Middle District of Florida

Tampa, Florida - U.S. District Judge James D. Whittemore sentenced Preston D. Wilbur (46, Davenport) yesterday to 10 years in federal prison for distributing child pornography. Wilbur pleaded guilty on November 14, 2012.

According to court documents, Wilbur distributed numerous images and videos depicting child pornography to undercover law enforcement officers over the Internet. During the execution of a search warrant at Wilbur's residence, officers seized numerous computers, hard drives, and USB flash drives that contained child pornography. A forensic examination of the seized property revealed more than 300,000 images and 8,389 videos of child pornography.

This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It was prosecuted by Assistant United States Attorney Stacie B. Harris.

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

Jacksonville, FL - United States Attorney Robert E. O'Neill announced today that Mickey Wayne Brazzell (56, Yulee) pleaded guilty to possessing child pornography. Brazzell faces a mandatory minimum sentence of 10 years, up to a maximum of 20 years in federal prison, a $250,000 fine, and a potential life term of supervised release. He is also required to forfeit his computer media. A sentencing date has not yet been set.

According to court documents, Brazzell has a prior conviction for a sexual offense against minor children. He was convicted in state court in Jacksonville on November 6, 2000, of lewd and lascivious conduct.

According to court documents, Brazzell was more recently identified as a possible suspect in a child pornography offense by the National Center for Missing and Exploited Children (NCMEC). NCMEC referred this matter to the Florida Attorney General’s Office in Jacksonville (AGO) for further investigation. In June 2010, two AGO investigators made contact with Brazzell at his apartment in Yulee. Among other things, Brazzell admitted to investigators that he had received several images of boys between 12 and 13 years of age “having sex on each other.” Based upon this, and other admissions, investigators seized Brazzell’s laptop computer.

On November 23, 2010, Brazzell was arrested by FBI agents and AGO officers at his residence in Yulee. During an interview, Brazzell told the agents, among other things, that he was given a computer by a friend, shortly after his other computer was seized, and that he had pornography on the new computer. Subsequently, agents seized a second desktop computer and other computer media from Brazzell's residence. These items were found to contain depictions of child pornography.

Approximately 900 images were recovered from Brazzell’s two computers, compact disks and external thumb drive. At least 191 of the images depicted minor children engaged in sexually explicit conduct.

This case was investigated by the former Child Predator Cybercrime Unit of the Florida Attorney General’s Office and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to 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 - Senior U.S. District Judge Susan C. Bucklew today sentenced Thomas Eugene Rhoden (48, Zephyrhills) to 9 years and 7 months in federal prison for two bank robberies in October 2012. The court sentenced Rhoden to the high-end of the applicable sentencing guidelines, noting the seriousness of the offenses and his significant criminal history. As part of Rhoden's sentence, the court also entered a money judgment in the amount of $4,876.00, the amount of money he stole from the banks. Rhoden was also ordered to pay restitution in that same amount. Rhoden pleaded guilty to two counts of bank robbery on December 18, 2012.

According to court documents, on October 10, 2012, Rhoden entered the Zephyrhills branch of Sunshine State Federal Savings Bank dressed in dark colored clothing and wearing a waist pack. He passed a note to the teller demanding money. He also stated that he had a bomb in the waist pack, and that this was not a joke. The following week, on October 17, 2012, Rhoden robbed a Hudson branch of Bank of America in the same manner. He threatened the teller and ordered her to not try anything. The Pasco County Sheriff's Office bomb squad responded to the scene of both bank robberies to disarm the alleged bombs. In both instances the bombs turned out to be dirt and gravel.

"Once again our partnership with the U.S. Attorney's Office and FBI has proven successful in bringing another criminal to justice and protecting our citizens," said Sheriff Chris Nocco. "As a team we have demonstrated that there will be consequences to a criminal's bad decision."

This case was investigated by the Federal Bureau of Investigation and the Pasco County Sheriff's Office. It was prosecuted by Assistant United States Attorney Josephine W. Thomas.

Ocala, FL - U.S. District Judge Charlene Edwards Honeywell today sentenced Ronald E. Slauson (73, Belleview) to 4 years in federal prison, followed by ten years of supervised release, for possession of child pornography. The court also ordered Slauson to forfeit computers and computer items relating to such criminal activity. Slauson pleaded guilty on November 12, 2012.

According to court documents, on May 8, 2012, a special agent with U.S. Immigration and Customs Enforcement's Homeland Security Investigations was conducting an online investigation into the possession of child pornography. The agent identified an Internet Protocol (IP) address that was being used for sharing videos and images of suspected child pornography. During the investigation, the agent was able to determine that the internet subscriber was Ronald Slauson. On September 7, 2012, a federal search warrant was executed at Slauson's Belleview residence, and computers and computer storage items were seized. Subsequent computer forensic examinations revealed that Slauson was in possession of approximately 1,498 videos approximately 2,860 images of child pornography. This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It was prosecuted by Assistant United States Attorney Sam Armstrong.

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, 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."

Tampa, Florida - U.S. District Judge James D. Whittemore sentenced Terry Vernon Koontz (56, Apollo Beach) yesterday to 9 years and 7 months in federal prison for conspiracy to commit mail fraud and wire fraud. The court also ordered the forfeiture of a $50,000 cashier's check, which is traceable to proceeds of the fraud scheme, and a money judgment in the amount of $3,771,701.88, the proceeds of the fraud scheme.

According to court documents, from about December 2010, through November 2011, Koontz and a co-conspirator developed a plan to use false and fraudulent representations, pretenses and promises to solicit victim-investors to wire funds into bank accounts which they controlled. The accounts were for investment in a purported gold futures investment program supposedly run by an existing New York-based investment firm called Paulson & Co., Inc. To facilitate the scheme, conspirators utilized an unincorporated Florida entity (CK&K), in Tampa. Koontz was the primary architect of the fraud scheme.

In late January 2011, conspirators opened a bank account in the name of CK & K to be used to receive victim-investors’ funds. During the same time frame, Koontz and co-conspirators began soliciting prospective victim-investors to invest in the purported gold futures investment program. Once convinced to participate, Koontz or co-conspirators directed the victim-investor to transmit his or her funds, via wire and other means, to the CK & K account.

In an effort to enhance the appearance of the fraudulent investment program, Koontz created false and fraudulent documents, including promissory notes and assignments of collateral, which supposedly evidenced and guaranteed the victim-investors’ participation in the investment program. In preparing these documents, Koontz used the names and signatures of various existing foreign and/or domestic entities, without such entities’ and individuals’ knowledge or consent. The promissory notes also guaranteed a rate of return, usually ranging between three and six percent, each month. After a victim-investor wired his or her investment funds, Koontz and/or co-conspirators caused a false and fraudulent promissory note and assignment of collateral to be sent, via FedEx, from either Tampa or Ft. Myers, to the victim-investor. Most of the victim-investors resided outside of Florida.

As the fraudulent investment program grew, Koontz and co-conspirators organized and hosted live presentations, conducted via conference call, to solicit more prospective victim-investors. Some of the presentations were recorded for later access by other prospects. At times, Koontz falsely posed as a satisfied investor and gave a testimonial touting the success of the fraudulent investment program. He also portrayed himself as a close personal friend and professional associate of the founder of the existing New York-based investment firm Paulson & Co., Inc., to persuade the prospective victim-investor to participate in the purported gold futures investment program.

Koontz and co-conspirators used the victim-investors’ funds to perpetuate the fraud scheme and for the personal enrichment of themselves, their family members, and friends. Specifically, they purchased motor vehicles, real property, home furnishings, jewelry, and other goods and services. Funds invested by later victim-investors were used to make interest payments to earlier victim-investors in order to make it appear that the investment program was performing as represented. Other such funds were used to pay expenses associated with operating the fraud scheme, including, but not limited to, office rents, wire transfer fees, and FedEx fees.

On January 30, 2013, U.S. District Judge Susan C. Bucklew sentenced co-conspirators John Henley Fowler (64, Ft. Myers) to 70 months in federal prison for conspiracy to commit mail fraud and wire fraud, and Jeffrey Robert Fowler (35, Ft. Myers) to 37 months in federal prison on a similar charge. The court also ordered the Fowlers to forfeit bank accounts, vehicles, real property, computer equipment, a big screen television, iPad and iPhone, which are traceable to proceeds of the fraud scheme, and the court entered a money judgment in the amount of $3,771,701.88, the proceeds of the fraud scheme.

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

Orlando, FL - U. S. District Judge Roy B. Dalton, Jr. sentenced Nicholas Knittig (30, Kansas) today to 20 years’ imprisonment for attempted sexual enticement of a minor, and 10 years’ imprisonment for transfer of obscene material to minors. The sentences were ordered to be served concurrently, followed by a lifetime of supervised release. Knittig was indicted on August 8, 2012. He pleaded guilty on October 31, 2012. As a previously convicted sex offender, Knittig was classified as a repeat and dangerous sex offender against minors.

