Southern District of Florida

Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Antonio J. Gomez, Acting Inspector in Charge, U.S. Postal Inspection Service, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CI), J.D. Patterson, Acting Director, Miami-Dade Police Department, and Marc Elias Jr., Chief, North Miami Police Department, announce the sentence of Pikerson Mentor, 30, of Miami, to a life imprisonment. Saubnet Politesse, 24, was sentenced to 21 years imprisonment after pleading guilty to being Mentor’s getaway driver during the robbery resulting in U.S. Postal Service employee Bruce Parton’s death. Both sentences were imposed by U.S. District Court Judge Donald Graham.

Mentor had been previously convicted after a seven-day trial, during which approximately 40 witnesses were called. At the conclusion of that trial, the jury convicted Mentor of all fourteen counts of the Second Superseding Indictment, which included the murder of a federal government employee while in the course of his duties, in violation of Title 18, United States Code, Sections 1114 and 111; car-jacking, in violation of Title 18, United States Code, Section 2119; theft of a key for a U.S. Postal Service mail receptacle, in violation of Title 18, United States Code, Section 1704; use of a firearm in the commission of a crime of violence, in violation of Title 18, United States Code, Section 924(j); conspiracy to commit and commission of access device fraud, in violation of Title 18, United States Code, 371 and 1029(a)(2); and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.

U.S. Attorney Wifredo A. Ferrer stated, “The sentences imposed today on the defendants for the ruthless murder of Bruce Parton, a hard-working and dedicated mail carrier, should send a clear message to our community: there are lifelong consequences to senseless acts of violence. I hope that the life imprisonment sentence of Pikerson Mentor, and 21 years imprisonment sentence of Saubnet Politesse, will bring some comfort and sense of justice to Mr. Parton’s family.”

Antonio J. Gomez, Acting Inspector in Charge for U.S. Postal Inspection Service stated, “Today’s sentencing is the result of the U.S. Postal Inspection Service working diligently with law enforcement partners to make sure that U.S. Postal Service employees are protected.”

“The death of U.S. Postal Service employee Bruce Parton is an absolute tragedy, and individuals who commit crimes of this magnitude deserve to be punished to the fullest extent of the law,” said Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI). “Faced with the unique circumstances of this case, IRS Criminal Investigation along with our law enforcement partners and the United States Attorney's Office were committed to investigating and prosecuting these individuals who chose personal monetary gain over the value of another human being's life.”

“We hope that the family of Mr. Parton has found some justice with today’s sentencing. We are grateful for the cooperation and dedication of all the agencies that lead to the successful arrests and prosecution of the case,” said J.D. Patterson, Acting Director of the Miami-Dade Police Department.

North Miami Police Department Chief Marc Elias, Jr. stated, “The North Miami Police Department is proud to have worked in partnership with the United States Postal Inspection Service and our Federal and Local law enforcement agencies in bringing the murderers of Bruce Parton of the U.S. Postal Services to justice. This is another example of law enforcement agencies collaborating to remove armed and dangerous subjects from the streets of South Florida.”

According to trial evidence, U.S. Postal Service letter carrier Bruce Parton was murdered on December 6, 2010 as he delivered mail to the Monte Carlo apartment complex in northwest Miami. Mentor and his accomplices stole the victim’s U.S Postal master key, called an Arrow Key, and the keys to the victim’s postal truck. Postal keys are used by letter carriers to access mailboxes. Witnesses testified that they heard two shots at the scene, and an eyewitness testified that she saw the defendant fleeing the apartment complex in the victim’s stolen truck. In addition, Saubnet Politesse, a co-conspirator who testified regarding his role in the conspiracy, confirmed that Mentor had shot the victim mail carrier. In addition, witnesses explained how the defendants used the stolen master key to enter mailboxes to steal private financial and personal identification information and to intercept debit cards loaded with fraudulently obtained tax refunds.

During trial, North Miami Police detectives testified about the May 4, 2011, arrest of Saubnet Politesse for driving without a license. During that arrest, the officers discovered a unique looking key with an obliterated serial number. The serial number was subsequently restored and matched the serial number of the victim’s stolen master key. Upon being questioned by the police, Politesse described his, Mentor’s and another person’s participation in the December 6 robbery and murder. Thereafter, early in the morning of May 5, 2011, defendant Mentor was arrested.

