Middle District of Florida

Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Efrain Cordoba Carrera (30, Plant City) to two years in federal prison for being an illegal alien in possession of a firearm. He pleaded guilty on August 17, 2017.

 

According to court documents, law enforcement officers executed a search warrant at a residence in Plant City based on evidence that Fausto Beltran Sedano and Lazaro Sandobal Gonzalez were counterfeiting identity documents, such as lawful permanent resident alien cards (also known as green cards) and social security cards, to allow undocumented individuals to unlawfully obtain employment and continue their unlawful presence in the United States. During the execution of the warrant, an arsenal of weapons was found in Carrera’s bedroom, including 11 firearms and hundreds of rounds of ammunition. Two of the firearms had high-capacity magazines and the serial number on one of them was obliterated. Carrera was prohibited from possessing the firearms and ammunition because he was unlawfully present in the United States.

         

"This criminal not only violated our nation's immigration laws, but also illegally possessed more than 10 weapons," said HSI Tampa Special Agent in Charge James C. Spero. "Our communities are safer today because of the hard work of our HSI special agents."

 

In July 2017, Lazaro Sandobal Gonzalez was sentenced to eight months’ imprisonment for transferring a false identification document knowing that it had been produced without lawful authority. In September 2017, Fausto Beltran Sedano was sentenced to 15 months’ imprisonment on the same charge. 

         

This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Adam M. Saltzman.

Tampa, Florida – U.S. District Judge Mary S. Scriven yesterday sentenced Joseph Rumore (34, Plant City) to nine years and two months in federal prison for conspiracy to distribute five kilograms or more of cocaine. As part of his sentence, the Court also entered a money judgment in the amount of $2,560,000, the proceeds of the drug trafficking conspiracy.

 

Rumore pleaded guilty on January 26, 2017.

 

According to court documents, Rumore served as a significant distributor for the Plant City, Florida-arm of a Matamoros, Mexico-based money laundering and drug trafficking organization operating out of SAME Pallets Company in Plant City.  He obtained kilograms of cocaine at the pallet yard and then re-sold them at a profit, selling from one to five kilograms per week throughout most of 2016. During the investigation, law enforcement seized cocaine, methamphetamine, and over $775,000 in drug proceeds from members of the drug trafficking organization. During Rumore’s participation in the conspiracy, the drug trafficking organization obtained at least $3,823,000 in proceeds.

 

“HSI special agents, with our Hillsborough County Sheriff’s Office partners, have dismantled a drug trafficking organization that was targeting our local communities,” said HSI Tampa Special Agent in Charge James C. Spero. “This sentencing highlights HSI’s vigilance in the investigation and prosecution of those engaging in drug activity.”

 

This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Josephine W. Thomas.

Fort Myers, Florida – Acting United States Attorney W. Stephen Muldrow announces that a federal jury has found Victoria Louise Whidden (26, Fort Myers) guilty of two counts of providing a false statement to a federally licensed firearms dealer. She faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.

 

According to testimony and evidence presented at trial, on October 25, 2016, Whidden provided a false statement to Shoot Straight in Fort Myers, a licensed firearms dealer, in connection with her purchase of two AK-47 rifles. Additionally she provided a false statement to another licensed firearms dealer, EBS Arms in Cape Coral, on October 31, 2016, in connection with her attempted purchase of three AK-47 rifles. Whidden’s false statements concerned her misrepresentation of her current residence address at both gun stores.    

 

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney Simon R. Eth.

 

This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, Acting U.S. Attorney W. Stephen Muldrow coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

Ocala, Florida – Acting United States Attorney W. Stephen Muldrow announces that Albert Larry Harris, Jr. (27, Lake County) today pleaded guilty to accepting a bribe as a public official. He faces a maximum penalty of 15 years in federal prison. The sentencing date has not yet been set. 

 

According to the

plea agreement , Harris worked as a correctional officer in a penitentiary at the Coleman Federal Correctional Complex. Beginning in June 2017, he provided inmates at the facility with contraband (drugs and tobacco products) in exchange for large cash payments. Harris met with an undercover federal agent in Ocala on August 22, 2017, where he accepted a $5,000 bribe payment and 200 Suboxone strips for delivery to a federal inmate. Following that exchange, Harris was arrested.

 

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

Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces that Christopher Jaye Boykin (34, Lisman, Alabama) has pleaded guilty to four charges of receiving child pornography over the Internet. He faces a minimum mandatory penalty of 5 years, up to 20 years, in federal prison on each count. 

 

According to court documents, in February 2014, agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations determined that a host computer in Jacksonville, where Boykin was residing, was offering child pornography on a file sharing network. Boykin later pawned that computer at a shop in Jacksonville, and it was seized by law enforcement. On November 14, 2014, HSI agents executed a search warrant at Boykin’s home and seized another computer that he had used to download at least 49 videos depicting sexual abuse of young children. During an interview, Boykin admitted that both computers contained child pornography for his own “viewing pleasure.”

 

This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Jacksonville Sheriff’s Office, and the Jacksonville Beach Police Department. 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 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, Florida – Acting United States Attorney W. Stephen Muldrow announces the unsealing of an indictment charging Jodarin Marquis Whitfield (27, Sarasota), Herbert Adelphus Pinckney (39, Avon Park), and Rashica Shaguana Ford (39, Sarasota) with conspiracy and arson. If convicted, each faces a maximum penalty of 20 years in federal prison.

 

According to the indictment, on March 11, 2015, Whitfield, Pinckney, and Ford set fire to a residential dwelling in Bradenton. At the time of the arson, three adults and five children occupied the home.

 

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 jointly investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the State Bureau of Fire and Arson Investigations, the Bradenton Police Department, the Sarasota County Sheriff’s Office, and the Manatee County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Carlton C. Gammons.

Fort Myers, Florida – Senior U.S. District Judge John E. Steele today sentenced Derrick L. Kinchen (39, Fort Myers) to 15 years and 8 months in federal prison for possessing a firearm and ammunition as a convicted felon. As a three-time convicted felon, he was subject to enhanced penalties under the Armed Career Criminal statute. The Court also ordered him to forfeit the firearm and ammunition associated with the offense.   

 

According to court documents, on July 22, 2016, the Fort Myers Police Department was contacted regarding an individual with a gun at an apartment complex. Following a search in the area, Kinchen was located and identified as the individual with the firearm. As a result of his prior felony convictions, Kinchen is 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 Fort Myers Police Department. It was prosecuted by Assistant United States Attorney Jesus M. Casas. 

 

This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, Acting U.S. Attorney W. Stephen Muldrow coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Javis D. Wilson (39, Tampa) has pleaded guilty to possessing a firearm as a convicted felon. He faces up to life in federal prison. A sentencing date has not yet been set.

 

According to the plea agreement, in 2016, Wilson sold undercover agents cocaine, ammunition, and several firearms, including a 30-06 caliber rifle, a .25 caliber handgun, and a .40 caliber handgun. As a previously convicted felon, he is prohibited from possessing a firearm or ammunition under federal law.

 

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Frank Murray.

 

This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, Acting U.S. Attorney W. Stephen Muldrow coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that U.S. District Judge James S. Moody, Jr. has found Clayton Junior Thornburg (55, Iuka, Mississippi) guilty of attempted enticement of a minor, attempted transfer of obscene material to a minor, transportation of child pornography, and enhanced penalties for sex offenders. He faces a mandatory minimum of 25 years, up to life, in federal prison. His sentencing hearing is scheduled for February 1, 2018.

 

According to evidence presented at trial, between August and November 2015, Thornburg communicated online with an undercover agent who he believed to be a 13-year-old girl. He repeatedly expressed explicit interest in having sex with the “child,” and he sent multiple pornographic images and videos in attempts to illustrate what “it’s like for a young girl to have sex.” Thornburg is a two-time convicted sex offender and was on probation in Illinois for possession of child pornography at the time of the offenses in this case.

 

This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorneys Lisa M. Thelwell and Stacie B. Harris.

 

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.

Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces that Xiu Rong Liu (43) and Liang Wu Yang (44), both of Jacksonville, have pleaded guilty to harboring undocumented aliens for commercial advantage and private financial gain. They each face a maximum penalty of 10 years in federal prison. A sentencing date has not yet been scheduled.

 

Liu and Yang were charged on July 31, 2017.

 

According to court documents, Liu and Yang are husband and wife and operated the Fujiyama Japanese Steakhouse and Sushi Lounge in Jacksonville. On July 6, 2017, U.S. Homeland Security Investigations agents went to a residence in Jacksonville owned by Liu and Yang as part of an unrelated immigration investigation and encountered several people living there. The agents observed mattresses on the floor of the formal dining room, which had been converted into a makeshift bedroom. Further investigation revealed that all of the people who lived at the residence, except one, were undocumented aliens from Indonesia and Guatemala, that they all lived at the house rent free, and that they worked at the Fujiyama restaurant. Yang provided some of the workers with rides between the residence and the restaurant.

