Middle District of Florida

Tampa, FL – The president and owner of a Florida pharmacy that was at the center of a massive compounding pharmacy fraud scheme, which impacted private insurance companies, Medicare and TRICARE, was sentenced today to 180 months in prison and ordered to pay $54 million in restitution for his role in the scheme.  Six other individuals have previously been sentenced in connection to the scheme, and another is scheduled to be sentenced on Monday, April 30.  Various real properties, cars and a 50-foot boat were forfeited as part of the sentencings. 

Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Maria Chapa Lopez of the Middle District of Florida, Special Agent in Charge Eric W. Sporre of the FBI’s Tampa Field Office, Special Agent in Charge Robert F. Lasky of the FBI’s Miami Field Office, Special Agent in Charge Shimon Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office and Special Agent in Charge John F. Khin of the U.S. Defense Criminal Investigative Service’s (DCIS) Southeast Field Office made the announcement.

Nicholas A. Borgesano Jr., 45, of New Port Richey, Florida, the president and owner of A to Z Pharmacy of New Port Richey, pleaded guilty on Nov. 6, 2017, in the Middle District of Florida to one count of conspiracy to commit health care fraud and one count of conspiracy to engage in monetary transactions involving criminally derived property.  His sentencing was before Senior U.S. District Judge James S. Moody Jr of the Middle District of Florida.  

According to admissions made as part of his plea agreement, Borgesano owned and operated numerous pharmacies and shell companies that he and his co-conspirators used to execute a fraud scheme involving prescription compounded medications.  The scheme generated over $100 million in fraud proceeds, he admitted.  Borgesano acquired and controlled A to Z Pharmacy in New Port Richey, Havana Pharmacy, Medplus/New Life Pharmacy and Metropolitan Pharmacy, all of Miami; and Jaimy Pharmacy and Prestige Pharmacy, both of Hialeah, Florida.  He admitted using these pharmacies to cause the submission of false and fraudulent reimbursement claims for prescription compounded medications, chiefly pain creams and scar creams, to private insurance companies, Medicare and TRICARE.  Borgesano admitted that he and his co-conspirators manipulated billing codes in the reimbursement claims and submitted reimbursement claims for pharmaceutical ingredients they did not have.  Borgesano and his co-conspirators also paid kickbacks and bribes in exchange for prescriptions and patient identifying information used to further the scheme, including to a physician in exchange for the physician signing prescriptions for patients he never saw.  Borgesano admitted using A to Z Pharmacy as the hub of his operation on behalf of all his pharmacies.  He disbursed proceeds of the fraud scheme through a variety of methods, including by check and wire transfer to co-conspirators’ shell companies and through the purchase of assets, he admitted. 

In addition to Borgesano, the following defendants have previously been sentenced for their roles in the scheme:

• Scott P. Piccininni, 49, of Fort Lauderdale, Florida, sentenced to 51 months in prison;
• Bradley Sirkin, 55, of Boca Raton, Florida, sentenced to 46 months in prison;
• Peter B. Williams, 57, of New Port Richey, sentenced to 26 months in prison, to be served consecutively to a 60-month sentence of imprisonment he is serving as a result of his guilty plea to a separate indictment returned in the Southern District of Florida;
• Joseph Degregorio, 71, of New Port Richey, sentenced to one year and one day in prison;
• Matthew N. Sterner, 48, of New Port Richey, sentenced to 36 months in prison; and
• Edwin Patrick Young, 49, of New Port Richey, sentenced to 66 months in prison.

Wayne M. Kreisberg, 40, of Parkland, Florida, is scheduled to be sentenced on April 30.

Among the items forfeited were several cars, including a 1936 Ford Deluxe, a 1964 Chevrolet Corvette convertible, a 1967 Chevrolet Camaro, a 1970 Chevrolet Monte Carlo and a 2008 Lamborghini convertible.  Several boats were forfeited, including a 2009 50’7” Cigarette racing boat.   The combined equity in the real properties, cars and boat that were forfeited is over $7.6 million.  The real properties, cars and boat had been purchased with proceeds from the fraud scheme. 

This case was investigated by the FBI with support from HHS-OIG and DCIS and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Florida.  The case is being prosecuted by Trial Attorney Timothy P. Loper of the Fraud Section.  The case was previously handled by Senior Trial Attorney Christopher Hunter, previously of the Fraud Section.

The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.  The Medicare Fraud Strike Force operates in nine locations nationwide.  Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.

Orlando, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Ronald Wiley (36, Melbourne) with distributing heroin and cocaine that resulted in the death of another, distributing oxycodone, distributing heroin, possessing a firearm as a convicted felon, and two counts of carrying a firearm in relation to a drug trafficking crime. If convicted on all counts, he faces a maximum penalty of life in federal prison. The indictment also notifies Wiley that the United States intends to forfeit numerous firearms and ammunition, which are alleged to be traceable to the offenses. 

According to the indictment, Wiley distributed heroin and cocaine to an individual identified as S.J. on January 26, 2018. S.J. overdosed and died after ingesting the heroin and cocaine that Wiley had provided. In addition, on two other occasions in February 2018, Wiley distributed oxycodone and heroin to another individual while armed with a firearm. He also possessed four firearms on March 7, 2018. As a previously convicted felon, Wiley is prohibited from possessing firearms or ammunition under federal law.

An indictment is merely a formal charge that a defendant has violated one or more of federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.         

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Brevard County Sheriff’s Office, with assistance from the Drug Enforcement Administration. It will be prosecuted by Assistant United States Attorney Shawn P. Napier.

Tampa, Florida – Joshua Christian Cantrell (24, Dade City) pleaded guilty today to conspiracy to distribute 50 grams or more of methamphetamine and to carrying a firearm during a drug trafficking crime. He faces a mandatory minimum term of 15 years, and up to life, in federal prison. His co-conspirator, Tracy Lee Williams, a/k/a Tracy Lee Spann, (38, Tampa), previously pleaded guilty to conspiracy to distribute 50 grams or more of methamphetamine. She faces a mandatory minimum term of 10 years, and up to life, in federal prison. Sentencing dates have not yet been set.

According to the plea agreements, on three separate occasions, in April and May 2017, Williams sold methamphetamine to an undercover detective in Brandon.  During the first transaction, Williams sold the undercover detective approximately one ounce of methamphetamine. On the second occasion, she sold the detective approximately two ounces of methamphetamine. Cantrell drove Williams to conduct the third sale which involved approximately eight ounces of methamphetamine. They were both subsequently arrested. Law enforcement found a loaded pistol in Cantrell’s waistband and a search of his vehicle revealed another pistol, additional weapons, ammunition, methamphetamine, and drug paraphernalia.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Taylor G. Stout.

This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

Tampa, FL – U.S. District Judge James S. Moody, Jr. today sentenced Johnnie Earl Ross (24, Tampa) to six years in federal prison for conspiracy to commit credit card fraud and aggravated identity theft. He pleaded guilty on February 8, 2018.

According to court documents and statements made in open court, from at least January 2015, through November 2016, Ross and others affiliated with the “Manche Boy Mafia” or “MBM” organization conspired to commit credit card fraud and identity theft in the Tampa Bay area. To facilitate the scheme, the conspirators purchased stolen credit and debit card account numbers online from various websites, some of which used bitcoins as their currency. They then purchased or stole reloadable gift cards and used machines to emboss the stolen account numbers and their own names onto the front of these altered gift cards, thereby producing counterfeit credit cards. The conspirators then used these counterfeit cards at various retailers around the Tampa Bay area to purchase gift cards and electronics, which they either kept or sold for cash. 

Investigators determined that these individuals had engaged in hundreds of successful transactions with counterfeit credit cards, and had possessed and used thousands of stolen account numbers from individuals across the United States. In total, Ross was held responsible for more than $540,000 in intended or attempted purchases with counterfeit credit cards and stolen account information.

This case was investigated by the FBI and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Mandy Riedel.

Tampa, Florida – A federal jury has found identical twin brothers Noel Graveran-Palacios (37, Tampa) and Yoel Graveran-Palacios (37, Tampa) guilty of conspiracy, credit card fraud, and aggravated identity theft. Each faces a maximum penalty of 5 years in federal prison for the conspiracy count, 10 years’ imprisonment for each credit card fraud count, and a consecutive 2 years’ imprisonment for each aggravated identity theft count. The sentencing hearings have been scheduled for July 20, 2018. 

According to testimony and evidence presented at trial, Noel and Yoel Graveran-Palacios worked together, and with others, to place skimmers on gas pumps in the Tampa Bay area. Using the account numbers stolen from the skimmers, they made counterfeit credit cards and then used them to purchase merchandise at area retailers, including gas, toys, clothes, and gift cards. The twins then used the gift cards to purchase merchandise at home improvement stores, and later returned the items for cash. Trial evidence included hundreds of recovered stolen account numbers, as well as dozens of store surveillance videos featuring the conspirators using the counterfeit credit cards. While the jurors were deliberating, the brothers fled the area together, but were later re-arrested in Texas, near the Mexican border. 

This case was investigated by the U.S. Secret Service and the Tampa Police Department, with assistance from the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Mandy Riedel.

Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich has sentenced Arritta Spence (48, Haines City) to one year and three months in federal prison for theft of government funds. As part of her sentence, the court also entered a money judgment of $117,234.40, the proceeds of the offense. Spence pleaded guilty on December 4, 2017.

According to court documents, Spence received Supplemental Security Income (SSI) benefits from the Social Security Administration (SSA) and served as the representative payee for five of her minor children. In addition, she also received Supplemental Nutrition Assistance Program (SNAP) and Medicaid benefits through the Florida Department of Children and Families (DCF).