Politesse pleaded guilty to charges related to his participation in the robbery/homicide as a getaway driver. Politesse testified as a government witness and was ultimately sentenced to 21 years’ imprisonment during the sentencing hearing immediately following Mentor’s sentence.

Mr. Ferrer commended the investigative efforts of the U.S. Postal Inspection Service, IRS-CI, Miami-Dade Police Department and the North Miami Police Department. This case is being prosecuted by Assistant U.S. Attorneys Anthony LaCosta and Roy Altman.

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

The owners of three Miami-area assisted living facilities and an affiliated psychologist were sentenced to prison yesterday in connection with a health care fraud scheme, involving now-defunct Miami-area health provider Health Care Solutions Network Inc. (HCSN), in which Medicare was billed for mental health treatments that were unnecessary or not provided.

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

U.S. District Judge Cecilia M. Altonaga sentenced Serena Joslin, 32, of Looneyville, W.Va., to 63 months in prison, following her previous guilty plea to conspiracy to commit health care fraud. Raymond Rivero, 55, Daniel Martinez, 46, and Ivon Perez, 50, all of Miami, were each sentenced to 28 months in prison. All three had previously pleaded guilty to conspiracy to violate the anti-kickback statute.

According to court documents, HCSN operated community mental health centers both in Miami and North Carolina, including partial hospitalization programs (PHP) – a form of intensive treatment for severe mental illness. HCSN obtained Medicare beneficiaries to attend HCSN for purported PHP treatment that was unnecessary and, in many instances, not provided.

In Miami, HCSN obtained beneficiaries by paying kickbacks to owners and operators of assisted living facilities (ALF) or by otherwise recruiting them from the facilities and from nursing homes. Rivero, Martinez and Perez admitted during their guilty pleas to referring Medicare beneficiaries to HCSN in exchange for cash bribes. Rivero, former owner of Miami-based God Is First ALF; Martinez, former owner of Homestead, Fla.-based Mi Renacer ALF; and Perez, former owner of Homestead-based Kayleen and Denis Care Corp., are no longer permitted to operate such facilities as a condition of their guilty pleas.

According to court documents, ALF residents referred to HCSN by Rivero, Martinez and Perez were not qualified to be placed in PHP and were only selected because they had Medicare or state of Florida Medicaid benefits. In some cases, ALF patients suffered from dementia, Alzheimer’s disease or mental retardation, or were otherwise unable to benefit from mental health services.

According to court documents, Joslin, a licensed psychologist, was hired by HCSN in North Carolina in April of 2010 as a clinical coordinator and later promoted to clinical director. In those roles, she conspired with other HCSN employees to fabricate medical documents to substantiate alleged PHP treatment that was medically unnecessary and, in many instances, not even provided to the beneficiaries. Joslin admitted that many of the HCSN patients were unqualified for the PHP program because they suffered from conditions such as mental retardation and dementia, and that she directed therapists to fabricate medical records to support HCSN’s fraudulent billing to the Medicare program. Joslin was also required to surrender her North Carolina license to provide mental health treatment as part of her plea agreement.

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

In addition to the prison terms, Judge Altonaga sentenced Joslin, Rivero, Martinez and Perez each to serve three years of supervised release, and ordered them to pay $4,464,728; $90,896; $76,358; and $89,245 in restitution, respectively.

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

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

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

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

A former Miami HIV infusion clinic director was sentenced yesterday to serve 70 months in prison for his role in a $26.2 million HIV infusion fraud scheme, announced U.S. Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Lanny Breuer of the Criminal Division, Acting Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office.

Enrique Gonzalez, 67, formerly of Miami, was sentenced by U.S. District Judge Cecilia M. Altonaga in the Southern District of Florida. In addition to his prison term, Judge Altonaga sentenced Gonzalez to serve three years of supervised release and ordered him to pay $17,590,896 in restitution to HHS.

On Nov. 13, 2012, Gonzalez pleaded guilty to one count of conspiracy to defraud the United States, to cause the submission of false claims, and to pay health care kickbacks, and one count of conspiracy to commit health care fraud.

