Southern District of Florida

MIAMI – A federal grand jury returned an indictment today charging a former finance director of the Latin America division of Stericycle Inc., an international waste management company headquartered in Lake Forest, Illinois, for his role in an alleged scheme to pay over $10 million in bribes to foreign officials in Brazil, Mexico, and Argentina.

According to court documents, between 2011 and 2016, Abraham Cigarroa Cervantes, 51, of Mexico, and others allegedly caused hundreds of bribe payments to be made to government officials in Brazil, Mexico, and Argentina to obtain and retain business and to secure improper advantages for Stericycle, a U.S. securities issuer, in connection with providing waste management services. As part of the scheme, employees at Stericycle’s offices in Mexico, Brazil, and Argentina allegedly made bribe payments, typically in cash, and calculated the amount of the bribes as a percentage of underlying contract payments made by or owing from a government customer. In all three countries, Cigarroa and his co-conspirators allegedly tracked the bribe payments through spreadsheets and described the bribes through code words and euphemisms. To conceal the corrupt payments, Cigarroa and others allegedly maintained false books, records, and accounts that did not accurately and fairly reflect the transactions and dispositions of Stericycle’s assets, causing Stericycle to falsely record bribe payments as legitimate expenses in its consolidated books, records, and accounts. Cigarroa also allegedly submitted and maintained falsified Sarbanes-Oxley certifications and business unit representation letters falsely attesting that the books, records, and accounts were accurate.

Cigarroa is charged with one count of conspiracy to violate the Foreign Corrupt Practices Act’s (FCPA) anti-bribery provisions and one count of conspiracy to violate the FCPA’s books and records provisions. If convicted, he faces a maximum penalty of five years in prison on each count.

In April 2022, Stericycle admitted to bribing officials in Mexico, Brazil, and Argentina in violation of the FCPA’s anti-bribery and books and records provisions. Stericycle entered into a three-year deferred prosecution agreement with the Criminal Division’s Fraud Section and agreed to pay more than $84 million as part of a coordinated resolution with the Justice Department, the Securities and Exchange Commission, and authorities in Brazil.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida; Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, and Assistant Director in Charge James Smith of the FBI New York Field Office made the announcement.

The FBI New York Field Office is investigating the case.

Assistant U.S. Attorney Manolo Reboso and Trial Attorneys Paul A. Hayden and Jil Simon of the Criminal Division’s Fraud Section are prosecuting the case. The Justice Department’s Office of International Affairs and authorities in Brazil and Mexico provided assistance in the matter.

The Fraud Section is responsible for investigating and prosecuting FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.

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A federal grand jury in the Southern District of Florida returned an indictment today charging a former finance director of the Latin America division of Stericycle Inc., an international waste management company headquartered in Lake Forest, Illinois, for his role in an alleged scheme to pay over $10 million in bribes to foreign officials in Brazil, Mexico, and Argentina.

According to court documents, between 2011 and 2016, Abraham Cigarroa Cervantes, 51, of Mexico, and others allegedly caused hundreds of bribe payments to be made to government officials in Brazil, Mexico, and Argentina to obtain and retain business and to secure improper advantages for Stericycle, a U.S. securities issuer, in connection with providing waste management services. As part of the scheme, employees at Stericycle’s offices in Mexico, Brazil, and Argentina allegedly made bribe payments, typically in cash, and calculated the amount of the bribes as a percentage of underlying contract payments made by or owing from a government customer. In all three countries, Cigarroa and his co-conspirators allegedly tracked the bribe payments through spreadsheets and described the bribes through code words and euphemisms. To conceal the corrupt payments, Cigarroa and others allegedly maintained false books, records, and accounts that did not accurately and fairly reflect the transactions and dispositions of Stericycle’s assets, causing Stericycle to falsely record bribe payments as legitimate expenses in its consolidated books, records, and accounts. Cigarroa also allegedly submitted and maintained falsified Sarbanes-Oxley certifications and business unit representation letters falsely attesting that the books, records, and accounts were accurate.

Cigarroa is charged with one count of conspiracy to violate the Foreign Corrupt Practices Act’s (FCPA) anti-bribery provisions and one count of conspiracy to violate the FCPA’s books and records provisions. If convicted, he faces a maximum penalty of five years in prison on each count.

In April 2022, Stericycle admitted to bribing officials in Mexico, Brazil, and Argentina in violation of the FCPA’s anti-bribery and books and records provisions. Stericycle entered into a three-year deferred prosecution agreement with the Criminal Division’s Fraud Section and agreed to pay more than $84 million as part of a coordinated resolution with the Justice Department, the Securities and Exchange Commission, and authorities in Brazil.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Markenzy Lapointe for the Southern District of Florida; and Assistant Director in Charge James Smith of the FBI New York Field Office made the announcement.

The FBI New York Field Office is investigating the case.

Trial Attorneys Paul A. Hayden and Jil Simon of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Manolo Reboso for the Southern District of Florida are prosecuting the case. The Justice Department’s Office of International Affairs and authorities in Brazil and Mexico provided assistance in the matter.

The Fraud Section is responsible for investigating and prosecuting FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

MIAMI – On March 12, Eric Edward Cadogan, a/k/a “livelife4fun69,” 39, of La Crosse, Wisconsin, formerly of Marathon, Florida, pled guilty to distributing child pornography before U.S. Magistrate Judge Lurana S. Snow.

According to the factual proffer in support of the plea and information presented in court, Cadogan uploaded and distributed child pornography using a social media messaging platform.  Cadogan also offered to sell child pornography and said he had “100 of videos n pictures.” In messages with an online undercover agent, Cadogan indicated he had engaged in sexually explicit conduct with minor children.

A sentencing hearing has yet to be scheduled before U.S. District Judge K. Michael Moore.  Cadogan faces a mandatory minimum term of 5 years in prison, and up to twenty years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, announced the guilty plea.

FBI Miami Key West Resident Agency investigated the case.  Assistant U.S. Attorney Katherine W. Guthrie is handling the case.

This case was brought as part of Project Safe Childhood (PSC), 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, PSC 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 the PSC initiative and for information regarding Internet safety, please visit www.justice.gov/psc.

Anyone with information regarding suspected child abuse (to include physical and sexual abuse) is encouraged to call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-CR-10017.

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MIAMI - Ja’kevious Ri’shaad Vickers, the leader of a bank fraud conspiracy, was sentenced today to federal prison.

Vickers, Gregory Bernard Ashley Jr., and Naim W. Kahook were involved in a bank fraud conspiracy involving stolen checks, theft of personal identifying information, and the production of fraudulent or fake checks.

Vickers was sentenced to 57 months imprisonment, to be followed by five years of supervised release, and was ordered to pay $269,611.19 in restitution by U.S. District Judge Donald M. Middlebrooks. Vickers previously pleaded guilty to conspiracy to commit bank fraud, bank fraud, and aggravated identity theft.

Ashley Jr. and Kahook each previously pleaded guilty to conspiracy to commit bank fraud. Ashley Jr. and Kahook were sentenced to seven months and two months prison, respectively. Ashley was further ordered to pay $30,986.91 in restitution.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office, Sheriff Ric Bradshaw of the Palm Beach County Sheriff’s Office (PBSO), Chief David E. England of the Jupiter Police Department, and Special Agent in Charge Javan Wilson of the U.S. Department of the Treasury Office of Inspector General (TIG) made the announcement.

The FBI Miami, West Palm Beach Resident Agency, PBSO, Jupiter Police Department, and TIG investigated the case. Assistant U.S. Attorney Marton Gyires prosecuted the case. Assistant U.S. Attorney Jorge Roberto Delgado is handling asset forfeiture.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-80185.  

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MIAMI –Raisha Kelly, 43, and Widny Thibaud, 44, of Loxahatchee, Florida and Cortira Gray, 33, and Ann Gilchrist, 55 of Miami, Florida have been charged with conspiracy to commit wire fraud wire fraud in connection with their submission of false and fraudulent PPP loan applications.

According to allegations in the indictment and statements made in open court, Kelly, Thibaud, Gray and Gilchrist conspired with themselves and others to submit PPP loan applications and submitted and caused the submission of fraudulent PPP and EIDL loan applications, on behalf of themselves and corporate entities that they controlled. Kelly, in return for the payment of kickbacks, submitted and caused the submission of false and fraudulent PPP loan applications for Gilchrist, Gray and others.   Kelly, Thibaud, Gray and Gilchrist submitted and caused the submission of false and fraudulent information and documentation in support of the PPP loan applications, including falsified Internal Revenue Service (IRS) forms, among other things that falsely and fraudulently represented the annual gross receipts and tentative profits of the sole proprietorships and corporate entities they controlled. In total, this conspiracy caused PPP lenders to make approximately $1.3 million in loans to Kelly, Thibaud, Gray, Gilchrist and their co-conspirators.

According to allegations, during the commission of the conspiracy Gray was an employee of the U.S. Postal Service (USPS) and Gilchrist was an employee of the Miami-Dade Transit Department.

Thibaud is also charged with a separate wire fraud scheme for his submission of a false and fraudulent mortgage loan application to a mortgage lender that caused Thibaud to receive a $700,000 mortgage for which he was not qualified.

Gray, Gilcrhist and Kelly had their initial appearances on March 11.  Thibaud had his initial appearance on March 12.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Jonathan Ulrich, Special Agent in Charge, USPS Office of Inspector General (USPS OIG), Special Agent in Charge Amaleka McCall-Brathwaite, U.S. Small Business Administration Office of Inspector General (SBA OIG), Investigations Division’s Eastern Region, and Special Agent in Charge Mathew Broadhurst of the U.S. Department of Labor Office of Inspector General (DOL-OIG), Southeast Region made the announcement.

This case was investigated by the USPS OIG, SBA OIG, and DOL-OIG.  This case is being prosecuted by Assistant U.S. Attorney Daniel Bernstein.

The charges contained in the indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.     

In March 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Among other sources of relief, the CARES Act authorized and provided funding to the SBA to provide Economic Injury Disaster Loans (“EIDLs”) to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred.  EIDL applications were submitted directly to the SBA via the SBA’s on-line application website, and the applications were processed and the loans funded for qualifying applicants directly by the SBA.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. For more information on the department’s response to the pandemic, please click https://www.justice.gov/coronavirus. 

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. 

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov under case number 24-CR-20079.

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MIAMI – Two former City of Miami Police Department (MPD) employees pled guilty for their involvement in separate COVID-19 relief fraud cases.

U.S. v. Sheana Haslem, Case No. 24-20037-Cr-WILLIAMS/GOODMAN

On March 6, 2024, Sheana Haslem, 38, who was formerly a MPD Police Staffing Specialist, pled guilty to wire fraud in connection with her fraudulent applications for a Paycheck Protection Program (PPP) loan and an Economic Injury Disaster Loan (EIDL) advance, before U.S. District Judge Kathleen M. Williams. 

According to the facts admitted at the change of plea, on July 6, 2020, Haslem, who at the time was employed full-time by the MPD, submitted and with the assistance of an associate, caused to be submitted, to the U.S. Small Business Administration (SBA), a fraudulent EIDL application claiming to be an independent contractor and the 100% owner of a hair and nail salon business operating under her own name.  That EIDL application falsely certified that for the 12-month period prior to January 31, 2020, Haslem’s business had gross revenues of approximately $89,993 and 15 employees. As a result of this fraudulent application, Haslem obtained from the SBA a $10,000 EIDL advance.

Subsequently, on February 27, 2021, Haslem submitted, and with the assistance of the same associate, caused to be submitted, a fraudulent PPP loan application claiming to be an independent contractor operating a business under her own name. That application falsely represented the business’ average monthly payroll as being $8,333, and as part of the application process, Haslem submitted a fraudulent IRS Form 1040, Schedule C, for tax year 2019, claiming she had a security officer business that had a gross income of $102,874, no expenses, and a net profit of $102,874.  As a result of this fraudulent application, Haslem obtained a $20,832 PPP loan from an SBA approved lender.

Haslem is scheduled for sentencing on May 28, before Judge Williams in Miami, Florida, where she faces a maximum sentence of twenty years in prison.

U.S. v. Keandra Carter, Case No. 23-20475-Cr-WILLIAMS/GOODMAN

On February 13, 2024, former MPD Public Service Aide Keandra Carter, 35, pled guilty before Judge Williams to wire fraud in connection with her fraudulent application for a PPP loan. 

According to the facts admitted at the change of plea, on April 4, 2021, Carter, who was working as a full-time MPD Public Service Aide, submitted a false and fraudulent PPP loan application claiming to be a sole proprietor operating a business under her own name. That PPP loan application falsely and fraudulently represented that her sole proprietorship’s 2019 gross income was $1,100,000. In support of that application, Carter submitted a fraudulent IRS Form 1040, Schedule C, for tax year 2019, falsely stating that she was a “hair braider” and that her business had a gross income of $1,100,000. As a result of this false and fraudulent application, Carter obtained a $20,833 PPP loan from an SBA-approved PPP lender based in Pennsylvania.

Carter is scheduled for sentencing on May 2, before Judge Williams in Miami, where she faces a maximum sentence of up to 20 years in prison.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office, and Special Agent in Charge Amaleka McCall-Brathwaite, SBA Office of Inspector General (SBA OIG), Investigations Division’s Eastern Region, announced the guilty pleas.

The FBI’s Miami Area Corruption Task Force, which includes task force officers from MPD’s Internal Affairs Section, and the SBA-OIG investigated the cases. Assistant U.S. Attorney Edward N. Stamm is prosecuting the cases.

In March 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Among other sources of relief, the CARES Act authorized and provided funding to the SBA to provide Economic Injury Disaster Loans (“EIDLs”) to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred.  EIDL applications were submitted directly to the SBA via the SBA’s on-line application website, and the applications were processed and the loans funded for qualifying applicants directly by the SBA.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. For more information on the department’s response to the pandemic, please click https://www.justice.gov/coronavirus. 

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.  

