Middle District of Florida

Orlando, FL – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Lashunda Veneice Redd (35, Orlando) with one count of theft of government money, two counts of aggravated identity theft, and nine counts of making, uttering, and possessing counterfeit and forged securities. If convicted, she faces a maximum penalty of 10 years in federal prison for the theft of government money, a mandatory minimum of 2 years’ imprisonment for each aggravated identity theft charge, and a maximum of 10 years in prison for the counterfeit and forged securities charges.

According to court documents, between December 2014 and April 2015, across at least four Central Florida counties, Redd stole money from the Social Security Administration. Following up on a lead from the Bureau of Fiscal Services, investigators learned that Redd’s mother had requested several replacement checks for her Social Security benefits. These checks were then altered to be made payable to different individuals, including Redd, for larger dollar amounts. On January 22, 2015, Redd cashed a check originally made payable to her mother that had been altered to name her (Redd) as the payee. The amount of money payable on the check had also been altered from $640 to $1,940, resulting in a loss of $1,300 to the government.

On December 3 and 24, 2014, Redd unlawfully used two other individuals’ means of identification to commit bank fraud in relation to her fraudulently altered United States Treasury check scheme.

The investigation also revealed that Redd had made, uttered, and possessed counterfeit and forged checks, which she had used at Publix stores in Orange, Brevard, and Seminole counties from January to March 2015, resulting in a loss of thousands of dollars to Publix.          

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 Social Security Administration, Office of the Inspector General, and the Department of Treasury, Office of the Inspector General. It will be prosecuted by Assistant United States Attorney Joseph M. Schuster.

Tampa, FL – U.S. District Judge Mary S. Scriven today sentenced Naresh Kumar Chintala (33, India) to 30 months in federal prison for conspiracy to commit wire fraud and to dispense prescription drugs without a prescription. He pleaded guilty on February 23, 2015.

According to court documents, Chintala worked for an India-based company that marketed drugs, both prescription and otherwise, to customers in the United States by means of telemarketing. The representations made by the marketers about these drugs claimed that the drugs were made in the United States and FDA-approved. In reality, the drugs were neither. In some instances, the drugs sold through this marketing scheme were prescription medications, but the company required no medical prescription for the sale. The medications ordered by the customers were shipped to them from India, in parcels bearing false labels as to the nature of their contents. Chintala traveled to the United States in late 2014 on company business and was arrested in Jacksonville, Florida.

This case was investigated by the United States Food and Drug Administration. It was prosecuted by Assistant United States Attorneys Jay L. Hoffer and Mark Bini.

Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging James Steven Hall (47, Lake City) with manufacturing and passing counterfeit currency. If convicted on all counts, he faces a maximum penalty of 40 years in federal prison. Hall was arraigned on May 19, 2015, and released on bond. He is scheduled for trial during the July 2015 trial term.   

According to the indictment, Hall began manufacturing and passing counterfeit currency beginning at least in February 2015 through March 2015, in Columbia County, Florida.

An indictment 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 Columbia County Sheriff’s Office and the United States Secret Service. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.

Jacksonville, FL – Dr. Sean Orr of Jacksonville, Florida, has agreed to pay $150,000 to settle allegations that he violated the False Claims Act by providing medically unnecessary services and drugs to federal health care program beneficiaries, the Department of Justice announced today.  Dr. Orr is a neurologist formerly employed by Baptist Neurology Inc. and Baptist Medical Center-Jacksonville.

“The public relies on doctors to treat their patients with integrity and not waste taxpayer dollars,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division.  “The Justice Department will continue to hold accountable physicians who make false diagnoses or otherwise provide medically unnecessary treatment.”  

This settlement resolves allegations that, from September 2009 to April 2012, Orr knowingly misdiagnosed certain patients with various neurological disorders, such as multiple sclerosis (MS), which caused federal health care programs to be billed for medically unnecessary services and drugs.  The alleged misconduct affected beneficiaries in the Medicare, TRICARE and the Federal Employees Health Benefits programs.  The settlement is based on Orr’s ability to pay.  

“Our office will relentlessly pursue physicians who misdiagnose and harm patients to satisfy their financial greed,” said U.S. Attorney A. Lee Bentley III of the Middle District of Florida.  “We expect physicians to act honestly, with integrity, and in accordance with the approved standards of medical care.  When they do not, we all suffer.”

“Physicians who knowingly misdiagnose serious illnesses and provide unnecessary services in order to bill federal healthcare programs violate the trust their patients and the taxpayers have in the medical profession,” said Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG).  “Our agency will continue to thoroughly investigate health care professionals involved in such duplicity and waste.”  

In 2014, the government settled related allegations against Baptist Health System Inc. – Orr’s former employer and the parent company for Baptist Neurology Inc. and Baptist Medical Center-Jacksonville – for $2.5 million.

“Dr. Orr violated the trust placed in him by his patients,” said Inspector General Patrick E. McFarland of the U.S. Office of Personnel Management (OPM).  “Federal employees deserve health care providers who meet the highest standards of ethical and professional behavior.  Today’s settlement reminds all providers that they must observe those standards, and reflects the commitment of federal law enforcement organizations to pursue improper and illegal conduct that puts the health and wellbeing of their patients at risk.”

The government’s investigation was initiated by a qui tam, or whistleblower, lawsuit filed under the False Claims Act by Verchetta Wells, a former Baptist Neurology Inc. employee.  The act allows private citizens to file suit for false claims on behalf of the government and to share in the government’s recovery.  Wells will receive $26,250 from the settlement with Orr.

This 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 $24 billion through False Claims Act cases, with more than $15.3 billion of that amount recovered in cases involving fraud against federal health care programs.

This settlement is the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the Middle District of Florida, HHS-OIG, the Defense Health Agency’s Program Integrity Office, and OPM’s Office of Inspector General.

The claims resolved by this settlement are allegations only, and there has been no determination of liability.  The lawsuit against Orr was filed in the U.S. District Court for the Middle District of Florida and is captioned United States ex rel. Wells v. Sean Orr, M.D. et al.

Tampa, FL – U.S. District Judge Steven D. Merryday today sentenced Makaeia Demps to two years in federal prison for aggravated identity theft. The Court also ordered her to make restitution to the IRS in the amount of $13,441. Demps pleaded guilty on March 4, 2015.

According to court documents, in December 2011, Demps was arrested by officers from the Clearwater Police Department. In her possession, they found two debit cards in the names of other individuals. An investigation revealed that the debit cards contained funds that had been obtained as the result of fraudulently filed income tax returns. Further investigation linked Demps to the receipt of refunds generated by the filing of additional fraudulent income tax returns.

This case was investigated by Internal Revenue Service Criminal Investigation, with assistance from the Clearwater Police Department. It was prosecuted by Assistant United States Attorney Jay L. Hoffer.

Tampa, FL – U.S. District Judge James D. Whittemore has sentenced Wayne “Bam Bam” Broderick (39, Lakeland) to 20 years in federal prison for possession of cocaine with intent to distribute and possession of firearms during and in relation to a drug trafficking crime. He pleaded guilty on February 24, 2015.

According to court documents, on February 21, 2014, the Lakeland Police Department (LPD) searched Broderick’s apartment in Lakeland and recovered crack cocaine, marijuana, drug paraphernalia consistent with cooking, packaging, and selling crack cocaine, loaded firearms, including a Hi-Point .40 caliber pistol, a Smith & Wesson .357 caliber revolver, a Browning 9mm pistol, approximately $881 in cash, other ammunition, and evidence of stolen identity refund fraud, including a ledger of stolen personal identifying information.

Again, on June 27, 2014, LPD conducted a search of Broderick’s residence after observing him selling narcotics from his doorway, and found him to be in possession of ammunition, marijuana, crack cocaine, drug paraphernalia, and a loaded Springfield Armory M1911 .45 semi-automatic pistol. Broderick had numerous prior convictions for drug trafficking offenses, and at least one crime of violence that qualified him as a career offender.

This case was investigated by the Lakeland Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Secret Service. It was prosecuted by Assistant United States Attorney Mandy Riedel.

Ocala, Florida – United States Attorney A. Lee Bentley, III announces today that Aaron Michael Murray (22, Clermont) has pleaded guilty to transporting child pornography over the Internet.  He faces a minimum mandatory sentence of 5 years, up to 20 years, in federal prison and a potential life term of supervised release. His sentencing hearing has been scheduled for July 23, 2015, in Orlando.

