Middle District of Florida

Tampa, Florida –Timothy CathCart (33, Pasco County) has pleaded guilty to conspiracy to distribute and possession with the intent to distribute a mixture and substance containing detectable amounts of fentanyl and norfentanyl, the use of which resulted in serious bodily injury to three individuals. CathCart faces a minimum mandatory penalty of 20 years, and up to life, in federal prison. A sentencing date has not yet been set.

According to the

plea agreement , CathCart was part of a drug trafficking organization (DTO) that conspired to distribute fentanyl and methamphetamine throughout the Middle District of Florida. In January 2019, CathCart was arrested for a traffic violation in Pasco County. Moments before his arrest, CathCart concealed approximately seven grams of fentanyl, which he had mixed with seven grams of gabapentin and methamphetamine. CathCart then smuggled the controlled substances into the Pasco County Jail.

Between January 24 and January 25, 2019, CathCart distributed the fentanyl that he had smuggled into the jail to three inmates. All three inmates lost consciousness, overdosed, and suffered serious bodily injury. Deputies from Pasco County and emergency personnel successfully revived all three victims.

This case was investigated by the Drug Enforcement Administration and the Pasco Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Diego F. Novaes.

Jacksonville, Florida – U.S. District Judge Marcia Morales Howard today sentenced Richard Earl Carroll (55, Hilliard) to 10 years in federal prison for conspiring to distribute 500 grams or more of methamphetamine. 

Carroll had pleaded guilty on July 26, 2019.

According to court documents, multiple witnesses identified Carroll as a methamphetamine supplier in Nassau County. During the execution of two separate search warrants at Carroll’s home, state and federal law enforcement officers seized methamphetamine, assorted prescription pills (including hydrocodone and Xanax), marijuana plants and baggies containing marijuana, and 24 firearms. During a post-arrest interview, Carroll admitted to obtaining more than 500 grams of methamphetamine from a source to sell to his customers. He also admitted that, at times, he traded the drugs to his customers for firearms.

Carroll’s sentencing follows a series of related state and federal drug prosecutions involving the distribution of methamphetamine, including Billy Crayton Skinner (43, Hilliard) – sentenced to 37 months in federal prison on September 9, 2019; and Thomas A. Crews (45, Hilliard) – sentenced to 29 months in federal prison in 2017.  

This case was investigated by the Nassau County Sherriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Michael J. Coolican.

Assistant Attorney General John C. Demers and U.S. Attorney Maria Chapa Lopez for the Middle District of Florida announces the return of an indictment today of four individuals, including two Chinese nationals, an active-duty United States Navy officer, and his wife, on charges relating to a conspiracy to unlawfully smuggle military-style inflatable boats, with Evinrude MFE military outboard motors, to the People’s Republic of China.  The Navy officer and two other defendants have also been charged with conspiring to violate firearms law, and the Navy officer has been charged with an additional firearms-related offense and with making false official statements.

The four defendants charged in the indictment are:

Fan Yang, 34, a naturalized citizen of the United States and Lieutenant in the United States Navy residing in Jacksonville, Florida; Yang Yang, 33, wife of Fan Yang, and a naturalized citizen of the United States residing in Jacksonville, Florida; Ge Songtao, 49, a citizen and resident of the People’s Republic of China; and Zheng Yan, 27, a citizen and resident of the People’s Republic of China.

The defendants were arrested on Oct. 17, 2019, and are currently detained.

All four defendants have been charged with conspiring to submit false export information and to fraudulently attempt to export articles from the United States.  Additionally, Yang Yang, Ge Songtao, and Zheng Yan have been charged with causing the submission of false and misleading information into the U.S. Automated Export System, and fraudulently attempting to export seven vessels and eight engines.  If convicted for conspiracy or for the submission of false export information, the charged defendants each face a maximum penalty of five years in federal prison.  If convicted on the attempted-smuggling charge, the defendants each face a maximum sentence of 10 years in federal prison.

Fan Yang, Yang Yang, and Ge Songtao are charged with other offenses as well.  All three have been charged with conspiring to violate laws prohibiting an alien admitted under a nonimmigrant visa from possessing a firearm and prohibiting the transfer of a firearm to a nonresident.  Fan Yang has also been charged with making a false statement to a firearms dealer, which carries a maximum penalty of 10 years’ imprisonment, and with making false official statements in his application for a security clearance, which carries a maximum penalty of five years’ imprisonment. 

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 FBI, the U.S. Naval Criminal Investigative Service, the U.S. Department of Commerce, Bureau of Industry and Security; and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives.  It will be prosecuted by Assistant United States Attorney Michael Coolican and Heather Schmidt, Senior Trial Attorney, Counterintelligence and Export Section, U.S. Department of Justice.

Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of an

indictment today of four individuals, including two Chinese nationals, an active-duty United States Navy officer, and his wife, on charges relating to a conspiracy to unlawfully smuggle military-style inflatable boats, with Evinrude MFE military outboard motors, to the People’s Republic of China. The Navy officer and two other defendants have also been charged with conspiring to violate firearms law, and the Navy officer has been charged with an additional firearms-related offense and with making false official statements. The four defendants charged in the indictment are:

Fan Yang, 34, a naturalized citizen of the United States and Lieutenant in the United States Navy residing in Jacksonville, Florida;

Yang Yang, 33, wife of Fan Yang, and a naturalized citizen of the United States residing in Jacksonville, Florida;

Ge Songtao, 49, a citizen and resident of the People’s Republic of China; and  

Zheng Yan, 27, a citizen and resident of the People’s Republic of China.

The defendants were arrested on October 17, 2019, and are currently detained.

All four defendants have been charged with conspiring to submit false export information and to fraudulently attempt to export articles from the United States. Additionally, Yang Yang, Ge Songtao, and Zheng Yan have been charged with causing the submission of false and misleading information into the U.S. Automated Export System, and fraudulently attempting to export seven vessels and eight engines. If convicted for conspiracy or for the submission of false export information, the charged defendants each face a maximum penalty of five years in federal prison. The attempted smuggling charge carries a maximum sentence of 10 years in federal prison.

Fan Yang, Yang Yang, and Ge Songtao are charged with other offenses as well. All three have been charged with conspiring to violate laws prohibiting an alien admitted under a nonimmigrant visa from possessing a firearm and prohibiting the transfer of a firearm to a nonresident. Fan Yang has also been charged with making a false statement to a firearms dealer, which carries a maximum penalty of 10 years’ imprisonment, and with making false official statements in his application for a security clearance, which carries a maximum penalty of five years’ imprisonment. 

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

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

Jacksonville, Florida – Chad Ponce (38, Jacksonville) today pleaded guilty to killing an endangered species. Ponce faces a maximum penalty of one year in federal prison and a $50,000 fine. A sentencing date has not yet been set.

Sawfishes are a family of rays characterized by a long, narrow, flattened rostrum, or nose extension, lined with sharp teeth, arranged in a way that resembles a saw. They are among the largest fish, with some species reaching lengths of up to 17 feet. The fish are found in meaningful numbers only in the southeastern United States, primarily the southwest coast of Florida (smalltooth), and in Australia (largetooth). At one time, both species were found worldwide, throughout tropical and subtropical regions in coastal marine and estuarial waters, as well as freshwater rivers and lakes. In Florida, the smalltooth sawfish is dependent on estuarial mangrove waters on the southern and southwest borders of the state. It is there that they breed and give birth. The sawfish has been recognized as an endangered species since May 1, 2003. 

Sawfish are generally harmless to humans, although they can inflict serious injury with their saws if threatened. The rostrum of the sawfish is used by the animal to locate and disable its prey, and is believed to carry sensory cells that assist it in orienting itself to time and location. The smalltooth sawfish cannot survive without its rostrum. On July 18, 2018, Ponce was seen removing the rostrum from a live 12-foot smalltooth sawfish with a power saw aboard his fishing vessel off the coast of Ponte Vedra, Florida. 

This case was investigated by the National Oceanic and Atmospheric Administration and the Florida Wildlife Commission. It is being prosecuted by Assistant United States Attorney Jay Taylor.

Tampa, Florida – Erika Paola Intriago (44, Tampa) today pleaded guilty to wire fraud in connection with a fraud scheme involving her posing as an immigration attorney to victims in Chicago and Tampa. Intriago faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been set.

According to court documents, Intriago portrayed herself as an immigration attorney and personal representative offering immigration-related services. She advertised her services on social media, targeting immigrants and immigrant families from Spanish-speaking countries. In fact, Intriago was not a licensed attorney in any state.

Victims retained and paid Intriago to represent them in immigration-related matters before U.S. Citizenship and Immigration Services (USCIS) and other agencies. To prove that she was acting on the victims’ behalf, Intriago sent fraudulent letters, emails, receipts, documents, and communications to her victims, fraudulently representing that these records were legitimate communications sent from agencies of the United States, including the Department of Homeland Security and USCIS. In actuality, Intriago had either never filed the necessary immigration paperwork, had abandoned the immigration process, or the applications had already been denied without Intriago informing the victims. Intriago also threatened and intimidated victims who complained about her conduct by telling them that she would report their immigration status to U.S. immigration authorities, which Intriago claimed would result in the victims being deported.

Any person who was, or knows of someone who may have been, a possible victim is urged to contact the Department of Homeland Security, Homeland Security Investigations, at 1-866-DHS-2ICE or www.ice.gov/webform/hsi-tip-form.

This case was investigated by the Department of Homeland Security, Homeland Security Investigations and the United States Citizenship and Immigration Service. It is being prosecuted by Assistant United States Attorney Frank Murray.

Tampa, FL – United States District Judge Virginia M. Hernandez Covington has sentenced Dion Gregory Fisher (33, formerly of Seminole) to 30 years in federal prison for conspiring to manufacture and distribute fentanyl and fentanyl analogue, and money laundering. Fisher was also ordered to forfeit several high-end vehicles, including an Aston Martin and Audi R8, and a forfeiture money order of nearly $800,000 was entered against him. A federal jury had found Fisher guilty on June 5, 2019.

According to testimony and evidence presented during the seven-day trial, Fisher and others, including co-defendant Christopher McKinney, manufactured and distributed hundreds of thousands of counterfeit oxycodone 30 mg pills that were made with fentanyl that Fisher had ordered from China. Fisher also ordered pill presses from China, some of which were seized by Homeland Security. He also purchased binding and cutting agents used in the manufacturing process.

