Southern District of Florida

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida; Antonio J. Gomez, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division; Adolphus P. Wright, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division; Juan J. Perez, Director, Miami-Dade Police Department (MDPD); and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announced that resident Luis Hernandez-Gonzalez was sentenced today to 65 months in prison and has agreed to forfeit over $18 million, following his money laundering conviction.

On February 7, 2018, Hernandez-Gonzalez, 45, of Miami Lakes, pled guilty to one count of conspiracy to commit money laundering, in violation of Title l8, United States Code, Section 1956(h), and one count of causing and attempting to cause a financial institution to fail to file a currency transaction reports as part of a pattern of criminal activity involving more than $100,000 in a twelve-month period, in violation Title 31, United States Code, Section 5324(a)(1) and(d)(2.  Hernandez-Gonzalez was sentenced to 65 months, forfeiture of $18,000,000.00 in seized U.S. currency and $42,051.00 in seized blank money orders, by U.S. District Court Judge Robert N. Scola.

“Those who seek to deceptively circumvent established financial reporting requirements will be called to pay for their misdeeds, by forfeiting the monies acquired through their illicit conduct,” stated U.S. Attorney Benjamin Greenberg.  “The U.S. Attorney’s Office and our federal, state and local partners will continue to target for prosecution those who launder money, including narcotics trafficking proceeds, through our banking systems and the U.S. Postal Service.”

"The primary mission of the U.S. Postal Inspection Service is the protection of our employees, our customers, and, thus, our communities to ensure that the Postal Service is not used to avoid federal reporting requirements or launder drug trafficking proceeds,” said Miami Division Inspector in Charge Antonio J. Gomez. "This case is an excellent example of the partnerships we have established across federal and state jurisdictions to help us fulfill that mission."

“The sentencing of Luis Hernandez-Gonzalez puts a final end to his money laundering operation,” said DEA Special Agent in Charge Adophus P. Wright.  “This case is a result of the strong partnership and working relationship with our law enforcement partners.”

“Structuring financial transactions to avoid currency reporting requirements is a criminal violation of federal law under the Bank Secrecy Act (BSA).  Today's sentencing is a reminder that there are serious consequences for this type of criminal behavior,” stated Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI).  “We will continue to work with our law enforcement partners to unravel this and other complex financial transactions and money laundering schemes where individuals attempt to conceal the true source of their income and deliberately avoid BSA requirements.”

From on or about January 2, 2010, to on or about June 28, 2016, Hernandez-Gonzalez knowingly made deposits or purchased money orders with over $17,700,000 in United States currency in a manner designed to avoid the Department of Treasury Currency Transaction Report (CTR) filing requirement. These deposits and money order purchases were made at banks or United States Postal Service branches and were part of a pattern of criminal activity involving more than $100,000 in a twelve-month period.

From April through June 2016, Hernandez-Gonzalez assisted marijuana traffickers to cultivate their products.  During a search warrant in Tennessee, law enforcement discovered approximately 242 marijuana plants.  Hernandez-Gonzalez deposited funds that he received from the Tennessee marijuana trafficking activity into business bank accounts he controlled or he purchased USPS money orders with the narcotics proceeds.  The deposits and money order purchases were conducted in a manner that was designed to conceal and disguise, in whole or in part, the nature, the location, the source, the ownership and the control of the proceeds of specified unlawful activity, or to knowingly evade the CTR filing requirement on the receipt of the marijuana trafficking funds.

On June 28, 2016, pursuant to an investigation into the defendant’s criminal conduct, law enforcement seized over $21 million from Hernandez-Gonzalez’s residence - the majority of which were contained in orange buckets inside a hidden compartment in the attic and walls.  In addition, law enforcement seized over $665,000 in currency and $42,000 in money orders from the defendant's Miami business.

In total, $17,700,000 in currency and more than $42,000 in postal money orders were funds/property involved in, or traceable to the evasion of the CTR reporting requirement.  Of that amount, $300,000 was involved in, or traceable to transactions Hernandez-Gonzalez received from the Tennessee marijuana traffickers.

This prosecution 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 members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.

Mr. Greenberg commended the investigative efforts of USPIS, DEA, MDPD and IRS-CI.  Mr. Greenberg thanked the DEA – Nashville District Office for their assistance with this matter.  This case was prosecuted by Assistant United States Attorney Timothy Abraham.  Assistant United States Attorney Evelyn B. Sheehan is handling the forfeiture proceedings.

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.

Gustavo Falcon, a member of the Falcon-Magluta criminal organization, was sentenced by United States District Judge Federico A. Moreno today to 135 months in prison for his participation in a narcotics conspiracy.

Randy A. Hummel, First Assistant United States Attorney, U.S. Attorney’s Office for  the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, and Amos Rojas, Jr., United States Marshal, United States Marshals Service (USMS), made the announcement.

On February 1, 2018, Falcon pled guilty to conspiracy to possess with intent to distribute and to distribute cocaine, in violation of Title 21, United States Code, Section 846, an offense punishable by up to twenty years in prison.  Prior to his arrest in April 2017, Falcon was a fugitive for approximately 26 years.

Falcon’s conviction arises out of his participation in the cocaine trafficking organization headed by his older brother, Augusto Guillermo Falcon, a/k/a “Willie,” and Salvador Magluta.  From the early 1980s through mid-October 1991, the Falcon-Magluta organization was an extraordinarily prolific cocaine trafficking organization based in the Southern District of Florida and elsewhere.  As an illustration of the scope of the organization’s activities, cocaine ledgers seized from a residence controlled by Magluta that covered the period of January 1, 1990, through October 15, 1991, recorded the distribution of 8,921 kilograms of cocaine for a total price of $142,509,800.

In the mid-1980s, the Falcon-Magluta organization established a base in Southern California.  From that base, the organization distributed cocaine in the Southern California area and moved large tractor-trailer loads of cocaine from California to various destinations in the United States, including the Southern District of Florida.  On almost a daily basis, the organization’s local distribution operations in Southern California received between $50,000 and $200,000 in cash drug proceeds.

Falcon’s wife’s brother was a Falcon-Magluta organization cocaine trafficker.  In 1986, the defendant’s brother-in-law told the defendant that he had a client in California that he needed to supply with cocaine.  The defendant gave his brother-in-law the names of two organization members working in the Los Angeles area and told his brother-in-law that one of them would be able to supply any cocaine he needed.

After his arrest in Los Angeles in mid-December 1986, the defendant’s brother-in-law returned to South Florida.  In late 1987, Falcon asked his brother-in-law to receive large shipments of cocaine transported from California and introduced him to the organization member responsible for delivering the cocaine to a farm in west Miami-Dade County.  The tractor-trailers arrived every one to two months and generally contained 1,000 kilograms of cocaine per load.  After the loads were delivered to the farm, the defendant’s brother-in-law then would transport the cocaine to stash houses in the South Florida area.

In late 1989, Falcon contacted a separate organization member and offered him $10,000 per month to stash large quantities of cocaine in his house.  After this organization member accepted the defendant’s offer, he received and stored organization cocaine through 1991.  A search of that organization member’s house in early January 1992 yielded 3.093 kilograms of cocaine from his attic.

On April 10, 1991, a federal grand jury returned a cocaine trafficking indictment in this case that charged ten Falcon-Magluta organization members.  Those charged included Falcon, Willie Falcon, Salvador Magluta, and the defendant’s brother-in-law.  After the indictment was unsealed on May 20, 1991, Falcon and others learned of the charges against them.  In mid-September 1991, Falcon obtained a false Florida driver’s license in the name of “Luis Andre Reiss.”

In April 2017, the USMS located the defendant in the area of Kissimmee, Florida, where he had been living for a number of years under the “Luis Reiss” alias identity he had established in September 1991.  Deputy Marshals captured the defendant on April 12, 2017.

Mr. Hummel commended the investigative efforts of the DEA and USMS and thanked the Miami-Dade Police Department for their assistance with this matter.  This case was prosecuted by Assistant U.S. Attorney Christopher Clark.

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.

Richard William Lockley, 34, of Stuart, was sentenced today by U.S. District Court Judge Donald L. Graham to 15 years in prison, to be followed by 10 years of supervised release, for producing pornography of a teenage victim.  He was ordered to register as a sex offender.  Co-Defendant Joshua Lane Rogers, 34, also of Stuart, is scheduled to be sentenced in June.

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, Ken Mascara, Sheriff, St. Lucie County Sheriff's Office (SLCSO), and William D. Snyder, Sheriff, Martin County Sheriff's Office (MCSO), made the announcement.  

According to the court record, on September 3, 2017, SLCSO deputies responded to a “Missing Person Juvenile/ Runaway” call for a missing 16-year-old minor.   On September 27, 2017, MCSO Detectives located Rogers with the minor victim.  The investigation revealed that Rogers met the victim on-line and had the victim stay at his residence.  A forensic analysis of Roger’s cellular smart phone revealed he had recorded sexually explicit activity with the minor victim on numerous occasions.  Rogers distributed many of the captured images and videos to other individuals, via MMS text communications, a social media networking program, and in the personal section of a Treasure Coast website.  

Rogers and Lockley, together at Rogers’ residence, also produced videos depicting sexually explicit conduct and activity with the minor victim.  A forensic analysis of Lockley’s cellular smart phone revealed he had used it to record sexually explicit activity with the minor victim.

On January 17, 2018, Lockley pled to one count of production of visual depictions of sexual exploitation of minors, in violation of Title 18, United States Code, Sections 2251(a) and (e). 

On March 22, 2018, Defendant Rogers pled guilty to two counts of production of visual depictions of sexual exploitation of minors and one count of distribution production of visual depictions of sexual exploitation of minors, in violation of Title 18, United States Code, 2252(a)(2) and (b)(1).  Rogers is scheduled to be sentenced on June 5, 2018 at 11 a.m., in Miami, by U.S. District Court Senior Judge Donald L. Graham.

Mr. Greenberg commended the investigative efforts of the FBI, SLCSO and the MCSO for their work on this case.  This case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.

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

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 Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announced federal charges against Dante Starks arising from his role in the Opa Locka municipal corruption scheme.

“The resulting harm from corruption, extortion and bribery denies law abiding citizens the right to expect honest services from government officials overseeing their business-related issues,” stated U.S. Attorney Benjamin Greenberg.  “Political power and influence must not be bought or sold and those who believe otherwise will be prosecuted by this office with the assistance of our dedicated law enforcement partners.”

“For the public to have confidence in their government, they must be certain that officials - either elected or appointed - will not use their position for personal gain,” said Robert F. Lasky, Special Agent in Charge, FBI Miami.  “Public corruption remains a top priority for the FBI.  We encourage anyone who may have information about corruption to come forward and report it. This information is vital to our work.”

“Today's announcement demonstrates our collective efforts to enforce the law and ensure public trust,” stated Kelly R. Jackson, Special Agent in Charge, IRS-CI. “The tax laws apply to everyone, and each of us is responsible for filing correct and accurate tax returns. Choosing not to file a tax return is a crime; and IRS Criminal Investigation will continue to investigate individuals who ignore their tax responsibilities.”

Starks, 55 of Miami-Dade County, was charged by indictment with conspiracy to commit Hobbs Act extortion under color of official right, in violation of Title 18, United States Code, Section 1951 (a); conspiracy to commit Federal programs bribery, in violation of Title 18, United States Code, Section 371; aiding and abetting Federal programs bribery, in violation of Title 18, United States Code, Sections 666(a)(1)(B) and 2; and failure to file income tax returns (for tax years 2014, 2015 and 2016), in violation of Title 26, United States Code, Section 7203.  If convicted, Starks faces a maximum statutory sentence of 20 years in prison for the Hobbs Act extortion conspiracy, 5 years in prison for the bribery conspiracy, 10 years in prison for each count of aiding and abetting bribery, and 1 year in prison on each of the failure to file charges.  The case against Starks is assigned to U.S. District Judge Jose E. Martinez (Case No. 18-20313-CR).

Starks is charged with conspiring with former Opa Locka City Commissioner Luis Santiago, former Opa Locka City Manager David Chiverton, and former Opa Locka Assistant Public Works Director Gregory Harris, to use the official positions and authority that Santiago, Chiverton, and Harris had with the City of Opa Locka to solicit, demand, and obtain personal payments from businesses and individuals in exchange for taking official actions, and for directing, pressuring, and advising other city employees to take official actions, to assist and benefit those businesses and individuals in their official dealings with the City of Opa Locka.

As the Indictment alleges, although Starks was not an official or employee of the City of Opa Locka, he was closely associated with and had great influence over Santiago.  Starks also had and exercised significant influence over numerous other city officials and employees, including Chiverton and Harris, and he regularly used that significant influence to pressure and advise city officials and employees to take official actions on matters relating to occupational licenses, code enforcement citations and fines, liens, water service and billing, zoning, and city contracting.

Working together, Santiago and Starks solicited and obtained illegal payments from businesses and individuals in Opa Locka.  In exchange for these illegal personal payments,  Santiago, with the assistance of Starks, would take official actions on behalf of the paying businesses and individuals, and would also work with Starks to direct, pressure, and advise Chiverton, Harris, and other City of Opa Locka employees to take official actions on behalf of those businesses and individuals.  These official actions included, but were not limited to, issuing occupational licenses; waiving, removing, and settling code enforcement matters and liens; initiating, restoring and continuing water service; reducing and eliminating water service billing balances; assisting with zoning issues; and assisting with obtaining city contracts.

Starks also is charged with participating in a conspiracy with Santiago and others to receive bribes in exchange for ensuring that a particular company received a city contract.   According to the Indictment, in April 2015, the City of Opa Locka published a Request for Proposals (“RFP”) seeking bids from licensed and experienced towing firms seeking multi-year non-exclusive contracts to provide Opa Locka with citywide towing services.  Shortly after this RFP was published, then-City Commissioner Santiago and Starks met with Raul Sosa Sr. (“Sosa Sr.”), who agreed to pay them a $10,000 bribe to ensure that the company Sosa Sr. was associated with, referred to as the “Towing Company,” was selected as one of the companies receiving a city towing contract.During this meeting, Sosa Sr. paid the first installment of the bribe and designated his son, Raul Sosa Jr. (“Sosa Jr.”), the Towing Company’s manager, as the person who would work with Santiago and Starks to carry out the illegal arrangement.

The Indictment further alleges that Starks arranged for Opa Locka’s Purchasing Director to assemble and prepare the Towing Company’s bid package.  After this bid was submitted, Starks violated the city’s purchasing Cone of Silence rule by contacting a member of the city’s committee evaluating the towing bids and directing that individual to rank the Towing Company as the number one company.  While this process was ongoing, Sosa Jr. made additional partial payments of the agreed $10,000 bribe.  To complete the illegal arrangement, at the June 24, 2015, City Commission meeting, Santiago used his position as a City Commissioner to vote in favor of the resolution authorizing the City Manager to enter into towing contracts with the Towing Company and three other companies.  The final installment of the bribe was paid after the City Commission voted to award a contract to the Towing Company.

