Middle District of Florida

BayCare Health System Inc. and entities that operate four affiliated Florida hospitals (collectively BayCare) have agreed to pay the United States $20 million to resolve allegations that BayCare violated the False Claims Act by making donations to the Juvenile Welfare Board of Pinellas County (JWB) to improperly fund the state’s share of Medicaid payments to BayCare. The four hospitals are Morton Plant Hospital, Mease Countryside Hospital, Mease Dunedin Hospital and St. Anthony’s Hospital.

The Florida Medicaid program provides medical assistance to low-income individuals and individuals with disabilities, and is jointly funded by the federal and state governments. Under federal law, Florida’s share of Medicaid payments must consist of state or local government funds, and not “non-bona fide donations” from private health care providers, such as hospitals. A non-bona fide donation is a payment — in cash or in kind — from a private provider to a governmental entity that is then returned to the private provider as the state share of Medicaid. The private provider’s donation triggers a corresponding federal expenditure for the federal share of Medicaid, which is also paid to the private provider. This unlawful conduct causes federal expenditures to increase without any corresponding increase in state expenditures, since the state share of the Medicaid payments to the provider comes from and is returned to the provider. The prohibition of this practice ensures that states are in fact paying a share of Medicaid payments and thus have an incentive to curb Medicaid costs and prevent unnecessary services.  

The United States alleged that between October 2013 and September 2015, BayCare knowingly caused false claims for federal Medicaid matching funds to be submitted to the United States. Specifically, the United States alleged that during this time, BayCare made improper, non-bona fide cash donations to JWB knowing that JWB would and then did transfer a portion of the cash donations to the State of Florida’s Agency for Health Care Administration for Florida’s Medicaid Program. The funds transferred by JWB to the state were “matched” by the federal government before being returned to the BayCare hospitals as Medicaid payments, and BayCare was thus able to recoup its original donations to JWB and also receive federal matching funds, in violation of the federal prohibition on non-bona fide donations. BayCare’s donations to JWB increased Medicaid payments received by BayCare, without any actual expenditure of state or local funds.

“Medicaid is a partnership between the federal government and state governments,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “When the federal government provides Medicaid matching funds, there must be a corresponding expenditure by the state or a local unit of government. When private parties make unlawful, non-bona fide donations to state or local governments, they undermine a key safeguard for ensuring the integrity of the Medicaid program.”

“Millions of Floridians depend on the Medicaid Program for medical care and related services,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “Our office is committed to protecting the integrity of the Medicaid Program, and we will use all available civil remedies to recover the ill-gotten gains obtained by those who defraud it and other government health care programs.” 

“When health care providers participate in fraud schemes to boost federal payments, they do so at the expense of federal health care programs,” said Special Agent in Charge Omar Pérez Aybar of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Our agents will continue to coordinate with our law enforcement partners to root out health care fraud and hold bad actors accountable for their actions.”

The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Larry Bomar, a former hospital reimbursement manager in Florida. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States ex rel. Bomar v. Bayfront HMA Medical Center LLC, et al., Civil Action No. 8:16-cv-03310-MSS-JSS (M.D Fla.). Mr. Bomar will receive $5 million as his share of the settlement.

The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Middle District of Florida, with assistance from HHS-OIG.

The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

The matter was handled by Civil Division Fraud Section Attorneys Alison B. Rousseau and Jonathan T. Thrope and Assistant U.S. Attorney Carolyn B. Tapie for the Middle District of Florida.

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

Tampa, FL — A woman in Florida pleaded guilty today to a federal racketeering conspiracy that victimized Mexican agricultural workers admitted into the United States under the H-2A temporary visa program. Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.

According to the plea agreement, Christina Gamez, 43, from March 2016 through August 2017, while working as a bookkeeper, manager, and supervisor for Los Villatoros Harvesting (LVH), a labor contracting company employing Mexican H-2A workers harvesting fruits and vegetables in Florida, Kentucky, Indiana, Georgia and North Carolina, conspired with LVH’s owner and others to commit racketeering offenses, including subjecting LVH’s H-2A workers to forced labor, harboring LVH’s H-2A workers in the United States after their visas had expired for financial gain, and committing visa fraud and fraud in foreign labor contracting. Gamez admitted that she and her co-conspirators used coercive means to obtain thousands of hours of physically demanding agricultural labor from the victimized H-2A workers, all for de minimis pay. The coercive means used included confiscating the workers’ passports; subjecting the workers to crowded, unsanitary and degrading living conditions; isolating the workers and limiting their ability to interact with anyone other than LVH employees; and subjecting the workers to debt manipulation. Gamez also admitted that, while working for LVH, she knowingly prepared and sent falsified records to federal investigators to conceal aspects of the criminal enterprise.

A date for Gamez’s sentencing hearing has not yet been set. Gamez faces a maximum penalty of 20 years in federal prison and a fine of up to $250,000. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. As part of her plea agreement, Gamez has agreed to pay more than $9,000 in restitution to the victims. 

This case was investigated by the Palm Beach County Human Trafficking Task Force (including the FBI, Homeland Security Investigations and the Palm Beach County Sheriff's Office), with assistance from the Department of Labor Office of the Inspector General and the Department of State Diplomatic Security Service. Assistant U.S. Attorney Frank Murray for the Middle District of Florida and Trial Attorneys Avner Shapiro, Maryam Zhuravitsky and Matthew Thiman of the Justice Department’s Civil Rights Division are prosecuting the case.

A woman in Florida pleaded guilty today to a federal racketeering conspiracy that victimized Mexican agricultural workers admitted into the United States under the H-2A temporary visa program. Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.

According to the plea agreement, Christina Gamez, 43, from March 2016 through August 2017, while working as a bookkeeper, manager, and supervisor for Los Villatoros Harvesting (LVH), a labor contracting company employing Mexican H-2A workers harvesting fruits and vegetables in Florida, Kentucky, Indiana, Georgia and North Carolina, conspired with LVH’s owner and others to commit racketeering offenses, including subjecting LVH’s H-2A workers to forced labor, harboring LVH’s H-2A workers in the United States after their visas had expired for financial gain, and committing visa fraud and fraud in foreign labor contracting. Gamez admitted that she and her co-conspirators used coercive means to obtain thousands of hours of physically demanding agricultural labor from the victimized H-2A workers, all for de minimis pay. The coercive means used included confiscating the workers’ passports; subjecting the workers to crowded, unsanitary and degrading living conditions; isolating the workers and limiting their ability to interact with anyone other than LVH employees; and subjecting the workers to debt manipulation. Gamez also admitted that, while working for LVH, she knowingly prepared and sent falsified records to federal investigators to conceal aspects of the criminal enterprise.

A date for Gamez’s sentencing hearing has not yet been set. Gamez faces a maximum penalty of 20 years in federal prison and a fine of up to $250,000. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. As part of her plea agreement, Gamez has agreed to pay more than $9,000 in restitution to the victims. 

This case was investigated by the Palm Beach County Human Trafficking Task Force (including the FBI, Homeland Security Investigations and the Palm Beach County Sheriff's Office), with assistance from the Department of Labor Office of the Inspector General and the Department of State Diplomatic Security Service. Assistant U.S. Attorney Frank Murray for the Middle District of Florida and Trial Attorneys Avner Shapiro, Maryam Zhuravitsky and Matthew Thiman of the Justice Department’s Civil Rights Division are prosecuting the case.

Tampa, Florida – United States Attorney Roger B. Handberg announces that Abdul Aziz has pleaded guilty to one count of aiding in the preparation and filing of a false tax return. He faces a maximum penalty of three years in federal prison. A sentencing date has not yet been set.

According to the plea agreement, Aziz helped to prepare numerous false and fraudulent income tax returns on behalf of clients in 2016. Those tax returns contained false information about clients’ income and their tax withholding status. The false entries in those returns related to residential mortgage loan repayments that the returns falsely represented as being held on their behalf by financial institutions and were claimed as income. As a result of those false entries, Aziz’s clients were able to claim and receive substantial refunds from the IRS which his clients were not lawfully entitled to receive. Those refunds exceeded $1,500,000.

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

WASHINGTON – TracFone Wireless Inc. (TracFone) has agreed to pay $13.4 million as part of a civil settlement to resolve allegations that TracFone violated the False Claims Act by signing up more than 175,000 ineligible customers in connection with the Federal Communications Commission’s (FCC) Lifeline Program (Lifeline).  

Lifeline, created by Congress in the Telecommunications Act of 1996, provides nearly $2 billion each year to assist low-income consumers with their telecommunications needs. In many cases, this consists of a free cell phone (provided by the carrier) and free monthly cell phone service (provided by the government). In order to qualify for Lifeline, a consumer’s income must be at or below 135% of the Federal Poverty Guidelines or the consumer must receive benefits from certain specified federal assistance programs.

The United States alleged that between 2012 and 2015, TracFone, a telecommunications carrier based in Miami, impermissibly signed up more than 175,000 subscribers who were ineligible for the program. TracFone hired independent third-party sales agents, including agents hired by Elite Promotional Marketing Inc. (Elite), to enroll these customers. These agents learned that TracFone’s computer software contained a glitch that allowed ineligible persons to enroll in Lifeline. Some agents in Florida then exploited the glitch to increase their consumer enrollments and commission payments. The government alleged that TracFone failed to adequately review the applications and did not properly investigate reports of clearly ineligible subscribers enrolled in the program that would have revealed the glitch. After TracFone eventually discovered the software glitch in August 2015, it repaid more than $10.9 million to Lifeline, an amount that was credited as part of the $13.4 million settlement.

“Lifeline providers have a duty to ensure that only eligible subscribers are enrolled in the Lifeline Program,” said Deputy Assistant Attorney General Michael D. Granston of the Civil Division’s Commercial Litigation Branch. “Today’s settlement demonstrates our commitment to ensure that those participating in government funded programs exercise appropriate vigilance to prevent the misuse of taxpayer dollars.”

“The U.S. Attorney’s Office is committed to protecting taxpayer funds and safeguarding federal programs from false claims,” said U.S. Attorney Roger Handberg for the Middle District of Florida. “We will continue to work with our law enforcement partners to identify and eliminate practices that defraud Lifeline and other federal programs.”

“Today’s settlement reflects the FCC’s ongoing commitment to root out waste, fraud and abuse in its universal service programs,” said Chairwoman Jessica Rosenworcel of the FCC. “Especially during these unprecedented times, the Universal Service Fund provides a key lifeline for many families, and our careful stewardship of the program ensures that low-income households can access the telecommunications services they so critically need. Let today’s action serve as a warning to others that we will do everything we can to ensure strict compliance with the rules of the road.”

“The FCC Office of Inspector General (OIG) is committed to eliminating fraud, waste and abuse in the Lifeline and other FCC programs, and appreciates its strong partnership with the U.S. Department of Justice,” said Inspector General David Hunt of the FCC OIG. “We will continue to work with our law enforcement partners to ensure these funds are safeguarded from false claims by fund recipients.”

Contemporaneous with the civil settlement, TracFone has agreed to enter into a corporate compliance plan with the FCC. Based upon TracFone’s disclosure, assistance with the government’s investigation, and early repayment in connection with the allegations, TracFone also received a credit for cooperation in connection with the settlement announced today.

The settlement with TracFone resolves a lawsuit filed under the whistleblower provisions of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The civil lawsuit was filed in September 2015 by Farrell Gordon, formerly a Lifeline sales representative at Elite. Elite previously settled with the United States for $95,000 based on ability to pay.  As part of the resolution, Mr. Gordon will receive $462,500.

The settlement was the result of a coordinated effort among the U.S. Attorney’s Office for the Middle District of Florida, the Civil Division’s Commercial Litigation Branch, Fraud Section, the FCC OIG and FCC Office of General Counsel.

The claims resolved by the settlement are allegations only, and there has been no determination of liability. The lawsuit resolved by the settlement is captioned United States ex rel. Gordon v. TracFone Wireless, Inc., et al., No. 6:15-cv-1457 (M.D. Fla.).

TracFone Wireless Inc. (TracFone) has agreed to pay $13.4 million as part of a civil settlement to resolve allegations that TracFone violated the False Claims Act by signing up more than 175,000 ineligible customers in connection with the Federal Communications Commission’s (FCC) Lifeline Program (Lifeline).  

Lifeline, created by Congress in the Telecommunications Act of 1996, provides nearly $2 billion each year to assist low-income consumers with their telecommunications needs. In many cases, this consists of a free cell phone (provided by the carrier) and free monthly cell phone service (provided by the government). In order to qualify for Lifeline, a consumer’s income must be at or below 135% of the Federal Poverty Guidelines or the consumer must receive benefits from certain specified federal assistance programs.