Spence failed to notify the SSA and the DCF about changes in her household composition and her available resources, which resulted in overpayment to Spence and her children. Specifically, she failed to report significant income from her casino winnings. On March 4, 2010, Spence won $20,568.78 at the Seminole Hard Rock Hotel and Casino in Tampa. Between January 2011 and March 2014, she won an additional $108,776.90 at that casino. Because Spence failed to report her casino winnings and other changes in resources and household composition to the SSA and the DCF, she and her children were over paid approximately $100,000 in SSI, SNAP, and Medicaid benefits.

This case was investigated by the Social Security Administration Office of the Inspector General, the Florida Department of Financial Services Division of Public Assistance Fraud, and the Department of Health and Human Services Office of Inspector General. It was prosecuted by Assistant United States Attorney Rachel K. Jones.

Tampa, Florida – U.S. District Judge Virginia Hernandez Covington has sentenced Michael Washington (34, Tampa) to four years and three months in federal prison for wire fraud and aggravated identity theft. The court also entered a forfeiture money judgment in the amount of $143,532, the total proceeds of the fraud. Washington pleaded guilty on February 2, 2018.         

According to court documents, on July 2, 2016, Washington was arrested at the Seminole Hard Rock Hotel and Casino in Tampa with nine counterfeit credit cards, encoded with account numbers from Canadian Imperial National Bank (CIBC) in his possession. He fraudulently used the CIBC account numbers to encode and emboss the credit cards that he then used to purchase goods, including cartons of cigarettes from the Tribal Smoke Shop, and gift cards from retail stores in Florida. Washington sold the gift cards for cash, for approximately 60% of their face value.

Washington sold more than 490 gift cards that he had purchased with counterfeit CIBC cards, with a value exceeding $44,000. The total loss for the nine counterfeit credit cards and the fraudulent purchases, including the cigarettes, was $143,532.47.

This case was investigated by the U.S. Secret Service, the Florida Department of Law Enforcement, the Hillsborough County Sheriff’s Office, and the Seminole Tribe Police Department. It was prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.

 

Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Deltra Long (66, St. Augustine) with theft of government funds and false claims against the government. If convicted, she faces a maximum penalty of 5 years in federal prison on the theft count, and up to 10 years’ imprisonment on the false claims count. The indictment also notifies Long that the United States intends to forfeit $10,022.36, which is alleged to be traceable to proceeds of the offense.

According to the indictment, between November 5, 2016, and April 21, 2017, Long made a false application for Federal Emergency Management Act (FEMA) funds after a house that she owned in St. Augustine was damaged by Hurricane Matthew. Qualified recipients of FEMA funds for disaster assistance are limited to the primary residence of a homeowner who lives in the premises at the time of the qualifying event. Long allegedly sought funds to restore rental property, which she did not occupy when Hurricane Matthew made landfall in Florida on October 3, 2016.

An indictment is merely a formal charge that a defendant has violated one or more of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.

This case was investigated by the Department of Homeland Security Office of Inspector General and the U.S. Small Business Administration Office of Inspector General. It will be prosecuted by Assistant United States Attorney Jay Taylor.

Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. A live operator 24 hours a day, 7 days a week staffs the telephone line. You can also fax information to the Center at (225) 334-4707, or email it to disaster@leo.gov. You may also visit www.justice.gov/usao-mdfl.

Orlando, Florida – A federal criminal complaint has been filed charging Kevin Michael Hutchinson (36, Orlando) with receipt of child pornography. If convicted, he faces a minimum mandatory penalty of 5 years, and up to 20 years, in federal prison. Hutchinson made his initial appearance in court earlier today and has been detained pending the outcome of the case.

According to the

complaint , Hutchinson initially distributed child pornography via a mobile messaging application. Then, hours before a federal search warrant was executed at his home yesterday, he received multiple images and videos of child pornography via the internet.

A criminal complaint is merely a formal charge that a defendant has violated one or more of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.        

This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, with assistance from the Florida Department of Law Enforcement. It will be prosecuted by Assistant United States Attorney Shawn P. Napier.

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 locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

Fort Myers, Florida – Julia S. Kouragian (60, Sebring), also known as “Julia Newell” and “Jewels,” today pleaded guilty to four counts of mail fraud and four counts of wire fraud. She faces a maximum penalty of 20 years in federal prison on each count. A sentencing date has not yet been set.

According to court documents, Kouragian was employed by the U.S. Postal Service beginning in 1980. In 1996, she claimed that she was injured while working and subsequently began receiving federal workers’ compensation benefits, including full pay. In order to continue receiving benefits, she was required to report any improvements in her medical condition or her ability to work or maintain a level of employment.

It was later discovered that even though Kouragian claimed that she was physically unable to perform activities associated with walking, sitting, and standing for more than 15 minutes at a time, she had, from at least 2012 through July 2017, performed as the lead singer in a band and also handled the bookings and merchandise sales for the group. She failed to disclose these changes to her treating physicians. As a result of the fraud, she received more than $166,000 in federal workers’ compensation benefits.

This case was investigated by the U.S. Postal Service Office of Inspector General. It is being prosecuted by Assistant United States Attorney Yolande G. Viacava.

Jacksonville, Florida – A federal grand jury has returned an indictment charging Erick Williams (31, Jacksonville) with making a false claim against the United States related to Hurricane Irma. If convicted, he faces a maximum penalty of five years in federal prison, plus payment of restitution to the United States. Williams was arrested yesterday by agents from the Department of Homeland Security Office of Inspector General; he made his initial appearance in court and a trial date has been set for June 4, 2018.

According to the indictment, in September 2017, Williams used a false address when submitting an application for assistance to the Federal Emergency Management Agency’s (FEMA’s) Individuals and Households Program for Hurricane Irma. In the application, Williams lied about the address of his primary residence.

An indictment is merely a formal charge that a defendant has violated one or more of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.

This case is part of the United States Attorney’s Disaster Fraud Task Force, which was announced in September 2017. This case was investigated by the Department of Homeland Security - Office of Inspector General. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.

Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. A live operator 24 hours a day, 7 days a week staffs the telephone line. You can also fax information to the Center at (225) 334-4707, or email it to disaster@leo.gov. You may also visit www.justice.gov/usao-mdfl.

Tampa, Florida – United States Attorney Maria Chapa Lopez announces the unsealing of an indictment charging five individuals with conspiring to distribute more than one kilogram of heroin, 400 grams of fentanyl, and 100 grams of a fentanyl analogue. If convicted, Anthony Jerome Lang (60, Tampa); Travell Kinkay Jones (40, West Palm Beach); Vanzini Nicholas Hansell (37, Tampa); Amber Miller (32, Tampa); and Carlton Reid Mallard (61, Tampa) each face a maximum penalty of life in federal prison.

According to the indictment, from at least June 2017 through February 2018, Lang, Jones, Hansell, Miller, and Mallard participated in a conspiracy to distribute heroin, fentanyl, and fentanyl analogues in the Middle District of Florida.

An indictment is merely a formal charge that a defendant has violated one or more of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.

This case is the result of an Organized Crime Drug Enforcement Task force investigation conducted by the Drug Enforcement Administration, with assistance from the Tampa Police Department and the Florida Highway Patrol. 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 organizations primarily responsible for the nation’s illegal drug supply. The case will be prosecuted by Assistant United States Attorney Dan Baeza.

Tampa, Florida – United States Attorney Maria Chapa Lopez announces the unsealing of two indictments charging 15 individuals with federal drug trafficking violations. In one indictment, Jesus Manuel Rodriguez, a/k/a “Caltu,” (30, Brandon); Bryan Gomez Nevarez (30, Avon Park); Hector Jose Carrasquillo Perez, a/k/a “Tito” (25, Catano, Puerto Rico); Henry Coira (30, Avon Park); Luis Enrique Hernandez Quinones, a/k/a “Gordo” (28, Davenport); Avisys Lee Jackson (27, Tampa); Javier Albaladejo Lopez, a/k/a “the Barber” (23, Tampa); Jose Angel Mendoza, Jr. (28, Tampa); Pedro Luis Ramos Burgos (25, Kissimmee); William Leverne Norton, a/k/a “Cool” (40, Tampa); Edgar Hernandez, a/k/a “Chuck” (27, Tampa); and Ismael Pagan Marrero (42, Orlando) are charged with conspiracy and possession with the intent to distribute cocaine. If convicted, each faces a maximum penalty of life in federal prison. In a separate indictment, Roberto Torres Gracia, a/k/a “el Silencio” (40, Pinellas Park); Eddie Alberto Pagan Santiago, a/k/a “Primo” (37, San Juan, Puerto Rico); and David Santiago, a/k/a “Flaco” (33, Tampa) are charged with conspiracy and possession with the intent to distribute heroin. If convicted, each faces a maximum penalty of 40 years in federal prison.

According to the indictment and information presented in court, between May 2017 and April 2018, the defendants conspired to distribute more than 100 grams of heroin and more than 20 kilograms of cocaine.

An indictment is merely a formal charge that a defendant has violated one or  more of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.

These cases were investigated by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF). 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. Agencies involved in this OCDETF operation include the Federal Bureau of Investigation, the Tampa Police Department, the Florida Department of Law Enforcement, the Drug Enforcement Administration, the U.S. Postal Inspection Service, and the Hillsborough County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Carlton C. Gammons.

Tampa, Florida – U.S. District Judge James S. Moody, Jr. today sentenced Arvester Lamonica Anderson (47, Tampa) to 15 years in federal prison for possessing a firearm as a convicted felon. The court also ordered him to forfeit the firearm and ammunition used in the offense. Anderson pleaded guilty on February 1, 2018.