In addition, Starks was charged in the Indictment with failing to file federal income tax returns for tax years 2014, 2015 and 2016. 

Related cases arising from the Opa Locka corruption investigation are the following:

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).  Santiago was sentenced to 51 months in prison. 

Chiverton previously pled guilty to conspiring to commit Federal programs bribery and Hobbs Act extortion under color of official right (Case No. 16-20596-CR).  Chiverton was sentenced to 38 months in prison.

Harris previously pled guilty to conspiring to commit Federal programs bribery and Hobbs Act extortion under color of official right (Case No. 16-20589-CR-BLOOM).  Harris was the first defendant to plead guilty to charges arising from this investigation, and received a sentence of probation. 

Sosa Sr. and Sosa Jr. have been charged by Indictment with conspiracy to commit Federal programs bribery and substantive counts of Federal programs bribery (Case No. 18-20256-CR).  Their case is pending before U.S. District Judge Jose E. 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 U.S. Attorneys Edward N. Stamm and Maurice Johnson.

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.

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 Miami, Florida man was sentenced to 97 months in prison today for his role in an approximately $10 million health care fraud scheme involving a now-defunct home health clinic and two sham physical rehabilitation clinics located in Miami. 

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, Special Agent in Charge Robert F. Lasky of the FBI’s Miami Field Office, Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office and Special Agent in Charge Brian Swain of the U.S. Secret Service’s (USSS) Miami Field Office made the announcement.

Vladimir Prado Sr., 52, was sentenced by U.S. District Judge Robert N. Scola of the Southern District of Florida.  Judge Scola also ordered Prado to serve three years of supervised release following his prison sentence and pay $4,001,499 in restitution, jointly and severally with his co-defendants.  Prado pleaded guilty on Feb. 2, to one count of conspiracy to commit health care fraud and wire fraud charged in an October 2017 superseding indictment and to one count of conspiracy to commit health care fraud and wire fraud charged in a November 2017 indictment. 

In connection with the October 2017 charges, Prado admitted that he owned a Miami medical clinic that submitted approximately $5 million in false and fraudulent claims to Blue Cross Blue Shield, resulting in payments to the clinic totaling approximately $2.6 million.   

In connection with the November 2017 charges, Prado admitted that he was a co-owner of a Miami rehabilitation clinic that submitted approximately $2.6 million in false and fraudulent claims to Blue Cross Blue Shield, resulting in payments to the clinic totaling approximately $1.4 million.  Prado further admitted that he also provided the money to purchase a fraudulent home health agency.  Prado also admitted that from December 2012 through April 2014, he and his co-conspirators submitted to the Medicare program, via interstate wires, approximately $2.2 million in claims for reimbursement, which falsely and fraudulently represented that various home health care benefits were medically necessary, prescribed by a doctor and provided to Medicare beneficiaries.  As a result of these false and fraudulent claims, Medicare made payments to the corporate bank accounts of the home health agency in the approximate amount of $3.9 million, Prado admitted. 

The cases were investigated by the FBI, HHS-OIG and USSS and were brought by the U.S. Attorney’s Office for the Southern District of Florida and by the Criminal Division’s Fraud Section, as part of the Medicare Fraud Strike Force.  Assistant U.S. Attorney Christopher J. Clark of the Southern District of Florida and Trial Attorney Adam G. Yoffie of the Fraud Section are prosecuting the case.

The Medicare Fraud Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.  The Medicare Fraud Strike Force operates in nine locations nationwide.  Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion. 

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

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Amos Rojas, Jr., United States Marshal, U.S. Marshals Service (USMS), and William D. Snyder, Sheriff, Martin County Sheriff's Office (MCSO), announced that Michael Gene Justus, who had failed to register as a sex offender, was sentenced by U.S. District Court Judge Robin L. Rosenberg to 27 months in federal prison. 

On February 14, 2018, Justus pled guilty to two counts of Failure to Register as a Sex Offender, in violation of Title 18, United States Code, Section 2250.  As part of his federal sentence, Justus will be placed on 5 years of supervised release and is again ordered to register as a sex offender.

According to the court record, on April 1, 1996, in Carroll County, Indiana, Defendant Justus was convicted and sentenced to prison for molesting a child.  On January 5, 2001, Justus was released from prison.  Following his release from incarceration, Justus was to abide by the Sex Offender Registration and Notification Act (SORNA) requirements.

SORNA provides a comprehensive set of federal standards for sex offender registration and notification in the United States through the nationwide network of sex offender registration and notification programs. Additionally, SORNA requires registered sex offenders to register and keep their registration current in each jurisdiction in which they reside, work, or go to school, and to make periodic in-person appearances to verify and update their registration information.

After his initial release from prison, Justus registered as a sex offender in a number of states.  He was working with a carnival company, living out of a van, and traveling.  In January of 2013, Justus lived in a van parked at a residence in Stuart, Florida, and failed to provide this information to the Florida Sex Offender Registry.   He then moved out of state and registered as a sex offender in Louisiana and Texas.  From September 29, 2017 to October 17, 2017, Justus returned to the residence in Stuart, Florida and again failed to notify the Florida Sex Offender Registry.    

Mr. Greenberg commended the investigative efforts of the USMS and MCSO in this matter.  This case was prosecuted by Assistant U.S. Attorney Carmen Lineberger.

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

 

 

Richard Rodriguez Gray, 34, of Overtown, was sentenced yesterday in Miami, Florida, by U.S. District Court Judge Jose E. Martinez of the Southern District of Florida, to 15 years in prison, 25 years of supervised release, and sex offender conditions, including compliance with the Adam Walsh Act requirement that Gray register as a sex offender for life.  Gray previously pled guilty to sex trafficking a minor.

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), made the announcement.

According to the court record, on November 28, 2017, Gray posted an advertisement on www.backpage.com, in the South Escort section of the South Florida Adult Entertainment portion of the website. The advertisement included two, clothed pictures of a 16-year old minor victim and provided contact information for Gray.

On or about December 7, 2017, law enforcement, in an undercover capacity (“UC”) responded to the advertisement posted on www.backpage.com as an interested client by sending text messages to the telephone number that Gray posted.  Gray and the UC agreed that the minor victim would have sex with the UC for one hour for approximately $250.  Gray and the UC further agreed that the UC could meet the minor victim in a motel room in Miami, Florida.

On December 8, 2017, at approximately 1:00 a.m., Gray and the minor victim arrived at the motel, where law enforcement was waiting to recover the minor. Gray had escorted the minor victim to the hotel to engage in prostitution.  Gray was taken into custody at the hotel. 

Mr. Greenberg commended the investigative efforts of the FBI.  Mr. Greenberg also thanked the FBI Child Exploitation Task Force and Miami-Dade Police Department for their dedication to this matter. This case was prosecuted by Assistant U.S. Attorney Daniel Cervantes.

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

 

Residents of California and Ohio were sentenced to more than five years in federal prison today for trafficking more than fifteen kilograms of methamphetamine into Florida.

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 Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), made the announcement.

Ricardo Zavala, 24, of California, and Jeffery Clevenger, 65, of Ohio, were each sentenced to 78 months in prison, to be followed by 3 years of supervised release, by Senior United States District Judge William J. Zloch.  Previously, Zavala and Clevenger each pled guilty to one count of conspiracy to possess with intent to distribute methamphetamine, in violation to Title 21, United States Code, Sections 846 and 841(b)(1)(A). 

            According to the court record, including information presented at the sentencing hearing, Zavala and Clevenger arranged to travel to the Southern District of Florida from California to sell more than fifteen kilograms of methamphetamine.  The defendants traveled by car to a Broward County hotel with the methamphetamine, on November 20, 2017.  The defendants subsequently transported the narcotics and were taken into custody. 

            Mr. Greenberg commended the investigative efforts of ICE-HSI and BSO.  This case was prosecuted by Assistant U.S. Attorney Randy Katz.

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

A Tampa resident, who was previously convicted at trial, was sentenced to more than 20 years in federal prison for his involvement in a Tricare health care fraud scheme, receiving kickbacks and money laundering.

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, John F. Khin, Special Agent in Charge, Defense Criminal Investigative Services (DCIS), Southeast Field Office, Peter H. Kuehl, Acting Special Agent in Charge, U.S. Food and Drug Administration’s Office of Criminal Investigations (FDA-OCI), Miami Field Office, and Frank Robey, Director, U.S. Army Criminal Investigation Command’s (CID) Major Procurement Fraud Unit, made the announcement. 

Monty Ray Grow, 46, of Tampa, was sentenced by United States District Judge Federico A. Moreno to 262 months in prison and ordered to pay approximately $18 million in restitution.  On February 5, 2018, a federal jury in Miami convicted Grow, of 18 criminal charges, including: conspiracy to commit health care fraud, in violation of Title 18, United States Code, Section 1347; conspiracy to pay and receive health care kickbacks, in violation of Title 18, United States Code,  371; unlawful receipt of health care kickbacks, in violation of Title 42, United States Code, Section 1320a-7(b)(1)(A); and money laundering, in violation of Title 18, United States Code, Section 1957. 

Evidence presented at trial established that during an eight-month period in 2014-15, Grow participated in a scheme to defraud the Tricare program out of tens of millions of dollars. Tricare is the health care program for the U.S. military that pays the health care costs of active and retired military personnel and their families. That insurance benefit includes paying for any medications that a Tricare beneficiary needs.  Defendant Grow enticed Tricare beneficiaries to order very expensive drugs that they did not need. Tricare, not the patients, paid the bill for these expensive drugs and the pharmacy split fifty percent of the profits with Grow.  Evidence at trial established that Grow targeted Tricare beneficiaries and induced them to order expensive drugs they did not need by paying them either directly for their own prescriptions or indirectly for those of their family and friends.  As a result of the fraudulent scheme, Grow received nearly $20 million in kickbacks from a Broward County pharmacy.

In furtherance of the conspiracy, Grow fraudulently inflated the price the pharmacy would bill to Tricare by manipulating the formulations and selling ingredients to the pharmacy that were artificially engineered in order to maximize profits.  Grow also paid telemedicine companies whose doctors ratified prescriptions the defendant pre-selected, while knowing that doctors never examined a single patient.  Finally, Grow laundered the criminal proceeds of his scheme through the purchase of luxury items. 

To date, at least eight additional co-conspirators have pleaded guilty to federal criminal charges arising out of Grow’s fraud scheme, including Ginger Lay, 40, of Atlanta, Georgia; Paul Robinson, 40, of Ormond Beach, Florida; Deanna Dutting, 40, of Ormond Beach, Florida, Raymond Bear, 46, of Flemming Island, Florida; Robin Halliburton, 45 of Ponte Vedra, Florida; Michael Shane Matthews, 47, of Newberry, Florida, Michael Bowman, 43, of Jacksonville, Florida, and Sven Bjerke, 39, of Jacksonville, Florida.  These individuals have collectively remitted property back to the United States valued in the approximate amount of $4 million.  Mr. Greenberg commended the investigative efforts of DCIS, FDA-OCI and U.S. Army CID.  This case was prosecuted by Assistant United States Attorneys Kevin J. Larsen and Jon Juenger.

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 resident was sentenced today to more than 2 years in federal prison for assaulting Customs and Border Protection and Transportation Security Administration officers at Miami International Airport in the fall of 2017.

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); Diane J. Sabatino, Director, Field Operations, Customs and Border Protection (CBP); and Daniel Ronan, Federal Security Director Miami International Airport, Transportation Security Administration (TSA), made the announcement.  

Nivaldo Emilio Lopez, 33, of Miami, was sentenced by United States District Court Judge Cecilia M. Altonaga to 27 months in prison, to be followed by 3 years of supervised release and was ordered to pay $9,172 in restitution.  Lopez previously pled guilty to two counts of assaulting, resisting, or impeding certain federal employees, in violation of Title 18, United States Code, Section 111.

According to the court record, on October 25, 2017, Lopez drove to Miami International Airport, left his vehicle curbside at Terminal D, and entered the airport.  Once inside, Lopez began walking back and forth between checkpoints, waving his arms in the air and yelling loudly.  Lopez also made statements to the effect that he was going to blow up the airport. 

A concerned passenger notified law enforcement of Lopez’s conduct.  A CBP officer responded and attempted to deescalate the situation.  Lopez, however, became more aggressive and began yelling at the CBP officer.  The officer put his baton at his side, at which point Lopez attacked the officer.  The defendant struck the CBP officer in the head and a struggle ensued.  During the struggle, Lopez bit the CBP officer’s hand, causing injuries that required medical attention at a local hospital.

During the course of the attack, an on-duty TSA officer working in Terminal D stepped in to help the CBP officer subdue the defendant.  Lopez, however, continued to be aggressive, and struck the TSA officer in the face with a trashcan lid.  Miami-Dade Police Department officers responded to the scene and used a taser to finally subdue the defendant.

Mr. Greenberg commended the investigative efforts of ICE-HSI and thanked CBP, TSA and the Miami-Dade Police Department for their assistance in this matter.  This case was 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 or on http://pacer.flsd.uscourts.gov.

            A South Florida resident pleaded guilty yesterday to wire fraud, in connection with purported hurricane relief aid for Puerto Rico.

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida and Brian Swain, Special Agent in Charge, United States Secret Service (USSS), made the announcement. 

Emilio I. Vazquez, 47, of Coral Gables, Florida, plead guilty to a single count of wire fraud, in violation of Title 18, United States Code, Section 1343.  The defendant faces a maximum sentence of twenty years in prison.  Vazquez is scheduled to be sentenced on June 27, 2018, at 9:30 a.m., by United States District Court Judge Robert N. Scola.     

In or around September 2017, Vazquez contacted a group of volunteers working to provide hurricane relief aid to Puerto Rico.  Vazquez claimed that he was part of the Serralles family, who are the owners of Destileria Serralles, which distills, manufactures, bottles and distributes Don Q rum in Puerto Rico. Vazquez claimed to have significant resources and the ability to rent warehouses, and charter planes and trucks to transport relief supplies.

In or around September 2017, Vazquez, using the name Emilio Serralles, contacted Commercial Property Group in Doral, Florida, regarding the rental of warehouse space.  The warehouse space was purportedly to be used to store relief supplies for Puerto Rico.  On or about September 29, 2017, Vazquez provided Commercial Property Group with a counterfeit and fraudulent UBS bank cashier’s check for $122,050.50, to pay for the warehouse space. The next day, Vazquez signed a lease under the name Emilio Serralles, renting five warehouse spaces from Commercial Property Group. 

