Southern District of Florida

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, announce that defendant Troy Douglas Brimm, 50, of Modesto, California, was sentenced on Thursday, January 10, 2013, to 34 years in prison, followed by a life term of supervised release for traveling from the United States to the Dominican Republic and engaging in illicit sexual conduct with minors.

On August 29, 2012, a jury convicted the defendant of two counts of traveling from the United States to Puerto Plata, Dominican Republic, to engage in illicit sexual conduct with minor boys, and committing the offense while required to be registered as a previously convicted sex offender under the federal Sex Offender Registration and Notification Act and California law.

According to trial evidence, on October 23, 1991, Brimm was convicted of sodomy with a 16-year old boy in Stanislaus County, California. On January 21, 1997, Brimm was convicted of receipt and distribution of material involving the sexual exploitation of minors in the United States District Court for the Eastern District of California. On July 18, 2001, Brimm was convicted of performing lewd and lascivious acts with a child under fourteen (14) years old, again in Stanislaus County, California. Brimm was required to register as a sex offender as a result of these prior convictions.

Evidence at trial also showed, that on October 20, 2009, Brimm flew to the Dominican Republic, where he sought out shoe-shine boys, offered them food and money, and then performed sex acts with these boys.

Mr. Ferrer commended the investigative efforts of ICE-HSI, the Dominican National Police, and the Puerto Plata Prosecutor’s Office. Mr. Ferrer also thanked the Miami-Dade Police Department and the United States Marshal’s Service for their assistance in this investigation. The case was prosecuted by Assistant U.S. Attorneys Maria Medetis and Francis Viamontes.

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Franklin C. Adderly, Chief of Police, Fort Lauderdale Police Department, announced yesterday’s sentencing of Van Lawson Williams, 49, of Fort Lauderdale, on charges of sex trafficking and attempted sex trafficking of minors, in violation of Title 18, United States Code, Section 1591(a). At the sentencing hearing, U.S. District Judge Daniel T.K. Hurley sentenced Williams to life in prison.

On October 30, 2012, a jury found defendant Williams guilty of four counts of sex trafficking of minors and one count of attempted sex trafficking of minors. At trial, six victims, all runaways at the time they met Williams, testified that they worked or were recruited to work as prostitutes at Williams’ residence. According to the trial evidence, Williams sought out minor female runaways in his neighborhood and invited them to stay with him at his Fort Lauderdale residence, promising them food and shelter. Williams would then convince the girls to work as prostitutes, telling them that they could not stay for free but rather had to earn money to pay the bills. The victims testified that on most occasions, they were required to give Williams the money they collected for their prostitution services. Several of the victims testified that Williams provided them with illegal narcotics, including marijuana and crack cocaine, and that he engaged in or attempted to engage in sexual activity with them.

At the sentencing hearing, one of the victims read a letter she had written to the Court, describing the shame she still feels every day when she looks in the mirror. Another victim, only 12 when she was prostituted by Williams, wrote a letter to the Court in which she described the damage that she had suffered as a result of Williams’ actions, and wrote of her dream to one day meet and marry a sweet man.

Mr. Ferrer commended the investigative efforts of the FBI and the Fort Lauderdale Police Department. The case is being prosecuted by Assistant U.S. Attorneys Mark Dispoto and Corey Steinberg.

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

Former Owner of Online Pharmacy Sentenced to 48 Months in Prison

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Stuart F. Delery, Principal Deputy Assistant Attorney General of the Justice Department’s Civil Division, and David W. Bourne, Special Agent in Charge, Food and Drug Administration’s Office of Criminal Investigations (FDA-OCI), Miami Field Office, announced today’s sentencing of Andrew J. Strempler, of Canada. At today’s hearing, U.S. District Judge Jose E. Martinez sentenced Strempler to 48 months in prison for his role in a scheme to defraud consumers purchasing pharmaceuticals online. Strempler was also ordered to pay a forfeiture of $300,000. A hearing to determine the amount of restitution has been scheduled for February 26, 2013.

In October 2012, Strempler pleaded guilty to conspiracy to commit mail fraud in connection with his role as owner and president of Mediplan Health Consulting Inc., a Canadian company that also operated under the name RxNorth.com. RxNorth was an Internet, mail and telephone order pharmacy, through which Strempler and others marketed and sold prescription drugs to residents of the United States.

According to court documents, the FDA advised Strempler in a 2001 letter that his prescription drug sales would be illegal in the United States if the drugs were not FDA approved. The FDA letter explained that the FDA approves drugs based on evidence that they are safe and effective, and that the quality of drugs from foreign sources could not be assured.