Another co-defendant, Samuel Huffman, used the pill presses and materials supplied by Fisher to press fentanyl pills out of his automotive business in Pinellas Park. Huffman pleaded guilty to the fentanyl conspiracy on October 9, 2018, testified against Fisher at trial, and was sentenced to 33 months in federal prison on June 24, 2019.

Fisher also stored fentanyl and fentanyl analogue in a work bay in Clearwater. In January and February 2018, large quantities of fentanyl and fentanyl analogue were seized from these locations, as well as from Fisher’s residence in Seminole, and McKinney’s residence and work bay. More than three kilograms of fentanyl and fentanyl analogue were admitted into evidence during the trial. On July 2, 2018, Christopher McKinney pleaded guilty to conspiring to distribute and manufacture fentanyl and fentanyl analogue. McKinney forfeited $1.4 million in cash, two residences, and several high-end vehicles/motorcycle. McKinney testified against Fisher at trial, and was sentenced to 2 years in federal prison on June 28, 2019. 

Fisher and McKinney sold hundreds of thousands of counterfeit oxycodone pills, mostly via the U.S. Mail, to Phil Morose in Boston. Morose then distributed the pills. Morose was charged with conspiring to distribute and manufacture fentanyl and fentanyl analogue. He pleaded guilty to these charges and was sentenced on July 8, 2019, to 10 years in federal prison. He is also currently facing money laundering charges in Boston.

In addition, Fisher laundered the proceeds from his fentanyl pill sales with Konrad Guzewicz, who owned and operated automotive and tire-and-rim companies in Pinellas County. Fisher purchased several high-end luxury vehicles, including an Aston Martin, a Bentley, a Maserati, a BMW, and an Audi R8, using fentanyl proceeds. Guzewicz also laundered fentanyl cash proceeds for Fisher. On four occasions, Fisher provided Guzewicz with $35,000 in cash that he had obtained from selling fentanyl pills, and Guzewicz, in turn, wrote Fisher a check for $30,000 from his business and personal accounts. Guzewicz pleaded guilty to money laundering charges on June 28, 2018, testified against Fisher at trial, and was sentenced to 15 months in federal prison on July 2, 2019.

This case was investigated by the Middle District of Florida Opioid Fraud and Abuse Detection Unit, a Department of Justice program created to help combat the devastating opioid crisis that is ravaging families and communities across America and to prosecute individuals that are contributing to the opioid epidemic. The investigative agencies included the Drug Enforcement Administration, the Pinellas County Sheriff’s Office, the Pinellas Park Police Department, the Tarpon Springs Police Department, the U.S. Marshals Service, the U.S. Postal Inspection Service, and IRS – Criminal Investigation. It was prosecuted by Assistant United States Attorneys Kelley Howard-Allen, Maria Guzman, and Greg Pizzo.

Jacksonville, Florida – A federal jury has found Jason Ryan Fain (38, Jacksonville) guilty of possessing videos and images depicting the sexual abuse of young children. He faces a maximum penalty of 20 years in federal prison followed by a potential life term of supervised release. A sentencing date has not yet been set.

According to the testimony and evidence presented at trial, on January 9, 2017, an officer with the Jacksonville Sheriff’s Office (JSO) responded to a citizen complaint at a Jacksonville residence where Fain resided. The officer recovered a USB thumb drive belonging to Fain. A subsequent search of the thumb drive revealed 3,614 images and 7 videos depicting the sexual abuse of young children, together with “selfie”-type photos depicting Fain. On October 27, 2017, Fain was arrested in Youngstown by investigators from the Bay County Sheriff’s Office. During an interview, Fain admitted that the thumb drive belonged to him and that it contained “hundreds” of pornographic images of children that he had obtained from the internet. 

A forensic analysis conducted by the FBI confirmed that Fain’s thumb drive had accessed a particular file-sharing network on the internet. The device also contained a document that advocated the legalization of child pornography possession.              

This case was investigated by the Jacksonville Sheriff’s Office, the Bay County Sheriff’s Office, and the Federal Bureau of Investigation. 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.

Orlando, Florida – Daniel Joseph Zirk (23, Spring Hill) has been arrested and charged by a federal criminal complaint with attempted bank robbery and using a firearm during a crime of violence. Zirk made his initial appearance in federal court today and was detained. 

Zirk’s alleged co-conspirators, John Armstrong, Jr. (30, North Fort Myers) and Tanya Legg (43, North Fort Myers) were arrested on October 7, 2019, on related charges. On October 16, 2019, a grand jury returned an indictment charging Armstrong with Hobbs Act robbery, attempted bank robbery, bank robbery, three counts of brandishing a firearm during a crime of violence, and possession of a firearm by a convicted felon. The indictment charges Legg with aiding and abetting a bank robbery, aiding and abetting the brandishing of a firearm during a crime of violence, and possession of a firearm by a convicted felon. If convicted, Zirk, Legg, and Armstrong each face up to life in federal prison.  

According to allegation in the

complaint against Zirk and indictment against Armstrong and Legg, on June 14, 2019, Armstrong used a firearm to rob a 7-11 store in North Fort Myers. During the robbery, Armstrong struck one of the store employees in the face with his firearm, causing a laceration to the bottom corner of her left eye.

On September 25, 2019, Armstrong and Zirk attempted to commit an armed robbery of a PNC Bank in Davenport. Zirk had carjacked a vehicle earlier that morning, holding the victim at gunpoint. Armstrong and Zirk later used the stolen vehicle as a getaway vehicle following the attempted PNC Bank robbery. 

On September 26, 2019, Armstrong, Zirk, and Legg robbed a BB&T Bank in Altamonte Springs. Armstrong and Zirk used firearms to force bank employees to open the bank’s safe and then stole approximately $22,000 in cash. Legg assisted in purchasing items used to complete the BB&T robbery and then served as the getaway driver. Zirk and Armstrong wore ghost masks at each of the banks.

A criminal complaint is merely an allegation 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 is being investigated by the Federal Bureau of Investigation, with assistance from the Altamonte Springs Police Department, the Fort Myers Police Department, the Hernando County Sheriff’s Office, the Lee County Sheriff’s Office, the Orange County Sheriff’s Office, the Osceola County Sheriff’s Office, the Pasco Sheriff’s Office, the Punta Gorda Police Department, the Seminole County Sheriff’s Office, and the Tampa Police Department. It is being prosecuted by Assistant United States Attorney Chauncey A. Bratt.

Tampa, Florida – Thomas Walker (74, Clearwater) has pleaded guilty to trafficking in counterfeit sports jerseys. Walker faces a maximum penalty of 10 years in federal prison. His sentencing date is not yet scheduled.

According to the plea agreement and facts presented at the plea hearing, Walker owned and operated a business called “Tim’s Sports Cards Plus,” which he operated from a booth at the Oldsmar Flea Market. Among the items sold were numerous sports jerseys bearing the counterfeit trademarks of purported sports organizations, including the National Football League (NFL), the National Hockey League (NHL), and Major League Baseball (MLB).

On January 27, 2017, federal law enforcement agents went to Walker’s booth at the Oldsmar Flea Market, spoke with him, and seized 699 jerseys that were for sale and bearing counterfeit NFL marks. The agents also went to Walker’s home and seized over 1,500 additional counterfeit jerseys from all three purported sports leagues. During an interview with agents, Walker admitted that he had purchased the counterfeit jerseys from a supplier located in China.

This case was investigated by Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.

Tampa, Florida – U.S. District Judge Susan C. Bucklew has sentenced Solease Asiman Babb (32, Lakeland) to 30 months in federal prison for possessing a firearm and ammunition as a convicted felon. The court ordered Babb to forfeit the firearm and ammunition, and to serve a three-year term of supervised release following his release from prison. Babb had pleaded guilty on July 24, 2019.

According to court documents, officers from the Lakeland Police Department executed a search warrant at Babb’s home. Inside, detectives found a stolen, semi-automatic firearm, nine rounds of ammunition, and various controlled substances, including cocaine, marijuana, methamphetamine, and MDMA. In addition, the officers found several cellphones, digital scales, clear plastic bags, and a vacuum sealer. Babb admitted that the firearm and ammunition belonged to him. Babb, who had previously been convicted of a felony, is prohibited from possessing a firearm or ammunition under federal law.

This case was investigated by the Federal Bureau of Investigation and the Lakeland Police Department. It was prosecuted by Assistant United States Attorney David C. Waterman.

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 Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Erold Martin Panopio (25, Jacksonville) to 19 years and 7 months in federal prison for attempted enticement of two minors to engage in sexual conduct. Panopio had pleaded guilty on April 24, 2019.

According to court documents, in October 2018, law enforcement learned of online communications of a sexual nature between Panopio and a 15-year-old girl. A forensic analysis of the girl’s phone revealed that Panopio had filmed himself engaging in sexual acts with two 15-year-old girls earlier that month. A Homeland Security Investigations agent assumed the identity of one of the girls and began communicating with Panopio. Panopio told the undercover agent, posing as the child, all of the sexual acts that he wanted to engage in with the child and a “friend” of the child who was 13 years old. Panopio traveled from his home in Jacksonville to Clay County, where he intended to meet the 15-year-old and 13-year-old girls for sex, and was subsequently arrested. During an interview with law enforcement, Panopio admitted that he had traveled for the purpose of meeting the children to have sex with them. He also acknowledged having sex with the 15-year-old on a prior occasion.

A search of Panopio’s phone revealed chats from July and August 2018 with another 15-year-old girl with whom he had previously engaged in sexual conduct. In those chats, Panopio repeatedly demanded nude photographs, threatened to appear at the child’s house, and threatened to tell the child’s parents if the child would not have sex with him again or send nude photographs of herself.

“This predator used social media applications to groom minor girls and magnify their abuse,” said HSI Tampa Special Agent in Charge James C. Spero. “But now, thanks to our HSI special agents and law enforcement partners at the Clay County Sheriff’s Office, he will be held accountable for his crimes.”

This case was investigated by the Clay County Sheriff’s Office and Homeland Security Investigations. It is was prosecuted by Assistant United States Attorney Kelly S. Karase.

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.

The former CEO of a Missouri hospital pleaded guilty today for his role in a pass-through billing scheme in which the hospital was used to submit fraudulent claims for toxicology and blood testing, resulting in multiple insurance companies and the Missouri Medicaid program paying over $100 million in claims.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Maria Chapa Lopez of the Middle District of Florida, U.S. Attorney Timothy A. Garrison of the Western District of Missouri, Special Agent in Charge Rachel Rojas of the FBI’s Jacksonville Field Office, Special Agent in Charge Timothy R. Langan Jr., of the FBI’s Kansas City Field Office, Deputy Assistant Inspector General for Investigations Thomas W. South of the U.S. Office of Personnel Management Office of the Inspector General (OPM-OIG), Special Agent in Charge Rafiq Ahmad of the U.S. Department of Labor-Office of Inspector General (DOL-OIG) and Special Agent in Charge Basil P. Demczak of the Amtrak Office of Inspector General (Amtrak-OIG) made the announcement.