In or around October 2017, Vazquez contacted Miami Air International, a local charter airline, as Emilio Serralles and claimed to own a company called Puerto Rico Relief Committee.  Subsequently, Vazquez chartered multiple flights from Miami to Puerto Rico to purportedly deliver relief supplies.  As payment for these flights, Vazquez provided a counterfeit and fraudulent American Express Centurion Bank cashier’s check for $564,036.05 to Miami Air International.

Mr. Greenberg commends the investigative efforts of the USSS.  This case is being prosecuted by Assistant United States Attorney Joshua S. Rothstein. 

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

A federal grand jury sitting in Miami, Florida, returned an indictment on Tuesday, April 10 charging a Miami, Florida, certified public accountant with tax evasion, failing to file tax returns and failing to pay over payroll taxes to the Internal Revenue Service (IRS), announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida.

 

According to the indictment, Darryl Sharpton owned The Sharpton Group, a Miami-based public accounting firm that specialized in financial and management consulting, audit and attestation, and tax and wealth planning.  Sharpton allegedly filed personal income tax returns for the years 2004 through 2008 and 2010, but failed to pay the reported taxes.  Sharpton is further alleged to have failed to file personal income tax returns for years 2011 through 2016 despite his obligation to do so.

 

The indictment charges that after Sharpton failed to pay his taxes, the IRS audited and assessed additional taxes against him and issued levies and liens in further effort to collect the unpaid taxes.  Sharpton allegedly responded by removing himself from his company’s payroll, paying his personal expenses through the corporate bank accounts, and lying to an IRS collections official. 

 

In addition, the indictment alleges that Sharpton failed to timely pay over to the IRS payroll taxes that he withheld from the paychecks of The Sharpton Group’s employees.  

 

If convicted, Sharpton faces a statutory maximum sentence of five years in prison for the tax evasion charge, five years in prison for each count of failing to pay over payroll taxes, and one year in prison for each count of failing to file tax returns.  He also faces a period of supervised release, restitution and monetary penalties.  An indictment merely alleges that a crime has been committed.  A defendant is presumed innocent until proven guilty beyond a reasonable doubt.

 

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Greenberg commended special agents of IRS Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Christopher Clark and Tax Division Trial Attorneys Sean Beaty, Mara Strier, and Charles M. Edgar, Jr., who are prosecuting the case. 

 

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

An Aruban official residing in Florida pleaded guilty today to money laundering charges in connection with his role in a scheme to arrange and receive corrupt payments to influence the awarding of contracts with an Aruban state-owned telecommunications corporation.

 

Acting Assistant Attorney General John P. Cronan of the Department of Justice’s Criminal Division, U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida and Special Agent in Charge Robert F. Lasky of the FBI’s Miami Field Office made the announcement.

 

Egbert Yvan Ferdinand Koolman, 49, a Dutch citizen residing in Miami, Florida, was an official of Servicio di Telecommunicacion di Aruba N.V. (Setar), an instrumentality of the Aruban government.  Koolman pleaded guilty before U.S. District Judge Frederico A. Moreno of the Southern District of Florida to one count of conspiracy to commit money laundering.  He is scheduled to be sentenced on June 27.

 

In connection with the scheme, Lawrence W. Parker, Jr., 42, of Miami, pleaded guilty on Dec. 28, 2017 to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and to commit wire fraud.  Parker’s sentencing is scheduled for April 30.

 

According to admissions made as part of his plea agreement, between 2005 and 2016, Koolman operated a money laundering conspiracy from his position as Setar’s product manager.  Koolman admitted that, as part of the scheme, he conspired with Parker and others to transmit funds from Florida and elsewhere in the United States to Aruba and Panama with the intent to promote a wire fraud scheme and a corrupt scheme that violated the FCPA.  Koolman was promised and received bribes from individuals and companies located in the United States and abroad in exchange for using his position at Setar to award lucrative mobile phone and accessory contracts, he admitted.  He received the corrupt payments via wire transfer from banks located in the United States, in cash during meetings in Miami and in Aruba, and by withdrawing cash in Aruba using a bankcard that drew money from a United States-based bank account, he further admitted.  In exchange for the more than $1.3 million in corrupt payments that he received, Koolman also admitted providing favored vendors with Setar’s confidential information.

 

The FBI’s International Corruption Squads is investigating the case.  Trial Attorneys Jonathan Robell and Vanessa Snyder of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Lois Foster-Steers of the Southern District of Florida are prosecuting the case.  The Criminal Division’s Office of International Affairs also provided significant assistance.

 

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

An Aruban official residing in Florida pleaded guilty today to money laundering charges in connection with his role in a scheme to arrange and receive corrupt payments to influence the awarding of contracts with an Aruban state-owned telecommunications corporation.

U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida, Acting Assistant Attorney General John P. Cronan of the Department of Justice’s Criminal Division and Special Agent in Robert F. Lasky of the FBI’s Miami Field Office made the announcement.

Egbert Yvan Ferdinand Koolman, 49, a Dutch citizen residing in Miami, Florida, was an official of Servicio di Telecommunicacion di Aruba N.V. (Setar), an instrumentality of the Aruban government.  Koolman pleaded guilty before U.S. District Judge Frederico A. Moreno of the Southern District of Florida to one count of conspiracy to commit money laundering.  He is scheduled to be sentenced on June 27.

In connection with the scheme, Lawrence W. Parker, Jr., 42, of Miami, pleaded guilty on Dec. 28, 2017 to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and to commit wire fraud.  Parker’s sentencing is scheduled for April 30.

According to admissions made as part of his plea agreement, between 2005 and 2016, Koolman operated a money laundering conspiracy from his position as Setar’s product manager.  Koolman admitted that, as part of the scheme, he conspired with Parker and others to transmit funds from Florida and elsewhere in the United States to Aruba and Panama with the intent to promote a wire fraud scheme and a corrupt scheme that violated the FCPA.  Koolman was promised and received bribes from individuals and companies located in the United States and abroad in exchange for using his position at Setar to award lucrative mobile phone and accessory contracts, he admitted.  He received the corrupt payments via wire transfer from banks located in the United States, in cash during meetings in Miami and in Aruba, and by withdrawing cash in Aruba using a bankcard that drew money from a United States-based bank account, he further admitted.  In exchange for the more than $1.3 million in corrupt payments that he received, Koolman also admitted providing favored vendors with Setar’s confidential information.

The FBI is investigating the case.  Assistant U.S. Attorney Lois Foster-Steers of the Southern District of Florida and Trial Attorneys Jonathan Robell and Vanessa Snyder of the Criminal Division’s Fraud Section are prosecuting the case.  The Criminal Division’s Office of International Affairs also provided significant assistance.

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

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

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 Angel M. Melendez, Special Agent in Charge, ICE-HSI, New York Field Office, announce that a federal grand jury in the Southern District of Florida returned an indictment, on April 6, 2018, charging ten people with offenses including conspiracy to commit access device fraud (credit card fraud), trafficking in counterfeit access devices, use of one or more unauthorized access devices, possession of fifteen or more unauthorized access devices, aggravated identity theft, conspiracy to commit money laundering, and money laundering.  This matter is assigned to United States District Court Judge Marcia G. Cooke (Case No. 18-CR-20269).

According to allegations in the indictment, Noe Reina De La Cruz, 27, of Doral, Florida; Raul Gil-Rodriguez, 35, of Paramus, New Jersey; Ney Antonio Lopez De La Cruz, 24, of Doral, Florida; Domingo Reyes, 40, of Doral, Florida; Yousef Michi, 34, of Brooklyn, New York; Esteban Ochoa, 34, of New York; Vantroy Sanchez, 39, of New York, New York; Jeffrey Batista, 27, of New York, New York; Carlos David Franco, 30, of Miami, Florida; and Pedro De La Cruz, 48, of Bronx, New York, used the personal identifying information of other individuals to open credit card accounts without the victims’ knowledge or consent.  The conspirators used the fraudulently obtained credit cards to purchase electronics, home goods, expensive designer shoes, travel, spa services, and medical procedures for themselves and others.  Some of the conspirators would also resell some of the fraudulently obtained goods, for a percentage of their face value, to Yousef Michi and Carlos David Franco, in order to obtain cash, checks, or wire transfers to Royal Elite Investments Corp., a shell company that Noe Reina De La Cruz controlled.

If convicted of the charged conduct the maximum possible sentences are as follows: conspiracy to commit access device fraud is 5 years in prison; conspiracy to commit money laundering is 20 years in prison; trafficking in counterfeit access devices is ten years in prison; use of one or more unauthorized access devices is ten years in prison; possession of fifteen or more unauthorized access devices is ten years in prison; and the aggravated identity theft charges carry a mandatory term of two years in prison, to run consecutive to the other crimes of conviction.

U.S. Attorney Greenberg commended the investigative efforts of ICE-HSI in this matter.  This case is being prosecuted by Southern District of Florida Assistant U.S. Attorneys Lisa H. Miller and Nalina Sombuntham.

An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and 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.

 

A TSA employee appeared in federal court today to face 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 Investigation (FBI), Miami Field Office, and W. Howard Harrison, Chief Plantation Police Department, made the announcement.

Gary Linder, Jr., 27, of Ft. Lauderdale, was arrested and charged, by criminal complaint, with attempted production of child pornography and sending obscene material to a minor, in violation of, Title 18, United States Code, Sections 3351(a) and 1470.  Linder had his initial appearance, today, before United States Magistrate Judge Lurana S. Snow.  During the initial hearing, Linder was identified as a TSA employee.  A detention hearing is scheduled in this matter for May 10, 2018, before United States Magistrate Judge Barry S. Seltzer.

According to the court docket, including the criminal complaint, in February of 2018, Linder initially began communicating with an eleven year old via text message.  The phone was turned over to law enforcement, and over the course of several months Linder sent obscene material and discussed sexually explicit content with the individual he believed to be the minor child, via text message.  On several occasions, Linder requested nude photos of the minor child engaged in sex acts. 

Mr. Greenberg commended the investigative efforts of the FBI, including the FBI Miami Child Exploitation Task Force, and the Plantation Police Department.  Mr. Greenberg also thanked the Coral Springs Police Department and Miramar Police Department for their assistance.  This case is being prosecuted by Assistant U.S. Attorney Jodi L. Anton.

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

A federal grand jury sitting in Miami, Florida, returned an indictment on Tuesday, Apr. 10 charging a Miami, Florida, certified public accountant with tax evasion, failing to file tax returns and failing to pay over payroll taxes to the Internal Revenue Service (IRS), announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida.

According to the indictment, Darryl Sharpton owned The Sharpton Group, a Miami-based public accounting firm that specialized in financial and management consulting, audit and attestation, and tax and wealth planning.  Sharpton allegedly filed personal income tax returns for the years 2004 through 2008 and 2010, but failed to pay the reported taxes.  Sharpton is further alleged to have failed to file personal income tax returns for years 2011 through 2016 despite his obligation to do so.

The indictment charges that after Sharpton failed to pay his taxes, the IRS audited and assessed additional taxes against him and issued levies and liens in further effort to collect the unpaid taxes.  Sharpton allegedly responded by removing himself from his company’s payroll, paying his personal expenses through the corporate bank accounts, and lying to an IRS collections official. 

In addition, the indictment alleges that Sharpton failed to timely pay over to the IRS payroll taxes that he withheld from the paychecks of The Sharpton Group’s employees.  

If convicted, Sharpton faces a statutory maximum sentence of five years in prison for the tax evasion charge, five years in prison for each count of failing to pay over payroll taxes, and one year in prison for each count of failing to file tax returns.  He also faces a period of supervised release, restitution and monetary penalties.  An indictment merely alleges that a crime has been committed.  A defendant is presumed innocent until proven guilty beyond a reasonable doubt.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Greenberg commended special agents of IRS Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Christopher Clark and Tax Division Trial Attorneys Sean Beaty, Mara Strier, and Charles M. Edgar, Jr., who are prosecuting the case. 

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida; Luis J. Santiago, Special Agent in Charge, United States Fish and Wildlife Service (USFWS), Office of Law Enforcement, Southeast Region; Alfredo Escanio, Major/Regional Commander, Florida Fish and Wildlife Conservation Commission (FWC), Division of Law Enforcement, South B Region; Martin G. Wade, Director, Customs and Border Protection (CBP) Air and Marine Operations, Miami Air and Marine Branch; Pedro Ramos, Superintendent, Everglades and Dry Tortugas National Parks (NPS); and Antonio J. Gomez, Postal Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Division, announce the filing of federal charges against 6 defendants in 6 separate cases for their involvement with the trafficking of over 400 migratory birds.

In 1918, Congress enacted the Migratory Bird Treaty Act (MBTA) for the protection of migratory birds.  Now in its 100th year, the MBTA prohibits, inter alia, the pursuit, hunting, taking, capture, killing, possession, sale, barter, purchase, shipping, exportation, and importation of migratory birds.  Migratory birds are listed at Title 50, Code of Federal Regulation, Section 10.13.

Working independently and separately from each other, these six charged defendants used sophisticated methods to traffic protected wildlife, specifically migratory birds.  The methods included bird traps augmented by electronic birdcall broadcast systems powered with solar panels and rechargeable batteries; baited bird traps spread throughout the region as collection points; the erection of mist nets at one end of a field during migration season and the operation of a truck from the other end of the field to flush hundreds of migratory birds into the mist nets; the strategic deployment of specially formulated adhesives to glue migratory birds to tree limbs and sticks; and the hunting of migratory birds, in particular the illegal hunting of raptors with rifles.  They also used traditional smuggling techniques to unlawfully transport the captured wildlife.  These techniques included the shipment of migratory birds to buyers across the country in boxes with hidden compartments; the use of a false name and address on airmail shipments; false statements on customs declarations; and the concealment of the protected wildlife in hair curlers taped to a defendant’s body, beneath baggy pants. 

In some instances, the wildlife trafficking in these cases involved severe animal cruelty and resulted in injury to the birds.  Some of the trafficked birds showed signs of having sustained injuries while attempting to flee captivity.  Some of the birds, specifically some of the hawks, were actually dead at the time of sale and other birds died shortly after purchase.  One defendant left the captured birds entangled in netting, where they were preyed upon by wild dogs and cats.  Another defendant maimed some of the migratory birds by ripping out their tail feathers.  A third defendant, believing that a Loggerhead Shrike (Lanius ludovicianus) was a threat to his inventory of migratory birds for sale, threw the animal against a wall and affixed it to a wooden cross.  The defendant filmed this activity and uploaded the images onto a private internet chat group that he used to advertise migratory birds for sale.

