Southern District of Florida

Three Florida residents were sentenced today to between eight and ten years in federal prison for their participation in a conspiracy to commit an armed robbery of a Sawgrass Mills restaurant.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Anthony W. Rosa, Chief, Sunrise Police Department, made the announcement.

Zyheem Ian Smith, of Orlando, Gedeon Joseph, of Clermont, and Watverly Mortimer, of West Park, previously pled guilty for their involvement in the December 24, 2018 armed robbery of the Yard House restaurant at the Sawgrass Mills Mall in Sunrise, Florida (Case No. 19-CR-60055-UNGARO).  Smith, Joseph and Mortimer pleaded guilty to Counts 1 and 3 of the indictment, which charged the Defendants with Conspiracy to commit Hobbs Act Robbery, in violation of Title 18, United States Code, Section 1951(a) and Brandishing a Firearm in Furtherance of a Crime of Violence, in violation of Title 18, United States Code, Section 924(c)(1)(A)(ii).

Today, U.S. District Judge Ursula M. Ungaro sentenced Smith to 121 months in prison, and Joseph and Mortimer each to 96 months in prison. 

According to court records, including the agreed upon factual proffers, Smith and Joseph entered the Yard House on the morning of December 24, 2018, before the restaurant had opened, through a back door that was opened by Mortimer, a Yard House employee.  Smith and Joseph went upstairs to the manager’s office, pointed a Glock 19X handgun at the manager, and grabbed the manager’s cellphone.  They threatened to shoot the manager if he did not empty the safe.  The manager, who was in fear for his life, placed cash into a bag.  Smith and Joseph left the restaurant with approximately $22,000.

U.S. Attorney Fajardo Orshan commended the investigatory efforts of the FBI and the Sunrise Police Department in this matter.  This case was prosecuted by Assistant U.S. Attorney Robert Juman.

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.govor on http://pacer.flsd.uscourts.gov.

            A Leesburg, Florida resident pled guilty today to attempted online enticement of a minor to engage in illegal sexual activity.

            Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and John Bolduc, Chief, Port St. Lucie Police Department, made the announcement.

            Jonathan Mahowald, 38, of Leesburg pleaded guilty to Attempted Use of a Means of Interstate Commerce to Persuade, Induce, Entice, or Coerce a Minor to Engage in Illegal Sexual Activity, in violation of Title 18, United States Code, Section 2422(b) (Case No. 18-CR-14072-KAM.  Mahowald faces a mandatory minimum sentence of 10 years to life in prison.  Mahowald also faces up to a lifetime of supervised release and the requirement that he register as a sex offender. He was ordered to be held in custody, pending sentencing on October 18, 2019, before U.S. District Court Judge Kenneth A. Marra.

According to documents filed in the case, on July 6, 2018, a Port St. Lucie Police Department Detective was working in an undercover capacity online, utilizing the internet, to investigate computer crimes against children. Between July 6, 2018 and July 17, 2018, a Port St. Lucie Police Detective, posing as a 14 year old girl, responded to an internet advertisement Mahowald had posted.  During the course of text and online communications Mahowald discussed sexually explicit activity he wished to engage in with the “14-year old.”  In addition, Mahowald sent sexually explicit images, to the person he believed was a minor.  On the morning of July 17, 2019, Mahowald set up a meeting with the “14 year old” to meet at a restaurant in Port. St Lucie. While en route, Mahowald discussed engaging in sexual acts, in his van, with the individual he believed was a 14 year old girl. Upon his arrival Mahowald was arrested by members of the Port St. Lucie Police Department. 

U.S. Attorney Fajardo Orshan commended the investigative efforts of the Port St. Lucie Police Department for their work on this case.  The case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.

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.

Joaquin Archivaldo Guzman Loera, known by various aliases, including “El Chapo” and “El Rapido,” was sentenced today by U.S. District Judge Brian M. Cogan to a life term of imprisonment plus 30 years to run consecutive to the life sentence for being a principal leader of a continuing criminal enterprise – the Mexican organized crime syndicate known as the Sinaloa Cartel – a charge that includes 26 drug-related violations and one murder conspiracy.  The Court also ordered Guzman Loera to pay $12.6 billion in forfeiture.

Guzman Loera was convicted by a federal jury on Feb. 12, 2019, following a three-month trial, of all 10 counts of the superseding indictment, including narcotics trafficking, using a firearm in furtherance of his drug crimes and participating in a money laundering conspiracy. 

The sentence was announced by Attorney General William P. Barr, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Richard P. Donoghue for the Eastern District of New York (EDNY), U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida (SDFL), Acting Administrator Uttam Dhillon of the U.S. Drug Enforcement Administration (DEA), Director Christopher A. Wray of the FBI, Acting Secretary Kevin McAleenan of the U.S. Department of Homeland Security, Executive Associate Director Derek Benner of U.S. Immigration and Customs Enforcement (ICE)’s Homeland Security Investigations (HSI), Acting U.S. Marshal Bryan T. Mullee of the Eastern District of New York, New York City Police Department (NYPD) Commissioner James P. O’Neill and New York State Police Superintendent Keith M. Corlett.

The evidence at trial established that Guzman Loera was a principal leader of the Sinaloa Cartel, a Mexico-based international drug trafficking organization responsible for importing and distributing more than a million kilograms of cocaine, marijuana, methamphetamine and heroin in the United States.  The evidence included testimony from 14 cooperating witnesses, including Sinaloa Cartel members Rey and Vicente Zambada, Miguel Martinez, Tirso Martinez, Damaso Lopez and Alex Cifuentes; narcotics seizures totaling over 130,000 kilograms of cocaine and heroin; weapons, including AK-47s and a rocket-propelled grenade launcher; ledgers; text messages; videos; photographs and intercepted recordings that detailed the drug trafficking activity of Guzman Loera and his co-conspirators over a 25-year period from January 1989 until December 2014.    

From the mid-1980s until his arrest in Mexico in 1993, Guzman Loera was a mid-level operative of the Sinaloa Cartel, earning a name for himself and the nickname “El Rapido” for how quickly he transported drugs from Mexico to the United States for the Colombian cartels.  After he escaped from a Mexican prison in 2001 by hiding in a laundry cart, Guzman Loera formed an alliance with fugitive co-defendant Ismael Zambada Garcia and, together, they became the preeminent leaders of the Sinaloa Cartel.  Guzman Loera enforced his will and maintained control of his drug empire through an army of lethal bodyguards and a sophisticated communications network.

The trial highlighted the methods Guzman Loera and his organization used to transport the cartel’s multi-ton shipments of narcotics into the United States, including fishing boats, submarines, carbon fiber airplanes, trains with secret compartments and transnational underground tunnels.  Once the narcotics were in the United States, they were sold to wholesale distributors in New York, Miami, Atlanta, Chicago, Arizona, Los Angeles and elsewhere.  Guzman Loera then used various methods to launder billions of dollars of drug proceeds, including bulk cash smuggling from the United States to Mexico, U.S.-based insurance companies, reloadable debit cards and numerous shell companies, including a juice company and a fish flour company.

Guzman Loera and his organization relied upon violence to maintain its power throughout the region and beyond.  Numerous co-conspirators testified that Guzman Loera directed his hitmen to kidnap, interrogate, torture and slaughter members of rival drug organizations, at times carrying out acts of violence himself.  As part of its arsenal, the Sinaloa Cartel had access to weapons, including grenades and a rocket-propelled grenade launcher.  Guzman Loera’s personal arsenal included a gold plated AK-47 and three diamond-encrusted .38 caliber handguns, one emblazoned with his initials, “JGL.” 

Guzman Loera and his organization also relied on a vast network of corrupt government officials and employees to protect and further the interests of the Sinaloa Cartel.  They included local law enforcement officers, prison guards, high-ranking members of the armed forces and elected office holders.  In exchange, the Cartel paid these individuals millions of dollars in bribes. 

“The long road that brought ‘El Chapo’ Guzman Loera to a United States courtroom is lined with drugs, death, and destruction, but ends today with justice,” said Assistant Attorney General Benczkowski.  “Thanks to the unflagging efforts of the Department of Justice and the law enforcement community over the past 25 years, this notorious leader of one of the largest drug trafficking organizations in the Western hemisphere, the Sinaloa Cartel, will spend the rest of his life behind bars.”

“Guzman Loera’s day of reckoning has finally come,” said EDNY U.S. Attorney Donoghue.  “Never again will he pour poison into our country, or make millions as innocent lives are lost.  We cannot undo the violence, misery and devastation inflicted on countless individuals and communities as result of his organization’s sale of tons of illegal drugs for more than two decades, but we can ensure that he spends every minute of every day in prison.  The same fate awaits those who would take his place.  I thank the brave members of law enforcement, here and abroad, for their tireless efforts that have finally secured justice in this case.”

“The life sentence imposed today is the only just result for someone who spent a lifetime spreading his poison throughout our country,” said SDFL U.S. Attorney Fajardo Orshan.  “The impact of keeping former Sinaloa Cartel leader Joaquin Guzman Loera behind bars, for the rest of his life, cannot be overstated: the world will now be shielded from his brutality.  Thanks to the unyielding efforts of this team, the public was finally able to see how Guzman Loera used any means necessary to control his ruthless empire, including kidnapping, corruption, torture, and murder.  Our U.S. Attorney’s Offices continue to stand shoulder to shoulder with our domestic and foreign law enforcement partners to protect our citizens from the scourge of illicit drugs.”

“This sentencing shows the world that no matter how protected or powerful you are, DEA will ensure that you face justice,” said DEA Acting Administrator Dhillon.  “This result would not have been possible without the dedication and determination of so many brave men and women of the DEA, who worked tirelessly to see the world’s most dangerous, prolific drug trafficker behind bars in the United States.  This is a huge victory for the rule of law, for thousands of current and retired DEA agents and analysts worldwide, and for all of our law enforcement partners here, in Mexico, and across the globe.”

“Today’s sentencing is the culmination of years of effort from numerous local, state, federal, and international partners,” said FBI Director Wray.  “It highlights the dedication and determination of men and women in law enforcement to bring one of the world’s most notorious drug traffickers to justice.  The FBI has no tolerance for those who endanger our communities and destroy lives through drugs and violence.  We’ll continue to work day and night to find and stop those who distribute illegal substances and commit unimaginable violence.”

“On behalf of the Department of Homeland Security, I want to express my gratitude to our HSI agents and diligent law enforcement partners for their work in this monumental conviction,” said Acting Secretary of Homeland Security McAleenan.  “This sentence will send a resounding message that transnational criminal organizations all over the world are being continuously investigated and their leaders will be brought to justice.”

“After a decade long investigation, Joaquin Archivaldo Guzman Loera’s reign over the Sinaloa Cartel is over,” said HSI Executive Associate Director Benner.  “Because of the initiative and expertise of HSI special agents in New York and Phoenix working together with our law enforcement partners, ‘El Chapo’ will no longer be able to inflict violence or traffic vast amounts of illegal drugs into our communities.”

“The U.S. Marshals Service was tasked with ensuring the integrity of the judicial process in this case,” said Acting U.S. Marshal Mullee.  “It was paramount that all participants in the case could operate without undue influence or fear in a secure environment, and we accomplished that.  On behalf of the U.S. Marshals Service in the Eastern District of New York, I would like to express my gratitude to all of our law enforcement partners who worked tirelessly in support of our mission, most notably, the incredibly talented men and women of the NYPD, The Federal Protective Service (FPS), The 24th Civil Support Team of the New York National Guard and the Federal Bureau of Prisons (BOP).”

“Let today’s sentencing show the world that Joaquin ‘El Chapo’ Guzman has not escaped the American justice system and, now, will finally be held accountable for his many years of criminal behavior,” said NYPD Commissioner O’Neill.  “I want to thank the members of the DEA, the FBI, the U.S. Marshals Service, HSI, the New York State Police and the NYPD detectives on the Drug Enforcement Task Force for their hard work on this investigation and trial.”

“With this sentencing, justice has been served,” said NYSP Superintendent Corlett.  “For two decades, this individual used extreme violence, bribes, and any means necessary to bring dangerous and deadly drugs into our country and state.  This sentence should serve as a reminder that no one is above the law. I applaud our partners in law enforcement for their tireless work on this case, bringing an end to the destruction this man, and this enterprise caused for decades.”

The government’s case is being prosecuted by Assistant U.S. Attorneys Gina Parlovecchio, Michael Robotti, Patricia Notopoulos and Hiral Mehta from the Eastern District of New York; Assistant U.S. Attorneys Adam Fels, Andrea Goldbarg and Lynn Kirkpatrick from the Southern District of Florida; and Trial Attorneys Amanda Liskamm, Anthony Nardozzi, Brett Reynolds and Michael Lang of the U.S. Department of Justice Criminal Division’s Narcotic and Dangerous Drug Section.

The case was investigated by the DEA, ICE HSI and the FBI, in cooperation with Mexican, Ecuadorian, Netherlands, Dominican and Colombian law enforcement authorities.  Substantial assistance was provided by the U.S. Attorneys’ Offices in the Northern District of Illinois, Western District of Texas, Southern District of New York, Southern District of California, District of New Hampshire, District of Arizona and Eastern District of Virginia.  The Department of Justice’s Office of International Affairs of the Criminal Division played an integral role in securing the extradition of Guzman Loera to the United States, in cooperation with authorities of the Mexican government, without which his prosecution would not have been possible. The Department of Justice’s Office of Enforcement Operations assisted with the use of critical investigative and prosecution tools, including wiretaps, Special Administrative Measures, and other sensitive investigative techniques that proved essential to facilitating Guzman’s capture and successful prosecution. The investigative efforts in this case were coordinated with the Department of Justice Special Operations Division, comprising agents, analysts and attorneys from the Criminal Division’s Narcotic and Dangerous Drug Section; DEA New York; DEA Miami; FBI Washington Field Office; FBI New York Field Office; FBI Miami Field Office; HSI New York; HSI Nogales; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Marshals Service; IRS Criminal Investigation; U.S. Bureau of Prisons; NYPD and New York State Police.

This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies.  The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises. 

Joaquin Archivaldo Guzman Loera, known by various aliases, including “El Chapo” and “El Rapido,” was sentenced today by U.S. District Judge Brian M. Cogan to a life term of imprisonment plus 30 years to run consecutive to the life sentence for being a principal leader of a continuing criminal enterprise – the Mexican organized crime syndicate known as the Sinaloa Cartel – a charge that includes 26 drug-related violations and one murder conspiracy.  The Court also ordered Guzman Loera to pay $12.6 billion in forfeiture.

Guzman Loera was convicted by a federal jury on Feb. 12, 2019, following a three-month trial, of all 10 counts of the superseding indictment, including narcotics trafficking, using a firearm in furtherance of his drug crimes and participating in a money laundering conspiracy. 

The sentence was announced by Attorney General William P. Barr, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida (SDFL), U.S. Attorney Richard P. Donoghue for the Eastern District of New York (EDNY), Acting Administrator Uttam Dhillon of the U.S. Drug Enforcement Administration (DEA), Director Christopher A. Wray of the FBI, Acting Secretary Kevin McAleenan of the U.S. Department of Homeland Security, Executive Associate Director Derek Benner of U.S. Immigration and Customs Enforcement (ICE)’s Homeland Security Investigations (HSI), Acting U.S. Marshal Bryan T. Mullee of the Eastern District of New York, New York City Police Department (NYPD) Commissioner James P. O’Neill and New York State Police Superintendent Keith M. Corlett.

The evidence at trial established that Guzman Loera was a principal leader of the Sinaloa Cartel, a Mexico-based international drug trafficking organization responsible for importing and distributing more than a million kilograms of cocaine, marijuana, methamphetamine and heroin in the United States.  The evidence included testimony from 14 cooperating witnesses, including Sinaloa Cartel members Rey and Vicente Zambada, Miguel Martinez, Tirso Martinez, Damaso Lopez and Alex Cifuentes; narcotics seizures totaling over 130,000 kilograms of cocaine and heroin; weapons, including AK-47s and a rocket-propelled grenade launcher; ledgers; text messages; videos; photographs and intercepted recordings that detailed the drug trafficking activity of Guzman Loera and his co-conspirators over a 25-year period from January 1989 until December 2014.    

From the mid-1980s until his arrest in Mexico in 1993, Guzman Loera was a mid-level operative of the Sinaloa Cartel, earning a name for himself and the nickname “El Rapido” for how quickly he transported drugs from Mexico to the United States for the Colombian cartels.  After he escaped from a Mexican prison in 2001 by hiding in a laundry cart, Guzman Loera formed an alliance with fugitive co-defendant Ismael Zambada Garcia and, together, they became the preeminent leaders of the Sinaloa Cartel.  Guzman Loera enforced his will and maintained control of his drug empire through an army of lethal bodyguards and a sophisticated communications network.

The trial highlighted the methods Guzman Loera and his organization used to transport the cartel’s multi-ton shipments of narcotics into the United States, including fishing boats, submarines, carbon fiber airplanes, trains with secret compartments and transnational underground tunnels.  Once the narcotics were in the United States, they were sold to wholesale distributors in New York, Miami, Atlanta, Chicago, Arizona, Los Angeles and elsewhere.  Guzman Loera then used various methods to launder billions of dollars of drug proceeds, including bulk cash smuggling from the United States to Mexico, U.S.-based insurance companies, reloadable debit cards and numerous shell companies, including a juice company and a fish flour company.

Guzman Loera and his organization relied upon violence to maintain its power throughout the region and beyond.  Numerous co-conspirators testified that Guzman Loera directed his hitmen to kidnap, interrogate, torture and slaughter members of rival drug organizations, at times carrying out acts of violence himself.  As part of its arsenal, the Sinaloa Cartel had access to weapons, including grenades and a rocket-propelled grenade launcher.  Guzman Loera’s personal arsenal included a gold plated AK-47 and three diamond-encrusted .38 caliber handguns, one emblazoned with his initials, “JGL.” 

Guzman Loera and his organization also relied on a vast network of corrupt government officials and employees to protect and further the interests of the Sinaloa Cartel.  They included local law enforcement officers, prison guards, high-ranking members of the armed forces and elected office holders.  In exchange, the Cartel paid these individuals millions of dollars in bribes. 

“The long road that brought ‘El Chapo’ Guzman Loera to a United States courtroom is lined with drugs, death, and destruction, but ends today with justice,” said Assistant Attorney General Benczkowski.  “Thanks to the unflagging efforts of the Department of Justice and the law enforcement community over the past 25 years, this notorious leader of one of the largest drug trafficking organizations in the Western hemisphere, the Sinaloa Cartel, will spend the rest of his life behind bars.”

“The life sentence imposed today is the only just result for someone who spent a lifetime spreading his poison throughout our country,” said SDFL U.S. Attorney Fajardo Orshan.  “The impact of keeping former Sinaloa Cartel leader Joaquin Guzman Loera behind bars, for the rest of his life, cannot be overstated: the world will now be shielded from his brutality.  Thanks to the unyielding efforts of this team, the public was finally able to see how Guzman Loera used any means necessary to control his ruthless empire, including kidnapping, corruption, torture, and murder.  Our U.S. Attorney’s Offices continue to stand shoulder to shoulder with our domestic and foreign law enforcement partners to protect our citizens from the scourge of illicit drugs.”

“Guzman Loera’s day of reckoning has finally come,” said EDNY U.S. Attorney Donoghue.  “Never again will he pour poison into our country, or make millions as innocent lives are lost.  We cannot undo the violence, misery and devastation inflicted on countless individuals and communities as result of his organization’s sale of tons of illegal drugs for more than two decades, but we can ensure that he spends every minute of every day in prison.  The same fate awaits those who would take his place.  I thank the brave members of law enforcement, here and abroad, for their tireless efforts that have finally secured justice in this case.”

“This sentencing shows the world that no matter how protected or powerful you are, DEA will ensure that you face justice,” said DEA Acting Administrator Dhillon.  “This result would not have been possible without the dedication and determination of so many brave men and women of the DEA, who worked tirelessly to see the world’s most dangerous, prolific drug trafficker behind bars in the United States.  This is a huge victory for the rule of law, for thousands of current and retired DEA agents and analysts worldwide, and for all of our law enforcement partners here, in Mexico, and across the globe.”

“Today’s sentencing is the culmination of years of effort from numerous local, state, federal, and international partners,” said FBI Director Wray.  “It highlights the dedication and determination of men and women in law enforcement to bring one of the world’s most notorious drug traffickers to justice.  The FBI has no tolerance for those who endanger our communities and destroy lives through drugs and violence.  We’ll continue to work day and night to find and stop those who distribute illegal substances and commit unimaginable violence.”

“On behalf of the Department of Homeland Security, I want to express my gratitude to our HSI agents and diligent law enforcement partners for their work in this monumental conviction,” said Acting Secretary of Homeland Security McAleenan.  “This sentence will send a resounding message that transnational criminal organizations all over the world are being continuously investigated and their leaders will be brought to justice.”

“After a decade long investigation, Joaquin Archivaldo Guzman Loera’s reign over the Sinaloa Cartel is over,” said HSI Executive Associate Director Benner.  “Because of the initiative and expertise of HSI special agents in New York and Phoenix working together with our law enforcement partners, ‘El Chapo’ will no longer be able to inflict violence or traffic vast amounts of illegal drugs into our communities.”