According to court documents, on June 22, 2017, Anderson and his roommate became involved in an altercation and the roommate, believing that Anderson had threatened him with a firearm, called the police. Officers from the Tampa Police Department responded and found a loaded pistol in Anderson’s closet. Anderson subsequently admitted to possessing the firearm. Due to his several prior felony convictions, Anderson is prohibited from possessing firearms or ammunition under federal law.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Charlie D. Connally.

This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich today sentenced Kevon Melendez (22, Bradenton) to five years and three months in federal prison for possessing with the intent to distribute carfentanil and cocaine. He pleaded guilty on January 12, 2018.

According to court documents, on February 14, 2017, law enforcement officers with the Drug Enforcement Administration and the Manatee County Sheriff’s Office were searching for a fugitive when they observed the fugitive riding in the backseat of a car Melendez was driving. As the officers approached the vehicle, they smelled the odor of marijuana coming from inside the car. The officers observed Melendez with a scale between his legs. As an officer was removing Melendez from the car, he observed Melendez drop a plastic bag containing several substances. Those substances later tested positive for cocaine (27.99 grams) and carfentanil (approximately 11 grams). Melendez also had $580 on his person.

This case was investigated by the Drug Enforcement Administration and the Manatee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Shauna S. Hale.

This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed “Hot Batch.” The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.

Jacksonville, Florida – United States District Judge Brian J. Davis has sentenced Russel Lee Orr (42, Trinity) to 15 years in federal prison for attempted online enticement of a child to engage in sexual activity, attempted production of child pornography, and for soliciting for child pornography online. A federal jury found Orr found guilty on July 1, 2016. Prior to his arrest, Orr had worked as an aircraft mechanic in the Tampa area.      

According to testimony and evidence introduced during the four-day trial, between March 10 and May 20, 2015, Orr engaged in a series of text messages and email conversations with an individual he believed to be a 14-year-old girl. The “child” was actually a detective with the St. Johns County Sheriff’s Office. During the course of the conversations, Orr discussed in detail his desire to meet the “child” for sex. He also repeatedly solicited the “child” to produce and send photos of her genitalia to him. 

On May 21, 2015, FBI agents and other law enforcement officers executed a search warrant at Orr’s apartment and arrested him.  During the search of the home, the agents located and seized a smart phone that Orr had used to communicate with the “child” and also to search the internet for materials related to the sexual exploitation of children.   

This case was investigated by the St. Johns County Sheriff’s Office, the Volusia County Sheriff’s Office, the Pasco County Sheriff’s Office, and the FBI in Jacksonville and Tampa. It was prosecuted by Assistant United States Attorney D. Rodney Brown.

It is another case 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, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.justice.gov/psc.  

Orlando, Florida – A federal grand jury has returned an indictment charging Ramon Lopez-Alvarado (58), a citizen of Mexico, with illegally reentering the United States after deportation and failing to register as a sex offender under the Sex Offender Registration and Notification Act (SORNA). If convicted, he faces a maximum penalty of 20 years in federal prison on the reentry count and up to 10 years in federal prison on the failure to register count. 

According to the indictment, Lopez-Alvarado, an illegal alien, was previously convicted for committing a lewd act on a child and for failing to register as a sex offender. He was removed from the United States in 2013 and, on March 17, 2018, was found to be back in the United States without permission. Upon returning to the United States from Mexico, Lopez-Alvarado also failed to register as a sex offender and keep his registration current as required by SORNA.

An indictment is merely a formal charge that a defendant has violated one or more of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.

This case was investigated by U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations and the U.S. Marshals Service. It will be prosecuted by Assistant United States Attorney Kara M. Wick.

Orlando, Florida – A federal jury has found Viktoriya Johnson (36, Orlando) guilty of wire fraud and conspiracy to commit wire fraud. She faces a maximum penalty of 20 years in federal prison on each count. Her sentencing hearing is set for August 18, 2018.

Johnson was indicted in May 2017, along with her co-defendant Leone Alfano La Cava (59, Orlando), who pleaded guilty to wire fraud on March 30, 2018.

According to evidence presented at trial, La Cava and Johnson orchestrated an international real estate investment scheme that defrauded at least 80 investors out of over $4 million. La Cava solicited individuals in Italy to purchase real estate in Orange County, Florida that he claimed would generate guaranteed rental income. Johnson and La Cava then used falsified deeds and loan documents to convince investors that they were purchasing property owned by La Cava or Golden Investment, Inc., a real estate investment company incorporated by Johnson in 2010. In reality, those properties either did not exist, were never owned by La Cava, Johnson, or Golden Investment, or had already been sold to another investor. Instead of using the funds to purchase the real estate promised to investors, La Cava and Johnson used portions of the money for their own personal use. Johnson received over $1.3 million in investor funds that she used to purchase four properties and two luxury vehicles for herself.

This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Nathan W. Hill and Chauncey A. Bratt.

 

Jacksonville, Florida – Following a five-day trial, a federal jury has found Jason James Neiheisel (28, Jacksonville) guilty of sharing child sex abuse videos and making them available for online for distribution. He faces a minimum mandatory penalty of 5 years, up to 40 years, in federal prison and a potential life term of supervised release. A sentencing date has not yet been set. FBI agents arrested Neiheisel on May 4, 2017.

According to evidence and testimony presented at trial, an FBI task force officer conducted an online investigation of individuals using the internet to trade child pornography. He identified a host computer that was offering child pornography for distribution using a file-sharing network and downloaded approximately 48 videos, several of which depicted young children being sexually abused. The host computer was later traced to Neiheisel’s home. On April 11, 2017, agents made contact with Neiheisel at his apartment, where he told them that he had downloaded child pornography for “a while,” and that he enjoyed the “thrill of the hunt” to see what kind of child pornography files he could find. A subsequent forensic examination of Neiheisel’s tablet revealed no child pornography but confirmed that Neiheisel had used the tablet to access the file-sharing network. Neiheisel admitted that he knew that he had made the child pornography videos available to others on the file-sharing network.

This case was investigated by the Columbia County Sheriff’s Office and the FBI. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.

It is another case 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, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

Tampa, Florida – Gregory A. Douglas, Jr. (40, Tampa) has pleaded guilty to submitting a false claim. He faces a maximum penalty of five years in federal prison. His sentencing hearing has not yet been set.

According to the plea agreement, after Hurricane Irma hit Florida in September 2017, Douglas used a false address in Tampa to apply for $1,514 in disaster assistance from the Federal Emergency Management Agency (“FEMA”).  Douglas did not reside at or own a home at that address at the time of the storm.  Nevertheless, in his application to FEMA, he falsely represented it to be his primary residence. Douglas also falsely represented that he had been displaced and that he had incurred expenses for temporary housing and critical needs assistance.

This case is part of the United States Attorney’s Disaster Fraud Task Force, which was announced in September 2017. The case was investigated by the U.S. Department of Homeland Security – Office of Inspector General. It is being prosecuted by Assistant United States Attorney Patrick Scruggs.

Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. A live operator 24 hours a day, 7 days a week staffs the telephone line. You can also fax information to the Center at (225) 334-4707, or email it to disaster@leo.gov. You may also visit www.justice.gov/usao-mdfl.

Tampa, FL — Today, as the Department of Justice recognizes the 50th Anniversary of the Fair Housing Act, Attorney General Jeff Sessions announced the nationwide rollout of an initiative aimed at increasing awareness and reporting of sexual harassment in housing. The announcement includes an interagency task force between the Department of Housing and Urban Development (HUD) and the Justice Department to combat sexual harassment in housing, an outreach toolkit, and a public awareness campaign. This three-pronged approach will strengthen the Department’s efforts to combat sexual harassment in housing.

“Sexual harassment in housing is illegal, immoral, and unacceptable," said Attorney General Sessions. “It is all too common today, as too many landlords, managers, and their employees attempt to prey on vulnerable women. We will not hesitate to pursue these predators and enforce the law. In October, I ordered a new initiative to bring more of these cases, and we have already won relief for 15 victims. Today we announce three new steps to make the initiative more effective and to win more cases. I want to thank the dedicated and committed professionals in our Civil Rights Division and our partners in the Department of Housing and Urban Development for their hard work in this effort. We will continue to aggressively pursue harassers, because everyone has a right to be safe in their home.”

“All discrimination stains the very fabric of our nation, but HUD is especially focused on protecting the right of everyone to feel safe and secure in their homes, free from unwanted sexual harassment,” said Secretary Ben Carson. “No person should have to tolerate unwanted sexual advances in order to keep a roof over his or her head. Part of our mission at HUD is to provide safe housing and we will remain diligent in this mission to protect those we serve. I look forward to working with Attorney General Sessions and the Department of Justice as part of this task force to bring an end to this type of discrimination.”

“No one should ever have to choose between relinquishing their dignity and a place to live,” said U.S. Attorney Maria Chapa Lopez. “Sexual harassment, intimidation and quid pro quo practices by landlords, property managers, or their employees should never be used as the keys to residency. We will work with our partners to ensure that such illegal practices are investigated, enforced, and prosecuted to the fullest extent of the law.”

In October 2017, the Justice Department announced an initiative to combat sexual harassment in housing and launched pilot programs in Washington, D.C. and the Western District of Virginia. The initiative sought to increase the Department’s efforts to protect women from harassment by landlords, property managers, maintenance workers, security guards, and other employees and representatives of rental property owners. During the pilots, the Department developed and tested ways to better connect both with victims of sexual harassment in housing and with those organizations that victims may turn to first for help – including law enforcement, legal services providers, public housing authorities, sexual assault services providers, and shelters.  The Department also tested certain aspects of the initiative in other jurisdictions, including New Jersey, the Central District of California, Massachusetts, Vermont, and Michigan.

