Middle District of Florida

Tampa, Florida - U.S. District Judge Elizabeth A. Kovachevich today sentenced Angel Martinez (34, Dade City) to nineteen years in federal prison for possessing methamphetamine with intent to distribute, and possessing firearms in furtherance of a drug trafficking crime. The sentence consists of 14 years in federal prison for the drug trafficking offense, followed by a five year consecutive sentence for the firearm charge. Martinez pleaded guilty on April 19, 2013.

According to court documents, on September 20, 2012, investigators executed a search warrant at Martinez's residence in Dade City. In Martinez's bedroom, investigators located twenty-nine grams of methamphetamine and three firearms. In a shed next to his house, investigators located more than 250 grams of methamphetamine, two hand guns, numerous rounds of ammunition, and five digital scales.

This case was investigated by the Drug Enforcement Administration and the Pasco County Sheriff’s Office as part of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation's illegal drug supply. It was prosecuted by Assistant United States Attorneys Christopher F. Murray.

Tampa, Florida - Acting United States Attorney A. Lee Bentley, III announces that Gabriel James Brown, Jr. (33, Tampa) pleaded guilty last week to two counts of carrying, using and brandishing a firearm in furtherance of a violent crime. Brown faces a mandatory minimum sentence of 32 years in federal prison, and a maximum of life imprisonment. Brown’s co-defendant, Robert A. McChristian (44, Tampa) pleaded guilty on June 27, 2013, to a single count of carrying, using, brandishing and discharging a firearm in furtherance of a violent crime. McChristian faces a mandatory minimum sentence of 30 years in prison and a maximum of life imprisonment.

According to the Brown’s plea agreement, from December 2012 through February 6, 2013, Brown and McChristian committed a series of armed robberies of businesses in the Tampa area. Brown was arrested on February 6, 2013. On February 5, 2013, acting along, Brown robbed a T.D. Bank in Auburndale of $19,127. He robbed the bank at gun-point and used a smoke grenade while fleeing from the bank to obscure his escape. Brown also pleaded guilty to a January 18, 2013, robbery of a Metro PCS store during which he took $631 in cash and a total of 29 cell phones and accessories valued at approximately $2,332.
According to McChristian’s plea agreement, on December 20, 2012, McChristian used a military grade flash bang grenade and a gun provided by Brown to rob a Papa John’s Pizza restaurant in Tampa. McChristian threw the flash bang grenade into the store. He then ran in and robbed the store at gunpoint of approximately $300. Prior to the restaurant robbery, Brown and McChristian arranged to meet via text message. In the text messages, McChristian arranged to meet Brown to get the gun and the flash bang grenade so that McChristian could “shake the spot myself.” McChristian was caught, in part, based on the text messages recovered by law enforcement.

This case was investigated by the Federal Bureau of Investigation, the Polk County Sheriff's Office, the Auburndale Police Department, the Hillsborough County Sheriff's Office, and the Tampa Police Department. It is being prosecuted by Assistant United States Attorney Mark E. Bini.

Lee Bentley became the Acting United States Attorney for the Middle District of Florida following the departure of U.S. Attorney Robert E. O’Neill on July 8, 2013. Previously, Mr. Bentley served as the First Assistant to U.S. Attorney O’Neill. Mr. Bentley has been an Assistant United States Attorney in the Middle District of Florida since 2000. Prior to that, he worked at the law firm of Hogan & Hartson in Washington, DC as an associate (1990-1992) and a partner (1993-2000). Mr. Bentley also has served as a Special Assistant United States Attorney in the Southern District of Florida (Miami), an Attorney-Advisor in the Office of Legal Counsel, Department of Justice (Washington, DC), a law clerk to Hon. Lewis F. Powell, Jr., United States Supreme Court (Washington, DC), and a law clerk to Hon. Clement F. Haynsworth, Jr., United States Court of Appeals for the Fourth Circuit (Greenville, South Carolina). He graduated with highest honors from the University of Georgia (1980) and the University of Virginia School of Law (1983).

Tampa, Florida - United States Attorney Robert E. O'Neill announces that Kayla M. Noble, a student at Florida A&M University in Tallahassee, pleaded guilty today to one count of theft of government property. Noble faces a maximum penalty of ten years in federal prison. As part of her plea agreement, she agreed to forfeit to the United States $102,237 representing the proceeds obtained as a result of the offense.

According to the plea agreement, in September and October 2011, Noble participated in a scheme to defraud the United States Treasury. As part of the scheme, fraudulently-obtained federal income tax refunds were deposited into her checking and savings accounts. For her role in the scheme, Noble was compensated with a portion of the proceeds. In total, twelve fraudulent income tax refunds totaling $102,237 were deposited into her bank accounts.

This case was investigated by the Internal Revenue Service Criminal Investigation. It is being prosecuted by Assistant United States Attorney Matthew J. Mueller.

Jacksonville, Florida - United States District Judge Marcia Morales Howard today sentenced Denny Junior Jenkins (42, Live Oak) to 18 months in prison for failing to register as sex offender in the state of Florida, after traveling from the state of South Carolina. Jenkins was also ordered to serve a 10-year term of supervised release following his prison sentence. He pleaded guilty on March 18, 2013.

According to court documents, on September 4, 1992, Jenkins was convicted in Suwannee County, Florida of two counts of attempted sexual battery upon a child under 12 years of age. Because of these convictions, Jenkins is required to register as a sex offender under Florida law for the remainder of his life. After being released from prison, Jenkins received and executed documents that advised him of these conditions.

Court documents show that, in 2010, Jenkins changed his residence to the state of South Carolina and executed documents that advised, among other things, that if he moved to another state he must register as a sex offender in that state. In April 2012, Jenkins left South Carolina and moved back to Florida and established residence in Suwannee County. According to court documents, after establishing residence in Florida in April 2012, Jenkins was required to register and keep his registration current with the state of Florida under the Sex Offender Registration and Notification Act (SORNA). He failed to do so. On February 15, 2013, Jenkins was arrested and stated, among other things, that he moved from South Carolina to Florida in April 2012 and acknowledged that he did not register as a sex offender.
This case was investigated by the United States Marshals Service, the Suwannee County Sheriff’s Office, 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 the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc for more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

Fort Myers, Florida - United States Attorney Robert E. O'Neill announces the return of an indictment charging Cape Coral residents Jorge Otano (51) and his wife, Martha Otano (41). Jorge Otano, the owner of the former St. Jude's Pharmacy in Cape Coral, is charged with conspiracy to distribute oxycodone, a controlled substance outside the usual course of professional practice and for other than legitimate medical purposes. In addition, Jorge and Martha Otano (vice-president of the former St. Jude's Pharmacy) are both charged with conspiring to evade the reporting requirements of the Bank Secrecy Act, as part of a pattern of illegal activity involving more than $100,000 in a 12-month period. They are each also charged with three substantive counts of structuring transactions to evade the reporting requirements.

If convicted of conspiring to distribute a controlled substance, Jorge Otano faces a maximum penalty of twenty years in federal prison. If convicted of conspiring to structure deposits to evade reporting requirements, they each face a maximum penalty of five years in federal prison. Each structuring transactions to evade reporting requirements charge carries a maximum penalty of ten years in federal prison. The indictment also notifies both that the United States intends to forfeit $750,525.17 that was seized during the course of the investigation, computer equipment used to facilitate the crime, a house in Cape Coral, and two vehicles which are alleged to be traceable to proceeds of the offense. In addition, the United States is seeking a money judgment in the amount of $430,000.00, as additional proceeds of the crimes charged in the indictment.

According to the indictment, Jorge and Martha Otano were registered pharmacy technicians and operators of St. Jude's Pharmacy in Cape Coral. From approximately August 2009 until November 15, 2012, Jorge Otano conspired with others to possess with intent to distribute, and distribute oxycodone outside the usual course of professional practice and for other than legitimate medical purposes. In addition, Jorge and Martha Otano made cash deposits, including deposits of illegal proceeds, into domestic financial institutions in amounts of $10,000 or less in order to avoid triggering bank reporting requirements. The Otanos allegedly made multiple deposits below the reporting requirement at multiple banks on the same day and at the same branch on successive days. The indictment alleges that they made in excess of $100,000 in structured cash deposits in one year.

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

This case was investigated by the United States Secret Service and the Drug Enforcement Administration. It will be prosecuted by Assistant United States Attorneys David G. Lazarus and Yolande G. Viacava.

Tampa, FL – The Justice Department announced today that Science Applications International Corporation (SAIC) will pay $5.75 million to the federal government to resolve a lawsuit alleging violations of the False Claims Act. SAIC, headquartered in McLean, Virginia, is a defense contractor that provides professional engineering and other services to various agencies and departments of the United States.

The lawsuit centered on a General Services Administration Blanket Purchase Agreement (BPA) awarded to SAIC, in September 2006, for the provision of professional engineering and consulting services. Those services aided non-traditional assessment (NTA) work, which is the study and evaluation of the military utility of new products and emerging technologies. Through nineteen Task Orders issued under the BPA, SAIC performed NTA work for multiple DOD entities including U.S. Central Command at MacDill Air Force Base in Tampa, as well as the Coalition and Irregular Warfare Center at Nellis AFB in Las Vegas, Nevada. The General Services Administration (GSA) is an agency of the United States Government. Through its Federal Acquisition Service, GSA assists in the management and support of other federal agencies and government components through the provision of products and services to them. In some instances, GSA will assist a federal government agency by issuing a competitive contract solicitation for services required by that agency.

