Southern District of Florida
Press releases recorded for this federal judicial district.
Virginia Gardens Man Sentenced to 37 Months in Prison for Dealing in Firearms Without A LicenseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Hugo Barrera, Special Agent in Charge, Miami Field Division, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Scott Israel, Sheriff, Broward County Sheriff’s Office (BSO), and Ric L. Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO), announce that Jose Antonio Quintana, 55, of Virginia Gardens, Florida, was sentenced today by U.S. District Judge Kenneth L. Ryskamp to 37 months in prison, to be followed by 3 years of supervised released, for dealing in firearms without a federal firearms license, in violation of Title 18, Untied States Code, Sections 922(a)(1)(A).
As part of the sentence, the Court ordered the forfeiture of 96 rifles, 79 shotguns, 418 handguns and approximately 25,889 rounds of ammunition that were seized from Quintana as part of the investigation, resulting in one of the largest firearms forfeitures from one individual in the Southern District of Florida.
According to the criminal complaint, superseding information, and stipulated factual basis filed in the case, Quintana attended numerous gun shows across the State Florida between November 2008 and July 7, 2012. At each gun show, Quintana sold firearms as purported “private sales.” This practice allowed Quintana to benefit from a cash business without the expense of operating a storefront, reporting his activity to ATF, completing any ATF paperwork (ATF Form 4473), and without conducting the required background checks of any customers.
During this period, undercover ATF agents purchased eleven (11) firearms, valued at $6,115.00, from Quintana at various gun shows. In one of the undercover purchases, Quintana claimed that the law allowed him to privately sell a reasonable unspecified quantity of firearms. In the recorded conversation, Quintana stated, “Let us say, twelve, twenty four, thirty six, fifty, firearms per year. Let us say, reasonable. . . I surpassed that a long time ago.”
Mr. Ferrer commended the investigative efforts of ATF, BSO and PBSO. Mr. Ferrer also thanked the Miami-Dade Police Department, the Miami Beach Police Department, the City of Miami Police Department, and the Virginia Gardens Police Department. The case was prosecuted by Assistant U.S. Attorney Adam 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.
Members of Rhino Smuggling Ring Arrested and ChargedRead the Press Release
Chinese Business Executive Arrested After Allegedly Offering Bribe
Three people have been charged this week in Newark, Miami and New York City with wildlife smuggling and related charges for their alleged roles in an international rhino horn smuggling ring, the Department of Justice announced today. The arrests and charges are the result of “Operation Crash”, a nationwide effort led by the U.S. Fish & Wildlife Service (FWS) and the Justice Department to investigate and prosecute those involved in the black market trade of endangered rhinoceros horns.
Federal grand juries in Newark, N.J., and Miami have indicted Zhifei Li for international smuggling of rhinoceros horns. Shusen Wei, a 44 year old Chinese business executive and an associate of Li, has also been charged with offering to bribe a federal agent in the Li case. Qing Wang was charged today in a related criminal complaint in federal court in the Southern District of New York for his role in smuggling libation cups carved from rhinoceros horns from New York to Li via Hong Kong.
According to the indictment filed in Newark on Feb. 11, 2013, Li, a 28 year-old Chinese national, conspired to smuggle more than 20 raw rhinoceros horns from the United States to Hong Kong in 2011 and 2012. Li wired hundreds of thousands of dollars over at least a year to a co-conspirator in the United States to fund purchases of rhinoceros horns. Li’s co-conspirator smuggled the rhino horns in porcelain vases and mailed them to Hong Kong and China to a person other than Li, in an effort to evade detection by U.S. officials. Li and his co-conspirator bought many of the horns in New Jersey from other members of the conspiracy. Li was arrested in January on charges previously filed in New Jersey.
Li also was indicted on Feb. 12, 2013, in Miami on wildlife trafficking and smuggling charges. According to court records and government statements made in court, shortly after arriving in Florida in January 2013 for the Original Miami Beach Antique Show, Li purchased two endangered black rhinoceros horns from an undercover U.S. Fish & Wildlife Service agent in a Miami Beach hotel room for $59,000. Li asked if the undercover officer could procure additional rhinoceros horns and mail them to his company in Hong Kong.
Also arrested on a related criminal complaint filed in Miami was Shusen Wei, a Chinese business executive, who also was attending the antique show and sharing a hotel room with Li. According to documents filed in court in Miami, Wei was interviewed by agents after Li’s arrest and admitted to knowing about Li’s smuggling activities and to purchasing rhinoceros carvings from Li that apparently had been purchased in and smuggled from the United States. After being served with a grand jury subpoena to appear in New Jersey, Wei left Miami for New York en route to China. Prior to leaving Miami, Wei allegedly asked an undercover informant to invite a FWS special agent out to dinner in Miami and offer her money to assist Li. After a series of recorded phone calls and text messages, Wei was arrested as he attempted to board a flight bound for China at JFK International Airport in New York on Saturday, Feb. 3, 2013, on charges of bribing a federal official. According to documents filed in court, Wei proposed that the undercover informant offer the agent as much as $10,000.
Qing Wang is scheduled to appear in court today to face charges in a criminal complaint in the Southern District of New York for his role in smuggling libation cups carved from rhinoceros horns from New York to Li in Hong Kong. According to documents unsealed today, Wang was one of several that purchased items in the United States for Li. In China, there is a tradition dating back centuries of intricately carved rhinoceros horn cups . Drinking from such a cup was believed to bring good health and such carvings are highly prized by collectors. Wang is alleged to have been smuggling rhinoceros horn cups as well as ivory carvings to Li in Hong Kong.
An indictment or criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
Rhinoceros are an herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under United States and international law, and all black rhinoceros species are endangered. Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by more than 175 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets. Nevertheless, the demand for rhinoceros horn and black market prices have skyrocketed in recent years due to the value that some cultures have placed on ornamental carvings, good luck charms or alleged medicinal purposes, leading to a decimation of the global rhinoceros population. As a result, rhino populations have declined by more than 90 percent since 1970. South Africa, for example, has witnessed a rapid escalation in poaching of live animals, rising from 13 in 2007 to more than 618 in 2012.
Operation Crash (named for the term used to describe a herd of rhinoceros) is an ongoing multi-agency effort to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns. The investigation resulting in the charges announced today has been conducted by the Special Investigations Unit of the FWS Office of Law Enforcement, with assistance from the Department of Homeland Security. The Li case is being prosecuted by the U.S. Attorney’s Office of the District of New Jersey by Assistant U.S. Attorney Kathleen O’Leary. The Wei case is being prosecuted by Assistant U.S. Attorney Tom Watts-FitzGerald in the Southern District of Florida. The Wang case is being prosecuted by Assistant U.S. Attorney Janis Echenberg in the U.S. Attorney’s Office of the Southern District of New York. Senior Trial Attorney Richard A. Udell of the Environmental Crimes Section of the U.S. Department of Justice is assisting in and coordinating all of the prosecutions. Additional support has been provided by the U.S. Attorney’s Office in the Eastern District of New York.
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.
Guilty Plea Entered by Second Contractor Charged with Paying Bribes to Director of Traffic EngineeringRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Marlies T. Gonzalez, Special Agent in Charge, U.S. Department of Transportation, Office of Inspector General, announced that Anthoneel Allen, 40, of Wellington, pled guilty today to conspiracy to commit bribery in programs receiving federal funds, highway fraud, mail fraud, extortion under color of official right, tax fraud, and Disadvantaged Business Enterprise fraud, all in violation of Title 18, United States Code, Section 371. At sentencing, the defendant faces up to five years imprisonment, three years of supervised release and a fine of up to $250,000. Sentencing has been scheduled for April 26, 2013, at 1:30 p.m.
Allen was charged, along with James Hashim, 50, of Plantation, in connection with a scheme wherein they paid bribes to Jihad El Eid, who was the Director of Traffic Engineering in the Division of Public Works in Broward County. Hashim previously pled guilty on February 1, 2013.
According to the documents filed with the court, Allen owned Southeast Underground Utilities Corp., (“SUU”), in Plantation, Florida. SUU installed, repaired and maintained street lights and traffic signals. Prior to 2005, SUU did not have any contracts with the Broward County government or any Broward County municipality. In or about 2005, Allen hired defendant Hashim to become SUU’s Vice President. Hashim worked as an estimator and helped SUU obtain government contracts. Allen admitted that beginning in 2006 through 2010, he and Hashim provided to El Eid more than $150,000 in cash; a 2003 Ford Taurus; and a job at SUU for El Eid’s relative, Wael El Eid, in order to curry favor with Jihad El Eid. In return, El Eid helped SUU obtain work on significant multi-million dollar projects initiated by the Broward County Traffic Engineering Division, including: the Signalization and Street Light Installation (SSLI) contract, a contract to make installations and do repair work of the street lights and traffic equipment in Broward County; the Advanced Transportation Management System (ATMS Project), a federally-funded project, which required the contractor to install an integrated traffic control system which entailed laying underground cable and conduit in order to synchronize traffic flow within Broward County; and the Video Detection Contract (VDC), which required the contractor to install video detection cameras in various intersections in Broward County in order to improve traffic flow. El Eid also assisted SUU concerning billing, specification and inspection matters that resulted in SUU being overpaid by at least $3,000,000.
Furthermore, according to court documents, Allen also admitted that he and Hashim conspired to evade paying federal income and employment taxes on bonuses and payments made by SUU related to the purchase of Hashim’s $1.25 million house in Plantation. Allen also admitted that he filed a fraudulent application on behalf of SUU to have SUU certified as a Disadvantaged Business Enterprise (DBE), which resulted in SUU being awarded -- directly or as a subcontractor -- approximately 25 contracts from Broward County and other state, county and local governments in Florida based on its fraudulently obtained DBE status, which entitled SUU to receive in excess of $10,000,000 in government contracts.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, and the U.S. Department of Transportation, Office of Inspector General, in connection with the investigation of this matter. Mr. Ferrer would also like to recognize the assistance provided by the Broward County Office of the County Attorney, the Broward County Professional Standards Section, the Federal Highway Administration, the Florida Department of Transportation, and the employees of the Broward County Traffic Engineering Division. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Consultant for the Florida Department of Transportation Pleads Guilty to Accepting A BribeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Marlies T. Gonzalez, Special Agent in Charge, U.S. Department of Transportation, Office of Inspector General, announced that defendant Ron Capobianco, Jr., 40, of Pompano Beach, pled guilty today to committing bribery in connection with programs receiving federal funds, in violation of Title 18, United States Code, Section 666. At sentencing, the defendant faces up to ten years imprisonment, three years supervised release and a $250,000 fine. Sentencing has been scheduled for May 7, 2013, at 8:30 a.m.
According to documents filed with the court, the defendant worked as a construction engineering and inspection consultant at an engineering company, which specialized in the transportation industry. The Florida Department of Transportation (FDOT) contracted with this company to provide services, including designing, inspecting, and troubleshooting the construction of roads, signs, and traffic signals. Because of his position and expertise, the defendant was consulted as an FDOT expert on certain aspects of signalization and lighting construction, including the use of video detection cameras for traffic signalization and control.
Furthermore, according to court documents, in 2009, FDOT began a road construction project along Highway 1 in the Florida Keys -- the Marathon Key project -- which was designed to improve traffic flow. The defendant agreed to accept a bribe from a subcontractor working on this project. In May 2009, an agent of the subcontractor offered to pay the defendant a bribe if the subcontractor received at least $25,000 for the installation of the video detection equipment. The defendant agreed to the subcontractor’s $25,000 estimate for the installation of the video detection devices, thus enabling the subcontractor to make a significant profit. The subcontractor’s estimate was approved and subsequently paid by the State of Florida after the installation of the video detection equipment. In May 2009, the defendant met with an agent of the subcontractor and was paid $4,000 for his assistance to the subcontractor on this project.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, and the U.S. Department of Transportation, Office of Inspector General, in connection with the investigation of this matter. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
CEO Charged in Multi-Million Dollar Embezzlement ScamRead the Press Release
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and Kathy Fernandez Rundle, State Attorney for Miami-Dade County, jointly announced the filing of a federal and state charges against defendant Kathryn Abbate, 64, of Hollywood, Florida.
Abbate is charged by Information in the federal case with theft of money from programs receiving federal funds, in violation of Title 18, United States Code, Section 666. If convicted, Abbate faces up to 10 years imprisonment, three years of supervised release, a fine of up to $250,000, and she may be ordered to pay restitution.
In the state case, Abbate is charged by Information with one count of an organized scheme to defraud and one count of grand theft in the first degree, in violation of Florida Statutes Sections 817.034(4)(a)1 and 812.014(2)(a). If convicted, Abbate faces up to 30 years imprisonment.
U.S. Attorney Wifredo A. Ferrer said “Holding accountable those who steal from the federal government for personal profit is one of my top priorities. Kathryn Abbate, the former CEO of the Miami Beach Community Health Center, was charged today with stealing federal funds from the most vulnerable among us – the sick, the elderly and the poor. We will not relent in our efforts to charge individuals who use the health care system to line their own pockets. Our investigation remains ongoing.”
Kathy Fernandez Rundle, State Attorney for Miami-Dade County, said “There is no excuse for the theft of funds intended to heal the sick and the poor of our community. Every stolen dollar took a part of a sick person’s future. I am gratified that the State Attorney’s Office, the United States Attorney’s Office and the Miami-Dade Office Inspector General were able to develop the evidence to charge the responsible individual and to help correct an oversight system that allowed this theft to happen.”
According to the Information filed in U.S. District Court, from 2008 to 2012, Abbate was the Chief Executive Officer of the Miami Beach Community Health Center (“MBCHC”). MBCHC was a federally qualified Health Center, which is a community-based organization that provides medical care to persons regardless of ability to pay, with locations in Miami Beach and North Miami, Florida. To carry out its mission, MBCHC was funded by federal, state, and local grants, as well as private donors. MBCHC received federal funds from the U.S. Department of Health and Human Services.
Furthermore, according to the Information filed in U.S. District Court, Abbate embezzled money from MBCHC when she obtained unauthorized compensation by causing MBCHC to issue unaccrued vacation pay to her that was not approved nor authorized by the Board of Directors. Abbate also caused MBCHC to disburse millions of dollars in over eight hundred checks made payable to her for “community development.” Funds from these checks were subsequently misappropriated by Abbate. Furthermore, Abbate knowingly provided fraudulent documentation to MBCHC’s auditors which falsely indicated that one million dollars of these funds were paid to five doctors. The aggregate value of the property under the care, custody and control of MBCHC that the defendant is charged with embezzling was several million dollars.
U.S. Attorney Ferrer and State Attorney Rundle thanked the law enforcement agencies involved in this investigation, as well as MBCHC for its cooperation in the investigation. The Federal case is being prosecuted by Assistant U.S Attorneys Michael N. Berger and Patrick Sullivan. The State case is being prosecuted by Assistant State Attorneys Marie Perikles and Tim Vandergiesen.
An Information is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Palm Beach County Health Department Employee Arrested for Stealing Patient InformationRead 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 Salita St. Simon, 30, of Belle Glade, was arrested today on a charge of identity theft, in violation of Title 18, United States Code, Section 1028(a)(7). If convicted, St. Simon faces up to five years imprisonment and three years of supervised release.