David Lane Byrns, 62, of Lighthouse Point, Florida, the former CEO of Putnam County Memorial Hospital (Putnam), of Unionville, Missouri, pleaded guilty before U.S. Magistrate Judge James R. Klindt of the Middle District of Florida to a one-count information charging him with conspiracy to commit health care fraud.  The information was filed in the Western District of Missouri and the case was transferred to the Middle District of Florida by consent for the entry of Byrns’ plea.  As part of his guilty plea, Byrns agreed to a forfeiture judgment of $5,100,000.  Sentencing before U.S. District Judge Timothy Corrigan of the Middle District of Florida has not yet been scheduled.

According to admissions made as part of his guilty plea, in 2016, Byrns and another individual took control of Putnam, a rural hospital in Missouri, through a management agreement with the hospital’s board, and Byrns was installed as the hospital’s CEO.  Byrns and others, including a laboratory owner, then arranged for urine drug tests (UDTs) and blood tests to be performed on a massive scale at diagnostic testing laboratories outside Missouri, on behalf of individuals who were not Putnam patients and who otherwise had no connection to Putnam.  To obtain samples for testing, Byrns and his co-conspirators entered into arrangements with marketers, who solicited samples from substance abuse treatment centers, sober living homes, physicians’ offices and other sources throughout the United States, in exchange for a portion of the insurance reimbursements.  Many of the tests conducted were medically unnecessary.  Byrns and his co-conspirators billed the tests to private insurers and to the Missouri Medicaid program using Putnam’s billing credentials, in order to take advantage of Putnam’s favorable reimbursement rates under its in-network contracts with the insurers, while failing to identify the fact that most testing had not taken place at Putnam, Byrns admitted.

During a 15-month period, Byrns and his co-conspirators caused private insurers and the Missouri Medicaid Program to reimburse Putnam approximately $114 million for the laboratory tests, most of which was shared among Byrns and his co-conspirators, including the laboratories, marketers and billing companies involved in the scheme, Byrns admitted.

The case was investigated by the FBI’s Jacksonville Field Office, the Jefferson City, Missouri Resident Agency of the FBI’s Kansas City Field Office, OPM-OIG, DOL-OIG and Amtrak OIG.  Trial Attorneys Gary A. Winters and James V. Hayes of the Criminal Division’s Fraud Section, Assistant U.S. Attorney Tysen Duva of the Middle District of Florida and Assistant U.S. Attorney Lucinda Woolery of the Western District of Missouri are prosecuting the case.

The Department wishes to acknowledge the assistance of the Missouri State Auditor’s Office and the Missouri Attorney General’s Medicaid Fraud Control Unit. 

The Fraud Section leads the Medicare Fraud Strike Force.  Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion.  In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

WASHINGTON – The former CEO of a Missouri hospital pleaded guilty today for his role in a pass-through billing scheme in which the hospital was used to submit fraudulent claims for toxicology and blood testing, resulting in multiple insurance companies and the Missouri Medicaid program paying over $100 million in claims.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Maria Chapa Lopez of the Middle District of Florida, U.S. Attorney Timothy A. Garrison of the Western District of Missouri, Special Agent in Charge Rachel Rojas of the FBI’s Jacksonville Field Office, Special Agent in Charge Timothy R. Langan Jr., of the FBI’s Kansas City Field Office, Deputy Assistant Inspector General Thomas W. South of the U.S. Office of Personnel Management-Office of Inspector General (OPM-OIG), Special Agent in Charge Rafiq Ahmad of the U.S. Department of Labor-Office of Inspector General (DOL-OIG) and Special Agent in Charge Basil P. Demczak of the Amtrak Office of Inspector General (Amtrak-OIG) made the announcement.

David Lane Byrns, 62, of Lighthouse Point, Florida, the former CEO of Putnam County Memorial Hospital (Putnam), of Unionville, Missouri, pleaded guilty before U.S. Magistrate Judge James R. Klindt of the Middle District of Florida to a one-count information charging him with conspiracy to commit health care fraud.  The information was filed in the Western District of Missouri and the case was transferred to the Middle District of Florida by consent for the entry of Byrns’ plea.  As part of his guilty plea, Byrns agreed to a forfeiture judgment of $5,100,000.  Sentencing before U.S. District Judge Timothy Corrigan of the Middle District of Florida has not yet been scheduled.

According to admissions made as part of his guilty plea, in 2016, Byrns and another individual took control of Putnam, a rural hospital in Missouri, through a management agreement with the hospital’s board, and Byrns was installed as the hospital’s CEO.  Byrns and others, including a laboratory owner, then arranged for urine drug tests (UDTs) and blood tests to be performed on a massive scale at diagnostic testing laboratories outside Missouri, on behalf of individuals who were not Putnam patients and who otherwise had no connection to Putnam.  To obtain samples for testing, Byrns and his co-conspirators entered into arrangements with marketers, who solicited samples from substance abuse treatment centers, sober living homes, physicians’ offices and other sources throughout the United States, in exchange for a portion of the insurance reimbursements.  Many of the tests conducted were medically unnecessary.  Byrns and his co-conspirators billed the tests to private insurers and to the Missouri Medicaid program using Putnam’s billing credentials, in order to take advantage of Putnam’s favorable reimbursement rates under its in-network contracts with the insurers, while failing to identify the fact that most testing had not taken place at Putnam, Byrns admitted.

During a 15-month period, Byrns and his co-conspirators caused private insurers and the Missouri Medicaid Program to reimburse Putnam approximately $114 million for the laboratory tests, most of which was shared among Byrns and his co-conspirators, including the laboratories, marketers and billing companies involved in the scheme, Byrns admitted.

The case was investigated by the FBI’s Jacksonville Field Office, the Jefferson City, Missouri Resident Agency of the FBI’s Kansas City Field Office, OPM-OIG, DOL-OIG and Amtrak OIG.  Trial Attorneys Gary A. Winters and James V. Hayes of the Criminal Division’s Fraud Section, Assistant U.S. Attorney Tysen Duva of the Middle District of Florida and Assistant U.S. Attorney Lucinda Woolery of the Western District of Missouri are prosecuting the case.

The Department wishes to acknowledge the assistance of the Missouri State Auditor’s Office and the Missouri Attorney General’s Medicaid Fraud Control Unit. 

The Fraud Section leads the Medicare Fraud Strike Force.  Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion.  In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

Jacksonville, Florida – Rhiannon Rader (34, Fern Park) has pleaded guilty to conspiracy to distribute oxycodone, hydrocodone, and alprazolam (also known as Xanax). She faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been set.

According to the plea agreement, as an employee in a Jacksonville Beach physician’s office, Rader had access to her employer’s prescription pad. Without her employer’s knowledge, Rader sold fraudulent prescriptions for controlled substances, including oxycodone, hydrocodone, and Xanax to drug dealers. She also filled fraudulent prescriptions for drugs in her own name.

Pharmacy records show that between March and September 2016, in Duval and Nassau Counties, 44 different pharmacies filled approximately 116 fraudulent prescriptions for 46 individuals who were not actually patients of Rader’s employer.  Records from multiple pharmacies show that on certain occasions, when pharmacy employees called the physician’s office to confirm whether such prescriptions were genuine, Rader falsely confirmed that the prescriptions were legitimate.

As part of her guilty plea, Rader admitted that her actions resulted in the illegal distribution of nearly 7,000 doses of controlled substances.

Rader is the eighth member of this drug distribution ring to plead guilty in federal court. Christopher John Bates (27, Nassau County), Christopher Lee Calhoun Jr. (24, Fernandina Beach), Christopher Oquendo Martinez (27, Baldwin, Georgia), Otis Kirkland (32, Jacksonville), Reginald Ray (33, Jacksonville), LaRhonda Lukes (31, Jacksonville), and Jon’quill Holmes (30, Jacksonville) have previously pleaded guilty for their involvement in this case.

This case was investigated by the Jacksonville Sheriff’s Office, the Nassau County Sheriff’s Office, the Drug Enforcement Administration, and the State Attorney’s Office for the Fourth Judicial Circuit. It is being prosecuted by Assistant United States Attorney Michael J. Coolican.

Tampa, Florida – U.S. District Judge Steven D. Merryday today sentenced William Hennessey (37, Spring Hill) to 51 months in federal prison for distributing Schedule II controlled substances after burglarizing a pharmacy. The court also ordered Hennessey to pay $36,000 in restitution to the pharmacy. 

Hennessey had pleaded guilty on July 31, 2019.

According to court documents, on March 23, 2019, Hennessey broke into Suntrust Pharmacy in Port Richey and stole a large safe filled with thousands of highly-addictive Schedule II controlled substances, including oxycodone, morphine, hydromorphone, hydrocodone, fentanyl, and dextroamphetamine. Four days later, law enforcement agents located two plastic containers filled with the stolen oxycodone pills in Hennessey’s car. They also found a glove matching the one found at the pharmacy, at Hennessey’s house. Hennessey had distributed the remaining drugs, which were later recovered by law enforcement, to others.

Hennessey also stole more than $12,000 in cash from the pharmacy. He bought a motorcycle and other items with the stolen money. Hennessey later admitted that he had stolen the safe, cash, and the controlled substances from the pharmacy and had distributed some of the drugs to others.

This case was investigated by Drug Enforcement Administration, the Pasco Sheriff’s Office and the Hernando County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Kelley Howard-Allen.

This case was investigated by the Middle District of Florida Opioid Fraud and Abuse Detection Unit -- one of twelve Department of Justice pilot programs created to help combat the devastating opioid crisis that is ravaging families and communities across America and to prosecute individuals that are contributing to the opioid epidemic.

Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Daniel Butler (30, Miami) to 54 months in federal prison for conspiracy to commit wire fraud and aggravated identity theft.

Butler had pleaded guilty on May 16, 2019.

According to court documents, Butler and others fraudulently obtained access to at least 477 credit card accounts and linked those accounts to the Apple Pay app on their iPhones. Then, using their iPhones, Butler and his coconspirators made purchases using their victims’ credit card accounts without having to present actual credit cards to retailers. The group made more than $1.5 million in fraudulent purchases.