 

Under federal law, an employer is required to complete an Enforcement Employment Eligibility Verification Form (I-9) verifying that an employee is lawfully permitted to work in the United States. Liu and Yang did not complete the form certifying the aliens. The aliens were paid in cash and Liu and Yang did not withhold taxes and other payments from the workers’ wages and did not pay the employer’s portion of these payments to government authorities. They also did not report the workers to state revenue authorities as required under Florida law, ensuring the collection of the proper amount of unemployment compensation tax.

 

This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Arnold B. Corsmeier.

Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan has sentenced Matthew Barker (34, Jacksonville) to five years and five months in federal prison for distributing heroin and for possessing a firearm in furtherance of a drug trafficking crime. He pleaded guilty on May 24, 2017.

 

According to court documents, during July 2016, detectives from the Jacksonville Sheriff’s Office and agents from the Federal Bureau of Investigation and the Drug Enforcement Administration were investigating Barker for selling heroin and firearms in Jacksonville. Task force agents purchased almost 7 grams of heroin mixed with fentanyl for $1,500 and a .40 caliber pistol from Barker. FBI SWAT team members later executed a search warrant at Barker’s home and recovered more than 40 firearms and thousands of rounds of ammunition. All of the firearms and ammunition were forfeited to the government.

 

This case was investigated by the Jacksonville Sheriff’s Office, the Federal Bureau of Investigation, and the Drug Enforcement Administration as part of the Organized Crime and Drug Enforcement Task Force. 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. It was prosecuted by Assistant United States Attorney Frank Talbot.

Tampa, FL – U.S. District Judge James S. Moody Jr. today sentenced Samuel Priester to four years in federal prison for tax fraud. As part of his sentence, the Court also ordered him to forfeit the proceeds from the offense and to pay restitution to the Internal Revenue Service in the amount of $152,418.

 

Priester pleaded guilty on June 13, 2017.

 

According to court documents, in March 2012, Priester was in possession of numerous unauthorized prepaid cards, in other peoples’ names, that had been loaded with tax refunds from unauthorized and fraudulently filed federal tax returns. Some of the cards were still attached to mailers from the card issuers. Preister also possessed a hand-written ledger containing personally identifying information (PII) with notations such as “used,” “good,” or “rejected,” along with instructions as to how much money could be withdrawn from ATMs daily, using various types of prepaid debit cards. One of the cards and PII found matched a card that had been used to purchase new merchandise found in Priester’s room. 

 

In total, there were 34 false 2011 income tax returns filed with the IRS from the PII and prepaid cards in Priester’s possession, claiming a total of $230,045. Of these, $205,785 had been accurately noted in the hand written ledger. A total of $152,418 in fraudulent tax refunds were issued.

 

This case was investigated by the Internal Revenue Service – Criminal Investigation and the Bradenton Police Department. It was prosecuted by Assistant United States Attorney Kelley Howard-Allen.

 

Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces that a federal jury has found William B. Pringle, III (55, Orlando) guilty of tax evasion. He faces a maximum penalty of five years in federal prison and a maximum fine of $100,000. His sentencing hearing is scheduled for January 22, 2018.

 

Pringle was indicted on June 14, 2017.

 

According to evidence presented at trial, Pringle owed more than $2.1 million in federal income taxes, interest, and penalties for the years 1996 and 1998-2010.  Over a period of at least nine years, Pringle avoided paying his income taxes by hiding his substantial income and luxury assets from the Internal Revenue Service and engaging in tactics to stop the IRS from locating and seizing his assets to pay the taxes that he owed. 

 

This case was investigated by the Internal Revenue Service, Criminal Investigation. It is being prosecuted by Assistant United States Attorney Karen L. Gable.

Tampa, Florida – U.S. District Judge Steven D. Merryday today sentenced Victor Bermudez-Ruiz (38), a Mexican national, to the statutory maximum penalty of two years in federal prison for illegally reentering the United States after deportation. He pleaded guilty on June 22, 2017. 

 

According to court documents, since 2008, Bermudez-Ruiz illegally entered the United States at least seven times, after being deported. He has been convicted twice for illegal entry in other districts.

 

This case was investigated by U.S. Customs and Border Protection’s Border Patrol. It was prosecuted by Assistant United States Attorney Kristen A. Fiore.

Tampa, Florida– Senior U.S. District Judge Susan C. Bucklew today sentenced Anthony Sanchez (25, Bradenton) to 11 years in federal prison for possessing carfentanil, a Schedule II controlled substance, with the intent to distribute it, and for possessing a firearm in furtherance of a drug-trafficking crime. He pleaded guilty on August 4, 2017.

 

According to court documents, Sanchez sold a stolen Sig-Sauer .9mm caliber pistol and ammunition to an undercover agent at the Desoto Square Mall, in Bradenton. He also sold the agent 10.85 grams of carfentanil, while possessing a loaded .22 caliber revolver.

 

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Manatee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Frank Murray.

 

This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN) — a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, Acting U.S. Attorney W. Stephen Muldrow coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

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, pleaded guilty today for his role in the scheme.  Seven other individuals have previously pleaded guilty in connection to the scheme.  Various real properties, cars and a 50-foot boat will be forfeited as part of the guilty pleas. 

 

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney W. Stephen Muldrow 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 Resident Agent in Charge Brooke Harris of the U.S. Defense Criminal Investigative Service’s (DCIS) Tampa Regional 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 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 will be scheduled before 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 pleaded guilty to conspiracy to commit health care fraud for their roles in the scheme:

 

• Bradley Sirkin, 55, of Boca Raton, Florida;
• Scott P. Piccininni, 49, of Fort Lauderdale, Florida;
• Edwin Patrick Young, 49, of New Port Richey, Florida;
• Wayne M. Kreisberg, 40, of Parkland, Florida;
• Matthew N. Sterner, 48, of New Port Richey, Florida;
• Peter B. Williams, 57, of New Port Richey, Florida; and
• Joseph Degregorio, 71, of New Port Richey, Florida

 

The cars that will be forfeited include a 1936 Ford Deluxe, a 1964 Chevrolet Corvette convertible, a 1967 Chevrolet Camaro, a 1970 Chevrolet Monte Carlo and a 2008 Lamborghini convertible.  The boat that will be forfeited is a 2009 50’7” Cigarette racing boat.   The cars and boat had previously been seized.  The combined equity in the real properties, cars and boat that will be 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 Senior Trial Attorney Christopher J. Hunter and Trial Attorney Timothy P. Loper 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.

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, pleaded guilty today for his role in the scheme.  Seven other individuals have previously pleaded guilty in connection to the scheme.  Various real properties, cars and a 50-foot boat will be forfeited as part of the guilty pleas. 

 

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney W. Stephen Muldrow 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 Resident Agent in Charge Brooke Harris of the U.S. Defense Criminal Investigative Service’s (DCIS) Tampa Regional 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 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 will be scheduled before 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 pleaded guilty to conspiracy to commit health care fraud for their roles in the scheme:

 

• Bradley Sirkin, 55, of Boca Raton, Florida;
• Scott P. Piccininni, 49, of Fort Lauderdale, Florida;
• Edwin Patrick Young, 49, of New Port Richey, Florida;
• Wayne M. Kreisberg, 40, of Parkland, Florida;
• Matthew N. Sterner, 48, of New Port Richey, Florida;
• Peter B. Williams, 57, of New Port Richey, Florida; and
• Joseph Degregorio, 71, of New Port Richey, Florida

 

The cars that will be forfeited include a 1936 Ford Deluxe, a 1964 Chevrolet Corvette convertible, a 1967 Chevrolet Camaro, a 1970 Chevrolet Monte Carlo and a 2008 Lamborghini convertible.  The boat that will be forfeited is a 2009 50’7” Cigarette racing boat.   The cars and boat had previously been seized.  The combined equity in the real properties, cars and boat that will be 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 Senior Trial Attorney Christopher J. Hunter and Trial Attorney Timothy P. Loper 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.

Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces that Charles Cory Thornton (37, Yulee) has pleaded guilty to using hidden cameras in his bathroom to produce pornographic images and videos of an unsuspecting child. He faces a minimum mandatory penalty of 15 years, up to 30 years, in federal prison. A sentencing date has not yet been set.