According to court documents, only two months after serving a 5-year term of supervised release from a previous conviction, Knittig communicated over the Internet with an undercover agent in a St. Johns County (Florida) Sheriff’s Office operation. During the conversation, Knittig reiterated his desire to have sex with children and requested pictures of them. In May 2012, Knittig became the subject of an FBI investigation in Orlando. During that investigation, he continually explained the sexual acts, in graphic detail, he would perform on children. On June 19, 2012, Knittig spoke with both an FBI Undercover (UC) and a second agent who portrayed the UC’s 13 year-old child. Knittig stated his plans to come and visit the UC and the UC’s children during the coming weekend. At the end of the conversation, Knittig told the UC that he would send a picture for the UC to show the UC’s 13-year-old daughter. Subsequently, the UC received an e-mail from Knittig that included a JPEG image of Knittig’s genitalia. In a subsequent investigation conducted by the Alachua (Florida) Police Department, Knittig e-mailed a picture of his genitalia to a UC and another agent posing as a child. During his conversation with the presumed child, Knittig told the UC to make sure that her stepfather showed her the picture.

On or about August 22, 2012, a search warrant was executed at Knittig’s residence in Kansas. A forensic examination of the computer revealed that it contained 96 videos and 326 images of child pornography. The videos depicted boys and girls of varying ages up to 12 years old, including infants.

This case was investigated by the Federal Bureau of Investigation-Orlando, Federal Bureau of Investigation-Kansas, St. Johns County (Florida) Sheriff's Office, and the Alachua (Florida) Police Department. It is being prosecuted by Assistant United States Attorney Christopher LaForgia.

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."

Tampa, Florida - United States Attorney Robert E. O'Neill announces the unsealing of an indictment charging Karen Galo (33, Key West) with two counts of obstruction of justice and one count of disclosing the contents of a federal grand jury subpoena to a third party, with the intent to obstruct a judicial proceeding. If convicted on all counts, Galo faces a maximum penalty of 35 years in federal prison.

According to the indictment, on or about October 9, 2008, Galo, in her capacity as an officer of Key West Bank, notified a third party about the existence and contents of two federal grand jury subpoenas related to an investigation into mortgage fraud and money laundering. Galo disclosed these federal grand jury subpoenas to the third party with the intention of obstructing a judicial proceeding.

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 U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It will be prosecuted by Assistant United States Attorney Simon Gaugush.

Tampa, FL - U.S. Attorney Robert E. O'Neill announces that Jaris Youngblood (34, Tampa) was sentenced yesterday by U.S. District Judge Elizabeth A. Kovachevich to 15 years and 8 months in federal prison for distributing crack cocaine. Youngblood was the last individual to be sentenced on federal charges as a result of “Operation Pines.”

According to court documents, the Hillsborough County Sheriff's Office (HCSO), along with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), initiated the "Pines Operation" in an effort to combat an ongoing drug and gang epidemic in a pair of apartment complexes located in Tampa. Approximately 52 individuals were arrested on state or federal charges as a result of the operation, ten individuals were charged federally.

“This lengthy prison sentence will remove another dangerous criminal who has plagued our neighborhoods by selling drugs,” stated Special Agent in Charge Julie Torres. “The success of ‘Operation Pines’ is attributed to the excellent undercover work that was conducted and the solid partnership between ATF, our law enforcement partners, and the United States Attorney’s Office.”

“These arrests are another example of the positive results by local and federal agencies working together to remove individuals off of our streets,” said Sheriff David Gee.

Nine others were previously sentenced to federal prison terms. Zavien Brand (29, Tampa) was sentenced to 31 years for distributing crack cocaine, being a felon in possession of a firearm, and possessing a firearm during and in furtherance of a drug trafficking crime. Cuwissie Hamilton (34, Tampa) was sentenced to 16 years for distributing 28 grams or more of crack cocaine. Bruce Kenyon Davis (32, Tampa) was sentenced to 15 years and 8 months for distributing crack cocaine. Victor Milliner (25, Tampa) was sentenced to 15 years for distributing crack cocaine, being a felon in possession of a firearm, and possessing a firearm in furtherance of a drug trafficking crime. Terrill LaDaja Gainous (32, Tampa) was sentenced to 10 years and 10 months for distributing crack cocaine. Tyrone Flowers (50, Seffner) was sentenced to 10 years for distributing crack cocaine. Kenneth Wayne Richardson (46, Tampa) was sentenced to 7 years and 1 month for distributing crack cocaine. Shay John (39, Tampa) was sentenced to 5 years and 10 months for distributing crack cocaine. Kimoy Prince (22, Tampa) was sentenced 5 years and 10 months for distributing cocaine base. And, Aaron Petrus (27, Jacksonville) was sentenced to 4 years and 3 months for distributing crack cocaine.

This case was investigated by ATF and HCSO. It was prosecuted by Assistant United States Attorney Thomas N. Palermo and Walter E. Furr.

This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. U.S. Attorney O’Neill, along with SAC Torres, is coordinating the Project Safe Neighborhoods effort 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 of an indictment charging Gabriel James Brown, Jr. (33, Tampa) with bank robbery, two Hobbs Act robberies of businesses, and carrying, using, and brandishing a firearm in relation to those crimes of violence. If convicted on all counts, Brown faces a mandatory minimum penalty of 57 years in federal prison, up to a maximum penalty of life imprisonment. The indictment also notifies him that the United States intends to forfeit a firearm and ammunition seized during the investigation. The United States is also seeking money judgments in the amounts of $441, $631, and $19,127, the proceeds of the charged robberies. Brown was indicted on February 27, 2013.

According to the indictment, on January 18, 2013, Brown committed armed robberies of two businesses in the Tampa area. He allegedly robbed Direct General Auto Insurance located on Adamo Drive in Tampa, and a Metro PCS store located on Kingsway in Seffner. Brown is also charged with committing an armed robbery of a TD Bank in Auburndale on February 5, 2013, robbing the bank of $19,127.

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, the Polk County Sheriff's Office, the Hillsborough County Sheriff's Office, and the Tampa Police Department. It will be prosecuted by Assistant United States Attorney Mark E. Bini.

TAMPA, FL - U.S. District Judge Virginia M. Hernandez Covington sentenced Tampa residents Juan Miranda Amores (44) and Yudelkis Portes (31) for credit card fraud and identity theft. Miranda Amores was sentenced to seven years and three months in federal prison. Portes was sentenced to five years in federal prison. The court also ordered both Miranda Amores and Portes to forfeit $59,897.84 each, the proceeds of the credit card fraud.

Miranda Amores pleaded guilty to one count of bank fraud and one count of aggravated identity theft on October 5, 2012. Portes pleaded guilty to one count of conspiracy to commit access device fraud and one count of aggravated identity theft on October 22, 2012. Another co-defendant, Ireanaldo Larrondo-Berrera, pleaded guilty on November 12, 2012. A sentencing hearing is scheduled on May 9, 2013.

According to court documents, from at least mid- 2010, through at least July 2011, Miranda Amores and Portes knowingly joined and engaged in a conspiracy and scheme to commit credit card or access device fraud and bank fraud using stolen identities. In December 2010, a detective from the Kokomo, Indiana Police Department contacted a detective from the Tampa Police Department (TPD) regarding a case of counterfeit credit cards. According to the Indiana detective, more than 16 accounts at the Solidarity Community Federal Credit Union had been compromised and many fraudulent charges to these accounts came from Tampa, specifically from various Walgreens stores. The TPD detective recovered surveillance video from the stores. Miranda Amores, as well as Larrondo-Berrera and Portes were identified as the individuals on video using stolen and/or counterfeit credit and debit cards.

TPD obtained a spreadsheet of fraudulent transactions that Solidarity had identified as occurring in the Tampa area. The records showed that Miranda Amores, Portes and their coconspirators used stolen and counterfeit credit cards to make many small purchases, often at the same time, in order to avoid detection. The co-conspirators traveled to multiple retail establishments in the same area to make consecutive purchases. Most often, they purchased gift cards with the stolen credit or debit card numbers. The co-conspirators used stolen credit and debit card numbers from victims without their knowledge, most of whom lived out of state.

In total, law enforcement identified more than a dozen financial institutions and retailers, including Sears, Macy's and JC Penney, who were defrauded by Miranda Amores, Portes and their conspirators for a total actual loss of $59,897.84. The government estimates the intended loss (based upon the credit limits of the stolen, counterfeit and unauthorized credit cards) amounts to be approximately $521,914.73. Law enforcement also identified more than 50 victims of identity theft as a result of this scheme.

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

Orlando, Florida - Chief U.S. District Judge Anne C. Conway sentenced Rodney A. Lick (42, Orlando) today to 20 years in federal prison for distributing and possessing child pornography. The court also ordered Lick to serve a life term of supervised release and to register as a sex offender. Lick was also ordered to forfeit his interest in the computers that he used to commit the offenses. He pleaded guilty on June 13, 2012.

According to court documents, Lick distributed videos depicting the violent, sexual abuse of infant and toddler boys to several undercover law enforcement agents. In December 2011, Lick communicated with an officer acting in an undercover capacity and arranged to have sex with the officer’s fictional six and ten-year-old stepsons. In March 2012, agents executed a search warrant at Lick’s home and found more than 500 images and 97 videos showing the sexual abuse of prepubescent boys on his computer. The agents also located chat conversations where Lick encouraged others to sexually abuse their children. Lick, a truck driver, admitted that he had been distributing child pornography for at least three years.

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."

Fort Myers, Florida - United States Attorney Robert E. O'Neill announces that Frederick R. Green pleaded guilty today to one count of false claims against the government, one count of possession of 15 or more unauthorized access devices, and one count of theft of government money. He faces a maximum penalty of 5 years in federal prison for the false claims charge. He faces up to 10 years in federal prison for each of the other charges.