According to court documents, law enforcement officers in Texas executed a search warrant at a residence and discovered child pornography on a computer that was used by a minor child.  Further investigation revealed that the child had received images depicting child pornography from an individual in Florida.  This individual, who was subsequently identified as Murray, had portrayed himself to be a minor during online conversations with the child in Texas.

A search warrant was executed at Murray’s home, and a laptop computer and iPod Touch were analyzed by the FBI.  Online chat messages sent by Murray, posing as a child, were recovered, along with at least 250 images and videos depicting child pornography.  Evidence obtained from his email account showed that Murray had sent at least 246 images of child pornography to other users, including several that depicted young boys engaged in sexually explicit conduct.

This case was investigated by the Florida Department of Law Enforcement, the Lake County Sheriff’s Office, the Federal Bureau of Investigation, the Dallas (Texas) Police Department, and the Carrollton (Texas) Police Department.  It is being prosecuted by Assistant United States Attorney D. Rodney Brown and Assistant United States Attorney Bryon R. Aven.

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

Tampa, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Isarael Sanchez-Pineda, a/k/a “El Cuñado” (47, Frostproof), and Margarito Garcia (47, Frostproof) with conspiracy to distribute 500 grams or more of methamphetamine and possessing with the intent to distribute 50 grams or more of methamphetamine. Each faces a mandatory minimum penalty of 10 years, up to life, in federal prison for the conspiracy charge. The possession charge carries a mandatory minimum sentence of 5 years, up to 40 years’ imprisonment. The indictment also notifies both individuals that the United States intends to forfeit any traceable proceeds of the offense and any property used to facilitate the crimes.

According to court documents, Sanchez-Pineda and Garcia conspired with each other and others to distribute methamphetamine. They allegedly sold more than 50 grams of methamphetamine to a confidential source and, prior to his arrest, Sanchez-Pineda had also agreed to sell an additional pound of methamphetamine.

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 Drug Enforcement Administration Meth Task Force. It will be prosecuted by Assistant United States Attorney Dan Baeza.

Orlando, Florida – U.S. District Judge Anne C. Conway has sentenced Wilson Benjamin to three years and ten months in federal prison for theft of government property. The Court also ordered him to forfeit three real estate properties, which are traceable to proceeds of the offense. In addition, a money judgment was entered in the amount of $4 million, the proceeds of the fraud. Benjamin pleaded guilty on January 7, 2015.

According to court documents, Benjamin owned and operated a financial services company, Benjamin Financial Services, which included a tax preparation business and a check cashing service. Between March 2011 and December 2011, he used his check cashing operation to cash approximately $17.8 million in fraudulent federal tax refund checks. The checks were brought to Benjamin by individuals who had filed fraudulent tax returns in other peoples’ names in order to obtain the refund checks.

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

Tampa, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging David W. Griffin (44, Lutz) with one count of mail fraud, nine counts of bankruptcy fraud, two counts of making a false statement under oath during a bankruptcy proceeding, and one count of aggravated identity theft.  If convicted, he faces up to 20 years in federal prison for the mail fraud charge, and up to five years on each of the bankruptcy fraud and false statement charges. A mandatory term of two years’ imprisonment for the aggravated identity theft charge would run consecutive to the other penalties imposed.

According to the indictment, Griffin operated a foreclosure rescue scheme through his companies, Bay2Bay Area Holding, LLC and Business Development Consultants, LLC.  The purpose of the scheme was to obtain quitclaim or warranty deeds from distressed homeowners facing foreclosure in return for false promises to rescue their homes from foreclosure by negotiating with creditors, renting the property back to the homeowner to obtain rental income, and falsely promising that the homeowner could repurchase the property from Griffin.  To maximize his rental income, it was also a purpose of the scheme to prevent creditors and guarantors, including the Federal National Mortgage Association (“Fannie Mae”) and the Federal Housing Administration, from pursuing lawful foreclosure and eviction actions against homeowners who had defaulted on their mortgages. This was accomplished by filing, or causing to be filed, fraudulent bankruptcies in the names of the homeowners without their knowledge or consent.  These fraudulent bankruptcies generated mailings sent from the bankruptcy court to the victim homeowner via the U.S. Postal Service.

The indictment also alleges that Griffin lied under oath in sworn testimony before the Office of the United States Trustee and the bankruptcy trustee.  Under penalty of perjury, Griffin stated that he had no knowledge of a bankruptcy petition filed in the name of his company, Bay2Bay Area Holding Group, when in fact, he prepared the petition and directed an individual to sign his name and file the petition with the United States Bankruptcy Court for the Middle District of Florida.

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

This case was investigated by the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the Federal Housing Finance Agency - Office of Inspector General, and the U.S. Department of Housing and Urban Development – Office of Inspector General. It is being prosecuted by Special Assistant United States Attorney Chris Poor.

Tampa, Florida – United States Attorney A. Lee Bentley, III announced today that the case involving Mark Myrie, aka “Buju Banton,” has been resolved.  Myrie was previously granted a new trial for a firearms charge after a finding by the District Court that a juror had committed misconduct in regard to that charge during Myrie’s trial.  The United States Court of Appeals for the Eleventh Circuit recently dismissed Myrie’s appeal, sending the matter back to the District Court for the firearms trial.  An agreement between the United States and Myrie, who is currently serving a 10-year prison sentence for his cocaine conspiracy conviction, calls for the United States to dismiss the remaining firearms charge in exchange for Myrie’s waiver of all future appeals. The agreement has been accepted by the District Court, and the firearms charge has been dismissed.  Myrie is presently scheduled to be released from federal prison in January 2019, at which time he will be deported to his native Jamaica.

This case was investigated by the United States Drug Enforcement Administration and prosecuted by Assistant United States Attorney James C. Preston.

Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that Timothy Edward McDermott (61, Palm Coast) has pleaded guilty to receiving child pornography over the Internet. He faces a mandatory minimum sentence of 5, up to 20 years, in federal prison, and a potential life term of supervision. A sentencing hearing has not yet been scheduled.

According to court documents, an FBI agent began an undercover investigation to identify individuals that were trading child pornography over the Internet. The agent determined that McDermott was hosting and trading images of child pornography using a peer-to-peer file sharing program. A subsequent search warrant was executed at McDermott’s residence and his computer was seized. During an interview, McDermott admitted that he had downloaded child pornography from a file sharing website.  Forensic analysis of McDermott’s computer revealed that it contained 310 images and 68 videos depicting child pornography, including babies being sexually exploited by adults.        

This case was investigated by the Federal Bureau of Investigation in Dallas (Texas), Daytona Beach, and Jacksonville, the Flagler County Sheriff’s Office, and the Wheaton (Illinois) Police Department. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.

It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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 – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Roger Eugene Hagood (43, Fort Myers) with 13 counts of bank fraud and two counts of obstruction of justice.  If convicted, he faces a maximum penalty of 30 years in federal prison for each bank fraud count and up to 20 years’ imprisonment for each obstruction of justice count. The indictment also notifies Hagood that the United States is seeking a forfeiture money judgment in the amount of $1,592,121.00, the proceeds of the bank fraud offenses.

According to the indictment, Hagood operated Coral Palm Auto Sales, a used car dealership. Coral Palm Autos Sales received financing through a third-party lender to purchase automobiles. Vehicle titles were provided as security to procure the loans, and loan payments were made using proceeds from the vehicle sales. Once each loan was paid in full, the third-party lender would release the vehicle titles used to secure the loan back to Coral Palm Auto Sales.  

In November and December 2011, Hagood allegedly engaged in a check-kiting scheme by writing 13 checks on his business checking account, made payable to the third-party lender, knowing that the account lacked sufficient funds to cover the checks.

As a result, the third-party lender wrote new loan checks on its account, made payable to Coral Palm Auto Sales, based on Hagood’s worthless checks. According to the indictment, Hagood’s scheme caused federally insured financial institutions to suffer significant financial losses.

The indictment also alleges that on March 29, 2015, Hagood concealed and attempted to destroy documents and records in an effort to obstruct an official proceeding and federal investigation.

