Middle District of Florida

Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Donald St. Louis to 15 months in federal prison for theft of government funds.  As part of his sentence, the Court entered a money judgment in the amount of $146,929.40, the proceeds he unlawfully obtained. St. Louis pleaded guilty on April 21, 2016.

According to court documents, between July 2007 and July 2012, St. Louis knowingly and willfully stole and converted to his own use benefit payments under the Title II Federal Old-Age, Survivors, and Disability Insurance Program, from the Social Security Administration (SSA). St. Louis had been approved to receive Social Security disability benefits in 2005, but he returned to work a short time later without notifying the SSA. As a result of his failure to report his employment activity and improvement in medical condition to the SSA, St. Louis collected $146,929.40 in unlawful benefit payments. 

This case was investigated by the Social Security Administration Office of Inspector General, Office of Investigations. It is being prosecuted by Assistant United States Attorney Yolande G. Viacava.

Tampa, FL – U.S. District Judge Susan C. Bucklew today sentenced Yannier Arias to eight years and six months in federal prison for conspiracy, aggravated identity theft, and access device fraud.  The Court also ordered him to forfeit $17,343.62, which is traceable to proceeds of the offenses.  A federal jury found Arias guilty on April 21, 2016.

According to court documents, Arias first conspired with another Tampa man, Dariel Sardinas Lopez, to “skim” credit card numbers from identity theft victims at various gas stations in Hillsborough, Pinellas, and Sarasota counties; produce counterfeit credit cards encoded with that stolen account information; and then use those counterfeit cards to make thousands of dollars of fraudulent purchases in Florida and Michigan. After Lopez was arrested, Arias entered a second conspiracy with Jose Ojeda Vera, another Tampa man. It again involved the use of counterfeit cards encoded with the account information of identity theft victims to make similar purchases, including at luxury retailers such as Versace, Armani, and Louis Vuitton. All of the victims still had their cards in their possession when they learned that their accounts had been unlawfully used.

Sardinas Lopez previously pleaded guilty and was sentenced in July 2015 to four years in federal prison.  Ojeda Vera has been charged for his role in the case and is currently a fugitive.

This case was investigated by the United States Secret Service, the Florida Department of Law Enforcement, and the Florida Highway Patrol. It was prosecuted by Assistant United States Attorneys Kelley Howard-Allen and Eric Gerard.

Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Angelica M. Morman (28, Fort Myers) with delay or destruction of mail.  If convicted, she faces a maximum penalty of five years in federal prison. 

According to the indictment, on August 13, 2016, Morman, an employee of the United States Postal Service, knowingly destroyed, detained, and delayed approximately 418 pieces of standard and first class mail.

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 United States Postal Service, Office of Inspector General.  It will be prosecuted by Assistant United States Attorney Yolande G. Viacava.

Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Stevie McDonald (41, Winter Haven) has pleaded guilty to making false statements in a mortgage loan application. He faces a maximum penalty of 30 years in federal prison. A sentencing date has not yet been set.

According to court documents, on November 10, 2007, McDonald entered into a contract to purchase a home in Port Richey. He then applied for a mortgage loan from Washington Mutual Bank. In the loan documents that he signed and submitted to the bank, McDonald made false statements about his income and his employment. In December 2007, during the course of the closing on the property purchase, Washington Mutual paid more than $35,000 to a woman McDonald knew and later married. This payment was purportedly a satisfaction of an existing lien on the sale property. Subsequent investigation revealed that no such lien existed. Washington Mutual Bank suffered a financial loss as a consequence of McDonald’s default on this loan.

This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.

Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Kareem Patrick Campbell (19) to time served (approximately 13 months in prison) for conspiracy to commit wire fraud. As part of his sentence, the Court entered a money judgment in the amount of $227,375.85, the proceeds of the wire fraud conspiracy. Campbell was also ordered to pay restitution to the victims of his offense. Campbell pleaded guilty on May 4, 2016.  He has been incarcerated since his arrest on related state charges on August 13, 2015. 

According to court documents, between April 2015 and August 2015, Campbell and others conspired to commit and committed wire fraud by providing fake bank authorization codes to merchants throughout Florida and elsewhere, including North Carolina, as part of a scheme commonly known as “force posting.”  Campbell and his co-conspirators targeted jewelry stores, car accessory retailers, and hotels. As part of the scheme, Campbell would present a canceled debit card that lacked sufficient funds to pay for his purchases. When the card was declined, Campbell would then call a co-conspirator, who would pretend to be a bank customer service employee and would provide a fake authorization code to the merchant, along with instructions on how to key the code into the merchant’s point of sale machine.  These fake codes caused merchants to override their credit card processing machines’ denials of the debit card.  As a result of the scheme, the conspirators were able to successfully purchase jewelry and other items worth at least $227,375.85. 

On May 11, 2016, a grand jury in the Middle District of Florida returned an 11-count indictment charging one of Campbell’s co-conspirators, Rajiv Edwards, with conspiracy to commit wire fraud and wire fraud. Edwards remains at large.

This case is being investigated by the United States Secret Service and the Tampa Police Department.  It is being prosecuted by Assistant United States Attorney Megan K. Kistler.

Jacksonville, FL – United States Attorney A. Lee Bentley, III announces today that Physicians Group Services, P.A., doing business as Coastal Spine and Pain (“Coastal”), has agreed to pay $7.4 million to the government to resolve allegations that Coastal violated the False Claims Act by performing medically unnecessary drug screening procedures. 

The settlement relates to Coastal’s use of “Quantitative Drug Tests,” or tests that identify and count particles of illicit drugs in patients’ urine. The use of quantitative drug tests – tests that are very specific and also very expensive – is appropriate only if there is reason to doubt the more general and cheaper qualitative drug test screens.  The government contends that Coastal appropriately performed qualitative drug tests for its patients.  However, the United States contends that, regardless of the result of the less expense qualitative test, Coastal performed and billed for quantitative drug tests for all patients. The government contends this was medically unnecessary, as there was no reason to question or further confirm previous qualitative urine drug testing screens. 

“The United States Attorney’s Office is committed to taking the steps necessary to protect Medicare, TRICARE, and other federal health care programs from fraud,” said U.S. Attorney Bentley.  “When health care practitioners conduct medical tests, they must only bill for them when it is appropriate and medically necessary.  We will vigorously pursue providers that perform tests indiscriminately, regardless of need.”

This case was developed through the proactive review of claims data. Coastal was a statistical outlier in terms of billing for quantitative drug test screens.  In fact, in each and every instance that Coastal billed for a qualitative drug test screen, it also billed for a quantitative drug test screen. This statistical outlier prompted questioning and investigation by the Department of Justice.

“New and expanded uses of data analytics to identify suspicious billing patterns, such as in this case, are providing law enforcement agencies with powerful investigative tools to combat fraud and abuse in federal health care programs,” said HHS OIG SAC Shimon Richmond.  “Medicare should only be paying for medical tests to improve the health of beneficiaries, not the profit margins of unscrupulous physicians.  Today’s settlement should serve as notice to others that fraud will be vigorously pursued.”

This civil settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services.  The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.  One of the most powerful tools in this effort is the False Claims Act.  Since January 2009, the Justice Department has recovered more than $30 billion through False Claims Act cases, with more than $18.3 billion of that amount recovered in cases involving fraud against federal health care programs.

“We appreciate the support from the Department of Justice in protecting the TRICARE benefit from fraud and helping to ensure the benefit continues to exist for our service members, families, and retirees,” said Vice Admiral R. Bono, Director, Defense Health Agency.

This matter was investigated with assistance from the Department of Health and Human Services Office of Inspector General (HHS/OIG) and the Defense Criminal Investigative Service (DCIS).  It was prosecuted by Assistant United States Attorney Jason Mehta.

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

Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces today that Edrey Santo Rojas (31, Cape Coral) pleaded guilty to access device (credit card) fraud and three counts of aggravated identity theft.  Santo Rojas faces a maximum penalty of ten years in federal prison for the credit card fraud and a consecutive term of two years for each aggravated identity theft conviction. He will also be ordered to pay restitution to the victims of the offenses. Santo Rojas has been ordered to remain in custody pending sentencing, the date of which has not yet been set.

According to the plea agreement, between December 2014 and August 2015, Santo Rojas used unauthorized credit card information at various retail establishments. He also used three counterfeit and unauthorized access devices with account numbers belonging to financial institutions and individuals, without lawful authority.

In a related case, on August 16, 2016, U.S. District Judge Sheri Polster Chappell sentenced Henry Alberto Fernandez Gomez (30, Cape Coral) to three years in federal prison for participating in credit card fraud and access device fraud.  Gomez used stolen and unauthorized credit card information 27 times at retail establishments throughout Florida to purchase various items.          

These cases were investigated by the Federal Bureau of Investigation, the Economic Crimes Unit of the Lee County Sheriff’s Office, and the Cape Coral Police Department, with assistance from the United States Secret Service and the State Attorney’s Office for the 20th Judicial Circuit.  They are being prosecuted by Assistant United States Attorney David G. Lazarus.

Orlando, Florida– U.S. District Judge John Antoon, II has sentenced Hamid Mohamed Ahmed Ali Rehaif (25, Melbourne, and a citizen of the United Arab Emirates) to 18 months in federal prison for possession of a firearm and ammunition by an unlawful alien. Following his prison term, he will be deported back to the United Arab Emirates. Rehaif was found guilty by a federal jury in May 2016.