The United States contends that SAIC personnel aided others to induce GSA to issue the BPA solicitation by misleading GSA personnel into believing they were issuing the BPA on behalf of a federal government agency. In fact, the solicitations were issued on behalf of an entity associated with a state institution in New Mexico. An employee of that state institution was appointed to review cost proposals and billings by SAIC, but failed to discharge his duties independently by, among other things, not properly reviewing and vetting cost and scope of work estimates prepared by SAIC. Additionally, the government alleges that SAIC, and others, promoted the BPA to various DOD entities as a contract vehicle that had already been subject to competition, thereby bypassing truly competitive bidding on that work.

Pursuant to the settlement, SAIC will make a one-time payment of $5,750,000.00 to the United States. The DOD entities will retain all work performed, or work product created by SAIC, under the BPA. The U.S. will not pay any further monies for that work, nor remit or refund any monies to SAIC for that work.
“Federal contracts must be awarded based on full disclosure and fair dealing,” said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division of the Department of Justice. “It is completely unacceptable for taxpayer dollars to be paid under circumstances where the integrity of the contracting process has been undermined.” “This recovery illustrates the emphasis and resources we place on detection and recovery of fraud, waste, and abuse in government procurement contracts – particularly those involving defense contractors and others who supply goods and services to the Department of Defense, the branches of our military, and their bases,” said Robert E. O’Neill, U.S. Attorney for the Middle District of Florida.

"SAIC received a contract, awarded by GSA, from a fictitious government agency," said GSA Inspector General Brian D. Miller. "This deceptive scheme shows that we must be on the lookout for all forms of contract fraud."

The lawsuit was filed by a whistleblower (also known as a relator), under the qui tam provisions of the False Claims Act, which allows private parties to file suit on behalf of the United States and share in any recovery. Timothy Ferner, a former active-duty Lt. Colonel assigned to the CIWC, made the allegations which initiated the government’s investigation. Ferner will receive a $977,500.00 share of the recovery from SAIC.

This case was investigated jointly by Assistant U.S. Attorney Charles Harden of the United States Attorney’s Office for the Middle District of Florida, Trial Attorneys Don Williamson and Niall O’Donnell of the Commercial Litigation Branch of the Justice Department’s Civil Division, and Assistant Special Agent in Charge James Taylor of the Atlanta Office of the Inspector General for GSA. Substantial investigative support was also provided by agents from the Tampa Resident Agency of the Defense Criminal Investigative Service, the Melbourne Major Procurement Fraud Unit of the U.S. Army Criminal Investigation Command, and the MacDill Detachment of the Air Force Office of Special Investigations.

The claims settled by today’s agreement are allegations only; there has been no determination of liability.

Tampa, Florida - United States Attorney Robert E. O'Neill announces the unsealing of an indictment yesterday charging David F. Lewis with wrongful disclosure of health information, access device fraud, and aggravated identity theft. If convicted, Lewis faces a maximum penalty of ten years in federal prison on each count of wrongful disclosure of health information and ten years’ imprisonment on each count of access device fraud, all to be followed by up to two years for each aggravated identity theft offense. The Indictment also notifies Lewis that the United States is seeking a money judgment in the amount of $105,271.00, the proceeds of the charged criminal conduct.

According to the indictment and court documents, Lewis was a Department of Veterans Affairs employee who stole the identities of patients at the James A. Haley Veterans Hospital. Lewis then sold those identities to others, who used them to file fraudulent U.S. income tax returns and obtain fraudulent tax refunds.

Special Agent in Charge Quentin G. Aucoin of the Veterans Affairs, Office of the Inspector General, stated, "These crimes are particularly egregious, and the VA Office of Inspector General is dedicated to aggressively investigating individuals who misuse patient information, especially when used for personal and financial gain."

Special Agent in Charge James Robnett of the Internal Revenue Service - Criminal Investigation stated, "The indictment and arrest of David F. Lewis by members of the Tampa Bay Alliance, in partnership with the US Attorney's office, demonstrates the continued commitment the members of the alliance have in investigating identity theft and stolen identify refund fraud that is in the Tampa Bay area. The alliance will continue to vigorously investigate this crime which has victimized the most vulnerable citizens in the Tampa Bay area."

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

This case was investigated by the Department of Veterans Affairs - OIG, the Internal Revenue Service - Criminal Investigation, the Tampa Police Department, and the Florida Highway Patrol. It will be prosecuted by Assistant United States Attorney Sara C. Sweeney.

Jacksonville, Florida - United States Attorney Robert E. O'Neill announces the indictment of Emell Meda Meda (44, Jacksonville) charging him with one count of conspiracy to structure financial transactions, and one count of structuring financial transactions. If convicted on both counts, Meda Meda faces a maximum penalty of 10 years in federal prison. The indictment also notifies Meda Meda that the United States intends to forfeit $18,500, which is alleged to be traceable to the offense. Meda Meda was arrested on July 2, 2013.

According to the indictment, on or about June 10, 2009, Meda Meda instructed and paid two other individuals to each send $6,120 to a specific individual in Syria. The individuals were instructed to use their own names, as opposed to using Emell Meda Meda's name, when completing the required paperwork for the international electronic funds transfers. Thereafter, on June 12, 2009, Meda Meda instructed a third individual to use his/her own name to send $6,630 to an individual in Syria via an electronic funds transfer. On each occasion, the individuals were instructed to send the funds in this manner in order to conceal the fact that Meda Meda was the source of the money. Syria is a country classified by the U.S. Department of State as a state sponsor of terrorism.

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

This case was investigated by the Internal Revenue Service - Criminal Investigation. It will be prosecuted by Assistant United States Attorney Mark B. Devereaux.

Jacksonville, Florida - United States Attorney Robert E. O'Neill announced today that John Charles Stevenson (45, Rincon, Georgia) has been indicted by a federal grand jury, in Jacksonville, on child pornography charges. Stevenson is charged with two counts of receiving child pornography over the Internet. He faces a mandatory minimum sentence of 5 years, up to 20 years in prison and a $250,000 fine.

Stevenson was arrested in Rincon, Georgia on June 21, 2013 and remains in the custody of the U.S. Marshals Service pending a detention hearing on July 11, 2013, at the U.S. Courthouse in Jacksonville.
According to the indictment, on two separate occasions, Stevenson knowingly received visual depictions of a minor engaged in sexually explicit conduct via the Internet.

This case was investigated by the Federal Bureau of Investigation and the Jacksonville Sheriff’s Office. 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 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.projectsafechildhood.gov. For more information about internet safety education, please visit www.projectsafechildhood.gov and click on the tab "other resources."

Tampa, FL - U.S. District Judge Richard A. Lazzara today sentenced Jacques D. Randolph (31, Lakeland) to fifteen years in federal prison for being a felon in possession of a firearm. Randolph pleaded guilty before Judge Richard A. Lazzara on April 4, 2013.

According to court documents, Randolph met with undercover law enforcement officers on multiple dates for the purpose of selling firearms. Over a three-month period, Randolph sold sixteen firearms to undercover officers. Randolph has been a convicted felon since 1997. On the dates that he sold the firearms to law enforcement, Randolph was on felony probation.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Stacie B. Harris.

It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney Robert E. O’Neill, along with Julie Torres, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.

Tampa, Florida - United States Attorney Robert E. O'Neill announces that Chad Sunyich (37, St. George, Utah), Jason Vowell (38, St. George, Utah), and Timothy Long (39, Tampa) have pleaded guilty to conspiring to distribute more than 100 kilograms of marijuana. Sunyich and Vowell also pleaded guilty to possessing marijuana with intent to distribute. Long pleaded guilty today. Vowell pleaded guilty on June 3, 2013. Sunyich pleaded guilty on June 4, 2013. Each faces a mandatory minimum term of five years, up to forty years in federal prison on the conspiracy charge. For the possession with intent to distribute charge, Sunyich and Long also face a maximum term of twenty years in federal prison. Vowell has agreed to forfeit property that was used to facilitate the conspiracy, including his Piper Aerostar fixed wing airplane and $166,228 in cash.

According to court documents, the conspiracy began in 2010 when Sunyich sent marijuana grown in northern California to a person who would later become a cooperating witness (CW-1), in Tampa. The marijuana trafficking relationship between Sunyich and CW-1 continued into 2011 and 2012. During those years, Sunyich supplied CW-1 with quantities of marijuana ranging between thirty and ninety-nine pounds at a time, generally every 45 to 60 days.

In early 2012, Long joined the conspiracy. Long regularly collected marijuana proceeds for Sunyich and received pounds of marijuana from Sunyich for further distribution.

This case was investigated by the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Christopher F. Murray.

Tampa, Florida - United States Attorney Robert E. O'Neill announces that David Vazquez (35, Puerto Rico) today pleaded guilty to making false statements to a financial institution. Vazquez faces a maximum penalty of 30 years in federal prison.