Strempler and his co-conspirators unlawfully enriched themselves by selling prescription drugs to individuals in the United States, falsely representing that RxNorth was selling safe prescription drugs in compliance with regulations in Canada, the United Kingdom and the United States. Strempler obtained the prescription drugs from various other source countries without properly ensuring the safety or authenticity of the drugs. In fact, some of the drugs sold by Strempler included counterfeit drugs.

Strempler caused prescription drugs from foreign countries to be shipped to a facility that Strempler operated in the Bahamas. Prescription orders made through RxNorth were then filled at the Bahamas facility, with labels on the vials and drug cartons stating they had been filled by RxNorth in Canada. Strempler then used indirect routes involving multiple countries to ship packages with prescription drugs from the Bahamas to individuals in the United States. Shipments mailed from the Bahamas, containing packages addressed to individuals in the Southern District of Florida, included counterfeit prescription drugs.

“Counterfeit prescription drugs sold through the internet pose a serious health hazard to consumers in the United States,” said Wifredo A. Ferrer, I.S. Attorney for the Southern District of Florida. “These drugs can be adulterated, ineffective and unsafe. The U.S. Attorney’s Office is committed to assisting the FDA enforce regulations to protect American consumers from these unsafe drugs.”

“Today’s sentencing should send a clear message to anyone who operates an online pharmacy that sidesteps the FDA protections and defrauds consumers,” said Principal Deputy Assistant Attorney General Stuart F. Delery of the Justice Department’s Civil Division. “Consumers need to be aware that prescription drugs purchased online may be counterfeit, substandard, or unsafe.”

“FDA’s Office of Criminal Investigations, working in concert with the United States Attorney’s Office and other foreign and domestic government agencies, will protect the public health by aggressively targeting those responsible for counterfeiting prescription drugs,” said David W. Bourne, Special Agent in Charge of the FDA-OCI’s Miami Field Office. “This case highlights that even when complex criminal networks engage in such illegal activities on a global scale from a foreign-based location, without regard for risk to human life, they are still held accountable for their actions in the United States. We commend the United States Attorney’s Office in Miami and our international law enforcement partners for their tireless efforts in connection with the investigation and subsequent prosecution of this case.”

Mr. Ferrer thanked the FDA-OCI for its work in this investigation. This case was prosecuted by Assistant U.S. Attorney Ana Maria Martinez of the U.S. Attorney’s Office for the Southern District of Florida, Roger J. Gural of the Justice Department’s Consumer Protection Branch, and Nathan Sabel of the FDA’s Office of Chief Counsel. To learn more about safely buying medicines over the Internet, consumers should consult FDA’s BeSafeRX campaign at www.fda.gov/Drugs/ResourcesForYou/Consumers/BuyingUsingMedicineSafely/BuyingMedicinesOvertheInternet/default.htm

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

Mary Estelle Curran of Palm Beach, Fla., pleaded guilty today in the U.S. District Court for the Southern District of Florida to filing false tax returns for tax years 2006 and 2007, the Justice Department and Internal Revenue Service, Criminal Investigation (IRS-CI) announced.

According to court documents, Curran, a U.S. citizen, maintained undeclared bank accounts at UBS AG in Switzerland and a bank in Liechtenstein, which she inherited from her husband in 2000. The accounts at UBS AG were held in the names of nominee foreign entities, including the Flognet Foundation and Norega Investment. The account earned income each year, which Curran failed to report on her 2001 through 2007 individual income tax returns.

According to the plea agreement, Curran’s conduct caused a tax loss to the government of approximately $667,716. The value of all undeclared foreign financial accounts owned or controlled by Curran exceeded $42 million in 2007. In order to resolve her civil liability for failure to report her foreign bank accounts, Curran has agreed to pay a civil penalty in the amount of 50 percent of the high balance of the accounts, which is $21,666,929.

“U.S. citizens who seek to avoid their tax obligations by hiding income in undeclared bank accounts abroad should by now be fully on notice that they will be held accountable for their actions, both civilly and criminally,” said U.S. Attorney for the Southern District of Florida Wifredo A. Ferrer. “The U.S. Attorney’s Office is committed to helping the IRS enforce our nation’s tax laws.”

“The Justice Department continues to pursue those who hide income and assets from the IRS through the use of nominee businesses and offshore bank accounts,” said Assistant Attorney General Keneally. “U.S. taxpayers who fail to come forward in the voluntary disclosure program risk prosecution and substantial fines, as this case demonstrates.”

