Southern District of Florida

Following a five-day trial before U.S. District Court Judge Robert. N. Scola, Jr., a jury convicted Tamara Jeune, a/k/a “Tamara Voltaire”, 44, of West Palm Beach, of criminal tax offenses arising out of a five-year scheme to defraud the Internal Revenue Service (IRS).

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, made the announcement.

According to the evidence presented at trial, Jeune was the owner and operator of at least two tax preparation businesses: Investment Equity Development, Inc.; and Jacob G. Jeune, P.A. As part of her scheme, Jeune, who previously was convicted of tax preparation fraud, fraudulently obtained Electronic Filing Identification Numbers (EFINs) and Preparer Tax Identification Numbers (PTINs) in the names of other individuals who acted as “straw” EFIN and PTIN holders.  The defendant then used those EFINs and PTINs to file fraudulent federal income tax returns with the IRS using stolen personal identifying information (PII) of other individuals, including her clients’, without their authorization and knowledge.  These tax returns contained false wages, employment information, expenses, and deductions.  Jeune also stole the PII of minors, who were at times her clients’ dependents, and then submitted false tax returns in their names. 

As part of her scheme, the defendant directed the IRS to send the tax refund money associated with the false and fraudulent federal income tax returns to bank accounts that she controlled. She then used the money to pay for her personal expenses.  The IRS suffered a loss in excess of $700,000.

Jeune is scheduled to be sentenced by Judge Scola on July 31, 2019, at 8:30 a.m.  This case is being prosecuted by Assistant U.S. Attorneys Roger Cruz and 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.

The last two of 10 defendants were sentenced for their participation in a multi-state identity theft, credit card fraud, and money laundering scheme. 

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

According to stipulated facts filed in court and statements made in court, Noe Reina De La Cruz, 28, of Doral, Raul Gil-Rodriguez, 36, formerly of Paramus, New Jersey, Ney Antonio Lopez De La Cruz, 25, of Doral, Domingo Reyes, 41, formerly of Doral and New York, New York, Yousef Michi, 35, of New York, New York, Esteban Ochoa, 35, of New York, New York, Vantroy Sanchez, 40, of New York, New York, Jeffrey Batista, 28, of New York, New York, Carlos David Franco, 32, of Miami, and Pedro De La Cruz, 49, of New York, New York, used the personal identifying information of other individuals to open credit card accounts without the victims’ knowledge or consent.  The conspirators used the fraudulently obtained credit cards to purchase electronics, purchase home goods, purchase designer shoes, purchase Rolex watches, travel across the country and abroad, pay for spa services, and pay for medical procedures – such as Lasik surgery – for themselves and others. 

For example, according to court documents, on or about March 30, 2017, Noe Reina De La Cruz used a Citibank credit card account number ending in 4669, issued to victim “E.R.,” without the permission and authority of “E.R.,” to purchase items including a Rolex watch, totaling approximately $14,065.  On another occasion, on or about May 11, 2017, Noe Reina De La Cruz used a credit card bearing the name “S.D.,” encoded with Citibank account number ending in 3349, issued to identity theft victim “D.A.,” to purchase items and spa services at the Acqualina Resort and Spa in Sunny Isles Beach, which totaled approximately $1,299.  The indictment further alleges that, on or about Mary 12, 2017, Raul Gil-Rodriguez used a Citibank credit card account number ending in 2766, issued to identity theft victim “P.L.,” to purchase eye surgery totaling approximately $5,000.  Noe Reina De La Cruz also used fraud proceeds and laundered funds to purchase property in Davie that was valued at more than $600,000.

Some conspirators also resold fraudulently obtained electronics, such as Apple products and Nest thermostats, for a percentage of their face value, to Yousef Michi and Carlos David Franco, in order to obtain cash, checks, or wire transfers to Royal Elite Investments Corp., a shell company that Noe Reina De La Cruz controlled, and to companies operated by Raul Gil-Rodriguez. 

Gil-Rodriguez and Reyes were the final two defendants sentenced in this case.  U.S. District Judge Marcia G. Cooke previously imposed sentences ranging from probation for one defendant to 97 months in prison for the two leaders of the ring, Noe Reina De La Cruz and Raul Gil-Rodriguez.  In addition to their terms of incarceration, the defendants were sentenced to pay restitution, special assessments, and forfeiture money judgments that totaled more than $1.5 million.

U.S. Attorney Fajardo Orshan commended the special agents of ICE-HSI Miami Field Office and ICE-HSI New York Field Office who conducted the investigation.  Assistant U.S. Attorney Lisa H. Miller prosecuted the case, and Assistant U.S. Attorneys Nalina Sombuntham and Nicole Grosnoff are handling the asset forfeiture component of the case.

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

An owner of a now-defunct Miami, Florida, home health care agency was sentenced today to 30 months in prison for his participation in a scheme that caused Medicare to pay approximately $1 million in false and fraudulent claims for home health care services that were never provided. 

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 George L. Piro of the FBI’s Miami Field Office made the announcement.

Dennys Hernandez, 47, of Riga, Michigan, was sentenced by U.S. District Judge Robert N. Scola of the Southern District of Florida.  Judge Scola also ordered Hernandez to pay $951,473 in restitution, jointly and severally with his co-conspirators, and to forfeit the same amount.  Hernandez pleaded guilty in March 2019 to one count of conspiracy to commit health care fraud and wire fraud.

According to admissions made as part of his plea agreement, Hernandez was an undisclosed co-owner of Medsel Home Health Care Corp. (Medsel), which purported to operate as a home health care agency.  Hernandez admitted that he and his co-conspirators used Medsel to fraudulently bill Medicare by submitting and causing the submission of claims for home health care services that were not provided to anyone.  As a result of his participation in the scheme and the submission of false and fraudulent claims, Medicare paid Medsel at least $950,000, Hernandez admitted.  

Two of Hernandez’s co-conspirators were charged in separate cases related to Medsel.  Elanier Gonzalez Moncho, 33, of Miami, the nominee owner of Medsel, was sentenced to 18 months in prison for his role in the fraud.  Rafael Arias, 54, of Miami, the owner and operator of numerous Miami-area home health agencies, including Medsel, was sentenced to 240 months in prison for his role in a $66 million conspiracy to defraud the Medicare program. 

The FBI 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.  Trial Attorneys David Snider and Kevin Lowell of the Fraud Section prosecuted the case.

The Criminal Division’s 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.

A Stuart man pleaded guilty today to filing a false tax return with the Internal Revenue Service (IRS), announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida.

Joseph J. Ferry III, 80, pleaded guilty to one count of willfully filing a false corporate income tax return for his company, Ferry Enterprises Inc., for the tax year 2015.

According to court documents, Ferry’s company provided landscaping services under contracts with Martin County and the City of Port Saint Lucie and served residential and commercial customers in the Treasure Coast area.

Ferry filed false tax returns with the IRS, which understated the total income earned by Ferry Enterprises and Ferry himself for tax years 2012 through 2016. Income generated from Ferry Enterprises was deposited into bank accounts held in the name of the company; however, Ferry used funds from the corporate bank accounts to pay his personal expenses, including payments on his personal mortgage and loans, purchases of firearms, home renovations, and jewelry. Ferry also withdrew more than $2.9 million of cash from the business’ bank accounts. As part of his plea, Ferry admitted that he also willfully filed false individual income tax returns for the tax years 2011 through 2016. Ferry admitted that the tax loss for the years 2011 through 2016 was $556,396.

Sentencing is set for July 26. Ferry faces a statutory maximum sentence of three years in prison, and faces a term of supervised release, restitution, and monetary penalties.

Principal Deputy Assistant Attorney General Zuckerman commended Special Agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Allison J. Garnett and Sean Beaty of the Tax Division, who are prosecuting the case. 

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.

Two Miami-Dade County, Florida residents were charged with participating in a scheme to fraudulently obtain Hurricane Harvey disaster-relief funds.   

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

            Fredna Frederic, 27, and Courtney Lillie Gillis, 28, both of Miami-Dade County, have been charged by indictment with one count of conspiracy to commit wire fraud and three counts of wire fraud (Case No. 19-20290-CR-Gayles/Otazo-Reyes).  If convicted Frederic and Gillis face up to 20 years in prison for the offenses, fines and a term of supervised release.   

            According to the indictment, after Hurricane Harvey struck the Houston, Texas area, a humanitarian organization made disaster-relief funds available to residents of the affected area. These funds were dispensed by a number of companies, including a national retailer headquartered in Bentonville, Arkansas.  In order to qualify for these relief funds, an individual had to enter the names, addresses, and dates of birth of individuals who resided in the affected area.  Once this information was verified, the individual would receive a reference code that could be redeemed for a $400 payment at a national retailer. 

            The indictment alleges, that in order to execute the scheme, Frederic and Gillis’s co-conspirators applied for Hurricane Harvey disaster relief funds by falsely and fraudulently using the names, addresses, and dates of birth of individuals who resided in the disaster-relief area to obtain reference codes.   It is alleged that, as part of the scheme, Frederic contacted Gillis, who was an employee of the national retail store where reference codes could be redeemed, and offered Gillis a kickback if she processed the reference codes.  It is further alleged that, on approximately fifteen occasions, Frederic provided those reference codes to Gillis, who then entered these reference codes into the retailer’s computer system and then issued payments of $400 per code to Frederic and her co-conspirators.

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

The National Center for Disaster Fraud (NCDF) is the result of a partnership between the U.S. Department of Justice and various law enforcement and regulatory agencies to form a national coordinating agency within the Criminal Division of the Department of Justice to improve and further the detection, prevention, investigation, and prosecution of fraud related to natural and man-made disasters, and to advocate for the victims of such fraud. Anyone with information about Disaster Fraud is encouraged to call (866) 720-5721.

U.S. Attorney Fajardo Orshan commended the investigative efforts of the USSS in this matter.  This case is being prosecuted by Assistant U.S. Attorney Marty Fulgueira Elfenbein.

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 Miami-Dade County, Florida resident was sentenced yesterday to five years in federal prison for setting fire to a local business.           

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

                Fabiola Pena, 41, of Miami-Dade County, pled guilty on April 22, 2019, to one count of arson of a business, in violation of Title 18, United States Code, Section 844(i) (Case No. 19-20005-CR-SCOLA).  U.S. District Court Judge Robert N. Scola sentenced Pena to a total of 60 months in prison, to be followed by 3 years of supervised release.  A hearing to determine the amount of restitution that Pena will be ordered to pay is scheduled for July 19, 2019 at 10 a.m. 

            According to the court record, including the agreed upon factual proffer, on December 25, 2018, Pena and a locksmith arrived at Hector’s Pizza located in Miami-Dade County, where the locksmith unlocked the door for the defendant.  Pena later went to a nearby gas station, pumped gasoline into a white jug and then returned to the business.  While inside the business, Pena set four fires: one in the rear storage area, one on the west rear wall refrigerator, one on the power cord within the office, and one on the northeast wall refrigerator.  Pena left shortly after she started the fires.  Surveillance video from a nearby business revealed smoke coming out of the front of Hector’s Pizza, after Pena exited the establishment. 

Law enforcement responded, observed smoke from the front of the business, and contacted Miami-Dade Fire Rescue Department.  Fire personnel observed heavy black smoke upon entering the business, as well as heavy smoke extending from the floor to the ceiling at the freezer located on the west wall in the kitchen.  Fire personnel also made a forced entry through the rear door and observed flames in the southwest storage room.

U.S. Attorney Fajardo Orshan commended the investigative efforts of ATF in this matter.  She thanked the Miami-Dade Police Department’s Arson Squad for assisting with the investigation and the Miami-Dade Fire Rescue Department for responding to the scene, extinguishing the fire, and protecting the local community.  This case was prosecuted by Assistant U. S. Attorney Marty Fulgueira Elfenbein.

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.

U.S. District Court Judge Robin L. Rosenberg has ruled that a Florida-based company, RM Broadcasting LLC (RM Broadcasting), was acting as an agent of a foreign principal and must register as such under the Foreign Agents Registration Act of 1938 (FARA).

The Department of Justice contended in a civil counterclaim that RM Broadcasting has been acting as an agent of the the Federal State Unitary Enterprise Rossiya Segodnya International Information Agency (Rossiya Segodnya), a Russian state-owned media enterprise created by Vladimir Putin to advance Russian interests abroad.  The litigation marked the first FARA civil enforcement action since 1991.  Assistant Attorney General for National Security John C. Demers and U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida made the announcement.

“The American people have a right to know if a foreign flag waves behind speech broadcast in the United States,” said Assistant Attorney General Demers.  “Our concern is not the content of the speech but providing transparency about the true identity of the speaker.  This case shows that the Department can and will utilize all of its tools to bring transparency to efforts by foreign entities to influence the American public and our government, and demonstrates our renewed effort to enforce FARA rigorously.”

“While the right to free speech remains paramount to our democracy,” U.S. Attorney Ariana Fajardo Orshan said.  “FARA ensures that the American public is fully cognizant of the true source of the messages broadcast in the United States.  Armed with full information, Americans may properly evaluate the value of the speech they hear.  As such, FARA is a fundamental tool in our continuing efforts to defend our democracy.”

In November 2017, RM Broadcasting and Rossiya Segodnya entered into a services agreement pursuant to which RM Broadcasting would provide for the broadcast of Rossiya Segodnya’s “Sputnik” radio programs on AM radio channel 1390 WZHF in the Washington, D.C. region.  Under this agreement, RM Broadcasting could not alter Rossiya Segodnya’s radio programs in any way.  As the services agreement established Rossiya Segodnya’s direction and control over RM Broadcasting, the FARA Unit of the National Security Division informed RM Broadcasting that it was acting as a publicity agent and an information-service employee of Rossiya Segodnya and was required to register as an agent of a foreign principal.

RM Broadcasting initiated the proceeding in the Southern District of Florida seeking a declaratory judgment that it did not have to register as an agent of a foreign principal.  The Department responded by filing a counterclaim seeking an injunction to require RM Broadcasting to register.  Earlier this week, the court granted the Department’s motion for judgment on the pleadings.  A final judgment directing RM Broadcasting to register under FARA is expected.

This case was handled by Assistant U.S. Attorney Matthew J. Feeley and Trial Attorney Nicholas Hunter of the National Security Division’s Counterintelligence and Export Control Section.

About FARA

The purpose of FARA is to protect the national defense, internal security, and foreign relations of the United States by requiring public disclosure by persons engaging in political activities and other activities for or on behalf of foreign governments, foreign political parties and other foreign principals so that the Government and the people of the United States may be informed of the identity of such persons and may apprise their statements and actions in the light of their associations and activities.

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.