According to the plea agreement, between November 7, 2007, and January 9, 2008, Vazquez knowingly made and induced other persons to make materially false and fraudulent statements to an FDIC-insured financial institution and other mortgage lenders, in connection with a mortgage fraud scheme. During the time frame of his offense, Vazquez worked as a mortgage broker for DVA & Associates, LLC, located in Tampa. As a mortgage broker, Vazquez’s job was to assist prospective borrowers with obtaining mortgage loans to purchase real property.

In 2007, Vazquez decided to purchase a jewelry store in Tampa, along with two other individuals. To finance the purchase of the jewelry store, Vazquez and his partners decided to purchase three condo units at The Arbors at Carrollwood. The Arbors was a 390-unit condominium complex located at 3939 Ehrlich Road, in Tampa. Vazquez was aware of the fact that purchasers of condo units at the Arbors were being given tens of thousands of dollars in cash-back incentives.

Vazquez listed material misrepresentations, including employment, gross monthly income, assets and liabilities, and intent to occupy the condo units as a primary residence on the loan applications. As a result of their scheme, Vazquez and his partners received more than $270,000.00 for purchasing three condo units at the Arbors. These funds were then used to purchase the jewelry store. The properties all went into foreclosure. Ultimately, Vazquez and his co-conspirator business partners defrauded the mortgage lenders out of approximately $645,872.00.

This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Simon Gaugush.

Tampa, FL - United States District Court Judge Elizabeth A. Kovachevich today sentenced Martez Jamar Cook (28, Clearwater) to 15 years in prison for possession of a firearm by a convicted felon. Cook pleaded guilty on March 4, 2013.

According to the criminal indictment and testimony in court, on April 26, 2012, Cook sold a Chinese made Norinco SKS 7.62 rifle, along with numerous rounds of 7.62 ammunition, to an undercover police officer in Clearwater. Included in the sale were an extended capacity magazine and ammunition.

This case was investigated by agents of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives, with the assistance of the Largo Police Department. It was prosecuted by Assistant United States Attorney Jay L. Hoffer.

It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney Robert E. O’Neill, along with Julie Torres, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.

Jacksonville, FL - U.S. District Judge Marcia Morales Howard today sentenced Frank Higginbotham (36, Hastings, Florida) to 15 years and 10 months in federal prison for conspiracy to manufacture methamphetamine and distribution of methamphetamine. The court also ordered Higginbotham to serve 8 years of supervised release after his from prison. A jury found Higginbotham guilty of the offenses on February 21, 2013.

According to court documents, Higginbotham manufactured and sold methamphetamine at various locations in St. Johns County. During the conspiracy, methamphetamine users gave Higginbotham boxes of medication containing pseudoephedrine in exchange for methamphetamine. Pseudoephedrine, which is an ingredient in many cold and allergy medications, is the primary ingredient needed to manufacture methamphetamine. On February 13, 2012, Higginbotham sold methamphetamine to an undercover Drug Enforcement Administration (DEA) agent. Higginbotham had previously served three years in state prison for trafficking in methamphetamine.

This case was investigated by the Drug Enforcement Administration and the St. Johns County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Arnold B. Corsmeier.

Tampa, Florida - United States Attorney Robert E. O'Neill announces that Roberto Fernandez Gonzalez (63, Naples) pleaded guilty today to conspiracy to commit health care fraud. Gonzalez faces a maximum penalty of 10 years in federal prison.

According to the plea agreement, from January 16, 2008, through at least March 31, 2008, Gonzalez conspired with various individuals to execute a scheme to defraud Medicare. During the course of this conspiracy, Gonzalez functioned as the nominee (straw) owner of Rehab Dynamics, Inc. (“Rehab Dynamics”), a physical therapy clinic located in Venice, Florida. Gonzalez had no background in the health care industry, nor did he have money to buy Rehab Dynamics. Rather, the conspirators paid Gonzalez more than $20,000.00 to serve as the straw owner of Rehab Dynamics, as a sham.

During the three months that Gonzalez served as the nominee owner of Rehab Dynamics, the conspirators submitted approximately $1,633,512.21 in fraudulent claims for reimbursement to Medicare. Ultimately, Medicare paid $446,738.85 of those false claims.

This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, the Defense Criminal Investigative Service, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Simon Gaugush.

Orlando, Florida - United States Attorney Robert E. O'Neill announces that Hussein Chery pleaded guilty yesterday to two counts of mail fraud and one count of access device fraud. Chery faces a maximum penalty of 20 years in federal prison for each mail fraud count, and up to 10 years in federal prison for the access device fraud count. A sentencing date has not been scheduled. Chery was indicted on May 8, 2013.

According to his plea agreement, Chery was stopped by an Orange County Sheriff’s Office deputy on March 22, 2012, for a traffic violation. A consent search of Chery’s vehicle resulted in the discovery of 38 cash/debit cards that were issued in the names of other people, a bundled assortment of delivered mail addressed to individuals other than Chery, and four notebooks containing handwritten information that corresponded to the debit cards.

Further investigation determined that Chery was part of a group of individuals who used stolen personal information to submit false income tax returns. The fraudulently obtained refunds were deposited onto prepaid debit cards that were issued in the victims’ name. Those prepaid debit cards were mailed to abandoned homes and others addresses located in Central Florida, where they were then retrieved by Chery and others. The participants in the scheme then attempted to use the debit cards to withdraw cash or pay for personal items.

The debit cards and notebooks found in Chery’s possession contained approximately 200 names of victims whose identities were used in some aspect of this scheme. Agents have found more than $340,000 in actual and attempted losses associated with the fraudulent tax returns that were filed using the stolen identities of the victims found in Chery’s notebooks.

This case was investigated by the Orange County Sheriff’s Office, the Federal Bureau of Investigation, and the Internal Revenue Service Criminal Investigation Division. It is being prosecuted by Assistant United States Attorney Roger B. Handberg.

Orlando, Florida - United States Attorney Robert E. O'Neill announces that a federal jury found Henry Negron (59, Davenport) guilty of conspiracy to possess with intent to distribute over 100 grams of heroin and four counts of possession and distribution of heroin. He faces a maximum penalty of 40 years on the conspiracy count and up to 20 years on each of the possession and distribution counts. Negron’s sentencing hearing is scheduled for September 16, 2013, before Senior U.S. District Judge Gregory A. Presnell. Negron was indicted on February 27, 2013.

According to evidence presented at trial, from October 12, 2012, through January 28, 2013, Negron was part of a heroin distribution conspiracy based out of Osceola County. On four separate dates, Negron worked with a co-conspirator to sell more than 100 grams of heroin to an undercover agent who was posing as a drug dealer. During the conspiracy, Negron drove his co-conspirator to all four heroin deals. On one occasion, he stored more than four ounces of heroin in his vehicle. He also participated in a phone conversation with the undercover agent leading to one of the deals.

This case was investigated by the Drug Enforcement Administration and the Osceola County Investigative Bureau. It is being prosecuted by Assistant United States Attorneys Andrew C. Searle and E. Jackson Boggs.

Orlando, Florida - U.S. District Judge Charlene E. Honeywell today sentenced Antwan Derell Jackson (26, Daytona Beach) to 19 years and seven months in federal prison for being a felon in possession of a firearm. Jackson was found guilty following a bench trial on March 28, 2013.

According to court documents and testimony presented at trial, Jackson was arrested after Volusia County Sheriff's Office (VCSO) deputies conducted a traffic stop on a vehicle in which he was riding. The occupants of the vehicle, including Jackson, attempted to flee, but Jackson was apprehended. During a subsequent search of the vehicle, the deputies found a loaded .380 caliber handgun. Based upon Jackson's extensive criminal history, he qualified as an Armed Career Criminal and was subject to enhanced penalties.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Volusia County Sheriff's Office. It was prosecuted by Assistant United States Attorneys Vincent S. Chiu and James D. Mandolfo.

This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney Robert E. O’Neill, along with Julie Torres, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.

Tampa, Florida - United States Attorney Robert E. O'Neill announces the return by a grand jury of an indictment charging David P. Lawrence (26, Bradenton) and Mark Alan Finehout (37, Sarasota) each with being a felon in possession of a firearm. Lawrence is also charged with possessing with intent to distribute 5 grams or more of methamphetamine. If convicted of the firearms offense, Finehout faces a maximum penalty of 10 years in federal prison. Due to his prior criminal history, Lawrence faces a mandatory minimum of 15 years, up to life imprisonment for the firearms offense. For the narcotics offense, Lawrence faces a mandatory minimum of 10 years in federal prison. The indictment also notifies the individuals that the United States intends to forfeit the firearms and ammunition they are charged with possessing, and any narcotics proceeds related to the charges against Lawrence.

According to the indictment, Lawrence and Finehout, who are both previously convicted felons, are each charged with possessing a .40 caliber Taurus pistol on April 17, 2013. Lawrence is also charged with possessing an SKS rifle on April 18, 2013, and possessing with the intent to distribute 5 grams or more of methamphetamine on April 19, 2013.

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

This case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Sarasota County Sheriff’s Office, and the Manatee County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Mark E. Bini.It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney Robert E. O’Neill, along with Julie Torres, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.