The United States alleged that between 2012 and 2015, TracFone, a telecommunications carrier based in Miami, impermissibly signed up more than 175,000 subscribers who were ineligible for the program. TracFone hired independent third-party sales agents, including agents hired by Elite Promotional Marketing Inc. (Elite), to enroll these customers. These agents learned that TracFone’s computer software contained a glitch that allowed ineligible persons to enroll in Lifeline. Some agents in Florida then exploited the glitch to increase their consumer enrollments and commission payments. The government alleged that TracFone failed to adequately review the applications and did not properly investigate reports of clearly ineligible subscribers enrolled in the program that would have revealed the glitch. After TracFone eventually discovered the software glitch in August 2015, it repaid more than $10.9 million to Lifeline, an amount that was credited as part of the $13.4 million settlement.

“Lifeline providers have a duty to ensure that only eligible subscribers are enrolled in the Lifeline Program,” said Deputy Assistant Attorney General Michael D. Granston of the Civil Division’s Commercial Litigation Branch. “Today’s settlement demonstrates our commitment to ensure that those participating in government funded programs exercise appropriate vigilance to prevent the misuse of taxpayer dollars.”

“The U.S. Attorney’s Office is committed to protecting taxpayer funds and safeguarding federal programs from false claims,” said U.S. Attorney Roger Handberg for the Middle District of Florida. “We will continue to work with our law enforcement partners to identify and eliminate practices that defraud Lifeline and other federal programs.”

“Today’s settlement reflects the FCC’s ongoing commitment to root out waste, fraud and abuse in its universal service programs,” said Chairwoman Jessica Rosenworcel of the FCC. “Especially during these unprecedented times, the Universal Service Fund provides a key lifeline for many families, and our careful stewardship of the program ensures that low-income households can access the telecommunications services they so critically need. Let today’s action serve as a warning to others that we will do everything we can to ensure strict compliance with the rules of the road.”

“The FCC Office of Inspector General (OIG) is committed to eliminating fraud, waste and abuse in the Lifeline and other FCC programs, and appreciates its strong partnership with the U.S. Department of Justice,” said Inspector General David Hunt of the FCC OIG. “We will continue to work with our law enforcement partners to ensure these funds are safeguarded from false claims by fund recipients.”

Contemporaneous with the civil settlement, TracFone has agreed to enter into a corporate compliance plan with the FCC. Based upon TracFone’s disclosure, assistance with the government’s investigation, and early repayment in connection with the allegations, TracFone also received a credit for cooperation in connection with the settlement announced today.

The settlement with TracFone resolves a lawsuit filed under the whistleblower provisions of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The civil lawsuit was filed in September 2015 by Farrell Gordon, formerly a Lifeline sales representative at Elite. Elite previously settled with the United States for $95,000 based on ability to pay.  As part of the resolution, Mr. Gordon will receive $462,500.

The settlement was the result of a coordinated effort among the U.S. Attorney’s Office for the Middle District of Florida, the Civil Division’s Commercial Litigation Branch, Fraud Section, the FCC OIG and FCC Office of General Counsel.

The claims resolved by the settlement are allegations only, and there has been no determination of liability. The lawsuit resolved by the settlement is captioned United States ex rel. Gordon v. TracFone Wireless, Inc., et al., No. 6:15-cv-1457 (M.D. Fla.).

Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell today sentenced Joshua Wade McGinnis (27, Fort Myers) to 10 years in federal prison for multiple counts of distributing cocaine and possessing a firearm during a drug trafficking offense. McGinnis had pleaded guilty on December 27, 2021.

According to court documents, between February and August 2021, McGinnis distributed cocaine to an undercover DEA agent and confidential source on multiple occasions in Fort Myers. During the last transaction before his arrest, McGinnis agreed to sell the source more than a pound of cocaine for $20,000.  Fearing that he might be robbed during the transaction, McGinnis enlisted the assistance of his co-defendant, John Olvera-Salinas (20, Fort Myers). McGinnis asked Olvera-Salinas to accompany him to the transaction location and provided Olvera-Salinas with a loaded AK-47. When the two arrived at the location, they were promptly arrested by the DEA. At the time of the arrests, McGinnis possessed the cocaine and Olvera-Salinas possessed the loaded gun.

A subsequent search of McGinnis’s residence revealed a heavily fortified apartment, with security bars covering the windows and an extensive video surveillance system. The DEA agents recovered more than 14 firearms, nearly a pound of additional cocaine, 8 pounds of marijuana, approximately 3 ounces of oxycodone, and approximately one ounce of MDMA from the apartment.

Olvera-Salinas previously pleaded guilty to possessing a firearm in furtherance of a drug trafficking offense. His sentencing hearing is scheduled for May 9, 2022.

This case was investigated by the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Michael V. Leeman.

Fort Myers, Florida –United States Attorney Roger B. Handberg announces the unsealing of indictments charging Daniel Aguilar-Roblero (40, Fort Myers) and Cornelio Perez Gonzalez Arellano (29, Fort Myers) with possessing counterfeit immigration documents and transferring false identification documents. If convicted on all counts, Aguilar-Roblero faces a maximum penalty of 50 years in federal prison and Gonzalez Arellano faces a maximum penalty of 25 years in federal prison. 

According to the indictments and court proceedings held in their cases, Aguilar-Roblero and Gonzalez Arellano sold fraudulent Permanent Resident cards (also known as “Green Cards”) and fraudulent Social Security cards to undercover law enforcement officers, believing they were intended to be used by individuals unlawfully present in the United States. Neither Aguilar-Roblero nor Gonzalez Arellano are citizens or nationals of the United States, and both are subject to deportation and removal proceedings at the conclusion of their federal criminal cases.

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

These cases were investigated by the Florida Department of Law Enforcement and Homeland Security Investigations. They will be prosecuted by Assistant United States Attorney Simon R. Eth.

Orlando, Florida – U.S. District Judge Wendy W. Berger has sentenced Alejandro Alvarado (30, Crescent City), Miguel Angel Perez (29, Deland), and Jose Martinez (43, Crescent City) for their roles in a conspiracy to distribute methamphetamine. Alvarado, who was the head of the Drug Trafficking Organization (DTO), was sentenced to 25 years in federal prison, and Perez and Martinez were each sentenced to 11 years in federal prison. All three had previously pleaded guilty.

According to court documents, Alvarado worked to distribute methamphetamine and cocaine along with a number of intermediaries – including Martinez, Perez, Jonathan Arroyo Ontiveros (25, Crescent City), Noel Bueno Jr. (27, Crescent City) and others – all of whom lived in close proximity to one another in Crescent City. Miguel Angel Ortiz (29, Crescent City) also served as a courier to deliver multi-kilogram shipments of methamphetamine from Texas, North Carolina, and Georgia to the Crescent City neighborhood in which Alvarado and the others operated. Alvarado, through his intermediaries, would deliver ounces and pounds of methamphetamine primarily to Robert Wayne Watson (59, Seville), who operated out of his home. Watson, in turn, redistributed ounces of methamphetamine to mid-level dealers located throughout central Florida, including George Edward Sykes (46, Bunnell), Danny Wayne Holmes (61, Kathleen), Dina Dynnette Kempher (38, Satsuma), and David John Doerr (56, Astor).

On July 17, 2021, FBI agents arrested Alvarado, Martinez, Ontiveros, Ortiz and Watson. At the time of his arrest, Alvarado had nearly five kilograms of methamphetamine and nearly two kilograms of cocaine in his possession along with more than $13,000 in U.S. currency, two loaded handguns, and a drum magazine for an AK-47 assault rifle containing 172 rounds of ammunition.  

Eleven charged conspirators have pleaded guilty for their roles in this case. See below for details.

Defendant

Date of Guilty Plea

Sentenced or Hearing Date:

Incarceration:

Alejandro Alvarado (30, Crescent City)

11/2/21

3/31/22

300 months

Miguel Angel Perez (29, Deland)

12/14/21

3/31/22

135 months

Jose Martinez (43, Crescent City)

11/16/21

3/31/22

135 months

Miguel Angel Ortiz (39, Crescent City)

11/30/21

2/15/22

70 months

Jonathan Arroyo Ontiveros (25, Crescent City)

11/30/21

2/16/22

71 months

Noel Bueno Jr. (27, Crescent City)

8/24/21

11/16/21

36 months

Robert Wayne Watson (59, Seville)

3/29/21

TBD

TBD

David John Doerr (56, Astor)

11/16/21

2/16/22

57 months

Dina Dynnette Kempher (38, Satsuma)

11/30/21

2/15/22

24 months

George Edward Sykes (46, Bunnell)

11/16/21

4/7/22

TBD

Danny Wayne Holmes (61, Kathleen)

2/23/22

5/12/22

TBD

 

This case was investigated by the Federal Bureau of Investigation with assistance from the Drug Enforcement Administration, the Putnam County Sheriff’s Office, the Clay County Sheriff’s Office, and the Volusia County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Dana E. Hill.

This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.

Fort Myers, Florida – United States Attorney Roger B. Handberg announces the arrest and unsealing of a criminal complaint charging Daniel Joseph Tisone (34, Naples) with wire fraud, bank fraud, and illegal monetary transactions. If convicted, he faces a maximum penalty of 30 years in prison on each of the fraud charges and up to 10 years in federal prison for the illegal monetary transaction offense.

According to the complaint, between March 2020 and April 2021, Tisone, a convicted felon, submitted false and fraudulent Economic Injury Disaster Loan (EIDL), Main Street Lending Program (MSLP), and Paycheck Protection Program (PPP) loan applications to the Small Business Administration, as well as PPP and MSLP approved lenders. The loan applications contained numerous false representations, including the criminal history, average monthly payroll, number of employees, and gross revenues of the applicant, Tisone. In support of the fraudulent EIDL, PPP, and MSLP applications, Tisone submitted false and fictitious payroll and tax documents, as well as a fake commercial lease.

Tisone’s false and fraudulent representations caused the SBA, PPP and MSLP lenders to approve and fund one MSLP, three EIDL, and five PPP loans, totaling approximately $2,523,954.17. Tisone then unlawfully used the funds to purchase more than $1 million in stocks and investment securities, as well as the purchase of a residence in the Naples, Florida area.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.

The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if the business spends the proceeds on these expenses within a set time period and uses at least a certain percentage of the loan toward payroll expenses.

The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities, and fixed debt payments. If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used for the same purpose as the PPP funds. 

The MSLP was designed to provide support to small and medium-sized businesses and their employees across the United States during the COVID-19 pandemic. The program was intended to help companies that were in sound financial condition prior to the onset of the pandemic maintain their operations and payroll until conditions normalized.

A criminal complaint is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

This case is being investigated by the Federal Bureau of Investigation, Special Inspector General for Pandemic Recovery (SIGPR), and IRS – Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Trent Reichling and Suzanne Nebesky.

Ocala, Florida –United States Attorney Roger B. Handberg announces the arrest of Marques Young (22, Ocala) on a criminal complaint charging him with one count of knowingly causing a Federal Firearms Licensee (FFL) to maintain false information in its official records. If convicted, Young faces up to five years in federal prison.

According to the complaint, between October 27, 2020, and March 9, 2022, Young purchased multiple handguns and a rifle from a Marion County gun dealer. Many of the firearms were identical. While purchasing the firearms, Young certified on each ATF Form 4473 (Firearm Transaction Record) that he was the “actual transferee/buyer” of the firearms. Young then quickly resold the firearms. Many of the firearms have since been recovered from Marion County crime scenes. For example, on March 3, 2022, Young purchased a Taurus pistol and signed an ATF Form 4473 certifying that he was the actual transferee/buyer. However, video from the transaction showed that Young walked to the back of the store to get cash from a convicted felon to pay for the firearm. Law enforcement found the convicted felon on March 23, 2022, with the Taurus pistol that Young had purchased.

A criminal complaint is merely an allegation that a defendant has committed a federal criminal offense. Every defendant is presumed innocent unless, and until, proven guilty.

This case is being investigated by the Ocala Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Hannah Nowalk.

This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

Ocala, Florida –United States Attorney Roger B. Handberg announces that David O. Isagba today pleaded guilty to one count of mail fraud and one count of conspiring to defraud the United States with respect to tax claims. Isagba faces a maximum penalty of 30 years in federal prison. A federal grand jury had indicted Isagba and his wife, Joyce Isagba, on May 27, 2020. Her portion of the case is set for trial in May 2022 before Senior U.S. District Judge John Antoon II.  

According to the plea agreement and other court documents, between 2009 and 2019, David Isagba submitted 227 fraudulent claims to the IRS falsely claiming to be entitled to more than $2.9 billion in tax refunds on behalf of nonexistent trusts. David Isagba subsequently received a total of $5,815,723.65 from the IRS as a result of this fraudulent scheme. He used the money to purchase a home and multiple luxury vehicles.