According to evidence presented at trial, Rehaif was admitted into the United States in 2013 under a student visa in order to attend the Florida Institute of Technology (FIT). After completing three semesters at FIT, he was academically dismissed in December 2014. As a result, Rehaif became an unlawful alien when he failed to immediately depart the United States. During that time, Rehaif possessed firearms and ammunition at a local shooting range in Melbourne, Florida. In addition, he provided ammunition to two hotel employees as “gifts.” At the sentencing hearing, the Court found that Rehaif had illegally purchased three other firearms.  

Law enforcement agents originally made contact with Rehaif in December 2015, at a hotel in Melbourne where he had been living for two months. According to court documents, Rehaif stayed at the hotel for 53 straight days and paid over $11,000 in room fees. Law enforcement found rounds of handgun and rifle ammunition in his hotel room and in a storage unit that Rehaif had rented, but did not locate any firearms.   

This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Federal Bureau of Investigation, and the Melbourne Police Department. It was prosecuted by Assistant United States Attorney Shawn P. Napier and Special Assistant United States Attorney Christina R. Downes.

Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Eugene Warren Brewington (34, Orlando) to nine years in federal prison for conspiracy to commit mail fraud and wire fraud for his role as a leader in a timeshare resale fraud scheme.  The Court also entered a money judgment against Brewington in the amount of $704,326.55, which represents the total amount of money fraudulently obtained as a result of the scheme. Brewington was found guilty by a jury on June 10, 2016.

According to testimony and evidence presented at trial and sentencing, Brewington founded and operated two companies in Orlando, “Timeshare Title Services LLC” and “United Clearing Solutions LLC.”  Representatives of the two companies, known as “callers,” made unsolicited phone calls to timeshare owners throughout the country and falsely claimed that a buyer existed for their timeshares. The timeshare owners were told that buyers had deposited money into an escrow account for the purchase of their timeshares, and they received documents from the companies that appeared to be legitimate timeshare sales contracts. Ultimately, the timeshare owners were told to send advance fees to the companies to finalize the sales. Numerous timeshare owners made advance fee payments to the companies but received no services and their timeshares were never sold. 

Brewington managed the bank accounts where the advance fees were deposited and rented the office spaces from where the “callers” executed the scheme. Within a three-month period, more than $500,000 in timeshare owner payments were deposited into bank accounts for the two companies. Brewington and others associated with the companies used these funds to enrich themselves. 

Another participant in the scheme, Chima Edozie Aligwekwe (33, Orlando), was also found guilty of conspiracy to commit mail fraud and wire fraud by a jury. His sentencing hearing is scheduled for September 12, 2016.

This case was investigated by the United States Postal Inspection Service and the Orange County Sheriff’s Office, with assistance from the United States Secret Service.  It was prosecuted by Assistant United States Attorneys Andrew C. Searle and Kara M. Wick.

Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces that Jeffrey Ihm (49, Naples) today pleaded guilty to 14 counts of wire fraud and 5 counts of aggravated identity theft. Each wire fraud count carries a maximum penalty of 20 years in federal prison and each aggravated identity theft conviction is punishable by a term of two years’ imprisonment, consecutive to the sentence imposed for the wire fraud convictions. The indictment also notifies Ihm that the United States intends to forfeit $315,000 in fraud proceeds previously seized from a Suncoast Credit Union checking account and a house located in Naples, which are alleged to be traceable proceeds of the offense. The United States is also seeking a money judgment in the amount of $2,234,681, representing the proceeds Ihm is alleged to have received as a result of the fraud scheme.

According to court documents, between February 2013 and July 2014, Ihm assumed the identities of and posed as executives of a number of companies, including Roper Industries, Inc., Kinetic Technologies, LLC, CSX Corporation, and Convergence Consulting Group, Inc. He then generated false and fraudulent emails and other documents in the names of the companies’ executives in order to defraud financial institutions, causing them to transfer to him $2,234,681 to which he was not entitled. Ihm used the monies to purchase real property and for other personal enrichment. 

This case was investigated by the Fort Myers Office of the United States Secret Service and the Jacksonville Office of the Federal Bureau of Investigation, with assistance from the Economic Crimes Unit of the Collier County Sherriff’s Office. It is being prosecuted by Assistant United States Attorneys David G. Lazarus and Dale R. Campion.

Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces today the return of an indictment charging Thomas Leslie Carr (48, Jacksonville) with two counts of producing child pornography. If convicted, he faces a mandatory minimum penalty 15 years, up to 30 years, in federal prison on each charge. Carr was arrested at his home today by federal agents. His arraignment and detention hearing are scheduled for August 30, 2016, at 10:00 a.m.       

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 Tampa and Jacksonville offices. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.

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

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 until, and unless, proven guilty.

Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Joe Manuel Gonzalez (66, Tampa) today pleaded guilty to structuring financial transactions to avoid currency reporting requirements. He faces a maximum penalty of five years in federal prison and a fine of up to $250,000.

According to the plea agreement, Gonzalez, an attorney with his own law practice in Tampa specializing in financial and tax matters, established a fictitious trust and bank account for a confidential source (CS) and undercover agent with the Drug Enforcement Administration.  The CS and the undercover agent posed as brothers seeking to launder drug proceeds from their marijuana grow house operations. The “brothers” told Gonzalez that they made approximately $30,000-$50,000 per month from their marijuana operation and needed somewhere safe to put their money. Gonzalez advised the “brothers” how to set up and make deposits into bank accounts to avoid detection by law enforcement. Gonzalez established a bank account for the “brothers” in the name of a fictitious trust and made the initial deposits into the bank account with what Gonzalez understood to be proceeds from the marijuana business. On two occasions, Gonzalez structured the cash provided to him by the undercover agent, breaking up the bank deposit into separate transactions under $10,000 to avoid the currency reporting requirements and to avoid detection by law enforcement.  

This case was investigated by the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Josephine W. Thomas.

Orlando, Florida – U.S. District Judge Roy B. Dalton today sentenced Kevin Edward Schoffman (30, Deland) to seven years in federal prison for distribution and possession of child pornography. The Court also ordered him to pay restitution to the victims of the offense. He pleaded guilty on June 3, 2016.

According to court documents, Schoffman, a first-year law student at the time, was part of a group of individuals who used a messaging application to send and receive images of child pornography. The group went by the name “YoungTorture” and circulated images of children as young as infants being sexually abused by adults. Schoffman was an active participant in the group, and at the time of his arrest possessed 1,012 images and 416 videos depicting child pornography. 

This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Embry J. Kidd.

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

Jacksonville, Florida – U.S. District Judge Henry Lee Adams, Jr. has sentenced Lorne Jordan to 51 months in federal prison for conspiracy to defraud the United States, theft of government funds, and aggravated identity theft. He was also ordered to pay restitution to the Internal Revenue Service in the amount of $120,713.09. Jordan pleaded guilty on April 15, 2016.

According to court documents, the Internal Revenue Service received information that Jordan was in possession of a large amount of U.S. Treasury checks and needed assistance in cashing them. Over a series of several meetings, Jordan provided more than 25 Treasury checks, totaling over $70,000, to an undercover agent for cashing. He also advised that he had previously worked with a postal employee to cash additional Treasury checks he had obtained. On January 13, 2016, agents executed a search warrant at Jordan’s residence and found personal identifying information of at least 100 individuals.   

The case was investigated by The Internal Revenue Service - Criminal Investigation, United States Postal Service -Office of Inspector General, Florida Department of Law Enforcement, and the North Florida Financial Crimes Task Force.  It was prosecuted by Assistant United States Attorney Kelly S. Karase.

Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Christopher A. Maguire (34, formerly of Orlando) to 10 years in federal prison for wire fraud and illegal monetary transactions. As part of his sentence, the Court also entered a money judgment in the amount of $4,938,574.40, the proceeds of the charged criminal conduct. Maguire pleaded guilty on May 18, 2016.

According to court documents, from at least May 2012 through April 2014, Maguire operated a scheme where he, and promoters employed by him, solicited victim-investors to send him funds via electronic wire or check. Maguire and his promoters targeted individuals and groups of victim-investors for funding using companies operated by Maguire including M Development LLC, IQ Options LLC, and Vivid Funding LLC.

The victims’ funds were never actually invested into the opportunity presented to them.  Maguire used some of the funds on personal expenditures, as well as payments to his promoters. Maguire also made numerous payments back to certain victims, often enticing these victims to reinvest the proceeds of the transaction, sometimes triggering additional investment of funds by the victims or their associates.

Through this scheme, Maguire was responsible for losses of over $4.9 million to over 150 victim-investors. The majority of the victims were located in central Florida and in northern Ohio.

This case was investigated by Internal Revenue Service - Criminal Investigation, and the Florida Office of Financial Regulation. It was prosecuted by Assistant United States Attorney Sara C. Sweeney.

Orlando, Florida – U.S. District Judge Roy B. Dalton today sentenced Timothy Michael Sedlak (43, Ocoee) to 42 years in federal prison for production and possession of child pornography.  The Court also ordered him to forfeit the computers and electronic equipment used in the offenses.  A federal jury found Sedlak guilty on May 26, 2016.

According to court documents, on two occasions, Sedlak took photographs of himself sexually abusing a small child.  The first incident took place in September 2009, when the victim was a year old, and the second incident took place in April 2011, when the child was three.  The images of Sedlak abusing the child were discovered when United States Secret Service agents executed a search warrant on Sedlak’s home as part of an unrelated computer intrusion investigation.  In addition to the images of the victim, agents discovered hundreds of images of child pornography on Sedlak’s computers that had been downloaded from the Internet.