Tampa, Florida - U.S. District Judge Elizabeth A. Kovachevich sentenced Michelle Guy (40) to 48 months in federal prison yesterday for conspiracy to commit mail fraud and wire fraud. The court also ordered Michelle Guy to forfeit over 400 high-end purses, shoes, sunglasses, electronics, and other clothing, which are traceable to proceeds of the offense. As part of her sentence, the court also entered a forfeiture money judgment in the amount of $2,205,420.82, which constitutes the proceeds of the mail and wire fraud conspiracy. In addition, Michelle Guy was ordered to serve 100 hours of community service and pay $2,280,263.17 in restitution to HSBC Bank. Michelle Guy pleaded guilty on April 4, 2013.

Previously, on May 7, 2013, U.S. District Judge James D. Whittemore sentenced Michelle Guy’s husband (Kevin Guy) to 37 months in prison for his involvement in the same fraud conspiracy. Kevin Guy pleaded guilty on February 12, 2013.

According to court documents, between February 2001 and August 2011, Michelle Guy worked in various administrative capacities for HSBC Mortgage Services in Brandon, Florida. During her employment, HSBC Mortgage Services maintained an employee Recognition Program. Beginning around January 2007, and continuing through November 2011, Michelle Guy conspired with various individuals, including her husband (Kevin Guy), to defraud HSBC Mortgage Services, Inc. and HSBC Bank by ordering approximately $2,216,776.12 in American Express gift cards, AMEX gift checks, and store gift cards, without authorization. Michelle Guy then directed those gift checks and gift cards to her residence and office. Once the gift cards and gift checks were delivered, Michelle and Kevin Guy deposited the AMEX gift checks into various bank accounts and used the gift cards to go on shopping sprees.

The gift cards and gift checks were used to buy numerous luxury items, including tens of thousands of dollars of merchandise from Gucci, Louis Vuitton, Tiffany’s, Neiman Marcus, and other high-end stores. On June 24, 2011, Kevin Guy used fraud proceeds as a down payment on a 2011 Mercedes Benz S Class with a sticker price of $96,000.00.

During the execution of two search warrants, law enforcement seized approximately seventy-two AMEX gift checks and more than sixty store gift cards associated with Dillard’s, Olive Garden, Target, Banana Republic, Nordstrom, Neiman Marcus, Foot Locker, Walmart, Outback, JC Penney’s, and Darden. Agents also seized over 25 luxury purses, more than 100 pairs of designer shoes, over 100 pairs of jeans, more than twenty pairs of designer sunglasses, four flat screen televisions, two computers, and a high-end refrigerator—all purchased with fraud proceeds.

This case was investigated by the United States Secret Service, the United States Postal Inspection Service, and the Hillsborough County Sheriff's Office. It was prosecuted by Assistant United States Attorneys Simon Gaugush and Anita Cream.

Tampa, Florida - U.S. District Judge Steven D. Merryday today sentenced Susan Emily Jones (50, Lutz) to 24 months in federal prison for committing wire fraud. As part of her sentence, the court also entered a money judgment in the amount of $824,301.57, the proceeds of the wire fraud scheme. Jones has already forfeited her interest in a BMW, her personal residence, and the funds in three bank accounts totaling $7,166.38. Jones pleaded guilty on January 16, 2013.

According to court documents, Jones served as Vice-President and Senior Business Director of Citicorp Services, Inc. and managed its employees and operations. From November 13, 2003, through January 5, 2010, in Tampa, Jones falsely and fraudulently led Citicorp Services, Inc. employees to believe that she was authorized to make certain expenditures of company funds and misappropriated these funds for her personal enrichment. Specifically, Jones used these funds to pay for Tampa Bay Buccaneers football season tickets, personal credit card expenses, charitable contributions, prepaid debit cards, auto-related expenses, travel, and other goods and services. As part of the scheme to misappropriate funds, she caused the unauthorized transfer of funds from the Citibank, N.A. reserve account to the Citicorp Services, Inc. account. In sum, Jones misappropriated $824,301.57 using interstate wire transmissions, by bypassing Citicorp Services, Inc.’s and Citibank, N.A.’s internal controls for business and travel and entertainment expenses.

This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Rachelle DesVaux Bedke.

Tampa, FL - United States Attorney Robert E. O’Neill announced that Philip Lavoie (28, Sarasota) pleaded guilty yesterday to operating a common carrier while under the influence of alcohol. The plea was entered before United States Magistrate Judge Anthony E. Porcelli in Tampa. Lavoie faces a maximum penalty of 15 years in federal prison.

According to the information and testimony presented in court, Lavoie held a Commercial Pilot Certificate from the Federal Aviation Administration (FAA) and was an employee of Flight Express, an air cargo company based in Orlando. On December 8, 2012, Lavoie was the pilot and lone occupant of Flight 840, which departed from Greensboro, North Carolina and was on the way back to Tampa.

Air traffic tower personnel observed that after takeoff, Lavoie had gone silent on his radio and was not in contact with them for significant periods during his flight. Lavoie also changed the altitude at which he was flying without the controllers’ permission and made deviations from his projected flight path. FAA controllers later alerted the authorities at Tyndall Air Force Base in Panama City, Florida, whereby two jet fighters were dispatched to investigate and attempt to establish contact with Lavoie’s plane. The Air Force jets never came into contact with the Flight Express plane because Lavoie ultimately re-established contact with air traffic controllers.

After landing in Tampa, Lavoie failed a voluntary field sobriety test. Later he submitted to a breathalyzer test. The results of two separate tests of his blood alcohol were 0.272 and 0.274. Both results exceeded the legal intoxication level in the State of Florida.

This case was investigated by the U.S. Transportation Security Administration and the Federal Air Marshal Service, with assistance from the Tampa Police Department and the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer of the Tampa Division.

Tampa, FL - United States Attorney Robert E. O'Neill announces that Louis Thomas Caputo (78, Sarasota) pleaded guilty to extortionate collection of debt. Caputo faces a maximum penalty of twenty years in federal prison. Caputo was indicted in November 2012. His sentencing hearing is scheduled for August 21, 2013.

According to court documents, Caputo extended loans with interest rates that exceeded 500% per year. Over a number of months, beginning in September 2008, he employed extortionate means to collect these debts. Caputo threatened to harm the debtor, made assertions of his connections to the Gambino family, delivered anonymous threatening letters to the debtor, and, told the debtor that he had previously been convicted of a similar offense. In fact, Caputo was previously convicted in federal court of, among other things, the extortionate extensions and collections of debt.

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

Orlando, Florida - U.S. Attorney Robert E. O'Neill announces that a federal jury found Scott Michael Patrick (48) guilty of assault resulting in serious bodily injury. He faces a maximum penalty of ten years in federal prison. His sentencing hearing is scheduled for September 19, 2013. Patrick was indicted on October 6, 2010.

According to evidence presented at trial, Patrick, who was an inmate at the Federal Correctional Complex in Coleman, Florida, carried out a plan to viciously attack a fellow inmate. On February 3, 2007, Patrick went to the victim's assigned unit. Patrick then began shadow boxing and stretching inside of another inmate's cell. After the victim walked past the cell, Patrick and another inmate began brutally beating the victim. A third inmate joined in the fight and stabbed the victim six times while Patrick continued to strike the victim until he collapsed to the floor, smacking his head against a metal kick plate. The victim died as a result of the attack.

This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Vincent Citro and James Mandolfo.

Orlando, FL - United States Attorney Robert E. O’Neill announces that Michael Gagliano (49, Sanford) has agreed to plead guilty to theft of government property, obstruction of a federal audit, and aggravated identity theft. He faces a maximum sentence of 10 years in federal prison for the theft of government property charge, up to five years in prison for the obstruction charge, and a mandatory minimum term of 2 years in prison, which must be served consecutive to his sentence for any of the other underlying offenses. The information also notifies Galiano that the United States intends to seek a money judgment in the amount of $2,105,761.00, which are alleged to be traceable to proceeds of the offenses. Gagliano was charged by information on June 12, 2013.

According to court documents, Galiano Career Academy, Inc. (GCA), located in Altamonte Springs, was a for-profit trade school, offering career programs such as Medical Assistant, Medical Billing and Coding, Pharmacy Technician, Travel Counselor, and Travel and Tourism Specialist. Gagliano was GCA’s President and School Director. GCA was approved by the United States Department of Education (DOE) to administer Federal Student Assistance (FSA) programs, including the Federal Family Education Loan Program (FFEL) and the Federal Pell Grant program, which offered assistance to eligible students participating in post-secondary education at eligible institutions. GCA also received financial assistance for job training from Workforce Central Florida (WCF), a permanent placement agency, helping employers connect with job seekers each year in the central Florida area.

Gagliano used Columbus Academy, a high school “diploma mill” owned and operated by his wife, to make students eligible for FSA when they otherwise would not have been qualified. The GCA students who “graduated” from Columbus Academy were not eligible to receive the federal funds since these students did not receive a real high school education. From July 2007 through July 2010, 176 ineligible students enrolled at GCA through Columbus Academy received $1,221,878.00 in Direct Student Loan funds and $715,708.00 in Pell grant funds. Additionally, GCA received federal funds from the United States Department of Labor and WCF for ineligible students who attended GCA. As a result, GCA unlawfully received $168,175.00 of funds for unqualified students.

