Southern District of Florida

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and the members of the South Florida Joint Terrorism Task Force (“JTTF”), announced today that a Miami federal jury today convicted Hafiz Muhammed Sher Ali Khan, 77, on all counts in the indictment charging him with providing material support to terrorists, including the Pakistani Taliban. According to public records, defendant Hafiz Khan was the Imam at the Miami Masjid in Miami, Florida. The indictment did not allege that the masjid participated in the defendant’s scheme.

More specifically, after two months of trial, the jury convicted Khan on charges of conspiring to provide, and providing, material support to a conspiracy to murder, maim and kidnap persons overseas, 18 U.S.C. ' 2339A, and conspiring to provide material support to a foreign terrorist organization, specifically, the Pakistani Taliban, 18 U.S.C. ' 2339B. Sentencing has been scheduled for May 30, 2013. At sentencing, the defendant faces up to 15 years’ imprisonment on each count.

U.S. Attorney Wifredo A. Ferrer stated, “Despite being an Imam, or spiritual leader, Hafiz Khan was by no means a man of peace. Instead, he acted with others to support terrorists to further acts of murder, kidnapping and maiming. But for law enforcement intervention, these defendants would have continued to transfer funds to Pakistan to finance the Pakistani Taliban, including its purchase of guns. Dismantling terrorist networks is a top priority for this Office and the Department of Justice.”

“Today, terrorists have lost another funding source to use against innocent people and U.S. interests,” said Michael B. Steinbach, Special Agent in Charge of FBI Miami. “We will not allow this country to be used as a base for funding terrorists. Individuals such as Hafiz Muhammed Sher Ali Khan, who support terror, represent a threat to our safety and provide an example of why the FBI’s number one priority is counterterrorism.”

The Pakistani Taliban, also known as Tehrik e Taliban Pakistan, Tehrik I Taliban, Tehrik-e-Taliban, and Tehreek e Taliban, is a Pakistan-based terrorist organization formed in or around December 2007 by an alliance of radical Islamist militants. On September 1, 2010, the United States Department of State formally designated the Pakistani Taliban as a Foreign Terrorist Organization, under Section 219 of the Immigration and Nationality Act.

According to the evidence at trial, Khan, with the help of persons in South Florida and Pakistan, sent money and other material support to Pakistani Taliban contacts and sympathizers overseas. The Pakistani Taliban’s objectives include resistance against the lawful Pakistani government, enforcement of strict Islamic law known as Sharia, and opposition to the United States and coalition armed forces fighting in neighboring Afghanistan. The Pakistani Taliban has committed numerous acts of violence in Pakistan and elsewhere, including suicide bombings which resulted in the death of civilians as well as Pakistani police, army, and government personnel, and also provided financing and training for the attempted bombing of New York City’s Times Square in May 2010.

According to the evidence at trial, Khan sought to aid the Pakistani Taliban’s fight against the Pakistani government and its perceived allies, including the United States, by supporting acts of murder, kidnapping, and maiming in Pakistan and elsewhere, in order to displace the lawful government of Pakistan and to establish Sharia. Khan transferred money from the United States to Pakistani Taliban supporters in Pakistan, primarily using bank accounts and wire transfer services in the United States and Pakistan. These funds were intended to purchase guns for the Pakistani Taliban, to sustain militants and their families, and generally to promote the Pakistani Taliban’s cause. Khan also solicited and collected money in the United States for that purpose, taking great care to conceal his activities. In one recorded conversation introduced as evidence at trial, Khan stated that money cannot be sent openly to the Pakistani Taliban, but must instead be sent covertly through its supporters. Khan also used a madrassa he founded in Pakistan (where he was born) to provide shelter and other support to Pakistani Taliban militants. In another recorded conversation introduced as evidence at trial, Khan claimed that children from his madrassa have gone to train to kill Americans in neighboring Afghanistan.

Mr. Ferrer commended the investigative efforts of the FBI, U.S. Customs and Border Protection, U.S. Department of State, Broward Sheriff’s Office, Miami-Dade Police, City of Miami Police, City of Miramar Police, City of Margate Police, and the Florida Department of Environmental Protection, and the members of the South Florida Joint Terrorism Task Force. The case is being prosecuted by Assistant U.S. Attorneys John Shipley, Sivashree Sundaram, and Michael Patrick Sullivan, from the U.S. Attorney’s Office for the Southern District of Florida, and Trial Attorney Bridget Behling from the Counterterrorism Section of the Justice Department’s National Security Division.

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), Miami Field Office, and Larry Gomer, Interim Chief, North Miami Beach Police Department (NMBPD), announce the sentencing of defendant Frantz Auguste, 53, of Sunny Isles, on one count of access device fraud and one count of aggravated identity theft in connection with an identity theft tax refund fraud scheme. U.S. District Judge Donald L. Graham sentenced Auguste to 45 months in prison, to be followed by one year of supervised release.

According to documents filed in Court, law enforcement searched Auguste’'s dry cleaning business in North Miami Beach on October 4, 2012, and found the following in a locked room for which Auguste had the only key:

• Handwritten notes and lists with the personal identification information, including names, dates of birth, and Social Security numbers, of approximately 100 individuals. Several of these lists appeared to have originated from a local nursing home and rehabilitation center.
• Multiple tax refund checks in different individuals’ names.
• Multiple tax returns in different individuals’ names.

Mr. Ferrer commended the investigative efforts of IRS-CID and the NMBPD for their work on the case. The case was prosecuted by Assistant U.S. Attorney Michael N. Berger.

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announced today announced that Josue Faustin, 20, of North Miami, pled guilty this morning to charges of possession of unauthorized access devices and aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(3) and 1028A(a)(1), (b), and (c)(4).

Sentencing has been scheduled for May 9, 2013, before U.S. District Judge Zloch. At sentencing, the defendant faces a maximum statutory sentence of up to 10 years in prison for the possession of unauthorized access devices charge, and a mandatory sentence of 2 years’ imprisonment on the aggravated identity theft charge.

According to documents filed and statements made in court, Faustin engaged in a scheme using stolen identities to file fraudulent tax returns. The tax returns falsely claimed refunds and requested that the refunds be direct-deposited into Netspend debit card accounts, which Faustin had opened in the names of unwitting identity theft victims. Faustin subsequently went to various ATM machines in Coral Springs, Broward County, and withdrew funds from the Netspend debit card accounts.

On May 17, 2012, Faustin was observed by a Coral Springs police officer as he went to various CVS and 7-11 stores and bought pre-paid credit cards. After the purchases, Faustin went to ATM machines and withdrew money. Faustin was pulled over for a traffic stop and was found to be in possession of $5,881 in cash (separated into numerous bundles), 3 cell phones, 15 Netspend debit cards, and 4 newly purchased debit cards.

Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Jennifer Keene.

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Claudio Eleazar Osorio, a/k/a “Claudio Osorio Rodriguez,” 54, of Aventura, pled guilty on February 28, 2013, before U.S. District Court Judge William Dimitrouleas. Osorio pled guilty to two counts of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, and one count of conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h).

Sentencing has been scheduled for May 9, 2013. At sentencing, Osorio faces a maximum possible statutory sentence of up to 20 years in prison on each of the wire fraud conspiracies and 10 years in prison on the conspiracy to commit money laundering.

According to documents filed with the court and statements made in court during the plea, Osorio was the owner and majority shareholder of Innovida Holdings, LLC, a Florida limited liability company, located in Miami Beach. Innovida manufactured fiber composite panels for the construction industry for use in residential, commercial, governmental, and other structures without the need for cement, steel or wood. Innovida purported to be a rapidly expanding and financially strong international operation with facilities in the United States, the United Arab Emirates, Germany, Angola, Tanzania, and other countries.

According to statements made in court, between March 2007 and March 2011, Osorio offered and sold shareholder interests and joint-venture partnerships in Innovida to select individuals and groups, raising more than $40,000,000 from approximately ten (10) investors and investment groups in the United States and abroad. Osorio solicited and recruited investors by making materially false representations and concealing and omitting material facts regarding, among other things, the profitability of the company, the rates of return on investment funds, the use of investors’ funds and the existence of a pending lucrative contract with a third-party entity. Osorio received moneys from investors based on these misrepresentations. Osorio used investor monies for his and his co-conspirators’ personal benefit and to maintain and further the fraud scheme.

According to statements made in court, the second conspiracy to commit wire fraud related to a $10,000,000 loan that Osorio and another applied for and obtained a from the Overseas Private Investment Corporation (“OPIC”), a U.S. government agency that promotes U.S. government investments abroad to foster the development and growth of free markets. The purported purpose of the loan was to build a manufacturing facility and 500 homes in Haiti (“the Haiti project”) for displaced families in the aftermath of the January 2010 earthquake. Osorio and others made materially false representations and omissions concerning, among other things, the profitability of Innovida, the purported use of the loan proceeds, an equity contribution to be made by Innovida, and contracts that Innovida purportedly had obtained with third-party vendors. Osorio used the OPIC loan proceeds to repay investors and for his and his co-conspirators’ personal benefit and to further the fraud scheme.

Mr. Ferrer commended the investigative efforts of the FBI. The case is being prosecuted by Assistant U.S. Attorney Lois Foster-Steers.

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE), Homeland Security Investigations (HSI), Miami Field Office, announced that Rohan Spicer, a Bahamian national, was arrested and charged for allegedly attempting to smuggle approximately $1.2 million to the Bahamas. A bond hearing has been scheduled for 10:00 a.m. Monday, March 4, 2013, before U.S. Magistrate Judge William Matthewman.

According to court documents, Spicer traveled from the Bahamas to the United States by boat, arriving on February 25. HSI agents observed Spicer transfer items from the rear of his sport utility vehicle onto the boat on February 27. Spicer completed a U.S. Customs and Border Protection Vessel Entrance or Clearance Statement in which he declared that he was transporting household goods and speakers. Subsequently, Spicer’s boat was interdicted and boarded approximately six nautical miles east of the Palm Beach Inlet, at which time Spicer advised the officers that he was enroute to Freeport, Grand Bahamas, and that he was in possession of approximately $20,000.00 in U.S. currency that he had failed to declare one hour earlier at the Port of Palm Beach.

A Customs and Palm Beach Sheriff’s Office (PBSO) search of the vessel and cargo lead to the discovery and seizure of approximately $1.2 million in cash, packaged in $50,000 bundles of various dominations. The cash was hidden within merchandise, stereo speakers, and luggage discovered aboard the vessel.

Mr. Ferrer commended the investigative efforts of the ICE-HSI, CBP Office of Air and Marine Operations, CBP/Office of Field Operations, CBP/U.S Border Patrol, PBSO, and the Village of Tequesta Police Department. The case is being prosecuted by Assistant U.S. Attorney Stephanie Evans.

A complaint is only an accusation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.

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

A former Michigan resident was found guilty by a federal jury today in Miami of child sex tourism charges, announced U.S. Attorney for the Southern District of Florida Wifredo A. Ferrer, Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, and Special Agent in Charge Alysa D. Erichs of the U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), Miami Office.

Matthew Andrew Carter, aka “William Charles Harcourt” and “Bill Carter,” 67, formerly of Brighton, Mich., was found guilty in the U.S. District Court for the Southern District of Florida of five counts of traveling in foreign commerce from the United States to Haiti for the purpose of engaging in illicit sexual conduct with children and one count of attempting to do so. Carter is scheduled to be sentenced in Miami, Florida on May 20, 2013, before the Honorable Joan A. Lenard. At sentencing, Carter faces a maximum sentence of 15 years in prison on one count and a maximum sentence of 30 years in prison for each of the other five counts.

U.S. Attorney Wifredo A. Ferrer said, “The sexual exploitation of children, wherever it occurs, is a heinous crime. In this case, a U.S. citizen travelled to Haiti and, over the course of 16 years, preyed on vulnerable children. The daily sexual abuse of the children in his care caused irreparable harm to the victims and their families. Although nothing will repair the damage done to them, we hope that today’s verdict brings a sense of justice and closure to these victims. This verdict is a warning to child predators that they cannot evade justice simply by travelling abroad to avoid detection and prosecution.”

“The unspeakable acts committed by Mr. Carter against his innocent victims brought agencies and countries together to make him face justice. I commend the jury who had to sit through weeks of horrific testimony,” said Alysa D Erichs ,Special Agent in Charge of HSI Miami. “Although nothing can be done to repair the damage done to these victims by Mr. Carter, perhaps this will provide some respite.”

According to court documents and evidence presented at trial, from 1995 to 2011, Carter resided at and operated the Morning Star Center near Port-au-Prince, Haiti, prior to his arrest on May 8, 2011. The Morning Star Center was a residential facility that provided shelter, food, clothing, and school tuition to Haitian children. The children who lived at the Morning Star Center were from impoverished families that could not feed them, send them to school, or otherwise support their children. The evidence at trial showed that Carter specifically targeted children in need and preyed on their vulnerability. Between 1995 and 2011, Carter frequently traveled between the United States and Haiti in order to raise funds from churches and donors for the continued operation of the Center. Carter sexually and physically abused the children in his care and custody at the Center during this period of time. According to court documents and evidence presented at trial, Carter used force to get these children to comply with his sexual demands and required the children to participate in sexual acts in order to receive food, remain at the Center and/or continue to receive school tuition payments.