U.S. District Court Judge Robin L. Rosenberg has ruled that a Florida-based company, RM Broadcasting LLC (RM Broadcasting), was acting as an agent of a foreign principal and must register as such under the Foreign Agents Registration Act of 1938 (FARA).

The Department of Justice contended in a civil counterclaim that RM Broadcasting has been acting as an agent of the the Federal State Unitary Enterprise Rossiya Segodnya International Information Agency (Rossiya Segodnya), a Russian state-owned media enterprise created by Vladimir Putin to advance Russian interests abroad.  The litigation marked the first FARA civil enforcement action since 1991.  Assistant Attorney General for National Security John C. Demers and U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida made the announcement.

“The American people have a right to know if a foreign flag waves behind speech broadcast in the United States,” said Assistant Attorney General Demers.  “Our concern is not the content of the speech but providing transparency about the true identity of the speaker.  This case shows that the Department can and will utilize all of its tools to bring transparency to efforts by foreign entities to influence the American public and our government, and demonstrates our renewed effort to enforce FARA rigorously.”

“While the right to free speech remains paramount to our democracy,” U.S. Attorney Ariana Fajardo Orshan said.  “FARA ensures that the American public is fully cognizant of the true source of the messages broadcast in the United States.  Armed with full information, Americans may properly evaluate the value of the speech they hear.  As such, FARA is a fundamental tool in our continuing efforts to defend our democracy.”

In November 2017, RM Broadcasting and Rossiya Segodnya entered into a services agreement pursuant to which RM Broadcasting would provide for the broadcast of Rossiya Segodnya’s “Sputnik” radio programs on AM radio channel 1390 WZHF in the Washington, D.C. region.  Under this agreement, RM Broadcasting could not alter Rossiya Segodnya’s radio programs in any way.  As the services agreement established Rossiya Segodnya’s direction and control over RM Broadcasting, the FARA Unit of the National Security Division informed RM Broadcasting that it was acting as a publicity agent and an information-service employee of Rossiya Segodnya and was required to register as an agent of a foreign principal.

RM Broadcasting initiated the proceeding in the Southern District of Florida seeking a declaratory judgment that it did not have to register as an agent of a foreign principal.  The Department responded by filing a counterclaim seeking an injunction to require RM Broadcasting to register.  Earlier this week, the court granted the Department’s motion for judgment on the pleadings.  A final judgment directing RM Broadcasting to register under FARA is expected.

This case was handled by Assistant U.S. Attorney Matthew J. Feeley and Trial Attorney Nicholas Hunter of the National Security Division’s Counterintelligence and Export Control Section.

About FARA

The purpose of FARA is to protect the national defense, internal security, and foreign relations of the United States by requiring public disclosure by persons engaging in political activities and other activities for or on behalf of foreign governments, foreign political parties and other foreign principals so that the Government and the people of the United States may be informed of the identity of such persons and may apprise their statements and actions in the light of their associations and activities.

Three Palm Beach County residents have been charged with orchestrating a $3.6 million investment fraud scheme. 

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 Ronald L. Rubin, Commissioner, Florida Office of Financial Regulation (OFR), made the announcement.

T. Jonathan Turner, a/k/a “Jon Barri Brothers,” 52, of Wellington, Florida, Norman M. Strell, 73, of Wellington, Florida and Scott P. Strochak, 57, of Boynton Beach, Florida were charged by indictment with conspiracy to commit wire fraud and 15 substantive wire fraud counts (Case No. 19-80073-CR-Rosenberg). Today, Turner was arraigned and Strell had his initial appearance.

According to allegations in the court record, including those contained in the indictment and previously filed criminal complaint, Turner was the Vice Chairman, President and Chief Operations Officer of Castleberry Financial Services Group.   Castleberry falsely promoted itself to investors as “a leading Alternative Investments Manager” with a history of “deploying almost $800 million in capital across the balance sheets of leading local businesses.”  In addition, contrary to its representation that it managed separate funds, Castleberry pooled investor funds in one bank account that was controlled by Turner and co-conspirator Strell.  Turner, Strell and Strochak promoted the sale of Castleberry’s securities through materials and solicitations that falsely represented that the company’s investor proceeds were fully bonded and insured and would be invested in real estate and distressed businesses to generate profits from which investor returns would be paid.  In addition, they lured individuals to invest money in Castleberry’s securities offerings by falsely touting Turner’s prior financial industry experience and educational achievements, while failing to disclose his prior felony convictions for fraud related offenses.  In fact, Castleberry did not make any significant income generating investments.  Instead, Turner and his co-conspirators misused and misappropriated investor funds to pay for their own personal expenses, transfer money into their own bank accounts, accounts of entities they controlled and those of family members.

The court record alleges that as a result of the fraudulent scheme, 15 investor victims lost more than $3.6 million.

The U.S. Securities and Exchange Commission (SEC) filed a parallel civil enforcement action against Turner related to this scheme.

An indictment contains allegations.  Every 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 and OFR in this matter.  She thanked the SEC Miami Regional Office for their assistance.  This case is being prosecuted by Assistant U. S. Attorney Lothrop Morris.

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 former South Florida attorney was sentenced to 28 months in prison in relation to a pump and dump securities fraud scheme involving the shares of Valentine Beauty, Inc. (“VLBI”). 

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.  

Mark E. Fisher, 53, of Boca Raton, Florida, was sentenced today by U.S. District Judge Kathleen M. Williams to 28 months in prison, to be followed by three years of supervised release.  Fisher also was ordered to forfeit $8.4 million.  Previously, Fisher pled guilty to one count of conspiracy to commit securities fraud, in violation of Title 18, United States Code, Section 371 (Case No. 18-CR-20823-KMW).  Co-defendant Joseph F. Capuozzo, 57, of Davie, Florida, also pled guilty to the same offense and was sentenced on April 8, 2019, to 5 years’ probation.

Previously, Eddy Ubaldo Marin, 56, of Ft. Lauderdale, Florida, and Shane R. Spierdowis, 27, formerly of Boca Raton, were charged with securities fraud offenses in connection with the same VLBI scheme.   Marin pled guilty and was sentenced on September 5, 2018, to 210 months in prison by U.S. District Judge Darrin P. Gayles (Case No. 18-CR-20354-DPG).  Spierdowis also pled guilty and was sentenced by U.S. District Judge Ursula Ungaro to 5 years’ probation.  (Case No. 18-CR-20355-UU).   Marin is currently a fugitive.

According to court documents, VLBI was a beauty products supply company with operations in Sunrise, Florida, that marketed its products on television infomercials and elsewhere.  Shares of VLBI stock were publicly traded and quoted over the counter on OTC Link.  In approximately November 2013, Marin and other accomplices arranged to secretly obtain a controlling interest in VLBI stock by issuing shares to certain third parties, including Green Tree Capital, Inc., a company controlled by Marin and Capuozzo, based in Ft. Lauderdale, Florida. 

Fisher, formerly a practicing lawyer licensed to practice in Florida and New York, was a securities lawyer based in Boca Raton who allegedly became involved with the manipulation of VLBI shares at the invitation of Marin.  Fisher allegedly executed various false and fraudulent documents to facilitate the scheme, including certain legal opinion letters that falsely indicated that shares controlled by Marin and other conspirators, were not in fact owned or controlled by “affiliates” of the companies.  Such letters allowed shares of VLBI to be falsely classified as “free trading” and thus sold to the public, when in reality they were restricted.  In March and April, 2014, Marin, Fisher, Capuozzo, Spierdowis, and other conspirators arranged to transfer a substantial number of shares into brokerage accounts in the name of fictitious entities, but in reality controlled by the conspirators.  In addition, according to court documents, Fisher, Capuozzo and other conspirators knew that Marin was a convicted felon and attempted to conceal his role in the scheme by keeping his name off of corporate documents.   To facilitate the concealment of Marin’s role, Capuozzo became the listed owner of an entity that held Marin’s VLBI shares and traded the shares at the direction of Marin.  Capuozzo also served as the nominee Chief Executive Officer of VLBI, while acting at the direction of Marin and the conspirators.

Thereafter, beginning in approximately May 2014 and continuing through in or around September 2014, Marin, Fisher, Capuozzo, Spierdowis, and others arranged for VLBI to issue rosy press releases, while also using internet marketing and penny stock newsletters to tout VLBI stock.  These efforts were intended to artificially increase the trading volume and price of VLBI shares, so that Marin, Fisher, Capuozzo, Spierdowis and their co-conspirators could secretly sell shares at a profit.   During the conspiracy period, the conspirators sold approximately $1 million worth of VLBI shares to the investing public.

In approximately June 2014, Marin began a term of federal imprisonment due to a different federal offense, and was ultimately incarcerated at FCI Miami.  While Marin was at FCI Miami, Fisher, Capuozzo, Spierdowis, and others continued the stock manipulation scheme, while keeping a larger portion of the trading profits for themselves.  The conspirators continued to sell shares of VLBI, while continuing the same pattern of issuing press releases and engaging in coordinated sales of shares, until approximately April 26, 2016, when trading in VLBI shares was suspended by the U.S. Securities and Exchange Commission (SEC). 

Previously, the SEC filed parallel civil enforcement actions against Fisher, Capuozzo, Marin and Spierdowis.

U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI’s Miami Field Office.  She also thanked the SEC’s Miami Regional Office for their assistance.  This case is being prosecuted by Assistant U.S. Attorney Jerrob Duffy, and Assistant U.S. Attorney Alison Lehr is handling asset forfeiture related to the matter.

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, Anthony Salisbury, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s, Homeland Security Investigations (ICE-HSI), Thomas G. Martin, Acting Chief Patrol Agent, U.S. Border Patrol (USBP), Miami Sector, U.S. Customs and Border Protection (CBP), U.S. Coast Guard Sector Miami, and Rick Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO), made the announcement.

Donald Nehemiah Watson, 35, of the Bahamas, was charged by complaint with one count of alien smuggling, in violation of Title 8, United States Code, Section 1324, and failure to heave, in violation of Title 18, United States Code, Section 2237 (Case No. 19-MJ-8188).  If convicted, Watson faces up to 15 years in prison.  Travis Jamaal Moss, 24, of the Bahamas, was charged by complaint with one count of reentry by an illegal alien after deportation, in violation of Title 8, United States Code, Section 1326(a) (Case No. 19-MJ-8189).  If convicted, Moss faces up to 10 years in prison.  The defendants were both arrested and are scheduled for a pre-trial detention hearing on May 14, 2019, in West Palm Beach Federal Court.

According to allegations contained in the court record, on May 6, 2019, officials with U.S. Border Patrol and the Palm Beach County Sheriff’s Office Marine Unit encountered a vessel approximately two nautical miles east of West Palm Beach, Florida.  As the boat approached one mile off shore, it quickly turned around and fled east.  The pursuing law enforcement boat, later joined by the U.S. Coast Guard, attempted to stop the vessel which continued at high speed for more than 10 nautical miles, until it ran out of fuel.  The vessel was captained by Watson and occupied by Moss, an illegal alien who had been previously removed from the United States.

A complaint is merely an accusation and a defendant is presumed innocent unless and until proven guilty in a court of law. 

U.S. Attorney Fajardo Orshan commended the investigation efforts of HSI, USBP, CBP Air and Marine Unit, U.S. Coast Guard Sector Miami, U.S. Coast Guard Station Lake Worth Inlet, and the Palm Beach County Sheriff’s Office.  This case is being prosecuted by Assistant U.S. Attorney Gregory Schiller.

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 Weston resident was sentenced today to federal prison for two bank robberies and an attempted carjacking.

            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, Anthony W. Rosa, Chief, Sunrise Police Department, and Rick Maglione, Chief, Fort Lauderdale Police Department, made the announcement.

            David Brasher, 36, of Weston, Florida, pled guilty on February 22, 2019, to two counts of bank robbery, in violation of Title 18, United States Code, Section 2113(a) and one count of attempted carjacking, in violation of Title 18, United States Code, Section 2119(1).  U.S. District Judge William P. Dimitrouleas sentenced Brasher to a total of 66 months in prison, to be followed by 3 years of supervised release.  Brasher was also ordered to pay a total of $18,826 in restitution.       

According to the court record, including the agreed upon factual proffer, on October 30, 2018, Brasher, robbed a teller at a Wells Fargo Bank in Sunrise, Florida.  Brasher gave the teller a note demanding money and stating he had a bomb.  Brasher raised his shirt and displayed what the teller believed was the handle of a handgun.  Brasher fled the bank with $18,613.

On November 6, 2018, Brasher robbed a teller at a Bank of America in Fort Lauderdale, Florida.  Brasher gave the teller a note demanding money and stating he had a bomb and a gun.  Brasher fled the bank with $2,815.

            On November 6, 2018, about four hours after the Bank of America robbery, Brasher approached a woman and her minor daughter in a parking lot in Fort Lauderdale, Florida.  Brasher raised a beer bottle, demanded the keys to the woman’s car, and said he would kill her if she refused.  The woman yelled for help and her husband, who was a short distance away, ran to her aide, punching Brasher in his head.  Brasher then fled on foot.

U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI, Sunrise Police Department and Fort Lauderdale Police Department in this matter.  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 South Florida patient recruiter was sentenced to 87 months in prison today for her role in a scheme involving approximately $1.6 million in Medicare claims for home health care services that were procured through the payment of kickbacks.

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’s (HHS-OIG) Miami Regional Office made the announcement.

Yamilet Diaz, 50, of Hialeah, Florida, was sentenced by U.S. District Judge James I. Cohn of the Southern District of Florida.  After a four-day trial in February 2019, which Judge Cohn presided over, Diaz was convicted of one count of conspiracy to defraud the United States and to receive health care kickbacks and four counts of receiving health care kickbacks.

According to evidence presented at trial and at sentencing, from approximately February 2012 to August 2013, Diaz received kickbacks in return for referring Medicare beneficiaries to five South Florida home health agencies to serve as patients.  The evidence established that Diaz and her co-conspirators caused Medicare to make over $1.6 million in payments to the home health agencies based upon claims for home health services submitted on behalf of the beneficiaries recruited by Diaz.  The evidence further established that Diaz personally benefited from the fraud and received at least $710,000. 

This case was investigated by the FBI with support from HHS-OIG and 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 Attorneys Patrick Mott, John (Fritz) Scanlon and Timothy Loper of the Fraud Section.  Assistant U.S. Attorney Leslie Wright of the District of Massachusetts, formerly with the Fraud Section, previously worked on the case. 

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.

A resident of Lima, Peru, pleaded guilty today to extortion for operating call centers that threatened Spanish-speaking victims in the United States, the Justice Department and U.S. Postal Inspection Service announced.

Omar Portocarrero Caceres, 39, was extradited from Peru in April and pleaded guilty in the U.S. District Court for the Southern District of Florida. The charges against Portocarrero allege that he owned and operated a call center 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. 

