Southern District of Florida

Federal authorities announced today a significant coordinated effort to disrupt Business Email Compromise (BEC) schemes that are designed to intercept and hijack wire transfers from businesses and individuals, including many senior citizens.  Operation Wire Wire, a coordinated law enforcement effort by the U.S. Department of Justice, U.S. Department of Homeland Security, U.S. Department of the Treasury and the U.S. Postal Inspection Service, was conducted over a six month period, culminating in over two weeks of intensified law enforcement activity resulting in 74 arrests in the United States and overseas, including 29 in Nigeria, and three in Canada, Mauritius and Poland.  The operation also resulted in the seizure of nearly $2.4 million, and the disruption and recovery of approximately $14 million in fraudulent wire transfers.

BEC, also known as “cyber-enabled financial fraud,” is a sophisticated scam often targeting employees with access to company finances and businesses working with foreign suppliers and/or businesses that regularly perform wire transfer payments.  The same criminal organizations that perpetrate BEC also exploit individual victims, often real estate purchasers, the elderly, and others, by convincing them to make wire transfers to bank accounts controlled by the criminals. This is often accomplished by impersonating a key employee or business partner after obtaining access to that person’s email account or sometimes done through romance and lottery scams.  BEC scams may involve fraudulent requests for checks rather than wire transfers; they may target sensitive information such as personally identifiable information (PII) or employee tax records instead of, or in addition to, money; and they may not involve an actual “compromise” of an email account or computer network.  Foreign citizens perpetrate many BEC scams.  Those individuals are often members of transnational criminal organizations, which originated in Nigeria but have spread throughout the world. 

“Fraudsters can rob people of their life's savings in a matter of minutes,” said Attorney General Sessions. “These are malicious and morally repugnant crimes. The Department of Justice has taken aggressive action against fraudsters in recent months, conducting the largest sweep of fraud against American seniors in history back in February. Now, in this operation alone, we have arrested 42 people in the United States and 29 others have been arrested in Nigeria for alleged financial fraud. And so I want to thank the FBI, nearly a dozen U.S. Attorneys' Offices, the Secret Service, Postal Inspection Services, Homeland Security Investigations, the Treasury Department, our partners in Nigeria, Poland, Canada, Mauritius, Indonesia, and Malaysia, and our state and local law enforcement partners for all of their hard work. We will continue to go on offense against fraudsters so that the American people can have safety and peace of mind.”

“The deceptive and illicit practices that drive cyber fraud schemes have no place in our South Florida community,” stated U.S. Attorney Benjamin Greenberg for the Southern District of Florida.  “Shell companies, money mules, email account takeovers and wire fraud disrupt legitimate businesses and have devastating financial consequences for the victims.  A lifetime of savings can disappear with a keystroke.  We remind everyone to be vigilant, to protect your personal identifying information and to be extremely cautious of cyber-scams.”

“This operation demonstrates the FBI’s commitment to disrupt and dismantle criminal enterprises that target American citizens and their businesses,” said FBI Director Christopher A. Wray. “We will continue to work together with our law enforcement partners around the world to end these fraud schemes and protect the hard-earned assets of our citizens. The public we serve deserves nothing less.”

“The Secret Service remains committed to aggressively investigating and pursuing those responsible for cyber-enabled financial crimes,” said U.S. Secret Service Director Randolph “Tex” Alles.  “Although the explosive expansion of the cyber domain has forced us to develop innovative ways of conducting these types of investigations, our proven model remains the same.”

“FinCEN has been a leader in the fight against BEC and other cyber-enabled crime,” said FinCEN Director Kenneth A. Blanco. “Since 2014, working with our domestic and international partners, our Rapid Response Program has helped recover over $350 million stolen from innocent Americans.  We must continue to be smarter, quicker, and better than the criminals that we face every day.  Today’s action is a victory, but it will take vigilance, time, and resources to take this fight into the future.  In defense of the victims of these crimes, we are ready for the challenge.”

“The U.S. Postal Inspection Service has a long history of successfully investigating complex fraud and corruption cases,” said Chief Postal Inspector Guy Cottrell, U.S. Postal Inspection Service. “We are proud to work alongside our fellow law enforcement partners in major efforts, such as Operation Wire Wire, to target those individuals who take advantage of the American public for illegal profits. Anyone who engages in deceptive practices like this should know they will not go undetected and will be held accountable, regardless of where they are. Postal Inspectors will continue to work tirelessly to protect our customers from fraud.” 

A number of cases involved international criminal organizations that defrauded small to large sized businesses, while others involved individual victims who transferred high dollar funds or sensitive records in the course of business.  The devastating effects these cases have on victims and victim companies, affect not only the individual business but also the global economy.  Since the Internet Crime Complaint Center (IC3) began keeping track of BEC and its variant, Email Account Compromise (EAC), as a complaint category, there has been a loss of over $3.7 billion reported to the IC3.  BEC and EAC is a prevalent scam and the Justice Department along with our partners will continue to aggressively pursue and prosecute the perpetrators, including money mules, regardless of where they are located. 

Money mules may be witting or unwitting accomplices who receive ill-gotten funds from the victims and then transfer the funds as directed by the fraudsters.  The money is wired or sent by check to the money mule who then deposits it in his or her own bank account.  Usually the mules keep a fraction for “their trouble” and then wire the money as directed by the fraudster.  The fraudsters enlist and manipulate the money mules through romance scams or “work-at-home” scams.

Starting in January 2018, this coordinated enforcement action targeted hundreds of BEC scammers.  In addition, law enforcement agents executed over 51 domestic actions including search warrants, money mule warning letters, and asset seizure warrants totaling nearly $1 million.  Local and state law enforcement partners on FBI task forces across the country, with the assistance of multiple District Attorney’s Offices, charged 15 alleged money mules for their role in defrauding victims.  These money mules were employed by the fraudsters to launder their ill-gotten gains by draining the funds into other accounts that are difficult to trace.

Among those arrested on federal charges in BEC schemes include:

• Following an investigation by the FBI and the U.S. Secret Service, 23 individuals were charged in the Southern District of Florida with laundering at least $10 million from proceeds of BEC scams, including eight people charged in an indictment unsealed last week in Miami. These eight defendants are alleged to have conspired to launder proceeds from numerous BEC scams, totaling at least approximately $5 million, including approximately $1.4 million from a victim corporation in Seattle, as well as various title companies and a law firm.  The following BEC related matters are currently being handled by the U.S. Attorney’s Office for the Southern District of Florida: Case Nos. 17-CR-20748, 18-CR-20170, and 18-CR-20415.
   

• Following an investigation led by the FBI with the assistance of the IRS Criminal Investigation, Gloria Okolie and Paul Aisosa, both Nigerian nationals residing in Dallas, Texas, were charged in an indictment filed on June 6 in the Southern District of Georgia.  According to the indictment, they are alleged to have victimized a real estate closing attorney by sending the lawyer a spoofing email posing as the seller and requesting that proceeds of a real estate sale in the amount of $246,000 be wired to Okolie’s account.  They are charged with laundering approximately $665,000 in illicit funds.  The attorney experienced $130,000 in losses after the bank was notified of the fraud and froze $116,000.
   
• Adeyemi Odufuye aka “Micky,” “Micky Bricks,” “Yemi,” “GMB,” “Bawz” and “Jefe,” 32, and Stanley Hugochukwu Nwoke, aka Stanley Banks,” “Banks,” “Hugo Banks,” “Banky,” and “Jose Calderon,” 27, were charged in a seven-count indictment in the District of Connecticut in a BEC scheme involving an attempted loss to victims of approximately $2.6 million, including at least $440,000 in actual losses to one victim in Connecticut.  A third co-conspirator Olumuyiwa Yahtrip Adejumo, aka “Ade,” “Slimwaco,” “Waco,” “Waco Jamon,” “Hade,” and “Hadey,” 32, of Toledo, Ohio, pleaded guilty on April 20 to one count of conspiracy to commit wire fraud.  Odufuye was extradited from the United Kingdom to the United States and on Jan. 3, pleaded guilty to one count of conspiracy to commit wire fraud and one count of aggravated identity theft. Nwoke was extradited to the United States from Mauritius on May 25, marking the first extradition in over 15 years from Mauritius.  His case is pending.

 

• Richard Emem Jackson, aka Auwire, 23, of Lagos, Nigeria, was charged in an indictment filed on May 17 in the District of Massachusetts with two counts of unlawful possession of a means of identification as part of a larger fraud scheme. According to the indictment, on two occasions in 2017, Jackson is alleged to have possessed the identifications of two victims with the intent to commit wire fraud conspiracy.  In another case being prosecuted in the District of Massachusetts, a 25-year-old Fort Lauderdale, Florida man was indicted in federal court in Boston on June 6 on one count of money laundering conspiracy. According to the indictment, the individual was part of a conspiracy that engaged in wire fraud. It is alleged that in early 2018, the defendant’s co-conspirators gained access to email accounts belonging to a Massachusetts real estate attorney and sent emails to recipients in Massachusetts that “spoofed” the real estate attorney’s account in an attempt to cause the email recipient to transfer nearly $500,000, which was intended to be used for payment in connection with a real estate transaction, to a shell account belonging to a money mule recruited and controlled by the defendant.

 

• The BEC scam is related to other forms of fraud such as:
• “Romance scams,” which lull victims to believe that their online paramour needs funds for an international business transaction, a U.S. visit or some other purpose;
• “Employment opportunities scams,” which recruits prospective employees for work-from-home employment opportunities where employees are required to provide their PII as new “hires” and then are significantly overpaid by check whereby the employees wire the overpayment to the employers’ bank;
• “Fraudulent online vehicle sales scams,” which convinces intended buyers to purchase prepaid gift cards in the amount of the agreed upon sale price and are instructed to share the prepaid card codes with the “sellers” who ignore future communications and do not deliver the goods;
• “Rental scams” occur when renters forward a check in excess of the agreed upon deposit for the rental property to the victims and request the remainder be returned via wire or check and back out of the rental agreements and ask for a refund; and
• “Lottery scams,” which involves persons randomly contacting email addresses advising them they have been selected as the winner of an international lottery.

 

The cases were investigated by the FBI, U.S. Secret Service, U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Department of the Treasury Financial Crimes Enforcement Network (FinCEN) and IRS Criminal Investigation.  U.S. Attorney’s Offices in the Districts of Central California, Connecticut, Eastern Virginia, Massachusetts, Nebraska, New Jersey, Southern Florida, Southern Georgia, Southern Texas, Eastern Pennsylvania, Eastern Washington, Western Pennsylvania, Western Tennessee, Western Washington, Utah, and elsewhere have ongoing investigations some of which have resulted in arrests in Nigeria.  The Justice Department’s Computer Crime and Intellectual Property Section, Money Laundering and Asset Recovery Section and Office of International Affairs of the Criminal Division provided assistance. District Attorney’s Offices of Caddo Parrish in Shreveport, Louisiana; Harris County, Texas and Los Angeles are handling state prosecutions. Additionally, private sector partners and the Nigerian Economic and Financial Crimes Commission, Canadian law enforcement including the Toronto Police Service, the Mauritian Attorney-General and the Commissioner of Police, Polish Police Central Bureau of Investigation, Indonesian National Police Cyber Crimes Unit, and the Royal Malaysia Police provided significant assistance.  

This operation, which was funded and coordinated by the FBI, serves as a model for international cooperation against specific threats that endanger the financial well-being of each member country’s residents.  Attorney General Sessions expressed gratitude for the outstanding efforts of the participating countries, including law enforcement actions that were coordinated and executed by the Economic and Financial Crimes Commission (EFCC) in Nigeria to curb business email compromise schemes that defraud businesses and individuals alike.

Victims are encouraged to file a complaint online with the IC3 at bec.ic3.gov. The IC3 staff reviews complaints, looking for patterns or other indicators of significant criminal activity, and refers investigative packages of complaints to the appropriate law enforcement authorities in a particular city or region. The FBI provides a variety of resources relating to BEC through the IC3, which can be reached at www.ic3.gov.

For more information on BEC scams, visit: www.ic3.gov/media/2018/180611.aspx

An indictment, criminal complaint, and information sets forth a formal charge against a defendant.  Under the law, that charge is merely an accusation and a defendant is presumed innocent unless 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.

Alberto Rodriquez, 66, of Briarwood, New York, pleaded guilty today to mail fraud in connection with a scheme to evade federal excise tax on imported cigars.

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida and Ron Hancock, Acting Assistant Administrator for Field Operations, Alcohol and Tobacco Tax and Trade Bureau (TTB), made the announcement.

According to information contained in the court record, from as early as July 2013, Rodriguez operated as a customs broker in the State of New York.  Rodriguez contracted with two tobacco importers to import large cigars into the United States.  In an effort to defraud the United States of excise tax due on the imported cigars, Rodriguez created false and fraudulent documents, including United States Customs and Border Protection (CBP) Forms 7501 ("Entry Summaries"), which misrepresented, among other things, the quantities of large cigars imported into the United States and the Federal tobacco excise tax due for those importations.  In addition to consistently underreporting and evading the Federal tobacco excise tax, Rodriguez transmitted false and fraudulent documents to CBP using the United States Postal Service mail.

To profit from the scheme, Rodriguez sent invoices to the two tobacco importers reflecting the true quantities of imported large cigars and the properly calculated Federal tobacco excise tax due, which resulted in the importers paying Rodriguez more than what he paid to CBP.

To conceal the scheme, Rodriguez altered documents, including importer invoices and bank records, and provided these altered documents to TTB agents and employees, all for the purpose of misleading TTB and pretending that he had correctly calculated and paid to CBP the Federal tobacco excise tax due on the large cigars imported by the two importers.

Rodriguez pled guilty to an information charging him with mail fraud, in violation of Title 18, United States Code, Section 1341.  In total, Rodriguez evaded approximately $503,681.15 in Federal Tobacco Excise Tax.

Sentencing is currently scheduled before U.S. District Judge Cecilia M. Altonaga, on August 22, 2018 at 9:00 a.m.  Rodriguez faces a maximum sentence of 20 years in prison.

Mr. Greenberg commended the investigative efforts of TTB in this matter.  He also thanked Internal Revenue Service, Criminal Investigation and CBP for their assistance.  This case is being prosecuted by Assistant United States Attorney Christopher B. Browne.

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.

On June 7, 2018, Joey Little, of Broward County, was sentenced to 57 months in prison by U.S. District Court Judge James I. Cohn, after previously pleading guilty to being a felon unlawfully in possession of a firearm and ammunition.

Benjamin G. Greenberg, United States 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.

According to the court docket, including the agreed upon factual proffer, between June 21, 2016, and January 11, 2018, Little posted several photos and videos on social media in which he was pictured in possession of a firearm.  During one of the videos, Little discharged the firearm in a residential area.  On January 11, 2018, Little was located sitting in a vehicle outside his home. In the passenger seat, law enforcement found a lunch bag containing a Taurus .9mm pistol fitted with an extended magazine. Little had previously been convicted of a felony and was prohibited from possessing a firearm or 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.   Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

Mr. Greenberg commended the investigatory efforts of the ATF in this matter.  This case was prosecuted by Assistant United States Attorneys Anita G. White.

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 paralegal employed by the Department of Homeland Security, Customs and Border Protection, has been arrested on federal child pornography charges.   

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigations (FBI), and Scott Israel, Sheriff, Broward County Sheriff’s Office (BSO), made the announcement.

Richard Russo, 54, of Boynton Beach, was charged by criminal complaint with receipt and possession of child pornography, in violation of Title 18, United State Code, Section 2252(a)(2) and (b)(4).  If convicted, Russo faces a minimum sentence of five years in prison and a statutory maximum term of 20 years in prison.  Russo is currently being detained, without bond, pending further proceedings.  His preliminary hearing and arraignment are scheduled to take place on June 14, 2018 at 10:00 a.m. in U.S. District Court in West Palm Beach.   

            According to the court record, including allegations contained in the criminal complaint, beginning in late 2017, Russo, a Paralegal Specialist with Customs and Border Protection began communicating and receiving child pornography from another individual using a cross-platform messaging service.

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

A criminal complaint is a formal charge against a defendant.  Under the law, that charge is merely an accusation and the defendant is presumed innocent unless proven guilty in a court of law.

Mr. Greenberg commended the investigatory efforts of the FBI and BSO in this matter.  He also thanked the FBI Child Exploitation Task Force, Florida Department of Law Enforcement and Department of Homeland Security - Office of the Inspector General for their assistance.  This case is being prosecuted by Assistant United States Attorney Corey Steinberg.

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.

On June 1, 2018, Neil Timothy Aho, 45, of Menlo Park, California, was sentenced to 17 years in prison and a lifetime of supervised release for distributing child pornography.