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 Federal Bureau of Investigation and the Florida Department of Law Enforcement. It will be prosecuted by Assistant United States Attorney Jeffrey F. Michelland.

Tampa, Florida – United States Attorney A. Lee Bentley, III announces that the World Triathlon Corporation (Ironman) has agreed to forfeit $2,761,910 in lottery proceeds to the United States government.  According to a sworn complaint filed in U.S. District Court in Tampa, Ironman illegally charged athletes for a chance to win the opportunity to compete in the “Ironman World Championship,” held each October in Hawaii.

According to the complaint, Ironman, the company that organizes, promotes, and licenses “Ironman” triathlons around the world, has agreed to forfeit to the United States lottery proceeds that it has earned since October 24, 2012. Ironman charged athletes, who did not otherwise qualify, $50 to enter lotteries for the chance to compete in the Ironman World Championship.  Thousands of athletes purchased multiple entries. Ironman would have been permitted to give away the opportunity to compete in the race, but violated the law when it charged athletes money for the chance to win.

Ironman cooperated fully in the investigation and voluntarily provided all information necessary to allow the parties to promptly resolve the matter.

The case was investigated by Assistant United States Attorneys James A. Muench and Natalie Hirt Adams, with assistance from the Federal Bureau of Investigation.

Orlando, FL – United States Attorney A. Lee Bentley, III announces today that CVS Health has agreed to pay $22 million to resolve allegations that two of its retail stores in the City of Sanford distributed controlled substances based on prescriptions that had not been issued for legitimate medical purposes by a health care provider acting in the usual course of professional practice. CVS acknowledged that its retail pharmacies had a responsibility to dispense only those prescriptions that were issued based on legitimate medical need.  CVS further acknowledged that certain of its retail stores dispensed certain controlled substances in a manner not fully consistent with their compliance obligations under the Controlled Substances Act and the related regulations.

The Controlled Substances Act authorizes the United States to seek civil penalties for a pharmacy’s failure to fulfill its corresponding responsibility to dispense only those prescriptions that have been issued for a legitimate medical purpose by a health care provider acting in the usual course of professional practice.  Knowingly filling an illegitimate prescription subjects a pharmacy to civil penalties under the Controlled Substances Act.

This settlement caps off an investigation that began as part of DEA’s crackdown on pill mills in Florida. Prescription drug addicts were travelling to Florida, known as the nation’s epicenter for the illegal distribution of prescription drugs, for access to physicians who were prescribing pain medication without regard to medical need and to pharmacies that were filling the prescriptions despite red flags that they were illegitimate. The investigation led to DEA’s execution of administrative inspection warrants at two CVS stores in Sanford. As a result, the DEA licenses of both stores were revoked in June 2012.

“Prescription drug abuse continues to be a problem in Florida and throughout the country,” said U.S. Attorney Bentley. “We are using all of the tools at our disposal to combat this problem, including civil penalties for pharmacies that fail to comply with the Controlled Substances Act.”

This settlement illustrates the United States Attorney’s Office efforts to address the wrongdoing that occurred at the height of Florida’s pill mill crisis.

This matter was investigated by the Drug Enforcement Administration Diversion Group in Orlando. It was handled by Assistant U.S. Attorney Katherine M. Ho.

Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. sentenced Aaron Valley yesterday to 30 months in federal prison for aiding in the preparation of false tax returns. As part of his sentence, he was also ordered to pay $265,000 in restitution to the IRS. Valley pleaded guilty on February 19, 2015.

According to his plea agreement, Valley prepared tax returns from his home for clients for tax years 2009 and 2010. As part of his scheme, Valley did not identify himself as the paid preparer on any of the tax returns. He was able to generate large refunds for his clients by preparing tax returns that claimed false filing status, fraudulent W-2 earnings, false Schedule C business expenses, and losses to maximize the earned income tax credit allowed to certain taxpayers. He charged up to $1,000 to prepare the tax returns. To ensure that he could collect his fees, Valley had the refunds deposited into a number of different bank accounts that he controlled or was able to access.

This case was investigated by the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney Shawn P. Napier.

Jacksonville, Florida – United States District Judge Marcia Morales Howard has sentenced Arnold Bernard Conrad, Jr. (52, Jacksonville) to four years and four months in federal prison for possessing child pornography. The Court also ordered him to serve a five-year term of supervision following his release, register as sex offender, forfeit his computer media, and pay $9,000 in restitution to three victims. Conrad pleaded guilty on November 12, 2014.

According to court documents, a detective with the Jacksonville Sheriff’s Office began an undercover investigation to identify individuals that were trading images and videos depicting child pornography over the Internet. The detective determined that a particular computer in Jacksonville was hosting and trading images of child pornography using a peer-to-peer file sharing program. The subscriber information for the computer was traced back to Conrad’s Jacksonville residence, where a search warrant was subsequently executed, and his computer media was seized. During an interview with agents, Conrad admitted to having used two different programs to download child pornography from the Internet, saving it to external hard drives, and that he had been doing so for almost two years. A forensic analysis of Conrad’s computer media revealed that it contained 504 images and 145 videos depicting child pornography, including at least one video depicting a nude toddler being sexually assaulted. 

“Working with strong law enforcement partners, like the Jacksonville Sheriff’s Office, allows our HSI special agents to remove criminals like this from our communities,” said Susan L. McCormick, special agent in charge of HSI Tampa.       

This case was investigated by the Jacksonville Sheriff’s Office and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney D. Rodney Brown.

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

Tampa, Florida – U.S. District Judge James Moody has sentenced John Yates (42, Ruskin) to three years and five months in federal prison for mail fraud and access device fraud.  As part of his sentence, the Court also entered a money judgment in the amount of $286,279.50, which are the proceeds traceable to his criminal conduct. Yates pleaded guilty on January 29, 2015.

According to court documents, in January 2009, Yates was employed by Federal Marine Terminals (FMT) as the manager of the Port Tampa Bay office. As manager, he would oversee the movement of inbound import shipping containers that had been identified for inspection by U.S. Customs and Border Protection. He would then bill customers for FMT’s services in the form of invoices. Yates was responsible for preparing, mailing, and faxing the invoices. Customers were directed to mail payments FMT’s facility in Port Manatee.

In December 2011, while Yates was on vacation, another FMT employee discovered five invoices that looked like FMT invoices, but directed payments to “THW,” in Tampa. A subsequent investigation revealed that the THW payments were deposited into a bank account controlled by Yates. Eighty-nine companies remitted payments to Yates totaling $270,279.50. He was subsequently fired from his position.

After being fired from FMT, Yates was hired as a dispatcher by JRC Transportation, Inc., a large trucking company. There, Yates entered phantom loads into JRC’s system and diverted the related payments back to him. Yates embezzled approximately $30,000 from JRC.

This case was investigated by the U.S. Postal Inspection Service and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Thomas N. Palermo.

Orlando, Florida – U.S. District Judge Roy B. Dalton today sentenced David Jacob William Guite (31, DeLand) to 65 years in federal prison for producing and distributing child pornography. Guite pleaded guilty on February 20, 2015.

According to court documents, an FBI task force officer, acting in an undercover capacity, posted an advertisement on a website frequented by individuals who have a sexual interest in children and incest. Guite responded to the ad and, during the ensuing conversation, sent the agent sexually explicit images of a young boy.

On October 29, 2014, FBI agents executed a federal search warrant at Guite’s residence. During an interview, he admitted to manufacturing, possessing, and distributing sexually explicit images of minor children. A search and subsequent analyses of Guite’s smart phone and computer revealed hundreds of sexually explicit images and videos of young children.  

This case was investigated by the Federal Bureau of Investigation, the DeLand Police Department, and the Volusia County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Embry J. Kidd.

This 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, FL – United States Attorney A. Lee Bentley, III announces that the United States has settled allegations that nine hospitals in Jacksonville had a practice of routinely ordering basic life support ambulances when this type of transport was not medically necessary. The United States has also settled allegations with an ambulance company for its role in submitting millions of dollars of false claims to federal healthcare programs.  The allegations resolved included liability under the False Claims Act (FCA).

