Middle District of Florida

Orlando, Florida – U.S. District Judge Paul G. Byron today sentenced Jesse B. Ingram, Jr. (35, Apopka) to 15 years and 5 months in federal prison for being a felon in possession of a firearm, attempting to possess with the intent to distribute a controlled substance, and possessing a firearm in furtherance of a drug trafficking crime. He pleaded guilty on March 29, 2017.

 

According to court documents, Ingram possessed a firearm while attempting to distribute a substance that he believed was heroin. As a previously convicted felon, he is prohibited from carrying a firearm or ammunition under federal law.

 

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Orange County Sheriff’s Office, and the Apopka Police Department. It was prosecuted by Assistant United States Attorney Sean P. Shecter.

 

This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. Acting United States Attorney W. Stephen Muldrow, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.

Jacksonville, Florida – U.S. District Judge Marcia Morales Howard today sentenced Salih Zeki Uces (39) to 21 months in federal prison for international parental kidnapping. A federal jury found him guilty on March 2, 2017.

 

According to testimony and evidence presented at trial, on September 16, 2016, Uces asked his estranged wife for an overnight visit with their two-year old child at a Jacksonville hotel and promised to return her on the following day or the day after. Instead, he took the toddler to the Jacksonville International Airport and boarded a series of three flights bound for Adana, Turkey.

 

Two days before taking the child, Uces went to his estranged wife’s apartment, rifled through her personal items, and stole the child’s passport. While in her apartment, he also viewed a draft divorce petition in his wife’s email.

 

Three days before leaving, Uces signed a power of attorney over to his brother, allowing his brother to sell Uces’s car while he was in Turkey. On the day of the kidnapping, Uces closed out his safety deposit box at a local bank branch.

 

Uces refused his estranged wife’s requests to return the child until after he learned that a state court had issued an authorization for his arrest. Ultimately, on November 10, 2016, he returned to the United States with the child and was arrested by FBI agents. The child was immediately returned to her mother.

 

This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Laura Cofer Taylor and Kelly Karase.

Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced Julie W. Kronhaus (52, Winter Park) to 10 years in federal prison for wire and bank fraud. In addition, she was ordered to pay over $2.7 million in restitution.

 

Kronhaus pleaded guilty on January 24, 2017.

 

According to court documents, from June 2009 to February 17, 2015, Kronhaus, who was a licensed attorney and Certified Public Accountant in Florida, defrauded her clients and banks of approximately $2.7 million. As part of her practice, Kronhaus acted as a trustee for her clients and also held their money in various bank accounts. Rather than using the funds for the purpose intended by her clients, Kronhaus diverted the money into her law firm’s bank accounts and paid for her personal expenses.

In addition, Kronhaus engaged in a check kiting scheme where she wrote checks from accounts that had insufficient funds. She deposited the worthless checks into her trust account at another bank to give the appearance that there were sufficient funds in the account. She then issued checks from her trust account to her clients, taking advantage of the bank’s float time.

 

This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney James D. Mandolfo.

Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Ronald Stephenson (44, Palmetto) to 15 years in federal prison for possessing a firearm and ammunition as a convicted felon. Due to his multiple prior convictions for violent felony or serious drug offenses, he qualified for an increased penalty as an Armed Career Criminal. The Court also ordered him to forfeit a firearm traceable to the offense.

 

Stephenson pleaded guilty on February 10, 2017.

 

According to court documents, in May 2016, law enforcement officers in Palmetto arrested Stephenson after he assaulted his live-in girlfriend and threatened to kill her. The officers located and seized a loaded .22 caliber revolver inside Stephenson’s residence; he later admitted that he possessed the firearm and had hidden it under a bedroom mattress.

 

At the time of the offense, Stephenson was a convicted felon on state probation for attempted first-degree murder. As a result, he was prohibited from possessing a firearm or ammunition under federal law.

 

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

 

This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program – a nationwide, gun-violence reduction strategy. Acting United States Attorney Muldrow, along with Daryl R. McCray, Special Agent in Charge, ATF, are coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law-enforcement officials. It is also a part of ATF’s Frontline Strategy on reducing violent crime in communities.

Tampa, FL – U.S. District Judge Elizabeth A. Kovachevich has sentenced Saul Velazquez-Bazan (49, Plant City) to 17 years and 6 months in federal prison for conspiracy to possess with the intent to distribute 5 kilograms or more of cocaine and 500 grams or more of methamphetamine, and money laundering. The Court also ordered him to forfeit real property that was involved in the offenses and entered a money judgment in the amount of $3.823 million, the proceeds of the drug trafficking.

 

Velazquez-Bazan pleaded guilty on February 1, 2017.

 

According to court documents, Velazquez-Bazan was the leader of the Plant City arm of a Matamoros, Mexico-based money laundering and drug trafficking organization. He and his associates used his business, SAME Pallets Company, to receive, store, and distribute cocaine and collect proceeds from the sale of cocaine. From at least January 2016, through his arrest in August 2016, Velazquez-Bazan was supplying local drug distributors with between 20 and 50 kilograms of cocaine per month, and transporting millions of dollars in drug proceeds to Mexico. During the investigation, law enforcement seized cocaine, methamphetamine, and over $775,000 in drug proceeds from members of Velazquez-Bazan’s organization.

 

“Thanks to Homeland Security Investigation’s strong partnership with the Hillsborough County Sheriff’s Office, we’ve helped stem the flow of illegal drugs into our local communities,” said Ivan J. Arvelo, acting special agent in charge of HSI Tampa.

 

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

Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces the arrests and filing of a

criminal complaint charging Ronnie Rolland Montgomery (28, Orlando) and John Pierre Mack, III (25, Kissimmee, former member of the Florida National Guard) with conspiracy to commit wire fraud stemming from their participation in a criminal organization focused on extorting victims by impersonating agents with the Department of Homeland Security (DHS). If convicted, each faces a maximum penalty of 20 years in federal prison.

 

According to court documents, in 2015, agents from U.S. Immigration and Customs Enforcement’s (ICE) Office of Professional Responsibility (OPR) (San Diego and Tampa) began investigating a criminal organization that was demanding money from victims nationwide by claiming to be “agents” of Homeland Security Investigation’s (HSI) Cyber Crimes Center (C3). Typically, the victims had responded to an online dating post and engaged in a conversation and exchange of photos with a female that they believed was an adult. The victims were later contacted by schemers posing as “agents,” who alleged that the female from the dating post was under the age of 18. The “agent” would claim that they had an arrest warrant for charges of soliciting a minor and would then direct the victim to make payments for “fines” and “penalties,” in lieu of being arrested. To further their scheme, the “agents” sent paperwork to the victims displaying the DHS seal, a judge’s name, and legal terms related to child exploitation. The schemers utilized email addresses containing variants of “child exploitation” and “cyber crimes center” in their correspondence.

 

The victims, many of whom were members of the military, sent multiple extortion payments, ranging from $200 to $1,900 per transaction, fearing they would otherwise be arrested. ICE’s OPR agents launched a nationwide investigation that resulted in the arrests of Montgomery and Mack in connection with this criminal organization. Law enforcement continues to investigate individuals involved in this scheme.

 

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

 

This case was investigated by ICE OPR and HSI, with assistance from the Naval Criminal Investigative Services (San Diego) and the Osceola County Sheriff’s Office. It will be prosecuted by Special Assistant United States Attorney Christina R. Downes, on assignment from the Office of the Principal Legal Advisor, ICE. Prosecutorial assistance was provided by the Southern District of California.

Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces the return of an indictment charging Tracy Dean Tronco (51, Lakeland) and Alejo Tronco-Diaz (50, Lakeland) with one count of conspiracy to commit federal program theft, one count of mail fraud, and two counts of federal program theft. If convicted, each faces a maximum penalty of 5 years in federal prison for the conspiracy count, up to 20 years’ imprisonment on the mail fraud count, and up to 10 years in federal prison for each of the program theft counts.

 

According to the

indictment , Tronco worked as a Transit Coordinator and Passenger Operations Specialist at the Florida Department of Transportation’s (FDOT) District 7 office in Tampa from May 2010 through August 2015. She was responsible for administering transportation projects and funds that were intended to benefit Florida residents and taxpayers. As part of her work, she had a role in awarding federal grant funds that the United States Department of Transportation provided to FDOT. Tronco-Diaz, who married Tronco in 2012, was an FDOT grant applicant who operated an alleged church, Ministerio A Gran Voz De Trompeta Campus, Inc. (Ministerio), in Hillsborough and Polk Counties. Ministerio purported to provide transportation services for underserved populations such as elderly, disabled, and unemployed individuals.

 

Tronco used her position at FDOT to award more than $370,000 in federal funds to Ministerio and another religious ministry that claimed to be partnering with Ministerio to provide transportation services. The grant money was supposed to be used to purchase and renovate a commercial property in Hillsborough County, to provide job and transportation-related services, to purchase three new vehicles, and to reimburse the operation’s vehicle maintenance costs. However, the funds and vehicles were not used for the purposes stated in the grant paperwork, but, instead, were kept by Tronco, her husband, and other co-conspirators. Tronco also failed to disclose to FDOT her personal relationship with Tronco-Diaz, which constituted a conflict of interest that would have prevented her from handling the awards in question.

 

Tronco resigned from FDOT in lieu of termination on April 27, 2016.

 

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

 

This case was investigated by the Federal Bureau of Investigation and the Florida Department of Transportation Office of Inspector General. It will be prosecuted by Assistant United States Attorney Patrick Scruggs.

Tampa, FL – U.S. District Judge James D. Whittemore has sentenced Josiah E. Hutton (60, Winter Haven) to six months in federal prison, followed by six months of home confinement, for concealment of assets from a bankruptcy estate. In addition, he was ordered to pay $93,255.27 in restitution to the victim of his offense.

 

According to court documents, Hutton, a former bankruptcy attorney, was retained to represent a debtor who was planning to file for bankruptcy. In anticipation of filing a bankruptcy petition, Hutton received a $93,255.27 settlement check, which was property of the debtor’s bankruptcy estate, and deposited it into his attorney escrow account. Hutton later prepared and certified the debtor’s bankruptcy petition, yet he failed to list the settlement check as an asset, thereby concealing the asset from creditors and the bankruptcy court.