Gonzalez admitted that between August 2002 and March 2004, he conspired with co-defendant Ronald Harris, a Miami physician, and alleged co-conspirators to operate Physicians Med-Care and Physicians Health (together the “Physicians Clinics”), two Miami HIV infusion clinics. According to court documents, the Physicians Clinics were owned and controlled by alleged co-conspirators Carlos Benitez and his brother Luis Benitez. The Physicians Clinics purported to specialize in treating patients with HIV, but were operated for the sole purpose of committing Medicare fraud, according to court documents. Gonzalez was a director of Physicians Med-Care and, at the direction of his co-conspirators, was responsible for the finances of the Physicians Clinics.

Gonzalez admitted that he agreed with his co-conspirators to handle the finances for the Physicians Clinics, moving the money paid by the Medicare program out of the Physicians Clinics’ accounts and into accounts owned and controlled by his co-conspirators. According to court documents, Harris signed blank checks that Gonzalez used to transfer funds to various Benitez-owned entities and others, as directed by his co-conspirators. In addition, Gonzalez agreed to provide cash to various co-conspirators at the Physicians Clinics to be used to pay bribes and kickbacks to the Medicare beneficiaries in return for those beneficiaries allowing the Physicians Clinics to bill the Medicare program for HIV infusion services that were not medically necessary and often not provided.

Gonzalez admitted that during his association with Physicians Med-Care, the clinic billed the Medicare program approximately $24.5 million in HIV infusion therapy claims, for which the clinic received $16.7 million in payments. Gonzalez also admitted that during his time with Physicians Health, the clinic billed Medicare approximately $1.7 million and received approximately $800,000 in payment from the Medicare program for fraudulent services.

Gonzalez was a fugitive from justice from the time of his indictment in 2008, until he was located and detained in Peru in late 2011. Gonzalez was extradited to the United States in July of 2012. Gonzalez’ daughter, Carmen Gonzalez, was indicted in a related case and is currently a fugitive.

Co-defendant Harris pleaded guilty on Aug. 26, 2008, to one count of conspiracy to defraud the United States, to cause the submission of false claims and to pay health care kickbacks; one count of conspiracy to commit health care fraud; and three counts of submitting false claims to the Medicare program. Harris pleaded guilty in connection with his role as the medical director for the Physicians Clinics. On Nov. 4, 2008, Harris was sentenced to serve 84 months in prison for his role in the scheme.

Carlos and Luis Benitez and Thomas McKenzie were charged separately with health care fraud and money laundering crimes in an indictment unsealed on June 11, 2008. According to the separate indictment, the defendants provided the money and staff necessary to open the Physicians Clinics, the Medicare patients that the clinics needed to bill the Medicare program and transportation for the HIV patients who visited the clinics. Carlos and Luis Benitez and McKenzie were charged for their role in committing approximately $109 million in HIV infusion fraud and money laundering through the Physicians Clinics and nine other HIV infusion clinics.

On Sept. 18, 2008, McKenzie pleaded guilty to one count of conspiracy to commit health care fraud and one count of submitting false claims to the Medicare program, and admitted to his role in a $119 million HIV infusion fraud scheme. On Dec. 18, 2008, McKenzie was sentenced to serve 14 years in prison.

Carlos and Luis Benitez are also fugitives. Anyone with information regarding the whereabouts of the fugitives is urged to contact HHS-OIG fugitive reporting phone line at 888-476-4453.

The defendants who have not been convicted are presumed innocent unless and until proven guilty.

The Physicians Med-Care and Physicians Health case is being prosecuted by Trial Attorney N. Nathan Dimock of the Criminal Division’s Fraud Section. The case was investigated by the FBI and the DHS Office of Inspector General.

The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. The Department also thanks the Peruvian National Police Interpol Unit for their assistance.

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

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

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Otha Easley, Acting Special Agent in Charge, NOAA Fisheries Office of Law Enforcement, Southeast Division, and Major Jeff Hubert, Regional Commander, South A Region, Florida Fish & Wildlife Conservation Commission (FWC), announced that Jason Cardinale, 41, pled guilty today to one count of making false statements to the NOAA Southeast Fisheries Science Center, in violation of Title 18, United States Code, Section 1001. Sentencing has been scheduled for April 4, 2013 before U.S. District Judge Donald M. Middlebrooks.

According to the allegations in the indictment and statements made in court, from about January 15, 2010 through February 24, 2012, Cardinale submitted false No Fishing Activity Reports to the NOAA Southeast Fisheries Science Center, potentially compromising the management of fisheries under NOAA’s jurisdiction.

