Southern District of Florida

The last of five defendants involved in a stolen identity tax refund scheme have been sentenced in United States District Court.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.

According to court documents, from January 2014, through April 2014, defendants, John Mackenley Cesar, a/k/a “Cesar,” 26, of Miami, Lawrence Bernadel, a/k/a “Bernadel,” 22, of Tallahassee, Chedlor Dorilus, a/k/a “Dorilus,” 22, of Hollywood, Lubens Inalien, a/k/a “Lubaby,” a/k/a “Inalien,” 29, of Fort Lauderdale, and Ariel Ronet Walker, a/k/a “Walker,” 22, of Tallahassee, used the same Electronic Filing Identification Number (“EFIN”) at residences located in Broward County and Leon County, Florida, to file approximately 158 fraudulent tax returns with the IRS using stolen personal identifying information (“PII”) that belonged to other individuals.  In order to receive the tax refunds from those fraudulent tax returns, the defendants arranged to have the tax refunds deposited onto pre-paid debit cards, including pre-paid debit cards from H & R Block.   Once the tax refunds were deposited onto the pre-paid debit cards, the funds were used to purchase personal items or were withdrawn from ATMs in Broward County and elsewhere.

During the search of the residences used by the defendants to facilitate the fraudulent scheme, law enforcement recovered over 1,800 names, dates of birth, and Social Security numbers belonging to other individuals.  The total intended loss amount from the unauthorized tax filings and PII recovered from the residences was between $1 million and $2.5 million dollars.

Cesar, Bernadel and Dorilus pleaded guilty to one count of conspiracy to defraud the government with respect to claims, in violation of Title 18, United States Code, Section 286; and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2.  Walker pleaded guilty to one count of conspiracy to defraud the government with respect to claims, in violation of Title 18, United States Code, Section 286.  Inalien pleaded guilty to one count of misprision of a felony, in violation of Title 18, United States Code, Section 4. 

On August 14, 2015, Dorilus was sentenced to 70 months in prison, to be followed by three years of supervised release.  On December 11, 2015, Inalien was sentenced to 8 months in prison, to be followed by one year of supervised release.  On January 22, 2016, Walker was sentenced to 5 years’ probation.  On March 23, 2016, Cesar was sentenced to 58 months in prison, to be followed by three years of supervised release.   On March 30, 2016, Bernadel was sentenced to 42 months in prison, to be followed by three years of supervised release.  Cesar, Bernadel, Dorilus and Inalien were also ordered to pay joint and several restitution in the amount of $580,584.  Walker was ordered to pay restitution in the amount of $124,631.

Mr. Ferrer commended the investigative efforts of the Stolen Identity Refund Fraud Task Force, with special commendation to the FBI and IRS-CI.  This case is being prosecuted by Assistant U.S. Attorney Maurice A. Johnson.      

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.

John Milton Nagel, 47, pled guilty to three counts of mailing threatening communications from a foreign country, in violation of Title 18, United States Code, Section 877.  At sentencing, Nagel faces a maximum statutory sentence of up to five years in prison, three years of supervised release, and a $250,000 fine on each count.  Sentencing has been scheduled for May 26, 2016 at 2 p.m. before U.S. District Judge Jose E. Martinez.

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

According to court documents, between September 1, 2015 and September 18, 2015, Nagel entered the Mexico City main post office located at Palacio Postal, Avenida Tacuba No. 1, Centro Historico, Delegacion Cuachtemoc, 06002 Mexico City, Mexico, and knowingly deposited for mailing thirty-seven (37) envelopes all addressed to prominent United States political figures and business leaders, each containing a threatening letter and a white powdery substance.  A sample of the powder, removed from within the suspect letters, was thereafter sent to both Mexican and U.S. laboratories for analysis and ultimately revealed that the contents were bicarbonate.                                                      

The first page of each letter read “FREE SAMPLE OF EXECUTIVE TOOTH POWDER - ACTIVATES WITH HYDROGEN PEROXIDE.  DO NOT SWALLOW!  H2O2 MAY BE POISONOUS IF SWALLOWED DON'T PANIC, EVACUATE OR CALL 911…or there will be consequences...Mathew 13:49.”  According to the King James version of the Bible, Matthew 13:49 states: “So shall it be at the end of the world: the angels shall come forth, and sever the wicked from among the just.” 

Mr. Ferrer commended the investigative efforts of the FBI.  The case is being prosecuted by Assistant United States Attorneys Marc S. Anton and Ricardo A. Del Toro.

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

A tax service business owner and co-defendant pled guilty for their participation in a stolen identity tax refund fraud scheme. 

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcements Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.

Johny Wolf Jasmin, 32, of Boca Raton, pled guilty to one count of conspiracy to defraud the government with respect to claims, in violation of Title 18, United States Code, Section 286, and one count of aggravated identity theft in violation of Title 18, United States Code, Sections 1028A and 2. Carneisha Patrice Mitchell, 31, of Miami, pled guilty to one count of theft of government funds, in violation of Title 18, United States Code, Sections 641 and 2. At sentencing, the defendants each face up to ten years in prison for the conspiracy and theft of government money charges. Jasmin also faces a mandatory term of two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charge.

According to court documents, Jasmin owned and operated a tax service business called Wolf Vision, Inc. at an address located in Hollywood, Florida.  During the course of the investigation, law enforcement learned three separate Electronic Filing Identification Numbers (EFINs) were used to file false and fraudulent tax returns from Jasmin’s business.  One of those EFINs was assigned to Mitchell.  Based upon this information, law enforcement executed a search warrant at Jasmin’s business and recovered computers, thumb drives, prepaid debit cards, and numerous documents that contained over 2,100 names, dates of birth, and social security numbers that belonged to living and deceased individuals.

In fact, a review of Jasmin’s personal income tax for the 2014 tax year showed that Jasmin obtained the name, date of birth and social security number of a child who had passed away and later used that information to fraudulently claim the deceased child as one of his dependents. 

In addition, law enforcement learned that an IRS treasury tax refund check in the name of a deceased individual was deposited into Mitchell’s personal checking account.  Thereafter, Mitchell used the money from the IRS treasury check for her personal use. 

As a result of Jasmin and his co-conspirator’s fraudulent conduct, over 220 false and fraudulent federal income tax returns were filed with the IRS using stolen personal identifying information (PII) of living and deceased individuals.  Further, over $550,000 in tax refunds were sought from the false and fraudulent income tax returns filed from Jasmin’s tax business.

Sentencing for both defendants is scheduled for June 3, 2016 before U.S. District Judge William J. Zloch.   

Mr. Ferrer commended the investigative efforts of FBI, IRS-CI and ICE-HSI. This case is being prosecuted by Assistant U.S. Attorney Maurice A. Johnson.  

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

A Miami resident was sentenced to 34 months in prison, followed by three years of supervised release for his participation in a stolen identity tax fraud scheme.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Delany De-Leon Colon, Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Division, made the announcement.

Ronel Junior Lamour, 25, previously pled guilty to one count of possession of fifteen or more counterfeit access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2.

According to court documents, in 2013, Lamour used names, dates of birth and Social Security numbers of other people to file 2012 tax returns. As part of the scheme, Lamour set up bank accounts using unauthorized debit cards in the names of the filers and had the refunds wired into the accounts.

Court documents state that Lamour also fraudulently used debit card account numbers, issued to other persons, to purchase United States Postal Service (USPS) money orders.  On two separate occasions, Lamour deposited these USPS money orders into a bank account.

Federal law enforcement conducted an electronic search of Lamour’s cell phone pursuant to a warrant. The phone contained copies of passports, driver’s licenses and Social Security cards of over fifty (50) individuals. This information was forwarded to the IRS Scheme Development Center and twenty-five (25) of those individuals were found to have had false 2012 tax returns filed in their names.   

Mr. Ferrer commended the investigative efforts of IRS-CI and the USPIS.  The case is being prosecuted by Assistant U.S. Joshua S. Rothstein.

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 leaders of Colombia’s largest and most influential BACRIM (banda criminal or criminal group), CLAN USUGA (formerly referred to as Los Urabeños), were sentenced to 20 and 24 year prison terms for their involvement in a cocaine trafficking conspiracy. 

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and A.D. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Office, made the announcement.

On June 4, 2015, nine defendants, including Oscar David Pulgarin-Ganan, a/k/a “Niño,” a/k/a “Coroso,” and Ramiro Caro-Pineda, a/k/a “Nolasco,” a/k/a “Hugo” were charged in a single-count Indictment, in the Southern District of Florida, for their participation in large-scale drug trafficking organization based out of Colombia (Case No. 15cr20403).  Pulgarin-Ganan and Caro-Pineda conspired to traffic large amounts of cocaine from Colombia, through Central America, with the eventual destination being the United States, in violation of Title 21, United States Code, Sections 959 and 960.  Pulgarin-Ganan and Caro-Pineda pled guilty to the indictment and were respectively sentenced, in 2016, to 240 and 284 months’ imprisonment.

Pulgarin-Ganan and Caro-Pineda were top-level members of the CLAN USUGA drug trafficking organization.  Caro-Pineda oversaw transportation and shipments of all loads owned, controlled, or protected by the criminal group.  Pulgarin-Ganan was an owner, manager, and investor in loads with other high-level members of the drug trafficking organization.  Pulgarin-Ganan managed multi-ton loads being sent by airplane and go-fast vessels to Central American and eventually being imported into the United States.  In addition, Pulgarin-Ganan was in charge of coordinating all CLAN USUGA cocaine loads that arrived in Central America, with the final eventual destination being the United States. 

Caro-Pineda was also indicted in the Middle District of Florida, Eastern District of Texas, and Eastern District of New York and pled guilty to each indictment.

These cases are the 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. Ferrer commended the investigative efforts of the DEA.  Mr. Ferrer also recognized the U.S. Attorney’s Offices in the Middle District of Florida, Eastern District of Texas, and Eastern District of New York for their collective assistance with the prosecution of CLAN USUGA leaders and high-ranking members. This case is being prosecuted by Assistant U.S. Attorney Michael B. Nadler.

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

Two Colombian nationals were each sentenced to more than 19 years in prison for their involvement in an international cocaine trafficking conspiracy. 

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and A.D. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Office, made the announcement.

On July 20, 2010, German Bustos-Alarcon a/k/a “Puma” and Rafael Alvarez-Pineda a/k/a “Chepe,” were charged in a single-count indictment in the Southern District of Florida for their participation in large-scale drug trafficking organization based out of Colombia (Case No. 10cr20554).  Bustos-Alarcon and Alvarez-Pineda conspired to traffic large amounts of cocaine from Colombia, through Central America, with the eventual destination being the United States, in violation of Title 21, United States Code, Sections 959 and 960.  On March 23, 2015, German Bustos-Alarcon was extradited from Colombia to the Southern District of Florida.  On April 29, 2015, Alvarez-Pineda was also extradited from Colombia to the Southern District of Florida.  Bustos-Alarcon and Alvarez-Pineda each pled guilty to the indictment and were sentenced to 235 months’ imprisonment.