 

This case was investigated by the Federal Bureau of Investigation and the Florida Department of Law Enforcement. The Office of United States Trustee, Tampa Division provided substantial investigative assistance. It was prosecuted by Special Assistant United States Attorney Chris Poor.

Tampa, FL – U.S. District Judge James D. Whittemore has sentenced Lamonday Britt (45, Tampa) to 15 years in federal prison for possessing a firearm and ammunition as a convicted felon. The Court also ordered him to forfeit the firearm and ammunition seized as part of the offense.

 

Britt pleaded guilty on April 6, 2017.

 

According to court documents, law enforcement officers executed a search warrant at Britt’s residence after he engaged in multiple sales of crack cocaine. During the execution of that search warrant, officers recovered a loaded firearm, loose rounds of ammunition, crack cocaine, marijuana, and cash. At the time of the offense, Britt was a convicted felon and therefore is prohibited from possessing a firearm or ammunition under federal law. Due to his prior convictions for robbery and narcotics offenses, he qualified for an increased penalty as an Armed Career Criminal.

 

This case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Kaitlin R. O’Donnell.

 

This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. Acting United States Attorney W. Stephen Muldrow, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.

Ocala, Florida – Acting United States Attorney W. Stephen Muldrow announces a federal criminal complaint charging Simon Rodriguez-Flores (48), Tirso Rodriguez-Astudillo (35), and Gilberto Astudillo-Carbajal (34), all of Ocala, with conspiracy to possess with the intent to distribute 500 grams or more of methamphetamine. If convicted, each faces a 10-year mandatory minimum, up to life, in federal prison; up to a $10 million fine; and a minimum term of 5 years, up to life, of supervised release. In addition, each faces potential deportation from the United States because they are citizens of Mexico and currently in the United States illegally. All three individuals made their initial appearances in federal court on June 5, 2017, and were ordered detained pending the resolution of their cases.

 

According to the criminal complaint, in or around April 2017, Rodriguez-Flores, Rodriguez-Astudillo, and Astudillo-Carbajal agreed to sell illegal drugs. On May 24, 2017, in a restaurant parking lot in Ocala, Rodriguez-Flores sold approximately 140 grams of crystal methamphetamine to a confidential source working at the direction of the Drug Enforcement Administration. On June 2, 2017, Rodriguez-Flores and Rodriguez-Astudillo arrived at a prearranged meeting in Ocala to sell an additional two kilograms of crystal methamphetamine to the same confidential source, but they were arrested by law enforcement. The two kilograms were recovered as evidence. Simultaneously, a federal search warrant was executed at a residence in the northwest section of Ocala. At the residence,  the DEA  took Astudillo-Carbajal into custody. The complaint further alleges that Astudillo-Carbajal was involved in the manufacture of crystal methamphetamine at the residence.

 

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

 

This case was investigated by the Gainesville Resident Office of the United States Drug Enforcement Administration, as well as task force officers assigned to the DEA from the Gainesville Police Department, Alachua County Sheriff’s Office, Ocala Police Department, Levy County Sheriff’s Office, Union County Sheriff’s Office, and Columbia County Sheriff’s Office. The Marion County Unified Drug Enforcement Strike Team assisted in the execution of the search warrant as well as the arrests. This case is being prosecuted by Assistant United States Attorney Dale R. Campion.

Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces that Michael Eugene Williams (60, Jacksonville) has pleaded guilty to attempted commercial sex trafficking of a child. He faces a minimum mandatory penalty of 15 years, up to life, in federal prison.

 

According to the

plea agreement , between February 25 and September 28, 2016, Williams solicited an adult woman in Texas to sexually abuse her 4-year-old daughter, take photographs of the abuse, and then sell the photographs to him. The investigation of Williams began after an Internet Crimes Against Children Task Force detective from the Jacksonville Sheriff’s Office (JSO) received a tip from the National Center for Missing and Exploited Children. JSO obtained a search warrant for Williams’s residence and found more than 450 images and videos of child pornography on his cellphone.

 

In addition to his collection of child pornography, forensic analyses revealed text communications between Williams and an adult woman in Texas beginning in January 2016, and continuing until the date of the search warrant, on July 7, 2016. During this time, there were approximately 337 messages between Williams and the woman, mostly about her 4-year-old daughter. Williams repeatedly requested pornographic pictures and videos of the child and indicated that he was willing to pay for them. He urged the mother to film herself engaged in sexual acts with her child and to have the child perform sexual acts on others. Williams used income from his JSO retirement pension to send at least 19 Western Union wire transfers to the mother as payment.

 

Immediately after discovering the images and videos of the 4-year-old’s sexual abuse, agents from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and officers from JSO contacted federal and local law enforcement in Texas and the child was removed from the abusive environment.

 

On October 21, 2016, a search warrant was executed at Williams’s home, and agents recovered Williams’s newly obtained cellphone containing sexually explicit videos of the 4-year-old girl in Texas and messages detailing his desire to perform sexual acts on the child.

 

The Texas woman has pleaded guilty to two counts of production of child pornography in federal court in the Northern District of Texas. She faces up to 60 years in federal prison.

 

This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Jacksonville Sheriff’s Office, with assistance from the U.S. Secret Service. It is being 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, Florida – Acting United States Attorney W. Stephen Muldrow announces that Gary Todd Smith (“Todd Smith”) (47, Fayetteville, North Carolina) today pleaded guilty to conspiracy to commit mail and wire fraud affecting a financial institution, and to wire fraud affecting a financial institution. He faces a maximum penalty of 30 years in federal prison. A sentencing date has not yet been set.

 

According to court documents, Smith ran Smith Advertising, which turned into a massive fraud scheme. Smith borrowed money from over 150 people, wherein each earlier loan was repaid from subsequent loans. Smith lied about the purpose of the loans and conspirators created fake documents to mask the scheme. The company’s real books showed that, as a result of the scheme and on the date the company ceased operations, the total assets and equity were valued at -$166,863,476.23.

 

This case was investigated by the Federal Bureau of Investigation and the U.S. Secret Service. It is being prosecuted by Assistant United States Attorney Thomas N. Palermo.

 

 

Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces that a federal jury has found Thomas Leslie Carr (49, Jacksonville) guilty of using underage “models” to engage in sexually explicit conduct for the purpose of producing pornographic images and videos. He faces a minimum mandatory penalty of 15 years, up to 30 years, in federal prison on each of the two charges. Carr has been in custody since his arrest and a sentencing hearing is set for September 21, 2017.

According to court documents and evidence presented at trial, in 2012, law enforcement officers began a human trafficking investigation involving the prostitution of minor and adult females throughout the state of Florida, by an individual named Michael Gallon (52, Lakeland). The investigation revealed that Gallon had recruited his victims to travel and work at “parties” and “VIP rooms” as “models,” where customers paid to have sex with them. During the investigation, agents identified and interviewed several female victims who had been prostituted by Gallon; Carr was identified as one of his regular customers.

 

On October 28, 2013, Gallon was arrested and charged with sex trafficking of minors and production of child pornography. Two weeks later, a federal search warrant was executed at Carr’s residence. During an interview, Carr admitted that he had hired about 15 girls from Gallon over a three-year period. He stated that Gallon called him when he had girls available in Jacksonville and that the two would meet so that Carr could pay Gallon to select girls to take back to his residence. At his home, Carr paid the females for photos session that usually consisted of photographing the female wearing an outfit, stripping nude, and then wearing a costume. He stated that he usually tried to get the female to masturbate for him on video, then he would attempt to have sex with her. If the female was reluctant, Carr would offer her more money.

During the search of Carr’s residence, agents recovered computer media that contained images and videos of at least two minors, ages 15 and 17, engaged in sexually explicit conduct. Car admitted to doing “photo shoots” with each of these girls, and videos depicted him engaging in sexual intercourse with one of them.

 

In 2014, Gallon pleaded guilty and was sentenced to 33 years and 9 months in federal prison.

 

This case was investigated by the Lakeland Police Department, the Florida Department of Law Enforcement, the Jacksonville Sheriff’s Office, and U.S. Immigration and Customs Enforcement‘s Homeland Security Investigations in Tampa and Jacksonville. It is being prosecuted by Assistant United States Attorneys D. Rodney Brown, Beatriz Gonzalez, and Stacie 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.

Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Rarzell White, Jr. (30, Tampa) today pleaded guilty to distributing and possessing with the intent to distribute 50 grams or more of methamphetamine. He faces a minimum mandatory penalty of 5 years, up to 40 years, in federal prison. A sentencing date has not yet been set.

 

According to the plea agreement, throughout 2016, White engaged in a series of transactions with undercover detectives during which he sold them a variety of firearms, ammunition, and illegal narcotics. These transactions culminated on October 3, 2016, with the sale of approximately 55 grams of methamphetamine and a .40 caliber pistol to undercover officers.

 

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

 

This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. Acting United States Attorney W. Stephen Muldrow, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.

Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces the arrest and filing of a criminal complaint charging Andres Fernando Cabezas (33, Lake County) with attempting to entice a minor to engage in sexual activity. If convicted, he faces a minimum mandatory penalty of 10 years, up to life, in federal prison. Cabezas is employed as a teacher at Carver Middle School in Leesburg.

 

According to the

criminal complaint , between May 25 and May 30, 2017, Cabezas used his cellphone to communicate via e-mail and text messaging with a child he believed to be 12 years old, in an attempt to entice the girl to engage in sexual activity. On May 30, 2017, he traveled from Clermont to a restaurant in Lake Mary where he intended to meet the child. Upon arriving at the restaurant, Cabezas was arrested by FBI agents.

 

Cabezas later confessed that he intended to have sex with the child and then give her an emergency contraceptive pill that agents had recovered from his vehicle. He also stated that he had visited the dark web to view videos of toddlers and young children engaged in sexual acts with adults.

 

A criminal complaint is merely an allegation that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.

 

This case was investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.