On July 13, 2009, the DOE Office of Federal Student Aid conducted a program review of GCA. The review was conducted to assess GCA’s administration of the financial aid programs in which it participated. During the program review Gagliano tampered with student records. The investigation also revealed that GCA/Gagliano electronically submitted the name and social security number of a student to the DOE in order to obtain loan funds on her behalf, well after she stopped attending GCA. Gagliano falsified the student’s attendance records to indicate that she was in attendance at GCA.

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

This case was investigated by United States Department of Education, Office of Inspector General and the United States Department of Labor, Office of Labor Racketeering and Fraud Investigation. It will be prosecuted by Assistant United States Attorney David Haas.

Orlando, Florida - Chief U.S. District Judge Anne C. Conway today sentenced Stephen Governale (50, Tampa) to 10 years in federal prison for attempted enticement of a minor to engage in a sexual activity. Governale was also ordered to serve a ten-year term of supervision and required to register as a sex offender, following his release from prison. He pleaded guilty on January 29, 2013.

According to court documents, on September 11, 2012, the Federal Bureau of Investigation was contacted by the parents of a seventeen-year-old child who was receiving sexually inappropriate messages from Governale. At the time of his arrest, Governale, a United States Air Force Reserve Lieutenant Colonel, was a protocol officer at CENTCOM in Tampa. In an interview, the child victim explained that he met Governale through an organization affiliated with the military. He said that he went with Governale to conferences and stayed in Governale’s hotel room. The victim also stated that he and Governale had watched pornographic movies and engaged in sexual activity while staying together.

On September 21, 2012, as Governale was planning to travel to Central Florida for business, a Task Force Agent with the FBI assumed the child victim’s on-line identity. The agent began to communicate online with Governale. During th online chats Governale attempted to entice the child victim to engage in sexual activity. Governale also arranged to meet the victim at a location in Central Florida. When Governale arrived, he was arrested by the FBI.

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

This is another 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.usdoj.gov/psc for more information about internet safety education.

Orlando - U.S. District Judge Anne C. Conway today sentenced Michael F. Callahan (63, Palm Bay) to 21 years and eight months in federal prison for receipt of child pornography. The court also ordered him to forfeit the computer he used to commit the offense. As part of Callahan's sentence, he was ordered to serve a life term of supervised release and to register as a sex offender, following his release from prison. Callahan pleaded guilty on January 24, 2013.

According to court documents, on June 22, 2012, Callahan was convicted of illegal sexual contact with a minor and possession of child pornography in Connecticut Superior Court. Callahan returned to Florida to his Palm Bay home pending his sentencing hearing. Two weeks later, a Federal Bureau of Investigation task force agent downloaded several videos of child pornography from Callahan, that Callahan had made available on a file sharing network. On August 2, 2012, federal agents executed a search warrant at Callahan's home and seized his computer. Callahan admitted that he continued to download and possess child pornography after his Connecticut conviction. A forensic examination of Callahan’s computer revealed 736 movies and 12 pictures showing the sexual abuse of prepubescent girls.

This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Karen L. Gable.

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

Tampa, Florida - United States Attorney Robert E. O'Neill announces that Carlos Chavez (46, Sarasota) pleaded guilty yesterday to theft of government funds in relation to a food stamp fraud scheme perpetrated at his convenience store, Las Americas Latin Market. Chavez faces a maximum penalty of 10 years in federal prison.

According to the plea agreement, Chavez has been the partial owner and operator of “More 4 Less Grocery Store Inc.,” a convenience store located at 560 N. Washington Boulevard in Sarasota. Over the years, this convenience store has done business as “More 4 Less Grocery Store” and, most recently, as “Las Americas Latin Market.”

Since August 2009, Las Americas has participated in the Supplemental Nutrition Assistance Program (“SNAP”), formerly known as the Food Stamp Program. SNAP was established by the United States Government to alleviate hunger and malnutrition among low and middle income families by increasing their food-purchasing power and ability. The U.S. Department of Agriculture is responsible for administering SNAP. Regulations mandate that retail businesses are prohibited from purchasing SNAP benefits in exchange for cash, a practice commonly known as “cash-back.”

Between February 1, 2010, and March 1, 2012, Chavez conducted numerous illegal “cash-back” transactions with SNAP recipients at Las Americas. Chavez collected a substantial fee for providing this cash-back service to SNAP recipients—typically 25% to 50% of the overall SNAP transaction. For example, if a SNAP recipient requested $50 cash back, Chavez would generally charge $100 to the recipient’s EBT card. When the $100 purchase was authorized, he would give the SNAP recipient $50 in cash and, within 48 hours, Las Americas would receive a $100 redemption from the Department of Agriculture. This illegal activity resulted in a loss of $735,886.00 in SNAP benefits to the U.S. Department of Agriculture.

In February 2011, law enforcement officials noticed that there were numerous suspicious SNAP transactions at Las Americas. For instance, Las Americas’ SNAP redemptions far exceeded those of similar convenience stores and even medium-size grocery stores in the immediate area. Also, between February 1, 2010, and March 1, 2012, Las Americas’ SNAP redemptions far exceeded state and national averages by 1,300%. After law enforcement executed a search warrant at Las Americas, SNAP redemptions at the store fell precipitously.

This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the U.S. Department of Agriculture, the Internal Revenue Service Criminal Investigation, and the Sarasota Police Department. It is being prosecuted by Assistant United States Attorney Simon Gaugush.

Orlando, FL - United States Attorney Robert E. O'Neill announces that Ross Littlefield (48, Kissimmee) and Linda Littlefield (41, Kissimmee) have each pleaded guilty to one count of conducting a prohibited monetary transaction. They each face a maximum penalty of 10 years in federal prison. The Littlefields were charged by information on April 29, 2013.

According to their plea agreements, Linda Littlefield, a former attorney, formed The Littlefield Law Group, P.A. The law group ultimately matured to specialize in Medicaid planning. In 2007, Ross Littlefield, Linda Littlefield, and others became the new directors of a non-profit organization called the JNN Foundation, Inc. The JNN Foundation established the JNN Special Needs Asset Preservation Pooled Trust. This type of trust can lawfully shelter assets and not affect the beneficiary’s Medicaid or Social Security Income eligibility.

Between 2007 and 2010, Ross and Linda Littlefield induced approximately 26 clients to contribute more than $4.7 million to the JNN Foundation under false pretenses. Once the client funds were received by the foundation, the Littlefields began transferring money to other accounts, which they controlled. They then used the money for their own personal benefit. Specifically, they used client deposits to purchase property, vehicles, and make personal loans to their other business. The deposits received from clients were made under the guise of Medicaid planning. To conceal their scheme, the Littlefields sent false quarterly statements to their clients. The falsified quarterly statements showed the client’s balance, when in fact, the Littlefields did not have the money in the bank accounts to cover all of the clients’ expenses. Consequently, the Littlefields stole $2,897,604.49 from their clients.

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

Tampa, Florida - United States Attorney Robert E. O'Neill and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division announce that a federal jury today found four former executives of WellCare Health Plans, Inc. (“WellCare”) guilty of various charges, including health care fraud, making false statements relating to health care matters, and making false statements to a law enforcement officer. Specifically, former WellCare Chief Executive Officer Todd S. Farha (45, Tampa) was convicted of two counts of health care fraud; former WellCare Chief Financial Officer Paul L. Behrens (51, Odessa) was convicted of two counts of making false statements relating to health care matters and two counts of health care fraud; William L. Kale (63, Oldsmar), former Vice President of Harmony Behavioral Health, Inc. (a wholly-owned subsidiary of WellCare), was found guilty of two counts of health care fraud; and Peter E. Clay (56, Wellesley, Massachusetts), former WellCare Vice President of Medical Economics, was found guilty of making false statements to a law enforcement officer. The maximum penalty for each of the health care fraud counts is ten years’ imprisonment. The maximum penalty for all other counts is five years’ imprisonment. A sentencing date has not yet been set.

The jury returned not guilty verdicts with respect to several counts and was unable to reach a verdict on others. The judge declared a mistrial as to those counts on which the jury was deadlocked. The U.S. Attorney’s Office will decide, at a later date, whether to retry the individuals on those charges.

Thaddeus M.S. Bereday (Tampa), WellCare's former General Counsel, was severed from the trial in February of this year. He will be tried separately, at a later date.

On March 2, 2011, a federal grand jury sitting in Tampa, Florida returned an indictment charging Farha, Behrens, Kale, and Clay with various federal criminal violations related to a scheme to defraud the Florida Medicaid program, from the summer of 2003 through the fall of 2007, by making false and fraudulent statements relating to expenditure information for behavioral health care services. WellCare operates health maintenance organizations (“HMOs”) in several states targeted for government-sponsored health care benefit programs like Medicaid. Two WellCare HMOs operating in Florida, StayWell and Healthease, contracted with the Agency for Health Care Administration (“AHCA”), the Florida agency which administers the Medicaid program, to provide Florida Medicaid program recipients with an array of services, including behavioral health services.