This case was investigated by the Internal Revenue Service - Criminal Investigation. It is being prosecuted by Assistant United States Attorney William S. Hamilton.

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

Tampa, Florida – U.S. District Judge William F. Jung today sentenced Frank Anthony Pezzuto (73, Venice) to 15 months in federal prison for transmitting in interstate commerce communications threatening to injure certain members of Congress. The Court also ordered Pezzuto to pay a fine of $7,500. A federal jury found Pezzuto guilty on November 9, 2021.

According to evidence presented at trial, Pezzuto made three threatening phone calls from his home in Venice to certain congressional offices in Washington, D.C.  The first call took place on January 25, 2020, when Pezzuto left a voicemail at Congressman E.S.’s office in which Pezzuto said that he was coming to kill E.S. Pezzuto subsequently left a voicemail at Congressman A.S.’s office on January 30, 2020, stating that he was a worker for MS-13 and that MS-13 was coming to cut off A.S.’s head. Then, on February 3, 2020, Pezzuto called Congresswoman I.O.’s office and stated to the person who answered the phone: “tell her I’m going to kill her today.”

Each time Pezzuto made these threatening calls, he used his cellphone but concealed his phone number and attempted to disguise his voice. United States Capitol Police were able to identify Pezzuto as the caller and confirm that the calls had been routed through a cell tower near Pezzuto’s home in Florida.

This case was investigated by United States Capitol Police. It was prosecuted by Assistant United States Attorneys Patrick Scruggs and Risha Asokan.

Tampa, Florida – United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Jy’Quale Samari Grable (20, Tampa) and Aquavious Smith (19, Palmetto) with conspiracy and interference with commerce by robbery. Grable was also charged with using a firearm in relation to a crime of violence causing the death of two victims. If convicted on all counts, Grable faces a maximum penalty of life in federal prison, and Smith faces a maximum penalty of 20 years’ imprisonment.

According to court documents, on December 22, 2020, Grable and Smith committed an armed robbery at an apartment complex in Valrico. During the robbery, Grable shot and killed B.B. and M.M on the back patio of the apartment.

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

This case was investigated by the Drug Enforcement Administration and the Hillsborough County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Diego F. Novaes.

Orlando, Florida – United States Attorney Roger B. Handberg announces that Theresea Walker (30, Fairburn) has pleaded guilty to wire fraud. Walker faces up to 20 years in federal prison. The sentencing hearing is scheduled for June 15, 2022.

According to court documents, from at least October 2019 and continuing through May 21, 2021, Walker was employed as an accounts payable processor with a technology company, defense contractor, and information technology services provider headquartered in Melbourne, Florida. In this role, Walker's responsibilities included accessing her employer's payment software systems for the purpose of entering vendor and supplier invoices and scheduling those invoices for payment. Walker’s employer conducted an audit of accounts serviced by Walker. The audit  revealed that Walker had made false entries into the employer's accounts payable system to conduct nine wire transactions through which Walker caused the transfer of funds from the employer's bank account to accounts controlled by Walker. As part of her scheme, Walker also edited the payment terms and accounts of actual existing vendors with the employer, so that new invoices entered under that vendor name would be paid directly to the accounts designated by Walker. During the course of the scheme, in an attempt to hide her fraudulent activity, Walker created multiple fictitious invoices and fraudulent credit memos. In total, as a result of her scheme, Walker caused a total loss of $1,757,082.73 to the employer, which also represents the proceeds received by her from her scheme.  

This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Terry B. Livanos.

Orlando, FL – U.S. District Judge Carlos E. Mendoza has sentenced Kenneth Douglas (24, Daytona Beach), a/k/a “One Way,” to 16 years in federal prison followed for conspiracy to distribute 50 grams or more of methamphetamine. Douglas had pleaded guilty on October 7, 2021.

According to court documents, beginning on March 1, 2021, and continuing through March 24, 2021, Douglas and a co-defendant conspired with each other to distribute 50 grams or more of methamphetamine. During the investigation, an undercover law enforcement officer purchased controlled substances from Douglas and his co-defendant, who Douglas had been supplying. Douglas was held responsible for more than 1.4 kilograms of methamphetamine that he had conspired to distribute in the Brevard and Volusia County areas.

On May 17, 2021, agents with the Drug Enforcement Administration executed a search warrant at Douglas’s residence and located fentanyl, four digital scales, ammunition, and a stolen Glock 9mm pistol. Douglas fled from the residence on foot but was quickly apprehended by pursuing agents.

Douglas’s co-defendant, Tom Thompson, a/k/a “China,” previously pleaded guilty for his role in this case. On December 27, 2021, Thompson was sentenced to 11 years and 4 months in federal prison.

This case was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Cocoa Police Department, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Beatriz Gonzalez.

Tampa, Florida – U.S. District Judge Steven Merryday has sentenced Jeffrey Davis (24, Tampa) to 24 years in federal prison and Tyee Spike (19, Tampa) to 26 years and 3 months for robbing multiple stores at gunpoint. Spike was sentenced on January 13, 2022, and Davis was sentenced on March 23, 2022. Davis had pleaded guilty on March 4, 2021, and Spike had pleaded guilty on August 12, 2021.

According to court documents, between October 13 and 19, 2020, Davis and Spike committed a series of commercial armed robberies in Tampa, Fishhawk, and Riverview. Firearms were brandished during each robbery. During the first robbery, an individual confronted Spike, and Spike shot him in the stomach. The victim remained hospitalized for 12 days but survived. Prior to the robbery spree, Spike committed a carjacking to obtain the getaway vehicle the men used for the robberies. The robbery spree ended with a high-speed chase, in which the defendants crashed the getaway vehicle before being apprehended. At the time of the defendants’ arrests, their getaway vehicle contained a “list of criminal achievements and/or ambitions,” which itemized various houses and personal possessions, and under the heading “Licks,” included the names and locations of several commercial establishments.

In the year prior to the robbery spree, Spike had been convicted of battery on a law enforcement officer with a deadly weapon, resisting an officer with violence, grand theft motor vehicle, two counts of robbery, and burglary of an unoccupied conveyance. 

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Tampa Police Department, and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Callan Albritton and former Assistant United States Attorney Natalie Adams.

Orlando, Florida – United States Attorney Roger B. Handberg announces that Luis Raul Perez Rodriguez (50, Orlando) today pleaded guilty to conspiracy to possess with the intent to distribute controlled substances. Perez Rodriguez faces a maximum penalty of life in federal prison. A sentencing date has not yet been set.

According to the plea agreement, on January 21, 2022, Perez Rodriguez had arranged to receive a shipment of three parcels containing 19 kilograms of cocaine, valued at an estimated $570,000, through a delivery service from an address in Puerto Rico to an apartment in Orlando. On January 19, 2022, security specialists at the delivery service company had detected the cocaine shipment and reported the parcels to the Drug Enforcement Administration. On January 21, 2022, an undercover officer working with the DEA posed as a delivery driver and delivered a fake package to the address on the shipment. Perez Rodriguez was in the parking lot of his apartment and identified himself with the fake name associated with the parcels and showed the delivery driver that he was tracking the progress of the shipment on his phone. Perez Rodriguez was apprehended as the driver loaded two out of the three packages into Perez Rodriguez’s vehicle. Additional investigation linked Perez Rodriguez to a series of cocaine shipments from Puerto Rico to Orlando in 2018 and 2019.     

This case was investigated by the Drug Enforcement Administration with assistance from the Orange County Sheriff’s Office and the U.S. Postal Service. It is being prosecuted by Assistant United States Attorney Dana E. Hill.

Tampa, Florida –United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Thomas Mollick (79, Odessa) and Martin Krytus (55, Windemere) with conspiracy to solicit and receive, and a substantive count of soliciting and receiving, illegal remunerations (kickbacks and bribes). If convicted on all counts, Mollick and Krytus each face a maximum penalty of 15 years in federal prison. The indictment also notifies Mollick and Krytus that the United States intends to forfeit any assets, which are alleged to be traceable to proceeds of the offense.

According to the indictment, Mollick co-founded and served as President of RX Development (“RXD”), and as President and Director of Mollick Enterprises, Inc. (“MEI”). Between January 2012 and March 2017, Mollick, who was responsible for overseeing the creation and operation of RXD’s in-office drug dispensing program, selected the company’s wholesale drug supplier, Business #1, and solicited and caused the supplier to make kickback payments to MEI. Krytus co-founded and served as Vice President of RXD, and as President, Secretary, Treasurer, and Director of Eastwood & Assoc., Inc. (“EW”). Krytus, who was also responsible for overseeing the creation and operation of RXD’s in-office drug dispensing program, received a portion of kickback payments made by Business #1 to MEI.

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

This case was investigated by the U.S. Department of Labor - Office of Inspector General, the U.S. Postal Service - Office of Inspector General, and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorneys Greg Pizzo and Rachelle DesVaux Bedke.

Tampa, Florida – U.S. District Judge William F. Jung has sentenced Victor Ricardo Grant (40, Brandon) to 21 years and 10 months in federal prison for possessing ammunition as convicted felon. A federal jury had found Grant, who is a career criminal under the Armed Career Criminal Act, guilty on December 15, 2021.

According to court records and testimony presented at trial, the FBI obtained a search warrant for Grant’s residence as part of an investigation into a series of credit union robberies and carjackings that had been committed in Hillsborough and Pinellas Counties in 2019. Investigators found approximately 400 rounds of 7.62 caliber ammunition inside backpacks kept in Grant’s bedroom closet and in the attic of his home. Ammunition drum magazines and loaded magazine clips for an AK-47 rifle were also found in the backpack hidden in the attic. Grant, having previously been convicted of several felony offenses, is prohibited from possessing a firearm or ammunition under federal law.

This case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Hillsborough County Sheriff’s Office, the Florida Department of Law Enforcement, the Pinellas County Sheriff’s Office, the Pinellas Park Police Department, the St. Petersburg Police Department, and the Clearwater Police Department. It was prosecuted by Assistant United States Attorneys Michael Sinacore and Diego Novaes.

This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Steven Abboud (58, Davenport) to 5 months’ imprisonment and his codefendant, Diana Robinson (54, Davenport), to 21 days in federal prison for criminal contempt. The court also ordered them to each serve one year of supervised release following their incarceration. The defendant company, Phazzer Electronics, Inc., was sentenced to 2 years’ probation and fined $10,000. The defendants had been found guilty on December 27, 2021, after a 2-day bench trial.

According to court documents, the case originated from a civil case in which Phazzer Electronics, Inc. was being sued for patent and trademark infringement, false advertising, and unfair competition. In that case, the Court ordered Phazzer Electronics, Inc. to stop selling certain products that violated patent and trademark laws. The company was first held in civil contempt for violating the court’s order and was warned that continued violations could result in criminal contempt proceedings.  Abboud was an officer of the company and de facto owner, and Robinson was an employee and agent of the company. During the criminal proceedings, the court found that Abboud and Robinson, acting as agents of Phazzer Electronics, engaged in a pattern of activity that continued to violate the court order and that the defendants took conscious steps to circumvent the order.

This case was prosecuted by Assistant United States Attorney John Gardella.

Ocala, Florida – Senior U.S. District Judge John Antoon II has sentenced Robert Joseph Miller (46, Homosassa) to 10 years in federal prison for possession of firearms and ammunition by a convicted felon and possession of unregistered National Firearms Act (NFA) firearms – sawed-off shotguns. The Court also ordered Miller to forfeit approximately 50 firearms and more than 8,400 rounds of ammunition linked to the offenses. Miller had been indicted on May 4, 2021. He entered guilty pleas to the charges on November 19, 2021.

According to the evidence presented in court, Miller is a three-time convicted felon prohibited from possessing firearms and ammunition under federal law. On March 10, 2021, agents arrested Miller on a felony theft warrant after finding him in possession of several spools and barrels of industrial metals (nickel, cobalt, etc.). Agents then executed a search warrant at Miller’s Citrus County residence that resulted in the recovery of more than $50,000 worth of stolen property, approximately 50 firearms, and over 8,400 rounds of assorted ammunition. The firearms consisted of rifles, shotguns, and handguns, including at least three stolen weapons and an AK-47 rifle equipped with a bump stock. Two of the firearms (sawed-off shotguns) were not registered to Miller in the National Firearms Registration and Transfer Record, as required under federal law. 

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, and the Citrus County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.

This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

Orlando, FL – Two men were sentenced to prison yesterday for conspiring to defraud the United States by promoting a nationwide tax fraud scheme to more than 200 participants in at least 19 states.

Iran V. Backstrom, aka Shariyf Noble, of Milledgeville, Georgia, was sentenced to 105 months in prison. His second-in-command, Mehef Bey, aka Arthur Daniels, of Charlotte, North Carolina, was sentenced to 11 years in prison.