“The Department of Justice is committed to identifying and prosecuting criminals who target and extort consumers in the United States,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “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 the defendants in this case to face justice in our courts.” 

Portocarrero and his co-conspirators in Peru contacted U.S. consumers, many of whom were elderly and vulnerable, using Internet-based telephone calls. Claiming to be attorneys and government representatives, the callers falsely told victims that they had failed to pay for or receive a delivery of products. The callers also 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 monetary payments based on these baseless threats.  

“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 not allow overseas criminal enterprises to illegally enrich themselves by using the U.S. Mail to defraud U.S. consumers,” said U.S. Postal Inspector in Charge Antonio J. Gomez. “With the continued cooperation of law enforcement colleagues in countries like Peru, these criminals will be aggressively pursued and brought to justice.”

Portocarrero is the second defendant to plead guilty in connection with the scheme.  Three of his co-defendants have been detained pending trial before U.S. District Court Judge Roy K. Altman in Fort Lauderdale. Judge Altman has scheduled their trial to begin on June 10, 2019. 

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.

Steven Snipe, 27, of West Palm Beach, Florida, was sentenced yesterday in federal court to 15 years in prison after previously pleading guilty to one count of sex trafficking a minor and one count of producing child pornography, announced Assistant Attorney General Eric Dreiband of the Department of Justice’s Civil Rights Division, U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Special Agent in Charge Anthony Salisbury of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (ICE-HSI) Chief Michael G. Gregory of the Boynton Beach Police Department, and Sheriff Ric Bradshaw of the Palm Beach County Sheriff’s Office.

“Yesterday’s sentencing demonstrates the Department of Justice’s unwavering commitment to combatting the heinous crime of sex trafficking,” said Assistant Attorney General Eric Dreiband. “The defendant’s depraved actions will not be tolerated and the Civil Rights Division’s Human Trafficking Prosecution Unit will continue to fight to eradicate this criminal exploitation.”

 “Those who sexually exploit our youth turn children into victims of deplorable acts,” stated U.S. Attorney Fajardo Orshan. “Our law enforcement partners in the Southern District of Florida and throughout the Department commend the strength of those who have raised their voices against an abuser. We hear your calls for help and will continue to seek justice for all, through the united force of our federal human trafficking prosecutions.”

“While the harm caused to this minor cannot be undone, our HSI special agents hope yesterday’s sentencing is another step in the recovery process for the young victim,” said HSI Miami Special Agent in Charge Anthony Salisbury.

“The Boynton Beach Police Department remains committed to vigorously investigating those who prey on youth in our community,” Chief Gregory of the Boynton Beach Police Department said. “We thank the U.S. Attorney’s Office and the Department of Justice’s Civil Rights Division for partnering with us in our ongoing efforts to fight sex trafficking.”

According to the indictment and facts detailed during Snipe’s plea hearing, between late May 2017 and June 29, 2017, Snipe began a sexual relationship with a 15-year-old girl.  After several days, he provided her with a cell phone and instructed her to create an account on Backpage.com. He showed her how to post advertisements on the website, directed her to claim she was 19, and advertised her to clients. Snipe then caused the victim to engage in commercial sex for his profit at multiple hotels until June 29, 2017, when the victim called 911 to report that she was being forced to prostitute. Officers responded to a hotel and located Snipe and the victim. 

Law enforcement obtained lawful authorization to search the cell phone that Snipe had provided to the victim. The cell phone contained several sexually explicit videos and multiple photographs depicting the victim in various stages of undress and Snipe engaging in sexual intercourse with the victim.   

The Southern District of Florida is one of six Phase I Pilot Anti-Trafficking Coordination Teams (ACTeams) convened through an interagency collaboration of the Departments of Justice, Labor and Homeland Security to develop high-impact federal human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking of adults by force, fraud and coercion.

The prosecution is the result of a joint investigation by ICE-HSI, the Boynton Beach Police Department, the Palm Beach County Sheriff’s Office, the U.S. Attorney’s Office for the Southern District of Florida, and the Civil Rights Division’s Human Trafficking Prosecution Unit.

This case was prosecuted by Assistant U.S. Attorney Gregory Schiller for the Southern District of Florida, Special Litigation Counsel Matthew T. Grady and Trial Attorney Maryam Zhuravitsky of the Human Trafficking Prosecution Unit.

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.

Steven Snipe, 27, of West Palm Beach, Florida, was sentenced yesterday in federal court to 15 years in prison after previously pleading guilty to one count of sex trafficking a minor and one count of producing child pornography, announced Assistant Attorney General Eric Dreiband of the Department of Justice’s Civil Rights Division, U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Special Agent in Charge Anthony Salisbury of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (ICE-HSI) Chief Michael G. Gregory of the Boynton Beach Police Department, and Sheriff Ric Bradshaw of the Palm Beach County Sheriff’s Office.

“Yesterday’s sentencing demonstrates the Department of Justice’s unwavering commitment to combatting the heinous crime of sex trafficking,” said Assistant Attorney General Eric Dreiband. “The defendant’s depraved actions will not be tolerated and the Civil Rights Division’s Human Trafficking Prosecution Unit will continue to fight to eradicate this criminal exploitation.”

“Those who sexually exploit our youth turn children into victims of deplorable acts,” stated U.S. Attorney Fajardo Orshan. “Our law enforcement partners in the Southern District of Florida and throughout the Department commend the strength of those who have raised their voices against an abuser. We hear your calls for help and will continue to seek justice for all, through the united force of our federal human trafficking prosecutions.”

“While the harm caused to this minor cannot be undone, our HSI special agents hope yesterday’s sentencing is another step in the recovery process for the young victim,” said HSI Miami Special Agent in Charge Anthony Salisbury.

“The Boynton Beach Police Department remains committed to vigorously investigating those who prey on youth in our community,” Chief Gregory of the Boynton Beach Police Department said. “We thank the U.S. Attorney’s Office and the Department of Justice’s Civil Rights Division for partnering with us in our ongoing efforts to fight sex trafficking.”

According to the indictment and facts detailed during Snipe’s plea hearing, between late May 2017 and June 29, 2017, Snipe began a sexual relationship with a 15-year-old girl. After several days, he provided her with a cell phone and instructed her to create an account on Backpage.com. He showed her how to post advertisements on the website, directed her to claim she was 19, and advertised her to clients. Snipe then caused the victim to engage in commercial sex for his profit at multiple hotels until June 29, 2017, when the victim called 911 to report that she was being forced to prostitute. Officers responded to a hotel and located Snipe and the victim. 

Law enforcement obtained lawful authorization to search the cell phone that Snipe had provided to the victim. The cell phone contained several sexually explicit videos and multiple photographs depicting the victim in various stages of undress and Snipe engaging in sexual intercourse with the victim.   

The Southern District of Florida is one of six Phase I Pilot Anti-Trafficking Coordination Teams (ACTeams) convened through an interagency collaboration of the Departments of Justice, Labor and Homeland Security to develop high-impact federal human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking of adults by force, fraud and coercion.

The prosecution is the result of a joint investigation by ICE-HSI, the Boynton Beach Police Department, the Palm Beach County Sheriff’s Office, the U.S. Attorney’s Office for the Southern District of Florida, and the Civil Rights Division’s Human Trafficking Prosecution Unit.

This case was prosecuted by Assistant U.S. Attorney Gregory Schiller for the Southern District of Florida, Special Litigation Counsel Matthew T. Grady and Trial Attorney Maryam Zhuravitsky of the Human Trafficking Prosecution Unit.

A Lake Worth tax preparer is charged with fraudulently endorsing a Treasury check and committing tax return fraud.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI) made the announcement.

Paul E. Senat, 38, of West Palm Beach, Florida, has been charged by indictment with one count of fraudulent endorsement of a Treasury check, one count of theft of government money, one count of aggravated identity theft, and twelve counts of aiding and assisting the preparation of false tax returns (Case No. 19-80024-CR-Rosenberg). If convicted, Senat faces up to 10 years in prison for fraudulent endorsement and/or theft of government money, a mandatory consecutive 2 year prison term for aggravated identity theft, and up to 3 years in prison for preparing false tax returns. He also faces fines and a term of supervisory release. Senat is scheduled to be arraigned on May 6, 2019.

According to the indictment and allegations made in court, Senat owns and operates American Justice, a tax preparation storefront in Lake Worth, Florida. He opened the business in December 2010.  Senat personally prepares and/or oversees all filing of all returns from his business storefront. Returns filed by Senat routinely claim business losses and other credits, including an education credit, that did not truly exist. This increases the amount of the tax refund paid by the IRS.

It is alleged that Senat not only charges an upfront preparer fee from the client, but he also allegedly takes approximately $1,000 from each refund as an additional fee before issuing the funds to the taxpayer.

It is further alleged that Senat has had two Electronic Filer Identification Numbers (EFINs) suspended by the IRS. These allow a person to electronically file tax returns on behalf of other taxpayers. After these were suspended, Senat allegedly began using nominees to obtain EFINs to continue his perpetration of the tax scheme.

The estimated total loss attributable to Senat’s tax preparer fraud scheme is $11,719,087.

A stolen U.S. Treasury check was allegedly deposited into a Chase bank account for which Senat was the sole signatory.

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

U.S. Attorney Fajardo Orshan commended the investigative efforts of IRS-CI in this matter.  This case is being prosecuted by Assistant U. S. Attorney Alexandra Chase.

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.

WASHINGTON – An owner of a Florida medical clinic was sentenced to serve 91 months in prison today for her role in a $2.5 million health care 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, Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office and Special Agent in Charge Brian Swain of the U.S. Secret Service’s (USSS) Miami Field Office made the announcement.

Juliette Anais Tamayo, 54, the owner of Miami-based clinic Sunshine Medical Care Group Inc. (Sunshine), was sentenced by U.S. District Judge Cecilia Altonaga of the Southern District of Florida. Judge Altonaga also ordered Tamayo to pay $2.5 million in restitution.  Tamayo pleaded guilty in February 2019 to one count of conspiracy to commit health care fraud and wire fraud.  Also, Tamayo previously pleaded guilty to conspiracy to pay and receive kickbacks and to defraud the United States.

Tamayo was charged in a December 2018 superseding indictment with charges stemming from her involvement in a Part A home health care and Part B medical services fraud scheme in which she sold medically unnecessary home health care prescriptions to home health agency owners who in turn billed Medicare. According to her admissions made as part of her separate pleas to the health care fraud and kickback conspiracies, Tamayo solicited and accepted kickbacks from patient recruiters and from the owners of several Miami-area home health agencies in exchange for providing prescriptions for home health services to patients at Sunshine.  The prescriptions, in turn, were used by the home health agencies to bill Medicare for home health services purportedly provided to Medicare beneficiaries.  Tamayo paid a portion of the kickbacks she received from the home health agencies to physicians who worked at Sunshine to induce them to write the fraudulent prescriptions.  In addition, Sunshine billed Medicare directly for medical services purportedly provided at the clinic that were not necessary and/or were not provided.

The case was investigated by the FBI, HHS-OIG, and USSS. Trial Attorneys Adam G. Yoffie, Gary A. Winters and Sara Clingan of the Criminal Division’s Fraud Section prosecuted the case.  Assistant U.S. Attorney Nalina Sombuntham of the Southern District of Florida handled the asset forfeiture proceedings.

The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. 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.

A Lake Worth resident was sentenced to life in prison today, after having been convicted at trial of sex trafficking and obstruction of a sex trafficking investigation.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, David Aronberg, State Attorney for Palm Beach County, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation, (FBI), Miami Field Office and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO) made the announcement.

Alston Orlando Leroy Williams, 42, of Lake Worth, Florida, was sentenced by U.S. District Judge Robin L. Rosenberg to five life sentences and an additional 20 years in prison, to be followed by a lifetime of supervised release (Case No. 18-CR-80053).  In December of 2018, Williams was convicted by a federal trial jury of two counts of sex trafficking of a minor in violation of Title 18, United States Code, Sections 1591(a)(1) and (b)(2), three counts of sex trafficking by force, fraud or coercion in violation of Title 18, United States Code, Sections 1591(a)(1) and (b)(1), and one count of obstructing a human trafficking investigation, in violation of Title 18, United States Code, Section 1591(d).

According to evidence and testimony presented at trial, from 2008 through 2017, Williams trafficked multiple women, including two juveniles, for commercial sex throughout Florida.  Williams had the women live at his homes and travel to hotels and other locations to meet adult men and engage in sexual acts for money.  Williams used force, violence and coercion to traffic the women and kept all of the money earned by the victims.  He was arrested on November 29, 2017 on related state charges, before being charged and convicted federally.

U.S. Attorney Fajardo Orshan commended the investigation efforts of the FBI, PBSO, and the Palm Beach County Human Trafficking Task Force in this matter.  Mrs. Fajardo Orshan thanked Palm Beach County State Attorney Dave Aronberg for the 15th Judicial Circuit and his staff for their assistance with this investigation.  This case was prosecuted by Assistant U.S. Attorney Gregory Schiller and Special Assistant U.S. Attorney Justin Hoover.

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.

Jose Antonio Morales, 33, of Fort Pierce, was sentenced by U.S. District Judge Robin L. Rosenberg to a total of 84 months in prison today, after having been convicted at trial of being a felon unlawfully in possession of a firearm and possessing marijuana with the intent to distribute the controlled substance  (Case No. 18-Cr-14056).   

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office and Ken J. Mascara, Sheriff, St. Lucie County Sheriff’s Office, made the announcement.

According to the court record, including evidence introduced during the trial in West Palm Beach, in June 2018, law enforcement seized two pounds of high-grade marijuana and a loaded firearm from a safe in Morales’ bedroom while executing a search warrant at his residence in Fort Pierce.  When the search warrant was executed, Morales’ residence was occupied by five children.  A toddler was sleeping within a few feet of the safe where the loaded firearm and two pounds of marijuana were discovered.    

Morales is a convicted felon and was prohibited, by law, to possess a firearm and/or ammunition.

U.S. Attorney Fajardo Orshan commended the investigative efforts of the ATF and St. Lucie County Sheriff’s Office in this matter.  The case was prosecuted by Assistant U.S. Attorneys Michael D. Porter and Marton Gyires.

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 South Florida doctor residing in Hobe Sound, Florida, was sentenced to 51 months in prison yesterday for tax evasion, wire fraud, and Social Security disability fraud, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida.

According to court documents and information provided to the court, Arthur John Kranz was a doctor specializing in psychiatry. Beginning in 2002, Kranz made a claim on his private disability policy that he was unable to work, and began receiving disability payments from his insurance company. In December 2003, Kranz submitted an application to the Social Security Administration (SSA) for disability benefits The SSA approved his application. Kranz then began receiving SSA disability payments, in addition to the private disability insurance payments. Because of the disability payments, Kranz was required to notify his insurance company and the SSA if he returned to work.