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI); Scott Israel, Sheriff, Broward County Sheriff’s Office (BSO) and Rick Maglione, Chief, Fort Lauderdale Police Department, made the announcement.

United States District Judge Kenneth A. Marra sentenced Aho to 204 months in prison and a lifetime of supervised release.  Aho must also register as a sex offender.  Aho previously pled guilty to one count of distribution of child pornography, in violation of Title 18, United States Code, Section 2252(a)(2).

According to court documents, between 2012 and 2014, while Aho was living in South Florida, he amassed a large collection of child pornography which he attempted to hide from law enforcement detection using highly sophisticated software encryption techniques.  In June of 2015, after Aho had relocated to California, law enforcement was able to establish a connection to the defendant's computer and thereafter downloaded child pornography files from him.  Each of the files, that was downloaded from Aho’s computer, contained videos of minor children engaging in sexually explicit conduct with adult males.  In 2015, the defendant was arrested in relation to this investigation.   The investigation revealed that Aho possessed over 3,000 videos and 6,000 images depicting child pornography, including children under the age of 6 engaged in sexually explicit conduct with adults.

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

Mr. Greenberg commended the investigatory efforts of the ICE-HSI, BSO and Fort Lauderdale Police Department in this matter.  This case was prosecuted by Assistant United States Attorneys Corey Steinberg and 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 on http://pacer.flsd.uscourts.gov.

Vladimir Nevidomy, 32, of Hallandale Beach, Florida, was sentenced to 26 months in prison, to be followed by three years of supervised release, for conspiring to illegally export military-grade night vision and thermal vision devices, and ammunition primers to Russia. 

U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, Assistant Attorney General for National Security John C. Demers, Special Agent in Charge Robert Lasky of the FBI’s Miami Field Office, and Special Agent in Charge Mark Selby of Homeland Security Investigation’s (HSI) Miami Field Office made the announcement after sentencing by U.S. District Judge Kathleen Williams. 

According to information contained in court documents, from as early as April 2013 through November 2013, customers in Russia contacted Nevidomy by email requesting night vision rifle scopes, thermal monoculars and ammunition primers, all of which were on the U.S. Munitions List and subject to export control by the U.S. Department of State.  Nevidomy proceeded to obtain at least three ATN MARS 4x4 night-vision rifle scopes and an ODIN 61BW thermal multi-purpose monocular from U.S. vendors by falsely representing to the vendors that the items were not for export. 

After the U.S. vendors sent the night vision devices to Nevidomy in South Florida, he exported them to his co-defendant in Russia by either concealing the defense articles in household goods shipments sent through a freight forwarding company or using a private Russian postal service that operated in South Florida.  In June 2013, Nevidomy aided and abetted the export of the ATN MARS 4x4 night-vision rifle scopes from the U.S. to the co-defendant in Russia, and in August 2013, he exported the ODIN 61BW thermal multi-purpose monocular from the U.S. to the co-defendant in Russia.  

On or about July 19, 2013, the same co-defendant sent an email to Nevidomy requesting 1,000 large-rifle ammunition primers to be shipped to Vladivostok, Russia.  On or about Oct. 2, 2013, Nevidomy attempted to export 1,000 Sellier & Bellot ammunition primers from the U.S. to the co-defendant in Vladivostok.  These ammunition primers were seized by U.S. Customs and Border Protection. 

These night vision rifle scopes, thermal monocular and ammunition primers required a license or other authorization from the U.S. Department of State before being exported from the U.S. since they were on the U.S. Munitions List.  A certified license history check revealed that neither Nevidomy, a Ukraine-born naturalized U.S. citizen, nor his associates ever applied or attempted to apply for an export license from the State Department for the night-vision equipment or ammunition primers. 

Nevidomy was sentenced today to concurrent time, in Case No. 17-CR-60137, after previously pleading guilty to passport fraud and conspiracy to commit passport fraud in the Southern District of Florida.

Mr. Greenberg and Mr. Demers commended the investigative efforts of the FBI and HSI.  This case was prosecuted by Assistant U.S. Attorneys Michael Thakur and Rick Del Toro of the Southern District of Florida, and Trial Attorney Christian Ford of the National Security Division’s Counterintelligence and Export Control Section.

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

Vladimir Nevidomy, 32, of Hallandale Beach, Florida, was sentenced to 26 months in prison, to be followed by three years of supervised release, for conspiring to illegally export military-grade night vision and thermal vision devices, and ammunition primers to Russia.

Assistant Attorney General for National Security John C. Demers, U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, Special Agent in Charge Robert Lasky of the FBI’s Miami Field Office, and Special Agent in Charge Mark Selby of Homeland Security Investigation’s (HSI) Miami Field Office made the announcement after sentencing by U.S. District Judge Kathleen Williams.

According to information contained in court documents, from as early as April 2013 through November 2013, customers in Russia contacted Nevidomy by email requesting night vision rifle scopes, thermal monoculars and ammunition primers, all of which were on the U.S. Munitions List and subject to export control by the U.S. Department of State.  Nevidomy proceeded to obtain at least three ATN MARS 4x4 night-vision rifle scopes and an ODIN 61BW thermal multi-purpose monocular from U.S. vendors by falsely representing to the vendors that the items were not for export.

After the U.S. vendors sent the night vision devices to Nevidomy in South Florida, he exported them to his co-defendant in Russia by either concealing the defense articles in household goods shipments sent through a freight forwarding company or using a private Russian postal service that operated in South Florida.  In June 2013, Nevidomy aided and abetted the export of the ATN MARS 4x4 night-vision rifle scopes from the U.S. to the co-defendant in Russia, and in August 2013, he exported the ODIN 61BW thermal multi-purpose monocular from the U.S. to the co-defendant in Russia. 

On or about July 19, 2013, the same co-defendant sent an email to Nevidomy requesting 1,000 large-rifle ammunition primers to be shipped to Vladivostok, Russia.  On or about Oct. 2, 2013, Nevidomy attempted to export 1,000 Sellier & Bellot ammunition primers from the U.S. to the co-defendant in Vladivostok.  These ammunition primers were seized by U.S. Customs and Border Protection.

These night vision rifle scopes, thermal monocular and ammunition primers required a license or other authorization from the U.S. Department of State before being exported from the U.S. since they were on the U.S. Munitions List.  A certified license history check revealed that neither Nevidomy, a Ukraine-born naturalized U.S. citizen, nor his associates ever applied or attempted to apply for an export license from the State Department for the night-vision equipment or ammunition primers.

Mr. Demers and Mr. Greenberg commended the investigative efforts of the FBI and HSI.  This case was prosecuted by Assistant U.S. Attorneys Michael Thakur and Rick Del Toro of the Southern District of Florida, and Trial Attorney Christian Ford of the National Security Division’s Counterintelligence and Export Control Section.

On May 30, 2018, Geannis Gonzalez, 31, formerly of Peyton, Colorado, Quiana Velasco, 35, of Miami, Jose Daniel Estrella, 38, of Hallandale, Pedro Reyes, 38, of Hialeah, Robinson Castillo, 32, of Pembroke Pines, and Jamie Vives Castillo, 41, of Pembroke Pines, were sentenced to federal prison for participating in a conspiracy to commit money laundering.  Yesterday, conspirator Alfredo Tovar, 36, of Miami Gardens, was also sentenced to prison for his involvement in the criminal scheme.  All seven defendants previously pled guilty for their involvement in the conspiracy, in March 2018.   

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement. 

“The sentences announced today stem from a pernicious scheme that was breathtaking in scope,” stated United States Attorney Benjamin Greenberg. “Unfortunately, the life-blood of this devastating scheme was a steady stream of people who cast aside their respect for the law, in the pursuit of ‘easy money.’  As a result, vulnerable men and women throughout the country were stripped of their life savings. The U.S. Attorney’s Office and our law enforcement partners will continue to bring to justice those individuals who carry out, and recruit for, similar criminal enterprises.”

“Today’s sentencings punish the defendants for their thievery and greed,” said Robert F. Lasky, Special Agent in Charge, FBI Miami.  “So-called white collar crimes such as money laundering should not be taken lightly.  In this case, there were over 400 victims, including retirees, who were scammed out of tens or hundreds of thousands of their hard-earned dollars.  The FBI is continuously adapting our investigative techniques to bring these types of offenders to justice.”

According to stipulated facts filed in court, as well as facts presented at sentencing, the defendants opened bank accounts established in the names of shell corporations to receive the proceeds of various fraudulent schemes, including romance frauds, email hacking schemes, and inheritance and lottery scams, that victimized individuals and corporations across the United States.  Once these bank accounts received money wired from a fraud victim, the defendants would wire the money to other accounts overseas.  Victims of the fraud schemes included retirees and other individuals whom were defrauded of tens or hundreds of thousands of dollars, including retirement savings and money borrowed from friends and family members. 

After banks closed the accounts that the defendants had opened, often on suspicion that the they were being used for fraud or other illegal activity, the defendants would recruit other individuals to act as “money mules,” establishing additional shell corporations in the money mules’ names.  The defendants would then instruct the money mules to open new bank accounts throughout South Florida in the names of the new shell corporations.  They would also instruct the mules to falsely represent to the banks that the shell corporations were legitimate businesses engaged in the import, export, or sale of various goods.  Those accounts would similarly receive proceeds from the same sorts of fraudulent schemes, after which the defendants would instruct their recruits to further wire the money overseas.  The defendants received repeated warnings and indications that the funds coming into the shell corporation bank accounts were the proceeds from illegal activity.  The bank accounts that were utilized by the defendants and the mules they recruited, received between $3,381,110 to $7,177,442 in proceeds.  As a result of their involvement with this scheme, the seven defendants would receive a small percentage of these funds as their commission.  Overall, the conspiracy included the participation of dozens of individuals and laundered money was defrauded from more than 400 victims.

United States District Court Judge Ursula Ungaro imposed prison sentences upon all seven defendants, ranging from 108 months in prison for Pedro Reyes and 80 months in prison for Geannis Gonzalez, to 48 months in prison for Jose Estrella, Jamie Vives Castillo, and Robinson Castillo.  Quiana Vealsco and Alfredo Tovar were each sentenced to 60 months in prison.

Mr. Greenberg commended the investigative efforts of the FBI in connection with this matter.  This case was prosecuted by Assistant U.S. Attorneys Jared M. Strauss and Michael G. Walleisa. 

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.

Vicente Adolfo Solano, 53, a citizen of Honduras residing in Miami, was sentenced to 210 months in prison, to be followed by a lifetime of supervised release, for attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization, after planning to detonate an explosive device at a Miami mall.  Solano pleaded guilty on March 14, 2018. 

U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, Assistant Attorney General for National Security John C. Demers,  and Special Agent in Charge Robert F. Lasky of the FBI’s Miami Field Office made the announcement after sentencing by U.S. District Judge Paul C. Huck. 

“Any individual who plots to support a foreign terrorist organization puts our local community at risk and this threat remains a top priority for our U.S. Attorney’s Office and our law enforcement partners,” stated U.S. Attorney Greenberg.  “Today’s sentence speaks to those who harbor extremist ideals – your terroristic agenda will be thwarted and your punishment of years in prison will be your only lasting legacy.”  

“The efforts of the dedicated women and men of the FBI and the South Florida Joint Terrorism Task Force have kept the people of Miami safe from this ISIS supporter and ensured Solano will go to prison,” said Assistant Attorney General Demers.  “I am grateful for our law enforcement partners, and I applaud our prosecutors for today’s successful outcome and the message it sends: we will not tolerate threats to our country or its people.” 

"Solano dreamed of detonating an explosive device in a crowded Miami area mall, but he was denied his terroristic aspirations by the outstanding work and team effort of the South Florida Joint Terrorism Task Force,” said Special Agent in Charge Lasky.  “This is a job well done by a group of professionals who must remain eternally vigilant.” 

According to the stipulated factual basis filed with the Court, in early 2017, Solano told an individual, who later became a Confidential Human Source (CHS) for the government, that he was upset with the United States and wanted to conduct an attack in Miami.  Later, Solano told this CHS that he wanted to join ISIS. 

Solano planned to place and detonate an explosive device in a crowded area of a popular Miami mall.  Solano discussed his plot with the CHS and two undercover FBI employees.  According to the complaint, Solano provided three videos to the CHS, in which Solano makes pro-ISIS statements and expresses anti-U.S. sentiments.  Just prior to his arrest, Solano took possession of what he believed was an explosive device, took steps to arm it, and walked toward a mall entrance in order to carry out his attack.  Unbeknownst to Solano, the device was inert and did not pose a risk to the public.  Solano was taken into custody prior to entering the Mall.  

Judge Huck imposed a sentence below the statutory maximum recommended by the advisory sentencing guidelines and advocated by the government, noting that the defendant is currently in removal proceedings and will be returned to his native country of Honduras following his prison term.  Solano had been residing in the United States under Temporary Protected Status.  His protected status has since been revoked.   

Mr. Greenberg commended the investigative efforts of the FBI and the South Florida Joint Terrorism Task Force.  This case was prosecuted by Assistant U.S. Attorney Karen E. Gilbert for the Southern District of Florida and Trial Attorney Jolie Zimmerman of the National Security Division’s Counterterrorism Section.

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

Vicente Adolfo Solano, 53, a citizen of Honduras residing in Miami, was sentenced to 210 months in prison, to be followed by a lifetime of supervised release, for attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization, after planning to detonate an explosive device at a Miami mall.  Solano pleaded guilty on March 14.

Assistant Attorney General for National Security John C. Demers, U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, and Special Agent in Charge Robert F. Lasky of the FBI’s Miami Field Office made the announcement after sentencing by U.S. District Judge Paul C. Huck.

“The efforts of the dedicated women and men of the FBI and the South Florida Joint Terrorism Task Force have kept the people of Miami safe from this ISIS supporter and ensured Solano will go to prison,” said Assistant Attorney General Demers.  “I am grateful for our law enforcement partners, and I applaud our prosecutors for today’s successful outcome and the message it sends: we will not tolerate threats to our country or its people.”

“Any individual who plots to support a foreign terrorist organization puts our local community at risk and this threat remains a top priority for our U.S. Attorney’s Office and our law enforcement partners,” stated U.S. Attorney Greenberg.  “Today’s sentence speaks to those who harbor extremist ideals – your terroristic agenda will be thwarted and your punishment of years in prison will be your only lasting legacy.”

“Solano dreamed of detonating an explosive device in a crowded Miami area mall, but he was denied his terroristic aspirations by the outstanding work and team effort of the South Florida Joint Terrorism Task Force,” said Special Agent in Charge Lasky.  “This is a job well done by a group of professionals who must remain eternally vigilant.”

According to the stipulated factual basis filed with the Court, in early 2017, Solano told an individual, who later became a Confidential Human Source (CHS) for the government, that he was upset with the United States and wanted to conduct an attack in Miami.  Later, Solano told this CHS that he wanted to join ISIS.

Solano planned to place and detonate an explosive device in a crowded area of a popular Miami mall.  Solano discussed his plot with the CHS and two undercover FBI employees.  According to the complaint, Solano provided three videos to the CHS, in which Solano makes pro-ISIS statements and expresses anti-U.S. sentiments.  Just prior to his arrest, Solano took possession of what he believed was an explosive device, took steps to arm it, and walked toward a mall entrance in order to carry out his attack.  Unbeknownst to Solano, the device was inert and did not pose a risk to the public.  Solano was taken into custody prior to entering the Mall.

Judge Huck imposed a sentence below the statutory maximum recommended by the advisory sentencing guidelines and advocated by the government, noting that the defendant is currently in removal proceedings and will be returned to his native country of Honduras following his prison term.  Solano had been residing in the United States under Temporary Protected Status.  His protected status has since been revoked. 

Mr. Demers and Mr. Greenberg commended the investigative efforts of the FBI and the South Florida Joint Terrorism Task Force.  This case was prosecuted by Assistant U.S. Attorney Karen E. Gilbert for the Southern District of Florida and Trial Attorney Jolie Zimmerman of the National Security Division’s Counterterrorism Section.

Peter Robert Bobal, 42, of Hallandale Beach, was convicted yesterday by a federal jury in Miami for enticing a 14-year-old to engage in sexual activity and committing a felony involving a minor while being required to register as a sex offender.

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigations (FBI), made the announcement.

According to the court record, including evidence presented at trial, after receiving information from a concerned citizen, the FBI opened an investigation into Bobal.  An undercover FBI agent posed as a 14 year-old girl and communicated with Bobal online.  Over a period of twelve days in March of 2018, Bobal asked the individual he believed to be the 14 year-old minor more than 56 times to provide sexually explicit photographs and more than 70 times to meet him in person in order to engage in sexual activity.  Bobal arranged to meet the 14-year old minor to commit a sexual act on March 14, 2018.  On that date, Bobal was arrested when he arrived at the pre-arranged location to meet with the minor. 