At trial, 16 Haitian victims who resided at the Morning Star Center between 1995 and 2011 testified. Additionally, four witnesses testified that they were sexually abused by Carter in London during the 1970s. Carter previously was charged with and acquitted of charges related to the sexual abuse of children in London, Cairo, Egypt, and Winter Haven, Fla.

The case is being prosecuted by Assistant U.S. Attorney Maria K. Medetis of the Southern District of Florida and Child Exploitation and Obscenity Section Trial Attorney Bonnie L. Kane of the Criminal Division. The case against Carter was investigated by ICE-HSI in Miami, the ICE-HSI Assistant Attaché’s Office in Santo Domingo, Dominican Republic and the ICE-HSI Santo Domingo Transnational Criminal Investigative Unit. Substantial assistance was provided by the Haitian National Police Brigade for the Protection of Minors; Haitian Social Services; the Ministry of the Interior for Haiti; the Bureau of Diplomatic Security, Regional Security Office for the U.S. Embassy in Port-au-Prince, Haiti; the Consular Section of the U.S. Embassy in Port-au-Prince, Haiti; the London Metropolitan Police Service; the U.S. Secret Service Miami Field Office; the FBI’s Washington, Boston and Miami Field Offices; and the ICE-HSI Attaché’s Offices in London and Cairo.

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announced that, after a four-week trial before U.S. District Judge Kathleen M. Williams, a federal jury sitting in Miami convicted defendant Steven Steiner, a/k/a “Steven Steinger,” 60, on 19 of 54 counts, including conspiracy to commit money laundering offenses, money laundering, conspiracy to commit offenses against the United States, and various obstruction of justice offenses, relating to Steiner’s participation in a scheme to launder and conceal more than $15 million in proceeds derived from the Mutual Benefits Corporation (“MBC”) fraud, and Steiner’s obstruction of United States Securities and Exchange Commission (“SEC”), the court-appointed receiver for MBC, and the United States District Court, in their efforts to secure and recover assets traceable to the fraud. Co-defendant Henry Fecker, III was acquitted on all charges. Steiner is scheduled to be sentenced by Judge Williams on May 8, 2013.

According to the evidence presented at trial, from approximately 1994 to May 2004, MBC purchased life insurance policies from persons suffering from AIDS, chronically ill, and elderly persons. Having purchased the life insurance policies, MBC sold fractionalized interests in the death benefits, known as “viatical settlements,” to approximately 30,000 investors. In promotional materials, MBC told investors that its viatical settlements offered a fixed rate of return with low risk, and that investors’ principal and returns were paid by the insurance companies. Evidence at trial established that MBC misrepresented various material facts relating to its viatical settlements, including, for example, the estimated life expectancies of the insured persons, MBC’s title to certain life insurance policies, the risks associated with certain policies, the payment of premiums, and the source of funds used to pay investors. Witnesses testified that new investor money was used to pay premiums on life insurance policies purchased by earlier investors and to pay investors who requested their money back. The evidence established that as the fraud continued, investor money was required to prevent the MBC Ponzi-scheme from collapsing. Ultimately, investors lost more than $750 million.

Steiner was a founder, principal, and Vice President of MBC, and he received more than $15 million in proceeds from the MBC fraud through two shell corporations that he controlled, Camden Consulting, Inc., and SKS Consulting, Inc.

In May 2004, the SEC filed a civil enforcement action in the United States District Court for the Southern District of Florida, SEC v. Mutual Benefits Corp., et al., Case No. 04-60573-CIV-MORENO (the “SEC Fraud Action”), against MBC and various “relief defendants,” including Steiner’s shell corporations. On May 4, 2004, United States District Judge Federico A. Moreno entered an order appointing Coral Gables attorney Roberto Martinez as the receiver for MBC, with the mandate to identify, secure, trace, and recover the assets of MBC.

According to evidence presented at trial, the jury found that, following the closure of MBC and the appointment of the MBC receiver, Steiner engaged in money laundering transactions designed to conceal the source, location, ownership, and control of his proceeds from the MBC fraud. At the same time, Steiner acted to obstruct the SEC, the MBC receiver, and the United States District Court.

Evidence at trial also disclosed that in 2006 and early 2007, Steiner submitted false and misleading financial disclosure documents to the SEC to persuade the SEC to agree to a favorable settlement of the SEC claims against him and his shell corporations Camden Consulting and SKS Consulting, in the SEC Fraud Action. Based upon Steiner’s fraudulent financial disclosure, the SEC agreed to a reduced penalty of $3.9 million, and on April 10, 2007, the District Court entered a Final Judgment in the SEC Fraud Action ordering Steiner, SKS and Camden to pay $3.9 million to the court-appointed receiver for MBC. Evidence at trial established that Steiner acted to thwart the MBC receiver’s efforts to trace and recover MBC assets and recover on the final judgment. Among other things, Steiner repeatedly lied under oath during depositions and physically concealed documents, including checks representing proceeds from the MBC fraud.

Steiner is currently awaiting trial in two related cases in the Southern District of Florida. In United States v. Joel Steinger, et al., Case No. 08-21158-CR-Scola, Steiner and co-defendants Joel Steinger and Anthony Livoti are charged with conspiracy to commit mail and wire fraud and money laundering, in relation to the MBC fraud scheme. In United States v. Joel Steinger et al., Case No. 12-20123-CR-Rosenbaum, Steiner, Joel Steinger, and Henry Fecker III are charged with engaging in a multi-million dollar scheme to defraud insurance companies.

Mr. Ferrer commended the investigative efforts of the FBI and IRS-CI. This case is being prosecuted by Assistant U.S. Attorneys Jerrob Duffy and Dwayne E. Williams.

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

The owners and operators of two Miami health care agencies were sentenced to nine years and more than four years in prison today, respectively, and ordered to pay millions in restitution for their participation in a $48 million home health Medicare fraud scheme that billed for unnecessary home health care and therapy services.

The sentences, imposed in federal court in the Southern District of Florida, were announced by U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; Michael B. Steinbach, Special Agent in Charge of the FBI’s Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami Office.

U.S. District Judge Frederico A. Moreno sentenced Rogelio Rodriguez, 43, and Raymond Aday, 48, both of the Miami-Dade area, to 108 months and 51 months in prison, respectively. In addition to the prison term, Judge Moreno sentenced Rodriguez to pay $33 million in restitution, and Aday to pay $2.1 million in restitution. Both defendants were also sentenced to serve three years of supervised release and pay a $100,000 fine. In December 2012, each pleaded guilty to one count of conspiracy to commit health care fraud.