According to the criminal complaint and information provided in Court, St. Simon was a senior clerk at the Palm Beach County Health Department (PBCHD) until earlier today. For approximately the last year, St. Simon obtained patient identification information, including patient names and social security numbers, from the PBCHD’s computer system and provided that information to her accomplices. These accomplices, in turn, used the information to file fraudulent tax returns seeking the patients’ refunds. Over the last year, St. Simon stole more than 2,800 patients’ information in this way.
Mr. Ferrer commended the investigative efforts of the FBI and thanked the PBCHD for its substantial assistance in investigating this matter. This case is being prosecuted by Assistant U.S. Attorney Marc Osborne.
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.
Broward County Tax Return Preparer Pleads Guilty to 76-Count Superseding IndictmentRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announced that Vladimyr Jean Baptiste, 41, of Coral Springs, pled guilty today to a 76-count superseding indictment before U.S. District Judge Robin S. Rosenbaum. Sentencing is scheduled for April 12, 2013 at 9:00 a.m.
The superseding indictment charges Baptiste with 73 counts of aiding in the preparation and presentation to the Internal Revenue Service of false U.S. Individual Income Tax Returns, Forms 1040 and 1040A, for calendar years 2007 through 2010, in violation of Title 26, U.S.C., Section 7206(2); and 3 counts of failing to file personal income tax returns for calendar years 2008 through 2010, in violation of Title 26, U.S.C., Section 7203. At sentencing, Baptiste faces up to a maximum of 3 years in prison per count of preparing false tax returns, and a maximum of 1 year in prison per count of failing to file personal income tax returns.
According to court documents, Baptiste operated Tax Plus in Pompano Beach, Florida and filed numerous false income tax returns for clients. These false returns claimed fraudulent statuses, wages, deductions, credits and expenses. Specifically, Baptiste admitted to inflating earned income credits; encouraging clients to file separately when they were married and both falsely file income taxes as head of household, thereby obtaining additional tax credits; and giving various clients a fictitious $3,650 personal tax exemption for returns and allowances to lower their taxes. Finally, Baptiste also admitted that he has not filed his personal tax returns for the past five years.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Michael Walleisa.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Investment Advisor Sentenced to Prison in $2 Million 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, announced that Paul D. Wolfe, 42, formerly of Hobe Sound, Florida, was sentenced today to 44 months’ imprisonment, to be followed by three years of supervised release. Wolfe was also ordered to pay restitution in the amount of $2,279,148.36.
Wolfe previously pled guilty to one count in an Information charging him with wire fraud in connection with an investment scheme involving approximately $2.2 million in losses.
According to court documents, Wolfe’s investment fraud scheme spanned from 2005 through 2011. Wolfe, who operated as an unlicensed investment advisor, admitted that he provided false and fraudulent investment return data to numerous investors and that he inflated investment returns. Furthermore, Wolfe diverted investor funds, in part, to pay for his personal expenses.
Mr. Ferrer commended the investigative efforts of the Federal Bureau of Investigation in this case. The case is being prosecuted by Assistant United States Attorney Stephen Carlton.
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 Registered Nurse Sentenced in Miami to 111 Months in Prison in Connection with $63 Million Mental Health Care Fraud SchemeRead the Press Release
A former registered nurse was sentenced today to serve 111 months in prison for his 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.
John Thoen, 53, of Miami, was sentenced by U.S. District Judge Cecilia M. Altonaga in the Southern District of Florida. In addition to his prison term, Thoen was sentenced to serve three years of supervised release.
On Nov. 20, 2012, Thoen pleaded guilty in the Southern District of Florida 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 (CMHC) at three locations in Miami-Dade County, Fla., and one location in Hendersonville, N.C. 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. HCSN obtained those beneficiaries in Miami by paying kickbacks to owners and operators of assisted living facilities.
According to court documents, Thoen was a licensed registered nurse in both Florida and North Carolina. In Florida, Thoen participated in the admission to HCSN of patients who were ineligible for PHP services. Thoen participated in the routine fabrication of patient medical records that were utilized to support false and fraudulent billing to government sponsored health care benefit programs, including Medicare and Medicaid.
In North Carolina, Thoen, according to court documents, routinely submitted fraudulent PHP claims for Medicare patients who were not even present at the CMHC on days PHP services were purportedly rendered. Thoen also caused the submission of fraudulent Medicare claims on days the CMHC was closed due to snow.
Thoen 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 health care fraud proceeds. According to court documents, Thoen was president of PCN.
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 nine 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. And alleged co-conspirators Alina Feas, Dana Gonzalez, Gema Pampin 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.
Broward County Man Charged with Possession with Intent to Distribute MarijuanaRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s, Homeland Security Investigations (ICE-HSI), announced that Broward County resident Jaime Sotomayor Vega, 35, of Hollywood, was charged on Friday, February 8, 2013 with possession with intent to distribute a controlled substance, in violation of Title 21, United States Code, Section 841(a)(1) and (b)(1)(B)(vii). If convicted, Vega faces a mandatory maximum term of incarceration of 5 years and a maximum term of incarceration of up to 40 years imprisonment.
According to the criminal complaint and information presented in Court, on February 7, 2013, while on patrol of the Intracoastal Waterway in Palm Beach County, a Town of Palm Beach law enforcement officer observed and approached the vessel operated by Vega. Vega advised he was fishing but had engine trouble and that he was just waiting for his friends to arrive with the vessel trailer. Due to this and other unusual circumstances, the officer became suspicious and called the Department of Homeland Security Investigations for assistance. While conducting further investigation, it was determined that the vessel was stolen.
A dog from the Palm Beach County Sheriff’s Office K-9 Unit was summoned to the scene and alerted to the presence of narcotics in the forward area of the vessel. Further investigation revealed several packages in various shapes, sizes, and colored wrappings were marijuana. The vessel contained approximately 96 packages of marijuana, weighing an estimated 667.85 pounds.
Mr. Ferrer commended the investigative efforts of ICE-HSI, the Town of Palm Beach Police Department, the Palm Beach County Sheriff’s Office, and U.S. Customs and Border Protection Marine Interdiction Agents. The case was 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.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Three Miami-Dade Residents Sentenced for Tax Refund Fraud Scheme Using Stolen Identities of Foreign NationalsRead 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), Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Antonio J. Gomez, Acting Inspector in Charge, United States Postal Inspection Service, Miami Division, announced that defendants Christian Andres Perin, 40, of Miami, Venancio Oscar Pio, 52, of Doral, and Olga Rosana Garcia, 46, of Miami, were sentenced yesterday for their participation in a tax refund scheme using stolen identities of foreign nationals. Defendant Perin was sentenced to 87 months in prison, to be followed by 3 years of supervised release. Defendants Pio and Garcia were each sentenced to 70 months in prison, to be followed by 3 years of supervised release. The defendants were also ordered to pay restitution of $1,146,745.24.
Each of the defendants previously pled guilty to one count of conspiracy to submit false claims to the IRS, in violation of Title 18, United States Code, Section 286. Defendant Perin also pled guilty to two counts of stealing tax refund checks, in violation of Title 18, United States Code, Section 641.
According to court documents, Perin obtained identity documents of foreign nationals from individuals living outside of the United States. Pio, in exchange for payment, would then send the identity documents to another individual outside the United States who would manufacture false tax claim Forms W-2, W-7, and 1040 Individual Income Tax Returns with fictitious employer information, income, and withholding amounts. Garcia and other co-conspirators mailed the fraudulent Forms W-2, W-7, and 1040 Individual Income Tax Returns to the IRS to obtain tax refunds. The tax refunds were directed into bank accounts or mailboxes controlled by Perin and Garcia. Perin and Garcia then collected the checks, deposited the checks in bank accounts, and later withdrew the money.
Mr. Ferrer commended the investigative efforts of IRS-CI, ICE-HSI, and the U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney Kurt K. Lunkenheimer.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
South Florida Brothers Sentenced for Tax EvasionRead the Press Release
Michael Farnell and James Farnell, residents of Boca Raton, Fla., were sentenced to prison terms today for income tax evasion, the Justice Department and Internal Revenue Service (IRS) announced today. Michael Farnell and James Farnell were previously indicted on April 19, 2012. Judge William P. Dimitrouleas sentenced Michael Farnell to a term of 18 months and his brother, James Farnell, was sentenced to a term of 42 months. Michael Farnell was remanded into custody. James Farnell was already in custody.
According to statements made in court and publicly filed documents, Michael Farnell and James Farnell sold stock in a privately held Florida-based technology company between 2004 and 2006 and failed to report the capital gains or pay taxes on the capital gains from those stock sales. In 2004, the U.S. Securities and Exchange Commission (SEC) filed suit against the Farnell brothers for securities violations at another company that they operated the year 2000. A majority of the stock sales at issue in this case violated the injunction from the SEC’s lawsuit.
According to public documents and statements made in court, Michael Farnell and James Farnell held their stock in this Florida-based technology company in the name of nominee trusts. The proceeds of the stock sales were deposited into bank accounts titled in the name of these nominee trusts. Neither brother filed tax returns in 2004 and 2005. James Farnell also failed to file a 2006 tax return. As part of the sentencing, Michael Farnell and James Farnell both agreed that they failed to report additional income paid to them by this Florida-based technology in 2001 through 2003.
Michael Farnell was ordered to pay restitution of $448,128 and James Farnell was ordered to pay restitution of $434,115, both to the IRS.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida and Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division, thanked IRS – Criminal Investigation for investigating the case, and also thanked the U.S. Securities and Exchange Commission and the United States Attorney’s Office for their assistance with the investigation. The case is being prosecuted by Tax Division Trial Attorney Jed Silversmith and Assistant U.S. Attorney Bertha Mitrani.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Eleven South Florida Residents Charged in $34 Million Stolen Identity Tax Refund SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, announced the unsealing of a forty-three count indictment charging defendants eleven South Florida residents with stolen identity tax refund fraud. Charged in the indictment are Henry Dorvil, aka “D,” 35, of Hollywood, Herve Wilmore Jr., 29, of Aventura, Dukens Eleazard, aka “DK,” 33, of Pembroke Pines, Marie Eleazard, aka “Fanfan,” 32, of Miami, Jesse Lamar Harrell, 26, of Miramar, Luckner St Fleur, aka “Nene,” 32, of Miami, Ruth Cartwright, aka “Princess,” 30, formerly of Plantation, Miguel Patterson, 35, of Miami, Brandon Johnson, 29, of Miami Gardens, John Similien, 24, of Plantation, and Marc Leroy Saint Juste, 26, of Tamarac. Defendants Dorvil, Harrell, Patterson, Johnson and Saint Juste made their initial appearances in federal court before U.S. Magistrate Judge Lurana S. Snow in Fort Lauderdale at 1:00pm today. Defendant Cartwright was arrested in the Northern District of Georgia and will make her initial appearance there. Defendants Wilmore, both Eleazards, St Fleur and Similien remain at large.
Specifically, each defendant is charged with one count of conspiring to defraud the Internal Revenue Service; commit wire fraud; and commit aggravated identity theft, all in violation of Title 18, U.S.C. § 371, as well as two counts of wire fraud, in violation of Title 18, U.S.C., §§ 1343 and 2. In addition, defendants Dorvil, Wilmore, Dukens Eleazard, Marie Eleazard, Harrell, St Fleur, Cartwright, Patterson, Johnson and Similien are charged with two counts of aggravated identity theft, in violation of Title 18, U.S.C. §§ 1028A(a)(1) and 2. The indictment also seeks the forfeiture of $443,449.07 seized from a bank account, a 2011 Cadillac Escalade EXT Premium Sport and 2010 Nissan Maxima registered to defendant Dukens Eleazard, a 2011 Infiniti M37 registered to defendant Marie Eleazard and a 2010 Porsche purchased by defendant Wilmore.
According to the indictment, the defendants recruited knowing participants and unknowing victims to put businesses, bank accounts and Electronic Filing Identification Numbers (EFINs) in the defendants’ names. The defendants used this information to execute their fraud scheme, including tax refund fraud. The defendants also used the personal identification information of real persons, including some deceased, to file false income tax returns with the IRS. In this way, the defendants received IRS refund checks (U.S. Treasury checks and Refund Anticipation Loan (RAL) checks) at addresses and bank accounts that they controlled. To avoid having the fraud discovered, the defendants negotiated the fraudulently obtained income tax refund checks at each other’s businesses.
According to the indictment, from about January 2009 through March 2012, the defendants filed with the IRS approximately 6,961federal income tax returns, requesting refunds totaling approximately $34,096,321. Of the 6,961 field tax returns, 2,763 used the identities of deceased individuals.
U.S. Attorney Wifredo A. Ferrer, “Stolen identity refund fraud is spreading in South Florida like an out of control wildfire. Two days ago, we announced charges against 14 individuals in six separate cases on charges of stolen identity refund fraud. Today, in just one case, we are charging another 11 individuals who used stolen identities, including that of almost 3,000 deceased persons, to file fraudulent returns seeking close to $35 million in tax refunds. My office, in conjunction with the members of the South Florida Identity Theft Tax Fraud Strike Force, will continue to prosecute these thieves, not just to punish them, but also to deter others from thinking they can get away with stealing honest taxpayers’ hard-earned refunds.”
Special Agent in Charge Jose A. Gonzalez stated, “These defendants conspired to use the personal identification information of taxpayers, including deceased individuals, to file false income tax returns with the IRS. These actions not only pose a serious problem for taxpayers, but adversely affect the integrity of our tax system. Together with our law enforcement partners we will continue to remain vigilant in identifying, investigating and prosecuting those individuals who seek to willfully defraud the United States Treasury and have a blatant disregard for the victims of their schemes.”
“Unfortunately, this is another example of the rapidly growing wave of stolen identity tax refund fraud,” said Xanthie C. Mangum, Acting Special Agent in Charge of FBI Miami Division. “The FBI continues to actively target these fraudsters who seek illicit gains by victimizing hard-working taxpayers.”
Secret Service Special Agent in Charge Paula Reid stated, “The existence of identity theft in the south Florida region is an unfortunate criminal epidemic. At any time, anyone is subject to being a victim. The investigative efforts of the law enforcement community must remain strong and unwavering as the offenders’ continuous success and harm with this stealthy crime cannot prevail.”
If convicted, the defendants face a possible maximum statutory sentence of 5 years in prison for the conspiracy count, 20 years in prison for each count of wire fraud, and 2 years consecutive in prison for each count of aggravated identity theft.
Mr. Ferrer commended the investigative efforts of IRS-CI, FBI, and USSS. Mr. Ferrer also thanked the U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement, Homeland Security Investigations, Department of Labor, and the Social Security Administration for their help on this matter. The case is being prosecuted by Assistant U.S. Attorney Neil Karadbil.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Health Care Fraud Fugitive Is Extradited from Colombia to Serve 2006 SentenceRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced the return to South Florida of fugitive Magda Luz Lavin, 55, after her arrest and extradition from Colombia. Lavin fled South Florida during a 2006 health care fraud trial, and was subsequently charged with bond jumping. She made her initial appearance in federal court earlier today on the bond jumping charge.