 

According to court documents, on July 20, 2017, FBI agents executed a search warrant at Thornton’s residence based on suspected online child exploitation activity. When interviewed, Thornton admitted that he had been searching for child pornography online for several years, and that he was sexually attracted to children. The agents seized several cameras and other computer media from the home. Forensic analyses revealed that, from January 2007 through August 2010, Thornton produced at least 88 videos of four different children changing clothes in the bathroom of his home in Florida and the bathroom of a cabin in Virginia. Thornton surreptitiously recorded these videos using tiny cameras hidden in different spots in the bathrooms. Many of the videos captured explicit close-up footage of the children.  

        

This case was investigated by the Federal Bureau of Investigation. 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 – Acting United States Attorney W. Stephen Muldrow announces that Paul Fabrizio Solis (40, Bradenton) has pleaded guilty to producing and possessing child pornography. He faces a minimum mandatory sentence of 15 years, up to 30 years, in federal prison for the production charge, and up to 10 years’ imprisonment for the possession charge.

 

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. The case is being prosecuted by Assistant United States Attorney Kristen A. Fiore.

 

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 – Chief U.S. District Judge Steven D. Merryday yesterday sentenced Gary Paul Moorman (35, Cincinnati, Ohio) to 20 years in federal prison, the statutory maximum penalty, for inducement to travel to engage in criminal sexual activity. He pleaded guilty on July 21, 2017. 

 

According to court documents, Moorman systematically and violently abused multiple victims and induced them, against their wills, to travel between Florida, Ohio, and elsewhere to engage in criminal sexual activity. Specifically, he induced the victims to commit acts of prostitution for his own financial gain. In furtherance of his criminal activity, Moorman took provocative photos of the victims and posted prostitution advertisements on the Internet. After the victims were forced to provide the sex acts, Moorman demanded and took all of the proceeds for himself. 

 

This case was investigated by the Federal Bureau of Investigation (FBI) - Tampa Division (Pinellas Resident Agency), with support from St. Petersburg Police Department and the Clearwater Police Department. Substantial assistance was provided by the FBI’s Cincinnati Field Office and the Cincinnati Police Department. The case was prosecuted by Assistant United States Attorneys Stacie B. Harris and Kristen A. Fiore.

Fort Myers, Florida – Acting United States Attorney W. Stephen Muldrow announces that a federal jury has found Diosme Fernandez Hano (43) and Reinaldo Arrastia-Cardoso, a/k/a “Reinaldo Arrastia” (47), both from Hialeah, guilty of armed robbery and conspiracy to commit armed robbery. Each faces a maximum penalty of 20 years in federal prison. The sentencing hearings are scheduled for January 29, 2018.

 

Hano and Arrastia-Cardoso were charged in a superseding indictment on March 16, 2016.

 

According to evidence presented at trial, on November 30, 2009, Hano and Arrastia-Cardoso committed an armed robbery of a Brink’s armored truck outside of the Fifth Third Bank on Daniels Parkway and Treeline Avenue in Fort Myers. Almost $1.8 million was stolen during the robbery. 

 

This case was investigated by the Federal Bureau of Investigation, the Lee County Sheriff’s Office, the Florida Department of Law Enforcement, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Customs and Border Protection, U.S. Citizenship and Immigration Services, the Tampa Police Department, and the Hillsborough County Sheriff’s Office.  It is being prosecuted by Assistant United States Attorneys Jeffrey F. Michelland and Simon R. Eth.

Jacksonville, Florida –U.S. District Judge Timothy J. Corrigan yesterday sentenced Michael Holmes (53, Jacksonville) to 17 years and 6 months in federal prison for illegal possession of multiple firearms by a convicted felon, and possession with intent to distribute cocaine and cocaine base (“crack cocaine”). He was found guilty in a bench trial before Judge Corrigan on November 12, 2015.

 

According to court documents and testimony at the sentencing hearing, on December 29, 2013, Jacksonville Sheriff’s Office detectives questioned Holmes on the front porch of his home about complaints of drug sales occurring at the property.  When asked to retrieve his identification, Holmes left the detectives on his front porch and attempted to obtain a firearm from his gun safe inside the home. Unable to get the safe open, Holmes returned to the front porch. He later told the detectives that if he had been able to get the safe open, he believed that he would have been able to “take . . . out” at least two detectives before making his escape.

 

While waiting on the front porch, detectives smelled fresh burning marijuana wafting out the front door and, when Holmes returned from inside the home, he admitted to smoking marijuana. The detectives obtained a search warrant for the home and later found the gun safe, 12 firearms, over 1,100 rounds of ammunition, high-capacity magazines, a bulletproof vest, approximately $3,600 in cash, three digital scales, more than 49 grams of marijuana, 20 grams of cocaine base, and 29 grams of powder cocaine. When asked how he came to possess the cache of firearms, Holmes explained, “I sell dope. People come. I buy.” 

 

Holmes has multiple, prior felony convictions, including drug sale convictions. As such, he is prohibited from possessing a firearm or ammunition under federal law.   

 

This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorneys Cherie Krigsman and Michael J. Coolican.

 

This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN) — a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, Acting U.S. Attorney W. Stephen Muldrow coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

 

Tampa, FL – U.S. District Judge Susan C. Bucklew today sentenced Demeko Wells (22, Tampa) to four years and nine months in federal prison for conspiracy to commit credit card fraud and aggravated identity theft. He pleaded guilty on July 19, 2017.

 

According to court documents and statements made in court, from at least January 2015 through November 2016, Wells 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. Investigators learned that these individuals had purchased stolen credit and debit card account numbers online from various websites, some of which used bitcoins as their currency. The conspirators purchased or stole reloadable gift cards and used a machine to emboss the stolen account numbers and their own names onto the front of these altered gift cards, thereby generating 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, Wells was held responsible for more than $350,000 in intended or attempted purchases with counterfeit credit cards and stolen account information.

 

Wells’s co-defendant, Maurice Lewis, pleaded guilty to conspiracy and aggravated identity theft and was sentenced on October 17, 2017, to 61 months in prison. 

 

In a related case, fellow MBM members, Brandon Lewis and Terrance Cobb, were each sentenced to 5 years and 1 month in federal prison; Dontae Williams was sentenced to 5 years and 10 months in federal prison; and Davon Smith was sentenced to 5 years and 5 months in federal prison - all for engaging in a conspiracy to commit credit card fraud, credit card fraud, and identity theft.

 

This case was investigated by the Federal Bureau of Investigation and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Mandy Riedel.

Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Joseph Rodriguez Fraguada (25, Jacksonville) to 11 years and 8 months in federal prison for receiving child pornography. He pleaded guilty on August 25, 2017.

 

According to court documents, the investigation began when various members of the North Florida Internet Crimes Against Children (ICAC) task force separately identified a host computer sharing child pornography from Clay County. Further, detectives in Snohomish County, Washington identified the user of the same host computer actively engaging in online chat communications with a 10-year-old child, during which the user requested the girl to take and send visual images of herself engaging in sexually explicit conduct to him. Law enforcement identified the computer user to be Fraguada.

 

Agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, working in conjunction with the Clay County Sheriff’s Office, executed a search warrant at Fraguada’s residence on April 27, 2017. They located a laptop computer under Fraguada’s bed that was actively running the file-sharing program through which he had been sharing child pornography. Fraguada also had a thumb drive containing a collection of child pornography.

 

“HSI special agents, with our Clay County Sheriff's Office law enforcement partners, have stopped this predator,” said HSI Tampa Special Agent in Charge James C. Spero. “Protecting the most vulnerable in our society will remain a priority for HSI.”

 

This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Clay County Sheriff’s Office, and the Snohomish County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Kelly S. Karase.

 

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 – Acting United States Attorney W. Stephen Muldrow announces that David Owen (39) and Andrew Corrigan (24), both of New Port Richey, have pleaded guilty to conspiring to commit money laundering and extortion. Owen also pleaded guilty to a separate telemarketing mail fraud and money laundering scheme, that involved sweepstakes fraud targeting elderly victims. He faces a maximum penalty of 20 years in federal prison for each of the 12 counts of conspiracy, extortion, and mail fraud. He also faces up to 10 years’ imprisonment on each of the 4 money laundering counts. Corrigan faces a maximum penalty of 20 years in federal prison for each of the money laundering and conspiracy counts.

 

At sentencing, the United States will seek a money judgment of at least $870,652.66, the proceeds of the money laundering and extortion conspiracies, and $315,000 in connection with the sweepstakes fraud. Owen has agreed to the administrative forfeiture of approximately $94,000, which was seized from him and were proceeds of the frauds.