In 2002, Florida enacted a statute that required Florida Medicaid HMOs to expend 80% of the Medicaid premium paid for certain behavioral health services upon the provision of those services. In the event that the HMO expended less than 80% of the premium, the difference was required to be returned to AHCA. As part of the scheme, the individuals falsely and fraudulently submitted inflated expenditure information in the company’s annual reports to AHCA, in order to reduce the WellCare HMOs’ contractual payback obligations for behavioral health care services.

On May 5, 2009 the government filed related charges in an information and Deferred Prosecution Agreement ("DPA") against WellCare. Pursuant to that DPA, WellCare was required to pay $40 million in restitution, forfeit another $40 million to the United States, and cooperate with the government’s criminal investigation. The company complied with all of the requirements of the DPA. As a result, the information was later dismissed by the court following a government motion.

Also, in May 2009, an information and plea agreement for Gregory West (55, Tampa) a former WellCare analyst, was unsealed. In his plea agreement, West admitted to participating in the scheme to defraud the Medicaid program and agreed to cooperate in the government's investigation. At trial, West provided extensive and detailed testimony explaining the complex scheme. Other former WellCare executives provided additional testimony about the four individuals' roles in the scheme.

“Today’s guilty verdicts send a clear message that health care fraud will not be tolerated in the Middle District of Florida,” said U.S. Attorney Robert O’Neill. “The greed of those who siphon funds from individuals dependent upon federal healthcare programs must be investigated and prosecuted to the full extent of the law.”

“Medicaid recipients deserve quality, honest healthcare,” said Christopher B. Dennis, Special Agent in Charge, Health and Human Services, Office of Inspector General, Office of Investigations. “Today’s guilty verdicts should serve as a clear warning that anyone – no matter what their status - who defrauds the American people and abuses their trust will be brought to justice.”

This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, the Federal Bureau of Investigation, and the Florida Attorney General's Medicaid Fraud Control Unit. It was prosecuted by Assistant United States Attorneys Jay Trezevant and Cherie Krigsman, along with Department of Justice Senior Trial Attorney John Michelich and Special Assistant United States Attorney John Bowers.

Tampa, Florida - U.S. District Judge Virginia M. Hernandez Covington yesterday sentenced Nedal Faisal Ahmad to four years and three months in federal prison for mail fraud and aggravated identity theft. As part of his sentence, the court also entered a money judgment in the amount of $35,989.75, the proceeds of the charged criminal conduct. Ahmad pleaded guilty on March 8, 2013.

According to court documents, through his business and through other means, Ahmad negotiated U.S. Treasury checks and reloadable debit cards containing fraudulently obtained tax refunds. For instance, Ahmad "swiped" reloadable debit cards at his business (Al-Wafaa Trading), knowing that the funds on these cards were fraudulently obtained tax refunds, and kept a large portion of the cards’ value as a fee for processing the illegal funds. Ahmad processed over $60,000 of fraudulently obtained tax refunds through his business.

Ahmad was also involved in cashing fraudulent U.S. Treasury checks. The treasury checks were tax refunds that were fraudulently obtained by others. Beginning in October 2011, Ahmad began sending fraudulent Treasury checks via the U.S. mail and other delivery services to an individual in New York. Ahmad further instructed the individual to pay him sixty percent of the funds from the check, while the associate could keep the remaining forty percent. During the undercover operation, Ahmad sent the associate nine fraudulently obtained U.S. Treasury checks, totaling over $95,000 of stolen money from the U.S. Treasury.

This case was investigated by the United States Secret Service, Internal Revenue Service - Criminal Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the Tampa Police Department. It was prosecuted by Assistant United States Attorneys Sara C. Sweeney and Amanda L. Riedel.

This case was prosecuted as part of Operation Rainmaker, a coordinated effort among the U.S. Attorney's Office for the Middle District of Florida and various federal and local law enforcement agencies, including the U.S. Secret Service, IRS, United States Postal Inspection Service, the Federal Bureau of Investigation, the Tampa Police Department, and the Hillsborough County Sheriff's Department to combat the filing of false tax returns in the Tampa Bay region.

Fort Myers, Florida - United States Attorney Robert E. O'Neill announces the unsealing of an indictment charging Anthony Michael Defeo (48, Punta Gorda) with eight counts of wire fraud. If convicted, he faces a maximum penalty of 20 years in federal prison on each count, a fine of up to $250,000, and restitution to his victims. The indictment also notifies Defeo that the United States is seeking a money judgment in the amount of $6,280,580.00, the proceeds of the offense.

According to the indictment, Defeo solicited victim investors who thought they were investing in an opportunity involving road improvements on Interstate 75, along the west coast of Florida. Specifically, Defeo misrepresented to victim investors that he had lucrative contracts and purchase orders with a legitimate corporation engaged in asphalt paving, grading, and related services for roadway and civil construction projects. Instead of using the victim investors’ money as represented, Defeo used the investors’ money for his own purposes. The indictment alleges that Defeo fraudulently diverted and converted approximately $6,280,580.00 in monies from investors for his own purposes and has failed to repay these investors.

An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, 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 Jeffrey F. Michelland.

Tampa, Florida - U.S. District Judge James D. Whittemore sentenced Nikia Williams yesterday to five and six months in federal prison for theft of government property and aggravated identity theft. As part of her sentence, the court also ordered Williams to forfeit jewelry valued at more than $110,000, traceable to proceeds of the offenses. Williams also consented to forfeit a 2007 Mercedes Benz, which she purchased using $30,000 in cash. Williams pleaded guilty on February 27, 2013.

According to court documents, Williams engaged in stolen identity tax refund fraud from at least as early as January of 2011. In excess of 150 fraudulent tax returns were electronically filed from her residence during this period. Williams was linked to additional tax returns based on her use of debit cards containing fraudulently obtained tax refunds.

This case was investigated by the Internal Revenue Service Criminal Investigation, the United States Postal Inspection Service, and the Tampa Police Department. It was prosecuted by Assistant United States Attorneys Sara C. Sweeney and Amanda L. Riedel.

Tampa, Florida - United States Attorney Robert E. O'Neill announces that a federal jury yesterday found J. Patrick Brester (41, Sarasota) guilty of one count of conspiracy to commit wire fraud affecting a financial institution and three counts of wire fraud affecting a financial institution. Each count carries a maximum penalty of thirty years in federal prison and a $1million fine. Michael Chadwick, Matthew Landsman, and Joshua Unger previously pleaded guilty for their roles in the conspiracy.

According to evidence presented at trial, Brester conspired with others to engage in fraudulent cash back to buyer mortgage transactions involving the 2007 purchase and sale of condominiums at Vintage Grand, a large condominium complex in Sarasota. Each fraudulent transaction involved Brester first purchasing the unit from the development company (Sarasota 432, LLC) and then simultaneously “flipping” it to Michael Chadwick. To facilitate the scheme, Brester and his co-conspirators deceived mortgage lenders about the true nature of the transactions. They inflated the purchase prices of the properties, and ultimately the amount lent by the mortgage lenders. They did so by including fees that were falsely described as “management fees" that were made payable to shell corporations under their control. The “management fees” were actually the method by which Brester and his co-conspirators funneled cash back to themselves without the lenders’ knowledge.

In furtherance of the conspiracy, Brester and his co-conspirators caused interstate wire transfers of the loan proceeds from the victim mortgage lenders into bank accounts held in the names of shell companies, including IGS, Inc. and Landwick I, LLC. Evidence presented at trial showed that Brester made more than $550,000 from his role in the conspiracy. The loss to the mortgage lenders totaled more than$1.3 million.

This case was investigated by the Federal Bureau of Investigation and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorneys Amanda L. Riedel and Matthew J. Mueller.

Tampa, Florida - U.S. District Judge Susan C. Bucklew today sentenced Earl Eugene Hampton (58, Mulberry) to 30 years in federal prison for conspiring with others to distribute cocaine. The court also ordered Hampton to forfeit a 2004 Dodge Quad Cab ST recreational vehicle (RV), which was traceable to proceeds of the offense. Hampton pleaded guilty on March 6, 2013. According to court documents and testimony presented at sentencing, Hampton had been involved in distributing cocaine for the past forty years. Between 2009 and 2012, he was responsible for the distribution of approximately 280 kilograms of cocaine in Orlando, Clearwater, and elsewhere.

In numerous intercepted phone calls, Hampton negotiated with his Miami-based cocaine suppliers, and arranged for Gerald Jermaine Head, to drive him to Miami to pick up the cocaine. The investigation revealed that Head drove from Clearwater and picked up Hampton in Mulberry. Hampton and Head then drove together to the Miami area and spent the night at a motel in Hallandale, Florida.

On July 19, 2012, Hampton and Head met with Hampton's suppliers in Miami, obtained cocaine, and drove the drugs back to Hampton's residence in Polk County. Head then left with most of the cocaine.

Officers from the Clearwater Police Department later conducted a traffic stop on the vehicle being driven by Head, on Gulf-to-Bay Boulevard. The officers made contact with Head and immediately smelled marijuana when he lowered the driver's side window. A drug-detecting canine alerted to the presence of narcotics inside the vehicle. Officers then located and seized 482 grams of cocaine (part of the cocaine they had purchased in Miami earlier in the day) from underneath the passenger seat of the vehicle. On August 4, 2012, a search warrant executed at Hampton's residence resulted in the seizure of three firearms that Hampton admitted to possessing illegally.