U.S. Attorney Wifredo A. Ferrer stated, “The U.S. Attorney’s Office will continue to do its part to help protect our fragile eco-system, including our fisheries.”

“Falsely reporting data leaves fishery scientists with an incomplete picture of what is truly happening on the water, which can ultimately lead the entire industry to shorter seasons and weaker fish populations,” said Dr. Bonnie Ponwith, Director for NOAA Fisheries’ Southeast Fisheries Science Center. “We applaud those who understand the integral role they play in an effective fishery management process by taking the time to supply high-quality, timely data.”

Mr. Ferrer commended the investigative efforts of NOAA Office of Law Enforcement and FWC. This case is being prosecuted by Assistant U.S. Attorney Norman O. Hemming, III.

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Marlies T. Gonzalez, Special Agent in Charge, U.S. Department of Transportation, Office of Inspector General, announce the unsealing of a criminal complaint and the filing of an Information charging defendants Jihad El Eid, 53, formerly of Plantation, FL, and Wael El Eid, 45, formerly of Coral Springs, FL, and both currently residing in Lebanon, with bribery in connection with programs receiving federal funds, highway fraud, mail fraud, extortion under color of official right, and conspiracy to commit those offenses, in violation of Title 18, United States Code, Sections 666, 1020, 1341, 1349, 1951, and 371, respectively. Also charged are defendants Anthoneel Allen, 40, of Sunrise, FL, and James Hashim, 50, of Plantation, FL, for conspiracy to commit bribery in programs receiving federal funds, highway fraud, mail fraud, extortion under color of official right, tax fraud, Disadvantaged Business Enterprise fraud, all in violation of Title 18, United States Code, Sections 371. Defendants Allen and Hashim made their initial appearance in federal court this morning before U.S. Magistrate Judge Barry S. Seltzer. Both were released on a $100,000 personal surety bond. Jihad El Eid and Wael El Eid are believed to be out of the country and did not appear in court.

According to the criminal complaint and the Information, in 1998, Jihad El Eid was hired as the director of the Broward County Traffic Engineering Division (BCTED), which is responsible for constructing, repairing, and maintaining the traffic systems and signs on the roadways in Broward County. Defendant Allen owned Southeast Underground Utilities, Corp., (SUU), in Plantation, Florida, which was in the business of installing, repairing and maintaining street lights and traffic signals. Prior to 2005, SUU had no contracts with the Broward County government or any Broward County municipality. In or about 2005, Allen hired defendant Hashim as a vice president of SUU. Hashim was to work as an estimator and to help SUU obtain government contracts.

According to the criminal complaint and the Information, beginning in the fall of 2006 through 2010, at the request of Jihad El Eid, Allen and Hashim provided to Jihad El Eid more than $150,000 in cash, a 2003 Ford Taurus, and a job at SUU for Wael El Eid (a relative of Jihad El Eid). Allen and Hashim allegedly made these payments to curry favor with Jihad El Eid. In return, Jihad El Eid allegedly helped SUU obtain work on multi-million dollar projects initiated by the BCTED, including the Signalization and Street Light Installation (SSLI) contract, a contract to make installations and do repair work of the street lights and traffic equipment in Broward County; the Advanced Transportation Management System (ATMS Project), a federally-funded project, which required the contractor to install an integrated traffic control system which entailed laying hundreds of thousands of feet of underground cable and conduit in order to synchronize traffic flow within Broward County; and the Video Detection Contract (VDC), which required the contractor to install video detection cameras in various intersections in Broward County in order to improve traffic flow. Jihad El Eid also assisted SUU concerning billing, specification and inspection matters that resulted in SUU being overpaid by at least $3,000,000.

According to the Information, Allen and Hashim conspired to evade paying federal income and employment taxes on bonuses and payments on the purchase of Hashim’s $1.25 million house in Plantation, Florida. The charging documents also allege that Allen filed a fraudulent application on behalf of SUU to have SUU certified as a Disadvantaged Business Enterprise (DBE), which resulted in SUU being awarded awarded directly or as a subcontractor approximately 25 contracts from Broward County and other state, county and local governments in the State of Florida based on its fraudulently obtained DBE status, which entitled SUU to receive in excess of $10,000,000 in government contracts.

