Southern District of Florida

A West Palm Beach man was sentenced to 54 months in prison for conspiring with his brother, a United States Postal Service letter carrier, to commit access device fraud and aggravated identity theft. 

 

Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General (DOL-OIG), Chris Cave, Special Agent in Charge, U.S. Postal Service, Office of Inspector General (USPS-OIG), Antonio J. Gomez, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, and Cissy Proctor, Executive Director, Florida Department of Economic Opportunity (DEO), made the announcement.

 

Mikel Clotaire, of West Palm Beach, was convicted in July 2017, following a three-day federal jury trial in West Palm Beach, Florida of conspiring to commit access device fraud, access device fraud, and five counts of aggravated identity theft. Clotaire was sentenced before U.S. District Judge Donald M. Middlebrooks to 54 months in prison, followed by three years of supervised release, and restitution in the amount of $114,743.00 payable to DEO.

 

According to the court record, including evidence introduced at trial, Clotaire engaged in a scheme to obtain fraudulent re-employment benefits from DEO.  Clotaire’s brother was working at the time as a letter carrier for the U.S. Postal Service in Palm Beach Gardens, Florida. At least eight fraudulent unemployment applications, using stolen identities, were then submitted to DEO and resulted in the issuance of Florida Visa debit cards. The debit cards were mailed through interstate commerce to the residential addresses on the postal route. The cards were ultimately transferred to Clotaire and at least two other co-conspirators and used to make withdrawals from ATMs. As a result of the fraudulent scheme, the State of Florida sustained approximately $114,743.00 in financial losses.

 

Mr. Greenberg commended the investigative efforts of the DOL-OIG, USPS-OIG, USPIS and DEO. This case is being prosecuted by Assistant U.S. Attorney Adam McMichael. 

 

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

An orthopedic surgeon practicing in Vero Beach, Florida, was charged with conspiracy to possess with intent to distribute a controlled substance which resulted in death, aiding and abetting the distribution of a controlled substance which resulted in death, and attempted possession with intent to distribute a controlled substance.

 

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

 

On October 31, 2017, Johnny Clyde Benjamin, Jr., M.D., an orthopedic surgeon practicing in Vero Beach, Florida, was indicted by a federal grand jury sitting in West Palm Beach, Florida, on federal felony charges of conspiracy to possess with intent to distribute a controlled substance (resulting in death), in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 846; aiding and abetting the distribution of a controlled substance which resulted in death, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and Title 18, United States Code, Section 2; and, attempted possession with intent to distribute a controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 846.

 

     These charges were brought as a result of an opioid and furanylfentanyl (FUF) investigation that began in September 2016, in connection with the overdose death of a young woman  who resided in Wellington, Florida. The PBSO PBNTF suspected the overdose death of decedent as having resulted from counterfeit oxycodone pills which were found in decedent’s possession following her overdose. Forensic analysis of those pills determined they had been illicitly manufactured as copies of oxycodone pills -- using FUF, an extremely powerful synthetic opioid many times more powerful than street level heroin or oxycodone – as the active ingredient.

 

Toxicology analysis conducted by the Office of the District Medical Examiner of Palm Beach County attributed the cause of decedent’s death to the fentanyl analog FUF in its autopsy report. Ultimately, an extensive investigation led to Dr. Benjamin as the source of the FUF pills responsible for decedent’s death. Investigators also uncovered a distribution network implicating Dr. Benjamin in the manufacture and distribution of counterfeit oxycodone pills outside the South Florida area.

 

If convicted, Dr. Benjamin faces a mandatory minimum of 20 years’ imprisonment to a maximum life term of imprisonment for conspiracy to possess with intent to distribute a controlled substance (resulting in death) and distribution of a controlled substance (resulting in death); and, a maximum of 20 years’ imprisonment for attempted possession with intent to distribute controlled substances.

 

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

 

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

 

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 former FAA Aviation Safety Inspector and the co-owner of a South Florida aviation repair company, AVCOM Avionics and Instruments Inc., were charged with various offenses in connection with bribery scheme during 2010-2013. To date, the other co-owner of AVCOM Avionics and Instruments Inc. has also been convicted and sentenced in connection with the ongoing investigation.

           

            Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Marlies T. Gonzalez, Regional Special Agent in Charge, U.S. Department of Transportation, Office of Inspector General (DOT-OIG), and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.

 

            Patricia Suarez, a/k/a “Patricia Bailly,” a/k/a “Patricia Del Castillo,” 49, of Coral Gables, was charged by indictment with one count of conspiracy to commit bribery, in violation of Title 18, United States Code, Sections 371 and 201(b)(1)(C) and (b)(2)(C), and fifteen counts of bribery, in violation of Title 18, United States Code, Section 201(b)(1)(C). If convicted, Patricia Suarez faces a maximum statutory sentence of five years’ imprisonment for the conspiracy count and fifteen years’ imprisonment each for the bribery counts, as well as a fine up to $250,000 or triple the bribery proceeds. 

 

            Manuel R. Fernandez, 40, of Miami, was charged by indictment with one count of conspiracy to commit bribery, in violation of Title 18, United States Code, Sections 371 and 201(b)(1)(C) and (b)(2)(C); fifteen counts of bribery, in violation of Title 18, United States Code, Section 201(b)(2)(C); one count of providing false statements to a federal agency, in violation Title 18, United States Code, Section 1001(a)(2); two counts of wire fraud, in violation Title 18, United States Code, Section 1343; and two counts of aggravated identity theft, in violation Title 18, United States Code, Section 1028A.  If convicted, Fernandez faces a maximum statutory sentence of five years’ imprisonment for the conspiracy count, fifteen years’ imprisonment each for the bribery counts, five years’ imprisonment for the false statements count, twenty years’ imprisonment for each wire fraud count, and a two-year consecutive mandatory minimum sentence for the aggravated identity theft counts, as well as a fine up to $250,000 or triple the bribery proceeds. 

 

            Rolando Suarez, 56, of Coral Gables, pled guilty to conspiracy to commit bribery, in violation of Title 18, United States Code, Sections 371 and 201(b)(1)(C). Rolando Suarez was sentenced to 24 months’ imprisonment and a $20,000 fine. Rolando Suarez also agreed to pay approximately $711,940 in joint and several restitution in relation to the bribery scheme.

 

Acting U.S. Attorney Benjamin G. Greenberg stated, “The Suarez’s, through their company, paid tens of thousands of dollars in bribes to Fernandez, an FAA Aviation Inspector, for the sake of minimizing the cost of doing business, gaining inside information on its competitors, and maximizing profits. This indictment represents our joint efforts to ensure that businesses compete on a level playing field, without improper outside influences or the payment or receipt of bribes.”

 

“This investigation of alleged bribery demonstrates that those entrusted with ensuring the safety our aviation system are held to the highest standards of integrity in the roles for which they are employed,” said Marlies T. Gonzalez, Regional Special Agent-In-Charge, U.S. Department of Transportation Office of Inspector General (DOT OIG). “The Department of Transportation has made safety and accountability a top priority. Working with our law enforcement and prosecutorial partners, we will continue our vigorous efforts to prevent, detect and prosecute fraud schemes that compromise the safety of the traveling public.”

 

“When those entrusted with aviation system safety put self-interest and personal enrichment ahead of their obligation, they breach the public's trust,” said Robert F. Lasky, Special Agent in Charge, FBI Miami.  “We encourage anyone who may have information about corruption to come forward and report it. This information is vital to our work. The South Florida community can be assured that public corruption will remain a top priority for the FBI.”

 

            According to the indictment, from 2010 through June 28, 2013, Fernandez served as a FAA Aviation Safety Inspector with the FAA South Florida Flight Standards District Office (“FSDO”).  Patricia Suarez and Rolando Suarez were the co-owners, officers, and directors of AVCOM, a Miami aviation repair company, which was subject to the jurisdiction and official responsibility of the FAA South FSDO.

 

            Patricia Suarez and Rolando Suarez corruptly provided thousands of dollars in cash, income, credit cards, vacation cruises, airline tickets, and other things of value to Fernandez, in exchange for Fernandez violating his lawful and official duties as an FAA Aviation Safety Inspector. In violation of his lawful and official duties, Fernandez provided AVCOM with improperly obtained aviation repair manuals, which saved AVCOM vast sums of money.  Fernandez assisted AVCOM in altering and erasing language, warnings, and advisories from the manuals that indicated confidential, proprietary, copyrighted, and trade secret material. Fernandez also provided AVCOM with notice and warnings as to FAA inspections and investigations regarding AVCOM and its competitors, disclosed to AVCOM sensitive and confidential information regarding AVCOM’s competitors, and concealed and failed to report AVCOM legal, regulatory, and policy violations to the FAA.

 

            In addition to cash payments, in order to funnel additional money to Fernandez, Patricia Suarez and Rolando Suarez submitted documents to AVCOM’s payroll provider establishing Fernandez’s relative as a no-show employee. In turn, Fernandez’s relative promptly provided these AVCOM funds directly to him. Patricia Suarez and Rolando Suarez also issued various company checks made out directly to Fernandez.

 

            According to the indictment, Fernandez also provided materially false statements to the FAA and DOT in order to hide his AVCOM activities. Additionally, Fernandez electronically submitted fraudulent sick leave requests to the FAA, including utilizing a forged and fictitious doctor’s note.

 

            Mr. Greenberg commended the investigative efforts of the DOT-OIG and the FBI Miami Area Corruption Task Force in this matter. This case is being prosecuted by Assistant U.S. Attorney Sean T. McLaughlin.

 

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 Boynton Beach resident was sentenced to 20 years in prison, followed by lifetime of supervised release for sex trafficking of a minor and producing child pornography.

 

Benjamin G. 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 Jeffrey S. Katz, Chief, Boynton Beach Police Department (BBPD), made the announcement.

 

Marco Vinicio Orrego, 31, of Boynton Beach, Florida, previously pled guilty to committing sex trafficking of a minor, in violation of Title 18, United States Code, Section 1591(a), and production of child pornography, in violation of Title 18, United States Code, Section 2251(a) and (e) (Case No. 17-CR-80097-Middlebrooks).   

 

According to court records, from May 3 through May 5, 2017, Orrego prostituted a sixteen-year-old girl using Backpage.com. He provided her with transportation and a hotel for these illicit activities, taking all of the proceeds for himself. Additionally, Orrego had sex with the minor during that same period and created videos of the sexual abuse.

 

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

 

Mr. Greenberg commended the investigation efforts of ICE-HSI and the Boynton Beach Police Department.  This case is being prosecuted by Assistant United States Attorney Gregory Schiller.

 

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

Merice Perez Colon, 35, of Homestead, Florida, was sentenced by United States District Judge Kathleen M. Williams to 10 years’ imprisonment and 50 years of supervised release following her conviction for attempting to coerce and entice an unaccompanied alien minor to engage in illicit sexual activity.

 

Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG), Miami Regional Office, and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), made the announcement.

Perez Colon was employed as a youth care worker at an emergency influx shelter that has since been closed in Homestead that provided services to unaccompanied alien children present in the United States.  Perez Colon engaged in inappropriate relationships with minors she met at the shelter by sending and receiving explicit videos and images. 

Acting U.S. Attorney Benjamin G. Greenberg said, “The U.S. Attorney’s Office and our law enforcement partners stand united against child exploitation and abuse.  Any individual who victimizes unaccompanied alien minors or any other children, who are among society’s most vulnerable victims, can look to this sentencing and see they will face severe consequences within the federal criminal justice system.”

“The sexual exploitation of minors is particularly reprehensible,” said Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services, Office of Inspector General. “The OIG and our partners will tirelessly pursue those who would violate their position of trust in order to prey on children under the care of the U.S. Government. As seen in this case, they will be held accountable.”

“Perez Colon held a position where she was entrusted with providing care for unaccompanied minors - a trust she violated by sending inappropriate material to her victims,” said HSI Special Agent-in-Charge Mark Selby. “Her behavior is indefensible; and it only reaffirms that joint law enforcement initiatives which target these types of offenders are the best way to ensure they are captured, and held accountable for their illegal and harmful behavior.”

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

Mr. Greenberg commended the investigative efforts of HHS-OIG and ICE-HSI. This case is being prosecuted by Assistant United States Attorney Jonathan Kobrinski.

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

Two South Florida residents who captured and restrained three Florida Key deer on Big Pine Key were sentenced today in federal court in Key West for violations of the Endangered Species Act, Title 16, United States Code, Sections 1538(a)(1(B), 1540(b)(1) and Title 18, United States Code, Section 2.

 

Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, David Pharo, Resident Agent in Charge, U.S. Fish & Wildlife Service, Office of Law Enforcement, Miami Field Office, and Major Alfredo Escanio, Regional Commander, Florida Fish & Wildlife Conservation Commission, Southeast Region Bravo, made the announcement.

 

The defendants, Erik Damas Acosta, 18, of Miami Gardens, and Tumani A. Younge, 23, of Tamarac, previously pled guilty for their involvement in the July 2, 2017 incident on Big Pine Key in Monroe County, Florida. United States District Judge Jose E. Martinez sentenced Acosta to a total term of one year in jail on the counts of conviction, followed by two years of supervised release, and ordered him to perform 200 hours of community service. Younge was sentenced to time already served, placed on 180 days of home confinement subject to electronic monitoring, given a term of supervised release of two years, and ordered to perform 200 hours of community service. The Court further found that neither defendant could pay a criminal fine.

 

According to court records, including a Joint Factual Statement signed by the defendants, they used food to lure the three deer to them and then captured the deer. The defendants trussed up the deer and then placed them in their vehicle. They further admitted that their actions resulted in injury to an adult male Key deer. That animal, which suffered a fractured leg among other injuries, had to be euthanized by authorities.

 

After departing the Big Pine Key area in their car, southbound on the Overseas Highway, the defendants were stopped as a result of a traffic infraction and the three deer found in the vehicle – the adult male in the trunk, and a juvenile male along with a doe, confined in the back seat of the car.

 

The Endangered Species Act (“ESA”), Title 16, United States Code, Sections 1531 et seq., was enacted by Congress to conserve endangered and threatened species and the ecosystems upon which they depend. The term “endangered species” means any species, or part thereof, which is in danger of extinction throughout all or a significant portion of its range.  Title 16, United States Code, Section 1532(6). The Florida Key deer (Odocoileus virginianus clavium), is included within the list of designated endangered species, set forth in Title 50, Code of Federal Regulations, Section 17.21(c)(1).

 

Mr. Greenberg commended the investigative efforts the U.S. Fish & Wildlife Service, Florida Fish & Wildlife Conservation Commission, Monroe County Sherriff’s Department, National Fish & Wildlife Service Forensics Laboratory in Ashland, Oregon, and the Monroe County State’s Attorney’s Office.  The case is being 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.

Miguel De Paula Arias, 53, of Fort Pierce, was sentenced to 161 months in prison on charges of health care fraud, false statements related to healthcare and aggravated identity theft.

Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Isabel Colon, Regional Director, United States Department of Labor, Employee Benefits Security Administration (DOL-EBSA), Jimmy Patronis, Florida Chief Financial Officer, and Sarah J. Mooney, Chief, West Palm Beach Police Department, made the announcement.

According to the indictment, Arias stole the identities of six retired and semi-retired senior citizen physicians and their Medicare accounts used to submit claims for services provided to patients.  Arias, utilized fake passports, driver’s licenses and other identity documents, to establish bank accounts, mailing addresses and phone answering services in the names of the victim physicians to give the appearance that the physicians were in practice and providing medical care to senior citizens in different locations around the country. Between June 2011 and December 2016, using stolen personal identification information of real senior citizens from around the county, Arias submitted fraudulent and fictitious claims for purportedly providing medical services to Medicare using the victim doctors’ identities. Arias had the money paid by Medicare, resulting from this scheme, deposited into the bank accounts he controlled in the victim doctors’ names.  The doctors, as a result of Arias’ crimes, received bills from the Internal Revenue Service for unpaid taxes and from Medicare for repayment of the apparently fraudulent claims. As a result of the fraudulent and fictitious claims submitted by Arias, he was paid more than $1.6 million.