The two pilot programs generated an upswing in harassment reporting to the Department from both D.C. and the Western District of Virginia. In D.C., the Department generated six leads since the October 2017 launch. In Virginia, the Department generated three leads. While the Justice Department recognizes that leads and investigations do not always lead to enforcement actions, the pilot program’s results—when extrapolated across all the U.S. Attorney’s Offices across the country—could lead to hundreds of new reports of sexual harassment in housing across the country.

Because of these promising results, the Department is rolling out three major components to the Initiative.

First, the new HUD-DOJ Task Force to Combat Sexual Harassment in Housing will drive a shared strategy between the Department and HUD for combatting sexual harassment in housing across the country. It will focus on five key areas: continued data sharing and analysis, joint development of training, evaluation of public housing complaint mechanisms, coordination of public outreach and press strategy, and review of federal policies.

Second, the outreach toolkit is designed to leverage the Justice Department’s nationwide network of U.S. Attorney’s Offices. The toolkit provides templates, guidance, and checklists based on pilot program feedback. It ultimately will amplify available enforcement resources and help victims of sexual harassment connect with the Department.

Third, the public awareness campaign has three major components: a partnership package with relevant stakeholders, launch of a social media campaign, and Public Service Announcements (PSAs) run by individual U.S. Attorney’s offices. The campaign is specifically designed to raise awareness, and make it easier for victims all over the country to find resources and report harassment. (See below to download MDFL PSAs).

More information about the Civil Rights Division and the civil rights laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they may have been victims of sexual harassment in housing should call the Department at 1-844-380-6178, send an e-mail to fairhousing@usdoj.gov, or contact HUD at 1-800-669-9777.  If you have information or questions about any other housing discrimination, you can contact the Department at 1-800-896-7743.

Ocala, Florida – United States Attorney Maria Chapa Lopez announces the unsealing of an indictment charging Heather Lee Kussoff (31, Cape Coral) with making a false statement to a federal law enforcement agency. If convicted, she faces a maximum penalty of five years in federal prison.

According to the indictment and information presented in court, Kussoff worked as a correctional officer at the Coleman Federal Correctional Complex (FCC) in Sumter County. In 2014, she developed a personal relationship with an inmate at one of the penitentiaries. In direct violation of her job responsibilities and training, Kussoff corresponded with the inmate in a romantic capacity, shared extensive details of her personal life, and communicated directly with members of the inmate’s family. When confronted by federal authorities in March 2015, Kussoff lied under oath about the existence of the relationship and then abruptly resigned from the Bureau of Prisons.

An indictment is merely a formal charge that a defendant has violated one or more of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.

This case was investigated by the Department of Justice – Office of the Inspector General, the Federal Bureau of Prisons, and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.

Jacksonville, Florida – A federal jury today found Adrian George guilty of conspiring to commit wire fraud and aiding in the preparation and presentation of fraudulent tax returns to the IRS, as well as multiple counts of aiding in the preparation and presentation of fraudulent tax returns. He faces a maximum penalty of 15 years in federal prison. His sentencing hearing has not yet been set.

George was indicted on March 30, 2017.

According to testimony and evidence presented at trial, George owned and operated Professional Tax Service South, LLC, a tax return preparation firm in Jacksonville. He taught his employees various ways to include false information in tax returns to assure that his clients received large tax refunds. Acting at his direction, George’s employees offered to prepare fraudulent or “boosted” returns for clients in exchange for cash payments from the proceeds of the illegitimate tax refunds.

After being in business for less than two years, George and his employees had prepared and filed 748 tax returns for clients – all of which requested refunds. Typically only 62% percent of tax returns filed nationwide request refunds. The tax returns prepared and filed by George and his employees requested a total of approximately $3.2 million in refunds. 

This case was investigated by IRS – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Michael J. Coolican.

Tampa, Florida – U.S. District Judge Charlene Edwards Honeywell today sentenced Paul Fabrizio Solis (40, Bradenton) to 16 years in federal prison for producing and possessing child pornography. He was also ordered to serve 25 years on supervised release, following his incarceration. Solis pleaded guilty on November 6, 2017.

According to court documents, Solis took explicit photographs of a young child who was in his care. He kept the images on a thumb drive hidden in a locked safe in his home. He also had more than 4,000 videos and images of child pornography stored on his laptop computer.

This case was investigated by the Federal Bureau of Investigation -Tampa Division, with support from the Bradenton Police Department. It was prosecuted by Assistant United States Attorney Kristen A. Fiore.

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 locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.justice.gov/psc.

 

Tampa, Florida – U.S. District Judge Susan C. Bucklew has sentenced Joe Harry Pegg (70, Ft. Lauderdale) to six years in federal prison for conspiracy to obstruct justice, obstruction of justice, and lying to federal law enforcement officers. The court ordered him to serve this sentence consecutive to his current 30-year term of incarceration that is set to expire in 2020. Pegg was found guilty on August 17, 2017, following a jury trial.

According to court documents and evidence presented at trial, during the 1980s and 1990s in south Florida, Pegg was a significant drug trafficker who made millions of dollars by importing and distributing marijuana. In 1982, he was convicted in the Eastern District of Louisiana for conspiring to import and distribute nearly 650,000 pounds of marijuana. By the early 1990s, Pegg was the head of a marijuana shipping organization that used go-fast boats to transport large quantities of marijuana from the Caribbean to the Dry Tortugas, off the coast of Florida. In 1994, Pegg was arrested by federal agents after one of his vessels was intercepted off the coast of Fort Myers with approximately 10,000 pounds of marijuana onboard. He was subsequently convicted for a marijuana importation conspiracy and was sentenced in 1996 to 30 years in federal prison.

In 2008, while incarcerated at the Coleman Federal Correctional Complex, Pegg and his cellmate, Isidro Moreno, devised a scheme to defraud the United States by attempting to secure Pegg’s early release from prison using “third-party cooperation.” In some instances, an individual can stand in for a cooperating defendant and provide assistance to law enforcement and ultimately reduce the defendant’s original sentence. Pegg and Moreno knew, however, that third-party cooperators couldn’t be paid by anyone, including Pegg or anyone acting on his behalf.

After Moreno was released from prison, he enlisted Fernando Morales to act as a third-party cooperator on Pegg’s behalf, whereby Morales agreed to work with law enforcement to set up drug deals that would be credited to Pegg to try and reduce his sentence. Morales agreed to be the third-party cooperator, but he also wanted compensation for his efforts. Pegg, Moreno, and other conspirators agreed to pay Morales $60,000, and to conceal the payments from federal authorities.

After an arrest was made as a result of Morales’s cooperation, authorities learned that Pegg, through his family members, had made large cash payments to Moreno and Morales. Once Pegg learned that the government was investigating his conduct, he directed Moreno and others conspirators to lie to investigators and to conceal the payments from government officials.

In addition to Pegg, two former federal agents were convicted for their involvement in this scheme. Former DEA agent Samuel Murad, the case agent who originally investigated Pegg’s marijuana trafficking case, pleaded guilty to tax evasion and witness tampering and received a year in prison for failing to report hundreds of thousands of dollars received from the Pegg family, and for obstructing the FBI’s investigation. Former DEA agent Robert Quinn was sentenced to three years’ probation for lying to federal agents. Isidro Moreno and Fernando Morales were also convicted of conspiracy to obstruct justice and lying to federal authorities, respectively.

These cases were investigated by the Federal Bureau of Investigation and were prosecuted by Assistant United States Attorneys Simon A. Gaugush, Josephine W. Thomas, and Anita M. Cream.  

Orlando, Florida – U.S. District Judge Carlos E. Mendoza today sentenced Joseph Charles Desorbo, Jr. (58, Seminole County) to 17 years in federal prison for possessing child pornography. The court also ordered him to serve a life term of supervision, made a recommendation for a reevaluation prior to his release, and required him to register as a sex offender. In addition, he was ordered to forfeit the cellphone he had used to facilitate the offense.

Desorbo pleaded guilty on January 11, 2018. 

According to court documents, on September 8, 2017, deputies from the Seminole County Sheriff’s Office arrived at Desorbo’s residence in response to a shooting incident. Desorbo was interviewed as a witness to the shooting and voluntarily provided written consent to search his cellphone as part of the investigation. During a forensic analysis of the phone, agents found 118 videos and 18 images of child pornography on the phone’s SD card. The videos included sadistic depictions of infants and young children being sexually assaulted by adult men. The phone also contained Desorbo’s communications with others regarding the rape of children. Desorbo admitted that he had used a social media application to obtain the child pornography and had participated in sex group chats about “little boys.” He also described himself as a sex addict. 

The investigation further revealed that Desorbo was convicted in 1998 in St. Johns County, Florida for possessing child pornography and for using the internet to solicit a child for sex.   

This case was investigated by the Seminole County Sheriff’s Office and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.

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 locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.justice.gov/psc.

Orlando, Florida –U.S. District Judge Carlos E. Mendoza has sentenced John Pierre Mack, III (26, Kissimmee) and David Augusta Jones, III (27, Orlando) to four years and nine years in federal prison, respectively, for conspiracy to commit wire fraud and wire fraud. They pleaded guilty in January 2018.

According to court documents, from at least August 2015 through July 6, 2017, the conspirators demanded money from victims by claiming to be agents with the Department of Homeland Security (DHS) and/or the Cyber Crimes Center (C3). Typically, the victims had responded to an online dating post and engaged in a conversation and exchange of photos with a female that they believed was an adult. The victims were later contacted by the schemers posing as “agents,” who alleged that the female from the dating post was under the age of 18. The “agent” would claim that they had an arrest warrant for charges of soliciting a minor and would then direct the victim to make payments for “fines” and “penalties,” in lieu of being arrested. To further their scheme, the “agents” sent paperwork to victims displaying the DHS seal, a judge’s name, and legal terms related to child exploitation. The schemers utilized email addresses containing variants of “child exploitation” and “cybercrimes center” in their correspondence. The victims were directed to retail locations to wire money to pay these “fines” or “fees,” and the conspirators then took turns picking up the payments. The defendants also traded victims with each other to continue the scheme and to get more money. The victims, many of whom were members of the military or elderly, sent multiple extortion payments, ranging from $200 to $1,900 per transaction, fearing they would otherwise be arrested.