According to the plea agreement, on or about January 20, 2012, Green knowingly filed a false federal income tax return using the name of E.P. He made a fraudulent claim to the IRS for an income tax refund in the amount of $9,913. The IRS confirmed that on January 20, 2012, EP’s return was prepared, received and processed by the IRS and a refund in the amount of $9,913 was applied to a Bancorp debit card.
The Internal Revenue Service conducted additional research and determined that more than 70 returns were filed from the same IP address used by Green on January 20, 2012.

A search warrant was executed at Green’s residence on July 12, 2012. During the execution of the warrant, Green was found to be in possession of 25 debit cards in other peoples’ names. Agents also recovered sheets of personal identifying information and more than $10,000 in cash.

During an interview with law enforcement, Green stated that he started filing returns for refunds after someone in Tampa showed him the potential money involved. Green said that he continued to file returns into 2012.

From at least January 20, 2012 through July 12, 2002, Green knowingly and willfully stole and converted to his own use money that belonged to the United States. The amount of the returns filed from the Green’s totaled more than is $648,000. From the fraudulent claims for income tax refunds, Green received payment for $311,746.

This case was investigated by the United States Secret Service, the Lee County Sheriff's Office and the Collier County Sheriff's Office as part of the United States Secret Service Southwest Florida Financial Crimes Strike Force, and the Internal Revenue Service. It is being prosecuted by Assistant United States Attorney Yolande G. Viacava.

Orlando, FL - United States Attorney Robert E. O'Neill announces that Hosmel Barona-Cardona (41, Miami) pleaded guilty to access device fraud. Barona-Cardona faces a maximum penalty of 10 years in federal prison and a fine of up to $250,000.

According to the plea agreement, between November 14, 2009 and November 30, 2011, Barona-Cardona used counterfeit credit cards, with stolen credit card numbers, at retail stores and other businesses in Florida, Georgia, Kentucky, Indiana, Tennessee, Virginia, Maryland, Ohio, and Michigan. These credit cards were created to appear as legitimate Discover, MasterCard, Visa, and American Express cards. These counterfeit credit cards contained stolen credit cards numbers. Over the course of the scheme, Barona-Cardona used more than 100 stolen credit card numbers and fraudulently obtained $155,452.77.

This case was investigated by the United States Secret Service and the St. Cloud Police Department. It is being prosecuted by Assistant United States Attorney Christopher LaForgia.

Tampa, FL - U.S. District Judge James D. Whittemore earlier this week sentenced Jose Rivas (61, Colombia) to 20 years in federal prison for conspiracy to possess with intent to distribute cocaine while onboard a vessel subject to the jurisdiction of the United States. Rivas pleaded guilty on December 17, 2012.

According to court documents, Rivas and a co-conspirator departed Colombia in a vessel smuggling 568 kilograms of cocaine. On August 14, 2012, Rivas and his co-conspirator were interdicted by the United States Navy and United States Coast Guard in the international waters of the Caribbean Sea.

“Homeland Security Investigations and our law enforcement partners who participate in the Panama Express North Strike Force will continue to use all available resources to dismantle narcotics trafficking organizations and prevent the introduction of cocaine into our communities,” said Susan McCormick, special agent in charge of Homeland Security Investigations Tampa.

This case was investigated by the Panama Express North Strike Force, a standing Organized Crime Drug Enforcement Task Force (OCDETF), comprised of agents and analysts from the Federal Bureau of Investigation, the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, United States Coast Guard Investigative Service, Naval Criminal Investigative Service, and U.S. Southern Command's Joint Interagency Task Force South. It was prosecuted by the United States Attorney’s Office for the Middle District of Florida.

Fort Myers, Florida - U.S. Attorney Robert E. O'Neill announces that a federal jury today found Dr. Stephen M. Lovell (55, Windermere) guilty of conspiracy to commit health care fraud. He faces a maximum penalty of 20 years in federal prison. His sentencing hearing is scheduled for June 10, 2013.

Lovell was indicted in February 2012, along with his co-conspirators Joanna Capote (24, Cape Coral), Francisco Huici Fernandez (40, Cape Coral), Ernesto Diaz (31, Cape Coral), Karen Carmona Jackson (30, Lake Wales), Jeanine Lastres Huici (42, Cape Coral), Marylda Santana (22, Cape Coral), Sonia Arroyo (53, Cape Coral), and Indra Lemus Castellanos (20, Cape Coral). Each of the co-conspirators previously pleaded guilty for their roles in this case.

According to testimony presented at trial, Xtreme Care Rehabilitation Center Inc. (“Xtreme Care”) was operating in Cape Coral as an unlicensed health care clinic since 2009. The State of Florida licensing requirements were circumvented by the conspirators as a result of the purported exclusive ownership of these clinics by licensed health care practitioners, including licensed chiropractor Dr. Stephen M. Lovell. As a result of the purported ownership of the clinics by a licensed health care practitioner, these clinics avoided greater regulatory scrutiny. In actuality, other conspirators including Francisco Huici Fernandez and Ernesto Diaz were the true owners of the clinics.

In furtherance of the health care fraud, the conspirators recruited individuals who purported to be involved in staged accidents and received injuries. These recruited individuals would go to Xtreme Care in exchange for payment. Xtreme Care then billed insurance companies by submitting false claims, through the mail, for purportedly medically necessary treatments that these patients received. However, as the indictment alleged, treatment was either never provided to these patients or was not medically necessary. Upon payment by the insurance company, the proceeds of the fraudulent activity were then transferred to corporations created by the conspirators to launder the proceeds of the criminal activity. Ultimately, the conspirators received the benefits of the fraudulent activity through payments or expenditures for themselves from the corporate bank accounts.

This case was investigated by the Cape Coral Police Department, the Internal Revenue Service Criminal Investigation, the United States Secret Service, Hialeah Police Department, City of Miami Police, Florida Department of Financial Services, along with the assistance of the National Insurance Crime Bureau. It is being prosecuted by Assistant United States Attorney Jesus M. Casas.

Tampa, Florida - United States Attorney Robert E. O'Neill announces the return of an indictment charging Emir Peron (31,Seffner) and Roger Gary Driggers (60, Lakeland) with conspiracy to distribute 50 grams or more of methamphetamine. Peron also faces three counts of possession of a firearm in furtherance of a drug trafficking crime. If convicted on all counts, Peron and Driggers each face a maximum penalty of life in federal prison. If convicted, Peron also faces a mandatory minimum penalty of 55 years in federal prison on each of the firearm counts. The indictment also notifies Peron that the United States intends to forfeit six firearms which were seized during the course of the investigation. Peron and Driggers were indicted on February 13, 2013. The arraignment hearing was held today.

According to the indictment, from an unknown date and continuing until approximately January 29, 2013, in Hillsborough County, Peron and Driggers conspired with each other and others to distribute and possess with intent to distribute 50 grams or more of methamphetamine. According to a criminal complaint filed earlier in the case, Peron also sold guns to an undercover agent, including a Saiga semi-automatic assault rifle, an M-11 9mm semi-automatic pistol, and a .357 magnum revolver, in addition to quantities of crystal methamphetamine.

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 Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Drug Enforcement Administration (DEA), and the Hillsborough County Sheriff's Office. It will be prosecuted by Assistant United States Attorney Patrick Scruggs.

Tampa, Florida - United States Attorney Robert E. O'Neill announces the return of an indictment charging Lydia Santiago (38, Bartow) with conspiracy to distribute and possession with intent to distribute 500 grams or more of methamphetamine. Santiago also faces one count of being a felon in possession of a firearm. If convicted on all counts, she faces a maximum penalty of life in federal prison. The indictment also notifies Santiago that the United States intends to forfeit various vehicles and currency seized during the course of the investigation.

According to the indictment, from an unknown date and continuing until approximately February 19, 2013, in Polk County, Santiago possessed and conspired with others to distribute 50 grams or more of methamphetamine and 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Law enforcement also located a Ruger model SR40c .40 caliber handgun was inside her Bartow home. As a previously convicted felon, Santiago is prohibited from possessing a firearm or ammunition under federal law.

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 Drug Enforcement Administration (DEA) and the Polk County Sheriff's Office. It will be prosecuted by Assistant United States Attorney Patrick Scruggs.

Tampa, FL - U.S. District Judge Elizabeth A. Kovachevich sentenced Raymond Roland Collette (40, St. Petersburg) last week to 14 years in federal prison for using his computer to solicit and arrange for sex with a four-year-old child. The court also ordered Collette to forfeit the computer he used to commit the offense. Collette pleaded guilty on November 20, 2102.

According to court documents, between March 2012 and July 2012, Collette posted an advertisement on craigslist seeking a person that would allow him to engage in acts related to his sexual fetish involving shoes. Collette began communicating online with a citizen identified as “KK.” During the chats, “KK” discussed that he had a girlfriend with a four-year-old daughter, identified as “C.” Collette then directed his attention to the child and began discussing his desires to obtain custody of “C,“ and engage in sex acts with her. Once Collette turned the chat toward sex with the child, “KK” alerted law enforcement. Subsequently, Collette unknowingly continued his conversations with an undercover detective. During the online conversations, Collette suggested that he and “KK” swap children for sexual purposes. Collette also chatted about how he would enjoy watching the children engage in sex acts with each other.