The court imposed a total sentence of 161 months in prison, followed by three years of supervised release, restitution to Medicare in the amount of $1,665,348.03. Arias has been in custody since December 21, 2016. At the conclusion of the hearing, Arias was remanded to the custody of the Bureau of Prisons to serve his sentence.

Mr. Greenberg commended the investigative efforts of the HHS-OIG, FBI, DOL-EBSA, Florida Division of Investigative and Forensic Services, and the West Palm Beach Police Department.  This case is being prosecuted by Assistant U.S. Attorneys Ellen L. Cohen and Stephanie Evans.  

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

Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, will join the DEA on October 28th for its 14th National Prescription Drug Take Back Day. The biannual event will be held from 10 a.m. to 2 p.m., at thousands of collection sites around the country, including 19 here in the Southern District of Florida. The event is an effort to rid homes of potentially dangerous expired, unused, and unwanted prescription drugs.

 

Acting U.S. Attorney Benjamin G. Greenberg stated, “Prescription drugs that serve no medical purpose should not be in our homes. They are subject to misuse and abuse. The Drug Enforcement Administration’s Prescription Drug Take-Back initiative addresses this public safety and health issue by allowing everyone to dispose of prescription drugs safely and anonymously. I encourage everyone to take advantage of this bi-annual event to rid your homes of unused, unnecessary and outdated prescription drugs.”

 

Last April Americans turned in 450 tons (900,000 pounds) of prescription drugs at almost 5,500 sites operated by the DEA and more than 4,200 of its state and local law enforcement partners. Overall, in its 13 previous Take Back events, DEA and its partners have taken in over 8.1 million pounds—more than 4,050 tons—of pills. The disposal service is free and anonymous, no questions asked.

 

Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. According to the Centers for Disease Control and Prevention, 91 Americans die each day from an opioid overdose. Some painkiller abusers move on to heroin: Four out of five new heroin users started with painkillers.

 

Flushing medications down the toilet or throwing them in the trash pose potential safety and health hazards. This initiative addresses the public safety and public health issues that surround medications languishing in home cabinets, becoming highly susceptible to diversion, misuse, and abuse.

 

For more information or to locate a collection site near you, go the DEA Prescription Drug Take Back Day web site at https://takebackday.dea.gov/#collection-locator where you can search by zip code, city, or state.

A Broward county man pled guilty today to production and possession of child pornography.

 

Benjamin G. 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), Timothy R. Langan, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Rick Maglione, Chief, Fort Lauderdale Police Department, made the announcement.

 

Juan Sebastian Chavez, 26, of Ft. Lauderdale, pled guilty to one count of possession of child pornography, in violation of Title 18, United States Code, Section 2252(a)(4)(B), and one count of production of child pornography, in violation of Title 18, United States Code, Section 2251(a) and 2251(e).

 

Sentencing is scheduled for February 9, 2018 before United States District Judge Kenneth Marra. Chavez is facing a possible minimum statutory sentence of 15 years’ imprisonment and a possible maximum statutory sentence of 30 years’.

 

According to court documents, beginning in April 2014 through September 2014, Chavez persuaded, induced, enticed and coerced a minor female child to engage in sexually explicit conduct for the purpose of producing a visual depiction of that conduct using the camera on his cellular telephone. These sexually explicit images of a minor child were uncovered by law enforcement during the execution of a search warrant and search of Chavez’s cellular telephone.  Law enforcement also searched other computers where Chavez possessed more images and videos of child pornography.

 

Mr. Greenberg commended the investigative efforts of the ICE-HSI, FBI and the Fort Lauderdale Police Department. The case is being prosecuted by Assistant U.S. Attorneys Jodi L. Anton and Francis Viamontes.

 

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

Fifteen individuals, including twelve Florida residents, have been charged in a multi-million dollar international money laundering and fraud scheme in two Indictments. 

 

Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Timothy R. Langan, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security (ICE-HSI), made the announcement. 

 

One Indictment charges Roda Taher, 38, of Beruit, Lebanon, Geannis Gonzalez, 31, of Peyton, Colorado, Alfredo Tovar, 36, of Miami Gardens, Quiana Velasco, 35, of Miami, Jose Daniel Estrella, 38, of Hallandale, Pedro Reyes, 38, of Hialeah, Robinson Castillo, 32, of Pembroke Pines, and Jamie Vives Castillo, 41, of Pembroke Pines, with conspiracy to commit money laundering, conspiracy to commit bank fraud, money laudering, and conducting transactions in criminally derived property.  Hanan Jaafar, 26, of Beruit, Lebanon, is also charged with conspiracy to commit money laundering and conspiracy to commit bank fraud.

 

According to the Indictment, from 2008 to the present, Taher has managed and supervised a criminal organization engaged in money laundering and transactions in criminally derived property that has received approximately $94 million dollars in fraudulent proceeds. The organization utilized 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 would recruit individuals to act as “money mules,” establishing the shell corporations in the money mules’ names.  The defendants would then have the money mules open bank accounts throughout South Florida in the names of their shell corporations, instructing 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.  Defendants Gonzalez, Tovar, Velasco, Estrella, Reyes, Castillo, and Vives Castillo all incorporated shell corporations and eventually graduated to recruiting and managing money mules on behalf of the organization. Defendant Jaafar, Taher’s wife, also received criminal proceeds from other members of the organization and transferred portions of those proceeds to accounts overseas.

 

A second Indictment charged Luis Angel de Jesus Alfonseca Pujols, 24, of Sunrise, Gary Alberto Camillo, 26, of Pembroke Pines, Jean-Phillipe Etienne, 25, of Pembroke Pines, Randy Eliessel Santos, 29, of Hollywood, and Cosme Daniel Enrique Vasquez, 36, of Miramar, with conspiracy to commit money laundering, conspiracy to commit bank fraud and wire fraud, international money laundering, money laundering, and bank fraud.  The indictment also charged Karina Marie Ocasio, 24, of Weston, with conspiracy to commit money laundering, conspiracy to commit bank fraud and wire fraud, money laundering, and bank fraud. 

 

            If convicted of the charged conduct, the defendants face a possible maximum statutory sentence of 30 years’ imprisonment for conspiracy to commit bank fraud and wire fraud; 30 years’ imprisonment for bank fraud; 20 years’ imprisonment for conspiracy to commit money laundering; 20 years’ imprisonment for money laundering; 20 years’ imprisonment for international money laundering; and 10 years’ imprisonment for conducting transactions in criminally derived property.

 

            Mr. Greenberg commended the investigative efforts of the FBI, HSI and the South Florida Joint Terrorism Task Force (JTTF) in connection with the investigation of this matter.  The case against Taher et.al. is being prosecuted by Assistant U.S. Attorneys Jared M. Strauss and Michael G. Walleisa. The case against Alfonseca Pujols, et. al. is being prosecuted by Assistant U.S. Attorney Dwayne E. Williams.

 

An indictment is merely an allegation and the 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

Vicente Adolfo Solano, 53, a citizen of Honduras residing in Miami, has been charged with attempting to use a weapon of mass destruction in a planned attack at a shopping mall in Miami. 

 

Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Acting Assistant Attorney General for National Security Dana J. Boente, and Timothy R. Langan, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement. 

 

As described in the complaint, Solano planned to place and detonate an explosive device in a crowded area of a popular Miami mall.  Solano discussed his plot with a confidential human source and two FBI undercover employees.  According to the complaint, Solano provided three videos to the source, 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. 

 

“The top priority of the Department of Justice is to protect the American people from those who intend to take action aimed at terrorizing our community.  The U.S. Attorney’s Office, in collaboration with the FBI, works tirelessly to advance this mission by continuing to thwart home-grown acts of terrorism in all forms,” stated Acting U.S. Attorney Benjamin G. Greenberg.

 

“Protecting the United States from a terrorist attack is the FBI’s number one priority,” said Timothy R. Langan, Acting Special Agent in Charge, FBI Miami.  “There is no room for error.”

 

If convicted, the defendant faces a statutory maximum of life imprisonment and a $250,000 fine.  The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court after considering the advisory Sentencing Guidelines and other statutory factors.

 

Solano is scheduled to have a pre-trial detention hearing on Thursday, October 26, 2017 at 10:00 a.m. before U.S. Magistrate Judge Chris M. McAliley.  The arraignment is scheduled for Monday, November 6, 2017. 

 

Mr. Greenberg and Mr. Boente 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 Gilbert and Trial Attorney Jolie Zimmerman of the National Security Division’s Counterterrorism Section.

 

A criminal complaint is only an accusation and the defendant is presumed innocent unless and until proven guilty.  

 

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

Twenty-nine individuals have been sentenced for their respective roles in selling guns and drugs in Pompano Beach following a yearlong intensive investigation lead by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, and Broward Sheriff’s Office. Sentences imposed on the defendants ranged from one to 12 years in prison.  

 

Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Peter J. Forcelli, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), and Amos Rojas, Jr., United States Marshal, United States Marshals Service (USMS) Fugitive Task Force, made the announcement. 

 

Twenty-nine defendants were sentenced in 23 separate cases for their participation in a narcotics trafficking conspiracy, narcotics trafficking offenses and firearms-related violations.  During the course of the law enforcement operation, the defendants collectively sold a total of 285 firearms to undercover officers, including AR-15s, AKs, pistols, revolvers, a short barrel rifle and a police sniper rifle. The defendants also sold heroin, flakka, cocaine, oxycodone and marijuana to undercover law enforcement officers. 

 

Convicted of primarily firearms-related offenses and sentenced were:

 

1. Francisco Lazaro Acosta, a/k/a “Chino,” 31, of Fort Lauderdale, 70 months’ imprisonment;

2. James Rodney Baker, a/k/a “Bake,” a/k/a "Bubba,” 32, of Pompano Beach, 72 months’ imprisonment;

3. Terrance Roshaud Demps, a/k/a “J.R.,” 28, of Pompano Beach, 37 months’ imprisonment;

4. Rashaun Gaskin, a/k/a “Shaun,” 19, of Fort Lauderdale, 24 months’ imprisonment;

5. Davon Gilbert, a/k/a “Von,” 19, of Plantation, 60 months’ imprisonment;

6. Edwin Nathan Oliver, a/k/a Edwin Olivert,” 35, of Deerfield Beach, 51 months’ imprisonment;

7. Adrian Stephens, 24, of Tamarac, 30 months’ imprisonment; and

8. Otis Thomas, a/k/a “Fat,” 25, of Pompano Beach, 72 months’ imprisonment.

 

Convicted of primarily narcotics-related offenses and sentenced were:

 

1. Alex Bernadin, a/k/a “Ace,” 33, of Deerfield Beach, 21 months’ imprisonment;

2. Jamise Bozeman, a//k/a “J,” 25, of Pompano Beach, 36 months’ imprisonment;

3. Antonio Brown, a/k/a “Big T,” 38 of Pompano Beach, 27 months’ imprisonment;

4. Marcus Depre, 28, of Pompano Beach, 21 months’ imprisonment;

5. Ronald Dutervil, a/k/a “Chris,” 30, of Pompano Beach, 87 months’ imprisonment;

6. Kurt Edward Hanford, 52, of Pompano Beach, 30 months’ imprisonment;

7. Frantz Jacques, a/k/a “Tim,” 34, of Lauderdale Lakes, 15 months’ imprisonment;

8. Terrance Jacsaint, a/k/a “TJ,” 26, of Lantana, 77 months’ imprisonment;

9. Dieuphen Joseph, 28, of Pompano Beach, 46 months’ imprisonment;

10. Vila Desir Jozama, a/k/a “V,” 25, of Pompano Beach, 90 months’ imprisonment;

11. Awince Lasseur, a/k/a “Snowman,” 28, of Pompano Beach, 70 months’ imprisonment;

12. Seaton Letts, Jr., 30, of Pompano Beach, 144 months’ imprisonment;

13. Anthony Tavaris Morris, a/k/a “Amp,” 33, of Pompano Beach; 70 months’ imprisonment;

14. Rodney Levon Newkirk, 20, of Lauderhill, 24 months’ imprisonment;

15. Denny Prenelus, a/k/a “DC,” 25, of Pompano Beach, 14 months’ imprisonment;

16. Wisley Prenelus, a/k/a “Wis,” 33, of Pompano Beach, 77 months’ imprisonment;

17. Walson Prophilis, a/k/a “Wat Wat,” 32, of Pompano Beach, 87 months’ imprisonment;

18. Douglas Tavaris Russell, a/k/a/ “T,” 31, of Pompano Beach, 11 months’ imprisonment

19. Henry D. Smith, a/k/a “Boss,” 36, of Fort Lauderdale, 77 months’ imprisonment

20. Michel-Ange Silien, 29, of Pompano Beach, 24 months’ imprisonment and

21. Jason Howard Tripp, a/k/a “Gucci Guch,” 31, of Boynton Beach, 24 months’ imprisonment. 

 

Mr. Greenberg commended the investigative efforts of ATF, DEA, BSO and the USMS Fugitive Task Force.

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.

Seven Miami-Dade residents have been arrested and charged by indictment with conspiracy to commit Hobbs Act robberies, Hobbs Act robberies, brandishing and discharging firearms in furtherance of crimes of violence, being a felon in possession of ammunition, and murder.

 

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

 

Jonathan Cruz, a/k/a  “Big Man,” a/k/a “Boss Man,” a/k/a “Chico Li,” 31, Eric Ortiz Melendez, a/k/a “E,” 26, Sadieu Nelus, a/k/a “Lucky,” 28, Trayvon Jabbari Thomas,  a/k/a “T,” a/k/a “T-Man,” 19, Jorge Aponte Figueroa, 20, Lazaro Armando Cordovi, a/k/a “Screws,” a/k/a “Loose Screws,” 35, and David Gonzalez, a/k/a “Gano,” 20, all of Miami, were charged by a second superseding indictment with various charges related to a months-long conspiracy to commit armed robberies of pawn shops in Miami-Dade, Broward, and Palm Beach counties, and elsewhere. 

 

According to court records, the defendants, together with other unknown individuals, engaged in a conspiracy to commit robberies of pawn shops beginning in October of 2016 and continuing through October of 2017.  Members of the conspiracy entered various pawn shops in Miami-Dade, Broward, and Palm Beach counties, armed with firearms, and stole jewelry, at gun point, from the pawn shops’ display cases.  On January 5, 2017, during one of the robberies charged in the superseding indictment, a member of the conspiracy shot and killed a patron of the pawn shop.

 

If members of the community have information related to the crimes charged in this indictment, they are encouraged to contact the FBI at (754) 703-2000.

 

Mr. Greenberg commended the investigative efforts of the FBI South Florida Violent Crime and Fugitive Task Force, the City of Miami Police Department, the Miami-Dade Police Department, the Broward Sheriff’s Department, the Palm Beach County Sheriff’s Office, the Palm Springs Police Department, the Hialeah Police Department, the Hollywood Police Department, the Margate Police Department, the Fort Lauderdale Police Department, the Miami Gardens Police Department, and the North Miami Police Department.  The case is being prosecuted by Assistant U.S. Attorney Benjamin Widlanski. 

 

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

 

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

Vicente Adolfo Solano, 53, a citizen of Honduras residing in Miami, has been charged with attempting to use a weapon of mass destruction in a planned attack at a shopping mall in Miami. 

Acting Assistant Attorney General for National Security Dana J. Boente, Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida and Acting Special Agent in Charge Timothy R. Langan of the FBI’s Miami Field Office made the announcement.  

As described in the complaint, Solano planned to place and detonate an explosive device in a crowded area of a popular Miami mall.  Solano discussed his plot with a confidential human source and two FBI undercover employees.  According to the complaint, Solano provided three videos to the source, 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. 

If convicted, the defendant faces a statutory maximum of life imprisonment and a $250,000 fine.  The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court after considering the advisory Sentencing Guidelines and other statutory factors.