The jury found that Bobal committed a felony involving a minor while being required to register as a sex offender, following a 2005 conviction for enticement of a minor.

Bobal is to be sentenced on August 14, 2018 by U.S. District Court Judge Beth Bloom.  He faces a mandatory minimum sentence of 20 years in prison.

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

Mr. Greenberg commended the investigatory efforts of the FBI and FBI Miami Child Exploitation Task Force in this matter.  This case is being prosecuted by Special Assistant U.S. Attorney M. Catherine Koontz and Assistant United States Attorney Francis Viamontes.

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.

 

Chantale Baptiste, 33, of Coral Springs, Florida, was sentenced today to 33 months for conspiring with her husband and co-defendant, Weguel Legentus, to defraud the Internal Revenue Service (IRS) with respect to claims, and filing false claims with the IRS.   

Benjamin G. Greenberg, U.S. Attorney for the Southern District of Florida, Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Dana Watson, Chief, Margate Police Department, Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), and Drew J. Breakspear, Commissioner, Florida Department of Financial Regulations, made the announcement.

At sentencing, United States District Judge Darrin P. Gayles sentenced Baptiste to 33 months in prison.  Baptiste agreed to pay restitution in the amount of $275,000.  Baptiste will serve a three-year term of supervised release at the conclusion of her prison sentence. 

According to publicly filed court documents, Baptiste and her husband, co-defendant Weguel Legentus, operated CMB Financial Group, Inc. (“CMB”), a tax preparation business, located primarily in Broward County.   As tax preparers, Legentus and Baptiste would meet with their clients and prepare their clients’ tax returns.  From at least as early as 2013 through 2016, Legentus and Baptiste prepared and filed false and fraudulent federal income tax returns on behalf of their clients. They did so by attaching to their clients’ tax returns false and fraudulent tax credit forms, and false and fraudulent IRS Schedule C forms reflecting profits or losses associated with businesses that their clients did not operate.  These false and fraudulent credits and Schedule C profits or losses had the effect of increasing the refund owed by the IRS to the client.  Legentus and Baptiste would then provide their clients with a copy of their prepared federal income tax return and represent that the information contained in the copy provided would be filed with the IRS on his clients’ behalf. 

Baptiste and Legentus would then alter their clients’ tax returns without their clients’ knowledge and inflate the refund amount requested even further.  Baptiste and Legentus would then file the false and fraudulent federal income tax returns with the inflated refund amount with the IRS.  The IRS would then disburse the tax refunds to bank accounts controlled by Baptiste and Legentus, who would retain for their own use and benefit the amount of the inflated tax refund, as well as their fees.  On occasion, Legentus and Baptiste would retain the entire tax refund amount for themselves.  For example, one of their client’s refunds for approximately $12,000 was stolen in its entirety and deposited into an account controlled by Baptiste and Legentus.  When clients would complain to Legentus and Baptiste, they would often be ignored, or lied to, about the status of their tax refund. 

Baptiste had previously pled guilty to conspiracy to defraud the IRS with respect to claims, in violation of Title 18, United States Code, Section 286, and filing false claims with the IRS, in violation of Title 18, United States Code, Section 287.  Legentus also pled guilty to conspiracy to defraud the IRS with respect to claims, in violation of Title 18, United States Code, Section 286, and filing false claims with the IRS, in violation of Title 18, United States Code, Section 287, and was previously sentenced to 33 months in prison. 

Mr. Greenberg commended the investigative efforts of IRS-CI, the Margate Police Department, the Broward Sheriff’s Office, and the Florida Department of Financial Regulations.  Mr. Greenberg also thanked the Ft. Lauderdale Police Department, the Coral Springs Police Department, and the Greenacres Police Department.  The case was prosecuted by Assistant U.S. Attorneys J. Mackenzie Duane and Michael Berger.

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

The former manager of a Miami-based licensed towing company (“the Towing Company”), and his father, who had a pending agreement to buy the Towing Company, pled guilty today to participating in a conspiracy to pay bribes in order to obtain a contract with the City of Opa Locka. 

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Michael J. DePalma, Acting  Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.

Raul Sosa Sr. (“Sosa Sr.”) and Raul Sosa Jr. (“Sosa Jr.”) pled guilty before United States District Judge Jose E. Martinez to conspiring to commit Federal programs bribery, in violation of Title 18, United States Code, Sections 371 and 666(a)(2) (Count 1 of the Superseding Indictment).  Both men are scheduled to be sentenced on August 6, 2018 before Judge Martinez.

According to the court record, Sosa Sr. and Sosa Jr. conspired with then-Opa Locka City Commissioner Luis Santiago and his associate, Dante Starks, to pay Santiago and Starks a $10,000 bribe so that Santiago and Starks would use their positions and influence to ensure that the Towing Company was selected to receive a city towing contract.

The illegal agreement was finalized at an April 19, 2015 meeting between Sosa Sr., Santiago, and Starks, during which Sosa Sr. paid the first installment of the bribe and designated his son, Sosa Jr., as the person who would work with Santiago and Starks to carry out the illegal arrangement.  Over the next month, Sosa Jr. made additional bribe payments with cash provided by Sosa Sr., and Starks arranged for an Opa Locka city employee to assemble and prepare the Towing Company’s bid package.  After this bid was submitted, Starks violated the City’s purchasing Cone of Silence by contacting a member of the City’s committee ranking the towing bids and directing that individual to rank the Towing Company as the number one company.  To complete the illegal arrangement, Santiago used his position as a City Commissioner to move and vote in favor of the June 24, 2015 resolution authorizing the City Manager to enter into towing contracts with the Towing Company and three other companies.  The next day, Sosa Jr. paid the final installment of the $10,000 bribe to Starks.

In related cases, arising from the Opa Locka corruption investigation, Santiago previously pled guilty to conspiring to commit Federal programs bribery and Hobbs Act extortion under color of official right (Case No. 16-20971-CR-WILLIAMS) and was sentenced to 51 months in prison.  Starks is pending trial on charges of conspiracy to commit Hobbs Act extortion under color of official right; conspiracy to commit Federal programs bribery; aiding and abetting Federal programs bribery; and failure to file income tax returns (Case No. 18-20313-CR-MARTINEZ).

Mr. Greenberg commended the investigative efforts of the FBI Miami Area Corruption Task Force and IRS-CI in this matter.  Mr. Greenberg thanked the Miami-Dade Police Department and Hialeah Police Department for their assistance.   This case is being prosecuted by Assistant United States Attorneys Edward N. Stamm and Maurice Johnson.

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.

On May 25, 2018, Anthony Gignac, a/k/a “Khaled Al-Saud,” a/k/a “Khalid Al-Saud,” a/k/a “Khalid Bin Al-Saud,” a/k/a “Khalid Bin Sultan Al-Saud,” a/k/a “Sultan Bin Khalid Al Saud,” 47, of Miami, pled guilty to one count of impersonating a foreign diplomat or foreign government official, in violation of Title 18, United States Code, Section 915, one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(1)(a), and one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 922(g)(1).

Defendant Gignac fraudulently assumed the identity of a member of the Saudi Royal family in order to build relationships worldwide, including in South Florida, receive gifts and conduct a large-scale scheme to defraud would-be investors.  

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Fred Stolper, Special Agent in Charge, U.S. Department of State, Diplomatic Security Service (DSS), made the announcement.  

In June of 2015, Gignac and one of his co-conspirators created a fraudulent investment company, Marden Williams International LLC (“MWI”).  MWI sought financial investments from individuals and businesses worldwide for purported business opportunities that did not in fact exist.  As part of their efforts, Gignac and his co-conspirators falsely represented to potential financial investors that the defendant was a member of the Saudi Royal family and had exclusive business opportunities for them to invest in, because of the defendant’s royal status.  One of the fraudulent investment schemes was purported to be a pre-initial private offering of a legitimate private Saudi Arabian business.  One victim invested approximately $5,000,000 into the fraudulent scheme.

Beginning in March of 2017, Gignac presented himself as a member of the Saudi Royal family in an attempt to purchase a multi-million dollar hotel in Miami.  Gignac stayed at the hotel using a credit card in the name of a member of the Saudi Royal family, without that individual’s authorization.  When visiting the hotel, Gignac drove a Ferrari with diplomatic license plates. 

Gignac also claimed ownership of a residence on Fisher Island and had a “Sultan” nameplate at the front door.  He falsely told others that he had diplomatic immunity and was required to check in with the U.S. Department of State every few hours.  Gignac was given gifts, including expensive paintings and jewelry, based on his false representations.

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

As a result of this fraudulent scheme, law enforcement executed a search warrant at Gignac’s residence in Miami and discovered two fraudulent diplomatic license plates, a fraudulent DSS Special Agent badge, unauthorized credit cards and financial documents in the name of a member of the Saudi Royal family, ammunition, thousands of dollars in U.S. currency, jewelry and artwork.

According to the court record, Gignac had falsely claimed, in the past, to be a member of the Saudi Royal family. 

The defendant faces a maximum of 10 years in prison for impersonating a foreign diplomat or foreign government official, a maximum of 20 years in prison for conspiracy to commit wire fraud, and a mandatory consecutive term of 2 years in prison for the aggravated identity theft charge of conviction.

Mr. Greenberg commended the investigative efforts of the DSS in this matter.  The case is being prosecuted by Assistant United States Attorney Trinity Jordan.

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

A federal grand jury returned an indictment yesterday charging Dustin Allen Hughes, 26, of Cutler Bay, Florida, with four counts of obstruction of persons in the free exercise of religious beliefs through threatening the use of a dangerous device and explosive, in violation of Title 18, United States Code, Section 247(a)(2) and (d)(3), and four counts of making threats by telephone, in violation of Title 18, United States Code, 844(e).

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida and Robert F. Lasky, Special Agent in Charge and Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.

“Everyone has the right to practice their religion and visit places of worship without having to fear for their physical safety,” said United States Attorney Benjamin G. Greenberg. “This office, with the assistance of our law enforcement partners, will aggressively defend these rights and prosecute those who commit hate crimes of any kind.”

“Hate crimes are the highest priority of the FBI’s Civil Rights program,” said Robert F. Lasky, Special Agent in Charge, FBI Miami. "Hate crimes have a devastating impact on families and communities and we are committed to thoroughly and vigorously investigating these offenses.”

According to the indictment, between May 2, 2018, and May 5, 2018, Hughes made four separate threats by telephone to Jamaat Ul Muttaqeen Mosque of Pembroke Pines, Florida.  According to the indictment, each time, Hughes left a voicemail message containing bomb threats and derogatory language towards Muslims.

If convicted of the charge of obstruction of persons in the free exercise of religious beliefs through threatening the use of a dangerous device and explosive, Hughes faces a statutory maximum term of 20 years in prison.  If convicted of the charge of making a threat by telephone, Hughes faces a statutory maximum of 10 years in prison.

An indictment and criminal complaint merely contain allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Mr. Greenberg commended the outstanding investigative efforts of the FBI and members of the FBI Miami Area Corruption Task Force.  He also thanked the Pembroke Pines Police Department, the Miami-Dade Police Department, and the City of Miami Police Department for their assistance.  This case is being prosecuted by Assistant U.S. Attorney Michael Davis and Trial Attorney Samantha Trepel of the Justice Department’s Civil Rights Division.

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

A Fort Lauderdale resident was sentenced yesterday to over 21 years in prison for being a felon in possession of a firearm and ammunition, and distributing crack cocaine.

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge, United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Rick Maglione, Chief, Fort Lauderdale Police Department, made the announcement.

On March 14, 2018, John Edward Bradham, 50, of Fort Lauderdale, was convicted by a trial jury of distribution of crack cocaine and being a felon in possession of two firearms and ten rounds of ammunition.  Yesterday, United States District Judge William P. Dimitrouleas ruled that Bradham was an armed career criminal and sentenced him to 240 months in prison for distribution of crack cocaine, to run concurrent to 262 months in prison for the unlawful possession of firearms and ammunition convictions.

According to the court record, including evidence presented at trial and sentencing, on October 17, 2017, Bradham unlawfully sold a Ruger .380 caliber semiautomatic pistol, loaded with five rounds of ammunition, and crack cocaine.  Later the same day, law enforcement arrested Bradham and executed a search warrant at his storage unit, where they recovered a second firearm, a Smith & Wesson .357 caliber revolver that was loaded with five rounds of ammunition.  At the time of the criminal conduct, Bradham was a convicted felon and thereby prohibited from possessing firearms and ammunition.

Mr. Greenberg commended the investigative efforts of ATF and Fort Lauderdale Police Department in this matter.  This case was prosecuted by Assistant United States 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 on http://pacer.flsd.uscourts.gov.

 

A Pompano Beach resident was sentenced yesterday to 15 years in federal prison, after having been convicted at trial of being a felon in possession of a firearm.

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Robert Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Scott Israel, Sheriff, Broward County Sheriff’s Office (BSO), made the announcement.

On March 6, 2018, Tedarel Preston, 44, of Pompano Beach, was convicted by a trial jury of being a felon in possession of a firearm.  Yesterday, United States District Court Judge Beth Bloom ruled that Preston was an armed career criminal and sentenced him to 180 months in prison, to be followed by 3 years of supervised release.

According to the court record, including evidence presented during the defendant’s trial, in late December of 2017, BSO detectives received information alleging the Preston was going to be involved in a retaliatory gang shooting.  On December 29, 2017, detectives received additional information that the defendant was in possession of a firearm and observed the defendant seated in the back seat of a vehicle.  As the detectives approached Preston, they observed him remove a firearm from his waistband and attempt to hide it under the passenger seat.  Law enforcement then removed Preston from the vehicle and placed him under arrest.  A loaded, .40 caliber semi-automatic pistol was found in the vehicle, near where Preston’s feet had been positioned.  At the time of his arrest, Preston was a convicted felon and prohibited from possessing a firearm.

Mr. Greenberg commended the investigative efforts of the FBI and BSO in this matter.  This case was prosecuted by Assistant U.S. Attorney Bruce Brown.

Court documents and information related to this case 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.

Esteban Santiago-Ruiz (Santiago) appeared today before United States District Judge Beth Bloom, and pled guilty to charges of committing acts of violence at an international airport resulting in five deaths and serious injuries, in connection with the mass-shooting at Fort Lauderdale-Hollywood International Airport on January 6, 2017.   

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Robert Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Scott Israel, Sheriff, Broward County Sheriff’s Office (BSO), made the announcement.

“Today the man responsible for the horrific, devastating, and tragic attack on numerous innocent people at the Ft. Lauderdale Airport was held accountable for his crimes,” stated Benjamin G. Greenberg.  “Although this conviction cannot restore the lives lost or forever changed by his egregious acts of violence, it shows our unwavering and united commitment to seeking justice for the victims.  The U.S. Attorney’s Office and our law enforcement partners are resolute in our dedication to combatting all forms of violent crime and protecting all residents and visitors of our South Florida community.”

“On January 6, 2017, Esteban Santiago-Ruiz committed a mass-shooting when he pulled out a handgun and started shooting inside the terminal of Fort Lauderdale-Hollywood International Airport, killing five people and seriously wounding six more,” said Robert F. Lasky, Special Agent in Charge, FBI Miami.  “Santiago is now being held accountable for this senseless and cowardly act of violence.”

“When the active killer fired indiscriminately in the baggage claim area on that fateful day, lives were lost and other lives were forever changed by his heartless, violent actions,” Sheriff Scott Israel said. “I commend the work of our law enforcement partners and the U.S. Department of Justice that led to today’s outcome. I can only hope that the resolution of this case brings some peace to the affected families.”

Santiago pled guilty to five counts of committing acts of violence at an international airport causing death (Counts 1-5) and six counts of committing acts of violence at an international airport causing serious bodily injury (Counts 6-11), all in violation of Title 18, United States Code, Section 37(a)(1).

According to court documents, shortly before 1 p.m. on January 6, 2017, Santiago carried out an armed attack on newly-arrived passengers retrieving their luggage in the Terminal 2 baggage claim area of the Fort Lauderdale-Hollywood International Airport in Fort Lauderdale, Florida.  Santiago pulled out a handgun and started shooting at numerous victims, aiming at the victims’ heads and bodies until he was out of ammunition. Santiago killed five people and seriously wounded six more.  Moments later, Santiago was confronted by a BSO deputy.  He dropped his handgun on the ground and was arrested by BSO deputies.  The FBI investigated the case along with the U.S. Attorney’s Office.