"The horrible victimization this young child has survived cannot be erased, but we can ensure this criminal cannot harm another child," said Susan L. McCormick, Special Agent in Charge of the Tampa Division of the Department of Homeland Security, Homeland Security Investigations (HSI), who assisted with the investigation of the case. "HSI and our law enforcement partners will continue to make our communities safer and hold monsters like this accountable for their actions."

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.

This case was investigated by the United States Secret Service and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Vincent S. Chiu.

Tampa, FL – U.S. District Judge Steven D. Merryday today sentenced Terrell Tramone Brown (48, Alabama) to six years and eight months in federal prison for access device fraud and aggravated identity theft. The Court also ordered him to forfeit $102,024.15, which is traceable to proceeds of the offense.  Brown pleaded guilty on June 6, 2016.

According to court documents, on August 28, 2015, Brown, identifying himself as C.W., went to Dimmitt Cadillac in Clearwater, Florida and obtained a line of credit to purchase a 2015 Cadillac Escalade for $102,024.15. He provided the dealership with a counterfeit Kentucky driver’s license featuring C.W.’s name, but with Brown’s photograph. Brown also gave the dealership C.W.’s date of birth, Social Security number, and home address to secure the financing for the vehicle.

On February 19, 2016, investigators interviewed C.W., who currently resides in Texas. He stated that he does not know Brown, nor did he give him authorization to use his information to secure a loan. C.W. provided a copy of his credit report that lists the loan for the 2015 Cadillac Escalade as one of C.W.’s current obligations.  According to that credit report, no payments have been made towards the loan balance since the inception of the loan on August 29, 2015. A representative from the Kentucky State Police confirmed that the Kentucky driver’s license used by Brown was counterfeit.

On February 23, 2016, law enforcement officers stopped and arrested Brown as he was driving the 2015 Cadillac Escalade in Hernando County, Florida. At the time, Brown was a fugitive from his term of supervised release related to an earlier federal conviction for counterfeiting. A search of the vehicle resulted in the recovery of counterfeit checks, blank check stock, miscellaneous mail addressed to C.W. in Tampa, numerous counterfeit Florida and Kentucky driver’s licenses with Brown’s photo on them, numerous counterfeit Veterans Affairs ID’s with Brown’s picture on them, bank account documents matching the names on the counterfeit driver’s licenses and ID’s, miscellaneous personal identifiable information in the form of names, dates of birth, and Social Security numbers, counterfeit and re-encoded credit cards, a credit card skimmer, and numerous computers, devices, and smart phones. A search of Brown’s devices revealed that he had previously attempted to purchase a 2015 Dodge Charger for $49,169.14, and a 2014 Range Rover for $93,679.89, using stolen identities.

This case was investigated by the United States Secret Service and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Mandy Riedel.

Tampa, Florida – U.S. District Judge Charlene Edwards Honeywell yesterday sentenced Joshua Anthony Rivera (29, Orlando) to 46 years in federal prison for interfering with interstate commerce by robbery, brandishing a short-barreled shotgun in the course of committing those robberies, and possessing a firearm as a convicted felon.

Rivera was found guilty by a jury on March 10, 2016.

According to evidence presented at trial, between June 7 and June 17, 2015, Rivera robbed three convenience stores and a grocery store using a short-barreled shotgun. During the trial, victims of those robberies testified about their terrifying experiences, including one father whose young daughter had been with him during the robbery. In addition, surveillance videos revealed that the robber had worn some of the same articles of clothing during multiple robberies, particularly the same pair of athletic shoes. Trial evidence also showed that Rivera had used the same short-barreled shotgun during each robbery, and also had used the same Ford Expedition during at least two of the robberies.

When law enforcement officers arrested Rivera at his hotel, shortly after the last robbery, they found articles of clothing, the short-barreled shotgun, the Ford Expedition, and several other items matching those used during the robberies.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Hillsborough County Sheriff’s Office, the Plant City Police Department, the Manatee County Sheriff’s Office, and the Pasco County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Shauna S. Hale and Taylor G. Stout. 

Fort Myers, FL – United States Attorney A. Lee Bentley, III announces that James Thomas Bissell (32, Lehigh Acres) today pleaded guilty to possession with the intent to distribute cocaine, heroin, hydrocodone, marijuana, alprazolam and morphine, and possession of firearms as a convicted felon. The drug offenses are each punishable by a maximum penalty of 20 years in federal prison and the firearms offense is punishable by a maximum penalty of 10 years’ imprisonment.

According to the plea agreement, on October 23, 2015, Bissell sold cocaine and heroin to an undercover Lee County Sheriff’s detective at the defendant’s home in Lehigh Acres. On December 3, 2015, the Lee County Sheriff’s Office executed a search warrant at Bissell’s residence and recovered six types of controlled substances that he was holding for distribution, along with 34 firearms and cash. As a convicted felon, Bissell was prohibited from possessing the firearms, two of which had been previously reported stolen.     

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

Orlando, Florida – United States Attorney A. Lee Bentley, III announces that John Peter Christensen (64, West Palm Beach) has pleaded guilty to conspiracy to commit healthcare fraud. He faces a maximum penalty of five years in federal prison. A sentencing date has been set for November 21, 2016.

According to the plea agreement, Christensen was a licensed medical doctor in the State of Florida who practiced medicine in Palm Beach County and elsewhere in Florida. Christensen was also an enrolled Medicare provider and had a provider identification number that allowed him to submit reimbursement claims to Medicare for services that he provided to Medicare eligible patients. At some point between 2006 and 2011, Christensen authorized a chiropractor who operated a clinic in Volusia County, Florida, to use his name and Medicare provider number to submit false and fraudulent reimbursement claims to Medicare. As a result, Christensen caused over $1 million in loss to the Medicare program. Christensen used some of this fraudulently obtained money for personal expenditures, including an investment in a company and a payment towards the purchase of a Mercedes Benz vehicle. 

This case was investigated by the Federal Bureau of Investigation, the Food and Drug Administration, Office of Criminal Investigations, and the U.S. Department of Health and Human Services - Office of the Inspector General. It is being prosecuted by Assistant United States Attorneys Andrew C. Searle and Shawn P. Napier.

Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Chad Theodore Dillon (44, Okaloosa County) with 11 counts related to the sexual abuse of children. These charges include coercion and enticement of a minor, traveling with the intent to engage in sexual conduct with a minor, production of child pornography, transportation of child pornography, advertising for child pornography, and receipt of child pornography. If convicted, he faces a mandatory minimum penalty of 15 years in federal prison on four of the counts, and a maximum of life in federal prison on two of the counts.

On August 3, 2016, Dillon was arrested in Jacksonville pursuant to a criminal complaint. He is being held in federal custody.   

According to court documents, between July 6 and July 13, 2016, Dillon engaged in a series of graphic online conversations with a 15-year-old child. During the course of these conversations, he discussed his desire and intention to travel to Georgia to have sex with the child, which he later did. Dillon took a photo of himself engaged in sexual activity with the child and sent it to her. He also sent the child explicit photos of himself.

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

This case was investigated by the Florida Department of Law Enforcement, the Jacksonville Sheriff’s Office, and the Federal Bureau of Investigation. 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.

Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces today the return of a superseding indictment charging Matthew Bryan Caniff (33, Gainesville) with attempted online enticement of a minor, advertising for child pornography, and attempted production of child pornography. If convicted, he faces a minimum mandatory penalty of 10 years, up to life, in federal prison on the attempted enticement charge. He faces a minimum mandatory penalty of 15 years, up to 30 years, in prison for each of the enticement, advertising, and attempted production charges.

According to court documents, between March 31 and April 1, 2016, Caniff engaged in a series of online text conversations with a person he believed to be a 13-year-old child. This "child" was actually an undercover FBI agent. During the course of these conversations, Caniff discussed in graphic detail his desire to have sex with the “child” at “her” home. He also sent several explicit photos of himself to the “child,” and told “her” that he would bring prescription drugs with him to share with “her.” During the early morning hours on April 1, 2016, Caniff drove from Gainesville to a home in St. Johns County to meet the “child” for sex. He was arrested by deputes from the St. Johns County Sheriff’s Office, and several prescription pills were found in his possession.

This case was investigated by the St. Johns County Sheriff’s Office, the Alachua County Sheriff’s Office, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.

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

Jacksonville, Florida – U.S. District Judge Brian J. Davis today sentenced Deryck Dean Barcous (27, Jacksonville) to 46 months in federal prison for selling counterfeit Federal Reserve notes and for possessing a firearm as a convicted felon. In a companion case, Judge Davis sentenced Barcous to 14 months’ imprisonment for violating his federal supervised release. At the time Barcous committed these new criminal offenses, he was on federal supervised release for passing counterfeit Federal Reserve notes.   

According to court documents, on October 20, 2015, Barcous sold $3,640 in counterfeit currency to a confidential source (CS) working on behalf of law enforcement. During that transaction, Barcous displayed a firearm and offered to sell it to the CS. In a follow-up meeting two days later, Barcous sold the CS $5,600 in counterfeit currency and a loaded firearm and ammunition. He was subsequently arrested. Further investigation revealed that Barcous had four prior felony convictions. As a convicted felon, he is prohibited from possessing a firearm or ammunition under federal law.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Jacksonville Sheriff’s Office, and the United States Secret Service -Jacksonville Field Office. It was prosecuted by Assistant United States Attorney Kevin C. Frein.