Solano is scheduled to have a pre-trial detention hearing on Thursday, Oct. 25, at 10:00 a.m. before U.S. Magistrate Judge Chris M. McAliley.  The arraignment is scheduled for Monday, Nov. 6.  Solano traveled to the U.S. on a tourist visa and was granted temporary legal status for humanitarian reasons in 2002.

A criminal complaint is only an accusation and the defendant is presumed innocent unless and until proven guilty.  

Mr. Boente and Mr. Greenberg commended the investigative efforts of the FBI.  The case is being prosecuted by Assistant U.S. Attorney Karen Gilbert of the Southern District of Florida and Trial Attorney Jolie Zimmerman of the National Security Division’s Counterterrorism Section.

Leon Roberts was sentenced by United States District Judge James I. Cohn to 292 months in prison, to be followed by 25 years of supervised release for sex trafficking a minor.

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

The trial evidence showed that the defendant Leon Roberts, 27, of Ft. Lauderdale, convinced a 14-year-old girl into staying with him and his girlfriend, C.A., at the Crosslands Hotel. Once in his hotel room, he pressured the 14-year-old to prostitute for him for a two month period. The minor (victim) claimed to be 19 years old, but C.A. believed that she was significantly younger.

On June 22, 2016, C.A. and the minor were fed up with Roberts and left the hotel to go stay with a friend for the night. Upon returning back to the hotel in the morning, Roberts was furious at C.A. for taking the minor away for the night.  The disagreement escalated to the point where Roberts called the police to report his girlfriend was pimping out the minor.  When the police arrived the minor disclosed that Roberts was her pimp. Roberts was arrested after the minor’s Backpage ads were found going back to his email address. The jury found Roberts guilty after three hours of deliberation.

Mr. Greenberg commended the investigative efforts of the FBI.  This case was prosecuted by Special Assistant U.S. Attorney M. Catherine Koontz.

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 Justice Department announced that Gerald Wallace, 35, pleaded guilty on Wednesday to threatening to shoot members of a mosque in Miami Gardens, Florida. Wallace pleaded guilty in the Southern District of Florida to one count of obstructing the free exercise of religious beliefs by making the threatening call.

 

During the plea hearing, Wallace admitted that on the evening of Feb. 19, he left a voicemail message for the Islamic Center of Greater Miami, located in Miami Gardens, Florida.  The defendant admitted leaving a hate-filled and profanity laden message against Islam, the prophet Mohammed, and the Koran, during which he threatened to go to the mosque, and stated, “I’m gonna shoot all y’all.” He further admitted that by leaving this threatening message, he obstructed congregants who worship at the Islamic Center from freely exercising their religious beliefs.

 

“The Justice Department will not tolerate threats of hate violence, which threaten whole communities’ sense of safety and security,” said John Gore, Acting Assistant Attorney General of the Civil Rights Division.  “The Justice Department will continue to vigorously prosecute hate crimes so that all people, no matter how they worship, the color of their skin, or their country of origin, can live their lives freely and without fear.”

 

“Hate crimes, no matter their form, engender fear and have no place in our society,” said Acting U.S. Attorney Benjamin G. Greenberg. “By leaving a hate-filled and profanity laden message against Islam and threatening to shoot the members of the mosque he targeted, Gerald Wallace obstructed the free exercise of religion. Hate crimes not only violate our laws, but they are contrary to our country’s most fundamental principles. We will not tolerate the targeting of any community in our society. We will continue to prosecute hate crimes aggressively to ensure that all members of our community can live without fear.”

 

Wallace faces a maximum statutory penalty 20 years in prison and a $250,000 fine for his guilty plea to the hate crime charge.  Sentencing is set for Jan. 17, 2018, in front of U.S. District Court Judge Marcia G. Cooke. 

 

This case was investigated by the FBI’s Miami Area Corruption Task Force and the Miami Gardens Police Department. The case is being prosecuted by Assistant U.S. Attorney Harry C. Wallace, Jr. of the Southern District of Florida and Trial Attorney Samantha Trepel of the Civil Rights Division.

The Justice Department announced that Gerald Wallace, 35, pleaded guilty to threatening to shoot members of a mosque in Miami Gardens, Florida. Wallace pleaded guilty in the Southern District of Florida to one count of obstructing the free exercise of religious beliefs by making the threatening call.

 

During the plea hearing, Wallace admitted that on the evening of Feb. 19, he left a voicemail message for the Islamic Center of Greater Miami, located in Miami Gardens, Florida.  The defendant admitted leaving a hate-filled and profanity laden message against Islam, the prophet Mohammed, and the Koran, during which he threatened to go to the mosque, and stated, “I’m gonna shoot all y'all.” He further admitted that by leaving this threatening message, he obstructed congregants who worship at the Islamic Center from freely exercising their religious beliefs.

 

“Hate crimes, no matter their form, engender fear and have no place in our society,” said Acting U.S. Attorney Benjamin G. Greenberg. “By leaving a hate-filled and profanity laden message against Islam and threatening to shoot the members of the mosque he targeted, Gerald Wallace obstructed the free exercise of religion. Hate crimes not only violate our laws, but they are contrary to our country’s most fundamental principles. We will not tolerate the targeting of any community in our society. We will continue to prosecute hate crimes aggressively to ensure that all members of our community can live without fear.”

 

“The Justice Department will not tolerate threats of hate violence, which threaten whole communities’ sense of safety and security,” said John Gore, Acting Assistant Attorney General of the Civil Rights Division.  "The Justice Department will continue to vigorously prosecute hate crimes so that all people, no matter how they worship, the color of their skin, or their country of origin, can live their lives freely and without fear.”

 

Wallace faces a maximum statutory penalty 20 years in prison and a $250,000 fine for his guilty plea to the hate crime charge.  Sentencing is set for Jan. 17, 2018, in front of U.S. District Court Judge Marcia G. Cooke.

 

This case was investigated by the FBI’s Miami Area Corruption Task Force and the Miami Gardens Police Department. The case is being prosecuted by Assistant U.S. Attorney Harry C. Wallace, Jr. of the Southern District of Florida and Trial Attorney Samantha Trepel of the Civil Rights Division.

 

ARelated 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 jury sitting in Miami, Florida, convicted a resident of Pompano Beach, Florida, of filing fraudulent tax returns, wire fraud and filing false monthly reports with the U.S. Probation Office, announced Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.

According to 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, Beverley stole more than $1.5 million from Majestic Jet by directing airplane escrow agents to wire funds from the sale of planes to nominee bank accounts that Beverley controlled.  Beverley 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.  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.

Sentencing is scheduled for Jan. 5, 2018 before U.S. District Court Judge Beth Bloom.  Beverley faces a statutory maximum sentence of 20 years in prison for the wire fraud counts, three years in prison for each count of filing fraudulent returns and five years in prison for making false statements.  Beverley also faces a period of supervised release, restitution, forfeiture, and monetary penalties.

Acting U.S. Attorney Greenberg and Deputy Assistant Attorney General Goldberg thanked special agents of Internal Revenue Service Criminal Investigation, who conducted the investigation, and Senior Litigation Counsel Neil Karadbil and Assistant Chief Greg Tortella of the Tax Division, who prosecuted the 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 www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov

Gary L. Marder, D.O., 60, a physician residing in Palm Beach County and the owner and operator of the Allergy, Dermatology & Skin Cancer Centers in Port St. Lucie and Okeechobee, appeared in federal court for his initial appearance on an Information, which charges Dr. Marder with obstruction of a criminal health care investigation and health care fraud.

Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Timothy R. Langan, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Miami Region, John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), Southeast Field Office, Patrick L. Fletcher, Special Agent in Charge, U.S. Railroad Retirement Board, Inspector General (RRB-OIG), and Scott Rezendes, Special Agent in Charge, United States Office of Personnel Management, Office of Inspector General (OPM-OIG), made the announcement.

According to the Information, Dr. Marder is charged with obstructing the investigation of federal health care fraud by delivering falsified and altered patient files that had been subpoenaed by a federal grand jury and delivered to a Special Agent of the Federal Bureau of Investigation.  Dr. Marder is also charged with having submitted approximately $350,000 in false claims for the services of a medical physicist to health care benefits programs. 

If convicted, Dr. Marder faces a possible maximum statutory sentence of five years’ imprisonment for obstruction of a criminal health care investigation; and, ten years’ imprisonment for health care fraud.

At Dr. Marder’s initial appearance the Magistrate Judge released Dr. Marder on bond.  The Magistrate Judge set a $1 million personal surety bond co-signed by Dr. Marder’s wife, surrender of Dr. Marder’s passport, and other standard conditions.

Mr. Greenberg commended the investigative efforts of the FBI, HHS-OIG, DCIS, RRB-OIG and OPM-OIG.  This case is being prosecuted by Assistant U.S. Attorney Ellen L. Cohen.  

An information is merely an allegation and the 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 federal jury sitting in Miami, Florida, convicted a resident of Pompano Beach, Florida, of filing fraudulent tax returns, wire fraud and filing false monthly reports with the U.S. Probation Office, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida.

 

According to 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, Beverley stole more than $1.5 million from Majestic Jet by directing airplane escrow agents to wire funds from the sale of planes to nominee bank accounts that Beverley controlled.  Beverley 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.  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.

 

Sentencing is scheduled for Jan. 5, 2018 before U.S. District Court Judge Beth Bloom.  Beverley faces a statutory maximum sentence of 20 years in prison for the wire fraud counts, three years in prison for each count of filing fraudulent returns and five years in prison for making false statements.  Beverley also faces a period of supervised release, restitution, forfeiture, and monetary penalties.

 

Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Greenberg thanked special agents of Internal Revenue Service Criminal Investigation, who conducted the investigation, and Senior Litigation Counsel Neil Karadbil and Assistant Chief Greg Tortella of the Tax Division, who prosecuted the case. 

 

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

Elisa Pelaez, 54, Ginou Baptiste, 48, and Fritz Cyriaque (a/k/a “Joseph,” a/k/a “Ferguson”), 50, all of Miami, were indicted by a federal grand jury for conspiracy to solicit, demand and accept money or anything of value in excess of $5,000, from aliens, intending to be influenced and rewarded in connection with any business, transaction, and series of transactions, of Behavioral Intervention, Inc. a/k/a BI, Inc. (BI, Inc.), a Geo Group Company, an organization that received in any one year period, benefits in excess of $10,000, under a federal program involving a contract.

 

Benjamin G. Greenberg, Acting U.S. Attorney for the Southern District of Florida, Jay Donly, Special Agent in Charge, Department of Homeland Security, Office of Inspector General (DHS-OIG), and Michael T. Moreland, Special Agent in Charge, U. S. Immigration and Customs Enforcement, Office of Professional Responsibility (ICE-OPR), made the announcement. 

 

According to court documents, DHS and ICE conducted an undercover operation into an immigration fraud ring suspected of soliciting aliens participating in the Intensive Supervision Appearance Program. The Intensive Supervision Appearance Program was administered by BI, Inc., a private company contracted by the U.S. Department of Homeland Security. BI, Inc. relied on electronic GPS monitoring devices, telephonic reporting, office interviews, unannounced home visits, employment verification, case management services, and documenting aliens’ attendance at court hearings to perform its contractual obligations to monitor individuals in the Intensive Supervision Appearance Program.

 

Elisa Pelaez was an employee and agent of BI, Inc. She managed staff, conducted community outreach, and supervised aliens awaiting immigration proceedings. Ginou Baptiste was an employee and agent of BI, Inc. She supervised aliens awaiting immigration proceedings. Fritz Cyriaque was an associate of defendants Pelaez and Baptiste.

 

From on or about November 2010 through February 2014, defendants Pelaez and Baptiste used their positions of authority as employees and agents of BI, Inc. to unlawfully demand and receive monies from participants in the Intensive Supervision Appearance Program in exchange for removal of their electronic monitoring devices. Baptiste would identify participants who desired to have their electronic monitor removed prematurely and had the ability to pay for its removal. Pelaez and Baptiste referred participants seeking to have their electronic monitors removed to Cyriaque.  Batiste told participants in the Intensive Supervision Appearance Program that Cyriaque was an ICE official who could assist them in resolving their immigration issues.  Cyriaque posed as a United States ICE official and collected monies from participants in the Intensive Supervision Appearance Program in exchange for removal of their electronic monitoring device. After Cyriaque obtained payments from the participants, Pelaez and Baptiste would direct other BI, Inc. employees to remove the participants’ monitors. Additionally, Pelaez, Baptiste and Cyriaque used intimidation and other means to further the conspiracy and to dissuade participants from reporting their illegal conduct to law enforcement.

 

Mr. Greenberg commended the investigative efforts of DHS-OIG and ICE-OPR.  This case is being prosecuted by Assistant U.S. Attorney Francis Viamontes.

 

An indictment is merely an allegation and all defendants are 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 South Florida attorney was charged with securities fraud, wire fraud, and money laundering offenses in connection with a scheme to fraudulently register shell companies with the U.S. Securities and Exchange Commission (SEC), issue a class of unrestricted or “free-trading” shares in the companies that they secretly controlled, and sell the shares to the investing public at a profit.  To date, nine defendants have been charged and convicted in connection with the ongoing prosecution of the Shell Factory Fraud investigation.

 

            Randy A. Hummel, Executive Assistant United States Attorney, U.S. Attorney’s Office for the Southern District of Florida, and Timothy R. Langan, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.

 

James M. Schneider, 76, of Hillsboro Beach, Florida, was charged by indictment with one count of conspiracy to commit securities and wire fraud, in violation of Title 18, United States Code, Section 1349; five counts of securities fraud, in violation of Title 18, United States Code, Section 1348; six counts of wire fraud, in violation of Title 18, United States Code, Section 1343; conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h), and  twenty counts of money laundering, in violation of Title 18, United States Code, Section 1957.  Schneider faces a maximum statutory sentence of twenty-five years for the securities fraud conspiracy count, twenty-five years each for the securities fraud counts, and ten years each for the conspiracy to commit money laundering and money laundering counts, as well as a fine up to $250,000 or double the proceeds as to each.  The case is No. 17-20712-CR-FAM and is assigned to U.S. District Judge Federico A. Moreno in Miami. 

 

In related cases, seven defendants have been charged to date: Daniel McKelvey, 49, of Foster City, California, and Jeffrey L. Lamson, 51, of El Dorado Hills, California, were charged in Case No. 16-20546-CR-RNS; Steven Sanders, 73, of Lake Worth, Florida, and Alvin S. Mirman, 78, of Sarasota, Florida, were charged in Case No. 16-20572-CR-CMA; Sheldon Rose, 77, of Sarasota, and Ian Kass, 45, of Ft. Lauderdale, in Case No. 16-20707-CR-JEM, and David Lubin, 52, of West Hempstead, New York, in Case No. 17-20508-CR-MGC.  All seven of these defendants were convicted.  Six of the seven have already been sentenced, and sentencing for Lubin is scheduled for November 2, 2017, before U.S. District Judge Marcia G. Cooke in Miami.  In an additional related case, Myron Gushlak and Yelena Furman were also indicted on October 10, 2017, in Case No. 17-20713-CR-CMA.

 

According to the indictment, from approximately March 2008 through approximately May 2015, Schneider conspired with Sanders, McKelvey, Mirman, Lamson, Lubin and others in a scheme to fraudulently create shell companies and file documents with the SEC indicating that the companies were controlled by a nominee chief executive officer (CEO).  The straw CEO would be listed as the owner of the control block of shares but in reality the companies were controlled by the principals.  The control block of shares listed in the name of the officer were deemed restricted and could not be sold to the public.  The principals would also list in SEC filings the a description of various shareholders to make it appear that these shares were owned by persons other than the conspirators.  These shares would later become unrestricted, or “free trading” and secretly sold to shell buyers.  Using false and fraudulent documentation describing the companies’ business purpose and share ownership, the principals would then obtain approval for the shares of the companies to be sold publicly over the counter.  Thereafter, the principals would sell the companies to shell buyers who would secretly obtain both the control shares and the purported “free trading” shares without disclosure of this common control and simultaneous sale to the SEC or the investing public.  This would allow the shell buyers to engage in stock manipulation or pump and dump schemes using the “free trading” shares.