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MIAMI - On March 6, Daniel Navarro, 50, of Miami Lakes, Florida, the former Vice President of, Sofly Aviation Services (Sofly), an aviation parts distribution company, and Jorge Guerrero, 71, of Hialeah, Florida, a Procurement & Asset Management Specialist for Sofly, both pled guilty to one count of conspiracy to defraud the United States. 

 “The prosecutors in our office, alongside our Department of Defense and Department of Transportation partners, are committed to protecting foreign and domestic airlines from people peddling aircraft parts that they falsely and dangerously claim to be airworthy,” stated U.S. Attorney Markenzy Lapointe for the Southern District of Florida.  “Everyone must comply with established regulations in order to protect travelers and preserve aviation safety.”

According to court records, beginning in 2012 and continuing into 2019, Navarro and Guerrero purchased “as removed” aircraft parts and resold them using certificates that falsely claimed the parts to be airworthy under the regulations of the Federal Aviation Administration (FAA) and the European Union Aviation Safety Agency (EASA). The fraudulent approval tags represented those “as removed” parts to be overhauled, tested/inspected or repaired, which misled their buyers into believing them to be airworthy. Most often, Navarro and Guerrero would use an FAA approved repair station’s FAA certificate number to falsely certify the part to have been overhauled, tested/inspected or repaired by that repair station, when in fact they never were. According to the court documents, those parts were sold to Canadian airlines and a U.S. Department of Defense contractor.

“Falsifying the airworthiness of aircraft parts poses a significant danger to the public and our service members,” said Special Agent-in-Charge Darrin K. Jones, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “These guilty pleas demonstrate our commitment to root out corruption and bringing to justice those who compromise the safety and readiness of aircraft for personal gain.”

“The guilty pleas in this investigation should send a clear signal that nefarious schemes that comprise the integrity of the aviation industry’s supply chain for commercial and military aircraft will not be tolerated,” said Joseph Harris, Special Agent-in-Charge, U.S. Department of Transportation Office of Inspector General (DOT OIG), Southern Region. “We will continue working with our federal, law enforcement, and prosecutorial partners to disrupt fraudulent activities that adversely impact aviation safety.”

A sentencing hearing is scheduled for Navarro and Guerrero on May 23 before U.S. District Judge Federico A. Moreno. Navarro and Guerrero each face a maximum term of imprisonment of five years, followed by a term of supervised release of up to three years, for the offense of conviction. The court may also impose a fine of up to $250,000 and must order restitution. As part of the plea agreement, Navarro and Guerrero agreed to voluntarily forfeit any property acquired as a result of the offense. The judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

DOT OIG conducted this investigation jointly with DCIS and with assistance from the FAA.

Assistant U.S. Attorney Zachary Keller is prosecuting the case. Assistant U.S. Attorney Sara Klco is handling asset forfeiture.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under Case No. 23-CR-20416.

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MIAMI – On March 8, a federal trial jury in Miami found Xavier Latrell Smith, 34, and Jayla Denice Welch, 22, both of Texas, guilty of carrying out a sex trafficking conspiracy involving a minor victim.

Smith and Welch were convicted of conspiracy to commit sex trafficking, sex trafficking of a minor, transporting a minor to engage in sexual activity, and coercion and enticement of a minor to engage in sexual activity.  In addition, Smith was convicted of two counts of commission of a sex offense by a registered sex offender.

During the five-day trial, the government put on evidence that showed Smith, a registered sex offender, and Welch lured the minor victim to engage in sexual acts with false promises of a better life.  Smith and Welch then posted commercial sex ads of the minor victim online as they travelled with the victim from Texas to Louisiana to Florida, where she was trafficked and engaged in prostitution.  Smith and Welch collected the money the victim received from the unlawful sexual acts.

Based on the evidence presented, the minor victim was rescued from a hotel room reserved and paid for by Smith and occupied by Welch and the minor victim. During the course of the investigation, Smith’s cellular device rang when agents called the TextNow number associated with the minor victim’s commercial sex ads. After the minor victim was rescued, law enforcement reviewed Smith and Welch’s phones and recovered records of them photographing, posting and maintaining the commercial sex ads of the minor victim in six different cities. Welch and Smith both paid for and reserved hotel rooms that the minor victim used for the illegal sexual activity with the commercial sex customers.

Smith and Welch are scheduled to be sentenced on May 31, before U.S. District Judge Beth Bloom.  Smith faces a maximum penalty of life in prison with a mandatory minimum sentence of 20 years’ imprisonment.  Welch faces a maximum penalty of life in prison with a mandatory minimum sentence of 10 years’ imprisonment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office, and Director Stephanie V. Daniels of the Miami-Dade Police Department (MDPD) made the announcement.

This case was investigated by the FBI’s Child Exploitation and Human Trafficking Task Force, in partnership with MDPD’s Human Trafficking Squad, and the South Florida Human Trafficking Task Force.  Assistant U.S. Attorneys Abbie D. Waxman and Bertila Lilia Fernandez are prosecuting the case. Assistant U.S. Attorney Eloisa Fernandez is handling asset forfeiture.

To report suspected human trafficking or to obtain resources for victims, please call 1-888-373-7888; text “BeFree” (233733), or live chat at HumanTraffickingHotline.org.  The toll-free phone, SMS text lines, and online chat function are available 24 hours a day, 7 days a week, 365 days a year.  Help is available in English, Spanish, Creole, or in more than 200 additional languages.  The National Hotline is not managed by law enforcement, immigration or an investigative agency. Correspondence with the National Hotline is confidential and you may request assistance or report a tip anonymously. To learn more about the hotline, visit www.humantraffickinghotline.org. 

To learn more about the U.S. Department of Justice’s efforts to combat human trafficking visit www.justice.gov/humantrafficking.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-cr-20122.

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Defendant Allegedly Hid Millions in Unreported Assets in Series of Swiss Bank Accounts

MIAMI – A federal criminal complaint was unsealed today in the Southern District of Florida charging a Florida man with conspiring to defraud the United States by hiding income and assets offshore and with making a false statement to the IRS.

According to the allegations contained in the complaint,[1] between 1985 and 2020, Dan Rotta hid more than $20 million in assets in at least two dozen secret bank accounts at five different Swiss banks, including UBS and Credit Suisse. Over the years, Rotta allegedly earned substantial income from these assets that he did not report on his tax returns.

Starting in 2008, after it was reported publicly that UBS and its bankers were under criminal investigation for helping U.S. taxpayers evade their taxes, Rotta allegedly took steps to continue concealing his offshore assets, including by closing his UBS account and moving the funds to Credit Suisse and another Swiss bank, and then later transferring the funds into Swiss bank accounts in the name of nominees.

In 2011, the IRS allegedly began auditing Rotta after it obtained evidence that he had unreported foreign financial accounts. Allegedly, Rotta falsely denied that he had any such accounts. During the audit, the IRS allegedly obtained evidence showing Rotta received transfers of hundreds of thousands of dollars from these foreign accounts that he did not report on his tax returns. Rotta allegedly claimed that these transfers were non-taxable loans from third parties and caused his representative to present the IRS with sham loan documents to corroborate his claims. As part of the scheme, Rotta allegedly enlisted his friend and cousin, Co-Conspirator 1, a native and resident of Brazil, to claim to the IRS that he either made or facilitated the fake loans.

The IRS allegedly did not believe Rotta and assessed additional taxes as well as penalties and interest against him. Rotta allegedly then caused a petition in U.S. Tax Court to be filed that sought a redetermination of the IRS’s assessments. In that petition, Rotta, through his attorney, allegedly falsely denied having any foreign accounts and attached the fictitious loan documents. Furthermore, Rotta allegedly caused Co-Conspirator 1 to travel to the United States and retell the false loan story to IRS attorneys. In 2017, after Rotta allegedly presented evidence showing that the purported loans had been repaid, the IRS reversed the deficiencies and agreed that Rotta owed no additional tax. Unbeknownst to the IRS, however, the funds that Rotta purportedly repaid to the third parties allegedly went into accounts that he controlled.

In 2019, after he allegedly became aware that the IRS would receive copies of his Swiss bank records, Rotta attempted to participate in the IRS’s voluntary disclosure practice. Under that practice, taxpayers who willfully do not comply with their tax and reporting obligations can make timely, accurate and complete disclosures of their conduct, which may be a way to resolve their non-compliance and limit their criminal exposure. In his submission, which was signed under penalties of perjury, Rotta allegedly made several false statements.

Rotta was arrested on March 9 and made his initial court appearance today before U.S. Magistrate Judge Jared M. Strauss of the U.S. District Court for the Southern District of Florida. If convicted, Rotta faces a maximum penalty of five years in prison for the conspiracy charge and five years in prison for the false statement charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.

The International Tax and Financial Crimes group of IRS Criminal Investigation is investigating the case.

Assistant U.S. Attorney Michael Homer for the Southern District of Florida, and Senior Litigation Counsels Sean Beaty and Mark Daly and Trial Attorneys Patrick Elwell and William Montague of the Justice Department’s Tax Division are prosecuting the case.

A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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[1] As the introductory phrase signifies, the entirety of the text of the complaint and the description of the complaint set forth herein constitute only allegations. Every fact described should be treated as an allegation.

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MIAMI — On March 7, Andre Lorquet, 39, of Miami, Florida was sentenced to 71 months in federal prison for fraudulently obtaining COVID-19 relief loans and grants under the Paycheck Protection Program (PPP), the Economic Injury Disaster Relief Program (EIDL), and the Shuttered Venue Operator Grant (SVOG).

According to a court records, Lorquet submitted fraudulent applications, seeking more than $4.7 million in COVID-relief funds. In the COVID-relief applications, Lorquet falsified his revenue and payroll and submitted fraudulent IRS tax forms.

Lorquet received approximately $4.4 million in COVID-relief funds from the fraudulent scheme. Lorquet used the fraudulently obtained proceeds to purchase, among other things, two Tesla S models, a Lamborghini Urus, a Porsche Panamera GTS, a diamond Audemars Piguet watch, a rose gold and diamond pendant with his company’s logo, a half-kilogram gold chain with 70 carats of diamonds, and a 1-kilogram gold chain.

Lorquet pled guilty to money laundering.  He was sentenced by U.S. District Judge Michael K. Moore.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami, made the announcement.

HSI investigated the case.  Assistant U.S. Attorney Jonathan Bailyn prosecuted it, and Assistant United States Attorney G. Raemy Charest-Turken handled asset forfeiture. 

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov. under case no. 22-cr-20326.  

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MIAMI – On March 7, Samantha Yi, 32, and Darnell Mendez, 31, of Lake Worth, had their initial appearance before a U.S. Magistrate Judge in West Palm Beach on a criminal complaint charging Yi and Mendez with conspiracy to distribute fentanyl, and Yi with distribution of fentanyl resulting in death. Their arrests followed a long-term joint investigation by the Boynton Beach Police Department (BBPD), the Palm Beach County Sheriff’s Office (PBSO), and the Drug Enforcement Administration (DEA) after the death of a 10-month-old infant in Boynton Beach who ingested fentanyl.

According to allegations in the criminal complaint, on March 31, 2022, PBSO responded to a 911 call of an infant in distress. The infant was transported to Bethesda Hospital East in Boynton Beach, Florida with her mother. On April 1, 2022, the baby was transferred to Joe DiMaggio Children’s Hospital in Hollywood, Florida. On April 5, 2022, the baby died. An autopsy conducted by the Palm Beach County Medical Examiner determined that the baby’s death was caused by fentanyl intoxication and that her manner of death was homicide. 

The BBPD conducted a homicide investigation during which law enforcement recovered fentanyl at the baby’s home. Investigation determined that the baby’s mother and father were addicts and had been abusing fentanyl regularly in the kitchen of their apartment. The investigation also determined that the baby was teething and ingested fentanyl on March 31, 2022, while in the care of her mother, and while her father was at work. The mother was arrested by the BBPD and charged with aggravated manslaughter of a child by culpable negligence.

DEA joined the investigation to identify the drug dealers that were responsible for the distribution of the fentanyl that killed the baby. Through data and information retrieved from the mother’s cellphone, law enforcement was able to identify YI as the drug dealer. The investigation uncovered months of electronic communications exchanged between YI and the mother involving drug transactions in which the mother was the customer. The investigation further determined that Yi’s boyfriend, Mendez was also involved in the distribution of fentanyl. As contained in the criminal complaint, Mendez has a history of controlled substance and violent crime offenses and may qualify as a career criminal. Investigators were able to determine that on March 30, 2022, the mother met with Yi in Boynton Beach, Florida to purchase fentanyl, and that fentanyl was ingested by the baby resulting in her death.

As part of the joint investigation, DEA, the BBPD, and PBSO conducted an operation involving two undercover officers who purchased fentanyl from Yi and Mendez. The undercover operation culminated in the arrests of Yi and Mendez on March 6, 2024, at their residence in Lake Worth, Florida.

In court, on March 7, 2024, the United States sought the pretrial detention of both YI and Mendez. The United States informed the Court that the couple is believed to be a risk of flight and danger to the community based upon the offenses described in the criminal complaint. Furthermore, the United States informed the Court that the couple was found in possession of 14 firearms in their home when they were arrested. Both Yi and Mendez are convicted felons.

Detention hearings are scheduled for Yi on March 12 and Mendez on March 14, respectively.   The arraignment and preliminary hearings are scheduled for March 21.

If convicted of the offenses charged in the criminal complaint, Yi faces a mandatory minimum prison sentence of 20 years to a maximum sentence of life. Mendez faces a maximum sentence of 20 years in prison.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Deanne L. Reuter of DEA, Chief Joe DeGiulio of BBPD, and Sheriff Ric Bradshaw of PBSO, announced the arrest and charges.

The Office of State Attorney Dave Aronberg for the 15th Judicial Circuit – Palm Beach County provided invaluable assistance. Assistant U.S. Attorneys Adam McMichael and Shannon O’Shea Darsch are prosecuting the case.

A criminal complaint contains allegations, and all defendants are presumed innocent unless and until proven guilty in a court of law.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 24-cr-80041. 