According to court documents and statements made in court, Backstrom was the main promoter of the scheme and Bey was one of his co-conspirators. Their scheme involved recruiting clients and preparing false tax returns on the clients’ behalf by convincing them their mortgages and other debts entitled them to tax refunds. Between 2014 and 2016, Backstrom and Bey held seminars across the county to publicize the scheme. As part of the scheme, Backstrom, Bey and their co-conspirators helped prepare and file tax returns for the participants that sought more than $64 million refunds from the IRS. These tax returns falsely claimed that banks and other financial institutions had withheld large amounts of income tax from the participants, thereby entitling the clients to a refund. In reality, the financial institutions had not paid any income to, or withheld any taxes from, these individuals. To make the refund claims appear legitimate, however, Backstrom, Bey and their co-conspirators filed fraudulent tax documents with the IRS that matched the withholding information listed on the tax returns, making them appear as if they had been issued by the banks.

As part of his plea, Backstrom admitted he gave orders to others as part of the scheme. Backstrom and Bey both admitted they and their co-conspirators concealed their roles in the scheme by, among other things, indicating the false tax returns had been “self-prepared,” submitting false IRS forms designed to appear as if they were created by the participants’ financial institutions, and coaching the participants on how to conceal the scheme from the IRS. Backstrom and Bey further admitted they and their co-conspirators charged participants approximately $10,000 to $15,000 in fees for the preparation of each tax return.

Two of Backstrom and Bey’s co-conspirators, Aaron Aqueron and Yomarie Febres, have also pleaded guilty and will be sentenced at a later date. 

“Backstrom and Bey marketed a tax refund scheme throughout the country, costing the government millions of dollars,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “They have now received substantial sentences for their criminal conduct. Others contemplating promoting similar schemes should recognize that they too will be identified and face significant time in prison.”

“Tax fraud is a serious crime,” stated U.S. Attorney Roger Handberg for the Middle District of Florida. “The defendants in this case employed a complex scheme to defraud the IRS out of millions of dollars. We encourage consumers to be vigilant in selecting legitimate tax preparers as we continue to work with our law enforcement partners to prosecute those who willfully violate our nation’s tax laws.”

“With tax season in full swing, the significant sentencings of the defendants is a timely reminder of the consequences awaiting those who file fraudulent returns,” said Special Agent in Charge Brian Payne of IRS-Criminal Investigation. “Dishonest return preparers use a variety of methods to cheat the government. If it seems too good to be true, it is very likely too good to be true. Remember, it is your responsibility to know what is on your income tax return. Taxpayers are encouraged to visit the IRS.gov website for tips on selecting a reputable return preparer.”

In addition to the term of imprisonment, the district judge also ordered both defendants to serve three years of supervised release and pay approximately $26,350,630 in restitution to the United States.

Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Handberg made the announcement.

IRS-Criminal Investigation is investigating the case.

Trial Attorneys Melissa S. Siskind, Kavitha Bondada and Isaiah Boyd III of the Tax Division, and Assistant U.S. Attorney Chauncey A. Bratt for the Middle District of Florida, are prosecuting the case.

Orlando, Florida – United States Attorney Roger B. Handberg announces today that a federal grand jury has returned an indictment charging Justin Dwayne Johnson, Sr. (47, Sanford) with 12 counts of production and attempted production of child sexual abuse images and videos and one count of possession of these materials. If convicted on all counts, Johnson faces a minimum mandatory penalty of 15 years, and up 30 years, in federal prison on each count, and a potential life term of supervised release. The indictment also notifies Johnson that the United States intends to forfeit his electronic devices which are alleged to have been used to commit these offenses.

According to court documents, this investigation began in January 2022 after Seminole County Child Protective Services had been alerted that Johnson was secretly recording his foster children. A forensic examination of Johnson’s cellphone revealed several sexually explicit images and videos depicting minor children, including several children under Johnson’s care that had been photographed or video-recorded in Johnson’s home. The FBI has identified at least 12 child victims who were either under his care or to whom he had access in his home. Additionally, Johnson’s cellphone contained numerous visual depictions of other children being sexually abused. 

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

This case was investigated by the Sanford Police Department, the Seminole County Sheriff’s Office, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Courtney Richardson-Jones and Ilianys Rivera Miranda.

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

Fort Myers, FL – U.S. District Judge Sheri Polster Chappell today sentenced Raynaldo Ray Quiroga (37, LaBelle) to 40 years in federal prison for robbery, brandishing a firearm during a crime of violence, possessing stolen firearms, and possessing a firearm as a convicted felon. A federal jury had found Quiroga guilty on December 16, 2021.

According to evidence presented at trial, Quiroga, a seven-time convicted felon, entered Capital Pawn in LaBelle on the morning of May 19, 2021, falsely impersonating a law enforcement officer by wearing a green sheriff’s deputy uniform, a black tactical vest, a badge, and a duty belt equipped with a firearm. While in the shop, Quiroga brandished his firearm and zip-tied the store’s two employees before stealing six firearms and fleeing the scene. Law enforcement agents quickly identified Quiroga as a suspect and later found multiple pieces of evidence at his residence and in his car connecting him to the robbery.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Hendry County Sheriff’s Office, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Simon R. Eth and Jesus M. Casas.

This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

Tampa, Florida – United States District Judge Thomas P. Barber today sentenced Keon Moore (30, Tampa) to 17 years and 6 months in federal prison for possessing a firearm or ammunition as a convicted felon and possessing controlled substances with the intent to distribute them. Moore had been indicted on June 4, 2020. A jury found him guilty on October 21, 2021.

According to testimony and evidence presented during sentencing and the four-day trial, Moore is a convicted felon and a high-ranking member of Money Power Respect (MPR)—a violent and rapidly growing prison and street gang that operates throughout the greater Tampa Bay area. Prior to being apprehended and convicted in this case, Moore stored guns and drugs for use by himself and others, sold guns and drugs, and threatened violence to collect drug debts. In one of Moore’s private Facebook communications, a person to whom Moore had provided drugs on consignment, but who failed to pay on time, begged Moore not to kill him via drive-by shooting over the $90 he owed Moore.

The charges brought in this case revolved around a Public Storage unit rented by Moore. After a law enforcement drug-detecting dog alerted to Moore’s unit, law enforcement officers executed a search warrant of the unit. Inside the otherwise empty 50 square-foot unit, officers located seven guns, including two rifles; ammunition; approximately 45 grams of pure methamphetamine; 34 grams of cocaine; 53 grams of Eutylone; and 1.6 kilograms of marijuana, among other drugs; and a clothing item containing Moore’s DNA. Ballistics analysis linked one of the guns to five unsolved shootings.

This case was investigated by the FBI, the Hillsborough County Sheriff’s Office, the Florida Department of Law Enforcement, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Michael M. Gordon. This case is part of an ongoing effort to disrupt and dismantle the MPR gang.

This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Roger B. Handberg coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

Tampa, Florida – U.S. District Judge William F. Jung has sentenced Antonio Nunez III (34, Palmetto) to 20 years and 10 months in federal prison for conspiracy to distribute and possess with the intent to distribute one kilogram or more of heroin and 400 grams or more of fentanyl. Nunez had pleaded guilty on October 31, 2019.

According to court documents, beginning no later than March 2016 and continuing through May 2019, Nunez and his co-defendant, Antoine Waiters, conspired to possess heroin, fentanyl, and other controlled substances and sell the drugs from a trap house located in Palmetto, Florida. Over the course of the conspiracy, Nunez and Waiters distributed at least one kilogram of heroin and at least 400 grams of fentanyl and sold fentanyl to confidential sources on multiple occasions. More than $30,000 in U.S. currency, assorted jewelry, and two vehicles were forfeited as proceeds of the conspiracy. 

This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation entitled “Hot Batch.” OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.

This case was investigated by the Drug Enforcement Administration, the Manatee County Sheriff’s Office, and the Bradenton Police Department. It was prosecuted by Assistant United States Attorney Michael Sinacore.

Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Marvin Harris, Jr., aka “Mesh” (23, Fort Myers), to 24 years and 5 months in federal prison for conspiring to distribute fentanyl, cocaine base (crack cocaine), and cocaine. The Court also ordered Harris to forfeit his Mercedes-Benz, $58,217 in seized cash, an 18k gold Datejust Rolex, and multiple gold Cuban link chains, all of which were traceable proceeds of his drug trafficking organization.    

According to court documents, Harris led a drug trafficking organization (DTO) which operated in neighborhoods off Palm Beach Boulevard in Fort Myers.  Harris recruited dealers to work for him and provided them with housing, with those houses serving as the main distribution points for the DTO.

On August 14, 2020, Harris was jailed for contempt of court in connection with a homicide investigation. He continued to run his organization while incarcerated, enlisting his girlfriend, co-defendant Destiny Molina, to supply his dealers with drugs and collect the revenue generated by the business. Recorded phone calls between Harris and Molina captured him teaching Molina how to mix fentanyl with adulterants to increase the profit potential of his product along with other instructions necessary to keep his illegal enterprise afloat.

On October 15, 2020, the FBI executed simultaneous search warrants at Molina’s residence located on Gaillard Avenue in North Port, and Harris’s main drug house located on New York Drive in Fort Myers. Inside Molina’s residence, law enforcement recovered more than $53,000 in cash, multiple pieces of expensive jewelry, over 100 grams of fentanyl and cocaine, and a firearm. At the drug house, law enforcement recovered nearly $5,000 in cash, more fentanyl and cocaine, and another firearm.

Four other members of the conspiracy had previously pleaded guilty in connection with his case:

Name

Charge

Status

Destiny Molina

(20, Fort Myers)

Conspiracy to distribute controlled substances

Faces 5-40 years in prison, sentencing scheduled for 6/6/22

Bradly Griffin, aka “Jit”

(20, Fort Myers)

Conspiracy to distribute controlled substances

Sentenced to 7 years, 3 months in federal prison

Robert Rosado, aka “Drew”

(24, Fort Myers)

Conspiracy to distribute controlled substances; Distribution of a controlled substance

Sentenced to 12 years, 7 months in federal prison

Fabian Kelly, aka “Bob”

(20, Fort Myers)

Conspiracy to distribute controlled substances, possession with intent to distribute a controlled substance; Possession of a firearm in furtherance of a drug trafficking offense

Sentenced to 9 years, 3 months in federal prison

This case was investigated by the Federal Bureau of Investigation, the Lee County Sheriff’s Office, and the Fort Myers Police Department. It was prosecuted by Assistant United States Attorney Michael V. Leeman.

Tampa, Florida – U.S. District Judge Thomas Barber has sentenced James Lee Clark (61, Wilton Manors) to 48 months in federal prison for conspiracy to commit bankruptcy fraud and wire fraud.  Clark had pleaded guilty on December 14, 2021.

According to court documents, from January 2010 through February 2017, Clark, who was a licensed attorney, conspired with his paralegal, Eric Liebman, to defraud mortgage creditors and guarantors holding notes on properties in foreclosure. Clark and Liebman falsely and fraudulently represented to distressed homeowners that they would negotiate with creditors and guarantors to prevent foreclosures in exchange for the homeowners’ execution of quitclaim or warranty deeds for the properties to an entity controlled by Liebman. Clark and Liebman also convinced the homeowners to pay rent or agree to sell their houses.  In order to continue collecting ill-gotten rents and/or profit from the property sales, Clark filed fraudulent bankruptcy petitions in the names of the homeowners to prevent the mortgage creditors from lawfully foreclosing and taking title to the properties.

Additionally, from January 2012 to February 2017, Clark defrauded his clients out of approximately $1.3 million. As part of his practice, Clark acted as a trustee for clients and held their money in various bank accounts.  Instead of using the funds for the purpose intended by his clients, Clark diverted the money into his law firm’s bank accounts, and used it for personal expenses, like gambling, travel, and automobiles. 

Liebman previously pleaded guilty to conspiracy to commit bankruptcy fraud. He was sentenced to 15 months’ imprisonment.

This case was investigated by the Federal Housing Finance Agency – Office of Inspector General and the Federal Bureau of Investigation. The Office of the United States Trustee for the Middle District of Florida (Tampa Division) provided substantial investigative support. It was prosecuted by Special Assistant United States Attorney Chris Poor.

Tampa, FL – United States Attorney Roger B. Handberg announces that a federal jury has convicted Luis Elias Angulo Leones (Ecuador, 29), Jhonis Alexis Landazuri Arboleda (Colombia, 33), and Dilson Daniel Arboleda Quinones (Colombia, 25) of possessing and conspiring to possess with intent to distribute five kilograms or more of cocaine on a vessel subject to the jurisdiction of the United States.  Each defendant faces a mandatory minimum sentence of 10 years, and up to life, in federal prison. Their sentencing hearings have been scheduled for June 15, 2022.  All three individuals were indicted on March 19, 2020.