 

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

Jacksonville, FL – The Justice Department today announced a settlement with the city of Jacksonville, to resolve allegations that the city violated the Fair Housing Act and the Americans with Disabilities Act when it refused to allow the development of permanent supportive housing for individuals with disabilities in its Springfield neighborhood.

 

The settlement, which must still be approved by the U.S. District Court for the Middle District of Florida, resolves a lawsuit the department filed in December 2016. That lawsuit was consolidated with similar ones brought by Ability Housing, Inc. and Disability Rights Florida, which were resolved in a separate settlement with the city.

 

“Federal law protects the right of individuals with disabilities to live in communities of their choice without facing discrimination,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “Through this settlement, the city of Jacksonville has taken steps to ensure that its residents can exercise this right.”

 

“The Fair Housing Act and the Americans with Disabilities Act protect against official adoption of community discrimination,” said Acting U.S. Attorney W. Stephen Muldrow, of the Middle District of Florida. “We commend the city of Jacksonville’s willingness to rectify its past actions, and we look forward to continuing to work with the city to ensure that individuals with disabilities in Jacksonville are afforded the same opportunities as those without disabilities.”

 

As part of the city’s settlement with the department, the city has amended its zoning code to better comply with federal anti-discrimination laws, including removing restrictions that apply to housing for persons with disabilities and implementing a reasonable accommodation policy. The city also agreed to rescind the written interpretation that prevented Ability Housing from providing the housing at issue, designate a fair housing compliance officer, provide Fair Housing Act and Americans with Disabilities Act training for city employees, and pay a civil penalty to the government of $25,000. In the separate settlement, the city agreed to pay $400,000 to Ability Housing and $25,000 to Disability Rights Florida, and to establish a $1.5 million grant to develop permanent supportive housing in the city for people with disabilities.

 

The department’s suit alleged that in 2014, Ability Housing received a $1.35 million grant from Florida to revitalize a 12-unit apartment building and create permanent supportive housing for “chronically homeless” individuals in Jacksonville who, by definition, have at least one disability. Ability Housing specifically intended to provide this housing to veterans and to connect them with optional support services. The city had previously certified that Ability Housing’s development of the property was consistent with the city’s zoning code but, as alleged in the department’s complaint, reversed itself in response to intense community pressure based on stereotypes about the disabilities of the expected residents. As a result, Ability Housing lost the grant and the property. The department conducted an independent investigation and subsequently filed this lawsuit.

 

Fighting illegal housing discrimination is a top priority of the Justice Department. The Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. Title II of the Americans with Disabilities Act prohibits discrimination on the basis of disability by public entities. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, email the Justice Department at fairhousing@usdoj.gov or contact HUD at 1-800-669-9777.

Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan has sentenced Maurice Phillip Mitchell (32, Jacksonville) to 10 years in federal prison for possessing a firearm after having been convicted of a felony. A federal jury found him guilty on February 7, 2017. During his sentencing hearing, Mitchell was identified as the founder of the violent gang “Cut Throat Committee,” which operates throughout Florida’s prison system.

 

According to court documents, Mitchell was operating a minivan in the Lackawanna area of Jacksonville on February 29, 2016, when he was encountered by a patrol officer with the Jacksonville Sheriff’s Office (JSO). The officer observed signs of intoxication and pursued Mitchell, who led the officer on a high-speed chase and ultimately crashed the vehicle into a tree. Mitchell then exited the vehicle and fled on foot. A second JSO patrol officer, who had responded to assist, apprehended Mitchell a short time later, after finding him hiding under an SUV in a nearby parking lot. Upon returning to the scene of the crash, officers found a firearm on the dashboard of the minivan. As a previously convicted felon, Mitchell is prohibited from possessing a firearm or ammunition under federal law.

 

At the sentencing hearing, the United States presented evidence that Mitchell had attempted to obstruct justice by paying a third party to falsely testify on his behalf and by attempting to intimidate a witness during trial. He received a sentencing enhancement based on this evidence. He also received an additional sentencing enhancement for reckless endangerment during his flight from police.

 

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with assistance from the Jacksonville Sheriff’s Office and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorneys Laura Cofer Taylor and Kelly Karase.

 

This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. Acting United States Attorney Muldrow, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.

Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces the return of an indictment charging Oniel Christopher Russell, a/k/a OG Russell (39), a Jamaica national, with being an illegal alien in possession of a firearm and felony assault on a federal officer. If convicted on all counts, he faces a maximum penalty of 18 years in federal prison.

 

According to court documents, Russell last entered the United States on October 29, 2008, as a non-immigrant visitor for pleasure with subsequent authorization to remain within the United States until January 3, 2009. However, he failed to depart and remained in the country without any lawful immigration status. On August 24, 2013, deputies from the Orange County Sheriff’s Office found Russell in possession of a Ruger firearm. In October 2016, Russell threatened to kill an employee with U.S. Citizenship and Immigration Services over the telephone, after posting a video of himself called “cop killer” on YouTube. When officers with ICE subsequently attempted to execute an administrative warrant for his arrest, Russell attempted to flee back into a residence. As the deportation officer was attempting to handcuff him and place him under arrest, Russell pulled the officer into a wall and started dragging him towards the house. Russell was eventually taken into custody.

 

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

 

This case was investigated by U.S. Immigration and Custom Enforcement’s Enforcement and Removal Operations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Orange County Sheriff’s Office. It will be prosecuted by Special Assistant United States Attorney Christina R. Downes, who is on assignment from ICE’s Office of the Principal Legal Advisor.

Orlando, Florida– Acting United States Attorney W. Stephen Muldrow announces that a federal jury has found Danny Anthony Collado Nieves (25, St. Cloud) guilty of attempting to possess with the intent to distribute a controlled substance. His sentencing hearing is scheduled for September 15, 2017; he faces a maximum penalty of 20 years in federal prison.

 

According to evidence presented at trial, on November 2, 2016, Collado Nieves attempted to sell over 100 grams of a substance that he believed to be heroin to an undercover police officer for $11,000. Although lab results later confirmed that the “heroin” was not a controlled substance, testimony and evidence showed that he had intended to sell real heroin on that date.

 

This case was investigated by the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorneys Sean P. Shecter and Vincent Chiu.

Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Raymond Adams (29, St. Petersburg) has pleaded guilty to being a felon in possession of a firearm and carrying a firearm during a drug trafficking offense. He faces a minimum mandatory penalty of five years, up to life, in federal prison. A sentencing date has not yet been set.

 

According to the plea agreement, Adams and others planned to break into a St. Petersburg residence to steal marijuana and later distribute it. Adams was armed with a 9-mm handgun during the attempted burglary and, when detected by law enforcement officers, he fled with his associates in a vehicle that later crashed. Adams then fled on foot and discarded the gun. Officers later recovered that firearm from a trash can.

At the time of the incident, Adams was a felon whose prior criminal history included a 2010 manslaughter conviction. As such, he is prohibited from possessing a firearm or ammunition under federal law.

 

This case was investigated by the St. Petersburg Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney James C. Preston, Jr.

 

This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. Acting United States Attorney W. Stephen Muldrow, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of the St. Petersburg Violent Crime Reduction Initiative.

Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces the return of an indictment charging Luis Bernardo Gonzalez-Martinez (29, Mexico) with the illegal reentry after deportation. Since his deportation was subsequent to his conviction for an aggravated felony, he faces a maximum penalty of 20 years in federal prison.

 

According to court documents, Gonzalez-Martinez is a Mexican citizen who was convicted of burglary on May 26, 2009. He was removed from the United States in June 2012 and again in June 2013. On April 1, 2017, immigration officers encountered Gonzalez-Martinez, a member of the Sureños (Sur 13) street gang, back in the United States illegally.

 

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

 

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

Tampa, FL – Freedom Health Inc., a Tampa-based provider of managed care services, and its related corporate entities (collectively “Freedom Health”), agreed to pay $31,695,593 to resolve allegations that they violated the False Claims Act by engaging in illegal schemes to maximize their payment from the government in connection with their Medicare Advantage plans, the Justice Department announced today. In addition, the former Chief Operating Officer (COO) of Freedom Health Siddhartha Pagidipati, has agreed to pay $750,000 to resolve his alleged role in one of these schemes.

 

“Medicare Advantage plans play an increasingly important role in our nation’s health care market,” said Acting U.S. Attorney Stephen Muldrow. “This settlement underscores our Office’s commitment to civil health care fraud enforcement.”

 

“When entering into agreements with managed care providers, the government requests information from those providers to ensure that patients are afforded the appropriate level of care,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Today’s result sends a clear message to the managed care industry that the United States will hold managed care plan providers responsible when they fail to provide truthful information.”

 

The government alleged that Freedom Health submitted or caused others to submit unsupported diagnosis codes to the Centers for Medicare & Medicaid Services (CMS), which resulted in inflated reimbursements from 2008 to 2013 in connection with two of their Medicare Advantage plans operating in Florida. It also alleged that Freedom Health made material misrepresentations to CMS regarding the scope and content of its network of providers (physicians, specialists and hospitals) in its application to CMS in 2008 to expand in 2009 into new counties in Florida and in other states. The government’s settlement with Mr. Pagidipati resolves his alleged role in this latter scheme.

 

“Medicare Advantage insurers must play by the rules and provide Medicare with accurate information about their provider networks and their patients’ health,” said Chief Counsel to the Inspector General Gregory Demske of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “OIG will investigate and hold managed care organizations accountable for fraud. Moving forward, the innovative CIA reduces the risks to patients and taxpayers by focusing on compliance issues unique to Medicare Advantage plans.”

 

The allegations resolved by these settlements were brought in a lawsuit under the qui tam, or whistleblower, provisions of the Federal False Claims Act and the Florida False Claims Act. These statutes permit private parties to sue on behalf of the government for false claims and to receive a share of any recovery. The whistleblower in this action is Darren D. Sewell, who was a former employee of Freedom Health. The whistleblower’s share in this case has not yet been determined.

 

The corporate entities related to Freedom and which were part of today’s settlements are: Optimum HealthCare Inc., America’s 1st Choice Holdings of Florida LLC, Liberty Acquisition Group LLC, Health Management Services of USA LLC, Global TPA LLC, America’s 1st Choice Holdings of North Carolina LLC, America’s 1st Choice Holdings of South Carolina LLC, America’s 1st Choice Insurance Company of North Carolina Inc. and America’s 1st Choice Health Plans Inc.