 

Schneider, according to the indictment, was an attorney licensed to practice in Florida who authored false and fraudulent legal opinion letters indicating that shares of the companies were owned by persons who were not “affiliates,” when in truth and in fact the shares were owned and controlled by the conspirators.  Schneider also created false billing records to make it appear like he was performing work for, and taking direction from, the straw CEOs.  In reality, he took his direction from Sanders and McKelvey, who would keep their names off of documents.  Schneider also performed so-called escrow services for the sale of the shell entities, including the illegal sale of the purported free trading shares, and wired more than $5.6 million in proceeds to bank accounts controlled by the conspirators.  Schneider did this, according to the indictment, even though he had no authorization from the named shareholders or verification that the persons whose names were listed on the escrow agreements authorized or approved these transfers.

 

The SEC today announced a parallel civil enforcement action against Schneider.

 

Mr. Hummel commended the investigative efforts of the FBI’s Miami Field Office.  Mr. Hummel also thanked the SEC’s Washington Home Office and Miami Regional Office for their assistance with the ongoing Shell Factory Fraud investigation.  The SEC previously filed civil enforcement actions against McKelvey, Sanders, Mirman, Rose, Kass, Lamson, and Lubin.  This matter is being prosecuted by Assistant U.S. Attorney Jerrob Duffy.

 

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.

United States Citizenship and Immigration Services Officer Jovany Perez, 34, of Miami, Florida, was sentenced to 48 months imprisonment following his conviction for receiving a bribe while a public official.

Benjamin G. Greenberg, Acting U.S. Attorney for the Southern District of Florida, and Jay Donly, Special Agent in Charge, Department of Homeland Security, Office of the Inspector General (DHS-OIG), made the announcement.

According to the evidence, on April 20, 2017, Perez interviewed a female alien beneficiary in his capacity as a United States Citizenship and Immigration Services (“USCIS”) officer assigned to adjudicate her immigration application. The interview related to the validity of the beneficiary’s marriage, which would have afforded her lawful permanent residency in the United States if found to be valid. During the interview, Officer Perez confronted the beneficiary with his belief that her marriage was fraudulent.  Perez completed and directed the beneficiary to sign a written statement, purporting to be a confession by beneficiary that she had committed marriage fraud.  At the conclusion of the interview, Perez provided the beneficiary with his contact information and told her that he could help her with her case, but could not do so at the USCIS office.

Later that same day, the beneficiary contacted Perez and they scheduled to meet later that day in the parking lot of a restaurant located in Miami-Dade County. During the meeting, while sitting with the beneficiary in his vehicle, Perez fondled the beneficiary’s breasts, asked her whether she was wearing a wire, and exposed his penis to her. Perez explained to her that he was the ultimate decision maker in her case, and stated that the two could have a sexual encounter there in the vehicle. The beneficiary declined and the two agreed to meet on a later date.

On May 9, 2017, the beneficiary met with Perez and Perez informed her that he possessed her file, that he would remove her written statement from the file, and that he would replace it with another statement that he would help her draft. When the beneficiary asked Perez what she would have to do in exchange for his assistance, Perez stated that if she did not want to exchange sex, she could pay him money. The two agreed that the beneficiary would pay Perez $2,000.00 in exchange for his assistance.

On May 17, 2017, Perez accepted $2,000.00 from the beneficiary, in return for his promise to remove the previously-written statement regarding the validity of her marriage and replace it with a statement to assist her permanent residency petition. Perez was arrested that same day, and was charged by Complaint and then Indictment of Receiving a Bribe in violation of 18 U.S.C., Section 201(b)(2)(A).

On July 26, 2017, Perez pled guilty to the Receiving a Bribe charge in the Indictment. 

On October 6, 2017, Perez was sentenced to a four-year term in prison, followed by a three-year term of supervised release.

Mr. Greenberg commends the investigative efforts of the DHS-OIG. This case was prosecuted by Special Assistant United States Attorneys Michele S. Vigilance and Monica V. Atkins and Assistant United States Attorney Jessica Kahn Obenauf.

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

Two individuals were charged with securities fraud, money laundering and obstruction of justice offenses in connection with a scheme to sell fraudulently registered shares of public companies and to hide and conceal these activities and the proceeds from the United States District Court for the Eastern District of New York.  This case is part of the ongoing Shell Factory Fraud criminal investigation.

 

            Randy A. Hummel, Executive Assistant United States Attorney, U.S. Attorney’s Office for the Southern District of Florida, and Timothy R. Langan, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement. 

 

Myron Gushlak, 47, a Canadian citizen who formerly resided in Miami Beach and the Cayman Islands, and Yelena Furman, a/k/a “Elena Furman,” 36, of New York, were charged by indictment with conspiracy to commit securities fraud, in violation of Title 18, United States Code, Section 1349; five counts of securities fraud, in violation of Title 18, United States Code, Section 1348; conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h); two counts of money laundering, in violation of Title 18, United States Code, Section 1956(a)(1)(B)(i); and, obstruction of official proceeding, in violation of Title 18, United States Code, Section 1512(c)(2).  The defendants face a maximum statutory sentence of twenty-five years for the conspiracy and securities fraud counts, twenty years each for the conspiracy to commit money laundering and money laundering counts, and twenty years for the obstruction count, as well as a fine up to $250,000 or double the proceeds as to each.  The case is No. 17-CR-20713-CMA and is assigned to U.S. District Judge Cecilia M. Altonaga in Miami. 

 

In related cases, seven defendants have been charged to date: Daniel McKelvey, 49, of Foster City, California, and Jeffrey L. Lamson, 51, of El Dorado Hills, California, were charged in Case No. 16-20546-CR-RNS; Steven Sanders, 73, of Lake Worth, Florida, and Alvin S. Mirman, 78, of Sarasota, Florida, were charged in Case No. 16-20572-CR-CMA; Sheldon Rose, 77, of Sarasota, and Ian Kass, 45, of Ft. Lauderdale, in Case No. 16-20707-CR-JEM, and David Lubin, 52, of West Hempstead, New York, in Case No. 17-20508-CR-MGC.  All seven of these defendants were convicted.   Six of the seven have already been sentenced, and sentencing for Lubin is scheduled for November 2, 2017, before U.S. District Judge Marcia G. Cooke in Miami. 

 

The indictment alleges that Gushlak was convicted of conspiracy to commit securities fraud and conspiracy to commit money laundering in Case No. 03-833-CR-NGG in the United States District Court for the Eastern District of New York (the “EDNY Criminal Case”).  On November 18, 2010, the court sentenced Gushlak to 72-months imprisonment and ordered him to pay a $25 million fine due immediately.  After lengthy restitution proceedings, on May 15, 2012, the court ordered Gushlak to additionally pay restitution of approximately $17.4 million, also due immediately.

 

The indictment alleges that while Gushlak was on bond in the EDNY Criminal Case leading up to his November 2010 sentencing, and while he was serving his prison sentence, Gushlak, Furman, Lubin, and others participated in a scheme to fraudulently register and sell securities of public shell companies.  This included the fraudulent filing of documents with the U.S. Securities and Exchange Commission (SEC), using the sister-in-law of Furman as a nominee chief executive officer (CEO).  This was done, according to the indictment, to conceal the role of Gushlak and his control over shares that were purportedly owned in the names of others.  The indictment alleges that these shares were then sold to other co-conspirators who were located in Miami-Dade and Broward Counties, Florida, and that the shares were then illegally sold to the investing public.

 

In another instance, according to the indictment, after Gushlak was sentenced to federal prison and serving his sentence, Gushlak, Furman, Lubin, Sanders, McKelvey and Lamson worked together to fraudulently sell the free-trading shares of Entertainment Art, Inc. (“EERT”).  The allegations include meetings with Gushlak while he was serving his federal prison sentence at which the conspirators discussed the details of the fraudulent transactions.  After causing false and fraudulent flings with the SEC, the shares were then sold to criminal actors.  These criminal actors were then in a position to conduct a significant pump and dump stock swindle involving Biozoom, Inc. (“BIZM”) after causing a reverse merger of EERT into BIZM.

 

The indictment alleges that, because Gushlak’s assets were frozen by the United States District Court in the EDNY Criminal Case, and he had been ordered to pay a $25 million fine and restitution of approximately $17.4 million, Gushlak, Furman, Sanders and others engaged in elaborate steps to hide and conceal the proceeds of these stock sales from the United States District Court in Brooklyn, New York.  According to the indictment, Gushlak and Furman enlisted the assistance of Sanders and others to use the trust account of an attorney in Boca Raton, Florida, to wire the funds in such a way that they would be difficult or impossible to attribute to Gushlak.  This included wiring funds to an intermediary in Switzerland and to an account controlled by Furman in New York that was used to pay Gushlak’s bills while he was in prison.

 

Mr. Hummel commended the investigative efforts of the FBI’s Miami and New York Field Offices.  Mr. Hummel also thanked the SEC’s Miami Regional Office and Washington Home Office for their assistance with the ongoing Shell Factory Fraud investigation.  This matter is being prosecuted by Assistant U.S. Attorney Jerrob Duffy.

 

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 Lauderhill, Florida, man pleaded guilty today to aggravated identity theft and conspiring to use stolen IDs to file fraudulent tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida.

 

According to documents filed with the court, from approximately 2008 through January 2015, in Broward and Miami-Dade Counties, Evens Julien and others, used stolen IDs, including the personal identifying information of prisoners and deceased individuals, to file over 2,000 tax returns with the Internal Revenue Service (IRS).  These fraudulent returns sought more than $2 million in refunds.  Julien and his co-conspirators recruited others to obtain Electronic Filing Identification Numbers (EFIN) from the IRS in their names and used the EFINs to file the fraudulent returns.  They directed the refunds to debit cards and treasury checks and had them mailed to South Florida addresses.  They then cashed the fraudulently obtained refund checks at check cashing stores and used Western Union and ATMs to withdraw the funds.   

 

Sentencing is scheduled for Dec. 27 before U.S. District Court Judge Federico A. Moreno.  Julien faces a statutory maximum sentence of five years in prison for the conspiracy charge and a mandatory minimum sentence of two years in prison for the aggravated identity theft charge.  He also faces a period of supervised release, restitution and monetary penalties. 

 

Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Greenberg commended special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Neil Karadbil and Assistant Chief Greg Tortella of the Tax Division, who prosecuted the case.

 

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

A Lauderhill, Florida, man pleaded guilty today to aggravated identity theft and conspiring to use stolen IDs to file fraudulent tax returns, announced Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. 

 

According to documents filed with the court, from approximately 2008 through January 2015, in Broward and Miami-Dade Counties, Evens Julien and others, used stolen IDs, including the personal identifying information of prisoners and deceased individuals, to file over 2,000 tax returns with the Internal Revenue Service (IRS).  These fraudulent returns sought more than $2 million in refunds.  Julien and his co-conspirators recruited others to obtain Electronic Filing Identification Numbers (EFIN) from the IRS in their names and used the EFINs to file the fraudulent returns.  They directed the refunds to debit cards and treasury checks and had them mailed to South Florida addresses.  They then cashed the fraudulently obtained refund checks at check cashing stores and used Western Union and ATMs to withdraw the funds.   

 

Sentencing is scheduled for Dec. 27 before U.S. District Court Judge Federico A. Moreno.  Julien faces a statutory maximum sentence of five years in prison for the conspiracy charge and a mandatory minimum sentence of two years in prison for the aggravated identity theft charge.  He also faces a period of supervised release, restitution and monetary penalties. 

 

Acting U.S. Attorney Greenberg and Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Neil Karadbil and Assistant Chief Greg Tortella of the Tax Division, who prosecuted the 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 www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

A Fort Lauderdale, Florida resident was convicted by a jury of conspiracy to commit bank fraud, bank fraud, and aggravated identity theft.

 

Benjamin G. 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 W. Howard Harrison, Chief, Plantation Police Department, made the announcement. 

 

Teresa Thompson, 59, of Fort Lauderdale, was convicted at trial of one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349, four counts of bank fraud, in violation of Title 18, United States Code, Section 1344, and one count of aggravated identity theft, in violation of Title 18 United States Code, Section 1028A(a)(1). 

 

Sentencing is scheduled for December 12, 2017 before U.S. District Judge William P. Dimitrouleas.  She faces a statutory maximum penalty of 30 years in prison. 

 

The evidence at trial established that between October 24, 2016 and November 29, 2016, Thompson signed and deposited over $28,000 in stolen checks into her TD Bank account.  Thompson received the checks from a co-conspirator who stole them from mailboxes in Plantation and Fort Lauderdale.

 

Mr. Greenberg commended the investigative efforts of the ICE-HSI and the Plantation Police Department. The case was prosecuted by Assistant United States Attorneys Joshua S. Rothstein and David Turken.

 

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 resident pled guilty yesterday before U.S. Magistrate Judge William Matthewman to production and transmission of 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 Jeffrey Katz, Chief, Boynton Beach Police Department (BBPD), made the announcement.

Kevin Scott Mitchell, a/k/a “kev_bear1@yahoo.com,” 62, of Lake Worth, pled guilty yesterday to the Indictment, which charged him with 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).  During the plea hearing, the facts relayed were that Mitchell had sex with the 16-year-old victim since January 2016 at a hotel in Boynton Beach, Florida.  He took photographs and videos during the sexual encounters, when his trucking route brought him to South Florida. 

In May 2017, the victim, then 17, reported the sexual abuse to law enforcement when Mitchell emailed a threat to release the photos to the victim’s friends and family.  When Mitchell later texted to the victim, undercover detectives from the Boynton Beach Police Department responded as the victim.  Mitchell proceeded to send child pornography of the victim to the detective.  He was apprehended several days later in upstate New York.  Found in his possession were digital devices that contained child pornography of the victim.

Mr. Greenburg commended the investigative efforts of ICE-HSI and BBPD.  The case is being 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 fugitive, wanted on federal drug trafficking and money laundering charges for over two years, was arrested and is scheduled to have his initial appearance tomorrow in U.S. Magistrate Court in Miami, Florida. 

 

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 (HSI), Miami Field Office, Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, Rodolfo Llanes, Chief, Miami Police Department (MPD), and Amos Rojas, Jr., United States Marshal, U.S. Marshals Service (USMS), made the announcement.

 

According to the Superseding Indictment, from about November 2011 through September 25, 2015, Josue Morales Figueroa, 35, of Miami, was involved in conspiracies to import and to distribute ethylone and methylone, which are among numerous chemicals used to make the drug commonly referred to as “molly,” as well as a conspiracy involving the unlawful transmission of monetary instruments to China.

 

A total of eleven defendants were charged in the Superseding Indictment, and all but Morales had been arrested, pled guilty, and been sentenced.

 

Mr. Greenberg commended the investigation efforts of the ICE-HSI, DEA, MPD and USMS.  This case is being prosecuted by Assistant United States Attorneys Marton Gyires and Andy Camacho.

 

An indictment 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.

Today, Attorney General Jeff Sessions and Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, announced several Department of Justice actions to reduce the rising tide of violent crime in America. Foremost of those actions is the reinvigoration of “Project Safe Neighborhoods,” a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.

 

In announcing this recommitment to Project Safe Neighborhoods, the Attorney General issued a memo directing United States Attorneys to implement an enhanced violent crime reduction program that incorporates the lessons learned since Project Safe Neighborhoods launched in 2001.

 

In a statement on the program, the Attorney General said:

 

“According to the FBI, the violent crime rate has risen by nearly seven percent over the past two years, and the homicide rate has risen by more than 20 percent. We cannot be complacent or hope that this is just an anomaly: we have a duty to take action.”

 

“Fortunately, we have a President who understands that and has directed his administration to reduce crime. The Department of Justice today announces the foundation of our plan to reduce crime: prioritizing Project Safe Neighborhoods, a program that has been proven to work.”