From January 2006 to March 2013, Kranz worked as a psychiatrist at a hospital in Pennsylvania and earned over $1.6 million in income. Kranz did not report his employment to either the SSA or his insurance company. Rather, in order to continue collecting disability benefits, Kranz took steps to conceal his income from the insurance company, the SSA, and the Internal Revenue Service (IRS). He directed that his income be paid to nominee individuals and sham corporations he had created to receive his payments. Kranz also filed false personal tax returns that did not report the income from his work as a psychiatrist, and provided .  

fraudulent documentation to his insurance company that falsely stated that he was not working. 

In addition to the term of imprisonment imposed, Kranz was order to serve three years of supervised release and pay restitution of $1,013,284.

Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS-Criminal Investigation and the SSA Office of Inspector General, who conducted the investigation, and Assistant Chief Charles M. Edgar, Jr. and Trial Attorneys Michael C. Boteler and Terri-Lei O’Malley of the Tax Division, who prosecuted the case with assistance from the U.S. Attorney’s Office for the Southern District of Florida.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.

An owner of a Florida medical clinic was sentenced to serve 91 months in prison today for her role in a $2.5 million health care 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, Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office and Special Agent in Charge Brian Swain of the U.S. Secret Service’s (USSS) Miami Field Office made the announcement.

Juliette Anais Tamayo, 54, the owner of Miami-based clinic Sunshine Medical Care Group Inc. (Sunshine), was sentenced by U.S. District Judge Cecilia Altonaga of the Southern District of Florida.  Judge Altonaga also ordered Tamayo to pay $2.5 million in restitution.  Tamayo pleaded guilty in February 2019 to one count of conspiracy to commit health care fraud and wire fraud.  Also, Tamayo previously pleaded guilty to conspiracy to pay and receive kickbacks and to defraud the United States.

Tamayo was charged in a December 2018 superseding indictment with charges stemming from her involvement in a Part A home health care and Part B medical services fraud scheme in which she sold medically unnecessary home health care prescriptions to home health agency owners who in turn billed Medicare.  According to her admissions made as part of her separate pleas to the health care fraud and kickback conspiracies, Tamayo solicited and accepted kickbacks from patient recruiters and from the owners of several Miami-area home health agencies in exchange for providing prescriptions for home health services to patients at Sunshine.  The prescriptions, in turn, were used by the home health agencies to bill Medicare for home health services purportedly provided to Medicare beneficiaries.  Tamayo paid a portion of the kickbacks she received from the home health agencies to physicians who worked at Sunshine to induce them to write the fraudulent prescriptions.  In addition, Sunshine billed Medicare directly for medical services purportedly provided at the clinic that were not necessary and/or were not provided.

The case was investigated by the FBI, HHS-OIG, and USSS.  Trial Attorneys Adam G. Yoffie, Gary A. Winters and Sara Clingan of the Criminal Division’s Fraud Section prosecuted the case.  Assistant U.S. Attorney Nalina Sombuntham of the Southern District of Florida handled the asset forfeiture proceedings.  

The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.  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.

A North Lauderdale resident was sentenced today to more than six years in prison for being a felon in possession of a firearm and possession of cocaine.

            Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge, United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office and Gregory Tony, Sheriff, Broward County Sheriff’s Office (BSO), made the announcement.

            Christopher Sergo Denis, 28, of North Lauderdale, was sentenced by U.S. District Judge James I. Cohn to 77 months in prison, to be followed by 3 years of supervised release for being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2) and a concurrent term of 12 months in prison, to be followed by 1 year of supervised release for possession of cocaine, in violation of Title 21, United States Code, Section 844 (Case No. 18-CR-60296).

            According to the court record, including the agreed upon factual proffer, on September 15, 2018, Denis posted a video recording that he labeled “Wild Wild West” on Facebook as he was firing three firearms at a local gun range.  A BSO detective discovered the Facebook posting and brought it to the attention of ATF.  An ATF Special Agent viewed the Facebook posting, went to the gun range, and recovered evidence documenting Denis’s presence at the gun range as well as a video recording made by the gun range of Denis firing the firearms.

            On October 18, 2018, an ATF Special Agent and BSO detectives arrested Denis outside a courtroom in the Broward County Courthouse in Fort Lauderdale when he arrived to attend a hearing in a pending state criminal case.  In his pocket, Denis had a small container in which there were fourteen plastic zip-lock bags, each containing a small quantity of cocaine.

              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 ATF and BSO in this matter.  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 Miami man was sentenced to six and one-half years in prison for maintaining two separate storage units that contained over 5,000 images of child pornography.

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. 

Adolfo Zayas-Bazan Albaisa, 56, was sentenced on April 29, 2019, by U.S. District Judge Federico A. Moreno to serve 78 months in prison.  Judge Moreno also ordered Albaisa to serve 20 years of supervised release following his prison sentence.  Albaisa pled guilty in February 2019 to one count of possession of child pornography.

According to admissions made in connection with his plea and evidence presented at the sentencing hearing, Albaisa had earned a Master’s Degree in Architecture from Harvard University and taught as an adjunct professor at the University of Miami (1994-2002) and Florida International University (2000-2002).  From 2007 to 2016, Albaisa maintained control of two separate storage units, one located in Miami and the other in Doral.  Albaisa stopped making payments on each storage unit and pursuant to company policy, the storage units were auctioned off to the highest bidder in 2013 and 2016, respectively.  In each instance, the auction winner reviewed the unit’s items and discovered pictures of underage boys engaged in sexual activity.  The FBI submitted the evidence for fingerprint examination and Albaisa’s fingerprints were positively identified on two images of child pornography.  Albaisa also stored additional items in the storage units, such as boy scout paraphernalia, children’s clothing, and photographs of teenagers taken at swimming meets and wrestling matches.  He also kept personal items in the storage units, such as architectural drawings and magazines, his library card to the University of Miami library, family photographs, his resume, and various articles of mail addressed to his home.  In total, Albaisa collected and stored over 5,000 images of child pornography between the two units that he paid for and controlled. 

U.S. Attorney Fajardo Orshan commended the investigatory efforts of the FBI and FBI Miami Child Exploitation Task Force in this matter.  She thanked the Doral Police Department and the City of Miami Police Department for their assistance.  This case was 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 on http://pacer.flsd.uscourts.gov.

Alfredo Veloso, 43, of Miami, today admitted to opening bank accounts, and to  recruiting others to open bank accounts, as a conduit for stolen funds in connection with a wide-ranging international money laundering operation for business email compromise and other cyber-schemes.  Veloso also admitted to selling reptiles without a license, in violation of the Lacey Act.

Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, and David Pharo, Resident Agent in Charge, U.S. Fish & Wildlife Service (FWS), Office of Law Enforcement, Southeast, Florida, made the announcement.

Veloso pled guilty before U.S. District Judge Kathleen M. Williams to one charge of conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h), and four counts of violating the Lacey Act, that is, knowingly engaging in conduct that involved the sale and purchase of, and intent to sell and purchase, wildlife, that is, reptiles, with a market value in excess of $350.00, knowing that said wildlife was taken, possessed, transported, and sold in violation of and in a manner unlawful under the laws and regulations of the State of Florida, specifically, Florida Statute 379.3761, all in violation of Title 16, United States Code, Sections 3372(a)(2)(A) and 3373(d)(1)(B).

According to court documents and statements, from April 2017 to December 2018, Veloso, together with co-conspirators Roda Taher a/k/a “Rezi,” Karina Rosado, and Alvaro Lugo, and others participated in a scheme to help steal more than $1.5 million dollars from individual and corporate victims, which proceeds were later laundered. The scheme involved recruiting “money mules,” including Veloso, who allowed their respective names and personal identifying information to be used by co-conspirators to incorporate a sham business through the Florida Department of State, Division of Corporations, under such mule’s name.  As part of the scheme, a mule would then open bank accounts at multiple banks in the name of his or her shell company.  Several mules, including Veloso, later recruited and managed new money mules.  To date, more than 200 money mules and money mule recruiters have been identified as part of this international money laundering network.

As stated in court records, a related cyberattack aspect of the scheme involved the creation, by co-conspirators, of email addresses that mimicked, but differed slightly from, legitimate email addresses of supervisory employees at various companies. The conspirators used these deceptive email addresses to send emails that appeared to be requests for payment of legitimate invoices or debts owed by the victims. The victims were deceived into transferring funds by wire into the bank accounts opened by the money mules and controlled by Veloso and the co-conspirators.  After the victims complied with the fraudulent wiring instructions, Veloso, Rosado, and Lugo, under the direction of other conspirators, quickly debited thousands of dollars from the accounts through in-person withdrawals, ATM withdrawals, and debit card purchases. The co-conspirators also transferred funds to foreign bank accounts that co-conspirators controlled.

Veloso, Rosado, Lugo, and other co-conspirators kept a fraction of the proceeds as payment.  For example, over a two-day period in April 2017, Veloso’s shell company, Veloso Bulk Trade, received incoming wires totaling more than $1,000,000 from four victims, which included two corporations, a law firm, and an individual.  Of these funds, Veloso withdrew or spent approximately $26,686. 

Veloso admitted that he recruited more than eight individuals to participate as mules in the money laundering scheme, many of whom were women he met through his kink pornography/adult film business. Veloso and his mules laundered between $1.5 to $3.5 million dollars.

Additionally, Veloso used his reptile business, known as Tri Reptiles and Xtreme Reptiles, to knowingly sell and ship wildlife in interstate commerce in 2018.  His yearly reptile sales volume was at least approximately $150,000.  Veloso acted as a reptile wholesaler, reselling hundreds of reptiles without obtaining the required Florida license.

At sentencing, on the money laundering count, Veloso faces up to 20 years imprisonment and a fine of $250,000, or twice the gross pecuniary gain/loss.  Veloso faces up to five years imprisonment, and a fine of $20,000, or twice the gross gain, on each count of the Lacey Act violation. Sentencing is scheduled before Judge Williams on July 8, 2019, at 3:00 p.m.

Lugo pled guilty to one count of conspiracy to commit money laundering on November 19, 2018, and on April 8, 2019, Judge Williams sentenced Lugo to 34 months in prison. Rosado is a fugitive and remains at large. 

U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI, USSS, and FWS in this matter.  This case is being prosecuted by Assistant U.S. Attorney Lisa H. Miller.

In related cases in this District, more than thirty members of the money laundering network have been prosecuted and convicted.  See United States v. Roda Taher, et al., 17-cr-60223-UU; United States v. Luis Pujols, et al., 17-cr-20702-JEM; United States v. Cynthia Rodriguez, et al., 17-cr-20748-JEM; United States v. Eliot Pereira, et al., 18-cr-20170-MGC; and United States v. Gustavo Gomez, et al., 18-CR-20415-UU.  Assistant U.S. Attorneys Jared M. Strauss, Dwayne E. Williams, and Lisa H. Miller prosecuted those cases.

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

A former resident of Fort Lauderdale, Florida was sentenced to over twelve years in prison and ordered to pay over $7 million in restitution for orchestrating an international property fraud scheme.

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

Dale Scott Wood, 46, formerly of Fort Lauderdale, Florida, pled guilty to a single count information that charged him with conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, on July 25, 2018 (Case No. 18-CR-60202)  U.S. District Judge William P. Dimitrouleas sentenced Wood to 151 months in prison, to be followed by 3 years of supervised release.  Wood was also ordered to pay $7,130,410 in restitution.                                                        

According to court documents, investors in Germany formed a limited partnership to invest in the United States real estate mortgage market.  The partnership made mortgage loans secured by commercial properties throughout the United States.  After the United States real estate market crash beginning in 2007, the partnership had to foreclose on many of the mortgages it owned domestically.  The partnership needed someone to oversee the foreclosure process and manage, maintain, and market the properties when the partnership acquired title.  The partnership retained Wood for that purpose.  From November 2009 to November 2013, Wood retained Theodore Gunter Gies, a bookkeeper, to assist him.  Wood and Gies, without disclosure to or authorization from the partnership, sold the properties to third parties.  Wood and Gies then submitted, via international e-mail, false financial and status reports indicating that the properties were still held by the partnership.  The loss to the partnership by the actions of Wood and Gies was $7,130,410. 

Gies previously pled guilty for his role in the conspiracy and was sentenced to 51 months in prison. 

            U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI in this matter.  The case was prosecuted by Assistant U.S. Attorneys Thomas P. Lanigan and Karen Olivia-Marie Stewart.

            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 Kentucky man who is alleged to have robbed banks throughout the United States was indicted for robbing a Capital Bank branch located in Aventura, Florida.  He remains in custody. 

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.

Jason Lee Robinson, 40, of Pikeville, Kentucky, was charged with one count of bank robbery, in violation of Title 18, United States Code, 2113(a).  Robinson was previously charged by criminal complaint (Case No. 19-mj-2082).   Robinson is currently being detained in South Florida.  If convicted of the single count of bank robbery, Robinson faces a maximum statutory sentence of 20 years in prison.

According to court records and allegations, Robinson robbed seven banks in states around the country.  On December 28, 2018, Robinson robbed a Capital Bank in Aventura, Florida of approximately $1,900.  On January 2, 2019, he robbed a SunTrust Bank in Asheville, North Carolina. On January 4, 2019, he robbed a Mountain Commerce Bank in Johnson City, Tennessee.  On January 8, 2019, he robbed a U.S. Bank in Mount Juliet, Tennessee.  On January 10, 2019, he robbed a Trustmark Bank in Prattville, Alabama.  On January 14, 2019, he robbed a Fifth Third Bank in Mount Vernon, Illinois.  On January 17, 2019, he robbed a Wells Fargo Bank in Price Branch, Utah. 

Each bank deposit was insured by the Federal Deposit Insurance Corporation. 

U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI in this matter.  Mrs. Fajardo Orshan thanked the FBI’s Field Offices in Charlotte, North Carolina, Knoxville, Tennessee, Memphis, Tennessee, Mobile, Alabama, Springfield, Illinois, Salt Lake City, Utah, Price Branch, Utah, Denver, Colorado, and Louisville, Kentucky, for their assistance.  This case is being prosecuted by Assistant U.S. Attorney Lisa H. Miller.

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

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

A Jupiter resident was sentenced to twenty years in prison for a string of bank robberies in Palm Beach and Martin Counties in 2017 and 2018.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Bruce H. Colton, State Attorney for Indian River, Martin, Okeechobee, and Saint Lucie Counties, Dave Aronberg, State Attorney for Palm Beach County, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, William D. Snyder, Sheriff, Martin County Sheriff’s Office, Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office and Daniel J. Kerr, Chief, Jupiter Police Department, made the announcement.