According to court documents, Rodriguez was the owner of both Caring Nurse Home Health Corp. and Good Quality Home Health Inc., and Aday was a manager at Caring Nurse and owner of Good Quality.

According to plea documents, Rodriguez and Aday conspired with patient recruiters for the purpose of billing the Medicare program for unnecessary home health care and therapy services. Rodriguez, Aday and their co-conspirators paid kickbacks and bribes to patient recruiters. In return, recruiters provided patients to Caring Nurse and Good Quality, as well as prescriptions, plans of care (POCs) and certifications for medically unnecessary therapy and home health services for Medicare beneficiaries. Rodriguez and Aday used these prescriptions, POCs and medical certifications to fraudulently bill the Medicare program for home health care services, which both Rodriguez and Aday knew was in violation of federal criminal laws.

According to court documents, nurses and office staff at Caring Nurse and Good Quality falsified patient files to make it appear the Medicare beneficiaries qualified for services they did not. Rodriguez admitted to knowing that these files were falsified so the Medicare program could be billed for medically unnecessary therapy and home health related services.

From approximately January 2006 through June 2011, Caring Nurse and Good Quality submitted approximately $48 million in claims for home health services that were not medically necessary and/or were not provided. According to court documents, Medicare paid approximately $33 million for these fraudulent claims.

This case is being prosecuted by Assistant Chief Joseph S. Beemsterboer of the Criminal Division’s Fraud Section. The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.

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

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Antonio J. Gomez, Acting Inspector in Charge, U.S. Postal Inspection Service, Miami Division, announce the sentencing of defendant Luis Enrique Ledee Bernard, a/k/a “Luis L. Bernard,” 21, of Miramar. Bernard was sentenced to 30 months in prison, to be followed by 3 years of supervised release. The defendant was also ordered to pay $22,000 in restitution. Bernard pled guilty on December 17, 2012 to one count of theft of government funds and one count of aggravated identity theft.

On October 9, 2012, the defendant was charged in a seventeen count indictment in connection with a scheme to obtain fraudulent tax return proceeds. According to the indictment, the defendant deposited nine (9) fraudulent tax refund checks that were fraudulently obtained by using the stolen personal identification information of at least (4) persons who were deceased. The proceeds from the nine fraudulent tax return refunds were direct-deposited into the defendant's bank account.

Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to the U.S. Postal Inspection Service and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Gera Peoples.

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

A former owner of mental health facilities in Florida and North Carolina was sentenced yesterday to serve 168 months in prison for his leadership role in a health care fraud scheme involving defunct health provider Health Care Solutions Network Inc. (HCSN), announced U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Assistant Attorney General Lanny A. Breuer of the Justice Department's Criminal Division; Michael B. Steinbach, Special Agent in Charge of the FBI's Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami Office.

Armando Gonzalez, 50, of Miami, was sentenced by U.S. District Judge Cecilia M. Altonaga in the Southern District of Florida. In addition to his prison term, Gonzalez was sentenced to serve three years of supervised release and ordered to pay 28,092,283 in restitution, which, under the terms of Gonzalez's plea agreement, will be satisfied in part by seized assets including $987,000 in currency seized in July 2012 and Gonzalez's mansion in Hendersonville, N.C.

On Dec. 17, 2012, Gonzalez pleaded guilty to one count of conspiracy to commit health care fraud and one count of conspiracy to commit money laundering.

According to court documents, HCSN operated community mental health centers at three locations in Miami-Dade County, Fla., and one location in Hendersonville. HCSN purported to provide partial hospitalization program (PHP) services to individuals suffering from mental illness. A PHP is a form of intensive treatment for severe mental illness. According to court documents, HCSN obtained Medicare beneficiaries to attend HCSN for purported PHP treatment that was unnecessary and, in many instances, not even provided.

Gonzalez orchestrated the HCSN fraud scheme, which centered on the recruitment and admission of patients who could not benefit from PHP services. In Miami, Gonzalez utilized patient recruiters to pay cash kickbacks in exchange for referrals from Assisted Living Facilities (ALF) patients who often suffered from conditions such as dementia and mental retardation. Once the unqualified patients were admitted to HCSN, Gonzalez's employees would fabricate virtually every portion of the patients' mental health medical records. The fake medical records were then utilized to support false billings to government sponsored health care benefit programs and to avoid detection by Medicare auditors.

In North Carolina, HCSN employees also routinely submitted false billing for patients watching movies, attending BBQs and, more commonly, patients who were not even present at the Miami and North Carolina facilities.

Gonzalez also admitted to his role in a money laundering scheme involving Psychiatric Consulting Network Inc. (PCN), a Florida corporation that was utilized by HCSN as a shell corporation to launder millions in health care fraud proceeds.

According to court documents, from 2004 through 2011, HCSN billed Medicare and the Florida Medicaid program approximately $63 million for purported mental health services that resulted in more than $28 million in payments.

Fifteen defendants have been charged for their alleged roles in the HCSN health care fraud scheme, and ten defendants have pleaded guilty. Alleged co-conspirators Wondera Eason and Paul Layman are scheduled for trial on March 11, 2013, before Judge Altonaga in Miami. Alleged co-conspirators Dr. Alina Feas, Dana Gonzalez and Lisset Palmero are scheduled for trial on June 3, 2013. Defendants are presumed innocent until proven guilty at trial.

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

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS's Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.

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

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announced that Mary Ann Richard, of Ft. Pierce, Florida, was sentenced today on charges of assisting and advising in the preparation and presentation of 16 fraudulent income tax returns to the IRS, in violation of Title 26, United States Code, Section 7206(2), and 2 counts of filing false personal income tax returns, in violation of Title 26, United States Code, Section 7206 (1). U.S. District Judge Donald L. Graham sentenced Richard to 42 months in prison, to be followed by 2 years of supervised release. In addition, the defendant was ordered to pay the United States $183,026.00 in restitution.

According to the Indictment and factual basis at the time of plea, from about January 2010 through April 2010, defendant Richard was employed by JB&L Tax Service, Inc, a tax return preparation business located in Fort Pierce, Florida. From July 2010 through March 2011, defendant Richard owned and operated M2 Financial Services, a tax return preparation business located in Fort Pierce, Florida. At these businesses, Richard met with taxpayers and prepared tax returns as either an employee of JB&L Tax Services, Inc., or as an owner and operator of M2 Financial Services. Richard then assisted in the preparation and presentation to the IRS of income tax returns, knowing that these returns contained materially false information. Specifically, Richard filed false tax returns for others which included false information regarding wages, business losses, dependents, education credits and child care expenses. Richard also filed false personal tax returns (Forms 1040) for tax years 2009 and 2010 which included false information regarding employer, wages, business expenses, and personal deductions.

Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Adam C. McMichael.