Butler’s sentencing follows the pleas of his three co-conspirators. In December 2018, Johnny Max Wesley (24, Miami) was sentenced to four years in federal prison. Rachel Bishop (27, Miami) and Laurent Pierre Louis (31, Miami) are scheduled to be sentenced in December 2019.

This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Michael J. Coolican.

 

Tampa, Florida – U.S. District Judge Susan C. Bucklew has sentenced Gerard Graves (27, Clearwater) to seven years in federal prison for unlawful possession of firearms in a school zone.

Graves had pleaded guilty on July 19, 2019.

According to court documents, on May 27, 2015, the Drug Enforcement Administration learned through a confidential informant (CI) that Graves, a convicted felon, was attempting to sell a shotgun. The CI, under DEA supervision, spoke with Graves and arranged a time and place to purchase the firearm. Graves arrived at the agreed upon location in Clearwater and sold a Mossberg 12-gauge shotgun and ammunition to the CI. On July 9, 2019, Graves contacted the CI and said he had another firearm for sale. The CI, under DEA supervision, met with Graves the next day at another location in Clearwater where Graves sold the CI a Smith & Wesson 9mm pistol and ammunition. Both firearm sales occurred within 1,000 feet of a school.

This case was investigated by the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Michael C. Sinacore.

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 Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

Jacksonville, FL – U.S. District Judge Brian J. Davis has sentenced Richard Leroy Douglas (25, Jacksonville) to 41 months in federal prison for possessing a firearm as a convicted felon.

Douglas had pleaded guilty on July 9, 2019.

According to court documents, on October 1, 2018, an agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) was conducting a YouTube query of firearm-related music videos in the Jacksonville area and found a video titled “Hulio Da Don “KOBK” (Official Music Video).” According to the YouTube webpage, the video was published on September 14, 2018. The KOBK music video depicted several individuals possessing, holding, and pointing numerous suspected firearms of varying types and calibers. Agents identified Douglas as one of the individuals in the KOBK music video who had possessed a Zastava, 7.62x39-mm pistol with a double black taped magazine.

On September 27, 2018, detectives from the Jacksonville Sheriff’s Office (JSO) had executed a narcotics-related search warrant at a residence. During the search of the residence, JSO officers located five firearms, one of which was a Zastava, 7.62x39-mm pistol. That pistol matched the unique characteristic of the Zastava, 7.62x39-mm pistol that Douglas had possessed in the KOBK music video. The residence also matched the KOBK music video shoot location.

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

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 Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

 

Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich today sentenced Nicholas Marinkovic (29, Pasco County) to three years and four months in federal prison for stalking. Marinkovic had pleaded guilty on May 20, 2019.

According to court documents, between March and December 2018, Marinkovic repeatedly harassed and threatened multiple victims, including via numerous interstate telephone calls and hundreds of text messages. In those communications, Marinkovic repeatedly threatened, for example, to kill one of the victims and her child.

This case was investigated by the Federal Bureau of Investigation, with assistance from the Pasco County Sheriff’s Office and other local law enforcement. It was prosecuted by Assistant United States Attorney Colin McDonell.

Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Dylan Ray Langley (25, Fort Myers) to two years and six months in federal prison for using of the U.S. Mail to threaten to injure an officer of the United States.

Langley had pleaded guilty on June 19, 2019.

According to court documents, while serving a state prison sentence for armed robbery, Langley mailed a letter to an Assistant United States Attorney. In his letter, Langley threatened to kill the prosecutor as revenge for his having prosecuted Langley’s “brother.” He also made serious threats against the prosecutor’s family.  When interviewed by federal agents, Langley admitted that he had sent the letter and intended to carry out his threats. He explained that the letter’s mention of a “brother” did not refer to any biological brother, but rather a fellow gang member. Langley changed his story after an agent told him that if a state prisoner commits, and is convicted of, a federal crime, the prisoner must serve his state sentence and then the federal sentence. During a second interview with agents, Langley claimed that he never intended to carry out the threat and mistakenly had believed that threatening a federal official would result in him being moved from state custody into federal custody.

This case was investigated by Federal Bureau of Investigation, the U.S. Marshals Service, and the Florida Department of Corrections. It was prosecuted by Assistant United States Attorney Michael J. Coolican.

Jacksonville, Florida – United States District Judge Timothy J. Corrigan has sentenced Jordan Frederic Schemmel (38, Ormond Beach) to nine years and two months in federal prison for distributing depictions of child sexual abuse over the internet. Schemmel had pleaded guilty on May 22, 2019. Schemmel was also sentenced to a 10-year term of supervised release and ordered to register as a sex offender upon his release.    

According to court documents, on September 5, 2018, Schemmel, using the username “Profsunrise15,” responded to a message on an internet bulletin board frequented by individuals with a sexual interest in children and incest. The message had been posted by an undercover FBI agent. Schemmel began an online conversation with the agent using a popular social messaging application. After some conversation about his sexual interest in children between the ages of 9 and 13, Schemmel sent a video to the agent that depicted a young child being sexually assaulted by an adult male, and later sent a photo depicting similar criminal conduct with a child. During this time, Schemmel was a teacher at Terry Parker High School in Jacksonville. 

On October 19, 2018, FBI agents and other law enforcement officers executed a search warrant at Schemmel’s residence in Jacksonville. During an interview, Schemmel stated that he was interested in incest and bestiality, that he had sent the child-pornographic video using the app, and that he had tried unsuccessfully to stop viewing child pornography after receiving sexual gratification from it. Forensic examination of Schemmel’s smartphone and a USB thumb drive seized from his residence revealed that he had collected 102 images and 28 videos depicting child pornography, several of which depicted the sadistic sexual abuse of young children.   

This case was investigated by the Federal Bureau of Investigation, U.S. Customs and Border Protection, and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney D. Rodney Brown.

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

Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan today sentenced Richard Anthony Moffett (31, Jacksonville) to 25 years in federal prison for using force, fraud, and coercion to cause multiple victims to engage in prostitution. The court will make a determination as to the amount of restitution Moffett owes to each of his five victims at a later date. Moffett had pleaded guilty on June 7, 2019.

According to court documents and information presented at the sentencing hearing, in the middle of 2016, Moffett relocated from Ohio to Florida. He resided in various hotels in Jacksonville, where he met his first two victims, K.W. and K.D.  Moffett began forcing K.W. to engage in prostitution, keeping all of her money, supplying her with drugs, and regularly beating her. Sometime in December 2016, Moffett began selling heroin to D.D., a third victim. D.D. began working for Moffett, providing commercial sex to others, and gave all of the money she made to Moffett. Moffett exploited D.D.’s heroin addiction to coerce her into engaging in commercial sex acts. A few months later, Moffett came to believe that D.D. had stolen $50 from him. Moffett pointed a pistol at D.D., who attempted to flee from the hotel room. K.W., who was present at the time, grabbed D.D. by the hair, and Moffett twice stomped D.D. on the head.  D.D. ultimately escaped.

Around February 2017, Moffett met his fourth victim, S.B., when she began purchasing heroin from him. Moffett invited S.B. and K.D. to travel with him to Ohio, purportedly to meet his two newly-born children. Once in Ohio, Moffett informed S.B. and K.D. that they would need to engage in prostitution in order to make enough money to return to Florida. S.B. and K.D., lacking financial and transportation resources, did so. In March 2017, Moffett transported S.B. and K.D. back to Florida. After returning to Florida, K.D. told Moffett, as a ruse, that she had a commercial sex “date” coming to the hotel, and Moffett left the hotel. K.D. then phoned a friend who came to pick her up. Moffett attempted to coerce K.D. to return to him by calling her multiple times and leaving threatening messages.

Meanwhile, Moffett continued to force K.W. and S.B. to engage in commercial sex acts out of various hotels in Jacksonville. In April 2017, Moffett coerced a fifth victim, S.A., into working for him. S.A. had previously purchased heroin from Moffett and contacted him after she became homeless. Moffett took S.A. in, and, the next day, informed her she would need to engage in prostitution to pay her way. During the time that K.W., S.B., and S.A. were working under Moffett’s control, Moffett would withhold heroin from them so that they would get “dope sick” as a means of coercing them to engage in commercial sex “dates” at his direction. When S.B. informed Moffett that she wanted to leave, Moffett gave her a bill totaling approximately $3,000 that he claimed S.B. needed to pay him for drugs, food, and shelter, before she could leave. Moffett then forced the S.B. to have sex with him and locked her in a bathroom for an entire day as punishment. Ultimately, S.B. and S.A. were able to escape from Moffett when S.A. was arrested by the Jacksonville Sheriff’s Office for a prostitution offense. S.A., who was so terrified of Moffett that she attempted to hide underneath the floor mat of the JSO patrol vehicle in which she was detained, informed detectives that Moffett was her “pimp.” During this time, S.B. was able to escape. Moffett continued to exploit K.W. until he was arrested by JSO in November 2017.

This case was investigated by the Jacksonville Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Florida Department of Law Enforcement, and the State Attorney’s Office, Fourth Judicial Circuit. It was prosecuted by Assistant United States Attorney Laura Cofer Taylor and Special Assistant United States Attorney Erin Wolfson.

WASHINGTON – Today, the Department of Justice announced it has awarded more than $85.3 million to bolster school security—including funding to educate and train students and faculty—and support first responders who arrive on the scene of a school shooting or other violent incident.

“These federal resources will help to prevent school violence and give our students the support they need to learn, grow, and thrive,’ said Attorney General William P. Barr. “By training faculty, students and first responders, and by improving school security measures, we can make schools and their communities safer.”

“We are grateful for these additional resources to prevent school violence,” said U.S. Attorney Maria Chapa Lopez. “We are confident that our partners will utilize them to the best of their ability in keeping our schools and students safe from harm.”

The grants award more than $4.1 million in funding to prevent violence in schools in Middle District of Florida. President Trump signed the STOP School Violence Act into law in March 2018, authorizing grants that are designed to improve threat assessments, train students and faculty to provide tips and leads, and prepare law enforcement officers and emergency professionals to respond to school shootings and other violent incidents. The grant programs are managed by OJP’s Bureau of Justice Assistance and the Justice Department’s Office of Community Oriented Policing Services.