Ronnie Montsdeoca, 59, of Jupiter, Florida, previously pled guilty to a superseding indictment which charged three counts of bank robbery and one count of attempted bank robbery (Case No. 18-Cr-80194).  U.S. District Judge Donald M. Middlebrooks sentenced Montsdeoca to a total of 240 months in prison, to be followed by 3 years of supervised release.  He also ordered the defendant to pay more than $37,000 in restitution.

According to the court record, including the indictment and the defendant’s admissions at the time of the plea, Montsdeoca robbed a TD Bank in Jupiter Florida on April 21, 2017, a Wells Fargo Bank in West Palm Beach, Florida on August 27, 2018, and another TD Bank in Stuart, Florida, on September 10, 2018.  Montsdeoca also attempted to rob a Bank United in Hobe Sound, Florida, shortly before the TD Bank robbery on September 10, 2018. 

The defendant took, by means of intimidation during the course of the bank robberies, in excess of $37,000 from the institutions whose deposits were insured by the Federal Deposit Insurance Corporation.

U.S. Attorney Fajardo Orshan commended the investigative efforts of FBI, Martin County Sheriff’s Office, Palm Beach County Sheriff’s Office and Jupiter Police Department in this matter. She thanked the State Attorney’s Office for Saint Lucie County and State Attorney’s Office for Palm Beach County for their assistance.  The case was prosecuted by Assistant U.S. Attorney Adam McMichael and Special Assistant U.S. Attorney Christopher Hudock.  

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.

John H. Durham, United States Attorney for the District of Connecticut, Brian C. Turner, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service – Criminal Investigation in New England, announced that ROBERT V. MATTHEWS, 61, of Palm Beach Florida, pleaded guilty today in Bridgeport federal court to conspiracy, money laundering and tax evasion offenses related to multiple schemes to defraud foreign investors and financial institutions.  In addition, Matthews’ wife, MARIA MATTHEWS, 52, pleaded guilty today in Bridgeport to tax evasion.

According to court documents and statements made in court, Robert Matthews was a real estate developer in charge of The Palm House Hotel (“PHH”), a property that he sought to develop in Palm Beach.  Robert and Maria Matthews maintained residences in both Florida and Connecticut.

The EB-5 visa program is a federal program by which foreign nationals and their families are eligible to apply for lawful permanent resident status (commonly known as a “green card”) if they meet certain requirements by investing in a development project in the U.S.  Various entities in the U.S. act as intermediaries between potential foreign investors and investment projects.  One such entity, South Atlantic Regional Center, LLC (“SARC”) in Palm Beach, Florida, advertised EB-5 projects to foreign investors, collected funds from foreign investors that were earmarked for certain development projects, and made the funding available to the respective development project.

The PHH was a development project advertised by SARC to EB-5 investors between approximately 2012 and 2014.  Robert Matthews purchased the PHH property in August 2006, and then lost the property in foreclosure in 2009.  In August 2013, Robert Matthews reacquired control of the property through an entity called Palm House, LLC.  However, Robert Matthews’ brother, Gerry Matthews, was listed in incorporation documents as owning 99 percent of Palm House, LLC, and another individual, who had secured additional financing for Robert Matthews, was listed as owning the remaining 1 percent.

In pleading guilty, Matthews admitted that he and others defrauded EB-5 investors by representing that funds from EB-5 investors would be used to develop the PHH; that certain well-known individuals would be on the PHH advisory board and certain well-known entertainers, businesspeople and politicians “will be a part of the club”; and that Gerry Matthews was a member of the Palm House, LLC management team and was the 99 percent owner of the project.  EB-5 investors invested in the PHH project by providing money to bank accounts controlled by SARC.  SARC, in turn, provided EB-5 money earmarked for PHH use into accounts controlled by Robert Matthews and his associates.

While Gerry Matthews was the nominal 99 percent owner of Palm House, LLC, Robert Matthews controlled the company.  Robert Matthews and other used EB-5 funding for purposes not related to the PHH project, including for Robert and Maria Matthews’ personal gain.  In addition, there was no evidence any of the proffered well-known individuals would be on the PHH advisory board or would be members of the club.

As part of this scheme, Robert Matthews and others moved investor funds through various bank accounts located in Connecticut and Florida.  The funds were used to pay Robert and Maria Matthews’ credit card debts, and to purchase two properties located in Washington Depot, Connecticut.  One of the Washington Depot properties was a property that Robert Matthews had previously lost in foreclosure.  Robert Matthews, Nicholas Laudano and others conspired to purchase the property out of foreclosure by concealing both the relationship between the co-conspirators, and the source of the funds used to purchase the property.

Laudano is a construction contractor who continuously worked on the development of the PHH project between approximately 2006 and 2016.  He also has operated several restaurants in Florida and Connecticut.

Since approximately 2008, Robert and Maria Matthews willfully attempted to evade paying federal income tax they owed for the 2005 and 2007 calendar years in multiple ways, including by using limited liability companies, a company bank account, and their attorney’s trust account to pay for personal expenses.  For example, in approximately November 2014, Robert Matthews caused Maria Matthews to execute documents to obtain a loan from an individual with the initials K.M.  The loan was secured by one of their Washington Depot properties, which, at the time, was in the name of a shell company.  The proceeds of this loan were eventually disbursed into an account controlled by the Robert and Maria Matthews in the name of Mirabia LLC.  Robert and Maria Matthews subsequently used the loan proceeds for personal expenses without paying any of their outstanding tax liability.

The investigation also revealed that, between approximately 2007 and 2009, Robert Matthews conspired with others in a scheme to defraud T.D. Banknorth, N.A. (now TD Bank, N.A.), out of the proceeds of a construction loan by making material misrepresentations to the bank in connection with the development of the Point Breeze Hotel in Nantucket, Massachusetts.  In addition, in June 2010, Robert Matthews conspired with others in a scheme to defraud TD Bank out of its ability to foreclose on another parcel of property in Nantucket owned by Matthews.

Finally, in pleading guilty, Robert Matthews admitted that, between approximately December 2010 and January 2013, he conspired with others to defraud JP Morgan Chase Bank N.A. by misappropriating insurance proceeds earmarked for repair of one of his Washington Depot properties.

Robert Matthews pleaded guilty to one count of conspiracy to commit bank fraud and wire fraud, an offense that carries a maximum term of imprisonment of 30 years; one count of illegal monetary transactions, an offense that carries a maximum term of imprisonment of 10 years, and one count of tax evasion, an offense that carries a maximum term of imprisonment of five years.

Maria Matthews, who is also known as “Mia Matthews,” pleaded guilty to one count of tax evasion.

Robert and Maria Matthews are released on bonds pending sentencing.  Sentencing dates are not scheduled.

On March 7, 2018, Gerry Matthews, of Middlebury, Connecticut, pleaded guilty to one count of conspiracy to commit wire fraud.  On March 12, 2018, Laudano, of Boynton Beach, Florida, pleaded guilty to one count of conspiracy to commit bank fraud and one count of illegal monetary transactions.  They await sentencing.

This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division.  The case is being prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr. and David E. Novick.

A Delray Beach resident was sentenced today to a total of nine years in prison for being a felon in possession of 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, Gadyaces S. Serralta, U.S. Marshal, Southern District of Florida, and Gregory Tony, Sheriff, Broward County Sheriff’s Office (BSO), made the announcement.

Pender Senatus, 38, of Delray Beach, was convicted by a trial jury on January 25, 2019, of being a felon in possession of ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2) (Case No. 18-80029-Cr-Marra).  The trial jury acquitted Senatus of assaulting three federal officers with a firearm, in violation of Title 18, United States Code, Section 111(a)(1) and (b), and using, carrying and brandishing a firearm during and in relation to the assaults, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i) and (ii).  Senatus was sentenced today by U.S. District Judge Kenneth A. Marra to 108 months in prison, to be followed by 3 years of supervised release for being a felon in possession of ammunition.

According to the court record, including facts contained in the indictment, filings in the case, and evidence presented at trial, on July 25, 2017, Senatus was arrested outside his Delray Beach residence on an arrest warrant for second degree murder in a Broward County case.  The arrest was made by BSO detectives assigned to the SWAT/Fugitive Unit, each of whom had been sworn in as a Special Deputy U.S. Marshal, and was working as a Task Force Officer with the Florida/Caribbean Regional Fugitive Task Force of the U.S. Marshals Service.  When advised he was under arrest and ordered to get on the ground, Senatus said, “Hell no,” and fled toward the front door of his residence.  The detectives tackled Senatus, who then pulled out a loaded handgun from a holster inside his waistband.  The handgun fell from his hand as Senatus was wrestled to the ground.     

Senatus could not be charged with the federal offense of being a felon in possession of a firearm because the handgun had been manufactured in Florida and had not traveled in interstate or foreign commerce.  The ammunition inside the handgun, however, had been manufactured outside the state of Florida, so Senatus was charged with being a felon in possession of ammunition.          

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 ATF, U.S. Marshals Service, and BSO in this matter.  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.

MIAMI – With robust public participation over the course of 16 prior events, the National Prescription Drug Take Back Day Initiative continues to remove ever-higher amounts of opioids and other medicines from the nation’s homes where they are vulnerable to misuse, theft, or abuse by family members and visitors; including children and teens.  In continuation of this effort DEA, along with their national, tribal, and community partners will hold the 17th National Prescription Drug Take Back Day across the country on Saturday, April 27th.  The drug take back service is free and anonymous for the public.

Now in its ninth year, DEA has collected nearly 11 million pounds (more than 5,400 tons) of expired, unused, and unwanted prescription medications through its Take Back Day events.  This weekend, approximately 6,000 collection sites manned by nearly 5,000 law enforcement partner agencies will be open from 10 a.m. to 2 p.m. local time.  The public can find a nearby collection site at www.DEATakeBack.com or by calling 800-882-9539. (DEA cannot accept liquids, needles, or sharp material.)

"Addiction causes a tremendous amount of pain and suffering, not just for those addicted to drugs but also for their family members and friends," said Acting Administrator Uttam Dhillon.  "Helping people keep their loved ones safe by disposing of unwanted, unused, and expired prescription medications is just one of many ways that DEA is working to break the cycle of addiction and overdose deaths plaguing this country."

“Keeping our homes free of harmful prescription medication, when no longer needed, is a way of keeping everyone safe.” said Adolphus P. Wright, Special Agent in Charge of the DEA Miami Field Division.  “We strongly encourage the public to do your part by discarding your expired, unused, and unwanted medications at any of the 200+ sites throughout Florida.” 

Rates of prescription drug abuse in the United States continue to be alarmingly high, as are the number of accidental poisonings and overdoses due to these medicines.  The majority of prescription drug abusers have often reported receiving their drugs from friends, family, and the home medicine cabinet.  Take Back Day serves as a unique opportunity for Americans to secure their medicine cabinets from theft and abuse.

National Prescription Drug Take Back Day has received enthusiastic public support since its inception in 2010.  Last October, the public surrendered 457 tons (914,236 pounds) of prescription drugs at more than 5,800 sites operated by the DEA, and nearly 4,800 sites manned by local and tribal partners.

Yesterday, a doctor who previously worked in Stuart, Florida, was sentenced to prison after having been convicted by a federal jury of committing repeated acts of health care fraud.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General (HHS-OIG), Miami Regional Office, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Ashley B. Moody, Florida Attorney General, made the announcement.

Sheetal Kanar Kumar, M.D., 48, formerly of Stuart, Florida, was found guilty by a trial jury, on February 15, 2019, of committing twenty-three counts of health care fraud (Case No. 18-14063-CR-Marra).  U.S. District Judge Kenneth A. Marra, sitting in Fort Pierce, Florida, sentenced Dr. Kumar to a total of 24 months in prison, to be followed by 2 years of supervised release. 

 “No one has a license to defraud our health care system,” stated U.S. Attorney Fajardo Orshan.  “Those individuals, like Dr. Kumar, who cast aside their professional responsibilities to pad their personal pockets with fraudulently obtained tax dollars will face serious consequences.  We encourage the public to report suspected health care fraud to law enforcement.  We must protect our vital healthcare programs from abuse.”

“Vulnerable patients sought out Dr. Kumar for critical medical treatment.  Instead she was exploiting these individuals for personal gain,” said Shimon R. Richmond, Special Agent in Charge HHS-OIG.  “We will continue to protect patients and federal healthcare programs by investigating individuals who seek to enrich themselves at the expense of beneficiaries and taxpayers.”

"The FBI and our partners devote vast resources to investigate, catch and prosecute those committing health care fraud," said Justin E. Fleck, Assistant Special Agent in Charge, FBI Miami.  "To those fraudsters still bilking the system to line their pockets with illicit cash, know that we are committed to rooting out this kind of fraud and reclaiming money that was dishonestly obtained."

Attorney General Ashley Moody said, “Make no mistake, health care fraud is a serious crime that steals tax dollars and increases insurance rates. The Florida Attorney General’s Office will continue to work with our federal partners to protect Florida’s health care market and arrest, prosecute and convict anyone trying to defraud Medicaid and Medicare.”  

According to the court record, including evidence introduced at trial, Dr. Sheetal Kumar owned and operated the medical practice Advanced Healthcare for Women in Stuart, Florida.  Dr. Kumar was an obstetrician and gynecologist who treated incontinence.  From at least as early as January 2014, until July 2017, Dr. Kumar submitted or caused the fraudulent submissions of claims to Medicare, Medicaid and private insurance companies.  The fraudulent claims sought money for specific health care benefits, items, and services that were not provided as billed.  As a result of such false and fraudulent claims, Medicare, Medicaid and private insurance companies, made payments in the approximate amount of $637,000.

U.S. Attorney Fajardo Orshan commended the investigative efforts of HHS-OIG, FBI and Florida Attorney General’s Medicaid Fraud Control Unit in this matter.  This case was prosecuted by Assistant U. S. Attorneys Daniel E. Funk and Diana M. Acosta.

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.

John Kless, 49, of Tamarac, Florida, was arrested today after being charged with Making Threatening Communications, in violation of Title 18, United States Code, Section 875(c).  Kless made his initial appearance earlier today before United States Magistrate Judge Barry S. Seltzer.

Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, and Matthew R. Verderosa, Chief of Police, United States Capitol Police, made the announcement.  

According to allegations in the complaint, on April 16, 2019, Kless made multiple threatening communications to the Congressional offices of members from California, Michigan, and New Jersey.

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

A complaint is merely an accusation and a defendant is presumed innocent unless and until proven guilty in a court of law. 

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

Jean Joseph, 48, of Boca Raton, Evergreen United Investments, LLC, (Evergreen), a Florida Limited Liability Company, and GSA Income and Development Fund, L.P., (GSA) a Foreign Limited Partnership, charged with wire fraud, in violation of Title 18, United States Code, Section 1343.  Joseph was arrested yesterday. 