After a multiple-year investigation, the United States announces settlements with the following defendants: Baptist Health, who owns and operates four hospitals in Jacksonville (settlement of $2.89 million); Memorial Hospital, Specialty Hospital, Lake City Medical Center, and Orange Park Medical Center (collective settlement of $2.37 million); UF Health Jacksonville (settlement of $1 million); and Century Ambulance Service (settlement of $1.25 million).  In reaching this settlement, the parties resolved allegations that, from January 1, 2009, until April 2014, the hospitals provided Certificates of Medical Necessity that attested to the need for basic life support, non-emergency ambulance transports even when these transports were not medically necessary.  With respect to Century Ambulance, the parties resolved allegations, for the same time period, that Century Ambulance knowingly up-coded claims from Basic to Advanced life support, unnecessarily transported patients, and unnecessarily transported patients to their homes in an “emergent” fashion.

“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.  “Whether the fraud is intentional or the product of deliberate ignorance, we will pursue these cases and recover taxpayer money.”

“Hospital staff that certify the medical need for services when they are in fact not medically necessary fail in their role as gatekeepers of valuable taxpayer-funded health care programs,” said Chief Counsel to the Inspector General Gregory E. Demske of the U.S. Department of Health and Human Services Office of Inspector General.

Today’s settlement involved false claims submitted to Medicare, TRICARE, Medicaid, and the Federal Employees Health Benefits Program managed by the Office of Personnel Management. This case was initiated by the filing of a qui tam lawsuit filed by Shawn Pelletier, a former employee of Century Ambulance. Mr. Pelletier will collect more than $1.2 million in proceeds from the settlements.

“Ambulance companies must ensure that services billed to federal healthcare programs are medically necessary and reasonable,” said Chief Counsel Demske.  “Billing Medicare and Medicaid for transports that amount to taxpayer-funded taxi services will not be tolerated.” 

The United States was unable to reach settlement with one defendant – Liberty Ambulance.  The United States intends to pursue claims against that defendant and plans to file a civil complaint in the near future.  The United States alleges that Liberty knowingly submitted medically unnecessary claims for reimbursement in violation of the federal healthcare program requirements.

"Our office is committed to working with other law enforcement organizations to ensure that both federal employees and taxpayers are protected from unscrupulous organizations that seek to reap profits by defrauding government programs such as the Federal Employees Health Benefits Program," stated Patrick E. McFarland, Inspector General for the U.S. Office of Personnel Management.  "We will continue to work to hold such entities accountable for their wrongdoing."

"The FBI is extremely grateful to have been part of this investigative team,” said FBI Special Agent in Charge Michelle S. Klimt.  “This is a perfect example of when all agencies work together how our collaborative efforts lead to success.”

This 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 Departments of Justice and 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 $19 billion through False Claims Act cases, with more than $13.4 billion of that amount recovered in cases involving fraud against federal health care programs.

"This settlement highlights the 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.  “DCIS aggressively investigates health care providers that defraud the DoD, to preserve American taxpayer dollars intended to care for our Warfighters, their family members, and military retirees."

This case was investigated by Federal Bureau of Investigation, the Office of Personnel Management, the Defense Criminal Investigative Service, the U.S. Department of Health and Human Services Office of Counsel to the Inspector General, the U.S. Department of Health and Human Services Office of Inspector General, Office of Audit Services, the Florida Medicaid Fraud Control Unit, the Defense Health Agency Program Integrity Office, and Assistant United States Attorney Jason Mehta.

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

Tampa, FL – U.S. District Judge Virginia M. Hernandez Covington has sentenced Rosa Moultry Martin to five years in federal prison for mail fraud and aggravated identity theft.  The Court also ordered Martin to forfeit $153,219 and two luxury cars, which are traceable to proceeds of the offense. She pleaded guilty on December 2, 2014.

According to court documents, in May 2012, postal employees at the New Tampa Post Office reported to law enforcement that numerous pieces of mail bearing the label “Turbo Tax,” and addressed to at least 10 different individuals, were scheduled to be delivered to Martin’s residence in Tampa. On June 7, 2012, investigators made a controlled delivery of two of these envelopes to Martin’s curbside mailbox.  The envelopes, which contained prepaid debit cards, were addressed to J.H. and D.H. Neither of these individuals resided at the address.

Investigators learned that the prepaid debit cards issued to J.H. and D.H. were each loaded with a fraudulently obtained tax refund in the amount of $9,919. Further investigation revealed that a debit card was opened in the name of D.H. using his actual date of birth and social security number.  This debit card was used at an ATM in Zephyrhills on June 7, 2012, to make three simultaneous cash withdrawals totaling $1,000.  These successive transactions were captured on the ATM’s video and show Martin making the withdrawals. She also made additional withdrawals using another reloadable debit card containing a fraudulently obtained tax refund.

On June 26, 2012, a search warrant was executed at Martin’s home. Evidence seized during the search included a laptop and desktop computer, more than 50 prepaid debit cards issued in other names, print-outs from a genealogy website containing personally identifiable information (PII), and numerous ledgers containing PII, account information, passwords, and email addresses.  The search also lead to the recovery of receipts for money orders that had been purchased with fraudulently obtained tax refunds and used by Martin to pay for her rent and other items. A subsequent search of Martin, her husband, and her vehicle revealed several items, including an iPad, a tablet, cell phones, and approximately $25,000 worth of jewelry. Forensic examinations of the computers and tablets revealed Internet search history for tax-related websites and the PII of at least 20 individuals.

In total, investigators have determined that Martin possessed and used the PII of approximately 76 victims, without their permission, to file fraudulent tax returns and/or receive refunds resulting from the filing of fraudulent tax returns.  Investigators determined that Martin, working alone and with others, made false claims for refunds totaling approximately $641,754 and received approximately $153,219 to which she was not entitled.

This case was investigated by the United States Postal Inspection Service, the Tampa Police Department, and the Internal Revenue Service Criminal Investigation. It was prosecuted by Assistant United States Attorney Mandy Riedel.

Tampa, FL – U.S. District Judge Steven D. Merryday has sentenced Ricardo Romero-Mesa (44, Tampa) to seven years in federal prison for conspiracy to commit credit card fraud and aggravated identity theft.  The Court also ordered him to forfeit $13,423.79, which are the proceeds traceable to his criminal conduct. He pleaded guilty on January 15, 2015.

According to court documents, in early 2014, investigators identified Romero-Mesa and Lazaro Hernandez-Cabrales as co-leaders of a credit card fraud ring.  Together, and with others, they used numerous stolen credit and debit card account numbers to generate counterfeit credit cards. They used the credit cards to purchase hundreds of reloadable Visa gift cards.  The gift cards were then used to purchase items at home improvement stores, which were later returned in exchange for cash.

Investigators determined that the conspirators initially purchased the stolen account numbers, many from Navy Federal Credit Union and Armed Forces Bank, from an online website based in Eastern Europe.  Later, Hernandez-Cabrales stole account numbers by obtaining keys to gas pumps and installing skimmers.

On February 17, 2014, during a search of the residence shared by Romero-Mesa and Hernandez-Cabrales, investigators seized more than 200 gift cards, credit cards, and hotel room keys, some of which had been re-encoded with other credit and debit card account numbers. Agents also recovered computers, receipts from merchandise returns, high-end purses and clothing, and receipts for the purchase of wire transfers from the United States to Ukraine. Further investigation revealed that Hernandez-Cabrales had wired more than $23,500 to recipients in Ukraine and Russia to purchase at least 800 stolen account numbers from a website that offers them for sale.

In total, investigators recovered more than 1,000 stolen credit card numbers issued by at least 15 different financial institutions.

Lazaro Hernandez-Cabrales previously pleaded guilty for his role in this case. On February 10, 2015, he was sentenced to five years and ten months in federal prison.

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

Orlando, Florida – Chief U.S. District Judge Anne C. Conway has sentenced Noel Alvarado Mathew (39, Puerto Rico) to four years and nine months in federal prison for being a felon in possession of a firearm.  He pleaded guilty on January 28, 2015.

According to court documents, law enforcement officers obtained a cell phone video depicting Alvarado at a local gun range repeatedly firing a Glock pistol.  At the time of the incident, Alvarado had previous felony convictions for robbery, gun, and drug violations.  As a result, 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 Orlando Police Department.  It is being prosecuted by Assistant United States Attorney Embry J. Kidd.

This is another case prosecuted as 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 Regina Lombardo, Special Agent in Charge, ATF, are coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline Strategy on reducing violent crime in communities.

Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Muhammad Naji (34, Tampa) has pleaded guilty to conspiracy to commit money laundering.  He faces a maximum penalty of 20 years in federal prison.  A sentencing date has not yet been set.

According to the plea agreement, beginning in January 2014, Naji conspired with others to launder money that had been obtained as the result of fraud. In one of the fraudulent schemes, the conspirators sent “phishing” emails to law firms around the country soliciting legal representation in a fictitious contract dispute.  After convincing a firm to tentatively agree to the representation, the conspirators would email fictitious documentation demonstrating their claim. They would also request that the law firm issue a demand letter for the full amount owed on the contract. The conspirators would then mail a forged certified bank check to the law firm as payment to resolve the dispute. The “client” would contact the firm and instruct them to wire the funds, minus the retainer fee, to a specific bank account. If the conspirators were successful in their scam, the law firm would authorize the wiring of the funds before the check cleared.  

During the execution of the wire fraud schemes, Naji opened multiple bank accounts, or had others open them for him. Once the fraud proceeds were successfully wired into his accounts, Naji would quickly wire the funds to other bank accounts controlled by conspirators, many of which were outside of the United States, including China, Hong Kong, and Canada.  From January 2014, through and including the present, Naji opened more than 35 fraudulent accounts with an estimated loss exposure of more than $2.5 million.

This case was investigated by the FBI. It is being prosecuted by Assistant United States Attorney Matthew Jackson.

Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that David Eric Crews (54, Sacramento, CA) has pleaded guilty to a federal charge of failing to register as sex offender after traveling to Florida from California. He faces up to 10 years in federal prison. A sentencing date has not yet been set. Crews has been in custody since his arrest on March 30, 2015.   

According to court documents, in March 1993, Crews was convicted of rape and sexual battery in Sacramento. Subsequent to his conviction, he traveled from California to Florida in December 2014. He failed to update his registration in California, and he did not register as a sex offender in Florida, as required by the Sex Offender Registration and Notification Act.

In March 2015, Deputy U.S. Marshals went to a campground in Bunnell, Florida and observed Crews setting up musical equipment on a stage at an outdoor venue.  He and other members of his band had been playing at the park nightly. Crews had been living in a motor home at the campground since December 22, 2014.

The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act provides for the use of federal law enforcement resources, including the United States Marshals Service, to assist state and local authorities in locating and apprehending non-compliant sex offenders. This case was investigated by the United States Marshals Service and the Florida Department of Law Enforcement.  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 – United States Attorney A. Lee Bentley, III announced today that Stephen Paul Cotton (43, Palm Coast) has been indicted for failing to register as a sex offender after traveling from Florida to North Carolina. If convicted, he faces up to 10 years in federal prison. Cotton was arrested in Suwanee, Georgia on April 11, 2015.     

According to the indictment, on or about January 6, 1999, Cotton was convicted of committing a lewd and lascivious act on a child in Manatee County, Florida.  Subsequent to his conviction, and between July 2, 2012 and December 19, 2014, he traveled from Florida to North Carolina and failed to register as a sex offender, as required by the Sex Offender Registration and Notification Act.

The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act provides for the use of federal law enforcement resources, including the United States Marshals Service, to assist state and local authorities in locating and apprehending non-compliant sex offenders. This case was investigated by the United States Marshals Service, the Suwanee (Georgia) Police Department, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.

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.

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

Tampa, FL – U.S. District Judge Susan C. Bucklew today sentenced David Wendel Thompson (49, Seffner) to 15 years in federal prison for online enticement of a minor.  The Court also sentenced him to 10 years of supervision following his release following his release from prison. Thompson pleaded guilty on October 20, 2014.

According to court documents, between December 14, 2013, and March 14, 2014, Thompson used Facebook to attempt to persuade two minor females in Belize, ages 13 and 15, to engage in sexual intercourse with him. He did so using his own Facebook account and a fake Facebook account that he had set up to appear as though it belonged to a female teenager in Belize.

On March 14, 2014, Thompson flew from Tampa to Belize, with a layover in Miami, to meet the minors with the intent of engaging in sexual activity. He was denied entry into Belize and returned to Miami, where he was arrested. Thompson admitted to communicating with the girls on Facebook and to knowing that they were underage. Prior to his arrest, Thompson was a social studies teacher at Centennial Middle School in Dade City.

“Crimes against children are always devastating, but it is particularly egregious when a person of trust, like this teacher, conspires to commit such atrocities,” said Susan L. McCormick, special agent in charge of HSI Tampa. “This case is the result of hard work by HSI special agents in Tampa, Miami and the Cyber Crimes Center, as well as our partners at the U.S. Department of State.”

“The Diplomatic Security Service maintains an excellent relationship with local law enforcement personnel. This close cooperation between our agents and local law enforcement was key to David Wendel Thompson’s capture,” said Acting Special Agent in Charge David Brown of the DSS Miami Field Office. “It is this type of worldwide law enforcement coordination that gives Diplomatic Security an unparalleled ability to locate, pursue, and apprehend fugitives.” 

This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, in conjunction with the U.S. Department of State. It was prosecuted by Assistant United States Attorney Jennifer L. Peresie.

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 (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.   

Tampa, FL – U.S. District Judge Steven D. Merryday has sentenced Basem Abualteen (48, Lakeland) to 18 months in federal prison for conspiracy to defraud the United States.  The Court also ordered him to pay $2,110,778 in restitution. Abualteen pleaded guilty on December 23, 2014.

According to court documents, from January 2013 to August 27, 2014, Abualteen conspired with Hamzeh Abu-Aish and Shoeneikia Abu-Aish to defraud the U.S. Department of Agriculture's food stamp program, now known as the Supplemental Nutrition Assistance  Program (SNAP). Hamzeh Abu-Aish was the owner of Finest Meat Market d/b/a Finest Super Market located in Lakeland. Abualteen and Shoeneikia Abu-Aish worked as Finest store clerks beginning in January 2013. Hamzeh Abu-Aish instructed the clerks to purchase SNAP benefits from SNAP recipients in exchange for cash and a commission, a practice called “cash back” or “discounting.” For example, a SNAP recipient would approach a store clerk and ask for $100 in cash, the store clerk would then charge $200 to the SNAP recipient’s Electronic Benefit Transfer (EBT) card, and then give the SNAP recipient $100 in cash. This practice is strictly prohibited by SNAP regulations. 

During the course of the scheme, SNAP EBT redemptions at Finest far exceeded the national and state averages of similarly sized stores. In July 2013, the average SNAP benefit redemptions for a similarly sized store was $7,059 in Florida, and $6,490 nationally. Finest had $160,821 in SNAP benefit redemptions for that same time period. During Abualteen’s participation in the scheme, Finest submitted and received approximately $2,110,778 in fraudulent SNAP EBT redemptions.

Hamzeh Abu-Aish and Shoeneikia Abu-Aish previously pleaded guilty for their roles in this scheme. Shoeneikia Abu-Aish has been sentenced to three years’ probation. The sentencing hearing for Hamzeh Abu-Aish is scheduled for July 17, 2015.     

This case was investigated by the Federal Bureau of Investigation and the U.S. Department of Agriculture’s Office of the Inspector General. It was prosecuted by Assistant United States Attorneys Matthew Jackson and Mark Bini.

Tampa, FL – U.S. District Judge Susan C. Bucklew today sentenced Stephen Mayer (51, Miami) to 11 years and 3 months in federal prison for his role in a real estate flipping and equity skimming conspiracy. The Court also ordered him to pay more than $3.1 million in restitution to the affected lenders, and more than $4 million in forfeiture, which were proceeds traceable to the scheme.

On January 29, 2015, a federal jury found Mayer of guilty of conspiracy to commit wire fraud and nine counts of wire fraud affecting a financial institution. Mayer was originally indicted on May 13, 2014.

According to evidence presented during the nine-day trial, Mayer used a variety of shell companies that he controlled to purchase distressed properties. He then flipped the properties the same day or within days to “credit partners” for an increased price and kept the proceeds. These “credit partners” were recruited by Mayer because they had good credit and were willing to sign documents. The partners never intended to live in the properties or make any mortgage payments. In exchange for helping him get the mortgages, Mayer would pay the down payment and the mortgage, and pay the “credit partners” a commission from his proceeds.