Fort Myers, FL – United States Attorney A. Lee Bentley, III announces that Robert A. Scappa, D.O. has agreed to pay $250,000 to the government to resolve allegations that he violated the False Claims Act by causing claims to be submitted to federal health care programs for laboratory tests that were not medically necessary. 

During the relevant time period, Scappa was a urologist practicing as part of Scappa Urology, which was a division of 21st Century Oncology, LLC. 21st Century is a nationwide provider of integrated cancer care services that is headquartered in Fort Myers. As part of its business, 21st Century employs and affiliates with physicians in specialty fields such as radiation oncology, medical oncology, and urology. 

The settlement announced today resolves allegations that Scappa caused to be submitted claims to Medicare and Tricare for fluorescence in situ hybridization, or “FISH,” tests that were not medically necessary.  FISH tests are laboratory tests performed on urine that can detect genetic abnormalities associated with bladder cancer.  Medicare does not consider a FISH test reasonable or necessary unless it’s used to monitor for tumor reoccurrence in a patient previously diagnosed with bladder cancer or unless, after performing a full urologic workup, the physician has reason to suspect that a patient with hematuria (i.e., blood in the urine) may have bladder cancer.

In January 2009, Scappa began referring all of the FISH testing ordered by him to a laboratory owned and operated by 21st Century. He was paid bonuses by the company based, in part, on the number of FISH tests he referred to 21st Century laboratory.  The settlement is based on Scappa’s ability to pay. 

The allegations that doctors affiliated with 21st Century were ordering unnecessary FISH tests were originally brought in a lawsuit filed by a whistleblower under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery.  The whistleblower, a former medical assistant who worked for David Spellberg, M.D. at Naples Urology Associates, which was also a division of 21st Century Oncology, will receive $37,500 as her share of this recovery. This amount is in addition to a $3.2 million share she will receive as the result of the $19.75 million settlement previously reached with 21st Century Oncology.

“In fighting health care fraud, it is important that individual physicians, as well as their employers, be held accountable,” stated U.S. Attorney Bentley. “Doctors should not be able to escape personal liability for health care fraud.”

"This settlement is yet another example of the continuing commitment of the Defense Criminal Investigative Service (DCIS) and its law enforcement partners to protect the integrity of the Department of Defense (DoD) health care program," said Special Agent in Charge John F. Khin, Southeast Field Office.  "As one of our top priorities, DCIS aggressively investigates health care fraud that harms the DoD, to ensure the best use of precious taxpayer dollars needed to provide critical care for our Warfighters, their family members, and military retirees."

“Tests ordered to increase profits rather than improve the healthcare of patients are an attack on Medicare and the American taxpayer,” said Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General.  “This settlement demonstrates that such practices have consequences.”

The investigation was handled by Trial Attorney Arthur Di Dio from the Civil Division’s Commercial Litigation Branch and Assistant U.S. Attorney Kyle S. Cohen from the Fort Myers Division of the U.S. Attorney’s Office for the Middle District of Florida, with assistance from DCIS, FBI, and the Department of Health and Human Services Office of Inspector General. 

This civil settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services.  The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.  One of the most powerful tools in this effort is the False Claims Act.  Since January 2009, the Justice Department has recovered a total of more than $30 billion through False Claims Act cases, with more than $18.3 billion of that amount recovered in cases involving fraud against federal health care programs.

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

The lawsuit is captioned United States, State of Florida, ex rel. Mariela Barnes v. Dr. David Spellberg, 21st Century Oncology and Naples Urology Associates, Civil Action No. 2:13-cv-228-FtM-38DNF (M.D. Fla.). 

Jacksonville, Florida – United States District Judge Marcia Morales Howard has sentenced Jon Christopher Stoune (45, St. Johns County) to 17 years and 6 months in federal prison for the attempted online enticement of a minor to engage in sexual activity, advertising for child pornography, and attempted production of child pornography. He was also ordered to serve a 10-year term of supervision and to register as a sex offender upon his release. Stoune was found guilty by a federal jury in March 2016.

According to evidence presented at trial, during March and April 2015, Stoune engaged in a series of online conversations with a person he believed to be a 14-year-old child.  The "child" was actually a detective from the St. Johns County Sheriff’s Office.  During the course of these conversations, Stoune discussed in detail his desire to have sex with and obtain pornographic pictures of the “child.” On April 21, 2015, Stoune drove to St. Augustine Beach to meet the “child” for sex and was subsequently arrested. Officers recovered a digital camera, several sex toys, and condoms from Stoune’s pants pocket.  A search of his vehicle revealed, among other things, a backpack containing a leather whip, a wooden paddle, a billy club, nylon restraints, and other devices designed for use in sadomasochistic activity. 

This case was investigated by the St. Johns County Sheriff’s Office, the Volusia County Sheriff’s Office, the St. Augustine Beach Police Department, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney D. Rodney Brown.

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

Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell today sentenced Henry Alberto Fernandez Gomez (30, Cape Coral) to three years in federal prison for access device (credit card) fraud and aggravated identity theft. The Court also ordered him to repay $8,070.45 in restitution to his victims and an additional $8,070.45 to the United States in the form of a forfeiture money judgment representing the proceeds he obtained as a result of the offenses.  

According to the plea agreement, between December 30, 2014, and April 13, 2015, Fernandez Gomez used stolen and unauthorized credit card information 27 times at retail establishments throughout the Florida to purchase various items, including $3,500 of furniture. He also used another person’s means of identification to make a retail purchase.

This case was investigated by the Federal Bureau of Investigation, the Lee County Sheriff’s Office Economic Crimes Unit, and the Cape Coral Police Department. It was prosecuted by Assistant United States Attorney David G. Lazarus.

Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Darius Vashon Tolbert (38, Tampa) guilty of receipt of stolen government property and possession of stolen mail.  He faces a maximum penalty of 10 years in federal prison.  A sentencing date has not yet been set.

According to evidence presented at trial, Tolbert purchased approximately $569,000 of stolen Social Security benefit checks between April and July 2012.  The checks, belonging to more than 400 beneficiaries, were all destined for addresses in Pinellas County and had been stolen from the St. Petersburg Processing and Distribution Center by a postal mail handler.  They were part of a larger theft of more than $2 million in checks by the same mail handler. The checks that Tolbert purchased were later cashed at a money services business in Live Oak, Florida. The mail handler, Stacy Darnell Mitchell, was indicted in March 2016.      

This case was investigated by the Social Security Administration Office of the Inspector General, the United States Postal Service Office of Inspector General, the United States Postal Inspection Service, the United States Department of the Treasury, and the Pinellas County Sheriff’s office.  It is being prosecuted by Assistant United States Attorney Patrick Scruggs.

Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Anthony Johnson (52, Jacksonville) with three counts of aggravated identity theft and three counts of false representation of a Social Security number. Each aggravated identity theft count carries a two-year mandatory term of prison. He also faces a maximum penalty of five years in federal prison on each false representation count. Johnson is currently on federal supervised release for separate fraud and identity theft-related charges. He faces a final violation of supervised release hearing. A date has not yet been set for his arraignment or the final violation of supervised release hearing. He is currently in federal custody.       

According to the indictment, Johnson used the Social Security numbers of multiple victims to deceive the Duval County Tax Collector, Florida Department of Highway Safety and Motor Vehicle – Division of Motorist Services, and an apartment complex in Jacksonville.

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 Florida Highway Patrol – Bureau of Criminal Investigations and Intelligence, the Jacksonville Sheriff’s Office, and the United States Secret Service Jacksonville Field Office. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.

Tampa, FL – United States Attorney A. Lee Bentley, III announces that the United States Court of Appeals for the Eleventh Circuit has affirmed the convictions for all four defendants who stood trial in 2013 in the case of United States v. Peter Clay et al., commonly known as “The WellCare case.”

In June 2013, a federal jury in the Middle District of Florida found former WellCare Chief Executive Officer Todd S. Farha guilty of two counts of health care fraud; former WellCare Chief Financial Officer Paul L. Behrens guilty of two counts of making false statements relating to health care matters and two counts of health care fraud; William L. Kale, former Vice President of Harmony Behavioral Health, Inc. (a wholly-owned subsidiary of WellCare), guilty of two counts of health care fraud; and Peter E. Clay, former WellCare Vice President of Medical Economics, guilty of making false statements to a law enforcement officer.

In May 2014, the district court sentenced Farha to 36 months in prison, Behrens to 24 months, and Kale to one year and one day, and also sentenced Clay to five years’ probation (and no imprisonment). Clay then began serving his probation, but Farha, Behrens, and Kale have remained free pending the outcome of their appeal.

In a 124-page opinion and “[a]fter reviewing the extensive trial record and with the benefit of oral argument,” the Eleventh Circuit has now affirmed the jury’s verdicts against all four defendants.

As the Court summarized the case against Farha, Behrens, Kale, and Clay: “At trial, the government proved that together the defendants participated in a fraudulent scheme to file false Medicaid expense reports that misrepresented and overstated the amounts [that WellCare subsidiaries Staywell Health Plan of Florida and HealthEase of Florida, Inc.] spent on medical services for Medicaid patients, specifically outpatient behavioral health care services. By overstating these expenses, the defendants helped Staywell and HealthEase retain millions of dollars in tax-subsidized Medicaid funds that they should have refunded to the Florida Agency for Health Care Administration (‘AHCA’). This, in turn, inflated the profits of Staywell, HealthEase, and WellCare and earned the defendants financial rewards.”

