls from clients and negotiate a price for prostitution services and schedule a “date.” Once the price had been agreed upon, Blake would contact the minor and drive her to location for the “date.” At the conclusion of the date, the victim would pay a portion of the proceeds to Blake, including payment for a portion of the cost of the hotel room.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mr. Ferrer commended the investigative efforts of the FBI. The case is being prosecuted by Assistant U.S. Attorney Lothrop Morris.
A complaint is only an accusation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Attachments:
Complaint (PDF)A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Congressional Candidate Charged with Violation of the Federal Election Campaign ActRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced today that Justin Lamar Sternad, 35, was charged with having violated the Federal Election Campaign Act (Election Act) in connection with the 2012 Democratic Party primary election for Florida’s 26th Congressional District.
Defendant Sternad is expected to make his initial appearance in federal court before U.S. Magistrate Judge Alicia Otazo-Reyes on February 22, 2013 at 2:00 p.m.
The Criminal Information, filed earlier today, charges Sternad with engaging in a conspiracy to make false statements to the Federal Election Commission and to violate the contribution limits of the Federal Election Campaign Act (Count 1); making a false statement (Count 2); and accepting illegal campaign contributions (Count 3). If convicted, Sternad faces a maximum statutory term of imprisonment of up to five years and a fine up to $250,000 on each count.
U.S. Attorney Wifredo Ferrer stated, “The Election Act seeks to promote transparency in the campaign process and thereby increase accountability from our elected officials. Sternad, however, violated the Election Act and lied to conceal the true source of funds being used by his campaign. He sought to secretly provide and accept contributions in excess of the limits prescribed by law, using cash and third party checks to conceal the source and amount of contributions made to his campaign. He then compounded his crimes by filing false campaign reports to cover his trail. We are committed to promoting transparency and accountability from our elected officials and from those running for office. Our citizens deserve no less.”
“For citizens to have confidence in their government, they must be certain that their elected officials are fairly elected. We will not tolerate people who violate federal election law,” said Michael B. Steinbach, Special Agent in Charge of FBI Miami. “The South Florida community can be assured that public corruption will remain a top priority for the FBI.”
Mr. Ferrer commended the investigative efforts of the agents of the FBI for their hard work in this matter. The case is being prosecuted by Senior Litigation Counsel Thomas J. Mulvihill and Richard C. Pilger of the Public Integrity Section of the U.S. Department of Justice.
An Information is only an accusation and a defendant is presumed innocent until proven guilty.
Attachments:
Information (PDF)A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Broward Man Sentenced to 159 Months for Stealing More Than 23,000 Identities in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI) in Minneapolis, José A. Gonzalez, Special Agent in Charge, IRS-CI, Miami Field Office, Larry Gomer, Chief, North Miami Beach Police Department, and Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), announced that defendant Rodney Saintfleur, 28, was sentenced today to 159 months in prison, to be followed by three years of supervised release. Saintfleur pled guilty on November 27, 2012 to one count of conspiracy to submit fraudulent claims to the government, one count of access device fraud, and one count of aggravated identity theft.
According to the Information, the defendant and co-conspirators agreed on a plan to use stolen personal identifying information of others to file fraudulent tax returns seeking refunds. The defendant obtained documents that listed tens of thousands of names with corresponding dates of birth.
According to the factual proffer and statements made at sentencing, the defendant searched an online proprietary database and fraudulently obtained the Social Security numbers of more than 23,000 people whose names and dates of birth appeared on the documents in 2010 and 2011. The defendant provided these Social Security numbers to co-conspirators for an identity theft tax refund fraud scheme. Co-conspirators then filed fraudulent and unauthorized tax returns seeking refunds using the stolen personal identifying information provided by the defendant.
Mr. Ferrer commended the investigative efforts of IRS-CI, the North Miami Beach Police Department, and the Broward Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami Man Charged in $12 Million Identity Theft Tax Refund Fraud Scheme Involving Thousands of Fraudulently Obtained U.S. Treasury ChecksRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Paula A. Reid, Special Agent in Charge, U.S. Secret Service (USSS), Antonio J. Gomez, Acting Inspector in Charge, U.S. Postal Inspection Service (USPIS), and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced the filing of a criminal complaint charging defendant Frankie Jermaine Anderson, 40, of Miami, with conspiracy to defraud the United States, in violation of Title 18, United States Code, Section 371, theft of government money or property, in violation of Title 18, United States Code, Section 641, and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to the affidavit filed in support of the criminal complaint, from about February through June 2012, a check casher in Perrine, Florida (J&S Taxes) cashed thousands of fraudulently obtained U.S. income tax refund checks worth over $12 million. The defendant allegedly provided the vast majority of these fraudulently obtained checks to the check casher for cashing. Proceeds from this fraud were then used by the defendant to purchase two separate homes—one for the defendant and one for the defendant’s mother (each valued at approximately $250,000). In addition, the defendant used the proceeds from the fraud to purchase a 2012 BMW 530i, a Porsche Cayenne, a 2012 Porsche Panamera, a 212 Cadillac CTS, a 2012 Jaguar XF, a 2013 BMW X6, a 2012 Jaguar XJ, and a 2013 Bentley GT Coupe. According to State of Florida employment records, the defendant has been unemployed since 2003.