Mack was a supervisor/manager in this scheme and received at least 61 extortion payments from victims totaling $79,847. Jones received at least 30 payments from victims totaling $66,684. Law enforcement agents estimate that the scheme generated more than $340,000 in profits.

Four others previously pleaded guilty for their roles in this scheme. Last month, Ronnie Rolland Montgomery (28, Orlando) was sentenced to 7 years in federal prison and Ashley Ferrell (26, Orlando) was sentenced to 10 months’ imprisonment. Dillon McDowell (26, Orlando) will be sentenced on April 26, 2018, and Amaryllis Pagan (20, Kissimmee) will be sentenced on May 29, 2018.

This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations – Office of Professional Responsibility and Homeland Security Investigations (San Diego), with assistance from the Naval Criminal Investigative Service (San Diego) and the Osceola County Sheriff’s Office.  It was prosecuted by Special Assistant United States Attorneys Christina R. Downes and Brandon Bayliss, on assignment from the Office of the Principal Legal Advisor, ICE.

Ocala, Florida – Michael Philip Auld (30, Ocala) today pleaded guilty to an indictment charging him with distribution of child pornography. Because Auld already has a 2008 federal conviction for possession of child pornography, he faces a minimum sentence of 15 years, up to 40 years, in prison.

According to the plea agreement, on October 23, 2016, Auld distributed images of child pornography over the internet using a cellular telephone. Acting on a tip from an internet service provider, law enforcement executed a search warrant at Auld’s Marion County residence on January 11, 2018. In Auld’s bedroom, investigators recovered two cellular telephones and a tablet computer. Auld had been using these electronic devices to receive, possess, and distribute hundreds of images of child pornography since at least 2016. In saved internet conversations on these same devices, Auld graphically described his sexual abuse of minor children, including an infant. At the time of the offense, he was serving a lifetime of supervised release for his prior child pornography conviction.    

This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Marion County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.

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 locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

Orlando, Florida – Jonathan Brown (33, Winter Garden) today pleaded guilty to conspiracy to commit mail fraud. He faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been set.

According to the plea agreement, Brown and three others conspired to defraud insurance companies by submitting false claims following a staged car accident in Orange County, in May 2013. Brown, two co-conspirators, and the children of one of the conspirators were occupants in a car that was rear-ended by a vehicle being driven by a third co-conspirator in a pre-planned collision. After the collision, the conspirators, who had known each other for years, agreed to tell first responders that they did not know each other. They also agreed to seek emergency care for fictitious injuries purportedly sustained during the collision, and sought treatment from other medical providers for months following the collision. Brown and his co-conspirators then submitted fraudulent claims for medical expenses for unnecessary treatment, lost wages that had never incurred, attorney fees arising from threatened litigation, and compensatory damages for pain and suffering to their insurers, causing the insurers to pay out thousands of dollars based on those false claims. 

This case was investigated by the Florida Department of Financial Services and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Eric K. Gerard.

The owner of an Orlando, Florida-area pharmacy, who was also a licensed pharmacist, was sentenced today for his role in a kickback scheme involving pain and scar creams that resulted in the payment of approximately $4.3 million in false and fraudulent claims to TRICARE.  TRICARE provides coverage for active duty military members and their families, as well as retired veterans.

Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Maria Chapa Lopez of the Middle District of Florida, Special Agent in Charge Eric Sporre of the FBI’s Tampa Field Office and Resident Agent in Charge Brooke M. Harris of the U.S. Department of Defense Office of Inspector General (DOD-OIG) Defense Criminal Investigative Service made the announcement.

Larry B. Howard, 53, of Oviedo, Florida, was sentenced by U.S. District Judge Paul G. Byron for the Middle District of Florida to serve 160 months in prison and ordered to forfeit over $4.3 million as proceeds of the crime.  Howard was also ordered to forfeit two properties, worth approximately $340,000, that he purchased with the proceeds of the crime, and two cashier’s checks worth $25,000 each.  The judge also ordered Howard to pay $4.3 million in restitution to the federal military health insurance program.

Howard; Nicole R. Bramwell, M.D., 52, of Apopka, Florida; and Raymond L. Stone, 57, of Orlando, were convicted after a five-day trial of one count of conspiracy to pay health care kickbacks and paying and receiving kickbacks.  Howard was also convicted of two counts of paying health care kickbacks, and Bramwell and Stone were convicted of one count each of receiving health care kickbacks.  In addition, Howard was convicted of two counts of money laundering.

According to evidence presented at trial, Howard was the owner of Fertility Pharmacy, located in Oviedo.  The evidence showed that Howard paid illegal health care kickbacks to Stone, who in return referred patients to doctors previously selected by Howard.  The doctors then prescribed expensive pain and scar creams to the patients, which Howard then billed to TRICARE.  The evidence also showed that Howard paid illegal health care kickbacks to Bramwell, who in return wrote prescriptions for the expensive creams.  The creams could cost up to $17,000 per bottle.  Between October 2014 and May 2015, TRICARE paid Fertility Pharmacy over $4.3 million procured through illegal kickbacks.  Bramwell’s sentencing is scheduled for May 9.  Stone is scheduled to be sentenced on April 27.

The case was investigated by the DOD-OIG and the FBI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Florida.  Senior Litigation Counsel John Michelich and Trial Attorneys Timothy Loper and Alexander Kramer of the Criminal Division’s Fraud Section are prosecuting the case.  Former Senior Trial Attorney Christopher Hunter previously prosecuted the case. 

The Fraud Section leads the Medicare Fraud Strike Force.  Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 3,500 defendants who have collectively billed the Medicare program for more than $12.5 billion.  In addition, the HHS Centers for Medicare & 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. 

Orlando, FL – The owner of an Orlando-area pharmacy, who was also a licensed pharmacist, was sentenced today for his role in a kickback scheme involving pain and scar creams that resulted in the payment of approximately $4.3 million in false and fraudulent claims to TRICARE. TRICARE provides coverage for active duty military members and their families, as well as retired veterans.

Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Maria Chapa Lopez, Special Agent in Charge Eric Sporre of the FBI’s Tampa Field Office and Resident Agent in Charge Brooke M. Harris of the U.S. Department of Defense Office of Inspector General (DOD-OIG) Defense Criminal Investigative Service made the announcement.

Larry B. Howard, 53, of Oviedo, was sentenced by U.S. District Judge Paul G. Byron to serve 160 months in prison and ordered to forfeit over $4.3 million as proceeds of the crime.  Howard was also ordered to forfeit two properties, worth approximately $340,000, that he purchased with the proceeds of the crime, and two cashier’s checks worth $25,000 each.  The judge also ordered Howard to pay $4.3 million in restitution to the federal military health insurance program.

Howard; Nicole R. Bramwell, M.D., 52, of Apopka; and Raymond L. Stone, 57, of Orlando, were convicted after a five-day trial of one count of conspiracy to pay health care kickbacks and paying and receiving kickbacks. Howard was also convicted of two counts of paying health care kickbacks, and Bramwell and Stone were convicted of one count each of receiving health care kickbacks. In addition, Howard was convicted of two counts of money laundering.

According to evidence presented at trial, Howard was the owner of Fertility Pharmacy, located in Oviedo. The evidence showed that Howard paid illegal health care kickbacks to Stone, who in return referred patients to doctors previously selected by Howard. The doctors then prescribed expensive pain and scar creams to the patients, which Howard then billed to TRICARE. The evidence also showed that Howard paid illegal health care kickbacks to Bramwell, who in return wrote prescriptions for the expensive creams. The creams could cost up to $17,000 per bottle. Between October 2014 and May 2015, TRICARE paid Fertility Pharmacy over $4.3 million procured through illegal kickbacks. Bramwell’s sentencing is scheduled for May 9. Stone is scheduled to be sentenced on April 27.

The case was investigated by the DOD-OIG and the FBI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Florida. Senior Litigation Counsel John Michelich and Trial Attorneys Timothy Loper and Alexander Kramer of the Criminal Division’s Fraud Section are prosecuting the case. Former Senior Trial Attorney Christopher Hunter previously prosecuted the case. 

The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 3,500 defendants who have collectively billed the Medicare program for more than $12.5 billion. In addition, the HHS Centers for Medicare & 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. 

Jacksonville, Florida – U.S. District Judge Brian J. Davis today sentenced Thair Zatar (46, East Stroudsburg, Pennsylvania) to four years and three months in federal prison for possessing with the intent to distribute synthetic marijuana, also known as “K2” or “Spice.” He pleaded guilty on August 21, 2017.

According to court documents, in April 2017, Zatar was pulled over for a traffic stop in Baker County, Florida, while driving from Tampa to his home. During a consensual search of his vehicle, authorities discovered that he was transporting 201 kilograms of individual packets of synthetic marijuana, labeled as “potpourri” and “not for human consumption.” Zatar confessed that three weeks prior, he had made another trip from Tampa to Pennsylvania and had transported a smaller quantity of packets. A laboratory analysis revealed that the substance in the packets was a synthetic cannabinoid referred to as AB-FUBINACA, a Schedule I controlled substance.

This case was investigated by the Drug Enforcement Administration and the Florida Highway Patrol. It was prosecuted by Assistant United States Attorney Laura Cofer Taylor.