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MIAMI – While on bond in an aggravated identity theft matter, Manley Vanel Neptune, 33, of Lake Worth, was charged in a second federal case with participating in a conspiracy to obtain over $2.1 million dollars by depositing a stolen U.S. Treasury check into a fraudulent bank account.

According to allegations in the initial complaint, on Feb. 2, Neptune attempted to open a fraudulent account at a First Horizon Bank in Lighthouse Point, Florida, by presenting a counterfeit U.S. passport card in the name of “W.H.” (Case No. 24-mj-6052).  Neptune was arrested by law enforcement. On Feb. 15, Neptune was indicted for using a counterfeit passport and aggravated identify theft (Case No. 24-cr-60028).   Neptune was released on bond.

Neptune was then charged in a second complaint when further investigation revealed that on Feb. 1, Neptune successfully opened a fraudulent account at a Truist Bank in Pompano Beach, Florida by using the same counterfeit U.S. passport card, in the name of “W.H.,” that Neptune used at First Horizon Bank the following day. On Feb. 20, while on bond, Neptune caused two female co-conspirators to deposit, into the fraudulent account at Truist Bank, a stolen U.S. Treasury check in the amount of $2,172,687.18 that was issued to “W.G.H.” The second criminal complaint (Case No. 24-mj-6093) charges Neptune with participating in the bank fraud conspiracy.

On March 7, Neptune had his initial appearance in federal court in Case No. 24-mj-6093. The parties stipulated to pretrial detention with the right to revisit. An arraignment hearing is scheduled for March 21.

If convicted of the bank fraud conspiracy, Neptune faces up to 30 years in federal prison.  If convicted of using a fraudulent U.S. passport, Neptune faces up to 10 years in federal prison.  If convicted of aggravated identity theft, Neptune faces a mandatory minimum term of 2 years in federal prison to run consecutive to any other sentence imposed.  A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines along with other mitigating, aggravating, and statutory factors.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami, made the announcement.

HSI Ft. Lauderdale investigated the case. Assistant U.S. Attorney Joseph A. Cooley is prosecuting it. 

An indictment and complaint contain mere allegations, and all defendants are presumed innocent unless and until proven guilty in a court of law.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case numbers 24-mj-6039 and 24-cr-60028. 

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MIAMI – On March 7, Ciro Alfonso Gutierrez Ballesteros, 32, made his initial appearance in federal court in Miami. Gutierrez Ballesteros was extradited from Colombia to the United States to face federal charges lodged against him in a federal indictment returned in 2022 by a Miami federal grand jury.  Gutierrez Ballesteros was indicted for charges that include conspiring to murder members of the United States Uniformed Services and attempted murder of members of the United States Uniformed Services.

According to the indictment, Gutierrez Ballesteros, in concert with other co-conspirators, planned a bombing attack against U.S. Army soldiers present at the Colombian 30th Army Brigade Base in Cucuta, Colombia.  Co-conspirator Andres Fernando Medina Rodriguez used his status as a medically discharged Colombian Army Officer to gain access to the base where he conducted surveillance.  As part of the surveillance, Medina Rodriguez took photographs and video of the areas where the U.S. Army soldiers were primarily located.

Gutierrez Ballesteros instructed Medina Rodriguez to find and purchase a vehicle suitable for conducting a vehicle borne improvised explosive device (“VBIED”) attack at the base.  Medina Rodriguez purchased a white SUV and Medina Rodriguez and Gutierrez Ballesteros then drove the vehicle to Venezuela where it was outfitted with the explosives.

On June 15, 2021, Medina Rodriguez drove the vehicle with the VBIED to the 30th Army Brigade Base in Cucuta, Colombia, where he parked it in front of the location where U.S. and Colombian military personnel were located. Gutierrez Ballesteros, riding a motorcycle, followed Medina Rodriguez to the Colombian military base.  Medina Rodriguez pulled the detonation pin on the explosive and left the area on foot before fleeing on the motorcycle driven by Gutierrez Ballesteros.  As a result of the detonated VBIED, three U.S. Army soldiers were injured. 

U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of the FBI’s Miami Field Office announced the extradition of Gutierrez Ballesteros.

The FBI investigated the case.  The FBI was assisted by the FBI Legal Attaché in Bogotá, the Fiscalía General de la Nación Colombia, and the National Police of Colombia. Assistant U.S. Attorney Randy A. Hummel, Assistant U.S. Attorney Andy R. Camacho, and the Justice Department’s National Security Division Trial Attorneys David C. Smith and Michael Dittoe are prosecuting the case.

The Justice Department’s Office of International Affairs and the Narcotic and Dangerous Drug Section’s Office of the Judicial Attaché at the U.S. Embassy in Bogotá worked with Colombian authorities to secure the arrest and extradition of Gutierrez Ballesteros.

An indictment contains mere allegations, and all defendants are presumed innocent unless and until proven guilty in a court of law.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-20054.

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MIAMI – Melanie Harris, 59 of Riverside, California, pled guilty to knowingly and intentionally transmitting a threatening communication in interstate commerce.  Harris, who has been in custody since July 20, 2023, entered her guilty plea before U.S. Magistrate Judge Jared M. Strauss on March 4.  Harris remains in custody and is scheduled for sentencing on May 23 before U.S. District Judge Roy K. Altman in Miami, where she faces a maximum sentence of five years in prison.

According to the facts admitted at the change of plea, on October 3, 2022, Harris made multiple calls to Victim 1’s cell phone, and left four separate threatening voicemails, with the intent to communicate a true threat and with the knowledge that the communications would be seen as true threats.  In one of these four October 3 voicemails, Harris stated in relevant part: “I’ll cut your f------ head off kiker.”  The term “kike” has long been used as an anti-Semitic slur aimed at Jews.

Neither Victim 1 nor his wife, Victim 2, knew the identity of the person (Harris) calling Victim 1 with these threatening and harassing calls and voicemails.  Nor did they know where the calls were coming from because Harris concealed her phone number using the *67 feature.  However, all of these calls originated from the Riverside, California area, where Harris lived at the time, and were received by Victim 1’s phone in the Southern District of Florida.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office, announced the guilty plea. 

The FBI's Miami Area Corruption Task Force, which also investigates civil rights violations, investigated the case. Assistant U.S. Attorneys Edward N. Stamm and Nardia Haye are prosecuting the case, which was indicted by Executive Assistant U.S. Attorney Harry C. Wallace, Jr.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-60050. 

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MIAMI – Two large tents, a dozen plastic tables, and staff members eager to serve recently lined an area in front of Wells Recreation Center in Riviera Beach, Fla. The goal? To feed 500 families. And it’s a goal the U.S. Attorney’s Office (USAO) for the Southern District of Florida meets each week.

It’s a partnership between Law Enforcement Coordination and Community Outreach Section (LEC/COS) staff, local police, parks and recreation, and Farm Share Inc., which provides the bread, canned goods, pasta, and poultry. Each Tuesday beginning at 9 a.m. all over the USAO footprint, these partners work to put food on the tables of those in need.

“The collaboration makes these distributions successful,” said LEC/COS Chief J.D. Smith. “And the parks/recreation centers provide a perfect backdrop. They are community staples, well known, with great access for local residents.”

Those who attend a food distribution can receive upward of 40 pounds of free food items depending on household size. And their appreciation shows at each food distribution.

“Bless you and thank you all for doing what you do,” said a grateful Riviera Beach resident. “We appreciate you.”

The positive feedback goes a long way with LEC/COS staff, reminding them how important these events are to the community.

“It feels good to know that we’re making a difference in so many peoples’ lives,” said Community Outreach Specialist Corey Mackay. “These food distributions are something I look forward to. I enjoy interacting with members of our community.”

The food drives alternate between parks in Riviera Beach and Fort Lauderdale to ones in several Miami locations. 

“We try to organize these food distributions in areas that have the most food insecurity,” said Smith. “We’ve been doing these for years and the demand has remained consistent. We’re honored to be able to host these events. Community service is what drives our unit. There is nothing more important.”

Anyone interested in volunteering at a food drive may call the USAO Violence Reduction Partnership at (305) 961-9134. People interested in attending a food distribution may visit Farm Share’s website at https://www.farmshare.org/food-distributions-florida or call (305) 246-3276.

Staff and volunteers from the Law Enforcement Coordination and Community Outreach Section of the U.S. Attorney’s Office serve community members in Riviera Beach during a recent food distribution event. Staff hold these food distributions weekly, serving approximately 500 households.  

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MIAMI – On March 5, a former Army lieutenant colonel was sentenced to 42 months in federal prison, followed by 15 years of supervised release for possession of child pornography, after pleading guilty in December 2023.

On March 10, 2021, law enforcement officers executed a residential search warrant at home of Edgar Ali Cerda, 49, of Cooper City. An examination of Cerda’s electronic devices revealed multiple images and videos depicting sexual exploitation of children under 12 years of age, with one victim as young as two years old. Evidence also revealed that Cerda shared images within a group chat. Law enforcement officers arrested Cerda, who was home at the time.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office, and Sheriff Gregory Tony of the Broward Sheriff’s Office (BSO) announced the sentence imposed by U.S. District Judge Rodney Smith.

FBI Miami and BSO investigated the case with assistance from the Florida Department of Law Enforcement (FDLE), Fort Lauderdale Police Department, and Homeland Security Investigations (HSI). Assistant U.S. Attorney Ajay J. Alexander prosecuted the case.

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

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-60115.

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MIAMI – On March 5, a federal jury in Fort Lauderdale convicted a Broward Sheriff’s Office (BSO) deputy of two counts of wire fraud for her COVID-19 relief fraud scheme.

In 2021, Stephanie Diane Smith, 53, of Sunrise, Florida, applied for and received two PPP loans for herself as a sole proprietor doing business as Children 1st Basketball Training and Agape Smith Vending, respectively, based upon materially false information about each business’s total amount of gross income for the year 2019, including a falsified IRS tax form submitted with each application. Smith also sought and received forgiveness of both fraudulently obtained PPP loans, which totaled over $31,000 in principal and interest. During the period of the scheme, Smith was employed as a deputy sheriff in BSO’s Department of Law Enforcement.

The sentencing is scheduled for May 29 before U.S. District Judge James I. Cohn.  Smith faces up to 20 years in prison for each wire fraud conviction. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

U.S. Attorney for the Southern District of Florida Markenzy Lapointe; Special Agent in Charge Jeffrey B. Veltri, FBI, Miami Field Office; Special Agent in Charge Brian Tucker, Eastern Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau, and Broward Sheriff Gregory Tony of BSO made the announcement.

FBI Miami, FRB-OIG and BSO investigated this case. Assistant U.S. Attorneys David Snider and Trevor Jones are prosecuting it. Assistant U.S. Attorney Darren Grove is handling asset forfeiture.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud.  The Strike Force combines law enforcement and prosecutorial resources and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors, as well as those who committed multiple instances of pandemic relief fraud. The Strike Force uses prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds. Additional information regarding the Strike Force may be found at https://www.justice.gov/opa/pr/justice-department-announces-covid-19-fraud-strike-force-teams.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-60203.

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MIAMI – A former Venezuelan National Guard major pleaded guilty today to a money laundering scheme involving bribes to foreign officials and defrauding foreign financial institutions.    

According to court documents, Nepmar Jesus Escalona Enriquez, 47, of Fort Lauderdale, Florida, and formerly of Venezuela, participated in an illegal scheme, facilitated by bribery and false pretenses, that involved knowingly submitting fraudulent applications to the Venezuelan currency regulation authority, also known as CADIVI, to deceive Banesco Bank, the Central Bank of Venezuela, and the Venezuelan customs authorities into releasing U.S. dollars to Escalona and his co-conspirators outside of Venezuela. The fraudulent applications were submitted to purportedly finance food imports into Venezuela but in reality, were an artifice to enrich the conspirators. This conduct resulted in the transfer of nearly $1.7 million in U.S. dollars from Banesco Bank into an account controlled by the conspirators.

Escalona further admitted that in at least one instance, the co-conspirators arranged for a series of bribes to be paid to officials in Venezuela to prevent the detection of their fraudulent scheme. Escalona also admitted in another instance to instructing a co-conspirator to wire transfer proceeds of the fraud, as well as funds constituting bribes, to four financial institutions in the United States. The five illicit wire transfers totaled approximately $420,847.

Escalona pleaded guilty to one count of money laundering conspiracy. He is scheduled to be sentenced on May 23 and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, and Special Agent in Charge Deanne L. Reuter of the Drug Enforcement Administration’s (DEA) Miami Field Division made the announcement.

The DEA’s Miami Field Division is investigating the case. 

Assistant U.S. Attorney Andrea Goldbarg for the Southern District of Florida and Trial Attorney Emily Cohen and Deputy Chief Joseph Palazzo of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under Case No. 22-CR-20423.

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A former Venezuelan National Guard major pleaded guilty today to a money laundering scheme involving bribes to foreign officials and defrauding foreign financial institutions.    

According to court documents, Nepmar Jesus Escalona Enriquez, 47, of Fort Lauderdale, Florida, and formerly of Venezuela, participated in an illegal scheme, facilitated by bribery and false pretenses, that involved knowingly submitting fraudulent applications to the Venezuelan currency regulation authority, also known as CADIVI, to deceive Banesco Bank, the Central Bank of Venezuela, and the Venezuelan customs authorities into releasing U.S. dollars to Escalona and his co-conspirators outside of Venezuela. The fraudulent applications were submitted to purportedly finance food imports into Venezuela but in reality, were an artifice to enrich the conspirators. This conduct resulted in the transfer of nearly $1.7 million in U.S. dollars from Banesco Bank into an account controlled by the conspirators.

Escalona further admitted that in at least one instance, the co-conspirators arranged for a series of bribes to be paid to officials in Venezuela to prevent the detection of their fraudulent scheme. Escalona also admitted in another instance to instructing a co-conspirator to wire transfer proceeds of the fraud, as well as funds constituting bribes, to four financial institutions in the United States. The five illicit wire transfers totaled approximately $420,847.