“The U.S. Marshals Service was tasked with ensuring the integrity of the judicial process in this case,” said Acting U.S. Marshal Mullee.  “It was paramount that all participants in the case could operate without undue influence or fear in a secure environment, and we accomplished that.  On behalf of the U.S. Marshals Service in the Eastern District of New York, I would like to express my gratitude to all of our law enforcement partners who worked tirelessly in support of our mission, most notably, the incredibly talented men and women of the NYPD, The Federal Protective Service (FPS), The 24th Civil Support Team of the New York National Guard and the Federal Bureau of Prisons (BOP).”

“Let today’s sentencing show the world that Joaquin ‘El Chapo’ Guzman has not escaped the American justice system and, now, will finally be held accountable for his many years of criminal behavior,” said NYPD Commissioner O’Neill.  “I want to thank the members of the DEA, the FBI, the U.S. Marshals Service, HSI, the New York State Police and the NYPD detectives on the Drug Enforcement Task Force for their hard work on this investigation and trial.”

“With this sentencing, justice has been served,” said NYSP Superintendent Corlett.  “For two decades, this individual used extreme violence, bribes, and any means necessary to bring dangerous and deadly drugs into our country and state.  This sentence should serve as a reminder that no one is above the law. I applaud our partners in law enforcement for their tireless work on this case, bringing an end to the destruction this man, and this enterprise caused for decades.”

The government’s case is being prosecuted by Assistant U.S. Attorneys Adam Fels, Andrea Goldbarg and Lynn Kirkpatrick from the Southern District of Florida; Assistant U.S. Attorneys Gina Parlovecchio, Michael Robotti, Patricia Notopoulos and Hiral Mehta from the Eastern District of New York; and Trial Attorneys Amanda Liskamm, Anthony Nardozzi, Brett Reynolds and Michael Lang of the U.S. Department of Justice Criminal Division’s Narcotic and Dangerous Drug Section.

The case was investigated by the DEA, ICE HSI and the FBI, in cooperation with Mexican, Ecuadorian, Netherlands, Dominican and Colombian law enforcement authorities.  Substantial assistance was provided by the U.S. Attorneys’ Offices in the Northern District of Illinois, Western District of Texas, Southern District of New York, Southern District of California, District of New Hampshire, District of Arizona and Eastern District of Virginia.  The Department of Justice’s Office of International Affairs of the Criminal Division played an integral role in securing the extradition of Guzman Loera to the United States, in cooperation with authorities of the Mexican government, without which his prosecution would not have been possible.  The investigative efforts in this case were coordinated with the Department of Justice Special Operations Division, comprising agents, analysts and attorneys from the Criminal Division’s Narcotic and Dangerous Drug Section; DEA New York; DEA Miami; FBI Washington Field Office; FBI New York Field Office; FBI Miami Field Office; HSI New York; HSI Nogales; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Marshals Service; IRS Criminal Investigation; U.S. Bureau of Prisons; NYPD and New York State Police.

This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies.  The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.

Four Port Everglades employees, William Woessner, 68, of Margate, Florida, David Moore, 43, of Pompano Beach, Florida, John McGahee, 43, of Davie, Florida, and Rajindra Lallharry, 60, of Coral Springs, Florida, and business owner Bryan Zascavage, 57, of Pompano, Florida, were each charged in an one-count Information with Conspiracy to Commit Fraud Concerning Programs Receiving Federal Funds, in violation of Title 18, United States Code, Section 371.         

            Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.      

As set forth in the charging documents, Woessner, Moore, McGahee, and Lallharry were employees of Port Everglades (U.S. v. Moore, Case No. 19-60206-Ungaro; U.S. v. Woeesner, Case No. 19-60202-Altman; U.S. v. McGahee, Case No. 19-60204-Smith; and U.S. v. Lallharry, Case No. 19-60205-Dimitrouleas).  They were issued purchase cards or P-cards, which were to be used to buy goods and services for Port Everglades.  Instead, they utilized the P-cards to engage in schemes to illegally profit from the use of the cards.

            Zascavage operated a business, Z & Z, Inc., that provided goods and services to the Port (U.S. v. Zascavage, Case No. 19-60203-Ungaro).  Woessner and Zascavage engaged in a scheme wherein Woessner would direct Zascavage to purchase certain goods.  Woessner would pay for the goods using his Port Everglades P-card, but the goods were not sent to Port Everglades.  Instead, Woessner utilized the goods at his plumbing company. 

            Moore and Zascavage engaged in a scheme wherein Zascavage would receive payments for goods ordered by Moore utilizing his Port Everglades P-card.  None of the goods would be sent to the Port.  Zascavage and Moore would split the illegally obtained funds.

            McGahee and Zascavage engaged in a scheme wherein Zascavage would receive payments for services ordered by McGahee utilizing his Port Everglades P-card.   The services ordered by McGahee would not be performed by Zascavage or his company.   Zascavage and McGahee would split the illegally obtained funds.

            Lallharry’s family owned five separate companies.  Lallharry would utilize his P-card to make direct payments to each of the family-owned companies for goods to allegedly be utilized by the Port.  The goods were not delivered to the Port.  The illegally obtained funds were utilized by Lallharry and his family to pay personal expenses, including approximately $101,790.85 to pay monthly expenses due the Chapter 13 trustee overseeing Lallharry’s bankruptcy.

            Woessner, Moore, McGahee, Lallharry, and Zascavage each face a statutory maximum term of 5 years’ imprisonment and a fine of the greater of $250,000 or twice the amount of the gross gain or the gross loss.

An Information is only an accusation and a defendant is presumed innocent unless and until proven guilty. 

            U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI in connection with this matter. She also thanked the Broward County Sheriff's Office - Public Corruption Unit, Office of the Broward County Auditors, and Port Everglades Department - Port Director's Office for their assistance with the investigation. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.

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.

A Hillsborough County resident pled guilty to all counts of a Superseding Indictment charging him with armed robbery of the Ocean Five Hotel on South Beach, discharging a firearm at a Miami Beach Police Department officer while fleeing after the robbery, and unlawfully possessing a firearm and ammunition as a previously convicted felon.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Ari C. Shapira, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, and Richard M. Clements, Chief, City of Miami Beach Police Department, made the announcement. 

According to the court record, including the stipulated factual proffer, on March 8, 2019, Terence Wendell Daniely II, 34, robbed the valet attendant at the Ocean Five Hotel on South Beach using a 9mm caliber pistol.  Daniely’s possession of this pistol was illegal, as he had previously been convicted of numerous felony offenses, narcotics distribution, carrying a firearm in connection with narcotics distribution, and unlawful possession of a firearm by a convicted felon.  Following the armed robbery of the Ocean Five Hotel, a Miami Beach Police Department officer spotted Daniely fleeing in a white Dodge Challenger.  As this officer approached, Daniely discharged his pistol from within his moving vehicle in the direction of the officer, shattering the windshield of Daniely’s vehicle.  Daniely then instigated a high-sped car chase, recklessly driving and leading officers across the MacArthur Causeway and into the City of Miami.  Daniely crashed his car near Overtown and fled foot.  A perimeter was established and, several hours later, the Defendant was ultimately located hiding in a shed in the backyard of a private residence. 

Sentencing is scheduled for October 22, 2019, at 10:30 a.m., before U.S. District Judge Donald M. Middlebrooks.  Daniely faces up to life imprisonment and a mandatory minimum sentence of 10 years imprisonment at sentencing.

U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI, ATF, and Miami Beach Police Department in this matter.  The case is being prosecuted by Assistant U.S. Attorney Michael B. Homer.

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.

The United States today extradited Andres Felipe Arias Leiva, who served as Colombia’s Minister of Agriculture and Rural Development from 2005 to 2009, to face a prison sentence in that country based on a 2014 conviction by the Supreme Court of Colombia for two offenses committed while Arias served in public office.

U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida and Assistant Attorney General Brian A. Benczkowski of the U.S. Department of Justice’s Criminal Division made the announcement.

“Assistant U.S. Attorneys for the Southern District of Florida, alongside attorneys for the Department’s Office of International Affairs, have worked hard to ensure that former Colombian government official Andres Arias would be extradited back to his home country to serve a sentence imposed by that nation’s highest court,” said U.S. Attorney Fajardo Orshan.  “We are grateful to the dedication of Assistant U.S. Attorney Robert J. Emery and Associate Director Christopher J. Smith and Trial Attorney Rebecca A. Haciski of the Criminal Division’s Office of International Affairs of the U.S. Department of Justice for their work in making this possible. Our Office is committed to upholding the rule of law and ensuring that justice is appropriately carried out for all parties.”

“Andres Arias’s extradition is a testament to the United States’ commitment to our extradition treaty obligations and the strength of our law enforcement partnership with Colombia,” said Assistant Attorney General Benczkowski.  “I thank the team from the Office of International Affairs and the U.S. Attorney’s Office for the Southern District of Florida for their tireless, years-long efforts to ensure that Arias serves his prison sentence in Colombia.”

Arias, a citizen of Colombia who entered the United States in 2014 and was residing in Weston, Florida, was convicted on July 16, 2014, by the Criminal Cassation Division of the Supreme Court of Colombia on two offenses, Embezzlement for Third Parties, in violation of Article 397 of the Colombian Criminal Code, and Conclusion of Contract Without Fulfilling Legal Requirements, in violation of Article 410 of the same code.  Arias was present and represented by counsel at his trial in Colombia, and following his conviction, the Colombian court sentenced him to serve 209 months in prison.  As detailed in the 193-page decision issued by the Supreme Court of Colombia, Arias’s criminal conduct related to the diversion of funds within the Colombian government’s Argo Ingreso Seguro program, which he was responsible for implementing during his term as Minister of Agriculture and Rural Development, a cabinet-level position in Colombia’s executive branch, from 2005 to 2009.  

The United States acted on a request for Arias’s extradition submitted by the Republic of Colombia, which Arias vigorously contested in both the Southern District of Florida and the U.S. Court of Appeals for the Eleventh Circuit.  On Sept. 28, 2017, a U.S. magistrate judge in the Southern District of Florida ruled that Arias could be extradited to Colombia to serve the sentence based on his conviction.  Arias then filed a petition for a writ of habeas corpus, which the district court for the Southern District of Florida denied on Oct. 5, 2018.  Arias appealed that decision to the Eleventh Circuit.  Following extensive briefing and argument, the litigation culminated on July 8, 2019, when the court of appeals rejected Arias’s arguments against extradition.  Consistent with the views of the U.S. Department of State and 40 years of extradition practice between the United States and Colombia, the court of appeals affirmed that the extradition treaty between the two countries remains in full force and effect.

Following a thorough review of Arias’s case, the Department of State issued a warrant ordering Arias’s surrender to Colombian authorities.  Today, the U.S. Marshals Service executed that warrant, transported Arias to Colombia, and delivered him to the custody of Colombian authorities.  Arias’s extradition is now complete.

The extradition proceedings and subsequent appellate litigation were handled by Associate Director Christopher J. Smith and Trial Attorney Rebecca A. Haciski of the Criminal Division’s Office of International Affairs, and Assistant U.S. Attorneys Robert J. Emery and Emily M. Smachetti of the Southern District of Florida with the support of myriad attorneys and international affairs specialists in the Office of International Affairs of the Department’s Criminal Division.

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.

The United States today extradited Andres Felipe Arias Leiva, who served as Colombia’s Minister of Agriculture and Rural Development from 2005 to 2009, to face a prison sentence in that country based on a 2014 conviction by the Supreme Court of Colombia for two offenses committed while Arias served in public office.

Assistant Attorney General Brian A. Benczkowski of the U.S. Department of Justice’s Criminal Division and U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida made the announcement.

“Andres Arias’s extradition is a testament to the United States’ commitment to our extradition treaty obligations and the strength of our law enforcement partnership with Colombia,” said Assistant Attorney General Benczkowski.  “I thank the team from the Office of International Affairs and the U.S. Attorney’s Office for the Southern District of Florida for their tireless, years-long efforts to ensure that Arias serves his prison sentence in Colombia.”

“Assistant U.S. Attorneys for the Southern District of Florida, alongside attorneys for the Department’s Office of International Affairs, have worked hard to ensure that former Colombian government official Andres Arias would be extradited back to his home country to serve a sentence imposed by that nation’s highest court,” said U.S. Attorney Fajardo Orshan.  “We are grateful to the dedication of Assistant U.S. Attorney Robert J. Emery and Associate Director Christopher J. Smith and Trial Attorney Rebecca A. Haciski of the Criminal Division’s Office of International Affairs of the U.S. Department of Justice for their work in making this possible. Our Office is committed to upholding the rule of law and ensuring that justice is appropriately carried out for all parties.”

Arias, a citizen of Colombia who entered the United States in 2014 and was residing in Weston, Florida, was convicted on July 16, 2014, by the Criminal Cassation Division of the Supreme Court of Colombia on two offenses, Embezzlement for Third Parties, in violation of Article 397 of the Colombian Criminal Code, and Conclusion of Contract Without Fulfilling Legal Requirements, in violation of Article 410 of the same code.  Arias was present and represented by counsel at his trial in Colombia, and following his conviction, the Colombian court sentenced him to serve 209 months in prison.  As detailed in the 193-page decision issued by the Supreme Court of Colombia, Arias’s criminal conduct related to the diversion of funds within the Colombian government’s Argo Ingreso Seguro program, which he was responsible for implementing during his term as Minister of Agriculture and Rural Development, a cabinet-level position in Colombia’s executive branch, from 2005 to 2009.  

The United States acted on a request for Arias’s extradition submitted by the Republic of Colombia, which Arias vigorously contested in both the Southern District of Florida and the U.S. Court of Appeals for the Eleventh Circuit.  On Sept. 28, 2017, a U.S. magistrate judge in the Southern District of Florida ruled that Arias could be extradited to Colombia to serve the sentence based on his conviction.  Arias then filed a petition for a writ of habeas corpus, which the district court for the Southern District of Florida denied on Oct. 5, 2018.  Arias appealed that decision to the Eleventh Circuit.  Following extensive briefing and argument, the litigation culminated on July 8, 2019, when the court of appeals rejected Arias’s arguments against extradition.  Consistent with the views of the U.S. Department of State and 40 years of extradition practice between the United States and Colombia, the court of appeals affirmed that the extradition treaty between the two countries remains in full force and effect.

Following a thorough review of Arias’s case, the Department of State issued a warrant ordering Arias’s surrender to Colombian authorities.  Today, the U.S. Marshals Service executed that warrant, transported Arias to Colombia, and delivered him to the custody of Colombian authorities.  Arias’s extradition is now complete.

The extradition proceedings and subsequent appellate litigation were handled by Associate Director Christopher J. Smith and Trial Attorney Rebecca A. Haciski of the Criminal Division’s Office of International Affairs, and Assistant U.S. Attorneys Robert J. Emery and Emily M. Smachetti of the Southern District of Florida with the support of myriad attorneys and international affairs specialists in the Office of International Affairs of the Department’s Criminal Division.

 

After a lengthy investigation into the criminal conduct of various street gangs operating in and around Miami Gardens, Florida, a federal grand jury indicted 22 people in Miami on charges that include drug trafficking, armed drug trafficking, dealing in firearms, and firearm possession by convicted felons.  Some of the defendants are members and known associates of the Zone 3 gang, a Miami Gardens based gang.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, George L. Piro, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Miami Field Office, Delma Noel-Pratt, Chief of the City of Miami Gardens Police Department, and Gadyaces S. Serralta, U.S. Marshal for the U.S. Marshals Service (USMS) Miami Field Office, made the announcement. 

Today’s operation involved approximately 200 federal and local law enforcement officers.  During the course of the operation, law enforcement officers arrested 17 of the 22 indicted defendants and seized over 40 firearms, approximately 220 rounds of assorted ammunition, cash, cocaine, crack, heroin, fentanyl, Alprazolam, marijuana, other drugs, and drug paraphernalia.

“As demonstrated by these charges and the arrests this morning, our commitment to combatting violent crime and drug trafficking in the City of Miami Gardens is unrelenting,” said U.S. Attorney Ariana Fajardo Orshan.  “Thanks to the collaboration of federal and local law enforcement, the armed sale of drugs and firearms by these Zone 3 gang members and associates in the City of Miami Gardens has come to an end.  We will continue to use all the tools at our disposal to combat violence, drug distribution, and the illegal sale and possession of firearms to ensure safety in our communities.”

“Today is truly a good day for our community, parts of which that have been terrorized by this group of violent individuals who have long-created chaos within the City of Miami Gardens.  I am proud of our partnerships to include the Miami Gardens Police Department.  This collaboration has led to the seizure of considerable evidence against this group to include more than 40 firearms,” said Special Agent in Charge Ari Shapira, ATF, Miami Field Division.  As we all know, even one firearm in the wrong hands can destroy countless lives.  This investigation proves that collaboration works, and demonstrates our commitment to combat gun violence and improve the communities of South Florida.  We all want our communities in South Florida to be filled with the sounds of happy children playing outside, not the noise of stray gunfire that strikes fear in the hearts of parents.  The people in Miami Gardens deserve no less.”

“Drug dealing and violent crime associated with gang activity have an insidious impact on our communities.  They take a toll on our citizens through street violence, increased law breaking, and addiction.  The vicious armed gangs pushing this poison into the streets tear apart the fabric of our communities,” said Scott A. Rottman, Assistant Special Agent in Charge, FBI Miami.  “It is a complex problem that requires effective partnerships between law enforcement agencies at the local, state and federal level.  Our combined efforts aim to disrupt and dismantle the criminal organizations involved in the illegal drug trade.  Removing drug traffickers and violent gang members from the streets means they can no longer threaten the health and safety of our communities.  We will continue to target these criminal organizations and their violent activities to ensure they are held responsible for the harm they cause.”

“I’m extremely proud of the hard work and dedication of my lead detectives, as well as other departmental personnel.  As a result of the strong partnerships that have been established with our federal, state and local partners, we are able to bring this case to a successful conclusion, said Miami Gardens Police Department Chief Delma Noel-Pratt.  “This case reaffirms the Miami Gardens Police Department’s commitment to building a safer community.” 

“Today, in Miami Gardens, the strong partnership between police officers and federal agents resulted in a successful operation that makes the City of Miami Gardens safer,” said Chief Deputy Darin D. Cooper for the U.S. Marshals Service.  “We remain committed to combatting violent crime.”

“Today is a win for residents of Miami Gardens, South Florida, as well as the many law enforcement agencies that worked together to say collectively, we will not tolerate crimes of any nature,” says Mayor Oliver Gilbert. “We are thankful to everyone involved in this operation and for the collaboration with agencies like the ATF, FBI and DOJ who provided access to expanded resources during the course of this investigation. Our combined efforts and activities have resulted in dangerous individuals, drugs, and illegal guns being taken off our streets.”

THE INDICTMENTS:

(1) United States of America v. Ernest Renard Smith, et al., Case No. 19-20415-CR-Gayles/Otazo-Reyes.

The first indictment, containing 21 counts, names: Ernest Renard Smith (“E. Smith”), 35; Ernest Smith, Jr. (“E. Smith Jr.”), 62; Thaddeus Auguast Smith, Jr. (“T. Smith”), 28; Denico Lynden Dudley McSweeney (“McSweeney”), 30; and Ivan Lewis Harris (“Harris”), 38, all of Miami Gardens.  According to the indictment, from at least as early as May 2018, and continuing through January 29, 2019, the defendants engaged in a conspiracy to possess with intent to distribute heroin, crack cocaine, marijuana, and ecstasy.  E. Smith, E. Smith Jr., T. Smith, and Harris each face up to 20 years in prison if convicted on the conspiracy count.  McSweeney faces up to 40 years in prison if convicted on the conspiracy count. 

The first indictment also charges E. Smith with seven counts of possession with intent to distribute a controlled substance, such as heroin, crack cocaine, and/or fentanyl, three counts of dealing in firearms and ammunition, one count of possession of a firearm in furtherance of a drug trafficking crime, and three counts of being a felon in possession.  If convicted on all counts, E. Smith faces up to 20 years in prison on each count of possession with intent to distribute charge, five years in prison on each count of the dealing in firearms and ammunition charge, life imprisonment on the possession of a firearm in furtherance of a drug trafficking charge with a five year mandatory minimum term in prison on this charge, and 10 years in prison on each felon in possession charge. 

The first indictment also charges T. Smith with possession with intent to distribute a heroin.  If convicted on this count, T. Smith faces up to 10 years in prison. 

The first indictment also charges McSweeney with three counts of dealing in firearms and ammunition and four counts of possession with intent to distribute heroin.  If convicted on all counts, McSweeney faces up to five years in prison on each dealing in firearms charge, and 20 years in prison on each possession with intent to distribute charge. 

(2) United States of America v. Sonya Anita Spivey, et al., Case No. 19-20417-Altonaga/Goodman.

The second indictment, containing 10 counts, names: Sonya Anita Spivey (“S. Spivey”), 49, of Miami Gardens; Jacqueline Renee Spivey (“J. Spivey”), 53, of Miami Gardens; Janie Spivey Bryant (“J. Bryant”), 68, of Miami Gardens; Charlie Billy Herman Taylor (“Taylor”), 25, of Miami Gardens; Keno Reuben Teveris Burton (“Burton”), 31, of Miami Gardens; Tekieya Nicole Aldridge (“Aldridge”), 41, of Opa Locka; and Alton Claude Hammonds (“Hammonds”), 38, of Miami.  According to the indictment, from at least as early as August 2018, and continuing through April 11, 2019, the defendants engaged in a conspiracy to possess with intent to distribute N-Ethypentylone, Alprazolam, cocaine, crack cocaine, eutylone, and ecstasy.  The defendants face up to 20 years in prison if convicted on the conspiracy count. 