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

A co-owner and operator of three Miami discount pharmacies was sentenced today to 168 months in prison for his role in a health care fraud scheme that submitted more than $23 million in false claims to Medicare.

The sentence was announced by U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; Michael B. Steinbach, Special Agent in Charge of the FBI’s Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami Office.

Jose Carlos Morales, 55, of Miami, was sentenced by U.S. District Judge Joan A. Lenard in the Southern District of Florida. In addition to his prison term, Morales was sentenced to serve three years of supervised release and to pay a $100,000 fine. A hearing to determine the amount of restitution Morales will pay has been scheduled for April 29, 2013.

On Dec. 6, 2012, Morales pleaded guilty in the Southern District of Florida to one count of conspiracy to commit health care fraud and one count of conspiracy to defraud the United States and pay illegal health care kickbacks.

According to court documents, Morales was the co-owner of Pharmovisa Inc. and PharmovisaMD Inc., which operated a total of three pharmacies in Miami. Morales paid illegal health care kickbacks to co-conspirators in return for a stream of beneficiary information to be used to submit claims to Medicare and Medicaid. The beneficiaries who were referred to the pharmacies in exchange for kickback payments resided at assisted living facilities (ALFs) located in Miami. Morales and his alleged co-conspirators also paid illegal health care kickbacks to physicians in exchange for prescription referrals, which the pharmacies ultimately billed to Medicare.

Court documents also reveal that beginning in approximately 2007, drivers working for Morales’ pharmacies, at his direction, delivered “bingo cards” containing pop out medications to ALFs located throughout the Southern District of Florida. Morales instructed the drivers to pick up any unused “bingo cards” so that Morales pharmacy personnel could put the medications back into pill bottles. Unused and partially used medications were eventually re-billed to Medicare and Medicaid, and a majority of the previously submitted claims to Medicare and Medicaid were never reversed. Morales also instructed Morales pharmacy personnel to place unused and partially used medications into bottles to be sold directly to the general public from the “community” pharmacy shelves.

Morales and his alleged co-conspirators also engaged in sham financial transactions to facilitate and conceal the fraud schemes and the flow of fraud proceeds, according to court documents. In most instances, the sham transactions involved shell entities owned and/or controlled by Morales or his alleged co-conspirators.

According to court documents, Morales and his co-conspirators submitted and caused to be submitted approximately $23,367,755 in false and fraudulent claims to the Medicare and Florida Medicaid programs.

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

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers. To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, and Sean Baldwin, Chief, Fort Pierce Police Department (FPPD), announce the sentencing of Erica Gilmore-Grier, 35, of Fort Pierce, for embezzling more than $200,000 from her former employer, Policy Studies, Inc. (PSI), while working as a financial manager for the PSI Call Center in Fort Pierce, Florida. Margo Nickerson, 36, of Fort Pierce, Bridgette Galarza, 31, of Port St. Lucie, Chelsea Durham, 40, of Port St. Lucie, Jessica Harris, 22, of Fort Pierce, Jamile Williams, 34, of Fort Pierce and Venus Holloman, 26, of Fort Pierce, were also sentenced for their roles in the scheme. All of the defendants are St. Lucie County residents.

Gilmore-Grier was sentenced by the U.S. District Judge K. Michael Moore to 33 months’ imprisonment; Nickerson was sentenced to 30 months’ imprisonment; Harris was sentenced to 24 months’ imprisonment; Holloman was sentenced to 20 months’ imprisonment; Galarza was sentenced to 8 months’ imprisonment; Williams was sentenced to 4 months’ imprisonment; and Durham was sentenced to 4 months’ imprisonment and 4 months’ home detention. All of the defendants will be on supervised release after incarceration, and have been ordered to pay restitution.

From October 2008 to October 2011, PSI was a management company supporting federal and state governments in administering health and human services programs, such as health insurance for low income children, across the United States. One public program administered by PSI was Georgia PeachCare for Kids (GAPC), a children’s health insurance program providing affordable healthcare for children who are Georgia residents and who live in low-income households. PSI’s Fort Pierce Call Center administered the GAPC program. Gilmore-Grier worked as Finance Team Lead at PSI’s Fort Pierce Call Center. Gilmore-Grier was responsible for overseeing the resolution of financial issues on GAPC customer accounts and issuing refunds when customers overpaid their premiums.

From October 2008 to October 2011, Gilmore-Grier authorized fraudulent refund checks for her co-defendants and others, who were not GAPC clients and not entitled to refunds, by claiming that they were legitimate GAPC clients who had inadvertently overpaid their premiums. Based on Gilmore-Grier’s requests, PSI’s main office in Denver, Colorado, issued more than 64 checks to Gilmore-Grier’s friends and family throughout St. Lucie County. Holloman, Nickerson, Galarza, Durham, Harris and Williams were among the individuals who received and cashed checks and split the proceeds with Gilmore-Grier. Gilmore-Grier and others stole approximately $213,147.56 from PSI and GAPC through this scheme.

U.S. Attorney Wifredo Ferrer commended the investigative efforts of the Secret Service and the Fort Pierce Police Department. This case is being prosecuted by Assistant U.S. Attorney Shaniek Maynard.

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Division, announced that Santiago Gonzalez, of Coral Springs, Florida, pled guilty today to one count of attempted distribution of five kilograms or more of cocaine and one count of possession of a firearm in furtherance of a drug trafficking crime. Sentencing for Gonzalez, a former firefighter, has been scheduled for May 7, 2013 at 10:00 a.m. At sentencing, Gonzalez faces a maximum possible statutory penalty of up to life in prison for these charges.

As set forth in the plea agreement, law enforcement began investigating Gonzalez in August, 2012 about Gonzalez/s alleged participation in previous armed kidnappings and robberies. During the investigation, Gonzalez met with a confidential informant who was purporting to be a drug trafficker. At this meeting, Gonzalez offered to provide protective services for future drug transactions. Thereafter, Gonzalez provided “armed protection” on four different occasions: September 6, 2012, October 12, 2012, December 11, 2012, and January 24, 2013. After completing each transaction, Gonzalez was paid cash for his services.

Mr. Ferrer thanked the investigative efforts of ATF. He also thanked the Broward Sheriff’s Office, the Florida Department of Law Enforcement, the North Miami Beach Police Department, the Coral Springs Police Department, and the Metro Broward HIDTA Task Force. This case is being prosecuted by Assistant U.S. Attorney Courtney L. Coker.

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Paula Reid, Special Agent in Charge, U.S. Secret Service, Matthew Boyd, Chief, Miami Gardens Police Department, and Larry Gomer, Chief, North Miami Beach Police Department, announce that defendants Serge St-Vil, 61, of Miami, Muller Pierre, 62, of North Miami Beach, and Finshley Fanor, 34, of Lauderhill, pled guilty today for their participation in a stolen identity tax refund scheme that resulted in the submission of approximately $14 million in fraudulent refund claims.