 

Today’s settlements were the result of a coordinated effort by Assistant U.S. Attorneys Katherine Ho and Randy Harwell of the Middle District of Florida, Trial Attorney Jennifer Koh of the Department of Justice’s Civil Division’s Commercial Litigation Branch, HHS-OIG and Assistant Attorney General Ian Garland of the Florida Office of the Attorney General.

 

The claims resolved by the settlements are allegations only, and there has been no determination of liability. The case is captioned United States ex rel. Sewell v. Freedom Health, Inc., et al., Case No. 8:09-cv-1625 (M.D. Fla.).

 

 

Tampa, FL – U.S. District Judge Susan C. Bucklew has sentenced Richard Hoagland (63, Zephyrhills), formerly of Indiana, to two years in federal prison for aggravated identity theft. In addition, he was ordered to forfeit $42,500, which represents the proceeds of the misrepresentations that he made in connection with the U.S. Department of Housing and Urban Development  Section 8 housing program.

 

Hoagland pleaded guilty to these charges on February 16, 2017.

 

According to court documents, Hoagland used the name, date of birth, social security, and identity of a deceased person in documents submitted to the Federal Aviation Authority. He applied for and obtained a pilot and medical certificate in 2012, and again in 2014. He also used the information to register his partial ownership in an aircraft in 2014. Hoagland falsely stole the deceased person’s identity in 1995, abandoning his true name of Richard Hoagland, and used this false identity for all purposes, including paperwork that he filed with HUD.

 

This case was investigated by Pasco County Sheriff’s Office, the Federal Bureau of Investigation, the Department of Transportation - Office of Inspector General, and HUD - Office of Inspector General. It was prosecuted by Assistant United States Attorney Kelley Howard-Allen.

Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces that Belenda Sandy (56, Buckhannon, West Virginia) has pleaded guilty to one count of obstruction of justice. She faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been scheduled.

 

Sandy was indicted on March 8, 2017.

 

According to the

plea agreement , Sandy obstructed justice and hindered a federal kidnapping/death investigation by making false statements and omitting material information during interviews with investigators. The investigation began on November 27, 2016, after a victim went missing in Ormond Beach, Florida. Investigators eventually determined that the victim had recently relocated to Florida from Indiana to get away from her estranged husband, Jarvis Wayne Madison, who was also in an intimate relationship with Sandy. In the days leading up to the victim’s disappearance, Madison stayed with Sandy at her West Virginia residence, where she provided him with food, money, and new tires for his vehicle. Eventually, Madison left Sandy’s residence and drove to Florida, where he located the victim as she was jogging on Ormond Beach. Phone records reflected that Madison had a 23-mintue phone conversation with Sandy, just before the victim disappeared.

 

On November 28, 2016, an investigator contacted Sandy by telephone and interviewed her to determine Madison’s whereabouts. During this interview, Sandy denied having any recent contact with Madison. This statement was false and misleading. Even after the investigator informed Sandy that the victim had likely been abducted by Madison, she continued to claim that she had not seen Madison in a long time. Following the interview, Sandy met with Madison at a gas station near her home and told him that law enforcement was looking for him in connection with the victim’s disappearance. Sandy’s misleading conduct towards the investigator ultimately delayed Madison’s arrest on federal kidnapping charges, and delayed the recovery of the victim’s body.

 

After learning from Sandy that law enforcement was looking for him, Madison drove to Tennessee, where he buried the victim’s dead body. He then drove to Kentucky, where law enforcement arrested him on December 2, 2016. On the same date, FBI agents recovered the victim’s body in Tennessee and determined that Madison had shot and killed her sometime after her disappearance on November 27, 2016.

 

Madison is currently charged in a superseding indictment with kidnapping that resulted in a death, interstate domestic violence, and interstate stalking. 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. A trial date for Madison is currently set for the March 2018 trial term.

 

This case was investigated by the Federal Bureau of Investigation, with assistance from the Volusia County Sheriff’s Office, the United States Marshals Service, and the Indiana State Police. It is being prosecuted by Assistant United States Attorney Andrew C. Searle.

Freedom Health Inc., a Tampa, Florida-based provider of managed care services, and its related corporate entities (collectively “Freedom Health”), agreed to pay $31,695,593 to resolve allegations that they violated the False Claims Act by engaging in illegal schemes to maximize their payment from the government in connection with their Medicare Advantage plans, the Justice Department announced today. In addition, the former Chief Operating Officer (COO) of Freedom Health Siddhartha Pagidipati, has agreed to pay $750,000 to resolve his alleged role in one of these schemes.

 

“When entering into agreements with managed care providers, the government requests information from those providers to ensure that patients are afforded the appropriate level of care,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Today’s result sends a clear message to the managed care industry that the United States will hold managed care plan providers responsible when they fail to provide truthful information.”

 

The government alleged that Freedom Health submitted or caused others to submit unsupported diagnosis codes to CMS, which resulted in inflated reimbursements from 2008 to 2013 in connection with two of their Medicare Advantage plans operating in Florida. It also alleged that Freedom Health made material misrepresentations to CMS regarding the scope and content of its network of providers (physicians, specialists and hospitals) in its application to CMS in 2008 to expand in 2009 into new counties in Florida and in other states. The government’s settlement with Mr. Pagidipati resolves his alleged role in this latter scheme.

 

“Medicare Advantage plans play an increasingly important role in our nation’s health care market,” said Acting U.S. Attorney Stephen Muldrow. “This settlement underscores our Office’s commitment to civil health care fraud enforcement.”

 

“Medicare Advantage insurers must play by the rules and provide Medicare with accurate information about their provider networks and their patients’ health,” said Chief Counsel to the Inspector General Gregory Demske of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “OIG will investigate and hold managed care organizations accountable for fraud. Moving forward, the innovative CIA reduces the risks to patients and taxpayers by focusing on compliance issues unique to Medicare Advantage plans.”

 

The allegations resolved by these settlements were brought in a lawsuit under the qui tam, or whistleblower, provisions of the Federal False Claims Act and the Florida False Claims Act. These statutes permit private parties to sue on behalf of the government for false claims and to receive a share of any recovery. The whistleblower in this action is Darren D. Sewell, who was a former employee of Freedom Health. The whistleblower’s share in this case has not yet been determined.

 

The corporate entities related to Freedom and which were part of today’s settlements are: Optimum HealthCare Inc., America’s 1st Choice Holdings of Florida LLC, Liberty Acquisition Group LLC, Health Management Services of USA LLC, Global TPA LLC, America’s 1st Choice Holdings of North Carolina LLC, America’s 1st Choice Holdings of South Carolina LLC, America’s 1st Choice Insurance Company of North Carolina Inc. and America’s 1st Choice Health Plans Inc.

 

Today's settlements were the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, The U.S. Attorneys’ Office for the Middle District of Florida, HHS-OIG and the Florida Office of the Attorney General.

 

The claims resolved by the settlements are allegations only, and there has been no determination of liability. The case is captioned United States ex rel. Sewell v. Freedom Health, Inc., et al., Case No. 8:09-cv-1625 (M.D. Fla.).

Orlando, FL – Acting United States Attorney W. Stephen Muldrow announces that a federal jury has found John David Stahlman (35, Longwood) guilty of one count of attempting to persuade, induce, and entice a minor to engage in sexual activity. He faces a mandatory minimum penalty of 10 years, up to life, in federal prison. His sentencing hearing is scheduled for August 10, 2017.

 

Stahlman was indicted on November 15, 2016.

 

According to the testimony and evidence presented at trial, on November 10, 2016, Stahlman posted an advertisement on Craigslist seeking a “young ‘looking’ girl” for possible “physical pleasure.” An FBI agent acting in an undercover capacity responded to the advertisement and introduced himself as the single father of an 11-year-old child. During a two and a half-month period, Stahlman made plans to meet and have sex with the 11-year-old, and eventually traveled to meet with the minor. He was subsequently arrested.

 

This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Alejandro J. Salicrup and Karen Gable.

 

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

Tampa, Florida – U.S. District Judge Charlene E. Honeywell has sentenced Nathan A. Madsen (37, Tampa) to 17 years and 6 months in federal prison, followed by a life term of supervised release, for enticing a child to produce child pornography and for possessing child pornography. The Court also ordered Madsen to forfeit his vehicle and multiple electronic storage devices that had been used in the commission of the offenses. Madsen pleaded guilty on February 3, 2017. Prior to his arrest, he had worked as a music professor at the University of Tampa.

 

According to court documents, Madsen responded to an online advertisement for prostitution services posted on Backpage.com. Madsen requested and negotiated the price to have sex with a 14-year-old-girl. Unbeknownst to him, the message had been posted by agents from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. In an attempt to verify the existence of the minor, Madsen asked for her picture, spoke to “her” on the phone, withdrew money from the ATM and drove to the designated meeting location. Madsen met with and paid an undercover special agent $140 to have sex with the minor.

 

After his arrest, agents executed a search warrant at Madsen’s apartment and seized multiple electronic devices. Forensic analyses of his cellphone and tablet revealed that from at least May 2015 and continuing through July 2015 Madsen engaged in a series of sexually explicit online conversations with a 16-year-old girl. During this time, he persuaded, induced, and enticed the child to produce and transmit explicit images and videos for his personal benefit. At the time of his arrest, Madsen had 61 explicit images and 14 videos of the child, some of which depicted violent, sadistic or masochistic conduct.

 

“Our HSI special agents, in partnership with the Tampa Police Department, have prevented this predator from harming more children,” said Ivan J. Arvelo, acting special agent in charge of HSI Tampa. “This investigation demonstrates that child exploitation continues to be a threat that can’t be ignored. Today’s sentencing sends a message that HSI is committed to the investigation and prosecution to the fullest extent of the law of individuals who engage in any heinous crime against our children.”

 

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

 

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

Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Joseph Bassler (61, St. Petersburg) has pleaded guilty to mail fraud and money laundering. He faces a maximum penalty of 20 years in federal prison on the mail fraud count and up to 10 years in federal prison for the money laundering offense.