The second indictment also charges S. Spivey with seven counts of possession with intent to distribute a controlled substance, such as, N-Ethypentylone, cocaine, Alprazolam, eutylone, and marijuana. If convicted on all counts, S. Spivey faces up to 5 years in prison for the possession with intent to distribute Alprazolam count and 20 years on each remaining possession with intent to distribute charge.

The second indictment also charges J. Spivey with possession with intent to distribute a controlled substance, such as fentanyl, eutylone, and marijuana.  If convicted on this count, J. Spivey faces up to 20 years in prison. 

The second indictment also charges J. Bryant with possession with intent to distribute a controlled substance, such as fentanyl, eutylone, and marijuana.  If convicted on this count, J. Bryant faces up to 20 years in prison. 

The second indictment also charges Taylor with possession with intent to distribute Alprazolam and possession of a firearm in furtherance of a drug trafficking crime.  If convicted on both counts, Taylor faces up to five years in prison on the possession with intent to distribute count and life imprisonment on the possession of a firearm in furtherance of a drug trafficking charge with a five year mandatory minimum term in prison on this charge. 

The second indictment also charges Burton with possession with intent to distribute a controlled substance, such as cocaine, eutylone, Alprazolam, and marijuana, and possession of a firearm in furtherance of a drug trafficking crime.  If convicted on all counts, Burton faces up to 20 years in prison on the possession with intent to distribute count and life imprisonment on the possession of a firearm in furtherance of a drug trafficking charge with a five-year mandatory minimum term in prison on this charge.

(3) United States of America v. Michael Anthony Hardaway, et al., Case No. 29-20416-CR-Williams/Torres.

The third indictment, containing eight counts, names: Michael Anthony Hardaway, Jr. (“Hardaway”), 42; Clementa Leaford Johnson, Jr. (“Johnson”), 42; Eric Ransom (“Ransom”), 49; Erin Meil Williams (“Williams”), 39; and James Earl Cammon (“Cammon”), 40, all of Miami Gardens.  According to the indictment, from at least as early as October 2018, and continuing through April 11, 2019, the defendants engaged in a conspiracy to possess with intent to distribute eutylone, heroin, fentanyl, cocaine, crack cocaine, ecstasy, Percocet, and marijuana.  The defendants face up to 20 years in prison if convicted on the conspiracy count. 

The third indictment also charges Hardaway with four counts of possession with intent to distribute a controlled substance, such as heroin, fentanyl, and crack cocaine.  If convicted on all counts, Hardaway faces up to 20 years in prison on each count.

The third indictment also charges Williams with possession with intent to distribute a controlled substance, such as marijuana, crack cocaine, cocaine, eutylone, and heroin, and possession of a firearm in furtherance of a drug trafficking crime.  If convicted on all counts, Williams faces up to 20 years in prison on each possession with intent to distribute charge and life imprisonment on the possession of a firearm in furtherance of a drug trafficking charge with a five-year mandatory minimum term in prison on this charge.

The third indictment also charges Cammon with possession with intent to distribute a controlled substance, such as marijuana, crack cocaine, cocaine, eutylone, and heroin, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm.  If convicted on all counts, Cammon faces up to 20 years in prison on each possession with intent to distribute charge, life imprisonment on the possession of a firearm in furtherance of a drug trafficking charge with a five-year mandatory minimum term in prison on this charge, and 10 years in prison on the felon in possession charge. 

(4) United States of America v. Dana De Von Smith, Case No. 19-20420-CR-King/Becerra.

The fourth indictment charges Dana De Von Smith (“D. Smith”), 49, of Miami Gardens, with two counts of possession with intent to distribute cocaine.  If convicted on both counts, D. Smith faces up to 20 years in prison on each count. 

(5) United States of America v. Theothis Rogers, Case No. 19-20419-CR-Gayles/Otazo-Reyes.

The fifth indictment charges Theothis Rogers (“Rogers”), 37, of Miami Gardens, with two counts of possession with intent to distribute N-Ethylpentylone.  If convicted on both counts, Rogers faces up to 20 years in prison on each count. 

(6) United States of America v. Jason Adam Dulman, Case No. 19-20422-CR-Bloom/Louis.

The sixth indictment charges Jason Adam Dulman (“Dulman”), 40, of Dania Beach, with possession with intent to distribute heroin and use of communications facility.  If convicted on both counts, Dulman faces up to 20 years in prison on the possession with intent to distribute charge and four years in prison on the use of communications charge. 

(7) United States of America v. Anthony Maurice Smith, Case No. 19-20418-CR-Ungaro/O’Sullivan.

The seventh indictment charges Anthony Maurice Smith (“A. Smith”), 29, of Miami Gardens, with possession with intent to distribute cocaine.  If convicted, A. Smith faces up to 20 years in prison. 

(8) United States of America v. Steven Alcime, Case No. 19-20421-CR-Scola/Torres

The eighth indictment charges Steven Alcime (“Alcime”), 30, of Miami, with dealing in firearms and being a felon in possession.  If convicted on both counts, Alcime faces up to five years in prison on the firearms charge and 10 years in prison on the felon in possession charge. 

Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendants. 

Through the collaborative Southern District of Florida’s Violence Reduction Partnership (“VRP”), the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminal networks that plague communities throughout the Southern District of Florida. Through these Partnerships, the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminal networks that plague communities in Miami-Dade, Broward and Palm Beach Counties.  The VRP strives to combat violent crime, narcotics trafficking, gang activity and firearms offenses by prosecuting offenders and working with community leaders and non-profit entities to provide preventive services to the local populations.  The charges announced today are the result of the VRP’s law enforcement initiatives. Additional information regarding the VRP initiatives is available at usafls.vrp@usdoj.gov (link sends e-mail) or by calling (305) 961-9134.

The members of the VRP who participated or assisted in this investigation include the United States Attorney’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives, Miami Field Office,   Federal Bureau of Investigation, United States Marshals Service Fugitive Task Force, Miami Gardens Police Department, Miami-Dade Police Department, Miami Field Office, Miami-Dade Police Department.

This investigation, Operation End Zone, is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies.  The OCDETF mission is to identify, investigate, and prosecute high-level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.

U.S. Attorney Fajardo Orshan commended the FBI, ATF, City of Miami Gardens Police Department, and USMS for their dedicated efforts to combat violent crime and drug trafficking in South Florida.  She thanked the Miami-Dade Police Department for their assistance.  These cases are being prosecuted by Assistant U.S. Attorneys Rilwan Adeduntan and Stephanie Hauser.  Assistant U.S. Attorney William Zloch is handling the forfeiture aspects of this case.

An indictment is a charging instrument containing allegations. Every defendant is presumed innocent unless and 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 on http://pacer.flsd.uscourts.gov.

Tentlogix, Inc., a Florida corporation headquartered in Fort Piece, Florida and three of its corporate officers, Gary Hendry, Dennis Birdsall and Kent Hughes of Martin County, have been charged by indictment with conspiring to conceal and harbor aliens for the purpose of commercial advantage.  Hendry and Birdsall are also charged with making false statements to a federal agency. 

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Anthony Salisbury, Special Agent in Charge for U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.

According to the indictment, beginning as early as January 2016, and continuing through March 2018, TentLogix, Hendry, and Birdsall recruited and employed aliens to work for TentLogix knowing and in reckless disregard of the fact that many of the aliens had entered and remained in the United States unlawfully, and were not authorized to work in the United States (Case No. 19-14035-CR-ROSENBERG/MAYNARD).  During the course of the conspiracy, a large portion of TentLogix’s workforce in the Southern District of Florida was comprised of aliens who were not authorized to work in the United States.  While TentLogix was being investigated by HSI, Hendry, Birdsall, and Hughes devised a scheme to “transfer” the aliens employed by TentLogix to KH Services, LLC, a company owned by Hughes, so that they no longer appeared on TentLogix’s payroll.  Hughes formed KH Services, LLC for the sole purpose of concealing, harboring, and shielding the aliens employed by TentLogix from HSI’s investigation.  Birdsall directed wire transfers to be sent from TentLogix’s bank account to KH Services, LLC’s bank account on a bi-weekly basis to cover the payroll expenses for the aliens who worked for TentLogix but were purportedly employed by KH Services, LLC.  Between May 2017 and March 2018, TentLogix transferred over $3,000,000 to KH Services, LLC in 23 separate wire transfers for the express purpose of paying aliens employed by TentLogix who were not authorized to work in the United States.

The indictment further alleges that in 2016, TentLogix generated more than $21,000,000 in gross receipts and $10,000,000 in gross profit from its business operations.  In 2017, Tentlogix allegedly generated more than $36,000,000 in gross receipts and $14,000,000 in gross profit from its business operations.  During the course of the conspiracy, a large portion of Tentlogix’s workforce in the Southern District of Florida was comprised of aliens who were not authorized to work in the United States. 

If convicted of the conspiracy charge, Hendry, Birdsall, and Hughes face up to 10 years in prison and a maximum fine of $250,000 or twice the loss or twice the gain caused by the offense.  TentLogix faces a maximum fine of $500,000 or twice the loss or twice the gain caused by the offense. If convicted of making false statements to a federal agency, Hendry and Birdsall face up to 5 years in prison and a maximum fine of $250,000 or twice the loss or twice the gain caused by the offense.

An indictment merely contains allegations.  A defendant is presumed innocent unless and until proven guilty in a court of law.

U.S. Attorney Fajardo Orshan commended the investigative efforts of HSI in this matter.  This case is being prosecuted by Assistant U.S. Attorney Michael D. Porter.

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.

A Palm Beach County resident was arrested on July 11, 2019, based on a complaint charging him with conspiracy to violate and attempted violations of the Arms Export Control Act (AECA) and International Traffic in Arms Regulations (ITAR) (18 U.S.C.  371 and 22 U.S.C.  2778). 

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI), Miami Field Office, made the announcement. 

Cristian German Barrera, 47, was charged with conspiracy to violate the AECA and ITAR, and attempts to illegally export to Argentina defense articles, specifically, parts and components for AR-15 assault rifles, which were smuggled across international borders by a transnational weapons trafficking group in Argentina.  He had an initial appearance before U.S. Magistrate Judge Jacqueline Becerra. 

According to the complaint and other court documents, Barrera illegally exported without a required license from the U.S. Department of State, to the Argentine weapons trafficking organization, hundreds of AR-15 assault rifle parts.  The investigative efforts of HSI agents in the Miami Field Office along with HSI agents stationed in Argentina, and their proactive cooperation with Argentine law enforcement officials between October and December 2019, led to the execution of search warrants in Florida and Argentina that resulted in the seizure of the equivalent of 52 AR-15 assault rifles in Florida and in Argentina: 189 long arms, 156 handguns, one mortar round, one hand grenade, over 30,000 rounds of assorted caliber ammunition, five vehicles, and $110,000 in cash.  On June 26, 2019, Argentina’s National Gendarmeria conducted an operation that led to the arrest of additional subjects and the seizure of thousands of firearms and explosive materials.

            U.S. Attorney Fajardo Orshan commended the investigative efforts of HSI, U.S. Customs and Border Protection and the U.S. Postal Inspection Service.  The case is being prosecuted by Assistant U.S. Attorney Rick Del Toro and Trial Attorney Evan Turgeon of the Counterintelligence and Export Control Section of the Department of Justice’s National Security Division.

A complaint is merely an allegation. Every defendant is presumed innocent unless and 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 on http://pacer.flsd.uscourts.gov.

A former employee of the United States Army Corps of Engineers pled guilty to making false statements to law enforcement agents.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Colonel Andrew D. Kelly, Jr., Jacksonville District Commander, U.S. Army Corps of Engineers, Cyndy A. Bruce, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), Southeast Field Office, Manny Antonaras, Deputy Special Agent in Charge, National Oceanographic and Atmospheric Administration (NOAA), Southeast Office of Enforcement, Andres Castro, Special Agent in Charge, Environmental Protection Agency Criminal Investigations Division (EPA- CID), Atlanta Area Office, and Frank Robey, Director, U.S. Army Criminal Investigation Command Major Procurement Fraud Unit (MPFU), made the announcement. 

            Tracey Jordan Sellers, 49, of Duval County, pled guilty to an Information containing one count of making a false official statement to federal law enforcement agents, in violation of 18 U.S.C. § 1001(a)(2).  Sellers faces a maximum statutory penalty of five years and is scheduled to be sentenced by U.S. District Judge Cecilia M. Altonaga on September 19, 2019, in Miami.

“Tracey Jordan Sellers’s conduct undermined the integrity of the U.S. Army Corps of Engineers,” said U.S. Attorney Fajardo Orshan.  “Together with our partner law enforcement agencies, we remain committed to defending the institutions of federal government.”

“We take this matter very seriously,” said Col. Andrew D. Kelly.  “We have assisted the U.S. Attorney’s Office and federal investigators throughout their investigation.  The defendant is no longer employed with the Corps.  Her actions are not representative of the Corps and its values.  Such conduct is never tolerated.”

            According to the criminal Information and Joint Factual Statement filed with the Court, Sellers was a civilian employee of the U.S. Army Corps of Engineers’ Jacksonville District.  A biologist, Sellers coordinated and advised on environmental issues related to Army Corps projects.  Part of her responsibilities included planning and coordinating environmental requirements related to Army Corps projects and reviewing products from environmental consulting companies.   

Federal ethics laws and regulations prohibit federal employees from engaging in outside employment that conflicts with employees’ official duties.  From 2014 through February 8, 2019, while employed with the Army Corps, Sellers violated these laws and regulations by engaging in outside employment with a consulting company despite being part of a team that oversaw that company’s work for the Army Corps in relation to large dredging projects in South Florida.   

In secret from her colleagues and management at the Army Corps, Sellers accepted offers of part-time employment from the consulting company.  In November 2014, in October 2018, and in January 2019, the consulting company offered Sellers part-time work on three different projects with the company.  Sellers accepted the offers from the consulting company, provided them her resume, entered into an independent consulting contract with them, and performed work on the projects for them.  In an interview occurring in February 2019, Sellers falsely and willfully misled federal agents about her outside involvement with the consulting company.  One of those false statements comprises the offense in the criminal Information. 

Sellers no longer works for the Army Corps.

“Sellers ignored her oath and instead pursued personal profit from the same contractor whose work she reviewed,” said Cyndy Bruce Special Agent in Charge of the Defense Criminal Investigative Service, Southeast Field Office.  “DCIS and its law enforcement partners are committed to strike against those who undermine and jeopardize the integrity of the DoD’s procurement process.”

“Ms. Sellers not only violated federal ethics laws but also the trust and confidence the U.S. Army places in our soldiers, civilian employees and contractors,” said Frank Robey, the director of the Major Procurement Fraud Unit for the U.S. Army Criminal Investigation Command.  “The work that our Army does on a daily basis is vital to the success and security of our nation.  Anyone who violates that trust by committing criminal acts will be fully investigated by our agents and our fellow law enforcement professionals.”

“Federal employees who oversee the environmental compliance of government contractors must be free of any conflicts of interest,” said Andres Castro, Special Agent in Charge of EPA’s criminal enforcement program in Florida. “This case shows that EPA and our federal partners are committed to protecting the integrity of federal contracts and safeguarding our nation’s natural resources.”

            U.S. Attorney Fajardo Orshan commended the investigative efforts of the DCIS, NOAA, EPA-CID, and the MPFU.  U.S. Attorney Fajardo Orshan also thanked the U.S. Army Corps of Engineers for its assistance.  This case is being prosecuted by Assistant U.S. Attorney Jaime Raich.

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.

WASHINGTON - Estados Unidos extraditó hoy a Andrés Felipe Arias Leiva, quien fue Ministro de Agricultura y Desarrollo Rural de Colombia de 2005 a 2009, para enfrentar una sentencia de prisión en ese país basada en una condena del 2014 por la Corte Suprema de Colombia por dos delitos cometidos mientras Arias desempeñaba un cargo público. 

El Asistente del Fiscal General Brian A. Benczkowski de la División de lo Penal del Departamento de Justicia de Estados Unidos y la Fiscal Ariana Fajardo Orshan del Distrito Sur de Florida hicieron el anuncio. 

“La extradición de Andrés Arias es un testimonio del compromiso de Estados Unidos con las obligaciones de nuestro tratado de extradición y la fortaleza de nuestra cooperación con Colombia para hacer cumplir la ley,” dijo el Asistente del Fiscal General Benczkowski. “Agradezco al equipo de la Oficina de Asuntos Internacionales y a la Fiscalía General de Estados Unidos para el Distrito Sur de Florida por sus incansables esfuerzos durante años para asegurar que Arias cumpla su condena en Colombia.”

“Los fiscales federales adjuntos para el Distrito Sur de Florida, junto con los abogados de la Oficina de Asuntos Internacionales del Departamento, han trabajado arduamente para asegurar que el ex funcionario del gobierno colombiano Andrés Arias sea extraditado de regreso a su país de origen para cumplir una sentencia impuesta por el más alto tribunal de esa nación,” dijo la Fiscal Federal Fajardo Orshan. “Estamos agradecidos por la dedicación del Fiscal Federal Auxiliar de Estados Unidos Robert J. Emery y el Director Asociado Christopher J. Smith y la Procuradora de Primera Instancia Rebecca A. Haciski de la Oficina de Asuntos Internacionales de la División de lo Penal del Departamento De Justicia por su trabajo para hacer que esto sea posible.  Nuestra Oficina se compromete a defender el estado de derecho y garantizar que se haga justicia de manera adecuada para todas las partes.” 

Arias, ciudadano de Colombia que ingresó a los Estados Unidos en 2014 y residía en Weston, Florida, fue condenado el 16 de julio de 2014 por la División de Casación Penal de la Corte Suprema de Justicia de Colombia por dos delitos, peculado por apropiación a favor de terceros, en violación del artículo 397 del Código Penal colombiano y celebración de contratos sin el cumplimiento de los requisitos legales, en violación del artículo 410 del mismo código. Arias estuvo presente y representado por un abogado en su juicio en Colombia y, tras su condena, el tribunal colombiano lo condenó a cumplir 209 meses de prisión. Como se detalla en la decisión de 193 páginas emitida por la Corte Suprema de Justicia de Colombia, la conducta delictiva de Arias se relacionó con el desvío de fondos dentro del programa Argo Ingreso Seguro del gobierno colombiano, que fue responsable de implementar durante su mandato como Ministro de Agricultura y Desarrollo Rural, un cargo a nivel de gabinete en el poder ejecutivo de Colombia, desde 2005 hasta 2009. 

Estados Unidos respondió a una solicitud de extradición de Arias presentada por la República de Colombia, que Arias impugnó enérgicamente tanto en el Distrito Sur de Florida como en el Tribunal de Apelaciones de Estados Unidos para el Undécimo Circuito. 

El 28 de septiembre de 2017, un juez magistrado de EE. UU. en el Distrito Sur de Florida dictaminó que Arias podría ser extraditado a Colombia para cumplir la sentencia basándose en su condena. Luego, Arias presentó una petición de recurso de habeas corpus, que el tribunal de distrito para el Distrito Sur de Florida denegó el 5 de octubre de 2018. Arias apeló esa decisión ante el Undécimo Circuito. Tras una extensa sesión informativa y argumentativa, el litigio culminó el 8 de julio de 2019, cuando el tribunal de apelaciones rechazó los argumentos de Arias contra la extradición. De acuerdo con las opiniones del Departamento de Estado de EE. UU. y los 40 años de práctica de extradición entre Estados Unidos y Colombia, el tribunal de apelaciones afirmó que el tratado de extradición entre los dos países sigue en plena vigencia. 

Luego de una revisión exhaustiva del caso de Arias, el Departamento de Estado emitió una orden para la entrega de Arias a las autoridades colombianas. Hoy, el Servicio de Alguaciles de Estados Unidos ejecutó esa orden, transportó a Arias a Colombia y lo entregó a la custodia de las autoridades colombianas. La extradición de Arias se da por finalizada.

Los procedimientos de extradición y el subsiguiente litigio de apelación fueron manejados por el Director Asociado Christopher J. Smith y la Procuradora de Primera Instancia Rebecca A. Haciski de la Oficina de Asuntos Internacionales de la División de lo Penal, y los Fiscales Federales Auxiliares Robert J. Emery y Emily M. Smachetti del Distrito Sur de Florida con el apoyo de innumerables abogados y especialistas en asuntos internacionales en la Oficina de Asuntos Internacionales de la División de lo Penal. 

July 15-20th, 2019

Nova Southeastern University

The United States Attorney's Office Violence Reduction Partnership endeavors to create safer communities for our residents and our youth, by directly addressing gang and violent crime problems in the Southern District of Florida. The district's Drug Education for Youth (D.E.F.Y.)/Violence Reduction Partnership Leadership Camp promotes this goal through an anti-gang, anti-gun, anti-drug, anti-violence, and anti-bullying curriculum which targets at-risk youth ages 9-12 from high-crime, impoverished neighborhoods. The U.S. Attorney’s Office for the Southern District of Florida is proud to co-sponsor this invaluable program with the Overtown Youth Center and other community partners.