This case was investigated by the Pinellas County Sheriff's Office and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) as part of their joint effort on the Internet Crimes Against Children Task Force. It was prosecuted by Assistant United States Attorney Amanda C. Kaiser.

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, 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."

Orlando, FL - U.S. District Judge Roy Dalton sentenced James Lewis, a/k/a James Lee Lewis, (44, Kissimmee) today to five years and five months in federal prison for mail fraud and aggravated identity theft. Lewis pleaded guilty on December 18, 2012.

According to court documents, in March 2009, Lewis fraudulently obtained a temporary occupational therapist (OT) license from the Florida Department of Health. To obtain the temporary license, Lewis used a false name and Social Security Number, and fabricated his education credentials. Between March 2009 and July 2011, Lewis worked as an OT at various health care facilities in Central Florida and New Mexico, and received his wages using Electronic Funds Transfers. On January 17, 2013, Lewis’ bond was revoked after the government discovered that he had again applied to work as an occupational therapist in Central Florida, using fraudulent information.

This case was investigated by the Federal Bureau of Investigation, the Florida Department of Law Enforcement, and the Florida Department of Health’s Division of Medical Quality Assurance, Orlando Unlicensed Activity Office. It was prosecuted by Assistant United States Attorney David Haas.

Jacksonville, FL - Yesterday, a federal jury found Frank Higginbotham (36, Hastings) guilty of one count of conspiracy to manufacture methamphetamine and one count of distribution of methamphetamine. For the conspiracy offense, Higginbotham faces a mandatory minimum sentence of 10 years, up to life in federal prison. He faces up to 20 years in federal prison for the distribution charge. A sentencing hearing has been scheduled for June 3, 2013. Higginbotham was indicted on August 2, 2012.

According to testimony and evidence presented at trial, 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.

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

Orlando, Florida - Senior U.S. District Judge G. Kendall Sharp sentenced Douglas Wayne Bartle, III, also known as Ridgely Douglas Bartle and Douglas Wayne Bartle, Jr., (49, Winter Park) to 20 months in federal prison for wire fraud. The court also ordered Bartle to pay $862,770.12 in restitution to his victim. Bartle pleaded guilty on November 27, 2012.

According to court documents, in 2004 Bartle and others opened a title insurance company named Vision Title. Vision Title had offices in various counties throughout Florida. The offices were formed as Florida limited liability companies (Vision LLCs). In 2009, to cover living and other personal expenses, Bartle embezzled money from Vision Title’s escrow account. To ensure that Vision Title’s insurance underwriters were unaware of the theft, Bartle used a computer in Orange County, Florida, to access the Internet and obtain bank statements on computer servers in North Carolina. Bartle then altered those bank statements and provided copies to Vision Title’s insurance underwriters. These fraudulent bank statements prevented the insurance underwriters from detecting the fraud and caused the insurance underwriters to allow Vision Title to stay in business. As Vision Title continued to operate, Bartle was able to steal more money. Because of Bartle’s actions, Vision Title had insufficient funds to cover claims that could have been made on title insurance issued by Vision Title. When law enforcement detected the fraud, Vison Title offices throughout Florida were immediately shut down. Vision Title employees lost their jobs with no advance notice. In total, Bartle embezzled approximately $1.1 million.

This case was investigated by the Federal Bureau of Investigation and the Florida Department of Insurance Fraud. It was prosecuted by Assistant United States Attorney Vincent A. Citro.

Orlando, FL - U.S. District Judge Charlene E. Honeywell sentenced three individuals for their roles in a conspiracy to defraud the government. Eliseo Dela Rosa (38, Orlando) was sentenced to 15 months in federal prison, Ana Torres (27, Kissimmee) was sentenced to two years' probation and Ada Lopez (39, Orlando) was sentenced to six months' home confinement as a condition of four years of probation. All three pleaded guilty on November 16, 2012.

According to court documents, the Internal Revenue Service discovered that Dela Rosa and others fraudulently received IRS refunds and stimulus checks. They then cashed or deposited the checks at Bank of America. Torres and Lopez worked as bank tellers at Bank of America. Between May 2007 and July 2008, Dela Rosa took several Treasury checks to Lopez and Torres. Lopez and Torres would either cash or deposit the checks into another individual's Bank of America checking account. The women would then give the money to Dela Rosa or one of his runners who dropped off the checks for him.

Lopez cashed checks for Dela Rosa and received payment for each check she cashed. All checks already had been endorsed before Lopez received them. If a check was not endorsed, Lopez would give the check back to Dela Rosa who would bring the check back later. Lopez cashed about $244,000 in checks.

Between May 2, 2007, and September 11, 2007, Torres also deposited Treasury checks received from Dela Rosa or his runners. She cashed a total of approximately $46,000 in checks. Torres withdrew her fee for cashing the checks and gave the remainder of the proceeds to Dela Rosa.

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

Tampa, Florida - United States Attorney Robert E. O'Neill announces the unsealing of an indictment charging Mehdi Babul (58) and Isam Nasser (30) with one count each of conspiracy to defraud the United States and to commit wire fraud, five counts of wire fraud, and five counts of food stamp fraud. If convicted of the conspiracy charge, Babul and Nasser each face a maximum penalty of five years in federal prison. For each wire fraud count, they face a maximum penalty of twenty years in federal prison. And, if convicted, they each face up to one year in federal prison for each of the food stamp fraud charges.

According to the indictment, Babul owned and operated Hungry Baba, LLC, a convenience store located in St. Petersburg. Isam Nasser was a clerk at Hungry Baba. During the time frame of the alleged conspiracy, Hungry Baba was a participant in the Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program. From November 2008 through April 2010, Babul, Nasser, and others allegedly conspired and schemed to cheat SNAP by purchasing SNAP benefits from Hungry Baba customers. They exchange the benefits for cash, minus a fee of approximately 50% of the total amount charged to the individual recipient’s SNAP account. This is an illegal practice known as “discounting” or “cash-back.”

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, the United States Department of Agriculture, Office of the Inspector General, the Florida Department of Law Enforcement, and the St. Petersburg Police Department. It is being prosecuted by Assistant United States Attorney Matthew J. Mueller.

Orlando, Florida -U.S. District Judge Charlene Edwards Honeywell sentenced Wilfred Reginald Breuer (50, Port Orange) to 7 years and six months in federal prison for receipt and possession of child pornography. The court also ordered Breuer to forfeit the computer he used to receive the child pornography and to serve a ten year term of supervised release following his incarceration. Breuer pleaded guilty on November 28, 2012.

According to court documents, Breuer received child pornography using a Peer to Peer shared directory. Breuer admitted to downloading child pornography images and videos for more than five years. A forensic examination of Breuer’s computer discovered 1,456 images and 343 movies of involving the sexual exploitation of prepubescent children.

The 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."

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

Orlando, Florida - U.S. District Judge John Antoon, II, sentenced Omar O'Neill Lewis last week to 57 months in federal prison for possession of a firearm by an illegal alien. He pleaded guilty to the charge on August 13, 2012.

According to court documents, an Orange County Sheriff’s deputy observed Lewis attempting to conceal a handgun under a parked car in a parking lot. The handgun was recovered and identified as a FN Herstal 5.7 mm. The gun was loaded with a round in the chamber and 16 rounds in the magazine. Lewis was arrested for carrying a concealed weapon. At the time of his arrest, Lewis identified himself to deputies using a fictitious name. He also produced an illegally obtained Florida identification card and Florida driver's license. Through a search warrant for the collection of DNA samples, the Florida Department of Law Enforcement’s laboratory in Orlando confirmed the DNA collected from the firearm matched DNA collected from Lewis.

Lewis was later identified as a national and citizen of Jamaica. On April 3, 2001, an immigration judge had ordered Lewis removed from the United States. He was physically removed from the United States on June 28, 2001. Lewis reentered the United States on or about July 25, 2005, without the permission of the Attorney General or Secretary of the Department of Homeland Security. He was physically removed again on February 23, 2006. Lewis made other attempts to enter the United States using fictitious identities. On October 5, 2009, in the Southern District of Florida, Lewis was sentenced to 46 months’ imprisonment for illegal re-entry. On May 25, 2010, he was sentenced to 19 months’ imprisonment for false impersonation of a United States citizen.

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

Jacksonville, FL - U.S. Attorney Robert E. O’Neill announces the return of a multi-count indictment charging Estella D. Wright and Dorian D. Wright, both of Brunswick, Georgia, with conspiracy to defraud the government and theft of public money. Estella Wright is also charged with seven counts of aggravated identity theft. The Wrights were both arrested today in Brunswick. If convicted, Estella D. Wright faces a maximum penalty of up to 10 years in federal prison for the conspiracy charge, and for each of the seven theft of public money charges. She faces two consecutive years’ imprisonment for the seven aggravated identity theft counts. If convicted, Dorian Wright faces up to 10 years’ in federal prison for the conspiracy charge and each of the two theft public money charges.

According to the indictment, between March 2007 and April 2010, the Wrights conspired with an inmate in the custody of the Florida Department of Corrections to defraud the Internal Revenue Service through the filing of false federal income tax returns. The alleged conspiracy involved using the names, forged signatures and social security numbers of others. The indictment further alleges that Estella Wright obtained the names and social security numbers through her employment at a temporary staffing agency.