Bustos-Alarcon and Alvarez-Pineda were members of the Autodefensas Unidas de Colombia (AUC) and were principal lieutenants of AUC Leader Ramiro Vanoy-Murrillo a/k/a “Cuco Vanoy” (Case No. 99-CR-6153-KMM).  After the AUC leaders were extradited from Colombia to the United States in May 2008, Bustos-Alarcon and Alvarez-Pineda moved into leadership roles in the area of Caucasia, Colombia.  Bustos-Alarcon and Alvarez-Pineda formed a drug trafficking alliance with Colombia’s largest and most influential BACRIM (banda criminal or criminal group), CLAN USUGA (formerly referred to as Los Urabeños).  Bustos-Alarcon and Alvarez-Pineda purchased cocaine from laboratories and sold it to members of the CLAN USUGA, who then transported the narcotics to Central America and eventually on to the United States. 

These cases are the 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. Ferrer commended the investigative efforts of the DEA.  This case is being prosecuted by Assistant U.S. Attorney Michael B. Nadler.

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

The president of a transportation company based in Miami was sentenced today to 60 months in prison for his role in a health care fraud scheme involving three mental health centers that resulted in the submission of approximately $70 million in false and fraudulent claims to Medicare.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida and Special Agent in Charge George L. Piro of the FBI’s Miami Division made the announcement.

Damian Mayol, 45, of Miami, was sentenced by U.S. District Judge Ursula Ungaro of the Southern District of Florida, who also ordered Mayol to pay $26,808,841 in restitution and to forfeit the same amount.  In January 2016, Mayol was convicted of conspiracy to pay health care kickbacks after a five-day trial.

According to evidence presented at trial, Mayol was the president of Transportation Services Providers Inc. and, along with his co-conspirators, used the company to coordinate the payment of illegal health care kickbacks to recruiters, who in return referred patients to three now-defunct clinics in the Miami area: R&S Community Mental Health Inc. (R&S), St. Theresa Community Mental Health Center Inc. (St. Theresa) and New Day Community Mental Health Center LLC (New Day). 

The evidence introduced at trial further established that R&S, St. Theresa and New Day were community mental health centers that purported to provide intensive mental health services to Medicare beneficiaries.  On behalf of the recruited beneficiaries, the centers billed Medicare for costly partial hospitalization program (PHP) services that were not medically necessary or not provided to patients, according to trial evidence.  Trial evidence demonstrated that patient records, including group therapy session notes, were falsified to support claims for reimbursement from Medicare.  Between January 2008 and December 2010, the centers submitted approximately $70 million in false and fraudulent claims to Medicare.  Medicare paid approximately $28 million on those claims, the evidence showed. 

In December 2015, co-defendants Santiago Borges, Erik Alonso and Cristina Alonso were sentenced to prison terms ranging from 28 months to 120 months on related charges. 

The FBI investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Southern District of Florida.  Trial Attorneys A. Brendan Stewart and Timothy Loper of the Criminal Division’s Fraud Section prosecuted the case. 

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion.  In addition, the Department of Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.

To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.  

The president of a transportation company based in Miami was sentenced today to 60 months in prison for his role in a health care fraud scheme involving three mental health centers that resulted in the submission of approximately $70 million in false and fraudulent claims to Medicare.

U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Special Agent in Charge George L. Piro of the FBI’s Miami Division made the announcement.

Damian Mayol, 45, of Miami, was sentenced by U.S. District Judge Ursula Ungaro of the Southern District of Florida, who also ordered Mayol to pay $26,808,841 in restitution and to forfeit the same amount.  In January 2016, Mayol was convicted of conspiracy to pay health care kickbacks after a five-day trial.

According to evidence presented at trial, Mayol was the president of Transportation Services Providers Inc. and, along with his co-conspirators, used the company to coordinate the payment of illegal health care kickbacks to recruiters, who in return referred patients to three now-defunct clinics in the Miami area: R&S Community Mental Health Inc. (R&S), St. Theresa Community Mental Health Center Inc. (St. Theresa) and New Day Community Mental Health Center LLC (New Day). 

The evidence introduced at trial further established that R&S, St. Theresa and New Day were community mental health centers that purported to provide intensive mental health services to Medicare beneficiaries.  On behalf of the recruited beneficiaries, the centers billed Medicare for costly partial hospitalization program (PHP) services that were not medically necessary or not provided to patients, according to trial evidence.  Trial evidence demonstrated that patient records, including group therapy session notes, were falsified to support claims for reimbursement from Medicare.  Between January 2008 and December 2010, the centers submitted approximately $70 million in false and fraudulent claims to Medicare.  Medicare paid approximately $28 million on those claims, the evidence showed. 

In December 2015, co-defendants Santiago Borges, Erik Alonso and Cristina Alonso were sentenced to prison terms ranging from 28 months to 120 months on related charges. 

The FBI investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Southern District of Florida.  Trial Attorneys A. Brendan Stewart and Timothy Loper of the Criminal Division’s Fraud Section prosecuted the case.                  

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion.  In addition, the Department of Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.

To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov. 

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

Following a three-day trial before United States District Court Judge Kenneth A. Marra, a jury convicted a Lauderhill resident for his participation in a stolen identity tax fraud scheme which occurred in Palm Beach and Broward Counties.

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

Jean Daniel Julien, of Lauderhill, was convicted of one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349, and one count of theft of government money, in violation of Title 18, United States Code, Section 641.

According to evidence presented at trial, Julien received a $56,000 U.S. Treasury refund check in the name of “D.H.”  Another individual opened a bank account in D.H.’s name, and the defendant deposited the refund check into this account.  Julien then deposited a $55,000 starter check written on the D.H. account into a business account opened by Julien’s wife.  During the next two days, most of the $55,000 was withdrawn from the account.

Julien is scheduled to be sentenced by United States District Court Judge Kenneth A. Marra on June 10, 2016. At sentencing, Julien faces up to thirty years in prison for the conspiracy charge, and up to ten years in prison for the theft of government money charge.

Mr. Ferrer commended the investigative efforts of IRS-CI.  The case is being prosecuted by Assistant U.S. Attorney William Zloch.

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 Martin County man was convicted yesterday, following a federal jury trial, on charges stemming from his harassment of police officers and the obstruction of civil lawsuits, during the course of extensive bank and mail fraud schemes.  

Wifredo A. Ferrer, 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.

Mark Alan Yoder, 55, of Hobe Sound, was charged by indictment with five counts of bank fraud, in violation of Title 18, United States Code, Section 1344; and four counts of mail fraud, in violation of Title 18, United States Code, Section 1341.  Yoder was convicted on all counts of the indictment and faces a statutory maximum sentence of up to 30 years in prison and/or a $1,000,000 fine.  A sentencing date has not yet been scheduled.  Sentencing will be imposed by Senior United States District Judge Paul C. Huck in Fort Pierce. 

According to trial testimony and court documents, Yoder carried out bank and mail fraud schemes.  On October 18, 2010, Yoder received a traffic citation, for driving without a seat belt, from a Tequesta Police Department Officer.  Yoder objected to the ticket, demanded to speak to a supervisor and denied the officer had any authority for the stop. The officer’s supervisor arrived on the scene to provide assistance.  Beginning in the months following the traffic stop and into early 2011, Yoder sent, by mail, a succession of fraudulent formal demands and notices, claiming the two police officers and the Tequesta Police Department each owed him $150,000 in damages.  Yoder also sent similar demands for large damage payments to officers and executives of the bank that was foreclosing upon his home.  Not long after the final judgment of foreclosure was entered in the state court, Yoder filed a fraudulent mechanic’s lien against the bank’s property, falsely claiming that he was owed thousands of dollars for his maintenance of the home prior to the foreclosure.  Yoder renewed the fraudulent mechanic’s lien, with successive filings, in 2014 and 2015.

Mr. Ferrer commended the investigative efforts of the FBI.  Mr. Ferrer also thanked the Martin County Sheriff’s Office, the Tequesta Police Department, and the Office of the Clerk of the Circuit Court for Martin County, Florida, for their assistance with this investigation.  The case was prosecuted by Assistant U.S. Attorneys Theodore Cooperstein and Kerry Baron.   

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

A Miami man pleaded guilty yesterday for his role in a scheme to defraud two commercial lenders and the Export-Import Bank of the United States (EXIM) out of more than $11 million.

U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Inspector General Michael McCarthy of EXIM made the announcement.

Guillermo A. Sanchez-Badia, 61, pled guilty before U.S. District Judge Joan A. Lenard of the Southern District of Florida in Miami to one count of conspiracy to commit wire fraud, one count of wire fraud and one count of conspiracy to commit money laundering.  Sentencing is scheduled for June 3 before Judge Lenard.

According to admissions made as part of his plea agreement, from 2007 through 2012, Sanchez and his co-conspirators utilized companies they controlled to create fictitious invoices for sales of merchandise that never occurred.  These invoices were sold to two Miami-area commercial lenders in a process called “factoring,” which allowed the conspirators to receive cash for approximately 90 percent of the value of the merchandise listed on the fake invoices, according to the plea.  Sanchez admitted that, in order to continue the scheme, he and his co-conspirators created additional fictitious invoices, transferred the funds they received through numerous bank accounts under their control and, in a Ponzi-style scheme, used a portion of the new proceeds to pay off prior factored invoices. 

Sanchez admitted that when the Miami lenders refused to extend further credit, he and his co-conspirators created false invoices and shipping documents to obtain a loan guaranteed by the EXIM.  Rather than acquiring, selling and shipping American manufactured goods as required for an EXIM guaranteed loan, Sanchez and his co-conspirators used the loan proceeds to pay off earlier factored invoices, thereby extending the scheme, and kept the balance of the loan proceeds for themselves, Sanchez admitted.  The factoring loans and the EXIM-guaranteed loan ultimately defaulted, causing more than $11 million dollars in losses to the lenders and the United States, according to the plea. 

Five other individuals have been convicted for their roles in this scheme.  Isabel C. Sanchez, 36, of Miami, the daughter of Sanchez-Badia, and Gustavo Giral, 38, of Miami, who were charged in the same indictment as Sanchez-Badia, pleaded guilty on Feb. 26, 2016, for their participation in this scheme to defraud, and will be sentenced on May 13, 2016.  Isabel Sanchez created the false sales and shipping documents and arranged for the transfer of criminal proceeds through over 50 bank accounts.  Giral assisted in circulating the fraudulent documents and in converting loan proceeds to currency, facilitating the money-laundering concealment by making the source of funds more difficult to trace.  Freddy Moreno-Beltran, 43, of Bogota, Colombia; Ricardo Beato, 62, of Miami; and Jorge Amad, 48, of Miramar, Florida, were separately charged and have each pleaded guilty for their roles in the scheme.  According to admissions in their plea agreements, Moreno-Beltran owned Clientric, a company in Colombia, which purportedly purchased goods from companies that the defendants controlled.  Beato and Amad owned Approach Technologies International, a company offering call center software.  The conspirators admitted that they told the EXIM that Approach Technologies International had sold more than $1 million in American manufactured software and equipment to Clientric, which was false, in order to obtain an EXIM-guaranteed loan.  Moreno-Beltran and Beato were each sentenced to 12 months and one day in prison and ordered to pay $1,951,643.05 in restitution. 