U.S. Attorney Wifredo A. Ferrer stated, “Corruption in the procurement process is unacceptable, especially when it affects programs receiving federal funds. It is crucial that businesses compete on a level playing field, without improper outside influences or the payment or receipt of bribes. The U.S. Attorney’s Office will continue to prosecute those who steal from programs receiving federal funds.”

“This investigation reveals how business is not to be conducted in the United States. The FBI is committed to investigating not just corrupt acts, but the individuals who are behind them,” said Michael B. Steinbach, Acting Special Agent in Charge of the FBI’s Miami Division. “We encourage anyone who may have information about corruption to come forward and report it. That information is critical to our work.”

“Individuals in positions of public trust are expected to work in an ethical manner,” said Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI). “Accepting a bribe corrupts the system, and IRS Criminal Investigation is committed to working with our law enforcement partners to enforce the law and hold individuals accountable who engage in this type of fraud.”

If convicted of the charges in the criminal complaint, defendants Jihad El Eid and Wael El Eid face a possible maximum statutory sentence of up to 20 years in prison. If convicted of the charges in the Information, defendants Allen and Hashim each face a possible statutory maximum sentence of up to five years in prison.

Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, and the U.S. Department of Transportation, Office of Inspector General, in connection with the investigation of this matter. Mr. Ferrer would also like to recognize the assistance provided by the Broward County Office of the County Attorney, the Broward County Professional Standards Section, the Federal Highway Administration, the Florida Department of Transportation, and the employees of the Broward County Traffic Engineering Division. The cases are being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.

Attachments: Complaint (PDF)
Information (PDF)

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Marlies T. Gonzalez, Special Agent in Charge, U.S. Department of Transportation, Office of Inspector General, announce the filing of an Information charging defendant Ron Capobianco, Jr., 40, of Pompano Beach, FL, with committing bribery in connection with programs receiving federal funds, in violation of Title 18, United States Code, Section 666.

According to the Information, Capobianco, Jr. worked as a construction engineering and inspection consultant at Metric Engineering, Inc., (Metric), which specialized in the transportation industry. The Florida Department of Transportation (FDOT) contracted with Metric to provide many services, including designing, inspecting, and troubleshooting the construction of roads, signs, and traffic signals. Capobianco, Jr. was assigned as the FDOT District 4 Signalization and Lighting Liaison. As such, he acted as FDOT’s project manager for many signalization and lighting projects. Capobianco, Jr. had a team of employees that assisted him in supervising and inspecting contractors performing FDOT work. Because of his position and expertise, Capobianco, Jr. was consulted as an FDOT expert on certain aspects of signalization and lighting construction, including the use of video detection cameras for traffic signalization and control.

According to the Information, around 2009, FDOT began a road construction project along Highway 1 in the Florida Keys (the Marathon Key project), which was designed to improve traffic flow.

The Information alleges that Capobianco Jr. agreed to accept a bribe from a subcontractor working on this project. More specifically, the Information alleges that around May 2009, an agent of the subcontractor offered to pay Capobianco, Jr. $5,000 if the subcontractor could receive at least $25,000 for the installation of the video detection equipment. Capobianco, Jr. agreed to the subcontractor’s $25,000 estimate for the installation of the video detection devices, thus enabling the subcontractor to make a significant profit. The subcontractor’s estimate was approved and subsequently paid by the State of Florida after the installation of the video detection equipment. In or about May 2009, Capobianco, Jr. met with an agent of the subcontractor in Plantation, Florida and was paid $4,000 in cash for his assistance to the subcontractor on the Marathon Key project.

U.S. Attorney Wifredo A. Ferrer stated, “Corruption in the procurement process is unacceptable, especially when it affects programs receiving federal funds. It is crucial that businesses compete on a level playing field, without improper outside influences or the payment or receipt of bribes. The U.S. Attorney’s Office will continue to prosecute those who steal from programs receiving federal funds.”

“This investigation reveals how business is not to be conducted in the United States. The FBI is committed to investigating not just corrupt acts, but the individuals who are behind them,” said Michael B. Steinbach, Acting Special Agent in Charge of the FBI’s Miami Division. “We encourage anyone who may have information about corruption to come forward and report it. That information is critical to our work.”