Escalona pleaded guilty to one count of money laundering conspiracy. He is scheduled to be sentenced on May 23 and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Markenzy Lapointe for the Southern District of Florida, and Special Agent in Charge Deanne L. Reuter of the Drug Enforcement Administration’s (DEA) Miami Field Division made the announcement.

The DEA’s Miami Field Division is investigating the case. 

Trial Attorney Emily Cohen and Deputy Chief Joseph Palazzo of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Andrea Goldbarg for the Southern District of Florida are prosecuting the case. 

MIAMI – Students from Bowman Ashe/Doolin K-8 Academy in Miami recently attended a Making Smarter Choices Field Trip at the U.S. Attorney’s Office for the Southern District of Florida. 

Staff from the Law Enforcement Coordination and Community Outreach Section (LEC/COS) provided real-world examples to show students the perils of doing the wrong thing and how easy it can be to stray from the correct path.

Incarcerated inmate testimonial videos focused on lives wasted, regret and the desire for redemption.

“If I could be the good for you then maybe you could be the good for me,” said an inmate doing 25 years to life for the murder of a husband/father. “All I’m asking for is a little redemption.”

Unfortunately for him, time for redemption has passed. And that is what LEC/COS

Chief J.D. Smith stressed to the students. One mistake can change everything.

“Each day you have a choice to make,” said Smith. “Am I going to be a good person or a bad person? It’s a daily decision that is in your hands.”

The field trip is designed to motivate children to work hard, uplift themselves and their communities, and do things about which they feel passion.

“If you’re going to fail, you may as well fail at something you love,” said Smith.

The second part of the field trip consisted of a mock trial whereby students tried a murder case in a federal courtroom. Hands shot up as Smith asked who would like to be defense and prosecution attorneys. Roles also included bailiff, court clerk and jury—in which the majority of students participated. Assistant U.S. Attorney Michele S. Vigilance played the judge role.

The case centered on fraternity hazing that went too far and ended in a student’s death. Each student with a speaking role was provided a script and advised to speak clearly, loudly, and confidently.

“The team that wins will be the one that can step up to the microphone and deliver,” said Smith.

The mock trial challenges students to come out of their shells and play the part. Post field trip evaluation forms from the students routinely sing the praises of the trial, from the roles to the décor and serious nature of the courtroom.

“Many of the students we receive throughout the school year are interested in becoming lawyers,” said Smith. “Our field trip gives them a sense of what it’s like.”

You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.justice.gov/usao-sdfl.

Community Outreach Specialist John Hampton gets sworn in by a Bowman Ashe/Doolin K-8 Academy student prior to testifying during a recent mock trial. This trial was part of the U.S. Attorney’s Office for the Southern District of Florida’s Making Smarter Choices Field Trip.

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MIAMI – A Lee County man pleaded guilty today to federal criminal charges for conspiring to illegally export thousands of turtles to Germany and Hong Kong, and falsifying documents to conceal his conduct. 

John Michael Kreatsoulas, 36, of Alva, Florida, pleaded guilty to one count of conspiracy to traffic wildlife and nine counts of falsifying records in violation of the Lacey Act.

According to the factual proffer in support of the plea and other documents included in the court record, from July 2015 to July 2021, Kreatsoulas was the owner and principal of Omni Reptiles, Inc., an unregistered Florida business located in Alva, Florida. Omni was in the business of domestic and international wholesale trade of wildlife, including protected species of reptiles. Kreatsoulas and Omni shipped wildlife they sold to domestic and foreign customers, including to customers in Germany and Hong Kong through Miami International Airport.

Specifically, Kreatsoulas and his co-conspirators collected and captured various species of turtles, including three-stripe mud turtles and Florida mud turtles, from the wild in Florida and sold those turtles to interstate and foreign customers. Kreatsoulas then falsified U.S Fish and Wildlife Service Forms 3-177, which accompanied the international shipments, by including a false “Source” code attesting that the turtles were captive-bred and not wild-caught. Kreatsoulas also falsified invoices related to the sale of the turtles, which purported to show that the turtles sold to co-conspirators in Florida and outside the United States were “captive-bred” hatchling three-stripe mud turtles when, in fact, they were taken from the wild by Kreatsoulas and his co-conspirators. 

A sentencing hearing is scheduled for May 17 at 1:30 p.m. before U.S. District Judge Rodolfo A. Ruiz II.  Kreatsoulas faces up to five years in federal prison for each count of conviction.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Assistant Attorney General for the Environment and Natural Resources Division Todd Kim of the Justice Department’s Environment and Natural Resources Division and Special Agent in Charge Douglas Ault of the U.S. Fish & Wildlife Service (FWS), Southeast Region, made the announcement. 

FWS agents in Miami investigated this matter.  Assistant U.S. Attorney Thomas Watts-FitzGerald for the Southern District of Florida and Senior Trial Attorney Gary N. Donner of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division are prosecuting this case.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-20480.

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MIAMI – On Feb. 23, Patrick Smith, 71, of Palm Beach Gardens, Florida, the former CEO and President of Patient Care America (PCA), a compounding pharmacy located in Broward County, was sentenced to 6 months in prison for lying to federal agents who were investigating PCA for various health care fraud offenses.

According to court records, in March of 2020 Smith voluntarily met with DCIS agents who were investigating PCA on allegations of health care fraud and payment of kickbacks to marketing groups that solicited TRICARE beneficiaries on behalf of PCA. TRICARE is the health care benefit program for United States military members and their families. During that interview, Smith lied to agents about his role in the scheme. Smith falsely claimed, for example, that he played no role in hiring the marketing groups and that he didn’t know they were directly soliciting TRICARE beneficiaries.

In all, PCA paid over $40 million in kickbacks to the marketers for recruiting and referring TRICARE beneficiary prescriptions for expensive, unnecessary compounded medications to PCA. To date, over a dozen of PCA’s marketers and employees have been convicted and sentenced for their roles in the scheme. The government has recovered more than $30 million in fraud proceeds from PCA and the individual defendants.

Smith was sentenced by U.S. District Judge Roy K. Altman.  Smith pled guilty, on July 21, 2023, to making a materially false statement in a matter within the jurisdiction of the United States Department of Defense.

U.S. Attorney Markenzy Lapointe of the Southern District of Florida, Special Agent in Charge Darrin K. Jones of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office, and Special Agent in Charge Justin C. Fielder of the U.S. Food and Drug Administration, Office of Criminal Investigations (FDA-OCI), Miami Field Office, made the announcement.

DCIS and FDA-OCI investigated this case. Assistant U.S. Attorney Jon Juenger prosecuted this case. DCIS, FDA-OCI, the U.S. Department of Veterans Affairs Office of Inspector General (VA-OIG), and the FBI investigated related cases.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-20532.

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MIAMI - Kamarcio Mitchell, 28, of West Palm Beach, was indicted by a federal grand jury for unlawfully possessing a firearm and ammunition as a convicted felon. The indictment follows Mitchell’s arrest, on Feb. 16, pursuant to a joint response by local, state, and federal law enforcement partners to a shooting that occurred at the Palm Beach Gardens Mall (The Gardens Mall) on Valentine’s Day.

According to allegations in the criminal complaint and the charges set forth in the indictment, on Feb. 14, Mitchell was at The Gardens Mall with a firearm. Surveillance video captured Mitchell on the second level of The Gardens Mall near a retail store. Mitchell followed another male onto the escalator and was manipulating an object under his shirt. Mitchell was then fired upon by the other male and shot. Mitchell fled the mall to the parking lot, leaving a trail of blood. A loaded firearm that had been disassembled was found in the parking lot by police, near the blood trail. Mitchell was later treated for his injury at a local hospital where he admitted to being shot. The investigation by law enforcement determined that the firearm found in The Gardens Mall parking lot was a loaded handgun that had previously travelled in interstate commerce.

Mitchell is a convicted felon and based upon his prior criminal history is charged as an Armed Career Criminal.  If convicted, Mitchell faces a mandatory minimum prison sentence of 15 years to a maximum sentence of life.

Mitchell has stipulated to pretrial detention, pending the possibility of a future hearing to determine bond. An arraignment hearing is scheduled for March 5.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office, Special Agent in Charge Christopher A. Robinson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Division, U.S. Marshal Gadyaces S. Serralta of the U.S. Marshals Service, Chief Clinton Shannon of the Palm Beach Gardens Police Department, and Sheriff Ric Bradshaw of the Palm Beach County Sheriff’s Office announced the indictment.

The Office of State Attorney Dave Aronberg for the 15th Judicial Circuit – Palm Beach County provided invaluable assistance. Assistant United States Attorneys John McMillan and Shannon O’Shea Darsch are prosecuting the case.

This prosecution is a part of the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) program.  PSN is the centerpiece of the Department’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through the PSN program a broad spectrum of law enforcement and community 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 to reduce violence crime and gun violence, and to make our local neighborhoods safer for everyone.

A criminal complaint and indictment contain allegations, and all defendants are presumed innocent unless and until proven guilty in a court of law.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 24-80022-AMC.

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MIAMI – On Feb. 26, Elieser Sori-Rodriguez, 51, of Pompano Beach, was sentenced to 57 months in federal prison, by U.S. District Judge Robin L. Rosenberg, for smuggling firearms from the United States to the Dominican Republic.

Sori-Rodriguez conspired to purchase firearms by means of a false statement and smuggle them out of the United States by directing co-conspirators to purchase firearms on his behalf, hiding the firearms inside boxes marked as household goods, and sending the firearms to the Dominican Republic using a freight shipping service. Co-defendants John Thomas Neal, Shane Sepersaude, and William Ilijic assisted Sori-Rodriguez in the conspiracy.

On Nov. 30, Sori-Rodriguez pled guilty to conspiracy to purchase firearms by means of false statement, three counts of purchase of firearms by means of false statement, smuggling firearms from the United States, and delivery of a firearm to a common carrier without written notification. Neal, Sepersaude, and Ilijic previously pled guilty to purchasing a firearm by means of a false statement and were sentenced.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami, and Special Agent in Charge Christopher A. Robinson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Office, made the announcement. 

HSI Fort Pierce and ATF investigated this matter. Assistant U.S. Attorney Christopher Hudock prosecuted the case.

This prosecution is a part of the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) program.  PSN is the centerpiece of the Department’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through the PSN program a broad spectrum of law enforcement and community 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 to reduce violence crime and gun violence, and to make our local neighborhoods safer for everyone.

You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.justice.gov/usao-sdfl.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-14016.

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MIAMI – On Feb. 22, Jack Connor Ridall, 29, of Miami, was sentenced to 30 months in prison, by U.S. District Judge Donald M. Middlebrooks, for operating an investment fraud scheme.

Ridall defrauded victims out of approximately $735,000, by falsely indicating he would use their money for various investments. Ridall was the founder and sole member of Stratcapital LLC, Guss Capital, LLC, and Guss Actium Manager, LLC. Using these three companies, Ridall succeeded in causing at least three people to provide him money based on his material misrepresentations. The false statements Ridall made to these victims included (a) Ridall’s investing experience and performance, (b) the use of investor funds for purposes other than those that he promised, and (c) the safety of the investment. Ridall also falsely told his victims, among other things, that his companies were investment management companies with substantial assets. Ridall did not invest investor funds in securities or in an investment fund, but instead he misappropriated investor funds to pay for luxury retail purchases, hotel stays, restaurants, and fraudulent transfers to family members. When victims asked Ridall for updates on their investments, he provided forged attorney letters and audit reports indicating that the victims' investments yielded high rates of return.

In Nov. 2023, Ridall pled guilty to one count of wire fraud.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office made the announcement. 

FBI Miami investigated the case. The Securities and Exchange Commission provided invaluable assistance. Assistant U.S. Attorney Roger Cruz prosecuted the case. Assistant U.S. Attorney Marx Calderon is handling asset forfeiture. 

You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.justice.gov/usao-sdfl.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-20152.

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MIAMI – On Feb. 16, a Miami federal jury convicted a local physical therapist assistant of conspiracy to commit health care fraud and wire fraud, and five counts of health care fraud after a week-long trial.

From May 2019 through February 2021, Tania Cesar, 55, of Hialeah, Florida, worked as a physical therapist assistant at Elite Therapy Group Inc. (Elite) in Miami, Florida. During this period, Cesar signed over 1,500 physical therapy notes for physical therapy treatments that she never provided to patients. Cesar’s false and fraudulent therapy notes led to over $2.6 million in claims billed to Blue Cross Blue Shield (BCBS). Several co-conspirators testified, including the owners of Elite, describing the payment agreement between Elite and Cesar. Cesar would come into the therapy clinic once or twice a week to sign the therapy notes but never treated patients. Some of Elite’s patients also testified, explaining that they had never received physical therapy treatment, nor they had ever met Cesar. Furthermore, Cesar signed false and fraudulent therapy notes for treatments she purportedly performed on dates when airline and U.S. Customs and Border Protection (CBP) records confirmed that she was out of the country.

In addition, Cesar was working full-time at another physical therapy clinic in Miami, where Cesar logged hours that, when added up with the hours for purported physical therapy she signed for in fraudulent therapy notes from Elite, suggested that she was working more than 24 hours on multiple days.  

Moreover, Cesar had the same financial relationship with another clinic, Zion Medical (Zion), before she began signing false and fraudulent therapy notes at Elite. The owner of Zion testified that he and Cesar had the same agreement that Cesar had with the owners of Elite, Cesar would sign false and fraudulent therapy notes for treatments she never performed. These false and fraudulent therapy notes were also billed to BCBS as part of the scheme.

Sentencing is set for May 6 before U.S. District Senior Judge Robert N. Scola Jr. 

U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office made the announcement. 

FBI Miami investigated the case. Assistant U.S. Attorneys Joseph Egozi and Lindsey Lazopoulos Friedman are prosecuting it. Assistant U.S. Attorney Mitchell Hyman is handling asset forfeiture. 

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-20259.

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MIAMI – On Feb. 22, following a two-day trial, a federal jury in Ft. Lauderdale convicted a man for calling the office of a Congress member in Washington, D.C. and threatening to kill the member of Congress and another. 