 

According to the

plea agreement , Bassler, a licensed tax-preparer, held himself out as a professional accountant who could assist companies affected by the Deepwater Horizon oil spill in filing business economic loss claims. As part of his scheme, Bassler prepared and submitted fraudulently inflated claims falsely alleging lost income on behalf of his clients. He also created false documents, including false monthly profit and loss statements, that he provided in support of the fraudulent lost income claims. As payment for his services, he accepted a portion of the recovery money for the loss claims that he had prepared. In total, Bassler submitted 62 claims, three of which were paid. For the three claims that were paid, Bassler and his clients received over $600,000 more than they were entitled from the compensation fund. The remaining claims were denied when Bassler’s fraudulent scheme was discovered.

 

This case was investigated by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Rachel K. Jones.

Tampa, Florida – Acting U.S. Attorney W. Stephen Muldrow, Special Agent in Charge Daryl R. McCrary of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Chief Anthony Holloway of the St. Petersburg Police Department, and State Attorney Bernie McCabe of the Sixth Judicial Circuit announce the culmination of a long-term firearms, drug trafficking, and violent crime operation dubbed the St. Petersburg Violent Crime Reduction Initiative. As a result of this eight-month initiative,

federal charges have been filed against 35 individuals and state charges have been filed against 9 individuals . The charges brought during this investigation arose from a partnership between the U.S. Attorney’s Office, the State Attorney’s Office, ATF, and the St. Petersburg Police Department, under the auspices of the Department of Justice’s Project Safe Neighborhoods (PSN) Comprehensive Anti-Gang Initiative. The PSN Program is a nationwide, gun-violence reduction strategy.

 

"The prosecutions announced today underscore our office's ongoing commitment to prosecuting violent and armed criminals,” said Acting U.S. Attorney Muldrow. “They also reflect the strength of our federal, state, and local law enforcement partnerships. We will continue work to together to make our communities safer."

 

“ATF’s primary focus is protecting the public by reducing violent crime,” said Special Agent in Charge McCrary. “ATF continues to aggressively pursue violent offenders and will continue to protect and serve communities with our law enforcement partners.”

 

“The more guns we take off the street, the more successful we are at reducing the fear of crime in our community” said Chief Holloway. “It is this kind of inter-agency relationship that makes our public safety efforts in the state of Florida so effective.”

 

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.

 

These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the St. Petersburg Police Department, and the State Attorney’s Office for the Sixth Judicial Circuit. The federal cases will be prosecuted by Assistant United States Attorneys from the Violent Crimes and Gangs Section. The state cases will be prosecuted by Assistant State Attorneys from the Sixth Judicial Circuit.

Orlando, FL – Acting United States Attorney W. Stephen Muldrow announces that the United States Court of Appeals for the Eleventh Circuit has affirmed the sentence of Gregory McDonald (19, Orlando).

 

On August 12, 2015, McDonald, along with three others, committed an armed carjacking of a U.S. Customs and Border Protection officer at a hotel in Orlando. The victim, who was on vacation with his family, had gone down to his SUV in the hotel parking lot when McDonald, co-defendant Dante Askins, and two minors approached him, and forced him into the backseat of his vehicle at gunpoint. They tied the victim’s hands and feet with duct tape and zip ties and McDonald pistol-whipped him. The carjackers held the victim for approximately two hours. When OnStar location services contacted the vehicle, the carjackers fled and the victim escaped. McDonald pleaded guilty and was sentenced to 20 years in prison. He appealed his sentence.

 

In affirming McDonald’s sentence, the Eleventh Circuit Court of Appeals rejected his argument that the sentencing court had not sufficiently addressed mitigating circumstances and had imposed an unreasonably high sentence. The Eleventh Circuit held that the sentencing court had given “due consideration” to mitigating circumstances, but had also considered that the crime was “horrific” and lacking in “basic humanity,” particularly since McDonald had “plan[ned] ahead of time in an apparent jovial fashion to buy zip ties and duct tape with a plan to kidnap someone at gunpoint for no apparent reason.” The sentencing court also had properly considered McDonald’s extensive and violent criminal history, which included offenses such as sexual battery, carjacking with a deadly weapon, aggravated assault with a deadly weapon, kidnapping, and burglary. The Eleventh Circuit concluded that the 20-year sentence was not unreasonably high.

 

Assistant United States Attorney Germaine M. Seider handled the appeal. The Federal Bureau of Investigation, the Orange County Sheriff’s Office, and the Florida Department of Law Enforcement investigated the underlying case. It was prosecuted by Assistant United States Attorney Tiffany L. Cummins.

 

 

WHO:

W. Stephen Muldrow

Acting United States Attorney

Middle District of Florida

 

Chief Anthony Holloway

St. Petersburg Police Department

 

Daryl R. McCrary

Special Agent in Charge

Bureau of Alcohol, Tobacco, Firearms and Explosives

 

Participating Agencies

State Attorney’s Office for the Sixth Judicial Circuit

 

WHAT:

Press Conference

Press conference to announce the culmination of an eight-month operation.

WHEN:

WEDNESDAY, May 24, 2017

11:00 A.M. EST

WHERE:

St. Petersburg Police Department (Headquarters)

Basement Meeting Room

1300 1st Avenue North

St. Petersburg Florida 33705

 

OPEN PRESS

NOTE:

All media must present press credentials and government-issued photo I.D. (e.g. Driver’s License).

Media may begin arriving at 10:30 A.M.

Please park on Central Avenue (behind P.D.).

Call (727) 893-7128 for escort through rear door.

 

Please RSVP to Amy.Filjones@usdoj.gov by 5:00 p.m. today.

Tampa, FL – Acting United States Attorney W. Stephen Muldrow announces that Brandon Russell (21, Tampa) has been charged by criminal complaint with possession of an unregistered destructive device and unlawful storage of explosive material, in violation of federal law. If convicted, he faces a maximum penalty of 11 years in federal prison.

 

According to the criminal complaint, the Tampa Police Department responded on May 19, 2017, to a double homicide at an apartment in the Tampa Palms area, where Russell, Devon Arthurs, and the deceased men had been living together. The alleged shooter, Arthurs, stated that he, Russell, and the two victims shared common neo-Nazi beliefs, and that Russell participated in online neo-Nazi chat rooms where he threatened to kill people and bomb infrastructure. During a search of the apartment, law enforcement discovered a cooler in the garage containing the explosive HMTD (hexamethylene triperoxide diamine), along with various explosive precursors in close proximity. Upon questioning, Russell admitted that he had manufactured the HMTD located in the garage.

 

On May 21, 2017, Russell was arrested in Key Largo. He made his initial appearance before United States Magistrate Judge Andrea Simonton in the Southern District of Florida. Russell was detained pending further proceedings in the Middle District of Florida.

 

Devon Arthurs was arrested on May 19, 2017, by officers from the Tampa Police Department. He is in custody facing state charges.

 

A criminal complaint is merely an allegation 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 is being investigated by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Tampa Police Department and the Monroe County Sheriff’s Office. It will be prosecuted by Assistant United States Attorneys Josephine W. Thomas and Daniel A. George.

Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces that Frank Malik Drummond, Jr. (21, Fernandina Beach) today pleaded guilty to distribution of cocaine and possession of a firearm by a convicted felon. He faces a maximum penalty of 20 years in federal prison for the drug charge and up to 10 years’ imprisonment for the firearm offense.

 

According to the plea agreement, Drummond sold cocaine to a confidential informant on three separate occasions. When he was arrested on January 26, 2017, he had a semi-automatic pistol in his pocket. Drummond has two prior felony convictions for drug sales and is therefore prohibited from possessing firearms or ammunition under federal law.

 

This case was investigated by the Federal Bureau of Investigation and the Nassau County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Michael J. Coolican.

Tampa, FL – Acting United States Attorney W. Stephen Muldrow announces that the United States Court of Appeals for the Eleventh Circuit has affirmed the convictions of Spring Hill residents Glenn and Kathryn Jasen.

 

According to court documents, in 2009, the Jasens discovered a sinkhole beneath their home and filed a claim with their insurance carrier, Citizens Property. In compensation for their loss, Citizens paid them $153,745.37. Rather than using the money to repair the sinkhole, the Jansens kept it. The couple then made cosmetic repairs to the house and listed it for sale, keeping the sinkhole a secret from prospective buyers. A family with five children bought the house and, in March 2015, the family heard a crash in the earth beneath it. They discovered a crack running across the floor of their living room and immediately evacuated. In October 2015, a federal jury found Glenn and Kathryn Jasen guilty of one count of wire fraud. The couple then appealed their convictions.

 

In affirming their convictions, the Eleventh Circuit Court of Appeals summarized the case against them, saying: “It is undisputed the Jasens knew their property had a sinkhole on it when they sold the property—they had already collected over one hundred fifty thousand dollars in insurance proceeds because of it.” “Nevertheless,” the Court continued, “they indicated on their disclosure statement that they knew of no sinkhole on the property. They reiterated this misrepresentation in multiple transaction documents and the purchaser relied on these statements in acquiring the property, testifying he would not have done so had he known of the sinkhole.” The Court of Appeals concluded that the evidence “demonstrates that the Jasens intentionally made material misrepresentations concerning their property that were calculated to deceive the buyer into purchasing the property.”

 

Assistant United States Attorney David C. Waterman handled the appeal. The Florida Department of Law Enforcement Tampa Bay Regional Operations Center investigated the case, and Assistant United States Attorney Thomas N. Palermo prosecuted it.

Tampa, Florida– Acting United States Attorney W. Stephen Muldrow announces that Xavier Williams (48, Tampa) today pleaded guilty to receipt of stolen government property and aggravated identity theft. He faces a maximum penalty of 12 years in federal prison.

 

According to the plea agreement, Williams obtained a number of federal tax refund checks belonging to taxpayers who were victims of identity theft. He then sold or attempted to sell the checks to others. The checks, issued by the U.S. Department of Treasury, ranged in amounts from $4,000 to over $128,000, with an aggregate value of over $297,000.