Lavin was the former owner of at least two HIV clinics in the Southern District of Florida. She was charged in a 25-count federal indictment with conspiracy to commit health care fraud, health care fraud, and money laundering. On September 18, 2006, after three weeks of trial before U.S. District Judge Joan A. Lenard, defendant Lavin failed to appear in Court and the Court issued a bench warrant for her arrest. Thereafter, the Court found that Lavin had fled the jurisdiction and had voluntarily waived her appearance during the remainder of the trial, and permitted the government to proceed with the trial. On September 25, 2006, the jury convicted Lavin on all counts.
On December 19, 2006, Judge Lenard sentenced Lavin in absentia to 180 months in prison, and ordered her to pay restitution in the amount of $5,037, 356. Upon her return, Lavin will begin to serve her sentence and face the bond jumping charges.
U.S. Attorney Wifredo A. Ferrer stated, “This case should serve as a wakeup call to health care fraud defendants who seek to avoid justice by fleeing to other countries: the arm of the law is long and we in law enforcement are patient. Sooner or later, we will catch you and you will be brought back to face justice.”
“In 2006, Magda Luz Lavin, a convicted health care fraudster, attempted to cheat justice by fleeing the country during her trial,” said Michael B. Steinbach, Special Agent in Charge of FBI Miami. “Thanks to the support and close cooperation of our partners including Interpol and the Colombian National Police, she is again in the United States in federal custody. Justice is served.”
According to the evidence, the defendant used two medical clinics, Alternative Day Spa, Corp., formerly in Kendall, and Alternative Treatment Programs, formerly in Key West, to defraud Medicare of more than $5 million between May 2000 and December 2002. The two clinics claimed to specialize in the treatment of HIV patients with “infusion therapy treatments.” The patients who attended the clinics were, in fact, HIV positive.
The evidence at trial showed that under Lavin’s direction, the clinics fraudulently billed Medicare for dosages of two expensive medications, Neupogen and Procrit. In fact, however, the patients received either no medication at all or minimal dosages of the medications diluted with vitamins and saline solution or dextrose solution. Lavin also paid kickbacks to patients to induce them to continue to attend the clinics.
During the trial, the evidence revealed that the defendants had caused the falsification of progress notes on “infusion therapy sheets” in the patients’ files to make it appear that the patients were receiving medications as billed to Medicare. In truth, however, patients were not receiving the medications as noted on the sheets and billed to Medicare. In addition, the government presented expert testimony that it was actually impossible for patients to receive the dosages of medications as billed to Medicare. The expert also testified that these medications were normally provided by injection, not by infusion, and that – contrary to the practice at the two clinics – Neupogen and Procrit should not be mixed together, or with saline solution.
Mr. Ferrer commended the investigative efforts of the FBI. Mr. Ferrer also thanked the U.S. Marshall’s Service for its assistance in returning this fugitive to the Southern District of Florida. The health care fraud case was prosecuted by Assistant U.S. Attorney Barbara Martinez.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Bahamian Man Pleads Guilty to Alien SmugglingRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, Noel Manheimer, Director of Marine Operations, U.S. Customs and Border Protection (CBP), Rear Admiral William D. Baumgartner, Commander, 7th Coast Guard District, and Matthew Zetts, Chief Patrol Agent, U.S. Border Patrol, announce that defendant Preston Russell, 52, of the Bahamas, pled guilty yesterday to charges of attempted alien smuggling, in violation of Title 8, United States Code, Section 1324.
Sentencing is scheduled for May 7, 2013 before U.S. District Judge Jose Martinez in Fort Pierce, Florida. At sentencing, Russell faces a minimum mandatory sentence of three years and possible maximum statutory sentence of up to 10 years in prison, on each of two counts to which he pled in the Indictment.
According to statements made in open court and documents filed in the case, on November 14, 2012, the U.S. Coast Guard intercepted a small boat cast adrift with engine trouble off the Florida coast. On the boat were Russell and eight passengers, none of whom had authorization or visas to enter the United States. The passengers told authorities how they had embarked from the Bahamas on November 13, 2012, under the direction of Russell, with the intent and expectation to illegally enter the United States near Jupiter, Florida.
Mr. Ferrer commended the investigative efforts of ICE-HSI. Mr. Ferrer also thanked the U.S. Customs and Border Protection, the U.S. Coast Guard, and the U.S. Border Patrol for their work on this investigation. The case is being prosecuted by Assistant U.S. Attorney Theodore Cooperstein.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Fourteen Defendants Charged in Separate Stolen Identity Refund SchemesRead the Press Release
Identity Theft Tax Fraud Strike Force Continues to Charge More Cases
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Richard Weber, Chief, IRS-Criminal Investigation Division (IRS-CI), and Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Office, Paula Reid, Special Agent in Charge, U.S. Secret Service, Michael B. Steinbach, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Antonio J. Gomez, Acting Inspector in Charge, U.S. Postal Inspection Service, Miami Division, Guy Fallen, Special Agent in Charge, Social Security Administration, Office of Inspector General (SSA-OIG), Kelly R. Jackson, Special Agent in Charge, IRS-CI, St. Paul Field Office, Steven Steinberg, Chief, Aventura Police Department, Larry Gomer, Chief, North Miami Beach Police Department, and J.D. Patterson, Director, Miami-Dade Police Department, announced the filing of federal charges against 14 defendants in six separate cases, in which thousands of stolen identities were used to submit millions of dollars in fraudulent tax refund claims. The cases announced today reaffirm the joint federal and local commitment, first announced in October 2012, to crack down on stolen identity refund fraud (SIRF) and its perpetrators.
According to the Federal Trade Commission, Florida had the highest rate of identity theft in the United States in 2011. Florida’s rate of 178 complaints per 100,000 residents – the highest in the United States – is dwarfed by the Miami rate of 324.1 complaints per 100,000 residents. Moreover, a September 2012 report by the U.S. Treasury Inspector General for Tax Administration (TIGTA) determined that Florida has the highest rate of stolen identity refund fraud in the United States. The City of Miami’s per capita number of false returns based on identity theft was 46 times the national average, and its per capita SIRF fraud dollar value was more than 70 times the national average.
On October 10, 2012, to combat the rising tide of SIRF scams, the U.S. Attorney’s Office, along with its federal and local law enforcement partners, established the South Florida Identity Theft Tax Fraud Strike Force (Strike Force). The members of the Strike Force include IRS-CI, U.S. Secret Service, FBI, U.S. Postal Inspection Service, City of Aventura Police Department, Miami-Dade Police Department, North Miami Beach Police Department, and the SSA-OIG.
U.S. Attorney Wifredo A. Ferrer stated, “Identity theft tax refund fraud has spread through South Florida like a virus. Since the creation of the Strike Force, the U.S. Attorney’s Office has charged 113 defendants responsible for approximately $92 million in stolen identity refund fraud. We will continue to crack down on identity thieves who are lining their pockets with our tax dollars by stealing the personal identification information of others.”
“Identity theft is a serious crime that victimizes honest taxpayers and causes immense hardship,” said Richard Weber, Chief, IRS Criminal Investigation. “Today’s actions should serve as a warning that we will continue to work with our law enforcement partners and the U.S. Attorney’s office to hold accountable those individuals who undermine our income tax system by filing false claims for refunds.”
Secret Service Special Agent in Charge Paula Reid stated, “The U.S. Secret Service will continue to work with the U.S. Attorney’s Office, Internal Revenue Service, and our law enforcement partners in the south Florida region to combat this crime that is impacting the lives of so many innocent people. Together, we will strive to identify offenders; but, most importantly, safeguard our communities against this harsh violation that is compromising the financial status of so many hardworking, honest efforts.”
“Using stolen identities to fraudulently claim income tax refunds is a growing epidemic in Florida. In the City of Miami alone, the per capita number of false returns from identity theft was 46 times the national average,” said Michael B. Steinbach, Acting Special Agent in Charge of FBI Miami. “The FBI is actively targeting these fraudsters who seek illicit gains by victimizing hard-working taxpayers.”
Antonio J. Gomez, Acting Inspector in Charge for U.S. Postal Inspection Service stated, “The U.S. Postal Inspection Service is going to continue to collaborate with the U.S. Attorney’s Office and our law enforcement partners at every level to protect the American taxpayer from this type of predatory crime and to ensure that the U.S. Postal Service is not used as a conduit for this type of criminal activity.”
Director J.D. Patterson from the Miami-Dade Police Department stated, “The continued partnership between local, state, and federal law enforcement agencies proves to be an effective measure against wide-spread crime epidemics such as; Identity theft tax refund fraud.”
The cases announced today include:
1. United States v. Nael Dawud Sammour, Case No. 13-60024-CR- Dimitrouleas
Defendant Nael Dawud Sammour was indicted on eight counts of theft of public money, in violation of 18 U.S.C. 641, and two counts of aggravated identity theft, in violation of 18 U.S.C. 1028A, for his role in attempting to negotiate 75 fraudulently obtained U.S. Treasury tax refund checks totaling $750,369.45. According to the charges, unknown individuals used stolen identification information, including the names, dates of birth, and social security numbers of unsuspecting taxpayers, to fraudulently apply for and receive tax refunds to which they were not entitled. Thereafter, defendant Sammour obtained many of these fraudulently obtained U.S. Treasury tax refund checks and transferred these checks, along with counterfeit driver’s licenses and Social Security cards, to undercover IRS agents posing as check cashers. When the defendant was arrested, law enforcement located and seized $30,128.24. This case is being prosecuted by Assistant U.S. Attorney Marc Anton.
2. United States v. Shalamar Major and Tanisha Wright, Case No. 13-60018-CR-Rosenbaum
Defendant Shalamar Major was indicted on one count of conspiracy to file false claims, in violation of 18 U.S.C. 286, and one count of unlawful disclosure of HIPAA-protected medical information, in violation of 42 U.S.C. 1320d-6(a)(3) and (b)(3). Co-defendant Tanisha Wright was indicted on one count of access device fraud, in violation of 18 U.S.C. 1029, one count of theft of mail, in violation of 18 U.S.C. 1708, one count of conspiracy to file false claims, in violation of 18 U.S.C. 286, three counts of identity theft, in violation of 18 U.S.C. 1028, three counts of theft of public money, in violation of 18 U.S.C. 641, and three counts of aggravated identity theft, in violation of 18 U.S.C. 1028A.
According to the indictment, defendant Major was a scheduler at the Boca Raton Regional Hospital in Boca Raton, Florida. As a scheduler, Major had access to the personal identification information of Boca Raton Regional Hospital patients, including their names, dates of birth, and social security numbers. In exchange for the promise of future payments, Major provided Wright with stolen personal identifying information of numerous Boca Raton Regional Hospital patients. After receiving the stolen identification information, Wright used the information to electronically file federal income tax returns in the victims’ names and to claim tax refunds to which she was not entitled. Wright directed the IRS to direct-deposit the refunds onto pre-paid reloadable debit cards that were already in her possession. Thereafter, Wright would use the debit cards to make withdrawals at local ATMs or would use the debit cards to make purchases at various local businesses. Once Wright cashed out the fraudulently obtained refund debit cards, she split the proceeds with Major. In total, 57 returns were identified as having been fraudulently filed, seeking $306,720 in federal tax refunds.
3. United States v. Christopher and Jeffrey Rosier, Case No. 13-60020-CR-Scola
Defendant Christopher Rosier was indicted on four counts of identity theft, in violation of 18 U.S.C. 1028, one count of access device fraud, in violation of 18 U.S.C. 1029, one count of aggravated identity theft, in violation of 18 U.S.C. 1028A, and one count of conspiracy to file false claims, in violation of 18 U.S.C. 286. Codefendant Jeffrey Rosier was indicted on one count of conspiracy to file false claims, in violation of 18 U.S.C. 286.
According to the indictment, defendant Christopher Rosier obtained personal identification information of numerous individuals, including their names, dates of birth, and Social Security numbers, and used this information to electronically file federal income tax returns in the victims’ names, seeking tax refunds to which he was not entitled. Defendant Christopher Rosier directed the IRS to direct-deposit the tax refunds onto pre-paid reloadable debit cards that were either already in his possession or were mailed to various local addresses that he controlled. Once the debit cards were received, defendant Jeffrey Rosier would cash the debit cards by making withdrawals at local ATMs and would split the proceeds with defendant Christopher Rosier. In total, defendant’s Rosier attempted $53,976 in fraudulent tax refunds, yet was only successfully in obtaining $36,732 in unlawful tax dollars. Additionally, law enforcement seized $8,660.00 in U.S. currency, as well as a laptop computer and a 2007 Infiniti G35 from the defendants.
4. United States v. Jahed Movlayazdanpahi, Case No. 13-20057-CR-Cooke
Defendant Jahed Movlayazdanpahi, 29, of Miramar, was charged in a three count indictment for his participation in an identity theft tax refund scheme. According to the indictment, the defendant received stolen tax refunds to which he was not entitled. The indictment charges the defendant with theft of public money and property. The case is being prosecuted by Assistant U.S. Attorney John R. Byrne.
5. United States v. Fednol Pierre and Jeanson Pata, Case No. 13-60005-CR-Cohn
Two defendants were charged in 13 count indictment for their participation in an identity theft tax refund scheme. Charged in the indictment were Fednol Pierre, 34, of Miami, and Jeanson Pata, 31, of West Palm Beach. The indictment charges Pierre with theft of government money and aggravated identity theft. It also charges Pata with theft of government money or property and false statement to a federal agency. According to the indictment, Pierre used stolen personal identification information to steal six tax refund payments, totaling $52,535.87. The indictment further alleges that Pata participated in the theft of two of these payments, totaling $14,078, and made a false statement to the United States Secret Service during the investigation. The case is being prosecuted by Assistant U.S. Attorney Benjamin Coats.
6. United States v. Douglas Michael Young, et al., Case No. 12-CR-20767-CR-Dimitrouleas
Last week, five defendants pled guilty in U.S. v. Douglas Michael Young, et al., Case. No. 12-CR-20767, for their involvement in a tax fraud conspiracy. On January 29, 2013, defendants Jeffrey Andre Young, Jr., 31, of Miami, and Joseph Bshara, 27, of Miami Shores, each pled guilty to one count of theft of government property and one count of aggravated identity theft. On that same date, Siham Benabdallah, 23, of Miami Shores, pled guilty to one count of theft of government property. Jeffrey Andre Young, Jr., Joseph Bshara, and Siham Benabdallah were involved in cashing tax refund checks from one of two tax preparation companies, either Young Professional Services, Inc., or Supreme Tax, both owned and operated by co-defendants Douglas Michael Young and Nicole Young. In total, these defendants chased checks totaling $37,749.44.
On February 1, 2013, Douglas Michael Young, a/k/a “Douglas Pierre,”41, Nicole Young, a/k/a “Nicole Pierre,” a/k/a “Nicole Pierre Smith,” 42, both of Miramar, each pled guilty to one count of conspiracy to steal government property, one count of theft of government property, and one count of aggravated identity theft. Defendant Douglas Michael Young and his wife, Nicole Young, owned and operated two tax preparation companies, Supreme Tax and Young Professional Services, Inc. The Youngs would obtain identification information from unknowing victims and use their identification information to file fraudulent tax refund claims. The Youngs charged the unknowing victims a “fee” for their purported tax preparation service, which would be deducted from their refund check. The Youngs would deposit the “fees” into bank accounts they controlled. The remainder of the refunds would be converted into personal checks that would be deposited into bank accounts controlled by co-defendants Ernest V. Charles, Joseph Bshara, and Siham Benabdallah. The case is being prosecuted by Assistant U.S. Attorney Kurt Lunkenheimer.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Patient Recruiters of Miami Home Health Company Plead Guilty in $20 Million Health Care Fraud SchemeRead the Press Release
Two patient recruiters for a Miami home health care company have pleaded guilty for their participation in a $20 million home health Medicare fraud scheme. The guilty pleas were announced today 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, Acting Special Agent-in-Charge of the FBI’s Miami Field Office; and Special Agent-in-Charge Christopher Dennis of the HHS Office of Inspector General (HHS-OIG), Office of Investigations Miami Office.