 

According to court documents, Owen and Corrigan recruited individuals to open bank accounts (straw account owners) for the purpose of depositing money extorted from victims of tax impersonation calls, and to conceal their involvement in the fraud. The money was deposited by victims who were contacted by callers who falsely represented themselves as officials with the IRS, Canadian tax authorities, or as local law enforcement officers. The callers demanded payment for federal income taxes or other financial obligations and stated that if the victims failed to pay, they or their family members would face arrest, prosecution, or other legal consequences.

 

With online access provided by the straw account owners, Owen and Corrigan monitored the straw bank accounts in order to verify victims’ deposits and ensure timely withdrawals by the straw account owners. In order to make the withdrawals at the bank, Owen and Corrigan provided the straw account owners with the victims’ names, locations, and amounts of the deposits. They then directed the straw account owners to withdraw the funds in cash, and turn it over to them, often less a payment for their role in the scheme.

 

To facilitate the telemarketing fraud scheme, Owen recruited an individual to “operate” a business and open bank accounts in that business’s name for the purpose of depositing the proceeds of a sweepstakes fraud. Owen’s conspirators called elderly victims and falsely represented that they were with the Publisher’s Clearinghouse lottery, informing the victim that they had won the lottery for millions of dollars. The callers then induced the victims to provide financial information and to send large cashier’s checks to the Florida company, falsely claiming that advance taxes had to be paid in order to collect the full amount of the alleged lottery winnings. Owen, and others, then laundered the proceeds of this fraud scheme.

 

This case was investigated by the Internal Revenue Service – Criminal Investigation, the Treasury Inspector General for Tax Administration, the Federal Bureau of Investigation, the United States Postal Inspection Service, the Pinellas County Sheriff’s Office, the Pasco County Sheriff’s Office, the Largo Police Department, the Gulfport Police Department, the Royal Canadian Mounted Police, and the Toronto Police Department. It is being prosecuted by Assistant United States Attorneys Kelley Howard-Allen and Rachel Jones.

Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces that a federal jury has found Tammie McConico, a/k/a “Tammie Brown,” (56, Orlando) guilty of aiding the preparation of false tax returns. She faces a maximum penalty of 51 years in federal prison. Her sentencing hearing is scheduled for January 8, 2018. 

 

McConico was indicted on April 12, 2017.

 

According to evidence presented at trial, between at least 2010 and 2014, McConico held herself out as a tax preparation expert who offered assistance with federal income tax returns as part of her “ministry” to the community. Her customers would bring her their W-2’s, charitable giving receipts, and other tax documents and she would prepare their tax returns for a fee of $500-$1,000 per return, which McConico would deduct from the customers’ refunds. These returns resulted in significant tax refunds for her customers, which McConico attributed to her vast experience in the tax industry, her attendance at tax seminars, and her previous employment with the Internal Revenue Service. McConico claimed that she spent extra time with each tax return, and that she knew about “hidden” tax deductions that other tax preparers did not get for their customers. In actuality, McConico had never worked in the tax industry, had little tax training, and had never worked for the IRS. She obtained refunds for her customers by putting false information on their returns, without their knowledge, including false losses, income from fake businesses, false family member exemptions, and false higher education expenses. Many of her customers discovered the false information after they were audited by the IRS, and required to pay back their refunds plus interest and penalties. As part of her scheme, McConico collected over $467,687 in tax preparation fees between 2011 and 2012.

 

This case was investigated by Internal Revenue Service - Criminal Investigation. It is being prosecuted by Assistant United States Attorney Vincent S. Chiu.

 

Tampa, Florida– Acting United States Attorney W. Stephen Muldrow announces that a federal jury has found Alvoid Kennon (39, Bradenton) guilty of possessing a firearm and ammunition as a convicted felon. He faces a minimum mandatory sentence of 15 years, up to life, in federal prison. His sentencing hearing is scheduled for January 17, 2018.

 

Kennon was indicted on December 15, 2016.

 

According to testimony and evidence presented at trial, on April 13, 2016, members of the Bradenton Police Department (BPD) were scheduled to execute a search warrant at 1106 3rd Street in Bradenton. Prior to executing the warrant, a BPD detective observed Kennon arrive at the location and park his vehicle at the residence. Kennon had an outstanding warrant for his arrest and a suspended driver’s license. Kennon walked away from the vehicle and head down the street. A few minutes later, additional detectives arrived at the location and when Kennon saw them, he attempted to flee.    

     

After arresting Kennon on the outstanding warrant, detectives returned him to the home and recovered a loaded Glock .40-caliber pistol from the front passenger seat of the vehicle. Kennon has multiple prior felony convictions and is therefore prohibited from possessing a firearm or ammunition under federal law.

 

This case was investigated by Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Bradenton Police Department. It is being prosecuted by Assistant United States Attorneys Shauna S. Hale and Charlie D. Connally.

 

This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN) — a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety-one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, Acting U.S. Attorney W. Stephen Muldrow coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

WASHINGTON – Attorney General Jeff Sessions recognized 202 department employees for their distinguished public service today at the 65nd Annual Attorney General’s Awards Ceremony. Nineteen other individuals outside of the department were also honored for their work. This annual ceremony recognizes individuals for their outstanding service and dedication to carrying out the missions of the Department of Justice. The department will also present one posthumous award to Deputy Commander Patrick T. Carothers for exceptional heroism in the line of duty during a fugitive apprehension in Allenhurst, Georgia on November 18, 2016, in which  Deputy Commander Carothers was mortally wounded.

           

“Every single day, the 115,000 men and women of the Department of Justice work to protect our national security against terrorist threats, defend the civil rights of all Americans, reduce violent crime in our communities, stop deadly drug dealers and their organizations, and strengthen the rule of law,” said Attorney General Sessions.  “This work benefits every American, and each Department of Justice employee plays a role that helps us accomplish our objectives. Today, we take a moment to recognize those who have distinguished themselves by exemplary service to the Department. Each one of these men and women—through their dedication and commitment—has made a difference. Meeting with them and their families today, I am more confident than ever that the Department—and the safety of the American people—are in good hands.”

 

“Today’s recognition of members of our office, DOJ’s Organized Crime and Gang Section, and the Bureau of Alcohol, Tobacco, Firearms and Explosives is well-deserved,” said U.S. Attorney Muldrow. “As a result of their combined, tireless efforts over two years, a violent criminal gang was brought to justice. We will continue to work with our law enforcement partners and the community to reduce crime throughout our district.”

This year’s program honors individuals across the department and our federal, state, local, and tribal partners for their selfless efforts, protecting our national security and our civil rights, addressing rising violent crime in our communities, and going after gangs and those trafficking in dangerous narcotics and human beings.

From the Middle District of Florida, Assistant United States Attorneys Christopher Murray, Natalie Hirt Adams, and Administrative Specialist Abbey Hicks, Special Agents Yannick J. Deslauriers and Melinda G. Sears from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, along with Trial Attorney Marty Ann Woelfle from the Organized Crime and Gang Section, were recognized for their outstanding achievements in the case of United States v. Nathaniel Harris, et al.

Between April 2014 and September 2016, this team successfully investigated and prosecuted six leaders of the most violent gang in Manatee County. For nearly a decade, the Harris defendants operated an extremely violent racketeering enterprise.  The gang’s violence culminated on August 1, 2013, when two defendants stormed a youth football practice and gunned down Coach Brenton Coleman, killing him in front of 300 children and their parents. The recipients prosecuted the six defendants in a 28-count racketeering indictment involving charges for seven murders, one attempted murder, and two armed kidnappings, among many other crimes.  Additionally, the team worked feverishly to prepare over 150 witnesses and over 1,800 exhibits for trial. Through the course of a grueling three-month trial that began on June 6, 2016, the recipients excelled in the complex task of persuasively presenting the testimony of cooperating defendants and other witnesses, coupled with physical, forensic, and electronic evidence. The team’s work resulted in the conviction of all six defendants and sentences ranging from 120 years to multiple life sentences. The Harris case was one of the most complex and successful violent crime prosecutions in the history of the Middle District of Florida. Furthermore, the professionalism, dedication, and devotion to duty of the recipients are in keeping with the highest traditions of the U.S. Department of Justice.

Orlando, Florida – Senior United States District Judge Gregory A. Presnell has sentenced Rigaud Colin (49, Apopka) to two years and three months in federal prison for wire fraud and making a false claim to the United States. He was also ordered to forfeit $189,409, which represents the proceeds Colin obtained as a result of his offenses. Colin pleaded guilty on July 25, 2017. 