On Jan. 29, 2023, Frank Stanzione, 53, of Boynton Beach, Florida, made a telephone call from his residence in Boynton Beach to the office of a member of the United States House of Representatives. Stanzione left a voice message for the member that stated the following:

[Victim 1] you fat f------ piece of s--- f-----. You better watch your mother f------ back because I’m gonna bash your mother f------ f----- head in with a bat until your brains are splattered across the f------ wall. You lying, disgusting, disgraceful, mother f------ f-----. You mother f------ piece of s---. You’re gonna get f------ murdered you goddamn lying piece of garbage. Watch your back you fat, ugly, piece of s---. You and [Victim 2] are dead.

The Congress member’s chief of staff reported the message to the United States Capitol Police (USCP) the next morning. The USCP began investigating the voice message as a threat and determined that it was made from a telephone number assigned to Stanzione. 

On Jan. 31, 2023, USCP special agents went to the address associated with the telephone number and interviewed Stanzione. USCP confirmed that Stanzione had left the voice message for the Congress member. Stanzione found the telephone number on an online search engine. 

U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Chief J. Thomas Manger of USCP announced the guilty verdict. 

USCP – Threat Assessment Section investigated the case. Assistant U.S. Attorney Mark Dispoto and Special Assistant U.S. Attorney Joe Wheeler are prosecuting it.  

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-80064.

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MIAMI – On Feb. 21, a man was arrested after a federal grand jury returned an indictment charging him with multiple counts of bank fraud and aggravated identity theft.

According to allegations in the indictment and statements made in court, from April 2022 through March 2023, Latron Earl Williams, 24, of Miami, Florida, fraudulently obtained personable identifiable information (PII) of various bank account holders, as well as addresses, debit card numbers, and bank account numbers. Williams used the fraudulently obtained information to pose as the account holders, fraudulently accessed their bank accounts, and caused more than $2 million in wire transfers from the bank accounts of approximately 50 victims nationwide into bank accounts he controlled. Then, Williams arranged for accomplices to withdraw the fraudulently obtained funds to conceal his involvement in the fraud.

If convicted, Williams faces up to 30 years in prison on each count of bank fraud, and a mandatory minimum penalty of two years in prison for aggravated identity theft consecutive to any bank fraud sentence. U.S. District Judge Roy K. Altman will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jason Scalzo of the Federal Deposit Insurance Corporation, Office of Inspector General (FDIC-OIG), Electronic Crimes Unit, and Special Agent in Charge Rafael Barros of the United States Secret Service (USSS), Miami Field Office made the announcement.

FDIC-OIG, Electronic Crimes Unit and USSS, Miami Field Office investigated the case. Assistant U.S. Attorney Michael B. Homer is prosecuting it.

An indictment contains mere allegations, and all defendants are presumed innocent unless and until proven guilty in a court of law.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 24-cr-20009.

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MIAMI – From the outset of Russia’s unprovoked, full-scale invasion of Ukraine on Feb. 24, 2022, the Department of Justice has prioritized enforcing the sweeping sanctions, export restrictions, and economic countermeasures that the United States has imposed alongside our global partners. The Department continues that work through significant enforcement actions.  Today, the Department announced an array of new charges, arrests, and forfeiture proceedings, to include a civil forfeiture complaint that was filed in the Southern District of Florida.

“The Justice Department is more committed than ever to cutting off the flow of illegal funds that are fueling Putin’s war and to holding accountable those who continue to enable it,” said Attorney General Merrick B. Garland. “That is why today we are announcing several additional enforcement actions that the Justice Department has taken to bring prosecutions against and seize assets of sanctioned enablers of the Kremlin and Russian military.”

“It has been two years since Russia’s unprovoked invasion of Ukraine and the FBI continues to go after the Russian criminals who finance and enable Russia’s war,” said FBI Director Christopher Wray. “To the people of Ukraine fighting for their freedom: The FBI remains steadfast in our efforts to disrupt and hold accountable the criminals supporting the Russian War, and we will continue to stand with you to fend off Russian aggression for as long as it takes.”

Today, the United States filed a civil forfeiture complaint in the U.S. District Court for the Southern District of Florida, alleging that two Bal Harbour condominiums are subject to forfeiture based on violations of the International Emergency Economic Powers Act (“IEEPA”), Office of Foreign Assets Control (“OFAC”) sanctions, and federal money laundering statutes.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of the FBI’s Miami Field Office made the announcement.

As alleged in the complaint, Viktor Perevalov and Valeri Abramov were co-founders of VAD, AO, a Russia-based construction company responsible for constructing the Tavrida Highway in the Russian-occupied Crimea Region of Ukraine. On January 26, 2018, pursuant to Executive Order 13685, OFAC sanctioned Victor Perevalov, Valeri Abramov, VAD, AO, and others following the Russian invasion of Crimea (the “Sanctions”). OFAC added Perevalov, Abramov, and VAD, AO to the specially designated nationals and blocked persons (“SDN”) List. Once OFAC imposed the Sanctions, all property or interest in property belonging to Perevalov, Abramov, and/or VAD, AO in the United States, “[was] blocked and [could] not be transferred, paid, exported, withdrawn, or otherwise dealt in[.]” E.O. 13685 § 2(a).  OFAC never issued a license which was required for anyone to transact with, or on behalf of, Perevalov and Abramov. 

Soon after the Sanctions, R.S., a Miami real estate agent retained to manage the properties, worked to transfer the two condominiums owned by Perevalov, Units 1616 and 1617 located at 10295 Collins Avenue, Bal Harbour, Florida 33154 (the “Defendant Properties”) to an LLC in violation of the Sanctions. The Defendant Properties have a combined value of approximately $2.5 million. On April 10, 2018, R.S. and others, including a law firm, formed 1616 Collins LLC, and named R.P., a Perevalov family member who was a minor at the time, the entity’s purported sole beneficial owner. On June 14, 2018, the title of the Defendant Properties was transferred to 1616 Collins LLC in violation of the Sanctions. R.S. served as Perevalov’s power of attorney for the transfer. After the transfer, R.S. continued to lease the Defendant Properties, collected proceeds derived from the Defendant Properties, and used those proceeds to maintain the Defendant Properties including by making property tax payments.

FBI Miami is investigating the case with assistance from the Sunny Isles Beach Police Department. Assistant U.S. Attorneys Marx P. Calderón and Eli Rubin for the Southern District of Florida, Trial Attorneys Sinan Kalayoglu and Lindsay Gorman of the Criminal Division’s Money Laundering and Asset Recovery Section, and Trial Attorney Joshua E. Kurland of the Counterintelligence and Export Control Section of the National Security Division are prosecuting this civil action. 

This case was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls, and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the Department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression. 

A video statement from Attorney General Garland is available here https://www.youtube.com/watch?v=zOsemz-Gj-c.

A civil forfeiture complaint is merely an allegation that money or property was involved in or represents the proceeds of a crime. These allegations are not proven until a court awards a judgment in favor of the United States.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 24-cv-20687.

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MIAMI – On Feb. 20, an Indian River County resident pleaded guilty in federal court in Fort Pierce to distribution of fentanyl, the use of which resulted in the death of another person.

As part of the plea documents filed with the court, Keyon Lewis, 27, admitted that on Nov. 5, 2021, he sold fentanyl to a man in a parking lot in Vero Beach, Florida. The next day, the man’s wife found him dead on the kitchen floor of their residence.  After law enforcement officers discovered the victim’s body, they used the victim’s cellphone to order more fentanyl from Lewis. On Nov. 7, 2021, Indian River County officers arrested Lewis at the victim’s residence. 

Lewis’s sentencing is scheduled for May 21 before U.S. District Judge Aileen M. Cannon in Fort Pierce. Lewis faces a mandatory minimum penalty of 20 years and a maximum penalty of up to life in prison.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Deanne L. Reuter of the Drug Enforcement Administration (DEA), Miami Field Division, and Sheriff Eric Flowers of the Indian River County Sheriff’s Office (IRCSO) made the announcement. 

DEA Miami Field Division and IRCSO investigated the case. Assistant U.S. Attorney Michael D. Porter is prosecuting it.

Fentanyl is a synthetic opioid that is up to 50 times stronger than heroin and 100 times stronger than morphine. Even in small doses, fentanyl can be deadly. As little as two milligrams, about the size of 5 grains of salt, can be fatal. According to the Centers for Disease Control and Prevention (“CDC”), fentanyl and other synthetic opioids are the most common drugs involved in overdose deaths. Over 150 people die every day from overdoses related to synthetic opioids like fentanyl. The State of Florida has also seen an exponential increase in overdoses associated with fentanyl. For more information visit https://www.cdc.gov/opioids/basics/fentanyl.html# and https://www.dea.gov/factsheets/fentanyl.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-14030.

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MIAMI – On Feb. 15, a St. Lucie County woman was sentenced to 36 months in federal prison, followed by three years of supervised release, for attempted Hobbs Act robbery, after previously pleading guilty in November 2023. 

On April 21, 2023, Jennifer Scee, 48, of St. Lucie County, Florida, entered a pharmacy in Port St. Lucie, approached a pharmacy associate, who was behind the counter, and demanded Dilaudid, a brand name for hydromorphone, an opioid. When the associate asked Scee for her prescription, Scee displayed a weapon while she continued to demand the medication. When the associate told Scee that she did not have any Dilaudid, Scee jumped over the counter and pointed the weapon at the associate’s chest. After the associate started yelling and banging on the counter, Scee fled the scene.

Port St. Lucie Police Department officers obtained video surveillance from the plaza where the pharmacy is located, which shows Scee wearing a long-sleeved white shirt, black leggings, a black hat covering, and a surgical mask covering her face entering and fleeing the pharmacy on foot. Later, law enforcement officers also obtained surveillance footage showing a 2001 – 2005 Honda Civic Coupe with a sunroof and dark tinted windows pulling into the parking lot at the nearby plaza shortly before the robbery and leaving the parking lot shortly after the robbery. Law enforcement officers confirmed that a 2004 Honda Civic Coupe was registered to Scee in Port St. Lucie, Florida. Later, law enforcement arrested Scee at her residence in Port St. Lucie.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office and Chief Richard R. Del Toro, Jr. of the Port St. Lucie Police Department (PSLPD) announced the sentence imposed by U.S. District Judge Donald M. Middlebrooks.

FBI Miami and PSLPD investigated the case. Assistant U.S. Attorney Michael D. Porter prosecuted it.

This case stems from Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.  In 2017, PSN was reinvigorated 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.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-14043.

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MIAMI - Kamarcio Mitchell, 28, of West Palm Beach, had his initial appearance this morning before a U.S. Magistrate Judge in West Palm Beach on a criminal complaint charging him with unlawfully possessing a firearm and ammunition as a convicted felon. Mitchell’s arrest, on Feb. 16, was the result of a joint response by local, state, and federal law enforcement partners following a shooting that occurred at the Palm Beach Gardens Mall (The Gardens Mall) on Valentine’s Day.

According to allegations in the criminal complaint, on Feb. 14, Mitchell was at The Gardens Mall with a firearm. Surveillance video captured Mitchell on the second level of The Gardens Mall near a retail store. Mitchell followed another male onto the escalator and was manipulating an object under his shirt. Mitchell was then fired upon by the other male and shot. Mitchell fled the mall to the parking lot, leaving a trail of blood. A loaded firearm that had been disassembled was found in the parking lot by police, near the blood trail. Mitchell was later treated for his injury at a local hospital where he admitted to being shot. The investigation by law enforcement determined that the firearm found in The Gardens Mall parking lot was a loaded handgun that had previously travelled in interstate commerce.

Mitchell is a convicted felon and based upon his prior criminal history is charged in the criminal complaint as an Armed Career Criminal.  If convicted, Mitchell faces a mandatory minimum prison sentence of 15 years to a maximum sentence of life.

The United States has sought the pretrial detention of Mitchell.  A detention hearing has been scheduled before the West Palm Beach Duty Magistrate Judge on Feb. 27. An arraignment hearing is scheduled for March 5.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office, Special Agent in Charge Christopher A. Robinson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Division, U.S. Marshal Gadyaces S. Serralta of the U.S. Marshals Service, Chief Clinton Shannon of the Palm Beach Gardens Police Department, and Sheriff Ric Bradshaw of the Palm Beach County Sheriff’s Office announced the arrest and charges.

The Office of State Attorney Dave Aronberg for the 15th Judicial Circuit – Palm Beach County provided invaluable assistance. Assistant United States Attorney John McMillan is prosecuting the case.

This prosecution is a part of the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) program.  PSN is the centerpiece of the Department’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through the PSN program a broad spectrum of law enforcement and community 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 to reduce violence crime and gun violence, and to make our local neighborhoods safer for everyone.

A criminal complaint contains allegations, and all defendants are presumed innocent unless and until proven guilty in a court of law.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 24-8057-BER. 

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MIAMI – A Palm Beach County man was sentenced to 45 years in federal prison.  The sentence comes after a federal jury in West Palm Beach convicted him on multiple drug trafficking and firearms charges related to his participation in a conspiracy to sell a synthetic opioid, commonly sold as fentanyl, cocaine, and Eutylone (a synthetic cathinone with effects akin to Methylenedioxymethamphetamine), and his possession of a machinegun in furtherance of those crimes.  

On or about March 3, 2022, the West Palm Beach Police Department executed a search warrant at a West Palm Beach residence. Willie Boone, 24, was detained on scene. During the search, officers recovered multiple controlled substances, including N-Pyrrolidino Etonitazene, Eutylone, and cocaine. Other evidence included two of Boone’s cellphones and two firearms, one of which was a Glock Model 17 pistol with a machinegun conversion device. That conversion device, commonly known as a “Glock Switch” rendered the pistol fully automatic. Boone had previously been convicted of three felony drug-trafficking offenses and was prohibited from possessing a firearm, including the unregistered machinegun.  Forensic evidence recovered from the cellular telephones and Boone’s DNA on the Glock Model 17 pistol confirmed his possession of the firearm and possession in the charged drug conspiracy. 