The Bureau of Justice Assistance, within the Department’s Office of Justice Programs, and the Office of Community Oriented Policing Services manage the programs and administer the grants, which include funds to:

• Develop school threat assessment teams and pursue technological solutions to improve reporting of suspicious activity in and around schools;
• Implement or improve school safety measures, including coordination with law enforcement, as well as the use of metal detectors, locks, lighting and other deterrent measures;
• Train law enforcement to help deter student violence against others and themselves;
• Improve notification to first responders through implementation of technology that expedites emergency notifications;
• Develop and operate anonymous reporting systems to encourage safe reporting of potential school threats;
• Train school officials to intervene when mentally ill individuals threaten school safety; and
• Provide training and technical assistance to schools and other awardees in helping implement these programs.
   

About the Office of Justice Programs:

The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal justice system. More information about OJP and its components can be found at www.ojp.gov.

About the Office of Community Oriented Policing Services:

The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of approximately 130,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.

Tampa, Florida – U.S. District Judge Steven Merryday today sentenced Ikechukwu Derek Amadi (38, Mississauga, Ontario) to 15 years and 8 months in federal prison for conspiracy to commit mail and wire fraud. The court also entered an order of forfeiture against Amadi for $10,632,546.36, representing the proceeds of the charged criminal conduct, and ordered him to pay restitution to his victims in the amount of $4,360,740.97.

Amadi had pleaded guilty on July 25, 2019, following his extradition to the United States from Canada.

According to court documents and evidence presented at the trials of his convicted coconspirators, Amadi, a dual citizen of Nigeria and Canada, worked with an international criminal organization based in Nigeria that defrauded dozens of victims across the United States and then laundered the funds through a complex network of bank accounts. The organization, known as the Black Axe Group, or Neo Black Movement of Africa, coordinated fraud and money laundering activity throughout the globe via cells or “zones” in Nigeria, Canada, the United States, and elsewhere.

The fraud schemes took several forms. Conspirators posed as suitors on dating websites, where they befriended widowed or divorced elderly women and then convinced their victims to wire money, often consisting of the victim’s entire retirement savings and cash taken out from home equity, to bank accounts in the United States as part of a purported investment opportunity. The conspirators also defrauded title companies with fake cashier’s checks in phony real estate transactions, leaving the companies on the hook for the losses once the checks bounced. And they targeted businesses using email spoofing and hacking schemes, as well as law firms that they solicited online to perform legal work and then provided fake cashier’s checks for deposit into the firms’ trust accounts.

Victims were instructed to wire their money into numerous funnel accounts held by conspirators in the United States, known as “money mules,” and the funds were then quickly moved to other accounts in the United States and around the world before the victims could discover the fraud. From 2012 to 2015, Amadi was accountable for at least $16.4 million in fraud proceeds that were traceable to the different schemes. Amadi himself recruited more than a dozen individuals in the United States to act as money mules for him and oversaw their activities. He then instructed those individuals to wire most of the victims’ funds overseas, including to Hong Kong, China, Canada and Nigeria, to promote the conspiracy and to conceal the source of the funds.

This case was investigated by the Federal Bureau of Investigation, with assistance from various federal and local law enforcement partners throughout the country, including the Toronto Police Service in Ontario, Canada and the Toronto Strategic Partnership. It was prosecuted by Assistant United States Attorney Patrick Scruggs.

Fort Myers, Florida – United States Attorney Maria Chapa Lopez announces that a federal jury today found Elizabeth Kuc (47, North Fort Myers) guilty of one count of conspiracy to distribute controlled substances, including cocaine base, fentanyl, and heroin, and two counts of distributing controlled substances. Kuc faces a maximum penalty of 40 years in federal prison for the conspiracy charge and up to 20 years’ imprisonment for each count of distributing controlled substances. Her sentencing hearing has been set for January 13, 2020. 

According to court documents and evidence at trial, Kuc, who was known by various other names, including “Auntie,” was a dealer working for a large drug distribution ring operating for years in the Suncoast Estates neighborhood of North Fort Myers.  The organization was headed and supplied by Tony Wilson, Jr. (also known as “Big Homie” and “Caine”) and occupied several houses and trailer homes in Suncoast Estates. Inside those residences, dealers worked side-by-side to distribute drugs to customers. During the investigation, law enforcement conducted dozens of undercover drug purchases from dealers at the drug houses. Agents also executed multiple search warrants resulting in the seizure of tens of thousands of dollars, multiple firearms, and large quantities of crack cocaine, heroin, and fentanyl. The evidence showed that the organization often generated more than $10,000 per day in sales. Kuc’s residence in Suncoast Estates was often used to manufacture and store the crack cocaine before it was distributed among the nearby houses.

Seventeen others previously pleaded guilty for their roles in the drug ring: 

Name Charge(s) Case Status

Tony Wilson, Jr.

(31, Lehigh Acres)

Conspiracy to distribute controlled substances; distribution of controlled substances; and firearms offenses

Pleaded guilty, faces up to life in federal prison.

Monique Moore

(47, North Fort Myers)

Conspiracy to distribute controlled substances

Pleaded guilty, faces up to life in federal prison.

Patrick Graham

(25, Labelle)

Conspiracy to distribute controlled substances

Pleaded guilty, faces up to 40 years in federal prison.

Michael Perez

(38, North Fort Myers)

Conspiracy to distribute controlled substances

Pleaded guilty, faces up to 40 years in federal prison.

James Estrella

(50, North Fort Myers)

Conspiracy to distribute controlled substances

Pleaded guilty, faces up to 40 years in federal prison.

Danielle Hallmon

(32, Pine Island)

Conspiracy to distribute controlled substances

Pleaded guilty, faces up to 40 years in federal prison.

Dorothy Rochford

(27, North Fort Myers)

Conspiracy to distribute controlled substances

Pleaded guilty, faces up to 40 years in federal prison.

Darniel Williams

(24, Labelle)

Conspiracy to distribute controlled substances

Pleaded guilty, faces up to 40 years in federal prison.

Kenneth Tippins

(48, North Fort Myers)

Conspiracy to distribute controlled substances

Pleaded guilty, faces up to 40 years in federal prison.

Eileen Smith

(22, Labelle)

Conspiracy to distribute controlled substances

Pleaded guilty, faces up to 40 years in federal prison.

Malik Timbers

(26, St. Petersburg)

Conspiracy to distribute controlled substances

Pleaded guilty, faces up to 40 years in federal prison.

Christopher Connor

(30, Labelle)

Conspiracy to distribute controlled substances

Pleaded guilty, faces up to 20 years in federal prison.

William Thomas

(26, Labelle)

Conspiracy to distribute controlled substances and distribution of controlled substances

Pleaded guilty, faces up to 40 years in federal prison.

Tyrome Wright

(46, North Fort Myers)

Conspiracy to distribute controlled substances and distribution of controlled substances

Pleaded guilty, faces up to 40 years in federal prison.

Jeffrey Beard, II

(29, Labelle)

Conspiracy to distribute controlled substances and distribution of controlled substances

Pleaded guilty, faces up to 40 years in federal prison.

Michelle Gladys

(49, North Fort Myers)

Distribution of a controlled substance

Sentenced to 33 months in federal prison.

Samantha Badger

(23, North Fort Myers)

Distribution of a controlled substance

Sentenced to 15 months in federal prison.

 

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

Jacksonville, Florida – U.S. District Judge Marcia Morales Howard today sentenced Jamaal Abu Talib Hameen (59, Jacksonville) to 15 years in federal prison for possessing a firearm as a convicted felon. A jury had found Hameen guilty on March 1, 2019.

According to evidence presented at trial and at the sentencing hearing, on February 7, 2018, Hameen was found to be in possession of a loaded .380 caliber pistol, when officers from the Jacksonville Sheriff’s Office arrested him for trespassing at a local motel. At the time, Hameen had numerous prior felony convictions, including for aggravated assault, sale or delivery of cocaine, and sale or delivery of heroin. As a previously convicted felon, Hameen was prohibited from possessing a firearm or ammunition under federal law.

This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorneys David B. Mesrobian and Frank Talbot.

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 Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced James Bernard Kennedy (46, Jacksonville) to seven years and four months in federal prison for distributing cocaine base (also known as crack cocaine).

Kennedy had pleaded guilty on June 26, 2019.

According to court documents, Kennedy sold crack cocaine to a confidential informant on one occasion and to an undercover federal agent an additional four times.

In 2013, Kennedy was prosecuted and convicted by the State of Florida for conspiracy to traffic cocaine.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney Michael J. Coolican.

Jacksonville, Florida – Senior U.S. District Judge Harvey E. Schlesinger has sentenced Lepoleon Spikes (47, Jacksonville) to 21 months in federal prison for wire fraud involving fraudulently obtained FEMA benefits. Spikes was immediately remanded into the custody of the U.S. Marshals Service. The court also ordered Spikes to pay $57,689.19 in restitution to the United States.

According to court documents, in February 2018, the U.S. Department of Homeland Security, Office of Inspector General (DHS-OIG) received an allegation that Spikes had provided false information to the Federal Emergency Management Agency (FEMA) in order to receive disaster assistance. Upon receipt of the allegation, DHS-OIG determined that Spikes had submitted applications to receive disaster assistance from FEMA involving Tropical Storm Debby, Hurricane Matthew, and Hurricane Irma. A review by DHS-OIG determined that, in each of the applications submitted to FEMA for disaster assistance, Spikes falsely claimed that his primary residence in Jacksonville was damaged due to a storm. Spikes claimed that, due to the storm damage, he had to relocate and was in need of disaster assistance. Based on his applications for disaster assistance, Spikes fraudulently obtained $57,689.19 from FEMA.

This case is part of the United States Attorney’s Disaster Fraud Task Force, which was announced in September 2017. This case was investigated by the Department of Homeland Security - Office of Inspector General. It was prosecuted by Assistant United States Attorney Kevin C. Frein.

Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. A live operator 24 hours a day, 7 days a week staffs the telephone line. You can also fax information to the Center at (225) 334-4707, or email it to disaster@leo.gov. You may also visit www.justice.gov/usao-mdfl.

Jacksonville, Florida – United States District Judge Brian J. Davis has sentenced Samuel Lopez-Lopez (29, Atlanta) to 24 months in federal prison for illegally re-entering the United States after previously being deported. Lopez-Lopez had pleaded guilty on July 2, 2019. 

According to the facts described in court, on February 18, 2019, Lopez-Lopez was convicted of battery on a law enforcement officer and grand theft in Columbia County. The charges arose out of an incident at a hotel in Lake City that had occurred on December 28, 2018. After Lopez-Lopez was booked on the charges, immigration agents ran his fingerprints and found that he was a citizen of Honduras who was illegally present in the United States. Lopez-Lopez also had been previously deported from the United States three times.