 

According to court documents, Colin was the owner and operator of Rigaud Investment Group, Inc., a tax preparation business in Orange County. Using his business, he executed a scheme to defraud the IRS by preparing and filing false and fraudulent income tax returns for residents of the U.S. Virgin Islands who were not eligible to receive tax refunds from the IRS. Colin included false and fraudulent addresses and education tax credit claims in the tax returns that he had electronically filed with the IRS on behalf of the Virgin Islands residents. As a result of Colin’s scheme, the IRS sustained a loss of $1,393,097.

 

This case was investigated by Internal Revenue Service - Criminal Investigation. It was prosecuted by Assistant United States Attorney Andrew C. Searle.

Orlando, Florida – United States District Judge Roy B. Dalton, Jr. has sentenced Laidy Ann Rosaly-Donato (26, Orlando) to five years in federal prison for conspiracy to distribute and possessing with the intent to distribute cocaine. She pleaded guilty on August 1, 2017.

 

According to court documents, between October 2016 and May 2017, Rosaly-Donato received packages of cocaine that were mailed to her home by individuals in Puerto Rico and then later picked up by other co-conspirators. In total, she received 10 packages containing approximately 2 kilograms of cocaine each. She was paid $1,000 for each package she had received. Rosaly-Donato also received, counted, and stored drug proceeds inside her residence.

 

In May 2017, agents recovered two kilograms of cocaine from a package that had been mailed from Puerto Rico and was addressed to Rosaly-Donato. An undercover agent, posing as a mail carrier, delivered the package to Rosaly-Donato at her home. During the execution of a search warrant, agents recovered the cocaine package, which Rosaly-Donato had cut open. Agents also recovered additional drug ledgers, a money-counting machine, and $255,506 in drug proceeds.  

 

This case was investigated by the Drug Enforcement Administration and the United States Postal Inspection Service. It was prosecuted by Assistant United States Attorney Andrew C. Searle.

Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces that a federal jury has found Christopher Gerard Dickerson (38, Sanford) guilty of one count of conspiracy to distribute and possessing with the intent to distribute controlled substances, four counts of distribution and possession with the intent to distribute controlled substances, and one count of possessing a firearm as a convicted felon. He faces a minimum mandatory penalty of 15 years, up to life, in federal prison. A sentencing hearing is scheduled for January 10, 2018.

 

Dickerson was indicted on May 17, 2017.

 

According to testimony and evidence presented at trial, Dickerson conspired with others to possess and sell street-level quantities of heroin, cocaine, fentanyl, and crack. On two occasions in September 2016, in parking lots in east Orlando, Dickerson sold grams of heroin to a confidential informant who was working for law enforcement. Thereafter, he agreed to sell firearms and drugs to an undercover agent with the Orange County Sheriff’s Office. 

 

On March 17, 2017, at a hotel on International Drive in Orlando, Dickerson and a co-conspirator, David Charles Heineman, sold the undercover agent seven firearms, a bag of cocaine, ammunition, and a large-capacity drum magazine for one of the firearms. The firearms included semiautomatic pistols, a tactical rifle, shotguns, and an AK-47 style firearm. Three of the seven firearms had been reported stolen. Heineman also later sold two additional firearms, two bulletproof vests, and other drugs to the undercover agent.    

 

On April 19, 2017, agents executed a federal search warrant at Dickerson and Heineman’s apartment in Titusville. After Dickerson’s arrest, agents recovered a stash of drugs from the apartment, including crack and fentanyl. 

 

Due to his multiple prior felony convictions, including possession of cocaine, delivery of hydromorphone, possession of cocaine with the intent to sell or deliver, and possession of a firearm by a convicted felon, Dickerson is prohibited from possessing a firearm or ammunition under federal law.

 

On October 3, 2017, Heineman pleaded guilty to conspiracy to distribute and possessing with the intent to distribute controlled substances and possessing a firearm as an unlawful user of a controlled substance. His sentencing hearing is scheduled for December 20, 2017.

 

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Orange County Sheriff’s Office, with assistance from the Federal Bureau of Investigation and the Orlando Police Department. It is being prosecuted by Assistant United States Attorney Andrew C. Searle.

 

This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN) — a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety-one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, Acting U.S. Attorney W. Stephen Muldrow coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan has sentenced Raimundo Hogan (41, Jacksonville) to 15 years in federal prison for possessing a firearm as a convicted felon. A federal jury found him guilty on December 15, 2016.

 

According to testimony presented at trial, on February 26, 2016, Hogan was a passenger in a car that was stopped for a seatbelt violation. A patrol officer with the Jacksonville Sheriff’s Office and a civilian observer both witnessed Hogan flee from the vehicle with a Glock pistol in his hand. Hogan threw the pistol and officers later recovered the firearm at the scene. After a short pursuit, Hogan was apprehended.

 

According to court documents and Florida Department of Corrections records, Hogan has prior convictions for escape, armed robbery, aggravated assault, armed carjacking, and possession of a firearm by a convicted felon. As a result, he is prohibited from possessing a firearm or ammunition under federal law.

 

This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorneys Jason Mehta and Frank Talbot.

 

This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN) — a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, Acting U.S. Attorney W. Stephen Muldrow coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

Orlando, Florida – U.S. District Judge Gregory A. Presnell has sentenced Luis Bernardo Gonzalez-Martinez (29, Mexico) to 15 months in federal prison for illegal reentry after deportation, subsequent to an aggravated felony conviction.        

 

Gonzalez-Martinez pleaded guilty on July 25, 2017.

 

According to court documents, Gonzalez-Martinez, a Mexican citizen, was convicted of burglary on May 26, 2009, and sentenced to three years’ imprisonment before being removed from the United States on or about June 12, 2012, and again on June 17, 2013. On April 1, 2017, immigration officers encountered Gonzalez-Martinez, a confirmed member of the Sureños (Sur 13) street gang, back in the United States illegally when he was arrested for possession of marijuana. 

 

“Our communities are safer today with this criminal gang member behind bars,” said Marc J. Moore, field office director for the Miami Field Office of ERO. “This case highlights ICE’s priorities on the arrest and removal of national security and public safety threats, as has been emphasized by our leadership.”

 

This case was investigated by U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations and U.S. Custom and Border Protection’s Border Patrol. It was prosecuted by Special Assistant United States Attorney Christina R. Downes, on assignment from the Office of Principal Legal Advisor, ICE, in the Middle District of Florida.

Orlando, Florida –United States District Court Judge Carlos E. Mendoza yesterday sentenced Anthony Carl Spence (45, Jamaica) to five years and eight months in federal prison for transporting and possessing child pornography. He was found guilty by a federal jury on July 26, 2017. Spence was indicted on March 8, 2017.

 

According to testimony and evidence presented at trial, Spence arrived at the Orlando International Airport from Jamaica on February 6, 2017, with a smartphone. After a routine border search of the smartphone, law enforcement located a video that depicted an adult male sexually abusing a toddler. Later, officers located a second video depicting a young child engaged in sexually explicit conduct. During an interview with law enforcement, Spence admitted that he had shared the videos with multiple people in Jamaica, but claimed that he thought he had deleted the videos before coming to the United States. 

 

"This predator was discovered as he entered our country," said HSI Tampa Special Agent in Charge James C. Spero. "HSI special agents and our U.S. Customs and Border Protection partners will continue to use our border search authorities to keep our citizens safe."

 

This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and U.S. Customs and Border Protection. It was 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.

Jacksonville, FL – Acting United States Attorney W. Stephen Muldrow announces today that Total Lab Care, LLC, a toxicology laboratory based in Jacksonville, Florida, has agreed to pay the government $212,500 to resolve allegations that it violated the False Claims Act. In addition, the company agreed not to participate in any federal healthcare programs in the future.

 

According to the settlement agreement, Total Lab Care, LLC sought reimbursements for urine toxicology samples that were referred from Dr. Nikhil Nihalani. The United States contends these toxicology samples were the product of improper financial remuneration and, as such, the claims were tainted under the Anti-Kickback Statute. The United States contends that Total Lab Care improperly paid a physician for the referral of toxicology samples – samples that are usually tested for drug diversion potential.

 

This settlement reflects the government’s commitment to investigating toxicology laboratories for improper and unnecessary services. Earlier last year, the United States Attorney’s Office reached a $7.4 million False Claims Act settlement with another local toxicology laboratory. Toxicology laboratory tests are one of the fastest growing healthcare expenditures. 

 

“Illegal arrangements in order to boost profits at the expense of the taxpayers will not be tolerated,” said Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services, Office of Inspector General. “This settlement reflects the resolve of the OIG and our partners to ensure accountability in every corner of the health care industry.”

 

This matter was investigated by the U.S. Department of Health and Human Services, the Federal Bureau of Investigation, the Defense Criminal Investigative Service, and the Medicaid Fraud Control Unit. It was handled by Assistant United States Attorneys Shea Gibbons and Jason Mehta.