According to testimony presented at trial, a U.S. Coast Guard (USCG) helicopter spotted a 35-foot open-hull motorboat in the Eastern Pacific Ocean, about 100 miles from the nearest point of land.  The vessel was suspected of drug smuggling because it had multiple engines, multiple fuel containers on deck, was operating without navigational lights at dusk, and was operating in a location where maritime drug smuggling by similar vessels is common.  The USCG Cutter Mohawk launched a small boat to investigate, found the three defendants on board, and determined the vessel to be without nationality, and therefore subject to U.S. jurisdiction.  A search of the motorboat revealed 430 kilograms of cocaine, worth $12.9 million, hidden underneath the vessel’s deck.

This case was investigated by the United States Coast Guard and the Panama Express Strike Force, a standing Organized Crime Drug Enforcement Task Force (OCDETF) Strike Force comprised of agents and analysts from the Drug Enforcement Administration, the Federal Bureau of Investigation, Homeland Security Investigations, the U.S. Coast Guard Investigative Service, the Naval Criminal Investigative Service, and the U.S. Southern Command's Joint Interagency Task Force South. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.

The case was prosecuted by Special Assistant United States Attorney Tereza Ohley and Assistant United States Attorney Lauren Stoia.

A Florida man was sentenced today to four years in prison followed by three years of supervised release for conspiring to violate U.S. firearms laws, making false written statements to federally licensed firearms dealers during the purchase of two firearms, and making false written statements as part of a security clearance background investigation.

Fan Yang, 37, of Jacksonville, was convicted by a federal jury on Nov. 12, 2021. According to court documents, Yang is a Lieutenant in the U.S. Navy, trained in anti-submarine warfare. As a Naval Flight Officer, he flew in the back of the Navy’s P-8 Poseidon, a land-based patrol aircraft, and operated sensors and coordinated tactics.

“Fan Yang held a position of trust with the U.S. government working on anti-submarine warfare,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today, the court held him accountable for violating that trust by lying to the government about significant foreign relationships.”

“This case is about more than federal firearms law. It’s about a former Naval flight officer with top-secret security clearance and trained in anti-submarine warfare, who lied about his connections to the People’s Republic of China on U.S. government employment forms,” said Assistant Director Alan E. Kohler Jr. of the FBI’s Counterintelligence Division. “To ensure only the most trustworthy people have access to sensitive information and military technology, U.S. Government employees have a duty to be truthful in their background investigations. The FBI is grateful to its partners who were instrumental in investigating this case. “

“Lt. Fan Yang swore an oath to protect this country, but instead he posed a significant risk to U.S. national security when he failed to report his contact with the head of a Chinese Defense Contracting firm,” said Special Agent in Charge Sherri E. Onks of the FBI’s Jacksonville Field Office. “This act was even more egregious considering Lt. Yang’s Top Secret security clearance and active-duty status as an officer in the U.S. Navy. The FBI and our law enforcement partners will continue to use our full investigative capabilities to investigate, expose and prevent further threats to U.S. national security posed by foreign competitors and adversaries.”

“Lt. Yang brought discredit to the Navy and threatened military operational readiness when he decided to make straw purchases of firearms for a foreign national and lie about that relationship during his security clearance background investigation,” said Special Agent in Charge Michelle Kramer of the Naval Criminal Investigative Service (NCIS) Office of Special Projects. “This sentence should serve as a warning that NCIS and our law enforcement partners are committed to rooting out criminality that jeopardizes U.S. warfighter superiority. We sincerely thank the NCIS Southeast Field Office and the FBI for their substantial efforts during this investigation.”

Prior to becoming a commissioned naval officer, Fan Yang formed a relationship online with Songtao Ge, a citizen of the People’s Republic of China. Photographs admitted at trial showed that the two eventually met in person in 2013, while Yang was in Navy flight training in Pensacola. In 2016, while Yang was stationed in Jacksonville, Yang recommended that Ge hire Yang’s wife, Yang Yang, as an employee of Shanghai Breeze Technology Co. Ltd., Ge’s company headquartered in Shanghai, China. That company purchased in the United States and exported to China maritime equipment designed for law enforcement and military missions.

From the time that she was hired, Yang Yang received more than $300,000 in payments from Shanghai Breeze, its creditors, and Ge’s executive assistant and co-defendant, Zheng Yan. The money was used to pay Yang Yang’s salary, Shanghai Breeze’s expenses in the United States, and for goods that Ge Songtao ordered the Yangs to purchase. The funds were frequently routed through the Yangs’ family business, BQ Tree LLC.

In 2017 and again in 2018, acting on Ge’s instructions, Fan Yang purchased two handguns for him, specifically a Sig Sauer 9 mm pistol and a Glock 9mm pistol. Songtao reimbursed the Yangs for both purchases and had the Sig Sauer pistol engraved with his initials – “G.S.T.” – and the phrase “Never Out of the Fight.” Each time he purchased a firearm, Fan Yang completed a Firearms Transactions Record (known as ATF Form-4473) on which he falsely represented that he was purchasing the firearm for himself, rather than for Ge.

The evidence at trial showed that although Ge employed Yang Yang, had been to the Yangs’ home, and had paid for the Yangs to travel and visit him, Fan Yang consistently hid their relationship from the Navy. For example, in July 2018, Yang asked for time off from his Navy chain of command, claiming that he was travelling with his family to “Disney” when in fact, he and his wife secretly travelled to Nebraska and met with Ge.

Then, in January 2019, while assigned as a tactics instructor at the Maritime Patrol and Reconnaissance Weapons School in Jacksonville, Fan Yang completed and signed a background questionnaire as part of the renewal of his top secret security clearance. That questionnaire (called an SF-86 or eQIP) required the disclosure of a variety of information, including any close or continuing contact with foreign nationals. Yang failed to disclose the extent of his contacts with Ge, and hid that he had maintained a bank account in China, sometimes worked for his family business, BQ Tree LLC, and possessed an expired Chinese passport.

On Nov. 2, 2020, Ge pleaded guilty to conspiring to submit false export information through the federal government’s Automated Export System and to export special forces maritime raiding craft and engines to China fraudulently, and attempting to export that equipment fraudulently, in violation of U.S. law. On July 14, 2021, he was sentenced to three years and six months years in federal prison. On September 15, 2020, Yang Yang pleaded guilty to the same two charges to which Ge had pleaded guilty, and on Dec. 9, 2020, was sentenced to time-served, or the equivalent of approximately 14 months’ imprisonment. On Aug. 13, 2020, co-defendant Zheng Yan pleaded guilty to conspiring to submit false export information and to export the raiding craft and engines fraudulently, in violation of U.S. law, and on March 31, 2021, was sentenced to a time-served sentence or the equivalent of approximately six months’ imprisonment and 11 months’ home-detention.

This case was investigated by the FBI, NCIS, the U.S. Department of Commerce – Bureau of Industry and Security, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

Assistant U.S. Attorneys Michael J. Coolican and Kirwinn Mike for the Middle District of Florida, as well as Senior Trial Attorney Heather Schmidt of the National Security Division’s Counterintelligence and Export Section are prosecuting the case.

Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.

Jacksonville, Florida – U.S. District Judge Harvey E. Schlesinger today sentenced Fan Yang (37, Jacksonville) to 48 months in federal prison, followed by 3 years’ supervised release, for conspiring with his co-defendants Ge Songtao (52, Nanjing, People’s Republic of China) and Yang Yang (36, Jacksonville) to violate U.S. firearms laws, making false written statements to federally licensed firearms dealers during the purchase of two firearms and making false written statements as part of a security clearance background investigation.  The Court also ordered Yang to forfeit the firearms that he purchased as a part of the conspiracy, specifically, a Sig Sauer 9mm pistol and a Glock 9mm pistol.  A federal jury found Yang guilty on November 12, 2021.

According to evidence presented at trial, Yang is a Lieutenant in the U.S. Navy, trained in anti-submarine warfare.  As a Naval Flight Officer, he flew in the back of the Navy’s P-8 Poseidon, a land-based patrol aircraft, and operated sensors and coordinated tactics.

Prior to becoming a commissioned naval officer, Yang formed a relationship online with Ge Songtao, a citizen of the People’s Republic of China.  Photographs admitted at trial showed that the two eventually met in person in 2013, while Yang was in Navy flight training in Pensacola.  In 2016, while Yang was stationed in Jacksonville, Yang recommended that Ge Songtao hire Yang’s wife, Yang Yang, as an employee of Shanghai Breeze Technology Co. Ltd., Ge Songtao’s company headquartered in Shanghai, China.  That company purchased in the U.S. and exported to China maritime equipment designed for law enforcement and military missions.

From the time that she was hired, Yang Yang received more than $300,000 in payments from Shanghai Breeze, its creditors, and Ge Songtao’s executive assistant and co-defendant, Zheng Yan.  The money was used to pay Yang Yang’s salary, Shanghai Breeze’s expenses in the U.S., and for goods that Ge Songtao ordered the Yangs to purchase.  The funds were frequently routed through the Yangs’ family business, BQ Tree LLC.

In 2017 and again in 2018, acting on Ge Songtao’s instructions, Fan Yang purchased two handguns for him, specifically a Sig Sauer 9mm pistol and a Glock 9mm pistol.  Ge Songtao reimbursed the Yangs for both purchases and had the Sig Sauer pistol engraved with his initials – “G.S.T.” – and the phrase “Never Out of the Fight.”  Each time he purchased a firearm, Fan Yang completed a Firearms Transactions Record (known as ATF Form-4473) on which he falsely represented that he was purchasing the firearm for himself, rather than for Ge Songtao.The evidence at trial showed that although Ge Songtao employed Yang’s wife, had been to the Yangs’ home, and had paid for the Yangs to travel and visit him, Fan Yang consistently hid their relationship from the Navy.  For example, in July 2018, Yang asked for time off from his Navy chain of command, claiming that he was travelling with his family to “Disney” when in fact, he and his wife secretly travelled to Nebraska and met with Ge.

Then, in January 2019, while assigned as a tactics instructor at the Maritime Patrol and Reconnaissance Weapons School in Jacksonville, Yang completed and signed a background questionnaire as part of the renewal of his top secret security clearance.  That questionnaire (called an SF-86 or eQIP) required the disclosure of a variety of information, including any close or continuing contact with foreign nationals.  Yang failed to disclose the extent of his contacts with Ge Songtao, and hid that he had maintained a bank account in China, sometimes worked for his family business, BQ Tree LLC, and possessed an expired Chinese passport.

On November 2, 2020, Ge Songtao pleaded guilty to conspiring to submit false export information through the federal government’s Automated Export System and to export special forces maritime raiding craft and engines to China fraudulently, and attempting to export that equipment fraudulently, in violation of U.S. law.  On July 14, 2021, he was sentenced to three years and six months years in federal prison.  On September 15, 2020, Yang Yang pleaded guilty to the same two charges to which Ge Songtao had pleaded guilty, and on December 9, 2020, was sentenced to time-served, or the equivalent of approximately 14 months’ imprisonment.  On August 13, 2020, co-defendant Zheng Yan pleaded guilty to conspiring to submit false export information and to export the raiding craft and engines fraudulently, in violation of U.S. law, and on March 31, 2021, was sentenced to a time-served sentence or the equivalent of approximately 6 months’ imprisonment and 11 months’ home-detention.

“Lt. Fan Yang swore an oath to protect this country, but instead he posed a significant risk to U.S. national security when he failed to report his contact with the head of a Chinese Defense Contracting firm,” said Sherri E. Onks, Special Agent in Charge of the FBI Jacksonville Division.  “This act was even more egregious considering Lt. Yang’s Top Secret security clearance and active duty status as an officer in the U.S. Navy.  The FBI and our law enforcement partners will continue to use our full investigative capabilities to investigate, expose, and prevent further threats to U.S. national security posed by foreign competitors and adversaries.”

“Lt. Yang brought discredit to the Navy and threatened military operational readiness when he decided to make straw purchases of firearms for a foreign national and lie about that relationship during his security clearance background investigation,” said Special Agent in Charge Michelle Kramer of the NCIS Office of Special Projects. “This sentence should serve as a warning that NCIS and our law enforcement partners are committed to rooting out criminality that jeopardizes U.S. warfighter superiority. We sincerely thank the NCIS Southeast Field Office and the FBI for their substantial efforts during this investigation.”

This case was investigated by the Federal Bureau of Investigation, the U.S. Naval Criminal Investigative Service, the U.S. Department of Commerce – Bureau of Industry and Security, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.  It was prosecuted by Assistant United States Attorneys Michael J. Coolican and Kirwinn Mike, as well as Heather Schmidt, Senior Trial Attorney, Counterintelligence and Export Section, U.S. Department of Justice.