Lopez-Lopez had previous convictions for domestic battery, use of a controlled substance, transportation of a controlled substance, and possession of a controlled substance. After Lopez-Lopez serves his prison sentence, he will be deported from the United States.

This case was investigated by U.S. Immigration and Customs Enforcement. It was prosecuted by Assistant United States Attorney Arnold B. Corsmeier.

Orlando, Florida – U.S. District Judge Gregory A. Presnell has sentenced Sebastian Denton Zayas (30, Orlando) to 10 years and 10 months in federal prison for possession with the intent to distribute cocaine. 

Denton had pleaded guilty on July 22, 2019.

According to court documents and statements made during today’s sentencing hearing, in May 2019, Denton possessed with the intent to distribute approximately 170 kilograms of cocaine, which was delivered to him by mail. In addition, in June 2019, Denton received another mail delivery of three packages that contained approximately 190 kilograms of cocaine. 

“This investigation is a great example ATF’s broad investigative expertise,” said ATF Special Agent in Charge Daryl McCrary. “While working with our partners at DEA, this case severely impacted drug trafficking in our continued efforts to protect the public.”

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Emily C. L. Chang.

Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Sabrina Nicole Hoffa (40, Jacksonville) to eight years and four months in federal prison and Jeffrey Allen Mays (38, Jacksonville) to six years and three months in federal prison for distributing methamphetamine. The court also ordered Hoffa and Mays to forfeit $1,265 in U.S. currency, which was proceeds of the offense. 

Hoffa and Mays had pleaded guilty on July 11, 2019.

According to court documents, in March 2019, an undercover detective from the Nassau County Sheriff’s Office began purchasing methamphetamine from Hoffa. After two transactions, Hoffa asked the detective to travel to her residence in Jacksonville to conduct future purchases. Hoffa also advised the detective that he should transport the drugs in a locked safe so that law enforcement could not open it without a court order.

The detective, working with the Bureau of Alcohol, Tobacco, Firearms and Explosives, made two additional purchases of methamphetamine from Hoffa at her residence. During one transaction, Hoffa told the detective that she had sold 17 ounces of methamphetamine the previous day for $550 per ounce. During the final transaction, Hoffa and Mays, working together, sold two ounces of methamphetamine to the undercover detective. The Drug Enforcement Administration later determined that the methamphetamine was 98% pure.

On March 27, 2019, Hoffa was arrested in Baker County after she showed up to sell two ounces of methamphetamine to a confidential source who was working with the Baker County Sheriff’s Office. The following day, ATF executed a search warrant at Hoffa and Mays’s home in Jacksonville. Mays was inside of the residence at the time and was arrested. He had two keys to two safes in his possession. Upon searching the safes, ATF located 16.8 grams of 99% pure methamphetamine, MDMA pills, diazepam pills, and other controlled substances.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Nassau County Sheriff’s Office, and the Baker County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Laura Cofer Taylor.

Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Carlos Humberto Moreno-Hernandez (49, Honduras) to 41 months in federal prison for illegally re-entering the United States after previously being deported. Moreno-Hernandez had pleaded guilty on July 19, 2019.

According to evidence presented in court, on May 17, 2019, deputies from the Orange County Sheriff’s Office arrested Moreno-Hernandez on a state criminal charge of operating a motor vehicle without a valid license. Agents soon discovered that Moreno-Hernandez had previously been deported from the United States on six occasions. Moreno-Hernandez also had three prior felony illegal re-entry convictions, four prior drug-related convictions, and six prior DUI convictions.

This case was investigated by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations (Orlando) and the Orange County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Chauncey A. Bratt.

Tampa, Florida – John Armstrong Jr. (30, North Fort Myers) has been arrested and charged by a federal criminal complaint with Hobbs Act robbery and attempted bank robbery. In addition, Tanya Legg (43, North Fort Myers) has been arrested and charged by a separate federal criminal complaint with bank robbery. If convicted, Armstrong and Legg each face a maximum penalty of 20 years in federal prison on each count. Both individuals made their initial appearances in federal court today, in Fort Myers, and have been detained.

According to the criminal complaints, on September 26, 2019, Armstrong, an unidentified associate, and Legg allegedly robbed a BB&T Bank in Altamonte Springs. Armstrong and the unidentified associate used firearms to force bank employees to open the bank’s safe. They then stole approximately $22,000 in cash. Legg assisted in purchasing items used to complete the BB&T robbery and then served as the getaway driver.   

According the complaint against Armstrong, on June 14, 2019, Armstrong used a firearm to rob a 7-11 convenience store in North Fort Myers. During this robbery, Armstrong struck one of the store employees in the face with his firearm, causing a laceration to the bottom corner of her left eye. On September 25, 2019, Armstrong and an unidentified associate attempted to commit an armed robbery of a PNC Bank in Davenport. Earlier that morning, Armstrong or an associate carjacked a vehicle, and held the victim at gunpoint, after which they used the stolen vehicle as a getaway vehicle for the attempted PNC Bank robbery. 

A criminal complaint is merely an allegation 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 is being investigated by the Federal Bureau of Investigation, with assistance from the Altamonte Springs Police Department, the Fort Myers Police Department, the Lee County Sheriff’s Office, the Orange County Sheriff’s Office, the Osceola County Sheriff’s Office, the Punta Gorda Police Department, and the Seminole County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Chauncey A. Bratt.

Jacksonville, Florida – United States District Judge Timothy J. Corrigan has sentenced Joseph Dominic Konegan (56, Fleming Island) to four years in federal prison for possessing child pornography. Konegan was also ordered to serve a 10-year term of supervised release and pay restitution to the victims. He has been detained since his arrest on April 2, 2019.

Konegan had pleaded guilty on May 21, 2019. 

According to court documents, in August 2018, detectives from the Clay County Sheriff’s Office (CCSO) received two cyber-tips from the National Center for Missing and Exploited Children reporting the uploading of child sexual abuse material on the internet. On October 24, 2018, CCSO detectives and Homeland Security Investigation agents executed a warrant at Konegan’s residence. A forensic review of two computers used by Konegan yielded more than 1,650 images of child pornography. Konegan admitted to agents that he had viewed images of child pornography, including files depicting infants. 

This case was investigated by the Clay County Sheriff’s Office and the U.S. Department of Homeland Security, Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Kelly S. Karase.

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.

Tampa, FL - Two years ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), the centerpiece of the department’s violent crime reduction strategy. 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.

Throughout the past two years, we have partnered with all levels of law enforcement, local organizations, and members of the community to reduce violent crime and make our neighborhoods safer for everyone. According to FBI’s Uniform Crime Report released this week, the violent crime rate decreased for the second consecutive year, down 3.9 percent from the 2017 numbers.

“The revitalized Project Safe Neighborhoods program is a major success,” said Attorney General William P. Barr. “It packs a powerful punch by combining advanced data with local leadership, further reducing violence in communities across the country and improving overall public safety. U.S. Attorneys continue to focus their enforcement efforts against the most violent criminals and work in partnership with federal, state, local, and tribal police. The Justice Department’s relationships across the board have never been stronger.”

“We are proud of the dedication and hard work by our law enforcement and community partners as we strive to reduce crime throughout our district,” said U.S. Attorney Maria Chapa Lopez. “Project Safe Neighborhoods only works when we enlist the support, expertise, and perspectives of our law enforcement partners and the community. Together, we will continue to make our communities safer places to live, work, and play.” 

As we celebrate the two-year anniversary of the revitalized PSN program, here are some of the highlights of our PSN actions over the past year:

Enforcement Actions

The U.S. Attorney’s Office continues to work with federal, state, and local partners to implement PSN throughout the Middle District of Florida. These coordinated efforts ensure that federal efforts are focused against the most violent offenders.

• Beginning in December 2018, a long-term investigation of a violent drug trafficking organization known as the “Bird Gang,” operating primarily in Tampa, has culminated in the indictment of 26 individuals charged with various federal firearms and drug offenses. Since the arrests, no reported shootings have occurred in the neighborhood where the gang had operated.

• In May 2019, Jacksonville’s new Crime Gun Intelligence Center (CGIC) officially opened. CGIC is a collaborative effort among the Jacksonville Sheriff’s Office, the State Attorney’s Office for the Fourth Judicial Circuit, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Attorney’s Office. Several individuals have already been arrested and indicted as a result of leads generated from CGIC.

• As part of the U.S. Marshals Service’s Operation Triple Beam, Ft. Myers PSN efforts resulted in more than 120 arrests involving firearms, drugs, and violent crime.

Community Partnerships

Community engagement is a critical component in the successful implementation of PSN. The USAO-MDFL frequently engages diverse stakeholders in providing training, prevention, intervention, and reentry strategies and programs. Some recent activities include:

• National Night Out and Coffee with a Cop
• Great American Teach-In
• Preventing Targeted School Violence
• Federal Reentry Courts and Local Networks (Tampa; Orlando; Jacksonville)
• Engagement with more than 10,600 citizens

Improvements to Community Safety

• For the second consecutive year, the estimated number of violent crimes in the nation decreased when compared with the previous year’s statistics, according to FBI figures released today. In 2018, the number of violent crimes was down 3.3 percent from the 2017 number.
• The 2018 statistics also show the estimated rate of violent crime was 368.9 offenses per 100,000 inhabitants. The violent crime rate fell 3.9 percent when compared with the 2017 rate.
• According to the recently released FBI Uniform Crime Report, the violent crime rate decreased for several cities in the Middle District of Florida. The 2018 statistics show the greater Tampa Bay region’s estimated rate of violent crime was 306 offenses per 100,000 inhabitants. This represents an 8 percent reduction in the violent crime rate when compared with the 2017 rate. Ft Myers saw a reduction of 9 percent and Jacksonville had a reduction of almost 6 percent. 

These enforcement actions and partnerships are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.

 

Tampa, Florida – Nicholas Skaroulis (58, Tarpon Springs) has pleaded guilty to one count of violating the Endangered Species Act by causing the unlawful export of wildlife. Skaroulis faces a maximum penalty of one year in federal prison. A sentencing date has not yet been set.

According to the plea agreement, Skaroulis owned and operated Sponges Direct, Inc., a business located in Tarpon Springs, Florida. Among other things, the company sold non-living natural sponges to customers, both domestic and foreign. During 2014 through 2018, the company sold and exported non-living sponges to customers outside of the United States. The company failed to disclose the contents of these shipments on U.S. Fish and Wildlife Service Declaration Forms as required by federal regulation. By doing so, the company evaded the payment of inspection and user fees on each shipment.