 

This case was investigated by the Internal Revenue Service Criminal Investigation. It is being prosecuted by Assistant United States Attorney Eric K. Gerard.

Tampa, FL – Acting United States Attorney W. Stephen Muldrow announces that Giday Kidane (34, Tampa) has pleaded guilty to theft of government property and aggravated identity theft. He faces a maximum penalty of 10 years in federal prison for the theft count and a mandatory consecutive term of two years in federal prison for the aggravated identity theft count.

 

According to the

plea agreement , between November 2016 and January 2017, Kidane, posing as “Anwar,” sold and offered to sell stolen U.S. Treasury checks to a Confidential Informant (CI) in exchange for half of the face value in cash. On one occasion, Kidane presented the CI with two stolen U.S. Treasury checks for sale: one for $4,583, and a second check for $20,679. The pair agreed that the CI would pay Kidane $7,200 for both checks, plus an additional amount after the larger check had been successfully deposited.

 

This case was investigated by the Internal Revenue Service - Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Mandy Riedel and Eric Gerard.

Tampa, FL – Acting United States W. Stephen Muldrow announces that Ross D. Pickard (63, Naples) today pleaded guilty to conspiracy to commit loan and credit application fraud. He faces a maximum penalty of five years in federal prison.

 

According to the

plea agreement , Pickard was a senior loan officer at JP Morgan Chase Bank. He conspired with others in a scheme to defraud the bank by completing, certifying, and submitting mortgage loan applications on behalf of borrowers that contained false and fraudulent statements. The false statements included overinflated income and assets, understated liabilities, and false occupancy. By relying on Pickard’s false and fraudulent statements on the loan applications, JP Morgan Chase funded mortgage loans for otherwise unqualified borrowers.

 

The approximate losses suffered by JP Morgan Chase Bank associated with Pickard’s criminal conduct exceeds $33 million.

 

This case was investigated by the Federal Housing Finance Agency – Office of Inspector General and the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Special Assistant United States Attorney Chris Poor.

Jacksonville, Florida – U.S. District Judge Brian J. Davis today sentenced Juan Soliz (24, Pomona Park) and Kayla Soto (23, Pomona Park) for transporting two kilograms of cocaine from Texas to Florida. Soliz was sentenced to five years’ imprisonment and Soto was sentenced to two years and six months in federal prison. Pursuant to their plea agreements, they have agreed to forfeit a Chevrolet Traverse and a Mercedes Benz E350 that were used to transport the cocaine. In addition, they will forfeit $5,335, which are traceable proceeds of the offense. Soliz and Soto pleaded guilty on October 20, 2016.

 

According to court documents, on June 25, 2016, the couple drove the Mercedes Benz from Palatka, Florida to Waycross, Georgia, where they received instructions from a co-defendant regarding the pickup location for a shipment of cocaine. Soliz and Soto then drove to Houston, Texas, stopped briefly to pick up two kilograms of cocaine, and then immediately started their return trip to Florida.

 

Troopers from the Florida Highway Patrol, working with DEA, stopped Soliz and Soto as they entered Putnam County on June 28, 2016. The two kilograms of cocaine were located inside a hidden compartment in the trunk of the car.

 

This case was investigated by the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Frank Talbot.

Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces the unsealing of an indictment charging Guarino Edwards Broccoli, a/k/a Gary Broccoli, a/k/a Gary Edwards (53, Fort White), with forced labor and aggravated sexual abuse. If convicted, he faces a maximum penalty of life in federal prison. The indictment also notifies Broccoli that the United States intends to forfeit his residence, including all manufactured homes, located at 439 SW Tara Court in Fort White.

 

According to the

indictment , Broccoli obtained the labor and services of a female using force and threats of force, causing her to believe that if she did not perform such labor and services she would suffer serious harm. It is also alleged that this offense included aggravated sexual abuse.

 

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

 

This case was investigated by the Columbia County Sheriff’s Office and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Ashley Washington.

 

This investigation is ongoing. The U.S. Attorney’s Office is seeking other potential victims related to this individual and/or the location listed in this indictment. Anyone with additional information is encouraged to contact the FBI -Jacksonville Field Office at 904-248-7000.

Ocala, Florida – Acting United States Attorney W. Stephen Muldrow announces the unsealing of an indictment charging Jonathan Kyle Lanier (23, Leesburg) with carjacking, conspiracy to commit carjacking, brandishing a firearm in furtherance of carjacking, and possession of a firearm by a convicted felon. If convicted, he faces a maximum penalty of 15 years in federal prison for the carjacking count, up to 5 years’ imprisonment for the conspiracy count, a minimum mandatory 7-year penalty for brandishing a firearm, and up to 10 years in federal prison for the felon in possession charge. The indictment also notifies Lanier that the United States intends to forfeit three firearms that are alleged to have been used in facilitating the offense. Lanier made his initial appearance in Ocala today and was ordered detained pending trial.

 

According to the indictment, on December 23, 2016, Lanier and three other individuals conspired to rob a male victim of his money, other personal property, and his automobile by arranging a meeting at a remote location in Leesburg between the victim and a female co-conspirator. The victim believed that he was going to meet the woman only; however, shortly after he arrived, Lanier and two other men, Avery Tumer (23, Leesburg) and Timotheus Reed (29, Leesburg), pulled the victim from his car and stole his wallet and other personal property. During the robbery, the three men wore masks and pointed firearms at the victim; Tumer later pistol-whipped the victim and took his car. Thereafter, Tumer, Reed, Lanier, and the female co-conspirator drove the female’s car and the victim’s car back to a residence in Leesburg. They took the victim’s personal property into the residence, and hid the firearms in an attic.

 

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.

 

Tumer is currently detained on state charges, awaiting transfer to federal custody. Timotheus Reed faces federal charges and remains at-large.

 

This case was investigated by the Federal Bureau of Investigation Jacksonville Field Office (Daytona Beach Resident Agency), the Lake County Sheriff’s Office, and the Leesburg Police Department, with assistance from task force members from the Volusia County Sheriff’s Office and the Daytona Beach Police Department. It will be prosecuted by Assistant United States Attorney Dale Campion.

Financial Freedom has agreed to a settlement with the United States of more than $89 million to resolve allegations that it violated the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) in connection with its participation in a federally insured Home Equity Conversion Mortgages (HECM) or ‘reverse mortgage’ program, the Justice Department announced today. Financial Freedom is headquartered in Austin, Texas.

 

“The Department of Justice is committed to ensuring that those who participate in federal mortgage insurance programs comply with requirements essential to the success of its programs,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Among these requirements are the deadlines imposed by the Federal Housing Administration (FHA) on those who service government insured mortgages. Those deadlines are designed to protect the government’s collateral and stop the unnecessary loss of government funds and resources.”

 

Through ‘reverse mortgage’ loans, older people are able to access the equity in their homes by borrowing money against the equity they have built in their home. To encourage reverse mortgage loans, the FHA protects lenders from loss by providing mortgage insurance. Under FHA’s program, a loan becomes due and payable when the home is sold or vacant for more than 12 months or upon the death of the homeowner, whichever comes first. The lender is repaid the amount of the loan, including the costs of servicing the loan and any interest that accrues on lender expenses after a loan becomes due and payable. FHA will reimburse a lender that is unable to recoup the full amount of the loan. In order to claim recoupment, the servicer is required to meet a number of regulatory requirements and deadlines.

 

The United States alleged that Financial Freedom sought to obtain insurance payments for interest from FHA despite failing to properly disclose on the insurance claim forms it filed with the agency that the mortgagee was not eligible for such interest payments because it had failed to meet various deadlines relating to appraisal of the property, submission of claims to HUD, and pursuit of foreclosure proceedings. As a result, from March 31, 2011 to August 31, 2016, the mortgagees on the relevant reverse mortgage loans serviced by Financial Freedom allegedly obtained additional interest that they were not entitled to receive.

 

The United States’ investigation arose from a declaration filed pursuant to FIRREA by Sandra Jolley, a consultant for the estates of borrowers who took out HECM loans. Under FIRREA, whistleblowers may file declarations concerning alleged violations of the statute and may obtain a share of the recovery. Ms. Jolley will receive $1.6 million from the settlement.

 

“This settlement represents our office’s continued commitment to protecting the financial solvency of vital financial programs designed to benefit America’s seniors,” said Acting U.S. Attorney Stephen Muldrow of the Middle District of Florida. “HECM servicers must be held accountable for failing to adhere to FHA requirements that are designed to ensure the continued viability of the HECM program. We are pleased that Financial Freedom agreed to accept financial responsibility for these failures.”

 

“Today’s settlement agreement resolves allegations that this lender failed to comply with FHA servicing requirements and sought to receive financial gains that it was not legally entitled to,” said HUD Inspector General David A. Montoya. “These actions today demonstrate our continued commitment to address and halt business practices that pose a serious risk to the FHA program and the public’s trust in HUD administered programs.”

 

The settlement was the result of the coordinated efforts of the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Middle District of Florida, and the Department of Housing and Urban Development’s Office of Inspector General and Office of General Counsel. The case was handled by Assistant U.S. Attorney Kyle Cohen, along with Trial Attorneys Sean O’Donnell and Christopher Reimer of the Department of Justice Civil Frauds Section.

 

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

 

Fort Myers, FL - Financial Freedom has agreed to a settlement with the United States of more than $89 million to resolve allegations that it violated the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) in connection with its participation in a federally insured Home Equity Conversion Mortgages (HECM) or ‘reverse mortgage’ program, the Justice Department announced today. Financial Freedom is headquartered in Austin, Texas.

 

“This settlement represents our office’s continued commitment to protecting the financial solvency of vital financial programs designed to benefit America’s seniors,” said Acting U.S. Attorney Muldrow. “HECM servicers must be held accountable for failing to adhere to FHA requirements that are designed to ensure the continued viability of the HECM program. We are pleased that Financial Freedom agreed to accept financial responsibility for these failures.”

 

“The Department of Justice is committed to ensuring that those who participate in federal mortgage insurance programs comply with requirements essential to the success of its programs,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Among these requirements are the deadlines imposed by the Federal Housing Administration (FHA) on those who service government insured mortgages. Those deadlines are designed to protect the government’s collateral and stop the unnecessary loss of government funds and resources.”