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. 

According to the Indictment, in October 2013, Kolmat do Brasil Ltda. (Kolmat), a Brazilian based company, sought to obtain a $30,000,000 construction loan from Evergreen, f/k/a USBREI, Inc., for its construction of the Magia Hotel Suite Resort, a luxury resort in Ipioca, Maceio City, Brazil.  Kolmat negotiated the terms of the Evergreen loan with Joseph, Evergreen’s manager.  The parties agreed on the loan terms, including a requirement that Kolmat invest $3,000,000 in GSA, f/k/a UBREI Capital Partners, L.P., an investor in properties leased to federal government agencies.  Joseph was an authorized person and registered agent for GSA.  The loan terms provided that if the loan was not authorized by Evergreen, Evergreen was to return to Kolmat within five business days the funds it paid to GSA.  Kolmat paid to GSA the agreed upon $3,000,000, but did not receive the $30,000,000 loan or a return of the $3,000,000 investment.  Instead, as alleged, Joseph used the funds for his own personal use and benefit.

U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI.  The case is being prosecuted by Assistant United States Attorney Lois Foster-Steers.

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

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

George French Jones, Jr., 50, of Santa Monica, California, was sentenced to 113 months in prison today by U.S. District Judge Robert N. Scola in Miami, after previously pleading guilty to mail fraud and identity theft charges in connection with a mortgage fraud scheme involving two waterfront residential properties in Broward County, Florida.  He was also ordered to pay $1,824,581 in restitution. 

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) made the announcement.

According to information disclosed in open court, in early 2018 Jones identified two residential properties in Fort Lauderdale, Florida, which Jones fraudulently pledged as collateral in order to obtain mortgage loans from a private lender.

The two Broward County properties were owned by corporate entities that Jones had no affiliation with and which were in fact owned by independent third parties. To execute his fraudulent loan scheme, Jones created fake identification documents and email addresses in order to impersonate officers of the corporate owners of the two properties. Jones then submitted bogus loan applications and other documents to a private lender in which he pretended to be the owners of the Fort Lauderdale properties. As a result of this scheme, Jones defrauded the private lender out of approximately $1.7 million dollars.

U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI, Miami Beach Police Department, and Florida Office of Financial Regulation.  This case was prosecuted by Assistant U.S. Attorney Christopher Browne.  Assistant U.S. Attorney Nalina Sombuntham is handling the asset forfeiture aspects of the prosecution. 

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.

Miami-based, gold refinery Republic Metals Corporation (“RMC”) executed a non-prosecution agreement with the United States Attorney’s Office for the Southern District of Florida (the “Office”) after cooperating in an investigation focusing on money laundering and violations of the Bank Secrecy Act in the gold importation and refining industry.  Under the terms of the agreement, RMC agreed to continue cooperating in the ongoing investigation, as well as to make improvements in its anti-money laundering and compliance programs.

Ariana Fajardo Orshan, United States Attorney, U.S. Attorney’s Office for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigations (FBI), Miami Field Office, Anthony Salisbury, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, Carlos L. Mitchem, Regional Director, Drug Enforcement Administration (DEA-Peru), Southern Cone Region, and Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA-Miami), Homestead Field Office, made the announcement.

RMC is the second U.S. gold refinery that has been implicated in the Office’s investigation into the gold importation and refining industry.  Previously, Elemetal LLC, doing business as “Elemetal” and “NTR Metals,” pled guilty to a single-count information for failure to maintain an adequate anti-money laundering program under the Bank Secrecy Act (BSA). (U.S. v. Elemetal LLC, Case No. 18-cr-20173).  The investigation into the gold importation and refining industry remains ongoing.

U.S. Attorney Ariana Fajardo Orshan stated, “We commend Republic Metals Corporation for cooperating in this investigation and agreeing to strengthen their anti-money laundering and compliance program after deficiencies had been discovered. This Office’s investigation into the gold importation and refining industry will continue and the resolution with Republic Metals Corporation, as well as the guilty plea of NTR, should place others on notice that there are benefits to cooperating and there are grave consequences for those who engage in money laundering or fail in their legal requirement to prevent it.”

These cases are the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) “Operation Arch Stanton”, 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 investigative efforts of FBI, ICE-HSI, IRS-CI, and DEA-Peru and DEA-Homestead.  This case is being prosecuted by International Narcotics and Money Laundering Section Assistant U.S. Attorneys Walter M. Norkin and Brian Shack.  Southern District of Florida Assistant U.S. Attorney Adrienne Rosen is handling the asset forfeiture aspects of this matter.

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.

U.S. District Judge Cecilia M. Altonaga sentenced former City of Miami Police officer, Schonton Harris, of Miami, to 15 ½ years in prison for her involvement in a drug trafficking conspiracy. 

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. 

Former officer Schonton Harris previously pled guilty to conspiring with other officers to possess cocaine from August through October 2018. According to court filings, on September 13, 2018, during an undercover operation, Schonton Harris, who was in full uniform and carrying her service firearm, provided police protection for what she believed was a multiple-kilogram shipment of cocaine by escorting the transportation of such cocaine from a bus station to a Miami-area hotel.  Later, on September 28, 2018, Schonton Harris provided police protection for a 40-kilogram shipment of what she again believed to be cocaine. The sham cocaine, divided into two 20-kilogram containers, was transported by undercover FBI employees in two separate vehicles to two different Miami-area hotels.  Finally, on October 11, 2018, Schonton Harris personally took possession of two large coolers from a Miami-area marina, which coolers she believed to each contain 15 kilograms of cocaine, and transported such coolers to two hotels in Miami. After the described incidents, Schonton Harris received a cash payment in the amount of $17,000.

“The sentence announced today is a victory for all law enforcement officers who protect and serve our community with pride, honor, and dignity,” said U.S. Attorney Ariana Fajardo Orshan. “We will not allow those who abuse their positions of trust to tarnish the reputation of the City of Miami Police Department and those dedicated officers who, every day, serve the City of Miami residents.  Those who use their badge to break the law and enrich themselves will be brought to justice.”

"Individuals who use the badge for their own personal gain have no place in law enforcement, " said George L. Piro, Special Agent in Charge,  FBI Miami.  "We commend the City of Miami Police Department for their close cooperation and commitment throughout this investigation."

This case was investigated by the FBI, including the FBI Miami      Area Corruption Task Force, and was prosecuted by Assistant U.S. Attorneys Harry C. Wallace, Jr. and Jessica Obenauf.

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 Port St. Lucie, Florida, man was sentenced to 84 months in prison today for filing false tax returns on behalf of his clients and for failing to report his true income on his own income tax returns, announced U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida and Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.

According to court documents and evidence presented at trial, from 2012 through 2015, Richard Maurival prepared income tax returns for clients that claimed false education credits, business expenses, and other deductions in order to inflate by thousands of dollars tax refunds issued by the Internal Revenue Service (IRS). In addition to filing fraudulent income tax returns for his clients, Maurival falsified his own returns, underreporting the fees he earned in his tax preparation business for tax years 2012, 2013, and 2014.

In addition to the term of imprisonment, U.S. District Judge James Ivan Cohn for the Southern District of Florida ordered Maurival to serve one year of supervised release and pay $267,995 in restitution to the IRS. 

U.S. Attorney Fajardo Orshan Principal and Deputy Assistant Attorney General Zuckerman commended special agents of IRS-Criminal Investigation, who investigated the case, and Southern District of Florida Assistant U.S. Attorney Diana Acosta and Tax Division Trial Attorney Grace Albinson who prosecuted the case.

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

A Port St. Lucie, Florida, man was sentenced to 84 months in prison today for filing false tax returns on behalf of his clients and for failing to report his true income on his own income tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida.

According to court documents and evidence presented at trial, from 2012 through 2015, Richard Maurival prepared income tax returns for clients that claimed false education credits, business expenses, and other deductions in order to inflate by thousands of dollars tax refunds issued by the Internal Revenue Service (IRS). In addition to filing fraudulent income tax returns for his clients, Maurival falsified his own returns, underreporting the fees he earned in his tax preparation business for tax years 2012, 2013, and 2014.

In addition to the term of imprisonment, U.S. District Judge James Ivan Cohn for the Southern District of Florida ordered Maurival to serve one year of supervised release and pay $267,995 in restitution to the IRS. 

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Fajardo Orshan commended special agents of IRS-Criminal Investigation, who investigated the case, and Tax Division Trial Attorney Grace Albinson and Assistant U.S. Attorney Diana Acosta, who prosecuted the case.

This month, the last of 14 defendants were sentenced for their respective roles in a violent criminal enterprise that operated in the Miami neighborhood of Allapattah for crimes committed as early as the year 2000. 

Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Office, Jorge Colina, Chief, Miami Police Department (MPD), Juan Perez, Director, Miami-Dade Police Department (MDPD), and Daniel Junior, Director, Miami-Dade Corrections and Rehabilitation Department (MDCR), made the announcement as part of the Southern District of Florida Violence Reduction Partnership (VRP).

On September 14, 2018, at the conclusion of a two-month trial before U.S. District Judge Jose E. Martinez, the jury convicted 10 defendants for racketeering and drug-related offenses.  On April 12, 2019, Judge Martinez completed the sentencing of the final defendant.  The sentences as to the defendants convicted at trial are as follows: 

Antonio Glass, of Miami, was convicted at trial of one count of Racketeering Conspiracy, one count of Drug Distribution Conspiracy, and one count of Possession of a Controlled Substance with Intent to Distribute.  Glass was sentenced to life imprisonment for his conduct, which included the death of a victim arising from the racketeering conspiracy;

Jerimaine Bryant, of Miami, was convicted at trial of one count of Racketeering Conspiracy, one count of Drug Distribution Conspiracy, and three counts of Possession of a Controlled Substance with Intent to Distribute.  Bryant was sentenced to life imprisonment; 

Curtis Bryant, of Miami, was convicted at trial of one count of Racketeering Conspiracy, one count of Drug Distribution Conspiracy, and one count of Attempted Possession of a Controlled Substance with Intent to Distribute.  Bryant was sentenced to life imprisonment for his conduct, which included the death of a victim arising from the racketeering conspiracy; 

Samuel Hayes, of Miami, was convicted at trial of one count of Racketeering Conspiracy, two counts of Robbery, and one count of Firearm Possession in Furtherance of a Crime of Violence.  Hayes was sentenced to 27 years imprisonment;

Mario Rodriguez, of Miami, was convicted at trial of one count of Drug Distribution Conspiracy, one count of Possession of a Controlled Substance with Intent to Distribute, and one count of Possession of a Firearm in Furtherance of a Drug Trafficking Crime.  Rodriguez was sentenced to 21 years imprisonment;

Michael Walker, of Miami, was convicted at trial of one count of Racketeering Conspiracy, one count of Drug Distribution Conspiracy, and one count of Possession of a Controlled Substance with Intent to Distribute.  Walker was sentenced to 19 years imprisonment;

Reginald Graham, of Miami, was convicted at trial of one count of Racketeering Conspiracy, Drug Distribution Conspiracy, and one count of Attempted Possession of a Controlled Substance with Intent to Distribute.  Graham was sentenced to 19 years imprisonment;

Daniel Jones, of Miami, was convicted at trial of one count of Drug Distribution Conspiracy.   Jones was sentenced to 19 years imprisonment;

Levi Bryant, of Miami, was convicted at trial of one count of Drug Distribution Conspiracy and one count of Possession of a Controlled Substance with Intent to Distribute.  Bryant was sentenced to 16 years imprisonment; and

Torivis Reginald Ingram, of Miami, was convicted at trial of one count of Drug Distribution Conspiracy and one count of Possession of a Controlled Substance with Intent to Distribute.  Ingram was sentenced to 14 years imprisonment.

The other four defendants, of Miami, pled guilty prior to trial and were sentenced for periods of sixty months to 15 years imprisonment.

During the trial, evidence, that included civilian and law enforcement witness testimony, presented proved how the charged racketeering enterprise, which used names such as the Dub Side Blood Family (DSBF), for over 17 years conducted its unlawful business practices and controlled the South Gwen Cherry Housing Complex in the Allapattah neighborhood of Miami. Witness testimony established how the DSBF members routinely robbed victims at gunpoint and sold narcotics.  The enterprise’s criminal spree included five commercial businesses, including MetroPCS locations, a Food Plus store, and the armed robberies of drug dealers.

The evidence at trial showed that the DSBF became so emboldened that it told a future homicide victim’s own mother that her son would be killed.  The DBSF followed through on that promise with his subsequent murder.  Trial evidence also established that members of the group celebrated after another victim’s murder by posting images of the deceased’s body in a casket.  Trial evidence included jailhouse phone calls and private messages, which captured DSBF members discussing the operation of their organization and proposed responses to circumvent law enforcement’s investigation into the criminal enterprise.   Trial evidence from the defendants’ social media and cellular phone records demonstrated the group’s ability to continue criminal activity despite periods of time when its members were incarcerated.  

U.S. Attorney Fajardo Orshan commended the collaborative investigative efforts of ATF, FBI, DEA, MPD, MDPD, and MDCR, including the following key participants:  MPD’s Narcotics Unit, Gun Squad, Gang Intelligence Detail, Homicide Unit, and Robbery Unit; MDPD’s Robbery Bureau, Narcotics Bureau, Homicide Bureau, and Street Violence Task Force. Ms. Fajardo Orshan also thanked the U.S. Marshals Service, U.S. Customs and Border Protection, Homestead Police Department, Miami-Dade Corrections and Rehabilitation Department’s Security Threat Group Unit, and the South Florida High Intensity Drug Trafficking Task Force to include the High Intensity Drug Trafficking Area-Miami-Dade State Attorney’s Gang Strike Force for their support in the investigation.

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 sentences 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 case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF), Operation Northern Light.  The Northern Light Task Force is a federal multi-agency, multi-jurisdictional task force that was formed to combat organized violent crime in Northern Miami-Dade County.  To date the Northern Light Task Force has secured the conviction of 27 defendants involved in complex violent crimes involving homicide, attempted murder, serial robbery, firearms offenses, drug trafficking, and other crimes.  The principal mission of the Northern Light Task Force is to identify, disrupt, and dismantle the most serious organized violent criminal conspiracies operating in Miami-Dade County, Florida.

This case was prosecuted by Assistant U.S. Attorneys Ignacio J. Vázquez, Jr. and Ilham A. Hosseini.

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.

Four Peruvian residents have been extradited to the United States, where they stand accused of operating a large-scale extortion scheme from 2012 through 2015, the Justice Department and U.S. Postal Inspection Service today announced.