Jacksonville, Florida – United States District Judge Brian J. Davis has sentenced Sunshine Marie McEwen (43, Atlantic Beach) to three years and five months in federal prison for failing to register as a sex offender.

According to court documents, on August 20, 1998, McEwen was convicted of sexual battery on a 12-year-old child in Jacksonville. After her release from state prison in September 2013, she resided in Atlantic Beach. On May 15, 2015, McEwen sold drugs to an individual in Atlantic Beach and later fled to California without updating her sex offender registration. She also failed to register in California as required by the Sex Offender Registration and Notification Act. On November 28, 2015, McEwen was arrested in Palm Springs and extradited to Florida to face her drug charges. On July 6, 2016, she was convicted for selling cocaine within 1,000 feet of a church and sentenced to 78 months in state prison.    

The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act also provides for the use of federal law enforcement resources, including the U.S. Marshals Service, to assist state and local authorities in locating and apprehending non-compliant sex offenders. 

This case was investigated by the U.S. Marshals Service, the Jacksonville Sheriff’s Office, the Atlantic Beach Police Department, the Florida Department of Law Enforcement, and the Palm Springs Police Department. It was prosecuted by Assistant United States Attorney D. Rodney Brown.

It is another case 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, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

Tampa, FL – U.S. District Judge Steven D. Merryday today sentenced Ravon Jackiel Forbes-Hodge (25, Tampa) to three years and six months in federal prison for credit card fraud and aggravated identity theft. The court also ordered him to pay $31,422 in restitution to victims of the fraud. Forbes-Hodge pleaded guilty on January 11, 2018.

According to court documents, Forbes-Hodge and others obtained stolen credit card account numbers and bank account information from various financial institutions. The conspirators purchased or stole reloadable gift cards and embossed them with their own names and the stolen account numbers. They then used the counterfeit cards at retailers throughout the Tampa Bay area to purchase merchandise that they later returned to different locations to receive store credit in the form of gift cards. The conspirators then sold the fraudulently obtained gift cards for cash.  

Between February and June 2017, Forbes-Hodge used counterfeit credit cards and stolen account information to purchase thousands of dollars in merchandise from Home Depot stores. He then returned the merchandise to different Home Depot locations and obtained store credit in the form of Home Depot gift cards. Forbes-Hodge sold thousands of dollars in fraudulently obtained Home Depot gift cards in exchange for cash. He was responsible for at least 55 fraudulent purchases, using approximately 30 different counterfeit credit cards and stolen account information during this period. 

This case was investigated by the United States Secret Service, the Hillsborough County Sheriff’s Office, and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Josephine W. Thomas.

Tampa, Florida – An indictment has been unsealed charging Frank V. Monte (38, Valrico) and Kimberley S. Anderson (50, New Port Richey) with one count of conspiracy, five counts of paying healthcare kickbacks, one count of conspiracy to commit money laundering, and three counts of illegal monetary transactions. Monte is also charged with two counts of making false statements. If convicted, each faces a maximum penalty of 5 years in federal prison for the conspiracy count, up to 5 years’ imprisonment for each count of paying a kickback, and up to 10 years in federal prison for each money laundering and monetary transaction charge. Monte faces up to 5 years’ imprisonment on each false statement charge. The indictment also notifies Monte and Anderson that the United States intends to forfeit cash, vehicles, and real estate, all of which are alleged to be traceable to proceeds of the offenses.

According to the indictment, in May 2014, Monte and Anderson, acting on behalf of their marketing company Centurion Compounding, Inc., entered into a marketing agreement with the owners of a Pinellas County-based pharmacy called Lifecare. Centurion employed sales representatives to market compounded medications, specifically creams for pain and scars, among others, to beneficiaries of healthcare plans, especially TRICARE. These creams typically ranged in price from $900 to $21,000 for a one-month supply. Between May and November 2014, Monte and Anderson directed the patients that Centurion sales representatives had recruited and the physicians in their network to send all of their compounded cream prescriptions to Centurion, which then transmitted them to Lifecare to fill. 

During this same period, the owners of Lifecare, Carlos Mazariegos and Benjamin Nundy, entered into an agreement with the principals of Centurion to pay illegal kickbacks to Dr. Anthony Baldizzi, a Centurion in-network physician. Lifecare and Centurion agreed to pay Dr. Baldizzi 10 percent of each paid claim resulting from a prescription for compounded cream written for his patients and filled at Lifecare. These prescriptions were often billed to TRICARE.  

Lifecare received approximately $5.3 million from TRICARE for claims made for prescriptions for compounded medications prescribed by Dr. Baldizzi as a result of this illegal kickback scheme. In December 2014, Mazariegos wrote a check for $71,900, funded with the proceeds from the scheme, to pay for a luxury car for Dr. Baldizzi in partial satisfaction of kickbacks owed to him by Lifecare and Centurion.

An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.

Dr. Baldizzi previously pleaded guilty to conspiracy to commit healthcare fraud and receiving healthcare kickbacks. Mazariegos and Nundy previoulsy pleaded guilty to conspiracy to commit health care fraud. They are currently awaiting sentencing.

This case was investigated by the Federal Bureau of Investigation, U.S. Health and Human Services - Office of Inspector General, the Defense Criminal Investigative Service, the U.S. Air Force Office of Special Investigations, and the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Mandy Riedel.

A federal court permanently enjoined a Deltona, Florida, company from selling and distributing unapproved and misbranded new drugs, the Justice Department announced today.

           

In a complaint filed March 14 at the request of the U.S. Food and Drug Administration (FDA), the United States alleged that MyNicNaxs LLC, Chevonne Torres, and Michael Banner sold sexual-enhancement and weight-loss products in violation of the Federal Food, Drug, and Cosmetic Act (FDCA). The complaint alleged that the defendants marketed products as drugs that could help treat or prevent a host of serious conditions or diseases. According to the complaint, the defendants made such claims without FDA approval and without proof of safety and efficacy.

 

The complaint further alleged that FDA tests showed some of the defendants’ products contained undisclosed pharmaceutical ingredients such as sildenafil, the active pharmaceutical ingredient in Viagra; sibutramine, the active pharmaceutical ingredient in a drug that was withdrawn from the market after clinical data indicated that it posed an increased risk of heart attack and stroke; and phenolphthalein, an ingredient that FDA deemed “not generally recognized as safe and effective” after studies indicated that it was a potential carcinogenic risk. The defendants agreed to be bound by a consent decree of permanent injunction filed in U.S. District Court for the Middle District of Florida.

 

“When a company fails to disclose pharmaceutical ingredients in its products, consumer safety can be put at risk,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice will continue to work with the FDA to make sure dietary supplement distributors provide accurate information about what is in their products.”

 

According to the complaint, no credible scientific evidence supported claims the defendants made that their products cured, mitigated, treated, or prevented a number of serious diseases.  In addition, the complaint alleged that the defendants’ products failed to include adequate directions for use, such as dosages, warnings, and side effects. The consent decree, as entered by the court, requires the defendants to implement specific remedial measures to comply with the law and obtain written approval from the FDA before distributing such drugs in the future.

 

“The presence of misbranded drugs represents a threat to the people of our district and the United States,” said U.S. Attorney Maria Chapa Lopez.  “This lawsuit and today’s decree demonstrates our office’s ongoing efforts to safeguard the public from the effects of this type of unlawful conduct.”

 

This matter was handled by Trial Attorney Joshua D. Rothman of the Civil Division’s Consumer Protection Branch, with the assistance of Assistant U.S. Attorney Jeremy R. Bloor of the U.S. Attorney’s Office for the Middle District of Florida and Associate Chief Counsel for Enforcement Anna K. Thompson of the U.S. Department of Health and Human Services’ Office of General Counsel.

 

For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Middle District of Florida, visit its website at https://www.justice.gov/usao-mdfl.

Orlando, FL – A federal court permanently enjoined a Deltona company from selling and distributing unapproved and misbranded new drugs.

In a complaint filed March 14 at the request of the U.S. Food and Drug Administration (FDA), the United States alleged that MyNicNaxs LLC, Chevonne Torres, and Michael Banner sold sexual-enhancement and weight-loss products in violation of the Federal Food, Drug, and Cosmetic Act (FDCA). The complaint alleged that the defendants marketed products as drugs that could help treat or prevent a host of serious conditions or diseases. According to the complaint, the defendants made such claims without FDA approval and without proof of safety and efficacy.

The complaint further alleged that FDA tests showed some of the defendants’ products contained undisclosed pharmaceutical ingredients such as sildenafil, the active pharmaceutical ingredient in Viagra; sibutramine, the active pharmaceutical ingredient in a drug that was withdrawn from the market after clinical data indicated that it posed an increased risk of heart attack and stroke; and phenolphthalein, an ingredient that FDA deemed “not generally recognized as safe and effective” after studies indicated that it was a potential carcinogenic risk. The defendants agreed to be bound by a consent decree of permanent injunction filed in U.S. District Court for the Middle District of Florida.

“When a company fails to disclose pharmaceutical ingredients in its products, consumer safety can be put at risk,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice will continue to work with the FDA to make sure dietary supplement distributors provide accurate information about what is in their products.”

According to the complaint, no credible scientific evidence supported claims the defendants made that their products cured, mitigated, treated, or prevented a number of serious diseases.  In addition, the complaint alleged that the defendants’ products failed to include adequate directions for use, such as dosages, warnings, and side effects. The consent decree, as entered by the court, requires the defendants to implement specific remedial measures to comply with the law and obtain written approval from the FDA before distributing such drugs in the future.

“The presence of misbranded drugs represents a threat to the people of our district and the United States,” said U.S. Attorney Maria Chapa Lopez.  “This lawsuit and today’s decree demonstrates our office’s ongoing efforts to safeguard the public from the effects of this type of unlawful conduct.”