Ultimately, the EXIM-guaranteed loan defaulted, causing a loss to the United States of nearly $2 million.

The EXIM Office of Inspector General investigated the case, and Senior Litigation Counsel Patrick Donley and Trial Attorney William Bowne of the Criminal Division’s Fraud Section prosecuted the case.

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

A Miami man pleaded guilty today for his role in a scheme to defraud two commercial lenders and the Export-Import Bank of the United States (EXIM) out of more than $11 million.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida and Inspector General Michael McCarthy of EXIM made the announcement.

Guillermo A. Sanchez-Badia, 61, pleaded today before U.S. District Judge Joan A. Lenard of the Southern District of Florida in Miami to one count of conspiracy to commit wire fraud, one count of wire fraud and one count of conspiracy to commit money laundering.  Sentencing is scheduled for June 3 before Judge Lenard.

According to admissions made as part of his plea agreement, from 2007 through 2012, Sanchez and his co-conspirators utilized companies they controlled to create fictitious invoices for sales of merchandise that never occurred.  These invoices were sold to two Miami-area commercial lenders in a process called “factoring,” which allowed the conspirators to receive cash for approximately 90 percent of the value of the merchandise listed on the fake invoices, according to the plea.  Sanchez admitted that, in order to continue the scheme, he and his co-conspirators created additional fictitious invoices, transferred the funds they received through numerous bank accounts under their control and, in a Ponzi-style scheme, used a portion of the new proceeds to pay off prior factored invoices. 

Sanchez admitted that when the Miami lenders refused to extend further credit, he and his co-conspirators created false invoices and shipping documents to obtain a loan guaranteed by the EXIM.  Rather than acquiring, selling and shipping American manufactured goods as required for an EXIM guaranteed loan, Sanchez and his co-conspirators used the loan proceeds to pay off earlier factored invoices, thereby extending the scheme, and kept the balance of the loan proceeds for themselves, Sanchez admitted.  The factoring loans and the EXIM-guaranteed loan ultimately defaulted, causing more than $11 million dollars in losses to the lenders and the United States, according to the plea. 

Five other individuals have been convicted for their roles in this scheme.  Isabel C. Sanchez, 36, of Miami, the daughter of Sanchez-Badia, and Gustavo Giral, 38, of Miami, who were charged in the same indictment as Sanchez-Badia, pleaded guilty on Feb. 26, 2016, for their participation in this scheme to defraud, and will be sentenced on May 13, 2016.  Isabel Sanchez created the false sales and shipping documents and arranged for the transfer of criminal proceeds through over 50 bank accounts.  Giral assisted in circulating the fraudulent documents and in converting loan proceeds to currency, facilitating the money-laundering concealment by making the source of funds more difficult to trace.  Freddy Moreno-Beltran, 43, of Bogota, Colombia; Ricardo Beato, 62, of Miami; and Jorge Amad, 48, of Miramar, Florida, were separately charged and have each pleaded guilty for their roles in the scheme.  According to admissions in their plea agreements, Moreno-Beltran owned Clientric, a company in Colombia, which purportedly purchased goods from companies that the defendants controlled.  Beato and Amad owned Approach Technologies International, a company offering call center software.  The conspirators admitted that they told the EXIM that Approach Technologies International had sold more than $1 million in American manufactured software and equipment to Clientric, which was false, in order to obtain an EXIM-guaranteed loan.  Moreno-Beltran and Beato were each sentenced to 12 months and one day in prison and ordered to pay $1,951,643.05 in restitution. 

Ultimately, the EXIM-guaranteed loan defaulted, causing a loss to the United States of nearly $2 million.

The EXIM Office of Inspector General investigated the case, and Senior Litigation Counsel Patrick Donley and Trial Attorney William Bowne of the Criminal Division’s Fraud Section prosecuted the case.

Two Mexican nationals, who were working in the Homestead, Florida area and elsewhere, have been charged by indictment with participating in a conspiracy to provide and obtain forced labor.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), made the announcement.

Agustin Mendez-Vazquez, 43, and his son, Ever Mendez-Perez, 23, both originally of Mexico, were charged by indictment with one count of conspiracy to provide and obtain forced labor, in violation of Title 18, United States Code, Section 1594(b). Agustin Mendez-Vazquez was also charged with one count of providing and obtaining forced labor, in violation of Title 18, United States Code, Section 1589(a).  If convicted, Agustin Mendez-Vazquez faces a statutory maximum term of imprisonment of 40 years.  Ever Mendez-Perez faces a statutory maximum term of imprisonment of 20 years.

According to court records, Agustin Mendez-Vazquez and Ever Mendez-Perez, who work as unlicensed labor subcontractors on tomato farms in the Homestead area, utilized physical force, threats of physical force, threats of deportation, and debt bondage to maintain control over other migrant workers.  Workers under the defendants’ control were beaten if they did not work every day; were subjected to harassment and abuse; and were required to relinquish large portions of their paychecks – sometimes their entire paychecks – to the Mendezes. The defendants are currently being held without bond pending trial.

Mr. Ferrer commended the investigative efforts of ICE-HSI.  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.

An owner of two fraudulent medical clinics in the Miami area was sentenced to 82 months in prison today for his role in a Medicare fraud scheme that caused more than $3 million in losses.

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

Carlos Medina, 56, of Miami, pleaded guilty before U.S. District Judge Cecilia M. Altonaga of the Southern District of Florida to one count of conspiracy to commit health care fraud in January 2016.  In addition to his prison sentence, Judge Altonaga ordered Medina to forfeit $3,067,898.69.

According to admissions in the factual basis for his plea agreement, Medina was the owner of Doral Community Clinic Inc. and Advanced Medical of Doral Inc., however, other individuals served as the owners on the clinics’ corporate paperwork.  Medina’s clinics purportedly provided medically necessary services to Medicare beneficiaries, but in reality the clinics charged cash kickbacks ranging from $100 to $200 in exchange for prescriptions for home health care services, and some of the beneficiaries who frequented the clinics did not meet Medicare’s criteria for the prescribed services, according to the factual basis.  Some of the services prescribed by the medical professionals at Doral and Advanced Medical were never provided by the home health agencies to which the patients were referred, according to admissions in the factual basis. 

The factual basis for the plea agreement states that Medina’s clinics sold prescriptions that were used to facilitate submission of false and fraudulent claims to Medicare by more than 20 home health agencies in the Miami area.  Medicare paid more than $3 million in payments as a direct result of prescriptions sold by Doral and Advanced during a period of less than two years, according to the factual basis. 

The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Southern District of Florida.  Fraud Section Trial Attorneys Lisa H. Miller and Jon M. Juenger are prosecuting the case.                          

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion.  In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov. 

A North Miami Beach resident was sentenced to 84 months in prison, to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $585,070, for his participation in stolen identity tax and unemployment insurance claims fraud schemes.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), William Hernandez, Chief, North Miami Beach Police Department (NMBPD), Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations Miami Office (DOL-OIG), Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcements Homeland Security Investigations (ICE-HSI), Miami Field Office, and Carlos Canino, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), made the announcement.

Elton Lloyd Bandoo, a/k/a “Ebdaiceman”, previously pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). 

According to court documents, on February 6, 2015, law enforcement executed a federal search warrant at Bandoo's residence. While executing the search warrant, law enforcement seized several computers and external media devices that contained the personal identification information (PII) of approximately 27,000 victims.  In addition, law enforcement discovered papers, including billing forms from a medical facility, handwritten lists of names, dates of birth, and Social Security numbers, and printed lists of names, dates of birth, and Social Security numbers, of approximately 1,400 individuals. Bandoo's fingerprints were discovered on the papers containing the victims' PII.

The IRS confirmed that the PII on which Bandoo's fingerprints were discovered was used to file fraudulent tax returns, many in the names of deceased individuals, seeking $1,073,112 in fraudulent refunds. Bandoo’s IP address was used to request $11,804 in unauthorized payments on nine fraudulent unemployment insurance claims.

In total, the amount of intended loss resulting from Bandoo’s fraudulent schemes is $14,826,443.

Mr. Ferrer commended the investigative efforts of IRS-CI, NMBPD, DOL-OIG, ICE-HSI, and ATF.  This case was prosecuted by Assistant U.S. Attorney Jamie R. Galvin.

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 Guyanese national was convicted following a federal jury trial on charges stemming from his leadership and participation in an extensive mortgage fraud scheme.  

Wifredo A. Ferrer, 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.

Ravindranauth “Ravi” Roopnarine, 56, of Guyana, was charged by indictment with conspiracy to commit wire fraud and mail fraud, in violation of Title 18, United States Code, Section 1349; mail fraud, in violation of Title 18, United States Code, Section 1341; and wire fraud in violation of Title 18, United States Code, Section 1343.  On Friday, March 11, 2016, a twelve-person jury convicted Roopnarine on all three counts, after a four day trial presided over by United States District Judge Jose E. Martinez. 

According to publicly filed documents and statements made in court, on December 9, 2010, a Fort Pierce federal grand jury indicted Roopnarine, Gergawattie “Kamla” Seecharan, Bhaardwaj “Deo” Seecharan and Linda Rovetto for their participation in a mortgage fraud scheme.  Kamla Seecharan, Deo Seecharan and Rovetto previously pled guilty and were sentenced.  Roopnarine in mid-2015 waived extradition and returned from Trinidad and Tobago to the Southern District of Florida. 

According to the court documents, Roopnarine recruited and led his co-conspirators in a widespread mortgage fraud scheme involving more than 150 residential real estate properties in Indian River, Miami-Dade, and Orlando-Orange Counties.  Roopnarine, along with Kamla Seecharan and her husband Deo Seecharan, conspired to solicit mainly Guyanese residents of Florida and other States to act as straw buyers on fraudulent mortgage loan applications.  Approximately 80 individuals served as straw buyers of properties in Vero Lake Estates (VLE), in Indian River County, and other developments.  This scheme resulted in the issuance of more than $50 million in fraudulent mortgage loans.  The co-conspirators then used the proceeds to purchase additional properties, fund pre-existing fraudulent mortgage loans, and pay kickbacks to the straw buyers.  In addition, Kamla Seecharan and Rovetto unlawfully diverted more than $3.5 million in mortgage loans from real estate closing escrow accounts to Raviworld New Homes, Inc., a company managed by Roopnarine and Deo Seecharan. 

Kamla Seecharan pled guilty to participating in a conspiracy involving more than $50 million dollars in fraudulent mortgage loan funds, in violation of Title 18, United States Code, Sections 1341, 1343 and 1349.  Deo Seecharan and Rovetto each pled guilty to participating in a conspiracy to commit bank fraud involving $3.5 million dollars in diverted real estate escrow funds, in violation of Title 18, United States Code, Sections 1349 and 1344. 