Santiago is scheduled to be sentenced by Judge Bloom in Miami on August 17, 2018 at 9:30 a.m.  Santiago faces a sentence of up to life in prison on each of Counts 1-5, and up to twenty years in prison on each of Counts 6-11.

Mr. Greenberg commended the investigative assistance of FBI and BSO in this matter.  This case is being prosecuted by Assistant United States Attorneys Ricardo A. Del Toro and Lawrence D. LaVecchio.

Court documents and information related to this case 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 federal court in Florida entered a consent decree of permanent injunction against two individuals and one corporation preventing them from operating an alleged mail-fraud scheme, the Department of Justice, including the U.S. Attorney’s Office for the South District of Florida, announced today. 

The permanent injunction signed by United States District Court Judge Jose E. Martinez of the Southern District of Florida arises from a complaint filed in February 2018. That complaint alleged that Art Masters LLC, which does business as Palm Beach Liquidation Gallery, and its principal Eugene Marotta, of Fort Lauderdale, Florida, and William Clutter, who does business as Edge Graphics, of North Las Vegas, Nevada, mailed fraudulent solicitations styled as personalized notifications that the recipient won a large package of cash and prizes worth more than $350,000, but needed to pay a fee of $161.25 to claim the package. 

According to the complaint, victims who sent the fee received no prize. Instead, defendants mailed them a list of publicly-advertised sweepstakes and an ink-jet printed reproduction of an artwork. The United States alleged that in the eighteen months the scheme operated, defendants mailed more than 150,000 fraudulent solicitations and victims lost more than one million dollars. 

“Individuals who prey upon the most vulnerable members of our society, including the elderly, will be held accountable,” said United States Attorney Benjamin G. Greenberg for the Southern District of Florida. “Fraud schemes will not be tolerated.  Our Office will continue to protect consumers through both civil and criminal prosecutions.  We remind everyone to be wary and exercise extreme caution when they receive a call or notification of an award offer that is just ‘too good to be true.’ Legitimate operators will not demand payment for prizes.”

“The Department of Justice will pursue those who defraud Americans through false promises and fraudulent schemes,” said Acting Assistant Attorney General Chad A. Readler for the Justice Department’s Civil Division. “Schemes like this often target the elderly and vulnerable, and shutting them down remains a top priority for the Department.”

"The Postal Inspection Service is dedicated to protecting our customers and their hard-earned money from fraudsters,” said Assistant Inspector in Charge Nicole Davis for the US Postal Inspection Service, Criminal Investigations Group. “We strongly urge people to do their research before responding to solicitations like the ones in this case and remember "if it looks too good to be true, it probably is.”

The consent decree permanently enjoins the defendants from mailing solicitations promising delivery of a prize, offering for sale information on sweepstakes or lotteries, or making other deceptive representations. Defendants are also precluded from creating, renting, or selling lists of victims who responded to defendants’ mailings. Finally, the consent decree authorizes the U.S. Postal Inspection Service to return any victim money or personal checks sent to the defendants and detained by the Postal Inspection Service.

This matter was handled by Assistant U.S. Attorney James A. Weinkle of the U.S. Attorney’s Office for the Southern District of Florida and Trial Attorney Jacqueline Blaesi-Freed of the Civil Division’s Consumer Protection Branch, in connection with the United States Postal Inspection Service.

Court documents and information related to this case 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 federal court in Florida entered a consent decree of permanent injunction against two individuals and one corporation preventing them from operating an alleged mail-fraud scheme, the Department of Justice announced today. 

The permanent injunction signed by United States District Court Judge Jose E. Martinez of the Southern District of Florida arises from a complaint filed in February 2018. That complaint alleged that Art Masters LLC, which does business as Palm Beach Liquidation Gallery, and its principal Eugene Marotta, of Fort Lauderdale, Florida, and William Clutter, who does business as Edge Graphics, of North Las Vegas, Nevada, mailed fraudulent solicitations styled as personalized notifications that the recipient won a large package of cash and prizes worth more than $350,000, but needed to pay a fee of $161.25 to claim the package. 

According to the complaint, victims who sent the fee received no prize. Instead, defendants mailed them a list of publicly-advertised sweepstakes and an ink-jet printed reproduction of an artwork. The United States alleged that in the eighteen months the scheme operated, defendants mailed more than 150,000 fraudulent solicitations and victims lost more than one million dollars. 

“The Department of Justice will pursue those who defraud Americans through false promises and fraudulent schemes,” said Acting Assistant Attorney General Chad A. Readler for the Justice Department’s Civil Division. “Schemes like this often target the elderly and vulnerable, and shutting them down remains a top priority for the Department.”

“Individuals who prey upon the most vulnerable members of our society, including the elderly, will be held accountable,” said United States Attorney Benjamin G. Greenberg for the Southern District of Florida. “Fraud schemes will not be tolerated.  Our Office will continue to protect consumers through both civil and criminal prosecutions.  We remind everyone to be wary and exercise extreme caution when they receive a call or notification of an award offer that is just ‘too good to be true.’ Legitimate operators will not demand payment for prizes.”

"The Postal Inspection Service is dedicated to protecting our customers and their hard-earned money from fraudsters,” said Assistant Inspector in Charge Nicole Davis for the US Postal Inspection Service, Criminal Investigations Group. “We strongly urge people to do their research before responding to solicitations like the ones in this case and remember "if it looks too good to be true, it probably is.”

The consent decree permanently enjoins the defendants from mailing solicitations promising delivery of a prize, offering for sale information on sweepstakes or lotteries, or making other deceptive representations. Defendants are also precluded from creating, renting, or selling lists of victims who responded to defendants’ mailings. Finally, the consent decree authorizes the U.S. Postal Inspection Service to return any victim money or personal checks sent to the defendants and detained by the Postal Inspection Service.

This matter was handled by Trial Attorney Jacqueline Blaesi-Freed of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney James A. Weinkle of the U.S. Attorney’s Office for the Southern District of Florida, in connection with the United States Postal Inspection Service.

On May 14, 2018, Julio Arjona Gomez, 51, of Miami Gardens, was sentenced to 12 years in prison for operating a fraudulent credit card manufacturing facility in Hialeah. 

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida; Brian Swain, Special Agent in Charge, United States Secret Service (USSS); and Juan J. Perez, Director, Miami-Dade Police Department (MDPD), made the announcement.

United States District Judge Cecilia M. Altonaga sentenced Chavez to 144 months in prison, to be followed by 3 years of supervised release.  Arjona previously pled guilty to one count of conspiracy to commit access device fraud, in violation of Title 18, United States Code, Section 1029(b)(2); one count of producing, using, and trafficking in counterfeit access devices, in violation of Title 18, United States Code, Section 1029(a)(1); and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).

According to court documents, beginning in November 2016, through November 2017, Arjona operated a counterfeit credit card manufacturing facility in Hialeah, Florida. To facilitate the counterfeit credit card business, Arjona utilized an email account to traffic in thousands of stolen credit card account numbers and to receive orders for counterfeit credit cards.  He also received photographs, in order to produce counterfeit state identification cards.  Arojona received payments, in exchange for the counterfeit credit cards. Based on the fraud scheme, law enforcement agents obtained a search warrant for the facility.  During a search of the operational facility, on November 14, 2017, agents identified a room that was dedicated to manufacturing counterfeit credit cards. Law enforcement recovered thousands of counterfeit credit cards, over 50,000 blank credit card plastics, several credit card printers, a magnetic strip encoder, modified gasoline pump skimmer devices, computers, and electronic media storage devices or USB flash drives.

Arjona was held accountable at sentencing for $1,944,000 in intended losses.

Mr. Greenberg commended the investigative efforts of the USSS and MDPD in this matter.  This case was prosecuted by Assistant U.S. Attorney Jonathan D. Stratton.

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

Honduran national Sergio Neftali Mejia-Duarte was sentenced today to life in prison for his involvement in a large-scale international narcotics transportation organization.

U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida; Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; and Special Agent in Charge Adolphus P. Wright of the U.S. Drug Enforcement Administration (DEA), Miami Field Division, made the announcement.

On January 9, 2018, a Miami jury found Mejia-Duarte, 41, guilty of conspiring to distribute over five kilograms of cocaine with the knowledge that the cocaine would be unlawfully imported into the United States.  The evidence at trial, which included the testimony of multiple co-conspirators and pictures from a seizure of over 2,000 kilograms of cocaine, showed that defendant Mejia-Duarte led a large-scale international narcotics transportation organization based in Honduras and Guatemala that was part of a distribution chain spanning from Colombia to Mexico and the United States.  In that role, Mejia-Duarte and his workers secretly received multi-hundred kilogram quantities of cocaine from Colombia and Panama, temporarily stored the narcotics in Honduras or Guatemala, and then transported the narcotics onward, typically northward, including into Mexico. 

Mejia-Duarte used go-fast boats, helicopters, and airplanes to operate his shipping route and, as witnesses detailed at trial, much of the cocaine was supplied to the Sinaloa Cartel led by Joaquin Guzman Loera, also known as “Chapo,” and Ismael Zambada, also known as “Mayo.”  Based on the witnesses’ trial testimony and documents submitted in the case, Mejia-Duarte is responsible for trafficking at least an estimated 20,000 kilograms of cocaine.  In operating his criminal network, the witnesses described how Mejia-Duarte carried guns, employed bodyguards and assassins, and engaged in a bloody war with a rival trafficker.  During Mejia-Duarte’s arrest, Honduran law enforcement officers found a Glock pistol and an automatic rifle in the closet of the bedroom where he was residing.

“The life sentence imposed upon Mejia-Duarte ends the reign of a ruthless drug trafficker,” said U.S. Attorney Greenberg.  “Backed by the united front of our international allies, the U.S. Attorney’s Office for the Southern District of Florida will continue to strip the drug traffickers of their power and dismantle the trafficking organizations that cross our borders and infect our communities with illicit narcotics.”

“Until his arrest, Sergio Neftali Mejia-Duarte was a violent and prolific drug trafficker whose criminal organization supplied cocaine to the Sinaloa Cartel, knowing full well that the poison would make its way to our streets,” said Acting Assistant Attorney General Cronan.  “Today’s sentence reflects the unwavering commitment of the Department of Justice to prosecute those who fuel our drug crisis by sending illegal narcotics across our borders.  I especially thank our law enforcement partners in Honduras and Colombia for their assistance in bringing Mejia-Duarte to justice.”

“The DEA Miami Field Division is very pleased with the deserving sentence given to Mejia-Duarte today,” said DEA Special Agent in Charge Wright.  “This adjudication is evidence of the strong partnership with our international law enforcement partners who also sacrifice much to strike down and bring to justice all those who willingly engage in dangerous and criminal acts against the United States which threatens the welfare of its citizens.”

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

Assistant U.S. Attorneys Walter M. Norkin and Joseph Schuster of the Southern District of Florida and Assistant Deputy Chief Michael Lang of the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) prosecuted this case.

The governments of Honduras and Colombia, the Criminal Division’s Office of International Affairs and DEA Division Offices in Honduras and Colombia assisted in obtaining the conviction against Mejia-Duarte.

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.

Honduran national Sergio Neftali Mejia-Duarte was sentenced today to life in prison for his involvement in a large-scale international narcotics transportation organization.

Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida and Special Agent in Charge Adolphus P. Wright of the U.S. Drug Enforcement Administration (DEA), Miami Field Division, made the announcement.

On Jan. 9, a Miami jury found Mejia-Duarte, 41, guilty of conspiring to distribute over five kilograms of cocaine with the knowledge that the cocaine would be unlawfully imported into the United States.  The evidence at trial, which included the testimony of multiple co-conspirators and pictures from a seizure of over 2,000 kilograms of cocaine, showed that defendant Mejia-Duarte led a large-scale international narcotics transportation organization based in Honduras and Guatemala that was part of a distribution chain spanning from Colombia to Mexico and the United States.  In that role, Mejia-Duarte and his workers secretly received multi-hundred kilogram quantities of cocaine from Colombia and Panama, temporarily stored the narcotics in Honduras or Guatemala, and then transported the narcotics onward, typically northward, including into Mexico. 

Mejia-Duarte used go-fast boats, helicopters, and airplanes to operate his shipping route and, as witnesses detailed at trial, much of the cocaine was supplied to the Sinaloa Cartel led by Joaquin Guzman Loera, also known as “Chapo,” and Ismael Zambada, also known as “Mayo.”  Based on the witnesses’ trial testimony and documents submitted in the case, Mejia-Duarte is responsible for trafficking at least an estimated 20,000 kilograms of cocaine.  In operating his criminal network, the witnesses described how Mejia-Duarte carried guns, employed bodyguards and assassins, and engaged in a bloody war with a rival trafficker.  During Mejia-Duarte’s arrest, Honduran law enforcement officers found a Glock pistol and an automatic rifle in the closet of the bedroom where he was residing.

“Until his arrest, Sergio Neftali Mejia-Duarte was a violent and prolific drug trafficker whose criminal organization supplied cocaine to the Sinaloa Cartel, knowing full well that the poison would make its way to our streets,” said Acting Assistant Attorney General Cronan.  “Today’s sentence reflects the unwavering commitment of the Department of Justice to prosecute those who fuel our drug crisis by sending illegal narcotics across our borders.  I especially thank our law enforcement partners in Honduras and Colombia for their assistance in bringing Mejia-Duarte to justice.”

“The life sentence imposed upon Mejia-Duarte ends the reign of a ruthless drug trafficker,” said U.S. Attorney Greenberg.  “Backed by the united front of our international allies, the U.S. Attorney’s Office for the Southern District of Florida will continue to strip the drug traffickers of their power and dismantle the trafficking organizations that cross our borders and infect our communities with illicit narcotics.”

“The DEA Miami Field Division is very pleased with the deserving sentence given to Mejia-Duarte today,” said DEA Special Agent in Charge Wright.  “This adjudication is evidence of the strong partnership with our international law enforcement partners who also sacrifice much to strike down and bring to justice all those who willingly engage in dangerous and criminal acts against the United States which threatens the welfare of its citizens.”

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

Assistant Deputy Chief Michael Lang of the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) and Assistant U.S. Attorneys Walter M. Norkin and Joseph Schuster of the Southern District of Florida are prosecuting the case.

The governments of Honduras and Colombia, the Criminal Division’s Office of International Affairs and DEA Division Offices in Honduras and Colombia assisted in obtaining the conviction against Mejia-Duarte.

Health and Palliative Services of the Treasure Coast, Inc., The Hospice of Martin and St. Lucie, Inc., and Hospice of the Treasure Coast, Inc. have paid $2.5 million to settle allegations that they violated the False Claims Act by submitting false claims to Medicare for hospice patients.

“When individuals file false claims, they defraud Medicare’s hospice benefit program and divert taxpayer monies away from vital services,”  stated U.S. Attorney for the Southern District of Florida Benjamin G. Greenberg.  “The U.S. Attorney’s Office will continue to aggressively pursue all health care providers who violate statutory and regulatory provisions that are designed to protect the citizens who depend upon the legitimate care provided by government-sponsored healthcare programs.”

“Those who would exploit Medicare’s hospice benefit to boost their profits in lieu of patient care expropriate precious tax dollars intended for terminal patients in a time of great need,” said Special Agent in Charge Shimon R. Richmond of the U.S. Health and Human Services, Office of the Inspector General (HHS-OIG). “Our Special Agents will relentlessly pursue health care professionals who threaten the integrity of Federal health care programs."

According to the record, Health and Palliative Services of the Treasure Coast, Inc., The Hospice of Martin and St. Lucie, Inc., and Hospice of the Treasure Coast, Inc. (“the defendants”) are providers of hospice services, in that they, among other things, operate and maintain hospice care facilities and provide home hospice care and hospice services in assisted living facilities and skilled nursing homes throughout the "Treasure Coast” of Florida (an area located on the state's Atlantic coast, comprised of Indian River, St. Lucie, and Martin Counties).  The settlement, recently made public, resolved allegations that between 2005 and 2011, the defendants knowingly submitted or caused to be submitted false claims to Medicare, for services to hospice patients who were not eligible for all or part of their hospice care under Medicare requirements. Medicare’s hospice benefit is available for patients who elect palliative treatment (medical care focused on the patient’s relief from pain and stress) for a terminal illness and have a life expectancy of six months or less if their disease runs its normal course.  Patients who elect the hospice benefit forgo the right to curative care (medical care focused on treating the patient’s illness). 

The allegations settled in this case arose from a lawsuit filed by whistleblowers, John Simons, M.D. and Lewis Cook, M.D., under the qui tam provisions of the False Claims Act.  Under the False Claims Act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The whistle blowers in this matter were medical doctors formerly employed by the defendants.  The doctors alleged that the defendants’ hospice centers were submitting false claims to the United States in relation to hospice care for Medicare patients. The whistle blowers’ complaint alleged that the defendants billed for patients who were not terminally ill and thus did not qualify for the hospice benefit. The doctors received $476,373.73 from the announced recovery.