U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Christopher A. Robinson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Division, and West Palm Beach Police Department Chief Frank Adderley announced the conviction.

ATF and the West Palm Beach Police Department investigated the case. Assistant U.S. Attorneys Shannon O’Shea Darsch and Alexandra Chase are prosecuting the case. Assistant U.S. Attorney Gabrielle Charest-Turken for the Southern District of Florida is handling asset forfeiture.

This case is 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 gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-80175.

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MIAMI – On Feb. 1, a federal grand jury returned an indictment charging a man and a woman for their alleged involvement in an elder fraud conspiracy.

Monique C. Clarke, aka Monique Clark-Mootoo, aka Rebecca White, and aka Mark Hilton, 28, a Jamaican national, and Jon-Michael Hudson, 33, a resident of Jamaica, were charged in federal court by indictment with conspiracy to commit money laundering. Allegedly, the criminal enterprise targeted a total of 51 elderly victims throughout the United States and incurred in a total loss of more than $6.6 million dollars. 

According to the allegations in the indictment, court documents, and statements made during court hearings, from October 2020 through January 2021, Clarke and Hudson were allegedly engaged in laundering proceeds from a criminal enterprise that targeted elderly victims throughout the United States. As alleged in a court document, members of the criminal enterprise engaged in a lottery scam.

The co-conspirators made telephone calls to elderly victims and told them that they had won a lottery contest prize of millions of dollars. The victims were told that to collect the prize, they must pay fees for shipping, taxes, insurance, and customs processing, among other things. The co-conspirators then asked the victims to send the funds (generally, via personal checks and cashier’s checks) to third-party individuals, commonly known as money mules, who are known for receiving and moving money that is fraudulently acquired from victims. Then, these individuals allegedly deposited the checks into their bank accounts, withdrew the cash and sent it to Clarke and other co-conspirators via a courier service.

A court document further alleges that Clarke received over $500,000 of $1,653,473 from the proceeds of five victims’ losses. Clarke and Hudson allegedly deposited a portion of the fraudulently obtained proceeds into Clarke’s bank accounts. Later, Clarke allegedly wired transferred $150,000 to a car dealer’s bank account in Jamaica for the purchase of a 2020 AMG GT 63 S Coupe Mercedes Benz.

On Feb. 14, Clarke and Hudson made their initial appearances in federal court. On Feb. 20, Hudson had his detention hearing. Clarke’s detention hearing was continued to Feb. 23. If convicted, Clarke and Hudson each face up to 20 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines along with other mitigating, aggravating, and statutory factors.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami, made the announcement.

HSI Ft. Lauderdale investigated the case with assistance from the Broward Sheriff’s Office (BSO) and U.S. Postal Inspection Service (USPIS). Assistant U.S. Attorney Joseph A. Cooley is prosecuting it. Assistant U.S. Attorney Sara Klco is handling asset forfeiture.

If you or someone you know has been a victim of elder fraud, help is standing by at the National Elder Fraud Hotline at 1-833-FRAUD-11 (833–372–8311).  Victims or witnesses can also contact the HSI Tip Line by calling (866) 347-2423.  If you have received a scam phone call, email, or message, you may also report it to the Federal Trade Commission (FTC) at https://reportfraud.ftc.gov.

The Department of Justice is committed to helping protect American seniors.  The public is encouraged to remain vigilant and not to provide personal identifiable information (PII), such as a social security number, or money in response to false claims.  For information regarding the Department’s Elder Justice Initiative visit https://www.justice.gov/elderjustice.  The Department of Justice also offers a variety of resources relating to elder fraud victimization through its Office for Victims of Crime at https://www.ovc.gov.

An indictment contains mere allegations, and all defendants are presumed innocent unless and until proven guilty in a court of law.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 24-cr-60023. 

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MIAMI – On Feb. 15, an Indian River County man was sentenced to 72 months in federal prison, followed by three years of supervised release for drug trafficking. The sentence comes after he previously pleaded guilty to distribution of fentanyl.

On April 19, 2023, Juan Carlos Sanchez Echevarria, 34, of Indian River County, Florida, sold 55 grams of fentanyl in Fellsmere, Florida.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Deanne L. Reuter of the Drug Enforcement Administration (DEA), Miami Field Division and Sheriff Eric Flowers of the Indian River County Sheriff’s Office (IRCSO), announced the sentence imposed by U.S. District Judge Aileen M. Cannon. 

DEA Miami Field Division and IRCSO investigated the case. Assistant U.S. Attorney Michael D. Porter prosecuted it. 

Fentanyl is a synthetic opioid that is up to 50 times stronger than heroin and 100 times stronger than morphine. Even in small doses, fentanyl can be deadly. As little as two milligrams, about the size of 5 grains of salt, can be fatal. According to the Centers for Disease Control and Prevention (“CDC”), fentanyl and other synthetic opioids are the most common drugs involved in overdose deaths. Over 150 people die every day from overdoses related to synthetic opioids like fentanyl. The State of Florida has also seen an exponential increase in overdoses associated with fentanyl. For more information visit https://www.cdc.gov/opioids/basics/fentanyl.html# and https://www.dea.gov/factsheets/fentanyl.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-14035.

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MIAMI – Two men pleaded guilty to conspiracy to commit mail fraud and wire fraud, and aggravated identity theft for their involvement in a bogus music concert fraud scheme.

Terronce Morris, 41, of Missouri City, Texas, pleaded guilty on Feb. 13 to conspiring with Blake Kelly, 36, of Los Angeles, California, in a fraud scheme involving bogus music concerts with famous artists, including J.B., B.E., and P.M. Kelly had previously pleaded guilty to the same conspiracy, on Jan. 9. Morris and Kelly also pleaded guilty to aggravated identity theft for forging the signature and using the identity of music artist J.B. on false and fraudulent concert contracts.

According to the factual proffer and other court documents, between December 2019 and March 2020, Morris and Kelly fraudulently obtained approximately $1,350,000 from victim J.R. Morris and Kelly persuaded the victim to give them the money for the purportedly production of a music festival, featuring J.B., P.M., B.E., and other music recording artists. Morris and Kelly created several false and fraudulent concert performance contracts forging the signatures of the music recording artists. Morris also created false and fraudulent email accounts that he used to pose as if the music recording artists themselves had sent the signed contracts to Kelly and himself. Additionally, during a video call with the victim, Morris and Kelly had an accomplice pose as J.B. to trick the victim into believing that J.B. had agreed to perform at the concert series.

Relying on Morris’s and Kelly’s false and fraudulent statements, the victim sent three wire transfers to Morris. The victim also mailed Morris a $200,000 check made payable to J.B., that Morris then deposited into his own personal account. Morris and Kelly used the fraudulently obtained money to enrich themselves and finance a lavish lifestyle for themselves and their accomplices, which included traveling, purchasing luxury goods, paying for luxurious services, and dining at high-priced restaurants.

Morris’s sentencing is scheduled for May 2, at 1:30 p.m. Kelly’s sentencing is scheduled for March 28, 1:00 p.m. Morris and Kelly face up to 20 years in prison for the conspiracy charge, as well an additional two years in prison for the identity theft charge.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida, and Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office made the announcement.

FBI Miami investigated the case. Assistant U.S. Attorneys Roger Cruz and Joan Silverstein are prosecuting it.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-60118.

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MIAMI – A Florida husband and wife, Noel and Kelsy Hernandez Quintana were both sentenced yesterday to 57 months in prison for illegally importing and selling between $25 million and $65 million worth of plywood products in violation of the Lacey Act and customs laws. Their employee, Marta Angelbello, was also sentenced.

In addition to their prison sentences, the Quintanas were ordered to pay, jointly and severally, $42,417,318.50 in forfeitures, as well as $1,630,324.46 in storage costs incurred by the government when the Quintanas declined to abandon illegal wood seized by the government, thus forcing the government to maintain the wood in storage pending resolution of the case. The Quintanas were also ordered to serve three years of supervised release following their prison sentences, during which time they are prohibited in engaging in businesses regarding importing or exporting in products specifically protected under the Lacey Act.

Angelbello was sentenced to three years of probation to include 90 days in home detention and was ordered to pay a fine of $3,000.

“The enforcement of customs laws serves an integral part of U.S. foreign policy and trade policy,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “In this case, the defendants undermined U.S. policy by evading legally mandated customs duties on plywood manufactured in China using Russian timber. Moreover, by doing so, the defendants covered up their criminal scheme to violate federal environmental law, while also unjustly enriching themselves. This case shows the importance of prosecuting customs and environmental offenses.”

“Illegal timber trafficking has serious environmental effects. Also, accurate plant import declarations protect domestic producers from dumping by foreign countries and detect potential over-harvesting and trade in timber from high-risk sources,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “This case clearly illustrates the ties between natural resource crime and customs laws, and is the result of excellent investigative work by customs officers, import specialists and Homeland Security Investigations.”

“Homeland Security Investigations is committed to pursuing individuals or entities that attempt to defraud the government of millions of dollars, violate U.S. Customs laws and undermine a fair marketplace for businesses,” said Special Agent in Charge Anthony Salisbury of the Homeland Security (HSI) Miami Field Office. “These types of criminal activities only serve to negatively impact the U.S. economy and we will continue to work with our federal law enforcement partners to combat this illicit activity.”

According to court filings, the Quintanas and Angelbello together engaged in a sophisticated scheme to evade antidumping and countervailing duties owed on hardwood plywood products made in China by falsely declaring the species, country of origin or country of harvest of the wood from which the plywood was made. At times they caused containers of plywood to be shipped from China to Malaysia or Sri Lanka, for example, where the wood was taken out of the original containers and put into a second set of containers to conceal the Chinese origin of the product. 

The Quintanas incorporated seven companies in the United States – naming relatives or friends as corporate officers and agents – and used these shell companies to import hundreds of shipments of plywood products into the United States between February 2016 and December 2020. The Quintanas also incorporated a financial shell company through which they accepted payments from purchasers for the plywood they imported in violation of law, including the Lacey Act and customs laws.

When importing plant products, the Lacey Act requires filing a declaration which contains, among other things, the plant’s scientific name and its country of harvest. The Lacey Act makes it unlawful to transport or sell a plant product knowing it or the plant it was made from was transported in violation of any plant-related law. Customs laws prohibit false statements in any import declaration without reasonable cause to believe the truth of such statement. It is also illegal to import merchandise contrary to law, including the Lacey Act.

According to the Quintana’s October plea agreement, softwood plywood – regardless of country of export – carried a general duty of 8%, with a few duty-free exceptions, such as if the outer ply was made from Parana pine. Antidumping and countervailing duties of more than 200% applied to hardwood plywood manufactured in China after approximately April 2017.

Before April 2017, the Quintana’s importing shell companies imported containers of plywood into the United States and almost exclusively declared them to be hardwood plywood imported from China. But after April 2017, the companies evaded applicable duties by falsely declaring their hardwood plywood imports from China to be either the product of another country or to be made with a species of wood not subject to duties.

For example, a declaration from July 2018 said plywood in three containers was manufactured in Russia. But the containers were manufactured and loaded in Qingdao, China, and transported to Port Everglades, Florida, through the Panama Canal, without ever stopping in Russia. After federal authorities stopped such a shipment through Panama, the Quintanas used a different tactic to evade duties by shipping Chinese-produced hardwood plywood to Malaysia and transferring the wood to new containers to be shipped onward to the United States. This change of containers was intended to better conceal that the plywood originated from China. 

The Quintana also falsely declared some shipments of softwood plywood to be duty-free Parana pine, which allowed them to evade the 8% general duty on these imports.

Additional court filings reflect that, after being alerted to the possibility of prosecution for their illegal acts, the Quintanas fled the United States initially to Panama and then to Montenegro where they were the subject of extradition proceedings.

The couple pleaded guilty to conspiring to import hardwood plywood in violation of the Lacey Act and customs laws and conspiring to sell the illegally imported plywood. Noel Quintana also pleaded guilty to one count of smuggling and one count of importing plant products without filing a declaration including the scientific name and name of the country from which the plants were taken. Kelsy Quintana also pleaded guilty to two counts of importing plant products without filing a declaration including the scientific name and name of the country where the plant was harvested.

HSI investigated the case with support from Customs and Border Protection, U.S. Fish and Wildlife Service and the Animal and Plant Health Investigation Service.

The U.S. Attorney’s Office for the Southern District of Florida and attorneys from the Environment and Natural Resources Division’s Environmental Crimes Section prosecuted the case.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.

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MIAMI – On Feb. 9, a Massachusetts man was sentenced to 15 years in federal prison, followed by 25 years of supervised release, and ordered to pay restitution to victims totaling $33,500 in West Palm Beach federal court after being previously convicted of 15 counts of distribution of child pornography.

During the summer of 2023, Eric Bahre, 41, of Westfield, Massachusetts, sent dozens of videos of child pornography, including the sado-masochistic abuse of infants and toddlers to a woman in South Florida in a chatroom. During his communication, Bahre emphasized that the videos were for the woman to share them with her “child.”

In June 2023, HSI West Palm Beach and HSI Springfield federal agents, along with Westfield Police Department (WPD), Hampden County Sheriff’s Office (HCSD), and the Massachusetts State Police (MSP) officers found electronic devices containing videos and photographs of child exploitation material in Bahre’s house. They also found evidence of Bahre’s communications with the woman, and others, in chatrooms dedicated to the distribution of child pornography.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami, announced the sentence.

HSI West Palm Beach Office investigated the case with assistance from HSI Springfield Office, WPD, HCSD, and MSP. Assistant U.S. Attorney Gregory Schiller prosecuted the case. 

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

To report online child sexual exploitation, use the electronic Cyber Tip Line or call 1-800-843-5678. The Cyber Tip Line is operated by the National Center for Missing and Exploited Children in partnership with the HSI and other law enforcement agencies.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-80093.

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MIAMI – On Feb. 12, the Chief Executive Officer (CEO) of Digitex Futures Exchange (Digitex Futures), was charged in federal court with willfully causing Digitex Futures to violate the Bank Secrecy Act by failing to establish and implement an anti-money-laundering program.