Since 2004, this week-long, over-night Leadership Camp has provided more than 800 at-risk kids with the tools they need to resist drugs, gangs, violent behavior, and bullying. The D.E.F.Y./Violence Reduction Partnership Leadership Camp's structured curriculum includes educational activities such as drug resistance, gang resistance, conflict resolution, anti-bullying, internet safety and life skills classes. In addition, the Leadership Camp offers the youth swimming lessons and physical fitness training programs that promote a healthy lifestyle, safety, increased self-confidence, mental health and leadership skills.   The goal of the Leadership Camp is to have the youth return to their communities with the skills, knowledge and ability to make the right choices and resist violence, gangs and negative peer pressure, while maintaining a healthy and positive way of life.

This year, the D.E.F.Y./Violence Reduction Partnership Leadership Camp will be held July 15-20th, at Nova Southeastern University, Fort Lauderdale, Florida.  More than 50 youth will be attending the Camp.  The participating youth are from areas including, Homestead, Overtown, Goulds, Miami Gardens, Pompano, Lake Worth, and Ft. Pierce.

The U.S. Attorney’s Office thanks Nova Southeastern University, the Overtown Youth Center, City of North Miami Beach, municipal entities, and other local law enforcement entities for their support of this program. 

Additional information regarding VRP initiatives is available at usafls.vrp@usdoj.gov (link sends e-mail) or by calling (305) 961-9134.

OPEN PRESS:  The news media is welcome to attend the D.E.F.Y./Violence Reduction Partnership Leadership Camp.  Interested members of the press should contact Special Counsel Sarah Schall at sarah.schall@usdoj.gov to make arrangements to visit the Camp.

Michael Stapleton, 44, of Jamaica, was sentenced by U.S. District Judge Donald M. Middlebrooks to a total of 262 months in prison after having been convicted by a South Florida jury of running an international alien smuggling organization out of Freeport, Bahamas.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Anthony Salisbury, Special Agent in Charge for U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), Miami Field Office, and Thomas G. Martin, Acting Chief Patrol Agent for U.S. Border Patrol Miami Sector, made the announcement.

Stapleton was convicted by a federal jury on January 30, 2019, of forty-seven criminal counts related to his involvement in an alien smuggling scheme (Case No 14-CR-80151).  The trial evidence showed that Stapleton was the head of a smuggling organization operating out of Freeport, Bahamas. For several years, he coordinated the smuggling of aliens to the United States through Freeport from around the world. He arranged for them to be hidden in stash houses, hired smuggling captains, and arranged for boats to make crossing from the Bahamas to the United States. Testimony at trial showed he also used the vulnerability of the aliens to exploit them by demanding more money from them after they were in his power, keeping them in deplorable conditions, mistreating them, and sending them out in unsafe boats. In one smuggling venture, the aliens were pushed overboard in rough seas far from the beach, despite some of them not being able to swim. Stapleton was extradited to the United States in 2018.

U.S. Attorney Ariana Fajardo Orshan said, “The U.S. Attorney’s Office and our law enforcement partners are committed to the vigorous prosecution of those individuals who engage in the dangerous and illicit practice of alien smuggling.  Today’s sentencing shows those who plan and commit these crimes while abroad will not have impunity from federal prosecution in the United States but will instead face more than twenty years in prison.”

“These smuggling organizations place no value on human life and are constantly putting people’s lives at risks. Stapleton’s actions clearly proved that,” said Anthony Salisbury, Special Agent in Charge of HSI Miami. “Our goal is to identify, disrupt and dismantle the type of organization that Stapleton headed and we are committed to do everything within our powers to put these individuals behind bars.”

U.S. Border Patrol Miami Sector Acting Chief Patrol Agent Thomas G. Martin stated, “Smuggling organizations like these pose a great risk.  Without the combined efforts of all law enforcement agencies involved, the actions of Stapleton would continue to endanger migrants’ lives and threaten U.S. border security.”

The Court found that Stapleton was the leader/organizer of the smuggling venture that involved between 20-99 victims, that he created a risk of substantial bodily harm, sexually assaulted two women, and possessed a firearm.  In addition to the term of incarceration, Stapleton was ordered to serve two years of supervised release and pay a special assessment of $4,700. 

U.S. Attorney Fajardo Orshan commended ICE-HSI, along with the United States Coast Guard, U.S. Border Patrol, the Palm Beach County Sheriff’s Office, the Jupiter Police Department, the Juno Beach Police Department, and the Manalapan Police Department, for the investigative assistance provided in support of this matter.  This case was prosecuted by Special Assistant U.S. Attorney Philip Jones and Assistant U.S. Attorney Stephanie Evans.

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.

South Florida man pled guilty to identity theft scheme. 

Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Bryan Pegues, Chief, Aventura Police Department, made the announcement. 

Wensley Edmond, 30, pled guilty to one count of unauthorized access device fraud and one count of aggravated identity theft.  According to court documents, on February 27, 2015, Aventura Police Department officers arrested Edmond and found credit cards and debit cards in other individuals’ names on Edmond’s person.  Additionally, Aventura Police Department officers found prepaid card envelopes with the handwritten names of other individuals, six different debit cards with card numbers that matched income tax return refunds issued in other individuals’ names, an ATM receipt utilizing one of the aforementioned cards at a different bank location earlier that same day, and approximately $6,000 in cash, in Edmond’s car.  The victims did not give anyone permission to use their personal identification information, to use cards in their name, or to withdraw money using the cards in their names.

Edmond is scheduled to be sentenced on September 12, 2019 at 11:30 a.m., before U.S. District Judge Joan A. Lenard.  Edmond faces up to 12 years in prison. 

U.S. Attorney Fajardo Orshan commended the investigative efforts of IRS-CI and the Aventura Police Department.  The case is being prosecuted by Assistant U.S. Attorney Frederic Shadley.

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.

A Key Biscayne, Florida, resident and the former CEO and Chairman of a now-bankrupt multinational pharmaceutical company was sentenced to 30 years in prison followed by five years of supervised release yesterday for his role his role in a $100 million scheme to defraud Westernbank of Puerto Rico (Westernbank). The losses triggered a series of events leading to Westernbank’s insolvency and ultimate collapse.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), Special Agent in Charge Michael J. DePalma of IRS Criminal Investigation (IRS-CI) for Miami and Puerto Rico, Special Agent in Charge Iván J. Arvelo of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in San Juan and Special Agent in Charge Douglas A. Leff of the FBI’s San Juan, Puerto Rico Field Office made the announcement.

Jack Kachkar, 56, was sentenced by U.S. District Judge Donald L. Graham of the Southern District of Florida, who also presided over the trial in this case.  Judge Graham also ordered the defendant to pay $103,490,005 in restitution to the FDIC, as receiver for Westernbank.  Kachkar was convicted on Feb. 4, 2019, after a three-week trial, of eight counts of wire fraud affecting a financial institution. 

According to evidence presented at trial, from 2005 to 2007, Kachkar served as chairman and CEO of Inyx Inc., a publicly traded multinational pharmaceutical manufacturing company.  Beginning in early 2005, Kachkar caused Westernbank to enter into a series of loan agreements in exchange for a security interest in the assets of Inyx and its subsidiaries.  Under the loan agreements, Westernbank agreed to advance money based on Inyx’s customer invoices from “actual and bona fide” sales to Inyx customers, the evidence showed.

The trial evidence showed that Kachkar orchestrated a scheme to defraud Westernbank by causing numerous Inyx employees to make tens of millions of dollars worth of fake customer invoices purportedly payable by customers in the United Kingdom, Sweden and elsewhere.  Kachkar caused these invoices to be presented to Westernbank as valid invoices.  Kachkar made false and fraudulent representations to Westernbank executives about purported and imminent repayments from lenders in the United Kingdom, Norway, Libya and elsewhere in order to lull Westernbank into continuing to lend money to Inyx, the evidence showed.  In fact, these lenders had not agreed to repay Westernbank’s loan.  Kachkar made false and fraudulent representations to Westernbank executives that he had additional collateral, including purported mines in Mexico and Canada worth hundreds of millions of dollars, to induce Westernbank to lend additional funds, the evidence showed.  In fact, this additional collateral was worth barely a fraction of that represented by Kachkar.

During the course of the scheme, Kachkar caused Westernbank to lend approximately $142 million, primarily based on false and fraudulent customer invoices.  The evidence showed that the defendant diverted tens of millions of dollars for his own personal benefit, including for the purchase of, among other things, a private jet, luxury homes in Key Biscayne and Brickell, Miami, luxury cars, luxury hotel stays, and extravagant jewelry and clothing expenditures.

In or around June 2007, Westernbank declared the loan in default and ultimately suffered losses exceeding $100 million on the Inyx loans.  According to trial evidence, these losses later triggered a series of events leading to Westernbank’s insolvency and ultimate collapse.  At the time of its collapse, Westernbank had approximately 1,500 employees and was one of the largest banks in Puerto Rico.

This case was investigated by the FDIC-OIG, IRS-CI, HSI and FBI.  The Department of Justice’s Office of International Affairs provided significant support in the investigation.  The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger of the Southern District of Florida and Trial Attorney Michael O’Neill of the Criminal Division’s Fraud Section.  The Department acknowledges and appreciates the substantial assistance of the Royal Canadian Mounted Police and the U.K. Metropolitan Police.

A Key Biscayne, Florida, resident and the former CEO and Chairman of a now-bankrupt multinational pharmaceutical company was sentenced to 30 years in prison followed by five years of supervised release yesterday for his role his role in a $100 million scheme to defraud Westernbank of Puerto Rico (Westernbank).  The losses triggered a series of events leading to Westernbank’s insolvency and ultimate collapse.

U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), Special Agent in Charge Michael J. DePalma of IRS Criminal Investigation (IRS-CI) for Miami and Puerto Rico, Special Agent in Charge Iván J. Arvelo of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in San Juan and Special Agent in Charge Douglas A. Leff of the FBI’s San Juan, Puerto Rico Field Office made the announcement.

Jack Kachkar, 56, was sentenced by U.S. District Judge Donald L. Graham of the Southern District of Florida, who also presided over the trial in this case.  Judge Graham also ordered the defendant to pay $103,490,005 in restitution to the FDIC, as receiver for Westernbank.  Kachkar was convicted on Feb. 4, 2019, after a three-week trial, of eight counts of wire fraud affecting a financial institution.

According to evidence presented at trial, from 2005 to 2007, Kachkar served as chairman and CEO of Inyx Inc., a publicly traded multinational pharmaceutical manufacturing company.  Beginning in early 2005, Kachkar caused Westernbank to enter into a series of loan agreements in exchange for a security interest in the assets of Inyx and its subsidiaries.  Under the loan agreements, Westernbank agreed to advance money based on Inyx’s customer invoices from “actual and bona fide” sales to Inyx customers, the evidence showed.

The trial evidence showed that Kachkar orchestrated a scheme to defraud Westernbank by causing numerous Inyx employees to make tens of millions of dollars worth of fake customer invoices purportedly payable by customers in the United Kingdom, Sweden and elsewhere.  Kachkar caused these invoices to be presented to Westernbank as valid invoices.  Kachkar made false and fraudulent representations to Westernbank executives about purported and imminent repayments from lenders in the United Kingdom, Norway, Libya and elsewhere in order to lull Westernbank into continuing to lend money to Inyx, the evidence showed.  In fact, these lenders had not agreed to repay Westernbank’s loan. Kachkar made false and fraudulent representations to Westernbank executives that he had additional collateral, including purported mines in Mexico and Canada worth hundreds of millions of dollars, to induce Westernbank to lend additional funds, the evidence showed.  In fact, this additional collateral was worth barely a fraction of that represented by Kachkar.

During the course of the scheme, Kachkar caused Westernbank to lend approximately $142 million, primarily based on false and fraudulent customer invoices.  The evidence showed that the defendant diverted tens of millions of dollars for his own personal benefit, including for the purchase of, among other things, a private jet, luxury homes in Key Biscayne and Brickell, Miami, luxury cars, luxury hotel stays, and extravagant jewelry and clothing expenditures.

In or around June 2007, Westernbank declared the loan in default and ultimately suffered losses exceeding $100 million on the Inyx loans.  According to trial evidence, these losses later triggered a series of events leading to Westernbank’s insolvency and ultimate collapse.  At the time of its collapse, Westernbank had approximately 1,500 employees and was one of the largest banks in Puerto Rico.

This case was investigated by the FDIC-OIG, IRS-CI, HSI and FBI.  The Department of Justice’s Office of International Affairs provided significant support in the investigation.  The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger of the Southern District of Florida and Trial Attorney Michael O’Neill of the Criminal Division’s Fraud Section.  The Department acknowledges and appreciates the substantial assistance of the Royal Canadian Mounted Police and the U.K. Metropolitan Police.

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.

Five Perrine residents were arrested this morning for their involvement in a drug trafficking network believed to be the largest source of narcotics supply in the neighborhood of Perrine, as part of the Southern District of Florida’s Violence Reduction Partnership (“VRP”) initiative.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida; Special Agent in Charge George L. Piro for the Federal Bureau of Investigation (FBI), Miami Field Office; Special Agent in Charge Adolphus P. Wright for the U.S. Drug Enforcement Administration (DEA), Miami Field Division; and Director Juan J. Perez of the Miami-Dade Police Department (MDPD), made the announcement.

The Criminal Complaint charges Tedrick “Ted” King, 45, Wilhemnia Nottage, 35, Corey Evans, 28, Christopher McCollur, a/k/a “Block,” 32,  Keyon Harris, 37, and Jonis Webster, a/k/a “J.J.,” 39, all of Miami-Dade County, with a conspiracy, that spanned from October 2018 through June 2019, to possess with intent to distribute narcotics, and possession with intent to distribute narcotics (Case No. 19-MJ-3049).   The defendants are scheduled to have their initial appearances before U.S. Magistrate Judge Jacqueline Becerra tomorrow at 2:00 p.m.

The Criminal Complaint arises from a joint investigation conducted by the FBI, DEA, and MDPD involving Ted King and his criminal associates (the “King Enterprise”), including the charged defendants, for crimes including narcotics distribution and money laundering.  Since the start of the investigation, law enforcement officers have conducted approximately 30 controlled narcotics purchases from the King Enterprise, including cocaine, marijuana, and Molly.  Law enforcement, through the course of physical surveillance, controlled purchases of narcotics, and debriefs with witnesses, believes that the King Enterprise is the largest current source of cocaine distribution in the neighborhood of Perrine, located in the Southern District of Florida.  The investigation has revealed that the King Enterprise utilizes multiple locations to distribute narcotics, store narcotics, and conceal the proceeds of the narcotics sales. 

Fourteen individuals have also been arrested and face state charges for related criminal conduct.  The investigation remains pending and additional individuals involved in the sales of illegal drugs may also be arrested and prosecuted.  If convicted of possessing with intent to distribute controlled substances, or conspiracy to do same, the defendants face up to 20 years in prison. 

A Criminal Complaint is only an accusation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Through the collaborative VRP, the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminal networks that plague communities throughout the Southern District of Florida. The VRP strives to combat violent crime, narcotics trafficking, gang activity and firearms offenses by prosecuting offenders and working with community leaders and non-profit entities to provide preventive services to the local populations.  The charges announced today are the result of the VRP’s law enforcement initiatives. Additional information regarding the VRP initiatives is available at usafls.vrp@usdoj.gov (link sends e-mail) or by calling (305) 961-9134.

The members of the VRP include the U.S. Attorney’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, DEA’s Miami Field Office, Broward Sheriff’s Office, Sunrise Police Department, U.S. Marshals Service Fugitive Task Force, Miami-Dade Police Department, FBI’s Miami Field Office, Hollywood Police Department, Homestead Police Department, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), North Miami Beach Police Department, Miami-Dade Police Department, City of Miami Police Department, Palm Beach County Sherriff’s Office, Broward County Office of the State Attorney, and Miami-Dade Office of the State Attorney.

U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI, DEA, and MDPD.  She thanked the Miami-Dade State Attorney’s Office and Homestead Police Department for their assistance.  This case is being prosecuted by Assistant U.S. Attorney Cary O. Aronovitz.

            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.

Two former Broward County residents were arrested on June 26, 2019, based on a complaint charging them with conspiracy to violate and attempted violations of the Arms Export Control Act (AECA) and International Traffic in Arms Regulations (ITAR) (18 U.S.C.  371 and 22 U.S.C.  2778).

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI), Miami Field Office, made the announcement. 

John James Peterson, 60, and Brunella Zuppone, 67, were charged with conspiracy to violate the AECA and ITAR, and attempts to illegally export to Argentina defense articles, specifically, parts and components for AR-15 assault rifles, which were smuggled across international borders by a transnational weapons trafficking group in Argentina.  They each had their initial appearance before U.S. Magistrate Judge Lisette M. Reid. 

According to the complaint and other court documents, Peterson and Zuppone illegally exported without a required license from the U.S. Department of State, to the Argentine weapons trafficking organization, thousands of AR-15 assault rifle parts.  The investigative efforts of HSI agents in the Miami Field Office along with HSI agents stationed in Argentina, and their proactive cooperation with Argentine law enforcement officials between October and December 2019, led to the execution of search warrants in Florida and Argentina that resulted in the seizure of the equivalent of fifty-two (52) AR-15 assault rifles in Florida and in Argentina: 189 long arms, 156 handguns, one mortar round, one hand grenade, over 30,000 rounds of assorted caliber ammunition, five vehicles, and $110,000 in cash.  On June 26, 2019, Argentina’s National Gendarmeria conducted an operation that led to the arrest of 25 subjects and the seizure of thousands of firearms and explosive materials.

            U.S. Attorney Fajardo Orshan commended the investigative efforts of HSI, U.S. Customs and Border Protection and the U.S. Postal Inspection Service.  The case is being prosecuted by Assistant U.S. Attorney Ricardo Del Toro and Trial Attorney Evan Turgeon of the Counterintelligence and Export Control Section of the Department of Justice’s National Security Division.

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.

A former Venezuelan government minister and a former officer at Venezuela’s state-owned and state-controlled electricity company, Corporación Eléctrica Nacional, S.A. (Corpoelec), were charged in an indictment returned today for their alleged roles in laundering the proceeds of violations of the Foreign Corrupt Practices Act (FCPA) in connection with their alleged receipt of bribes to award Corpoelec business to U.S.-based companies.  Today’s indictment follows the guilty pleas of two businessmen, earlier this week, for conspiring to violate the FCPA in connection with the corrupt payment scheme at Corpoelec. 

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida and Special Agent in Charge Adolphus P. Wright of the Drug Enforcement Administration’s Miami Field Division (DEA Miami) made the announcement.

Luis Alfredo Motta Dominguez (Motta), 60, and Eustiquio Jose Lugo Gomez (Lugo), 55, both of Venezuela, were charged in an eight-count indictment returned today in the Southern District of Florida with one count of conspiracy to commit money laundering and seven counts of money laundering.  Until recently, Motta was the minister of electrical energy in Venezuela and the head of Corpoelec; Lugo was the procurement director at Corpoelec. 

The indictment alleges that beginning in or around January 2016 and continuing through December 2018, Motta and Lugo conspired with others to launder the proceeds of an illegal bribery scheme to and from bank accounts located in southern Florida.  According to the indictment, Motta and Lugo awarded three Florida-based companies more than $60 million in procurement contracts with Corpoelec in exchange for bribes paid to them or for their benefit.  The indictment further alleges that the unlawful activity was a bribery scheme that violated the FCPA and involved bribery offenses against Venezuela.  According to the charges, a substantial portion of the proceeds from the corrupt contracts was laundered through U.S. financial institutions using  bank accounts located in the Southern District of Florida.

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

On June 24, 2019, Jesus Ramon Veroes (Veroes), 69, of Venezuela, and Luis Alberto Chacin Haddad (Chacin), 54, of Miami, Florida, each pleaded guilty before U.S. District Judge Cecilia M. Altonaga of the Southern District of Florida to one count of conspiracy to violate various provisions of the FCPA.  Veroes and Chacin are scheduled to be sentenced by Judge Altonaga on Sept. 4, 2019.

According to admissions made in connection with their guilty pleas, Veroes and Chacin agreed with each other and with other co-conspirators to make corrupt payments to foreign officials at Corpoelec in exchange for the award of procurement contracts to Florida-based companies.  Under the terms of their plea agreements, Veroes and Chacin will each be required to forfeit at least $5.5 million in profits from the corruptly obtained contracts, as well as real property in the Miami area.

This case was investigated by DEA Miami with assistance from the IRS Criminal Investigations Miami Field Office and the FBI’s Miami Field Office.  Trial Attorney John-Alex Romano of the Criminal Division’s Fraud Section, Trial Attorney Joseph Palazzo of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Michael B. Nadler of the Southern District of Florida are prosecuting the case. 

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

A former Venezuelan government minister and a former officer at Venezuela’s state-owned and state-controlled electricity company, Corporación Eléctrica Nacional, S.A. (Corpoelec), were charged in an indictment returned today for their alleged roles in laundering the proceeds of violations of the Foreign Corrupt Practices Act (FCPA) in connection with their alleged receipt of bribes to award Corpoelec business to U.S.-based companies.  Today’s indictment follows the guilty pleas of two businessmen, earlier this week, for conspiring to violate the FCPA in connection with the corrupt payment scheme at Corpoelec. 