 

The claims resolved by this settlement are allegations only, and there has been no determination of liability. 

Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces that a federal jury has found Anthony Johnson (52, Jacksonville) 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. He faces up to 30 years in prison for each bank fraud offense; up to 20 years’ imprisonment for each mail fraud offense; up to 5 years in prison for each charge of falsely representing a Social Security number; up to 3 consecutive years in prison for violation of supervised release; and a mandatory minimum penalty of 2 years’ imprisonment for each aggravated identity theft count. No date has been set for sentencing or the violation hearing.

 

Johnson was indicted on August 10, 2016.

 

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

 

During this time, Johnson used the identity of a fourth victim to obtain an apartment under that victim’s name and then obtained another Florida driver’s license under the identity of a fifth victim. Using proceeds from his criminal activity, Johnson left the United States and traveled to Dubai in June and July of 2016. While there, he spent more than $4,000 at a club/restaurant, stayed at a high-end hotel, and purchased expensive personal items.  

 

On July 11, 2016, U.S. Immigration and Customs Enforcement, in coordination with the U.S. Marshals Service, arrested Johnson for violation of supervised release as he reentered the United States at Orlando International Airport. He was detained and has remained in federal custody since that time.

 

This case was investigated by the Florida Highway Patrol – Bureau of Criminal Investigations and Intelligence, the Jacksonville Sheriff’s Office, the U.S. Marshal Service, U.S. Immigration and Customs Enforcement, and the U.S. Secret Service (Jacksonville Field Office). It is being prosecuted by Assistant United States Attorneys Kevin C. Frein and Beatriz Gonzalez.

Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces the unsealing of an indictment charging Ernest Ray Lewis with 17 counts of aiding and assisting in the filing false of tax returns, and 4 counts of failing to file a tax return. Each aiding and assisting offense carries a maximum penalty of three years’ imprisonment. Each failing to file a tax return offense carries a penalty of up to one year in prison.

 

According to the indictment, Lewis worked at a tax return preparation business in Jacksonville. The indictment alleges that Lewis knowingly reported false information on customers’ income tax returns, including false claims for business losses and dependent exemptions, which decreased the amount of money owed by the customers to the Internal Revenue Service (IRS) and increased the amount of tax refunds received by the customers from the IRS. The indictment specifically alleges that Lewis filed 17 false returns on behalf of 10 taxpayers for the years 2012 through 2015.

 

The indictment also alleges that Lewis was required to file a tax return reporting his own income for each of the years, from 2012 through 2015, but failed to do so.

 

The owner of the tax return preparation business (Elizabeth M. Jordan) and her daughter (Dolores A. Youmans), who worked as a preparer at the business, were also indicted on June 30, 2016, with conspiracy to defraud the IRS and aiding and assisting others with the filing of false tax returns. Their cases remain pending.

 

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 Internal Revenue Service - Criminal Investigation. It will be prosecuted by Assistant United States Attorney Arnold B. Corsmeier.

Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces that a federal jury has found Joshua Otis Gordon Carter (26, Apopka) guilty of possession with intent to distribute more than 500 grams of cocaine and possession of a firearm by a convicted felon. He faces a mandatory minimum penalty of 10 years, up to 40 years, in federal prison. His sentencing hearing is scheduled for January 2018.

 

Carter was indicted on October 26, 2016.

 

According to evidence presented at trial, on February 29, 2016, officers executed a search warrant at a home in Apopka, where Carter lived with his girlfriend and three small children. In the master bedroom closet of the home, officers discovered a loaded firearm, more than one kilogram of cocaine, and more than $11,000 in cash. At the time of the search, Carter was a previously-convicted felon and, therefore, prohibited from possessing a firearm or ammunition under federal law.

 

This case was investigated by the Drug Enforcement Administration and the Altamonte Springs Police Department. It is being prosecuted by Assistant United States Attorneys Nathan W. Hill and Shawn Napier.

Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Karlos Alexander Wilson, Jr. (24, Pinellas Park) today pleaded guilty to two counts of brandishing a firearm during and in relation to a crime of violence.  He faces a minimum mandatory penalty of 32 years, up to life, in federal prison.

 

According to the plea agreement, on January 14, 2017, Wilson and a co-conspirator (CC-1) committed an armed robbery at a Family Dollar Store in Tampa, stealing approximately $3,300 from the store. On June 3, 2017, Wilson and CC-1 committed another armed robbery at a Family Dollar Store in Hillsborough County, stealing approximately $685 from the store. Forensic analysis of DNA from the crime scene led to his arrest.

 

This case was investigated by Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Tampa Police Department, and the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Christopher F. Murray.

 

This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN) — a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety-one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, Acting U.S. Attorney W. Stephen Muldrow coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

Jacksonville, FL – Acting United States Attorney W. Stephen Muldrow announces that Shawn Thorpe (30) and Ruben McLain (46), both of Winston Salem, North Carolina, have pleaded guilty to conspiracy to commit healthcare fraud. Each faces a maximum penalty of five years in prison and a fine of up to $250,000. A sentencing date has not yet been set. 

 

According to the plea agreements, Thorpe and McLain agreed that McLain was an “excluded provider” – meaning that he was prohibited from billing the federal health care programs for any services. McLain had been excluded from participation in these programs due to an earlier 2011 federal conviction for health care fraud.

 

Notwithstanding this exclusion, Thorpe and McLain together worked to create and manage Coastal Bay, a company that provided medical care to Medicaid patients. 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 McLain’s involvement, McLain used an alias – “Julian Winchester.” Through this alias, McLain performed a variety of functions, including hiring and firing individuals, seeing patients, and performing other managerial tasks. McLain routinely traveled from his home in North Carolina, to Jacksonville, to assist in Coastal Bay’s operations. 

 

McLain and his family received significant financial benefits due to his involvement in Coastal Bay. Specifically, McLain had access to a Coastal Bay credit card, which 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, McLain and his immediate family received more than $10,000 in direct payment withdrawals from the Coastal Bay business account.

 

This matter was investigated by the U.S. Department of Health and Human Services and the State of Florida Medicaid Fraud Control Unit. It is being prosecuted by Assistant United States Attorney Jason Mehta and Jay Taylor.

Orlando, Florida – U.S. District Judge G. Kendall Sharp today sentenced Jaime H. Fort (36, Orlando) to 5 years and 5 months in federal prison for aggravated identity theft and bank fraud. He pleaded guilty on July 26, 2017.

 

 According to court documents, between January and March 2016, Fort and two of his associates executed a scheme to defraud several federally-insured financial institutions. As part of the scheme, they obtained the names, dates of birth, and Social Security numbers of identity theft victims and used these stolen identities to create counterfeit Florida driver’s licenses. They then used the counterfeit licenses to obtain financing from banks, in the victims’ names. The conspirators purchased three luxury vehicles at Orlando-area car dealerships with this financing, including two Mercedes-Benz vehicles and a Cadillac Escalade. They then sold these vehicles for cash. 

 

Fort and his associates also used the counterfeit licenses to obtain credit and make fraudulent purchases in victims’ names at various retail stores in the Orlando area. In total, Fort is responsible for more than $175,000 in actual or attempted purchases made using credit obtained in the names of his victims.

 

Fort’s associates, Sena Howell and Sean White, were also charged for their roles in this case. Howell pleaded guilty and was sentenced on March 16, 2017, to 27 months’ imprisonment. White is currently a fugitive and remains at large.

 

This case was investigated by the U.S. Secret Service and the Orlando Police Department. It is being prosecuted by Assistant United States Attorney Chauncey A. Bratt.

Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces that Ashish Bahl (52, Jacksonville), who also resides in Atlanta, Georgia, today pleaded guilty to conspiracy to commit mail and wire fraud. He faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.

 

According to the plea agreement, Bahl engaged in fraudulent business activities related to the SunTrust Bank building located near the Jacksonville Landing. From September 2005 to March 2015, the ownership of the building was structured as a business condominium governed by certain charter documents. In 2009, Parador Partners, LLC, which included Bahl as an owner, purchased a majority interest in the building. Parador owned approximately 73% of the office condos in the building, and carried an even greater share of the operating expenses. The condominium owners were members of an association called The River Watch at City Centre Condominium Association, Inc. Based upon Parador’s majority ownership of the building, Bahl controlled the board of directors for the association and was associated with the management company for the building.

 

Bahl significantly inflated special assessments for various building expenses and intentionally led the other condo owners to believe that the invoices they were presented were correct and accurate, when in fact, they were inflated. Bahl, with the assistance of others, made agreements with contractors to submit inflated invoices for various special assessment maintenance issues, which were paid by the condo association. Then, as part of an agreement with the contractor, the majority of the invoiced amount was provided as a “kick-back” to another one of Bahl’s companies, Dellwood Associates.