Manuel Lozano, 65, and Vladimir Jimenez, 43, pleaded guilty today and Jan. 22, 2013, respectively, to one count each of conspiracy to receive health care kickbacks. They entered their guilty pleas before U.S. District Judge Joan A. Lenard in Miami federal court.
According to the court documents, both Lozano and Jimenez were patient recruiters who worked for Serendipity Home Health, a Miami home health care agency that claimed to provide home health and therapy services to Medicare beneficiaries.
The pair admitted that from approximately April 2007 through March 2009, Lozano and Jimenez would recruit patients, for which Serendipity could bill Medicare, in exchange for kickbacks and bribes they would solicit from Serendipity’s owners and operators. Medicare was billed for home health care and therapy services on behalf of these beneficiaries that were medically unnecessary and/or not provided.
Lozano and Jimenez each face a maximum potential penalty on the conspiracy charge of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. Sentencing is scheduled for April 15 and April 1, 2013, for the respective defendants.
In a related case, on June 21, 2012, Serendipity owners and operators Ariel Rodriguez and Reynaldo Navarro were sentenced to 73 and 74 months in prison, respectively, following guilty pleas in March 2012 to one count each of conspiracy to commit health care fraud. According to court documents, from approximately January 2006 through March 2009, Serendipity submitted approximately $20 million in claims for home health services that were not medically necessary and/or not provided. Medicare actually paid approximately $14 million for these fraudulent claims.
This case is being prosecuted by Senior Trial Attorney 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 their inception in March 2007, strike force operations in nine locations have charged more than 1,480 defendants who collectively have falsely billed the Medicare program for more than $4.8 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
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.
Six Sentenced to Prison for Federal Tax CrimesRead the Press Release
Six individuals were sentenced to federal prison last week by U.S. District Judge William P. Dimitrouleas for filing false claims for tax refunds, announced Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division, and Jose A. Gonzalez, Special Agent in Charge, IRS-Criminal Investigation (IRS-CI), Miami Office.
On January 28, 2013, Penny Jones, of Rigby, Idaho, was sentenced to 144 months in prison. Jones had pleaded guilty, without the benefit of a plea agreement, to conspiracy to defraud the United States and 41 counts of filing false claims for tax returns. On that same day, John Michael Smith, Jr., of Hidden Hills, Calif., was sentenced to 36 months in prison. Smith pleaded guilty to filing a false claim for a tax refund. According to court documents related to the plea, Smith had sought over $208,000, an amount to which he knew he was not entitled.
Defendants Michael D. Beiter, Jr., formerly of Coral Springs, Fla., David Clum, Jr., of Whites Creek, Tenn., Dale Peters, of San Mateo, Calif., and Christopher Marrero, of Davie, Fla., were all sentenced on February 1, 2013. All four were convicted, following a four-week trial in October 2012, of conspiracy to defraud the United States with respect to claims and multiple counts of filing false claims for tax refunds.
Beiter was sentenced to 300 months in prison, which is to be served consecutively to a ten year sentence he is currently serving for promoting a separate tax fraud scheme. Clum was sentenced to 293 months in prison. Peters was sentenced to 144 months in prison. Marrero was sentenced to 180 months in prison.
U.S. Attorney Wifredo A. Ferrer stated, “Tax refund scams are the latest crime du jour. For a $750 fee, complicit clients across the United States expected the defendants to submit false returns to the IRS on their behalf, claiming exorbitant fraudulent refunds, to be shared with the defendants. Instead of receiving enormous refunds, however, the defendants were sentenced to substantial jail time and the clients received substantial civil penalties and were subject to aggressive collection efforts by the IRS. As this case demonstrates, we will continue to crack down on fraudsters and will not let them line their pockets with our tax dollars.”
“Taxpayers should be wary of deals that appear too good to be true,” said Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division. “Instigators of these tax scams take money from these taxpayers, who may end up paying substantial penalties to the IRS. Sentences like the ones handed down in this case show that peddlers of these bogus tax schemes face significant jail time for their crimes.”
“The defendants who perpetrated this scheme systematically defrauded the government and the taxpaying public,” said Richard Weber, Chief IRS Criminal Investigation. “At the IRS, protecting taxpayer money is a matter we take very seriously. IRS Criminal Investigation will continue to vigorously pursue those who unjustly enrich themselves by preparing false claims for refunds.”
The evidence at trial showed that Jones, Beiter, Clum, Peters, and others operated a scheme to defraud the IRS out of tax refunds. The false return scheme operated under the name PMDD Services LLC, and, later, Forever Grace LLC. The false return scheme was nationwide, causing the filing of tax returns for at least 180 clients from 30 different states, requesting more than $160 million in fraudulent tax refunds. The defendants and clients of the scheme collectively filed more than 380 tax returns, mostly from tax year 2008 but also for other tax years. The tax returns falsely reported the amount of their personal debt obligations as both income and as federal tax withholding. The fictitious income and withholding was reported to the IRS on Forms 1099-OID.
According to the evidence at trial, the tax returns prepared as part of the scheme fraudulently claimed refunds in amounts specifically intended to allow the clients to pay off their mortgages, credit cards, student loans, and other personal debts. Clients paid $750 to have the defendants prepare a tax return reporting this fictitious “OID” income, and clients agreed to share 10 percent of their tax refund with defendants. The trial evidence also showed that defendant Beiter and Clum held seminars in Florida and Tennessee, respectively, in which they recruited potential clients.
The evidence at trial further established that most clients of the scheme did not receive the enormous refunds requested, but instead received substantial civil penalties. Those who did receive refunds were typically subject to collection efforts by the IRS.
In addition, the evidence showed that defendants Beiter, Clum, and Marrero recruited clients for the scheme. Clum also filed false “OID” tax returns himself. Peters was PMDD Services’ information technology specialist, writing software and implementing computerized procedures to automate the process of preparing the fraudulent tax returns.
Separate from the 1099-OID scheme, Marrero was convicted of filing three false tax returns at three separate IRS offices on the same day. Each return requested a refund in excess of $80,000 based on non-existing gambling income and associated tax withholding.
Previously, in a related case, a client of the scheme, Philip Butcher, formerly of Rogers, Ark., pleaded guilty to filing a false claim for a tax refund. Butcher filed two tax returns reporting his loans as OID income and tax withholding, claiming tax refunds totaling $1,456,696.
These cases were investigated by Special Agents of IRS-Criminal Investigation. Assistant U.S. Attorney Bertha Mitrani and Tax Division Trial Attorneys Jonathan Marx and Jed Silversmith prosecuted the cases.
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.
Opa-Locka Police Captain Sentenced as Part of Drug Trafficking OrganizationRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), J.D. Patterson, Acting Director, Miami-Dade Police Department (MDPD), and Addy M. Villanueva, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), announce that Arthur Balom, 44, of Miramar, a Captain with the City of Opa-Locka Police Department, was sentenced yesterday by U.S. District Judge Joan A. Lenard to 87 months imprisonment for his participation in the distribution of cocaine, ecstasy and oxycodone in Opa-Locka in violation of Title 21, United States Code, Section 846.
According to statements made in court during the change of plea and at the sentencing hearing, and those contained in court filings, Balom was part of a drug trafficking organization operating out of an Opa-Locka apartment complex known as “The Back Blues.” More specifically, according to in court statements, while Balom was a Captain in the Opa-Locka Police Department (OLPD), Balom aided and abetted in the distribution of drugs by the organization by: (1) providing the organization with information related to police activity in the area; (2) directing officers to leave the area; and (3) assisting members of the organization when they came into contact with law enforcement.
In one instance, discussed in court and in the pleadings, FBI agents provided Balom with a notebook containing photographs of various suspects related to an armed robbery. The FBI agents asked Balom about a suspected co-conspirator. The day after speaking with FBI agents about the suspect, Balom met with that very suspect and showed him the notebook provided by the FBI. In another instance, Balom provided ballistic vests to members of the drug organization.
Mr. Ferrer commended the FBI, ATF, the MDPD, and FDLE for their efforts in the investigation of this case. This case was prosecuted by Assistant U.S. Attorney Michael Gilfarb.
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.
Nicaraguan National Sentenced on Drug Trafficking ConspiracyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), Miami Field Division, announce the conviction and sentencing of Franklin William McField-Bent, a/k/a “Buda.” McField-Bent, 55, a Nicaraguan national, was sentenced yesterday by U.S. District Judge K. Michael Moore to a 235-month term of incarceration on drug trafficking conspiracy charges in violation of Title 21, United States Code, Section 963, and a 180-month term of incarceration for his participation in a conspiracy to provide weapons to a designated terrorist organization in violation of Title 18, United States Code, Section 2339B. The 180-month term of incarceration –the highest possible sentence allowable under the statute – was ordered to run concurrent to the 235-month term of incarceration. McField-Bent had previously agreed to plead guilty on November 8, 2012.
McField-Bent conceded in a factual proffer that, during the time of the charged conspiracy, he had had numerous meetings and phone calls with Colombian law enforcement officers who, posing as members of a foreign terrorist organization, sought to obtain weapons that they intended to use to launch attacks on the Colombian government. McField-Bent arranged for the March 2010 sale of six grenade launchers, 20 grenades, an Uzi submachine gun and 100 rounds to the Colombian law enforcement officers. McField-Bent also admitted to participating in the shipment of three multi-hundred kilogram loads of cocaine to Central America knowing that the cocaine would be unlawfully imported into the United States.
U.S. Attorney Wifredo A. Ferrer stated, “International drug traffickers, like this defendant, continue to pose a direct and immediate threat to our national security. Through proactive efforts and dedicated resources of our office, together with considerable international and domestic cooperation, we will continue to combat those who threaten the welfare of our citizens.”
DEA Special Agent in Charge Mark R. Trouville stated, “The sentence of Nicaraguan National William McField-Bent highlights the DEA’s commitment to target the highest level of drug traffickers regardless of their nationality. There is no danger greater than the marriage of drug trafficking and terrorism.”
“The arrest, conviction and subsequent sentencing of McField-Bent is an important accomplishment for the U.S. Government and its international partners due to the magnitude of his criminal violations and threat to the homeland,” said Alysa D. Erichs, Special Agent in Charge of ICE-HSI in Miami. “We will continue to work shoulder to shoulder with our domestic and international law enforcement partners to identify and dismantle drug and weapons trafficking organizations.”
The extradition of McField-Bent is the result of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) led by DEA and HSI. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Mr. Ferrer commends the outstanding investigative efforts of DEA and ICE-HSI. This case is being prosecuted by Assistant U.S. Attorney Adam Fels.
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.
Guilty Plea Entered by Two Individuals Charged in Plot to Conceal and Dispose of Assets in Connection with Rothstein CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), announced that Kimberly Wendell Rothstein, 38, and Stacie Weisman, 49, pled guilty today to conspiracy to commit money laundering in violation of Title 18, United States Code, Section 371, before the Honorable Judge Robin S. Rosenbaum. Sentencing for Kimberly Rothstein has been scheduled April 19, 2013 at 9:00 a.m. Sentencing for Stacie Weisman has been scheduled for June 7, 2013 at 10:00 a.m.
Kimberly Rothstein and Stacie Weisman were charged, along with Scott F. Saidel, 45, in September 2012 in connection with certain crimes committed in furtherance of a plot to conceal and dispose of assets which were forfeitable as proceeds of a Ponzi scheme orchestrated by Scott W. Rothstein. At the same time, in September, Eddy Marin, 50, and Patrick Daoud, 54, were also charged in a separate, but related, matter with obstruction of justice and perjury, in violation of Title 18, United States Code, Sections 1512(k) and 1621.
According to the documents filed with the court, former Ft. Lauderdale attorney Scott W. Rothstein, who was the Chief Executive Officer and Chairman of the law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA), used the funds obtained from the operation of a Ponzi scheme to purchase tens of millions of dollars of real estate, vehicles, vessels, business interests, luxury watches, jewelry and sports memorabilia for himself, his wife, Kimberly Rothstein, and others. As part of his plea agreement, Scott W. Rothstein agreed to forfeit to the government all assets acquired with funds derived through the aforesaid Ponzi scheme. On November 9, 2009, agents of the Internal Revenue Service, Criminal Investigations, went to the Rothstein residence, where Kimberly Rothstein assisted the agents in retrieving what was believed to be all of the available cash, jewelry and luxury watches which had previously been purchased by Scott W. Rothstein with proceeds derived from the Ponzi scheme. However, according to Court documents, before, during and after the aforesaid seizure by federal agents on November 9, 2009, Kimberly Rothstein, Stacie Weisman, and Scott F. Saidel knowingly took action to conceal certain items of jewelry, valued in excess of one million dollars, for the purpose of preventing the government from exercising its authority to take such property into its lawful custody and control. Thereafter, Kimberly Rothstein and Stacie Weisman sold and attempted to sell a portion of this jewelry to and through various persons, including Eddy Marin and Patrick Daoud.
The documents further allege that, in connection with civil proceedings instituted by the Trustee in bankruptcy for RRA, all of the defendants took steps to obstruct justice by concealing the true location of certain items of jewelry in order to prevent its availability for use in the bankruptcy proceedings. It is further alleged that Marin and Daoud committed perjury during depositions in connection with the bankruptcy proceedings, and that Kimberly Rothstein, Stacie Weisman and Scott F. Saidel sought to have Scott W. Rothstein testify falsely in connection with those proceedings.
Defendants Eddy Marin and Patrick Daoud are set to commence trial on April 8, 2013. Defendant Scott F. Saidel pled guilty on January 30, 2013 and is scheduled to be sentenced on June 7, 2013.
U.S. Attorney Ferrer commended the investigative efforts of IRS-CID and FBI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence LaVecchio, Jeffrey Kaplan, Paul Schwartz and Evelyn Sheehan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Guilty Plea Entered by Contractor Charged with Paying Bribes to Director of Traffic EngineeringRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Marlies T. Gonzalez, Special Agent in Charge, U.S. Department of Transportation, Office of Inspector General, announced that James Hashim, 50, of Plantation, pled guilty today to conspiracy to commit bribery in programs receiving federal funds, highway fraud, mail fraud, extortion under color of official right, and tax fraud, all in violation of Title 18, United States Code, Sections 371, before the Honorable Judge James I. Cohn. Sentencing has been scheduled for Friday, April 26, 2013, at 11:00 a.m.
Hashim was charged, along with Anthoneel Allen, 40, of Wellington, in connection with a scheme wherein they paid bribes to Jihad El Eid, who was the Director of Traffic Engineering in the Division of Public Works in Broward County.