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division, and Adolphus P. Wright, Special Agent in Charge of the Drug Enforcement Administration’s Miami Field Division (DEA Miami), made the announcement.

Luis Alfredo Motta Dominguez (Motta), 60, and Eustiquio Jose Lugo Gomez (Lugo), 55, both of Venezuela, were charged in an eight-count indictment returned today in the Southern District of Florida with one count of conspiracy to commit money laundering and seven counts of money laundering.  Until recently, Motta was the minister of electrical energy in Venezuela and the head of Corpoelec; Lugo was the procurement director at Corpoelec. 

The indictment alleges that beginning in or around January 2016 and continuing through December 2018, Motta and Lugo conspired with others to launder the proceeds of an illegal bribery scheme to and from bank accounts located in southern Florida.  According to the indictment, Motta and Lugo awarded three Florida-based companies more than $60 million in procurement contracts with Corpoelec in exchange for bribes paid to them or for their benefit.  The indictment further alleges that the unlawful activity was a bribery scheme that violated the FCPA and involved bribery offenses against Venezuela.  According to the charges, a substantial portion of the proceeds from the corrupt contracts was laundered through U.S. financial institutions using  bank accounts located in the Southern District of Florida.

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

On June 24, 2019, Jesus Ramon Veroes (Veroes), 69, of Venezuela, and Luis Alberto Chacin Haddad (Chacin), 54, of Miami, Florida, each pleaded guilty before U.S. District Judge Cecilia M. Altonaga of the Southern District of Florida to one count of conspiracy to violate various provisions of the FCPA.  Veroes and Chacin are scheduled to be sentenced by Judge Altonaga on Sept. 4, 2019.

According to admissions made in connection with their guilty pleas, Veroes and Chacin agreed with each other and with other co-conspirators to make corrupt payments to foreign officials at Corpoelec in exchange for the award of procurement contracts to Florida-based companies.  Under the terms of their plea agreements, Veroes and Chacin will each be required to forfeit at least $5.5 million in profits from the corruptly obtained contracts, as well as real property in the Miami area.

This case was investigated by DEA Miami with assistance from the IRS Criminal Investigations Miami Field Office and the FBI’s Miami Field Office.  Assistant U.S. Attorney Michael B. Nadler of the Southern District of Florida, Trial Attorney John-Alex Romano of the Criminal Division’s Fraud Section, and Trial Attorney Joseph Palazzo of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case. 

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

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.

A former insurance agent of One Stop Insurance Agency was sentenced today to 101 months in prison, to be followed by three years of supervised release, and ordered to pay $20,056,054.67 in restitution for his role in defrauding two finance companies.

Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement. 

Stuart Alan Starr, 62, formerly of North Miami Beach, pled guilty in April 2019, to one count of conspiracy to commit wire fraud and five counts of wire fraud. In August 2018, his brother Glen Wayne Starr pled guilty to one count of conspiracy to commit wire fraud, and later in October 2018, received the same sentence as Stuart Alan Starr. 

According to documents filed with the court and statements made in court during the plea and sentencing, Stuart Alan Starr and his brother, Glen Wayne Starr, from March 1990 to August 2015, operated One Stop Insurance Agency, Inc.  The company was located at 17088 West Dixie Highway, North Miami Beach, Florida 33160.  Both Starr brothers were licensed insurance agents with the state of Florida.  One Stop was an approved agent of Progressive Insurance Company, Castle Point and Lloyds of London and authorized to write insurance policies underwritten by those carriers. One Stop specialized in offering liability and cargo insurance policies to independent truckers and small trucking companies for coverage of trucks, tractor-trailers and heavy equipment. Since the premiums for this type of coverage was often extremely expensive, when small trucking carriers could not afford the large lump sum payments for those premiums, One Stop would arrange to have the truckers or trucking companies finance the premiums through loans obtained from one of several finance companies with which One Stop worked.  These finance companies included Pro Premium Finance Company, Standard Premium Finance Management, Corporation, and DAB Premium Finance, LLC.

Beginning in or around July 2014, One Stop, on a monthly basis, created and submitted, via email or facsimile, over 300 false and fraudulent application packages to Pro Premium and other finance companies for funding. The documents in the package were prepared using the names of real companies as well as fictitious companies, which were purportedly true customers of One Stop. Glen Wayne Starr and Stuart Alan Starr represented on the premium financing agreement that the purported customers had made the required down payment towards their premium when in fact they had not.  Pro Premium would approve the financing for these loans and the Starr brothers, in keeping with their practice, would write checks to One Stop, deposit those checks into one or several of One Stop’s bank accounts then use those funds for personal gain.  

In August 2015, both Starr brothers fled the country when the fraud was about to be discovered and were later apprehended in Colombia in 2018.  The loss caused by the Starr brothers’ conduct forced Pro Premium, which had been in operation since 1988, to close its doors. 

U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI.  She thanked the Bureau of Insurance Fraud, Florida Department of Financial Services for their assistance. The case was prosecuted by Assistant U.S. Attorney Lois Foster-Steers.

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.

The former executive director and CEO of a sponsor organization for the federally-funded Child Care Food Program (“CCFP”) and the former owner of a catering company that was awarded contracts to provide nutritious food for needy children were sentenced today for their roles in a complex fraud, kickback, bribery, and money laundering scheme that victimized the CCFP and the children it was meant to serve.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office,  Karen Citizen-Wilcox, Special Agent in Charge, U.S. Department of Agriculture (USDA), and Rick Maglione, Chief, Fort Lauderdale Police Department, made the announcement.

Sandra Ruballo, 47, of Davie, Florida, was sentenced to 120 months in prison followed by three years of supervised release. Ruballo was also ordered to pay a $900 special assessment, restitution, and a forfeiture money judgment of $26 million. Carlos Andres Montoya, 48, of Miramar, Florida, was sentenced to 97 months in prison followed by three years of supervised release.  Montoya was also ordered to pay a $200 special assessment, restitution, and a forfeiture money judgment of $13 million. 

For more than six years, Ruballo and Montoya defrauded the federally funded Child Care Food Program, which provides free and reduced meals to underprivileged children at hundreds of daycare centers in Florida. As part of the scheme, the conspirators falsified paperwork, entered into various kickback arrangements, manipulated the catering contract bid process, and inflated annual budgets, all in order to receive millions of dollars of falsely and fraudulently obtained federal funds for their own personal use and benefit. 

On February 27, 2019, Ruballo pleaded guilty, without a plea agreement, to all counts of the superseding indictment, including: one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349; three counts of wire fraud, in violation of Title 18, United States Code, Section 1343; one count of conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h); and four counts of money laundering, in violation of Title 18, United States Code, Section 1956(a)(1)(B)(i). 

On March 29, 2019, following a four-week jury trial, Montoya was convicted of one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, and one count of federal program bribery, in violation of Title 18, United States Code, Section 666(a)(2) (Case No. 18-CR-20393-Cooke(s)).  

According to court documents and evidence presented at trial, the purpose of the Child Care Food Program (CCFP) is to provide nutritious meals and snacks for underprivileged, low-income children in daycare centers across Florida.  For many children in the CCFP, the subsidized food served at daycare centers is their only source of food each day.  As such, the CCFP provides children classified at or below a certain family income level with daily meals and snacks, at a free or a reduced rate.  The government pays vastly higher reimbursement rates for children classified as “free,” as opposed to “non-needy,” for example, up to nine times more per meal.  Daycare centers often contract with a sponsoring organization to process and submit their program paperwork.  In those situations, the sponsoring organization enters into an agreement to operate the CCFP, and assumes administrative and financial responsibility on behalf of the center.  These sponsor organizations occupy trusted roles, and are only paid government funds because they are supposed to perform oversight functions akin to regulators. 

Ruballo was the owner and operator of Highland Food Resources, Inc. (HFR), a sponsoring organization of more than two hundred child daycare centers that participated in the CCFP, covering the geographic area from Key West to West Palm Beach and across the State to Florida’s West Coast.  In this role, HFR processed paperwork and electronically submitted monthly reimbursement claims for the centers.  It was Ruballo – and HFR’s – job to ensure that the claims accurately reflected the neediness levels of the children and the volume of children served meals, and Ruballo was supposed to ensure that the caterer would only be reimbursed for qualifying meals.  Once HFR was reimbursed with federal funds, they paid the daycare centers, less HFR’s fee, which is a percentage of the total monthly meal reimbursements.  Thus, the size of HFR’s payment was driven, in part, by the number of meals claimed by daycare centers that are multiplied by a higher reimbursement rate for the free and reduced meals/snacks. 

On behalf of HFR, Ruballo was personally responsible for soliciting meal catering companies and awarding contracts through a competitive, anonymous bidding process. 

Montoya was the owner and operator of Montoya Holdings, Inc., d/b/a Healthy Children Catering and Pelota Café and Pizzeria.  The record evidence showed that Montoya, Ruballo, and others conspired to rig the catering bid process and award contracts to Montoya from 2012 to 2016.  As a result of the bid-rigging scheme, Montoya Holdings received lucrative contracts, and was paid more than $13 million in federal funds, via HFR, which were supposed to be used for providing nutritious meals to children at daycare centers in South Florida. 

Ruballo, Montoya and others conspired to rig the catering bid process through materially false and fraudulent representations to the CCFP.  For example, because of their collusion, Montoya outbid his competitor for a lucrative blanket catering contract by one penny per meal.  Over the years, Montoya was awarded numerous blanket contracts that in total were valued at more than $16 million.  While Ruballo was supposed to be overseeing the fairness of this process and ensuring that food complied with the CCFP rules, instead, she looked the other way, as Montoya paid her more than approximately $2 million in kickbacks over the course of the scheme.  Montoya and co-conspirators withdrew more than $1.6 million in cash during the conspiracy, and hundreds of thousands of dollars of cash, in turn, were deposited into accounts controlled by Ruballo – including into an account for Ruballo’s husband’s purported mobile car wash business.

Montoya’s bribes bought him protection from regulating agencies, most notably, the Florida Department of Health, and ensured that HFR and Ruballo did not terminate contracts despite repeated complaints about spoiled food.  Indeed, the evidence showed that Ruballo and other employees at HFR, at Ruballo’s direction, created falsified reports about other caterers and submitted them to the Department of Health in an attempt to detract attention from Montoya when investigators became suspicious. 

After Montoya Holdings caused a staph-induced foodborne illness outbreak in November 2016, affecting more than 140 preschool children in Miami-Dade and Broward Counties, the Department of Health and regulators ultimately banned Montoya Holdings from participating in the CCFP.  Despite this prohibition, the bribery continued.  In February 2017, Montoya paid a $160,000 bribe to Ruballo and HFR, which the co-conspirators attempted to disguise as a “donation” or “settlement.” 

In addition, Montoya failed to report more than $27 million in income to the IRS for Montoya Holdings from 2013-2016.  Evidence at trial also showed that he used the proceeds of the crime to fund personal expenditures, including visits to the Seminole Hard Rock Casino, a strip club, homes, cars, and jewelry.

Separate and apart from the kickback and bribery part of the scheme, Ruballo and other co-conspirators also falsified paperwork for children enrolled at daycare centers in order to qualify more kids for free and reduced meals under the CCFP, and steal more money for themselves.  This fraudulent paperwork was used as the basis for inflated monthly reimbursement claims that Ruballo submitted to the program, for which HFR received reimbursement from the CCFP.  In total, through this over inflation fraud, the CCFP paid HFR approximately $12 million that it was not entitled to.  Put differently, HFR was paid a total reimbursement of approximately $50 million, but if the paperwork had been completed accurately, it would only have received approximately $38. 

Finally, Ruballo stole additional federal funds for herself by falsely and fraudulently inflating the HFR budget.  Specifically, she added non-existent companies and ghost employees to the budget, including her own former nanny, to illegally obtain additional program funds.  All told, Ruballo caused a loss to the CCFP of at least $26 million, and personally received at least $3 million in ill-begotten gains. 

U.S. Attorney Fajardo Orshan commended the investigative efforts of IRS, USSS, USDA and the Fort Lauderdale Police Department.  The case is being prosecuted by Assistant U.S. Attorneys Lisa H. Miller and Daniel J. Marcet.

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.

A Davie resident who possessed a firearm and ammunition was sentenced for being a felon in possession of a firearm and ammunition and required to forfeit his interest in the firearm and ammunition.

            Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and Dale Engle, Chief, Davie Police Department, made the announcement.

            Roberto Alexander Gonzalez, 28, was sentenced by Senior U.S. District Judge William J. Zloch to 87 months in prison, to be followed by three years of supervised release for being a felon in possession of a firearm and ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2) (Case No. 19CR60053). Judge Zloch ordered that during the term of Gonzalez’s supervised release he be subject to a permissible search and be required to obtain anger control/domestic violence treatment; mental health treatment; and substance abuse treatment.  Judge Zloch also ordered the forfeiture of Gonzalez’s interest in the firearm and ammunition.

            According to the court record, including the agreed upon factual proffer, on August 19, 2018, Gonzalez and another man attacked and beat a man in a convenience store in Davie.  Gonzalez used a handgun to beat the victim and then pointed the handgun at the victim before fleeing to a local bar.  Davie Police Officers arrived at the scene and interviewed the victim, who had blood streaming from lacerations above his left eye and on the back of his head.  The officers located Gonzalez at the bar and recovered the loaded handgun from where it had been hidden inside the bar’s closet.  The beating was recorded by the convenience store’s security cameras.  DNA from both Gonzalez and the victim was recovered from the handgun.

            At the time he possessed the handgun, Gonzalez was a felon who had previously been convicted of felonies in two cases in Broward County – possession of cocaine with intent to sell or deliver, and burglary of a dwelling.

            Gonzalez has also been charged by the State of Florida, which charges are based upon the beating of the victim during the same incident.  The defendant is presumed innocent of the state charges unless and until proven guilty in a court of law.

            U.S. Attorney Fajardo Orshan commended the investigative efforts of ATF and the Davie Police Department.  This case was prosecuted by Assistant U.S. Attorney William T. Shockley.

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.

A federal court ordered a Florida company claiming to offer stem cell treatments to stop selling or providing such products to patients, the Justice Department announced yesterday.

In a complaint filed May 9, 2018, the United States alleged that defendants Kristin Comella, US Stem Cell Clinic Inc., and US Stem Cell LLC, of Sunrise, Florida, marketed “stromal vascular fraction” (SVF) products as stem-cell-based treatments for a host of serious conditions and diseases, including Parkinson’s disease, spinal cord injuries, stroke, and traumatic brain injury. According to the complaint, the defendants made such claims without approval by the Food and Drug Administration (FDA) and without proof of safety and efficacy. On June 3, District Judge Ursula Ungaro of the Southern District of Florida granted the government’s motion for summary judgment and denied a similar motion by the defendants, finding that the SVF products must comply with the Food, Drug, and Cosmetic Act (FDCA). On June 25, the Court entered a permanent injunction barring the defendants from selling or providing SVF products absent FDA approval.

“Clinics that purport to treat patients with unproven, experimental products must follow the law,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department of Justice will continue to work with the FDA to ensure that manufacturers of experimental therapies conduct their research within the safe and legal bounds for drug innovation.”

“The Food, Drug, and Cosmetic Act is designed to protect the public health, and we are pleased that the Court found that the defendants in this instance are not exempted from FDA regulation,” said U.S. Attorney for the Southern District of Florida Ariana Fajardo Orshan. “This Office will continue our efforts to safeguard the public and individuals and corporations should be guided by this ruling and ensure that they comply with FDA standards.”

In ruling on summary judgment, the Court found that the defendants’ SVF product, which they manufactured from patients’ adipose (fat) tissue, was a drug subject to the FDCA. The Court further found that the defendants’ drug was misbranded because it did not bear adequate directions for use, and adulterated because the defendants did not comply with current good manufacturing practice (CGMP) in manufacturing the drug. The complaint alleged that the defendants and their affiliates used their unapproved and unlicensed products on thousands of patients and that, in some cases, adverse events that harmed patients followed treatment with the SVF products. According to the complaint, no credible scientific evidence supported the claims the defendants made that their products cure, mitigate, or prevent the conditions they purportedly treated.

“In the case against US Stem Cell Clinic, the clinic and its leadership put patients at serious risk through their disregard of the law and prior FDA warnings. This injunction is an important step in protecting patients from bad actors,” said Acting FDA Commissioner Ned Sharpless, M.D. “We are committed to continuing to pursue actions against those who put patients in harm’s way by marketing unapproved stem cell products that skirt FDA’s regulations and federal law.”

The matter is being handled by Trial Attorney Roger J. Gural of the Civil Division’s Consumer Protection Branch, with the assistance of Assistant U.S. Attorney James A. Weinkle of the U.S. Attorney’s Office for the Southern District of Florida and Associate Chief Counsel for Enforcement Michael Helbing of the U.S. Department of Health and Human Services’ Office of General Counsel.

For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Florida, visit its website at https://www.justice.gov/usao-sdfl.

A federal court ordered a Florida company claiming to offer stem cell treatments to stop selling or providing such products to patients, the Justice Department announced today.

In a complaint filed May 9, 2018, the United States alleged that defendants Kristin Comella, US Stem Cell Clinic Inc., and US Stem Cell LLC, of Sunrise, Florida, marketed “stromal vascular fraction” (SVF) products as stem-cell-based treatments for a host of serious conditions and diseases, including Parkinson’s disease, spinal cord injuries, stroke, and traumatic brain injury. According to the complaint, the defendants made such claims without approval by the Food and Drug Administration (FDA) and without proof of safety and efficacy. On June 3, District Judge Ursula Ungaro of the Southern District of Florida granted the government’s motion for summary judgment and denied a similar motion by the defendants, finding that the SVF products must comply with the Food, Drug, and Cosmetic Act (FDCA). On June 25, the Court entered a permanent injunction barring the defendants from selling or providing SVF products absent FDA approval.

“Clinics that purport to treat patients with unproven, experimental products must follow the law,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department of Justice will continue to work with the FDA to ensure that manufacturers of experimental therapies conduct their research within the safe and legal bounds for drug innovation.”

“The Food, Drug, and Cosmetic Act is designed to protect the public health, and we are pleased that the Court found that the defendants in this instance are not exempted from FDA regulation,” said U.S. Attorney for the Southern District of Florida Ariana Fajardo Orshan. “This Office will continue our efforts to safeguard the public and individuals and corporations should be guided by this ruling and ensure that they comply with FDA standards.”

In ruling on summary judgment, the Court found that the defendants’ SVF product, which they manufactured from patients’ adipose (fat) tissue, was a drug subject to the FDCA. The Court further found that the defendants’ drug was misbranded because it did not bear adequate directions for use, and adulterated because the defendants did not comply with current good manufacturing practice (CGMP) in manufacturing the drug. The complaint alleged that the defendants and their affiliates used their unapproved and unlicensed products on thousands of patients and that, in some cases, adverse events that harmed patients followed treatment with the SVF products. According to the complaint, no credible scientific evidence supported the claims the defendants made that their products cure, mitigate, or prevent the conditions they purportedly treated.

“In the case against US Stem Cell Clinic, the clinic and its leadership put patients at serious risk through their disregard of the law and prior FDA warnings. This injunction is an important step in protecting patients from bad actors,” said Acting FDA Commissioner Ned Sharpless, M.D. “We are committed to continuing to pursue actions against those who put patients in harm’s way by marketing unapproved stem cell products that skirt FDA’s regulations and federal law.”

The matter is being handled by Trial Attorney Roger J. Gural of the Civil Division’s Consumer Protection Branch, with the assistance of Assistant U.S. Attorney James A. Weinkle of the U.S. Attorney’s Office for the Southern District of Florida and Associate Chief Counsel for Enforcement Michael Helbing of the U.S. Department of Health and Human Services’ Office of General Counsel.

For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Florida, visit its website at https://www.justice.gov/usao-sdfl.

On June 12, 2019, Juan Carlos Rodriguez Espinoza, 53, of Miramar, Florida, pled guilty to one count of smuggling goods from the United States, in violation of Title 18, United States, Section 554.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Anthony Salisbury, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s, Homeland Security Investigations (ICE-HSI), and Diane J. Sabatino, Director, Field Operations, U.S. Customs and Border Protection (CBP), Miami Field Office, made the announcement.

At sentencing, Rodriguez faces a maximum statutory sentence of up to 10 years in prison, three years of supervised release, and a $250,000 fine. Sentencing has been scheduled for August 13, 2019 at 1:30 pm before

U.S. District Court Judge Jose E. Martinez, in Miami, Florida (Case No. 19CR20239).

According to documents filed with the court and statements made during the pea, Rodriguez was the owner and operator of Rapid Export Services, LLC, (“Rapid Export”) a freight forwarding company in Miami, Florida.   From in or around March 2016 through in or around May 2016, Rodriguez received, in Miami, thirteen containers of alcohol and cigarettes that were originally shipped from Panama.  Rodriguez arranged for the thirteen containers to be held “in bond” at a bonded warehouse operated by Double Ace Cargo, Inc. (“Double Ace”), a freight forwarding company.  Subsequently, Double Ace, at Rodriguez’s request, exported the thirteen containers to the Dominican Republic. 