According to the allegations in the indictment, from January 2018 through April 2022, Adam Colin Todd, 50, a former resident of Miami, Florida, illegally operated Digitex Futures, an online futures exchange company, as an unregistered futures commission merchant in the United States. As alleged in the indictment, Todd sold and offered futures contracts to Digitex Futures’ customers. Allegedly, Todd willfully failed to establish, implement, and maintain an adequate anti-money-laundering program, including an adequate know-your-customer program. The indictment further alleges that Todd publicly stated that he refused to implement know-your-customer policies for Digitex Futures. 

Todd made his initial appearance in federal court. If convicted, Todd faces up to five years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines along with other mitigating, aggravating, and statutory factors.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office, made the announcement.

FBI Miami investigated the case. Assistant U.S. Attorney Trevor Jones is prosecuting it.

An information contains mere allegations, and all defendants are presumed innocent unless and until proven guilty in a court of law.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-20478. 

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MIAMI – On Feb. 9, a Miami Beach man was sentenced to 95 months in federal prison for his role in a violent transnational organized crime group operating in Cuba, Mexico, Spain, and South Florida since as early as 2009.

The sentence comes after a jury convicted Javier Hernandez, 50, of Miami Beach, Florida, of conspiracy to commit encourage and induced aliens to come to or enter the United States without authority, conspiracy to transport stolen vessels, conspiracy to traffic in certain motor vehicles, trafficking in certain motor vehicles, and conspiracy to launder money to promote stolen property trafficking and the bribery of public officials in October 2023.

According to evidence introduced at trial, Hernandez and his codefendant, Ramon Reyes Aranda, 38, of Naples, Florida, stole vessels from the west coast of Florida. Reyes Aranda would identify the vessels, and Hernandez transported them to Mexico, where they would be used to fund and facilitate the enterprise’s illegal activities. Prior to the trial, Reyes Aranda pleaded guilty to participating in a money laundering conspiracy to promote stolen property trafficking and the bribery of public officials.  

The stolen property, which included boats and vessels, were transported to a coconspirator in Mexico, who would then use the stolen property to facilitate and promote the organization’s activities. For example, evidence introduced at trial showed that Hernandez transported a vehicle to Mexico for use in bribing a foreign official so that the organization could continue conducting migrant smuggling without interference from law enforcement.

An extensive multi-national operation, led by American and Mexican law enforcement authorities, was formed to combat the activities of a violent transnational organized crime group known collectively in Mexico as La Mafia Cubana en Quintana Roo, or the Cuban Mafia in Quintana Roo. Through this operation, law enforcement officials learned that Jose Miguel Gonzalez Vidal, 36; Reynaldo Abreu Garcia, 56; Yohismy Perez Gonzalez, 40; Yosvani Carbonel Lemus, 43; Reynaldo Crespo Marquez, 44, and Jancer Sergio Ramos Valdes, 37, all Cuban citizens residing in Mexico at the time of the charges, along with Maikel Antonio Hechavarria Reyes and Monica Susana Castillo, both of Mexico, were part of an organized crime group that profited from various schemes, including the smuggling and extortion of Cuban migrants held hostage in Mexico for the payment of smuggling fees (United States v. Vidal, et al., Case No. 21-cr-20050-CMA).

According to evidence contained in the court record, Gonzalez Vidal introduced Hernandez to Reyes Aranda so that they could work together to transport stolen vessels for the organization. Both Hernandez and Reyes Aranda were paid by Gonzalez Vidal and other members of the organization for their transportation of the stolen property.

The members of the migrant extortion racket required the victims to provide contact information of a family member from whom they would later demand a $10,000 USD ransom fee. The men contacted the victims’ relatives, some of whom were in Miami, and threatened to torture, starve, and kill the victims if the relatives refused to pay. If a victim’s relative was able to pay the ransom, the organization released the victim and sent them by bus to the United States-Mexico border with instructions to seek political asylum. The victims whose relatives were unable to pay the fee were beaten, threatened with knives and guns, and shocked with stun guns until they were finally rescued by Mexican authorities. Members of the organization also sought to profit from drug trafficking and fraud schemes.

Further, once the defendants were charged in the United States and detained pending trial, they continued operating the organization by seeking to obstruct justice, violating court orders, and distributing contraband in a federal detention center. As part of their prison racket, the organization paid bribes to a federal employee to introduce contraband and controlled substance for distribution into the Federal Detention Center (FDC), in Miami.

For their participation in the criminal scheme, Gonzalez Vidal, Crespo Marquez, Abreu Garcia, Perez Gonzalez, Carbonel Lemus, and Ramos Valdes previously pleaded guilty to Racketeer Influenced and Corrupt Organizations (RICO) conspiracy and migrant smuggling.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida; Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office; Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami; Acting Special Agent in Charge Matthew J. Margelot, U.S. Coast Guard Investigative Service (CGIS), Southeast Region; Warden Gio Ramirez of the Federal Detention Center (FDC), Bureau of Prisons (BOP); Director Stephanie V. Daniels of the Miami-Dade Police Department (MDPD); Chief of Police Tracy Frazzano for the Marco Island Police Department, and Chief of Police Ciro M. Dominguez of the Naples Police Department, made the announcement.

The prosecution of this organization has involved significant support from the Justice Department’s Office of International Affairs, FBI’s International Violent Crimes Unit, and the Justice Department’s Violent Crime and Racketeering Section.

These multinational prosecutions are the result of ongoing efforts of the Operation Sisyphus Task Force, a multi-agency partnership established by the Organized Crime Drug Enforcement Task Forces (OCDETF) Priority Transnational Organized Crime Program. Since 2012, Operation Sisyphus Task Force participants have secured the conviction of over thirty members and associates of the criminal organization. 

The principal mission of the OCDETF program is to identify, disrupt, and dismantle the highest-level drug traffickers, money launderers, and other priority transnational criminal organizations that threaten the citizens of the United States using a prosecutor-led, intelligence driven, multi-agency approach to combat transnational organized crime. The OCDETF program facilitates complex, joint operations by focusing its partner agencies on priority targets, by managing and coordinating multi-agency efforts, and by leveraging intelligence across multiple investigative platforms.

Assistant U.S. Attorneys Arielle Klepach and Brian Dobbins prosecuted U.S. v. Hernandez, et al., Case No. 22-cr-20557.

Assistant U.S. Attorneys Manolo Reboso, Quinshawna Landon and Ignacio J. Vázquez, Jr. prosecuted U.S. v. Vidal, et al., Case No. 21-cr-20050. First Assistant U.S. Attorney Michael Davis conducted collateral litigation regarding obstruction of justice activities in the Vidal, et al. prosecution.

Assistant U.S. Attorney Annika Miranda handled asset forfeiture.

Anyone with related information or who may have been a victim or witness should contact HSI at 877-4-HSI TIP (877-447-4847).

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under the case numbers referenced above.

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MIAMI – On Feb. 8, a man was sentenced to three years in prison and ordered to pay restitution in the amount of $71,933.20 for destroying federal property at the U.S. Courthouse and Federal Building in Fort Lauderdale. The sentence follows his guilty plea entered in November 2023 to one count of destruction of federal property in violation of Title 18, United States Code, Section 1361.  

According to facts admitted in support of his guilty plea, on Sept. 5, 2022, Matthew Leon Chilcutt, 45, of Fort Lauderdale, Florida, forced his way into the Courthouse when the building was closed to the public in observance of the Labor Day holiday. While on the federal premises, Chilcutt smashed glass and other objects, destroyed interior and exterior doors, and caused significant water damage, among other acts of destruction. Surveillance video at the Courthouse recorded Chilcutt throughout the offense.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida and the Federal Protective Service (FPS), Miami Region, announced the sentence imposed by U.S. District Judge K. Michael Moore.

FPS investigated this case with assistance from the Fort Lauderdale Police Department. Assistant U.S. Attorney David A. Snider prosecuted the case.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-20449.

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MIAMI – The Department of Justice today completed enforcement of a final order for forfeiture of a U.S.-manufactured Boeing 747 cargo plane, previously owned by Mahan Air, a sanctioned Iranian airline affiliated with the Islamic Revolutionary Guard Corp-Qods Force (IRGC-QF), a designated Foreign Terrorist Organization (FTO).

On Feb. 11, the government of Argentina transferred physical custody of the aircraft to the United States pursuant to the final order of forfeiture, which was issued by the U.S. District Court for the District of Columbia on May 3, 2023, which rests all right, title, and interest in the aircraft in the United States of America. The Boeing 747 cargo plane arrived in the Southern District of Florida where it will be prepared for disposition.

“The United States’ forfeiture of the Boeing 747 cargo plane culminates over 18 months of planning, coordination, and execution by the U.S. government and our Argentine counterparts,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “Bad actors — both near and far — are on alert that the United States will use all its tools to hold those who violate our laws to account. The successful seizure of the Boeing 747 underscores our commitment to prevent the illegal exportation of U.S. technologies and enforce U.S. export control laws.”

“Using a whole-of-government approach, we have worked with our international partners to forfeit a plane transferred by Iranian entities in violation of U.S. sanctions and export control laws,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “Foreign adversaries — seeking to illegally use American-made products to further their endeavors — need to know that the United States government will work with the international community to hold them accountable for their illegal conduct. The United States appreciates the collaboration with our Argentinian law enforcement and judicial partners.” 

“The seized American-built aircraft was transferred by a sanctioned Iranian airline in a transaction that violated U.S. export control laws and directly benefited the Islamic Revolutionary Guard Corps, which is a designated terrorist organization,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Justice Department is committed to ensuring that the full force of U.S. laws deny hostile state actors the means to engage in malign activities that threaten our national security.”

“Mahan Air — known to ferry weapons and fighters for the Islamic Revolutionary Guard Corps and Hizballah — violated our export restrictions by selling this airplane to a Venezuelan cargo airline. Now, it’s property of the U.S. government,” said Assistant Secretary of Export Enforcement’s Matthew S. Axelrod of the Department of Commerce. “This seized airplane’s arrival in the United States is a powerful example of our unceasing efforts to prevent Iran and its proxies from leveraging and profiting from U.S. technology.”

“The transfer of this plane to U.S. custody is the final step in the long process to bring this case to its rightful conclusion,” said Executive Assistant Director Larissa L. Knapp of the FBI’s National Security Branch “The FBI, along with our federal government and international partners, used every tool under our authorities to hold the Iranian government and their affiliates accountable for violating U.S. laws.”

Boeing 747 cargo plane, the target aircraft, taken Sept. 6, 2019.

The plane was previously detained by Argentine law enforcement. On July 19, 2022, the U.S. District Court for the District of Columbia issued a seizure warrant for the aircraft, which Argentine authorities promptly enforced. On Oct. 20, 2022, in support of its ongoing criminal investigation, the United States filed a civil forfeiture complaint alleging that the aircraft’s transfer from Mahan Air to Empresa de Transporte Aéreocargo del Sur, S.A. (EMTRASUR), a Venezuelan cargo airline and subsidiary of Consorcio Venezolano de Industrias Aeronáuticas y Servicios Aéreos, S.A (CONVIASA), a Venezuelan state-owned company, violated U.S. export control laws. As alleged, Mahan Air was subject to a Department of Commerce Temporary Denial Order, which prohibited, among other things, Mahan Air from engaging in any transactions involving any commodity exported from the United States that is subject to the Export Administration Regulations. The complaint further alleged that the unauthorized transfer of this aircraft directly benefited the IRGC-QF.

According to court documents, the registered captain of the aircraft was an ex-commander for the IRGC and a shareholder and member of the board of a second sanctioned Iranian airline, Qeshm Fars Air, affiliated with the IRGC-QF. Argentinian law enforcement also recovered a Mahan Air flight log documenting the aircraft’s flights after the unlawful transfer to EMTRASUR and confirmed additional violations of U.S. export control laws between February and May 2022 when EMTRASUR reexported the aircraft between Caracas, Venezuela; Tehran, Iran; and Moscow without U.S. government authorization.  

The Department of Commerce Bureau of Industry and Security’s Miami Field Office and the FBI Miami Field Office are investigating the case.

Assistant U.S. Attorneys Andy R. Camacho for the Southern District of Florida and Rajbir Datta for the District of Columbia and, and Trial Attorney Alexander Wharton of the National Security Division’s Counterintelligence and Export Control Section are handling the seizure and investigation, with assistance from Paralegal Specialist Brian Rickers and Legal Assistant Jessica McCormick. Senior Trial Attorney John Beasley and Trial Attorney Jesse Ormsby of the Justice Department’s Office of International Affairs; Special Agent Adam Mastriani and Task Force Officer Robert Cunniff of the FBI Miami Field Office; and Ricardo Hernandez of the FBI’s Legal Attaché in Buenos Aires provided significant assistance in working with the Argentine authorities, led by Argentine Federal Judge Federico Villena and the U.S. Marshals Service to manage the difficult logistics and coordination of the physical transfer of the Boeing aircraft from Argentina to the United States.

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MIAMI – On Feb. 7, a Vero Beach man pleaded guilty to two counts of distributing fentanyl.

In April 2023, Sudiata Neket Zanja Stinson, 47, of Vero Beach, Florida, sold approximately 20 grams of fentanyl to a purchaser in two separate occasions.

The sentencing hearing has not been set yet. Stinson faces up to 40 years in federal prison.

Stinson’s conviction is the result of a Drug Enforcement Administration (DEA) and Indian River County Sheriff’s Office (IRCSO) fentanyl distribution operation.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Deanne L. Reuter of DEA, Miami Field Division, and Sheriff Eric Flowers of IRCSO made the announcement.

DEA Miami Field Division, Port St. Lucie Resident Office and IRCSO investigated the case.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-14040.

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MIAMI – On Feb. 8, Gregory Scott Keough, 57, of Wellington, Florida, was sentenced to 30 months in prison for submitting fraudulent loan applications seeking approximately $2 million in forgivable Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans. These loans are guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).  