Jesus Gerardo Gutierrez Rojas, 37, Maria de Guadalupe Alexandra Podesta Bengoa, 38, Virgilio Ignacio Polo Davila, 43, and Omar Alfredo Portocarrero Caceres, 39, face federal charges in Miami. Peruvian authorities arrested the four in late 2017, based upon a U.S. indictment. All four remained incarcerated in Peru since the time of their arrest. Peru approved their extradition to the U.S. on Jan. 18, 2019.

“The Department of Justice will pursue criminals who target and extort U.S. consumers, wherever they are,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “Those who extort U.S. consumers by phone cannot escape justice by placing their calls from abroad. I thank the Republic of Peru for extraditing these individuals to face charges in U.S. courts.” 

“Individuals who defraud American consumers will be brought to justice, no matter where they are located,” said U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida. “Protecting the elderly and vulnerable members of our community from extortion schemes, such as this one, is a top priority of this Office and the Department of Justice, and I thank the U.S. Postal Inspection Service for their unwavering commitment to rid the U.S. mail system of these schemes. This is a reminder to our community to be wary of those individuals who threaten imprisonment, a negative credit score or a change in immigration status; please report those threats immediately.”

“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.”

Podesta, Polo, and Portocarrero allegedly managed and operated Peruvian call centers that placed calls to Spanish-speaking consumers across the United States while lying and threatening them into paying fraudulent settlements for nonexistent debts. Many of the consumer victims were elderly. Gutierrez was allegedly the general manager of a larger company where he worked in partnership with Podesta, Polo, and Portocarrero to facilitate their extortion scheme. The defendants’ associates in Miami collected the payments and sometimes shipped packages to victims in the U.S.

According to the allegations in the indictment, Podesta, Polo, Portocarrero, and their employees in Peru used Internet-based telephone calls and claimed to be attorneys and government representatives to threaten victims in the United States. The callers falsely claimed that victims failed to pay for or receive a delivery of products. The callers also falsely claimed that victims would be sued and that the companies would obtain large monetary judgements against them. Some victims were also threatened with negative marks on their credit reports, imprisonment, or immigration status. The callers said these threatened consequences could be avoided if the victims immediately paid “settlement fees.” Many victims made monetary payments based on these baseless threats. 

A 34-count federal indictment was filed against the defendants in the U.S. District Court for the Southern District of Florida on Dec. 6, 2016, and was unsealed upon the defendants’ extradition to the U.S. The defendants are approved to face 12 extortion counts pending against them. An indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.

The case is being prosecuted by Trial Attorney Phil Toomajian of the Department of Justice’s Consumer Protection Branch. 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 Peruvian residents have been extradited to the United States, where they stand accused of operating a large-scale extortion scheme from 2012 through 2015, the Justice Department and U.S. Postal Inspection Service today announced. 

Jesus Gerardo Gutierrez Rojas, 37, Maria de Guadalupe Alexandra Podesta Bengoa, 38, Virgilio Ignacio Polo Davila, 43, and Omar Alfredo Portocarrero Caceres, 39, face federal charges in Miami. Peruvian authorities arrested the four in late 2017, based upon a U.S. indictment. All four remained incarcerated in Peru since the time of their arrest. Peru approved their extradition to the U.S. on Jan. 18, 2019.

“The Department of Justice will pursue criminals who target and extort U.S. consumers, wherever they are,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “Those who extort U.S. consumers by phone cannot escape justice by placing their calls from abroad. I thank the Republic of Peru for extraditing these individuals to face charges in U.S. courts.”  

“Individuals who defraud American consumers will be brought to justice, no matter where they are located,” said U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida. “Protecting the elderly and vulnerable members of our community from extortion schemes, such as this one, is a top priority of this Office and the Department of Justice, and I thank the U.S. Postal Inspection Service for their unwavering commitment to rid the U.S. mail system of these schemes. This is a reminder to our community to be wary of those individuals who threaten imprisonment, a negative credit score or a change in immigration status; please report those threats immediately.”

“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.” 

Podesta, Polo, and Portocarrero allegedly managed and operated Peruvian call centers that placed calls to Spanish-speaking consumers across the United States while lying and threatening them into paying fraudulent settlements for nonexistent debts. Many of the consumer victims were elderly. Gutierrez was allegedly the general manager of a larger company where he worked in partnership with Podesta, Polo, and Portocarrero to facilitate their extortion scheme. The defendants’ associates in Miami collected the payments and sometimes shipped packages to victims in the U.S. 

According to the allegations in the indictment, Podesta, Polo, Portocarrero, and their employees in Peru used Internet-based telephone calls and claimed to be attorneys and government representatives to threaten victims in the United States. The callers falsely claimed that victims failed to pay for or receive a delivery of products. The callers also falsely claimed that victims would be sued and that the companies would obtain large monetary judgements against them. Some victims were also threatened with negative marks on their credit reports, imprisonment, or immigration status. The callers said these threatened consequences could be avoided if the victims immediately paid “settlement fees.” Many victims made monetary payments based on these baseless threats.  

A 34-count federal indictment was filed against the defendants in the U.S. District Court for the Southern District of Florida on Dec. 6, 2016, and was unsealed upon the defendants’ extradition to the U.S. The defendants are approved to face 12 extortion counts pending against them. An indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.

The case is being prosecuted by Trial Attorney Phil Toomajian of the Department of Justice’s Consumer Protection Branch. 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. 

A Palm Beach County resident was sentenced to 12 years in prison for distributing cocaine and heroin containing Fentanyl.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Adolphus P.  Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Rick Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, Dave Aaronberg, State Attorney, Palm Beach County State Attorney’s Office, made the announcement. 

Duwayne Jones, 44, of Lake Worth, Florida, previously pled guilty to distributing a controlled substance (Case No. 19-CR-80004).  On April 12, 2019, Jones was sentenced by U.S. District Judge Kenneth A. Marra to 144 months in prison, to be followed by 3 years of supervised release.   

According to the court record, on October 2, 2018, Jones sold cocaine and heroin laced with Fentanyl to an undercover police officer.  On December 12, 2018, Jones again sold heroin to an undercover officer and was subsequently arrested.  During a search incident to his arrest additional heroin, cocaine, marijuana, and $415 in U.S. currency was recovered. 

Based upon prior police reports and telephone records, Jones was connected to two prior non-fatal overdoses.

U.S. Attorney Fajardo Orshan commended the investigative efforts of the DEA and Palm Beach County Sheriff’s Office in this matter.  She thanked the Palm Beach County State Attorney’s Office for their assistance. This case was prosecuted by Assistant U.S. Attorney Jennifer C. Nucci and Special Assistant U.S. Attorney Andrew Carrabis.

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 California tobacco company executive on Friday was arrested after being charged with a conspiracy to evade the payment of millions of dollars in excise taxes on imported cigars.

Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, Nicholas Colucci, Assistant Administrator for Field Operations, Alcohol and Tobacco Tax and Trade Bureau (TTB), and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Washington, DC Field Office, made the announcement.

Akrum Alrahib, 41, of Los Angeles, California, was charged by indictment with the following counts: conspiracy to defraud the United States, in violation of Title 18, United States Code, Section 371; conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349; wire fraud, in violation of Title 18, United States Code, Section 1343.  The indictment also charged Alrahib with violations of the Internal Revenue Code, including: refusing to pay Federal Tobacco Excise Tax on large cigars, and attempting to evade or defeat the tax or payment thereof, in violation of 26 U.S.C. §  5762(a)(3); and willfully attempting to evade or defeat Federal Tobacco Excise Tax on large cigars, in violation of Title 26 U.S.C. § 7201.

According to the indictment, Alrahib was the President of Trendsettah USA, Inc. (“Trendsettah”), a California tobacco company authorized to transact business in the State of Florida. Trendsettah sold various tobacco products, such as large cigars, and marijuana paraphernalia, such as “blunt wraps,” many of which were imported from the Dominican Republic. 

In 2013, Alrahib partnered with Gitano Pierre Bryant, Jr., a TTB-permitted tobacco importer, to import large cigars from the Dominican Republic into Miami, Florida. The indictment alleges that Alrahib and Bryant agreed to lower their costs by underreporting the Federal Tobacco Excise Tax that was due and owing on the imported cigars. According to the charging document, Alrahib and Bryant consistently evaded Federal Tobacco Excise Tax by concealing the price Alrahib actually paid for the cigars.

It is alleged that Alrahib paid over $9 million for untaxed tobacco products during the course of the charged conspiracies and received over $700,000 in kickbacks from Bryant, on which aggregate amount he did not pay the required federal excise tax.  

Alrahib will remain in custody pending his removal to the Southern District of Florida.

If convicted, Alrahib can be sentenced up to five years imprisonment on the conspiracy to defraud the United States charge and each of the charges for violations of the Internal Revenue Code, and up to 20 years imprisonment on the wire fraud and wire fraud conspiracy charges.  Additionally, the court may impose a fine of up to $250,000, on each count alleged in the indictment. 

U.S. Attorney Fajardo Orshan commended the investigative efforts of the TTB and IRS-CI. The case is being prosecuted by Assistant United States Attorney Christopher Browne.

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

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

A tax preparer and two employees were indicted on charges related to the preparation and filing of false tax returns.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.

Olry Maurival, of West Palm Beach, Florida, Paula Pognon, also of West Palm Beach, Florida and Amos Regusme, of Felton, Delaware, have been indicted for conspiracy to defraud the United States, in violation of Title 18, United States Code, Section 371 (Case No. 19-80054-CR-Middlebrooks).  Maurival and Pognon have also been indicted for aiding and assisting in the preparation of false tax returns, in violation of Title 26, United States Code, Section 7206(2) and Maurival has been indicted for filing false tax returns, in violation of Title 26, United States Code, Section 7206(1).  Their initial appearances are scheduled for April 25, 2019, in West Palm Beach. 

According to the allegations in the indictment, Maurival operated a tax preparation business where he, Pognon, and Regusme prepared taxes.  From 2012 through 2015, they prepared and filed returns on which they claimed a variety of credits and deductions to which their clients were not entitled, including the Earned Income Credit, the Fuel Tax Credit, deductions for unreimbursed employee expenses, and deductions and credit for educational expenses.  In addition, Maurival underreported his gross earnings from the operation of his tax business on his personal tax returns.

If convicted, the defendants face maximum possible statutory sentences of 5 years in prison, for the conspiracy.  In addition, Maurival and Pognon face maximum possible statutory sentences of 3 years in prison on each of the other counts.

An indictment is only an accusation and 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 IRS-CI.  This case is being prosecuted by Assistant U.S. Attorney Marc Osborne.

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 sentenced to prison in connection with a $1.4 million dollar insurance fraud scheme.

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

Alexander Hartman, of Palm Beach County, pled guilty, on January 24, 2019, to four counts of wire fraud, in violation of Title 18, United States Code, Section 1343 (18-80236-CR-Rosenberg).  On April 5, 2019, Hartman was sentenced by U.S. District Judge Robin L. Rosenberg to 33 months in prison, to be followed by three years of supervised release.

According to the court record, including the agreed upon factual proffer, Hartman was the sole owner and operator of Alexander Insurance Consultants (“AIC”).  During the period of August 2014 through May 2017, Hartman, while operating as the insurance agent/broker of AIC, engaged in a fraudulent course of conduct aimed at enriching himself.  Hartman submitted to Premium Assignment Corporation (“PAC”), via wire, false documentation in support of premium finance loans.  Hartman falsely represented to PAC that Lloyds of London had issued insurance policies for companies, that these companies were using PAC’s financing services to finance their premium payments, and that AIC had brokered the contracts and was entitled to collect the premiums on behalf of the insured.  None of the named companies were clients of AIC or Hartman and three of the companies did not exist.

Hartman defrauded PAC of approximately $1.4 million when he submitted false insurance obligations and used non-existent clients for which he sought premium financing.

U.S. Attorney Fajardo Orshan commended the investigative efforts of the USSS in this matter.  This case was prosecuted by Assistant U.S. Attorney Robin Waugh.

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 Woodbridge Group of Companies LLC and two former directors of investments have been charged criminally, in the Southern District of Florida, with orchestrating a massive investment fraud (Ponzi) scheme. 

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, Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Ronald L. Rubin, Commissioner, Florida Office of Financial Regulation (OFR), made the announcement.

Robert Shapiro, 61, of Sherman Oaks, California, Dane R. Roseman, a/k/a “Dayne Roseman,” 35, of Encino, California, and Ivan Acevedo, 42, of Chatsworth, California, were charged, by an indictment out of the Southern District of Florida that was unsealed today, with conspiracy to commit mail and wire fraud and substantive mail fraud counts (Case No. 19-20178-CR-Altonaga/Goodman). Shapiro and Roseman were also charged with substantive wire fraud counts.  In addition, Shapiro was charged with conspiracy to commit money laundering and evasion of payment of federal income taxes.  Shapiro, Roseman and Acevedo were arrested today in California and had their initial appearances before a U.S. Magistrate Judge in the Central District of California.  Shapiro was ordered to be detained in prison.  Roseman and Acevedo were ordered to appear in the Southern District Florida for their arraignment.  An arraignment date has not yet been scheduled.

According to the indictment, the owner of Woodbridge Group of Companies LLC (Woodbridge) Shapiro, and his former Directors of Investments, Acevedo and Roseman, orchestrated a massive Ponzi scheme through the business.  They ran their scheme through Woodbridge offices located throughout the United States, including Boca Raton, Florida and Sherman Oaks, California.  The conspiracy ran from July 2012 to December 2017, and involved material misrepresentations and material omissions to investors in the sale of Woodbridge investments.  Through telephone and in-person conversations, emails and website displays, Shapiro, Acevedo, Roseman and their co-conspirators promoted speculative and fraudulent securities to potential investors, targeting elderly investors who had Individual Retirement Accounts (IRAs).  Shapiro hired sales agents to solicit potential investors from the Woodbridge “phone room” that Roseman and Acevedo managed.  The phone room functioned as a “boiler room,” and featured high-pressure sales tactics, deception, material misrepresentations, and investor manipulation. Through telemarketing, Woodbridge sales agents contacted potential investors located throughout the United States, and solicited, offered, and sold Woodbridge investments to them.  For the fraud-based investments, the defendants and their co-conspirators’ main business model was to solicit money from investors and, in exchange, issue investors promissory notes reflecting purported loans to Woodbridge that paid monthly interest and matured in twelve to eighteen months.  The defendants claimed that the investments were tied to real property owned by third-party property owners.

The indictment alleges that Shapiro, Acevedo, Roseman and their co-conspirators, made and caused others to make materially false and fraudulent statements to induce investors to provide money, such as, that Woodbridge investments were “low risk,” “simpler,” “safe” and “conservative;” that Woodbridge was profitable, but in reality new Woodbridge investor money was used to pay prior Woodbridge investors, and that third-party affiliates were property owners, when in fact Shapiro owned nearly all of the real property at the center of every investment product offered by Woodbridge. 