This matter was handled by Trial Attorney Joshua D. Rothman of the Civil Division’s Consumer Protection Branch, with the assistance of Assistant U.S. Attorney Jeremy R. Bloor of the U.S. Attorney’s Office for the Middle District of Florida and Associate Chief Counsel for Enforcement Anna K. Thompson of the U.S. Department of Health and Human Services’ Office of General Counsel.

For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch.

Tampa, Florida – U.S. District Judge Steven D. Merryday has sentenced James J. Jean-Rene (54, Riverview) to seven years and four months in federal prison for conspiracy, theft of government property, and identity theft. As part of his sentence, the court also entered a money judgment in the amount of $850,174.92, the proceeds of the charged criminal conduct. A federal jury found guilty him on October 3, 2017.

According to documents and testimony presented at trial, Jean-Rene deposited more than 100 United States Treasury checks for tax refunds or veterans’ pension benefits into bank accounts for his bail bonds company – A United Bail Bonds. He falsely claimed that the checks were payments for bail bonds. The victims in this case included veterans and elderly and disabled individuals. During the course of the conspiracy, Jean-Rene stole over $850,000.

This case was investigated by the Internal Revenue Service – Criminal Investigation and the Department of Veterans Affairs, Office of Inspector General. It was prosecuted by Assistant United States Attorneys Kristen A. Fiore and Cherie L. Krigsman.

Jacksonville, FL – Shawn Thorpe (30) and Ruben McLain (46), both of Winston Salem, North Carolina, have been sentenced to prison for their participation in a conspiracy to commit healthcare fraud. Thorpe was sentenced to 2 years’ imprisonment and McLain was sentenced to 4 years and 9 months in federal prison. Thorpe and McLain were also ordered to pay $211,311.20 and $1,159,050.51, respectively, in restitution to their victims.   

According to court documents, Thorpe and McLain worked together to create and manage Coastal Bay, a company that provided medical care to Medicaid patients. McLain had been excluded from billing federal healthcare programs based on his 2011 conviction for healthcare fraud. Thorpe never disclosed to the Medicaid program that he was working with an individual who had been excluded from participating in the program. In an effort to conceal his involvement, McLain used an alias – “Julian Winchester;” he performed a variety of functions, including hiring and firing individuals, seeing patients, and performing other managerial tasks using the alias. McLain routinely traveled to Jacksonville from his home in North Carolina to assist in Coastal Bay’s operations. 

McLain and his family received significant financial benefits because of his involvement in Coastal Bay. He had access to a Coastal Bay credit card that he used to make routine purchases at restaurants, furniture stores, gas stations, and other places in North Carolina, even though Coastal Bay had no operations in North Carolina. In addition, he and his immediate family received more than $10,000 in direct payments from the Coastal Bay business account.

This matter was investigated by the U.S. Department of Health and Human Services - Office of Inspector General and the State of Florida Medicaid Fraud Control Unit. It was prosecuted by Assistant United States Attorney Jay Taylor.

Jacksonville, Florida – Donald Edward Smith (65, Ocala) has pleaded guilty to conspiracy to commit wire fraud and to executing a false income tax return. He faces a maximum penalty of eight years in federal prison. A sentencing date has not yet been set.

According to the plea agreement, between September 2011 and September 2015, Smith and others conspired to engage in a scheme to defraud individuals who were interested in investing in green technology and other projects. Operating under his company, Legacy Investments of Brandon, Inc., Smith solicited funds from investors and promised lucrative returns, as well as access to hundreds of millions of dollars in financing. He was assisted by others that purported to offer services to the investors to obtain funding and/or loans for their projects. These funding opportunities and/or loans never materialized.

Smith knowingly failed to report as income the fraudulent proceeds he received from the victim-investors during 2012. For that tax year, he reported a negative income of $15,122 on his Form 1040, when he should have reported $560,924 as income. His failure to do so resulted in a tax loss of $163,726 to the United States. In his plea agreement, Smith agreed to pay approximately $1.45 million in restitution to the victims of the scheme. He also agreed to pay $1,937,127.95 in restitution to victims of a separate scheme involving investments in a purported Styrofoam recycling business, and to pay restitution to the Internal Revenue Service for the tax loss resulting from the false 2012 Form 1040. Additionally, he agreed to forfeit two parcels of real property, sales proceeds from the sale of a third parcel of real property, a number of vehicles, a backhoe, and $1.45 million.

This case was investigated by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, and the State of Florida’s Office of Financial Regulation –Bureau of Financial Investigations. It is being prosecuted by Assistant United States Attorneys Frank Talbot and Bonnie Glober.

Orlando, Florida – The United States filed a civil lawsuit today against Central Medical Systems, LLC (CMS) and Alan Trent Harley alleging that they had falsely billed Medicare for wound care supplies during a six-year period. The complaint alleges that CMS and its owner, Harley, violated the federal False Claims Act by seeking and receiving inflated Medicare payments for more expensive products than had been provided to patients or for products that were never sent. 

According to the government’s allegations, multiple former employees reported that Harley routinely changed quantities of items while billing and manipulated orders in CMS’s billing software. The government’s suit also alleges that CMS billed Medicare for thousands more products than it had purchased. 

The lawsuit was filed under the qui tam provisions of the False Claims Act, which permits private parties to sue on behalf of the United States for false claims for government funds and to receive a share of any recovery. Jael Cancel, the office manager of CMS, filed the whistleblower lawsuit in 2014. The Act also allows the government to intervene or take over the lawsuit, as it has done in this case, and to recover treble damages plus civil penalties ranging from $5,500 to $11,000 for each false claim the defendants submitted.

The claims asserted against CMS and Harley are allegations only, and there has been no determination of liability.

This case was investigated by the Department of Justice and the U.S. Department of Health and Human Services – Office of Inspector General. It is being prosecuted by Assistant United States Attorney Jeremy Bloor.

Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

Tampa, Florida – U.S. District Judge James D. Whittemore has sentenced Brandon Jerome Randolph (29, Bradenton) to 15 years in federal prison for conspiracy to distribute cocaine, cocaine base, heroin, methamphetamine, carfentanil, and fentanyl. He pleaded guilty on December 11, 2017.

According to court documents, Randolph and his associates sold drugs out of a house in Bradenton that operated as an open-air drug market. These drugs included cocaine, cocaine base, heroin, methamphetamine, carfentanil, and fentanyl.  Randolph and his associates sold these drugs to undercover detectives on numerous occasions.

This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation entitled “Hot Batch.” The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The investigation was conducted by the Drug Enforcement Administration and the Manatee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Taylor G. Stout.

Jacksonville, Florida – United States District Judge Timothy J. Corrigan has sentenced Anthony Johnson (53, Jacksonville) to 41 years in federal prison for aggravated identity theft, bank fraud, false representation of a Social Security number, mail fraud, and for violating his federal supervised release. As part of his sentence, the court also ordered him to pay restitution to multiple victims he had defrauded. Johnson was arrested on July 11, 2016, for violating his federal supervised release and he was subsequently indicted on fraud charges on August 10, 2016. He has remained in federal custody since his arrest. On October 19, 2017, a federal jury found Johnson guilty of nine counts of aggravated identity theft, nine counts of bank fraud, seven counts of false representation of a Social Security number, and three counts of mail fraud.

According to evidence presented at trial, beginning in 2014, Johnson falsely claimed to be a former member of the U.S. Army and used the Social Security numbers of two victims, including a lawyer from Seattle, to open a bank account and to obtain a loan and multiple credit cards from USAA in the names of his victims. After obtaining multiple credit card convenience checks, Johnson withdrew thousands of dollars from the USAA bank account for his own use. After obtaining a genuine Florida driver license using the identity of a doctor from Texas, Johnson obtained two fraudulent loans totaling over $148,000 from Bankers Healthcare Group, LLC (BHG). Johnson had the money from BHG wired to a TD Bank business account in the name of a false medical data company he incorporated in Florida. Using the same identity, Johnson then obtained additional loans from Springleaf Financial Services and had the proceeds wired to the bank account he had set up for the false medical data company. Johnson then set up a personal bank account at TD Bank in the victim’s name and began funneling money from the business account to the personal account. Thereafter, Johnson began making large cash withdrawals to fund his purchase of luxury items including a $70,000 luxury car. During this time, Johnson used the identity of a fourth victim to obtain an apartment and then obtained another genuine Florida driver license using the identity of a fifth victim. 

During the summer of 2016, using proceeds from his criminal activity, Johnson left the United States in violation of his federal supervised release imposed after a previous federal conviction for fraud and identity theft-related charges. While on this trip, he stayed at the Waldorf Astoria, purchased high-end personal items, and spent more than $4,000 while visiting a club/restaurant. On July 11, 2016, U.S. Immigration and Customs Enforcement, in coordination with the U.S. Marshals Service, arrested Johnson at the Orlando International Airport for violating the terms of his supervised release.

“The U.S. Secret Service is committed to investigating these types of fraud investigations with our federal, state, and local law enforcement partners due to the impact on the U.S. financial system and our local community,” said Neil Melofchik, Special Agent in Charge of the USSS Jacksonville Field Office.

This case was investigated by the Florida Highway Patrol – Bureau of Criminal Investigations and Intelligence, the Jacksonville Sheriff’s Office, the U.S. Marshals Service, U.S. Immigration and Customs Enforcement, and the United States Secret Service - Jacksonville Field Office. Assistant United States Attorney Kevin C. Frein and Beatriz Gonzalez prosecuted it.

Tampa, Florida – U.S. District Judge James S. Moody, Jr. has sentenced Kirby Gant (56, Bradenton) to 21 years and 8 months in federal prison for possessing with the intent to distribute crack cocaine and hydrocodone, and for possessing a firearm as a convicted felon and in furtherance of a drug trafficking crime.