From March 2020 to Aug. 2020, Keough and conspirator Derek Acree, an attorney, submitted one fraudulent EIDL application and three fraudulent PPP loan applications on behalf of entities they both controlled. Of the funded loans, Keough was responsible for approximately $1,612,222. Keough individually submitted four additional false loan applications on behalf of companies he controlled as the Chief Executive Officer (CEO). Two of those applications were funded and Keough received $309,555 in CARES Act proceeds. These companies included National Financial Holdings Inc., NFH Florida LLC, DBA Finova Financial LLC, NFH Partners LLC, Grupo Keough LLC, Enclave Partners LLC, and National Financial Holding Technology LLC. The loans misrepresented the number of employees, payroll expenses, and gross revenues.

After obtaining the fraudulent loan proceeds, Keough transferred some of it to other bank account, paid multiple credit cards, as well as used to purchase and install storm windows for his home, private jet travel, and private school tuition.

Keough had entered a guilty plea to two counts of wire fraud and one count of money laundering in Nov. 2023. In addition to prison, Keough was ordered to pay $1,922,355 million in restitution.     

Acree was charged separately and pled guilty to conspiracy to commit wire fraud in Oct. 2022 (Case No. 22-cr-80157). Acree was sentenced, in Jan. 2023, to 41 months in prison and ordered to pay $1,262,600 million in restitution. 

Restitution was paid in full jointly by both Acree and Keough. 

U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office, made the announcement. 

FBI West Palm Beach investigated the case.  The Office of State Attorney Dave Aronberg for the 15th Judicial Circuit – Palm Beach County and the Palm Beach County Sheriff’s Office PPP Fraud Task Force provided invaluable assistance.  Assistant U.S. Attorney Robin W. Waugh prosecuted it and Assistant U.S. Attorney Joshua Pastor handled asset forfeiture.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-cr-80154.

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MIAMI – On Feb. 8, a Florida man admitted his role in a multimillion-dollar durable medical equipment (DME) kickback scheme, after previously pleading guilty to carrying out a COVID-19 fraud scheme and being a felon in possession of firearms and ammunition.

Kareem Memon, 34, of Coral Springs, Florida, pleaded guilty, before U.S. District Judge Raag Singhal in the Southern District of Florida, to an information charging him with one count of conspiracy to commit health care fraud and one count of conspiracy to violate the federal Anti-Kickback Statute (Case No. 24-cr-60004).

According to documents filed in the health care fraud case and statements made in court, Memon and his conspirators owned and operated marketing call centers and telemedicine companies through which they obtained doctors’ orders for DME for Medicare beneficiaries without regard to medical necessity. Memon and his conspirators provided doctors’ orders in exchange for bribes from DME companies that provided the braces to Medicare beneficiaries.  Memon and his conspirators caused losses to Medicare in excess of $11 million.

On Sept. 21, 2023, Memon pled guilty to wire fraud, money laundering, and felon in possession charges in a separate case before Judge Singhal (Case No. 23-cr-80068).  According to documents in the wire fraud case and statements made in court, Memon submitted fraudulent loan applications seeking more than $451,000 in forgivable Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act and used those funds for personal gains.  Moreover, at the time of Memon’s arrest he was a convicted felon and illegally possessed 12 firearms and ammunition.

Memon is scheduled to be sentenced in the two cases on March 26, 2024. The health care fraud conspiracy charge is punishable by a maximum of 10 years in prison and the kickback conspiracy charge is punishable by a maximum of five years in prison. The wire fraud charge is punishable by a maximum of 20 years in prison, the money laundering charge is punishable by a maximum of 10 years in prison, and the felon in possession charge is punishable by a maximum of 15 years in prison. The charges are also punishable by a fine.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida; Attorney for the United States Vikas Khanna for the District of New Jersey (for the health care fraud matter); Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office; and Special Agent in Charge James E. Dennehy of the FBI, Newark Field Office, made the announcement.

FBI West Palm Beach and Newark Field Offices investigated the cases. Invaluable assistance was provided by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); U.S. Department of Health and Human Services-Office of Inspector General; U.S. Department of Defense Office of Inspector General, Defense Criminal Investigative Service; and U.S. Department of Veterans Affairs Office of Inspector General.

Assistant U.S. Attorneys Robin W. Waugh for the Southern District of Florida and Matthew Specht for the District of New Jersey are prosecuting these cases. Assistant U.S. Attorney Joshua Pastor for the Southern District of Florida is handling asset forfeiture.

In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case numbers 23-cr-80068 and 24-cr-60004.

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MIAMI – On Feb. 7, a Miami federal jury found a man guilty in a 23-count superseding indictment of murdering a man in aid of racketeering, assaulting a federal law enforcement officer, as well as of multiple counts of discharging a firearm in furtherance of a crime of violence, possessing a firearm and ammunition as a convicted felon, access device fraud and aggravated identity theft.

On April 28, 2020, Geno St. Flerose, of Miami, Florida, a member of the “Everybody Eats,” “EBE” gang shot and killed the victim, who was driving by St. Flerose’s house after St. Flerose chased him for over four blocks, and fired approximately thirteen rounds into the victim’s car, striking him three times. The victim died before getting to the hospital. The victim was 22 years old at the time of his murder.

Then, on June 17, 2020, a federal special agent was conducting surveillance in St. Flerose’s neighborhood when St. Flerose saw the agent’s car. St. Flerose ran into the street and fired multiple rounds at the agent’s car, penetrating it, but not striking the agent.

Law enforcement agents also discovered that St. Flerose had hundreds of people’s personal identifiable information.

Sentencing is scheduled for May 3 at 9:00 a.m. before U.S. District Judge Beth Bloom. St. Flerose faces up to life in prison, criminal fines of up to $250,000 as to each count, and a period of supervised release of up to life.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office, and Special Agent in Charge Rafael Barros of the U.S. Secret Service (USSS), Miami Field Office, made the announcement.

FBI Miami and USSS Miami investigated the case. Assistant U.S. Attorneys Christine Hernandez and Yara Dodin are prosecuting it. Assistant U.S. Attorney Mitchell Hyman is handling asset forfeiture.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-20149.

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NEWARK, N.J. – A Florida man today admitted his role in a multimillion-dollar durable medical equipment (DME) kickback scheme, Attorney for the United States Vikas Khanna, District of New Jersey, and U.S. Attorney Markenzy Lapointe, Southern District of Florida, announced.

Kareem Memon, 34, of Coral Springs, Florida, pleaded guilty before U.S. District Court Judge Raag Singhal in the Southern District of Florida to an information charging him with one count of conspiracy to commit health care fraud and one count of conspiracy to violate the federal Anti-Kickback Statute.

According to documents filed in the case and statements made in court:

Memon and his conspirators owned and operated marketing call centers and telemedicine companies through which they obtained doctors’ orders for DME for Medicare beneficiaries without regard to medical necessity. Memon and his conspirators provided doctors’ orders in exchange for bribes from DME companies that provided the braces to Medicare beneficiaries.  Memon and his conspirators caused losses to Medicare in excess of $11 million.

On Sept. 21, 2023, Memon pleaded guilty to wire fraud, money laundering, and felon in possession charges in a separate case before Judge Singhal.  Memon submitted fraudulent loan applications seeking more than $451,000 in forgivable Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act and used those funds for personal gains. At the time of Memon’s arrest he was a felon and found to be unlawfully in possession of an arsenal of 12 firearms and ammunition.

The health care fraud conspiracy charge is punishable by a maximum of 10 years in prison and the kickback conspiracy charge is punishable by a maximum of five years in prison. Both charges are also punishable by a fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for March 26, 2024.

Attorney for the United States Khanna and U.S. Attorney Lapointe credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark and Acting Special Agent in Charge is Maged Behnam in Miami, Florida; the Department of Health and Human Services-Office of Inspector General, under the direction of Acting Special Agent in Charge Naomi Gruchacz; the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Acting Special Agent in Charge Brian J. Solecki; and the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Matthew Specht of District of New Jersey and Assistant U.S. Attorney Robin Waugh of the Southern District of Florida.

 

memon.information.pdf

MIAMI – On Feb. 5, a Miami woman was sentenced to 70 months in federal prison for money laundering of nearly $2 million in fraudulent COVID-19 relief loans, after previously pleading guilty in October 2023.

From April 2020 through April 2021, Maritza Morales Hermoso, 58, of Miami, Florida, and others, including co-defendant Javier Lazo Cabrera, conspired to defraud private lenders and the Small Business Administration (SBA) by filing false and fraudulent loan applications for multiple companies under both the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program, despite that several of those companies had no payroll and were not actively doing business at the time the loan applications were submitted. The applications were supported by fabricated payroll documents and inflated employee numbers. As a result of these false and fraudulent applications, a California-based SBA-approved PPP lender disbursed close to $2 million in fraudulent loan proceeds to bank accounts controlled by Hermoso.

Hermoso spent the proceeds from the fraudulent PPP and EIDL loans on gambling at South Florida casinos and various other personal expenses like cosmetic surgery, a Cadillac Escalade, and a Pomeranian puppy. Hermoso also disguised her misuse of funds by laundering the loan proceeds through multiple unrelated business accounts and withdrawing the money in cash. 

Hermoso’s co-defendant, Cabrera, pleaded guilty to conspiracy to commit wire fraud in December 2023. Cabrera’s sentencing is scheduled for March 11 at 8:30 a.m. in Miami. Cabrera faces up to 20 years in federal prison.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Rafael Barros of the U.S. Secret Service (USSS), Miami Field Office, SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite, U.S. Small Business Administration Office of Inspector General (SBA OIG), Investigations Division’s Eastern Region, and Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office announced the sentence.

USSS Miami, SBA OIG, Investigations Division’s Eastern Region, and FBI Miami investigated the case. Assistant U.S. Attorneys Joseph Egozi and Roger Cruz prosecuted the case. Assistant U.S. Attorneys Mitchell Evan Hyman is handling asset forfeiture.

In March 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Among other sources of relief, the CARES Act authorized and provided funding to the SBA to provide Economic Injury Disaster Loans (“EIDLs”) to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred.  EIDL applications were submitted directly to the SBA via the SBA’s on-line application website, and the applications were processed and the loans funded for qualifying applicants directly by the SBA.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. For more information on the department’s response to the pandemic, please click here. 

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-20360.

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A federal jury in the Southern District of Florida convicted a Pennsylvania man today for manipulating the price of a security and scheming to defraud investors in connection with the purchase of Hydrogen Technology’s cryptocurrency, HYDRO.

According to court documents and evidence presented at trial, Shane Hampton, 32, of Philadelphia, served as the head of financial engineering at Hydrogen Technology and orchestrated a months-long scheme to manipulate the price of HYDRO. Hampton and his co-conspirators hired an outside firm, Moonwalkers Trading Limited of South Africa, to run an automated trading system or “bot” to manipulate the price of HYDRO on a cryptocurrency exchange in the United States by flooding the market with fake and fraudulent orders from October 2018 to April 2019. 

Hampton and his co-conspirators executed approximately $7 million in “wash trades” and placed over $300 million in “spoof trades” for HYDRO through the bot. Collectively, these spoof and wash trades were designed to, and did, fraudulently induce retail investors to purchase HYDRO so that Hampton and his co-conspirators could sell Hydrogen Technology’s own holdings of HYDRO for over $1.5 million over the course of a seven-month period. 

The jury convicted Hampton of conspiracy to commit securities price manipulation and conspiracy to commit wire fraud. He is scheduled to be sentenced on April 29 and faces a maximum penalty of five years in prison for the conspiracy to commit securities price manipulation conviction and 20 years in prison for the conspiracy to commit wire fraud conviction. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Hampton is the fourth defendant to be convicted as part of the case. Michael Kane, the CEO of Hydrogen Technology, pleaded guilty to the same charges and is awaiting sentencing; Andrew Chorlian, an engineer at Hydrogen Technology, also pleaded guilty to conspiracy to commit securities price manipulation and wire fraud and is awaiting sentencing; and Tyler Ostern, the CEO of Moonwalkers Trading Limited, also pleaded guilty to conspiracy to commit securities price manipulation and wire fraud and has been sentenced to two years in prison. 

Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Markenzy Lapointe for the Southern District of Florida, and Assistant Director Michael D. Nordwall of the FBI’s Criminal Investigative Division made the announcement.

The FBI Miami Field Office investigated the case. Former Assistant U.S. Attorney Eric Morales for the Southern District of Florida assisted in the investigation of the case.

Trial Attorney Andrew Jaco and Assistant Chief Scott Armstrong of the Criminal Division’s Fraud Section are prosecuting the case. 

MIAMI – On Jan. 25, a Miami man was sentenced to 30 years in federal prison, followed by five years of supervised release, for unlawfully possessing a firearm and ammunition as an armed career criminal. The sentence comes after a jury convicted him in October 2023.

As shown at trial and sentencing, this case involved an eight-day span where Demetris Kewan Mackie, 29, of Miami, Florida, possessed and used the same gun to shoot at two victims, injuring one.

On April 12, 2023, Mackie pistol-whipped and shot a male victim outside a laundromat in Miami. Miami-Dade Police Department (MDPD) officers responded to the scene. When MDPD officers arrived, they found a blood trail on the ground that led them to where the victim had collapsed. The next morning, the victim advised MDPD officers that a male with a silver-topped gun and a teardrop-shaped tattoo next to his right eye had pistol-whipped him before shooting at him the day before. Surveillance footage verified the victim’s story.

Three days later, North Miami Beach Police Department (NMBPD) officers responded to another shooting. This time the victim was unharmed and was able to identify Mackie as the attacker.

On April 20, 2023, MDPD officers arrested Mackie. At the time of the arrest, Mackie was carrying a silver-topped gun whose test-fired casings matched the casings from both shootings.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Christopher A. Robinson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Division announced the sentence imposed by U.S. District Judge Rodolfo A. Ruiz II.

ATF Miami Field Office investigated the case with assistance from MDPD and NMBPD. Assistant U.S. Attorneys Zachary A. Keller and Vanessa Bonhomme prosecuted the case.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-20204.

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