 

“Let me be clear – Project Safe Neighborhoods is not just one policy idea among many. This is the centerpiece of our crime reduction strategy.”

 

“Taking what we have learned since the program began in 2001, we have updated it and enhanced it, emphasizing the role of our U.S. Attorneys, the promise of new technologies, and above all, partnership with local communities. With these changes, I believe that this program will be more effective than ever and help us fulfill our mission to make America safer.”

 

Acting U.S. Attorney Benjamin G. Greenberg stated, “As a result of a long-term concerted effort by federal and local law enforcement professionals, community leaders, and concerned citizens who support Project Safe Neighborhood, the Southern District of Florida has successfully targeted and removed numerous violent offenders, felons in possession of guns, and drug traffickers from our streets. Working collaboratively as a team, we share intelligence and leverage our resources in order to enhance our ability to rid our communities of violent and repeat offenders. We are proud of our collaborative efforts and look forward to continuing our work to make the Southern District of Florida a safer place to live.”

 

The Attorney General also announced the following Department of Justice initiatives to help reduce violent crime:

 

-Additional Assistant United States Attorney Positions to Focus on Violent Crime – The Department is allocating 40 prosecutors to approximately 20 United States Attorney’s Offices to focus on violent crime reduction.

 

-More Cops on the Streets (COPS Hiring Grants) – As part of our continuing commitment to crime prevention efforts, increased community policing, and the preservation of vital law enforcement jobs, the Department will be awarding approximately $98 million in FY 2017 COPS Hiring Grants to state, local, and tribal law enforcement agencies.

 

-Organized Crime and Drug Enforcement Task Force’s (OCDETF) National Gang Strategic Initiative –The National Gang Strategic Initiative promotes  creative enforcement strategies and best practices that will assist in developing investigations of violent criminal groups and gangs into enterprise-level OCDETF prosecutions.  Under this initiative, OCDETF provides “seed money” to locally-focused gang investigations, giving state, local, and tribal investigators and prosecutors the resources and tools needed to identify connections between lower-level gangs and national-level drug trafficking organizations.

 

-Critical Training and Technical Assistance to State and Local Partners –The Department has a vast array of training and technical assistance resources available to state, local and tribal law enforcement, victims groups, and others.  To ensure that agencies in need of assistance are able to find the training and materials they need, OJP will make available a Violence Reduction Response Center to serve as a “hot line” to connect people to these resources. 

 

-Crime Gun Intelligence Centers (CGIC) – The Department has provided grant funding to support a comprehensive approach to identifying the most violent offenders in a jurisdiction, using new technologies such as gunshot detection systems combined with gun crime intelligence from NIBIN, eTrace, and investigative efforts.  These FY 2017 grants were awarded to Phoenix, AZ, and Kansas City, MO. 

 

-Expand ATF’s NIBIN Urgent Trace Program – The Department will expand ATF’s NIBIN Urgent Trace Program nationwide by the end of the year.  Through this program, any firearm submitted for tracing that is associated with a NIBIN “hit” (which means it can be linked to a shooting incident) will be designated an “urgent” trace and the requestor will get information back about the firearm’s first retail purchaser within 24 hours, instead of 5 to 6 business days.

Three Miami-Dade County, Florida residents, Ali Caby, aka “Alex Caby,” 40, Arash Caby, aka “Axel Caby,” 43, and Marjan Caby, 34, pleaded guilty on Oct. 3 to Count 1 of an Indictment charging them with conspiracy to defraud the United States and to illegally export aviation parts and equipment to Syria in violation of the International Emergency Economic Powers Act (IEEPA).  The exports were sent to Syrian Arab Airlines, aka “Syrian Air,” which had been designated as a Specially Designated National (SDN) by the U.S. Department of Treasury, Office of Foreign Assets Control (OFAC).  U.S. persons and entities are prohibited from doing business with SDNs, such as Syrian Air, without obtaining a license from OFAC.

Acting Assistant Attorney General Dana J. Boente for National Security, Acting United States Attorney Benjamin G. Greenberg for the Southern District of Florida, Special Agent in Charge George L. Piro 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 members of the South Florida Joint Terrorism Task Force (JTTF) made the announcement. 

The defendants were indicted for their alleged participation in a conspiracy to violate the IEEPA by exporting dual-use goods, that is, articles that have both civilian and military application. The dual-use goods were exported without a license to Syrian Air, 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, Ali Caby ran the Bulgaria office of AW-Tronics, a Miami export company that was managed by Arash Caby, and which shipped and exported various aircraft parts and equipment to Syrian Air.  Ali Caby and Arash Caby closely supervised and encouraged subordinate employees of AW-Tronics in the willful exportation of the parts and equipment to SDN Syrian Air, whose activities have assisted the Syrian government’s violent crackdown on its people.  Marjan Caby, as AW-Tronics’ export compliance officer and auditor, facilitated these exports by submitting false and misleading electronic export information to federal agencies. 

The defendants are scheduled to be sentenced by U.S. District Judge Beth Bloom on Dec. 19.  They face a statutory maximum sentence of up to 5 years in prison, 3 years of supervised release and a $250,000 fine.  The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes.  If convicted of any offense, the sentencing of the defendant will be determined by the court after considering the advisory Sentencing Guidelines and other statutory factors.

 

Mr. Boente and Mr. Greenberg commended the investigative efforts of the FBI, DOC, Department of Homeland Security, Defense Criminal Investigative Service, U.S. Customs and Border Protection and the South Florida JTTF.  The 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 Counterintelligence and Export Control Section of the National Security Division.

Six Florida residents have been charged in a multi-million dollar insurance fraud scheme. 

 

Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced today the unsealing of an Indictment and the filing of two Informations charging a total of six individuals. 

 

The seven-count Indictment charges Felix Filenger, 41, of Sunny Isles, Andrew Rubinstein, 48, of Miami, and Olga Spivak, 59, of Hollywood, with RICO conspiracy, conspiracy to commit mail fraud, wire fraud, and health care fraud, and false statements relating to health care matters.  The one-count Informations charge Richard Yonover, 54, of Boca Raton, Jason Dalley, 66, of Lake Worth, and Linda Varisco, 55, of Coral Springs, with conspiracy to commit mail fraud, wire fraud, and health care fraud. 

 

Filenger, Rubinstein and Spivak appeared for their initial appearance today before U.S. Magistrate Judge Alicia O. Valle.  The defendants were all detained pending a pre-trial detention hearing set for October 10, 2017 at 1:00 p.m. for defendant Spivak and October 11, 2017 at 1:00 p.m. for defendants Filenger and Rubinstein.  All three hearings will be before U.S. Magistrate Judge Lurana S. Snow.   

 

According to the Indictment unsealed today, from 2010 to the present, Filenger and Rubinstein ran a criminal enterprise which was engaged in a pattern of racketeering activity that included conspiracy to commit mail, wire, and healthcare fraud and conspiring to commit money laundering. The criminal enterprise owned a dozen chiropractic clinics which were used to facilitate criminal activities involving automobile insurance fraud. Filenger and Rubinstein fraudulently utilized licensed chiropractors as nominee owners in order to obtain licensing for their clinics, including defendant Spivak.  Filenger and Rubinstein paid illegal kickbacks ranging from $500-$2,100 to persons associated with tow truck companies and other persons who illegally solicited automobile accident victims in order to induce referrals of accident victims to their chiropractic clinics.  Filenger and Rubinstein fraudulently obtained tens of millions of dollars of insurance reimbursement from the Personal Injury Protection (PIP) policies of these accident victims.  Filenger and Rubinstein and their employees conspired to bill the insurance companies for clinic visits and treatment modalities, designed to bill the entire $10,000 PIP coverage and not based on medical necessity.  Filenger and Rubinstein directed their employees to falsify the initial pain levels of the accident victims in order to fraudulently ensure payment from the insurance companies.  Based upon instructions from Filenger and Rubinstein, the co-conspirator chiropractic clinics would treat the patients based solely on a profit motive and without regard for patient health.  This treatment would include costly and invasive nerve conduction velocity tests performed not based upon medical necessity but upon the amount of insurance compensation received.

 

The scheme involved convincing the accident victims to visit the co-conspirator chiropractic clinics at least thirty times, in order to bill the largest amount of PIP reimbursement. Filenger and Rubinstein would work with corrupt lawyers and would pay illegal kickbacks for patients.  If the accident victims failed to treat for at least thirty visits at their chiropractic clinics, Filenger and Rubinstein would refer them back to the corrupt lawyers so that the victims could be instructed to return to the clinics.

 

Linda Varisco was a chiropractor who was the nominee owner of two chiropractic clinics for Filenger and Rubinstein, Advance Medical Associates and Forme Rehab, Inc., and Hollywood Wellness and Rehabilitation, Inc. Varisco and Olga Spivak filed false affidavits with insurance companies claiming that they were 100% owners of clinics that were, in fact, owned by Filenger and Rubinstein.  Richard Yonover was the undisclosed owner of two clinics in Broward County and unlawfully utilized a nominee to obtain licensing for the clinics and to conceal his true ownership interests.  Dalley was an attorney who, along with Richard Yonover, paid illegal kickback payments to obtain clients for personal injury lawsuits.  Dalley, who paid in excess of one million dollars in illegal solicitation fees, would send the auto accident clients to co-conspirator chiropractic clinics owned by Filenger, Rubinstein, and Yonover.

 

            If convicted, defendants Filenger and Rubinstein face a statutory maximum term of imprisonment of 80 years and a fine of up to the greater of $1,750,000 or twice the amount of the criminally derived property. If convicted, defendant Spivak faces a statutory maximum term of imprisonment of 70 years and a fine of up to the greater of $1,250,000 or twice the amount of the criminally derived property. If convicted, defendants Yonover, Dalley, and Varisco face a statutory maximum term of imprisonment of five years and a fine of up to $250,000.

 

            Mr. Greenberg commended the investigative efforts of the FBI, the Internal Revenue Service, the Sunny Isles Police Department, the Florida Statewide Prosecutor’s Office, the Broward Sheriff’s Office, the State of Florida Department of Insurance Fraud, and the Department of Homeland Security in connection with the investigation of this matter.  The case is being prosecuted by Assistant U.S. Attorneys Jeffrey N. Kaplan and Paul F. Schwartz.

 

An indictment and information are merely an allegation and the 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

Corry E. Pearson, 28, of Riviera Beach, was found guilty by a jury of one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, sixteen counts of wire fraud, in violation of 18 U.S.C. § 1343, eight counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A, two counts of money laundering, in violation of 18 U.S.C. § 1956(a)(1)(B)(i), and two counts of money laundering, in violation of 18 U.S.C. § 1957.

 

Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Sarah J. Mooney, Chief, West Palm Beach Police Department, and Frank J. Kitzerow, Chief, Jupiter Police Department, made the announcement.

 

According to the evidence presented at trial, from 2012 through 2014, the defendant and his accomplices submitted more than 1600 federal income tax returns. In some cases, they used Tax King, Inc., a tax preparation business operated by the defendant, to file the returns. In other cases, they filed the returns using home tax preparation software, and falsely represented that the taxpayers had prepared and filed the returns themselves. Almost all the returns were fraudulent. In some cases, the defendant and his accomplices stole other people’s identities and filed Federal income tax returns in the victims’ names, collecting the refunds for themselves. The defendant and his accomplices also falsely reported that money had been withheld from taxpayers’ wages and gambling winnings, falsely claimed that the taxpayers were entitled to education credits when they had not in fact attended school in the years in question, and filed fraudulent returns in the names of inmates who were serving long sentences during the tax year of the return. In order to disguise their own identities, the defendant and his accomplices listed victims of identity theft as tax preparers on the returns they filed and directed that the refunds be deposited onto debit cards and into accomplices’ bank accounts. In total, the returns filed by the defendant and his accomplices sought at least $6,117,430 in tax refunds. Based on those returns, the Treasury paid out at least $1,356,240 in refunds.

 

Co-defendant Stephane Cindy Anor, 27, of West Palm Beach, pled guilty on August 29, 2017 to one count of conspiracy to commit wire fraud. Sentencing for Anor is scheduled for November 9, 2017.  Irene Wilson, 51, of Riviera Beach, a defendant in a related case, pled guilty to one count of conspiracy to defraud the United States through false claims. On September 22, 2017, Wilson was sentenced to 12 months’ home confinement.

 

Sentencing for Pearson is scheduled for December 19, 2017 before U.S. District Judge Beth Bloom. Pearson faces a maximum possible statutory sentence of 20 years in prison for the conspiracy to commit wire fraud, 20 years in prison on each count of wire fraud, 20 years in prison on each count of money laundering, in violation of 18 U.S.C. § 1956(a)(1)(B)(i), 10 years in prison on each count of money laundering, in violation of 18 U.S.C. § 1957, and a mandatory sentence of 2 years in prison on each count of aggravated identity theft.

 

Mr. Greenberg commended the investigative efforts of IRS-CI, the West Palm Beach Police Department and Jupiter Police Department. This case is being prosecuted by Assistant U.S. Attorneys Marc Osborne and Roger Stefin.

 

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

Three Miami-Dade County residents pled guilty yesterday to conspiracy to defraud the United States and to illegally export aviation parts and equipment to Syria, in violation of the International Emergency Economic Powers Act (IEEPA). The exports were sent to Syrian Arab Airlines, a/k/a “Syrian Air” (Syrian Air). Syrian Air was designated as a Specially Designated National (SDN) by the U.S. Department of Treasury, Office of Foreign Assets Control (OFAC). U.S. persons and entities are prohibited from doing business with SDNs, such as Syrian Air, without obtaining a license from OFAC.

 

Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Dana J. Boente, Acting Assistant Attorney General for National Security, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Robert Luzzi, Special Agent in Charge, Department of Commerce’s Office of Export Enforcement (DOC), Miami Field Office, and the members of the South Florida Joint Terrorism Task Force, made the announcement. 

 

Ali Caby, a/k/a “Alex Caby,” 40, Arash Caby, a/k/a “Axel Caby,” 43, and Marjan Caby, 34, were charged with conspiracy to violate the IEEPA by exporting dual-use goods, that is, articles that have both civilian and military application, without a license to Syrian Air, 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, Ali Caby ran the Bulgaria office of AW-Tronics, a Miami export company that was managed by Arash Caby, and which shipped and exported various aircraft parts and equipment to Syria via Syrian Air. Ali Caby and Arash Caby closely supervised and encouraged subordinate employees of AW-Tronics in the willful exportation of the parts and equipment to Syrian Air, whose activities assisted the Syrian government’s violent crackdown on its people. Marjan Caby, as AW-Tronics’ export compliance officer and auditor, facilitated these exports by submitting false and misleading electronic export information to federal agencies. 

 

            The defendants are scheduled to be sentenced by U.S. District Judge Beth Bloom on December 19, 2017.  They face a possible statutory maximum sentence of up to five years in prison, three years of supervised release and a $250,000 fine.

 

Mr. Greenberg and Mr. Boente commended the investigative efforts of the FBI, DOC, Department of Homeland Security, Defense Criminal Investigative Service, U.S. Customs and Border Protection and the South Florida Joint Terrorism Task Force. The case is being prosecuted by Assistant U.S. Attorneys Ricardo Del Toro and Michael Thakur and Trial Attorney Matthew Walczewski of the Counterintelligence and Export Control Section of the Department of Justice’s National Security Division.

 

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

Three defendants associated with a Miami street gang “Boss Life” operating in Miami-Dade County, Florida were sentenced by United States District Judge Federico A. Moreno for their roles in the distribution of firearms and narcotics.

 

Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, Peter J. Forcelli, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Rodolfo Llanes, Chief, Miami Police Department (MPD), and Juan J. Perez, Director, Miami-Dade Police Department (MDPD), made the announcement. 

 

Co-conspirators Juan Videa, 23, Darryl Marshall, 24, and Ronald Morrobel, 33, all of Miami, were sentenced following guilty pleas for their participation in the distribution of narcotics, which included crack cocaine and heroin, and firearms, which included high capacity firearms, a fully automatic rifle, a silencer, a one hundred round drum magazine, and firearms with obliterated serial numbers. Operation Northern Light Task Force, which conducted this investigation, also led to the disruption of a home invasion robbery planned by Videa and Morrobel.