Gerald Head pleaded guilty to a cocaine distribution conspiracy charge on January 18, 2013. On April 10, 2013, he was sentenced to 10 years and 10 months in federal prison. Hampton received a lengthier sentence because of his greater role in the offense and lengthy criminal history.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Metropolitan Bureau of Investigation (MBI), with assistance from the Drug Enforcement Administration (DEA), U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Clearwater Police Department, and the Lee County Sheriff's Office, as part of as part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation's illegal drug supply.

This case was a part of ATF’s “Frontline” strategy; an intelligence-driven approach to investigating federal firearms crimes. It focuses on the continuous communication, assessment, measurement, and collaboration of resources among Federal, state, and local law enforcement partners. It was prosecuted by Assistant United States Attorneys Christopher F. Murray and Robert E. Bodnar, Jr.

Jacksonville, FL - U.S. Attorney Robert E. O’Neill announces the return of a multi-count indictment charging Jacksonville residents Troy Solomon (29) and Antonio Gadsden (37) with conspiracy to defraud the government and multiple counts of aiding and assisting in the preparation of false income tax returns. Solomon is also charged with 16 counts of wire fraud, one count of aggravated identity theft and one count of willful failure to file a return. They each face a maximum penalty of three years in federal prison for the conspiracy charge. Gadsden faces up to three years in federal prison for each of his four false preparation charges. Solomon faces a maximum penalty three years in federal prison for each of his sixteen false preparation charges. Additionally, Solomon faces a maximum penalty of twenty years in federal prison for each wire fraud charge, two consecutive years in prison for the aggravated identity theft charge, and up to one year in prison for the failure to file charge. Both individuals were arrested on federal warrants today.

According to the indictment, Solomon and Gadsden worked at Solomon's Tax Services, LLC and conspired to defraud the United States by preparing returns using false information to maximize the refund amount received. The indictment further alleges that larger refunds resulted in more tax preparation business, which led to greater tax preparation fees. Solomon allegedly stole the identity of an individual in order to participate in the IRS E-File Program, through which Solomon obtained an Electronic Filing Identification Number. That identification number was used to file IRS Form 1040s. Further, the indictment alleges that Solomon failed to file an income tax return for tax year 2011.

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

The case was investigated by Internal Revenue Service Criminal Investigation. Assistant United States Attorney Kelly S. Karase is handling the prosecution of this case.

Tampa, FL - U.S. District Judge James D. Whittemore sentenced Paul Henry Carlin (58, Tampa) yesterday to 12 years in federal prison for transportation and receipt of child pornography. The court also ordered Carlin to forfeit computers and thumb drives, which were used in the offense. Carlin pleaded guilty on March 1, 2013.

According to court documents, between May and December 2012, Carlin used a peer-to-peer file sharing program to distribute at least 17 files depicting child pornography to undercover FBI agents. In December 2012, Carlin's computers and thumb drives were seized. Agents found more than 300 images and 100 videos of child pornography on his computer media. Carlin also admitted to law enforcement agents that he had been seeking and downloading images and videos of child pornography.

This case was investigated by the Federal Bureau of Investigation. 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 to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. 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.projectsafechildhood.gov.

Tampa, FL - U.S. District Judge Mary S. Scriven sentenced Jason Deon Thomas today (32, St. Petersburg) to 97 months in federal prison for possession with intent to distribute cocaine and marijuana and being a felon in possession of firearms and ammunition. The court also ordered Thomas to forfeit a host of firearms, ammunition, and $7,390 in U.S. currency, which were traceable to the offenses. Thomas pleaded guilty on March 8, 2013.

According to court documents, on February 7, 2013, the St. Petersburg Police Department, along with agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, executed a search warrant at Thomas' residence. Inside the residence, law enforcement officers located 29 firearms, including six assault rifles, five shotguns, 17 handguns, a machine gun, a silencer, four bullet proof vests, and thousands of rounds of ammunition. Distribution amounts of marijuana, cocaine, a quantity of prescription drugs, and $7,390 in cash were also recovered. Thomas was previously convicted of felony drug trafficking offenses, and thus prohibited from possessing a firearm or ammunition under federal law.

Thomas claimed, in court filings, that he was a "doomsday prepper," and stockpiling firearms, ammunition, bullet proof vests, and other items to prepare for the end of the world.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the St. Petersburg Police Department. It was prosecuted by Assistant United States Attorney Josephine W. Thomas.

This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney Robert E. O’Neill, along with Julie Torres, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.

Tampa, Florida - U.S. District Judge James S. Moody, Jr. today sentenced Courtnee Brantley (Seffner) to 12 months and one day in federal prison for her felony conviction of misprision of felony. Brantley was found guilty of the crime by a federal jury on January 16, 2013, following a second trial in the case. The first trial resulted in a hung jury.

Brantley's charge and conviction resulted from her actions following the murders of Tampa Police Officers David Curtis and Jeffrey Kocab on June 29, 2010, by Dontae Morris. Brantley was operating a vehicle without a tag, resulting in Officer Curtis stopping the vehicle and the ensuing fatal encounter. The evidence at the trial revealed that Brantley left the scene of the shooting and concealed her vehicle. Brantley further communicated with Morris following the murders.

This case was investigated by the Tampa Police Department, Federal Bureau of Investigation, Hillsborough County Sheriff's Office, Florida Department of Law Enforcement, Bureau of Alcohol, Tobacco, Firearms and Explosives, and other federal and local law enforcement agencies. It was prosecuted by Assistant United States Attorney James C. Preston, Jr.

TAMPA, FL - United States Attorney Robert E. O'Neill announces that Joseph Daniele (42, Tampa) pleaded guilty this week to conspiracy to commit wire fraud affecting a financial institution. Daniele faces a maximum penalty of thirty years in federal prison. Daniele’s three co-conspirators, also real estate professionals, previously pleaded guilty for their roles in the conspiracy. Misty Rudd, a realtor, Michael Jordan, a mortgage broker, and Adam Ort, the owner of a title company owner, are currently awaiting sentencing.

According to the plea agreements, Daniele moved from Ohio to Florida in 2002. Directly and through a series of companies, he bought numerous houses, primarily in Pinellas County, for the purpose of “flipping” them. “Flipping” is generally a practice whereby property is bought and then sold for more than the amount for which the purchaser acquired it. In total, the conspiracy involved approximately 400 mortgage transactions.

Rudd helped Daniele to flip the properties by soliciting investors to buy the houses. As a part of the scheme, Rudd and others claimed that these "investments" would require no money from investors to buy the houses. In reality, to obtain these loans, the lenders required the borrowers to contribute money toward the transactions. In the documents submitted to the lenders, the banks were told that the borrowers were paying the down payments and funds-to-close. In fact, the conspirators concealed the actual source of the money from the banks. In some cases, the borrower's contribution was netted out of the transaction. That is, it was taken out of the money the seller (Daniele or his companies) was supposed to receive. This required the direct involvement of the title agents closing the loans. Most of the loans were closed by title companies run by Ort. In other cases, the borrower's contribution was paid by a check from one of Daniele's companies. Frequently, the borrower's contribution came from a company called Premiere Financial, a company run by Ort and Jordan. Premiere Financial would fund the borrower’s contribution and then, on the seller’s side of the transaction, the money would be paid back to Premiere Financial, along with a small fee. This concealed the fact, from lenders, that the borrower had not made a financial contribution to the deal.

In addition, mortgage brokers, including Jordan, facilitated the scheme by adding false information to the mortgage loan applications. Applications were falsified to make the borrowers appear to have the financial ability to make the down payment and qualify for loans which they could not really afford.

This case was investigated by FBI. It is being prosecuted by Assistant United States Attorney Thomas N. Palermo.

Orlando, Florida - U.S. District Judge Charlene Edwards Honeywell yesterday sentenced Andrew Beasley (30, Patchogue, NY) to 9 years and 7 months in federal prison for receiving and possessing child pornography. He is also required to register as a sex offender and serve a 10-year term of supervision, following his release from prison. The court also ordered Beasley to forfeit his computer equipment. He pleaded guilty on January 29, 2013.

According to court documents, Beasley used a Peer to Peer directory to download images and movies of children being sexually abused and exploited. Law enforcement officers conducted a forensic examination of his computers and hard drives and found that Beasley amassed more than 6,400 images and 265 videos depicting children being sexually abused and exploited. Some of these images also contained bestiality and bondage.

This case was investigated by the Brevard County Sheriff’s Office and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It was prosecuted by Special Assistant United States Attorney Myrna Amelia Mesa.

This is another 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.usdoj.gov/psc for more information about internet safety education.

Orlando, Florida - U.S. District Judge John Antoon, II yesterday sentenced Gary Lee Reed (47, Blackfoot, Idaho), to 8 years in federal prison for transporting child pornography. Reed pleaded guilty to the charge on February 28, 2013.