“Individuals in positions of public trust are expected to work in an ethical manner,” said Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI). “Accepting a bribe corrupts the system, and IRS Criminal Investigation is committed to working with our law enforcement partners to enforce the law and hold individuals accountable who engage in this type of fraud.”

“The charges filed today are an example to all who would misuse their positions as caretakers of the public trust,” said Marlies T. Gonzalez, Regional Special Agent in Charge, U.S. DOT OIG. “We will continue to vigorously investigate and work with our law enforcement and prosecutorial colleagues to see that those who violate the public trust are punished to the fullest extent of the law.”

Defendant Capobianco, Jr. made his initial appearance in federal court this morning before U.S. Magistrate Judge Barry Seltzer.

If convicted of the charges in the Information, defendant Capobianco, Jr. faces a statutory maximum term of imprisonment of up to 10 years.

Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, and the U.S. Department of Transportation, Office of Inspector General, in connection with the investigation of this matter. The case is being prosecuted by Assistant U.S. Attorneys Jeffrey N. Kaplan.

Attachments: Information (PDF)

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced today’s sentencing of Pedro Antonio Marcuello Guzman, 46, of Miami, Florida, and Maria Martha Elisa Ornelas Lazo, 50, of Mexico City, Mexico, on charges relating to the July 17, 2012 interstate transportation and attempted sale of the stolen Henri Matisse painting, “Odalisque in Red Pants,” in Miami Beach, Florida.

At today’s hearing, U.S. District Judge Donald M. Middlebrooks sentenced Pedro Marcuello to 33 months in prison, to be followed by three years of supervised release. Maria Ornelas was sentenced to 21 months in prison, to be followed by three years supervised release. The defendants pled guilty on October 30, 2012 to charges relating to the transportation, possession and attempted sale of the stolen Henri Matisse painting.

According to court documents, between December 2011 and July 13, 2012, Marcuello, in a series of meetings with undercover agents of the FBI, negotiated the sale of an original Henri Matisse painting entitled “Odalisque in Red Pants,” which had been stolen from the Caracas Museum of Contemporary Art in Caracas, Venezuela, around December 2002. During these meetings, Marcuello agreed to sell the stolen painting to the undercover agents for approximately $740,000.00, and also agreed to have the painting transported by courier to the United States from Mexico, where the painting was stored. The courier was identified by Marcuello as co-defendant Ornelas. Thereafter, on July 16, 2012, Ornelas transported the stolen Matisse painting to Miami from Mexico City. According to court documents, the following day both Marcuello and Ornelas produced the Matisse painting titled “Odalisque in Red Pants” to undercover agents as part of the purported sales transaction. At the time of the purported sales transaction, both Marcuello and Ornelas knew the Matisse painting had been stolen.

Mr. Ferrer commended the investigative efforts of the FBI. Mr. Ferrer would also like to thank the FBI Legal Attaché in Caracas and Paris, the Department of Justice Office of International Affairs, and the Department of Justice Attaché in Paris. The case was prosecuted by Assistant U.S. Attorney Elisa Castrolugo.

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), and Paula Reid, Special Agent in Charge, United States Secret Service, Miami Field Office, announce that Raquel DeJesus Martinez of Miami-Dade County, who previously worked as a title agent, was sentenced today by U.S. District Judge Donald M. Middlebrooks to 24 months in prison, to be followed by 3 years of supervised release, in connection with a scheme to commit mortgage fraud at The Jade apartment complex on Brickell Bay Drive in Miami. In addition, she was ordered to pay restitution in the amount of $4,936,714.32. DeJesus Martinez is the eighth defendant to be sentenced in connection with the scheme.

According to statements in open court and court documents, the defendants engaged in a multi-million dollar mortgage fraud scheme using straw buyers to purchase residential properties at The Jade. As part of the scheme, the defendants submitted mortgage loan applications and supporting documents containing false information to lending institutions. The lending institutions relied on these documents to make mortgage loans to the straw buyers to purchase the residential properties. The defendants then prepared and submitted to the lenders, false HUD-1 statements. The defendants created a second version of the HUD-1 statements, listing the actual sales prices, which were provided to the seller. To conceal and perpetuate the fraud, the defendants made some payments to the condominium association and made some mortgage payments to the lenders to prevent foreclosure and continue to receive rental income for the units. The defendants thereafter diverted the mortgage fraud proceeds into shell companies for their personal use.