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.

Orlando, FL - U.S. District Judge G. Kendall Sharp today sentenced Dale Anthony Borders (38, Orlando) to two years and six months in federal prison for trafficking in counterfeit DVDs bearing the trademarks of Beachbody, LLC, Disney Enterprises, Inc., and Zumba Fitness, LLC. Borders pleaded guilty on November 29, 2012.

According to court documents, between March 26, 2009, and August 26, 2011, Borders used his company, 5A Novelty, to import counterfeit DVDs bearing counterfeit Disney, Zumba, and Beachbody trademarks into the United States. During that time, according to U.S. Customs and Border Patrol Protection (CBP), approximately 80 parcels containing counterfeit items had been shipped to Borders.

In March 2011, Beachbody served Borders and 5A Novelty notice that 5A Novelty was not a designated or approved retailer or distributor of Beachbody products. Beachbody also advised 5A Novelty of the copyright laws that prevent the unauthorized use of trademarks. Beachbody and eBay shut down the 5A Novelty website three times. Each time, Borders reestablished the website.

On August 18, 2011, CBP officers in Cleveland, Ohio, seized one box of counterfeit Beachbody exercise DVD boxed sets addressed to Borders' Orlando residence. Agents subsequently interviewed Borders at his residence, at which time Borders gave agents counterfeit Beachbody and Zumba exercise DVDs. Borders told the agents that he did not have any more DVDs or counterfeit items and did not have any pending orders. However, on August 29, 2011, during an inspection by a special agent with U.S. Immigration and Customs Enforcement's Homeland Security Investigations at the Orlando DHL distribution hub, two boxes of counterfeit Beachbody and Zumba exercise DVD boxed sets (60 units), intended for Borders, were seized. The shipping invoice listed the shipment as "Teaching Materials" and "Learning Materials."

This case was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI). It was prosecuted by Assistant United States Attorney David Haas.

Tampa, FL - U.S. District Court Judge Virginia M. Hernandez Covington today sentenced Jonathan Oner (28, Lakeland) to a term of 6 years and eight months in federal prison for possession of a firearm by a convicted felon and felony possession of marijuana. Oner pleaded guilty to the offenses on November 16, 2012.

According to testimony and evidence presented at the plea hearing and sentencing, Oner was arrested by Lakeland Police officers in the early morning hours of July 15, 2012 after the officers responded to a shots fired call at a Lakeland apartment building. When the officers arrived at that location, they observed Oner, who began fleeing from them. Upon pursuing and catching Oner, the police found him to be in possession of a Llama 9mm pistol, loaded with 8 rounds of ammunition and a quantity of marijuana. Previously, Oner been convicted of a number of felony offenses and had not had his right to possess a firearm restored. As such, he was prohibited from possessing a firearm or ammunition under federal law.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), with assistance from the Lakeland Police Department. It was prosecuted by Assistant United States Attorney Jay 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.

Tampa, Florida - U.S. District Judge Virginia M. Hernandez Covington today sentenced Jimmy Samir Mendoza-Valle (20, Honduras) to 15 months in federal prison for obstruction of justice and perjury charges. Mendoza-Valle pleaded guilty on November 30, 2012.

According to court documents, in June 2012, Mendoza-Valle was one of fourteen defendants in a federal drug-trafficking conspiracy case in the Middle District of Florida. A week prior to trial, Mendoza-Valle filed a motion to dismiss the indictment. The principal contention of his motion was that Mendoza-Valle was actually a minor and, accordingly, the United States should dismiss the indictment.

During the hearing on the motion before U.S. District Judge James S. Moody, Jr., on June 4, 2012, Mendoza-Valle lied under oath and claimed that he had been born on December 10, 1994, and that he was 17 years old. During the hearing, his counsel also offered into evidence a copy of a Honduran birth certificate of Mendoza-Valle, purportedly filed in 1993, reflecting a birth date of December 10, 1994. Subsequent evidence, including a legitimate birth certificate introduced by the United States on June 5, 2012, showed that Mendoza-Valle’s true date of birth was December 10, 1992, and that he was in fact 19 years old on June 4, 2012. At the conclusion of the hearing, Judge Moody ruled that the birth certificate offered by the government was Mendoza-Valle’s true birth certificate.

Mendoza-Valle has since admitted that he lied as to his true age and submitted a false birth certificate to the court during the hearing on June 4, 2012. By attempting to portray himself as a juvenile during that hearing, he admits to erroneously and falsely attempting to influence the hearing in an effort to get the charges against him dismissed.

This case was investigated by the Panama Express Strike Force, an OCDETF funded operation targeting maritime smuggling. Participating agencies include the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the United States Coast Guard Investigative Service (CGIS), the Joint Interagency Task Force - South (JIATFS), and the United States Marshals Service. It was prosecuted by Assistant United States Attorney Matthew Jackson and former Special Assistant United States Attorney Austin Shutt.

Tampa, FL - U.S. District Judge James S. Moody today sentenced Dean Counce (42, Brooksville) president and founder of American Mortgage Field Services, LLC (AMFS), to 8 years and one month in federal prison for conspiracy to commit wire fraud. The court also ordered Counce to forfeit his interest in real estate and jewelry, which are traceable to proceeds of the offense. In addition, the court entered a money judgment in the amount of $12,774,102, which are the proceeds of the conspiracy. Counce pleaded guilty on September 14, 2012.

According to the plea agreement, Counce owned American Mortgage Field Services, LLC (AMFS). AMFS performed preservation and inspection work for homes in various phases of foreclosure, including homes that were owned by government entities such as Fannie Mae, Freddie Mac, and the Federal Housing Administration (FHA). The government entities paid servicing lenders, such as Bank of America, to protect and maintain their properties. Beginning in or around 2007, in order to protect the investments and to prevent unnecessary deterioration that may result from neglect or vandalism, some of these servicing lenders retained Counce’s company to conduct periodic inspection of government-owned or insured properties.

Each month, the servicing lenders would send Counce and AMFS a list of properties that required inspection. Counce performed some inspections personally and, as the business grew, he hired others to assist and eventually take over the inspection process. These inspections required Counce and other AMFS employees to visit a property, fill out an inspection report, and take photographs. Counce and others then compiled these inspection reports and transmitted them electronically to the servicing lender. The servicing lenders then paid Counce and AMFS a fee per inspection.

As the real estate market declined in Florida and throughout the country, Counce and AMFS began to receive an increasing number of requests for inspections on properties in foreclosure, the mortgages for most or all of which were owned or insured by Fannie Mae, Freddie Mac or FHA. The requests far exceeded Counce’s or AMFS’s capacity to deliver. As a result, Counce and other AMFS employees began fabricating inspection reports.

In total, between 2007 and 2009, Bank of America remitted $4,490,398.87 to Mid-Florida Home Securing (later known as AMFS) and, between 2009 and 2012, Bank of America paid AMFS $19,044,973.06 for inspections, a large percentage of which were never actually performed. As a result of this fraud, Counce and AMFS managed to keep overhead and expenses low and profits high, resulting in net profits to Counce of up to $1 million in a single month. Based on employee reports of fabrication rates, the government estimates the loss in this case to be approximately $12,774,102.

This case was investigated by the Federal Housing Finance Agency Office of Inspector General, Department of Housing and Urban Development Office of the Inspector General, and the United States Secret Service. It was prosecuted by Assistant United States Attorney Mandy Riedel.

Jacksonville, Florida - United States Attorney Robert E. O'Neill announced today the return of an indictment charging Denny Junior Jenkins (41, Live Oak) with failing to register as sex offender in the State of Florida after traveling from South Carolina. Jenkins faces up to 10 years in federal prison and a $250,000 fine. An arraignment and detention hearing are scheduled for February 22, 2013, at 10:00 a.m. before United States Magistrate Judge Monte C. Richardson.

According to the indictment, on September 4, 1992, Jenkins was convicted of committing two sex offenses in Florida. Subsequent to his conviction, between March 2012 and September 2012, Jenkins traveled from South Carolina to Florida, where he has since resided. Jenkins allegedly failed to register as a sex offender as required by the Sex Offender Registration and Notification Act.

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

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, 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."

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

Tampa, Florida - United States Attorney Robert E. O'Neill announces that Ieshia Jordan (27, Tampa) pleaded guilty today to conspiracy and wrongful disclosure of health information. Jordan faces a maximum penalty of 5 years in federal prison for the conspiracy charge and up to 10 years in prison on the wrongful disclosure of health information charge.

According to the plea agreement, Jordan stole identifying information of individuals, including names and social security numbers, from her former employer, Intermedix Corporation. Intermedix is a medical billing company that assists fire departments and emergency medical service providers across the county in billing for their medical services.

In September 2012, during the execution of search warrants at several locations, records from Intermedix were found. Intermedix traced the records back to Jordan. When interviewed by law enforcement, Jordan admitted that she accessed the records at her work place, without authorization, in order to generate the information needed to file fraudulent tax returns and obtain tax refunds. Jordan said she then gave the records to others to sell and use to file fraudulent tax returns. Jordan also stated she was paid for her role in the scheme.