 U.S. District Judge Jose E. Martinez sentenced Kamla Seecharan and Deo Seecharan, to 121 months and 60 months, respectively, in prison, to be followed by five years of supervised release.  In addition, Kamla Seecharan and Deo Seecharan were ordered to pay restitution, in the amount of $2,040,343.14 and $9,041,133.46, respectively.  U.S. District Judge Martinez sentenced Rovetto to 42 months in prison.

Judge Martinez has set a sentencing hearing for Roopnarine on May 10, 2016, at 1:30 p.m. in the Fort Pierce U.S. Courthouse.  Roopnarine faces a statutory maximum sentence of up to 30 years in prison and/or a $1,000,000 fine.

Mr. Ferrer commended the investigative efforts of the FBI.  Mr. Ferrer also thanked the State of Florida Office of Financial Regulation, Bureau of Finance, West Palm Beach Regional Office for their work on this investigation, and the United States Marshals Service for their assistance with the extradition and return of Roopnarine to Florida from Trinidad & Tobago.  The case was prosecuted by Assistant U.S. Attorneys Theodore Cooperstein and James V. Hayes.   

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.

Tyler Scott Topolski, 20, of Vero Beach, pled guilty today before Chief United States Magistrate Judge Frank J. Lynch, Jr. in Ft. Pierce.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Deryl Loar, Sheriff, Indian River County Sheriff’s Office, and David E. Currey, Chief, Vero Beach Police Department, made the announcement. 

Topolski pled guilty to an indictment charging him with bank robbery, in violation of Title 18, United States Code Section 2113(a).  Sentencing is scheduled for June 3, 2016 before United States District Judge Kenneth A. Marra in Ft. Pierce.  At sentencing, Topolski faces a possible maximum statutory sentence of 20 years in prison.

According to Court records, on November 6, 2015, at approximately 2:28 p.m., Topolski entered the Florida Community Bank, located at 4000 20th Street, Vero Beach, with a demand note, which read, “NO dye Paacs, I need All the 50’s & 100’s In the Bag! Fan the bills out first. Any restiance I will kill you & myself.”  Topolski left with approximately $973.00 in cash.  The note was later recovered in a nearby parking lot. 

After Vero Beach Police Department detectives received information from the community, identifying Topolski from bank surveillance photographs, they obtained a South Carolina driver’s license in order to confirm his identity.  Several bank witnesses positively identified Toploski from photographic lineups.  As a result, the detectives obtained a State of Florida Arrest Warrant for Topolski and notified the Horry County Police Department in South Carolina.  On November 7, 2015, Topolski was successfully captured, after he was located, hiding in his mother’s closet in Myrtle Beach, South Carolina.  Topolski gave detectives a full confession, admitting that he had cut his facial hair, in order to conceal his identity.

Mr. Ferrer commended the investigative efforts of the FBI, Indian River County Sheriff’s Office, Vero Beach Police Department, and Horry County Sheriff’s Office in South Carolina for their work on this case.  The case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.

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

Enrique Martinez Mathews, a former Registered Nurse at Veteran Affairs (VA) Medical Center Miami, was sentenced on March 2, 2016, to 60 months in prison after previously pleading guilty to altering and falsifying VA Computer Records (obstruction and computer related fraud), in violation of Title 18, United States Code, Sections 1519 and 1030. 

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Monty Stokes, Special Agent in Charge, United States Department of Veteran Affairs, Office of Inspector General, Criminal Investigations Division (VA OIG), made the announcement.

According to the court record, Martinez interfered with an internal investigation at the VA Medical Center Miami.  The internal investigation related to the death of a veteran in Martinez’s care.  The internal investigation revealed that Martinez altered VA patient records of the veteran under his care, while the patient recovered in the Surgical Intensive Care Unit at the VA in Miami.  The defendant’s actions caused appropriate medical treatment to be withheld from the veteran, who later passed away.  Martinez then altered additional records in an attempt to conceal his actions. 

U.S. Attorney Wifredo Ferrer stated, “Protecting our veterans is a national concern.  Together with our partners at the Veterans Affairs Administration, the U.S. Attorney’s Office will identify for prosecution those individuals who compromise the personal information and potential safety and security of our citizens.”

Special Agent in Charge Monty Stokes said, “This investigation represents the VA OIG’s commitment to investigate obstruction as well as alterations of medical records that needlessly compromise veterans’ care and subject them to harm.  We will continue to vigorously investigate employees whose actions corrupt the integrity of VA’s health care records relied upon by VA clinicians who treat our nation’s heroes.”

Mr. Ferrer commended the investigative efforts of the VA OIG.  The case was prosecuted by Assistant U.S. Attorneys Benjamin Widlanski and 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.

The final defendant pled guilty in a stolen identity tax refund fraud scheme involving student financial services accounts.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Delany De-Leon Colon, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.

Emmanuel Avrilien, 23, of Miami, pled guilty to one count of conspiracy to commit an offense against the United States, in violation of Title 18, United States Code, Section 371, and one count of theft of government money, in violation of Title 18, United States Code, Section 641.  The defendant was remanded into custody after his guilty plea was accepted by the Court.

Co-defendants Andy Lamour, 22, Tamica Smith, 26, Marie Joseph, 25, and Gerrey Cherrelus, 22, all of Miami, each previously pled guilty to the same two charges, and Sandy Jean-Louis, 21, of Miami, previously pled guilty to the conspiracy charge. All of the co-defendants have been sentenced. As part of their plea agreements, Avrilien, Lamour, Smith, Joseph, Cherrelus and Jean-Louis agreed to pay restitution in the amounts of $98,481.00, $26,172.00, $17,395.00, $22.399.00, $13,242.00, and $28,561.63, respectively.

According to court documents, Lamour, Cherrelus and Jean-Louis were students at Miami Dade College; Avrilien, Lamour, Smith and Joseph were employees of a Target Store. From April 17, 2012 to January 24, 2013, the defendants participated in a tax fraud scheme where the defendants received fraudulently obtained tax refunds in their personal Higher One, Inc. and/or Citibank accounts.   Avrilien paid the other defendants for allowing their accounts to receive the stolen tax refunds, and directed Lamour to recruit other Target Store employees and Miami Dade College students to participate in the scheme.

Court documents also state that Avrilien and unknown co-conspirators filed a total of 145 fraudulent tax returns which directed the tax refunds to be deposited into one of the other defendant’s accounts. After the tax refunds were deposited into a defendant’s account, that defendant withdrew the money from the account at ATMs or through counter withdrawals.

Sentencing for Avrilien is scheduled for May 19, 2016 at 10:30 a.m. before Chief Judge K. Michael Moore. At sentencing, the Avrilien faces up to five years in prison for the conspiracy charge, and up to ten years in prison for the theft of government money charge.

Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to USPIS, IRS-CI, and the FBI. The case is being prosecuted by Assistant U.S. Attorney Gera Peoples.

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 Broward County resident pled guilty today for his role in a Jamaica based telemarketing fraud scheme.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida and Delany De-Leon Colon, Acting Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, made the announcement.

Delroy Drummond, 26, of Broward County, pled guilty to conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 1349.  Drummond is scheduled to be sentenced on May 31, 2016 at 1:15 p.m. by U.S. District Judge William P. Dimitrouleas.  At sentencing, Drummond faces a maximum statutory sentence of up to twenty years in prison. 

According to documents and information presented in Court, beginning in or about April 2015, Drummond’s co-conspirators contacted elderly victims in the United States and falsely informed them that they had won a lottery.  These co-conspirators told victims they had to pay several thousand dollars in taxes and fees in order to collect their purported lottery winnings. The co-conspirators then instructed the victims on how to send this money, and to whom, including directing that the funds be sent to Drummond.

In September 2013, Drummond was contacted in Miami, Florida, by law enforcement regarding a package, which was sent through the mail, containing money from a victim of the fraudulent scheme.  At that time, Drummond was confronted with the fact that he was participating in a lottery scheme and was warned by law enforcement to stop receiving money from victims of telemarketing fraud.

In April 2015, Drummond obtained money wired to him under a fictitious name from a victim who had been falsely told he/she had won a $2.5 million lottery prize.  Drummond used fraudulent identification in order to receive these funds.  In May 2015, Drummond obtained money wired to him under a fictitious name from another victim who was falsely informed he/she had won a lottery prize.  Between April 2015 and December 2015, Drummond received numerous packages containing money via the United States Mail, Federal Express, and United Parcel Service from multiple victims located throughout the United States.  As a result of the fraudulent scheme, the victims lost approximately $500,000.  

Mr. Ferrer commended the investigative efforts of USPIS, Homeland Security Investigations, U.S. Marshal Service, Broward Sheriff’s Office Narcotics Interdiction Task Force and the Miami Dade Police Department Economic Crimes Unit.  The case is being prosecuted by Assistant United States Attorney Randy Katz.

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

Sunland Pest Control Services, Inc. (Sunland), Grenale Williams, 53, of South Bay, and Canarie Deon Curry, 40, of Riviera Beach, pled guilty today in federal court in Fort Pierce before United States District Court Judge Jose E. Martinez in connection with the illegal application of a pesticide that resulted in injuries to a minor child. 

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Andy Castro, Acting Special Agent in Charge, United States Environmental Protection Agency (EPA), Criminal Investigation Division, Atlanta Area Office, made the announcement. 

Sunland, Williams, and Curry, pled guilty for their involvement in the illegal application of sulfuryl fluoride (a pesticide), contrary to the label’s safety requirements, in violation of Title 7, United States Code, Section 136i(b)(1)(B).  Sunland also pled guilty to making false statements in connection with the investigation, in violation of Title 18, United States Code, Section 1001. Williams and Curry face a statutory maximum sentence of up to one year in prison and a fine of up to $100,000, to be followed by and a period of supervised release.  In addition, Sunland faces up to five years of probation and a $500,000 fine for the false statements conviction.  Sentencing is scheduled for May 11, 2016 at 12:00 p.m. in Fort Pierce. 

According to court documents, the federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) regulates the use of pesticides, including those designated for restricted use due to their potential adverse effects, including serious injury.  Application of restricted use pesticides is limited to certified applicators or those under the direct supervision of certified applicators.  Sulfuryl fluoride, a commonly used antimicrobial in structural fumigations for termites, is one such restricted use pesticide that is registered with the EPA.  At the heart of the safe use of such pesticides is compliance with the product label, which includes the written, printed, or graphic matter associated with the pesticide.  Under FIFRA, the label is the law, and strict compliance with it is critical to the safe application of the restricted use pesticide.  Federal law also prohibits the making of material false statements in a matter within the jurisdiction of the EPA.

Court records and a joint factual statement indicate that in June 2015 residents contracted with Terminix for a home fumigation for termites under an existing warranty.  Terminix, without warning or approval, subcontracted the job to Sunland.  The fumigation occurred over a weekend and the residents returned to their home on Sunday, August 16, 2015 to find a clearance tag on the front door indicating that it was safe to enter.  During the evening several family members became ill, and medical attention was sought for their nine year old son.  It was determined that the family’s symptoms were consistent with pesticide poisoning. 