Mayer also facilitated the securing of mortgages, many from FDIC-insured lenders, based on false information about the borrowers’ income, employment, and assets. Mayer instructed the “credit partners” to deed the properties back to him and/or companies under his control so that he could flip them again to other “credit partners” at increased prices, thereby skimming the equity.  Mayer failed to make mortgage payments as promised, and each of the properties ultimately went into foreclosure. He used the proceeds from his real estate flipping scheme to fund a lavish personal lifestyle. Agents identified more than 20 homes used by Mayer in this flipping conspiracy that took place between 2003 and 2007.  The estimated loss to the lenders is more than $3.1 million.

This case was investigated by the Florida Department of Law Enforcement and the United States Secret Service. It was prosecuted by Assistant United States Attorneys Mandy Riedel and Kelley Howard-Allen.

Tampa, Florida – U.S. District Judge Virginia Hernandez Covington has sentenced seven individuals for their roles in a conspiracy to commit stolen identity refund fraud in the Tampa Bay area. Mikeil Royal was sentenced to five years and five months, Brian Gilchrist was sentenced to three years and one month, Donterrio Troup was sentenced to two years and eleven months, Kenneth Royal was sentenced to two years and nine months, Terrence Johnson was sentenced to two years, Shadae Cotton was sentenced to one year and nine months, and Tanisha Johnson was sentenced to one year and eight months. As part of each defendant’s sentence, the Court also entered a money judgment in the amount of $488,657.71, representing the amount of the proceeds of the charged criminal conduct. Each individual previously pleaded guilty for their roles in the conspiracy.

According to court documents, between 2011 and 2014, the above-named individuals filed false and fraudulent income tax returns in the names of deceased individuals whom they located on the Internet. In these returns, the conspirators represented that they were entitled to the refunds and requested that the IRS direct refunds in varying amounts to accounts that they had established, in their own respective names, at two local financial institutions.

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

Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Mitchell Holland (52, San Diego, CA), Warren Rosenfeld (60, Plano, TX), and Rondell Scott Hedrick (50, Lexington, NC) guilty of multiple counts of wire fraud.  Holland was convicted on nine counts, Rosenfeld was convicted on four counts, and Hedrick was convicted on three counts. Each faces up to 20 years in prison on each count.

According to evidence presented during the 12-day trial, beginning in mid-2009, when bank lending was very limited due to the economy, Rosenfeld, Holland, Hedrick, and others promoted themselves as specialists in securing and using alternative financing. During that time, individuals throughout the country contacted Holland concerning his ability to arrange for alternative capital financing through his company, Vital Funds, Inc.  Holland claimed that he could arrange for a New Zealand Finance Company (Unistate Investments Savings and Loan Limited) to fund a leased Certificate of Deposit at a branch of Chase Manhattan Bank in the British West Indies. Such a bank did not exist.

The individuals seeking financing were then referred to Hendrick, who would offer to assist in liquidating the leased Certificate of Deposit. In one instance, Hedrick offered a victim in Jacksonville the opportunity to purchase a banking passport that would permit oversees banking with fewer restrictions. Hedrick had no such ability to obtain the banking passport, and simply stole the individual’s $29,000.

Rosenfeld, via his corporation, Aster Capital, Inc., represented himself as an individual who reviewed contract documents for Holland and Vital Funds in a quasi-attorney role. Rosenfeld later removed his company’s label from various contract documents and Holland and Vital Funds became the main point of contact for the clients seeking alternative financing (Leased Certificates of Deposit, Standby Letters of Credit, Proof of Funds Accounts, and Verifications of Deposit).  Rosenfeld prohibited the brokers from allowing the clients to contact him.

Rosenfeld (Aster Capital), Holland (Vital Funds), and Unistate representatives split the initial account arrangement fees provided to an escrow company by the clients.  These fees ranged from $300,000 to $625,500.  None of the deals ultimately closed, and the clients failed to receive funding or real access to any funded account.

During the scheme, clients lost approximately $9.2 million. Holland and Rosenfeld profited in excess of $1.2 million.  The remainder of the money was spread among Unistate representatives, and other brokers/participants.

Unistate Director Juan Hernandez has been charged for his role in this case, but remains a fugitive. Unistate representative Christopher Jaijairam (55, Yonkers, NY), and Glen Elliott Smith (40, New Orleans, LA) previously pleaded guilty for their roles in this scheme. Sentencing hearings for the defendants in this case have not yet been set.

The case was investigated by the Federal Bureau of Investigation.  It is being prosecuted by Assistant United States Attorney A. Tysen Duva.

Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury today found Marcus Lowe guilty of conspiracy to commit wire fraud, theft of government funds, and aggravated identity theft; wire fraud; theft of government funds; and aggravated identity theft. He faces a maximum penalty of 5 years for the conspiracy count, 20 years for the wire fraud count, 10 years on each of the two theft counts, to be followed by a mandatory consecutive term of at least two years in federal prison for the aggravated identity theft counts. His sentencing hearing has not yet been scheduled. Lowe was indicted on December 4, 2014.

According to evidence presented at trial, Lowe worked as a Manatee County Probation Officer at the Manatee County Jail in 2012. As a result of that job, he had access to the personal identifying information of numerous inmates. He provided that information to other co-conspirators who, in turn, used those identities to file false and fraudulent income tax returns with the IRS. The attempted loss to the government from the fraudulent tax returns charged in the indictment exceeded $74,000.

This case was investigated by Internal Revenue Service - Criminal Investigation. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.

Tampa, FL – U.S. District Judge Elizabeth A. Kovachevich today sentenced Chanin Terrell Richardson (29, Dade City) to 10 years in federal prison for possessing with the intent to distribute more than 28 grams of cocaine base and possessing a firearm in furtherance of a drug trafficking crime.  He pleaded guilty on August 7, 2014.

According to court documents, law enforcement officers executed a search warrant at Richardson’s Dade City residence after undercover officers had repeatedly purchased cocaine base from the home.  Agents found Richardson in possession of more than 40 grams of cocaine base, powder cocaine, prescription pills, heroin, marijuana, a semi-automatic pistol, a short-barreled shotgun, and multiple rounds of ammunition. Richardson has previously been convicted of several felony offenses and is a documented member of the “Dade City Boys” criminal organization.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation, and the Pasco Sheriff’s Office. It was prosecuted by Assistant United States Attorney Josephine W. Thomas.

Tampa, Florida– U.S. District Judge Steven D. Merryday has sentenced Altwan L. Holloway (36, St. Petersburg) to 17 years and six months in federal prison for conspiring with others to possess with intent to distribute five kilograms or more of cocaine. He pleaded guilty on December 9, 2014.      

According to court documents, Holloway and others were involved in a years-long drug conspiracy that was responsible for the distribution of at least 149 kilograms of cocaine in St. Petersburg, Florida. Additionally, a search of a St. Petersburg residence used as a “stash house” by this drug trafficking organization for narcotics and money revealed digital scales, mixing agents, containers with cocaine residue, and a “kilo” press. Agents also located 850 grams of cocaine and $71,930 inside the stash house.

This case was investigated by the U.S. Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Shauna S. Hale.

This case was prosecuted as part of the Organized Crime Drug Enforcement Task Force (OCDETF) “Operation High Cargo.” The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation's drug supply.

United States Attorney A. Lee Bentley, III, along with Acting Special Agent in Charge A.D. Wright, DEA Miami Field Division, and United States Marshal William Berger today announce the distribution of more than $2.4 million of criminally forfeited funds to 15 law enforcement agencies for their participation in the successful federal prosecution of Zachary Timothy Rose. On July 16, 2014, Rose was sentenced to 15 years and 8 months in federal prison for conspiracy to distribute and dispense oxycodone and alprazolam, and conspiracy to commit money laundering. As part of the sentence, the Court ordered the forfeiture of $2,461,801, which was deemed the proceeds of the offenses.

Under federal forfeiture laws, criminals can be stripped of assets that were used illegally or purchased with proceeds of illegal activity.  The Asset Forfeiture Program takes the profit out of crime and the Equitable Sharing Program provides crime‑fighting resources to state and local law enforcement. Asset forfeiture and equitable sharing are valuable law enforcement tools that send a clear message that crime does not pay.