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

Tampa, Florida - United States Attorney Robert E. O'Neill announces the unsealing of an indictment charging Jermell C. Hickman and Ebonie Hampton, both of Tampa, with one count of conspiracy, four counts of wire fraud, twelve counts of filing false claims, ten counts of theft of government property, and ten counts of aggravated identity theft. If convicted on all counts, each face a maximum penalty of 5 years in federal prison on the conspiracy charge, up to 20 years in prison for each wire fraud charge, up to 5 years imprisonment for each charge of filing false claims, and up to 10 years in prison for each offense of theft of government property, all of which to be followed by up to 2 years imprisonment for each count of aggravated identity theft. The Indictment also notifies both individuals that the United States is seeking a money judgment in the amount of $288,607.25, the proceeds of their scheme to defraud.

According to the indictment, Hickman and Hampton engaged in a conspiracy with each other, from at least as early as January 2012 through October 2012, to file fraudulent tax returns using stolen identity information of other individuals in order to obtain tax refunds.

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 Sara C. Sweeney.

Tampa, Florida - U.S. District Judge Steven D. Merryday today sentenced Jermaine Lee Lippett to 5 years and five months in federal prison for conspiracy, theft of government funds, and aggravated identity theft. Lippett was also ordered to forfeit $96,805.12 and to pay restitution to the Internal Revenue Service in the amount of $96,553.12. Lippett pleaded guilty on November 2, 2012.

According to court documents, Lippett orchestrated a scheme to convert the proceeds of fraudulently-acquired federal tax refund checks through legitimate accounts held at the MidFlorida Federal Credit Union. Lippett, acting in complicity with several account holders and a credit union teller, caused fraudulent tax refund checks to be negotiated through legitimate accounts. He then shared the proceeds with the teller and account holders.

This case was investigated by the United States Postal Inspection Service, the Florida Department of Law Enforcement, and the Internal Revenue Service Criminal Investigation. It was prosecuted by Assistant United States Attorney Robert Monk.

Tampa, FL - U.S. Attorney Robert E. O'Neill announces that a federal jury yesterday found Michael M. Rucker (34, St. Petersburg), a/k/a Bryan Houston, a/k/a Idris Williams guilty of being a convicted felon in possession of a firearm and ammunition and possession with intent to distribute crack cocaine and marijuana within 1,000 feet of a school. Because of his criminal history, Rucker faces a maximum penalty of 70 years in federal prison. His sentencing hearing is scheduled for May 6, 2013.

Rucker was indicted on June 28, 2012. According to evidence presented at trial, on May 15, 2012, the St. Petersburg Police Department Vice and Narcotics Unit executed a search warrant at Rucker's residence located at 1806 9th Avenue South in St. Petersburg. During the execution of the search warrant, officers located two fully loaded handguns in Rucker's bedroom, crack cocaine under a couch, marijuana, and tools of the drug trade commonly used to make and sell crack cocaine. The residence is located within 1,000 feet of both a middle school and daycare center. As a previously convicted felon, Rucker is prohibited from possessing firearms or ammunition under federal law.

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

It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy led by ATF. 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.

Orlando, Florida - U.S. District Chief Judge Anne C. Conway today sentenced Phillip Beyel (28, Cocoa) to 27 years in federal prison for soliciting a minor to have sex and production of child pornography. The court also ordered Beyel to forfeit an Apple iPhone, which he used to facilitate the offenses. Beyel pleaded guilty on September 25, 2012.

According to court documents, on December 31, 2011, Beyel sent a text message from his iPhone, to the minor victim’s iPhone, soliciting the minor victim to engage in sex. After sending the text message, Beyel went to the minor victim’s home, from where they then went to a nearby hotel. Once inside the hotel room, Beyel had sex with the minor and also produced a video of himself engaging in sex with the minor.

On January 1, 2012, during a controlled telephone call between the minor victim and Beyel, they discussed the sexual activity which had taken place on December 31, 2011. During that call, Beyel told the minor victim that if the minor had to go to the doctor, not to say that the injury was caused by the two of them having sex.

A forensic examination of Beyel’s iPhone recovered several videos and photographs depicting sexual acts between Beyel and the minor victim, including the one made on December 31, 2011.

“Homeland Security Investigations and our law enforcement partners are determined to find and arrest individuals who prey on minors,” said Susan McCormick, special agent in charge of Homeland Security Investigations Tampa, which oversees the agency’s Cocoa Beach office that investigated this case. “Child exploitation is one of the most heinous crimes we investigate, and I assure you, we will make sure these predators are prosecuted to the fullest extent of the law.”

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 Assistant United States Attorney Carlos A. Perez-Irizarry.

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."

Tampa, Florida - U.S. District Judge James S. Moody, Jr. today sentenced Mario Cabrera (34, Clearwater) to 24 months in federal prison for immigration document fraud. The court also ordered him to forfeit electronics and computer equipment, which were used to commit the offense. Cabrera pleaded guilty on November 26, 2012.

“When Homeland Security Investigations special agents executed a search warrant at Mr. Cabrera’s residence, they uncovered more than 100 fraudulent documents, “ said Susan McCormick, special agent in charge of Homeland Security Investigations Tampa. “Mr. Cabrera was providing these documents to people trying to evade the legal immigration process. These individuals could be threats to public safety, or even worse, national security.”

According to court documents, Cabrera sold counterfeit documents, including driver's licenses, social security cards, and permanent resident alien cards to a confidential informant on multiple occasions.

This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Sara C. Sweeney.

Tampa, Florida - United States Attorney Robert E. O'Neill announces that Carlista Hawls pleaded guilty today to one count of conspiracy to defraud the Internal Revenue Service, wire fraud, and theft of government funds and one count of aggravated identity theft. Hawls faces a maximum penalty of 5 years in federal prison for the conspiracy charge and a consecutive 2-year mandatory minimum term of imprisonment for the aggravated identity theft charge.

According to the plea agreement, between January and August 2012, Hawls engaged in a scheme with other individuals to file false income tax returns with the IRS. The returns were filed in order to obtain fraudulent refunds to which the conspirators were not owed. The conspirators used the personal information of others to electronically file approximately 217 false and fraudulent federal income tax returns. In many cases, the individuals whose information appeared on these fraudulent filed returns did not know that Hawls and her co-conspirators were filing the returns on their behalf. In total, these 217 fraudulent returns claimed approximately $1,554,493.00 in bogus tax refunds. Ultimately, the IRS paid out $551,472.90 in refunds to the conspirators.

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

Orlando, FL - U.S. Attorney Robert E. O’Neill announced today that his office has added four new attorneys to its Orlando office. With cumulative responsibilities for federal criminal prosecutions, affirmative and civil defense, appellate, and forfeiture proceedings, the Middle District of Florida includes a geographical area encompassing thirty-five of Florida’s sixty-seven counties. Until recently, approximately 114 attorneys and 129 support staff occupied five offices (Tampa, Orlando, Fort Myers, Jacksonville, and Ocala) covering approximately one-half of the state’s population. Still, the MDFL has kept pace with similarly busy districts for the past several years, with fewer attorneys than some of its respective counterparts.

The Middle District of Florida is one of 94 federal districts across the country. The MDFL (second in population only to the Central District of California) and is one of the busiest districts in the country, consistently ranking within the top three categories for the number of civil case filings and prosecutions involving the exploitation of children (Project Safe Childhood). Impacted by a nationwide hiring freeze and normal attrition, the office has had to do more with less. Finally, to restore the district’s staffing deficit, a Department of Justice waiver allowed for the hiring of additional personnel in FY 2013.

“The caseload doesn’t stop,” said U.S. Attorney Robert O’Neill. “We have had to make some internal adjustments in order to keep pace with the increasing flow of work. During that time, our staff really stepped up to make sure that the public continued to be served. Our district is very diverse in the types of cases that we litigate. Now, with the addition of new personnel, we will be able to continue the great work throughout the district and address those cases more aggressively and effectively.”

On February 11, 2013, U.S. Chief District Judge Anne C. Conway administered the oath of office in Orlando to Shawn P. Napier, Joseph M. Schuster, Andrew C. Searle, and James D. Mandolfo.

Shawn P. Napier is assigned to the Criminal Division. Prior to joining the office, he served as a Senior Assistant Attorney General in the Office of the Ohio Attorney General. Mr. Napier graduated magna cum laude from Capital University Law School, in Columbus, Ohio, where he obtained his Juris Doctorate.  He is a graduate of the University of Central Florida where he obtained Bachelor of Arts in Political Science.

Joseph M. Schuster - He is assigned to the Criminal Division. Prior to becoming an Assistant United States Attorney, Mr. Schuster practiced as an associate with the law firm of Dechert LLP, in New York City, specializing in White Collar and Securities Litigation. He graduated with honors from New York University’s Tisch School of the Arts, where he obtained a Bachelor’s Degree in fine Arts Dramatic Writing. He obtained a Master of Arts Degree, with honors, in History of International Relations from the London School of Economics and Political Science. Thereafter, he obtained his Juris Doctorate from the Georgetown University Law Center, in Washington, DC, as a Dean’s Scholar.

Andrew C. Searle is assigned to the Criminal Division. Mr. Searle served as an Assistant District Attorney in the Trial Division of the New York County District Attorney’s Office in New York, prior to joining the office. He graduated from the University of Florida, where he obtained a Bachelor of Science in Business Administration degree in Finance.  He obtained his Juris Doctor degree from Temple University, Beasley School of Law, in Philadelphia.