The Court of Appeals characterized the evidence of criminal intent in this case as “overwhelming” and rejected the defendants’ characterization of their convictions as “the improper criminalization of routine contractual and regulatory disagreements.” Specifically, the Court declined to credit the defendants’ argument that their false reports of expenditures on mental healthcare for the poor, which were designed to retain publicly-funded Medicaid monies as profit, were “reasonable” interpretations of their statutory and contractual obligations, stating that it “need not further analyze the defendants’ post-hoc interpretation” because the defendants “did not believe it, knew what was required, and knew their answers were false.”

This case was investigated by the U.S. Department of Health and Human Services Office of Inspector General, the Federal Bureau of Investigation, and the Florida Attorney General's Medicaid Fraud Control Unit. The case was handled on appeal by Assistant United States Attorney Karin B. Hoppmann. It was prosecuted by Assistant United States Attorney Jay Trezevant, Assistant United States Attorney Cherie Krigsman, Senior Trial Attorney John Michelich of the Department of Justice’s Criminal Division’s Fraud Section, and Special Assistant United States Attorney John Bowers of the Middle District of Florida.

Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Ricky Delano Sheppard (59, Brevard County) has pleaded guilty to receiving child pornography.  He faces a mandatory minimum of 5 years, up to 20 years, in federal prison.  A sentencing date has not yet been set.

According to court records, on June 3, 2016, agents from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Brevard County Sheriff’s Office executed a search warrant at Sheppard’s residence. At the time, Sheppard was working as a principal at Spessard L. Holland Elementary School.  During a forensic examination of Sheppard’s computer media, thousands of images depicting child pornography were located, the majority of which depicted young boys, including toddlers, engaging in explicit sexual acts. 

This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations with assistance from the Brevard County Sheriff’s Office.  It is being 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 the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.justice.gov/psc.

Tampa, Florida – U.S. District Judge Susan C. Bucklew yesterday sentenced Merlando Corlis (48, Tampa) to three years of probation for unlawful discharge of a pollutant. The Court also ordered him to pay a fine of $25,000 and to make a community service payment of $25,000 to the National Fish & Wildlife Foundation.

Corlis pleaded guilty on May 4, 2016. 

According to court documents, from at least June 2012 through December 2013, at a property that he owned located at 4509 Orient Road in Tampa, Corlis and others acting at his direction used a vacuum tank to remove human waste from a septic tank and then unlawfully discharged the sewage into a stream, which ran from the East Lake to the Palm River. 

“Our nation’s environmental laws are designed to protect public health and safety,” said Andy Castro, Assistant Special Agent in Charge of the Environmental Protection Agency’s criminal enforcement program in Florida.  “Untreated sewage contains bacteria, parasites, and viruses. These pathogens can cause a wide variety of acute illnesses in both humans and animals. Today’s sentencing demonstrates that the EPA and its law enforcement partners will take action to protect communities and their local water supplies from pollution.”

This case was investigated by the Environmental Protection Agency, the Hillsborough County Sheriff’s Office, and the Environmental Protection Commission of Hillsborough County. It was prosecuted by Assistant United States Attorney Megan K. Kistler.

Eight Florida residents were charged in an indictment that was unsealed today for their alleged participation in a multimillion-dollar fraud scheme involving prescription compounding  pharmacies located in the Tampa Bay, Florida, area and in Miami.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney A. Lee Bentley III of the Middle District of Florida, Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office and Special Agent in Charge George Piro of the FBI’s Miami Field Office made the announcement.

Nicholas A. Borgesano Jr., 43, of New Port Richey, Florida; Bradley Sirkin, 54, of Boca Raton, Florida; Scott D. Piccininni, 47, of Fort Lauderdale, Florida; Edwin Patrick Young, 48, of New Port Richey; Wayne M. Kreisberg, 39, of Parkland, Florida; Matthew N. Sterner, 47, of New Port Richey; Peter D. Williams, 55, of New Port Richey; and Joseph Degregorio, 71, of New Port Richey, were each charged in a 12-count indictment returned on Aug. 3, 2016, with conspiracy to commit health care fraud and wire fraud.  Borgesano, Sirkin, Piccininni, Kreisberg and Sterner were each also charged with three money laundering counts.  Several defendants were arrested today and will have their initial appearances in federal courts in the Middle and Southern Districts of Florida.

According to the indictment, from approximately October 2012 through December 2015, the co-conspirators allegedly used A to Z Pharmacy Inc., located in New Port Richey, and several Miami-area pharmacies to cause the submission of false and fraudulent reimbursement claims for prescription compounded medications to private insurance companies, Medicare and Tricare.  These reimbursement claims were allegedly based on prescriptions generated as a result of illegal kickbacks and bribes, prescriptions that were not based on legitimate provider/patient relationships and misuse of patient information.  Additionally, the reimbursement claims allegedly represented that medications contained certain pharmaceutical ingredients when they did not.  In addition to A to Z Pharmacy, the defendants used Medplus/New Life Pharmacy, Metropolitan Pharmacy, Havana Pharmacy, Jaimy Pharmacy and Prestige Pharmacy to submit the reimbursement claims, according to the indictment. 

The pharmacies submitted approximately $633 million in claims for prescription compounded medications and received approximately $157 million in reimbursement based on the claims, the indictment alleges.  The conspirators allegedly used shell companies to transfer and disburse the money and to conceal the conspirators’ activities in the fraud scheme.

An indictment is merely an accusation, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. 

The FBI investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and U.S. Attorney’s Office of the Middle District of Florida.  Senior Trial Attorney Christopher J. Hunter of the Criminal Division’s Fraud Section is prosecuting the case.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,900 defendants who have collectively billed the Medicare program for more than $10 billion.  In addition, the U.S. Department of Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.

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

Tampa, FL – Eight Florida residents were charged in an indictment that was unsealed today for their alleged participation in a multimillion-dollar fraud scheme involving prescription compounding  pharmacies located in the Tampa Bay area and in Miami.

U.S. Attorney A. Lee Bentley III of the Middle District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division,  Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office, and Special Agent in Charge George Piro of the FBI’s Miami Field Office made the announcement.

Nicholas A. Borgesano Jr., 43, of New Port Richey; Bradley Sirkin, 54, of Boca Raton; Scott D. Piccininni, 47, of Fort Lauderdale; Edwin Patrick Young, 48, of New Port Richey; Wayne M. Kreisberg, 39, of Parkland; Matthew N. Sterner, 47, of New Port Richey; Peter D. Williams, 55, of New Port Richey, and Joseph Degregorio, 71, of New Port Richey, were each charged in a 12-count indictment returned on Aug. 3, 2016, with conspiracy to commit health care fraud and wire fraud.  Borgesano, Sirkin, Piccininni, Kreisberg and Sterner were each also charged with three money laundering counts.  Several defendants were arrested today and will have their initial appearances in federal courts in the Middle and Southern Districts of Florida.

According to the indictment, from approximately October 2012 through December 2015, the co-conspirators allegedly used A to Z Pharmacy Inc., located in New Port Richey, and several Miami-area pharmacies to cause the submission of false and fraudulent reimbursement claims for prescription compounded medications to private insurance companies, Medicare and Tricare.  These reimbursement claims were allegedly based on prescriptions generated as a result of illegal kickbacks and bribes, prescriptions that were not based on legitimate provider/patient relationships and misuse of patient information.  Additionally, the reimbursement claims allegedly represented that medications contained certain pharmaceutical ingredients when they did not.  In addition to A to Z Pharmacy, the defendants used Medplus/New Life Pharmacy, Metropolitan Pharmacy, Havana Pharmacy, Jaimy Pharmacy and Prestige Pharmacy to submit the reimbursement claims, according to the indictment. 

The pharmacies submitted approximately $633 million in claims for prescription compounded medications and received approximately $157 million in reimbursement based on the claims, the indictment alleges.  The conspirators allegedly used shell companies to transfer and disburse the money and to conceal the conspirators’ activities in the fraud scheme.

An indictment is merely an accusation, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. 

The FBI investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and U.S. Attorney’s Office of the Middle District of Florida.  Senior Trial Attorney Christopher J. Hunter of the Criminal Division’s Fraud Section is prosecuting the case.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,900 defendants who have collectively billed the Medicare program for more than $10 billion.  In addition, the U.S. Department of Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.

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

Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal yesterday today found Altius Willix (47, Winter Haven) guilty of conspiracy, attempted possession of methamphetamine, and assaulting federal officers, inflicting bodily injury. He faces a mandatory minimum penalty of life imprisonment. A sentencing hearing is scheduled for October 28, 2016.

Willix was indicted on May 11, 2016. 

According to evidence presented at trial, Willix arranged for four pounds of pure methamphetamine to be mailed from Tempe, Arizona to Winter Haven, Florida. After Willix attempted to retrieve the parcel, three federal agents approached him. Willix fled and ultimately collided with one of the agents, causing him to fall to the ground. Willix continued to resist arrest, as agents attempted to detain him, resulting in their injury. During the struggle, Willix tried to remove holstered firearms from two of those agents. When told to let go, Willix responded, “You’re gonna have to kill me.” Willix was ultimately handcuffed and taken into custody.

This case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, the U.S. Postal Inspection Service, and the Winter Haven Police Department. It is being prosecuted by Assistant United States Attorney Carlton C. Gammons.