This case is captioned United States ex rel. John Simons and Lewis Cook v. Health and Palliative Services of the Treasure Coast, Inc., 11-14328-Martinez (S.D. Fla.).  This matter was handled by Southern District of Florida Assistant U.S. Attorney Mark Lavine and HHS-OIG.

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

The former National Director of Anti-Corruption in Colombia and an attorney from Colombia were extradited yesterday to the United States to face wire fraud and money laundering charges related to the promotion of foreign bribery.

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida and Adolphus P. Wright, Special Agent in Charge, United States Drug Enforcement Administration (DEA), Miami Field Division, made the announcement.

Luis Gustavo Moreno Rivera, 36, the former National Director of Anti-Corruption in Colombia and Leonardo Pinilla Gomez, 31, an attorney practicing in Colombia, were charged by superseding indictment on August 3, 2017 in the Southern District of Florida. The superseding indictment charges the defendants with one count of conspiracy to commit wire fraud, two counts of wire fraud, one count of conspiracy to launder money in order to promote foreign bribery, and two counts of substantive money laundering. Both Rivera and Pinilla were arrested in Colombia pursuant to an Interpol Red Notice.  Pinilla was arraigned this afternoon before U.S. Magistrate Judge Alicia M. Otazo-Reyes in Miami.  Moreno is scheduled to be arraigned in Miami on May 30, 2018, before a U.S. Magistrate Judge.

According to the criminal complaint, previously filed in the case, and the superseding indictment, beginning in November 2016, a cooperating source of information (CS) was approached by Moreno and Pinilla who attempted to entice a bribe from the CS.  Specifically, in exchange for 100 million Colombian pesos, Moreno and Pinilla offered to give the CS copies of sworn statements taken from cooperators who had testified against the CS.  In June 2017, Moreno and Pinilla traveled to Miami, Florida and met with the CS who, under the direction of the DEA, provided Moreno and Pinilla with a $10,000 deposit of the bribe money.  Recorded conversations revealed that Moreno and Pinilla discussed Moreno’s ability to control the investigation into the CS and that Moreno could inundate his prosecutors with work so that they would be unable to focus on the CS’s investigation.  In exchange, Moreno and Pinilla were asking for a 400 million Colombian peso payment with an additional $30,000 to be paid prior to Moreno leaving the United States.

The criminal complaint further alleges that several of the $100 bills from the $10,000 paid to Moreno and Pinilla were found on Moreno and his family as they boarded their flight back to Bogota from Miami.

An indictment and a criminal complaint merely contain allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The defendants face a maximum of 20 years in prison, per count of conviction.

Mr. Greenberg commends the DEA for their investigative assistance with this case. Mr. Greenberg also thanked the Criminal Division’s Office of International Affairs and Office of Judicial Attaché in Colombia along with the DEA Bogota Country Office; the Internal Revenue Service, Criminal Investigations (IRS-CI), Miami Field Office and Attaché Office in Colombia; U.S. Immigration and Customs Enforcement’s, Homeland Security Investigations (ICE-HSI), Miami Field Office and Attaché Office in Colombia; U.S. Customs and Border Protection, Miami Office of Field Operations; and Federal Bureau of Investigation (FBI), Legal Attaché Office in Colombia, for their assistance in this matter. Assistant U.S. Attorneys Juan Antonio Gonzalez and Lynn M. Kirkpatrick of the International Narcotics and Money Laundering Section in the Southern District of Florida are prosecuting this case.

The U.S. Attorney’s Office and our federal partners commend the Attorney General of Colombia and the Cuerpo Tecnico de Investigacion (CTI) for their cooperative efforts in this investigation.

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 bookkeeper was sentenced today to 3 years in prison and ordered to repay over $3 million, for failing to report to the Internal Revenue Service (“IRS”) money she embezzled from her employers.

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.

Lauren Ransom, 49, of Deerfield Beach, was sentenced to 36 months in prison, to be followed by 1 year of supervised release by U.S. District Judge Federico Moreno, in Fort Lauderdale.  Ransom was also ordered to pay $2,245,402.13 in restitution to her former employers and $790,983 to the IRS.  Ransom previously pled guilty to three counts of making and subscribing a false tax return, in violation of Title 26, United States Code, Section 7206(1). 

According to stipulated facts filed with the court and information provided at the sentencing hearing, for over thirty-three years, the defendant worked as a bookkeeper at two South Florida insurance companies.  Ransom embezzled money from one of the company’s business accounts where she used her signatory authority on the accounts and wrote unauthorized company checks payable to “Cash” and “Lauren Ransom.”  She then cashed these checks or deposited them into her personal checking account.  Ransom used the money to pay for her credit cards, mortgage and auto loans, insurance, and other personal living expenses.  She also gambled and lost approximately $1,410,276.95 from December 1, 2008 to January 31, 2014 by playing slot machines. 

Ransom concealed the embezzlement by altering numerous copies of these cancelled checks by “whiting out” and then changing the payee sections to create so-called legitimate business expenses for the insurance companies.  The defendant created false hand-written entries in the companies’ cash disbursement journals, in order to further conceal the fraud.

In the stipulated facts filed with the court, Ransom admitted she filed false individual tax returns, Forms 1040, for tax years 2011, 2012, and 2013 because she knowingly failed to report to the IRS the money she had unlawfully obtained through her embezzlement scheme. The false statements resulted in tax losses. 

Mr. Greenberg commended the investigative efforts of IRS-CI.  This case was prosecuted by Assistant United States Attorney Randy Katz.

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

Robert Charles Brady, 36, of Fort Lauderdale, was sentenced yesterday to 84 months in prison by United States District Court Judge Donald M. Middlebrooks, after having previously pled guilty to wire fraud, filing false records in a federal investigation and operating an aircraft without an airman’s certificate.

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida and Marlies Gonzalez, Special Agent in Charge of the Department of Transportation Office of the Inspector General (USDOT OIG), Sunrise Field Office, made the announcement.

“Those who fail to comply with air safety certifications and regulations place the public at risk,” stated United States Attorney Benjamin Greenberg.  “The U.S. Attorney’s Office and our federal partners will continue to work together to prosecute individuals who falsify qualifications, operate without authority and jeopardize our transportation safety.”

“The sentence handed down today against Robert Charles Brady for violations related to operating an aircraft without an airman's certificate, wire fraud, and falsification of records in a Federal investigation, demonstrates that ensuring the safety of the Nation’s air transportation system remains a high priority for both the Office of Inspector General and the Department of Transportation,” said Marlies Gonzalez, USDOT OIG Regional Special Agent-in-Charge. “Working with the Federal Aviation Administration and our prosecutorial partners, we will continue to prevent and detect violations of Federal laws and regulations designed to ensure public safety.”

According to the court record, Brady owned Beach Aviation and managed a flight school in Pompano and Boca Raton, Florida.  Through Beach Aviation, Brady and his employees operated an illegal charter air carrier service.  They chartered flights to and from Bahamas and other destinations in the United States, without proper certification from the Federal Aviation Administration (FAA).  Through Beach Aviation, Brady also falsely claimed to be a certified flight instructor on student pilot trainees logbooks.  Students and the FAA relied upon this falsified information in order to verify flight hours for FAA pilot certifications and ratings.  Additionally, Brady falsified records that were presented to the FAA in order to seek a second-in-command rating on a Convair jet, which would allow him to fly as a copilot in a Convair on international flights.        

Greenberg commended the investigative efforts of the USDOT OIG and FAA.  This case was prosecuted by Assistant U.S. Attorney Scott Behnke.

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

Gregory Hubbard, a/k/a, Jibreel, 54, of West Palm Beach, Florida; Dayne Antani Christian, a/k/a, Shakur, 33, of Lake Park, Florida; and Darren Arness Jackson, a/k/a, Daoud, 53, of West Palm Beach, were sentenced to prison today for conspiring to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.

U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, Assistant Attorney General for National Security John C. Demers, Special Agent in Charge Robert F. Lasky of the FBI’s Miami Field Office, and members of the South Florida Joint Terrorism Task Force (JTTF), made the announcement after sentencing by U.S. District Judge Robin L. Rosenberg.

“Individuals seeking to travel to take up arms with ISIS pose a threat to the security of all nations,” said U.S. Attorney Benjamin G. Greenberg.  “As demonstrated today, this threat will be met with swift and certain justice.  The U.S. Attorney’s Office, the FBI, and the Joint Terrorism Task Force continue to work proactively in order to stifle and disrupt any potential danger posed by terrorist organizations and their supporters.”

“Gregory Hubbard and his co-conspirators are a great example why the FBI’s number one priority is counterterrorism,” said Robert F. Lasky, Special Agent in Charge, FBI Miami.  "This is not a scenario where law enforcement can afford to wait and see what happens next.  The FBI and our Joint Terrorism Task Force, along with many law enforcement partners, diligently investigated and disrupted this threat."

According to the court docket, including the factual basis for the guilty pleas, Hubbard was arrested on July 21, 2016, at Miami International Airport where he had been driven by co-defendant Jackson for a scheduled flight to Berlin, Germany.  From Berlin, Hubbard intended to travel to Syria to join ISIS. 

At various times during the conspiracy, which ran from approximately July 2015 until Hubbard’s arrest, Hubbard and his co-defendants, Christian and Jackson, talked about their support for ISIS and jihad, including acts of terrorism committed by and attributed to ISIS and its supporters. During the conspiracy, Hubbard and his co-defendants and others, practiced shooting weapons multiple times in preparation for Hubbard traveling to Syria to join ISIS.

Hubbard received a joint recommended sentenced of 12 years in prison, to be followed by a lifetime of supervised release.

Christian and Jackson who both pleaded guilty in 2017 and provided significant cooperation to the government, received sentences of eight years in prison and four years in prison, respectively.  Both were also sentenced to five years of supervised release.

The FBI and JTTF investigated the case with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives; Transportation Security Administration; Miami International Airport Police Department; Boca Raton, Florida, Police Department; Palm Beach Sheriff’s Office; City of West Palm Beach Police Department; and Florida Fish and Wildlife Conservation Commission. 

This case was prosecuted by Assistant U.S. Attorneys Karen E. Gilbert and Edward C. Nucci of the Southern District of Florida, and Trial Attorney Larry Schneider of the National Security Division’s Counterterrorism Section.

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

 

Gregory Hubbard, aka, Jibreel, 54, of West Palm Beach, Florida; Dayne Antani Christian, aka, Shakur, 33, of Lake Park, Florida; and Darren Arness Jackson, aka, Daoud, 53, of West Palm Beach, were sentenced to prison today for conspiring to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.

Assistant Attorney General for National Security John C. Demers, U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, Special Agent in Charge Robert F. Lasky of the FBI’s Miami Field Office, and members of the South Florida Joint Terrorism Task Force (JTTF), made the announcement after sentencing by U.S. District Judge Robin L. Rosenberg.

According to the court docket, including the factual basis for the guilty pleas, Hubbard was arrested on July 21, 2016, at Miami International Airport where he had been driven by co-defendant Jackson for a scheduled flight to Berlin, Germany.  From Berlin, Hubbard intended to travel to Syria to join ISIS. 

At various times during the conspiracy, which ran from approximately July 2015 until Hubbard’s arrest, Hubbard and his co-defendants, Christian and Jackson, talked about their support for ISIS and jihad, including acts of terrorism committed by and attributed to ISIS and its supporters. During the conspiracy, Hubbard and his co-defendants and others, practiced shooting weapons multiple times in preparation for Hubbard traveling to Syria to join ISIS.

Hubbard received a joint recommended sentenced of 12 years in prison, to be followed by a lifetime of supervised release.

Christian and Jackson who both pleaded guilty in 2017 and provided significant cooperation to the government, received sentences of eight years in prison and four years in prison, respectively.  Both were also sentenced to five years of supervised release.

The FBI and JTTF investigated the case with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives; Transportation Security Administration; Miami International Airport Police Department; Boca Raton, Florida, Police Department; Palm Beach Sheriff’s Office; City of West Palm Beach Police Department; and Florida Fish and Wildlife Conservation Commission. 

This case was prosecuted by Assistant U.S. Attorneys Karen E. Gilbert and Edward C. Nucci of the Southern District of Florida, and Trial Attorney Larry Schneider of the National Security Division’s Counterterrorism Section.

Dustin Allen Hughes, 26, of Cutler Bay, Florida, has been arrested and charged with making a bomb threat to a South Florida mosque. 

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida and Robert F. Lasky, Special Agent in Charge and Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.

Hughes was charged by criminal complaint with willfully making a bomb threat by telephone, in violation of Title 18, United States Code, Section 844(e).   If convicted of the charged offense, Hughes faces a statutory maximum of 10 years in prison.  Hughes made an initial appearance today before Magistrate Judge Alicia O. Valle and will remain in custody pending the outcome of a pre-trial detention hearing scheduled for May 22, 2018, at 11:00 a.m., before a U.S. Magistrate Judge in Ft. Lauderdale.

According to the criminal complaint, on May 5, 2018, at approximately 4:06 p.m., Hughes called the emergency contact number for the Jamaet Ul Muttaqueen Mosque of Pembroke Pines, Florida, and left a voice mail.  In the voice mail message, Hughes stated, amongst other things: “I planted a bomb in your temple, I’m gonna blow your fucking temple up you fucking Muslim.. Where you guys have your sanctuary and worship Allah, I’m gonna blow that mother fucker up.  I have a detonator [that Hughes stated he was going to activate]…[Y]ou guys are all gonna be up in flames after I’m done with you!” Within days of this call, three additional messages containing similar bomb threats were left by Hughes on the answering system for the Mosque’s non-emergency telephone number.

After retrieving the threating voice message, an official of the Mosque immediately contacted Pembroke Pines Police Department (PPPD), which subsequently responded to the Mosque and conducted an exterior and interior sweep for explosives. No presence of explosives were uncovered by the PPPD at or in vicinity of the Mosque.

On May 15, 2018, agents arrested Hughes at his residence in Miami-Dade County.  During a post-arrest interview at the FBI’s field office in Miramar, Florida, agents played the May 5th voice mail message for Hughes.  Hughes admitted placing that call and others to the Mosque that also were threatening in nature.  Hughes also indicated that he had left the messages because he had wanted to make members of the Mosque scared and upset.

A criminal complaint merely contains allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Mr. Greenberg commended the outstanding investigative efforts of the FBI and members of the FBI Miami Area Corruption Task Force.  He also thanked the Pembroke Pines Police Department, the Miami-Dade Police Department, and the City of Miami Police Department for their assistance.  This case is being prosecuted by Assistant U.S. Attorney Michael Davis.

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

Today, Manuel Antonio Severino, a West Palm Beach tax preparer, was sentenced to over 5 years in prison and ordered to pay $524,556 in restitution, after having been convicted at trial of filing false tax returns with the IRS.

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.

Severino, 44, of West Palm Beach, was sentenced to 65 months in prison, 3 years of supervised release (to include 6 months of home confinement), and ordered to pay $524,556 in restitution, by Senior U.S. District Judge Paul C. Huck.  Additionally, while on supervised release the defendant is ordered to complete community service - 1,000 hours a year if unemployed and 300 hours a year if employed.  On February 23, 2018, a jury found Severino guilty of thirteen counts of aiding and assisting in the preparation of false tax returns, in violation of Title 26, United States Code, Section 7206(2); two counts of wire fraud, in violation of Title 18, United States Code, Section 1343; and two counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).

According to the evidence presented at trial, Severino operated a purported tax preparation business from his home in West Palm Beach. He unjustly enriched himself and others by submitting individual tax returns to the IRS on behalf of other individuals claiming false and fraudulent credits and deductions. Severino falsely reported that the taxpayers were entitled to receive a tax credit under the American Opportunity Credit, when the defendant knew that the taxpayers did not have qualified education expenses and were not entitled to receive this credit. Without his clients’ knowledge or consent, Severino diverted portions of his clients’ tax refunds to bank accounts that he controlled.  Over the three years that Severino engaged in this fraudulent tax return business, he sought over $1.6 million in refunds from the IRS on behalf of himself and his clients, and diverted tens of thousands of dollars of IRS tax refunds into his own bank accounts. 

Mr. Greenberg commended the investigative efforts of IRS-CI. This case was prosecuted by Assistant U.S. Attorneys Daniel J. Marcet and Lisa H. Miller.

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

Two treatment center owners were sentenced to prison for their participation in a multi-million dollar health care fraud and money laundering scheme that involved the filing of fraudulent insurance claim forms and defrauded health care benefit programs.