According to the affidavit, on November 28, 2012, the defendant was arrested in possession of 35 U.S. Treasury checks totaling approximately $119,165.60, including at least one check issued in the name of a deceased person.
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 Baltodano -Sheehan and Elijah Levitt.
A criminal complaint is only an accusation and the defendant is presumed innocent until proven guilty.
Attachments:
Complaint (PDF)A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Thirty People Indicted in Massive Florida-Arizona Drug ConspiracyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Antonio J. Gomez, Acting Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Field Office, and Ric L. Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, announce the arrests of 30 individuals engaged in a massive drug conspiracy that trafficked drugs from Arizona to Florida. The defendants were arrested earlier today and are expected to make their initial appearances today in federal court before U.S. Magistrate Judge Dave Lee Brannon in West Palm Beach at 1:00 p.m.
Charged in the 12-count indictment are George Evans Bivins, Jr., a/k/a “Ziggy,” 30, of West Palm Beach, Antonio Markeith Beverly, a/k/a “Tony,” 29, of West Palm Beach, Daniel Emmanuel Torrez, 31, of Tucson, Arizona, Lavaris Reshard Bivins, a/k/a “Varis,” 22, of West Palm Beach, William Alvarenga, a/k/a “Chico,” 19, of Boynton Beach, Jessica Marie Arvizu, 30, of Tucson, Arizona, Michael Maxwell Barkley, a/k/a “Tater,” 38, of Lake Worth, Jerrick David Bartee, 30, of West Palm Beach, Kirk Douglas Bivins, a/k/a “Kirky,” 38, of Riviera Beach, Demetri Pernell Cobb, a/k/a “Meechi,” 23, of Lake Worth, Darren Duane Donnally, 39, of Palm Springs, Quatavious Carnell George, a/k/a “Jelly Boy,” 26, of Riviera Beach, Wellington Timothy Glinton, a/k/a “Timmy,” 20, of Lake Worth, Javaris Reshad Bartelmy, 24, of Boynton Beach, Ernest Andrew Holiday, a/k/a “Bam,” 30, of Riviera Beach, Jean Innocent, a/k/a “Barko,” 20, of Lake Worth, Demetrice Lemane Jones, 37, of Riviera Beach, Dominic Perry Lamare, 33, of Port St. Lucie, Patrick Jarrod Lowe, 24, of Lantana, Richard John Mercy, 30, of North Palm Beach, Frank Davis Moore, Jr., a/k/a “Bow Head,” “Bodeen,” 33, of Royal Palm Beach, Evens Pierre Louis, a/k/a “E-Bo,” 27, of Palm Springs, Theresa Lashai Razz, 28, of West Palm Beach, Lori Beth Mae Saccoman, 50, of West Palm Beach, Jeannot Saintelus, a/k/a “Jit,” 23, of Lake Worth, Calvin Leon Sirmans, Jr., a/k/a “CJ,” 28, of Lake Worth, Jamie Toby, 24, of Lake Worth, Monica Deloris Toby, 47, of Lantana, Eric Lanard Williams, a/k/a “Baby Boy,” 29, of Lantana, and David Lendell White, a/k/a “Popper,” 25, of Lake Worth.
U.S. Attorney Wifredo Ferrer stated, “Today, the streets of Lake Worth and the surrounding areas are just a little safer, thanks to the concerted efforts of the FBI, the U.S. Postal Inspection Service, and the Palm Beach Sheriff’s Office. Thanks to their hard work, we have removed more than two dozen drug traffickers from our streets.”
“Through the combined efforts of local and federal law enforcement, this massive drug trafficking conspiracy is out of business,” said Michael B. Steinbach, Special Agent in Charge of FBI Miami. “Drugs and the violent gangs that profit from them have a devastating effect on our communities and we will continue to work with our partners to make South Florida a safer place.”