A subsequent investigation revealed that contrary to the label requirements for use of the potentially deadly gas, the defendants failed, among other violations, to: provide the Fact Sheet for the pesticide being used; have the required number of properly trained personnel on site following the application of the pesticide; properly aerate the fumigated space; and conduct clearance testing with an approved and calibrated Low Fumigant Level Detection Device.  In addition, a clearance tag was left at the premises indicating it was safe to enter when in fact the requisite procedures had not been completed.  The family was falsely assured by Terminix and Sunland that the aeration and clearance requirements had been met.  Additionally, Sunland representatives misrepresented the specific brand of pesticide that was used and indicated that the fumigation, aeration, and clearance of the home was in accordance with the law when in truth and fact, the defendants were not in compliance.

United States Attorney Wifredo A. Ferrer stated, “Federal regulations are in place to ensure that the public is protected.  Individuals and corporations who knowingly side-step the safety protocols that have been instituted expose others to potentially dangerous consequences.  The U.S. Attorney’s Office will continue to work with our law enforcement partners to hold those accountable who violate the law.”

“The preventable toxic poisoning of a young boy is a stark reminder of why pesticides must be used properly and responsibly,” said Andy Castro, Acting Special Agent in Charge of EPA’s criminal enforcement program in Florida.  “EPA’s investigation revealed numerous FIFRA violations before, during, and after the defendants’ fumigated the victims’ home.  These charges demonstrate that those who knowingly misuse pesticide products threaten the most vulnerable among us, and can expect to be prosecuted.”  

Mr. Ferrer commended the investigative efforts of the EPA, the Florida Department of Agriculture and Consumer Services, Bureau of Pesticide and Incident Response, and the Florida Office of Agricultural Law Enforcement.  The case was prosecuted by Special Assistant U.S. Attorney Jodi A. Mazer and Assistant U.S. Attorney Thomas Watts-FitzGerald of the Economic & Environmental Crimes Section.

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

Today, a former youth pastor pleaded guilty to the production and distribution of child pornography before Chief Magistrate Judge Frank J. Lynch, Jr., in Fort Pierce, Florida.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and William Snyder, Sheriff, Martin County Sheriff’s Office (MCSO), made the announcement.

Jeffrey Brian Mobley, 24 of Ocala, formerly of Stuart, Florida pleaded guilty to an indictment, charging four counts of production of visual depictions of sexual exploitation of minors, in violation of Title 18, United States Code, Sections 2251(a) and (e) and two counts of distribution of visual depictions of sexual exploitation of minors, in violation of Title 18, United States Code, Sections 2252(a)(2) and (b)(1).  Mobley faces a mandatory minimum of 15 to 30 years’ imprisonment for the production counts and a mandatory minimum of 5 to 20 years’ imprisonment for the distribution offenses.  Mobley is scheduled to be sentenced by U.S. District Judge Jose E. Martinez on May 9, 2016 at 1:30 p.m.

According to the court record, in September 2015, a suspicious conduct report was made to the Martin County Sheriff’s Office concerning a youth pastor, Jeffrey Brian Mobley, and a minor who was under his trust and care through a religious based youth program in Stuart, Florida.  During the course of the investigation law enforcement learned that Mobley, while the youth pastor, engaged in sexual intercourse with a minor who was a participant in the church’s youth program.  Using various forms of electronic communication, Mobley induced the minor to engage in sexual activity and produced sexually explicit images of their illicit relationship. 

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

Mr. Ferrer commended the investigative efforts of the FBI and Martin County Sheriff’s Office for their work on this case.  Mr. Ferrer also thanked the members of the United States Attorney’s Office for the Middle District of Florida for their assistance with this matter.  The case was prosecuted by Assistant U.S. Attorney Carmen Lineberger.

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

A Broward County resident was convicted today by a jury in federal court for being a felon in possession of a firearm and ammunition.  

Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Carlos Canino, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, and Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), made the announcement.                                     

Derek Danard Slade, 25, of Hollywood, was convicted, following a four-day jury trial before U.S. District Judge William P. Dimitrouleas, of being a felon in possession of a firearm and ammunition.  Slade faces a maximum sentence of up to 10 years in federal prison for the crime of conviction.  Slade is scheduled to be sentenced by Judge Dimitrouleas on May 20, 2016, at 1:45 p.m. in Fort Lauderdale.

According to evidence presented at trial, a deputy with the Broward County Sheriff’s Office observed a “hand-to-hand” narcotics transaction take place in a vehicle in the area of Dania Beach.  In addition to Slade, the vehicle had three other occupants.  After being stopped by law enforcement, Slade refused to show his hands to the deputies and kept them hidden under a hat.  The other occupants of the vehicle complied with law enforcement’s directives.  Once he finally complied with the deputy’s orders, Slade was handcuffed.  After he was handcuffed, Slade broke away from the deputies and fled the scene on foot.  Slade was eventually apprehended and deputies located, under the hat in the vehicle, a .380 caliber Beretta firearm, fully loaded with fourteen rounds of .380 caliber ammunition.  

This case is, in large part, the result of the Violence Reduction Partnership, launched by the U.S. Attorney’s Office.  Through this Partnership, the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminal networks in various neighborhoods, while simultaneously working with community leaders and concerned citizens to mentor at-risk youths, provide jobs and job training to young families, and help probationers and parolees successfully re-enter society.

Mr. Ferrer commended the investigative efforts of ATF and BSO.  The case is being prosecuted by Assistant U.S. Attorneys Rosa Rodriguez-Mera and Randy Katz.

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

A Miami-Dade County resident was sentenced to 44 months in prison, to be followed by three years of supervised release, for filing more than $7 million in false refund claims with the Internal Revenue Service.

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

Efrain Galvez, 53, of Miami, Florida, previously pled guilty to one count of making a false, fictitious, and fraudulent claim against the United States, in violation of Title 18, United States Code, Section 287.

According to court documents, Galvez filed false 2005 through 2008 federal income tax returns with the IRS claiming a total of $7,421,987 in fraudulent refunds.  In the returns, Galvez falsely asserted that he was owed millions of dollars in income from various entities, and that those entities had withheld the money as federal income tax paid to the IRS.  In fact, the entities owed no such income to Galvez, and withheld no such taxes on his behalf.  Specifically, Galvez filed a 2007 amended tax return requesting a tax refund of $2,852,566 claiming that he received income from two county courts among other entities.  Galvez attached Forms 1099-OID to the tax return, purportedly from the two courts, reflecting that the courts paid the amounts to the IRS on Galvez’s behalf as taxes.  The filed 1099-OID forms contained false information. Neither court paid or owed income to Galvez or withheld taxes on his behalf.  The amounts referenced in the court documents were in fact foreclosure judgments filed against Galvez for his failure to pay mortgages.

Court documents indicate that Galvez had previously filed legitimate tax returns that did not include fabricated income and withholding amounts and he knew that he had not received the income from the various entities reported on the fraudulent returns, the taxes claimed had not been withheld, and the 1099-OID forms were false. 

Mr. Ferrer commended the investigative efforts of IRS-CI.  This case was prosecuted by Assistant U.S. Attorney John P. Gonsoulin.

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

Simon E. Zablah, 29, of Boca Raton, Florida, was sentenced by U.S. District Senior Judge Daniel Hurley in West Palm Beach to one year and a day in prison, to be followed by three years of supervised release, after pleading guilty to two counts of impersonating a federal official and one count of access device fraud.  Zablah was also order to pay $3,500 in restitution.          

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigations (FBI), Miami Field Office, and John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service (DCIS) Southeast Field Office, made the announcement.        

According to documents and statements introduced in court, Zablah was stopped for speeding on April 8, 2015 by an officer of the Hollywood Police Department.  During this traffic stop, Zablah presented a counterfeit identification card which falsely identified him as a Staff Sergeant assigned to United States Special Operations in order to get out of a $205 traffic ticket.            

In April 2013, Zablah also falsely claimed to be a Sergeant First Class in the United Starts Army Reserve in order to obtain a job with a uniform supply company in Broward County.  In August 2013, while working in the call center for this uniform supply company, Zablah obtained the credit card number of a customer which he then used to make six unauthorized charges totaling approximately $3,669.  Zablah used the customer’s credit card to purchase items on the internet, including a personal computer, which were delivered to an address associated with the defendant in Fort Lauderdale.              

Zablah admitted that in actuality he only served as a soldier in the United States Army for approximately two weeks in January 2005.  Other that this brief service, Zablah has never been employed or otherwise associated with any branch of the military or law enforcement.           

“The federal sentencing of Simon E. Zablah is a warning for others that the false impersonation of a member of the U.S. military or law enforcement will have legal consequences,” stated U.S. Attorney Wifredo A. Ferrer. 

“Falsely claiming to be a federal official to obtain something of value can and does have serious consequences,” said Michael A. D’Alonzo, Assistant Special Agent in Charge, FBI Miami.  “Law enforcement took note of Simon E. Zablah’s scam and now he has a federal conviction and a prison sentence as a result of his actions.  Let this serve as a lesson to other would-be impersonators.”        

“Today's sentencing sends a clear warning to anyone who would impersonate a U.S. military member and make false claims about military service for personal and monetary gain,” said Special Agent in Charge John F. Khin, Defense Criminal Investigative Service (DCIS) Southeast Field Office. “DCIS will continue to work tirelessly to investigate fraud, waste, and abuse involving the Department of Defense."

Mr. Ferrer commended the investigative efforts of the FBI, DCIS, Hollywood Florida Police Department, and U.S. Customs and Border Protection.  The case was prosecuted by Assistant U.S. Attorney Carolyn Bell.

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 State Department’s Diplomatic Security Service Miami Field Office, working with multiple federal, state, and local enforcement authorities, has apprehended nine individuals suspected of passport fraud.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida and Robert Grech, Special Agent in Charge of the State Department’s Diplomatic Security Service (DSS), Miami Field Office, made the announcement.

Operation Heat Wave, a Florida statewide law enforcement operation that resulted in the suspects’ apprehension was conducted from February 18, 2016 through February 26, 2016 and spanned from Key Largo to Jacksonville.

“The U.S. Attorney’s Office and our federal, state and local law enforcement partners will continue to investigate and identify for prosecution individuals who compromise our nation’s security through passport fraud,” stated U.S. Attorney Wifredo A. Ferrer. 

“The apprehension of fugitives and suspects delivers a clear message that federal, state, and local law enforcement authorities will find and bring to justice any individuals who attempt to defraud the U.S. government,” said Robert Grech, Special Agent in Charge of the DSS Miami Field Office.  “If you engage in passport or visa fraud or engage in other forms of identity theft, sooner or later we will track you down.”

Operation Heat Wave generated the filing of federal criminal charges, by complaint, information or indictment, against a total of nine individuals for passport and/or visa fraud offenses.  Seven individuals were charged in the Southern District of Florida for making false statements in passport applications.  Two additional individuals were charged in the Middle District of Florida for making false statements in applications for a passport.

If convicted, individuals charged with falsifying a passport application will face a maximum penalty of 10 years’ imprisonment, and up to a $250,000 fine.

The DSS Miami Field Office is responsible for eight southern states.  DSS personnel from across the region and approximately 100 federal, state, and local law enforcement officers were among those involved in support of Operation Heat Wave.