 

In addition to defrauding condo owners, Bahl also used River Watch’s bank account for personal expenses, including replacing an air conditioner ($5,457) in his Atlanta home, and remodeling his children’s bedroom ($7,150).

 

The total amount Bahl received as a result of the fraud was $135,396.06

 

This case was investigated by Federal Bureau of Investigation. It is being prosecuted by Special Assistant United States Attorney Mark B. Devereaux and Assistant United States Attorney Jason P. Mehta.

Ocala, Florida – Acting United States Attorney W. Stephen Muldrow announces that Richard Jeremy Ware (42, Ocala) today pleaded guilty to a one-count indictment charging him with making threats against the President of the United States. Ware faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.

 

According to court documents, on March 27, 2017, while an inmate at a federal prison in Sumter County, Ware wrote a letter in which he threatened to murder the President of the United States upon his upcoming release from custody.  He added, “I assure you that I am serious[!]” After completing the letter, Ware submitted it for delivery by the Postal Service. When a corrections officer subsequently discovered the letter, he confronted Ware about the threat. Ware confirmed that he had written the letter and that it belonged to him.

 

This case was investigated by the U.S. Secret Service and the Federal Bureau of Prisons. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.

Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Steven Zoernack (55, Sarasota) to 5 years in federal prison for conspiring to commit wire fraud. He was also ordered to forfeit $2,890,518.54 in ill-gotten gains and to make restitution to victims in the amount of $3,435,194.56. Zoernack pleaded guilty on March 31, 2017.

 

According to court documents, Zoernack owned and operated an investment advisory firm, EquityStar Capital Management LLC (“EquityStar”), through which he formed and managed multiple hedge funds, including the Petroleum Black Energy Fund, the Global Partners Fund, and the Momentum Growth Fund. Beginning in August 2012, Zoernack and his co-conspirators marketed these funds to accredited investors across the United States and Canada from offices in Sarasota and New Port Beach, California. They ultimately raised more than $6 million through their solicitations. 

 

In marketing the funds, Zoernack failed to disclose numerous material facts about his background and the funds he was managing. Specifically, he failed to disclose that he had been convicted on federal wire fraud charges in 2007; had previously filed for bankruptcy; had a history of tax liens and adverse money judgments; and still owed hundreds of thousands of dollars in restitution to past fraud victims. In fact, Zoernack actively sought to conceal his past by misappropriating fund assets to pay an online reputation manager to manipulate Internet search engine results about him to prevent potential investors from learning of his past. He also routinely lied about his educational background and expertise as an investment manager, and his experience in the financial industry. Similarly, Zoernack lied about the educational backgrounds and professional experience of his employees, as well as the size of the firm’s staff. He repeatedly impersonated former EquityStar employees and corresponded with investors online using fictitious names and phony email accounts. In addition, he lied to potential investors about his portfolio’s ratings, profits, market returns, and losses.

 

After obtaining investor contributions, Zoernack began misappropriating fund assets for his personal use. Specifically, he made monthly withdrawals of unauthorized “salaries” and “bonuses” in amounts ranging from $12,000 to $25,000 and used these and other fund assets to pay for personal and non-business related expenses, none of which were disclosed to investors. In total, through a combination of trading losses and the misappropriation of fund assets, Zoernack lost millions of dollars of investors’ money. 

 

This case was investigated by the Federal Bureau of Investigation, alongside a parallel civil enforcement action brought by the Securities and Exchange Commission.  It was prosecuted by Assistant United States Attorney Eric K. Gerard. 

Tampa, FL – U.S. District Judge Susan C. Bucklew today sentenced Maurice Lewis (22, Tampa) to 5 years and 1 month in federal prison for conspiracy to commit credit card fraud and aggravated identity theft. He pleaded guilty to the charges on July 10, 2017.

 

According to court documents and statements made in open court, from at least January 2015, through November 2016, Lewis and other individuals affiliated in some way with the “Manche Boy Mafia” or “MBM” organization conspired to commit credit card fraud and identity theft in the Tampa Bay area. Investigators learned that these individuals had purchased stolen credit and debit card account numbers online from various websites, some of which used bitcoins as their currency. The conspirators purchased or stole reloadable gift cards and used a machine to emboss the stolen account numbers and their own names onto the front of these altered gift cards, thereby generating 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, Lewis was held responsible for more than $350,000 in intended or attempted purchases with counterfeit credit cards and stolen account information.

 

Lewis’ co-defendant, Demeko Wells, pleaded guilty to conspiracy and aggravated identity theft. He is scheduled to be sentenced on October 31, 2017.

 

In a related case, fellow MBM members (Brandon Lewis and Terrance Cobb) were each sentenced to 5 years and 1 month in federal prison; Dontae Williams was sentenced to 5 years and 10 months’ imprisonment; and Davon Smith was sentenced to 5 years and 5 months in federal prison - all for engaging in a conspiracy to commit credit card fraud, credit card fraud, and identity theft.

 

This case was investigated by the Federal Bureau of Investigation and the Tampa Police Department. It is being prosecuted by Assistant United States Attorney Mandy Riedel.

Tampa, Florida – U.S. District Judge Steven Merryday today sentenced attorney Perry Don Cortese (54, Little River, Texas) to 25 years in federal prison for conspiracy to commit international money laundering and conspiracy to commit mail and wire fraud. As part of his sentence, the Court entered a money judgment in the amount of $9,288,241.36. Cortese was also ordered to pay restitution to the victims in the amount of $3,767,196.

 

A federal jury found Cortese guilty on October 21, 2016.

 

According to the evidence presented at trial, Cortese and his business partner, Priscilla Ann Ellis, as well as Ellis’s daughter, Kenietta Rayshawn Johnson, were members of an international criminal organization that defrauded dozens of victims across the United States and then laundered the funds. Much of the money was sent overseas. Many victims were law firms that had been solicited online to perform legal work, provided counterfeit cashier’s checks for deposit into the firms’ trust accounts, and then directed to wire money to third-party shell businesses controlled by the conspirators. Others victims included title companies defrauded in phony real estate transactions or individuals targeted by fake suitors on dating websites. The conspiracy also employed hackers who compromised both individual and corporate email accounts, ordering wire transfers from brokerage and business accounts to shell accounts controlled by conspirators.

 

As part of the scheme, victims were instructed to wire money into funnel accounts held by conspirators, known as “money mules.” The funds were then then quickly moved to other accounts in the United States and around the world before the victims could discover the fraud. Bank records indicated that, from 2012 to 2015, several million dollars’ worth of wire transfers were received into the accounts to be laundered. Conspirators in Canada, Nigeria, South Korea, Senegal, and elsewhere helped coordinate the fraud from abroad. 

 

Cortese, a licensed attorney in Texas, worked for the conspirators by laundering victims’ money through his interest on lawyers trust accounts (“IOLTAs”). He also met with individuals in person to retrieve cash withdrawn from receiver accounts and recruited his paralegal and others to open such accounts to launder funds. Ellis laundered several million dollars’ worth of fraud proceeds through several bank accounts under her control. She also arranged for the creation of high-quality forgeries of checks and other documents. Johnson, then a bank employee at Capital One, helped create the counterfeit checks and monitor money flows between the conspirators’ accounts.

 

For her role in the conspiracy, Ellis was sentenced to 40 years in prison. As part of her sentence, the Court entered a money judgment against her in the amount of $9,288,241.36 and the forfeiture of various assets. In addition, she was ordered to pay $3,767,196 in restitution to her victims.

 

This case was investigated by the Federal Bureau of Investigation, with assistance from various federal and local law enforcement partners throughout the country, including the U.S. Postal Inspection Service, and the Toronto Police Service in Ontario, Canada. The case was prosecuted by Assistant United States Attorneys Patrick Scruggs and Eric Gerard.

Tampa, FL – Acting United States Attorney W. Stephen Muldrow announces that a federal jury has found David Paul Lynch (56, Venice) guilty of eight counts of producing and attempting to produce child pornography, two counts of traveling with the intent to engage in illicit sexual conduct, one count of receiving child pornography, and one count of possessing child pornography. He faces a mandatory minimum penalty of 15 years, up to 30 years, in federal prison for each production count, up to 30 years’ imprisonment for each travel count, a mandatory minimum penalty of 5 years, up to 20 years, for receiving child pornography, and up to 10 years in prison for possessing child pornography. His sentencing hearing is scheduled for January 11, 2018. Lynch was indicted on January 26, 2017.