Before Double Ace exported the thirteen containers to the Dominican Republic, Rodriguez, based on instructions he received from his client in the Dominican Republic, instructed employees at Double Ace to change the commodity description on the outgoing bills of lading. Rodriguez instructed the employees at Double Ace to change the commodity description to the following commodities: paper, raw material, synthetic textiles or hospital supplies (as opposed to cigarettes and alcohol).  Rodriguez acted with the intent to conceal the nature of the goods from the customs authorities in the Dominican Republic.  Rodriguez knew that providing false information on the bills of lading was contrary to the laws and regulations of the United States.

U.S. Attorney Fajardo Orshan commended the investigative efforts of HSI Miami, HSI Dominican Republic and CBP Miami.   This case is being prosecuted by Assistant U.S. Attorney Yisel Valdes.

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.

North Bay Village resident and former employee of Dylan’s Candy Bar, located on Lincoln Road, Miami Beach, pled guilty to, and was sentenced to, 10 years for armed robbery of Dylan’s Candy Bar. 

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Daniel Oates, Chief, City of Miami Beach Police Department, made the announcement. 

According to the court record, on February 11, 2019, Jemm Urcil Prospere, 29, robbed the Lincoln Road, Miami Beach location of Dylan’s Candy Bar, owned by Dylan Lauren, daughter of American fashion designer Ralph Lauren.  Prospere entered the store wearing a black mask, a black hooded sweatshirt, and blue latex gloves.  He then commanded the store’s manager to take him to the vault room.  Prospere pointed a firearm at the store manager and demanded the manager to empty the safe and place all the money into a book bag.   After emptying the safe, the store manager attempted to disarm Prospere.  A struggle ensued and Prospere discharged one round from his firearm.  The store manager ultimately overpowered Prospere and pushed Prospere down the stairs.  Prospere escaped downstairs and out of Dylan’s Candy Bar with the book bag full of stolen cash.

After accepting his guilty plea, U.S. District Court Judge Federico A. Moreno (Case No. 19-20276-CR-MORENO) sentenced Prospere to 10 years in prison. 

U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and Miami Beach Police Department in this matter.  The case was prosecuted by Assistant U.S. Attorney Michael B. Homer.

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.

Maurice Johnson, Kimberly A. Selmore, and Edward N. Stamm of the U.S. Attorney’s Office in the Southern District of Florida were among 172 members of the Department of Justice recognized by Deputy Attorney General Jeffrey Rosen, and Executive Office for U.S. Attorneys (EOUSA) Director James Crowell, IV at the 35th Director’s Awards Ceremony today in Washington D.C.

The Southern District of Florida was one of 31 districts represented at the ceremony, which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.

In his prepared remarks, Deputy Attorney General Jeffrey Rosen addressed the recipients and guests, saying, “Today’s honorees have earned the esteem of their colleagues.  But most importantly, you have earned the gratitude of your fellow citizens — whose communities you have made safer, whose lives you have improved, and whose trust you have rewarded.” 

In his remarks, EOUSA Director James Crowell told the recipients, “The Department of Justice is in truth a deployed force.  Your work isn’t easy, but it is vital to the functioning and enduring nature of our democracy.  As federal prosecutors, we are held to a higher standard, a standard that requires us to ensure that we uphold the rule of law and the fundamental rules of fairness in every trial, every settlement, every plea, and every legal argument in which we are involved.”

Senior Litigation Counsel Edward Stamm and Assistant U.S. Attorneys Kim Selmore and Maurice Johnson were recognized for their outstanding work in the investigation and prosecution of a widespread municipal corruption ring victimizing the city of Opa Locka, Florida. A working class city in Miami-Dade County, Opa Locka has long been plagued by a tight-knit group of corrupt elected and appointed officials. These officials enriched themselves at the expense of the city’s residents and small business owners. Law enforcement authorities began a proactive investigation in 2014 using a wide range of techniques to gather evidence. In 2016, the investigation culminated in the execution of a search warrant on Opa Locka City Hall. The investigation expanded, resulting in the conviction and imprisonment of numerous individuals on corruption charges. The convicted individuals included an elected City Commissioner, Opa Locka’s City Manager, Assistant Public Works Director, the Mayor’s son and the acknowledged power broker in the city.

            “Senior Litigation Counsel Edward Stamm and Assistant U.S. Attorneys Kim Selmore and Maurice Johnson are career prosecutors who uphold the highest standards of the Department of Justice,” said Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida.  “The cases for which they are being recognized exemplify their dedication to justice.  Mr. Stamm, Ms. Selmore, and Mr. Johnson worked tirelessly to root out corruption by the officials who betrayed the trust of the community they served.  The City of Opa Locka is safer today because of the efforts of these prosecutors.”

EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.

Attorney General William P. Barr today announced the establishment of the Transnational Elder Fraud Strike Force, a joint law enforcement effort that brings together the resources and expertise of the Department of Justice’s Consumer Protection Branch, the U.S. Attorneys’ Offices for six federal districts, the FBI, the U.S. Postal Inspection Service, and other organizations. The Strike Force will focus on investigating and prosecuting individuals and entities associated with foreign-based fraud schemes that disproportionately affect American seniors. These include telemarketing, mass-mailing, and tech-support fraud schemes.

The Transnational Elder Fraud Strike Force will be comprised of prosecutors and data analysts from the Consumer Protection Branch, prosecutors with six U.S. Attorneys’ Offices (Central District of California, Middle and Southern Districts of Florida, Northern District of Georgia, Eastern District of New York, Southern District of Texas), FBI special agents, Postal Inspectors, and numerous other law enforcement personnel. The Strike Force will also collaborate with the Federal Trade Commission and industry partners, who have pledged to engage with the Department to help end the scourge of elder fraud. It will further benefit from the help of the Elder Justice Coordinators now assigned in every U.S. Attorney’s Office.

“Fraud against the elderly is on the rise,” said Attorney General Barr.  “One of the most significant and pernicious causes for this increase is foreign-based fraud schemes. The new Transnational Elder Fraud Strike Force will bring together the expertise and resources of our prosecutors, federal and international law enforcement partners, and other government agencies to better target, investigate, and prosecute criminals abroad who prey on our elderly at home. The Department of Justice is committed to ending the victimization of elders across the country.”

“It doesn’t matter where these criminals live. We’re committed to keeping our elderly citizens safe, whether they’re being targeted door-to-door, over the phone, or online, from thousands of miles away,” said Director Christopher Wray of the FBI. “Our new Transnational Elder Fraud Strike Force will give us additional resources and tools to identify and stop those who are targeting our senior communities from overseas. If you think you may be a victim of elder fraud, or you know someone who is, please let us know. We want to help.”

“Protecting older Americans and educating them and their caregivers about foreign lotteries and sweepstakes has been a long-time priority of the Postal Inspection Service,” said Chief Postal Inspector Gary Barksdale. “Our consumer awareness programs, coupled with our investigative efforts, have prevented countless older Americans from fraud and financial exploitation. But there’s so much more than can be done. By joining our partner agencies in this Strike Force, we become more effective at identifying and stopping those who prey on our vulnerable citizens.”

Using analytical tools and sophisticated investigative approaches, the Strike Force will seek to identify those responsible for foreign fraud schemes affecting American seniors, as well as those individuals and entities facilitating such schemes. The Strike Force will coordinate closely with foreign law enforcement, and will use all available criminal and civil tools to stop victims from losing money and to hold wrongdoers responsible.

The Attorney General announced creation of the Strike Force as part of a week of events recognizing World Elder Abuse Awareness Day on June 15, which is dedicated to raising awareness about the millions of older adults who experience elder abuse, neglect, and financial exploitation.

The establishment of the Transnational Elder Fraud Strike Force builds on the Trump Administration’s commitment to combating elder fraud. That commitment was reflected in the Department’s historic 2018 and 2019 Elder Fraud Sweeps—which collectively brought criminal and civil actions against more than 500 defendants responsible for defrauding more than $1.5 billion from at least 3 million victims —as well as the 2018 Rural and Tribal Elder Justice Summit.

More information about the Department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at https://www.ovc.gov.

A former Miramar Police Department employee was sentenced to prison today for participating in a fraud scheme.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.

Brian M. Chen, 39, of Weston, Florida, a former Information Technology Analyst with the police department for the city of Miramar, Florida, was sentenced today to 37 months in prison by U.S. District Judge William P. Dimitrouleas, after previously pleading guilty to a three-count Information charging him in each count with mail fraud, in violation of Title 18, United States Code, Section 1341.  Chen was order to pay $343,797.02 in restitution to the City of Miramar.   After sentencing, Chen was remanded to the custody of the Bureau of Prisons to begin serving his prison sentence.

According to the court record, including stipulated statements of fact, the State of Florida had a contract with Verizon Wireless for a cellular telephone service plan, which included the acquisition by state and local agencies of cellular telephones and devices.  The contract allowed state and local agencies in Florida to obtain iPhones and Android cellular telephones for free or at a discounted rate, provided that the cellular telephones were obtained for official use and that Verizon Wireless was utilized as the service provider.  In his position as Information Technology Analyst, Chen was the administrator of the plan and was in charge of overseeing the purchase and use of cellular telephones and service.

Beginning in or about 2013, Chen, through his position as Information Technology Analyst with the Miramar Police Department, ordered cellular telephones online through the Verizon “My Business” portal for free or at a substantial discount with the intent to unlawfully resell those cellular telephones. Upon ordering the cellular telephones, Chen caused Verizon to initiate a monthly service plan for each line of service.   Chen attempted to suspend the monthly service plan for each cellular telephone in order to conceal his illegal acquisition of them.

Chen offered the illegally obtained telephones for sale individually through an online auction and resale provider and also sold the illegally obtained telephones in bulk to persons in the business of reselling cellular telephones.   Due to the volume of telephones illegally purchased and the associated lines of service plans, some service plans could not be continuously suspended. Miramar Police Department incurred a loss of approximately $350,000 by paying for service plans for telephones purchased by Chen pursuant to the fraudulent scheme.   From in or about 2013, through on or about November 29, 2018, Chen illegally profited, from the scheme, by receiving approximately $800,000 through the sale of over a thousand illegally obtained cellular telephones.

U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI in connection with this matter.  She thanked the Miramar Police Department for their assistance.  The case was prosecuted by Assistant U.S. Attorneys Jeffrey N. Kaplan and Paul F. Schwartz.

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.

Yesterday, following a four-week trial before U.S. District Court Judge Marcia G. Cooke, a federal jury convicted a former Federal Aviation Administration (FAA) Safety Inspector Manuel R. Fernandez, 42, of Miami, of twenty-one criminal counts for his participation in a bribery and fraud scheme.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Todd Damiani, Regional Special Agent in Charge, U.S. Department of Transportation, Office of Inspector General (DOT-OIG), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.

According to the evidence at trial, from 2010 through June 28, 2013, Fernandez served as a FAA Aviation Safety Inspector with the FAA South Florida Flight Standards District Office (“FSDO”). Patricia Suarez and Rolando Suarez were the co-owners, officers, and directors of AVCOM, a Miami aviation repair company, which was subject to the jurisdiction and official responsibility of the FAA South Florida FSDO.  The evidence showed that, at the same he was working for the FAA, Fernandez held various positions at AVCOM, including Vice President of Operations.

In exchange for Patricia Suarez and Rolando Suarez corruptly providing over $150,000 in cash, as well as jewelry, a cruise, clothing, and approximately $15,000 funneled to Fernandez’s mother, Fernandez violated his lawful and official duties as an FAA Aviation Safety Inspector.  Fernandez provided AVCOM with advanced notice and warnings as to pending FAA inspections of AVCOM, disclosed financial information about AVCOM’s competitors, and provided AVCOM with improperly obtained aviation repair manuals produced by original equipment manufacturers such as Honeywell and Delta, saving AVCOM from paying vast sums of money for this proprietary information.  The evidence further showed that Fernandez provided materially false statements to the FAA and DOT in order to hide his participation in these AVCOM-related activities. Additionally, Fernandez submitted a fraudulent sick leave request to the FAA, utilizing a forged doctor’s note.

Fernandez was convicted of one count of conspiracy to commit bribery, in violation of Title 18, United States Code, Sections 371 and 201(b)(1)(C) and (b)(2)(C); fifteen counts of bribery, in violation of Title 18, United States Code, Section 201(b)(2)(C); one count of providing false statements to a federal agency, in violation Title 18, United States Code, Section 1001(a)(2); two counts of wire fraud, in violation Title 18, United States Code, Section 1343; and two counts of aggravated identity theft, in violation Title 18, United States Code, Section 1028A.  Fernandez faces a maximum statutory sentence of 5 years in prison for the conspiracy count of conviction, 15 years in prison for each for the bribery counts, five years in prison for the false statement count, 20 years in prison for each wire fraud count, and a 2-year consecutive mandatory minimum sentence for the aggravated identity theft counts.  In addition, he faces a fine of up to $250,000 or triple the bribery proceeds. 

Rolando Suarez previously pled guilty and was sentenced to 24 months in prison.  Patricia Suarez previously pled guilty and was sentenced to 5 years’ probation with 240 days of electronic monitoring.  Rolando and Patricia Suarez were ordered to jointly pay $711,940.46 in restitution.

Fernandez is scheduled to be sentenced by Judge Cooke on August 28, 2019, at 10:30 a.m. (Case No. 17-20780-Cr-Cooke).

U.S. Attorney Fajardo Orshan commended the investigative efforts of the DOT-OIG and FBI in this matter.  She also thanked the Hialeah Police Department, Miami Beach Police Department, and Miami-Dade Police Department for their assistance.  This case is being prosecuted by Assistant U.S. Attorneys Michael Davis and Yeney Hernandez.

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.

The owner of a pain clinic and a pharmacy in South Florida was sentenced today to 78 months in prison followed by three years of supervised release for his role in a $2.2 million Medicare fraud scheme. 

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement. 

Scott Novick, 51, of Hollywood, Florida, was sentenced by U.S. District Judge K. Michael Moore of the Southern District of Florida, who also ordered Novick to forfeit approximately $1.4 million.  Novick had previously pleaded guilty to one count of conspiracy to commit health care fraud.  As part of his plea agreement, Novick agreed to liquidate several financial accounts worth approximately $1,329,886, the proceeds of which were ordered at sentencing to be paid back to Medicare. 

According to admissions made as part of his plea agreement, Novick was the owner of American Pain Management, a pain clinic that had locations in Broward and Palm Beach County.  Novick also owned Pacific Pharmacy of Miami, Florida where the majority of the prescriptions written by American Pain Management were filled.   Novick admitted to submitting approximately $1.2 million in fraudulent claims to Medicare for pain management services purportedly rendered by a doctor who worked at American Pain Management that Novick knew were fraudulently submitted and not eligible for reimbursement.  Novick also admitted that in 2010, in response to legislation passed by the Florida Legislature prohibiting pain clinics from dispensing controlled substances directly from the clinic and other concerns about federal anti-kickback laws, he disguised his ownership of Pacific Pharmacy, falsely naming a relative  so that he could continue dispensing controlled substances. Novick admitted that he knew the doctor at American Pain Management was prescribing controlled substances at inappropriately high levels and that the drugs had not been prescribed for a legitimate medical purpose or in the usual course of professional practice. In fact, Novick knew the doctor would sign prescriptions for patients without conducting a visit with the patient.  Novick admitted he and his clinics received approximately $1.4 million in compensation for his participation in the conspiracy and submitted approximately $1.2 million in claims to  Medicare for the medical services rendered by the doctor that were fraudulently submitted and not eligible for reimbursement.  Pacific Pharmacy was also paid in excess of $1 million for the drugs, which were not eligible for reimbursement.

The FBI and HHS-OIG investigated the case which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida.  The case was prosecuted by Trial Attorney Timothy P. Loper and Acting Assistant Chief Jacob Foster of the Fraud Section.

The Fraud Section leads the Medicare Fraud Strike Force.  Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.  In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

Two men accused of kidnapping a victim at gunpoint and torturing him with a blowtorch were indicted.  One man is currently being detained in South Florida, and the second was arrested and is currently being detained in Spain.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Sonia Quiñones, Chief, Hallandale Beach Police Department, made the announcement.

Sergei Nkorina, 53, of Tenerife, Spain, and Justin Boccio, 33, of Deerfield Beach, were charged by indictment (Case No. 19-20261-CR-CMA) with conspiracy to commit kidnapping, in violation of Title 18, United States Code, 1201(c); kidnapping, in violation of Title 18, United States Code, Section 1201(a); and brandishing a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Section 924(c).  Nkorina and Boccio were previously charged by criminal complaint (Case No. 19-mj-2496; 19-mj-2491). 

According to court records and allegations, Nkorina and Boccio plotted to kidnap and torture a victim in an attempt to obtain tens of thousands of dollars from him.  To facilitate the kidnapping, on or about December 30, 2018, Nkorina and Boccio purchased supplies at a Home Depot in Broward County, Florida.  On or about January 5, 2019, the defendants rented a van from Budget with Florida tag number GHPT19.  Then, on January 14, 2019, Boccio entered the victim’s office and made false representations on paperwork inside of the victim’s office.  Later that same day, Nkorina and Boccio intercepted the victim in a Walmart parking lot in Broward County.  It is further alleged in court records, that Nkorina and Boccio blindfolded the victim and forced the victim into the rental van.  The defendants transported their victim to a storage facility in Margate, Florida, in which they burned the victim’s hands with a blowtorch while threatening to kill him with a firearm and other weapons.  Nkorina and Boccio demanded information about the victim’s home address, including access codes to the victim’s residence.  The next day, Nkorina visited the premises of the victim’s home while carrying a firearm.  Nkorina and Boccio left the victim, with his hands and feet bound, in his vehicle in the parking lot of Cheetah Gentlemen’s Club in Broward County, Florida. 

Each defendant faces a maximum statutory sentence of life in prison if convicted on either one count of kidnapping or one count of conspiracy to commit kidnapping.  In addition, each defendant faces a mandatory minimum term of imprisonment of seven years and a statutory maximum sentence of life in prison if convicted on the firearm charge.

An indictment and a criminal complaint are merely accusations.  A defendant is presumed innocent unless and until proven guilty in a court of law. 

U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI, Hallandale Beach Police Department, and South Florida Violent Crimes Task Force in this matter.  This case is being prosecuted by Assistant U.S. Attorney Lisa H. Miller.

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.

Ariana Farjado Orshan, U.S. Attorney for the Southern District of Florida, and Steven Stuller, Deputy Special Agent in Charge, U.S. Postal Service Office of Inspector General (USPS OIG) announced that Alexei Rivero, 46, of Miami, Florida, pled guilty yesterday before U.S. District Judge Darrin P. Gayles, to a two-count wire fraud indictment, in violation of Title 18, United States Code, Section 1343 (Case No. 18-CR-20452).  Sentencing has been scheduled for August 23, 2019.  At sentencing Rivero faces a maximum possible statutory sentence of up to 20 years in prison. 

According to documents filed with the court and statements made during the plea, Rivero was the vice president of Florida Carrier & Brokerage Service Inc. (“Florida Carriers”), a licensed and bonded freight trucking company in Miami, Florida.  Between March 2011 and September 2013, Florida Carrier was the supplier on twenty-two Highway Contract Route agreements with the U.S. Postal Service.  A Highway Contract Route is a route of travel serviced by a postal contractor to move bulk mail over highways between designated postal facilities.  Rivero dealt with the U.S. Postal Service to facilitate these contracts.  The bids included costs to be paid to drivers hired to service the contracts.  These costs include fringe benefits, as well as estimated payroll taxes for social security, workers compensation, federal unemployment compensation and state unemployment compensation.   

The terms and conditions of the highway contract route contracts also incorporated the McNamara-O’Hara Service Contract Act (“SCA”).  The SCA covers contracts and bid specifications in excess of $2,500, entered into by federal agencies, the principal purpose of which is to furnish services through the use of service employees. The SCA provides covered service workers the right to receive from federal contractors no less than the wage rates and fringe benefits found prevailing in the locality, as provided in wage determinations issued by the Department of Labor.

According to the court record, to facilitate the contract fraud Florida Carrier did not pay, on behalf of its drivers, the contracted costs for payroll taxes.  In addition, they did not provide fringe benefits to drivers, as represented to the U.S. Postal Service.  In addition, contrary to the U.S. Postal Service requirements, Florida Carriers had not hired some of these drivers as employees, but instead as independent contractors.  Florida Carrier provided it drivers with Forms 1099 rather than Forms W-2. 

“Yesterday’s guilty plea reflects the importance and impact of our continuing efforts to protect the rights of workers hired to perform services under government contracts,” said U.S. Attorney Arian Fajardo Orshan.  “Companies that profit from doing business with federal agencies have a duty to provide workers with fringe benefits and pay the requisite tax obligations.  Those who engage in deceptive and fraudulent behavior fueled by greed will continue to be investigated and prosecuted in a federal court of law.”

“We are gratified to have contributed to this investigation and applaud the exceptional work by the United States Attorney’s Office for both protecting the contracting process and overall program costs,” said Steven Stuller, Deputy Special Agent in Charge, USPS OIG. “Along with our law enforcement partners, the USPS OIG will continue to aggressively investigate those who would engage in fraudulent activities designed to defraud the Postal Service.” 