DSS partnered with the U.S. Attorney’s Offices for the Southern and Middle Districts of Florida, along with the Department of Homeland Security (DHS) Enforcement and Removal Operations; DHS Homeland Security Investigations; U.S. Marshals Service; Florida Highway Patrol; Miami-Dade Police Department; and several other local law enforcement agencies.

Mr. Ferrer commended DSS for leading this operation, and thanked the U.S. Attorney’s Office for the Middle District of Florida and all participating agencies for their investigative efforts and assistance. The cases in the Southern District of Florida are being prosecuted by Assistant United States Attorneys Jennifer Keene, Theodore Cooperstein, Carmen Lineberger, Jonathan Stratton and Brian Shack.        

An information, complaint and indictment are merely legal filings containing accusations and every 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.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, A.D. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Office, and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, (PBSO) announce the filing of federal charges against 9 defendants for their alleged participation in conspiracies to distribute controlled substances, specifically marijuana and cocaine, in and around Palm Beach County.  The defendants have been charged in a single indictment in the matter of United States v. Herbert Grant, et. al., 16-CR-80030-Marra. 

The federal indictment charges Herbert Grant, a/k/a “Earl Fleming,” a/k/a “Devon Breen,” a/k/a/ “Robert Breen,” a/k/a “Earl Flinn,” a/k/a “Dwayne,” 36, of Boynton Beach, Ricardo Simpson, a/k/a “Radio,” a/k/a “Ricky,” a/k/a “Tippa,” 39, of Boynton Beach, Gavin McLaren, 32, of West Palm Beach, Marvin Belton, a/k/a “Trinni,” a/k/a “Damian Henry,” 45, of Los Angeles, California, and Rohando Morris, a/k/a “Tampa Man,” 36, of Bradenton, for their alleged participation in a marijuana distribution conspiracy.  The indictment also charges Grant, McLaren, Ricardo Mills, a/k/a “Tuggy,” 35, of Lauderhill, Lorenzo Walker, 34, of Royal Palm Beach, Erick Morgan, a/k/a “E,” 37, Riviera Beach, and Sheldon Ralph Turner, 34, of West Palm Beach for their alleged participation in a cocaine distribution conspiracy.

The indictment alleges that Grant, Simpson, McLaren, Belton, and Morris conspired to distribute marijuana from as early as July 2014 and continuing to March 2015, in Palm Beach County, in the Southern District of Florida, and other locations, and that Grant, McLaren, Mills, Walker, Morgan, and Turner conspired to distribute cocaine from as early as January of 2015 and continuing to April 28, 2015, in Palm Beach County and other locations, both conspiracies were committed in violation of Title 21, United States Code, Sections 841(a)(1) and 846. 

In addition to the conspiracy charges, a number of defendants were also indicted for possession with intent to distribute marijuana, in various amounts, up to 100 kilograms or more, and cocaine, in various amounts, up to five hundred grams or more, in violation of Title 21, United States Code, Section 841(a)(1).

• Herbert Grant was charged with possession with intent to distribute less than fifty kilograms of marijuana on October 25, December 8, and December 8-10 of 2014, and 50 kilograms or more of marijuana on December 7, 2014.  Grant was also charged with possession with intent to distribute 500 grams or more of cocaine on February 25, 2015, and less than 500 grams of cocaine on March 3, 2015 and April 28, 2015.

• Rohando Morris was charged with possession with intent to distribute 50 kilograms or more of marijuana on December 7, 2014. 

•  

  Ricardo Simpson was charged with possession with intent to distribute 50 kilograms or more of marijuana on December 7, 2014, and less than 50 kilograms of marijuana on December 8, 2014.

• Gavin McLaren was charged with attempted possession with intent to distribute 50 kilograms or more of marijuana on December 7, 2015.  McLaren was also charged with possession with intent to distribute 500 grams or more of cocaine on February 25, 2015.

• Marvin Belton was charged with possession with intent to distribute marijuana from December 8, 2014 through December 10, 2014.

• Sheldon Ralph Turner was charged with possession with intent to distribute 500 grams or more of cocaine on February 25, 2015.

   

During the course of the investigation, law enforcement seized a significant amount of marijuana and cocaine.

This case was the 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.

The federal indictment is being prosecuted by Assistant U.S. Attorney Brandy Brentari Galler.  

If convicted in federal court, the defendants face the following possible statutory sentences: a mandatory minimum of five years and up to forty years in prison for the conspiracy to distribute more than 100 kilograms of marijuana and/or 500 grams or more of cocaine; twenty years in prison for the conspiracy to distribute and/or possession with intent to distribute 50 kilograms or more of marijuana and/or less than 500 grams of cocaine; and up to five years in prison for the conspiracy to distribute and/or possession with intent to distribute less than 50 kilograms of marijuana. 

Mr. Ferrer commended the collaborative efforts of the OCDETF law enforcement agencies that assisted with this multi-faceted investigation, including the DEA, Palm Beach County Sheriff’s Office Narcotics Task Force and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI). 

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

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

Dr. Isaac Kojo Anakwah Thompson, 57, of Delray Beach, pled guilty to one count of health care fraud.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Assistant Attorney General William J. Baer, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), made the announcement.

“The Medicare system relies on our nation’s doctors to diagnose and treat our Medicare beneficiaries,” stated U.S. Attorney Ferrer.  “When doctors intentionally misdiagnose their patients for personal gain, they betray the trust of the Medicare system and the patients themselves. This case demonstrates our commitment to the investigation and prosecution of Medicare fraud, in all its varieties and against all groups of offenders.”

“Instead of using the Medicare Advantage program for its intended purpose, Isaac Kojo Anakwah Thompson, a medical doctor, sought to enrich himself by defrauding Medicare of millions of dollars through the submission of false diagnoses for hundreds of patients,” said Michael A. D’Alonzo, Assistant Special Agent in Charge, FBI Miami.  “The FBI will not relent in its pursuit of Medicare fraudsters – including greedy doctors.”

“When physicians cheat Medicare by misrepresenting the medical conditions of their patients, our agents will work with our law enforcement partners to hold these individuals accountable for their deceptive schemes,” said Special Agent in Charge Shimon R. Richmond, HHS Office of Inspector General. 

According to the court record, including facts admitted during the plea hearing, Dr. Thompson engaged in a scheme to defraud the Medicare Advantage program, a voluntary system which allows Medicare beneficiaries to enroll in health insurance plans sponsored by private insurance companies.  For each beneficiary who chooses to enroll in a Medicare Advantage plan, Medicare pays the sponsoring insurance company a fixed, or capitated, monthly fee.  Medicare does not adjust the fee based on the cost of providing medical care to the beneficiary.  Instead, Medicare adjusts the fee based on the beneficiary's medical conditions.  As a result, Medicare generally pays a larger capitated fee for a beneficiary with more serious medical conditions than it does for a healthier beneficiary.  Medicare determines a beneficiary's medical conditions in part using diagnoses submitted by the beneficiary's Medicare Advantage plan physician. 

Dr. Thompson’s fraudulent conduct involved certain Medicare Advantage plans sponsored by Humana, Inc. These Humana plans operated as health maintenance organizations (HMOs) and each enrolled beneficiary selected a primary care physician (PCP) enrolled in Humana’s network.  Before seeing a specialist, the beneficiary generally needed a referral from his or her PCP.  Dr. Thompson was an internist who operated a medical clinic in Delray Beach and was a PCP in Humana’s HMO network.  As such, a beneficiary enrolled in a Humana HMO Medicare Advantage plan could choose Dr. Thompson as the beneficiary’s PCP.   Humana paid Dr. Thompson approximately 80% of the capitated fee for each beneficiary who had selected the defendant as his or her PCP.

Between 2006 and 2010, Dr. Thompson defrauded Medicare by diagnosing 387 Medicare Advantage beneficiaries with ankylosing spondylitis, a rare chronic inflammatory disease of the spine.  Dr. Thompson reported these diagnoses to Humana, which in turn reported them to Medicare. As a result, Medicare paid approximately $2.1 million in excess capitation fees, approximately 80% of which went to the defendant. All or almost all of these ankylosing spondylitis diagnoses were false because in fact, the patients did not have the condition.  Because the diagnoses were false, the defendant did not have any corresponding increase in his cost to treat the patients.

Sentencing is scheduled for May 18, 2016.  At sentencing, the Dr. Thompson faces a maximum possible statutory sentence of 10 years in prison.

Mr. Ferrer and Mr. Baer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Marc Osborne and Trial Attorney Paul Gallagher, United States Department of Justice, Antitrust Division.

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

A Boca Raton attorney pled guilty to evading the payment of approximately $1,501,724 in income tax due to the Internal Revenue Service (IRS) for calendar years 1997, 1999, 2001, 2002, and 2004 through 2007, by concealing his income, assets, and liabilities.

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

William J. Reilly, 62, pled guilty to one count of tax evasion, in violation of Title 26, United States Code, Section 7201.

According to court documents, Reilly was an attorney and member of the New York Bar who owned William J. Reilly, Esq. P.C., a law firm through which the defendant practiced securities law.  The law firm operated in New York City until 1998, when Reilly moved his law practice to Boca Raton, Florida.

From 1992 through 1997, Reilly worked as the outside securities counsel for a corporation and was paid, in part, with options to purchase stock in the corporation.  In 1997, Reilly exercised some of his stock options and then sold some of the shares for more than $1.6 million.

From October 1997 through January 1998, shortly after exercising his stock options, Reilly acquired significant assets, including two residences in Boca Raton, Florida, a residence in Chittenden, Vermont, and oceanfront property in Portsmouth, Rhode Island.  Only one of these assets, a Boca Raton residence, was titled in Reilly’s name.  On May 17, 1999, Reilly purchased a ten acre parcel of land located across the road from his Chittenden, Vermont home, and Reilly used a shell company to hold title to this land.  The Portsmouth land, where Reilly began to construct a home, was also transferred to the name of a shell corporation.  Reilly also purchased a 2001 Jaguar XJ8 and a 2002 Chevrolet Suburban in the name of a nominee.

From 2005 through 2010, Reilly used bank accounts for his law firm and the shell corporation to receive personal income, transfer funds into his personal accounts, and pay personal expenses directly, including his Visa credit card account, his children’s private school and college tuition, support his daughter’s equestrian business, make vehicle and mortgage payments, contribute to his son’s political campaign, and purchase more than $50,000 in tickets for sporting events and concerts.  Reilly also caused clients and others who owed money to the defendant to pay monies to shell corporations controlled by Reilly or to pay Reilly’s personal expenses directly.

The defendant’s sentencing date has not yet been set.  Reilly faces a maximum statutory sentence of five years in prison.

Mr. Ferrer commended the investigative efforts of IRS-CI.  This case is being prosecuted by Assistant U.S. Attorneys Ellen L. Cohen and Stephanie D. 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.

A Miami resident pled guilty for his participation in an identity theft tax fraud scheme where he used stolen personal identification information (PII) to access the IRS “Get Transcript” service and obtain tax records of his identity theft victims.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Timothy Camus, Deputy Inspector General for Investigations, Treasury Inspector General for Tax Administration (TIGTA), Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and William Hernandez, Chief, North Miami Beach Police Department (NMBPD), made the announcement.