 

According to testimony and evidence presented at trial, Lynch traveled to the Philippines regularly between 2005 and 2016 to have sex with children and make recordings of the abuse. Prior to his trips, he communicated online with individuals in the Philippines in order to locate children to sexually exploit. Lynch produced child pornography of at least three Filipino children on these visits and also solicited child pornography via email of a fourth. He was arrested in San Francisco attempting to board a flight to the Philippines on December 30, 2016. During a simultaneous search of his home in Venice, Florida, FBI agents located dozens of self-produced images and videos of child pornography from his trips.  

    

This case was investigated by the FBI, U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Sarasota Police Department, the Cape Coral Police Department, the Bradenton Police Department, and the Lee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Jennifer L. Peresie and Eric K. Gerard.

 

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 – U.S. District Judge Steven D. Merryday has sentenced Duane Crithfield (70, Lecanto) to four years and six months in federal prison and Stephen P. Donaldson, Sr. (72, Tampa) to six years’ imprisonment for their roles in a conspiracy to defraud the United States using an offshore tax shelter scheme. A separate hearing will be held at a later date to determine the amount of restitution owed by the two defendants.

 

Crithfield and Donaldson were indicted on May 2, 2013, for conspiracy to defraud the United States. A superseding indictment was returned on July 25, 2013, that added two substantive charges.

 

As alleged in the superseding indictment, from 2001 to at least March 2008, Crithfield and Donaldson, and others, through Foster & Dunhill, Offshore Trust Service, Fidelity Insurance Company ("FIC"), and Citadel Insurance Company ("CIC") promoted, marketed, and implemented a fraudulent offshore tax strategy known as the Business Protection Plan ("BPP"). The fraudulent BPP strategy enabled the defendants' affluent clients to claim business expense deductions based on sham “BPP insurance premium” payments made to offshore entities FIC and CIC in amounts intended primarily to substantially reduce the clients' taxable income for a particular year.

         

According to court records and evidence admitted during the bench trial, Crithfield and Donaldson conspired together, and with others, to create and promote the offshore BPP tax shelter strategy. The strategy, however, was nothing more than self-insurance and was devoid of any economic substance and the so‑called “BPP insurance premiums” were not based on any business risks. After obtaining the benefit of a tax deduction on a client's corporate income tax return, the client would later receive approximately 83‑85% of the premium back. Thus, the premium amounts were not ordinary and necessary business expenses that were entitled to deductions under Section 162(a) of the Internal Revenue Code. Rather, they were merely sham expenditures and not properly deductible for U.S. income tax purposes on the respective businesses’ tax returns.

 

This case was investigated by the Internal Revenue Service. It was being prosecuted by Assistant United States Attorneys Jay G. Trezevant and Megan K. Kistler.

Tampa, Florida – U.S. District Judge Steven Merryday today sentenced Priscilla Ann Ellis (52, Killeen, Texas) to 40 years in federal prison for conspiracy to commit international money laundering and conspiracy to commit mail and wire fraud. As part of her sentence, the Court entered a money judgment in the amount of $9,288,241.36, and ordered the forfeiture of various assets, including Ellis’s bank accounts, properties, and a luxury vehicle. The Court also ordered Ellis to pay restitution to the victims of the offenses in the amount of $3,767,196.

 

A federal jury found Ellis guilty on October 21, 2016. 

 

According to evidence presented at trial, Ellis, her attorney, Perry Don Cortese, and her daughter, Kenietta Rayshawn Johnson, were members of an international criminal organization that defrauded dozens of victims across the United States and then laundered the funds, much of which were sent overseas. The fraud schemes took several forms. Many victims were law firms solicited online to perform legal work, provided counterfeit cashier’s checks for deposit into the firms’ trust accounts, and then directed to wire money to third-party shell businesses controlled by the conspirators. Others were title companies defrauded in phony real estate transactions.  Other victims were targeted and defrauded by fake suitors on dating websites. The conspiracy also employed hackers who compromised both individual and corporate e-mail accounts, ordering wire transfers from brokerage and business accounts to shell accounts controlled by conspirators.

 

Victims were instructed to wire money into funnel accounts held by conspirators, known as “money mules.” The funds were then quickly moved to other accounts in the United States and around the world before the victims could discover the fraud. Bank records presented at trial indicate that, from 2012 to 2015, several millions dollars’ worth of wires were received in such accounts to be laundered.  Conspirators in Canada, Nigeria, South Korea, Senegal, and elsewhere helped coordinate the fraud and money laundering activity from abroad. 

 

Ellis laundered several million dollars’ worth of fraud proceeds through her bank accounts and other accounts under her control. She also arranged for the creation of high-quality forgeries of checks and other documents. Cortese, a licensed attorney in Texas, worked for the conspirators by laundering victim money through his interest on lawyers trust accounts (“IOLTAs”). He also met with individuals in person to retrieve cash withdrawn from receiver accounts. Cortese recruited his paralegal and others to open such accounts to launder funds. The evidence further showed that Johnson, then a bank employee at Capital One, helped create counterfeit checks and monitor money flows between accounts controlled by conspirators.

 

On November 29, 2017, Ellis is scheduled to be sentenced in a related matter, in which a jury found her guilty of conspiracy to commit counterfeiting, using interstate commerce facilities in the commission of murder-for-hire, and retaliating against a witness.

 

This case was investigated by the Federal Bureau of Investigation, with assistance from various federal and local law enforcement partners throughout the country, including the United States Postal Inspection Service, and the Toronto Police Service in Ontario, Canada. The case was prosecuted by Assistant United States Attorneys Patrick Scruggs and Eric Gerard.

Jacksonville, FL – Acting United States Attorney W. Stephen Muldrow announces that First Coast Cardiovascular Institute, P.A. (“FCCI”) has agreed to pay $448,821.58 to resolve allegations that it violated the False Claims Act by knowingly delaying repayment of more than $175,000 in overpayments owed to Medicare, Medicaid, TRICARE, and the Department of Veterans Affairs.

 

Specifically, the government alleges that FCCI accrued credit balances or overpayments owed to federal health care programs. These credit balances often occur in a medical practice, for example, when two insurers share responsibility for a payment and one pays too much. In 2009, amendments to the False Claims Act made it a violation to knowingly fail to pay back an obligation owed to the United States and its federal health care programs. Despite repeated warnings, FCCI failed to pay back the money it owed to Medicare, Medicaid, TRICARE, and the VA until being notified that the Department of Justice had opened an investigation into their failure to repay the government.

 

“When FCCI learned that it had received over $175,000 in potential overpayments to federal health care programs in 2016, it had a legal obligation to return those funds within 60 days,” stated Acting U.S. Attorney Stephen Muldrow. “Instead, they delayed repayment, ultimately retaining thousands of dollars to which they were not entitled. This settlement should send a message that we will aggressively pursue those who seek to unjustly profit from our nation’s federal health care programs.”

 

“This settlement is the result of successful inter-agency cooperation, resulting in the return of overpayments owed back to the government,” stated Special Agent in Charge Monty Stokes from the Office of Inspector General, U.S. Department of Veterans Affairs. “This settlement will hopefully be a deterrent for others who consider similar practices.”

 

“Failing to return Medicare overpayments is unacceptable and diverts critical tax dollars from their intended purpose,” said Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services, Office of Inspector General. “The OIG, along with our law enforcement partners, will hold health care companies accountable who knowingly hold onto Medicare funds to which they are not entitled.”

 

“This settlement demonstrates the ongoing commitment of the Defense Criminal Investigative Service to protect the integrity of the U.S. military health care program, known as TRICARE,” said Special Agent in Charge John F. Khin, Southeast Field Office. Through joint investigations with our investigative partners, DCIS aggressively pursues all remedies against medical providers who fail to deal honestly with the Department of Defense, to preserve our tax dollars where they are needed most.”

 

The settlement concludes a lawsuit originally filed by a former employee of FCCI, Douglas Malie, in the United States District Court for the Middle District of Florida. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action, as it did in this case. Mr. Malie will receive roughly $90,000 of the proceeds from the settlement with FCCI.

 

The government’s action in this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips 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).

 

The settlement was the result of a coordinated effort by the U.S. Attorney’s Office for the Middle District of Florida, the State of Florida, the Defense Criminal Investigative Service, the Department of Veterans Affairs, and the U.S. Department of Health and Human Services – Office of Inspector General. It was handled by Assistant U.S. Attorney Shea Gibbons.

 

The case is captioned United States and the State of Florida ex rel. Malie v. First Coast Cardiovascular Institute, P.A., et al., Case No. 3:16-cv-10548-J-34MCR. The settlement resolves the United States’ claims in that case. The claims resolved by the settlement are allegations only, and there has been no determination of liability.