St-Vil pled guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Sentencing for St-Vil is scheduled for May 17, 2013 at 8:30 a.m. before U.S. District Judge Robert N. Scola. At sentencing, the defendant faces a maximum possible statutory term of imprisonment of up to 22 years.

Pierre pled guilty to wire fraud, in violation of Title 18, United States Code, Section 1343. Sentencing for Pierre is scheduled for May 21, 2013 at 8:30 a.m. before Judge Scola. At sentencing, the defendant faces a maximum possible statutory term of imprisonment of up to 20 years.

Fanor pled guilty to conspiracy to defraud the government with respect to claims in violation of Title 18, United States Code, Section 286. Sentencing for Fanor is scheduled for May 22, 2013 at 8:30 a.m. before Judge Scola. At sentencing, the defendant faces a maximum possible statutory term of imprisonment of up to 10 years.

According to the plea documents filed with the court, in 2010, the defendants were involved in a scheme to file fraudulent and unauthorized tax returns seeking refunds. During the course of the scheme, more than 5,000 fraudulent and unauthorized returns were submitted to the IRS seeking over $14 million in refunds. Nearly all of these returns were submitted in the names of deceased persons. St-Vil was responsible for the filing of thousands of these returns using an Electronic Filing Identification Number obtained by Fanor.

Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to the IRS-CI, the U.S. Secret Service, the Miami Gardens Police Department, and the North Miami Beach Police Department. The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced that defendants Dontavious M. Blake, 32, and Tara Jo Moore, 26, both of Palm Beach County, were charged in a federal criminal complaint with sex trafficking of minors. Pre-trial detention hearings for Blake and Moore are scheduled for Tuesday, February 26, 2013.

More specifically, the complaint charges Blake and Moore with sex trafficking of children and conspiracy to commit sex trafficking of children, and inducing a minor to engage in commercial sex act, in violation of Title 18, United States Code, Sections 1591, 1594 and 2422, respectively. If convicted, Blake and Moore face a maximum possible statutory sentence of up to life in prison.

This case stemmed from an investigation into the production of child pornography. According to the allegations in the complaint affidavit, a victim revealed that she had engaged in prostitution in the summer of 2011, at the age of 15. The victim stated that she had worked in hotels in the Palm Beach County area and identified Blake and Moore as her pimp and his girlfriend. Blake would post online escort advertisements, with photographs of the victim, on Backpage.com listing a phone number belonging to him. Moore would allegedly answer the calls from clients and negotiate a price for prostitution services and schedule a “date.” Once the price had been agreed upon, Blake would contact the minor and drive her to location for the “date.” At the conclusion of the date, the victim would pay a portion of the proceeds to Blake, including payment for a portion of the cost of the hotel room.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

Mr. Ferrer commended the investigative efforts of the FBI. The case is being prosecuted by Assistant U.S. Attorney Lothrop Morris.

A complaint is only an accusation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.

Attachments: Complaint (PDF)

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced today that Justin Lamar Sternad, 35, was charged with having violated the Federal Election Campaign Act (Election Act) in connection with the 2012 Democratic Party primary election for Florida’s 26th Congressional District.

Defendant Sternad is expected to make his initial appearance in federal court before U.S. Magistrate Judge Alicia Otazo-Reyes on February 22, 2013 at 2:00 p.m.

The Criminal Information, filed earlier today, charges Sternad with engaging in a conspiracy to make false statements to the Federal Election Commission and to violate the contribution limits of the Federal Election Campaign Act (Count 1); making a false statement (Count 2); and accepting illegal campaign contributions (Count 3). If convicted, Sternad faces a maximum statutory term of imprisonment of up to five years and a fine up to $250,000 on each count.

U.S. Attorney Wifredo Ferrer stated, “The Election Act seeks to promote transparency in the campaign process and thereby increase accountability from our elected officials. Sternad, however, violated the Election Act and lied to conceal the true source of funds being used by his campaign. He sought to secretly provide and accept contributions in excess of the limits prescribed by law, using cash and third party checks to conceal the source and amount of contributions made to his campaign. He then compounded his crimes by filing false campaign reports to cover his trail. We are committed to promoting transparency and accountability from our elected officials and from those running for office. Our citizens deserve no less.”

“For citizens to have confidence in their government, they must be certain that their elected officials are fairly elected. We will not tolerate people who violate federal election law,” said Michael B. Steinbach, Special Agent in Charge of FBI Miami. “The South Florida community can be assured that public corruption will remain a top priority for the FBI.”

Mr. Ferrer commended the investigative efforts of the agents of the FBI for their hard work in this matter. The case is being prosecuted by Senior Litigation Counsel Thomas J. Mulvihill and Richard C. Pilger of the Public Integrity Section of the U.S. Department of Justice.

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

Attachments: Information (PDF)

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI) in Minneapolis, José A. Gonzalez, Special Agent in Charge, IRS-CI, Miami Field Office, Larry Gomer, Chief, North Miami Beach Police Department, and Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), announced that defendant Rodney Saintfleur, 28, was sentenced today to 159 months in prison, to be followed by three years of supervised release. Saintfleur pled guilty on November 27, 2012 to one count of conspiracy to submit fraudulent claims to the government, one count of access device fraud, and one count of aggravated identity theft.

According to the Information, the defendant and co-conspirators agreed on a plan to use stolen personal identifying information of others to file fraudulent tax returns seeking refunds. The defendant obtained documents that listed tens of thousands of names with corresponding dates of birth.

According to the factual proffer and statements made at sentencing, the defendant searched an online proprietary database and fraudulently obtained the Social Security numbers of more than 23,000 people whose names and dates of birth appeared on the documents in 2010 and 2011. The defendant provided these Social Security numbers to co-conspirators for an identity theft tax refund fraud scheme. Co-conspirators then filed fraudulent and unauthorized tax returns seeking refunds using the stolen personal identifying information provided by the defendant.

Mr. Ferrer commended the investigative efforts of IRS-CI, the North Miami Beach Police Department, and the Broward Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Paula A. Reid, Special Agent in Charge, U.S. Secret Service (USSS), Antonio J. Gomez, Acting Inspector in Charge, U.S. Postal Inspection Service (USPIS), and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced the filing of a criminal complaint charging defendant Frankie Jermaine Anderson, 40, of Miami, with conspiracy to defraud the United States, in violation of Title 18, United States Code, Section 371, theft of government money or property, in violation of Title 18, United States Code, Section 641, and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).