Previously, defendants Lilia Casal-Diaz, a real estate attorney, Andres Mendez, Sr. and his son, Andy Mendez, both real estate brokers, Josephine Santana, a mortgage broker, Jose Arnaldo Rosario, Jose Rafael Martinez, and Basilio Gomez, all of Miami-Dade County, were convicted for their roles in the mortgage fraud scheme.

Mr. Ferrer commended the investigative efforts of IRS-CID and the U.S. Secret Service. This case is being prosecuted by Assistant U.S. Attorney Jerrob Duffy.

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), announced that defendant David Bradman, 54, of Miami, pled guilty today to one count of making a false U.S. Income Tax Returns for an S Corporation, Forms 1120S, in violation of Title 26 U.S.C § 7206(1) for the tax year 2005. Sentencing has been scheduled for April 1, 2013, at 3:30 p.m. before U.S. District Judge Joan Lenard.

According to statements made in court and documents filed in the case, Bradman was the sole owner and operator of Diplomat Trading, Inc., in Miami, Florida. The company was a wholesale distributor of consumer electronics that exported merchandise to Latin America. In 2000, a scheme was devised where defendant along with others set up a Panamanian corporation, CHF Electronics (CHF) and opened a bank account in the company’s name in Panama. Thereafter on October 20, 2002, a false note was created to make it appear as though Diplomat Trading had borrowed $6,301,008.16 from CHF Electronics. The note was signed by Bradman. Checks representing purported payments on this note were sent from Diplomat Trading to CHF Electronics. Bradman falsely and knowingly inflated the amounts listed as mortgages, notes and bonds payable, and the corresponding interest deductions, in his U.S. Income Tax Returns for his S Corporation, Forms 1120S, in the name of Diplomat Trading, Inc. Bradman created the illusion of a bona fide commercial business relationship between Diplomat Trading and CHF Electronics. In fact, however, Bradman controlled both Diplomat Trading and CHF Electronics, and knew that these two companies did not have a genuine commercial business relationship.

The indictment further alleges that Bradman used CHF Electronics to cycle money for his personal use. In 2005, Bradman had a second company, MDA Inversiones incorporated in Panama. Approximately $700,000 was moved from CHF’s bank account in Panama to a Panamanian bank account for MDA Inversiones. A majority of those funds were then wired to the United States so that Bradman could purchase 2 properties in Miami, Florida.

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Manuel Orosa, Chief, City of Miami Police Department (MPD), announced the conviction of Raul Iglesias, 40, of Miami, Florida, a City of Miami Police sergeant, on eight counts, including two civil rights violations, conspiracy to possess and possession with the intent to distribute cocaine and crack cocaine, obstruction of justice and making false official statements.

The defendant was found guilty by a jury after a two-week trial before United States District Judge Cecilia Altonaga. Sentencing has been scheduled for March 28, 2013. At sentencing, the defendant faces a maximum statutory sentence of up to 20 years in prison.

U.S. Attorney Wifredo Ferrer stated, “A law enforcement badge brings with it privileges and responsibilities. Although it bestows on the bearer the trust and respect of the community, the bearer is expected to preserve that trust through his actions: by following the law, doing what is right, and seeking to do justice. Sergeant Iglesias, unfortunately, did just the opposite: he broke the law by planting drugs on a private citizen, distributing drugs, obstructing justice, and making false statements. My office, and the honest and dedicated men and women in law enforcement, have zero tolerance for such corruption.”

“We are pleased with the conviction of Raul Iglesias because his actions not only violated the law, they also undermined the public’s trust in law enforcement,” said acting Special Agent in Charge Michael B. Steinbach of the Miami Division. "Iglesias was brought to justice in large part due to the dedication and commitment of the members of the Miami Area Corruption Task Force.”

According to the evidence presented at trial, Iglesias, in his capacity as a supervisor of an anti-narcotics unit in the City of Miami Police Department, planted cocaine on a subject, stole drugs and money from other subjects, obstructed justice and made false statements to federal investigators.

The prosecution was the result of a joint investigation by the City of Miami Police Department’s Internal Affairs Unit and the FBI’s Public Corruption Squad. Mr. Ferrer commended the investigative efforts of the FBI and the City of Miami Police Department. The case was prosecuted by Assistant U.S. Attorneys Ricardo Del Toro and Michael Berger.