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida; Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI); Jimmy Patronis, Florida Chief Financial Officer; Michael J. Waters, Special Agent in Charge, Amtrak Office of Inspector General (Amtrak-OIG); Isabel Colon, Regional Director, United States Department of Labor, Employee Benefits Security Administration (DOL-EBSA); and Dennis Russo, Director of Operations, National Insurance Crime Bureau (NICB), made the announcement.

Tovah Lynn Jasperson, a/k/a Tara, 48, of Wellington, was sentenced to 78 months in prison, to be followed by 3 years of supervised release. Alan Martin Bostom, 75, of Wellington, was sentenced to 30 months in prison, to be followed by 3 years of supervised release.  Both were also ordered to pay restitution of $4,045,364.98.  Jasperson previously pled guilty to one count of conspiracy to commit health care fraud, in violation of Title 18, United States Code, Section 1347; all in violation of Title 18, United States Code, Section 1349. Bostom previously pled guilty to one count of making false statements related to a health care matter, in violation of Title 18, United States Code, Section 1035(a)(1).

According to court documents, Jasperson and Bostom were the owners of Angel’s Recovery, a business with multiple locations in Palm Beach County that purportedly operated as a licensed substance abuse service provider (or treatment center) offering clinical treatment services for persons suffering from alcohol and drug addiction. Angel’s Recovery also offered medication-based treatment for opioid addiction.

At different times, the defendants managed all aspects of Angel’s Recovery, including hiring and firing personnel, admitting and discharging patients, and making financial decisions. To secure a steady stream of patients, the defendants established illegal kickback/bribe relationships with owners of sober homes, in exchange for referring the sober homes’ insured residents to Angel’s Recovery for treatment.  Sober homes were purportedly in the business of providing safe and drug-free residences for individuals suffering from drug and alcohol addiction. The defendants provided the money used to purchase or rent several properties used as “sober homes,” although the purchase agreements or leases would bear the names of third parties.

The defendants and co-conspirators provided kickbacks and bribes, in the form of free or reduced rent, insurance premium payments, and other benefits to individuals with insurance who agreed to reside at the sober homes and attend drug treatment, which included regular and random drug testing (typically three or more times per week), so that members of the conspiracy could bill the testing and treatment to the residents’ insurance plans. To disguise kickbacks and bribes to patients, the defendants used a separate entity to pay insurance premiums for patients of Angel’s Recovery so that Angel’s Recovery could continue to bill the patients’ insurance companies for treatment expenses.       

Jasperson and Bostom hired a doctor to serve as the medical director of Angel’s Recovery who frequently pre-signed prescriptions that were used to dispense controlled substances to patients of Angel’s Recovery by other employees.  After the doctor’s medical license was suspended, the defendants continued to employ him and failed to inform the Florida Department of Children and Families because it could not continue to operate as a licensed facility without a licensed medical director.

The defendants and co-conspirators caused the submission of insurance claims that: falsely stated the testing and treatment were medically necessary, failed to disclose that patients were referred to Angel’s Recovery in exchange for kickbacks and bribes, failed to disclose that patients were not asked to pay kickbacks and deductibles, failed to disclose that the defendants paid some patients’ insurance premiums, and failed to disclose that the prescribing physician’s license was suspended. 

Mr. Greenberg commended the investigative efforts of the Greater Palm Beach Health Care Fraud Task Force. Agencies of the task force include the FBI, IRS-CI, the Florida Division of Investigative and Forensic Services, Amtrak-OIG, DOL-EBSA, and NICB.  This matter and related cases are being prosecuted by Assistant United States Attorneys A. Marie Villafaña and 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 on http://pacer.flsd.uscourts.gov.

A Port St. Lucie resident pled guilty today to unlawfully exporting firearms, firearm accessories, and ammunition from South Florida to Rio de Janeiro, Brazil.

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI); Diane J. Sabatino, Director, Field Operation, U.S. Customs and Border Protection (CBP), Miami Field Office; Peter J. Forcelli, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division; and Ken J. Mascara, Sheriff, St. Lucie County Sherriff’s Office, made the announcement. 

Frederik Barbieri, 46, of Port St. Lucie, Florida, pled guilty to one count of conspiracy to commit offenses against the United States, in violation of Title 18, United States Code, Section 371, and one count of unlicensed exportation of defense articles, in violation of Title 22, United States Code, Section 2778.  Barbieri faces a possible maximum statutory sentence of 25 years in prison.  Barbieri is scheduled to be sentenced on July 19, 2018, at 9:30 a.m., by United States District Court Judge Federico A Moreno.

According to stipulated facts filed in court, from May of 2013 through February of 2018, Barbieri conspired with others to: possess firearms with obliterated serial numbers; deliver packages containing those firearms to contract carriers for international shipment without providing notice that the packages contained firearms; and smuggle firearms, firearm accessories, and ammunition from the United States to Rio de Janeiro, Brazil.

During this period, a shipment sent by Barbieri was intercepted in Rio de Janeiro by Brazilian law enforcement and found to contain approximately thirty AR-15 and AK-47 rifles and firearm magazines, all concealed in four 38-gallon Rheem water heaters. The water heaters were hollowed out and loaded with the contraband, and the serial numbers on each of the firearms had been obliterated. The same day that Brazilian authorities intercepted his shipment, Barbieri called and requested that the freight forwarder destroy the related paperwork.

Documentation provided by the freight forwarder revealed Barbieri’s historical shipments. In addition to shipping the four Rheem water heaters in which he concealed approximately thirty rifles, Barbieri also shipped to Brazil an additional 120 Rheem water heaters, as well as 520 electric motors and 15 air conditioning units, from May of 2013 to May of 2017, using that freight forwarder. These items are all consistent with objects used to conceal the illegal international shipment of firearms and ammunition.

In February 2018, federal agents executed a warrant to search a storage unit rented by Barbieri in Vero Beach, Florida.  In the storage unit, law enforcement discovered 52 rifles, 49 of which were wrapped for shipment with obliterated serial numbers.  In addition, law enforcement discovered dozens of high capacity firearm magazines, over 2,000 rounds of ammunition, and packaging materials.  Barbieri was arrested the following day.

It is illegal for civilians to possess firearms in Brazil. According to Brazilian law enforcement, AK and AR rifles have a black market value of approximately $15,000 to $20,000 in the black market. The retail cost of those firearms in the United States is approximately $700 to $1,000.

Neither Barbeiri, nor any of his coconspirators, obtained a license or written approval from the United States Department of State to export any defense articles. Non-automatic firearms, firearm accessories, and ammunition are articles designated as “defense articles,” pursuant to federal regulations.

Mr. Greenberg commended the investigative efforts of ICE-HSI, ATF, and CBP in connection with this matter.  This case is being prosecuted by Assistant U.S. Attorney Brian J. Shack. 

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 Boca Raton resident, who purported to operate a tax preparation business in Pompano Beach, pled guilty to wire fraud and aggravated identity theft in connection with a multi-million dollar stolen identity tax refund fraud scheme. 

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service (IRS-CI), made the announcement. 

Wilson Lasset, 48, formerly of Boca Raton, Florida, pled guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.  Lasset faces a possible maximum statutory sentence of 20 years in prison on the wire fraud charge, followed by a mandatory sentence of two years in prison on the aggravated identity theft charge.  Lasset is scheduled to be sentenced on July 19, 2018, by United States District Court Judge Kathleen M. Williams.

According to stipulated facts filed in court, Lasset applied to the IRS for identification numbers, enabling him and the business he incorporated, Triangle International Training Center, to prepare and electronically file tax returns on behalf of other people.  The business operated out of two addresses in Pompano Beach, Florida.  In 2012, using these identification numbers, the defendant filed approximately 1,606 tax returns with the IRS.  These tax returns included at least 25 returns filed using the names and social security numbers of individuals living with cerebral palsy who did not need to file tax returns and who did not authorize Lasset to file tax returns on their behalf.  The unauthorized filings also included returns using the identities of approximately 386 incarcerated individuals.  These returns, as well as the filings using the identities of the individuals with cerebral palsy, included falsely claimed earned income tax credits, based on false claims of earning income as “household help” employees, and falsely claimed education credits designed to reimburse college and other higher education expenses. 

In total, Lasset’s identification numbers were used to claim more than $2.7 million in fraudulent tax refunds.  The IRS paid approximately $788,611 in refunds based on these fraudulent tax returns.  Approximately $51,000 was deducted directly from these refunds as preparer’s fees that were deposited into a bank account Lasset opened and controlled for Triangle International Training Center.  Lasset used the money deposited into this account to fund his travel and other personal expenses.

Mr. Greenberg commended the investigative efforts of IRS-CI in connection with the investigation of this matter.  The case is being prosecuted by Assistant U.S. Attorney Jared M. Strauss. 

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 Colombian citizen was extradited yesterday from Colombia to the United States to face a four-count federal indictment in the Southern District of Florida for his role in a scheme to smuggle illegal aliens from Colombia into the United States.

 

Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida, and Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office made the announcement.

 

Fredis Valencia Palacios, 29, is charged along with three others in a Jan. 6 indictment with one count of conspiracy to encourage and induce aliens to come to the Unites States as well as three counts of encouraging and inducing aliens to come to the United States. Palacios had his initial court appearance earlier today and has a detention hearing on May 15 at 10 a.m. ET before U.S. Magistrate Judge Alicia M. Otazo-Reyes. Colombian nationals Carlos Emilio Ibarguen Palacios, 26, and Jhoan Stiven Carreazo Asprilla, 23, were previously extradited to the Southern District of Florida on Nov. 8, 2017 and Jan. 18., respectively.  According to allegations in the indictment, from as early as November 2014, Valencia Palacios and other co-conspirators organized and arranged the unlawful smuggling of illegal aliens to the United States.  The indictment alleges that in at least one instance, the defendant’s conduct resulted in the death of two individuals.

 

This case is scheduled for trial before U.S. District Judge Jose E. Martinez in Miami on Aug. 6.

 

The charges and allegations in the indictment are merely accusations.  A defendant is presumed innocent until proven guilty in a court of law.

 

This case is being investigated by HSI Miami, with assistance from the HSI Bogota field office.  The Government of Colombia, including the Colombian Office of the Attorney General, provided significant assistance and support during the investigation.  The Criminal Division’s Office of International Affairs provided significant support with the defendant’s extradition.  The investigation is being conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI.  The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns.  ECT has dedicated investigative, intelligence and prosecutorial resources.  ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities. 

 

This case is being prosecuted by Trial Attorney Danielle Hickman of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Brian Dobbins of the Southern District of Florida.

A Colombian citizen was extradited yesterday from Colombia to the United States to face a four-count federal indictment in the Southern District of Florida for his role in a scheme to smuggle illegal aliens from Colombia into the United States.

U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, and Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Miami Field Office made the announcement.

Fredis Valencia Palacios, 29, is charged along with three others in a Jan. 6 indictment with one count of conspiracy to encourage and induce aliens to come to the Unites States as well as three counts of encouraging and inducing aliens to come to the United States. Palacios had his initial court appearance earlier today and has a detention hearing on May 15 at 10 a.m. ET before U.S. Magistrate Judge Alicia M. Otazo-Reyes. Colombian nationals Carlos Emilio Ibarguen Palacios, 26, and Jhoan Stiven Carreazo Asprilla, 23, were previously extradited to the Southern District of Florida on Nov. 8, 2017 and Jan. 18., respectively.  According to allegations in the indictment, from as early as November 2014, Valencia Palacios and other co-conspirators organized and arranged the unlawful smuggling of illegal aliens to the United States.  The indictment alleges that in at least one instance, the defendant’s conduct resulted in the death of two individuals.

This case is scheduled for trial before U.S. District Judge Jose E. Martinez in Miami on Aug. 6.

The charges and allegations in the indictment are merely accusations.  A defendant is presumed innocent until proven guilty in a court of law.

This case is being investigated by ICE-HSI Miami, with assistance from the HSI Bogota field office.  The Government of Colombia, including the Colombian Office of the Attorney General, provided significant assistance and support during the investigation.  The Criminal Division’s Office of International Affairs provided significant support with the defendant’s extradition.  The investigation is being conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI.  The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns.  ECT has dedicated investigative, intelligence and prosecutorial resources.  ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities. 

This case is being prosecuted by Assistant U.S. Attorney Brian Dobbins of the Southern District of Florida and Trial Attorney Danielle Hickman of the Criminal Division’s Human Rights and Special Prosecutions Section.

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

FBI Releases 2017 Statistics on of Law Enforcement Officers Killed and Assaulted

Attorney General Jeff Sessions and U.S. Attorney for the District of Florida Benjamin G. Greenberg recognized the service and sacrifice of federal, state, local, and tribal police officers on the occasion of National Police Week, and commented on the FBI's 2017 Law Enforcement Officers Killed and Assaulted report.

“One officer death is too many,” Attorney General Sessions said.  “While we are inexpressibly grateful to have had a decrease in the number of officers killed in the line-of-duty last year, the number is still far too high.  At the Department of Justice, we honor the memories of the fallen and we pray for their families.  We are also following President Trump's Executive Orders to back the women and men in blue, to enhance law enforcement safety, and to reduce violent crime in America. Those priorities will help keep every American safe, including those who risk their lives for us.  As always, we have their backs and they have our thanks.”

“Every day, the brave men and women of law enforcement proudly put on their badges to protect our rights, liberties and safety,” stated U.S. Attorney Benjamin G. Greenberg.  “Tragically, many of these unsung heroes have made the ultimate sacrifice or sustained serious injuries, while carrying out their call of duty.  During National Police Week and throughout the year, the U.S. Attorney’s Office gives thanks to these valiant officers, and their families, for their dedicated service to our South Florida communities.”

In October 1962, Congress passed and President Kennedy signed a joint resolution declaring May 15th as National Peace Officers Memorial Day to honor law enforcement officers killed or disabled in the line of duty.  The resolution also created National Police Week as an annual tribute to law enforcement service and sacrifice.  

During Police Week, which is observed from Sunday, May 13 to Saturday, May 19, 2018, our nation celebrates the contributions of police officers from around the country, recognizing their hard work, dedication, loyalty and commitment in keeping our communities safe.

According to statistics collected by the FBI, 93 law enforcement officers were killed in line-of-duty incidents in 2017 – a 21 percent decrease from 2016 when 118 law enforcement officers were killed in line-of-duty incidents.

Additionally, in 2017 there were 46 law enforcement officers killed in line-of-duty incidents as a result of felonious acts – this is a 30 percent decrease from 2016, when 66 law enforcement officer were killed in line-of-duty incidents as a result of felonious acts.

For the full comprehensive data tables about these incidents and brief narratives describing the fatal attacks and selected assaults resulting in injury, please see the 2017 edition of Law Enforcement Officers Killed and Assaulted report, released today.

The names of all 93 fallen officers nationwide will be formally dedicated on the National Law Enforcement Officers Memorial in Washington, DC, during the 30th Annual Candlelight Vigil on the evening of May 13, 2018.  The Candlelight Vigil is one of many commemorative events taking place in the nation’s capital during National Police Week 2018. So that people across the country can experience this unique and powerful ceremony, the Candlelight vigil will be livestreamed  beginning at 8:00 p.m. EDT on May 13th. To register for this free online event, visit www.LawMemorial.org/webcast.

For more information about other National Police Week events, please visit www.policeweek.org.

To access the FBI's 2017 Law Enforcement Officers Killed and Assaulted report, please visit www.fbi.gov.

 

Brigith Dayana Gomez, 29, of Venezuela, was sentenced today to 20 months and 15 days in prison, to be followed by 3 years of supervised release, for her participation in an extortion plot. Additionally, United States District Judge Joan A. Lenard ordered Gomez to pay at least $841.20 in restitution, and prohibited her from using social media and email during her sentence and the term of supervision.

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement. 

On February 14, 2018, following a two and a half week Miami jury trial, Gomez was convicted on all counts of the charged indictment, specifically: one count of conspiracy to transmit an interstate extortionate communication, in violation of Title 18, United States Code, Section 371; three counts of interstate transmission of an extortionate communication, in violation of Title 18, United States Code, Section 875(d); and one count of interstate travel in aid of racketeering, in violation of Title 18, United States Code, Section 1952(a)(3).  

According to evidence presented at trial, Gomez and co-defendant Carolina Del Carmen Roldan planned to extort a victim, residing in Broward County, out of tens of thousands of dollars.  If the victim did not comply with the demands for payment, the defendants threatened to damage the victim’s reputation and business prospects.

Gomez was residing in Los Angeles, California, while Del Carmen Roldan was residing in Miami, Florida, during the extortion conspiracy.  Both women, originally from Venezuela, had previously obtained visas to reside in the United States.