In the course of these investigations, undercover USFWS and FWC agents purchased and/or seized migratory birds from all six of these defendants.  After a determination that the release of the seized wildlife is safe and appropriate, USFWS will return hundreds of these birds into the wild. 

“The U.S. Attorney’s Office stands alongside our law enforcement and community partners as we strive to protect our natural resources and wildlife, including the diverse migratory bird population, that make South Florida such a vibrant environmental sanctuary,” stated U.S. Attorney Benjamin G. Greenberg. “Today’s announcement reinforces our continued commitment to the federal prosecution of individuals who pose a threat to our nation’s wildlife, in particular our protected bird species.” 

"The 100th anniversary of the Migratory Birds Treaty Act is a good time to remind Americans of the benefits we all enjoy from a land that is rich in birds and all wildlife,” said Special Agent in Charge Luis Santiago, USFWS Southeast Region’s Office of Law Enforcement. “Our work enforcing this law and others recognizes the value Americans place on wildlife, and it is important to make sure that future generations can enjoy these as well.”

“We are honored to have been a part of these important enforcement efforts,” stated Major Alfredo Escanio, FWC Regional Commander. “We want to get the word out that these birds are protected, and ask the public to let us know if they see anyone trying to trap or sell these birds.”

“As fellow aviators, we at CBP Air and Marine Operations (AMO) were particularly excited to participate in this case, to help set these ‘ornery’ birds free to fly again.  AMO uses its specialized capabilities to serve and protect the American people.  That includes working with our partners to enforce hundreds of U.S. laws, including the 1918 Migratory Bird Treaty Act,” said Jeff Maher, Deputy Director, CBP Air Operations at the Miami Air and Marine Branch.

"The American people are investing billions of dollars to restore the Everglades and this kind of illegal poaching activity cannot be tolerated,” stated NPS Superintendent Pedro Ramos. “I am grateful to all of our partner agencies, the investigators, and the Department of Justice professionals who have worked on these important cases.  Through their hard work, not only are we able to protect important species of birds, but also protect the investments being made in Everglades restoration ultimately for the benefit of future generations." 

“As shown through this announcement, violations of the Migratory Bird Treaty threaten the livelihood of innocent animals,” said Antonio J. Gomez, Inspector in Charge, USPIS Miami Division. “This case demonstrates that the U.S. Postal Inspection Service will continue to work tirelessly with our partners to enforce all federal laws that are in place to protect U.S. residents and wildlife.  We are proud that our collaborative efforts were successful in bringing justice to the animals horrifically harmed and removed from their natural habitats.”

Today’s announcement reaffirms the collective commitment of federal, state and local authorities to the prosecution of wildlife traffickers. The cases brought under this operation include: 

1. United States v. Juan Carlos Rodriguez, a/k/a “El Doctor,”
   Case No. 18-CR-20141-MOORE

On March 1, 2018, Juan Carlos Rodriguez, 54, of Homestead, was charged in an eighteen-count indictment with selling, offering for sale, bartering, and offering to barter migratory birds.

According to the indictment, between May 2014 and November 2016, Rodriguez trafficked in migratory birds, including Puerto Rican Spindalises (Spindalis portoricensis), Northern Cardinals (Cardinalis cardinalis), Puerto Rican Bullfinches (Loxigilla portoricensis), Yellow-faced Grassquits (Tiaris olivaceus), Blue Grosbeaks (Passerina caerulea), Indigo Buntings (Passerina cyanea), Cooper’s Hawks (Accipiter cooperii), Bobolinks (Dolichonyx oryzivorus), Red-shouldered Hawks (Buteo lineatus), Gray Catbirds (Dumetella carolinensis), Painted Buntings (Passerina ciris), Summer Tanagers (Piranga rubra), Screech-Owls (genus Megascops), and Sharp-shinned Hawks (Accipiter striatus).  

Mr. Greenberg commended the investigative efforts of the USFWS, FWC, CBP, CBP Air and Marine Operations and USPIS in this matter.  This case is being prosecuted by Assistant U.S. Attorney Jaime Raich.

1. United States v. Miguel Loureiro, Case No. 18-CR-20164-MARTINEZ

On March 8, 2018, Miguel Loureiro, 27, of Homestead, was charged in a thirty-six-count indictment for participating in a conspiracy to take migratory birds for commercial purposes, selling and offering migratory birds for sale, and taking migratory birds.

According to the allegations contained in the indictment, beginning in January 2016 and ending in December 2017, Loureiro and a co-conspirator trafficked in migratory birds, including Indigo Buntings (Passerina cyanea), Blue Grosbeaks (Passerina caerulea), Rose-breasted Grosbeaks (Pheucticus ludovicianus), Painted Buntings (Passerina ciris), White-crowned Sparrows (Zonotrichia leucophrys), Clay-colored Sparrows (Spizella palida), and Grasshopper Sparrows (Ammodramus savannarum). 

Mr. Greenberg commended the investigative efforts of the USFWS, FWC, and NPS.  This case is being prosecuted by Assistant U.S. Attorney Jaime Raich.

1. United States v. Hovary Muniz, Case No. 18-MJ-2496-SIMONTON 

On April 3, 2018, Hovary Muniz, 42, of Miami, was charged by criminal complaint with knowingly selling and offering migratory birds for sale.

According to the criminal complaint, Muniz pled guilty in 2016 to smuggling migratory birds from Cuba into the United States in a fanny pack.  In 2017 and 2018, while on probation for the wildlife trafficking offense, Muniz offered Yellow-faced Grassquits (Tiaris olivacea), a Lazuli Bunting (Passerina amoena), and other migratory birds for sale.

Mr. Greenberg commended the investigative efforts of the USFWS and CBP in this matter.  This case is being prosecuted by Assistant U.S. Attorneys Jaime Raich and Tom Watts-FitzGerald. 

1. United States v. Corbo Martinez,  Case No. 17-CR-20596-WILLIAMS 

On August 24, 2017, Alberto Iran Corbo Martinez, 38, of Hialeah, was charged in a three-count indictment with smuggling goods into the United States and using a false document.

According to the indictment, Corbo Martinez imported Cuban Bullfinches (Melopyrrha nigra) and a Yellow-faced Grassquit (Tiaris olivaceous) from Cuba.  He concealed those importations by hiding the birds in hair curlers taped to his legs, beneath baggy pants, and by making false declarations on customs forms.

Mr. Greenberg commends the investigative efforts of the USFWS and CBP in this matter.  This case is being prosecuted by Assistant U.S. Attorney Tom Watts-FitzGerald.

1. United States v. Reynaldo Mederos, Case No. 18-CR-20140-LENARD

On March 1, 2018, Reynaldo Mederos, 28, of Miami, was charged in a seven-count indictment with selling and offering to sell migratory birds.

According to the indictment and publicly available documents, beginning in July 2016 and ending in November 16, 2017, Mederos trafficked in migratory birds, including Indigo Buntings (Passerina cyanea), Painted Buntings (Passerina ciris), and Blue Grosbeaks (Passerina caerulea). 

Mr. Greenberg commended the investigative efforts of the USFWS in this matter.  This case is being prosecuted by Assistant U.S. Attorney Jaime Raich.

1. United States v. Carlos Hernandez, Case No. 17-CR-20759-MARTINEZ

On October 26, 2017, Carlos Hernandez, 34, of Miami, was charged in a six-count indictment with trapping, selling, and offering to sell migratory birds.

According to the indictment and publicly available documents, beginning in January 2016 and ending in April 2017, Hernandez trapped and trafficked in migratory birds, including Blue Grosbeaks (Passerina caerulea).

Mr. Greenberg commended the investigative efforts of the USFWS and FWC in this matter.  This case is being prosecuted by Assistant U.S. Attorney Jaime Raich.

 If convicted of the charged conduct, the defendants each face a possible maximum statutory sentence of 5 years in prison for the conspiracy charges and 2 years in prison for trafficking in  migratory birds, in violation of the Migratory Bird Treaty Act. 

An indictment or a criminal complaint is an accusatory instrument that contains formal charges against a defendant.  All persons charged in an indictment or criminal complaint are presumed innocent, unless and until proven guilty in a court of law.

The public is encouraged to report any instances of illegal wildlife trapping and trafficking to the Florida Fish and Wildlife Conservation Commission (FWC) at 888-404-3922 or by email or text to Tip@MyFWC.com.

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, as the Department of Justice recognizes the 50th Anniversary of the Fair Housing Act, Attorney General Jeff Sessions announced the nationwide rollout of an initiative aimed at increasing awareness and reporting of sexual harassment in housing. The announcement includes an interagency task force between the Department of Housing and Urban Development (HUD) and the Justice Department to combat sexual harassment in housing, an outreach toolkit, and a public awareness campaign. This three-pronged approach will strengthen the Department’s efforts to combat sexual harassment in housing.  Under the leadership of Benjamin G. Greenberg, the U.S. Attorney’s Office for the Southern District of Florida supports this important initiative.    

“Sexual harassment in housing is illegal, immoral, and unacceptable," said Attorney General Sessions. “It is all too common today, as too many landlords, managers, and their employees attempt to prey on vulnerable women. We will not hesitate to pursue these predators and enforce the law. In October, I ordered a new initiative to bring more of these cases, and we have already won relief for 15 victims. Today we announce three new steps to make the initiative more effective and to win more cases. I want to thank the dedicated and committed professionals in our Civil Rights Division and our partners in the Department of Housing and Urban Development for their hard work in this effort. We will continue to aggressively pursue harassers, because everyone has a right to be safe in their home.”

“All discrimination stains the very fabric of our nation, but HUD is especially focused on protecting the right of everyone to feel safe and secure in their homes, free from unwanted sexual harassment,” said Secretary Ben Carson. “No person should have to tolerate unwanted sexual advances in order to keep a roof over his or her head. Part of our mission at HUD is to provide safe housing and we will remain diligent in this mission to protect those we serve. I look forward to working with Attorney General Sessions and the Department of Justice as part of this task force to bring an end to this type of discrimination.”

“Regardless of who you are, where you live, or where you seek to find housing, everyone in our community has a right to feel safe in their homes, without the threat of sexual harassment or sexual assault while trying to procure or maintain housing,” stated U.S. Attorney Benjamin G. Greenberg. “Through coordinated federal prosecutions, the U.S. Attorney’s Office for the Southern District of Florida will use the full force of the Fair Housing Act (FHA) to go after landlords, property managers, maintenance workers, and anyone else who victimizes tenants and homeowners in violation of the law.  We encourage members of the South Florida community who believe they have been a victim of unlawful discriminatory housing practices to contact the Department of Justice.” 

In October 2017, the Justice Department announced an initiative to combat sexual harassment in housing and launched pilot programs in Washington, D.C. and the Western District of Virginia. The initiative sought to increase the Department’s efforts to protect women from harassment by landlords, property managers, maintenance workers, security guards, and other employees and representatives of rental property owners. During the pilots, the Department developed and tested ways to better connect both with victims of sexual harassment in housing and with those organizations that victims may turn to first for help – including law enforcement, legal services providers, public housing authorities, sexual assault services providers, and shelters.  The Department also tested certain aspects of the initiative in other jurisdictions, including New Jersey, the Central District of California, Massachusetts, Vermont, and Michigan.

The two pilot programs generated an upswing in harassment reporting to the Department from both D.C. and the Western District of Virginia. In D.C., the Department generated six leads since the October 2017 launch. In Virginia, the Department generated three leads. While the Justice Department recognizes that leads and investigations do not always lead to enforcement actions, the pilot program’s results—when extrapolated across all the U.S. Attorney’s Offices across the country—could lead to hundreds of new reports of sexual harassment in housing across the country.

Because of these promising results, the Department is rolling out three major components to the Initiative.

First, the new HUD-DOJ Task Force to Combat Sexual Harassment in Housing will drive a shared strategy between the Department and HUD for combatting sexual harassment in housing across the country. It will focus on five key areas: continued data sharing and analysis, joint development of training, evaluation of public housing complaint mechanisms, coordination of public outreach and press strategy, and review of federal policies.

Second, the outreach toolkit is designed to leverage the Justice Department’s nationwide network of U.S. Attorney’s Offices. The toolkit provides templates, guidance, and checklists based on pilot program feedback. It ultimately will amplify available enforcement resources and help victims of sexual harassment connect with the Department.

Third, the public awareness campaign has three major components: a partnership package with relevant stakeholders, launch of a social media campaign, and Public Service Announcements (PSAs) run by individual U.S. Attorney’s offices.  The campaign is specifically designed to raise awareness, and make it easier for victims all over the country to find resources and report harassment.

More information about the Civil Rights Division and the civil rights laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they may have been victims of sexual harassment in housing should call the Department at 1-844-380-6178, send an e-mail to fairhousing@usdoj.gov, or contact HUD at 1-800-669-9777.  If you have information or questions about any other housing discrimination, you can contact the Department at 1-800-896-7743.

30-Second Public Service Announcement

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30-Second PSA Transcript

60-Second Public Service Announcement

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60-Second PSA Transcript

A Miami escort service owner pleaded guilty today to filing a false tax return, announced U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida and Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division. 

According to court documents, Dennis Zarudny, 40, filed a false individual income tax return for 2011 that underreported his total income from his escort business, Denzar Inc., which did business as “Elite Escort Service” in the Miami area.  Zarudny’s escort service was marketed on the internet as a “prestigious escort agency providing 24 hour outcall escort services & adult entertainment for upscale gentlemen and couples in South Florida.” 

For tax years 2011 through 2014, Zarudny filed false corporate and personal income tax returns with the IRS, which substantially underreported his business’ income.  Zarudny allowed his customers to pay for the escorts’ services by cash, check, and credit card.  Zarudny reported income from credit card transactions, but did not fully report the income he received from customers who paid in cash and check.

U.S. District Judge Jose E. Martinez scheduled sentencing for June 11.  Zarudny faces a statutory maximum sentence of three years in prison, as well as a period of supervised release, monetary penalties and restitution. 

U.S. Attorney Greenberg and Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Joshua Rothstein and Tax Division Trial Attorney Grace Albinson, who are prosecuting this case.

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

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.

A Miami escort service owner pleaded guilty today to filing a false tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida. 

 

According to court documents, Dennis Zarudny, 40, filed a false individual income tax return for 2012 that underreported his total income from his escort business, Denzar Inc., which did business as “Elite Escort Service” in the Miami area.  Zarudny’s escort service was marketed on the internet as a “prestigious escort agency providing 24 hour outcall escort services & adult entertainment for upscale gentlemen and couples in South Florida.” 