“Offshore accounts can no longer be used to hide from the IRS and avoid paying the fair amount of tax,” said Richard Weber, Chief, IRS Criminal Investigation. “IRS Criminal Investigation is aggressively pursuing tax cheats – both domestically and internationally. We owe it to every American taxpayer to use all lawful means to identify and prosecute both those who evade their taxes and those who assist them in evading their tax obligations.”

Curran faces a potential maximum prison term of six years. A sentencing date has not been set.

U.S. Attorney Ferrer and Assistant Attorney General Keneally thanked Special Agents of IRS - CI, who investigated the case, and Tax Division Senior Litigation Counsel Mark F. Daly and Trial Attorney Michelle M. Petersen and Assistant U.S. Attorney Thomas P. Lanigan, who prosecuted the case.

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Acting Special Agent in Charge, Federal Bureau of Investigation, announced yesterday’s sentencing of defendant Frank Joseph Smith, of Palm Beach County, on charges of producing child pornography, in violation of 18 U.S.C. Section 2251(a). At today’s hearing, U.S. District Judge Donald M. Middlebrooks sentenced Smith to 240 months in prison.

During an investigation into a website advertising escort services, the FBI and other law enforcement officers executed a search warrant at Smith’s residence. The search resulted in the seizure of computers, phones, documents and records. In addition, law enforcement agents discovered images of child pornography that Smith had produced using his Apple iPhone.

Mr. Ferrer commended the investigative efforts of the Federal Bureau of Investigation and the Jupiter Police Department. The case was prosecuted by Assistant United States Attorney Lothrop Morris.

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

To Date, Five Defendants Have Pled Guilty in Scheme

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Steve Linick, Inspector General, Federal Housing Finance Agency, Office of Inspector General, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Al Lamberti, Sheriff, Broward Sheriff’s Office, announce yesterday’s sentencing of defendant Juan Carlos Sanchez, of New York, N.Y. Sanchez was sentenced to 15 years in prison, to be followed by 3 years of supervised release for his participation in a $39 million mortgage fraud scheme. Sanchez previously pled guilty to count one of the indictment, which charged him with conspiracy to commit mail and wire fraud.

Sanchez was originally indicted with seven other defendants, Case No. 12-60088-CR-Williams, for fraudulently obtaining mortgages for the purchase of condominium units at Marina Oaks Condominiums in Fort Lauderdale, FL. The other defendants were: Quelyory Rigal, a/k/a “Kelly,” of Homestead, FL, Sandra P. Campo, of Colombia, Osbelia Lazardi, of Southwest Ranches, FL, Dayanara Montero, of Miramar, FL, Edward R. Mena, of Miami, FL, Celeste Mota, of Fort Myers, FL, and David Arboleda, of Doral, FL.

Defendant Campo pled guilty on January 3, 2013, to count one of the indictment, which charged her with conspiracy to commit mail and wire fraud. Sentencing is scheduled for March 13, 2013, at 10:00 am before U.S. District Judge William J. Zloch.

Defendant Mena pled guilty in October 2012, and sentencing is scheduled for January 11, 2013, at 10:00 am before U.S. District Judge William J. Zloch.

Defendants Mota and Arboleda pled guilty in September 2012. Defendant Mota was sentenced on November 28, 2012 to 5 years of probation. Defendant Arboleda was sentenced on December 12, 2012 to 30 months in prison, to be followed by 3 years of supervised release.

According to the indictment and statements made in court, from January 2007 through November 2008, the defendants conspired to recruit individuals who would be willing to purchase condominium units at Marina Oaks Condominiums. These buyers were promised a “buyers’ incentive,” which payment was not disclosed to the lenders or reflected on any of the closing documents. The conspirators would then prepare materially false mortgage applications for the buyers on HUD Uniform Loan Application Form 1003. These forms contained false information regarding the borrowers’ credit worthiness in order to qualify the borrowers for mortgages to purchase the Marina Oaks Condominiums. The conspirators would also create false documents to support the mortgage applications. Once the loans closed, the conspirators would divert portions of the mortgage proceeds for their personal use and benefit. In this way, the conspirators obtained approximately $39 million in fraudulent mortgage loans.

Mr. Ferrer commended the investigative efforts of the Federal Housing Finance Agency Office of the Inspector General, IRS-CI and the Broward Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Thomas P. Lanigan.

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