Jacksonville, FL – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Matthew Barker (33, Jacksonville) with distribution of heroin and possession of a firearm in furtherance of that crime. If convicted on all counts, he faces a maximum penalty of life in federal prison. The indictment also notifies Barker that the United States intends to forfeit any firearms or ammunition involved in the offense.

According to the indictment, Barker distributed heroin in February and July 2016.  He used a gun to further his drug distribution activity on one of those occasions.

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

This case was investigated by the Jacksonville Sheriff’s Office, the Federal Bureau of Investigation and the Drug Enforcement Administration. It will be prosecuted by Assistant United States Attorney Frank Talbot.

Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Shanakia Benton to three years in federal prison for wrongful disclosure of individual identifiable health information and wire fraud. As part of her sentence, the Court also entered a money judgment in the amount of $77,239, the proceeds of the wire fraud. Benton pleaded guilty on May 2, 2016.

According to court documents, Benton was an employee at Tampa General Hospital (TGH) and had access to the personal health information of thousands of patients. She regularly received training regarding the Health Insurance Portability and Accountability Act, which prevents the unauthorized disclosure of personal health information. Despite her training, between June 2011 and December 2012, Benton illegally accessed the personal information of more than 600 TGH patients. Benton and her accomplices then used that information to file at least 29 false tax returns seeking refunds totaling $226,000. 

This case was investigated by the U.S. Department of Health and Human Services – Office of Inspector General, the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, and the Tampa Police Department. It was prosecuted by Trial Attorney Timothy Loper.

Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Cecil Dante Buckner (36) and Jarmen Lindell Sharp (34), both of Orlando, pleaded guilty to conspiracy to interfere with interstate commerce by robbery, and two substantive counts of interference with interstate commerce by robbery. Buckner also pleaded guilty to two counts of brandishing a firearm during and in relation to the robberies. Sharp faces a maximum penalty of 20 years’ imprisonment. Buckner faces a minimum penalty of 32 years, up to life, in federal prison. A sentencing date has not yet been set.

According to the plea agreement, beginning no later than February 28, 2014, and continuing through on or about April 23, 2014, Buckner, Sharp and another individual conspired to rob Publix supermarkets in Orange and Volusia Counties. Specifically, on February 28, 2014, the two and their co-conspirator robbed the Publix located at 2295 Aloma Avenue, in Winter Park; on March 16, 2014, robbed the Publix located at 7640 West Sand Lake Road, in Orlando; and on March 30, 2014, robbed the Publix located at 2410 South Woodland Boulevard, in DeLand. During each of the robberies, Buckner and a co-conspirator wore masks and gloves to conceal their identities. Buckner held store customers and employees at gunpoint at the front of the stores, while the co-conspirator forced store employees into the cashier room at gunpoint and stole cash. Sharp acted as the “lookout” during each of the robberies, waiting in the parking lot of the stores to alert Buckner and the co-conspirator in the event law enforcement arrived. In total, Buckner, Sharp, and their co-conspirator stole over $24,000 from Publix as a result of these robberies.

Additionally, on May 4, 2016, Buckner and another individual robbed the Publix supermarket located at 2515 Thonotosassa Road, in Plant City. During that robbery, Buckner held store customers and employees at gunpoint while the other individual forced a store employee into the cashier room, at gunpoint. As a result of this robbery, Buckner and the other individual stole over $18,000 from Publix.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Orange County Sheriff’s Office, the Winter Park Police Department, and the Deland Police Department. It is being prosecuted by Assistant United States Attorney Kara M. Wick.

Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces the arrest and charging by criminal complaint of Jazmin Challana Barron (33, Lehigh Acres) with making false statements during the purchase of a firearm and making false statements in records kept by a Federal Firearms Licensee (FFL). If convicted on all counts, she faces a maximum penalty of 10 years in federal prison for making the false statement during the purchase of a firearm and 5 years’ imprisonment for making a false statement in records kept by a FFL. Barron made her initial appearance in federal court today and was released on a $25,000 bond.     

According to the complaint affidavit, on February 20, 2015, Barron purchased a MasterPiece Arms pistol (Model: MPA57SST; 5.7 caliber; SN: V9101) from Gunsmoke and Lead, a licensed federal firearms dealer, in Lehigh Acres, Florida. Barron completed an ATF Form 4473 as required to purchase the firearm; however, she provided a false address where she had not, and was not, residing at the time of the purchase.  The firearm was recovered by the Fort Myers Police Department near the scene of the mass shooting at the Club Blu Bar and Grill on July 25, 2016.

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

This case was investigated by the Fort Myers Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It will be prosecuted by Chief Assistant United States Attorney Jesus M. Casas.

This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy.  United States Attorney A. Lee Bentley, III, 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 ATF’s Frontline strategy to reduce violent crime in our communities.

Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Wilson Angelo Graham, Jr., a/k/a “Noony” (34, Lakeland) pleaded guilty yesterday to conspiracy to distribute fentanyl and cocaine, resulting in two deaths. He faces a minimum penalty of 20 years, up to life, in federal prison. A sentencing date has not yet been set.

Fentanyl is a Schedule II controlled substance that is used in the same manner as heroin. Because of its potency, a small amount of fentanyl is potentially lethal.

According to the plea agreement, from at least October 3, 2015, through his arrest on October 28, 2015, Graham distributed fentanyl and cocaine in Lakeland. Beginning on October 3rd, Graham sent messages to “D.G.” about fentanyl that Graham had available to sell. Graham also advised “D.G.” that the fentanyl was too strong to use more than half a baggie at once. Between October 3rd and October 16, 2015, “D.G.” made multiple trips to Graham’s residence.

On the evening of October 16, 2015, the body of “B.S.,” the girlfriend of “D.G.,” was found slumped over a coffee table in her parents’ guest cottage in Lakeland. During a search of the guest cottage, detectives with the Polk County Sheriff’s Office (PCSO) located syringes, spoons with burned residue, and an empty package with drug residue. The empty package was light blue; stamped on the package were the words “Face to Face” and a silhouette of two heads facing each other. Laboratory testing of the residues from the spoons and package revealed the presence of fentanyl. A lethal amount of fentanyl was found in “B.S.’s” body.

On the morning of October 22, 2015, the Lakeland Police Department’s Violent Crimes Unit responded to an apartment in Lakeland, where they found the body of “D.G.” on the kitchen floor. Near the body, detectives located numerous pieces of drug paraphernalia, including spoons with burned residue and an empty package with drug residue resembling the empty package found near the body of “B.S.” Light blue wax paper, with the words “Face to Face,” and a silhouette of two heads facing each other, were also found. Laboratory testing of the spoon and package residues revealed the presence of fentanyl and one of the spoons revealed the presence of cocaine. A lethal amount of fentanyl was found in “D.G.’s” body and evidence revealed that “D.G.” was at Graham’s residence the night before he died.

On October 28, 2015, PCSO detectives executed a search warrant at Graham’s residence. During the search, detectives found eight baggies containing fentanyl. At least one of the baggies resembled the baggies found near the bodies of “B.S.” and “D.G.” 

This case was investigated by the Polk County Sheriff’s Office, the Lakeland Police Department, and the U.S. Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Dan Baeza.

Tampa, Florida – United States District Judge Elizabeth A. Kovachevich today sentenced Ynessa Brown and Thelonius Robertson, both of Gibsonton, to 61 months in federal prison for conspiring to commit tax fraud and aggravated identity theft. At sentencing, Robertson and Brown were ordered to make restitution to the IRS in the amount of $673,398. In addition, a forfeiture money judgment in the amount of $767,398 was entered, representing the total proceeds of their fraud conspiracy. 

According to court documents, from January 2012 through June 2013, Brown and Robertson possessed and used stolen identities, including those of deceased persons, to electronically file fraudulent tax returns with the IRS through an Internet service provider in Brown’s name. Many of the false tax returns were filed jointly, and in many cases, one or both of the victims were deceased. Items related to these false returns and refunds, including $94,000 in cash, was seized during a search of Brown’s residence in June 2013. 

From these fraudulently filed tax returns, Brown and Robertson directed the tax refunds onto unauthorized debit cards, many in other people’s names, and often to H & R Block Emerald cards, which were sent to either their address, the addresses of friends and family, and/or to vacant addresses. Brown and Robertson used these refunds to purchase merchandise or to make cash withdrawals, mostly from Fifth Third bank ATMs. 

This case was brought as part of an initiative dedicated to combating the growing problem of identity theft and the fraudulent filing of electronic tax claims. It was investigated by the Hillsborough County Sheriff’s Office and the Internal Revenue Service Criminal Investigation. It was prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.

Tampa, FL – U.S. District Judge James S. Moody, Jr. today sentenced Latosha Strong to 15 months in federal prison for filing false federal income tax returns in the names of deceased individuals.  The Court also ordered her to pay $52,735.71 in restitution to the U.S. Treasury, which are traceable to proceeds of the offense. Strong pleaded guilty on December 11, 2015.

According to court documents, Strong, and others working with her, prepared and filed fraudulent tax returns using the stolen identities of at least 10 deceased individuals for the 2010 and 2011 tax years.  The resulting tax refunds were directed to at least five different bank accounts in Strong’s name.  The amount of false claims totaled $85,814, but due to federal seizure warrants and financial institution reclamations, the actual tax loss amounted to $52,735.71.