 

For tax years 2011 through 2014, Zarudny filed false corporate and personal income tax returns with the IRS, which substantially underreported his business’ income.  Zarudny allowed his customers to pay for the escorts’ services by cash, check, and credit card.  Zarudny reported income from credit card transactions, but did not fully report the income he received from customers who paid in cash and check.

 

U.S. District Judge Jose E. Martinez scheduled sentencing for June 11.  Zarudny faces a statutory maximum sentence of three years in prison, as well as a period of supervised release, monetary penalties, and restitution. 

 

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Greenberg commended special agents of IRS Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Joshua Rothstein and Tax Division Trial Attorney Grace Albinson, who are prosecuting this case.

 

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

Yesterday, Mauricio Alvarez, 49, of Miami, Florida, was ordered to be detained by United States Magistrate Judge Jonathan Goodman on a criminal complaint charging him with misconduct or neglect of a ship officer that resulted in the death of an individual, in violation of Title 18, United States Code, Section 1115.

Benjamin G. Greenberg, United States Attorney of the Southern District of Florida, Thomas Robarge, Special Agent in Charge, United States Coast Guard Investigative Service (CGIS), Southeast Region, and Major Alfredo Escanio, Regional Commander, Florida Fish and Wildlife Conservation Commission (FWC), Division of Law Enforcement, South B Region, made the announcement.

According to the criminal complaint, on April 1, 2018, the United States Coast Guard (USCG) received a report from a Miami-Dade 911 operator that a person was trapped under the motor yacht (M/Y) MIAMI VICE, near Monument Island.  USCG and local law enforcement units arrived at the scene of the reported incident and located M/Y MIAMI VICE adjacent to Monument Island.  An investigation by FWC revealed M/Y MIAMI VICE was chartered for a four-hour period on April 1, 2018 and departed a marina with approximately seven passengers.  The complaint alleges that Alvarez was employed as the vessel captain of M/Y MIAMI VICE and that he had a first mate on board the vessel.  M/Y MIAMI VICE had been chartered for a four-hour trip for $3,000 and Alvarez was to be paid $150 per hour.

According to the complaint, two passengers were reportedly in the water in close proximity to the stern of M/Y MIAMI VICE when Alvarez engaged the engines of M/Y MIAMI VICE in reverse.  Preliminary information indicates that one of the individuals, who was swimming in the water, was struck by M/Y MIAMI VICE’s propellers and killed.  The complaint alleges that Alvarez, as the operator of the M/Y MIAMI VICE, could not see the stern of the vessel or ensure the safety of any remaining swimmers in the water while engaging the engines from this location without assistance from another individual.  The complaint further alleges that Alvarez did not have a United States Captain license at the time of the incident.

Alvarez was arrested on April 6, 2018 at Fort Lauderdale-Hollywood International Airport, as he attempted to board an overseas flight.  The next hearing is scheduled for April 20, 2018.

The charge of misconduct or neglect of a ship officer carries a maximum potential sentence of ten years’ imprisonment.

Mr. Greenberg commended the investigative efforts of CGIS and FWC in this matter.  This case is being prosecuted by Special Assistant U.S. Attorney Emily A. Rose.

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

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

 

Zhelyaz Andreev, 29, a Bulgarian national, was arrested pursuant to an Interpol Red Notice based on an Indictment charging him with: conspiracy to defraud the U.S. Government and substantive violations of the Syria Trade Embargo as enforced through the International Emergency Economic Powers Act (IEEPA); and the U.S. Department of Treasury Office of Foreign Assets Control’s (OFAC’s) designation of Syrian Arab Airlines, aka Syrian Air, as a Specially Designated National (SDN) whose assets are blocked and with whom U.S. nationals are prohibited from transacting business.

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, Special Agent in Charge Robert Luzzi of the Department of Commerce’s Office of Export Enforcement (DOC) Miami Field Office, and the members of the South Florida Joint Terrorism Task Force (JTTF), made the announcement. 

Andreev was charged with conspiracy to violate IEEPA and the OFAC regulations by exporting dual-use goods, that is, articles that have both civilian and military application, to Syrian Arab Airlines, the Syrian government’s airline, which is an entity designated and blocked by OFAC for transporting weapons and ammunition to Syria in conjunction with Hizballah, a terrorist organization, and the Iranian Revolutionary Guard Corps (IRGC). 

According to court documents, Andreev worked in the Bulgaria office of AW-Tronics, a Miami export company, which shipped and exported various aircraft parts and equipment to Syrian Arab Airlines.  Andreev dealt directly with the Syrian Air principals who procured the parts.

Mr. Demers and Mr. Greenberg commended the investigative efforts of the FBI, DOC, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Defense Criminal Investigative Service, U.S. Customs and Border Protection, and the South Florida JTTF.  This case is being prosecuted by Assistant U.S. Attorneys Ricardo Del Toro and Michael Thakur of the Southern District of Florida; and Trial Attorney Matthew Walczewski 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.

Zhelyaz Andreev, 29, a Bulgarian national, was arrested pursuant to an Interpol Red Notice based on an Indictment charging him with: conspiracy to defraud the U.S. Government and substantive violations of the Syria Trade Embargo as enforced through the International Emergency Economic Powers Act (IEEPA); and the U.S. Department of Treasury Office of Foreign Assets Control’s (OFAC) designation of Syrian Arab Airlines, aka Syrian Air, as a Specially Designated National (SDN) whose assets are blocked and with whom U.S. nationals are prohibited from transacting business.

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, Special Agent in Charge Robert Luzzi of the Department of Commerce’s Office of Export Enforcement (DOC) Miami Field Office, and the members of the South Florida Joint Terrorism Task Force (JTTF), made the announcement. 

Andreev was charged with conspiracy to violate IEEPA and the OFAC regulations by exporting dual-use goods, that is, articles that have both civilian and military application, to Syrian Arab Airlines, the Syrian government’s airline, which is an entity designated and blocked by OFAC for transporting weapons and ammunition to Syria in conjunction with Hizballah, a terrorist organization, and the Iranian Revolutionary Guard Corps. 

According to court documents, Andreev worked in the Bulgaria office of AW-Tronics, a Miami export company, which shipped and exported various aircraft parts and equipment to Syrian Arab Airlines.  Andreev dealt directly with the Syrian Air principals who procured the parts.

Mr. Demers and Mr. Greenberg commended the investigative efforts of the FBI, DOC, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Defense Criminal Investigative Service, U.S. Customs and Border Protection, and South Florida JTTF.  This case is being prosecuted by Assistant U.S. Attorneys Ricardo Del Toro and Michael Thakur of the Southern District of Florida; and Trial Attorney Matthew Walczewski of the National Security Division’s Counterintelligence and Export Control Section.

Weguel Legentus, 41, of Oakland Park, Florida, was sentenced yesterday to federal prison for conspiring with his wife and co-defendant, Chantale Baptiste, 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, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI); Dana E. Watson, Chief, Margate Police Department; Scott Israel, Sheriff, Broward Sheriff’s Office (BSO); and Jimmy Patronis, Chief Financial Officer Florida Department of Financial Regulations (OFR), made the announcement.

At sentencing, United States District Judge Darrin P. Gayles sentenced to Legentus to 33 months in prison.  Legentus will serve a three-year term of supervised release at the conclusion of his prison sentence. 

According to publicly filed court documents, Legentus and his wife, co-defendant Chantale Baptiste, 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.

Legentus 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.   Baptiste is scheduled to be sentenced on May 31, 2018. 

Mr. Greenberg commended the investigative efforts of IRS-CI, the Margate Police Department, BSO, and OFR.  Mr. Greenberg also thanked the Ft. Lauderdale Police Department, the Coral Springs Police Department, and the Palm County Sheriff’s Office.  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.

Following his conviction at trial, a North Miami resident was sentenced today to 12 years in prison for his participation in an elaborate automobile fraud scheme that netted over $1.8 million.

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Brian Swain, Special Agent in Charge, United States Secret Service (USSS), and Rick Maglione, Chief, Fort Lauderdale Police Department made the announcement. 

Michael “Mickey” Munday, 72, of North Miami, was sentenced by U.S. District Judge Robert N. Scola, Jr. to 144 months in prison.

On January 17, 2018, Munday was convicted at trial of one count of conspiracy to commit mail fraud, in violation of Title 18, United States Code, Section 1349, and five counts of mail fraud, in violation of Title 18, United States Code, Section 1341.  Nine other co-defendants were indicted and plead guilty in connection with the same scheme.  

The evidence presented at trial established that Munday obtained vehicles from throughout the country using various fraudulent methods.  These methods included, among other things, convincing people who were behind on their car payments to turn over their vehicles to him in exchange for cash, illegally repossessing vehicles, and covertly transporting stolen cars from other states to Florida.  In order to evade detection by law enforcement, Munday and his co-conspirators used several towing and repossession companies as fronts for their illegal activity. 

After Munday and his co-conspirators obtained the vehicles, the automobiles were then hidden from owners, banks and lienholders at a number of locations, including at Munday’s North Miami residence.  While the vehicles were hidden, another co-conspirator prepared and sent, via U.S. mail, false and fraudulent lien notices claiming thousands of dollars in nonexistent tow services to the vehicle owners and true lienholders.  Sham auctions were then held at a strip mall, some of which were facilitated by Munday.  Of the more than 150 cars involved in the scheme, only one car appeared at an “auction,” and there were never any customers.  After the sham auction was held, the conspirators then cleaned the respective car titles by falsely and fraudulently removing the legitimate owners and lienholders from the title.  The cars were then sold to a co-conspirator in the automotive wholesale business at prices below market value and resold for a profit to local dealerships.  Overall, banks suffered more than $1.7 million in loss as a result of the scheme.

During the trial, videos and social media postings were introduced showing Munday bragging about his past experience as a drug smuggler, explaining the effectiveness of tow companies as fronts for smuggling, proclaiming himself the “UPS of the smuggling industry,” and advertising himself as a master of evading law enforcement.

Mr. Greenberg commended the investigative efforts of the USSS and the Fort Lauderdale Police Department.  This case was prosecuted by Assistant United States Attorneys Joshua S. Rothstein and Anne P. McNamara.

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.

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 Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce the latest case to arise from the ongoing Opa Locka municipal corruption investigation.

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, were charged with participating in a conspiracy to pay bribes in order to obtain a contract with the City of Opa Locka. 

Raul Sosa Sr. (“Sosa Sr.”) and Raul Sosa Jr. (“Sosa Jr.”) were charged by indictment with conspiracy to commit Federal programs bribery, in violation of Title 18, United States Code, Section 371, and substantive counts of Federal programs bribery, in violation of Title 18, United States Code, Section 666(a)(2).  If convicted, the defendants face a maximum statutory sentence of five years’ imprisonment for the conspiracy count and ten years’ imprisonment for each of the bribery counts, as well as a fine up to $250,000 per count.

According to the Indictment, in April 2015, the City of Opa Locka published a Request for Proposals (“RFP”) seeking bids from licensed and experienced towing firms seeking multi-year non-exclusive contracts to provide Opa Locka with citywide towing services.  Shortly after this RFP was published, then-City Commissioner Luis Santiago and a co-conspirator met with Sosa Sr., who agreed to pay them a $10,000 bribe to use their positions and influence to ensure that the Towing Company was selected as one of the companies receiving a towing contract with Opa Locka.  During this meeting, Sosa Sr. paid the first installment of the bribe and designated his son, Sosa Jr., as the person who would work with Santiago and the co-conspirator to carry out the illegal arrangement.

The Indictment further alleges that Sosa Jr. made additional bribe payments, and that the co-conspirator arranged for an Opa Locka city employee to assemble and prepare the Towing Company’s bid package.  After this bid was submitted, the co-conspirator 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, at the June 24, 2015, City Commission meeting authorizing the award of the towing contracts, Santiago used his position as a City Commissioner to vote in favor of the resolution authorizing the City Manager to enter into towing contracts with the Towing Company and three other companies.  The final installment of the bribe then was paid the day after the City Commission voted to award the Towing Company a city towing contract.

In a related case, 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).  Santiago was sentenced to 51 months’ imprisonment.

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 U.S. Attorneys Edward N. Stamm and Maurice Johnson.

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.

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

David J. Miller, 45, of Syracuse, New York, was sentenced today to 124 months in prison for stealing over $3.5 million from the City of Miami Beach’s bank account through unauthorized electronic transfers.

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 Daniel J. Oates, Chief, City of Miami Beach Police Department, made the announcement.

At sentencing, United States District Judge Federico A. Moreno ordered Miller to pay $1,563,187 in restitution to the victims of the offense, including the City of Miami Beach.  Miller will serve a five-year term of supervised release at the conclusion of his prison sentence.

According to publicly filed court documents, Miller was responsible for the theft of approximately $3.5 million from the City of Miami Beach’s general depository account at SunTrust Bank. Using funds from the City of Miami Beach’s account, Miller purchased approximately 157 seat licenses at NFL stadiums around the country.  Miller also used stolen funds to purchase season and individual game tickets at NFL games and other sporting events. 

Miller previously pled guilty to bank fraud, in violation of Title 18, United States Code, Section 1344(2), and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). 

Mr. Greenberg commended the investigative efforts of the FBI and the City of Miami Beach Police Department.  This case was prosecuted by Assistant United States Attorneys Christopher B. Browne, Harold E. Schimkat, and Nalina Sombuntham.

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 police officer with the Village of Biscayne Park had his initial appearance today on an indictment in Miami for deprivation of civil rights under color of law against two individuals on separate occasions and for falsifying records in a federal investigation.

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida; Katherine Fernandez Rundle, Miami-Dade State Attorney; Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; and Troy Walker, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), made the announcement. 

Guillermo Ravelo, 37, of Miami, Florida, is charged by indictment with depriving persons of their civil rights under color of law, in violation of Title 18, United States Code, Section 242 (Counts 1 and 3); and falsifying records in a federal investigation, in violation of Title 18, United States Code, Section 1519 (Counts 2 and 4).  If convicted of all charges, Ravelo faces a statutory maximum sentence of twenty years in prison, three years of supervised release, and up to a $250,000 fine.

According to the allegations contained in the indictment, on April 7, 2013, officer Ravelo responded to a request for assistance from another Biscayne Park police officer who had conducted a traffic stop.  During the arrest of the driver, officer Ravelo struck the driver with his fist.  In a separate incident, on June 14, 2013, while still employed as a police officer with the Biscayne Park Police Department, officer Ravelo responded to a call concerning an ongoing vehicle burglary in Biscayne Park and struck the suspect with a blunt object.  Both assaults resulted in bodily injury, and on both occasions officer Ravelo falsified the police reports by misstating the circumstances of the arrests and by omitting that he struck both of the victims.