According to court documents, Customs and Border Protection (CBP) Officers discovered thousands of images and videos of child pornography on Reed's laptop computer during a secondary inspection of his luggage. At the time of the inspection, Reed was returning to Port Canaveral, Florida, aboard a cruise ship that had recently sailed to the Bahamas.

This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and U.S. Customs and Border Protection. It was prosecuted by Assistant United States Attorney Daniel W. Eckhart.

It is another case brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. 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.projectsafechildhood.gov.

Orlando, Florida - U.S. District Judge John Antoon, II today sentenced Bruce Lee Jennings (64, Port Orange) to 10 years and one month in federal prison for possessing and distributing child pornography. Jennings was also sentenced to serve a 10-year term of supervision, following his release from prison, and is required to register as a sex offender. In addition, the court ordered Jennings to forfeit his computer equipment and $500,000 from the sale of his home, both of which were used to commit the offenses. Jennings pleaded guilty on January 28, 2013.

According to court documents, Jennings made child pornography directly available for others to download from his “IP” (Internet Protocol) address and Peer to Peer shared directory. During a recorded interview, Jennings admitted to hoarding child pornography images and videos for more than five years. Law enforcement officers conducted a forensic examination of his computers and hard drives and found that Jennings amassed more than 1,490 images and 3,220 videos depicting images of children being sexually abused and exploited.

This case was investigated by the Brevard County Sheriff’s Office and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It is being prosecuted by Special Assistant United States Attorney Myrna Amelia Mesa.

It is another 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.usdoj.gov/psc.

Orlando, FL - U.S. Attorney Robert E. O'Neill announces that a federal jury has found Ana Orosa Parada (49, Orlando) guilty of conspiracy to obtain payment of false claims. Parada faces a maximum penalty of 10 years in federal prison. Her sentencing hearing is scheduled before U.S. District Judge Charlene E. Honeywell on August 13, 2013. Parada was indicted on September 19, 2012.

According to testimony and evidence presented at trial, Marisol Panel and her husband, Wilfredo Flores, both held travel accounts at “Holiday Travel and Tours.” Panel testified that she had illegally obtained identities of adults and children who lived in Puerto Rico and said that she prepared tax returns using a tax filing program and paid local residents to receive refund checks at their residences. After the refund checks arrived, Panel and her co-defendant husband, Flores, would pick up the refund checks and deliver them to Parada. Parada would either cash the refund checks belonging to the identity theft victims or apply the checks to Panel and Flores' travel packages. Parada testified that she knew cashing and exchanging the refund checks for Panel and Flores’ travel packages was wrong.

Bank records showed Prada deposited 123 refund checks into her business checking account. The records also showed business checks which Parada had made payable to Marisol Panel for the amount of the refund checks, minus the fee Parada had charged for cashing the checks. Parada’s fee ranged from $700 to $1,000 per check. Other evidence showed that refund checks also had been applied to the cost of the travel packages purchased through Parada’s now defunct travel agency (Holiday Travel and Tours).
Both Panel and Flores have pleaded guilty for their role in the conspiracy. They are scheduled to be sentenced on July 9, 2013.

This case was investigated by the Internal Revenue Service-Criminal Investigation. It is being prosecuted by Assistant United States Attorney Tanya Davis Wilson.

Tampa, Florida - U.S. District Judge James D. Whittemore sentenced Carlos Johnson yesterday to eight years in federal prison for wire fraud and aggravated identity theft. As part of his sentence, the court also entered a money judgment in the amount of $431,625.00, the proceeds of the offenses. Johnson was also ordered to forfeit a Cadillac and a Dodge Charger that were purchased with the fraud proceeds. Johnson pleaded guilty on February 26, 2013.

According to court documents, Johnson engaged in stolen identity tax refund fraud from as early as July 2011 through October 2012. More than 170 fraudulent tax returns were electronically filed from his residence during this period. Johnson was also tied to additional returns based on his use of debit cards containing fraudulently obtained tax refunds. Johnson used the fraudulently obtained money from the U.S. Treasury for cars and travel, including a Cadillac CTS and a stay at the Bellagio Hotel in Las Vegas, Nevada.

This case was investigated by the Internal Revenue Service Criminal Investigation, and the Clearwater Police Department. It was prosecuted by Assistant United States Attorney Sara C. Sweeney.

Orlando, Florida - United States Attorney Robert E. O'Neill announces that Obnes Latigue (50, Orlando) pleaded guilty today to three counts of aiding in the preparation of false tax returns. He faces a maximum penalty of 3 years in federal prison for each count. His sentencing hearing has been set for August 21, 2013. Latigue was indicted on April 10, 2013.

According to his plea agreement, Latigue was the owner of a tax return business called “Tax Winners Enterprises, Inc.” For the tax years 2006, 2007, and 2008, Latigue prepared returns for individuals in which he falsified the amounts of deductions and tax credits owed to the taxpayers. As a result, those taxpayers received undeserved tax refunds. Latigue fraudulently claimed education credits for clients who never attended college. He also inflated itemized deductions. As a result of the false returns prepared by Latigue, the Internal Revenue Service issued more than $1.1 million in undeserved refunds. Latigue has agreed to repay the IRS that amount in restitution.

This case was investigated by the Internal Revenue Service Criminal Investigation. It is being prosecuted by Assistant United States Attorney Roger B. Handberg.

Orlando, Florida - United States Attorney Robert E. O'Neill announces that Richard Middleton (36, New York) pleaded guilty today to possessing device-making equipment, with intent to defraud, and possessing a false identification implement intended to be used in the production of a false identification document. Middleton faces a maximum penalty of 15 years in federal prison on each of the two counts. His sentencing hearing is scheduled before Senior U.S. District Judge G. Kendall Sharp on August 21, 2013. Middleton was indicted on February 27, 2013, and arrested in the Eastern District of New York on March 6, 2013.

According to documents, on August 20, 2011, deputies from the Osceola County Sheriff’s Office executed a search warrant on a room that Middleton occupied at a timeshare resort in Kissimmee. Inside the room deputies recovered equipment used to manufacture counterfeit credit cards and false identification documents, including a credit card embosser, a foil press “tipping” machine, card making devices, MasterCard hologram stickers, blank plastic cards and holograms typically used in genuine state issued identification cards and driver licenses, more than 1,000 blank American Express and Visa credit cards, and a laptop computer. A forensic review of the laptop revealed evidence indicating its use in the charged crimes.

This case was investigated by the United States Secret Service, with assistance from the Osceola County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Andrew C. Searle.

Orlando, FL - United States Attorney Robert E. O'Neill announces today that Mary Jean Holzworth (63, Longwood) pleaded guilty to filing false tax documents. Holzworth faces a maximum penalty of three years in federal prison.

According to the plea agreement, while Holzworth worked for Fulfillment Partners, she embezzled $1,629,677. She made several purchases at high-end retail stores and bought high-end assets including a new Cadillac. She also used the embezzled funds to pay for gym memberships. When co-workers began to notice a change in Holzworth's lifestyle, she told them that she had an uncle in Germany who had passed away and left her an inheritance.

During the time Holzworth embezzled from Fulfillment Partners, she prepared and filed her own tax return for 2009 and reported only her W-2 wages and some interest. She did not report any embezzled funds. In an interview with the IRS, Holzworth admitted that she had prepared and signed a 2009 tax return under penalty of perjury. Holzworth admitted that she had filed the Form 1040 for tax year 2009 and knowingly failed to report the additional income from the theft on her tax return.

This case was investigated by Internal Revenue Service Criminal Investigation. It is being prosecuted by Assistant United States Attorney Tanya Davis Wilson.

Orlando, Florida - U.S. District Judge Gregory A. Presnell sentenced Sebastian Stewart Oyegun, II (33) today to 30 months in federal prison for theft of government property. Oyegun was ordered to pay restitution in the amount of $10,205,304.05. The court also forfeited a 2011 Infiniti QX56, a 2011 Dodge Charger, a 2011 Spyder Roadster motorcycle, approximately $170,000 in cash, and more than $250,000 that Oyegun had deposited in various bank accounts. Oyegun pleaded guilty on July 2, 2012.

According to his plea agreement, between 2009 and 2011, while employed as a Chief Warrant Officer in the United States Army Active Guard Reserve, Oyegun made more than $10 million in unauthorized purchases. Oyegun purchased high-end engineering equipment, computer equipment and power tools, and charged them to the United States Army. The purchases were made over the Internet using the General Services Administration (GSA) Advantage System website and were shipped to various addresses throughout the United States. Oyegun manipulated the purchasing system by fraudulently creating a phony user ID and password, providing bogus points of contact and fake approving officials, and adding multiple shipping addresses. The theft was discovered after an internal audit conducted by the United States Army revealed that Oyegun had used an accounting code from a unit he was previously assigned to in order to make the on-line purchases. Oyegun sold the items for 10% to 20% of their retail value at local swap meets, on Craigslist and to third parties. As part of his plea agreement, Oyegun agreed to resign from the Army and cooperate in the investigation against others involved in the theft of the stolen goods.

This case was investigated by the Federal Bureau of Investigation, the Army Criminal Investigative Command, the Office of Inspector General for the General Services Administration, and the Department of Commerce’s Office of Export Enforcement. It was prosecuted by Assistant United States Attorney Daniel W. Eckhart.