Gant was found guilty after a bench trial on November 30, 2017.

According to court documents, at 3:40 a.m. on December 5, 2016, officers from the Bradenton Police Department were on foot patrol in the area of Bradenton Village Apartments when they saw a green SUV with a single occupant, later identified as Gant. As two officers approached the vehicle from opposite sides, one of the officers observed a gun. Gant then attempted to force his way past the officers and was arrested after a brief tussle. The officers recovered 9.6 grams of marijuana, 7.2 grams of hydrocodone, and $1,192 in cash from Gant’s person. A loaded 9mm handgun with an obliterated serial number and 7.5 grams of crack cocaine were found inside the SUV. At the time of his arrest, Gant had several prior felony convictions and is therefore prohibited from possessing a firearm or ammunition under federal law.

This case was investigated by the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Shauna S. Hale.

Tampa, FL – Chief U.S. District Judge Steven D. Merryday today sentenced Rico Simmons (42, Tampa) to seven years in federal prison for conspiracy to commit theft of government property, access device fraud, and aggravated identity theft. As part of his sentence, the court also ordered him to pay $156,100.12 in restitution to the Internal Revenue Service, and entered a separate money judgment against him in the same amount.

Simmons pleaded guilty on December 20, 2017.

According to court documents, beginning in August 2012, Simmons and his co-defendants, Natalie Panko (a/k/a Rene Brown) and Mazie Hill, conspired among themselves, and with others, to extract tax fraud proceeds from debit cards using  Panko and Hill’s restaurant businesses – Ladies of the Sea and Mazie’s Soulfood. The conspirators used stolen identities to file false tax returns and activated debit cards and bank accounts that then received the fraudulently claimed tax refunds. Panko and Hill made the debit card charges appear as restaurant-related transactions. Simmons, Panko, and Hill then shared in the proceeds of the fraud.

Panko pleaded guilty earlier this year and is scheduled to be sentenced on April 11, 2018. Hill also pleaded guilty and was sentenced to two years in federal prison.

This case was investigated by the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Megan Kistler and Simon Gaugush.

Jacksonville, Florida – United States District Judge Timothy J. Corrigan has sentenced Kyle Adam Kirby (37, Live Oak) to 120 years in federal prison for producing, attempting to produce, possessing, and accessing images and videos depicting the sexual abuse of minors. Kirby was arrested on October 28, 2015, at the Live Oak Police Department and has remained in the custody of the U.S. Marshals Service since that date. A federal jury found him guilty on December 7, 2017.

According to testimony and evidence at trial, on October 22, 2015, FBI agents and other law enforcement officers executed a search warrant at Kirby’s residence as a result of an online child exploitation investigation. At that time, Kirby was a sergeant with the Live Oak Police Department (LOPD). That same morning, the LOPD chief authorized the agents to inspect and search the computer located inside Kirby’s patrol car. A forensic examination of this computer revealed that it contained images depicting young children engaged in sexually explicit conduct. Kirby had used the patrol car computer to search for, download, access, and possess child pornography from as early as December 24, 2014.

A subsequent search of an LOPD desktop computer used by Kirby revealed images depicting nude and partially undressed children in at least three different bathrooms. Kirby had used one or more concealed cameras to surreptitiously film the unsuspecting minors. He then transferred these images to the LOPD desktop computer, and later unsuccessfully attempted to delete them. Agents were able to locate folders on the computer named for several of his victims.          

Chief Alton “Buddy” Williams from the Live Oak Police Department stated, “I have been in law enforcement for 30 years, and this has been the most difficult situation I have faced. A trusted friend, officer and protector of the public betrayed all facets of the job he swore to do. I realize that mistakes happen, but this was no mistake it was a choice, a choice that has impacted not only his agency, but his trusted friends, family, and community to include all brothers and sisters of the badge. I am appreciative of the FBI, the U.S Attorney’s Office and all others involved. Justice did prevail.”

“This case is another example of the relentless efforts of the FBI and our law enforcement partners to identify those who prey on our children,” said Charles P. Spencer, Special Agent in Charge of the FBI Jacksonville Division. “It is made even more egregious having been committed by someone who swore to uphold the law and protect the community. Let it be known that the FBI will stop at nothing to protect innocent victims, and seek justice for the heinous acts committed against them.”

This case was investigated by the Federal Bureau of Investigation, the Columbia County Sheriff’s Office, and the Florida Department of Law Enforcement, with the full cooperation of the Live Oak Police Department. It was prosecuted by Assistant United States Attorney D. Rodney Brown.

It is another case 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 the United States Attorneys Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.   

Tampa, FL – United States Attorney Maria Chapa Lopez announces the unsealing of an indictment charging Marian Walas (65, Lakeland) with storage of hazardous waste without a permit, in violation of the Resource Conservation Recovery Act (RCRA). If convicted, he faces a maximum penalty of five years in federal prison and a fine of up to $50,000 per day of the violation. Walas was arrested in Atlanta on February 14, 2018.

According to the indictment, Walas was the president and manager of Rincat LLC (now defunct), a business that recycled automotive catalytic converters to recover the precious metal catalysts, mostly consisting of platinum, palladium, and rhodium. This recycling process generated hazardous waste, including chloride, sulfuric acid, and various heavy metals. Between August and December 2010, Walas allegedly stored this hazardous, corrosive, and toxic waste at a warehouse in Lakeland for a period more than 90 days without a permit issued by the United States Environmental Protection Agency or the state of Florida, as required by the RCRA.

Specifically, between March and June 2010, Walas/Rincat hired a waste disposal company to remove eight loads (37,150 gallons) of hazardous waste from Rincat’s warehouse. On June 15, 2010, there were at least 21 containers of hazardous waste present. Walas/Rincat were evicted from the warehouse by the property owner on August 24, 2010. The following month, the Florida Department of Environmental Protection (FDEP) discovered approximately 38,550 gallons of hazardous waste left behind at the warehouse. Thereafter, the property owner worked with FDEP to properly dispose of the hazardous waste at a total cost of approximately $83,000.

An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.

This case was investigated by the Environmental Protection Agency and the Florida Department of Environmental Protection. It will be prosecuted by Assistant United States Attorneys Daniel George and Kelley Howard-Allen.

Tampa, Florida – U.S. District Judge Charlene Edwards Honeywell has sentenced Michael Moore (37, Sarasota) to 15 years and 8 months in federal prison for possessing a firearm and ammunition as a convicted felon. The court also ordered him to forfeit the firearm and ammunition used in the offense.

A federal jury found Moore guilty on December 7, 2017.

According to evidence presented at trial, on May 28, 2017, Moore had an altercation with girlfriend during which he removed her loaded firearm from her car and hid it in a friend’s apartment. The girlfriend then notified police that Moore had stolen her firearm. Days later, after Moore and his girlfriend had reconciled, he retrieved her loaded firearm from the apartment and returned it to her. At the time, Moore had at least 10 prior felony convictions and is therefore prohibited from possessing a firearm or ammunition under federal law. 

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sarasota Police Department. It was prosecuted by Assistant United States Attorneys Kaitlin R. O’Donnell and Michael Baggé-Hernández.

This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

Tampa, FL – U.S. District Judge Virginia Hernandez Covington today sentenced Chris J. McDonald, Sr. (53, Riverview) to one year and one day in federal prison for his role in a conspiracy to commit theft of government property. As part of his sentence, the Court also ordered him to pay $117,952.35 in restitution to the Internal Revenue Service, and entered a separate money judgment against McDonald in the amount of $64,924.

McDonald was found guilty on December 14, 2017, following a four-day jury trial.

This case is related to the earlier federal prosecution of Jeanette Hevel, a former Tampa Police Department (TPD) corporal who stole 13 United States Treasury tax refund checks, money orders, and a refund anticipation loan from various locations inside TPD, including its secure evidence property room. Her unlawful conduct occurred over an approximately 9-month period, beginning in or around September 2011. In April 2015, Hevel pleaded guilty for her conduct pursuant to a plea agreement in which she agreed to cooperate in the government’s ongoing investigation of those responsible for cashing the stolen tax refund checks.

On December 9, 2015, a federal grand jury returned an indictment against McDonald and Joseph Lugo for their roles in the criminal conduct. According to court records, Hevel provided 9 of the 13 stolen tax refund checks to Lugo, who then delivered them to Robert Sanders and McDonald. McDonald deposited the checks into one of his bank accounts and then typically returned to the bank the next business day and withdrew the funds and shared them with the conspirators. None of the conspirators knew any of the payees listed on the tax refund checks, nor did they have permission from any of the payees to possess or deposit the checks.

Lugo pleaded guilty in June 2017. Sanders pleaded guilty in 2014 and testified for the government at trial.

This case was investigated by the Internal Revenue Service – Criminal Investigation and the Tampa Police Department. It was prosecuted by Assistant United States Attorneys Jay G. Trezevant and Frank Murray.

Fort Myers, Florida – Alejo Guerrero (36, Lehigh Acres) today pleaded guilty to 12 felony charges related to the armed trafficking of cocaine and his possession and sale of firearms. Guerrero, who has previously been convicted of robbery and burglary charges, faces a maximum penalty of life in federal prison.

According to court documents, federal and state authorities conducted multiple operations in 2016 and 2017, during which Guerrero sold cocaine and firearms, including an AK-47, to an informant. On October 13, 2017, agents executed a search warrant at Guerrero’s residence. Inside the home, they found Guerrero, along with his girlfriend and an infant child, a stash of cocaine, thousands of dollars in cash, a bulletproof vest, a .357 revolver, and an empty safe. The key for the safe was located next to the toilet.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Lee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Michael V. Leeman.

This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.