Mr. Greenberg commended the investigative efforts of the FBI, including the FBI Miami Area Corruption Task Force, and FDLE, and thanked the Miami-Dade State Attorney’s Office for its assistance in this matter.  This case is being prosecuted by Assistant U.S. Attorney Harry C. Wallace, Jr., Department of Justice Trial Attorney Donald W. Tunnage, and Assistant State Attorney Trent Reichling.

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

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

A federal grand jury sitting in Fort Pierce, Florida, has returned an indictment, which was unsealed today, charging a Hobe Sound, Florida, resident with tax evasion, mail fraud, wire fraud, theft of government funds, and Social Security disability fraud announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.

 

According to the indictment, Arthur John Kranz, was a doctor specializing in psychiatry.  Beginning in 2002, Kranz allegedly made a claim on his private disability policy that he was unable to work, and began receiving disability payments from his insurance company.  The indictment further alleges that in December 2003 Kranz submitted an application to the Social Security Administration (SSA) for disability benefits, which was approved.  As part of his application, Kranz agreed to notify the SSA if he returned to work. 

 

The indictment charges that between 2006 and 2013, Kranz worked as a psychiatrist at a hospital in Pennsylvania and earned over $1.6 million in income, but did not report this fact to the SSA or the insurance company.  Moreover, Kranz is alleged to have taken steps to conceal his income from the insurance company, the SSA, and the Internal Revenue Service (IRS) by directing that his income be paid to two nominee corporations, and by not reporting the income from his work as a psychiatrist on his personal tax returns.   

 

The indictment further alleges that during the time Kranz was working, he submitted documents to the insurance company on which he falsely stated that he was not working in order to continue to receive disability payments.  The indictment alleges that in total, Kranz received over $700,000 in fraudulent disability payments from SSA and the insurance company.  

 

If convicted, Kranz faces a statutory maximum sentence of five years in prison for each count of tax evasion, 20 years in prison for each count of mail and wire fraud, 10 years in prison for theft of public money, and five years in prison for Social Security fraud.  Kranz also faces a period of supervised release, restitution and monetary penalties.  An indictment is an accusation.  A defendant is presumed innocent unless and until proven guilty.

 

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

 

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

A Broward County resident was sentenced today to over three years in federal prison for stealing social security benefits, for years following her grandparents’ death.  

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Margaret Moore-Jackson, Special Agent in Charge, Social Security Administration, Office of Inspector General (SSA-OIG), made the announcement.

Myriam Etienne, 49, of Pompano Beach, was sentenced today, by U.S. District Judge James I. Cohn, to 41 months’ imprisonment, 3 years of supervised release and ordered to pay restitution. 

On January 24, 2018, Etienne was convicted by a federal jury of ninety counts of theft of government funds, in violation of Title 18, United States Code, Section 641.  According to evidence presented at trial, Etienne received Social Security Supplemental Security Income (“SSI”) benefits for her grandparents since 2004.  The SSA administers numerous programs to provide for the material needs of individuals and their families, including SSI.  SSI is a federal program that provides assistance to lower income individuals to meet basic food, shelter, medical and clothing needs.  Monthly SSI benefits are paid to eligible individuals.  

The evidence presented at trial revealed that these benefits were paid to the Etienne’s grandmother and grandfather and the defendant controlled their funds as a representative payee.  The SSI funds were direct deposited into a joint bank account the defendant shared with her deceased grandparents.  The trial evidence showed that the Etienne’s grandfather died in Haiti, in 2006, and the defendant’s grandmother died in Haiti, in 2009, and that both grandparents left the United States years before their deaths. The defendant, however, kept receiving the SSI benefits and did not report that her grandparents left the United States or subsequently died in Haiti to the SSA.  

The evidence further showed that Etienne signed representative payee accounting records, years after her grandparents deaths, verifying that the SSI money was being utilized for her their food, shelter, clothing and medical treatment.  After the defendant’s grandmother and grandfather left the country and subsequently died, the defendant received over $160,000 in SSI payments.  The evidence at trial further revealed that the defendant utilized these SSI funds, that had been direct deposited into the joint account, to make mortgage payments on her home, to purchase airline tickets and make payments on her BMW X6 sport utility vehicle.

Mr. Greenberg commended the investigative efforts of the SSA-OIG, the U.S. Department of State and the FBI’s Legal Attaché in Port-au-Prince, Haiti.  This case was prosecuted by Assistant U.S. Attorney Randy Katz. 

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

On March 26, 2018, a Lake Worth resident was sentenced by Senior United States District Judge Kenneth A. Marra to a total of 20 years in federal prison for producing and transmitting child pornography. 

Benjamin Greenberg, Acting 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 Kelly Harris, Acting Chief, Boynton Beach Police Department (BBPD), made the announcement.

Kevin Scott Mitchell, 62, of Lake Worth, previously pled guilty to one count of production of child pornography, in violation of Title 18, United States Code, Section 2251(a) and (e), and one count of transmission of child pornography, in violation of Title 18, United States Code, Section 2252(a)(2) and (b)(1).  Mitchell was subject to a mandatory minimum term of 15 years in prison.

According to the court record, including factual statements made during the plea hearing, beginning in January 2016, Mitchell had sex with a 16 year old minor at a hotel in Boynton Beach.  He took photographs and videos during the sexual encounters, when his trucking route brought him to South Florida.  In May 2017, the minor reported the sexual abuse to law enforcement when Mitchell threated to release the videos to the victim’s friends and family.  When Mitchell later texted the minor, BBPD undercover detectives responded as the victim.  Mitchell then sent pornographic images of the minor to the detective.  Mitchell was apprehended several days later in upstate New York and found in possession of digital devices containing pornographic videos of the minor.

Mr. Greenberg commended the investigative efforts of ICE-HSI and BBPD.  This case was prosecuted by Assistant U.S. Attorney Greg 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.

 

A Lake Worth man has been charged federally with sex trafficking a minor and adults, and labor trafficking. 

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Dave Aronberg, State Attorney of Palm Beach County, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigations, and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, (PBSO), made the announcement.

Alston Orlando Leroy Williams, 42, of Lake Worth, who has been living between Broward and Palm Beach Counties, was charged by indictment with one count of sex trafficking of a minor, in violation of Title 18, United States Code, Section 1591(a)(1) and (b)(2), three counts of sex trafficking by force, fraud or coercion, in violation of Title 18, United State Code, Section 1591(a)(1) and (b)(2), and one count of forced labor trafficking, in violation of Title 18, United States Code, Section 1589(a).  If convicted Williams faces a statutory maximum term of life in prison.  Williams is currently being detained without bond pending further court proceedings in U.S. District Court in West Palm Beach.

            According to court records, from 2008 through 2017, Williams allegedly trafficked multiple women, including one as young as 16 years old, for sex throughout south Florida.  Williams had the women live at his homes and travel to hotels and other locations to meet adult men and engage in sex for money.  Williams allegedly used force, violence and coercion to traffic the women and kept all of the money they earned.  He was arrested on November 29, 2017 on related state charges, before being charged federally.

Mr. Greenberg commended the investigatory efforts of the FBI and PBSO, and thanked the Palm Beach County Human Trafficking Task Force and the Palm Beach County State Attorney’s Office for their commitment to combatting these offenses.  This case is being prosecuted by Assistant United States Attorney Gregory Schiller and Special Assistant United States Attorney Justin Hoover.

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

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

 

This week, two CEOs and the owner of Zenith Health Services Inc., Monty Health Care Services, Inc., Peaceful Encounters, LLC, National Diagnostic Testing Inc., and Paramount Health Solutions Inc., pled guilty for their roles in a health care fraud scheme.  

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; Kelly R. Jackson, 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.

John Michael Skeffington, 52, of Boca Raton, pled guilty to participating in a health care fraud conspiracy, in violation of Title 18, United States Code, Section 1349, and obstructing a criminal health care investigation, in violation of Title 18, United States Code, Sections 1518(a) and 2.  Co-defendant Babette Hayes, 58, of Sarasota, pled guilty to obstructing a criminal heath care investigation.  Co-defendant Mona Montanino, 56, of Boca Raton, also pled guilty to obstructing a criminal health care investigation

According to court documents, Skeffington, Hayes and Montanino established five shell companies, disguised as “laboratory marketing companies,” in order to unlawfully refer medically unnecessary and excessive bodily fluid tests for residents and patients of sober homes and substance abuse treatment facilities to various clinical laboratories and rural hospitals.  Hayes and Montanino purported to be the chief executive officers of some of the companies, but it was Skeffington who actually operated and controlled the companies and directed the co-defendants’ actions.  In exchange for patient referrals, the laboratories and hospitals would provide a pre-set percentage of insurance payments (“kickbacks”) to the defendants, which they would then share with the sober homes and substance abuse treatment facilities.

The fraud scheme took advantage of higher insurance reimbursement rates for testing conducted by hospitals.  In some cases, the hospitals would submit claim forms as if the patients submitted samples in person when, in reality, the patients were hundreds of miles away, were never treated at the hospitals, and were unaware that their insurance plans were billed for the services. During the course of the scheme, Skeffington increased his use of rural hospitals for the fraudulent testing, after insurance companies began to scrutinize claims from clinical laboratories for bodily fluid tests. 

The kickback amounts, often disguised as payments for sales commissions to Skeffington’s companies, were based on written and unwritten agreements between Skeffington and the laboratories and hospitals. Upon receiving the payments, Skeffington would directly or indirectly provide kickback payments to the sober homes and substance abuse treatment center owners who were accomplices in the scheme.

Once Skeffington, Montanino and Hayes became aware of the FBI investigation into fraudulent medical claims, they created dozens of fake documents meant to obstruct the investigation and disguise the kickbacks as hourly payments for marketing services. They asked, both those from whom they had received kickbacks and those to whom they provided kickbacks, to sign the documents to further conceal their illegal activities. Signed documents and invoices were back-dated to make it appear as though they had been signed and submitted before the kickback payments were made.

The defendants are scheduled to be sentenced by Senior United States District Judge Kenneth A. Marra on July 6, 2018 at 1:30 p.m.

These cases are the result of the work of the Greater Palm Beach Health Care Fraud Task Force. The Task Force’s ongoing investigation into substance abuse treatment fraud in the Southern District of Florida has resulted in 18 convictions to date.  Agencies of the Task Force include the FBI, IRS-CI, the Florida Division of Investigative and Forensic Services, Amtrak OIG, DOL-EBSA, and NICB.

Mr. Greenberg commended the investigative efforts of all law enforcement agencies connected with the Task Force, as they continue to combat sober home abuses and health care fraud. 

These cases are being prosecuted by Assistant U.S. 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.

Albert Samukia Jones Saye, a/k/a “Albert Jones,” the owner of several now-defunct sober homes was sentenced in federal court today to more than 5 years in prison and ordered to pay over $2 million in restitution, for his role in a health care fraud conspiracy.

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; Kelly R. Jackson, 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.

Jones, 27, of Boynton Beach, was sentenced by U.S. District Judge Robin L. Rosenberg to 71 months in prison, to be followed by 3 years of supervised release and was ordered to pay $$2,071,406 in restitution.  In January 2018, Jones pled guilty to participating in a health care fraud conspiracy and maintaining a drug-involved premises (Case No. 17-CR-80229). 

According to court documents, Jones owned and operated several recovery residences, commonly known as “sober homes,” in Palm Beach County from 2014-2016, including “No Drug Zone,” “Carter Care Recovery,” and “A T Way.”  When properly managed, these recovery residences, operated as alcohol and drug-free living environments for individuals attempting to abstain from substance abuse. 

Jones used his sober homes to facilitate a health care fraud scheme.  Jones referred more than 100 residents for medically unnecessary urine and saliva tests to Reflections Treatment Center, in exchange for kickbacks from Reflection’s owner, Kenneth Chatman.  In some cases, treatment center workers would forge patient signatures on sign-in sheets and submit their own bodily fluids for the tests.  In return for referring insured residents for the treatment and testing, Chatman would provide kickbacks and bribes to Jones.   

To further defraud insurance companies, Jones would encourage drug use among his insured residents, even providing and using drugs with them, to cause “relapses,” which would extend their stays in his sober homes and lead to more unnecessary tests at Reflections.  To keep the scheme going, Jones, Chatman, and other co-conspirators actively recruited people with medical insurance to reside in the sober homes by offering bribes in the form of free or reduced rent, money, controlled substances and other benefits.  In exchange, the residents would attend drug treatment and submit to regular and random drug testing at Reflections.  During the time-period in which the crimes were committed, 36 insurance companies paid out more than $2 million in fraudulent medical claims to Reflections.  In May 2017, Chatman was sentenced to 27 years in prison for his role in the scheme and other offenses (Case No. 17-CR-80013).

This case is the result of the work of the Greater Palm Beach Health Care Fraud Task Force. The Task Force’s ongoing investigation into substance abuse treatment fraud in the Southern District of Florida has resulted in 17 convictions to date.  Agencies of the Task Force include the FBI, IRS-CI, the Florida Division of Investigative and Forensic Services, Amtrak OIG, DOL-EBSA, and NICB.

Mr. Greenberg commended the investigative efforts of all law enforcement agencies connected with the Task Force, as they continue to combat sober home abuses and health care fraud. 

This case is being prosecuted by Assistant U.S. 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.

Pedro Ivan Flores, 43, a citizen of Peru, was sentenced by U.S. District Court Judge William P. Dimitrouleas to 16 months in prison for smuggling counterfeit cigarettes.

Benjamin G. Greenberg. United States Attorney for the Southern District of Florida and Justin D. Green, Special Agent in Charge, U.S. Food & Drug Administration, Office of Criminal Investigations (FDA OCI), Miami Field Office, made the announcement.

Flores previously pled guilty to participating in a conspiracy, which sought to sell and dispense and cause the sale and dispensing of a counterfeit tobacco product, to wit cigarettes, the containers and labeling of which, without authorization, bore the trade names of Marlboro Reds and Newport cigarettes, tobacco products listed with the FDA pursuant to Title 21, United States Code, Section 387(e)(i)(1), in violation of Title 21, United States Code, Sections 331(qq)(3) and 333(a)(2), all in violation of Title 18, United States Code, Section 371.

According to the court record, including a jointly filed factual statement, the investigation began in January 28, 2013, when a FDA/OCI undercover agent met with Flores in Jamaica to discuss the sale of counterfeit Marlboro brand cigarettes. Thereafter, negotiating by email, a deal to sell and ship 1,100 “master cases” of counterfeit Marlboro Reds, for a total cost of $377,300.00 was reached. To pursue the deal, agents made an initial a wire transfer in the amount of $133,190 to an account located in Dubai, United Arab Emirates for the purchase of the counterfeit cigarettes.