According to the documents filed with the court, in or about 2005, Allen hired Hashim as a vice president of Southeast Underground Utilities (SUU). Hashim was to work as an estimator and to help SUU obtain government contracts. Hashim admitted that beginning in the fall of 2006 through 2010, he and Allen provided to Jihad El Eid more than $150,000 in cash, a 2003 Ford Taurus, and a job at SSUU for Wael El Eid (a relative of Jihad El Eid) in order to curry favor with Jihad El Eid. In return, Jihad El Eid helped SUU obtain work on multi-million dollar projects initiated by the Broward County Traffic Engineering Division, including the Signalization and Street Light Installation (SSLI) contract, a contract to make installations and do repair work of the street lights and traffic equipment in Broward County; the Advanced Transportation Management System (ATMS Project), a federally-funded project, which required the contractor to install an integrated traffic control system which entailed laying hundreds of thousands of feet of underground cable and conduit in order to synchronize traffic flow within Broward County; and the Video Detection Contract (VDC), which required the contractor to install video detection cameras in various intersections in Broward County in order to improve traffic flow. Jihad El Eid also assisted SUU concerning billing, specification and inspection matters that resulted in SUU being overpaid by at least $3,000,000.
According to the documents filed with the court, Hashim also admitted that he and Allen conspired to evade paying federal income and employment taxes on bonuses and payments made by SUU related to the purchase of Hashim’s $1.25 million house in Plantation.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, and the U.S. Department of Transportation, Office of Inspector General, in connection with the investigation of this matter. Mr. Ferrer would also like to recognize the assistance provided by the Broward County Office of the County Attorney, the Broward County Professional Standards Section, the Federal Highway Administration, the Florida Department of Transportation, and the employees of the Broward County Traffic Engineering Division. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Boca Raton Chiropractor Sentenced for Conspiracy to Commit Mail Fraud in Connection with Staged Accident SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Acting 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 Jeff Atwater, Florida Chief Financial Officer, announced that defendant Jennifer Adams, 39, of Boca Raton, a chiropractic doctor, was sentenced yesterday to 54 months in prison, to be followed by 3 years of supervised release. She was also ordered to pay restitution of $1,920,424.83. Adams previously pled guilty to a one-count Information charging her with conspiring with others to commit mail fraud for her role in a staged accident fraud scheme.
According to court documents, to execute the fraud scheme, the recruiters sought out drivers and their friends/family members to participate in staged accidents. Under Florida’s “No Fault” insurance law, insurers are required to provide Personal Injury Protection (PIP) coverage of $10,000 per person. The recruiters referred to the individuals whom they recruited as the “Perro” and the “Perra.” The “Perro” was the person who “caused” the staged accident. The “Perra” was the person who was the “victim” of the staged accident and whose car was struck by the “Perro’s” car. Thus, if the recruiter found a Perro with a wife and two children and a Perra with two friends, for a total of seven (7) participants, the maximum PIP benefit was $70,000.
Once the recruiters found the participants, they coached the participants on how to perform the staged accident, what to say to the police officer who responded to the scene, and on how to claim that they had been injured. Thereafter, the accident was staged. After impact, a police officer was called, and a police report was filed. After the staged accident, the Perro and Perra filed false claims with their insurance companies, alleging that they and their family members were injured.
Court documents state that the accident participants were then directed by the recruiters to chiropractic clinics that were controlled by co-defendants. The staged accident participants completed paperwork falsely asserting that they suffered injuries during the staged accident. The co-conspirators advised the participants on how to fill out the paperwork and what to say if an insurance investigator interviewed them about their injuries or treatment. The staged accident participants were instructed to sign numerous blank treatment forms that would later be submitted indicating that they had visited the clinic on a number of separate occasions for treatment, although they may have visited the clinic only once or twice. During their visits, some staged accident participants received no treatment at all, or may have received only a short exam or treatment from the chiropractor or LMT but the paperwork completed by the LMTs and chiropractors, including Dr. Adams, indicated that a full and lengthy exam and treatment was given.
According to court documents, Adams agreed to place her name on the corporate paperwork for two clinics, thus utilizing her status as a licensed Chiropractic Physician, to allow the clinics to bill insurance companies directly for PIP claims without obtaining additional licensure from the State of Florida. Those clinics were Ovy Rehabilitation Medical Center, Inc. (OVY) in West Palm Beach, Florida and Chiropractic Office of South Florida, LLC (COSF) in Palm Springs, Florida. Although Adams was named as the owner of the clinic on the corporate paperwork, the co-conspirators maintained control of the bank account and running the operations of the clinics.
Court documents state that Adams initially believed the clinics to be operating legitimately. Sometime thereafter, Adams became aware that her license and status as a Chiropractor was being used to fraudulently submit claims by U.S. Mail to insurance companies. Adams realized these patients did not require the medical treatment they sought. Adams continued to work at both clinics signing prescriptions for plans of treatment that she knew were not medically necessary and that she knew were being submitted for reimbursement to numerous insurance companies. According to court documents, from the time that Adams was told about the fraud until the clinics were closed by law enforcement, the clinics submitted fraudulent claims that resulted in more than ten insurance companies making total payments of $1,920,424.83. Defendant Adams received a salary for her work as a chiropractic physician paid from the COSF and OVY checking accounts. The bulk of the proceeds of the fraud were taken by co-conspirators.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, and the Florida Department of Insurance Fraud, and issued a special thanks to the National Insurance Crime Bureau (NICB) for its assistance in this investigation. Mr. Ferrer also thanked the members of the Greater Palm Beach Health Care Fraud Task Force. The case is being prosecuted by Assistant U.S. Attorney A. Marie Villafaña.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Armed Bank Robber Sentenced on Bank Robbery and Firearms ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, W. Howard Harrison, Chief, Plantation Police Department, and Anthony Strianese, Chief, Delray Beach Police Department, announce that Bryan Whitehead, 32, of Miami, was sentenced today before U.S. District Judge William J. Zloch, in connection with his previous convictions after trial for bank robbery, in violation of Title 18, United States Code, Section 2113(a) and the use of a firearm during and in relation to a crime of violence, in violation of Title 18, United States Code, Section 924(c).
At today’s hearing, U.S. District Judge William J. Zloch sentenced defendant Bryan Whitehead to 471 months in prison (39.25 years) to be followed by five years of supervised release upon his release from imprisonment.
According to the Indictment, in court statements, and documents filed with the court, on May 1, 2010, a black male, later identified as Bryan Whitehead, wearing a dark nylon covering on his face, royal blue surgical scrubs, and brandishing a dark colored handgun, entered Bank of America, located at 7215 W. Atlantic Boulevard, in Delray Beach, Florida. Whitehead forced customers to the floor at gunpoint and accompanied bank employees to the vault area where he made the bank manager open one of the vault drawers. Whitehead also took money from several teller drawers and removed dye packs from the bank loot prior to departing the bank. Whitehead escaped with approximately $30,000 in cash.
Thereafter, on Monday, May 21, 2012, Whitehead entered the BB&T branch located at 450 Pine Island Road, in Plantation, Florida. Whitehead, who was wearing khaki pants and holding a firearm, entered the bank and forced a bank customer to the ground at gunpoint before pulling a black beanie over his face. From the lobby, Whitehead pointed a firearm at a bank teller and demanded that she open the door to the teller area. Whitehead removed the cash from the teller drawers and placed the cash in a dark colored cloth sack. Whitehead then demanded at gunpoint that the tellers open the vault. Once inside the vault area, Whitehead filled a cloth sack with in excess of $13,990 and thereafter fled the bank. Ultimately, Plantation Police Department captured Whitehead in a nearby gas station parking lot. During a search of the Defendant’s vehicle, officers recovered the firearm used during the commission of the offense, Whitehead’s disguise, a police scanner, and the stolen money.
Mr. Ferrer commended the investigative efforts of the FBI, the Plantation Police Department, and the Delray Beach Police Department. This case was prosecuted by Assistant U.S. Attorney Marc Anton.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Guilty Plea Entered by One of Five Individuals Charged in Plot to Conceal and Dispose of Assets in Connection with Rothstein CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), announced that Scott F. Saidel, 45, pled guilty today to conspiracy to commit money laundering in violation of Title 18, United States Code, Section 371, before the Honorable Judge Robin S. Rosenbaum. Sentencing has been scheduled for June 7, 2013 at 9:00 am.
Saidel was charged, along with Kimberly Wendell Rothstein, 38, and Stacie Weisman, 49, in September 2012, in connection with certain crimes committed in furtherance of a plot to conceal and dispose of assets which were forfeitable as proceeds of a Ponzi scheme orchestrated by Scott W. Rothstein. At the same time, in September, Eddy Marin, 50, and Patrick Daoud, 54, were also charged in a separate, but related, matter with obstruction of justice and perjury, in violation of Title 18, United States Code, Sections 1512(k) and 1621.
According to the documents filed with the court, former Ft. Lauderdale attorney Scott W. Rothstein, who was the Chief Executive Officer and Chairman of the law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA), used the funds obtained from the operation of a Ponzi scheme to purchase tens of millions of dollars of real estate, vehicles, vessels, business interests, luxury watches, jewelry and sports memorabilia for himself, his wife, Kimberly Rothstein, and others. As part of his plea agreement, Scott W. Rothstein agreed to forfeit to the government all assets acquired with funds derived through the aforesaid Ponzi scheme. On November 9, 2009, agents of the Internal Revenue Service, Criminal Investigations, went to the Rothstein residence, where Kimberly Rothstein assisted the agents in retrieving what was believed to be all of the available cash, jewelry and luxury watches which had previously been purchased by Scott W. Rothstein with proceeds derived from the Ponzi scheme. However, according to Court documents, before, during and after the aforesaid seizure by federal agents on November 9, 2009, Kimberly Rothstein, Stacie Weisman, and Scott F. Saidel knowingly took action to conceal certain items of jewelry, valued in excess of one million dollars, for the purpose of preventing the government from exercising its authority to take such property into its lawful custody and control. Thereafter, Kimberly Rothstein and Stacie Weisman sold and attempted to sell a portion of this jewelry to and through various persons, including Eddy Marin and Patrick Daoud.
The documents further allege that, in connection with civil proceedings instituted by the Trustee in bankruptcy for RRA, all of the defendants took steps to obstruct justice by concealing the true location of certain items of jewelry in order to prevent its availability for use in the bankruptcy proceedings. It is further alleged that Marin and Daoud committed perjury during depositions in connection with the bankruptcy proceedings, and that Kimberly Rothstein, Stacie Weisman and Scott F. Saidel sought to have Scott W. Rothstein testify falsely in connection with those proceedings.
Defendants Eddy Marin and Patrick Daoud are set to commence trial on April 8, 2013.
U.S. Attorney Ferrer commended the investigative efforts of IRS-CID and FBI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence LaVecchio, Jeffrey Kaplan, Paul Schwartz and Evelyn Sheehan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Palm Beach County Middle School Principal Sentenced for Enticement of A Minor to Engage in Unlawful Sexual ActivityRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Miami Field Office, announced that Scott A. Blake, 47, of Palm Beach Gardens, was sentenced today to 120 months imprisonment by Senior United States District Judge Kenneth L. Ryskamp on charges of enticing a minor to engage in an illegal sexual activity in violation of Title 18, United States Code, Section 2422(b).
This case stemmed from an undercover investigation into several geographic location social networking websites. Blake, who at the time was the Principal of Polo Park Middle School, located in Wellington, Florida, contacted the undercover law enforcement officer via those websites. After a number of sexually suggestive conversations, Blake arranged to meet the officer, who he thought was a 15 year old boy, at a local mall for the purpose of engaging in illegal sexual activity. Blake arrived at the mall and was taken into custody. The HSI and other law enforcement officers executed a search warrant at Blake’s residence and seized computers, documents and records that resulted in this federal prosecution.
Mr. Ferrer commended the investigative efforts of ICE-HSI and the members of the South Florida Internet Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorneys Lothrop Morris and Jennifer Millien.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Fort Lauderdale Woman Convicted in Identity Theft Tax Refund Fraud Scheme Involving the Filing of Approximately 2,000 Fraudulent Tax Returns Seeking $11 Million Dollars in RefundsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), Miami Field Office, and Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, announced yesterday’s conviction at trial of Alci Bonannee, 36 of Fort Lauderdale, of one count of conspiracy to defraud the government in violation of Title 18, United States Code, Section 286, nine counts of filing false claims in violation of Title 18, United States Code, Section 287, nine counts of aggravated identity theft in violation of Title 18, United States Code, Section 1028A, and fourteen counts of wire fraud in violation of Title 18, United States Code, Section 1343.
According to testimony and evidence presented at trial, the defendant was the primary perpetrator of an identity theft tax fraud scheme that operated from December 2010 to June 2012. During the course of the fraud scheme, there were approximately 2,000 fraudulent tax returns submitted to the Internal Revenue Service for payment seeking $11 million dollars in refunds. The Department of Treasury paid out several million dollars into bank accounts in the name of and controlled by the defendant and her co-conspirators. The defendant and her co-conspirators withdrew this money in cash.
According to testimony and evidence presented at trial, the defendant filed a large percentage of these fraudulent returns from her house in Fort Lauderdale, from her friends’ houses in Broward County and from a hotel in Charlotte, North Carolina. The defendant filed many of these fraudulent returns using compromised personal identification information obtained from a nurse at a local hospital.
Bonannee is scheduled to be sentenced on April 26, 2013. She faces a possible maximum prison sentence of 351 years.
Defendant’s co-conspirator, Chante Mozley, pled guilty to conspiracy to file fraudulent claims on January 9, 2013. Mozley faces a possible maximum prison sentence of 10 years. Sentencing is scheduled for March 28, 2013.
Defendant’s co-conspirator, Sonyini Clay, pled guilty to conspiracy to file fraudulent claims and aggravated identity theft on January 14, 2013. Clay faces a possible maximum prison sentence of 12 years. Sentencing is scheduled for April 26, 2013.
Mr. Ferrer commended IRS-CID and USSS for their work on the case. The case is being prosecuted by Assistant U.S. Attorneys Michael N. Berger and Wilfredo Fernandez.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Judge Sentences Miami Men for December 2010 Murder of Postal Worker in Identity Theft SchemeRead the Press Release
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Antonio J. Gomez, Acting Inspector in Charge, U.S. Postal Inspection Service, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CI), J.D. Patterson, Acting Director, Miami-Dade Police Department, and Marc Elias Jr., Chief, North Miami Police Department, announce the sentence of Pikerson Mentor, 30, of Miami, to a life imprisonment. Saubnet Politesse, 24, was sentenced to 21 years imprisonment after pleading guilty to being Mentor’s getaway driver during the robbery resulting in U.S. Postal Service employee Bruce Parton’s death. Both sentences were imposed by U.S. District Court Judge Donald Graham.