Fort Myers, Florida –United States Attorney Roger B. Handberg announces that Amber Rewis Bruey (35, Lehigh Acres) today pleaded guilty to conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and illegal monetary transactions. Her husband and co-conspirator, Anthony James Bruey, previously pleaded guilty to the same charges on February 4, 2022. A sentencing date has not yet been set.

Defendant

Charge

Maximum Penalty per Count

Amber Rewis Bruey

Conspiracy to Commit Wire Fraud

30 years in federal prison

Wire Fraud (10 Counts)

30 years in federal prison

Conspiracy to Commit Money Laundering

10 years in federal prison

Illegal Monetary Transactions (4 Counts)

10 years in federal prison

Anthony James Bruey

Conspiracy to Commit Wire Fraud

30 years in federal prison

Wire Fraud (2 Counts)

30 years in federal prison

Conspiracy to Commit Money Laundering

10 years in federal prison

Illegal Monetary Transactions (2 Counts)

10 years in federal prison

 

According to court documents, between April 2020 and June 2020, the Brueys conspired to submit a total of 26 fraudulent Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) applications to Small Business Administration (SBA) approved lenders, loan processing companies, and the SBA. The applications contained numerous false and fraudulent representations, including the applicant’s dates of operation, payroll, gross revenues, total number of employees, and the criminal histories of the applicants or business owners.

The Brueys’ false and fraudulent representations caused PPP lenders and the SBA to approve 12 of the loans and disburse a total of $881,058.35 in PPP and EIDL funds. The Brueys then unlawfully used the funds to purchase a $211,457 residence in North Carolina, a 2019 GMC Yukon SUV, a 2020 Honda Talon, and to make a $23,566 restitution payment as a condition of probation in a criminal court case for Amber Bruey.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.

The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if the business spends the proceeds on these expenses within a set time period and uses at least a certain percentage of the loan toward payroll expenses.

The EIDL program is designed to provide economic relied to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities, and fixed debt payments. If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used for the same purpose as the PPP funds. 

This case was investigated by the United States Secret Service. It is being prosecuted by Assistant United States Attorneys Trent Reichling and Suzanne Nebesky.

Tampa, FL – U.S. District Judge Mary S. Scriven today sentenced Dr. Zachary Bird (51, Tampa) to 24 months in federal prison, followed by 1 year of supervised release, for structuring cash transactions to evade bank reporting requirements. As part of his sentence, the Court also entered a money judgment in the amount of $481,526.76, which represents the total amount of cash illegally structured in the case.  A federal jury found Bird guilty of the offense on May 21, 2021. He was acquitted on other counts.

According to court documents, Bird operated Physicians Wellness and Pain Specialists, a pain management clinic, from May 2014 until it shuttered in June 2018. Bird used the proceeds he earned as a doctor to structure cash deposits for the purchase of a piece of real property in LaBelle, Florida. From February 6 through February 12, 2015, Bird structured 22 cash deposits, each under $10,000 and often occurring on the same day and minutes apart, totaling $193,175.76. Between March 10 and October 26, 2015, Bird structured another 38 cash deposits amounting to $288,351. In total, Bird structured $481,526.76 in cash deposits.

This case was investigated by the Drug Enforcement Administration—Tampa District Office. It was prosecuted by Assistant United States Attorneys Greg Pizzo and Kelley Howard-Allen.

Tampa, Florida–United States Attorney Roger B. Handberg announces that Eurich Z. Griffin III has pleaded guilty to conspiracy to defraud the United States by promoting a tax fraud scheme and helping others prepare and file false tax returns with the Internal Revenue Service (IRS). Griffin faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.

According to the plea agreement, between 2013 and 2018, Griffin offered tax-preparation and consulting services to clients for a fee and recruited clients by convincing them that their mortgage debt payments entitled them to tax refunds, and helped to prepare and present false tax returns on their behalf. These tax returns falsely claimed that banks and other financial institutions had withheld large amounts of income tax from the clients, thereby entitling them to refunds. In reality, the financial institutions had not paid any income to or withheld any taxes from these individuals. To make the refund claims appear legitimate, however, Griffin and the conspirators filed tax documents with the IRS that matched the withholding information listed on the tax returns. These tax returns collectively sought $5,231,749.15 from the IRS. As part of the conspiracy, Griffin also independently submitted six fictitious instruments totaling $1,354,809.21 to the IRS.

This case was investigated by IRS-Criminal Investigation. The IRS-CI investigates those who willfully and intentionally violate their known legal duty of filing and paying their fair share of taxes. It is being prosecuted by Assistant United States Attorney Jennifer L. Peresie.

Fort Myers, Florida –United States Attorney Roger B. Handberg announces that Jennifer Hansen has pleaded guilty to three counts of filing false tax returns.  Hansen faces a maximum penalty of three years in federal prison for each count.

According to the plea agreement, Hansen, a registered nurse, was employed by a medical examination company to evaluate individuals who were seeking life insurance policies.  In that role, Hansen earned hundreds of thousands of dollars in income during the years 2016, 2017, and 2018, all of which she intentionally omitted from her federal income tax returns.  Through her false returns, Hansen caused a tax loss to the United States of $257,830.44.  As part of her plea agreement, Hansen will make full restitution to the United States in that amount.

During the investigation into Hansen’s tax crimes, investigators also learned that a substantial portion of Hansen’s unreported income was illegitimately earned.  In that regard, Hansen generated the illegitimate income by submitting false records to her employer claiming that she had examined a real patient, when, in fact, she had not.  As part of her plea agreement, Hansen will make full restitution to her previous employer in the amount of more than $1,000,000. 

This case was investigated by the Internal Revenue Service – Criminal Investigation (IRS-CI) and the Federal Bureau of Investigation. The IRS-CI investigates those who willfully and intentionally violate their known legal duty of filing and paying their fair share of taxes. It is being prosecuted by Assistant United States Attorney Michael V. Leeman.

Tampa, Florida –United States Attorney Roger B. Handberg announces that Jamel Muldrew (33, Houston, TX) has pleaded guilty to sex trafficking of a minor, coercion and enticement of a minor to engage in sexual activity, use of a facility of interstate commerce in aid of racketeering, and interstate transportation of a person for prostitution.  Muldrew faces a minimum mandatory sentence of 10 years, and up to life, in federal prison.  A sentencing date has not yet been set.

According to court documents, on April 9, 2021, law enforcement coordinated an operation in Tampa, Florida to identify victims of human trafficking, rescue those victims, and identify and arrest their traffickers. As part of this operation, an undercover officer observed what appeared to be a potentially underage female in an online escort advertisement and arranged for the minor victim to meet him at a hotel room for a commercial sex act, in exchange for $800. Soon thereafter, Muldrew arrived at the location driving a black Chevrolet Impala, with the minor victim in the passenger seat. The victim exited the vehicle, walked to the hotel room and entered, and was detained. As law enforcement approached Muldrew, he attempted to flee but was ultimately apprehended. At the time of his arrest, officers recovered multiple fictious identity cards Muldrew had in his possession, for both himself and the minor victim. The subsequent investigation revealed that Muldrew had been trafficking the minor victim across the country to engage in prostitution. Specifically, between February and April 2021, Muldrew had trafficked the minor victim for the purpose of commercial sex in Texas, New Jersey, Maryland, North Carolina, Georgia, and Florida, where he was ultimately arrested.

This case was investigated by Homeland Security Investigations, the Hillsborough County Sheriff’s Office, and the Houston Police Department. It is being prosecuted by Assistant United States Attorney Ilyssa M. Spergel and Carlton C. Gammons.

This case was brought as part of the Tampa Bay Human Trafficking Task Force of the Middle District of Florida, which is one of 13 task forces in the country to receive grant funding from the Department of Justice’s Bureau of Justice Assistance. The Task Force is a collaboration of local, state, and federal law enforcement agents working together with organizations to detect, investigate, and prosecute human trafficking in the Tampa Bay area. This includes trafficking of minors, forced labor, transnational sex trafficking, and sex trafficking of adults by force, fraud, or coercion. More information about the Tampa Bay Human Trafficking Task Force can be found at www.justice.gov/usao-mdfl/humantrafficking. Information on the Department of Justice’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.

Tampa, Florida – U.S. District Judge Virginia Covington has sentenced Obed Almaguer Garrido (48, Tampa) to five years’ probation, during which period he will be prohibited from operating any watercraft, and to 100 community service hours, for violating a U.S. Coast Guard Captain of the Port Order. Garrido had pleaded guilty on August 18, 2021.

According to court documents, Garrido was the owner of a state-registered recreational vessel and operated a recreational vessel in commercial passenger service on the waters of Tampa Bay (Tampa, FL) without a U.S. Coast Guard (USCG) Merchant mariner credential.  The USCG issues Merchant Mariner Credentials and inspects passenger vessels to ensure the safety of patrons chartering vessels.  Despite being issued a Captain of the Port Order to cease operations, Garrido continued to operate in commercial passenger service. Illegal passenger vessels pose serious danger to passengers because unlicensed operators do not have the requisite knowledge to safely operate a vessel in commercial passenger service and vessels do not meet stringent Coast Guard safety requirements. Tampa Bay is a tourist destination attracting visitors from throughout the world. 

“The Coast Guard will continue to aggressively pursue vessel operators who needlessly place the lives of patrons at risk by not complying with Coast Guard passenger vessel regulations," said Captain Matthew Thompson, Commander of Coast Guard Sector St. Petersburg. "We'd like to remind those who charter a boat, they should choose a vessel with a certified captain and crew. This criminal conviction demonstrates the aggressive posture the Coast Guard and our partners from the U.S. Attorney’s Office have taken protect the lives of those who charter passenger vessels.”

This case was investigated by the U.S. Coast Guard Investigative Service (Southeast Region), with assistance from U.S. Coast Guard Sector (St. Petersburg Investigations Division).  It was prosecuted by U.S. Coast Guard Special Assistant U.S. Attorney Tereza Ohley.

 

Jacksonville, Florida – United States Attorney Roger B. Handberg announced today that Matthew Christopher Yates (27, Hastings) has been arrested and charged with using the internet to attempt to entice a 14-year-old child to engage in sexual activity. Yates faces a minimum mandatory penalty of 10 years, and up to life, in federal prison, and a potential life term of supervised release. At the time of his arrest on March 11, 2022, Yates was an eighth-grade teacher at Veritas Classical School in St. Augustine, Florida.

According to court documents, on February 11, 2022, an undercover FBI agent who was posing online as a 14-year-old child responded to an online notice posted by the user “English teacher” on a particular online social media application. The user was subsequently identified as Yates. During the online conversation, the “child” advised that she was 14 years old and in the eighth grade, and Yates stated that he was a teacher and suggested that they “should meet up” at the beach. The online conversation continued on another social media platform and Yates (using the name “prof0987”) and the “child” exchanged photos of each other.

Between February 22, 2022, and March 11, 2022, Yates and the “child” exchanged numerous text messages and Yates sent several photos that were either sexually suggestive or sexually explicit, including one that purportedly depicted Yates’ penis. On March 6, 2022, Yates texted the “child,” using explicit language, suggesting that they meet.  On March 8, 2022, Yates asked the “child” to meet in person on Friday, March 11, 2022, to engage in sexual activity. Yates provided the undercover agent with details about the sexual acts that he wished to perform on the “child.” On March 10, 2022, Yates and the “child” confirmed plans to meet, and Yates asked the “child” if “she” wanted to record their planned sexual activity on video. On the afternoon of March 11, 2022, Yates drove his vehicle to a prearranged location in Jacksonville to meet the “child” for sex and was arrested by FBI agents. Upon searching Yates, agents found him to be in possession of several condoms.  

This case was investigated by the Federal Bureau of Investigation (Jacksonville). It is being prosecuted by Assistant United States Attorney D. Rodney Brown.

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

Ocala, Florida –United States Attorney Roger B. Handberg announces that Edward Boney (40, Washington, DC), a federal prisoner at the Coleman Federal Correctional Complex, has entered pleaded guilty to assaulting a correctional officer and possessing contraband. Boney faces a maximum penalty of 30 years in federal prison. Boney had been indicted on October 12, 2021.

According to court records, Boney is currently serving a 13-year federal sentence at FCC-Coleman for armed robbery and assault on a law enforcement officer. On November 20, 2020, Boney refused to comply with correctional officers’ directions and told the officers, “Today is a good day to die.” Boney then raised his arm and struck a correctional officer multiple times with a sharp metal object. The correctional officer suffered three stab wounds on his arms. Three additional correctional officers were also injured during the incident as they attempted to control and detain Boney.