In August 2013, undercover agents met with a previously sentenced co-defendant Gaurav Jayaseelan, who travelled to Miami to discuss the pending sale.  During the recorded meeting, Jayaseelan told the agents that he and his father, were in the cigarette and alcohol business and claimed they owned their own tobacco manufacturing plant which could manufacture any tobacco brand. Jayaseelan later sent an email offering to provide counterfeit Newport cigarettes within four to five weeks. Subsequently, at Jayaseelan’s request, two cartons of Newport cigarettes to be used as samples for the manufacturing of the counterfeits were provided to an address in India.

In January 2014, Jayaseelan emailed that they would send 1,030 master cases of Newport cigarettes for a total wholesale price of $450,625.  In May 2014, the shipment was seized at Port Everglades, in coordination with t. The counterfeit cigarettes had an estimated U.S. street value of more than $5.6 million. Throughout the conspiracy, Flores, by internet communications, served as a broker and a facilitator of the sales activity.

Flores was arrested in Peru in early 2017 and extradited to the United States.

Counterfeit cigarettes, which are sold without proper registration and testing may pose a greater health risk than consumers recognize, due to the presence of contaminants either not found in products originating from the lawful manufacturers, or which are present in greater concentrations.

Mr. Greenberg commended the investigative efforts of FDA-OCI and thanked the U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Peruvian Ministry of Justice and U.S. Marshals Service for their assistance in this matter.  This matter was prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald.

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.

Joshua Lane Rogers, 34, and Richard William Lockley, 34, both of Stuart, pled guilty to producing pornography of a teenage victim.

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, Ken Mascara, Sheriff, St. Lucie County Sheriff's Office (SLCSO), and William D. Snyder, Sheriff, Martin County Sheriff's Office (MCSO), made the announcement.  

On March 22, 2018, Rogers pled guilty to two counts of production of visual depictions of sexual exploitation of minors, in violation of Title 18, United States Code, Sections 2251(a) and (e); and one count of distribution production of visual depictions of sexual exploitation of minors, in violation of Title 18, United States Code, 2252(a)(2) and (b)(1).  On January 17, 2018, Lockley pled to one count of production of visual depictions of sexual exploitation of minors.  If convicted of the production or distribution charges, Rogers and Lockley face a mandatory minimum sentence of 15 years in prison, a maximum 30 year prison term, a lifetime of supervised release, and will be required to register as sex offenders. 

According to the court record, on September 3, 2017, SLCSO deputies responded to a “Missing Person Juvenile/ Runaway” call for a missing 16-year-old minor.   On September 27, 2017, Rogers was located with the minor victim.  The investigation revealed that Rogers met the victim on-line and had the victim stay at his residence. A forensic analysis of Roger’s cellular smart phone revealed he had recorded sexually explicit activity with the minor victim on numerous occasions.  Rogers distributed many of the captured images and videos to other individuals, via MMS text communications, a social media networking program, and in the personal section of a Treasure Coast  website.  

Rogers and Lockley, together at Rogers’ residence, also produced a video depicting sexually explicit conduct and activity with the minor victim. 

Lockley is scheduled to be sentenced on April 20, 2018 at 1 p.m., in Ft. Pierce and Rogers is scheduled to be sentenced on Tuesday, June 5, 2018 at 11 a.m. in Miami, before U.S. District Court Senior Judge Donald L. Graham.

Mr. Greenberg commended the investigative efforts of the FBI, SLCSO and the MCSO for their work on this case.  The case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.

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

The last of four defendants was sentenced on March 13, 2018 for his role in a narcotics ring, operating out of Broward County, involving the powerful opioid fentanyl, as well as cocaine, oxycodone, methamphetamine, and amphetamine.

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

According to court records, Justin Devon Hampton, 41, Ricky Jermaine Brinson, 44, Kenneth Alonzo Taylor, 44, of Broward County, and Ernesto Garcia-Hernandez, 52, of Miami-Dade County, conspired to possess with intent to distribute 500 grams or more of cocaine, between January 2017 and June 2017; and defendant Hampton further conspired to possess with intent to distribute fentanyl, oxycodone, methamphetamine, and amphetamine, and maintained a drug-involved residence within 1,000 feet of a playground in Miramar, Florida.

Over the course of the DEA’s investigation, law enforcement conducted surveillance of Hampton’s residence and determined that multiple previously convicted narcotics traffickers, including Garcia-Hernandez, repeatedly visited the home between January and June 2017.  Law enforcement obtained a search warrant for Hampton’s residence, which agents planned to execute on June 26, 2017.  That evening, as agents conducted surveillance, they observed Taylor and Brinson arrive at the home, followed by Garcia-Hernandez.  Taylor, Garcia-Herandez and Hampton then engaged in a narcotics transaction in the driveway.  Agents later recovered one kilogram of cocaine from the Brinson and Taylor’s vehicle, as well as over $50,000 in drug proceeds, and distribution quantities of fentanyl, oxycodone, methamphetamine, and amphetamine from Hampton’s residence.  Hampton fled to Atlanta, Georgia, where he was later apprehended with the assistance of the U.S. Marshals, in October 2017.

The defendants all pled guilty in late 2017.  United States District Judge William P. Dimitrouleas sentenced Hampton to 235 months’ imprisonment, Garcia-Hernandez to 144 months’ imprisonment, Brinson to 60 months,’ and Taylor to 18 months’ imprisonment, for their role in the scheme.

This investigation and prosecution was carried out by members of the South Florida High Intensity Drug Trafficking Area (HIDTA) Task Force.  The South Florida HIDTA, established in 1990, is made up of federal, state and local law enforcement agencies who, cooperatively, target the region’s drug-trafficking and money laundering organizations.  The South Florida HIDTA is funded by the Office of National Drug Control Policy which sponsors a variety of initiatives focused on the nation’s illicit drug trafficking threats.

This prosecution 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.

Mr. Greenberg commended the investigative efforts of the DEA and USMS.  This case was prosecuted by Assistant U.S. Attorney Jonathan K. Osborne.

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

Vladimir Nevidomy, 31, of Hallandale Beach, Florida, pleaded guilty on March 19, to 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. 

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.

On or about April 16, 2013, a co-defendant caused a wire transfer from a Shanghai, China bank account in the amount of $11,755 for the purchase and shipment of two ATN MARS 4x4 night-vision rifle scopes.  That same day, Nevidomy paid $9,599 to a U.S. vendor for the purchase of those two night-vision rifle scopes.  On or about May 2, 2013, Nevidomy also caused a wire transfer in the amount of $10,000 to be sent to a U.S. vendor for the purchase of the ODIN 61BW thermal multi-purpose monocular.

Later, Nevidomy’s co-defendant caused a wire transfer from a bank account in Riga, Latvia in the amount of $18,036, part of which was for the purchase of a third ATN Mars 4X4 night-vision rifle scope. On the same day, Nevidomy caused a wire transfer in the amount of $9,599 to a U.S. vendor, part of which was for the purchase of the third ATN Mars 4X4 night-vision rifle scope.

After the U.S. vendors sent the night vision devices to Nevidomy in South Florida, he exported them to the 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, Russia.  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 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.

Sentencing is scheduled before U.S. District Judge Kathleen Williams, on May 25. Nevidomy, a Ukraine-born naturalized U.S. citizen, faces a maximum sentence of 5 years imprisonment. 

In addition, on Feb. 5, in a separate federal case, Nevidomy pleaded guilty to passport fraud and conspiracy to commit passport fraud in the Southern District of Florida.

Mr. Demers and Mr. Greenberg commended the investigative efforts of the FBI and HSI.  This case is being 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, 31, of Hallandale Beach, Florida, pleaded guilty on March 19, to 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. 

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.

On or about April 16, 2013, a co-defendant caused a wire transfer from a Shanghai, China bank account in the amount of $11,755 for the purchase and shipment of two ATN MARS 4x4 night-vision rifle scopes.  That same day, Nevidomy paid $9,599 to a U.S. vendor for the purchase of those two night-vision rifle scopes.  On or about May 2, 2013, Nevidomy also caused a wire transfer in the amount of $10,000 to be sent to a U.S. vendor for the purchase of the ODIN 61BW thermal multi-purpose monocular.

Later, Nevidomy’s co-defendant caused a wire transfer from a bank account in Riga, Latvia in the amount of $18,036, part of which was for the purchase of a third ATN Mars 4X4 night-vision rifle scope. On the same day, Nevidomy caused a wire transfer in the amount of $9,599 to a U.S. vendor, part of which was for the purchase of the third ATN Mars 4X4 night-vision rifle scope.

After the U.S. vendors sent the night vision devices to Nevidomy in South Florida, he exported them to the 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, Russia.  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 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.

Sentencing is scheduled before U.S. District Judge Kathleen Williams, on May 25. Nevidomy, a Ukraine-born naturalized U.S. citizen, faces a maximum sentence of 5 years imprisonment. 

In addition, on Feb. 5, in a separate federal case, Nevidomy pleaded guilty to passport fraud and conspiracy to commit passport fraud in the Southern District of Florida.

Mr. Demers and Mr. Greenberg commended the investigative efforts of the FBI and HSI.  This case is being 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.

Seven individuals have pled guilty to participating in a multi-million dollar international money laundering conspiracy. 

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 March 7, 2018, Geannis Gonzalez, 31, formerly of Peyton, Colorado, Alfredo Tovar, 36, of Miami Gardens, Robinson Castillo, 32, of Pembroke Pines, and Jamie Vives Castillo, 41, of Pembroke Pines, pled guilty to conspiracy to commit money laundering.  On March 15, 2018, Quiana Velasco, 35, of Miami, Jose Daniel Estrella, 38, of Hallandale, Pedro Reyes, 38, of Hialeah, pled guilty to the same offense.  Each defendant faces a possible maximum statutory sentence of 20 years’ imprisonment.  Defendants Gonzalez, Tovar, Velasco, Estrella, Reyes, and Castillo will be sentenced on May 25, 2018, by the United States District Judge Ursula Ungaro.  Defendant Vives Castillo will be sentenced on May 30, 2018.

According to stipulated facts filed in court, the defendants admitted to opening 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.  The defendants further admitted that, after banks closed the bank accounts that the defendants had opened, often on suspicion that the accounts 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, and telling 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.  Once these bank accounts received money wired from a fraud victim, the defendants would instruct the money mules to wire the money to other accounts overseas. 

These stipulated facts further revealed that the defendants received repeated warnings that the funds coming into the shell corporation bank accounts were the proceeds from illegal activity.  The defendants also admitted that these bank accounts received total amounts of illegal proceeds ranging from $3,381,110 to $7,177,442.  The defendants would receive a small percentage of these funds as their commission.  According to the allegations in the indictment in which the defendants were charged, the overall conspiracy, which was led by defendant Roda Taher, laundered approximately $94 million.

            Mr. Greenberg commended the investigative efforts of the FBI.  The case is being 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.

U.S. Gold refinery Elemetal LLC, based in Dallas, Texas, doing business as “Elemetal” and “NTR Metals,” pled guilty today to a single-count information charging Elemetal with failure to maintain an adequate anti-money laundering program, in violation of the Bank Secrecy Act, as part of a plea agreement with the United States Attorney’s Office for the Southern District of Florida.

Randy A. Hummel, Executive Assistant United States Attorney, U.S. Attorney’s Office 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, Robert F. Lasky, Special Agent in Charge,  Federal Bureau of Investigation (FBI), Miami Field Office, Carlos L. Mitchem, Regional Director, Drug Enforcement Administration (DEA-Peru), Southern Cone Region, Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA-Miami), Miami Field Office, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, made the announcement.

On March 12, 2018, Elemetal was charged in a sealed, single-count information for failure to maintain an adequate anti-money laundering program under the Bank Secrecy Act (“BSA”). The case is U.S. v. Elemetal LLC, Case No. 18-20173-CR-MORENO.  On March 16, 2018, U.S. District Judge Federico A. Moreno unsealed the information and accepted Elemetal’s guilty plea.

According to the stipulated facts filed with the court, from August 2012 through November 2016, Elemetal purchased and refined billions of dollars of gold from countries around the world, including from Central America, South America, the Caribbean and Europe.  The international gold trade was a common method for laundering illegally mined gold, narcotics and other criminal proceeds.  Criminals frequently trade illegal gold through illicit shell companies using false or incomplete documents.  The gold is often smuggled through third-party countries and then sold to refineries in the United States, in an effort to hide the true source of the gold from foreign and United States law enforcement.   

Recognizing the high risk of gold-based money laundering, federal law requires precious metals dealers to establish anti-money laundering programs, under the BSA.  Elemetal was subject to the BSA and aware of its obligations, but willfully failed to develop, implement, and maintain a reasonably designed anti-money laundering program as required. More specifically, according to the stipulated facts filed with the court, Elemetal:

• Accepted gold from persons and entities without requesting or obtaining adequate, or in some instances any, identification and information regarding those persons or the source of their gold, including from: third-parties in foreign countries directly providing gold to the defendant on consignment to the defendant’s approved customers; third-parties in foreign countries who the defendant knew to be supplying gold to the defendant’s approved domestic customers; and third-parties in foreign countries who appeared as the manufacturer or shipper of the gold on U.S. customs declarations; 
   
• Accepted gold from foreign gold suppliers who represented themselves to be “gold collectors,” a vague business that involves nothing more specific than someone who buys gold from others without requesting or obtaining adequate, or in some instances any, information as to the source and origin of gold;
   
• Accepted gold from countries and customers where the defendant’s country-by-country and customer-by-customer sales volume records indicated that gold was likely being smuggled across borders in response to law-enforcement crackdowns and that customers were using rotating front companies, without requesting or obtaining adequate, or in some instances any, follow-up information as to the source and origin of gold;
   
• Accepted gold from specific customers and suppliers where open-source and publicly available information indicated that those specific customers and suppliers were supplying criminally derived gold, without requesting or obtaining adequate, or in some instances any, follow-up information as to the source and origin of gold;
   
• Failed to request or obtain adequate, or in some instances any, follow-up information as to the source and origin of gold where open-source and publicly available information indicated that the defendant or the defendant’s agents were purchasing criminally derived gold; and,
   
• Failed to request, obtain, preserve adequately, or in some instances any information regarding the content of communications between gold suppliers and the defendant’s agents occurring on encrypted, peer-to-peer chat services, such as WhatsApp or Skype.

Pursuant to the terms of the Plea & Forfeiture Agreement filed with the court, Elemetal has agreed to recommend that it forfeit $15,000,000 to the United States, develop and maintain an effective compliance and ethics program, and be subject to a 5-year term of probation, during which time it will be prohibited from purchasing precious metals from outside the United States and required to comply with all further investigations. U.S. District Judge Federico A. Moreno will determine Elemetal’s sentence at a later hearing.