Del Carmen Roldan previously pled guilty to participating in the conspiracy transmit an interstate extortionate communication and was sentenced by U.S. District Judge Lenard to 14 months and 15 days in prison, to be followed by 2 years of supervised release.

Mr. Greenberg commended the investigative efforts of the FBI.  This case was prosecuted by Assistant U.S. Attorneys Lisa H. Miller, Anne P. McNamara and Frederic C. Shadley. 

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

The United States filed civil complaints in Florida and California to enjoin two companies that purport to offer stem cell treatments, the Justice Department announced today.

The first complaint, filed May 9, 2018, in the Southern District of Florida, is against US Stem Cell Clinic LLC, of Sunrise, Florida, US Stem Cell, Inc., and company officers Kristin Comella and Theodore Gradel. A separate complaint was filed the same day in the Central District of California against California Stem Cell Treatment Center Inc., of Rancho Mirage and Beverly Hills, California, Cell Surgical Network Corporation, and company owners Elliot Lander, M.D. and Mark Berman, M.D. 

Both complaints allege that the respective defendants manufacture “stromal vascular fraction” (SVF) products from patient adipose (fat) tissue, which the companies then market as stem cell-based treatments for a host of serious conditions and diseases, including cancer, pulmonary disease, arthritis, stroke, ALS, and multiple sclerosis, in the case of the California defendants; and Parkinson’s disease, spinal cord injuries, stroke, pulmonary disease, and traumatic brain injury, in the case of the Florida defendants. According to the complaints, both sets of defendants manufacture their products for these conditions without FDA approval and without proof of safety and efficacy. The Justice Department filed the complaints at the request of the U.S. Food and Drug Administration (FDA). 

“Marketing unproven and potentially unsafe treatments puts consumers at risk,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice will continue to work with the FDA to make sure manufacturers of experimental therapies conduct their research within the safe and legal bounds for drug innovation.”

According to the complaints, the defendants and their affiliates have used their products on thousands of patients without first obtaining necessary FDA approvals. The complaints allege that that in some cases, adverse events that harmed patients occurred after treatment with the SVF products. In addition, the complaints allege that the defendants’ misbranded products fail to include adequate directions for use, such as dosages, warnings, and side effects. According to the complaints, recent FDA inspections showed that the defendants’ products are not manufactured, processed, packed, or held in conformance with current good manufacturing practice (CGMP), and they are adulterated as a matter of law.  

“The Food, Drug, and Cosmetic Act is designed to protect the public health,” said U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida. “This civil lawsuit reflects the ongoing efforts of the U.S. Attorney’s Offices to safeguard the public from potential harm caused by adulterated and misbranded drugs.  Those individuals and corporations that fail to conform with FDA standards are subject to civil enforcement actions.” 

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

The California matter is being handled by Trial Attorney Natalie N. Sanders of the Civil Division’s Consumer Protection Branch, with the assistance of the U.S. Attorney’s Office for the Central District of California and Associate Chief Counsel for Enforcement Michael Shane of the U.S. Department of Health and Human Services’ Office of General Counsel.

A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.

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

The United States filed civil complaints in Florida and California to enjoin two companies that purport to offer stem cell treatments, the Justice Department announced today.

The first complaint, filed May 9, 2018, in the Southern District of Florida, is against US Stem Cell Clinic LLC, of Sunrise, Florida, US Stem Cell, Inc., and company officers Kristin Comella and Theodore Gradel. A separate complaint was filed the same day in the Central District of California against California Stem Cell Treatment Center Inc., of Rancho Mirage and Beverly Hills, California, Cell Surgical Network Corporation, and company owners Elliot Lander, M.D. and Mark Berman, M.D. 

Both complaints allege that the respective defendants manufacture “stromal vascular fraction” (SVF) products from patient adipose (fat) tissue, which the companies then market as stem cell-based treatments for a host of serious conditions and diseases, including cancer, pulmonary disease, arthritis, stroke, ALS, and multiple sclerosis, in the case of the California defendants; and Parkinson’s disease, spinal cord injuries, stroke, pulmonary disease, and traumatic brain injury, in the case of the Florida defendants. According to the complaints, both sets of defendants manufacture their products for these conditions without FDA approval and without proof of safety and efficacy. The Justice Department filed the complaints at the request of the U.S. Food and Drug Administration (FDA). 

“Marketing unproven and potentially unsafe treatments puts consumers at risk,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice will continue to work with the FDA to make sure manufacturers of experimental therapies conduct their research within the safe and legal bounds for drug innovation.”

According to the complaints, the defendants and their affiliates have used their products on thousands of patients without first obtaining necessary FDA approvals. The complaints allege that that in some cases, adverse events that harmed patients occurred after treatment with the SVF products. In addition, the complaints allege that the defendants’ misbranded products fail to include adequate directions for use, such as dosages, warnings, and side effects. According to the complaints, recent FDA inspections showed that the defendants’ products are not manufactured, processed, packed, or held in conformance with current good manufacturing practice (CGMP), and they are adulterated as a matter of law.  

“The Food, Drug, and Cosmetic Act is designed to protect the public health,” said U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida. “This civil lawsuit reflects the ongoing efforts of the U.S. Attorney’s Offices to safeguard the public from potential harm caused by adulterated and misbranded drugs.  Those individuals and corporations that fail to conform with FDA standards are subject to civil enforcement actions.” 

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

The California matter is being handled by Trial Attorney Natalie N. Sanders of the Civil Division’s Consumer Protection Branch, with the assistance of the U.S. Attorney’s Office for the Central District of California and Associate Chief Counsel for Enforcement Michael Shane of the U.S. Department of Health and Human Services’ Office of General Counsel.

A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.

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

Two individuals have been charged in connection with a scheme to defraud a Nigerian company of over $2 million.

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Drew J. Breakspear, Commissioner, Florida Office of Financial Regulation (OFR), made the announcement. 

Vicente Jesus Zubero, 40, of Miami, Florida, and Oyeyemi Olatunji Owagboriaye, 62, of Skokie, Illinois, were charged by indictment with one count of conspiracy to commit wire fraud and three counts of wire fraud, in violation of Title 18, United States Code, Sections 1343 and 1349.

As alleged in the unsealed indictment, Zubero, through his corporation, the Consortium for International Development (CID), purported to broker loans for clients.  In August 2014, Zubero and Owagboriaye induced a company headquartered in Nigeria to provide approximately $2.1 million upfront in order to obtain a loan from CID.  The $2.1 million was then used for Zubero and Owagboriaye’s personal use and benefit, in violation of the company’s agreement with CID.

The indictment further alleges that in order to facilitate the scheme, Zubero made it appear as if his girlfriend and others worked for CID as executives, when, in fact they did not.  Zubero also made materially false statements to the company, including that the money would be placed into a secure escrow account, and that the money would be used to generate the company’s loan.

Each count of conspiracy and wire fraud carries a maximum term of twenty years in prison.

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

Mr. Greenberg commended the investigative efforts of the FBI and OFR.  This case is being prosecuted by Assistant U.S. Attorney Roger Cruz.

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.

On April 25, 2018, a federal jury in Miami convicted Michael Roy Fraser, a Jamaican national, of naturalization fraud.

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida; Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office; and Linda M. Swacina, Miami and Caribbean District Director, U.S. Citizenship and Immigration Services (USCIS), made the announcement.  

Fraser was convicted, at trial, of Procurement of Citizenship or Naturalization Unlawfully, in violation of Title 18, United States Code, Section 1425(a) and Misuse of Evidence of Citizenship or Naturalization, in violation of Title 18, United States Code, Section 1423.

According to evidence presented at trial, in 2007, Fraser, a Jamaican national, paid a U.S. citizen between $8,000 and $10,000 to enter into a fraudulent marriage, so he could unlawfully obtain U.S. residency and qualify for citizenship.  Based on the fraudulent marriage, Fraser acquired residency, and in 2013, he became a U.S. citizen.  About two months after obtaining a U.S. passport, Fraser filed for divorce against his U.S. citizen spouse and sooner after married the mother of his child, also a Jamaican national.  Fraser then filed immigration paperwork to have his Jamaican-citizen spouse obtain U.S. legal permanent residency.

During a review of Fraser’s Jamaican spouse’s application for permanent residency, a USCIS officer detected various discrepancies that ultimately led to the discovery of the fraud. Specifically, the officer noticed that Fraser’s new Jamaican spouse claimed to have been living with Fraser during a time Fraser claimed to be married to his previous, U.S. citizen spouse.  Further, the officer discovered that Fraser and his Jamaican spouse had a child together, who was born a year before Fraser’s fraudulent marriage took place, and which Fraser failed to disclose throughout his own applications to become a permanent resident and U.S. citizen  

This matter was referred to USCIS Fraud Detection National Security (FDNS) immigration officers who worked closely with U.S. Immigration and Customs Enforcement (ICE) agents to investigate the fraudulent scheme.  USCIS works with law enforcement and intelligence community partners to resolve potential fraud and national security and public safety concerns and aggressively pursues benefit fraud cases in collaboration with federal law enforcement agencies.

Sentencing is scheduled for July 10, 2018 at 2:00 p.m., before U.S. District Court Judge Beth F. Bloom, in Miami.

Mr. Greenberg commended the investigative efforts of ICE-HSI and USCIS.  This case is being prosecuted by Assistant U.S. Attorney David Turken and ICE Special Assistant United States Attorney Monica Atkins.

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.  

 

Two South Florida stock promoters have been charged in connection with a $1 million pump and dump securities fraud scheme involving the shares of Valentine Beauty, Inc. (“VLBI”). 

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.  

            Eddy Ubaldo Marin, 56, of Ft. Lauderdale, Florida, was charged by a criminal information with one count of securities fraud, in violation of Title 15, United States Code, Sections 78(j)(b) and 78ff(a), and Title 17, Code of Federal Regulations, Section 240.10b-5 in Case No. 18-CR-20354.   Marin faces a maximum statutory sentence of up to 20 years in prison and a fine up to $5 million.  The case is assigned to U.S. District Judge Darrin P. Gayles in Miami.  Shane R. Spierdowis, 27, formerly of Boca Raton, Florida, was charged by separate criminal information with one count of conspiracy to commit securities fraud, in violation of Title 18, United States Code, Section 371 in Case No. 18-CR-20355.   Spierdowis faces a maximum statutory sentence of up to 5 years in prison and a fine up to $250,000 or double the gross proceeds of the offense.   The case is assigned to U.S. District Judge Ursula M. Ungaro in Miami.

            According to the court docket, including allegations made in the charging documents, VLBI was a beauty 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 certain 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, based in Ft. Lauderdale, Florida.  In March and April, 2014, Marin arranged to transfer a substantial number of shares into accounts controlled by Spierdowis and other co-conspirators.  Marin was a convicted felon and, according to court documents, attempted to conceal his role in the scheme by keeping his name off of corporate documents.   Marin also arranged to obtain false and fraudulent legal opinion letters so that the shares he controlled could be falsely classified as “free trading” rather than restricted.

            Thereafter, beginning in approximately May 2014 and continuing through in or around September 2014, Marin, Spierdowis and others allegedly arranged for VLBI to issue press releases, while also using internet marketing and penny stock newsletters to tout VLBI stock.   Spierdowis would then use one company to trade VLBI shares, while using a separate company to conduct internet marketing activities, to avoid association with the pump and dump stock manipulation and cause the issuance of marketing newsletters and other email marketing.  These efforts were intended to artificially increase the trading volume and price of VLBI shares, so that Marin, Spierdowis and their co-conspirators could 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 at FCI Miami, Marin was allegedly visited by Spierdowis on various occasions and during these visits the defendants coordinated the sale of VLBI shares and discussed activites related to other stocks. 

            According to court documents, in or around April 2015, after Marin was released from federal custody he, along with Spierdowis and their co-conspirators, planned to conduct a reverse merger of VLBI into another entity, change the name, and retain secret control of the company. 

The conspirators continued to sell shares of VLBI until approximately April 26, 2016, when trading in VLBI shares was suspended by the U.S. Securities and Exchange Commission (SEC). 

            Today, a parallel civil enforcement action was filed by the SEC in the Southern District of Florida against Marin and Spierdowis in connection with the VLBI pump and dump manipulation scheme.

A criminal information is a charging instrument containing allegations.  Every defendant is presumed innocent unless and until found guilty in a court of law.

Mr. Greenberg commended the investigative efforts of the FBI in this matter.  Mr. Greenberg also thanked the SEC’s Miami Regional Office for their assistance.  This case is being prosecuted by Assistant U.S. Attorney Jerrob Duffy.

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 Palm Beach Gardens Army Recruiter is facing federal child pornography and enticement charges.   

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigations (FBI), and William D. Snyder, Sheriff, Martin County Sheriff’s Office, (MCSO), made the announcement.

Danilo Fernandez, II, 36, of Palm Beach Gardens, was charged by criminal complaint with one count of attempted production of child pornography, in violation of Title 18, United States Code, Section 2251(a) and (e); one count of receipt of child pornography, in violation of Title 18, United State Code, Section 2252(a)(2) and (b)(1); and one count of enticement of a minor to engage in sexual activity, in violation of Title 18, United States Code, Section 2422(b).  If convicted Fernandez faces a statutory maximum term of life in prison.  Williams is currently being detained, without bond, pending further proceedings in U.S. District Court in West Palm Beach.

            According to court records, Fernandez, while working as an Army Recruiter in the fall of 2017, met a 17-year-old Palm Beach County high school student.  Fernandez texted and then engaged in sexually explicit Snapchat messages with the minor.  Over a period of months, Fernandez encouraged the minor to take and send him lewd and lascivious images and videos. 

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

If you have information regarding this case, or you believe you or a family member may have been a victim, please contact FBI Miami at (754) 703-2000 and reference the PBCRecruiterVictims, or email:  PBCRecruiterVictims@FBI.GOV.

Mr. Greenberg commended the investigatory efforts of the FBI and MCSO, and thanked the U.S. Army Criminal Investigation Command, Palm Beach Gardens Police Department, and Palm Beach County School District Police Department for their commitment to investigating these offenses and protecting victims of child sexual abuse.  This case is being prosecuted by Assistant United States Attorney Gregory Schiller.

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

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

Johnny Clyde Benjamin, Jr., M.D., an orthopedic surgeon practicing in Vero Beach, Florida, was found guilty by a federal jury in Fort Lauderdale, on April 27, 2018, of conspiracy to possess with intent to distribute Furanyl Fentanyl which resulted in death, aiding and abetting the distribution of Furanyl Fentanyl which resulted in death, attempted possession with intent to distribute Acetyl Fentanyl, possession with intent to distribute Oxycodone, and conspiracy to possess with intent to distribute Hydrocodone and Oxycodone.

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida; Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, Peter J. Forcelli, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office; Peter Kuehl, Acting Special Agent in Charge, U.S. Food and Drug Administration, Office of Criminal Investigations (FDA-OCI); Mark Selby, Special Agent in Charge, U.S. Immigration and Custom Enforcement’s Homeland Security Investigations (ICE-HSI); Dave Aronberg, State Attorney, Palm Beach County State Attorney’s Office; Bruce Colton, State Attorney for the 19th Judicial Circuit; Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO); Deryl Loar, Sheriff, Indian River County Sheriff’s Office; and Renee Purden, Chief, Orlando Melbourne Airport Police Department, made the announcement.

The evidence presented at the trial established that on September 1, 2016, a young woman who resided in Wellington, Florida died after overdosing on counterfeit oxycodone pills.  The pills contained a Fentanyl analog, Furanyl Fentanyl, as the active ingredient.  Furanyl Fentanyl is an extremely powerful synthetic opioid, many times more powerful than street level heroin or oxycodone. 

Following a toxicology analysis, the Office of the District Medical Examiner of Palm Beach County attributed the cause of decedent’s death to the Furanyl Fentanyl.

An extensive investigation by law enforcement identified Dr. Benjamin as the source of the Furanyl Fentanyl pills that caused the decedent’s death. The investigation also revealed that Dr. Benjamin was involved with the manufacture and distribution of counterfeit oxycodone pills, outside the South Florida area.

            The jury acquitted Dr. Benjamin on all firearms charges, including possession of a firearm in furtherance of a drug trafficking crime.

Dr. Benjamin is scheduled to be sentenced by U.S. District Court Judge William P. Dimitrouleas on July 6, 2018 at 1:30 p.m.   