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

Fort Myers, Florida –United States Attorney Roger B. Handberg announces that a federal jury has found Alex Winters (43, Leesburg) guilty of possessing a firearm and ammunition as a convicted felon, possessing controlled substances with intent to distribute, and possessing a firearm in furtherance of a drug trafficking crime. Winters, who qualifies as an Armed Career Criminal based upon his criminal history, faces a mandatory minimum sentence of 20 years, and up to life, in federal prison. His sentencing hearing has not yet been scheduled.  Winters was indicted on February 24, 2021.

According to testimony presented at trial, on May 7, 2020, deputies with the Collier County Sheriff’s Office stopped a car for a traffic violation. After a deputy noted the smell of marijuana, the car was searched. Beneath Winters’s seat, deputies found a loaded 9mm pistol and fanny pack containing distribution amounts of crack cocaine, powder cocaine, and eutylone. Also in the fanny pack, deputies found a digital scale, baggies, a drug ledger, and 9mm ammunition. Winters’s DNA was later analyzed and compared to DNA swabs taken from the firearm and he was determined to be a possible contributor.

This case was investigated by the Collier County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorneys Trent Reichling and Mark Morgan.

This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Roger B. Handberg coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

Tampa, FL – A Canadian man was extradited yesterday from Canada to the United States on an indictment returned in the Middle District of Florida that charges him with conspiracy to commit computer fraud and wire fraud, intentional damage to a protected computer, and transmitting a demand in relation to damaging a protected computer arising from his alleged participation in a sophisticated form of ransomware known as NetWalker. NetWalker ransomware has targeted dozens of victims all over the world, including companies, municipalities, hospitals, law enforcement, emergency services, school districts, colleges, and universities. Attacks have specifically targeted the healthcare sector during the COVID-19 pandemic, taking advantage of the global crisis to extort victims.

According to court documents, Sebastien Vachon-Desjardins, 34, of Gatineau, Quebec, Canada, from April through December 2020, conspired to and did intentionally damage a protected computer and transmit a ransom demand in connection with doing so. The indictment also alleges that the United States intends to forfeit more than $27 million, which is alleged to be traceable to proceeds of the offenses. The defendant will make his initial appearance today in federal court in Tampa before U.S. Magistrate Judge Julie S. Sneed.

“As exemplified by the seizure of cryptocurrency by our Canadian partners, we will use all legally available avenues to pursue seizure and forfeiture of the alleged proceeds of ransomware, whether located domestically or abroad,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The department will not cease to pursue and seize cryptocurrency ransoms, thereby thwarting the attempts of ransomware actors to evade law enforcement through the use of virtual currency.”

“Ransomware is a multi-billion-dollar criminal enterprise that transcends physical and political boundaries. International collaboration is essential to identify the perpetrators of these sophisticated schemes,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “This case illustrates effective international law enforcement cooperation directed at identifying cybercriminals, holding them accountable for their alleged criminal actions, and recovering funds allegedly stolen from their victims.”

“This investigation is yet another example of the outstanding work conducted by the Tampa FBI Cyber program, the Middle District of Florida, the FBI’s Cyber Division, and our law enforcement partners around the world,” said Acting Special Agent in Charge Sanjay Virmani of the FBI’s Tampa Field Office. “It is also a reminder that the FBI continues to work tirelessly to identify, locate, and apprehend those who would prey upon the innocent and bring about justice for the citizens of the United States.” 

Vachon-Desjardins was extradited to the United States pursuant to the extradition treaty between the United States and Canada. Pursuant to a request submitted by U.S. authorities, Canadian law enforcement officers arrested Vachon-Desjardins in Gatineau, Quebec, on Jan. 27, 2021, and executed a search warrant at Vachon-Desjardins’s home in Gatineau. During the search, officers discovered and seized 719 Bitcoin, valued at approximately $28,151,582 as of today’s date, and $790,000 in Canadian currency.

The FBI’s Tampa Field Office is investigating the case. 

Trial Attorney Sonia V. Jimenez of the Justice Department’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Carlton C. Gammons and Suzanne Nebesky of the U.S. Attorney’s Office for the Middle District of Florida are prosecuting the case. The Justice Department’s Office of International Affairs provided valuable assistance in securing Vachon-Desjardin’s arrest and extradition. The U.S. Marshals Service transported Vachon-Desjardins from Canada to the United States.

The investigation benefited from law enforcement cooperation by the Royal Canadian Mounted Police, Ontario Provincial Police, Gatineau Police Service, and National Cybercrime Coordination Unit.

An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

A Canadian man was extradited yesterday from Canada to the United States on an indictment returned in the Middle District of Florida that charges him with conspiracy to commit computer fraud and wire fraud, intentional damage to a protected computer, and transmitting a demand in relation to damaging a protected computer arising from his alleged participation in a sophisticated form of ransomware known as NetWalker. NetWalker ransomware has targeted dozens of victims all over the world, including companies, municipalities, hospitals, law enforcement, emergency services, school districts, colleges, and universities. Attacks have specifically targeted the healthcare sector during the COVID-19 pandemic, taking advantage of the global crisis to extort victims.

According to court documents, Sebastien Vachon-Desjardins, 34, of Gatineau, Quebec, Canada, from April through December 2020, conspired to and did intentionally damage a protected computer and transmit a ransom demand in connection with doing so. The indictment also alleges that the United States intends to forfeit more than $27 million, which is alleged to be traceable to proceeds of the offenses. The defendant will make his initial appearance today in federal court in Tampa before U.S. Magistrate Judge Julie S. Sneed.

“As exemplified by the seizure of cryptocurrency by our Canadian partners, we will use all legally available avenues to pursue seizure and forfeiture of the alleged proceeds of ransomware, whether located domestically or abroad,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The department will not cease to pursue and seize cryptocurrency ransoms, thereby thwarting the attempts of ransomware actors to evade law enforcement through the use of virtual currency.”

“Ransomware is a multi-billion-dollar criminal enterprise that transcends physical and political boundaries. International collaboration is essential to identify the perpetrators of these sophisticated schemes,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “This case illustrates effective international law enforcement cooperation directed at identifying cybercriminals, holding them accountable for their alleged criminal actions, and recovering funds allegedly stolen from their victims.”

“This investigation is yet another example of the outstanding work conducted by the Tampa FBI Cyber program, the Middle District of Florida, the FBI’s Cyber Division, and our law enforcement partners around the world,” said Acting Special Agent in Charge Sanjay Virmani of the FBI’s Tampa Field Office. “It is also a reminder that the FBI continues to work tirelessly to identify, locate, and apprehend those who would prey upon the innocent and bring about justice for the citizens of the United States.” 

Vachon-Desjardins was extradited to the United States pursuant to the extradition treaty between the United States and Canada. Pursuant to a request submitted by U.S. authorities, Canadian law enforcement officers arrested Vachon-Desjardins in Gatineau, Quebec, on Jan. 27, 2021, and executed a search warrant at Vachon-Desjardins’s home in Gatineau. During the search, officers discovered and seized 719 Bitcoin, valued at approximately $28,151,582 as of today’s date, and $790,000 in Canadian currency.

The FBI’s Tampa Field Office is investigating the case. 

Trial Attorney Sonia V. Jimenez of the Justice Department’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Carlton C. Gammons and Suzanne Nebesky of the U.S. Attorney’s Office for the Middle District of Florida are prosecuting the case. The Justice Department’s Office of International Affairs provided valuable assistance in securing Vachon-Desjardin’s arrest and extradition. The U.S. Marshals Service transported Vachon-Desjardins from Canada to the United States.

The investigation benefited from law enforcement cooperation by the Royal Canadian Mounted Police, Ontario Provincial Police, Gatineau Police Service, and National Cybercrime Coordination Unit.

An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Tampa, Florida – United States Attorney Roger B. Handberg announces that Guillermo Inamagua (56, Davenport) and Mayra Velasquez (34, Apopka) have pleaded guilty to one count of conspiracy to commit wire fraud and one count of conspiracy to defraud the United States. Each faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.

According to the plea agreement, Inamagua and Velasquez each owned and managed a construction company which they had registered with the State of Florida. Inamagua’s company was named First Construction and Velasquez’s company was named Best Construction. These companies purported to supply construction services and a labor force to work for construction contractors. As such, each company was required to secure and maintain adequate worker’s compensation insurance coverage in order to comply with Florida law. The providers of worker’s compensation insurance based the premiums they charged and the amount of coverage they provided on the number of employees a company had and the total annual payroll of those employees. Inamagua’s and Velasquez’s companies each had agreements with contractors and subcontractors to use workers purported to be their company’s employees at construction sites. These workers were often undocumented aliens who were actually working for and under the daily supervision and direction of the contractors. Inamagua and Velasquez or others would regularly receive “payroll checks” from these contractors that were cashed at various financial institutions to pay the purported “employees” of either Best or First Construction.

During the time periods charged in their respective criminal informations, Inamagua and Velasquez each falsely and fraudulently represented in insurance applications that their company had very limited payroll and a very limited number of employees that worked on construction jobsites. They also caused the transmission of false and fraudulent wire communications to numerous contractors representing that their companies’ employees had full worker’s compensation coverage. In reality, Inamagua’s company received and cashed more than $18 million in checks from various construction contractors for his purported employees.  This payroll figure far exceeded the very limited payroll figures that Inamagua had reported to his worker’s compensation insurance company. Velasquez’s company received and cashed more than $7 million in checks from various construction contractors for her purported employees. This payroll figure far exceeded the very limited payroll figures that Velasquez had reported to her worker’s compensation insurance company. As a result, these employees performed work on jobsites without adequate insurance coverage. In addition, the insurers lost premiums they would have charged had they been aware of the true number of workers their policies were being manipulated to cover.

As a result of these misrepresentations, Best and First Construction also disclaimed responsibility for ensuring that jobsite workers were legally authorized to work in the United States and that required state and federal payroll taxes were being paid for these workers. Thus, the contractors who actually paid these workers’ wages and used their services were also able to avoid responsibility for those duties as well. Over the course of this conspiracy, Inamagua’s misrepresentations caused a loss to the IRS of approximately $4,673,571 in unpaid payroll taxes. Velasquez’s misrepresentations caused a loss to the IRS in the amount of approximately $1,769,000.

These two cases are part of a series of prosecutions related to similar construction industry-related fraud in the Tampa Bay area. This case was investigated by the Internal Revenue Service – Criminal Investigation and the State of Florida Department of Financial Services – Division of Investigative and Forensic Services. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.

Comprehensive Health Services LLC (CHS), located in Cape Canaveral, Florida, has agreed to pay $930,000 to resolve allegations that it violated the False Claims Act by falsely representing to the State Department and the Air Force that it complied with contract requirements relating to the provision of medical services at State Department and Air Force facilities in Iraq and Afghanistan. This is the Department of Justice’s first resolution of a False Claims Act case involving cyber fraud since the launch of the department’s Civil Cyber-Fraud Initiative, which aims to combine the department’s expertise in civil fraud enforcement, government procurement and cybersecurity to combat new and emerging cyber threats to the security of sensitive information and critical systems. 

CHS is a provider of global medical services that contracted to provide medical support services at government-run facilities in Iraq and Afghanistan. Under one of the contracts, CHS submitted claims to the State Department for the cost of a secure electronic medical record (EMR) system to store all patients’ medical records, including the confidential identifying information of United States service members, diplomats, officials and contractors working and receiving medical care in Iraq. The United States alleged that, between 2012 and 2019, CHS failed to disclose to the State Department that it had not consistently stored patients’ medical records on a secure EMR system. When CHS staff scanned medical records for the EMR system, CHS staff saved and left scanned copies of some records on an internal network drive, which was accessible to non-clinical staff. Even after staff raised concerns about the privacy of protected medical information, CHS did not take adequate steps to store the information exclusively on the EMR system.

The State Department and Air Force contracts also required CHS to provide medical supplies, including controlled substances, that were approved by the U.S. Food and Drug Administration (FDA) or European Medicines Agency (EMA) and manufactured in accordance with federal quality standards. The United States alleged that, between 2012 and 2019, CHS falsely represented to the State Department and Air Force that certain substances provided under those contracts were approved by the FDA or EMA. CHS lacked a Drug Enforcement Agency license necessary for exporting controlled substances from the United States to Iraq. CHS obtained controlled substances by having CHS physicians based in Florida send letters requesting that a South African physician prescribe the controlled substances. A South African shipping company then received controlled substances that were not approved by the FDA or EMA and sent them to CHS in Iraq, where CHS supplied the unapproved controlled substances to patients under the State Department and Air Force contracts.

“This settlement demonstrates the department’s commitment to use its civil enforcement tools to pursue government contractors that fail to follow required cybersecurity standards, particularly when they put confidential medical records at risk,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to ensure that those who do business with the government comply with their contractual obligations, including those requiring the protection of sensitive government information.”