U.S. Attorney Fajardo Orshan commended the investigative efforts of USPS OIG.  This case is being prosecuted by Assistant U.S. Attorney Lois Foster-Steers.

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.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and Steven A. Sund, Acting Chief of Police, U.S. Capitol Police, announced today that John Joseph Kless, 49, of Tamarac, Florida, plead guilty to one count of Making Threatening Communications in violation of Title 18, United States Code, Section 875(c). 

At sentencing, the defendant faces a maximum statutory sentence of up to five years in prison, three years of supervised release, and a $250,000 fine.  Sentencing has been scheduled for August 20, 2019 at 1:15 p.m. before U.S. District Judge Rodolfo A. Ruiz, in Ft. Lauderdale, Florida (Case No. 19CR60109).

According to court documents, on April 16, 2019, John Kless made multiple threatening communications to Congressional office members from California, Michigan, and New Jersey.

U.S. Attorney Fajardo Orshan commended the investigative efforts of the U.S. Capitol Police Threat Assessment Section.  The case is being prosecuted by Assistant U.S. Attorney Marc S. Anton.

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.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Andy Castro, Special Agent in Charge, U.S. Environmental Protection Agency, Criminal Investigation Division (EPA-CID), Atlanta Area Office, Colonel Andrew Kelly, District Engineer, U.S. Army Corps of Engineers (USACE), Jacksonville District, and Frank Robey, Director, U.S. Army Criminal Investigation Command, Major Procurement Fraud Unit, announced that Bonefish Holdings, LLC pled guilty and was sentenced today, before U.S. District Court Judge Jose E. Martinez, in connection with the illegal filling of federally regulated wetlands without a federal permit from USACE following Hurricane Irma in 2017.

Bonefish Holdings, LLC (“Bonefish”), pled guilty to illegally discharging fill material, which is a pollutant, into federally regulated wetlands without a permit issued by the USACE following Hurricane Irma in 2017, in violation of the Clean Water Act, Title 33, United States Code, Sections 1311(a) and 1319(c)(2)(A).  Following acceptance of the guilty plea, Judge Martinez moved immediately to sentencing.  Bonefish was sentenced to 3 years of probation, was ordered to pay a $50,000 criminal fine, and ordered to fully restore the impacted 3.73 acres of federal wetlands according to an approved Restoration Plan (estimated by the defendant to cost approximately $189,000).

Court records and a joint factual statement indicate that Bonefish owned five parcels of ocean-side land totaling approximately 7.41 acres, containing approximately 3.73 acres of federally regulated wetlands in Upper Matecumbe Key, Monroe County. Bonefish wanted to develop the site into a luxury commercial property, however, due to the presence of federally protected wetlands and the existing Village of Islamorada’s Comprehensive Plan and Land Development Regulations, those plans were denied.  The defendant sought and received a Jurisdictional Determination in 2009, reconfirmed in 2013, from the USACE confirming the presence of the federally protected wetlands and making clear that fill activity could only occur with the required permits.  On September 10, 2017, Hurricane Irma hit the Florida Keys as a major Category 4 hurricane.  The defendant hired laborers with the intention, in addition to clearing storm debris, to clear and fill the site.  The defendant’s actions were designed to intentionally take advantage of what it saw as an opportunity to remove significant additional vegetation and the filling of wetlands, in the hope of easing the path for future development of the site.

U.S. Attorney Ariana Fajardo Orshan stated, “The Clean Water Act serves to protect our wetlands and other natural resources in South Florida.  Wetlands, in addition to improving water quality, are important for flood and storm protection. The illegal filling of designated wetlands violates the Act and exposes those who carry out their destruction to federal prosecution.  Compliance with these regulations ensures that we can all continue to enjoy the natural beauty and important benefits of these protected areas.”

“Property owners can not engage in illegal conduct under the guise of hurricane response   to further private development goals and circumvent the regulatory process.  Property owners may remove debris from their land, but that does not allow them to go beyond cleanup and fill jurisdictional wetlands,” said Andy Castro, EPA-CID Special Agent in Charge.  “Under this plea agreement the defendant will fully restore the high-quality wetlands it illegally destroyed.”

 “Compliance and enforcement are an important component of the Corps’ Regulatory program and helps to ensure the public’s interest and our Nation’s aquatic resources are protected, said Robert Halbert, USACE Chief of Jacksonville District’s enforcement section.  “We take violations and unauthorized activities very seriously.”

“Today’s result sends a strong message that our special agents take any and all allegations of criminal acts very seriously,” said Frank Robey, Director of the U.S. Army Criminal Investigation Command’s, Major Procurement Fraud Unit.  “We work shoulder to shoulder with the Department of Justice and our fellow law enforcement agencies to prevent these types of violations and will aggressively continue to do so.”

U.S. Attorney Fajardo Orshan commended the investigative efforts of the EPA-CID, USACE, and the U.S. Army Criminal Investigative Command, Major Procurement Fraud.  The case was prosecuted by Special Assistant U.S. Attorney Jodi A. Mazer of the Economic & Environmental Crimes Section.

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. 

A Georgia podiatrist was sentenced for his participation in a kickback scheme where he prescribed medication that was ultimately paid for by a federal program that provides low cost medication to members of the U.S. Armed Forces.
  
Ariana Fajardo Orshan, U.S. for the Southern District of Florida, Cyndee Bruce, Special Agent in Charge, Department of Defense Criminal Investigative Service (DCIS), Southeast Field Office, Christopher Cave, Special Agent in Charge, U.S. States Postal Service, Office of Inspector General, Southern Area Field Office (USPS-OIG), Frank Robey, Commander, U.S. Army Criminal Investigation Command, Southeast Fraud Field Office, H. Peter Kuehl, Acting Special Agent in Charge, FDA Office of Criminal Investigations (FDA-OCI), Miami Field Office, and Thomas W. South, Deputy Assistant Inspector General for Investigations, U.S. Office of Personnel Management, Office of Inspector General (OPM-OIG), made the announcement. 

Dr. Alap Shah, 44, of Columbus, Georgia, was sentenced to 36 months in prison followed by three years of supervised release. Shah was also ordered to pay a $300 special assessment and restitution in the amount of $55,300.     On January 8, 2019, after a week-long jury trial, Shah was convicted of one count of conspiracy to defraud the United States and receive health care kickbacks and two counts of receiving kickbacks.  According to the evidence introduced at trial, the defendant was a podiatrist in Columbus, Georgia.  In February 2014, Shah was approached by Paul Meek and Gary Small, the owners of PGRX, a marketing company that paid kickbacks to medical professionals in return for the referral of patients with prescriptions to their company for expensive compounded medications. PGRX would then refer these patients to Atlantic Pharmacy, a pharmacy that submitted claims to TRICARE, a health insurance program that provides low cost health insurance to members of the U.S. Armed Forces.

According to the evidence introduced at trial, during the course of the conspiracy, Shah received $55,300 in kickback payments for the referral of patients to PGRX.  These referrals, in turn caused Atlantic Pharmacy to submit claims for medications that cost up to $4782.00 for a one- month supply.  The evidence showed that PGRX and Shah signed phony Medical Director and speaker agreements in order to cover up the true nature of payments.  Throughout the course of the conspiracy, Shah and his co-conspirators engaged in a series of email and text messages in which they discussed the need to recruit TRIACRE beneficiaries and prescribe them expensive compounded medications. Throughout the course of the conspiracy, the evidence demonstrated that Shah wrote prescriptions that caused TRICARE make payments to Atlantic Pharmacy in the approximate amount of $1,033,090.00.

“Dr. Shah chose to line his pockets rather than uphold the trust his patients placed in him,” said U.S. Attorney Ariana Fajardo Orshan.  “The U.S. Attorney’s Office and our law enforcement partners will continue to work tirelessly to identify for prosecution individuals, including healthcare providers, who carry out kickback schemes against Tricare or other federal health care programs for their own personal financial benefit at a loss to the deserving beneficiaries.”
“Shah ignored his Hippocratic Oath when he decided to pursue personal profit over patient care,” said Cyndy Bruce, Special Agent in Charge of the Defense Criminal Investigative Service, Southeast Field Office.  “DCIS and its law enforcement partners are fiercely committed to protecting America’s Warfighters and the integrity of TRICARE, the military health care program.”

“The sentence obtained today has been the culmination of a thorough investigation completed by our agents revealing abuse by medical professionals of Federal benefits programs for personal gain,” said Special Agent in Charge Christopher Cave, of the U.S. Postal Service Office of Inspector General Southern Area Field Office. “The USPS-OIG, along with our law enforcement partners will continue to vigorously investigate these types of cases in order to deter and stop these fraud schemes.”

“Those who choose to attempt to defraud the U.S. healthcare system, undermine the entire system and those providers who obey the law,” said Frank Robey, director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit. “We hope that today's sentencing will deter others from this type of illegal scheme.”

“The FDA recognizes that compounded drugs can serve an important role for patients whose medical needs cannot be met by an FDA-approved drug product. But when doctors disregard the drug approval process for personal profit, they put their patients at risk,” said Acting Special Agent in Charge H. Peter Kuehl, FDA Office of Criminal Investigations Miami Field Office. “We will continue to investigate and bring to justice physicians who endanger the health of unsuspecting American consumers in this manner.”

 “Dr. Shah not only violated the laws of the United States - he violated the trust placed in him by his patients,” said Thomas W. South, OPM’s Deputy Assistant Inspector General for Investigations.  “Every patient deserves health care providers that meet the highest standards of ethical and professional behavior.  Today’s sentencing reminds all providers that they must observe those standards, and reflects the commitment of the OPM-OIG to pursue improper and illegal conduct that puts the health and wellbeing of Federal employees, annuitants, and their families at risk.”

U.S. Attorney Fajardo Orshan thanked DCIS, USPS-OIG, U.S. Army Criminal Investigation Command, FDA-OCI, and OPM-OIG for their investigative efforts in this case. 

The case was prosecuted by Assistant U.S. Attorneys Dan Bernstein and Jonathan Stratton. 

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.

Donald Glenn Beasley (“Beasley”), 56, of Key Largo, was sentenced today by U.S. District Court Judge K. Michael Moore to 108 months in prison and 20 years of supervised release for receiving and possessing child pornography in connection with internet downloads Beasley made of child pornography.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and George Piro, Special Agent in Charge, Federal Bureau of Investigations (FBI), Miami Field Office, made the announcement.

Beasley, a former sheriff’s deputy in Colorado Springs, Colorado, had been downloading child pornography on a peer-to-peer network and utilizing a state of the art encryption when he became known to FBI special agents. According to the stipulated facts filed in court, on September 20, 2018, a search warrant was executed at Beasley’s residence located at 95500 Overseas Highway in Key Largo, Florida. Pursuant to the search warrant, law enforcement searched a Starcraft trailer, which records checks revealed was registered to Beasley.

After a search of the Starcraft trailer, law enforcement seized various electronic items, including Beasley’s laptop and 3 external hard drives. The forensic examination of the items revealed multiple videos and numerous images of child pornography, many involving minor children under the age of 12. On February 11, 2019, Beasley pled guilty to the receipt and possession of child pornography. 

U.S. Attorney Fajardo Orshan commended the investigatory efforts of the FBI in this matter.  She thanked the National Center for Missing and Exploited Children for their assistance.  This case was prosecuted by Assistant U.S. Attorney Alejandra L. López. 

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

 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.

Three residents of Lima, Peru, pleaded guilty yesterday to extortion for overseeing a ring of call centers that threatened and extorted Spanish-speaking victims in the United States, the Department of Justice and U.S. Postal Inspection Service announced.

Jesus Gerardo Gutierrez Rojas, 37, Maria de Guadalupe Alexandra Podesta Bengoa, 38, and Virgilio Ignacio Polo Davila, 43, were extradited from Peru in April and pleaded guilty before U.S. District Court Judge Roy K. Altman in Fort Lauderdale yesterday. As part of his guilty plea, Gutierrez admitted that he oversaw a number of affiliated call centers in Peru that falsely told Spanish-speaking victims across the United States that they had incurred debts and would suffer various consequences for failure to pay off the debts that they did not, in fact, owe. As part of their guilty pleas, Podesta and Polo admitted that they managed and supervised two of these affiliated call centers that used extortion to obtain money from U.S. victims. 

“The Department of Justice is committed to identifying and prosecuting criminals who target and extort U.S. consumers,” said Assistant Attorney General Jody Hunt. “Yesterday’s guilty pleas demonstrate that those who threaten U.S. consumers by phone cannot escape justice by placing their calls from abroad. Working with our international partners, we will bring them to justice no matter where they reside. I thank the Republic of Peru for extraditing these defendants to face justice in our courts and the U.S. Postal Insecption Service for its work investigating this case.” 

As part of their guilty pleas, Podesta and Polo admitted that their Peruvian call centers contacted U.S. consumers, many of whom were elderly and vulnerable, using Internet-based calls. Claiming to be attorneys and government representatives, Podesta, Polo and their callers falsely told victims that they failed to pay for or receive a delivery of products and threatened them into paying fraudulent settlements for nonexistent debts. The callers falsely threatened victims with lawsuits, negative marks on their credit reports, imprisonment, or immigration consequences if they did not immediately pay for the purportedly delivered products and “settlement fees.” Many victims made payments based on these baseless extortionate threats.  

Gutierrez was the general manager of a larger company where he worked in partnership with Podesta, Polo, and others to facilitate their extortion scheme. The defendants’ associates in Miami collected the payments and sometimes shipped packages to victims in the U.S. 

“If an individual who claims to be an attorney or government representative calls and instructs you to pay money to: receive products you did not buy; avoid a lawsuit; avoid imprisonment; or avoid a change in immigration status, hang up and immediately report that threat to www.ftccomplaintassistant.gov,” said U.S. Attorney for the Southern District of Florida Ariana Fajardo Orshan. “I thank the Republic of Peru for extraditing the defendants in this case and the U.S. Postal Inspection Service for their unwavering commitment to investigate and pursue those who threaten U.S. consumers.”

“The U.S. Postal Inspection Service will continue to aggressively investigate and pursue those who threaten U.S. consumers and extort them of their hard earned money, regardless of what country they operate from,” said U.S. Postal Inspector in Charge Antonio J. Gomez. “The U.S. Postal Inspection Service appreciates the continued partnership with the Department of Justice’s Consumer Protection Branch in pursuing South American call center operators who victimize consumers through the U.S. mail.” 

With yesterday’s three guilty pleas, all five defendants who have been charged in connection with this large-scale extortion scheme have now pleaded guilty.

Trial Attorney Phil Toomajian of the Department of Justice’s Consumer Protection Branch is prosecuting the case. The Postal Inspection Service investigated the case. The Criminal Division’s Office of International Affairs, the U.S. Attorney’s Office of the Southern District of Florida, the Diplomatic Security Service, and the Peruvian National Police provided critical assistance.

Four Broward County residents were sentenced to terms between 34 years and life in prison today, after having been convicted at trial for their participation in a string of armed robberies using firearms.  One defendant was also convicted of kidnapping four victims. 

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office and Ari C. Shapira, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, made the announcement.

On March 15, 2019, following a four-week jury trial, all four defendants were convicted.  Jerome Simmons, 31, of Fort Lauderdale, Florida, was convicted of two counts of Hobbs Act robbery, two counts of brandishing a firearm in furtherance of a crime of violence, and one count of conspiracy to commit Hobbs Act robbery.  Adrian Hardy, 34, of Fort Lauderdale, Florida, was convicted of one count of Hobbs Act robbery, two counts of brandishing a firearm in furtherance of a crime of violence, one count of conspiracy to commit Hobbs Act robbery, and four counts of kidnapping. Christopher Brinson, 33, of Fort Lauderdale, Florida, was convicted of two counts of Hobbs Act robbery, one count of brandishing a firearm in furtherance of a crime of violence, and one count of conspiracy to commit Hobbs Act robbery.  Emmory Moore, 34, of Coral Springs, Florida, was convicted of one count of Hobbs Act robbery, one count of brandishing a firearm in furtherance of a crime of violence, and one count of conspiracy to commit Hobbs Act robbery.

U.S. District Judge Kenneth A. Marra sentenced the defendants today.  Simmons was sentenced to three consecutive life sentences. Hardy was sentenced to 480 months in prison.  Brinson was sentenced to a total of 408 months in prison.  Moore was sentenced to two consecutive life sentences. 

According to the court record, including evidence introduced at trial, on March 3, 2017, Christopher Brinson entered Class Jewelers in Deerfield Beach, Florida and engaged one of the employee’s in conversation. Approximately, ten minutes later, Moore and Simmons entered the store, dressed in wigs, makeup and women’s clothing. They held the two employees at gunpoint and demanded they open the safe. Moore and Simmons stole jewelry and other items from the store then left in a waiting vehicle.

On March 15, 2017, historical cell site information showed that cell phones owned by Simmons, Hardy, Brinson, and Moore traveled to Spring Hill, Florida.  On March 6, 2017, two men dressed as women entered Lily’s Jewelry in Spring Hill and held the owner at gunpoint while stealing the store’s merchandise. One of the individuals dropped a cellular phone, which was later tied to Moore.

On March 31, 2017, historical cell site information showed that cell phones owned by Hardy, Brinson, and Moore traveled to Valdosta, Georgia. Hotel records established that Simmons checked into a local inn that evening. On April 1, 2017, three men dressed as women entered Bishop’s Jewelers in Valdosta. While holding the business owners at gunpoint, the men stole money, jewelry, and a firearm from the store’s safe. On April 6, 2017, during a traffic stop, the Fort Lauderdale Police Department recovered the firearm stolen in that robbery from the trunk of a car driven by Moore.

On April 16, 2017, three men dressed as women, left a white Jeep and entered LSO Jewelers in Port St. Lucie, Florida. Holding the owner and an employee at gunpoint, the men attempted to steal the store’s jewelry stock. An off duty state agent called the police and reported the robbery. As police arrived, the waiting white Jeep pulled away and the men inside the store fled on foot. Port Saint Lucie officers located Simmons in a nearby hospital parking lot wearing only his underwear and a sock.  Brinson, who was driving the white Jeep, was located at a nearby restaurant. Hardy escaped into a nearby retirement community and held the four residents, snowbirds from Toronto, Ontario, at gunpoint for several hours, eventually forcing them to drive him from Port St. Lucie to Fort Lauderdale.

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.   PSN was reinvigorated in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and ATF in this matter. She thanked the Broward Sheriff’s Office, Fort Lauderdale Police Department, Port St. Lucie Police Department, Hernando County Sheriff’s Office, Valdosta Police Department, and U.S. Marshals Service for their assistance.  The case was prosecuted by Assistant U.S. Attorneys Jodi L. Anton and Anita White.

Related court documents and information can 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.

Today, Princess Cruise Lines Ltd. (Princess) and its parent, Carnival Cruise Lines & plc (together “Carnival”) were ordered to pay a $20 million criminal penalty and will be subject to enhanced supervision after admitting to violations of probation attributable to senior Carnival management in a case in which Princess had already paid $40 million.

Princess was convicted and sentenced in April 2017, after pleading guilty to felony charges stemming from its deliberate dumping of oil-contaminated waste from one of its vessels and intentional acts to cover it up. While serving 5 years of probation, all Carnival related cruise lines vessels eligible to trade in U.S. ports were required to comply with a court approved and supervised environmental compliance plan (ECP), including audits by an independent company and oversight by a Court Appointed Monitor. Numerous violations have been identified by the company, the outside auditor, and the court’s monitor during the first two years of probation, including “major non-conformities” as defined by the ECP.

Carnival admitted it was guilty of committing six violations of probation. Two of the violations involved interfering with the court’s supervision of probation by sending undisclosed teams to ships to prepare them for the independent inspections required during probation. When this was first discovered in December 2017, U.S. District Court Judge Patricia Seitz directed that the practice cease and ordered additional inspections as a consequence. However, without seeking court approval, a second undisclosed program was started shortly thereafter. Documents filed in court showed that a purpose of the vessel visit programs was to avoid adverse findings during the inspections.

“This case demonstrates the importance of identifying and correcting compliance problems at their source. Carnival sought to avoid the discovery of problems during the audits rather than learn from them. Carnival’s deliberate deception undermined the court’s supervision of probation,” said Assistant Attorney General Jeffrey Bossert Clark for the Justice Department’s Environment and Natural Resources Division. “I want to take this opportunity to thank and commend the Office of Probation and the Court Appointed Monitor for the close attention that they have devoted to this important matter post-conviction.” 

Carnival’s Chairman of the Board, Chief Executive Officer and Chief Financial Officer attended the hearing pursuant to court’s order and were asked to personally pledge their commitment to correcting the company’s compliance issues and corporate culture. In addition, senior management of each operating cruise line of Carnival Corporation & plc were present for the court proceedings.

The company admitted to other violations of probation today including:

• Failing to establish a senior corporate officer as a corporate compliance manager with responsibility and sufficient authority for implementing new environmental measures required during probation;
• Contacting the Coast Guard seeking to re-define the definition of what constitutes a major non-conformity under the ECP without going through the required process and after the government had rejected the proposal and told the company to file a motion with the court if it wanted to pursue the issue;
• Deliberately falsifying environmental training records aboard two cruise ships; and
• Deliberately discharging plastic in Bahamian waters from the Carnival Elation and failing to accurately record the illegal discharges. Prosecutors advised the Court that this particular instance was an example of a more widespread problem, identified by the external audits, in failing to segregate plastic and non-food garbage from waste thrown overboard from numerous cruise ships.