Marvin Ricardo Herard, 26, of Miami, pled guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343, one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). As part of the plea agreement, Herard agreed to restitution in the amount of $172,521. At sentencing, Herard faces a maximum statutory sentence of twenty years in prison for the wire fraud charge, a maximum statutory sentence of ten years in prison for the access device charge, and a mandatory term of two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charge.

According to court documents, the IRS maintained a “Get Transcript” service that allowed an individual taxpayer to request and receive a transcript of their IRS tax records online, including line-by-line tax return information for prior years. To obtain access to the “Get Transcript” service, the user was required to create a user account and provide PII.

Log files from the “Get Transcript” service revealed that an email address controlled by defendant Herard attempted to access 38 different taxpayers’ accounts in “Get Transcript”, and had successfully accessed 22 accounts. Additionally, log files captured the IP addresses from which Herard’s email address was used to access the “Get Transcript” service. For the 2014 tax year, over 100 fraudulent tax returns, seeking over $500,000 in refunds, were filed from these IP addresses. The IRS paid out $172,521 in refunds on these fraudulent tax returns. Some of these fraudulent tax returns were for taxpayers whose information was accessed in the “Get Transcript” service using Herard’s email address.

Law enforcement obtained a federal search warrant for the contents of Herard’s email account. The email account contained over 1,150 unique pieces of PII, including names, dates of births, and Social Security numbers. In addition, there were hundreds of automated messages from the IRS “Get Transcript” service, indicating that Herard’s email account had been used to attempt to access numerous taxpayers’ accounts.

Herard is scheduled to be sentenced on May 10, 2016 at 9:30 a.m. before United States District Judge Darrin P. Gayles.

Mr. Ferrer commended the investigative efforts of TIGTA, IRS-CI, and NMBPD.  The case is being prosecuted by Assistant U.S. Attorney Daya Nathan.

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

A Miami-Dade woman is charged with stealing immigration application payments from her clients when she prepared at least 146 fraudulent petitions filed with United States Citizenship and Immigration Services.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, and Linda M. Swacina, District Director, U.S. Citizenship and Immigration Services (USCIS), made the announcement.

Josefa M. Siverio, 60, of Miami-Dade, is charged by indictment with five counts of mail fraud, in violation of Title 18, United States Code, Section 1341; and three counts of conversion of postal money orders, in violation of Title 18, United States Code, Section 500. 

As alleged in the indictment, Siverio is an immigration consulting and services provider who prepared immigration petitions and applications for aliens seeking immigration benefits from the United States Citizenship and Immigration Services.  Siverio is alleged to have prepared at least 146 fraudulent petitions and stolen checks and money orders entrusted to her to pay the fees associated with the petitions and applications for immigration benefits.  It is alleged that Siverio’s clients provided her with blank checks and money orders for the application fees and Siverio made the checks and money orders payable to herself and deposited the checks and money orders into her own personal bank accounts.

Mr. Ferrer commended the investigative efforts of ICE-HSI and USCIS.  This case is being prosecuted by Special Assistant U.S. Attorney Monica Beamer.

An indictment is merely an accusation and every defendant is presumed innocent until proven guilty.

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.

The Justice Department has reached a comprehensive settlement agreement with the city of Miami and the Miami Police Department (MPD) resolving the Justice Department’s investigation of officer-involved shootings by MPD officers, announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division and U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida.

The settlement, which was approved by Miami’s city commission today and will go into effect when the agreement is signed by all parties, resolves claims stemming from the Justice Department’s investigation into officer-involved shootings by MPD officers, which was conducted under the Violent Crime Control and Law Enforcement Act of 1994.  The investigation’s findings, issued in July 2013, identified a pattern or practice of excessive use of force through officer-involved shootings in violation of the Fourth Amendment of the Constitution. 

The city’s compliance with the settlement will be monitored by an independent reviewer, former Tampa, Florida, Police Chief Jane Castor.  Under the settlement agreement, the city will implement comprehensive reforms to ensure constitutional policing and support public trust.  The settlement agreement is designed to minimize officer-involved shootings and to more effectively and quickly investigate officer-involved shootings that do occur, through measures that include:

• enhanced supervision of first-line officers;
• enhanced training, including de-escalation training;
• improvements to internal investigations of officer-involved shootings;
• a more stringent mechanism under which a shooting officer’s return to work is authorized; and
• a mechanism to ensure community participation in the monitoring process.

“This settlement represents a renewed commitment by the city of Miami and Chief Rodolfo Llanes to provide constitutional policing for Miami residents and to protect public safety through sustainable reform,” said Principal Deputy Assistant Attorney General Gupta.  “The agreement will help to strengthen the relationship between the MPD and the communities they serve by improving accountability for officers who fire their weapons unlawfully, and provides for community participation in the enforcement of this agreement.” 

“Today's agreement is the result of a joint effort between the Department of Justice and the City of Miami to ensure that the Miami Police Department continues its efforts to make our community safe while protecting the sacred Constitutional rights of all of our citizens,” said U.S. Attorney Ferrer.  “Through oversight and communication, the agreement seeks to make permanent the positive changes that former Chief Orosa and Chief Llanes have made, and we applaud the City Commission’s vote.”

The settlement agreement builds upon important reforms implemented by the city since the Justice Department issued its findings, including: 

• transfer of responsibility for criminal investigations of officer involved shootings from the MPD Homicide Unit to the Florida Department of Law Enforcement;
• downsizing of the Tactical Operations Section, which included some of the more aggressive specialized units; and
• creation of High-Liability Review Board to review problematic incidents.

The investigation was conducted by attorneys and staff from the Civil Rights Division’s Special Litigation Section and the Civil Division of the U. S. Attorney’s Office of the Southern District of Florida.

Following a five-day trial before United States District Court Judge William P. Dimitrouleas, a jury convicted two brothers of all seven counts in the indictment for their participation in an identity theft scheme.  

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcements Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement. 

Bechir Delva, 24, and Dan Kenny Delva, 27, both of Miramar, were each convicted of one count of conspiracy to possess fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(b)(2), one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and five counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).  The defendants were remanded into custody following their conviction.

According to evidence presented at trial, the defendants conspired to possess and did possess debit cards and over 1,600 Social Security numbers issued to other persons.  To protect the stolen items in their possession, the defendants possessed several firearms, including an AR-15 rifle, a SIG 522 rifle and a .380 pistol.  At trial, eight victims testified that they neither knew the defendants nor authorized them to possess their Social Security numbers and other personal information. 

The defendants are scheduled to be sentenced by United States District Court Judge William P. Dimitrouleas on May 11, 2016.

Mr. Ferrer commended the investigative efforts of IRS-CI and ICE-HSI.  The case is being prosecuted by Assistant U.S. Attorney John R. Byrne.

A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

A former police officer with the Port St. Lucie Police Department pled guilty yesterday to multiple federal child exploitation charges before United States District Court Judge Robin L. Rosenberg in Fort Pierce, Florida.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, and John A. Bolduc, Chief, Port St. Lucie Police Department, made the announcement.

Michael Edwin Harding, 28, of Port St. Lucie, pleaded guilty to three counts of distributing material involving sexual exploitation of minors, in violation of Title 18, United States Code, Section 2252(a)(2), possession of material involving sexual exploitation of minors, in violation of Title 18, United States Code, Section 2252(a)(4)(B), attempt to coerce and entice a minor to engage in sexual activity, in violation of Title 18, United States Code, Section 2422(b), and producing child pornography, in violation of Title 18, United States Code, Section 2251(a)(e).  Harding is facing a 5 year mandatory minimum term of imprisonment and a maximum of 20 years’ imprisonment, for each count of distribution of child pornography; a maximum of 20 years’ imprisonment for possessing child pornography; a mandatory minimum of 10 years’ imprisonment and a potential life sentence for the attempted enticement of a minor child to engage in sexual activity; and  a 15 year mandatory minimum sentence of imprisonment and a maximum term of 30 years’ imprisonment for producing child pornography. In addition, Harding faces a lifetime term of supervised release and will be required to register as a sex offender.

According to filed documents and statements made in court, Harding distributed videos and still images involving the sexual exploitation of minors on three separate dates.  Between July 23, 2015, and August 4, 2015, Michael Harding posted multiple images and videos to a chat room on a popular social media application.  The still images and videos depicted minor children engaging in sexually explicit acts.  The images posted to the chat room were discovered during a forensic examination of a cell phone owned by Harding. 

During the execution of a search warrant at Harding’s house, agents with HSI located electronic devices and thumb drives containing hundreds of videos and still images depicting the sexual exploitation of minors.  A large number of the images and videos depicted prepubescent minors engaging in sexual acts with adults. 

Additionally, Harding attempted to coerce and entice a minor to engage in sexual activity over the internet.  Chat messages recovered from Harding’s phone memorialized a conversation between the defendant and another individual, wherein they claimed to have custody of minor children whom they offered to exchange for their own sexual gratification.

Harding also produced child pornography by using his cell phone to create a video depicting his sexual contact with a child under the age of 12.  A thumbnail image from the video was located on Harding’s cell phone during a computer forensic examination. 

Harding is scheduled to be sentenced on May 16, 2016, by U.S. District Court Judge Robin L. Rosenberg in Fort Pierce, Florida. 

This case is part of Operation Predator, an international law enforcement initiative, led by ICE-HSI, to combat the sexual exploitation of children. Through this collaborative effort, law enforcement strives to protect children from sexual predators, including individuals who travel overseas in order to engage in sexual conduct with minors, individuals who possess, trade and produce child pornography, criminal alien sex offenders, and child sex traffickers.  Anyone with information about suspected child exploitation is encouraged to call 1‑866‑872-4973.  For additional information regarding the initiative and resources, visit www.ice.gov.

Mr. Ferrer commended ICE-HSI for their investigative efforts and the Port St. Lucie Police Department for their assistance with this investigation.  The case is being prosecuted by Assistant United States Attorneys Daniel E. Funk and Russell R. Killinger.  

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.

The former Cay Clubs Chief Executive Officer was sentenced to 40 years in prison, by United States District Judge Jose E. Martinez in Key West, for his participation in a $300 million dollar vacation rental fraud scheme.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Timothy Mowery, Special Agent in Charge, Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG), made the announcement.  

Fred Davis Clark, Jr., a/k/a Dave Clark, 57, formerly of Monroe County, was convicted on December 11, 2015 after a five-week trial, of three counts of bank fraud, and three counts of making a false statement to a financial institution, all in connection with a $300 million dollar fraud scheme involving sales of vacation rental units.  The scheme involved sales at Cay Clubs Resorts and Marinas (Cay Clubs), to approximately 1,400 investors in the Florida Keys and elsewhere.  Clark also was convicted of obstruction of the U.S. Securities and Exchange Commission (SEC), in connection with the SEC’s efforts to investigate his conduct related to Cay Clubs.  Clark was sentenced to 480 months’ imprisonment and the Court entered forfeiture money judgments against Clark, including in the amount of $303,800,000 for the bank fraud and $3,300,000 for the SEC obstruction.  In addition, the Court ordered forfeiture of specific assets, located overseas, totaling approximately $2.6 million dollars.