According to court documents, Rose opened and operated illegitimate pain clinics in Jacksonville and elsewhere. At these clinics, purported patients were prescribed high dosages of pain medications without appropriate medical examinations and assessments. The clinics often saw in excess of 100 patients per day, and many of the individuals were traveling from Ohio, Kentucky, and Tennessee to obtain pain pills.

Pursuant to the Department of Justice Equitable Sharing Program, the funds have been distributed to the Jacksonville Sheriff’s Office, the Florida Department of Financial Services – Division of Insurance Fraud, the Dooly County (Georgia) Sheriff’s Office, the Fernandina Beach Police Department, the Flagler County Sheriff’s Office, the Florida Department of Business and Professional Regulation, the Jacksonville Beach Police Department, the Putnam County Sheriff’s Office, the St. Johns County Sheriff’s Office, the Baker County Sheriff’s Office, the Columbia County Sheriff’s Office, the Green Cove Springs Police Department, the Florida National Guard Counterdrug Program, the Sunrise Police Department, and the Indian River County Sheriff’s Office. These agencies provided critical assistance during the investigation, including identifying, locating, and interviewing witnesses, executing federal search warrants, and processing evidence.

The Drug Enforcement Administration and the Federal Bureau of Investigation handled the investigation of this case, along with the state and local law enforcement agencies. Assistant United States Attorney Jay Taylor prosecuted the case, and the forfeitures were handled by Assistant United States Bonnie Glober. The U.S. Marshals Service was responsible for depositing and distributing the forfeited funds.

Orlando, Florida – United States District Judge Roy B. Dalton sentenced William Daniel Thompson (67) today to 16 years in federal prison for attempting to persuade, induce, and entice two minors to engage in illicit sexual conduct.  He pleaded guilty on December 24, 2014.

According to court documents, on September 10, 2014, an FBI agent responded to an advertisement in the “all personals” section of Craigslist, which made reference to a single white male seeking a “family dynamic.”  Thompson communicated online with the undercover agent, who was posing as the father of a 10-year-old girl and a 13-year-old boy.  During the online conversations, Thompson told the agent that he wanted to engage in sexual conduct with the minors.

On September 11, 2014, Thompson traveled from his home in Manatee County to Altamonte Springs, where he intended to meet the father for the purpose of engaging in illicit sexual conduct.  He was subsequently arrested.  During an interview with law enforcement, Thompson admitted that he had traveled for the purpose of meeting the father of two children with whom he had been e-mailing since September 10, 2014, and to explore the possibility of having sex with a 10-year-old girl.

This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys 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.

Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan has sentenced Henry Noble (37, Atlantic Beach) to 16 years and three months in federal prison for being a felon in possession of a firearm. He pleaded guilty on December 5, 2014.

According to court documents, Noble was seen outside a young girl’s bedroom window at midnight on July 27, 2014. A neighbor saw him and called 911. Officers from the Atlantic Beach Police Department responded, they observed Noble at the bedroom window, and then ordered him to ground. Noble fled from the officers, but was apprehended after a short foot chase. The officers found a loaded .45 caliber pistol in his pocket. The firearm had been previously stolen during a residential burglary.

Noble was previously convicted of several felonies, including robbery, aggravated battery, and drug charges, and therefore is prohibited from possessing a firearm or ammunition under federal law. As such, he qualifies for an enhanced penalty under the Armed Career Criminal statute.

This case was investigated by the Atlantic Beach Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorneys Jason Mehta and Frank Talbot.

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

Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Michael Cornell (53, St. Petersburg) today pleaded guilty to theft of government funds. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.

According to court documents, Cornell’s mother was the recipient of Social Security benefits. She died on February 2, 2010, and all of her benefits ended upon her death. The Social Security Administration did not receive notice of her death and, until October 2013, monthly benefit checks continued to be sent to a post office box that Cornell shared with his mother. Cornell forged his mother’s signature and deposited the checks into a bank account that they shared. He then transferred the funds to a personal account for his use. The total amount paid out after his mother’s death was $44,448. Of that, the SSA was able to recover $12,440 from Cornell’s bank accounts.

This case was investigated by the Social Security Administration – Office of Inspector General. It is being prosecuted by Assistant United States Attorney Adam M. Saltzman.

U.S. ATTORNEY TO PRESENT EQUITABLE SHARING FUNDS

TO LAW ENFORCEMENT PARTNERS

 

WHO:        A. Lee Bentley, III

United States Attorney

Middle District of Florida

 

Chad Cook

Assistant Special Agent in Charge

Drug Enforcement Administration

Jacksonville Division

 

William (Bill) Berger

United States Marshal

Middle District of Florida

                                                   

WHAT:      Press Conference

Forfeited funds to be distributed to multiple state and local law enforcement agencies

 

WHEN:      WEDNESDAY, APRIL 29, 2015

11:30 A.M. EST (start time has been pushed back 30 mins from 11 to 11:30).

 

WHERE:    United States Federal Courthouse

(Jury Assembly Room)

300 N. Hogan Street

Jacksonville, FL 32202

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. EST.

Orlando, Florida – Senior U.S. District Judge John Antoon, II has sentenced John Anderson Butler, Jr. (55, Daytona Beach) and Victor A. Rhynes (55, Rockledge) for conspiracy to possess with the intent to distribute and to distribute cocaine and crack cocaine. Butler was sentenced to 15 years in federal prison and Rhynes was sentenced to 13 years and 4 months’ imprisonment. Butler pleaded guilty on December 30, 2014, and Rhynes pleaded guilty on January 28, 2015.

According to court documents, Butler and Rhynes were previously convicted in federal court for drug trafficking offenses. In 2011, after being released from prison, Butler began obtaining drugs for Rhynes, who then distributed them in a secluded compound in Brevard County. Butler would obtain powder cocaine, and then Rhynes would convert it into crack cocaine. Butler used chase cars to move the drugs throughout Florida, and Rhynes used physical and electronic security to protect his operations. In a two-year period, Butler and Rhynes obtained and distributed more than 10 kilograms of crack cocaine.

This case was investigated by the Drug Enforcement Administration and the Brevard County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Vincent A. Citro.

Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Ronnie Travis Hall, III (27, Charlotte, NC) today pleaded guilty to transporting a minor with the intent that she engages in prostitution.  Hall faces a minimum mandatory term of ten years, up to life, in federal prison. His sentencing hearing is scheduled for July 20, 2015.

According to court documents, on April 9, 2014, Hall, with the aid of another individual, transported minor victim “J.T.” from Georgia to Florida with the intent that she engage in prostitution.  For approximately two months, J.T. worked as a prostitute on the streets and by meeting customers who responded to an Internet ad advertising her sexual services.  Hall kept all of the profits.

This case was investigated by the Federal Bureau of Investigation and the Metropolitan Bureau of Investigation.  It is being prosecuted by Assistant United States Attorney Joseph M. Schuster.

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.

Fort Myers, Florida – U.S. District Judge John A. Steele has sentenced David E. Judd (35, Ft. Myers) to 72 months in federal prison for distributing and possessing child pornography. The Court also ordered him to serve a life term of supervision as a sexual offender. Judd pleaded guilty on January 26, 2015.

According to court documents, Judd utilized a peer-to-peer Internet network to distribute child pornography images and videos. During an undercover operation, law enforcement agents downloaded child pornography images and videos from Judd’s Internet Protocol address. After a search warrant was executed at his residence, Judd was found to be in possession of over 8,800 child pornography images.

This case was investigated by the Lee County Sherriff’s Office and the Federal Bureau of Investigation’s Child Exploitation Unit. It was prosecuted by Assistant United States Attorney Tama Koss Caldarone.

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

Orlando, FL – U.S. District Judge Roy B. Dalton today sentenced Olivia Bolles a/k/a “MDpro” (32, Newark, Delaware) to five years in federal prison for the illegal distribution of controlled substances.  She pleaded guilty on January 20, 2015.

According to court documents, between March 2013 and October 2, 2013, Bolles, a licensed medical doctor in Delaware, operated as the vendor “MDPro” on an underground website known as Silk Road.  Silk Road operated as an online criminal marketplace designed to enable its users to buy and sell drugs and other illegal goods and services anonymously, outside the reach of law enforcement.  The website provided a sales platform for vendors and buyers to conduct transactions online.