“Protecting the health and safety of servicemembers, diplomats, and other government employees working abroad is of utmost importance,” said U.S. Attorney Breon Peace for the Eastern District of New York. “The defendants were required to maintain personal health information securely and provide only approved pharmaceuticals to patients. This settlement serves notice to federal contractors that they will be held accountable for conduct that puts private medical records and patient safety at risk. We are grateful for the support of our colleagues in the Middle District of Florida, the State Department and the Air Force for their assistance in investigating these important claims.”

“Government contractors should never disregard their obligations when providing medical care to members of the military,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “We thank our colleagues in the Eastern District of New York, as well as the investigative agencies who supported this effort, for their steadfast pursuit of this important investigation.”

“This settlement demonstrates the commitment State Department, Office of Inspector General, Special Agents have to protect the safety, well-being, and personal information of State Department personnel,” said Special Agent in Charge Elisabeth “Elli” Kaminsky of the U.S. Department of State OIG, Office of Investigations. “Our hope is that this outcome will send a clear message that cutting corners on State Department contracts has significant consequences.”

“The Department of the Air Force Office of Special Investigations (OSI) is undeterred in its approach to hunting down fraud within our Foreign Military Sales programs and ensuring the offenders are held accountable,” said Special Agent in Charge Nicholas J. Groesbeck of OSI Procurement Fraud Detachment 4, Wright-Patterson AFB, OH. “We applaud the complainant for coming forward, which allowed our joint partners to protect the governments procurement process and carry out the warfighting mission.” 

The civil settlement includes the resolution of two actions brought under the qui tam or whistleblower provisions of the False Claims Act against CHS. Under the qui tam provisions of the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of the settlement if the government takes over the case and reaches a monetary agreement with the defendant. The qui tam cases are captioned United States ex rel. Lawler v. Comprehensive Health Servs., Inc. et al., Case No. 20-cv-698 (E.D.N.Y.), and United States ex rel. Watkins et al. v. CHS Middle East, LLC, Case No. 17-cv-4319 (E.D.N.Y.).

The investigation and resolution of this matter illustrates the government’s emphasis on combatting cyber-fraud.  On October 6, 2021, the Deputy Attorney General announced the department’s Civil Cyber-Fraud Initiative, which aims to hold accountable entities or individuals that put U.S information or systems at risk by knowingly providing deficient cybersecurity products or services, knowingly misrepresenting their cybersecurity practices or protocols, or knowingly violating obligations to monitor and report cybersecurity incidents and breaches. Information on how to report cyber fraud can be found here.

The resolutions obtained in this matter were the result of a coordinated effort between the Fraud Section of the Commercial Litigation Branch of the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Eastern District of New York, the U.S. Attorney’s Office for the Middle District of Florida, the U.S. Department of State Office of Inspector General and the U.S. Air Force.

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

Comprehensive Health Services LLC (CHS), located in Cape Canaveral, Florida, has agreed to pay $930,000 to resolve allegations that it violated the False Claims Act by falsely representing to the State Department and the Air Force that it complied with contract requirements relating to the provision of medical services at State Department and Air Force facilities in Iraq and Afghanistan. This is the Department of Justice’s first resolution of a False Claims Act case involving cyber fraud since the launch of the department’s Civil Cyber-Fraud Initiative, which aims to combine the department’s expertise in civil fraud enforcement, government procurement and cybersecurity to combat new and emerging cyber threats to the security of sensitive information and critical systems. 

CHS is a provider of global medical services that contracted to provide medical support services at government-run facilities in Iraq and Afghanistan. Under one of the contracts, CHS submitted claims to the State Department for the cost of a secure electronic medical record (EMR) system to store all patients’ medical records, including the confidential identifying information of United States service members, diplomats, officials and contractors working and receiving medical care in Iraq. The United States alleged that, between 2012 and 2019, CHS failed to disclose to the State Department that it had not consistently stored patients’ medical records on a secure EMR system. When CHS staff scanned medical records for the EMR system, CHS staff saved and left scanned copies of some records on an internal network drive, which was accessible to non-clinical staff. Even after staff raised concerns about the privacy of protected medical information, CHS did not take adequate steps to store the information exclusively on the EMR system.

The State Department and Air Force contracts also required CHS to provide medical supplies, including controlled substances, that were approved by the U.S. Food and Drug Administration (FDA) or European Medicines Agency (EMA) and manufactured in accordance with federal quality standards. The United States alleged that, between 2012 and 2019, CHS falsely represented to the State Department and Air Force that certain substances provided under those contracts were approved by the FDA or EMA. CHS lacked a Drug Enforcement Agency license necessary for exporting controlled substances from the United States to Iraq. CHS obtained controlled substances by having CHS physicians based in Florida send letters requesting that a South African physician prescribe the controlled substances. A South African shipping company then received controlled substances that were not approved by the FDA or EMA and sent them to CHS in Iraq, where CHS supplied the unapproved controlled substances to patients under the State Department and Air Force contracts.

“This settlement demonstrates the department’s commitment to use its civil enforcement tools to pursue government contractors that fail to follow required cybersecurity standards, particularly when they put confidential medical records at risk,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to ensure that those who do business with the government comply with their contractual obligations, including those requiring the protection of sensitive government information.”

“Protecting the health and safety of servicemembers, diplomats, and other government employees working abroad is of utmost importance,” said U.S. Attorney Breon Peace for the Eastern District of New York. “The defendants were required to maintain personal health information securely and provide only approved pharmaceuticals to patients. This settlement serves notice to federal contractors that they will be held accountable for conduct that puts private medical records and patient safety at risk. We are grateful for the support of our colleagues in the Middle District of Florida, the State Department and the Air Force for their assistance in investigating these important claims.”

“Government contractors should never disregard their obligations when providing medical care to members of the military,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “We thank our colleagues in the Eastern District of New York, as well as the investigative agencies who supported this effort, for their steadfast pursuit of this important investigation.”

“This settlement demonstrates the commitment State Department, Office of Inspector General, Special Agents have to protect the safety, well-being, and personal information of State Department personnel,” said Special Agent in Charge Elisabeth “Elli” Kaminsky of the U.S. Department of State OIG, Office of Investigations. “Our hope is that this outcome will send a clear message that cutting corners on State Department contracts has significant consequences.”

“The Department of the Air Force Office of Special Investigations (OSI) is undeterred in its approach to hunting down fraud within our Foreign Military Sales programs and ensuring the offenders are held accountable,” said Special Agent in Charge Nicholas J. Groesbeck of OSI Procurement Fraud Detachment 4, Wright-Patterson AFB, OH. “We applaud the complainant for coming forward, which allowed our joint partners to protect the governments procurement process and carry out the warfighting mission.” 

The civil settlement includes the resolution of two actions brought under the qui tam or whistleblower provisions of the False Claims Act against CHS. Under the qui tam provisions of the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of the settlement if the government takes over the case and reaches a monetary agreement with the defendant. The qui tam cases are captioned United States ex rel. Lawler v. Comprehensive Health Servs., Inc. et al., Case No. 20-cv-698 (E.D.N.Y.), and United States ex rel. Watkins et al. v. CHS Middle East, LLC, Case No. 17-cv-4319 (E.D.N.Y.).

The investigation and resolution of this matter illustrates the government’s emphasis on combatting cyber-fraud.  On October 6, 2021, the Deputy Attorney General announced the department’s Civil Cyber-Fraud Initiative, which aims to hold accountable entities or individuals that put U.S information or systems at risk by knowingly providing deficient cybersecurity products or services, knowingly misrepresenting their cybersecurity practices or protocols, or knowingly violating obligations to monitor and report cybersecurity incidents and breaches. Information on how to report cyber fraud can be found here.

The resolutions obtained in this matter were the result of a coordinated effort between the Fraud Section of the Commercial Litigation Branch of the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Eastern District of New York, the U.S. Attorney’s Office for the Middle District of Florida, the U.S. Department of State Office of Inspector General and the U.S. Air Force.

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

Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Andrew Carl Fulda (44, Jacksonville) to 37 months in federal prison for possessing firearms while he was subject to a domestic violence injunction.  The Court also ordered Fulda to forfeit two rifles, a carbine, two pistols, two revolvers, nine silencers, and 4,435 rounds of ammunition. Fulda had pleaded guilty on November 16, 2021.

According to court documents, in September 2021, a Special Agent for the Bureau of Alcohol, Tobacco, Firearms and Explosives received information that Fulda may be possessing firearms despite being prohibited by a domestic violence injunction. The agent verified Fulda’s prohibited status by reviewing the injunction, which informed Fulda that it would be a federal criminal felony offense for him to possess firearms or ammunition while subject to the injunction. The agent also observed that, in April 2020, Fulda had executed an affidavit attesting that he had turned over all of his firearms to the Jacksonville Sheriff’s Office (JSO). The agent also obtained records showing that Fulda had registered multiple silencers in the National Firearms Registration and Transfer Record but had not surrendered the silencers to JSO.

Upon further investigation, the agent identified a residence where Fulda had moved his firearms safe and obtained a federal search warrant for the residence. Upon executing the search warrant, the agent located the firearms safe, which contained multiple handguns and a silencer that was not registered to Fulda. Also in the room with the firearms safe were an unregistered short-barreled rifle, additional firearms and silencers, and more than 4,000 rounds of ammunition.

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

This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Rasheed Karreem (38, Jacksonville) to eight years and four months in federal prison for distributing cocaine base, also referred to as “crack” cocaine. Karreem had pleaded guilty on December 8, 2021.

According to court documents, on July 13 and July 25, 2018, Karreem sold crack cocaine to a cooperating defendant who was working at the direction of the Bureau of Alcohol, Tobacco, Firearms and Explosives. At the time, Karreem was on state probation for the January 2018 battery of Jamie Lawyer.  On August 10, 2018, Karreem shot Lawyer to death as she sat in her vehicle in a McDonald’s drive-thru in Jacksonville. Karreem is serving three consecutive life sentences in connection with the murder of Lawyer.

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

Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Brandy Sue Rayburn (41, Jacksonville) and Duane Lamonte McCray (43, Jacksonville) each to five years in federal prison for possessing a firearm in furtherance of a drug trafficking crime. The Court also ordered them to forfeit a Remington pistol and ammunition. Rayburn and McCray had pleaded guilty on December 7, 2021.

According to court documents, between April and May 2020, Rayburn and McCray sold cocaine and other drugs from Rayburn’s residence in the Arlington area of Jacksonville. To protect their drug dealing operations, Rayburn and McCray obtained a firearm that they kept at the house. Following the arrest of Rayburn and McCray, a Remington firearm and ammunition was located and seized by law enforcement. Forensic investigation revealed DNA of Rayburn and McCray on the firearm.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Sheriff’s Office. It was prosecuted by Special Assistant United States Attorney Cyrus P. Zomorodian and Assistant United States Attorney Beatriz Gonzalez.

This case is part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

Tampa, Florida – U.S. District Judge Kathryn Mizelle has sentenced Victor Manuel Hernandez (22, Wimauma) to 27 years in federal prison for a narcotics conspiracy involving methamphetamine, heroin, and cocaine, as well as for being a felon in possession of multiple firearms.  Hernandez had pleaded guilty on July 27, 2021.

According to court documents, between on or about July 18, 2019, through February 12, 2021, Hernandez conspired with others to distribute 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine, 100 grams or more of a mixture and substance containing a detectable amount of heroin, and a mixture and substance containing a detectable amount of cocaine. On July 18, 2019, a confidential source (CS) spoke with Hernandez on the phone and ordered a kilogram of methamphetamine. The two agreed to meet that day and the CS traveled to an apartment complex and parked. Soon thereafter, a Dodge Charger pulled in next to the CS’s vehicle. As agents approached the car, Hernandez got out of the car and attempted to flee but was ultimately apprehended. Upon searching the car, agents found approximately 978 grams of methamphetamine.  Hernandez then took agents to his residence, where he led them to additional drugs: approximately 800 grams of heroin and approximately 4 kilograms of additional methamphetamine. Hernandez also had 13 guns and assorted ammunition inside the house.

While Hernandez was released on bond, law enforcement learned that he was again trafficking in narcotics. Subsequently, a search warrant was executed at Hernandez’s house, and inside, agents found approximately 31 kilograms of methamphetamine, 756 grams of cocaine, and approximately 523 grams of heroin. Investigators also found two rifles, both of which belonged to Hernandez.

Hernandez had been previously convicted of a felony, including aggravated battery with a deadly weapon. As such, he is prohibited from possessing a firearm or ammunition under federal law.

This case was investigated by the Drug Enforcement Administration, the Sarasota County Sheriff’s Office, the Sarasota Police Department, and the Bradenton Police Department. It was prosecuted by Assistant United States Attorney Callan Albritton.