 

Through ‘reverse mortgage’ loans, older people are able to access the equity in their homes by borrowing money against the equity they have built in their home. To encourage reverse mortgage loans, the FHA protects lenders from loss by providing mortgage insurance. Under FHA’s program, a loan becomes due and payable when the home is sold or vacant for more than 12 months or upon the death of the homeowner, whichever comes first. The lender is repaid the amount of the loan, including the costs of servicing the loan and any interest that accrues on lender expenses after a loan becomes due and payable. FHA will reimburse a lender that is unable to recoup the full amount of the loan. In order to claim recoupment, the servicer is required to meet a number of regulatory requirements and deadlines.

 

The United States alleged that Financial Freedom sought to obtain insurance payments for interest from FHA despite failing to properly disclose on the insurance claim forms it filed with the agency that the mortgagee was not eligible for such interest payments because it had failed to meet various deadlines relating to appraisal of the property, submission of claims to HUD, and pursuit of foreclosure proceedings. As a result, from March 31, 2011 to August 31, 2016, the mortgagees on the relevant reverse mortgage loans serviced by Financial Freedom allegedly obtained additional interest that they were not entitled to receive.

 

The United States’ investigation arose from a declaration filed pursuant to FIRREA by Sandra Jolley, a consultant for the estates of borrowers who took out HECM loans. Under FIRREA, whistleblowers may file declarations concerning alleged violations of the statute and may obtain a share of the recovery. Ms. Jolley will receive $1.6 million from the settlement.

 

“Today’s settlement agreement resolves allegations that this lender failed to comply with FHA servicing requirements and sought to receive financial gains that it was not legally entitled to,” said HUD Inspector General David A. Montoya. “These actions today demonstrate our continued commitment to address and halt business practices that pose a serious risk to the FHA program and the public’s trust in HUD administered programs.”

 

The settlement was the result of the coordinated efforts of the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Middle District of Florida, and the Department of Housing and Urban Development’s Office of Inspector General and Office of General Counsel. The case was handled by Assistant U.S. Attorney Kyle Cohen, along with Trial Attorneys Sean O’Donnell and Christopher Reimer of the Department of Justice Civil Frauds Section.

 

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

Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces the unsealing of a

criminal complaint  charging eight individuals with conspiracy to distribute a controlled substance and distribution and possession with the intent to distribute a controlled substance. Eric Jean Gilles (Miami, 36), Jimmy Remy Fernetus (Miami, 30), Edson Gelin (Orlando, 39), Raymond Mike Ayap (Orlando, 41), Ronny Joseph (Orlando, 32), Cristobal Sotomayor-Cebollero (Orlando, 31), Kissinger St. Fleur (Orlando, 35), and Gerardson Norgaisse (Orlando, 32) each face a maximum penalty of 20 years in federal prison for each controlled substance charge. Additionally, Gilles, Fernetus, and Gelin each face an additional and consecutive term of five years, up to life, in federal prison for possessing a firearm in furtherance of a drug trafficking offense.

 

According to the complaint, Gilles and Fernetus, members of a drug trafficking organization with ties to South Florida, were selling cocaine and “crack” cocaine from houses on 1621 Grand Street and 1427 18th Street, both located south of downtown Orlando. Gelin, who was stopped while traveling north towards Orlando on the Florida Turnpike on June 8, 2016, with two kilograms of cocaine, had also been selling cocaine at the house on Grand Street. All three--Gilles, Fernetus, and Gelin--were armed with handguns when purchases were made from the houses. Gelin also later sold cocaine from 2824 West Harwood Street in Orlando.

 

Ayap, Joseph, Sotomayor-Cebollero, St. Fleur, and Norgaisse each purchased distribution amounts of cocaine at one of the residences during the course of the investigation.

Gilles, Gelin, Ayap, and Joseph have been arrested and are being held in federal custody. Sotomayor-Cebollero is being held on unrelated state charges. Fernetus, St. Fleur, and Norgaisse have not yet been apprehended.

 

Search warrants have been executed at all three residences in connection with this investigation. Agents have recovered firearms, cocaine, and drug paraphernalia at all three locations, including three handguns, two assault rifles, and thousands of dollars in cash.

 

A complaint 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 investigation was conducted by the Drug Enforcement Administration, with assistance from the Metropolitan Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It’s also part of an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. It will be prosecuted by Assistant United States Attorney E. Jackson Boggs, Jr.

Orlando, Florida - U.S. District Judge Roy B. Dalton, Jr. has sentenced Kennedy Harris, Jr. (24, Cocoa) to 30 years in federal prison, followed by a life term of supervised release, for sex trafficking of a child by force, fraud, or coercion, and for producing child pornography. A federal jury found Harris guilty of both offenses on September 29, 2016.

 

According to testimony and evidence presented at trial, in January 2016, Harris took in the victim, a 16-year girl, after she ran away from home. Harris then took sexually suggestive photographs of the girl and advertised her for sex on Backpage.com. He also enticed the victim to engage in sexually explicit conduct for the purpose of photographing her. Over the course of approximately two weeks, the victim had sex with up to eight individuals per day, and gave the money to Harris. In exchange for her sex acts, Harris gave the girl crack cocaine nearly every day. On February 10, 2016, the victim was recovered by the Cocoa Police Department.

 

This case was investigated by Federal Bureau of Investigation, the Brevard County Sheriff’s Office, and the Cocoa Police Department. It was prosecuted by Assistant United States Attorney Tiffany L. Cummins.

 

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

Tampa, Florida – U.S. District Judge Steven D. Merryday today sentenced Jamal Smith (31, St. Petersburg) to 17 years and 6 months in federal prison for possessing a firearm as a convicted felon. The Court also ordered him to forfeit a firearm traceable to the offense. Smith pleaded guilty on February 27, 2017.

 

According to court documents, on September 1, 2015, a law enforcement officer observed a vehicle driven by Jamal Smith commit a traffic infraction. Smith initially fled in his vehicle, but later stopped and ran from the officer. A chase ensued, and Smith circled back to the vehicle and reached into the passenger side. The officer apprehended Smith and took him into custody. Law enforcement officers recovered a .45 caliber pistol from the glove box of the vehicle. At the time of the offense, Smith was a convicted felon and therefore was prohibited from possessing a firearm or ammunition under federal law. Due to his multiple prior convictions for violent felony or serious drug offenses, he qualified for an increased penalty as an Armed Career Criminal.

 

This case was investigated by the St. Petersburg Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorneys Michael V. Leeman and Michael C. Sinacore.

 

This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. Acting United States Muldrow, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.

Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich has sentenced Rida Saed (58, Tampa) to 12 months and 1 day in federal prison for his role in a scheme involving the filing of fraudulent income tax returns. As part of his sentence, the Court also ordered Saed to pay $51,838.91 in restitution to the Internal Revenue Service. He pleaded guilty on January 19, 2017.

 

According to court documents, Saed and others processed debit cards at their store, Three Brothers Market in St. Petersburg, knowing that they contained proceeds from the filing of fraudulent income tax returns. Saed and others processed those cards through the third-party credit processor that handled credit transactions for the market. They kept a portion of the proceeds for their services and returned the majority of the funds to the undercover agents who had presented them for cashing. The total amount of fees that Saed and the others kept from these transactions was $51,838.91.

 

This case was investigated by the Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Jay L. Hoffer.

Ocala, Florida – Acting United States Attorney W. Stephen Muldrow announces the return of a five-count

indictment charging Mark Charles Barnett (49, Ocala) with attempted arson, possession of a destructive device in furtherance of a crime of violence, possession of a destructive device by a convicted felon, and two counts of unlawful possession/manufacturing of a National Firearms Act weapon. If convicted on all counts, Barnett faces up to life in federal prison.

 

According to court documents, Barnett offered a confidential source (CS) $10,000 to place improvised explosive bombs in Target retail stores along the east coast of the United States. Beginning in January 2017, Barnett created at least 10 of the destructive devices, disguised in food-item packaging, and delivered them to the CS on February 9, 2017. Barnett then asked the CS to place the explosive devices on the store shelves from New York to Florida. Barnett told the CS that he had purchased options on Target stock and expected to make a lot of money from the resulting plunge in the company’s stock price.

 

Rather than placing the destructive devices on store shelves, however, the CS surrendered them to authorities. Subsequent searches of Barnett’s home by federal agents revealed components consistent with those used to create the destructive devices and articles describing stock market investments. Barnett, a convicted felon, had been conditionally released from state prison in 2013 following multiple convictions for sexual assault, kidnapping, and grand theft.

 

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

 

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Federal Bureau of Investigation; the Florida Department of Law Enforcement; the Florida Department of Corrections - Probation and Parole; the Marion County Sheriff’s Office; and the Ocala Police Department. It will be prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.

Tampa, Florida –U.S. District Judge Virginia M. Hernandez Covington today sentenced Jacorian Rashawn Brown (24, Brandon) and Jessica Duenas Nicholas (45, Brandon) to federal prison for conspiracy and armed robbery. Brown was sentenced to 12 years and 9 months in federal prison, and Nicholas was sentenced to 4 years and 9 months’ imprisonment. As part of their sentences, the Court also entered a money judgment in the amount of $11,948, the proceeds of the charged criminal conduct.

 

Brown and Nicolas pleaded guilty on February 16, 2017.

 

According to court documents, on July 9, 2016, Brown and Nicholas robbed the Murphy USA gas station in Wimauma of $11,948. Ten days later, the couple attempted to rob the Murphy USA gas station in Gibsonton, but were unsuccessful. On July 23, 2016, Brown and Nicholas returned to the Wimauma gas station to attempt another robbery. However, they were arrested before the robbery could take place. Investigators recovered two semi-automatic pistols and nearly 100 rounds of ammunition from inside their vehicle.

 

This case was investigated by the Hillsborough County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Carlton C. Gammons.

Former U.S. Congresswoman Corrine Brown was convicted by a federal jury in Jacksonville, Florida, today for her role in a conspiracy and fraud scheme involving a fraudulent scholarship charity.