Under the terms of the settlement, Carnival will do the following:

• Pay a $20 million criminal penalty;
• Issue a statement to all employees in which Carnival’s CEO accepts management’s responsibility for the probation violations;
• Restructure the company’s corporate compliance efforts, including appointing a new chief Corporate Compliance Officer, creating an Executive Compliance Committee across all cruise lines, adding a new member to the Board of Directors with corporate compliance expertise, and train its Board of Directors;
• Pay up to $10 million per day if it does not meet deadlines for submitting and implementing needed changes to its corporate structure;
• Pay for 15 additional independent audits per year conducted by the third-party auditor and Court Appointed Monitor (on top of approximately 31 ship audits and 6 shore-side audits currently performed annually);
• Comply with new reporting requirements, including notifying the government and court of all future violations, and specifically identifying foreign violations and the country impacted; and
• Make major changes in how the company uses and disposes of plastic and other non-food waste to urgently address a problem on multiple vessels concerning illegal discharges of plastic mixed with other garbage.

The revised sentence imposed by Judge Seitz also requires that Princess remain on probation for a period of three years.

The case is being prosecuted by Richard A. Udell, Senior Litigation Counsel with the Environmental Crimes Section of the Department of Justice and Assistant U.S. Attorney Thomas Watts-FitzGerald, Deputy Chief, Economic & Environmental Crimes Section for the Southern District of Florida, with assistance from Lt. Commander Anton DeStefano of the U.S. Coast Guard.

The Impersonation Scheme Involved Wire Fraud, Fake Diplomatic License Plates, Expensive Jewelry, Artwork, Luxury Automobiles, Yachts, Private Jets, and International Trips

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Frederick R. Stolper, Special Agent in Charge, U.S. Department of State, Diplomatic Security Service (DSS), Miami Field Office, announced that Anthony Gignac, a/k/a “Khaled Al-Saud,” a/k/a “Khalid Al-Saud,” a/k/a “Khalid Bin Al-Saud,” a/k/a “Khalid Bin Sultan Al-Saud,” a/k/a “Sultan Bin Khalid Al Saud,” 48, of Miami, was sentenced today by U.S District Judge Cecilia M. Altonaga to a total of 224 months in prison for fraudulently assuming the identity of a member of the Saudi Royal family in order to build relationships worldwide, including in South Florida, receive gifts, and conduct a large-scale scheme to defraud would-be investors.  

“Over the course of the last three decades, Anthony Gignac has portrayed himself as a Saudi Prince in order to manipulate, victimize, and scam countless investors from around the world.  As the leader of a sophisticated, multi-person, international fraud scheme, Gignac used his fake persona – Prince Khalid Bin Al-Saud – to sell false hope.  He sold his victims on hope for their families, careers, and future.  As a result, dozens of unsuspecting investors were stripped of their investments, losing more than $8 million,” stated U.S. Attorney Fajardo Orshan.  “Today, in a federal court of law, justice spoke for the victims, and Anthony Gignac will now face years in prison.  The U.S. Attorney’s Office commends the dedicated efforts of our partners with the Diplomatic Security Service for their commitment to this extensive investigation, their international reach, and their protection of our global community.”

“The Diplomatic Security Service is firmly committed to investigating allegations of crime related to international fraud schemes,” said DSS Special Agent in Charge Stopler. “Our tremendous success in finally closing this case could never have been possible if not for the global reach of DSS and the close cooperation of the U.S. Attorney’s Office.”

Gignac previously pled guilty to impersonating a foreign diplomat or foreign government official, in violation of Title 18, United States Code, Section 915, aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(1)(a), wire fraud, in violation of Title 18, United States Code, Section 1343, and conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349 (Case No. 17-CR-20891).

Beginning as early as May of 2015, Gignac claimed to be a Saudi Arabian Prince by the name Khalid Bin Al-Saud.  To support his fraudulent persona, Gignac purchased fake diplomatic license plates, a fake Diplomatic Security Service badge for his bodyguards, traditional Saudi garb, luxury goods consistent with the lavish lifestyle of a Saudi Royal, and business cards referring to himself as “Prince,” “His Royal Highness,” and/or “Sultan.”  He ran an Instagram account depicting himself as a prince, with pictures posted of Saudi Royal family members, including the king, with captions such as “my dad.” Gignac referred to himself as a prince when meeting with investors, in emails, and over the phone.  He travelled with security, and demanded that certain royal protocol (i.e., gift giving) be followed when individuals met him to engage in business deals.

Gignac used his assumed persona to con investors by claiming that he had access to lucrative business deals by virtue of his royal status.  To aid in that scheme, Gignac and a co-conspirator formed a fraudulent investment company called Marden Williams International LLC (“MWI”).  Using MWI, Gignac falsely claimed access to exclusive business ventures throughout the world, including a pharmaceutical company in Ireland, a casino in Malta, luxury hotels, and a jet-fuel trading platform in the Middle East.  In addition, Gignac offered investors the chance to purchase his alleged stake in Saudi Arabia’s state-owned oil company – Saudi Aramco.  Gignac supported his fraudulent scheme by forging documents from high-ranking Saudi officials purporting to verify his status as a royal, his access to great wealth, and his stake in Saudi Aramco.

Investors from all over the world were scammed into investing with Gignac and MWI.  In all, investors from the United States, Canada, the United Kingdom, Switzerland and Hong Kong sent Gignac close to $8 million.  Those funds were not put into business opportunities, legitimate investments, or any interest-yielding source.  Instead, Gignac used the money to finance his lavish lifestyle, including Ferraris, Rolls-Royces, yachts, expensive jewelry, designer clothing, travel on private jets, and a two-bedroom property on Fisher Island.  Investors were also tricked into giving Gignac extravagant gifts like paintings, jewelry, and memorabilia.        

In addition, on November 19, 2017, Gignac flew into John F. Kennedy International Airport in New York, from London, using a passport in the name of another individual. 

According to the court record, Gignac has executed similar schemes in the past.  Between 1988 and the present, the Defendant has been arrested or convicted eleven different times for prince-related schemes.

A restitution hearing has been scheduled for August 30, 2019, at 2:00 p.m., before Judge Altonaga in Miami.

U.S. Attorney Fajardo Orshan commended the investigative efforts of the DSS in this matter.  The case was prosecuted by Assistant U.S. Attorney Frederic Shadley.  Assistant U.S. Attorney Nicole Grosnoff is handling the asset forfeiture aspects of 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.

A former employee of the United States Army Corps of Engineers was charged with making false, material statements to law enforcement agents.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Colonel Andrew D. Kelly, Jr., U.S. Army Corps of Engineers, John F. Khin, Special Agent in Charge, Department of Defense Criminal Investigative Service (DCIS), Miami Field Office, Casey Oravetz, Assistant Special Agent in Charge, National Oceanographic and Atmospheric Administration, Andres Castro, Special Agent in Charge, Environmental Protection Agency Criminal Investigations Division, Atlanta Area Office, and Frank Robey, Director, U.S. Army Criminal Investigative Command, made the announcement. 

            Tracey Jordan Sellers, 49, of Duval County, was charged by information with count of making a false official statement, in violation of 18 U.S.C. § 1001(a)(2).  If convicted, Sellers faces a maximum statutory sentence of five years in prison.

            According to the allegations in the information, the defendant was a civilian employee of the U.S. Army Corps of Engineers.  Federal ethics laws and regulations prohibit federal employees from engaging in outside employment that conflicts with employees’ official duties.  The information alleges that, during an interview with federal law enforcement agents, Sellers made material false statements about her performance of part-time work outside the scope of her official responsibilities for a consulting company which has ongoing business with the Army Corps.  Sellers no longer works for the Army Corps.                                                  

            Ms. Fajardo Orshan commended the investigative efforts of the Defense Criminal Investigative Services, National Oceanographic and Atmospheric Administration, Environmental Protection Agency Criminal Enforcement Division, and the U.S. Army Criminal Investigative Command and the cooperation of the U.S. Army Corps of Engineers.  This case is being handled by Assistant U.S. Attorney Jaime Raich.

            An information is merely an accusation and a defendant is presumed innocent unless and until proven guilty.

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.

A Coral Springs business owner pled guilty today to participating in a visa fraud immigration scheme by attempting to obtain visas with false information for individuals from overseas.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI), Miami Field Office, made the announcement. 

Jenny Hernandez, 51, of Parkland, pled guilty to a four count Information charging her with visa fraud, in violation of Title 18, United States Code, Section 1546(a) before U.S. Magistrate Judge Patrick M. Hunt (Case No. 19-601134-CR-ZLOCH).  The defendant faces a possible maximum statutory sentence of up to 10 years in prison on each count.  The sentencing hearing has not yet been scheduled.

According to the court record, including stipulated facts and statements made during hearings, Hernandez knowingly made false material statements in immigration documents, specifically Form I-140’s, Immigrant Petitions for Alien Workers.  Hernandez owned and operated the Immigration Form Center, Inc. (IFC) in Coral Springs.  The defendant stated in applications she filed with U.S. Citizenship & Immigration Services (USCIS) that individuals from overseas were to be employed at certain businesses as multinational executives or managers.  However, these businesses never knew about these individuals and, furthermore, never made employment offers to them.  Hernandez profited from these misrepresentations, by receiving between $14,200 to $50,900 from individual applicants.  Hernandez also filed an application for an overseas individual to work at her bakery in Coral Springs, as a multinational executive or manager, when the individual was only selling jewelry inside the bakery.  This individual paid $64,000 to the defendant.  

All of these petitions were completed at IFC in Coral Springs and subsequently filed with USCIS.  In addition to these documents, Hernandez filed additional documents accompanying the I-140 Petitions, including including I-485 applications to adjust for permanent residency in the United States.  All of these payments were deposited into business checking accounts primarily controlled by the defendant.

            U.S. Attorney Fajardo Orshan commended the investigative efforts of HSI in this matter.  She thanked the members of USCIS for their assistance.  The case is being prosecuted by Assistant U.S. Attorney Randy Katz. 

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.

A Highlands County, Florida man has been charged with armed drug trafficking.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Office and Paul Blackman, Sheriff, Highlands County Sheriff’s Office, made the announcement.

Samuel Martinez, 40, of Highlands County, has been charged by indictment with possession with intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm (Case No. 19-14022-CR-Rosenberg).  According to the indictment, the crimes occurred on or about March 12, 2019, in Highlands County.  If convicted as charged, Martinez faces a mandatory minimum term of 15 years in prison and a maximum of life in prison.

An indictment merely contains allegations.  A defendant is presumed innocent unless and until proven guilty in a court of law.

U.S. Attorney Fajardo Orshan commended the investigative efforts of DEA and the Highlands County Sheriff’s Office in this matter.  This case is being prosecuted by Assistant U.S. Attorney Michael D. Porter.

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.

Lewis Bennett, 42, a dual citizen of Australia and the United Kingdom, was sentenced today by U.S. District Judge Federico A. Moreno to 96 months in federal prison, after having previously pled guilty to involuntary manslaughter for killing his wife, Isabella Hellman, while on board a sailing vessel on the high seas.

Ariana Fajardo Orshan, U.S. Attorney of the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Zinnia P. James, Special Agent in Charge, U.S. Coast Guard Investigative Service (CGIS), Southeast Region, made the announcement. 

According to the court docket, including an agreed upon factual proffer, Bennett is an experienced sailor who received a certification from the Royal Yachting Association in the United Kingdom as a Coastal Skipper.  This training included instruction on emergency procedures such as man overboard protocols and night sailing safety.  Bennett also had hands-on sailing experience on the open water for extended periods of time, including a three month voyage from St. Maarten to Australia.  In contrast to Bennett, his wife had not been trained in emergency sailing procedures, did not have a sailing certification and had substantially less sailing experience. 

In late April 2017, Bennett and Ms. Hellman set sail from St. Maarten on board the vessel “Surf Into Summer,” with the intention of sailing to the United States.  On May 14, 2017, Bennett and Ms. Hellman departed Cuba on Bennett’s catamaran (“the vessel”), bound for Florida. At approximately 8 p.m. that evening, Bennett had Ms. Hellman take over control of the vessel. Bennett did not require Ms. Hellman to wear a life jacket, harness, or personal locator beacon (“PLB”) while at the helm during this night watch.

In the early morning hours of May 15, 2017, Bennett was awoken by a loud noise, while the vessel was on the high seas.  He climbed to the exterior of the boat and observed that the sails and rigging were loose.  The helm of the vessel was unmanned, and his wife was not there.   Bennett could not recall whether he called out for his wife.  He did not deploy flares to illuminate the area in order to look for Ms. Hellman or to signal his position in the open water for safety and/or recovery.  Additionally, Bennett did not search for Ms. Hellman with either the catamaran or the attached dinghy (a small boat).  Further, Bennett did not immediately activate any emergency equipment or utilize the satellite phone to signal and/or call for help to locate Ms. Hellman.  Bennett ultimately abandoned the vessel and boarded the life raft.  When Bennett abandoned the vessel, the catamaran and the dinghy attached to it were inoperable.  The factual proffer also states that the United States has evidence in the form of expert testimony that the catamaran was intentionally scuttled.

Before Bennett abandoned the catamaran and boarded the life raft, Bennett loaded various items from the vessel onto the life raft, including a suitcase, two duffle bags, a backpack, water, unexpended parachute flares, a radio transmitter, buoys, food, and silver coins.   It was not until Bennett boarded the life raft that he called for help and reported his wife missing, approximately 45 minutes after he was awakened. 

The U.S. Coast Guard received an emergency alert from Bennett when he was approximately 26 nautical miles west of Cay Sal Bank, Bahamas, upon the high seas and in international waters.  A Coast Guard helicopter ultimately rescued Bennett shortly after 4:30 a.m. and transported him to the Marathon Jet Center, in Marathon, Florida, which is located in the Southern District of Florida.

In the following days, Coast Guard ships, planes, and helicopters searched over approximately 4,980 square miles. On the evening of May 18, 2017, the Coast Guard suspended the search. To date, Ms. Hellman has not been found and has not contacted any of her family.  Based on all evidence, Ms. Hellman is dead.  

According to the stipulated factual proffer, Ms. Hellman’s death occurred as a result of Bennett’s knowledge of circumstances that existed that could have reasonably enabled him to foresee the threat to life to which his acts or failures to act might subject another, namely Ms. Hellman; and his gross negligence, amounting to wanton and reckless disregard for human life, in acting or failing to act as a result of that.

Bennett was arrested in connection with criminal charges related to these events in Miami on February 20, 2018.

After completing his prison sentence, Bennett will serve 3 years on supervised release.  He was also ordered to pay $22,910 in restitution, the amount of money seized by the FBI from the defendant’s backpack upon his arrest, to Bennett and Ms. Hellman’s daughter.

U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and CGIS in this matter.  This case was prosecuted by Assistant U.S. Attorney Kurt K. Lunkenheimer and Special Assistant U.S. Attorney Emily A. Rose.

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.

Following a six-day trial before U.S. District Judge Ursula Ungaro, a Miami jury convicted Javier Estepa, 48, of Davie, and Diego Alejandro Estepa Vasquez, 37, of Boca Raton, of conspiracy to commit wire fraud, wire fraud, and false statements to a federal agency.  Estepa and Vasquez were the president and vice-president, respectively, of Aaron Construction Group, Inc. (“Aaron Construction”).

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Rafiq Ahmad, Special Agent in Charge, U.S. Department of Labor, Office of the Inspector General (DOL-OIG), Nadine Gurley, Special Agent in Charge, U.S. Department of Housing and Urban Development, Office of the Inspector General (HUD-OIG), Mary T. Cagle, Inspector General, Miami-Dade County, Office of the Inspector General (OIG), made the announcement.

On May 24, 2019, Judge Ungaro sentenced Estepa to 51 months in prison to be followed by three years of supervised release; and sentenced Vasquez to 41 months in prison to be followed by three years of supervised release.

The evidence at trial established that, between June 2014 and December 2016, the defendants engaged in a scheme to unlawfully enrich themselves by securing Miami-Dade Public Housing and Community Development (PHCD) bid awards and causing payments on those contracts by making materially false and fraudulent representations, and by the concealment of material facts concerning, among other things, the utilization of subcontractors, the number of workers employed on the construction projects, the hours worked, and the status of those workers as employees of Aaron Construction.

Estepa and Vasquez submitted bids to PHCD, on behalf of Aaron Construction, for specific renovation and repair of low income housing in various locations throughout Miami-Dade County.  In the bids, Estepa and Vasquez falsely and fraudulently represented that (1) no subcontractors would be utilized in connection with the contract, (2) that each worker would be paid for each hour worked, including for overtime, according to the Davis Bacon prevailing wage rates, and (3) that Aaron Construction would obtain workers’ compensation insurance, in accordance with state laws.  However, immediately after being awarded the contracts, Aaron Construction entered into agreements with subcontractors which set a fixed payment at very low amounts for their work, regardless of the number of hours worked.  In addition, Aaron Construction required subcontractors to provide the information of two or three subcontractor employees so that they could be placed on Aaron Construction’s certified payroll to appear as if they were Aaron Construction employees.  The evidence at trial established that Aaron Construction failed to report accurately the hour employees worked on the job sites or the specific categories of work performed.

In order to obtain payment from PHCD, Estepa and Vasquez submitted Periodic or Final Estimate for Payment packets to PHCD containing false and fraudulent certified payroll records that listed fewer workers than were actually employed on the project and falsified the number of hours worked.  In addition, the evidence at trial established that the workers were not paid the appropriate wages under the Davis Bacon Act, nor were the workers paid overtime.  Estepa and Vasquez falsely and fraudulently stated that they had no subcontractors working on the project, falsely characterizing the workers as employees of Aaron Construction, when in fact they were subcontractors and subcontractor employees.  In addition, Estepa and Vasquez submitted with the Periodic or Final Estimate for Payment packets sworn statements of compliance that falsely and fraudulently certified that the information submitted was true and correct.  Due to these false and fraudulent submissions, PHCD transferred over $3.9 million dollars in funds to bank accounts controlled by Estepa and Vasquez.

U.S. Attorney Fajardo Orshan commended the investigative efforts of DOL-OIG, HUD-OIG, and Miami-Dade County, Office of the Inspector General.  The case was prosecuted by Assistant U.S. Attorneys Joshua S. Rothstein and John Gonsoulin.

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

Sabrinea Lallonie Brooks, 28, of St. Lucie County, Florida, pled guilty to participating in a wire fraud scheme and embezzling funds from employers.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, and Javaro Sims, Chief, Delray Beach Police Department, made the announcement.

Brooks pled guilty to a criminal Information charging: seven counts of wire fraud, in violation of Title 18, United States Code, Section 1343; one count of access device fraud, in in violation of Title 18, United States Code, Section 1029(a)(5);and one count of forged security, in violation of Title 18, United States Code, Section 513(a) (Case No. 19-CR-14020).  The guilty plea was entered before U.S. Magistrate Judge Shaniek M. Maynard, in Ft. Pierce.  Brooks is scheduled to be sentenced by U.S. District Judge Robin L. Rosenberg on July 26, 2019, in Ft Pierce.  She faces up to 20 years in prison per count of wire fraud, up to 15 years in prison for access device fraud, and 10 years in prison for the forged security conviction.  In addition, Brooks faces up 5 years of supervised release and must pay restitution to the victims of the fraudulent scheme.

According to the criminal Information and a Stipulated Factual Basis filed with the Court, between February 2014 through December 2015, Brooks was employed as a billing and collections specialist by companies Apex Billing, LLC, Dream Center for Recovery, Supportive Healthcare Services, and Wellness Center of Palm Beach, LLC.  Brooks without authorization, contacted third party issuer agents of insurance companies and using fraudulent pretenses and making materially false representations, caused the third party issuer agents of insurance companies to give her treatment provider registration codes, pin numbers, and links.  Brooks used this information to access the third party issuer agents’ website, to create new user accounts, to re-register treatment providers, and change the method of payment and/or the routing of insurance provider payments, intended for treatment providers.  As a result of her wire fraud, Brooks received at least $463,402.30 in illegal proceeds.         

While working for these companies, Brooks also intercepted “Vpayments”/ virtual credit cards issued as insurance payments to several treatment providers. Thereafter, Brooks processed some of the “Vpayments”/ virtual credit cards using the Square merchant processing mobile payment program.  Brooks created several Square accounts, which she linked to bank accounts under her control.  Because of her access device fraud, Brooks received at least $57,632.76, in illegal proceeds.

While working for Wellness Center of Palm Beach, LLC, as a billing manager, Brooks also created a fraudulent company, and opened SunTrust Bank account, in the name of “Wellness Ctr of Palm Beach Billing LLC.”  Thereafter, Brooks deposited checks payable to Wellness Center of Palm Beach, LLC, into the SunTrust Bank account that were endorsed with her signature and a stamp listing her fraudulent billing company.  Because of her theft of Wellness Center of Palm Beach, LLC checks, Brooks received at least $352,521.72, in illegal proceeds.

U.S. Attorney Fajardo Orshan commended the investigatory efforts of the USSS and Delray Beach Police Department in this matter. This case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.

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