Analysis of information from the 10 deceased individuals’ returns shows that these conspirators used similar “formulas” to generate the fraudulent returns, including income, tax withholding, and interest income.  In addition, several of the false returns claimed identical refund amounts.

Strong and others shared in the proceeds from the scheme. The monies were spent on a variety of retail items and services, and in transactions at a local casino. 

This case was investigated by IRS Criminal Investigation. It was prosecuted by Assistant United States Attorney Mandy Riedel.

Orlando, FL – United States Attorney A. Lee Bentley III, along with Daytona Beach Police Chief Michael Chitwood, Assistant Special Agent in Charge Trevor A. Velinor of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and State Attorney R.J. Larizza, announces the arrest of 20 individuals (link to summary chart) as part of a joint law enforcement operation named “Operation Ceasefire.” As part of this operation, 11 individuals have been federally charged with firearms-related offenses. Penalties for the various offenses range from 5 years, up to life, in federal prison. Nine individuals have also been charged by the state with drug and firearms-related offenses. These cumulative arrests are the result of a violent crime initiative jointly undertaken by the United States Attorney’s Office, ATF, the Daytona Beach Police Department, and the State Attorney’s Office for the Seventh Judicial Circuit.

"Fighting violent crime is a top priority of my Office," said U.S. Attorney Lee Bentley. "We’re doing that by prosecuting felons possessing firearms and drug traffickers in areas most victimized by violent crime. We are very grateful for the hard work and dedication of ATF and our local partners, the Daytona Beach Police Department, and the State Attorney’s Office."

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

Additional cases have already been prosecuted as part of this joint violent crime initiative, including five federal cases and two state cases.

These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Daytona Beach Police Department. The federal cases will be prosecuted by Assistant United States Attorneys Jackson Boggs, Chauncey Bratt, Emily Chang, Vince Chiu, Tiffany Cummins, Embry Kidd, Shawn Napier, Ilianys Rivera-Miranda, and Sean Shecter.

These cases are prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy.  United States Attorney Bentley, 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 ATF’s Frontline strategy to combat violent crime in our communities.

WHO:      

United States Attorney A. Lee Bentley, III

ATF Assistant Special Agent in Charge Trevor A. Velinor

Daytona Beach Police Chief Michael Chitwood

State Attorney R.J. Larizza

WHAT:

Press conference to announce the unsealing of indictments and arrests of multiple individuals involved in firearms and drug trafficking.

WHEN:     

Wednesday, July 27, 2016, 11:00 A.M. EST     

WHERE: 

Daytona Beach Police Department

129 Valor Boulevard (Second Floor)

Daytona Beach, Florida 32114

OPEN PRESS

NOTE:  All media must present government-issued photo I.D. (such as a driver’s license).  

Media may begin arriving at 10:15 A.M.

Please RSVP to Amy.Filjones@usdoj.gov by 5:00 p.m. on Tuesday, July 25, 2016.

Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Robin C. Briere (53, Clermont) has pleaded guilty to wire fraud for her theft of more than $650,000 from the American Legion Auxiliary Department of Florida.  She faces up to 20 years in federal prison.  A sentencing date has not yet been set.

According to court documents, Briere used her position as Secretary-Treasurer of the American Legion Auxiliary to steal approximately $657,441 from the organization over a seven-year period from 2007 to 2014.  Briere accomplished her scheme by creating more than 200 fraudulent transactions, most of which involved Briere writing checks to herself on the American Legion Auxiliary account and then inputting false entries to the organization’s accounting system.  She also wrote checks from the American Legion Auxiliary account to pay her personal credit card bills. In some instances, Briere used the American Legion Auxiliary credit card to pay her personal expenses.

This case was investigated by the Federal Bureau of Investigation.  It is being prosecuted by Assistant United States Attorneys Roger B. Handberg and Nathan W. Hill.

Tampa, FL – United States Attorney A. Lee Bentley, III announces that Kenneth Joseph Skelly (64, New Port Richey) will pay $52,608.86 to settle allegations that he failed to disclose his employment by, and participation in, a business while he was collecting federal workers’ compensation benefits.

The Federal Employees’ Compensation Act (FECA) is the workers’ compensation program for federal employees. Like many workers’ compensation programs, FECA pays disability, survivors, and medical benefits, without fault, to employees who are injured or become ill in the course of their federal employment and to the survivors of employees killed on the job. Federal workers who receive such benefits are required to file reports every 15 months disclosing, among other things, whether they have been employed, have had any involvement in the operations of a business, or done any volunteer work.  This information allows the Government to determine whether it is appropriate to adjust the amount of compensation being paid.

Skelly was employed by the National Aeronautics and Space Administration (NASA) as a safety engineer when he suffered an injury during his employment. Since December 1989, and continuing today, Skelly has received compensation for total disability.  During the last decade, he engaged in various activities that he did not disclose on his regular reports, including: starting and helping to run a business that sold safety information to first responders; playing in a band that was paid for its performances; and recording and offering the band’s music for sale. Many of these endeavors netted little income, but all were required to be disclosed on his regular reports.

The most egregious omission was work that Skelly and his company performed between early 2005 and early 2006, after hurricanes hit the Gulf Coast area. For example, Skelly worked nearly four months in New Orleans following Hurricane Katrina. He contended that all of his work was on a volunteer basis for which he received no reimbursement, however, he regularly filled out time cards and submitted expenses. Further, the monies that his company was paid for his work went into a bank account linked to a debit card that he used for personal and other expenses, thus effectively drawing a paycheck.

Had Skelly disclosed his work on the hurricane recovery efforts, he would not have been entitled to the $35,072.57 in worker’s compensation benefits that he was paid between 2005 and 2006.

“Federal employees receiving worker’ compensation must truthfully report income earned from other sources” said U.S. Attorney Bentley. “Here, Mr. Skelly failed to do so and was paid over $35,000 to which he was not entitled.  Such dishonesty, which threatens the viability of an important program, warrants a payment by Mr. Skelly in excess of the amount fraudulently obtained.”

"I commend Special Agent Ryan Sims and the USAO for the Middle District of Florida for their outstanding efforts in safeguarding the integrity of FECA," said Michael W. Sonntag, Special Agent in Charge of the Office of Investigations, NASA Office of Inspector General.

The settlement resolves a lawsuit filed by the United States against Skelly, which was scheduled for trial in September. That suit was filed as a result of proactive investigative efforts by the NASA Office of the Inspector General.

This case was investigated jointly by Assistant U.S. Attorney Charles Harden of the United States Attorney’s Office for the Middle District of Florida and the NASA Office of Inspector General.

The lawsuit was filed in the Middle District of Florida, and is captioned United States v. Skelly, Case No. 8:14-cv-2470-T-35-MAP (M.D. Fla.).

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

Ocala, Florida – Senior U.S. District Judge Wm. Terrell Hodges today sentenced Kenneth Everette Robinson, Jr. (31, Marion County) to 15 years in federal prison for possession of a firearm and ammunition by a convicted felon. The Court also ordered him to forfeit the semi-automatic firearm and ammunition involved in the offense. Robinson previously pleaded guilty on January 19, 2016.

According to court documents, an Ocala police officer stopped Robinson for speeding on March 10, 2015. Robinson, who had no driver’s license, provided conflicting answers about the identity of the vehicle’s owner. He also admitted that he had marijuana inside the vehicle. During a subsequent search, the officer recovered Robinson’s wallet, marijuana, a digital scale, and a loaded .45 caliber semi-automatic pistol. When Robinson denied any knowledge of the firearm, law enforcement obtained a DNA sample from Robinson and submitted the firearm for further testing. Results of the test subsequently confirmed the presence of Robinson’s DNA on the firearm. Robinson later admitted that the loaded firearm belonged to him.

Robinson has nine prior state felony convictions, including multiple convictions for drug distribution, qualifying him for a sentencing enhancement as an Armed Career Criminal. Moreover, as a convicted felon, he is prohibited from possessing a firearm or ammunition under federal law.    

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the City of Ocala Police Department. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, 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.  United States Attorney A. Lee Bentley, III, 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, FL – United States Attorney A. Lee Bentley, III announced today the return of an indictment charging Richard Lilliston (69, Brooksville) with conspiracy to defraud two Social Security Administration (“SSA”) programs, and to make false statements to the SSA programs. If convicted, he faces a maximum penalty of five years in federal prison and a fine of $250,000.

Three former Hillsborough Achievement and Resource Centers (HARC) employees have previously pleaded guilty to related charges. HARC CFO Frank Pannullo pleaded guilty to conspiracy on June 6, 2016, for his role in the criminal conduct at HARC (Case No. 8:16-cr-222-T-35JSS). Marsha Weisse, a former HARC controller and CFO, pleaded guilty on December 10, 2015, to submitting a false statement to the SSA and is awaiting sentencing (Case No. 8:15-cr-486-T-26JSS). Sandra Shepherd, a former HARC client finance manager, also pleaded guilty to submitting a false statement to the SSA. Shepherd was sentenced on March 24, 2016 (Case No. 8:15-cr-400-T-36TBM).

According to Lilliston’s indictment and other related court documents, HARC, formerly the Hillsborough Association for Retarded Citizens, was established in 1953 to positively impact the future for people living with developmental disabilities, such as Alzheimer’s disease and Down syndrome. HARC opened and operated group homes that served its target client population and also spearheaded various community programs for its clients, focused on inclusion activities for youths, adults, and seniors with disabilities.