According to the indictment, Shapiro took approximately $35 million in investor money for his benefit, spending millions on personal expenditures, such as $3.1 million for chartering private planes and travel, $6.7 million on a personal home, $2.6 million on home improvements, $1.8 million on personal income taxes, $1.4 million to his ex-wife, and over $672,000 on luxury automobiles. 

The indictment further alleges that Shapiro caused most of the Woodbridge companies to file Chapter 11 bankruptcy, which caused investors to suffer substantial losses, as they were owed close to $1 billion in principal. 

At least 2,600 of these investor victims invested their retirement savings, totaling approximately $400 million.

According to information presented to the court, search warrants related to the indictment were executed today in California.

The U.S. Securities and Exchange Commission (SEC) filed parallel civil enforcement actions against Acevedo and Roseman related to the Ponzi scheme.

An indictment contains allegations.  Every 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, IRS-CI and OFR in this matter.  She thanked the SEC Miami Regional Office and the U.S. Attorney’s Office for the Central District of California for their assistance.  This case is being prosecuted by Assistant U. S. Attorneys Roger Cruz and Michael Sherwin.

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 Ft. Lauderdale resident has been charged with distributing fentanyl, a controlled substance that was ingested and caused the death of another individual.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division, and Rick Maglione, Chief, Fort Lauderdale Police Department, made the announcement.

Jean Jameson, 35, of Broward County, was indicted on one count of distribution of fentanyl resulting in death and two counts of distribution of fentanyl (Case No. 19-60083-CR-Zloch/Hunt).  A calendar call has been set for May 10, 2019 at 10:00 a.m. in Fort Lauderdale before Senior Judge William J. Zloch.   A jury trial has been scheduled for the trial period beginning May 13, 2019.  If convicted of the narcotics distribution resulting in death charge, Jameson faces a mandatory minimum sentence of 20 years to life in prison, to be followed by supervised release and a potential fine of up to $1 million dollars.  If convicted of the additional charges, Jameson faces a maximum statutory term of 20 years in prison, to be followed by supervised release and a potential fine of up to $1 million dollars.

According to the court record, on September 25, 2018, Jameson distributed fentanyl, a Schedule II controlled substance, to A.M., an individual who died as a result of ingesting the drug.  Thereafter, on two separate occasions, Jameson distributed a controlled substances, to wit, fentanyl. 

“Men and women in our community are losing their lives to the drug trade,” stated US Attorney Fajardo Orshan.  “Fentanyl, a highly potent controlled substance, is being illegally distributed with deadly results. We implore the public to educate themselves, friends and loved ones about the dangers of drug abuse and addiction. Federal law enforcement authorities will continue to prosecute those who endanger our residents by fueling the opioid epidemic.”

“The DEA takes the distribution of any illegal drug very seriously,” said DEA Special Agent in Charge Adolphus P. Wright.  “The recent spike in opioid sales, which correlates to an increased death toll, only heightens our commitment to continue in this fight.  The DEA Miami Field Division will continue to work very closely with our law enforcement partners in the Tri-County area along with the United States Attorney’s Office to fully investigate and prosecute those responsible for illicit drug trafficking activities to ensure that they are held accountable for their actions, especially when the consequences from those actions result in the tragic death of another individual.”  

Fort Lauderdale Chief of Police Rick Maglione stated, “Individuals who knowingly distribute a substance that often results in death should absolutely be held accountable for the results of their actions.  Hopefully these individuals will begin to think twice before taking advantage of people who are suffering from an addiction now that they realize the severity of the charges and potential penalties that can be associated with their crimes.”

In December of 2014, the DEA, the Fort Lauderdale Police Department, and the Broward County Sheriff's Office formed a partnership with the Broward Medical Examiner's Office to track both synthetic drug and heroin related overdoses.  From that, and as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) National Heroin strategy to combat heroin/fentanyl trafficking and related overdose deaths, Operation Phantom Chase emerged.  The operation, begun in July 2017, is a multi-jurisdictional heroin/fentanyl initiative between the DEA, the U.S. Marshals Service, Homeland Security Investigations, U.S. Postal Inspection Service, Fort Lauderdale Police Department, Broward County Sheriff’s Office, Sunrise Police Department, Hollywood Police Department, Coral Springs Police Department and the U.S. Attorney’ Office in Broward County which operates as a data collection clearinghouse to analyze intelligence gathered from fatal and non-fatal heroin and fentanyl overdoses that occur in Broward County.  The charges being announced today result from the diligent investigative work of this successful federal-local partnership.      

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

U.S. Attorney Fajardo Orshan commended the investigative efforts of the DEA and the Ft. Lauderdale police.  She also thanked the Broward Sheriff’s Office for their support during the course of this investigation.  This case is being 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.gov or at http://pacer.flsd.uscourts.gov.

A federal jury found a South Florida health care facility owner guilty today for his role in the largest health care fraud scheme ever charged by the Justice Department, involving over $1.3 billion in fraudulent claims to Medicare and Medicaid for services that were not provided, were not medically necessary or were procured through the payment of kickbacks.

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 Piro of the FBI’s Miami Field Office, Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office and Deputy Administrator and Director Alec Alexander of the Centers for Medicare and Medicaid Services Center for Program Integrity made the announcement.

After an eight-week trial, Philip Esformes, 50, of Miami Beach, Florida, was convicted of one count of conspiracy to defraud the United States, two counts of receipt of kickbacks in connection with a federal health care program, four counts of payment of kickbacks in connection with a federal health care program, one count of conspiracy to commit money laundering, nine counts of money laundering, two counts of conspiracy to commit federal program bribery, and one count of obstruction of justice before U.S. District Judge Robert N. Scola Jr. of the Southern District of Florida.  Sentencing has not yet been scheduled.

“Philip Esformes orchestrated one of the largest health care fraud schemes in U.S. history, defrauding Medicare and Medicaid to the tune of over a billion dollars,” said Assistant Attorney General Benczkowski.  “I commend our dedicated prosecutors and law enforcement partners for their professionalism and unyielding pursuit of justice on behalf of American taxpayers and vulnerable beneficiaries who, as a result of Esformes’s crimes, were denied the level of care that they needed and deserved.”

“Philip Esformes’s criminal scheme defrauded America’s health care system out of millions of dollars, that would have otherwise provided quality care to patients in need,” said U.S. Attorney Fajardo Orshan.  “I commend the Assistant U.S. Attorneys from the Southern District of Florida, who worked tirelessly alongside their partners at the Department’s Criminal Division, the FBI and HHS-OIG to bring this case to justice.  This massive fraud scheme, perpetuated in nursing and assisted living facilities in our South Florida communities, compromised the integrity of our local health care system.  We remain united in our commitment to root out health care fraud and support quality patient care.”

“Philip Esformes is a man driven by almost unbounded greed,” said Assistant Special Agent in Charge Denise M. Stemen of FBI Miami.  “The illicit road Esformes took to satisfy his greediness led to over $800 million in fraudulent health care claims, the largest amount ever charged by the Department of Justice.  Along that road, Esformes cycled patients through his facilities in poor condition where they received inadequate or unnecessary treatment, then improperly billed Medicare and Medicaid.  Taking his despicable conduct further, he bribed doctors and regulators to advance his criminal conduct and even bribed a college official in exchange for gaining admission for his son to that university.  The FBI and its partners are constantly investigating health care fraudsters, big and small, who steal money from taxpayers at the expense of patients in need of quality medical care.”

“This largest ever healthcare fraud conviction highlights the awful toll criminal schemes take on federal health programs,” said HHS-OIG Special Agent in Charge Richmond.  “Even beyond the vital dollars lost though, Esformes exploited and victimized patients by providing inadequate medical care and poor conditions in his nursing homes.  Along with our law enforcement partners, we will continue the fight against such parasites.”

According to evidence presented at trial, from approximately January 1998 through July 2016, Esformes led an extensive health care fraud conspiracy involving a network of assisted living facilities and skilled nursing facilities that he owned.  Esformes bribed physicians to admit patients into his facilities, and then cycled the patients through his facilities, where they often failed to receive appropriate medical services, or received medically unnecessary services, which were then billed to Medicare and Medicaid, the evidence showed. Several witnesses testified to the poor conditions in the facilities and the inadequate care patients received, which Esformes was able to conceal from authorities by bribing an employee of a Florida state regulator for advance notice of surprise inspections scheduled to take place at his facilities.  The evidence further showed that Esformes used his criminal proceeds to make a series of extravagant purchases, including luxury automobiles and a $360,000 watch.  Esformes also used criminal proceeds to bribe the basketball coach at the University of Pennsylvania in exchange for his assistance in gaining admission for his son into the university. Altogether, the evidence established that Esformes personally benefited from the fraud and received in excess of $37 million.

Esformes’s coconspirator, physician’s assistant Arnaldo Carmouze, previously pleaded guilty to conspiracy to commit health care fraud and is scheduled to be sentenced on April 10.  Esformes’s coconspirator Odette Barcha also pleaded guilty to one count of conspiring to violate the anti-kickback statute.  She was sentenced on April 3, 2019, to 15 months in prison.

This case was investigated by the FBI and HHS-OIG and 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 with assistance from Florida Attorney General’s Office Medicaid Fraud Control Unit.  The case was prosecuted by Fraud Section Assistant Chiefs Allan Medina and Drew Bradylyons and Trial Attorneys James Hayes, Elizabeth Young and Jeremy Sanders, as well as Assistant U.S. Attorneys John Shipley and Dan Bernstein of the Southern District of Florida.  Assistant U.S. Attorneys Alison Lehr, Nalina Sombuntham and Daren Grove of the Southern District of Florida are handling the forfeiture aspects of the case.

The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. 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.

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 jury found a South Florida health care facility owner guilty today for his role in the largest health care fraud scheme ever charged by the Justice Department, involving over $1.3 billion in fraudulent claims to Medicare and Medicaid for services that were not provided, were not medically necessary or were procured through the payment of kickbacks. 

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 Piro of the FBI’s Miami Field Office, Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office and Deputy Administrator and Director Alec Alexander of the Centers for Medicare and Medicaid Services Center for Program Integrity made the announcement.

After an eight-week trial, Philip Esformes, 50, of Miami Beach, Florida, was convicted of one count of conspiracy to defraud the United States, two counts of receipt of kickbacks in connection with a federal health care program, four counts of payment of kickbacks in connection with a federal health care program, one count of conspiracy to commit money laundering, nine counts of money laundering, two counts of conspiracy to commit federal program bribery, and one count of obstruction of justice before U.S. District Judge Robert N. Scola Jr. of the Southern District of Florida.  Sentencing has not yet been scheduled.

“Philip Esformes orchestrated one of the largest health care fraud schemes in U.S. history, defrauding Medicare and Medicaid to the tune of over a billion dollars,” said Assistant Attorney General Benczkowski.  “I commend our dedicated prosecutors and law enforcement partners for their professionalism and unyielding pursuit of justice on behalf of American taxpayers and vulnerable beneficiaries who, as a result of Esformes’s crimes, were denied the level of care that they needed and deserved.”

“Philip Esformes’ criminal scheme defrauded America’s health care system out of millions of dollars, that would have otherwise provided quality care to patients in need,” said U.S. Attorney Fajardo Orshan.  “I commend the Assistant U.S. Attorneys from the Southern District of Florida, who worked tirelessly alongside their partners at the Department’s Criminal Division, the FBI and HHS-OIG to bring this case to justice.  This massive fraud scheme, perpetuated in nursing and assisted living facilities in our South Florida communities, compromised the integrity of our local health care system.  We remain united in our commitment to root out health care fraud and support quality patient care.”

“Philip Esformes is a man driven by almost unbounded greed,” said Assistant Special Agent in Charge Denise M. Stemen of FBI Miami.  “The illicit road Esformes took to satisfy his greediness led to over $800 million in fraudulent health care claims, the largest amount ever charged by the Department of Justice.  Along that road, Esformes cycled patients through his facilities in poor condition where they received inadequate or unnecessary treatment, then improperly billed Medicare and Medicaid.  Taking his despicable conduct further, he bribed doctors and regulators to advance his criminal conduct and even bribed a college official in exchange for gaining admission for his son to that university.  The FBI and its partners are constantly investigating health care fraudsters, big and small, who steal money from taxpayers at the expense of patients in need of quality medical care.”

“This largest ever healthcare fraud conviction highlights the awful toll criminal schemes take on federal health programs,” said HHS-OIG Special Agent in Charge Richmond.  “Even beyond the vital dollars lost though, Esformes exploited and victimized patients by providing inadequate medical care and poor conditions in his nursing homes.  Along with our law enforcement partners, we will continue the fight against such parasites.”

According to evidence presented at trial, from approximately January 1998 through July 2016, Esformes led an extensive health care fraud conspiracy involving a network of assisted living facilities and skilled nursing facilities that he owned.  Esformes bribed physicians to admit patients into his facilities, and then cycled the patients through his facilities, where they often failed to receive appropriate medical services, or received medically unnecessary services, which were then billed to Medicare and Medicaid, the evidence showed.  Several witnesses testified to the poor conditions in the facilities and the inadequate care patients received, which Esformes was able to conceal from authorities by bribing an employee of a Florida state regulator for advance notice of surprise inspections scheduled to take place at his facilities.  The evidence further showed that Esformes used his criminal proceeds to make a series of extravagant purchases, including luxury automobiles and a $360,000 watch.  Esformes also used criminal proceeds to bribe the basketball coach at the University of Pennsylvania in exchange for his assistance in gaining admission for his son into the university.  Altogether, the evidence established that Esformes personally benefited from the fraud and received in excess of $37 million. 

Esformes’s coconspirator, physician’s assistant Arnaldo Carmouze, previously pleaded guilty to conspiracy to commit health care fraud and is scheduled to be sentenced on April 10.  Esformes’s coconspirator Odette Barcha also pleaded guilty to one count of conspiring to violate the anti-kickback statute.  Barcha was sentenced on April 3 to serve 15 months in prison followed by three years of supervised release.  She was also ordered to pay $704,516.00 in restitution.

This case was investigated by the FBI and HHS-OIG and 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 with assistance from Florida Attorney General’s Office Medicaid Fraud Control Unit  The case was prosecuted by Fraud Section Assistant Chiefs Allan Medina and Drew Bradylyons and Trial Attorneys James Hayes, Elizabeth Young and Jeremy Sanders, as well as Assistant U.S. Attorneys John Shipley and Dan Bernstein of the Southern District of Florida.  Assistant U.S. Attorneys Alison Lehr, Nalina Sombuntham and Daren Grove of the Southern District of Florida are handling the forfeiture aspects of the case.

The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.  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.