According to the affidavit filed in support of the criminal complaint, from about February through June 2012, a check casher in Perrine, Florida (J&S Taxes) cashed thousands of fraudulently obtained U.S. income tax refund checks worth over $12 million. The defendant allegedly provided the vast majority of these fraudulently obtained checks to the check casher for cashing. Proceeds from this fraud were then used by the defendant to purchase two separate homes—one for the defendant and one for the defendant’s mother (each valued at approximately $250,000). In addition, the defendant used the proceeds from the fraud to purchase a 2012 BMW 530i, a Porsche Cayenne, a 2012 Porsche Panamera, a 212 Cadillac CTS, a 2012 Jaguar XF, a 2013 BMW X6, a 2012 Jaguar XJ, and a 2013 Bentley GT Coupe. According to State of Florida employment records, the defendant has been unemployed since 2003.

According to the affidavit, on November 28, 2012, the defendant was arrested in possession of 35 U.S. Treasury checks totaling approximately $119,165.60, including at least one check issued in the name of a deceased person.

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

A criminal complaint is only an accusation and the defendant is presumed innocent until proven guilty.

Attachments: Complaint (PDF)

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Antonio J. Gomez, Acting Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Field Office, and Ric L. Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, announce the arrests of 30 individuals engaged in a massive drug conspiracy that trafficked drugs from Arizona to Florida. The defendants were arrested earlier today and are expected to make their initial appearances today in federal court before U.S. Magistrate Judge Dave Lee Brannon in West Palm Beach at 1:00 p.m.

Charged in the 12-count indictment are George Evans Bivins, Jr., a/k/a “Ziggy,” 30, of West Palm Beach, Antonio Markeith Beverly, a/k/a “Tony,” 29, of West Palm Beach, Daniel Emmanuel Torrez, 31, of Tucson, Arizona, Lavaris Reshard Bivins, a/k/a “Varis,” 22, of West Palm Beach, William Alvarenga, a/k/a “Chico,” 19, of Boynton Beach, Jessica Marie Arvizu, 30, of Tucson, Arizona, Michael Maxwell Barkley, a/k/a “Tater,” 38, of Lake Worth, Jerrick David Bartee, 30, of West Palm Beach, Kirk Douglas Bivins, a/k/a “Kirky,” 38, of Riviera Beach, Demetri Pernell Cobb, a/k/a “Meechi,” 23, of Lake Worth, Darren Duane Donnally, 39, of Palm Springs, Quatavious Carnell George, a/k/a “Jelly Boy,” 26, of Riviera Beach, Wellington Timothy Glinton, a/k/a “Timmy,” 20, of Lake Worth, Javaris Reshad Bartelmy, 24, of Boynton Beach, Ernest Andrew Holiday, a/k/a “Bam,” 30, of Riviera Beach, Jean Innocent, a/k/a “Barko,” 20, of Lake Worth, Demetrice Lemane Jones, 37, of Riviera Beach, Dominic Perry Lamare, 33, of Port St. Lucie, Patrick Jarrod Lowe, 24, of Lantana, Richard John Mercy, 30, of North Palm Beach, Frank Davis Moore, Jr., a/k/a “Bow Head,” “Bodeen,” 33, of Royal Palm Beach, Evens Pierre Louis, a/k/a “E-Bo,” 27, of Palm Springs, Theresa Lashai Razz, 28, of West Palm Beach, Lori Beth Mae Saccoman, 50, of West Palm Beach, Jeannot Saintelus, a/k/a “Jit,” 23, of Lake Worth, Calvin Leon Sirmans, Jr., a/k/a “CJ,” 28, of Lake Worth, Jamie Toby, 24, of Lake Worth, Monica Deloris Toby, 47, of Lantana, Eric Lanard Williams, a/k/a “Baby Boy,” 29, of Lantana, and David Lendell White, a/k/a “Popper,” 25, of Lake Worth.

U.S. Attorney Wifredo Ferrer stated, “Today, the streets of Lake Worth and the surrounding areas are just a little safer, thanks to the concerted efforts of the FBI, the U.S. Postal Inspection Service, and the Palm Beach Sheriff’s Office. Thanks to their hard work, we have removed more than two dozen drug traffickers from our streets.”

“Through the combined efforts of local and federal law enforcement, this massive drug trafficking conspiracy is out of business,” said Michael B. Steinbach, Special Agent in Charge of FBI Miami. “Drugs and the violent gangs that profit from them have a devastating effect on our communities and we will continue to work with our partners to make South Florida a safer place.”

Antonio J. Gomez, Acting Inspector in Charge for the U.S. Postal Inspection Service stated, “The U.S. Postal Inspection Service is proud to stand shoulder-to-shoulder with the U.S. Attorney’s Office and all of our law enforcement partners in making our communities safer by working to eradicate narcotics from the U.S. Mail stream.”

More specifically, the indictment, filed on February 7, 2013 and unsealed today, charges the defendants with conspiracy to possess with intent to distribute cocaine base and/or cocaine hydrochloride, and possession with intent to distribute cocaine base and/or cocaine hydrochloride, in violation of Title 21, United States Code, Sections 841(a)(1), and 846. If convicted, the defendants each face a mandatory-minimum sentence of 10 years in prison up to a statutory maximum term of life in prison.

According to statements made in court, this conspiracy involved multiple kilograms of cocaine hydrochloride that were shipped from Tucson, Arizona, to Palm Beach County for sale and distribution as both cocaine hydrochloride and cocaine base. Much of the cocaine was sold in and around the streets of Lake Worth, Florida.

Mr. Ferrer commended the investigative efforts of the FBI, the Palm Beach County Sheriff’s Office, and the U.S. Postal Inspection Service. This case is being prosecuted by Assistant U.S. Attorneys Rinku Tribuiani and Robert Waters.

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

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and J.D. Patterson, Director, Miami-Dade Police Department, announce that defendants Derrick Santiesteban, Yadira Santiesteban, and Raul Fabian Ramirez, Jr., all of Miami, pled guilty today before Magistrate Judge Edwin G. Torres. Sentencing for the defendants is scheduled for April 25, 2013 at 2:00 p.m. before U.S. District Judge K. Michael Moore.

Derrick Santiesteban pled guilty to Counts 1, 2 and 4 of the indictment. Count 1 charged him with conspiracy to possess one thousand (1,000) or more marijuana plants with the intent to distribute, in violation of Title 21, United States Code Section 841(a)(1), all in violation of Title 21, United States Code Section 846; Count 2 charged him with conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h); and Count 4, charged him with kidnapping, resulting in death, in violation of Title 18, United States Code, Section 1201(a)(1) and 2. At sentencing, the defendant faces a minimum mandatory term of 10 years in prison, and a maximum term of up to life imprisonment on Count 1; a maximum term of 20 years in prison on Count 2; and a mandatory term of life in prison for Count 4.