Former NTR Metals Miami employees, Samer H. Barrage, Renato J. Rodriguez, and Juan P. Granda previously pled guilty to conspiracy to commit money laundering in related case, U.S. v. Barrage, et al., Case No. 17- 20215-CR-SCOLA. On January 19, 2018, U.S. District Judge Robert N. Scola sentenced Barrage and Granda to 80 and 72 months’ imprisonment respectively, and on January 31, 2018, Judge Scola sentenced Rodriguez to 90 months’ imprisonment.

These cases are the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (“OCDETF”) Operation Arch Stanton, a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.

Mr. Hummel commended the investigative efforts of ICE-HSI, FBI, DEA-Peru, DEA-Miami, and IRS-CI.  Mr. Hummel also thanked the Department of Justice’s Money Laundering and Asset Recovery Section, the Department of the Treasury Financial Crimes Enforcement Network, and the U.S. Customs and Border Protection for their assistance in this matter.  This case is being prosecuted by Assistant U.S. Attorney Francisco R. Maderal. 

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, Florida, resident was sentenced today to 90 months in prison for filing fraudulent tax returns, wire fraud, and filing false monthly reports with the U.S. Probation Office announced U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida and Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.

According to court documents and evidence presented at trial, Timothy J. Beverley, 61, worked as an airplane broker at Majestic Jet Inc., a company in Pompano Beach that provided aircraft charters.  From 2010 through 2013, Beverly stole more than $2.2 million from Majestic Jet by directing airplane escrow agents to wire funds from the sale of planes to nominee bank accounts that Beverly controlled.  Beverly also stole funds directly from Majestic’s business bank accounts and used the money to pay for personal expenses including his boat and rent.  Beverley did not report this income on his 2010 through 2013 personal tax returns. 

The trial evidence further revealed that while working at Majestic Jet, Beverley was on supervised release stemming from his federal conviction for money laundering in January 2004.  As a condition of his supervised release, Beverley was required to file monthly reports with the U.S. Probation Office that listed his net earnings from employment.  Between November 2009 through October 2012, Beverley did not disclose the money he stole from Majestic Jet on his filed reports.

In addition to the term of imprisonment, U.S. District Court Judge Beth Bloom ordered Beverley to serve three years of supervised release and to pay restitution in the amount of $634,906.  U.S. Attorney Greenberg and Principal Deputy Assistant Attorney General Zuckerman commended the special agents of Internal Revenue Service Criminal Investigation. This case was prosecuted by Senior Litigation Counsel Neil Karadbil of the U.S. Attorney’s Office and Assistant Chief Greg Tortella of the Tax Division. 

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

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, Florida, resident was sentenced today to 90 months in prison for filing fraudulent tax returns, wire fraud, and filing false monthly reports with the U.S. Probation Office announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida.

 

According to court documents and evidence presented at trial, Timothy J. Beverley, 61, worked as an airplane broker at Majestic Jet Inc., a company in Pompano Beach that provided aircraft charters.  From 2010 through 2013, Beverly stole more than $2.2 million from Majestic Jet by directing airplane escrow agents to wire funds from the sale of planes to nominee bank accounts that Beverly controlled.  Beverly also stole funds directly from Majestic’s business bank accounts and used the money to pay for personal expenses including his boat and rent.  Beverley did not report this income on his 2010 through 2013 personal tax returns. 

 

The trial evidence further revealed that while working at Majestic Jet, Beverley was on supervised release stemming from his federal conviction for money laundering in January 2004.  As a condition of his supervised release, Beverley was required to file monthly reports with the U.S. Probation Office that listed his net earnings from employment.  Between November 2009 through October 2012, Beverley did not disclose the money he stole from Majestic Jet on his filed reports.

 

In addition to the term of imprisonment, U.S. District Court Judge Beth Bloom ordered Beverley to serve three years of supervised release and to pay restitution in the amount of $634,906.  Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Greenberg commended the special agents of Internal Revenue Service Criminal Investigation. This case was prosecuted by Senior Litigation Counsel Neil Karadbil of the U.S. Attorney’s Office and Assistant Chief Greg Tortella of the Tax Division. 

 

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

 

Three Miami, Florida-area home health agency owners were charged in an indictment unsealed on March 13, 2018 for their alleged participation in a health care fraud scheme involving a now-defunct home health agency in Miami.

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, Special Agent in Charge Robert F. Lasky of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.

Ailin Consuelo Rodriguez Sigler, 39; Zoila C. Rios, 57; and Tomas A. Rodriguez, 66, were charged in an indictment filed in the Southern District of Florida with one count of conspiracy to commit health care fraud and wire fraud, and three counts of health care fraud.  Sigler, Rios and Rodriguez were arrested on March 13, 2018 and appeared before U.S. Magistrate Judge Alicia M. Otazo-Reyes.

The indictment alleges that from approximately January 2011 through November 2014, Sigler, Rios and Rodriguez, owners of Florida Patient Care Corp. of Miami, Florida, were involved in a fraudulent scheme whereby they agreed with the owners and operators of multiple home health therapy staffing companies and others to bill Medicare for services that were medically unnecessary, not eligible for Medicare reimbursement, or were never provided.  

According to the indictment, Sigler, Rios, Rodriguez and their co-conspirators allegedly caused the submission of false and fraudulent claims to Medicare for home health therapy care, and physical and occupational therapy services purportedly provided by Florida Patient Care Corp. 

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

This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida.  Fraud Section Trial Attorney Yisel Valdes is prosecuting the case. 

The Fraud Section leads the Medicare Fraud Strike Force.  Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 3,500 defendants who have collectively billed the Medicare program for more than $12.5 billion.  In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

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, pleaded guilty yesterday to attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.

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

Solano pleaded guilty yesterday to one count of attempting to provide material support to ISIS, in violation of Title 18, United States Code, Section 2339B(a)(1).  Sentencing is set for May 30, 2018, at 9:15 a.m. before United States District Judge Paul C. Huck in Miami.  Solano faces a statutory maximum sentence of twenty years’ imprisonment and a $250,000 fine.   

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.   

Mr. Greenberg and Mr. Demers commended the investigative efforts of the FBI and the South Florida Joint Terrorism Task Force (JTTF).  The case is being prosecuted by Assistant United States Attorney Karen E. Gilbert and Department of Justice Counterterrorism Section Trial Attorney Jolie Zimmerman. 

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, pleaded guilty yesterday to attempting 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, 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.  

Solano pleaded guilty yesterday to one count of attempting to provide material support to ISIS, in violation of Title 18, United States Code, Section 2339B(a)(1).  Sentencing is set for May 30, 2018, at 9:15 a.m. before United States District Judge Paul C. Huck in Miami.  Solano faces a statutory maximum sentence of twenty years’ imprisonment and a $250,000 fine.   

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.   

Mr. Greenberg and Mr. Demers commended the investigative efforts of the FBI and the South Florida Joint Terrorism Task Force (JTTF).  The case is being prosecuted by Assistant United States Attorney Karen E. Gilbert and Department of Justice Counterterrorism Section Trial Attorney Jolie Zimmerman.  

A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. 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 pled guilty today in federal court for failing to report to the Internal Revenue Service (“IRS”) millions of dollars that she embezzled from her employers.

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

Lauren Ransom, 58, of Deerfield Beach, pled guilty to three counts of making and subscribing a false tax return, in violation of Title 26, United States Code, Section 7206(1).  The defendant’s sentencing hearing is scheduled for May 22, 2018 at 10:00 a.m., before U.S. District Judge Federico A. Moreno in Fort Lauderdale.  At sentencing, Ransom faces a maximum possible statutory sentence of three years in prison for each count, a $100,000 fine for each count and restitution.

According to stipulated facts filed with the court, for 33 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.  Court information revealed that the defendant used the money to pay for her credit cards, mortgage and auto loans, insurance, and other personal living expenses.  Casino records also revealed that the defendant gambled and lost approximately $1,410,276.95 from December 1, 2008 to January 31, 2014 by playing slot machines.  The defendant 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 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.  As part of the plea agreement filed with the court, the defendant has further agreed to pay the tax losses and restitution to her former employers. 

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.

Colombian drug kingpin Henry de Jesus Lopez Londoño was convicted today by a jury in Miami.

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

A Miami jury found Henry de Jesus Lopez Londoño, a/k/a “Mi Sangre,” 47, a citizen of Colombia, guilty today of conspiring to distribute over five kilograms of cocaine with the knowledge that it would be unlawfully imported into the United States, in violation of Title 21, United States Code, Sections 959 and 963.  Sentencing is set for May 30, 2018 at 10:30 a.m. in Miami.  The defendant faces a maximum statutory sentence of life in prison.

The evidence presented at the six week trial, which included the testimony of special agents from DEA, Homeland Security Investigations, the Internal Revenue Service, Argentinean National Police, and multiple co-conspirators, showed that the defendant in Colombia was as a leader of the Urabeños, one of the largest and most dangerous drug cartels in the world.  As a leader, the defendant was part of a drug distribution chain spanning from Colombia to Central America, Mexico, and the United States.  The evidence at trial showed that as part of this conspiracy, the defendant was responsible for trafficking over 60,000 kilograms of cocaine.  The evidence at trial also revealed that at one point, Lopez Londoño attempted to cooperate with U.S. law enforcement.  However, when it was discovered that the defendant was lying and committing acts of violence, he became a target of investigation.  That trial evidence further showed that Lopez Londoño had engaged in unauthorized drug trafficking activities while attempting to cooperate. 

U.S. Attorney Benjamin G. Greenberg stated, “The conviction of Henry de Jesus Lopez Londoño is the result of extraordinary international cooperation. It also reflects years of hard work, commitment and perseverance of our Colombian, Argentinean and U.S. law enforcement partners to stem the flow of cocaine into the United States and bring a major international drug trafficker to justice.”

“Henry Lopez-Londono’s conviction marks the success of the DEA Miami Field Division’s strong alliance and cooperation with our foreign and other U.S. law enforcement partners.” said DEA Special Agent in Charge Adolphus P. Wright.  “As a result of this partnership, we are able to reach out to other parts of the globe to target transnational criminal organizations and bring to justice the leaders of those drug trafficking organizations.” 

The prosecution was part of Operation Golden Eagle, 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.

Mr. Greenberg would like to commend the DEA Miami Field Division, DEA Bogota Country Office, DEA Buenos Aires Country Office, the Governments of Colombia and Argentina, the Criminal Division’s Office of International Affairs, the Office of the Judicial Attaché in Colombia, and the U.S. State Department for their assistance in this matter.  This case was prosecuted by Assistant U.S. Attorneys Robert J. Emery and Michael B. Nadler.   

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 New York resident was sentenced in federal court on March 10, 2018, for a three-year fraud scheme involving aggravated identity theft and money laundering.            

Benjamin Greenberg, United States Attorney for the Southern District of Florida; Antonio J. Gomez, Postal Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Division; Philip Bartlett, Special Agent in Charge, U.S. Postal Inspection Service, New York Division; Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; and John Brooks, Chief, Sunrise Police Department, announce that Gerti Muho, 34, of Ridgewood, New York, was sentenced to 22 years imprisonment by U.S. District Court Judge Beth Bloom in connection with an extensive fraud scheme that targeted various banks, lenders, and companies, including his former New York-based hedge fund employer and numerous real person victims.  He was also ordered to pay approximately $1.7 million in restitution.

Muho was previously convicted in July 2017 during a three-week jury trial of 40 counts of bank and wire fraud, aggravated identity theft, and money laundering, in violation of Title 18, United States Code, Sections 1344, 1343, 1957, and 1028A.

At trial, the government presented evidence that Muho, 2012 University of California Berkeley, School of Law graduate, was fired from his job at an international hedge fund company in New York City in 2013.  Thereafter, Muho stole the company’s data, created numerous shell companies and attempted to syphon millions of dollars from various hedge fund bank accounts, including wire transfer requests totaling approximately $5 million.

The trial evidence revealed that later in 2013, after submitting a series of fraudulent corporate documents, Muho induced a bank in Monaco to wire him over $2 million.  Muho then fled to South Florida and used the funds for his own personal use, including gambling, shopping, and purchasing a new Maserati vehicle and an ocean-view downtown Miami condominium.  Furthermore, Muho created various identities and obtained false identification cards in order to escape a pending federal civil court judgment.  The trial evidence showed that Muho fraudulently obtained other loans as well, including a $500,000 business loan, which he used to gamble, shop and travel in as well as a $30,000 vehicle loan, which was used to obtain a new 2015 Jaguar vehicle. 

The evidence presented at trial and sentencing illustrated that Muho additionally used the personal identifying and financial information of various employees, interns, and other individuals associated with his former employer, and created more fake identification cards and drivers licenses; Muho fraudulently opened various bank accounts in Miami-Dade and Broward counties; Muho created and cashed over $161,000 in fraudulent checks; Muho fraudulently attempted to obtain approximately $342,000 in federal tax refunds; and, finally, Muho fraudulently applied for approximately $580,000 in additional credit cards, vehicle, business, and student loans with numerous lenders.  Muho was ultimately apprehended in Ridgewood, New York after fleeing South Florida.

“The sentence imposed is a success in our continuing efforts to combat fraud and identity theft in this community and across the country.” said U.S. Attorney Benjamin G. Greenberg.  “Muho was an intelligent, highly educated person who used his knowledge and skills to perpetrate his various fraud schemes, which thanks to the tireless and diligent efforts of law enforcement, was successfully unraveled.  We will continue to investigate and prosecute individuals who engage in deceptive and fraudulent behavior that is fueled by greed.”

“Muho’s criminal activity included stealing millions of dollars and people’s identities, which caused much financial harm to his victims.  Today’s sentencing should send a clear message to those attempting to defraud others that it will not be tolerated,” said Antonio J. Gomez, Postal Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Division. “No matter how complex the scheme, the United States Postal Inspection Service will work diligently to protect our consumers and the mail from criminal exploitation.”

“Gerti Muho is a talented, industrious and motivated individual, unfortunately, he chose to use these skills to illegally satisfy his greed,” said Robert F. Lasky, Special Agent in Charge, FBI Miami.  “This type of fraud undermines the public’s confidence in our financial systems.  The FBI and our partners take this seriously and are determined to bring wrongdoers like this to justice.”

Mr. Greenberg commends the investigative efforts of the USPIS, FBI, and Sunrise Police Department in this matter.  This case was prosecuted by Assistant U.S. Attorneys Sean T. McLaughlin and Matthew Langley.

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.