The United States Fish and Wildlife Service investigated this case. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.

The owner of a Tampa, Florida-area medical marketing company was sentenced to 70 months in prison today for his role in a $2.2 million Medicare fraud scheme involving the payment of kickbacks and bribes to fraudulent medical clinics in Miami in exchange for the referral of Medicare beneficiaries for expensive genetic tests that were medically unnecessary, and for his role in the illegal structuring of cash withdrawal transactions.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Maria Chapa Lopez of the Middle District of Florida, Special Agent in Charge Michael McPherson of the FBI’s Tampa Field Office and Assistant Inspector General Omar Perez of the U.S. Department of Health and Human Services Office of the Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.

U.S. District Judge Susan C. Bucklew of the Middle District of Florida, sentenced David Brock Lovelace, 49, of Land o’ Lakes, Florida, the owner of DBL Management LLC in Land o’ Lakes.  After a one-week jury trial in July 2019, Lovelace was found guilty of one count of conspiracy to defraud the United States and pay and receive illegal health care kickbacks and one count of structuring cash withdrawals to avoid reporting requirements.

According to the evidence presented at trial, Lovelace was paid by a genetic testing laboratory for each DNA swab that Lovelace arranged to be referred to the laboratory.  In order to obtain DNA swabs, Lovelace paid illegal cash kickbacks and bribes to medical clinics in Miami in exchange for the referral of DNA swabs that were obtained from Medicare beneficiaries.  Lovelace directed the owners of the medical clinics to collect the DNA of all the patients who visited the clinics, regardless of whether the patients actually had any medical need for DNA testing.  In turn, the clinics provided food and other inducements to beneficiaries to get them to visit the clinics where their DNA was collected. 

The evidence at trial showed that the test results were never provided to the beneficiaries; rather, co-conspirators at the clinics paid doctors and obtained prescriptions for the DNA testing, frequently without any patient interaction.

From November 2013 to May 2014, the evidence at trial showed that Lovelace paid these kickbacks in the form of cash bribes to Miami clinic owners.  From May 2014 to November 2014, after his arrest on other health care fraud charges, the evidence showed that Lovelace established shell companies, including Healthcare Marketing Florida of Melbourne, Florida, and recruited others to help him continue the scheme while he was out on pretrial release awaiting trial in his first criminal case. 

Lovelace was previously found guilty by a jury in December 2015 of various health care fraud, money laundering and identity theft charges in a case handled by the Criminal Division’s Fraud Section.  He is currently serving 14 years in prison on those charges.  The sentence imposed today was ordered to be served consecutively with the 14-year sentence previously imposed.   

The FBI and HHS investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Florida.  Trial Attorney John Michelich and Assistant Deputy Chief Jacob Foster of the Fraud Section prosecuted the case.

The Fraud Section leads the Medicare Fraud Strike Force.  Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $16 billion.  In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

Orlando, Florida – U.S. District Judge Carlos E. Mendoza today sentenced Ishod Hazell (26, Orlando) to three years in federal prison for committing aggravated identity theft and using unauthorized access devices at Universal Orlando theme parks. The court also ordered Hazell to pay restitution in the amount of $153,598.99, representing the total losses to Universal.

Hazell had pleaded guilty on July 16, 2019.

According to court documents, between June 16, 2018, and February 27, 2019, Hazell used 91 different stolen credit card numbers to purchase theme park tickets and hotel packages from Universal valued at approximately $291,170.  Hazell routinely called the Universal call center to make the fraudulent purchases, each time using a different stolen credit card number and identifying himself as the credit card holder. After making the fraudulent purchases, Hazell and his associates used the theme parks’ self-serve kiosks to pick up the tickets. The tickets were then sold to unsuspecting vacationers using an online website.

This case was investigated by the U.S. Secret Service. It was prosecuted by Assistant United States Attorney Chauncey A. Bratt.

Jacksonville, Florida – Joanna Arlean Tukes has pleaded guilty to aiding and assisting others with the filing of fraudulent tax returns. She faces a maximum penalty of three years in federal prison. Tukes has also agreed to pay $366,000 in restitution to the IRS for the tax loss caused by the offenses. A sentencing date has not yet been set.

According to the plea agreement, since 2012, Tukes owned and operated a tax return preparation business in Jacksonville. In preparing income tax returns for others, Tukes reported false information, including false claims for deductible expenses and losses, to reduce the amount owed by, or to increase the amount refunded to, the taxpayers. She then electronically filed the tax returns with the IRS causing the IRS either to issue refunds when taxes would have been owed in the absence of the fraud, or to issue larger refunds than would have been due in the absence of the fraud.

For example, Tukes prepared and filed a 2015 tax return in which she represented that the taxpayer had a business with no income and $99,651 in expenses. She also represented that the taxpayer had incurred medical and dental expenses of $29,600 and unreimbursed employee expenses of $15,600. Tukes subtracted the business “loss” of $99,651 from the taxpayer’s gross income and deducted a portion of the claimed expenses from the taxpayer’s adjusted gross income. When Tukes made these representations, she knew that the taxpayer was a wage-earning employee of a corporation and did not operate a business in 2015, and that the taxpayer had not incurred the claimed expenses. After Tukes filed the tax return, the IRS issued a refund to the taxpayer in the amount of $28,836. In the absence of the false statements, the taxpayer would have owed additional tax in the amount of $12,459. In this instance, the tax loss to the IRS was $41,295.

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

Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Kirkland George Lawrence (34, Jacksonville), a/k/a “Killa,” to eight years and nine months in federal prison for attempted distribution of heroin, possessing a firearm in furtherance of a drug trafficking crime, possessing a firearm as a convicted felon, and distribution of cocaine. The court also ordered Lawrence to forfeit the Smith & Wesson pistol that he had used in one of the offenses. 

Lawrence had pleaded guilty on June 28, 2019.

According to court documents, in April 2018, Lawrence agreed to sell drugs to a confidential informant (CI) working at the direction of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The CI traveled to Lawrence’s apartment in the Arlington area of Jacksonville, where Lawrence sold a powder to the CI that Lawrence had represented to be heroin. It was later determined that the substance did not contain heroin. At the time of the sale, Lawrence was seated at a kitchen table, within reach of a pistol, and holding an infant.

The following day, the CI returned to Lawrence’s apartment after Lawrence agreed to sell a firearm. Inside the apartment, Lawrence brandished a pistol while additional firearms were visible on a sofa and on the floor. Lawrence also retrieved an Uzi pistol from a kitchen cabinet and displayed it to the CI. Lawrence then retrieved a Smith and Wesson pistol from outside of the apartment and sold it to the CI. Approximately two weeks later, following the execution of a search warrant at his apartment, Lawrence was arrested by officers from the Jacksonville Sheriff’s Office. At the time, Lawrence was in possession of another Smith & Wesson pistol.

In October 2018, while on bond for his previous arrest, Lawrence sold cocaine to the CI on three occasions. Lawrence was arrested again and admitted to the officers that he believed that the purported heroin that he had sold in April 2018 was genuine. During these incidents, Lawrence had a prior felony conviction for attempted armed robbery and is therefore prohibited from possessing any firearms or ammunition under federal law.

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

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 Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

Jacksonville, Florida – Richard Ronnie Jenkins (39, Jacksonville) today pleaded guilty to transporting a person in interstate commerce for the purpose of prostitution. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.

According to the plea agreement, Jenkins met the victim (N.J.) on July 14, 2019, after N.J. had posted an online advertisement for prostitution in Fayetteville, North Carolina. Jenkins agreed to pay N.J. $160 for sex, then fraudulently told N.J. that she could make a lot more money by engaging in prostitution in Jacksonville, Florida. N.J. agreed to go to Jacksonville with Jenkins, not knowing that Jenkins intended to keep all of the money that N.J. would make. Jenkins then had sex with N.J. in his car and refused to pay her.

As Jenkins drove through the night from North Carolina to Jacksonville, he instructed N.J. to begin posting advertisements for prostitution in the Jacksonville area using a phone number with an app-generated 904 area code. When they arrived in Jacksonville on July 15, 2019, Jenkins obtained a hotel room and arranged three prostitution “dates” for N.J. The following day, Jenkins arranged a fourth “date” for N.J. Jenkins supervised each of these “dates” from the hotel parking lot. He came to the room after each “date” to collect all of the money, which he refused to share with N.J. N.J. engaged in the “dates” because she was afraid of Jenkins and because she had no funds or other resources that she could use to leave.

On July 16, 2019, Jenkins took N.J. to a hair braiding shop in Jacksonville and instructed the employees to place long braids in N.J.’s hair. Jenkins then left the shop. Believing that the shop employees were associates of Jenkins, N.J. took her phone into the bathroom, contacted a family member, and reported that she was in Jacksonville with a pimp. N.J.’s mother contacted the Jacksonville Sheriff’s Office (JSO) and reported that N.J. had been kidnapped. During the phone call, N.J. can be heard crying and stating that Jenkins was trying to call her and, that if she did not answer, she believed that Jenkins would find her and kill her. A JSO patrol officer responded to the shop and recovered N.J. Shortly thereafter, Jenkins was arrested nearby.

This case was investigated by the Jacksonville Sheriff’s Office and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Laura Cofer Taylor and Special Assistant United States Attorney Erin Wolfson.

Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich today sentenced Justin Scott Hunt (31, Tampa) to 12 years and 8 months in federal prison for attempting to entice a minor to engage in sexual activity and attempting to transfer obscene material to a minor. 

A jury found Hunt guilty on March 21, 2019.

According to court documents, Hunt engaged in six months of online conversation with someone he believed to be a small child and the child’s mother.  In reality, he was talking to an undercover agent. On numerous occasions, Hunt requested to meet the child and described, in graphic detail, the sex acts that he planned to engage in with the child.

“This predator intended to rape a young child,” said HSI Tampa Assistant Special Agent in Charge Micah McCombs. “Instead, he was stopped in his tracks by HSI special agents and will now be held accountable for his crimes.”

This case was investigated by Homeland Security Investigations. It was prosecuted by Assistant United States Attorneys Gregory T. Nolan and Candace Garcia Rich.