Many of the HARC clients received SSA benefits from the Supplemental Security Income and the Old Age, Survivors’ and Disability Insurance programs due to various developmental disabilities. For certain HARC clients who lacked the capacity to manage their own SSA program benefits, SSA approved one or more HARC officials to act as a “Representative Payee” to receive the client’s benefits and to use them exclusively for that client’s benefit. As a Representative Payee, the HARC official was required to complete and submit to the SSA a “Representative Payee Report” (or “Form SSA-6234”). The SSA Form SSA-6234 required that basic financial information relating to each HARC client who was an SSA program beneficiary be submitted annually to the SSA. The required financial information included, among other information: (1) how much had been spent for the beneficiary's food and housing during the relevant period; (2) how much had been spent on other items and services—such as clothing, education, medical and dental expenses, recreation, or personal items—directly for the beneficiary; and (3) how much, if any, had been saved for the beneficiary as of the end of the relevant period.

The indictment alleges that in or about January 2001, through November 2011, the conspirators engaged in a scheme to defraud the SSA. Specifically, in January 2001, HARC opened an account at SunTrust bank, commonly referred to within HARC as the "Endowment Account." That account was purportedly established to maintain and safeguard the HARC clients' funds for each client’s relevant needs. However, shortly after the creation of the account, Lilliston and Pannullo, HARC’s CEO and CFO, respectively, began wrongfully diverting HARC clients’ funds from the Endowment Account into the HARC operating account, to cover various expenditures unrelated to any particular HARC client's personal needs or use. As a result of the diversion of client funds, substantially all of the Form SSA-6234s submitted to the SSA for the affected HARC clients contained false and fraudulent information. Also, early in the conspiracy, CFO Pannullo and one or more conspirators developed an "Endowment Account Worksheet" that purportedly tracked each HARC client's balance within the Endowment Account. In other words, a HARC client's Endowment Account worksheet balance was to be increased whenever funds were transferred into the account from that client's personal bank account (or from any other source) and correspondingly decreased when funds were extracted to pay for that client's personal needs and use. However, the wrongful diversions by the conspirators from the Endowment Account to the operating account were not recorded in any manner on the Endowment Account worksheet. Thus, while the worksheet made it appear as if funds in the Endowment Account were being maintained and safeguarded—and readily available—for the HARC clients' personal needs and use, such was not the case.

In another effort to conceal that HARC client funds had been, and were being, wrongfully diverted from the Endowment Account, and to make it appear as if the account had been properly established and maintained since at least 2007, Lilliston directed others at HARC to secure signatures from the developmentally disabled HARC clients on a document titled "Pooled Trust Joinder Agreement." Many, if not most of, the developmentally disabled clients who signed the document did not have the necessary capacity to understand the full import of the document. Lilliston and others at HARC signed and dated the documents as if they had been executed in April 2007, when in truth they were actually executed in late November 2009.

In June 2013, the U.S. Attorney’s Office filed a Verified Complaint for Forfeiture In Rem in a related case (Case No. 8:13-Cv-1601-T-17TBM), seeking the forfeiture of $87,000 held in a Synovus Bank account. That complaint raised like allegations—that HARC clients’ SSA benefits had been wrongfully diverted from the clients and used by HARC for other purposes—and was supported by facts contained in the sworn affidavit of a special agent with the U.S. Department of Health and Human Services - Office of Inspector General. On September 30, 2013, the district court entered a Default Judgment of Forfeiture in which the Court ordered the forfeiture of the $87,000 to the United States.       

This case is being investigated by the Social Security Administration - Office of the Inspector General, the U.S. Department of Health and Human Services - Office of the Inspector General, and the Florida Department of Law Enforcement, along with the State of Florida’s Department of Financial Services - Office of Fiscal Integrity. It is being prosecuted by Assistant United States Attorney Jay G. Trezevant.

U.S. Attorney A. Lee Bentley, III announces today that the Department of Justice's Bureau of Justice Assistance (BJA) has awarded a total of $12,351,298 to the Florida Department of Law Enforcement (FDLE) through the Edward Byrne Justice Assistance Grant (JAG) program. This amount includes $1 million previously announced by Attorney General Loretta Lynch on June 21, 2016, in response to the shootings at the Pulse Nightclub in Orlando. These funds will be used to reimburse state and local governments, and law enforcement agencies, for personnel and overtime costs related to the shootings.

“In the aftermath of the Pulse nightclub tragedy, over 1,500 law enforcement officers worked tirelessly around the clock for weeks, and many are continuing to do so. Our Office owes a great debt to the Orlando Police Department, the Orange County Sheriff’s Office, and the other state and local law enforcement agencies that did much of this important work,” said U.S. Attorney Bentley. “It is appropriate that these funds will be used to offset some of the extraordinary costs incurred by our state and local law enforcement partners.”

The remaining $11,351,298 is the FY 2016 formula JAG grant awarded to the State of Florida. The goal of Florida's JAG program is to enable local governments and state criminal justice agencies to receive the assistance needed to help fund and improve their own programs in an effort to improve law enforcement and criminal justice within their respective communities and jurisdictions. FDLE will use administrative funds for personnel services, including salaries and benefits, travel expenses, supplies, consultants and contracts, equipment, other costs, and indirect costs necessary to administer JAG funds.

Additionally, BJA will award a total $589,686 to both Orange County ($405,024) and the City of Orlando ($184,662) through the JAG program. Orange County will utilize this award to support a variety of law enforcement related initiatives that will enhance essential county services. The City of Orlando will use its funds to purchase new portable radios for the Orlando Police Department's communications system.

The JAG program is the primary provider of federal criminal justice funding to state and local jurisdictions. The program provides states and local governments with critical funding necessary to support a range of program areas, including law enforcement; prosecution and court programs; prevention and education programs; corrections and community corrections; drug treatment and crime victim and witness initiatives; and planning, evaluation, and technology improvement programs.

Information about the Office of Justice Programs can be found at http://www.ojp.usdoj.gov.

A Jacksonville, Florida, man pleaded guilty today for unlawfully procuring U.S. citizenship by failing to disclose during his naturalization process his membership in the Bosnian Army and crimes that he committed in Bosnia and Herzegovina during the Bosnian Conflict in the 1990s, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney A. Lee Bentley III of the Middle District of Florida.  

Slobo Maric, 56, pleaded guilty before U.S. Magistrate Judge James R. Klindt of the Middle District of Florida.  Sentencing has not yet been scheduled.

According to the plea agreement, in 1993, Maric served as a shift leader, the second in command to the warden, of a detention facility in Bosnia that housed captured Bosnian-Croat soldiers.  Many of the guards in the facility routinely subjected detainees to serious physical abuse and humiliation, including by referring to them with ethnic slurs and spitting on them.  According to the plea agreement, Maric selected detainees for other guards to abuse; directly participated in abusing several prisoners; and sent prisoners on dangerous and deadly work details on the front line of the conflict.  The Bosnian government charged Maric for his criminal conduct and, after Maric immigrated to the United States, Bosnia indicted and convicted Maric in absentia for war crimes against prisoners.  According to the plea agreement, Maric knew about the Bosnian court proceedings, yet he failed to disclose the proceedings and lied about his conduct on his application for U.S. citizenship.  Maric became a naturalized U.S. citizen on Oct. 31, 2002.

U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Jacksonville Field Office investigated the case under the supervision of the HSI Tampa Field Office with support from ICE’s Human Rights Violators and War Crimes Center. 

Trial Attorneys Clayton O’Connor, Sasha Rutizer and Christina Giffin and Historian David Rich of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Dale Campion of the Middle District of Florida are prosecuting the case.  

Jacksonville, FL  – A Jacksonville, Florida, man pleaded guilty today for unlawfully procuring U.S. citizenship by failing to disclose during his naturalization process his membership in the Bosnian Army and crimes that he committed in Bosnia and Herzegovina during the Bosnian Conflict in the 1990s, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney A. Lee Bentley III of the Middle District of Florida.  

Slobo Maric (56, Jacksonville) pleaded guilty before U.S. Magistrate Judge James R. Klindt of the Middle District of Florida.  He faces a maximum penalty of ten years in federal prison.  Additionally, he faces a mandatory revocation of his certificate of naturalization, and cancellation of his U.S. citizenship. Sentencing has not yet been scheduled.

According to the plea agreement, in 1993, Maric served as a shift leader, the second in command to the warden of a detention facility in Bosnia that housed captured Bosnian-Croat soldiers.  Many of  the guards in the facility routinely subjected detainees to serious physical abuse and humiliation, including by referring to them with ethnic slurs and spitting on them.  According to the plea agreement Maric selected detainees for other guards to abuse; directly participated in abusing several prisoners; and sent prisoners on dangerous and deadly work details on the front line of the conflict.  The Bosnian government charged Maric for his criminal conduct and, after Maric immigrated to the United States, Bosnia indicted and convicted Maric in absentia for war crimes against prisoners.  According to the plea agreement, Maric knew about the Bosnian court proceedings, yet he failed to disclose the proceedings and lied about his conduct on his application for U.S. citizenship.  Maric became a naturalized U.S. citizen on Oct. 31, 2002.

U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Jacksonville Field Office investigated the case under the supervision of the HSI Tampa Field Office with support from ICE’s Human Rights Violators and War Crimes Center. 

Trial Attorneys Clayton O’Connor, Sasha Rutizer and Christina Giffin and Historian David Rich of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Dale Campion of the Middle District of Florida are prosecuting the case.