Yadira Santiesteban pled guilty to one count of conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956 (h). At sentencing, she faces a maximum possible statutory sentence of up to 20 years in prison.

Raul Fabian Ramirez pled guilty to Count 1 of the indictment charging him with conspiracy to possess 1,000 or more marijuana plants with the intent to distribute, in violation of Title 21, United States Code Section 841(a)(1), all in violation of Title 21, United States Code Section 846. At sentencing, the defendant faces a minimum mandatory sentence of 10 years in prison, and a possible maximum term of up to life in prison.

On February 4, 2013, Juan Felipe Castañeda, of Miami, pled guilty to Counts 1 and 3 of the indictment, charging him with conspiracy to possess with the intent to distribute marijuana, in violation of Title 21, U.S.C. Section 846; and with conspiracy to commit kidnapping, in violation of Title 18, U.S.C. Section 1201 (c). Sentencing is scheduled for April 25, 2013. At sentencing, the defendant faces a minimum imprisonment of 10 years and a maximum possible term of life in prison for Count 1, and a maximum term of up to life in prison for Count 3.

The other defendants charged in this case are Gilberto Santiesteban, Jr., of Miami, Norge Manduley, of Hialeah, Alexander Santiesteban, of Miami, Gilberto Santiesteban, Sr., of Miami, German Silvestro, of Miami, David Silva, of Miami, Francisco Javier Diaz, of Miami-Dade, Alejandro Pimentel, of Miami, Dayana Castellanos, of Miami, and Estrella J. Mijares, of Miami, Darvis Santiesteban, of Miami, and John Villalonga, of Miami-Dade, and are scheduled to go to trial on April 1, 2013.

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

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

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Neil DeSousa, United States Marshal, and Ric L. Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, announced that Ernesto Cedillo, 25, of Palm Springs, FL, was sentenced by U.S. District Judge Kenneth Ryskamp to 33 months in prison, to be followed by 30 years of supervised release following his guilty plea to the charge of failing to register under the Sex Offender Registration and Notification Act (SORNA), in violation of Title 18, U.S.C. § 2250(a).

According to court filings, Cedillo was convicted in Indiana for sexually molesting a 13-year old girl in July 2005. Cedillo pled guilty and was convicted and sentenced in February 2007 to six years in prison in Indiana for that charge, with four years of the sentence suspended. He was released in Indiana and then was found here in Florida in 2008 and sent back to Indiana because he failed to register as a sex offender in either state, pursuant to SORNA. Based upon the Indiana failure to register Cedillo was jailed in Indiana again. He was released in June 2011 and sometime after that he absconded. Indiana authorities did not know his whereabouts and he failed to register under SORNA in Indiana again.

Sometime between June 2011 and September of 2012, Cedillo relocated to Palm Beach County and again failed to register with local police and was arrested by the Palm Beach County Sheriff's Office on September 6, 2012. Following his arrest, Cedillo admitted to having fled Indiana without registering because he knew there were warrants out for him up there. He also admitted traveling to Florida and failing to register here, even though he knew he was required to do so under the law.

Mr. Ferrer commended the U.S. Marshal Service and the Palm Beach County Sheriff’s Office for their work on the case. This case is being prosecuted by Assistant U.S. Attorney Lauren Jorgensen.

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Richard L. Walker, Special Agent in Charge, U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, announced the unsealing of a 17-count indictment and the arrests of defendants Darryl Brice Payne, a/k/a Darryl “Mike D,” Payne, 47, of Sunrise, and Tianni Latrice Brown, f/k/a Tianni Latrice Wade, 31, of Lauderhill, Florida.

Payne and Brown are both charged in Count 1 with conspiracy to steal money, funds, property, and other assets of the International Longshoremen’s Association, AFL-CIO, Local Union No. 1526 (“ILA Local 1526”) in Fort Lauderdale, from March 2008 through August 2009. During this time, Payne was President of ILA Local 1526 and Brown was Payne’s Executive Assistant. Payne is also charged with ten counts (Counts 2-11) of theft of labor union assets, in violation of Title 29, United States Code, Section 501(c); one count (Count 12) of endeavoring to influence, obstruct or impede the due administration of justice, in violation of Title 18, United States Code, Section 1503; three counts of mail fraud (Counts 14-16), in violation of Title 18, United States Code, Section 1341; and making false statements (Count 17) in relation to a document required by the Employee Retirement Income Security Act of 1974 (“ERISA”) to be kept as part of an employee pension benefit plan, in violation of Title 18, United States Code, Section 1027. Brown is also charged with eight counts of theft of labor union assets (Counts 2-9), endeavoring to influence, obstruct or impede the due administration of justice (Count 12), and making false statements to Special Agents of the U.S. Department of Labor, Office of Labor Racketeering and Fraud Investigations (Count 13), in violation of Title 18, United States Code, Section 1001.

According to the indictment, Payne and Brown prepared and used false and altered documents to deceive union officials and obtain union funds purportedly to pay for legitimate assets, goods, services and travel expenses for the use of the union. In fact, however, those expenses covered the personal expenses of the defendants and others.

The indictment also alleges that Payne and Brown corruptly endeavored to obstruct he grand jury investigation by causing the production of false documents in response to a federal grand jury subpoena, and by withholding and failing to produce other documents that were required to be produced in response to a federal grand jury subpoena. The indictment also alleges that Brown made false statements to Special Agents of the Department of Labor’s Office of Labor Racketeering and Fraud Investigations, who were conducting the investigation.

Lastly, the indictment alleges that Payne engaged in a mail fraud scheme to deceive officials of the ILA Pension Fund by presenting a falsely altered U.S. Department of Labor document that made it appear as if he had received workers’ compensation for approximately four years (1991-1994). In fact, however, Payne had received workers’ compensation payments for only about four months in 1991. By using the falsely altered document, Payne was able to obtain one additional year credited to his time as a beneficiary of the ILA Pension Fund, which would enable him to obtain additional money to which he was not entitled upon his retirement. The indictment alleges that Payne’s use of the same altered document violated another statute prohibiting making false statements in relation to a document required by ERISA to be kept as part of the records of an employee pension benefit plan.

If convicted, the defendants face the following possible maximum statutory sentences: Counts 1-11, 13, and 17: up to five years in prison; Count 12: up to 10 years in prison; and Counts 14-16: up to 20 years in prison.

Mr. Ferrer commended the investigative efforts of the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations. The case is being prosecuted by Assistant U.S. Attorney William T. Shockley.

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

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

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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 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 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.

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.

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.

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.

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.

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.

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.

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.

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.

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.