Mentor had been previously convicted after a seven-day trial, during which approximately 40 witnesses were called. At the conclusion of that trial, the jury convicted Mentor of all fourteen counts of the Second Superseding Indictment, which included the murder of a federal government employee while in the course of his duties, in violation of Title 18, United States Code, Sections 1114 and 111; car-jacking, in violation of Title 18, United States Code, Section 2119; theft of a key for a U.S. Postal Service mail receptacle, in violation of Title 18, United States Code, Section 1704; use of a firearm in the commission of a crime of violence, in violation of Title 18, United States Code, Section 924(j); conspiracy to commit and commission of access device fraud, in violation of Title 18, United States Code, 371 and 1029(a)(2); and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
U.S. Attorney Wifredo A. Ferrer stated, “The sentences imposed today on the defendants for the ruthless murder of Bruce Parton, a hard-working and dedicated mail carrier, should send a clear message to our community: there are lifelong consequences to senseless acts of violence. I hope that the life imprisonment sentence of Pikerson Mentor, and 21 years imprisonment sentence of Saubnet Politesse, will bring some comfort and sense of justice to Mr. Parton’s family.”
Antonio J. Gomez, Acting Inspector in Charge for U.S. Postal Inspection Service stated, “Today’s sentencing is the result of the U.S. Postal Inspection Service working diligently with law enforcement partners to make sure that U.S. Postal Service employees are protected.”
“The death of U.S. Postal Service employee Bruce Parton is an absolute tragedy, and individuals who commit crimes of this magnitude deserve to be punished to the fullest extent of the law,” said Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI). “Faced with the unique circumstances of this case, IRS Criminal Investigation along with our law enforcement partners and the United States Attorney's Office were committed to investigating and prosecuting these individuals who chose personal monetary gain over the value of another human being's life.”
“We hope that the family of Mr. Parton has found some justice with today’s sentencing. We are grateful for the cooperation and dedication of all the agencies that lead to the successful arrests and prosecution of the case,” said J.D. Patterson, Acting Director of the Miami-Dade Police Department.
North Miami Police Department Chief Marc Elias, Jr. stated, “The North Miami Police Department is proud to have worked in partnership with the United States Postal Inspection Service and our Federal and Local law enforcement agencies in bringing the murderers of Bruce Parton of the U.S. Postal Services to justice. This is another example of law enforcement agencies collaborating to remove armed and dangerous subjects from the streets of South Florida.”
According to trial evidence, U.S. Postal Service letter carrier Bruce Parton was murdered on December 6, 2010 as he delivered mail to the Monte Carlo apartment complex in northwest Miami. Mentor and his accomplices stole the victim’s U.S Postal master key, called an Arrow Key, and the keys to the victim’s postal truck. Postal keys are used by letter carriers to access mailboxes. Witnesses testified that they heard two shots at the scene, and an eyewitness testified that she saw the defendant fleeing the apartment complex in the victim’s stolen truck. In addition, Saubnet Politesse, a co-conspirator who testified regarding his role in the conspiracy, confirmed that Mentor had shot the victim mail carrier. In addition, witnesses explained how the defendants used the stolen master key to enter mailboxes to steal private financial and personal identification information and to intercept debit cards loaded with fraudulently obtained tax refunds.
During trial, North Miami Police detectives testified about the May 4, 2011, arrest of Saubnet Politesse for driving without a license. During that arrest, the officers discovered a unique looking key with an obliterated serial number. The serial number was subsequently restored and matched the serial number of the victim’s stolen master key. Upon being questioned by the police, Politesse described his, Mentor’s and another person’s participation in the December 6 robbery and murder. Thereafter, early in the morning of May 5, 2011, defendant Mentor was arrested.
Politesse pleaded guilty to charges related to his participation in the robbery/homicide as a getaway driver. Politesse testified as a government witness and was ultimately sentenced to 21 years’ imprisonment during the sentencing hearing immediately following Mentor’s sentence.
Mr. Ferrer commended the investigative efforts of the U.S. Postal Inspection Service, IRS-CI, Miami-Dade Police Department and the North Miami Police Department. This case is being prosecuted by Assistant U.S. Attorneys Anthony LaCosta and Roy Altman.
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 Sentenced to Prison in Florida Community Mental Health Center CaseRead the Press Release
The owners of three Miami-area assisted living facilities and an affiliated psychologist were sentenced to prison yesterday in connection with a health care fraud scheme, involving now-defunct Miami-area health provider Health Care Solutions Network Inc. (HCSN), in which Medicare was billed for mental health treatments that were unnecessary or not provided.
The sentences 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, Acting 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 Cecilia M. Altonaga sentenced Serena Joslin, 32, of Looneyville, W.Va., to 63 months in prison, following her previous guilty plea to conspiracy to commit health care fraud. Raymond Rivero, 55, Daniel Martinez, 46, and Ivon Perez, 50, all of Miami, were each sentenced to 28 months in prison. All three had previously pleaded guilty to conspiracy to violate the anti-kickback statute.
According to court documents, HCSN operated community mental health centers both in Miami and North Carolina, including partial hospitalization programs (PHP) – a form of intensive treatment for severe mental illness. HCSN obtained Medicare beneficiaries to attend HCSN for purported PHP treatment that was unnecessary and, in many instances, not provided.
In Miami, HCSN obtained beneficiaries by paying kickbacks to owners and operators of assisted living facilities (ALF) or by otherwise recruiting them from the facilities and from nursing homes. Rivero, Martinez and Perez admitted during their guilty pleas to referring Medicare beneficiaries to HCSN in exchange for cash bribes. Rivero, former owner of Miami-based God Is First ALF; Martinez, former owner of Homestead, Fla.-based Mi Renacer ALF; and Perez, former owner of Homestead-based Kayleen and Denis Care Corp., are no longer permitted to operate such facilities as a condition of their guilty pleas.
According to court documents, ALF residents referred to HCSN by Rivero, Martinez and Perez were not qualified to be placed in PHP and were only selected because they had Medicare or state of Florida Medicaid benefits. In some cases, ALF patients suffered from dementia, Alzheimer’s disease or mental retardation, or were otherwise unable to benefit from mental health services.
According to court documents, Joslin, a licensed psychologist, was hired by HCSN in North Carolina in April of 2010 as a clinical coordinator and later promoted to clinical director. In those roles, she conspired with other HCSN employees to fabricate medical documents to substantiate alleged PHP treatment that was medically unnecessary and, in many instances, not even provided to the beneficiaries. Joslin admitted that many of the HCSN patients were unqualified for the PHP program because they suffered from conditions such as mental retardation and dementia, and that she directed therapists to fabricate medical records to support HCSN’s fraudulent billing to the Medicare program. Joslin was also required to surrender her North Carolina license to provide mental health treatment as part of her plea agreement.
According to court documents, from 2004 through 2011, HCSN billed Medicare and the Florida Medicaid program approximately $63 million for purported mental health services.
In addition to the prison terms, Judge Altonaga sentenced Joslin, Rivero, Martinez and Perez each to serve three years of supervised release, and ordered them to pay $4,464,728; $90,896; $76,358; and $89,245 in restitution, respectively.
The cases are being prosecuted by Special Trial Attorney William Parente and Trial Attorney Allan J. Medina of the Criminal Division’s Fraud Section. The cases were investigated by the FBI and HHS-OIG and were 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.
Former Miami Clinic Director Sentenced to 70 Months in Prison for Role in HIV Infusion Fraud SchemeRead the Press Release
A former Miami HIV infusion clinic director was sentenced yesterday to serve 70 months in prison for his role in a $26.2 million HIV infusion fraud scheme, announced U.S. Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Lanny Breuer of the Criminal Division, Acting Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office.
Enrique Gonzalez, 67, formerly of Miami, was sentenced by U.S. District Judge Cecilia M. Altonaga in the Southern District of Florida. In addition to his prison term, Judge Altonaga sentenced Gonzalez to serve three years of supervised release and ordered him to pay $17,590,896 in restitution to HHS.
On Nov. 13, 2012, Gonzalez pleaded guilty to one count of conspiracy to defraud the United States, to cause the submission of false claims, and to pay health care kickbacks, and one count of conspiracy to commit health care fraud.
Gonzalez admitted that between August 2002 and March 2004, he conspired with co-defendant Ronald Harris, a Miami physician, and alleged co-conspirators to operate Physicians Med-Care and Physicians Health (together the “Physicians Clinics”), two Miami HIV infusion clinics. According to court documents, the Physicians Clinics were owned and controlled by alleged co-conspirators Carlos Benitez and his brother Luis Benitez. The Physicians Clinics purported to specialize in treating patients with HIV, but were operated for the sole purpose of committing Medicare fraud, according to court documents. Gonzalez was a director of Physicians Med-Care and, at the direction of his co-conspirators, was responsible for the finances of the Physicians Clinics.
Gonzalez admitted that he agreed with his co-conspirators to handle the finances for the Physicians Clinics, moving the money paid by the Medicare program out of the Physicians Clinics’ accounts and into accounts owned and controlled by his co-conspirators. According to court documents, Harris signed blank checks that Gonzalez used to transfer funds to various Benitez-owned entities and others, as directed by his co-conspirators. In addition, Gonzalez agreed to provide cash to various co-conspirators at the Physicians Clinics to be used to pay bribes and kickbacks to the Medicare beneficiaries in return for those beneficiaries allowing the Physicians Clinics to bill the Medicare program for HIV infusion services that were not medically necessary and often not provided.
Gonzalez admitted that during his association with Physicians Med-Care, the clinic billed the Medicare program approximately $24.5 million in HIV infusion therapy claims, for which the clinic received $16.7 million in payments. Gonzalez also admitted that during his time with Physicians Health, the clinic billed Medicare approximately $1.7 million and received approximately $800,000 in payment from the Medicare program for fraudulent services.
Gonzalez was a fugitive from justice from the time of his indictment in 2008, until he was located and detained in Peru in late 2011. Gonzalez was extradited to the United States in July of 2012. Gonzalez’ daughter, Carmen Gonzalez, was indicted in a related case and is currently a fugitive.
Co-defendant Harris pleaded guilty on Aug. 26, 2008, to one count of conspiracy to defraud the United States, to cause the submission of false claims and to pay health care kickbacks; one count of conspiracy to commit health care fraud; and three counts of submitting false claims to the Medicare program. Harris pleaded guilty in connection with his role as the medical director for the Physicians Clinics. On Nov. 4, 2008, Harris was sentenced to serve 84 months in prison for his role in the scheme.
Carlos and Luis Benitez and Thomas McKenzie were charged separately with health care fraud and money laundering crimes in an indictment unsealed on June 11, 2008. According to the separate indictment, the defendants provided the money and staff necessary to open the Physicians Clinics, the Medicare patients that the clinics needed to bill the Medicare program and transportation for the HIV patients who visited the clinics. Carlos and Luis Benitez and McKenzie were charged for their role in committing approximately $109 million in HIV infusion fraud and money laundering through the Physicians Clinics and nine other HIV infusion clinics.
On Sept. 18, 2008, McKenzie pleaded guilty to one count of conspiracy to commit health care fraud and one count of submitting false claims to the Medicare program, and admitted to his role in a $119 million HIV infusion fraud scheme. On Dec. 18, 2008, McKenzie was sentenced to serve 14 years in prison.
Carlos and Luis Benitez are also fugitives. Anyone with information regarding the whereabouts of the fugitives is urged to contact HHS-OIG fugitive reporting phone line at 888-476-4453.
The defendants who have not been convicted are presumed innocent unless and until proven guilty.
The Physicians Med-Care and Physicians Health case is being prosecuted by Trial Attorney N. Nathan Dimock of the Criminal Division’s Fraud Section. The case was investigated by the FBI and the DHS Office of Inspector General.
The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. The Department also thanks the Peruvian National Police Interpol Unit for their assistance.
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.
Florida Commercial Fisherman Pleads Guilty to False StatementsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Otha Easley, Acting Special Agent in Charge, NOAA Fisheries Office of Law Enforcement, Southeast Division, and Major Jeff Hubert, Regional Commander, South A Region, Florida Fish & Wildlife Conservation Commission (FWC), announced that Jason Cardinale, 41, pled guilty today to one count of making false statements to the NOAA Southeast Fisheries Science Center, in violation of Title 18, United States Code, Section 1001. Sentencing has been scheduled for April 4, 2013 before U.S. District Judge Donald M. Middlebrooks.
According to the allegations in the indictment and statements made in court, from about January 15, 2010 through February 24, 2012, Cardinale submitted false No Fishing Activity Reports to the NOAA Southeast Fisheries Science Center, potentially compromising the management of fisheries under NOAA’s jurisdiction.
U.S. Attorney Wifredo A. Ferrer stated, “The U.S. Attorney’s Office will continue to do its part to help protect our fragile eco-system, including our fisheries.”
“Falsely reporting data leaves fishery scientists with an incomplete picture of what is truly happening on the water, which can ultimately lead the entire industry to shorter seasons and weaker fish populations,” said Dr. Bonnie Ponwith, Director for NOAA Fisheries’ Southeast Fisheries Science Center. “We applaud those who understand the integral role they play in an effective fishery management process by taking the time to supply high-quality, timely data.”
Mr. Ferrer commended the investigative efforts of NOAA Office of Law Enforcement and FWC. This case is being prosecuted by Assistant U.S. Attorney Norman O. Hemming, III.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Director of Broward Public Works Department, Two Contractors, and Another Charged with Offering and Accepting Bribes in Connection with County ContractsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Marlies T. Gonzalez, Special Agent in Charge, U.S. Department of Transportation, Office of Inspector General, announce the unsealing of a criminal complaint and the filing of an Information charging defendants Jihad El Eid, 53, formerly of Plantation, FL, and Wael El Eid, 45, formerly of Coral Springs, FL, and both currently residing in Lebanon, with bribery in connection with programs receiving federal funds, highway fraud, mail fraud, extortion under color of official right, and conspiracy to commit those offenses, in violation of Title 18, United States Code, Sections 666, 1020, 1341, 1349, 1951, and 371, respectively. Also charged are defendants Anthoneel Allen, 40, of Sunrise, FL, and James Hashim, 50, of Plantation, FL, for conspiracy to commit bribery in programs receiving federal funds, highway fraud, mail fraud, extortion under color of official right, tax fraud, Disadvantaged Business Enterprise fraud, all in violation of Title 18, United States Code, Sections 371. Defendants Allen and Hashim made their initial appearance in federal court this morning before U.S. Magistrate Judge Barry S. Seltzer. Both were released on a $100,000 personal surety bond. Jihad El Eid and Wael El Eid are believed to be out of the country and did not appear in court.
According to the criminal complaint and the Information, in 1998, Jihad El Eid was hired as the director of the Broward County Traffic Engineering Division (BCTED), which is responsible for constructing, repairing, and maintaining the traffic systems and signs on the roadways in Broward County. Defendant Allen owned Southeast Underground Utilities, Corp., (SUU), in Plantation, Florida, which was in the business of installing, repairing and maintaining street lights and traffic signals. Prior to 2005, SUU had no contracts with the Broward County government or any Broward County municipality. In or about 2005, Allen hired defendant Hashim as a vice president of SUU. Hashim was to work as an estimator and to help SUU obtain government contracts.