James D. Mandolfo is assigned to the Criminal Division.  Before joining the office, Mr. Mandolfo practiced law with the firm of Hunton & Williams LLP, in Miami, where he represented clients in a wide array of complex securities and commercial litigation. He obtained his Juris Doctor degree, cum laude, from Fordham University School of Law, New York, NY and is a graduate of Pennsylvania State University, where he graduated with Highest Distinction and ranked first in the Political Science Department.

Tampa, FL - U.S. Attorney Robert E. O’Neill announced today that his office has added five new attorneys to its Tampa office. With cumulative responsibilities for federal criminal prosecutions, affirmative and civil defense, appellate, and forfeiture proceedings, the Middle District of Florida includes a geographical area encompassing thirty-five of Florida’s sixty-seven counties. Until recently, approximately 114 attorneys and 129 support staff occupied five offices (Tampa, Orlando, Fort Myers, Jacksonville, and Ocala) covering approximately one-half of the state’s population. Still, the MDFL has kept pace with similarly busy districts for the past several years, with fewer attorneys than some of its respective counterparts.

The Middle District of Florida is one of 94 federal districts across the country. The MDFL (second in population only to the Central District of California) is one of the busiest districts in the country, consistently ranking within the top three categories for the number of civil case filings and prosecutions involving the exploitation of children (Project Safe Childhood). Impacted by a nationwide hiring freeze and normal attrition, the office has had to do more with less. Finally, to restore the district’s staffing deficit, a Department of Justice waiver allowed for the hiring of additional personnel in FY 2013.

“The caseload doesn’t stop,” said U.S. Attorney Robert O’Neill. “We have had to make some internal adjustments in order to keep pace with the increasing flow of work. During that time, our staff really stepped up to make sure that the public continued to be served. Our district is very diverse in the types of cases that we litigate. Now, with the addition of new personnel, we will be able to continue the great work throughout the district and address those cases more aggressively and effectively.”

On February 5, 2013, U.S. District Judge Steven D. Merryday administered the oath of office in Tampa to Josephine W. Thomas, Natalie Hirt Adams, Suzanne C. Nebesky, Patrick D. Scruggs, and Michael Kenneth.

Josephine W. Thomas is currently assigned to the General Crimes Section in the Criminal Division in Tampa. She has served in the Middle District since October 5, 2009, after coming to the office on a detail from the Department of Justice Honors Program. Ms. Thomas is a graduate of Stetson University School of Law in Gulfport, from where she obtained her Juris Doctorate.  She is also a graduate of North Carolina State University, from where she obtained a degree in Textile Chemistry and graduated cum laude. 

Natalie Hirt Adams is assigned to the Asset Forfeiture Section, within the Asset Recovery and Victims Rights’ Division, in Tampa. Ms. Adams previously practiced law at the law firm of Wilmer Cutler Pickering Hale and Dorr, LLP, in Washington, D.C., where she was a Senior Associate. She attended Duke University School of Law, where she obtained her Juris Doctorate, cum laude. Ms. Adams is a graduate of Northwestern University in Evanston Illinois, where she obtained a Bachelor of Science Degree in Political Science and Theater, magna cum laude.

Suzanne C. Nebesky is currently assigned to the Financial Litigation Unit within the Asset Recovery and Victims Rights’ Division, in Tampa. Prior to joining the office, Ms. Nebesky was a litigation associate at the law firm of McRae & Metcalf, P.A., in Tampa. She attended the United States Naval Academy, in Annapolis, Maryland from 1997-1998.  She is a graduate of the Honors College at the College of Charleston, in Charleston, South Carolina, where she obtained her Bachelor of Arts Degree in Corporate Communications, cum laude.  Suzanne graduated from the University Of Florida Levin College Of Law, cum laude. 

Patrick D. Scruggs is assigned to the Narcotics Section in Tampa. His previous practice includes working in the Trial Division and the Prescription Drug Investigation Unit of the New York County District Attorney’s Office in New York City. Mr. Scruggs obtained a Bachelor of Science Degree in Foreign Service, with an International Politics Major, from Georgetown University, School of Foreign Service, from where he graduated magna cum laude, in December.  He obtained his Juris Doctor degree from Boston College Law School in Newton, Massachusetts.

Michael Kenneth serves in the Civil Division in Tampa.  Mr. Kenneth worked as an associate in the law firm of Troutman Sanders in Washington, D.C., where he represented clients in a wide assortment of complex fraud, torts, and commercial litigation cases. He obtained his Juris Doctorate from Harvard Law School.  Mr. Kenneth graduated from Yale University, cum laude with honors, where he obtained a B.A. in Ethics, Politics, and Economics.  

Orlando, FL - United States Attorney Robert E. O'Neill announces the unsealing of an indictment charging Gurudeo "Buddy" Persaud (47, Orlando) with one count of mail fraud and four counts of wire fraud. If convicted, Persaud faces a maximum penalty of 20 years in federal prison on each count.

According to the indictment, Persaud formed White Elephant Trading Company, LLC in 2007. White Elephant was a private equity fund that purportedly invested in securities on the national markets. Persaud solicited investors by telling them that he would generate profits using his trading skills and that he would make all trading decisions. Persaud guaranteed investors rates of return of 6% to 18% that were payable in a short period of time. However, Persaud used a trading strategy that was based on lunar cycles and the gravitational pull between the moon and the Earth. Furthermore, Persaud did not invest all of the money that he received from investors, but instead used money from later investors to pay earlier investors and used significant portions of the money for his own personal use. Persaud defrauded investors out of approximately $1,000,000.

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 David Haas.

Orlando, FL - United States Chief District Judge Anne Conway sentenced Rodney U. Berry (43, Orlando) today to 15 years in federal prison for possession of a firearm by a convicted felon. Berry pleaded guilty to the charge on September 6, 2012.

According to court documents, on May 21, 2012, Berry met with a Bureau of Alcohol, Tobacco, Firearms, and Explosives Alcohol (ATF) undercover agent (UC) in the parking lot of Boardwalk Bowling Alley on East Colonial Drive in Orlando. Berry met with the UC and handed the UC a Smith & Wesson handgun in exchange for 50 Roxicodone pills. Berry was subsequently apprehended.

Berry has ten prior felony convictions. As a previously convicted felon, he is prohibited from possessing either firearms or ammunition under federal law. According to court documents, his previous convictions include assault with a dangerous weapon, grand theft of a motor vehicle, fleeing or attempting to elude a law enforcement officer, distribution of cocaine, and possession of a firearm by a convicted felon. These prior felony convictions qualified Berry as an Armed Career Criminal.

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

It is another case prosecuted as a part of the Department of Justice's "Project Safe Neighborhoods" program - a nationwide, gun-violence reduction strategy led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). United States Attorney Robert E. O'Neill, along with Julie Torres, Special Agent in Charge, ATF Tampa Field Division, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.

Jacksonville, Florida - A federal jury yesterday found Paul S. Kruse (59, Jacksonville) guilty of conspiracy, wire fraud, attempting to murder a government witness, and murder-for-hire. Kruse faces a maximum penalty of 20 years in prison on the conspiracy conviction, 20 years for each wire fraud conviction, 30 years for attempting to kill a government witness, and 10 years for his murder-for-hire plot. Kruse's sentencing hearing is scheduled for June 19, 2013.

Kruse was initially indicted in April 2012. A second superseding indictment was filed on November 1, 2012.

According to the evidence presented at trial, beginning in 2010, Kruse and his brother conspired to recruit and defraud a number of clients to whom they provided financial advisory services. Although Kruse and his brother had been licensed financial advisors for decades, at the time of the scheme, both were unlicensed. As part of the scheme, Kruse established a sham investment firm called "Yorkshire Financial Services." Along with his brother, they convinced their clients, a number of which were retirees, to move their individual retirement accounts ("IRAs") to Yorkshire. Kruse and his brother deceptively told clients that Yorkshire had been in business for more than 30 years, had a staff of experienced securities traders, and traded in a combination of stocks, bonds, and currencies appropriate for IRAs. In reality, Kruse did not invest the investors' funds. Rather, he spent the investors' money on luxury cars, home improvements, personal items, and made hundreds of thousands of dollars in cash withdrawals.

In early 2011, Kruse hired a personal assistant who witnessed Kruse's conduct, which included forging investor signatures, not engaging in investment activity, and lavish spending of investors' money. While Kruse was out of town, the assistant took the documents from the Yorkshire scam to the Federal Bureau of Investigation. In early 2012, Kruse approached the FBI and provided a voluntary written confession of his guilt in running an investment fraud scheme.

After Kruse's confession, his co-conspirator brother committed suicide. Kruse was subsequently held in custody on pre-trial detention. While in jail, Kruse hired hitmen to murder his former personal assistant. The assistant was scheduled to be a government witness. Kruse stated that he wanted the former assistant killed to prevent her from testifying, and to avenge his brother's death. Kruse also hired the hitmen to rob and kill two former business partners, whom Kruse contended had cheated him. Unbeknownst to Kruse, the hitmen were undercover federal agents.

This case was investigated by the FBI and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney Mark B. Devereaux and Trial Attorney Ryan Rohlfsen, with the U.S. Department of Justice, Criminal Division, Fraud Section in Washington, D.C.