Between June 13, 2013, and August 20, 2013, DEA purchased oxycodone, heroin, diazepam, Xanax, Adderall, hash oil, tetrahydrocannabinol (THC), and Vyvanse from “MDPro” on the Silk Road website.  The investigation determined that Bolles had shipped the controlled substances, which were purchased from “MDPro,” from Delaware to Florida.  The investigation also found that Bolles had used her personal bank accounts to purchase items that were used to further her illegal drug dealing business, including packaging and laboratory materials.  More than 600 sales of controlled substances were mailed by Bolles and her girlfriend, Alexandra Gold, to individuals in more than 17 different countries. Gold was previously sentenced to 30 months in prison for her role in this case.

This case was investigated by the Drug Enforcement Administration (Orlando and Wilmington, Delaware), with assistance from the United States Postal Inspection Service.  It was prosecuted by Assistant United States Attorney David Haas.

Orlando, Florida - Senior United States District Judge John Antoon, II has sentenced Stephen B. Deluca (58, Deland) to six years and six months in federal prison for conspiracy to commit wire fraud and bank fraud. The Court also sentenced him to serve three years of supervision after his release, and ordered him to pay $18,701,804 in restitution. A federal jury found Deluca guilty in March 2013.

Evidence presented during the ten-day trial established that Deluca, the president and sole shareholder of Delco Oil, Inc., had engaged in a scheme to defraud several FDIC-insured banks and a private finance company (CapitalSource Financial Services) by falsely inflating the amount and value of Delco=s inventory and accounts receivable, which were then used to secure revolving lines of credit. The scheme resulted in more than $18 million in losses to CapitalSource.

This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Mac D. Heavener, III.

Jacksonville, Florida – United States District Judge Marcia Morales Howard has sentenced Rodney Joel Neal (53, Montezuma, Georgia) to two years in federal prison for failing to register as sex offender after traveling to Jacksonville from Georgia.  He was also sentenced to a seven-year term of supervision and ordered to register as a sex offender following his release. Neal has been in custody since his arrest in Jacksonville, on October 10, 2014.   

According to court documents, on or about May 24, 1988, Neal was found guilty and sentenced for committing two criminal offenses, aggravated child molestation and child molestation, in Macon County, Georgia. Subsequent to his conviction and release from prison, Neal traveled from Georgia to Jacksonville in July 2014 and failed to register in Florida as a sex offender as required by the Sex Offender Registration and Notification Act.  

The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act provides for the use of federal law enforcement resources, including the United States Marshals Service, to assist state and local authorities in locating and apprehending non-compliant sex offenders.  This case was investigated by the Jacksonville Sheriff’s Office, the United States Marshals Service, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney D. Rodney Brown.

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

Orlando, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Jaime Tovar-Montoya, a/k/a Jimmy Diaz Tovar (57, Colombia, South America), guilty of making false claims of U.S. citizenship and aggravated identity theft. He faces a maximum penalty of 20 years in federal prison. A sentencing hearing is scheduled for July 21, 2015. Tovar-Montoya was indicted on April 15, 2015.

According to testimony and evidence presented at trial, Tovar-Montoya, a citizen of Colombia, applied for and received a Florida Identification Card in 2010, claiming that he was a U.S. citizen and using the name and birth certificate of a resident of Puerto Rico. Later that year, he used the identification card as proof of identity to apply for a U.S. passport, again claiming to be a citizen of the United States, and using the same name, birth date, and Social Security Number of the Puerto Rico resident.

Under federal law, a person who uses a means of identification of another person without lawful authority in order to commit another felony offense is guilty of aggravated identity theft, which carries a mandatory two-year sentence, in addition to any other sentence received. Having been convicted and adjudicated guilty of two counts of aggravated identity theft, Tovar-Montoya currently faces a mandatory minimum sentence of four years’ imprisonment, in addition to any other sentence he may receive.

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

Orlando, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Michael Doherty (51, Texas) with attempted sexual enticement of a minor. If convicted, he faces a mandatory minimum term of 10 years, up to life, in federal prison. The indictment also notifies Doherty that the United States intends to forfeit the electronic media that is alleged to have been used in the commission of the offense.

According to court documents, on March 10, 2015, an FBI agent acting in an undercover capacity (“UC”) responded to an Internet advertisement that Doherty had posted about incestuous sexual encounters. The UC responded to the ad posing as the father of a 10-year-old daughter that he was sexually abusing. Over the next several days, Doherty and the UC discussed the UC’s abuse of his “daughter.” Doherty told the UC that he wanted to watch the UC have sex with the child, and also requested naked photos of the child.

Doherty later told the UC that he traveled to Florida on business and wanted to “watch” the UC and the child. Over the course of the next several days, Doherty and the UC continued to discuss Doherty’s plans to visit. Doherty sent the UC numerous explicit pictures of himself, and he told the UC that when they met, he wanted to have sex with the 10-year-old girl.

On April 8, 2015, Doherty traveled from Miami to Lake Mary, and rented a hotel room. On his way, he stopped and bought a present for the child. When Doherty left his hotel and approached the “father” with whom he had been communicating, he was arrested.     

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

This case was investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Joseph M. Schuster.

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

Ocala, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury today found Jerry Wana Taylor (52, Coleman) guilty of possessing a firearm as a convicted felon. He faces a minimum mandatory penalty of 15 years, up to life, in federal prison. A sentencing hearing has not yet been set. Taylor was indicted on January 7, 2015.

According to evidence presented at trial, on September 29, 2013, deputies from the Sumter County Sheriff’s Office conducted a traffic stop on a vehicle in which Taylor was a passenger. A subsequent search of the vehicle revealed a loaded .22 caliber handgun inside the fuse box, near the passenger-side floor board. Results of forensic analyses revealed that DNA on the handgun matched Taylor’s DNA.

Taylor was previously convicted of numerous felonies including attempted murder, armed robbery, kidnapping, and burglary and therefore is prohibited from possessing a firearm or ammunition under federal law. As such, he qualifies for an enhanced penalty under the Armed Career Criminal statute.

This case was investigated by the Federal Bureau of Investigation’s Safe Streets Task Force, the Sumter County Sheriff’s Office, the Florida Department of Law Enforcement, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney Bryon R. Aven.

Orlando, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Ronald Grocoff (62, Orlando) with the attempted sexual enticement of a minor. If convicted, he faces a minimum mandatory term of 10 years, up to life, in federal prison.   

According to court documents, on March 27, 2015, Grocoff responded to an online advertisement posted by an undercover FBI Task Force Officer (“UC”). Grocoff and the UC soon began discussing Grocoff’s interest in paying the UC to have sex with the UC’s 12-year-old “daughter.” On April 6, 2015, Grocoff made arrangements to meet the UC and his “daughter.” A few days later, he agreed to pay the UC $20 and an unspecified amount of marijuana to have intercourse and oral sex with the “child.” That afternoon, Grocoff traveled to Seminole County to meet the UC. When he arrived at the prearranged meeting place, he approached the “father” and was arrested. In addition to a small amount of suspected marijuana, agents also found condoms and lubricant in Grocoff’s possession.

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

This case was investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Joseph M. Schuster.

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

Orlando, FL – Senior United States District Judge John Antoon, II today sentenced Shawn Williams (42, Ocoee) to seven years in federal prison for distributing child pornography. He was also ordered to serve a 15-year term of supervision and to register as a sex offender upon his release from prison. Williams pleaded guilty on October 31, 2014.

According to court documents, Williams responded to a sexually explicit Craigslist ad and began conversing online with an Orlando man, William Edward Osman. The two men discussed their mutual interest in child pornography and attempted to make arrangements to meet in person for a sexual rendezvous. On May 9, 2013, Williams used his cell phone to send Osman images depicting child pornography, and they discussed meeting to share their collections of child pornography. During their conversations, Osman told Williams that he had a one-year-old child. Williams then asked Osman to send him “baby pics” and “adult with baby pics.”

On October 15, 2013, special agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations arrested Osman on charges related to the sexual exploitation of children. Agents seized Osman’s phone and identified Williams as one of the individuals with whom he had been electronically trading child pornography.

On September 3, 2014, Osman was sentenced to 60 years in federal prison for producing, distributing, and possessing child pornography.

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

This was 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.