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

Two Brazilian nationals pleaded guilty today in Miami to smuggling undocumented migrants to the United States for profit, announced U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Immigration and Customs Enforcement (ICE) Director John Morton.

Juliana Rose Tome-Froes, 36, and her husband, Fabio Rodrigues Froes, 49, pleaded guilty before U.S. District Court Judge Federico A. Moreno in the Southern District of Florida to six counts and two counts, respectively, of bringing and attempting to bring aliens to the United States for commercial advantage and private financial gain.

According to plea documents, from at least October 2008 until approximately September 2010, the defendants organized, operated and managed a human smuggling network that spanned from Brazil to France, England, The Bahamas and the United States. The defendants met with undocumented migrants and negotiated forms of payment to be smuggled into the United States. Before the undocumented migrants departed Brazil, the defendants instructed them to act like tourists and explained that the itinerary through Europe would support a tourist cover story. In exchange for approximately $16,000, Tome-Froes, with assistance from Froes, arranged air transportation from Brazil to Paris, then London and Nassau, Bahamas. Tome-Froes arranged the undocumented migrants’ lodging in Paris and Nassau, and then instructed them to fly to Freeport, Bahamas, where they waited for a boat to transport them to the United States. For the final leg into the United States, Tome-Froes coordinated with various individuals in South Florida to pilot a small boat to Freeport, which picked up the undocumented migrants and transported them to the United States.

At sentencing, scheduled for March 21, 2013, Juliana Tome-Froes faces a maximum penalty of 15 years in prison and a $250,000 fine, and Fabio Froes faces a maximum penalty of 10 years in prison and a $250,000 fine.

The case was prosecuted by Trial Attorney Jay Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section, and Assistant U.S. Attorney Marton Gyires of the Southern District of Florida.

The investigation was conducted by ICE Homeland Security Investigations in Miami.

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), and Jeff Atwater, Florida Chief Financial Officer, announced that Ana Ovando, 42, of West Palm Beach, was sentenced Friday, January 11, 2013, to 78 months in prison followed by three years of supervised release for her role in a staged accident fraud scheme. On October 25, 2012, a jury convicted Ovando of conspiring with others to commit mail fraud, in violation of Title 18, United States Code, Sections 1341 and 1349 as well as of 14 substantive counts of mail fraud, in violation of Title 18, United States Code, Section 1341. Ovando used her five children – aged between three and seventeen – during three staged accidents that occurred within twelve months.

On January 3, 2013, Janice Velez, 39, also of West Palm Beach, was sentenced to 24 months in prison followed by two years of supervised release for her role in the same staged accident fraud scheme. Velez pled guilty on October 24, 2012 to conspiring with others to commit mail fraud, in violation of Title 18, United States Code, Sections 1341 and 1349, as well as to 8 substantive counts of mail fraud, in violation of Title 18, United States Code, Section 1341. Velez used her two children during one staged accident.

According to court documents and evidence presented at trial, under Florida’s “No Fault” insurance law, insurers must provide Personal Injury Protection (PIP) coverage of $10,000 per person. Ovando and Velez and other co-conspirators unlawfully enriched themselves by submitting fraudulent PIP claims for chiropractic and massage therapy treatments for themselves and their children. Ovando and Velez made false claims that both themselves and their children received chiropractic and massage therapy services that they neither needed nor received over a several month period. Ovando took her children to New York Medical and Rehab Center and Velez took her children to Karow Chiropractic Center, both located in West Palm Beach. There, massage therapists admitted that these patients signed blank treatment sheets that the massage therapists later completed and submitted to the insurance company for reimbursement.

Ovando and Velez are the latest federal defendants to be sentenced in the investigation known as Operation Sledgehammer. To date, a total of 26 defendants have been charged, resulting in 22 federal convictions. Four defendants are fugitives who have fled the United States.

Mr. Ferrer commended the investigative efforts of the FBI, IRS-CID, and the Florida Department of Insurance Fraud. Mr. Ferrer also thanked the National Insurance Crime Bureau (NICB) for its assistance in this investigation, as well as the members of the Greater Palm Beach Health Care Fraud Task Force. The case is being prosecuted by Assistant U.S. Attorney A. Marie Villafaña.

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

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.