 

Videa was sentenced to 132 months in prison, Marshall was sentenced to 108 months in prison, and Morrobel was sentenced to 210 months in prison.

 

The prosecution was part of Operation Northern Light, 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 commended the collaborative investigative efforts of the Northern Light Task Force and its efforts to combat violent crime in Northern Miami-Dade County. This case was handled by Assistant United States Attorney Ignacio J. Vazquez.

 

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 grand jury in Miami indicted eight individuals for their alleged participation in an investment fraud scheme that targeted investors throughout the Nation, defrauding them out of approximately $3 million. The main office operated out of Daytona Beach, Florida.

 

​            Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.

 

Rockey Hatfield, 61, of Safety Harbor, Florida, Steve Lovern, 62, of Atlanta, Georgia, Steve Bailen, 58, of North Miami, Wayne Scott Simpson, 47, of Pompano Beach, Donald Braxton, 66, of Hollywood, William Paul Hamilton, 57, of Miramar, Dennis Swerdlen, 63, of Boca Raton, and Paula Saccomanno, 60, of Boca Raton, were charged with conspiracy to commit mail fraud and wire fraud, and substantive mail fraud charges. Some of the defendants were also charged with substantive wire fraud counts. 

 

​            The Indictment charges a conspiracy involving the sale of ownership units of patents, with a stock conversion option. According to the Indictment, from December 2012 to September 2017, the defendants solicited investors located throughout the United States to buy ownership units in patents developed by N1 Technologies Inc. and/or NanoSave Technologies Inc. (N1). The defendants claimed N1 researched, developed and obtained breakthrough nano-based technological patents. The sales employees in turn pitched ownership units of these patents to investors.

 

The materially false statements, including, but not limited to, that the patent unit and stock sales included no commissions or fees, that sale agents were compensated with stock, that investor funds would be used for N1’s company expenditures on things other than commissions or fees, that an investor was purchasing an ownership unit of a patent with a corresponding United States Patent Office number, and that investors would collect royalty payments based on N1’s patented products for the life of the patent.

 

In fact, approximately 90% of investor proceeds were used by the defendants as commissions, fees and means to facilitate the fraud; the defendants were paid substantial commissions, not with stock; N1 had not been issued any patents, despite statements to the contrary; and, no investor collected a royalty payment nor was any patent sold in order to obtain a royalty payment.

 

​            Mr. Greenberg commended the investigative efforts of the FBI. Mr. Greenberg also thanked the Securities and Exchange Commission’s Miami Regional Office for their assistance.  This case is being prosecuted by Assistant U.S. Attorney Roger Cruz.

 

            Individuals who believe that they may be a victim in this case should contact the FBI at www.fbi.gov for more information.

 

An indictment is merely an allegation and the 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 Fort Lauderdale woman was charged this morning in federal court with stealing social security benefits for over a decade.

 

Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and Margaret Moore-Jackson, Special Agent in Charge, Social Security Administration (SSA), Office of Inspector General, announce that Myriam Etienne, 49, of North Fort Lauderdale, was charged with 90 counts of theft of government funds, in violation of Title 18, United States Code, Section 641. The defendant had her initial appearance today in Fort Lauderdale Federal Court. 

 

According to information presented in court, the defendant falsely obtained Social Security Supplemental Security Income for her grandfather, who died in 2003 and her grandmother, who died in 2008, after their respective deaths, until June 2016. The Social Security Administration administers numerous programs to provide for the material needs of individuals and their families, including supplemental security income. Monthly benefits are paid to eligible individuals. Court records reflect that these benefits were paid to the defendant’s grandmother and grandfather. The funds were direct deposited into a joint bank account the defendant shared with her deceased grandparents. After her grandmother’s and grandfather’s deaths, the defendant received approximately $125,000 in payments from the SSA.

 

If convicted, the defendant faces a potential penalty of up to ten years in prison, three years of supervised release, a $250,000 fine and restitution as to each count.

 

Mr. Greenberg commended the investigative efforts of SSA’s Office of Inspector General.  This case is being prosecuted by Assistant U.S. Attorney Randy Katz.

An indictment is merely an allegation and all defendants are 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.

The eleventh Honduran citizen extradited under the treaty between the United States and Honduras, and the first to proceed to trial in the United States, was sentenced today to 30 years in prison for his involvement in a large-scale narcotics transportation organization.

 

Benjamin G. Greenberg, Acting 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 had found Juan Carlos Arvizu Hernandez guilty on July 14, 2017, of conspiring to distribute over five kilograms of cocaine with the knowledge that the cocaine would be unlawfully imported into the United States. The evidence at trial, which included the testimony of multiple co-conspirators and a video recording of the defendant, showed that the defendant operated in Honduras as the leader of a large-scale narcotics transportation organization that was part of a distribution chain spanning from Colombia to Mexico and the United States.  In that role, the defendant and his workers were responsible for secretly receiving multi-hundred kilogram quantities of cocaine being shipped from Colombia, Venezuela and Brazil, temporarily storing the narcotics in Honduras, and then transporting the narcotics to their next point, which was typically a location in Honduras close to the Guatemalan border, Belize or even further north to Mexico.  The evidence at trial showed that as part of this conspiracy the defendant was responsible for trafficking over 5,000 kilograms of cocaine. In addition to the proceedings at trial, at a hearing in June 2017 and again at the sentencing hearing today, the government presented evidence of video recordings involving Arvizu Hernandez, including a still photograph showing the defendant handling a brick of cocaine. 

 

Acting U.S. Attorney Benjamin G. Greenberg stated, “The arrest and extradition of Juan Carlos Arvizu Hernandez is the result of extraordinary international cooperation. It also reflects the hard work, commitment, and perseverance of our Honduran and U.S. law enforcement partners to stem the flow of cocaine into the United States. Arvizu Hernandez was extradited from Honduras to the United States for his involvement in the distribution of thousands of kilograms of cocaine knowing that the cocaine would be imported into the United States. Arvizu Hernandez was tried by a jury and convicted. Now that he was sentenced, justice has been served.”

 

DEA Special Agent in Charge Adolphus P. Wright stated, “Hernandez’ drug trafficking organization has been dismantled and will no longer be able to import large amounts of cocaine into the Unites States.  The total disregard Hernandez displayed in his efforts to destroy countless communities in the United States has been addressed with this sentence.”  He added, “The DEA will continue to work diligently with all our law enforcement partners, both domestically and internationally, to combat these drug organizations and arrest the leaders and others responsible for the trafficking of drugs.”

 

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

 

Mr. Greenberg would like to thank the following groups for their assistance in obtaining the conviction against Arvizu Hernandez: the governments of Honduras and Colombia, the U.S. Attorney’s Offices for the Middle District of Florida and the Southern District of New York, the Office of International Affairs of the Department of Justice, the Federal Bureau of Investigation as part of the Panama Express North Strike Force, and DEA Division Offices in Honduras, Colombia, and Houston, Texas, as well as the DEA Bilateral Investigation Unit at the Special Operations Division.  This case was handled by Assistant U.S. Attorney Walter Norkin.

 

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.

Erik Fresen, a resident of Miami-Dade County, was sentenced today by U.S. District Judge Robert N. Scola to one year of probation with 60 days of intermittent confinement in the Bureau of Prisons for failing to file a tax return for tax year 2011.  Fresen was ordered to report to the Bureau of Prisons in mid-November, December, January, and February to serve 15 days of imprisonment each month.

 

Benjamin G. Greenberg, Acting U.S. 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.

 

Fresen previously pled guilty to a one count information charging him with failing to file a tax return, in violation of 26 U.S.C. § 7203, for tax year 2011.  In pleading guilty to the information, Fresen admitted that he had also failed to pay taxes in the amount of $30,324 on the income he received in 2011 that was not reported to the IRS.

 

During the court proceedings, Fresen acknowledged that he had also failed to file tax returns with the IRS for tax years 2007 through 2013 and that he had failed to pay federal income taxes in the amount of $214,766 that were due and owing on his unreported income.

 

At the time of sentencing, Fresen had paid in full all of the outstanding taxes with interest that he owed for tax years 2007 through 2015.  Fresen remains subject to penalties to be imposed by the IRS for his failure to timely file his tax returns.

 

Mr. Greenberg commended the investigative efforts of the IRS-CI.  The case is being prosecuted by Assistant U.S. Attorneys Harold E. Schimkat and Michael N. 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.

Michael Hegarty, 40, an Irish national, pled guilty today in U.S. District Court in Miami to fraudulently facilitating the transportation and concealment of a Libation Cup carved from an endangered Rhinoceros horn, that was smuggled from the United States to Great Britain contrary to the provisions of the Endangered Species Act, in violation of Title 18, United States Code, Sections 554 and 2.

 

Benjamin G. Greenberg, Acting U.S. Attorney for the Southern District of Florida, Acting Assistant Attorney General Jeffrey H. Wood of the Environment and Natural Resources Division of the Department of Justice, and Ed Grace, Acting Assistant Director of Law Enforcement for the U.S. Fish and Wildlife Service (FWS), made the announcement.  The prosecution of Hegarty is part of Operation Crash, a continuing effort by the Special Investigations Unit of the FWS Office of Law Enforcement in coordination with the Department of Justice to detect, deter, and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns.

 

The Endangered Species Act (“ESA”), Title 16, United States Code, Sections 1531 et seq., was enacted by Congress to conserve endangered and threatened species and the ecosystems upon which they depend. The term “endangered species” means any species, or part thereof, which is in danger of extinction throughout all or a significant portion of its range.

 

All species determined to be endangered under the ESA are listed in Title 50, Code of Federal Regulations, Section 17.11. Various species of rhinoceros have been listed since as early as 1970, and at all relevant times, five of the six extant species were included within its protection, to include the Black, Great Indian, Javan, Northern White, and Sumatran rhinoceros.

 

The ESA makes it unlawful to knowingly deliver, receive, carry, transport, or ship in interstate or foreign commerce, by any means whatsoever and in the course of a commercial activity, endangered species, including rhinoceros; and to sell and offer to sell endangered species of wildlife, including rhinoceros, in interstate and foreign commerce, as set forth in Title 16, United States Code, Sections 1538(a)(1)(E) and (F) and 1540(b)(1). Federal regulations also require that, upon exportation of any wildlife, exporters or their agents must file with the FWS a completed declaration for Importation or Exportation of Fish and Wildlife (Form 3-177), and that all wildlife exports must be cleared by an FWS officer. 50 C.F.R. § 14.61.

 

According to the Plea Agreement, a Joint Factual Statement filed by the parties, other court records, and statements at the hearing, in mid-April 2012, Hegarty and his co-conspirator Richard Sheridan travelled to Miami, Florida from London, England. Later that month they joined a Miami resident to attend an auction in Rockingham, North Carolina. At the auction, Sheridan actually functioned as the bidder on behalf of the three individuals, and made the winning bid for a rhinoceros horn libation cup described as “Lot 463: Chinese Rhinoceros Horn Chilong Libation Cup,” for $57,500.

 

On May 3, 2012, the Miami resident, acting at the direction of Hegarty and Sheridan sent a wire transfer from a bank account in Miami to the auction house in North Carolina, as payment for the Rhino cup.  On May 4, 2012, Hegarty, who was then in Coconut Grove, called an employee of a Federal Express office in North Carolina and instructed the employee to pick up the rhinoceros horn libation cup from the auction house in Rockingham, and to ship the items to an address in Florida.

 

On May 7, 2012, Hegarty and his co-conspirator received the rhinoceros horn libation cup in Florida. They assured the Miami resident, who had funded the purchase of the cup, that it was an excellent investment and that they were experienced in such transactions. They further advised that a flaw in the cup could be repaired and that they were associated with individuals in the United Kingdom who could affect the repairs and enhance the value of the libation cup. Hegarty and Sheridan stated they would take the cup to the United Kingdom for that purpose. Hegarty further claimed that he would need to “make up documents” so that the rhinoceros cup would “make it through Customs and pay taxes.” By cutting and pasting from several sources, a false invoice was created.

 

On May 16, 2012, Sheridan smuggled the libation cup out of the United States in his luggage, as he traveled from Miami, via Atlanta, to London. He failed to declare the export of the rhino horn libation cup as required by law to the FWS and neither applied for nor obtained the permit required under the Endangered Species Act.

 

On July 19, 2012, Sheridan, along with two other Irish nationals, was arrested by Metropolitan Police in Wandsworth, London, while attempting to sell the same rhinoceros horn libation cup to a Hong Kong native. Sheridan, who claimed ownership of the item, had the Lot tag from the auction house identifying the libation cup, as well as wrappings and other material from the North Carolina sales transaction in his possession.

 

After the arrest of Sheridan in London, Hegarty, who had developed a personal relationship with the Miami resident, told the resident not to discuss him (Hegarty) with law enforcement authorities, to never make mention of the Irish group with which he was associated, and to protect him in the event law enforcement authorities inquired about their activities.

 

Scientific analysis conducted at the National Fish & Wildlife Service Forensics Laboratory in Ashland, Oregon determine that the Libation Cup was in fact fashioned from the horn of an ESA-protected Great Indian Rhinoceros.

 

Hegarty was arrested on the charges on an INTERPOL Red Notice and extradited to the United States from Belgium. Sheridan was convicted on unrelated charges in England and is currently incarcerated there; he is still wanted to face wildlife trafficking charges in the Southern District of Florida.

 

“Trafficking in endangered and threatened species is illegal” said Acting U.S. Attorney Greenberg. “Together with our law enforcement partners, we will strictly enforce the laws that protect our environment and our wildlife. The international community strongly supports these enforcement efforts and is capable of finding and holding accountable these criminals wherever they attempt to hide.”

 

“By trafficking in wildlife products, such as items made from a rhinoceros horn, smugglers are fueling the illegal trade in endangered wildlife, which may ultimately lead to the species extinction,” said Ed Grace, Acting Assistant Director of Law Enforcement for the U.S. Fish and Wildlife Service. “I am proud of our special agents who exposed this complex, international scheme that spanned many international borders.  This case showed the direct link between wildlife trafficking and transnational organized crime and reinforced our commitment to continue working with U.S. and international partners to pursue these criminals who profit from the illegal trade in wildlife.”

 

Hegarty will be sentenced by the Honorable Donald M. Middlebrooks, United States District Court Judge, who accepted the guilty plea. Sentencing will be held  November 14, 2017 at 2:00 p.m. Hegarty faces a maximum penalty of up to ten years in prison, followed by a term of supervised release of up to three years, and a maximum fine of $250,000, or up to twice the gross gain. 

 

Mr. Greenberg commended the investigative efforts of the FWS Office of Law Enforcement.  This case is being handled by Assistant U.S. Attorney Thomas Watts-FitzGerald and Trial Attorney Gary N. Donner of the Department of Justice’s Environmental Crimes Section of the Environment and Natural Resources Division.

 

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

Twelve retail store owners, operators, and clerks, have been charged in connection with schemes to illegally redeem food stamp benefits in exchange for cash.

Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Karen Citizen-Wilcox, Special Agent in Charge, U.S. Department of Agriculture, Office of Inspector General (USDA-OIG), George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), made the announcement. 

The indictments allege that the retailers received more than $20 million in federal payments for transactions in which they did not provide any food, a fraud scheme commonly known as “food stamp trafficking.” Stores and vendors allegedly took illicit profits from the fraudulent transactions with food stamp recipients.  This operation resulted in the largest combined financial fraud loss for a food stamp trafficking takedown in history.

“The Supplemental Nutrition Assistance Program offers nutrition assistance to millions of eligible, low-income individuals and families while providing economic benefits to communities,” stated Acting United States Attorney Benjamin G. Greenberg. “The exploitation of participants in the program by providing cash instead of nutrition for financial gain is criminal. The U.S. Attorney’s Office and our law enforcement partners are committed to investigating and bringing to justice those who engage in these fraudulent schemes.”