 

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 Charles P. Spencer of the FBI’s Jacksonville, Florida, Division and Chief Richard Weber of the of Internal Revenue Service-Criminal Investigation (IRS-CI) made the announcement.

 

“Former Congresswoman Corrine Brown violated the public trust, the honor of her position, and the integrity of the American system of government when she abused one of the most powerful positions in the nation for her own personal gain. She shamefully deprived needy children of hundreds of thousands of dollars that could have helped with their education and improved their opportunities for advancement, and she lied to the IRS and the American public about secret cash deposits into her personal bank accounts,” said Acting Assistant Attorney General Blanco. “The Department of Justice is committed to fighting corruption and fraud wherever we find it, at all levels of government, regardless of their power and influence.”

 

“Former Congresswoman Brown chose greed and personal gain over the sacred trust given to her by the community that she served for many years,” said Acting U.S. Attorney Muldrow. “These guilty verdicts underscore our Office's resolve in holding public officials at all levels of government accountable for their actions. In this case, former Congresswoman Brown stole money that was donated on the false promise of helping further the educational goals of underprivileged children.”

 

“Former Congresswoman Brown took an oath year after year to serve others, but instead she exploited the needs of children and deceived her constituents to advance her own personal and political agendas,” said Special Agent in Charge Spencer. “Corrupt public officials undermine the integrity of our government and violate the public’s trust, and that is why investigating public corruption remains the FBI’s top criminal priority. I am proud of our special agents, analysts and support personnel who spent countless hours following the money trail in this case, and thank our law enforcement partners at the IRS-CI and U.S. Attorney’s Office for their efforts to hold Brown and her associates accountable for their inexcusable actions.”

 

“Former Congresswoman Corrine Brown failed to deliver and uphold her duty to file true and correct tax returns by lying about her income and charitable contributions to feed her greed. No one is above the law, including those in a position of public trust, and there isn’t a separate standard when it comes to paying taxes, said Chief Weber. “IRS CI, along with our law enforcement partners, will hold accountable those who violate the tax laws and cheat the taxpayers.”

 

Brown, 70, of Jacksonville, was convicted on 18 counts of an indictment charging her with participating in a conspiracy involving a fraudulent education charity, concealing material facts on required financial disclosure forms, obstructing the due administration of the internal revenue laws and filing false tax returns.

 

Judge Timothy J. Corrigan of the Middle District of Florida noted that he would schedule Brown’s sentencing for a later date.

 

Brown’s co-conspirators, Elias “Ronnie” Simmons, Brown’s long-time Chief of Staff, and Carla Wiley, the president of the fraudulent charity, previously pleaded guilty to their roles in the education charity scheme on Feb. 8, 2017, and March 3, 2016, respectively.

 

Evidence at trial showed that between late 2012 and early 2016, Brown participated in a conspiracy and fraud scheme involving One Door for Education – Amy Anderson Scholarship Fund (One Door) in which Brown, Simmons, Wiley and others acting on their behalf solicited more than $800,000 in charitable donations based on false representations that the donations would be used for college scholarships and school computer drives, among other charitable causes. Testimony by One Door donors showed that Brown and her coconspirators solicited donations from individuals and corporate entities that Brown knew by virtue of her position in the U.S. House of Representatives. Many of the donors were led to believe that One Door was a properly registered 501(c)(3) non-profit organization, when, in fact, it was not.

 

Contrary to Brown’s representations, Brown, Simmons, Wiley and others used the vast majority of One Door donations for their personal and professional benefit, including tens of thousands of dollars in cash deposits that Simmons made to Brown’s personal bank accounts, according to trial evidence. In one instance, Simmons deposited $2,100 of One Door funds into Brown’s personal bank account the same day that Brown paid $2,057 to the IRS for taxes she owed. Likewise, trial evidence showed Brown and Simmons used the outside consulting company of one of Brown’s employees to funnel One Door funds to Brown and others for their personal use.

 

Trial evidence also showed that more than $300,000 in One Door funds were used to pay for events hosted by Brown or held in her honor, including a golf tournament in Ponte Vedra Beach, Florida; lavish receptions during an annual conference in Washington, D.C.; the use of a luxury box during a concert in Washington, D.C.; and the use of a luxury box during an NFL game in the Washington, D.C., area. According to trial evidence, despite raising over $800,000 in donations, One Door granted only two scholarships totaling $1,200 that were awarded to students to cover expenses related to attending a college or university.

 

Additionally, trial evidence demonstrated that Brown failed to disclose, among other things, the reportable income she received from One Door and claimed deductions on her tax returns based on false statements that she made certain donations to One Door, as well as to local churches and non-profit organizations in the Jacksonville area.

 

The FBI and IRS-CI investigated the case. Deputy Chief Eric G. Olshan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys A. Tysen Duva and Michael J. Coolican of the Middle District of Florida prosecuted the case.

Jacksonville, FL – Former U.S. Congresswoman Corrine Brown was convicted by a federal jury in Jacksonville, Florida, today for her role in a conspiracy and fraud scheme involving a fraudulent scholarship charity.

 

Acting U.S. Attorney W. Stephen Muldrow, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Special Agent in Charge Charles P. Spencer of the FBI’s Jacksonville, Florida, Division and Chief Richard Weber of the of Internal Revenue Service-Criminal Investigation (IRS-CI) made the announcement.

 

“Former Congresswoman Brown chose greed and personal gain over the sacred trust given to her by the community that she served for many years,” said Acting U.S. Attorney Muldrow. “These guilty verdicts underscore our Office's resolve in holding public officials at all levels of government accountable for their actions. In this case, former Congresswoman Brown stole money that was donated on the false promise of helping further the educational goals of underprivileged children.”

 

“Former Congresswoman Corrine Brown violated the public trust, the honor of her position, and the integrity of the American system of government when she abused one of the most powerful positions in the nation for her own personal gain. She shamefully deprived needy children of hundreds of thousands of dollars that could have helped with their education and improved their opportunities for advancement, and she lied to the IRS and the American public about secret cash deposits into her personal bank accounts,” said Acting Assistant Attorney General Blanco. “The Department of Justice is committed to fighting corruption and fraud wherever we find it, at all levels of government, regardless of their power and influence.”

 

 

“Former Congresswoman Brown took an oath year after year to serve others, but instead she exploited the needs of children and deceived her constituents to advance her own personal and political agendas,” said Special Agent in Charge Spencer. “Corrupt public officials undermine the integrity of our government and violate the public’s trust, and that is why investigating public corruption remains the FBI’s top criminal priority. I am proud of our special agents, analysts and support personnel who spent countless hours following the money trail in this case, and thank our law enforcement partners at the IRS-CI and U.S. Attorney’s Office for their efforts to hold Brown and her associates accountable for their inexcusable actions.”

 

“Former Congresswoman Corrine Brown failed to deliver and uphold her duty to file true and correct tax returns by lying about her income and charitable contributions to feed her greed. No one is above the law, including those in a position of public trust, and there isn’t a separate standard when it comes to paying taxes, said Chief Weber. “IRS CI, along with our law enforcement partners, will hold accountable those who violate the tax laws and cheat the taxpayers.”

 

Brown, 70, of Jacksonville, was convicted on 18 counts of an indictment charging her with participating in a conspiracy involving a fraudulent education charity, concealing material facts on required financial disclosure forms, obstructing the due administration of the internal revenue laws and filing false tax returns. The jury also found Brown guilty of violating the Ethics in Government Act by concealing certain income on the required annual financial disclosure forms she submitted to the U.S. House of Representatives.

 

Judge Timothy J. Corrigan of the Middle District of Florida noted that he would schedule Brown’s sentencing for a later date.

 

Brown’s co-conspirators, Elias “Ronnie” Simmons, Brown’s long-time Chief of Staff, and Carla Wiley, the president of the fraudulent charity, previously pleaded guilty to their roles in the education charity scheme on Feb. 8, 2017, and March 3, 2016, respectively.

 

Evidence at trial showed that between late 2012 and early 2016, Brown participated in a conspiracy and fraud scheme involving One Door for Education – Amy Anderson Scholarship Fund (One Door) in which Brown, Simmons, Wiley and others acting on their behalf solicited more than $800,000 in charitable donations based on false representations that the donations would be used for college scholarships and school computer drives, among other charitable causes. Testimony by One Door donors showed that Brown and her coconspirators solicited donations from individuals and corporate entities that Brown knew by virtue of her position in the U.S. House of Representatives. Many of the donors were led to believe that One Door was a properly registered 501(c)(3) non-profit organization, when, in fact, it was not.

 

Contrary to Brown’s representations, Brown, Simmons, Wiley and others used the vast majority of One Door donations for their personal and professional benefit, including tens of thousands of dollars in cash deposits that Simmons made to Brown’s personal bank accounts, according to trial evidence. In one instance, Simmons deposited $2,100 of One Door funds into Brown’s personal bank account the same day that Brown paid $2,057 to the IRS for taxes she owed. Likewise, trial evidence showed Brown and Simmons used the outside consulting company of one of Brown’s employees to funnel One Door funds to Brown and others for their personal use.

 

Trial evidence also showed that more than $300,000 in One Door funds were used to pay for events hosted by Brown or held in her honor, including a golf tournament in Ponte Vedra Beach, Florida; lavish receptions during an annual conference in Washington, D.C.; the use of a luxury box during a concert in Washington, D.C.; and the use of a luxury box during an NFL game in the Washington, D.C., area. According to trial evidence, despite raising over $800,000 in donations, One Door granted only two scholarships totaling $1,200 that were awarded to students to cover expenses related to attending a college or university.

 

Additionally, trial evidence demonstrated that Brown failed to disclose, among other things, the reportable income she received from One Door and claimed deductions on her tax returns based on false statements that she made certain donations to One Door, as well as to local churches and non-profit organizations in the Jacksonville area.

 

The FBI and IRS-CI investigated the case. Assistant U.S. Attorneys A. Tysen Duva and Michael J. Coolican of the Middle District of Florida and Deputy Chief Eric G. Olshan of the Criminal Division’s Public Integrity Section prosecuted the case.