Dr. Benjamin faces a mandatory minimum of 20 years in prison, up to a maximum term of life, for the conspiracy to possess with intent to distribute Furanyl Fentanyl (resulting in death) and distribution of Furanyl Fentanyl (resulting in death); a maximum of 20 years in prison for attempted possession with intent to Acetyl Fentanyl;  a maximum of 20 years in prison for possession with intent to distribute Oxycodone; and a maximum of 20 years in prison for conspiracy to possess with intent to distribute Hydrocodone and Oxycodone.

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

Mr. Greenberg commended the investigative efforts of DEA, ATF, FDA-OCI, PBSO, HSI-ICE, Indian River County Sheriff’s Office, and Orlando Melbourne Airport Police Department. Mr. Greenberg also thanked the Palm Beach County State Attorney’s Office and State Attorney’s Office for the 19th Judicial Circuit for their assistance.  This case is being prosecuted by Assistant U.S. Attorneys John McMillian and Rolando Garcia. 

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. Attorney Benjamin G. Greenberg for the Southern District of Florida, Acting Assistant Attorney General John Gore, and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, today announced federal charges against juvenile detention officer Antwan Lenard Johnson arising from his role in the August 2015 beating and death of a 17-year-old juvenile inmate (E.R.) at the Miami-Dade Regional Juvenile Detention Center (JDC) in Miami, Florida. 

“The United States Constitution protects every person in this country, including those who are detained in juvenile detention facilities,” said U.S. Attorney Benjamin G. Greenberg.  “It is an honor and privilege to work with the many outstanding agents and officers who are part of our law enforcement community. These brave individuals put their lives on the line every day to protect us all and make our communities safer. But we are committed to bringing to justice the small minority of law enforcement officials when they abuse their authority and violate the civil rights of another.”

 “The Justice Department will continue to aggressively prosecute corrections officers who exploit their position of power and violate the civil rights of individuals in their custody,” said Acting Assistant Attorney General John Gore of the Civil Rights Division.

“Violations of civil rights by government officials cannot be tolerated as it undermines the public’s trust,” said Robert F. Lasky, Special Agent in Charge, FBI Miami.  “The FBI is committed to working with our partners to safeguard the civil rights of all.”

Johnson, 35, of Miami-Dade County, was charged with conspiracy to violate E.R.’s civil rights under color of law, which resulted in E.R.’s death, in violation of Title 18, United States Code, Section 241; and deprivation of E.R.’s civil rights, under color of law, which resulted in bodily injury and E.R.’s death, in violation of Title 18, United States Code, Section 242. If convicted, Johnson faces a maximum statutory sentence of life in prison for each charge. 

E.R. was a 17-year-old juvenile who had been arrested and was subsequently taken to the JDC on Aug. 28, 2015.  He was being detained pending further order of the State Court and had not been convicted of the crime for which he had been arrested.

The indictment alleges that Johnson operated a commonly utilized bounty system in order to help ensure obedience and officer respect at the JDC.  Johnson encouraged and induced juvenile detainees, in exchange for rewards and privileges, to forcibly assault E.R.  In exchange for attacking E.R., Johnson rewarded the juveniles with extra recreational time and snacks. As a result of being held at the JDC, witnessing events at the facility, and in some cases being actual victims of the bounties, the juveniles were aware of the bounty culture.  They knew that they would not be punished or disciplined by Johnson, but in fact rewarded, if they followed his directives.

The indictment alleges that, on Aug. 30, 2015, Johnson worked in Module 9 at the JDC, during the 3:00 p.m. to 11:00 p.m. shift.  Based on E.R.’s statements and behavior during dinner at the JDC cafeteria, Johnson communicated to juveniles that he wanted them to forcibly assault E.R.  Various juveniles agreed, which caused E.R. to fear for his immediate safety and stand away from the other juveniles prior to, and while returning, from the JDC cafeteria to Module 9.

According to the indictment, Johnson directed juveniles to delay the attack on E.R. until they all returned to Module 9.  Upon returning to Module 9 with the juveniles, Johnson promptly walked out of view of E.R. and the other juveniles.  At the same time, a juvenile punched E.R. in the face as he attempted to sit down in a chair. Numerous other juveniles immediately joined the attack and punched and kicked E.R., continuing their assault, even when E.R. fell to the ground.

The indictment further alleges that after E.R. was escorted out of Module 9 to the JDC medical department, Johnson promptly released the juveniles in Module 9 from their cells and allowed them to watch television as a reward and privilege.  Johnson also bumped fists with the juvenile who initiated the attack on E.R.  Johnson later caused certain Module 9 juveniles to receive snacks as a reward and privilege for participating in the attack on E.R.

According to the indictment, E.R. was later transported from the JDC to Holtz Children’s Hospital in Miami, Florida.  On Aug. 31, 2015, E.R. was pronounced dead due to bodily injuries suffered during the attack.

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

This case was investigated by the FBI Miami Area Corruption Task Force. The case is being prosecuted by Assistant U.S. Attorney Sean T. McLaughlin and Trial Attorney Samantha Trepel of the Civil Rights Division.

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

Sandra Ruballo, 46, of Davie, and Carlos Andres Montoya, 47, of Miramar, have been charged by criminal complaint with participating in a conspiracy to defraud the federally funded Child Care Food Program (CCFP), which provides free and reduced meals to underprivileged children at hundreds of South Florida daycare centers.  As part of the scheme, the conspirators falsified paperwork, entered into various kickback arrangements, manipulated the catering bid process, and inflated annual budgets, all in order to receive millions of dollars of falsely and fraudulently obtained federal funds for their own personal use and benefit. 

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida; Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI); Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS); and Karen Citizen-Wilcox, Special Agent in Charge, U.S. Department of Agriculture, Office of Inspector General (USDA-OIG), made the announcement.

Ruballo and Montoya were charged with one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, in Case No. 18-MJ-02629 (Ruballo) and Case No. 18-MJ-2592 (Montoya).  Each defendant faces a maximum statutory sentence of 20 years in prison. 

According to court documents, the purpose of the CCFP is to provide nutritious meals and snacks to underprivileged children in daycare centers located in the Southern District of Florida, and elsewhere.  As such, the CCFP provides children classified at or below a certain family income level with daily meals and snacks, at a free or a reduced rate.  Daycare centers often contract with a sponsoring organization to process and submit their program paperwork.  In those situations, the sponsoring organization enters into an agreement to operate the CCFP, and assumes administrative and financial responsibility on behalf of the center.

The criminal complaint alleges that Ruballo was the owner and operator of Highland Food Resources, Inc. (HFR), a sponsoring organization of more than 200 daycare centers that participated in the CCFP.     In this role, HFR processed paperwork and electronically submitted monthly reimbursement claims on behalf of such centers.  Reimbursement was calculated on a sliding scale, with the largest reimbursement being for children at the daycare centers classified as free, then reduced, then non-needy.  Once HFR was reimbursed with federal funds, they paid the daycare centers, less HFR’s fee, which is a percentage of the total monthly meal reimbursements.  Thus, the size of HFR’s payment was driven, in part, by the number of meals claimed by daycare centers that are multiplied by a higher reimbursement rate for the free and reduced meals/snacks. 

Ruballo and others allegedly falsified paperwork for children enrolled at daycare centers in order to qualify more kids for free and reduced meals under the CCFP.  They also inflated the number of meals claimed to have been served at centers.  This fraudulent paperwork was used as the basis for inflated monthly reimbursement claims that Ruballo submitted to the program.

On behalf of HFR, Ruballo also allegedly solicited caterers through a bidding process to deliver meals to children at participating daycare centers. The caterers were reimbursed by HFR under the terms of their agreement for the meals provided.  Montoya was the owner and operator of Montoya Holdings, Inc., a catering service that Ruballo selected through the bidding process to provide CCFP meals to eligible students at participating daycare centers located in the Southern District of Florida.  In return for providing such meals, Montoya Holdings was paid more than $8 million in federal funds, via HFR.

According to court documents, Ruballo, Montoya and others conspired to rig the catering bid process through materially false and fraudulent representations to the CCFP.  For example, Ruballo agreed to accept kickbacks from Montoya in exchange for using false and fraudulent misrepresentations and pretenses regarding meal pricing, bid details, and inflated monthly reimbursement claims to repeatedly secure catering contracts for Montoya Holdings at participating CCFP centers that used HFR as a sponsoring organization.  The difference between the represented inflated costs submitted by Ruballo, and the actual costs, were used, in part, to fund monthly cash kickbacks. 

Additionally, according to court documents, Ruballo inflated the budget that she submitted to the USDA as part of the CCFP.  For example, certain HFR employees agreed to receive inflated salaries from Ruballo in exchange for cashing part of their paychecks and providing the cash to Ruballo.  Furthermore, while employed at HFR and in violation of the CCFP rules and regulations, conspirators received monthly side payments from daycare centers in exchange for helping with their paperwork and administrative items.  They retained a portion of these payments for her own personal use and benefit, and provided the remainder of them to Ruballo, who knowingly accepted the cash payments and retained them for her own personal use and benefit.  During this same period, Ruballo falsely represented to the USDA that no such side payment arrangements existed. 

Another defendant, Yudy Miranda, pleaded guilty in connection with the scheme to defraud, in Case No. 18-CR-20040.  Miranda is scheduled to be sentenced on June 18, 2018 at 1:30 p.m. by United States District Judge Jose E. Martinez, in Miami.

Mr. Greenberg commended the investigative efforts of IRS-CI, USSS and USDA-OIG.  This case is being prosecuted by Assistant U.S. Attorney Anne P. McNamara.

A criminal complaint is a charging instrument containing allegations.  Every defendant is presumed innocent unless or until found 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.

           

Juan Sebastian Chavez, 26, of Fort Lauderdale, was sentenced today to 20 years in prison for possessing and producing child pornography. 

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida; Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI); and Rick Maglione, Chief, Fort Lauderdale Police Department, made the announcement.

United States District Judge Kenneth A. Marra sentenced Chavez to 240 months in prison and a lifetime of supervised release.  Chavez must also register as a sex offender.  Chavez previously pled guilty to one count of possession of child pornography, in violation of Title 18, United States Code, Section 2252(a)(4)(B), and one count of production of child pornography, in violation of Title 18, United States Code, Section 2251(a) and 2251(e).

According to court documents, beginning in April 2014, through September 2014, Chavez persuaded, induced, enticed and coerced a minor female child to engage in sexually explicit conduct.  Chavez captured images of the sexually explicit conduct with his cellular telephone.  Chavez also possessed images and videos of child pornography on his computers.

Mr. Greenberg commended the investigative efforts of HSI-ICE and the Fort Lauderdale Police Department in this matter.  This case was prosecuted by Assistant U.S. Attorneys Jodi L. Anton and Francis Viamontes.

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 South Florida securities broker-dealer has been charged with participating in a conspiracy to unlawfully sell unregistered securities.  This conduct was part of a scheme to sell shares of fraudulently registered companies that could then be used for pump and dump and other stock manipulation schemes. 

            Randy A. Hummel, First Assistant U.S. Attorney, U.S. Attorney’s Office, Southern District of Florida, and Robert F. Lasky, Special Agent in Charge, FBI Miami Field Office, made the announcement.  

            Delaney Equity Group LLC, a registered broker-dealer based in Palm Beach Gardens, was charged by a criminal information with one count of conspiracy to unlawfully sell unregistered securities, in violation of Title 18, United States Code, Section 371, in Case No. 18-CR-20336.   The defendant company faces a maximum statutory sentence of five years of probation and a fine up to $500,000 or double the proceeds of the offense.  The case is assigned to U.S. District Judge Cecilia M. Altonaga in Miami.

            According to court documents, including the charging information, from October 2009 through at least June 2013, Delaney Equity Group LLC (“Delaney Equity”), through certain employees including Ian C. Kass, participated in a conspiracy to sell shares of bogus microcap companies, knowing that the companies had been created using nominee officers and were secretly controlled by shell principals Steven Sanders, Daniel McKelvey, and Alvin S. Mirman.  The shell principals would fraudulently create public companies, known as issuers, by filing documents with the SEC that falsely described the companies and their share ownership.  These documents would indicate that the companies were controlled by a nominee, or straw chief executive officer (CEO).  The straw CEO would be listed as the owner of the control block, or restricted shares, but in reality the companies were controlled by the principals.  The principals would also create documents with the names of various shareholders for each company, to make it appear that these shares were owned by persons unaffiliated with the company.  These shares would later be classified as unrestricted or “free trading.”  Thereafter, the principals would sell the companies to criminal actors who would secretly obtain the control shares and the purported “free trading” shares, without disclosure to the U.S. Securities and Exchange Commission (SEC) or the investing public.  This would allow the buyers to engage in stock manipulation schemes using the purported “free trading” shares. 

            According to the allegations in the information, Delaney Equity was a securities broker-dealer that was registered with the SEC and was a market maker for penny stocks in the over-the-counter securities markets.  Acting at the direction of the shell principals, Delaney Equity sponsored nine fraudulent shell companies for electronic trading, and facilitated the sale of shares of these bogus entities to criminal actors.   According to court documents, Delaney Equity utilized fraudulent paperwork to deposit shares into broker accounts in the names of the fraud principals, including Steven Sanders, Daniel McKelvey, and Alvin S. Mirman.  Delaney Equity also obtained authorization from the Financial Industry Regulatory Authority (FINRA) for shares of the companies to be electronically traded.  Delaney Equity also opened brokerage accounts for the shell principals and deposited shares of the bogus entities into these accounts, later selling the shares to the investing public knowing that the companies were sham entities with nominee officers.   These activities, according to allegations in the information, facilitated the unlawful sale of securities that should have been classified as restricted, facilitating the securities fraud scheme.

            Ten other defendants have been convicted in connection with the Shell Factory Fraud investigation: John Ahearn and Andrew Wilson, Case No. 17-20883-CR-KMW; Yelena Furman, Case No. 17-20713-CR-CMA; David Lubin, Case No. 17-20508-CR-MGC; Sheldon Rose and Ian Kass, Case No. 16-20706-CR-JEM; Steven Sanders and Alvin S. Mirman, Case No. 16-20572-CR-CMA; and, Daniel McKelvey and Jeffrey Lamson, Case No. 16-20546-CR-RNS. 

A criminal information is a charging instrument containing allegations.  Every defendant is presumed innocent unless and until found guilty in a court of law.

Mr. Hummel commended the investigative efforts of the FBI’s Miami Field Office.  Mr. Hummel also thanked the SEC’s Miami Regional Office for their assistance.  The SEC previously filed a parallel administrative enforcement proceeding related to this matter.  This case is being prosecuted by Assistant U.S. Attorney Jerrob Duffy.

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.

After having been convicted at trial, Corry E. Pearson, of Riviera Beach, was sentenced yesterday to more than 10 years in prison for operating a fraudulent tax preparation business and submitting fraudulent tax returns using the stolen personal identification information of other individuals.

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.

Pearson, 28, was sentenced by United States District Judge Beth Bloom to 124 months in prison.   On October 2, 2017, a federal jury in Miami convicted Pearson of 18 criminal charges, including: 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; aggravated identity theft, in violation of Title 18, United States Code, Section 1028A; money laundering, in violation of Title 18, United States Code, Section 1956(a)(1)(B)(i); and money laundering, in violation of Title 18, United States Code, Section 1957.

            Evidence presented at trial and sentencing established that, from 2011 through 2013, Pearson and his accomplices filed at least 770 fraudulent tax returns in the names of various people. The conspirators filed many of these returns using two tax preparation businesses in West Palm Beach, Florida, that they controlled, Tax King, Inc. and NPN Multiservices.  In addition, the conspirators filed other returns in a manner that made it appear as if the taxpayers had filed the returns themselves, without using a tax preparation business.  In some cases, the conspirators filed Federal income tax returns in the names of people who were actually victims of identity theft. The conspirators also listed stolen identities as tax preparers on fraudulent tax returns, making it appear that the fraud had been perpetrated by people who were actually victims of the identity theft.  In total, the returns filed by the conspirators claimed approximately $5,173,274 in fraudulent refunds.  Pearson also engaged in financial transactions with the proceeds of the fraud to disguise his control over the proceeds.

Pearson’s co-defendant, Stephane Cindy Anor, a/k/a “Stephanie Anor, 28, of West Palm Beach, previously pled guilty to one count of conspiracy to commit wire fraud and was sentenced to 36 months in prison.  Anor worked as a tax preparer at Tax King.

In a related case, Irene Wilson, 52, of Riviera Beach, previously pled guilty to conspiracy to defraud the United States by a false claim and was sentenced to 3 years of probation. Wilson assisted Pearson to file a fraudulent return and to disguise Pearson’s control of those proceeds.

A restitution hearing has been scheduled for July 13, 2018.

Mr. Greenberg commended the investigative efforts of IRS-CI in this matter.  This case was prosecuted by Assistant U.S. Attorneys Marc Osborne and Roger Stefin.

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.