“The USDA-OIG conducts hundreds of criminal investigations relating to SNAP fraud across the nation each year.  In this instance, eight small convenience stores in south Florida committed a staggering amount of fraud in a relatively short amount of time.  These retailers created an illegal benefits exchange system that defrauded the American taxpayer and denied healthy foods to needy children and their families.  The storeowners who allegedly orchestrated this trafficking scheme pocketed millions in “fees” which they charged for converting food assistance benefits into cash.  Any retailer who chooses to defraud taxpayers through such schemes will continue to be aggressively investigated and prosecuted by USDA-OIG and its law enforcement partners,” stated Karen Citizen-Wilcox, Special Agent in Charge, USDA-OIG.

The Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program, is a federally funded, national program established by the United States government to alleviate hunger and malnutrition among lower income families.  The United States Department of Agriculture (USDA) administers SNAP through its agency, the Food and Nutrition Service (FNS).  FNS is responsible for the authorization and disqualification of retail food establishments participating in the redemption of SNAP benefits. 

In Florida, SNAP is administered by the State of Florida Department of Children and Families (DCF).  DCF is responsible for overall program administration, as well as approving, denying or revoking assistance for recipients.  FNS and the State of Florida share jointly in the cost of administering the SNAP.  In 1998, DCF changed the format of SNAP benefits in Florida from a traditional paper coupon system to an Electronic Benefit Transfer (EBT) card system.  Recipients use the EBT card, which contains an embedded magnetic strip, to purchase approved food items from participating retailers.  Retailers must apply to and be approved by FNS to participate in the program. Authorized retailers use a point-of-sale (POS) terminal that checks the EBT card information and deducts the cash value of the purchase from the customer’s SNAP benefit balance. SNAP reimbursements are paid to retailers through electronic funds transfers. Retailers bill the government in return for providing approved food items. SNAP retailers, including the defendants, receive instruction regarding the requirements and regulations of the food stamp program, such as that only eligible food items can be exchanged for EBT benefits and that a retailer may never exchange EBT benefits for cash or non-food items.

According to some of the indictments listed below, the defendants owned, operated, or worked at stores in the Southern District of Florida that were authorized to accept SNAP. In other indictments, the defendants owned, operated, or worked at stores in the Southern District of Florida who were not authorized to accept SNAP but instead unlawfully utilized the POS terminals of authorized retailers. The defendants received instruction regarding the requirements and regulations of the food stamp program. The defendants allegedly exchanged EBT benefits for cash, in violation of the food stamp program rules.  The defendants and/or their co-conspirators/employees swiped the recipient’s EBT card at a POS machine for an inflated amount, and paid the recipient, in cash, a reduced percentage of the value of food stamp benefits charged on the card. The defendants would realize a guaranteed, significant profit from each fraudulent transaction. In most situations, the recipient did not actually receive any food or eligible items in return for their food stamp benefits. As a result of the unlawful cash transactions, the defendants fraudulently obtained more than $20 million dollars in EBT deposits for transactions in which the stores did not provide food.

 

1.         United States v. Hasan Saleh, et al., Case No. 17-20653-CR-Moreno

According to the indictment, Hasan Saleh, 59, managed a convenience store, Four Corners, located at 821 Northwest 6th Street, Fort Lauderdale, Florida.  Despite not being authorized to participate in SNAP, Four Corners employees, including Saleh, were involved in a scheme in which they exchanged food stamp benefits for cash.  These transactions were carried out using equipment registered to the convenience store Sparkle, located at 6530 NW 18th Avenue, Miami, Florida. Defendant Mohammad Alobaisi, 37, was the sole officer, director, and registered agent of Sparkle. Additionally, employees of Sparkle participated in the scheme by exchanging food stamp benefits for cash.  Between April 2015 and August 2017, Saleh and Alobaisi, together with their employees, Reynold Francois, 38, Ihab Hassouna, 44, Mohammad Alteen, 33, Maria Jerdana, 36, and Joe Ann Baker, 56, redeemed and caused to be redeemed approximately $2 million in EBT food stamp benefits from the FNS.

 

2.         United States v. Yousef Homedan Zahran, Case No. 17-60241-CR-Ungaro

 

On September 20, 2017, Yousef Homedan Zahran, a/k/a “Yuousef Hussein,” a/k/a “Joe,” 60, of Pompano Beach, was charged by complaint in connection with a food stamp fraud scheme.  According to court documents, Zahran, worked as a clerk at a convenience store, Muna & Mona Inc., d/b/a Community Food Store #5, located at 401 NW 27th Avenue, in Pompano Beach, Florida.  On multiple occasions between November 3, 2016, and January 11, 2017, Zahran illegally sold food stamp benefits in exchange for cash.  

 

 

3.         United States v. Omar Hajje and Jalal Hajyousef, Case No. 17-20622-CR-Gayles

According to the indictment, Omar Hajje, 43, of Miami, and Jalal Hajyousef, 42, of Miami, owned and operated convenience and grocery stores in Miami known as Steve Market 2 and Yum-Yum’s Grocery, located at 6804 NW 15th Avenue and 6813 NW 15th Ave in Miami, respectively.  Omar Hajje applied for and obtained authorization for each of the two stores to participate in SNAP.  From July 2014 through the date of the indictment, September 2017, Omar Hajje and Jalal Hajyousef were involved in a fraud and money laundering conspiracy in which they exchanged food stamp benefits for cash and fraudulently redeemed approximately $4.2 million in EBT food stamp benefits.  Hajje and Hajyousef laundered the fraud proceeds through various accounts, by writing cashier’s checks, and by converting EBT funds to cash.

 

4.         United States v. Andy Javier Herrera and Javier Herrera, Case No.17-20663-CR-Moore

According to the indictment, Andy Javier Herrera, 24, of Little Havana, owned a small grocery store, Santa Ana Market II, located at 1832 NW 17th Ave., Miami, Florida. Herrera applied for, and obtained, authorization to participate in SNAP.  Javier Herrera, 49, of Coral Way, was a clerk that worked at both Santa Ana Market II, and a nearby convenience store named Santa Ana Market, located at 3000 NW 12th Avenue, Miami, Florida.  Between April 2012 and September 2017, Andy Herrera and Javier Herrera were involved in a scheme in which they exchanged food stamp benefits for cash. During that time, Andy Herrera and Javier Herrera fraudulently redeemed approximately $10,000,000 in EBT food stamp benefits.

 

If convicted of the charged conduct, a defendant faces a possible maximum statutory sentence of 20 years’ imprisonment for conspiracy to commit wire fraud; 20 years’ imprisonment for wire fraud; and 5 years’ imprisonment for food stamp/EBT fraud.

Acting U.S. Attorney Greenberg acknowledged the dedicated efforts of the Florida Department of Children and Families and the Florida Department of Financial Services to provide services to the community and identify for prosecution those individuals who compromise public benefits.  Mr. Greenberg also commended the investigative efforts of USDA-OIG, FBI and USSS, and expressed his gratitude to FLPD, DBPR-ABT, MPD and MDPD for their assistance with the investigation and law enforcement operation.  Mr. Greenberg recognized Assistant United States Attorneys Yeney Hernandez, Lisa Miller, Frederic Shadley, and Anne McNamara, who are prosecuting these cases.

A complaint or an indictment is only 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.

            The former Commercial Director of Essex Holdings, Inc., was charged in two separate fraud schemes totaling more than $33 million in fraudulently obtained funds.  The first scheme involved nearly 100 investors who purchased $30 million of promissory notes purportedly secured by interests in iron ore mining in Chile.  The second scheme involved unlawfully obtaining $1.2 million in economic development funds as well as valuable industrial property from the State of South Carolina.

 

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

 

            Anthony Joseph Baker, 37, formerly a resident of Miami-Dade County, Florida, was charged with one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, and six counts of wire fraud, in violation of Title 18, United States Code, Section 1343.  The case is assigned to United States District Judge Robert N. Scola in Miami.  In related cases, Navin Shankar Subramaniam Xavier, a/k/a "Navin Xavier," 44, formerly of Miramar, was convicted in Case No. 16-20685-CR-DPG of related charges and was sentenced on May 16, 2017 to 180 months imprisonment.  Charles E. Ashby, 46, of Pembroke Pines, was convicted in Case No. 17-20478 –CR-UU and is scheduled to be sentenced before U.S. District Judge Ursula Ungaro on October 17, 2017 in Miami.

 

            According to documents filed in court, from October 2012 through May 2014, Xavier, Baker, Ashby and others operated Essex Holdings, Inc. (“Essex Holdings”) from an office in Miami Gardens.  Xavier was the Chief Executive Officer, Baker was the Commercial Director and second most senior employee, and Ashby was the head of IT operations.  Xavier, Baker and others raised more than $30 million from nearly 100 investors for supposed investments in sugar transportation and shipping, as well as iron ore mining in Chile.  The conspirators used a false financial statement, forged documents, and false promises of fixed rates of return, to induce investors to invest with Essex Holdings.  Most of the money was used for purposes other than what was promised, including to support lavish spending by the conspirators.  Eventually, Essex Holdings used new investor money to pay old investors in a Ponzi-like fashion before the scheme collapsed.  Evidence filed in court in a related criminal case showed that actual investor losses from the scheme exceeded $29 million. 

 

            The second scheme involved Xavier using Essex Holdings to obtain $1.2 million in payments and approximately $1.5 million worth of commercial real estate from the South Carolina Coordinating Council for Economic Development (“SCCCED”), a division of the South Carolina state government, that was supposed to be used to develop a dilapidated industrial property into a diaper plant and rice packaging facility.  According to documents filed in court, Baker provided false financial documentation to SCCCED in order to obtain the contract.  In order to get paid under the contract, according to the Indictment, Baker and Ashby participated in the falsification of invoices and bank statements to make it appear that Essex Holdings had performed work at the site and paid a contractor for that work.  These false documents were then provided to South Carolina authorities so that the conspirators could get paid under the contract.  Funds from the South Carolina fraud were then diverted to the personal benefit of the conspirators, and were used to make payments in relation to the Essex Holdings iron-ore scheme.

 

            Mr. Greenberg commended the investigative efforts of the FBI, the Miami Regional Office of the U.S. Securities and Exchange Commission, and the South Carolina Office of Inspector General, for assisting with this matter.  The matter is being prosecuted by Assistant U.S. Attorneys Jerrob Duffy and Alison W. Lehr.

 

            An indictment is merely an allegation and all defendants are 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.

Two Broward County, Florida tax return preparers were sentenced to prison today for conspiring to file and filing fraudulent tax returns with the Internal Revenue Service (IRS), announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida.

 

Luczor Fertilien, 39, was sentenced to 30 months in prison and David Joseph, 37, was sentenced to 24 months in prison. 

 

According to documents and information provided to the court, Fertilien, Joseph and Frantz Petit-Dos owned two tax preparation businesses in Lauderhill, Florida: Imperial Taxation and Multi-Services Corp. and Aleluya Universal Accounting Services Inc.  From approximately 2010 through 2016, Fertilien, Joseph and Petit-Dos filed fraudulent returns for their clients seeking refunds to which the clients were not entitled, by reporting fictitious business income, fraudulent education and fuel tax credits and claiming deceased individuals, whose identities were stolen, as dependents.  Fertilien, Joseph and Petit-Dos did not report the illegal proceeds they received from this scheme on their personal tax returns.  The court found that Fertilien and Joseph caused a tax loss of more than $1 million.   

 

In addition to the term of prison imposed, U.S. District Judge William P. Dimitrouleas ordered Fertilien and Joseph to each serve three years of supervised release and ordered Fertilien to pay $$1,038,129 in restitution to the IRS and ordered Joseph to pay $1,289,351 in restitution to the IRS.  Fertilien, Joseph and Petit-Dos previously pleaded guilty to conspiring to defraud the United States and filing fraudulent tax returns.  Petit-Dos is scheduled to be sentenced on Oct. 6.

 

Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Greenberg thanked special agents of IRS Criminal Investigation and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, who conducted the investigation, and Assistant U.S. Attorney Neil Karadbil and Assistant Chief Greg Tortella of the Tax Division, who prosecuted the case.

 

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

Two Broward County, Florida tax return preparers were sentenced to prison today for conspiring to file and filing fraudulent tax returns with the Internal Revenue Service (IRS), announced Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.

 

Luczor Fertilien, 39, was sentenced to 30 months in prison and David Joseph, 37, was sentenced to 24 months in prison.

 

According to documents and information provided to the court, Fertilien, Joseph and Frantz Petit-Dos owned two tax preparation businesses in Lauderhill, Florida: Imperial Taxation and Multi-Services Corp. and Aleluya Universal Accounting Services Inc.  From approximately 2010 through 2016, Fertilien, Joseph and Petit-Dos filed fraudulent returns for their clients seeking refunds to which the clients were not entitled, by reporting fictitious business income, fraudulent education and fuel tax credits and claiming deceased individuals, whose identities were stolen, as dependents.  Fertilien, Joseph and Petit-Dos did not report the illegal proceeds they received from this scheme on their personal tax returns.  The court found that Fertilien and Joseph caused a tax loss of more than $1 million.

  

In addition to the term of prison imposed, U.S. District Judge William P. Dimitrouleas ordered Fertilien and Joseph to each serve three years of supervised release and ordered Fertilien to pay $$1,038,129 in restitution to the IRS and ordered Joseph to pay $1,289,351 in restitution to the IRS.  Fertilien, Joseph and Petit-Dos previously pleaded guilty to conspiring to defraud the United States and filing fraudulent tax returns.  Petit-Dos is scheduled to be sentenced on Oct. 6.

 

Acting U.S. Attorney Greenberg and Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS Criminal Investigation and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, who conducted the investigation, and Assistant U.S. Attorney Neil Karadbil and Assistant Chief Greg Tortella of the Tax Division, who prosecuted the case.

 

Additional information about the Tax Division’s enforcement efforts can 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

Gerard Anthony Brady, a Fort Lauderdale Police Department employee has been charged in federal court with stealing from his employer. 

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

Brady, 34, appeared in federal court on September 20, 2017, after being charged by a criminal Information with theft concerning programs receiving federal funds, in violation of Title 18, United States Code, Section 666(a)(1)(A).  If convicted, Brady faces a statutory maximum sentence of ten years in prison.

According to court records, including the Information, Brady worked at the Fort Lauderdale Police Department as the Police Forfeiture Coordinator until his termination in March 2017.  As Police Forfeiture Coordinator, Brady’s duties at the Police Department included storing and caring for confiscated and seized property, coordinating the deposit of confiscated and seized monies, and overseeing vessels, planes, vehicles, and other property seized by the Fort Lauderdale Police Department.  According to the Information, in 2016, while working as an employee, Brady stole in excess of $5,000 from the Fort Lauderdale Police Department. 

Benjamin G. Greenberg commended the investigative efforts of IRS-CI and the Fort Lauderdale Police Department, in relation to this matter.  This case is being prosecuted by Assistant U.S. Attorney J. Mackenzie Duane. 

An Information 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.

On September 18, 2017, Roosevelt Miller, 20, of Ft. Lauderdale, was sentenced to a total of 121 months in federal prison by United States District Judge William P. Dimitrouleas, after having previously pled guilty to attempting to entice a minor to engage in sexual activity, in violation of, Title 18, United States Code, Section 2422(b).

 

Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation, Miami Field Office, and W. Howard Harrison, Chief, Plantation Police Department, made the announcement. 

 

According to court documents, in early 2017, numerous children ranging in age from 13 to 14 years old, who attend Plantation Middle School, alerted authorities that Miller had inappropriate sexual communications with them using various mobile telephone applications.  Specifically, Miller used various social media platforms, including Instagram and text messaging, to send seven minors messages asking them to perform sexual acts on the defendant.  Most of these minor victims were enrolled in an aftercare program at Plantation Middle School, where Miller was employed as a counselor.

 

Mr. Greenberg commended the investigative efforts of the FBI and the Plantation Police Department.  The case was 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.