Tampa, Florida - United States Attorney Robert E. O'Neill announces that Tanya Cullens today pleaded guilty to one count of conspiracy to defraud the Internal Revenue Service, wire fraud, theft of government funds, and one count of aggravated identity theft. She faces a maximum penalty of 5 years in federal prison for the tax fraud conspiracy and a consecutive 2-year mandatory minimum term of imprisonment for the aggravated identity theft charge.

According to the plea agreement, in 2012, Cullens was a member of the cleaning staff at University Community Hospital. On January 17, 2012, Cullens stole a patient list from the hospital. The list contained the names, dates of birth, and social security numbers of 48 patients who had been treated at University Community Hospital.

Shortly after stealing the patient list from the hospital, Cullens provided the list to her friend and co-conspirator, who used the list to file fraudulent tax returns with the IRS. None of the individuals whose personal information appeared on the fraudulently filed tax returns knew that the conspirators were filing the returns on their behalf. In total, ten fraudulent tax returns were filed by the conspirators, totaling approximately $79,204 in bogus tax refunds. Ultimately, the IRS paid out $44,080.00 in refunds to the conspirators.

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

Fort Myers, FL - U.S. District Judge John E. Steele today sentenced Peter Jensen to 31 months in federal prison for tax evasion. The court also ordered him to pay restitution to the Internal Revenue Service in the amount of $2,155,133.88. Jensen pleaded guilty to one count of tax evasion on October 23, 2012.

According to court documents, for the years 2003 through 2009, Jensen attempted to evade paying federal income tax, in the amount of approximately $1.8 million. Jensen attempted to evade paying the taxes by placing real properties in the names of others, and utilizing the bank account of another individual, rather than depositing money he earned in a bank account from which the money could have been seized by the IRS.

"Today's sentencing again emphasizes that the Internal Revenue Service and the U.S. Attorney’s Office will continue their aggressive pursuit of those who use fraudulent methods in an attempt to corrupt our Nation's tax system." said James D. Robnett, Special Agent in Charge, IRS-Criminal Investigation, Tampa Field Office. "Honest taxpayers have been reassured today that no one is above the law, especially when the integrity of tax administration is at stake."

This case was investigated by the Internal Revenue Service, Criminal Investigation and was prosecuted by Assistant United States Attorney Robert Barclift.

Tampa, FL - U.S. District Judge Virginia M. Hernandez Covington sentenced Andrew Dennis Kromer (34, St. Petersburg) yesterday to 10 years in federal prison, followed by a lifetime of supervised release, for distribution and possession of child pornography. The court also ordered Kromer to forfeit laptop computers and hard drives that he used to facilitate the offenses. Kromer pleaded guilty on November 13, 2012.

According to court documents, Kromer used a social networking website to share and receive numerous images of pre-pubescent boys engaging in explicit sexual activity. Based upon the investigation into the origin of these photographs, the Federal Bureau of Investigation obtained and executed a federal search warrant at Kromer's residence in St. Petersburg. During the search, agents located and seized a laptop computer belonging to Kromer. A detailed forensic analysis showed that Kromer possessed more than 59,000 images of child pornography. The forensic review also revealed that Kromer was regularly trading images with other individuals over the Internet of children engaging in sadistic and masochistic activity.

This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Josephine W. Thomas.

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."

Orlando, Florida - United States Attorney Robert E. O'Neill announces the return of an indictment charging Dr. John Francis Williams (66, Blythewood, S.C.) with attempting to entice a minor for sexual activity through use of the Internet. If convicted, Williams faces a mandatory minimum penalty of 10 years, up to life in federal prison. The indictment also notifies Williams that the United States intends to forfeit a residence located at 1822 Wiley Post Trail in Port Orange, Florida.

According to the indictment, between October 11, 2012, and continuing through October 12, 2012, Williams used the Internet to attempt to persuade, induce, and entice a minor to engage in a sexual activity. Williams allegedly communicated with the minor over the Internet from the Port Orange home, and also offered to bring the minor there to engage in sexual activity.

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 U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the North Florida Internet Crimes Against Children Task Force, and the Volusia County Sheriff’s Office, as part of “Operation Broadband.” Operation Broadband utilized undercover agents to monitor various social networking websites to identify adults interested in engaging in sexual activity with minors. This case will be prosecuted by Assistant United States Attorney Daniel W. Eckhart.

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."

Tampa, Florida - United States Attorney Robert E. O'Neill announces the extradition from Guatemala of Alma Lucrecia Hernandez-Preciado, a/k/a "La Tia," (40, Tecun Uman, Guatemala). Extradition to Tampa was sought following the return of an indictment, on September 22, 2011, charging Hernandez-Preciado with violations of the Maritime Drug Law Enforcement Act. Hernandez-Preciado was arrested in Guatemala on October 10, 2011. If convicted, Hernandez-Preciado faces a maximum penalty of life in federal prison.

According to the indictment, Hernandez-Preciado participated in a conspiracy with others, including persons who were on board a vessel subject to the jurisdiction of the United States, to possess with intent to distribute and to distribute five kilograms or more of cocaine. Hernandez-Preciado is also charged with aiding and abetting others, including persons who were on board a vessel subject to the jurisdiction of the United States, with respect to the possession with the intent to distribute five (5) kilograms or more of cocaine. The charges relate to Hernandez-Preciado's role in organizing the maritime smuggling of cocaine shipments, including a drug smuggling venture where the crew of a go-fast boat was interdicted by the United States Coast Guard off the coast of Guatemala on May 18, 2011, and 347 kilograms of cocaine were seized.

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 Panama Express Strike Force, an OCDETF funded operation targeting maritime smuggling. Participating agencies include the Drug Enforcement Administration (DA), including DEA's Guatemala City Country Office, the Federal Bureau of Investigation (FBI), U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the United States Coast Guard Investigative Service (CGIS), the Joint Interagency Task Force - South (JIATFS) and the United States Marshals Service, with assistance from the government of Guatemala and Guatemalan law enforcement agencies. It will be prosecuted by Assistant United States Attorneys Matthew Jackson and W. Stephen Muldrow.

Tampa, Florida - United States Attorney Robert E. O'Neill announces that Alesia Ann Spivey (46, Brandon) today pleaded guilty to one count of conspiracy to commit wire fraud against her former employer, Jabil Circuit, Inc. (“Jabil Circuit”), and one count of conspiracy to defraud the Internal Revenue Service and theft of government funds. Spivey faces a maximum penalty of 10 years in federal prison for both offenses.

According to the plea agreement, in 2010 and 2011, Spivey was employed in Jabil Circuit’s Global Mobility Group as a Global Mobility Coordinator and a Regional Relocation Program Administrator, in their St. Petersburg corporate offices. Her job responsibilities in these positions included working with Jabil Circuit’s relocation manager, Weichert Relocation Resources, Inc. (“Weichert”), to assist Jabil Circuit’s employees with work-related changes in residence. Beginning around August 2010, and continuing through in or about October 2011, Spivey conspired with various individuals to defraud Jabil Circuit by requesting relocation benefits for non-existent employees. Spivey recruited various co-conspirators to pose as Jabil Circuit employees. These conspirators, opened, maintained, and otherwise made their bank accounts available to receive fraudulently-obtained relocation benefits. To facilitate this aspect of the fraud, Spivey and other conspirators purchased “throw-away” mobile telephones, on which they received telephone calls from Weichert, to communicate about the particular relocation benefits packages being offered and to determine which bank to send any lump sum cash payments. In general, once a lump sum payment was made, the conspirators divided up the fraud proceeds between themselves. Ultimately, the conspirators defrauded Jabil Circuit out of $318,764.98 in relocation benefits and fees paid to furnish those benefits.

In a completely separate fraud scheme, between January and August 2012, Spivey engaged in a scheme with other individuals to file false income tax returns with the Internal Revenue Service in order to obtain fraudulent refunds to which the conspirators were not entitled. The conspirators carried out this tax fraud conspiracy by obtaining the means of identification of various persons, including the names, dates of birth, and social security numbers of such persons. The means of identification were then used by the conspirators to prepare and electronically file approximately 217 false and fraudulent federal income tax returns. In many cases, the individuals whose identities appeared on these fraudulent returns did not know Spivey and the other conspirators were filing tax returns on their behalf. In total, these 217 fraudulent returns claimed approximately $1,554,493.00 in bogus tax refunds. Ultimately, the IRS paid out $551,472.90 in refunds to the conspirators.

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

Jacksonville, FL - United States Attorney Robert E. O'Neill announces the return by a grand jury of two separate indictments charging Randy C. Johnson (22) and Johnell Ford (21), both inmates of the Florida Department of Corrections, with sending hoax anthrax letters to sitting judges. If convicted, they each face a maximum penalty of five years in federal prison. The federal prison sentences may run consecutive to sentences they are currently serving in state custody.

According to the indictment charging Johnson, in January 2012, Johnson allegedly sent an envelope containing a threatening letter and a substance purporting to be anthrax to a sitting United States Magistrate Judge in Tampa. According to the indictment charging Ford, in August 2012, Ford allegedly sent a threatening letter and a substance purporting to be anthrax to a sitting Florida circuit judge in Tampa. Both individuals were inmates of the Suwannee Correctional Institute at the time of making the hoax threats.

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.

These cases were investigated by the Federal Bureau of Investigation, the Florida Highway Patrol, and the Jacksonville Sheriff's Office. They will be prosecuted by Assistant United States Attorney Mac D. Heavener, III.