Antonio J. Gomez, Acting Inspector in Charge for the U.S. Postal Inspection Service stated, “The U.S. Postal Inspection Service is proud to stand shoulder-to-shoulder with the U.S. Attorney’s Office and all of our law enforcement partners in making our communities safer by working to eradicate narcotics from the U.S. Mail stream.”
More specifically, the indictment, filed on February 7, 2013 and unsealed today, charges the defendants with conspiracy to possess with intent to distribute cocaine base and/or cocaine hydrochloride, and possession with intent to distribute cocaine base and/or cocaine hydrochloride, in violation of Title 21, United States Code, Sections 841(a)(1), and 846. If convicted, the defendants each face a mandatory-minimum sentence of 10 years in prison up to a statutory maximum term of life in prison.
According to statements made in court, this conspiracy involved multiple kilograms of cocaine hydrochloride that were shipped from Tucson, Arizona, to Palm Beach County for sale and distribution as both cocaine hydrochloride and cocaine base. Much of the cocaine was sold in and around the streets of Lake Worth, Florida.
Mr. Ferrer commended the investigative efforts of the FBI, the Palm Beach County Sheriff’s Office, and the U.S. Postal Inspection Service. This case is being prosecuted by Assistant U.S. Attorneys Rinku Tribuiani and Robert Waters.
An indictment is only an accusation and the defendants are presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Three More Defendants Plead Guilty in Murder/Marijuana Grow House ConspiracyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and J.D. Patterson, Director, Miami-Dade Police Department, announce that defendants Derrick Santiesteban, Yadira Santiesteban, and Raul Fabian Ramirez, Jr., all of Miami, pled guilty today before Magistrate Judge Edwin G. Torres. Sentencing for the defendants is scheduled for April 25, 2013 at 2:00 p.m. before U.S. District Judge K. Michael Moore.
Derrick Santiesteban pled guilty to Counts 1, 2 and 4 of the indictment. Count 1 charged him with conspiracy to possess one thousand (1,000) or more marijuana plants with the intent to distribute, in violation of Title 21, United States Code Section 841(a)(1), all in violation of Title 21, United States Code Section 846; Count 2 charged him with conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h); and Count 4, charged him with kidnapping, resulting in death, in violation of Title 18, United States Code, Section 1201(a)(1) and 2. 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; a maximum term of 20 years in prison on Count 2; and a mandatory term of life in prison for Count 4.
Yadira Santiesteban pled guilty to one count of conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956 (h). At sentencing, she faces a maximum possible statutory sentence of up to 20 years in prison.
Raul Fabian Ramirez 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, in violation of Title 21, United States Code Section 841(a)(1), all in violation of Title 21, United States Code Section 846. 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.
On February 4, 2013, Juan Felipe Castañeda, of Miami, pled guilty to Counts 1 and 3 of the indictment, charging him with conspiracy to possess with the intent to distribute marijuana, in violation of Title 21, U.S.C. Section 846; and with conspiracy to commit kidnapping, in violation of Title 18, U.S.C. Section 1201 (c). Sentencing is scheduled for April 25, 2013. At sentencing, the defendant faces a minimum imprisonment of 10 years and a maximum possible term of life in prison for Count 1, and a maximum term of up to life in prison for Count 3.
The other defendants charged in this case are Gilberto Santiesteban, Jr., of Miami, Norge Manduley, of Hialeah, Alexander Santiesteban, of Miami, Gilberto Santiesteban, Sr., of Miami, German Silvestro, of Miami, David Silva, of Miami, Francisco Javier Diaz, of Miami-Dade, Alejandro Pimentel, of Miami, Dayana Castellanos, of Miami, and Estrella J. Mijares, of Miami, Darvis Santiesteban, of Miami, and John Villalonga, of Miami-Dade, and are scheduled to go to trial on April 1, 2013.
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., Yadira Santiesteban, 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.
Mr. Ferrer commended the investigative efforts of the FBI, Miami-Dade Police Department, and IRS-CI. 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.
Man Sentenced to 33 Months in Prison and 30 Years of Supervised Release for Failing to Register as A Sex OffenderRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Neil DeSousa, United States Marshal, and Ric L. Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, announced that Ernesto Cedillo, 25, of Palm Springs, FL, was sentenced by U.S. District Judge Kenneth Ryskamp to 33 months in prison, to be followed by 30 years of supervised release following his guilty plea to the charge of failing to register under the Sex Offender Registration and Notification Act (SORNA), in violation of Title 18, U.S.C. § 2250(a).