 

     Benjamin G. Greenberg, United States Attorney for the Southern District of Florida; Justin D. Green, Special Agent in Charge, U.S. Food and Drug Administration, Office of Criminal Investigations (FDA-OCI), Miami Field Office; Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office; and Juan J. Perez, Director, Miami-Dade Police Department (MDPD), announced the fifty-six month prison sentence imposed upon Magaly Del Rosario for managing a Miami spa which performed illicit silicone injections. 

 

     On July 6, 2017, Del Rosario previously pled guilty for her participation in a conspiracy and delivery for pay of an adulterated and misbranded device received in interstate commerce with the intent to defraud and mislead.  Yesterday, United States District Judge Kathleen M. Williams sentenced Del Rosario to 50 months in prison for the conspiracy, to be followed by 6 months in prison for the remaining count of conviction.  In addition, Del Rosario was sentenced to three years of supervised release. A restitution hearing has been scheduled for December 1, 2017.     

 

      According to the court record, including an agreed upon factual statement, Del Rosario and her co-defendant, Maribel Jimenez (who previously pled guilty and was sentenced on August 29, 2017, to 79 months in prison), conspired from 2008 through August 2015 to receive and deliver an adulterated and misbranded “medical device” for pay which consisted of silicone used illegally for body contouring injections.  Del Rosario further admitted to having assisted Jimenez, in unlawfully injecting this substance into hundreds of clients seeking buttocks augmentation at Bella Beauty Spa (“Bella Beauty”), a business owned by Jimenez and located at 8360 West Flagler Street in Miami.  The silicone was unlawfully smuggled into the United States from Colombia throughout the period of the criminal conspiracy by means of multiple DHL deliveries of bottles falsely labeled as containing depilatory wax.

 

     During the course of the criminal conduct, Del Rosario “repeatedly and consistently” informed Bella Beauty’s clients that they would be injected with a substance that was safe, non-permanent and capable of being absorbed by the body over time,” while she “knew this not to be the case.”  Del Rosario and Jimenez falsely claimed that the substance was hydrogel, hyaluronic acid, Juvederm, Restylane, or other such absorbable, time-limited substances.  They did not inform clients that the dermal filler material was in fact silicone, a permanent substance known to be harmful if injected into the human body.  The potentially dangerous and harmful health risks that could result from the injection of the illicit silicone include: the potential of injection into a blood vessel resulting in embolism, migration of injected silicone to other bodily regions, infection and infection-related disorders, silicone-filled scar tissue formations (“granulomas”) caused by the body’s attempt to encapsulate such a foreign substance, necrosis, skin discoloration, immune system hyperactivity and related adverse systemic conditions, disfigurement, discomfort, and pain.

 

     Mr. Greenberg commended the investigative efforts of FDA-OCI, ICE-HSI and MDPD.  Mr. Greenberg thanked U.S. Customs and Border Protection and the Colombian National Police for their assistance. This case is being handled by Assistant U.S. Attorneys Peter Outerbridge and Miesha Darrough.

 

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 physician was sentenced today to 97 months in prison and three years of supervised release, for his role in a $4.8 million health care fraud scheme that involved the submission of false and fraudulent claims to Medicare and the illegal prescribing of controlled substances, including oxycodone and hydrocodone.

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office and Special Agent in Charge Brian Swain of the U.S. Secret Service’s (USSS) Miami Field Office made the announcement.

Roberto A. Fernandez, M.D., 51, of Miami, was sentenced by U.S. District Judge Cecelia M. Altonaga of the Southern District of Florida.  Judge Altonaga also ordered Fernandez to pay $4.8 million in restitution, jointly and severally with his co-conspirators.  Fernandez pleaded guilty on July 11,  to one count of conspiracy to commit health care fraud and wire fraud in connection with a scheme, that ran from April 2011 to February 2017, involving the submission of false and fraudulent claims to Medicare and the illegal prescribing of controlled substances, including oxycodone, hydrocodone and alprazolam.

As part of his guilty plea, Fernandez admitted that he referred Medicare beneficiaries to pharmacy owners in exchange for illegal health care kickbacks.  Fernandez admitted knowing that the pharmacy owners were billing and receiving reimbursements from Medicare for prescription drugs based upon the prescriptions he sold, and that many of his prescriptions were medically unnecessary.  For example, he admitted providing prescriptions for expensive, name brand drugs, including HIV/AIDS medications that conflicted with other HIV drugs already prescribed to the beneficiaries.

Fernandez also solicited referrals of Medicare beneficiaries to his own practices from his co-conspirators, he admitted, including submitting claims to Medicare under his Part B provider number for services he did not, in fact, render.  Additionally, Fernandez admitted to receiving kickbacks in return for signing plans of care and prescriptions for medically unnecessary home health services.

Fernandez further admitted that he prescribed controlled substances, including addictive opioids, to patients and patient recruiters in return for $100 to $200 cash per prescription.  Fernandez admitted that he knew these patients did not need the controlled substances he prescribed, and that he would sometimes write prescriptions for controlled substances for patients whom he did not even examine. 

The FBI, HHS-OIG and USSS investigated the case, which 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.  Assistant U.S. Attorney Lisa H. Miller of the Southern District of Florida and a former Fraud Section trial attorney, and Fraud Section Trial Attorney Adam G. Yoffie are prosecuting the case.

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

Miami, FL - The National Center for Disaster Fraud (NCDF) and the U.S. Attorney's Office for the Southern District of Florida, along with U.S. Attorney Offices in the District of Puerto Rico, Middle District of Florida, and Northern District of Florida announced the formation of task forces comprised of local, state and federal agencies in our respective areas to combat Hurricane Irma related illegal activity. The NCDF and U.S. Attorneys in these districts urge residents and businesses to immediately report suspected fraudulent activity relating to recovery and cleanup operations, fake charities claiming to be providing relief for victims, individuals submitting false claims for disaster relief and any other disaster fraud related activity.

The U.S. Department of Justice established the National Center for Disaster Fraud to investigate, prosecute, and deter fraud in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region. Its mission has expanded to include suspected fraud from any natural or manmade disaster. More than 30 federal, state, and local agencies participate in the National Center for Disaster Fraud, which allows the center to act as a centralized clearinghouse of information related to disaster relief fraud.

While compassion, assistance, and solidarity are generally prevalent in the aftermath of natural disasters, unscrupulous individuals and organizations also use these tragic events to take advantage of those in need. In the wake of Hurricanes Harvey and Irma, the NCDF has already received more than 400 complaints. Examples of illegal activity being reported to the NCDF and law enforcement include:

Impersonation of federal law enforcement officials;

Identity theft;

Fraudulent submission of claims to insurance companies and the federal government;

Fraudulent activity related to solicitations for donations and charitable giving;

Fraudulent activity related to individuals and organizations promising high investment returns from profits from recovery and cleanup efforts;

Price gouging;

Theft, looting, and other violent crime

“Unfortunately, criminals can exploit disasters, such as Hurricanes Harvey and Irma, for their own gain by sending fraudulent communications through email or social media and by creating phony websites designed to solicit contributions,” said Acting Executive Director Corey R. Amundson of the National Center for Disaster Fraud. “Once the NCDF receives a complaint, it routes the complaints to the appropriate federal, state, or local law enforcement agency in the appropriate jurisdiction. In the process, we are able to de-conflict and identify trends, national schemes, and offenders operating in multi-jurisdictions. The Justice Department will aggressively pursue those who commit disaster fraud.”

“As our South Florida community recovers from Hurricane Irma, the U.S. Attorney’s Office for the Southern District of Florida and our law enforcement partners stand ready to investigate and prosecute in federal court anyone who seeks to re-victimize, defraud or exploit the individuals and businesses in need,” said Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida. “Our united enforcement front will work hard to combat criminal activity, including fraud schemes associated with the hurricane’s devastation. Our mission is to ensure that federal, state and local programs, as well as reputable public and charitable assistance initiatives reach those struck by the impact of our recent natural disaster and are not fraudulently diverted to the criminals’ pockets.”

“We will aggressively investigate and prosecute anyone who seeks to defraud or exploit the federal assistance programs established to help individuals, families, or businesses that have lost so much as a result of Hurricane Irma,” said Acting U.S. Attorney W. Stephen Muldrow for the Middle District of Florida. “Our Office will continue to protect the rights of our honest citizens affected by this disaster and ensure that they receive the necessary public and charitable assistance they deserve. If you suspect any fraud, we urge you to call the NCDF Hotline. Our efforts to combat fraud associated with Hurricane Irma will supplement the outstanding and ongoing efforts by the State of Florida and Florida Attorney General Pam Bondi.”

“Our efforts are directed at enforcing a zero tolerance policy,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez for the District of Puerto Rico. “In the midst of the distress and losses caused by Hurricane Irma and the attending need for recovery and rebuilding, there can be no place for fraud and abuse.”

“We do not tolerate fraud,” said U.S. Attorney Christopher P. Canova for the Northern District of Florida. “Individuals, families, and businesses have suffered, and will continue to suffer, tremendous losses. Emergency funds are needed to help them get back on their feet. Dozens of agencies, investigators, and prosecutors are ready to respond to credible allegations of fraud and abuse. If you are aware of fraud, we urge you to call the National Disaster Fraud Hotline.”

Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by a live operator 24 hours a day, 7 days a week. You can also fax information to the Center at (225) 334-4707, or email it to disaster@leo.gov (link sends e-mail).

Members of the public are reminded to apply a critical eye and do their due diligence before giving contributions to anyone soliciting donations on behalf of disaster victims. Solicitations can originate from e-mails, websites, door-to-door collections, mailings and telephone calls, and similar methods. Learn more about the NCDF at www.justice.gov/disaster-fraud. Tips for the public on how to avoid being victimized of fraud are at https://www.justice.gov/opa/pr/tips-avoiding-fraudulent-charitable-contribution-schemes.

Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida; John Khin, Special Agent in Charge, Department of Defense Criminal Investigative Service (DCIS), Southeast Field Office; Maximo Eamiguel, Special Agent in Charge, United States Postal Service, Office of Inspector General (USPS-OIG), Southern Area Field Office; James T. Wallis, Special Agent in Charge, U.S. Army Criminal Investigation Command, Southeast Fraud Field Office; Justin D. Green, Special Agent in Charge, U.S. Food and Drug Administration (FDA), Office of Criminal Investigations, Miami Field Office; and Scott Rezendes, Special Agent in Charge, United States Office of Personnel Management, Office of Inspector General (OPM-OIG), announced the conviction of Serge Francois and Patrick Tonge for their involvement in a conspiracy to commit health care fraud and pay kickbacks in connection with federal health care programs. The fraudulent scheme caused over $30 million in losses to the federal TRICARE program. TRICARE provides coverage for active duty military and their families, as well as retired veterans. In addition, the fraudulent scheme caused the Federal Employee Health Benefit Program (FEHBP) to sustain losses.

On September 5, 2017, after a one-month trial, a federal jury found Francois guilty of conspiracy to commit health care fraud, twelve counts of health care fraud, conspiracy to pay kickbacks in connection with a federal health care program, five counts of paying such kickbacks, and twelve counts of money laundering. In addition, Francois was found guilty of eight counts of introducing misbranded drugs into interstate commerce, four counts of making false statements related to health care matters, and one count of making a false statement on a DEA form. The jury found Tonge guilty of the same conspiracy charges, as well as eleven counts of health care fraud, three counts of paying kickbacks, and two counts of money laundering.

According to evidence presented at trial, Francois, a pharmacist, owned and operated Atlantic Pharmacy and Compounding, located in Pompano Beach, Florida. From there, Francois and his right-hand man at the pharmacy, Patrick Tonge, entered into a vast conspiracy with so-called marketers who paid physicians to write prescriptions for topical medications that cost up to $17,000 a bottle. As the pharmacist in charge, Francois was responsible for the compounded medications, which were made in-house by the pharmacy.

Francois, Tonge and their co-conspirators agreed to automatically refill the prescriptions, sending numerous refills to patients who did not request them or need them, while not charging a co-pay in hopes that the patients would not bother to return the medications. Francois and Tonge would pay the marketers out of the profit received for each prescription; and the marketers in turn would pay the physicians. Evidence further showed that a substantial portion of the scheme involved physicians never seeing or examining the purported patients. Rather, they used the patients’ personal identification information to write the prescriptions.

Testimony and other evidence at trial revealed that Francois and Tonge specifically targeted the TRICARE program. Through the conspiracy, Atlantic Pharmacy billed over $37 million to TRICARE and FEHBP, with TRICARE paying out over $30 million in false and fraudulent claims.

Evidence at trial showed that Francois used the fraud proceeds to buy a $3.6 million mansion that once belonged to Dwayne “the Rock” Johnson, along with a Ferrari, two Rolls Royces, and over $1 million in luxury automobiles.

In addition, trial evidence revealed the kickback conspiracy component of the fraud scheme. For example, the marketers told Francois and Tonge that if they did not get paid they could not pay the physicians, and thus the physicians would stop writing the prescriptions. Francois and Tonge continued to make payments and bill TRICARE up until May 2016, when TRICARE stopped covering the medications due to growing knowledge of similar fraud involving other compounding pharmacies. In total, seventeen individuals pled guilty or were convicted for their involvement with the fraudulent scheme or receipt of kickbacks.

“Serge Francois and Patrick Tonge have been held responsible for an egregious fraud scheme that unlawfully diverted over $30 million in federal health care monies that were set aside for the men and women in uniform who serve and protect our country,” stated Acting United States Attorney Benjamin G. Greenberg. “The U.S. Attorney’s Office and our law enforcement partners will continue to work tirelessly to identify for prosecution individuals, including healthcare providers, who carry out fraudulent schemes against TRICARE or other federal health care programs for their own personal financial benefit at a loss to the deserving beneficiaries.”

“The Defense Criminal Investigative Service is committed to protecting the integrity of the U.S. military health care program to provide top quality medical care to America’s Warfighters and their families, while ensuring that health care providers and facilities comply with Federal laws,” said John F. Khin, Special Agent in Charge, DCIS - Southeast Field Office. “Through joint investigations with our law enforcement partners, DCIS aggressively pursues criminal prosecutions and all available remedies to bring violators to justice. These guilty verdicts demonstrate the effectiveness of our investigative efforts.”

“The verdict reached in this case should be an example to those healthcare providers engaging in illegal schemes that the government is vigilant and these crimes will not be tolerated," said Special Agent in Charge Maximo Eamiguel, of the U.S. Postal Service Office of Inspector General Southern Area Field Office. “The USPS-OIG, along with our law enforcement partners will continue to vigorously investigate these types of cases in order to protect federal benefit programs from fraud and abuse ensuring the safety of its beneficiaries.”

“The jury’s verdict should stand as a deterrent to those who would engage in fraud and corruption for personal gain, and is a testament to the thorough and professional effort of our investigative and prosecutorial team,” said Special Agent in Charge James T. Wallis, of the U.S. Army Criminal Investigation Command’s Southeast Fraud Field Office. “We will diligently continue our efforts to pursue those engaged in criminal activity that impacts the integrity of U.S. Government and Army programs and resources within our purview.”

“FDA is fully committed to the vigorous criminal investigation and prosecution of individuals who threaten the health and safety of American consumers by causing misbranded drugs to be distributed,” said Justin D. Green, Special Agent in Charge, FDA Office of Criminal Investigations’ Miami Field Office. “Our office will continue to pursue and bring to justice those who place profits above the public health.”

“This conviction should act as a warning to those who believe they can defraud the government with impunity,” said Scott Rezendes, Special agent in Charge, OPM-OIG. “The OPM Office of the Inspector General is committed to holding such individuals accountable for their actions.”

Mr. Greenberg commended the investigative efforts of DCIS, USPIS-OIG, U.S. Army Criminal Investigation Command, FDA Office of Criminal Investigations and OPM-OIG. The case was prosecuted by Assistant United States Attorneys Daniel Bernstein and Franklin Monsour.

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.