According to the criminal complaint and the Information, beginning in the fall of 2006 through 2010, at the request of Jihad El Eid, Allen and Hashim provided to Jihad El Eid more than $150,000 in cash, a 2003 Ford Taurus, and a job at SUU for Wael El Eid (a relative of Jihad El Eid). Allen and Hashim allegedly made these payments to curry favor with Jihad El Eid. In return, Jihad El Eid allegedly helped SUU obtain work on multi-million dollar projects initiated by the BCTED, including the Signalization and Street Light Installation (SSLI) contract, a contract to make installations and do repair work of the street lights and traffic equipment in Broward County; the Advanced Transportation Management System (ATMS Project), a federally-funded project, which required the contractor to install an integrated traffic control system which entailed laying hundreds of thousands of feet of underground cable and conduit in order to synchronize traffic flow within Broward County; and the Video Detection Contract (VDC), which required the contractor to install video detection cameras in various intersections in Broward County in order to improve traffic flow. Jihad El Eid also assisted SUU concerning billing, specification and inspection matters that resulted in SUU being overpaid by at least $3,000,000.
According to the Information, Allen and Hashim conspired to evade paying federal income and employment taxes on bonuses and payments on the purchase of Hashim’s $1.25 million house in Plantation, Florida. The charging documents also allege that Allen filed a fraudulent application on behalf of SUU to have SUU certified as a Disadvantaged Business Enterprise (DBE), which resulted in SUU being awarded awarded directly or as a subcontractor approximately 25 contracts from Broward County and other state, county and local governments in the State of Florida based on its fraudulently obtained DBE status, which entitled SUU to receive in excess of $10,000,000 in government contracts.
U.S. Attorney Wifredo A. Ferrer stated, “Corruption in the procurement process is unacceptable, especially when it affects programs receiving federal funds. It is crucial that businesses compete on a level playing field, without improper outside influences or the payment or receipt of bribes. The U.S. Attorney’s Office will continue to prosecute those who steal from programs receiving federal funds.”
“This investigation reveals how business is not to be conducted in the United States. The FBI is committed to investigating not just corrupt acts, but the individuals who are behind them,” said Michael B. Steinbach, Acting Special Agent in Charge of the FBI’s Miami Division. “We encourage anyone who may have information about corruption to come forward and report it. That information is critical to our work.”
“Individuals in positions of public trust are expected to work in an ethical manner,” said Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI). “Accepting a bribe corrupts the system, and IRS Criminal Investigation is committed to working with our law enforcement partners to enforce the law and hold individuals accountable who engage in this type of fraud.”
If convicted of the charges in the criminal complaint, defendants Jihad El Eid and Wael El Eid face a possible maximum statutory sentence of up to 20 years in prison. If convicted of the charges in the Information, defendants Allen and Hashim each face a possible statutory maximum sentence of up to five years in prison.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, and the U.S. Department of Transportation, Office of Inspector General, in connection with the investigation of this matter. Mr. Ferrer would also like to recognize the assistance provided by the Broward County Office of the County Attorney, the Broward County Professional Standards Section, the Federal Highway Administration, the Florida Department of Transportation, and the employees of the Broward County Traffic Engineering Division. The cases are being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
Attachments:
Complaint (PDF)
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.
Consultant for the Florida Department of Transportation Charged with Accepting A BribeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Marlies T. Gonzalez, Special Agent in Charge, U.S. Department of Transportation, Office of Inspector General, announce the filing of an Information charging defendant Ron Capobianco, Jr., 40, of Pompano Beach, FL, with committing bribery in connection with programs receiving federal funds, in violation of Title 18, United States Code, Section 666.
According to the Information, Capobianco, Jr. worked as a construction engineering and inspection consultant at Metric Engineering, Inc., (Metric), which specialized in the transportation industry. The Florida Department of Transportation (FDOT) contracted with Metric to provide many services, including designing, inspecting, and troubleshooting the construction of roads, signs, and traffic signals. Capobianco, Jr. was assigned as the FDOT District 4 Signalization and Lighting Liaison. As such, he acted as FDOT’s project manager for many signalization and lighting projects. Capobianco, Jr. had a team of employees that assisted him in supervising and inspecting contractors performing FDOT work. Because of his position and expertise, Capobianco, Jr. was consulted as an FDOT expert on certain aspects of signalization and lighting construction, including the use of video detection cameras for traffic signalization and control.
According to the Information, around 2009, FDOT began a road construction project along Highway 1 in the Florida Keys (the Marathon Key project), which was designed to improve traffic flow.
The Information alleges that Capobianco Jr. agreed to accept a bribe from a subcontractor working on this project. More specifically, the Information alleges that around May 2009, an agent of the subcontractor offered to pay Capobianco, Jr. $5,000 if the subcontractor could receive at least $25,000 for the installation of the video detection equipment. Capobianco, Jr. agreed to the subcontractor’s $25,000 estimate for the installation of the video detection devices, thus enabling the subcontractor to make a significant profit. The subcontractor’s estimate was approved and subsequently paid by the State of Florida after the installation of the video detection equipment. In or about May 2009, Capobianco, Jr. met with an agent of the subcontractor in Plantation, Florida and was paid $4,000 in cash for his assistance to the subcontractor on the Marathon Key project.
U.S. Attorney Wifredo A. Ferrer stated, “Corruption in the procurement process is unacceptable, especially when it affects programs receiving federal funds. It is crucial that businesses compete on a level playing field, without improper outside influences or the payment or receipt of bribes. The U.S. Attorney’s Office will continue to prosecute those who steal from programs receiving federal funds.”
“This investigation reveals how business is not to be conducted in the United States. The FBI is committed to investigating not just corrupt acts, but the individuals who are behind them,” said Michael B. Steinbach, Acting Special Agent in Charge of the FBI’s Miami Division. “We encourage anyone who may have information about corruption to come forward and report it. That information is critical to our work.”
“Individuals in positions of public trust are expected to work in an ethical manner,” said Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI). “Accepting a bribe corrupts the system, and IRS Criminal Investigation is committed to working with our law enforcement partners to enforce the law and hold individuals accountable who engage in this type of fraud.”
“The charges filed today are an example to all who would misuse their positions as caretakers of the public trust,” said Marlies T. Gonzalez, Regional Special Agent in Charge, U.S. DOT OIG. “We will continue to vigorously investigate and work with our law enforcement and prosecutorial colleagues to see that those who violate the public trust are punished to the fullest extent of the law.”
Defendant Capobianco, Jr. made his initial appearance in federal court this morning before U.S. Magistrate Judge Barry Seltzer.
If convicted of the charges in the Information, defendant Capobianco, Jr. faces a statutory maximum term of imprisonment of up to 10 years.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, and the U.S. Department of Transportation, Office of Inspector General, in connection with the investigation of this matter. The case is being prosecuted by Assistant U.S. Attorneys Jeffrey N. Kaplan.
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.
Two Sentenced for Transportation and Attempted Sale of Stolen Matisse PaintingRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced today’s sentencing of Pedro Antonio Marcuello Guzman, 46, of Miami, Florida, and Maria Martha Elisa Ornelas Lazo, 50, of Mexico City, Mexico, on charges relating to the July 17, 2012 interstate transportation and attempted sale of the stolen Henri Matisse painting, “Odalisque in Red Pants,” in Miami Beach, Florida.
At today’s hearing, U.S. District Judge Donald M. Middlebrooks sentenced Pedro Marcuello to 33 months in prison, to be followed by three years of supervised release. Maria Ornelas was sentenced to 21 months in prison, to be followed by three years supervised release. The defendants pled guilty on October 30, 2012 to charges relating to the transportation, possession and attempted sale of the stolen Henri Matisse painting.
According to court documents, between December 2011 and July 13, 2012, Marcuello, in a series of meetings with undercover agents of the FBI, negotiated the sale of an original Henri Matisse painting entitled “Odalisque in Red Pants,” which had been stolen from the Caracas Museum of Contemporary Art in Caracas, Venezuela, around December 2002. During these meetings, Marcuello agreed to sell the stolen painting to the undercover agents for approximately $740,000.00, and also agreed to have the painting transported by courier to the United States from Mexico, where the painting was stored. The courier was identified by Marcuello as co-defendant Ornelas. Thereafter, on July 16, 2012, Ornelas transported the stolen Matisse painting to Miami from Mexico City. According to court documents, the following day both Marcuello and Ornelas produced the Matisse painting titled “Odalisque in Red Pants” to undercover agents as part of the purported sales transaction. At the time of the purported sales transaction, both Marcuello and Ornelas knew the Matisse painting had been stolen.
Mr. Ferrer commended the investigative efforts of the FBI. Mr. Ferrer would also like to thank the FBI Legal Attaché in Caracas and Paris, the Department of Justice Office of International Affairs, and the Department of Justice Attaché in Paris. The case was prosecuted by Assistant U.S. Attorney Elisa Castrolugo.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Mortgage Title Agent Sentenced in Multi-Million Dollar Mortgage Fraud Scheme at Jade Apartment Complex in MiamiRead 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, Miami Field Office, announce that Raquel DeJesus Martinez of Miami-Dade County, who previously worked as a title agent, was sentenced today by U.S. District Judge Donald M. Middlebrooks to 24 months in prison, to be followed by 3 years of supervised release, in connection with a scheme to commit mortgage fraud at The Jade apartment complex on Brickell Bay Drive in Miami. In addition, she was ordered to pay restitution in the amount of $4,936,714.32. DeJesus Martinez is the eighth defendant to be sentenced in connection with the scheme.
According to statements in open court and court documents, the defendants engaged in a multi-million dollar mortgage fraud scheme using straw buyers to purchase residential properties at The Jade. As part of the scheme, the defendants submitted mortgage loan applications and supporting documents containing false information to lending institutions. The lending institutions relied on these documents to make mortgage loans to the straw buyers to purchase the residential properties. The defendants then prepared and submitted to the lenders, false HUD-1 statements. The defendants created a second version of the HUD-1 statements, listing the actual sales prices, which were provided to the seller. To conceal and perpetuate the fraud, the defendants made some payments to the condominium association and made some mortgage payments to the lenders to prevent foreclosure and continue to receive rental income for the units. The defendants thereafter diverted the mortgage fraud proceeds into shell companies for their personal use.
Previously, defendants Lilia Casal-Diaz, a real estate attorney, Andres Mendez, Sr. and his son, Andy Mendez, both real estate brokers, Josephine Santana, a mortgage broker, Jose Arnaldo Rosario, Jose Rafael Martinez, and Basilio Gomez, all of Miami-Dade County, were convicted for their roles in the mortgage fraud scheme.
Mr. Ferrer commended the investigative efforts of IRS-CID and the U.S. Secret Service. This case is being prosecuted by Assistant U.S. Attorney Jerrob Duffy.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Owner of Miami-Dade Wholesale Distributing Company Pleads Guilty to Tax Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), announced that defendant David Bradman, 54, of Miami, pled guilty today to one count of making a false U.S. Income Tax Returns for an S Corporation, Forms 1120S, in violation of Title 26 U.S.C § 7206(1) for the tax year 2005. Sentencing has been scheduled for April 1, 2013, at 3:30 p.m. before U.S. District Judge Joan Lenard.
According to statements made in court and documents filed in the case, Bradman was the sole owner and operator of Diplomat Trading, Inc., in Miami, Florida. The company was a wholesale distributor of consumer electronics that exported merchandise to Latin America. In 2000, a scheme was devised where defendant along with others set up a Panamanian corporation, CHF Electronics (CHF) and opened a bank account in the company’s name in Panama. Thereafter on October 20, 2002, a false note was created to make it appear as though Diplomat Trading had borrowed $6,301,008.16 from CHF Electronics. The note was signed by Bradman. Checks representing purported payments on this note were sent from Diplomat Trading to CHF Electronics. Bradman falsely and knowingly inflated the amounts listed as mortgages, notes and bonds payable, and the corresponding interest deductions, in his U.S. Income Tax Returns for his S Corporation, Forms 1120S, in the name of Diplomat Trading, Inc. Bradman created the illusion of a bona fide commercial business relationship between Diplomat Trading and CHF Electronics. In fact, however, Bradman controlled both Diplomat Trading and CHF Electronics, and knew that these two companies did not have a genuine commercial business relationship.
The indictment further alleges that Bradman used CHF Electronics to cycle money for his personal use. In 2005, Bradman had a second company, MDA Inversiones incorporated in Panama. Approximately $700,000 was moved from CHF’s bank account in Panama to a Panamanian bank account for MDA Inversiones. A majority of those funds were then wired to the United States so that Bradman could purchase 2 properties in Miami, Florida.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami Police Sergeant Convicted of Civil Rights Violations, Narcotics Distribution Conspiracy and Obstruction of JusticeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Manuel Orosa, Chief, City of Miami Police Department (MPD), announced the conviction of Raul Iglesias, 40, of Miami, Florida, a City of Miami Police sergeant, 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.
The defendant was found guilty by a jury after a two-week trial before United States District Judge Cecilia Altonaga. Sentencing has been scheduled for March 28, 2013. At sentencing, the defendant faces a maximum statutory sentence of up to 20 years in prison.
U.S. Attorney Wifredo Ferrer stated, “A law enforcement badge brings with it privileges and responsibilities. Although it bestows on the bearer the trust and respect of the community, the bearer is expected to preserve that trust through his actions: by following the law, doing what is right, and seeking to do justice. Sergeant Iglesias, unfortunately, did just the opposite: he broke the law by planting drugs on a private citizen, distributing drugs, obstructing justice, and making false statements. My office, and the honest and dedicated men and women in law enforcement, have zero tolerance for such corruption.”
“We are pleased with the conviction of Raul Iglesias because his actions not only violated the law, they also undermined the public’s trust in law enforcement,” said acting Special Agent in Charge Michael B. Steinbach of the Miami Division. "Iglesias was brought to justice in large part due to the dedication and commitment of the members of the Miami Area Corruption Task Force.”
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 was the result of a joint investigation by the City of Miami Police Department’s Internal Affairs Unit and the FBI’s Public Corruption Squad. Mr. Ferrer commended the investigative efforts of the FBI and the City of Miami Police Department. 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.
Brazilian Husband and Wife Plead Guilty in Florida to Human SmugglingRead the Press Release
Two Brazilian nationals pleaded guilty today in Miami to smuggling undocumented migrants to the United States for profit, 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 and U.S. Immigration and Customs Enforcement (ICE) Director John Morton.
Juliana Rose Tome-Froes, 36, and her husband, Fabio Rodrigues Froes, 49, pleaded guilty before U.S. District Court Judge Federico A. Moreno in the Southern District of Florida to six counts and two counts, respectively, of bringing and attempting to bring aliens to the United States for commercial advantage and private financial gain.
According to plea 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.
At sentencing, scheduled for March 21, 2013, Juliana Tome-Froes faces a maximum penalty of 15 years in prison and a $250,000 fine, and Fabio Froes faces a maximum penalty of 10 years in prison and a $250,000 fine.
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.
Two Mothers Sentenced to Prison Terms for Using Their Children in Staged Accident SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), and Jeff Atwater, Florida Chief Financial Officer, announced that Ana Ovando, 42, of West Palm Beach, was sentenced Friday, January 11, 2013, to 78 months in prison followed by three years of supervised release for her role in a staged accident fraud scheme. On October 25, 2012, a jury convicted Ovando of conspiring with others to commit mail fraud, in violation of Title 18, United States Code, Sections 1341 and 1349 as well as of 14 substantive counts of mail fraud, in violation of Title 18, United States Code, Section 1341. Ovando used her five children – aged between three and seventeen – during three staged accidents that occurred within twelve months.