According to court filings, Cedillo was convicted in Indiana for sexually molesting a 13-year old girl in July 2005. Cedillo pled guilty and was convicted and sentenced in February 2007 to six years in prison in Indiana for that charge, with four years of the sentence suspended. He was released in Indiana and then was found here in Florida in 2008 and sent back to Indiana because he failed to register as a sex offender in either state, pursuant to SORNA. Based upon the Indiana failure to register Cedillo was jailed in Indiana again. He was released in June 2011 and sometime after that he absconded. Indiana authorities did not know his whereabouts and he failed to register under SORNA in Indiana again.
Sometime between June 2011 and September of 2012, Cedillo relocated to Palm Beach County and again failed to register with local police and was arrested by the Palm Beach County Sheriff's Office on September 6, 2012. Following his arrest, Cedillo admitted to having fled Indiana without registering because he knew there were warrants out for him up there. He also admitted traveling to Florida and failing to register here, even though he knew he was required to do so under the law.
Mr. Ferrer commended the U.S. Marshal Service and the Palm Beach County Sheriff’s Office for their work on the case. This case is being prosecuted by Assistant U.S. Attorney Lauren Jorgensen.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Local Union President and Former Executive Assistant Charged with Stealing Money from Union and Obstruction of JusticeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Richard L. Walker, Special Agent in Charge, U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, announced the unsealing of a 17-count indictment and the arrests of defendants Darryl Brice Payne, a/k/a Darryl “Mike D,” Payne, 47, of Sunrise, and Tianni Latrice Brown, f/k/a Tianni Latrice Wade, 31, of Lauderhill, Florida.
Payne and Brown are both charged in Count 1 with conspiracy to steal money, funds, property, and other assets of the International Longshoremen’s Association, AFL-CIO, Local Union No. 1526 (“ILA Local 1526”) in Fort Lauderdale, from March 2008 through August 2009. During this time, Payne was President of ILA Local 1526 and Brown was Payne’s Executive Assistant. Payne is also charged with ten counts (Counts 2-11) of theft of labor union assets, in violation of Title 29, United States Code, Section 501(c); one count (Count 12) of endeavoring to influence, obstruct or impede the due administration of justice, in violation of Title 18, United States Code, Section 1503; three counts of mail fraud (Counts 14-16), in violation of Title 18, United States Code, Section 1341; and making false statements (Count 17) in relation to a document required by the Employee Retirement Income Security Act of 1974 (“ERISA”) to be kept as part of an employee pension benefit plan, in violation of Title 18, United States Code, Section 1027. Brown is also charged with eight counts of theft of labor union assets (Counts 2-9), endeavoring to influence, obstruct or impede the due administration of justice (Count 12), and making false statements to Special Agents of the U.S. Department of Labor, Office of Labor Racketeering and Fraud Investigations (Count 13), in violation of Title 18, United States Code, Section 1001.
According to the indictment, Payne and Brown prepared and used false and altered documents to deceive union officials and obtain union funds purportedly to pay for legitimate assets, goods, services and travel expenses for the use of the union. In fact, however, those expenses covered the personal expenses of the defendants and others.
The indictment also alleges that Payne and Brown corruptly endeavored to obstruct he grand jury investigation by causing the production of false documents in response to a federal grand jury subpoena, and by withholding and failing to produce other documents that were required to be produced in response to a federal grand jury subpoena. The indictment also alleges that Brown made false statements to Special Agents of the Department of Labor’s Office of Labor Racketeering and Fraud Investigations, who were conducting the investigation.
Lastly, the indictment alleges that Payne engaged in a mail fraud scheme to deceive officials of the ILA Pension Fund by presenting a falsely altered U.S. Department of Labor document that made it appear as if he had received workers’ compensation for approximately four years (1991-1994). In fact, however, Payne had received workers’ compensation payments for only about four months in 1991. By using the falsely altered document, Payne was able to obtain one additional year credited to his time as a beneficiary of the ILA Pension Fund, which would enable him to obtain additional money to which he was not entitled upon his retirement. The indictment alleges that Payne’s use of the same altered document violated another statute prohibiting making false statements in relation to a document required by ERISA to be kept as part of the records of an employee pension benefit plan.
If convicted, the defendants face the following possible maximum statutory sentences: Counts 1-11, 13, and 17: up to five years in prison; Count 12: up to 10 years in prison; and Counts 14-16: up to 20 years in prison.
Mr. Ferrer commended the investigative efforts of the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations. The case is being prosecuted by Assistant U.S. Attorney William T. Shockley.
An indictment is merely an accusation and a defendant is presumed innocent unless 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.