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

Jacksonville, Florida – A federal jury today found Katrina Brown (39, Jacksonville) and Reginald Brown (57, Jacksonville) guilty of conspiracy to commit mail and wire fraud, aiding and abetting mail and wire fraud, and aiding and abetting money laundering. The jury also found Katrina Brown guilty of attempted bank fraud and making false statements to a federally insured financial institution, and Reginald Brown guilty of failure to file an income tax return with the Internal Revenue Service for tax year 2014. Each bank fraud or false statement offense carries a maximum penalty of 30 years in federal prison. Each conspiracy and aiding and abetting mail and wire fraud charge carries a maximum penalty of 20 years’ imprisonment. The money laundering offense carries a maximum sentence of 10 years in federal prison, and the income tax charge carries a penalty of up to a year in prison.

Sentencings are scheduled for January 27, 2020. At sentencing, the United States intends to seek forfeiture from the defendants of at least $754,613.10, which is alleged to be traceable to the offenses.

According to the evidence presented at trial, in late 2013, Katrina Brown was the principal for two businesses (Basic Products, LLC and CoWealth, LLC), which in 2011 obtained a loan in the amount of $2,652,000 from the Small Business Administration (SBA), and a loan of $380,000, and a grant of approximately $260,000 from the City of Jacksonville (COJ), to fund a small business that specialized in the manufacturing, bottling, and selling of barbecue sauce. As a member of the Jacksonville City Council, Reginald Brown was knowledgeable of City Ordinance 2011-290-E, which authorized the COJ loan and grant – proceeds of which he and Katrina Brown would later obtain by fraud.

Katrina Brown’s family had been in the barbecue business in Jacksonville for many years. The $3.2 million in financing was intended to fund an expansion of Basic Products and help create permanent manufacturing jobs in Northwest Jacksonville. Each time Katrina Brown sought money for Basic Products from BizCapital, the SBA-approved lender, she submitted a Loan Reimbursement Form that included the purported business expenses for which Basic Products sought reimbursement.

In late 2013, when the barbecue business was not meeting financial projections, Katrina Brown assisted Jacksonville City Councilman Reginald Brown in incorporating two businesses (A Plus Training and Consultants, LLC and RB Packaging, LLC) with the Florida Division of Corporations. A Plus Training and RB Packaging, however, never performed any legitimate business. Instead of properly notifying BizCapital that Basic Products was in financial distress, Katrina Brown worked with Reginald Brown to submit fake invoices from A Plus Training and RB Packaging to the SBA lender, BizCapital, claiming that the businesses performed work for Basic Products, when they businesses did not.

BizCapital sent checks, at times larger than $60,000, to RB Packaging and A Plus Training, which, on paper, were headquartered at Reginald Brown’s home and his mother’s home, respectively. Reginald Brown deposited those checks into the bank accounts for A Plus Training and RB Packaging, then withdrew a significant portion of the money and provided it to Katrina Brown, who either kept the cash or laundered the money by depositing it back into the Basic Products bank account so that she could control the funds. During this time, from late 2013 to early 2015, Reginald Brown, A Plus Training, and RB Packaging served as a conduit to receive $264,419.04 in proceeds from the SBA loan and the COJ grant, then funneled at least $166,500 back to Basic Products. Reginald Brown kept money not provided to Katrina Brown, despite performing no legitimate work or services for Basic Products, and used the majority of the money for personal expenses. Reginald Brown never filed a tax return for tax year 2014, the period of these primary occurrences, and failed to disclose to the IRS that he had received tens of thousands of dollars from the SBA.

In December 2014, BizCapital sent all loan draw information to the City of Jacksonville, which included the numerous fraudulent A Plus Training and RB Packaging invoices. The loan draw information, including the fraudulently induced payments to A Plus Training and RB Packaging, was relied upon by the COJ before it wired $210,549.99 in taxpayer-funded grant money to BizCapital for the intended use of Basic Products. Before the money was sent to BizCapital, neither Katrina Brown nor Reginald Brown informed BizCapital or the city that Basic Products had fraudulently obtained loan payments to Reginald Brown’s shell companies (A Plus Training and RB Packaging).

After BizCapital informed Katrina Brown that the SBA loan was in default status in January 2015, she then attempted to obtain two bank loans in 2015 and 2016 by submitting doctored and false bank statements to loan brokers, seeking loans from WebBank to infuse cash into her and her family’s businesses. Instead of providing the actual bank statements of the businesses, Katrina Brown falsified the businesses’ bank statements in an attempt to make it appear to the lender that the businesses were credit worthy, when in fact they were not.

This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Tysen Duva and Michael J. Coolican.

Orlando, FL – United States Attorney Maria Chapa Lopez announces that a federal jury today found Fredy David Ramos (44, Orlando) guilty of illegal reentry to the United States after deportation. Ramos faces a maximum penalty of two years in federal prison. His sentencing hearing is scheduled for December 18, 2019.

According to testimony and evidence presented at trial, as well as other court documents, Ramos was deported to Honduras by U.S. Immigration and Customs Enforcement (ICE) in 2011. Ramos subsequently illegally reentered the United States on an unknown date. On October 27, 2018, Ramos was arrested and convicted for possession of cocaine and a firearm in Orlando. After his state criminal proceeding concluded, ICE arrested Ramos for his illegal reentry into the United States.

“This case highlights ICE’s commitment to targeting criminals and threats to public safety as we enforce our nation’s immigration laws,” said Miami Field Office Director Michael W. Meade.

This case was investigated by Immigration and Customs Enforcement – Enforcement and Removal Operations (ERO). It is being prosecuted by Special Assistant United States Attorney Brandon Bayliss.

Tampa, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Norman Nicholson (56, Largo) with one count of making false records in a federal investigation and one count of depriving an individual of their rights under color of law. If convicted, Nicholson faces a maximum penalty of 20 years’ imprisonment for the obstruction charge and up to one year in federal prison for the civil rights violation.

According to the indictment, while employed as a police officer with the Bay Pines Veterans Affairs facility, Nicholson used excessive and unreasonable force during the arrest of a United States Army veteran. Nicholson then authored two false arrest affidavits and a police report in which he attempted to cover up the incident.

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

This case was investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Diego F. Novaes.

Fort Myers, FL - A currently imprisoned Florida businessman pleaded guilty today to making false statements on a financial disclosure statement he provided to the Justice Department, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Maria Chapa Lopez of the Middle District of Florida.

According to documents filed with the court, Casey Padula, age 51, formerly of Port Charlotte, Florida, made the false statements on a financial disclosure statement he was required to submit to the government after pleading guilty to tax and bank fraud. On July 17, 2017, in the prior prosecution, Padula was sentenced to 57 months in prison on one count of conspiracy to defraud the United States and commit bank fraud. Padula admitted using offshore entities and accounts to commit the tax fraud. Padula also committed bank fraud by carrying out a fraudulent short-sale transaction designed to reduce or eliminate his $1.5 million mortgage at Bank of America. Pursuant to his plea agreement, Padula was required to provide a full and accurate financial disclosure statement to the government. Instead Padula submitted a false financial disclosure statement in which he failed to disclose numerous assets, including a boat valued at almost $340,000, at least $80,000 in cash, and a $90,000 Mercedes he had recently purchased for his daughter.

Padula faces a statutory maximum sentence of five years in prison.  He also faces a period of supervised release and monetary penalties.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Chapa Lopez thanked special agents of Internal Revenue Service-Criminal Investigation, who conducted the investigation, and Assistant Chief Todd Ellinwood of the Tax Division, who is prosecuting the case.

A currently imprisoned Florida businessman pleaded guilty today to making false statements on a financial disclosure statement he provided to the Justice Department, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Maria Chapa Lopez of the Middle District of Florida.

According to documents filed with the court, Casey Padula, age 51, formerly of Port Charlotte, Florida, made the false statements on a financial disclosure statement he was required to submit to the government after pleading guilty to tax and bank fraud. On July 17, 2017, in the prior prosecution, Padula was sentenced to 57 months in prison on one count of conspiracy to defraud the United States and commit bank fraud. Padula admitted using offshore entities and accounts to commit the tax fraud. Padula also committed bank fraud by carrying out a fraudulent short-sale transaction designed to reduce or eliminate his $1.5 million mortgage at Bank of America. Pursuant to his plea agreement, Padula was required to provide a full and accurate financial disclosure statement to the government. Instead Padula submitted a false financial disclosure statement in which he failed to disclose numerous assets, including a boat valued at almost $340,000, at least $80,000 in cash, and a $90,000 Mercedes he had recently purchased for his daughter.

Padula faces a statutory maximum sentence of five years in prison.  He also faces a period of supervised release and monetary penalties.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Chapa Lopez thanked special agents of Internal Revenue Service-Criminal Investigation, who conducted the investigation, and Assistant Chief Todd Ellinwood of the Tax Division, who is prosecuting the case.

Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Robinson Jason Resto (40, Orlando) to two years in federal prison for possessing a firearm, after having been previously convicted of a felony. Resto had pleaded guilty on July 25, 2019. 

According to court documents, on March 25, 2019, Resto began communicating with an individual who was cooperating with law enforcement via text messages about firearms that the individual had for sale. The two eventually arranged for Resto to obtain a 9 mm Ruger Model P95DC firearm in exchange for a cash payment and a “throwaway” gun that Resto had in his possession. In arranging the trade/purchase, and when the two met in a parking lot to consummate the deal on April 4, 2019, Resto also expressed interest in obtaining an AK-47 assault rifle.  At the time, Resto had been convicted of multiple felony offenses, including one prior state conviction for possession of a firearm by a convicted felon. As such, he is prohibited from possessing a firearm or ammunition under federal law.   

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Orlando Police Department. It is being prosecuted by Assistant United States Attorney Dana E. Hill.

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 Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

Orlando, Florida – A federal jury has found William Tosca (35, Kissimmee) guilty of failing to register and update a registration as required by the Sex Offender Registration and Notification Act (SORNA). He faces a maximum penalty of 10 years in federal prison. His sentencing hearing is scheduled for December 16, 2019.

According to testimony and evidence presented at trial, in January 2013, Tosca was convicted by a jury in Massachusetts of a qualifying sex offense. While incarcerated in Massachusetts, the state’s sex offender registry board notified Tosca of his need to register as a sex offender. In October 2015, after being informed of his need to update his registration, Tosca failed to register in Massachusetts. In October 2016, he then moved to Florida and again failed to update his registration.

SORNA is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act also provides for the use of federal law enforcement resources, including the United States Marshals Service, to assist state and local authorities in locating and apprehending non-compliant sex offenders.

This case was investigated by the United States Marshals Service, the Osceola County Sherriff’s Office, the Florida Department of Law Enforcement, and the Massachusetts Sex Offender Registry Board. It is being prosecuted by Assistant United States Attorney Sean P. Shecter.

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