On January 3, 2013, Janice Velez, 39, also of West Palm Beach, was sentenced to 24 months in prison followed by two years of supervised release for her role in the same staged accident fraud scheme. Velez pled guilty on October 24, 2012 to conspiring with others to commit mail fraud, in violation of Title 18, United States Code, Sections 1341 and 1349, as well as to 8 substantive counts of mail fraud, in violation of Title 18, United States Code, Section 1341. Velez used her two children during one staged accident.
According to court documents and evidence presented at trial, under Florida’s “No Fault” insurance law, insurers must provide Personal Injury Protection (PIP) coverage of $10,000 per person. Ovando and Velez and other co-conspirators unlawfully enriched themselves by submitting fraudulent PIP claims for chiropractic and massage therapy treatments for themselves and their children. Ovando and Velez made false claims that both themselves and their children received chiropractic and massage therapy services that they neither needed nor received over a several month period. Ovando took her children to New York Medical and Rehab Center and Velez took her children to Karow Chiropractic Center, both located in West Palm Beach. There, massage therapists admitted that these patients signed blank treatment sheets that the massage therapists later completed and submitted to the insurance company for reimbursement.
Ovando and Velez are the latest federal defendants to be sentenced in the investigation known as Operation Sledgehammer. To date, a total of 26 defendants have been charged, resulting in 22 federal convictions. Four defendants are fugitives who have fled the United States.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CID, and the Florida Department of Insurance Fraud. Mr. Ferrer also thanked the National Insurance Crime Bureau (NICB) for its assistance in this investigation, as well as the members of the Greater Palm Beach Health Care Fraud Task Force. The case is being prosecuted by Assistant U.S. Attorney A. Marie Villafaña.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
California Man Sentenced to 34 Years in Prison for Traveling to the Dominican Republic and Sexually Abusing Minor BoysRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, announce that defendant Troy Douglas Brimm, 50, of Modesto, California, was sentenced on Thursday, January 10, 2013, to 34 years in prison, followed by a life term of supervised release for traveling from the United States to the Dominican Republic and engaging in illicit sexual conduct with minors.
On August 29, 2012, a jury convicted the defendant of two counts of traveling from the United States to Puerto Plata, Dominican Republic, to engage in illicit sexual conduct with minor boys, and committing the offense while required to be registered as a previously convicted sex offender under the federal Sex Offender Registration and Notification Act and California law.
According to trial evidence, on October 23, 1991, Brimm was convicted of sodomy with a 16-year old boy in Stanislaus County, California. On January 21, 1997, Brimm was convicted of receipt and distribution of material involving the sexual exploitation of minors in the United States District Court for the Eastern District of California. On July 18, 2001, Brimm was convicted of performing lewd and lascivious acts with a child under fourteen (14) years old, again in Stanislaus County, California. Brimm was required to register as a sex offender as a result of these prior convictions.
Evidence at trial also showed, that on October 20, 2009, Brimm flew to the Dominican Republic, where he sought out shoe-shine boys, offered them food and money, and then performed sex acts with these boys.
Mr. Ferrer commended the investigative efforts of ICE-HSI, the Dominican National Police, and the Puerto Plata Prosecutor’s Office. Mr. Ferrer also thanked the Miami-Dade Police Department and the United States Marshal’s Service for their assistance in this investigation. The case was prosecuted by Assistant U.S. Attorneys Maria Medetis and Francis Viamontes.
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 Lauderdale Man Sentenced to Life for Sex Trafficking of MinorsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Franklin C. Adderly, Chief of Police, Fort Lauderdale Police Department, announced yesterday’s sentencing of Van Lawson Williams, 49, of Fort Lauderdale, on charges of sex trafficking and attempted sex trafficking of minors, in violation of Title 18, United States Code, Section 1591(a). At the sentencing hearing, U.S. District Judge Daniel T.K. Hurley sentenced Williams to life in prison.
On October 30, 2012, a jury found defendant Williams guilty of four counts of sex trafficking of minors and one count of attempted sex trafficking of minors. At trial, six victims, all runaways at the time they met Williams, testified that they worked or were recruited to work as prostitutes at Williams’ residence. According to the trial evidence, Williams sought out minor female runaways in his neighborhood and invited them to stay with him at his Fort Lauderdale residence, promising them food and shelter. Williams would then convince the girls to work as prostitutes, telling them that they could not stay for free but rather had to earn money to pay the bills. The victims testified that on most occasions, they were required to give Williams the money they collected for their prostitution services. Several of the victims testified that Williams provided them with illegal narcotics, including marijuana and crack cocaine, and that he engaged in or attempted to engage in sexual activity with them.
At the sentencing hearing, one of the victims read a letter she had written to the Court, describing the shame she still feels every day when she looks in the mirror. Another victim, only 12 when she was prostituted by Williams, wrote a letter to the Court in which she described the damage that she had suffered as a result of Williams’ actions, and wrote of her dream to one day meet and marry a sweet man.
Mr. Ferrer commended the investigative efforts of the FBI and the Fort Lauderdale Police Department. The case is being prosecuted by Assistant U.S. Attorneys Mark Dispoto and Corey Steinberg.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Canadian Citizen Sentenced in Scheme to Defraud Consumers Purchasing Pharmaceuticals OnlineRead the Press Release
Former Owner of Online Pharmacy Sentenced to 48 Months in Prison
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Stuart F. Delery, Principal Deputy Assistant Attorney General of the Justice Department’s Civil Division, and David W. Bourne, Special Agent in Charge, Food and Drug Administration’s Office of Criminal Investigations (FDA-OCI), Miami Field Office, announced today’s sentencing of Andrew J. Strempler, of Canada. At today’s hearing, U.S. District Judge Jose E. Martinez sentenced Strempler to 48 months in prison for his role in a scheme to defraud consumers purchasing pharmaceuticals online. Strempler was also ordered to pay a forfeiture of $300,000. A hearing to determine the amount of restitution has been scheduled for February 26, 2013.
In October 2012, Strempler pleaded guilty to conspiracy to commit mail fraud in connection with his role as owner and president of Mediplan Health Consulting Inc., a Canadian company that also operated under the name RxNorth.com. RxNorth was an Internet, mail and telephone order pharmacy, through which Strempler and others marketed and sold prescription drugs to residents of the United States.
According to court documents, the FDA advised Strempler in a 2001 letter that his prescription drug sales would be illegal in the United States if the drugs were not FDA approved. The FDA letter explained that the FDA approves drugs based on evidence that they are safe and effective, and that the quality of drugs from foreign sources could not be assured.
Strempler and his co-conspirators unlawfully enriched themselves by selling prescription drugs to individuals in the United States, falsely representing that RxNorth was selling safe prescription drugs in compliance with regulations in Canada, the United Kingdom and the United States. Strempler obtained the prescription drugs from various other source countries without properly ensuring the safety or authenticity of the drugs. In fact, some of the drugs sold by Strempler included counterfeit drugs.
Strempler caused prescription drugs from foreign countries to be shipped to a facility that Strempler operated in the Bahamas. Prescription orders made through RxNorth were then filled at the Bahamas facility, with labels on the vials and drug cartons stating they had been filled by RxNorth in Canada. Strempler then used indirect routes involving multiple countries to ship packages with prescription drugs from the Bahamas to individuals in the United States. Shipments mailed from the Bahamas, containing packages addressed to individuals in the Southern District of Florida, included counterfeit prescription drugs.
“Counterfeit prescription drugs sold through the internet pose a serious health hazard to consumers in the United States,” said Wifredo A. Ferrer, I.S. Attorney for the Southern District of Florida. “These drugs can be adulterated, ineffective and unsafe. The U.S. Attorney’s Office is committed to assisting the FDA enforce regulations to protect American consumers from these unsafe drugs.”
“Today’s sentencing should send a clear message to anyone who operates an online pharmacy that sidesteps the FDA protections and defrauds consumers,” said Principal Deputy Assistant Attorney General Stuart F. Delery of the Justice Department’s Civil Division. “Consumers need to be aware that prescription drugs purchased online may be counterfeit, substandard, or unsafe.”
“FDA’s Office of Criminal Investigations, working in concert with the United States Attorney’s Office and other foreign and domestic government agencies, will protect the public health by aggressively targeting those responsible for counterfeiting prescription drugs,” said David W. Bourne, Special Agent in Charge of the FDA-OCI’s Miami Field Office. “This case highlights that even when complex criminal networks engage in such illegal activities on a global scale from a foreign-based location, without regard for risk to human life, they are still held accountable for their actions in the United States. We commend the United States Attorney’s Office in Miami and our international law enforcement partners for their tireless efforts in connection with the investigation and subsequent prosecution of this case.”
Mr. Ferrer thanked the FDA-OCI for its work in this investigation. This case was prosecuted by Assistant U.S. Attorney Ana Maria Martinez of the U.S. Attorney’s Office for the Southern District of Florida, Roger J. Gural of the Justice Department’s Consumer Protection Branch, and Nathan Sabel of the FDA’s Office of Chief Counsel. To learn more about safely buying medicines over the Internet, consumers should consult FDA’s BeSafeRX campaign at www.fda.gov/Drugs/ResourcesForYou/Consumers/BuyingUsingMedicineSafely/BuyingMedicinesOvertheInternet/default.htm
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
South Florida Woman Pleads Guilty to Failing to Disclose Income from Swiss Bank Accounts and Agrees to $21 Million PenaltyRead the Press Release
Mary Estelle Curran of Palm Beach, Fla., pleaded guilty today in the U.S. District Court for the Southern District of Florida to filing false tax returns for tax years 2006 and 2007, the Justice Department and Internal Revenue Service, Criminal Investigation (IRS-CI) announced.
According to court documents, Curran, a U.S. citizen, maintained undeclared bank accounts at UBS AG in Switzerland and a bank in Liechtenstein, which she inherited from her husband in 2000. The accounts at UBS AG were held in the names of nominee foreign entities, including the Flognet Foundation and Norega Investment. The account earned income each year, which Curran failed to report on her 2001 through 2007 individual income tax returns.
According to the plea agreement, Curran’s conduct caused a tax loss to the government of approximately $667,716. The value of all undeclared foreign financial accounts owned or controlled by Curran exceeded $42 million in 2007. In order to resolve her civil liability for failure to report her foreign bank accounts, Curran has agreed to pay a civil penalty in the amount of 50 percent of the high balance of the accounts, which is $21,666,929.
“U.S. citizens who seek to avoid their tax obligations by hiding income in undeclared bank accounts abroad should by now be fully on notice that they will be held accountable for their actions, both civilly and criminally,” said U.S. Attorney for the Southern District of Florida Wifredo A. Ferrer. “The U.S. Attorney’s Office is committed to helping the IRS enforce our nation’s tax laws.”
“The Justice Department continues to pursue those who hide income and assets from the IRS through the use of nominee businesses and offshore bank accounts,” said Assistant Attorney General Keneally. “U.S. taxpayers who fail to come forward in the voluntary disclosure program risk prosecution and substantial fines, as this case demonstrates.”
“Offshore accounts can no longer be used to hide from the IRS and avoid paying the fair amount of tax,” said Richard Weber, Chief, IRS Criminal Investigation. “IRS Criminal Investigation is aggressively pursuing tax cheats – both domestically and internationally. We owe it to every American taxpayer to use all lawful means to identify and prosecute both those who evade their taxes and those who assist them in evading their tax obligations.”
Curran faces a potential maximum prison term of six years. A sentencing date has not been set.
U.S. Attorney Ferrer and Assistant Attorney General Keneally thanked Special Agents of IRS - CI, who investigated the case, and Tax Division Senior Litigation Counsel Mark F. Daly and Trial Attorney Michelle M. Petersen and Assistant U.S. Attorney Thomas P. Lanigan, who prosecuted the case.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Palm Beach County Man Sentenced for Producing Child PornographyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Acting Special Agent in Charge, Federal Bureau of Investigation, announced yesterday’s sentencing of defendant Frank Joseph Smith, of Palm Beach County, on charges of producing child pornography, in violation of 18 U.S.C. Section 2251(a). At today’s hearing, U.S. District Judge Donald M. Middlebrooks sentenced Smith to 240 months in prison.
During an investigation into a website advertising escort services, the FBI and other law enforcement officers executed a search warrant at Smith’s residence. The search resulted in the seizure of computers, phones, documents and records. In addition, law enforcement agents discovered images of child pornography that Smith had produced using his Apple iPhone.
Mr. Ferrer commended the investigative efforts of the Federal Bureau of Investigation and the Jupiter Police Department. The case was prosecuted by Assistant United States Attorney Lothrop Morris.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Defendant Sentenced to 15 Years in Prison for $39 Million Mortgage Fraud Scheme; Another Defendant Pleads GuiltyRead the Press Release
To Date, Five Defendants Have Pled Guilty in Scheme
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Steve Linick, Inspector General, Federal Housing Finance Agency, Office of Inspector General, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Al Lamberti, Sheriff, Broward Sheriff’s Office, announce yesterday’s sentencing of defendant Juan Carlos Sanchez, of New York, N.Y. Sanchez was sentenced to 15 years in prison, to be followed by 3 years of supervised release for his participation in a $39 million mortgage fraud scheme. Sanchez previously pled guilty to count one of the indictment, which charged him with conspiracy to commit mail and wire fraud.
Sanchez was originally indicted with seven other defendants, Case No. 12-60088-CR-Williams, for fraudulently obtaining mortgages for the purchase of condominium units at Marina Oaks Condominiums in Fort Lauderdale, FL. The other defendants were: Quelyory Rigal, a/k/a “Kelly,” of Homestead, FL, Sandra P. Campo, of Colombia, Osbelia Lazardi, of Southwest Ranches, FL, Dayanara Montero, of Miramar, FL, Edward R. Mena, of Miami, FL, Celeste Mota, of Fort Myers, FL, and David Arboleda, of Doral, FL.
Defendant Campo pled guilty on January 3, 2013, to count one of the indictment, which charged her with conspiracy to commit mail and wire fraud. Sentencing is scheduled for March 13, 2013, at 10:00 am before U.S. District Judge William J. Zloch.
Defendant Mena pled guilty in October 2012, and sentencing is scheduled for January 11, 2013, at 10:00 am before U.S. District Judge William J. Zloch.
Defendants Mota and Arboleda pled guilty in September 2012. Defendant Mota was sentenced on November 28, 2012 to 5 years of probation. Defendant Arboleda was sentenced on December 12, 2012 to 30 months in prison, to be followed by 3 years of supervised release.
According to the indictment and statements made in court, from January 2007 through November 2008, the defendants conspired to recruit individuals who would be willing to purchase condominium units at Marina Oaks Condominiums. These buyers were promised a “buyers’ incentive,” which payment was not disclosed to the lenders or reflected on any of the closing documents. The conspirators would then prepare materially false mortgage applications for the buyers on HUD Uniform Loan Application Form 1003. These forms contained false information regarding the borrowers’ credit worthiness in order to qualify the borrowers for mortgages to purchase the Marina Oaks Condominiums. The conspirators would also create false documents to support the mortgage applications. Once the loans closed, the conspirators would divert portions of the mortgage proceeds for their personal use and benefit. In this way, the conspirators obtained approximately $39 million in fraudulent mortgage loans.
Mr. Ferrer commended the investigative efforts of the Federal Housing Finance Agency Office of the Inspector General, IRS-CI and the Broward Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Thomas P. Lanigan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.