U.S. Attorney Wifredo A. Ferrer stated, “Dave Clark was the leader and orchestrator of an elaborate fraud scheme, that deceived nearly 1,400 Cay Clubs investors and lenders, in order to reap millions of dollars for his own personal benefit.  Today, Dave Clark was held accountable in a court of law, for his extensive deceit and the long-standing harm he caused to others.”

Kelly R. Jackson, Special Agent in Charge, IRS Criminal Investigation (IRS-CI), stated, “Promoters of Ponzi schemes prey upon trusting investors and then steal their hard earned money. Mr. Clark made a conscious decision to deceive others, and he benefitted personally at the expense of the citizens of the Keys and elsewhere. We are pleased with today’s sentence, as justice is served for those victims of Mr. Clark’s elaborate scheme.”

“In lieu of providing honest services to thousands of investors, Dave Clark decided to deceive and swindle them out of their hard earned money,” stated Timothy Mowery, Special Agent in Charge, FHFA-OIG. “Today he is being held accountable for his actions and being afforded the opportunity to reflect on his own character.”

According to evidence submitted in court, Clark was the Chief Executive Officer of Cay Clubs, which operated from 2004 through 2008 from offices in the Florida Keys and Clearwater.  Cay Clubs marketed vacation rental units for 17 locations in Florida, Las Vegas and the Caribbean, to investors throughout the United States.  Cay Clubs raised more than $300 million from investors by promising to develop dilapidated properties into luxury resorts, and promising investors an upfront “leaseback” payment of 15 to 20% of the sales price of the unit at the time of closing.  Evidence at trial showed that, in reality, Cay Clubs never developed the properites it had promised to investors and it came to operate as a Ponzi scheme, using proceeds from sales to new investors to pay overdue obligations to earlier investors. 

Evidence showed that by at least September 2006, Cay Clubs experienced serious financial difficulties.  In order to meet Cay Clubs’ financial obligations and obtain funds for himself, evidence at trial showed that Clark engaged in a serious of fraudlent mortgage transactions totalling more than $20 million worth of bank loans.  According to documents and testimony introduced at trial, during these sham transactions, Clark sold units Cay Clubs had acquired, to himself, while increasing the sales price.  On paper, Clark sold the units to family members and certain insiders, while causing various lending institutions to fund the transactions.  Clark directed his administrative assistant and his bookkeeper to forge signatures on loan documents and falsely notarize mortgage paperwork to make it appear that family members and other insiders listed on paperwork, were in fact executing the documents.  In reality, Clark was providing the deposits and down payments, directing his subordinates to execute the loan documents, and then using the proceeds of the transactions to fund Cay Club’s operations and for his own personal benefit.  The financial institutions that funded the fraudulently obtained loans were insured by the FDIC.

Evidence at trial showed that while Cay Clubs continued to experience significant financial difficulties, Clark lived a lavish lifestyle, extracting more than $22 million from the operations of Cay Clubs between 2005 and 2007.  Clark also obtained a personal portfolio of properties he valued at $23 million but that were held in the names of other persons.  Clark also used proceeds from the investor sales to purchase a gold mine, a coal reclamation project and a rum distillery for his personal benefit.

After the collapse of Cay Clubs, the SEC began an investigation into alleged securities fraud at Cay Clubs.  According to evidence presented in court, Clark engaged in conduct aimed at thwarting the SEC’s investigation, including by concealing the location of assets under his control and providing false sworn testimony before the SEC in May 2011.  In March 2013, after the SEC filed a civil fraud action against him, Clark transferred more than $2.5 million to accounts he controlled in Honduras.  After these transfers, U.S. law enforcement and authorities in Honduras were able to abtain a court order freezing these funds.

Clark was expelled from Panama in June 2014, and returned to the United States by Panamanian authorities at the request of U.S. law enforcement in connection with the charges set forth in the indictment. 

In related cases, former Cay Clubs executives Barry J. Graham, 59, and Ricky Lynn Stokes, 54, both of Ft. Myers, Florida pleaded guilty to conspiracy to commit bank fraud, in connection with the scheme to defraud Cay Clubs investors.  Graham, who was Director of Sales, was sentenced on March 30, 2015, and Stokes, who was the Director of Investor Relations, was sentenced on March 24, 2015.  Each was sentenced to 60 months’ imprisonment, and was ordered to pay restitution of $163,530,377.21 to numerous individual and financial institution victims. 

Mr. Ferrer commended the investigative efforts of the IRS-CI and FHFA-OIG, and the extensive assistance of the SEC’s Miami Regional Office.  The matter is being prosecuted by Assistant U.S. Attorneys Jerrob Duffy, Thomas A. Watts-FitzGerald and Alison Lehr, and Special Assistant U.S. Attorney Michael Padula.  Mr. Ferrer also commended the efforts of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Key West Regional Office, for its assistance with this matter.

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.

On February 11, 2016, following a four-day trial, a federal jury in West Palm Beach, Florida, convicted Kevin Raphael Bully of narcotics trafficking and unlawful possession of a firearm.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and A.D. Wright, Special Agent in Charge, Drug Enforcement Agency (DEA), Miami Field Office, made the announcement. 

This case stemmed from an investigation into the importation of Alpha-pyrrolidinopentiophenone (“α-PVP”), aka “Flakka,” from China into the United States.  In March of 2015, as a part of an ongoing investigation regarding the illegal drug trafficking of synthetic cathinones, specifically Flakka, DEA agents received information about suspected narcotics packages being delivered to Palm Beach County.  DEA agents in London, England received information from the British authorities regarding multiple packages that were intercepted coming from a chemical company in Hong Kong, China.  The Chinese based chemical company had been utilizing a shipping company to transport chemicals to buyers in the United States.  The British authorities found approximately seven packages that contained a white crystallized substance which tested positive for the presence of α-PVP.  DEA agents in London provided West Palm Beach agents with the packages’ address information and forwarded the deliveries.  The local agents, including a law enforcement officer dressed as a DHL employee, delivered a package to the listed address.  Kevin Raphael Bully, 26, of Palm Beach County, answered the door of the identified address and took possession of the package upon delivery. 

During the course of the investigation, Bully’s cell phone was found to contain text messages discussing the importation and receipt of packages containing Flakka.  In July of 2015, Bully was found at a hotel in Boca Raton, Florida, in possession of over 50 grams of heroin, 1,600 tablets of Zanax, a digital scale and packaging used for the distribution of narcotics.       

At trial, Bully was found guilty of seven of the eight counts charged in a superseding indictment, to wit: conspiracy to possess with intent to distribute α-PVP, in violation of Title 21, United States Code, Section 846;  attempted possession with intent to distribute α-PVP, in violation of Title 21, United States Code, Section 841(a)(1);  conspiracy to import α-PVP, in violation of Title 21, United States Code, Section 963;  attempting to import α-PVP, in violation of Title 21, United States Code, Section 963;  possession with intent to distribute heroin and Zanax, in violation of Title 21, United States Code, Section 841(a)(1); and possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922(g)(1).  Bully was found not guilty of possessing a firearm in furtherance of a violent or drug-trafficking offense, in violation of Title 18, United States Code, Section 924(c)(1)(A). 

Bully faces a maximum sentence of 20 years in prison on the drug importation and trafficking counts.  He also faces a maximum sentence of 10 years in prison for the firearm offense.

“The manufacture, importation and sale of synthetic drugs such as ‘Flakka’ presents a danger to our citizens, since these illicit narcotics are being produced without regard to safety protocols and can have grave negative health effects upon human consumption,” said United States Attorney Ferrer.  “Floridians can continue to be proud of the hard work and cooperation by federal, state and local law enforcement to identify, investigate, and prosecute the offenders who bring synthetic drugs into our communities.”

DEA Special Agent in Charge A.D. Wright stated, “The presence of Flakka in our communities is extremely dangerous.  Because of the violent and uncontrollable effects it has when ingested, it threatens everyone’s safety and highly jeopardizes the community’s well-being.  DEA, along with our law enforcement partners, will continue its commitment to the fight against synthetic drugs, particularly Flakka, by identifying and investigating its trafficking and distribution throughout the state of Florida.”

Mr. Ferrer commended the investigative efforts of the DEA and support of the United States Marshals Service.  The case was prosecuted by Assistant U.S. Attorney Lothrop Morris.

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

A Palm Beach County resident was sentenced to prison for her participation in a stolen identity tax fraud scheme involving at least 790 stolen identities.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Nadine Gurley, Special Agent in Charge, U.S. Department of Housing and Urban Development, Office of the Inspector General (HUD-OIG), and Karen Citizen-Wilcox, Special Agent in Charge, U.S. Department of Agriculture, Office of Inspector General (USDA OIG), made the announcement.

Kelli Witherspoon McIntosh, 39, of Palm Beach County, was sentenced by U.S. Senior District Judge Daniel T. K. Hurley to 36 months in prison, followed by three years of supervised release (Case No. 14-CR-80158).  McIntosh was also ordered to pay restitution in the amount of $775,242.91.  In October 2015, McIntosh pled guilty to one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349; and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).  McIntosh’s sentence includes a term of 12 months in prison for her participation in the conspiracy and a mandatory consecutive term of 24 months in prison, for the aggravated identity theft conviction.

Co-conspirators Latonia Verdell (Case No. 14-CR-80158) and Starling Willis (Case No. 15-CR-80119), both of Palm Beach County, were previously convicted of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1), and conspiracy to commit wire fraud, in violation of Title 18, United States Code, Sections 1343 and 1349.  Verdell was also convicted of being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1); possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3); theft of government property, in violation of Title 18, United States Code, Section 641; and making a false statement to a federal government agency, in violation of Title 18, United States Code, Section 1001(a)(2) and sentenced in January 2016. 

Verdell was sentenced to 94 months in prison, followed by three years of supervised release, and was ordered to pay restitution in the amount of $947,296.81.  Verdell’s sentence included a concurrent term of 70 months in prison for each count of conviction for theft of government money, felon in possession, and unauthorized access devices; and a concurrent sentence of 5 years in prison for the false statement conviction.  In addition, Verdell was sentenced to a mandatory term of 24 months in prison, to run consecutive to all other sentences, for the aggravated identity theft conviction.

Willis was sentenced to 33 months in prison, followed by three years of supervised release, and ordered jointly and severally liable for restitution, with Verdell, in the amount of $32,4551.  Willis was sentenced to 9 months in prison for the conspiracy, to be followed by a mandatory consecutive term of 24 months in prison for the aggravated identity theft conviction.

According to court documents and the defendants’ testimony during the sentencing hearings, Verdell, Willis and co-defendant McIntosh, participated in a widespread stolen identity refund fraud scheme involving at least 790 stolen identities and personal identification information (PII).  The PII was used to file fraudulent on-line income tax returns, with those refunds being directed to various bank accounts created and maintained by Verdell, McIntosh and Willis, as well as to reloadable debit cards.  Identity theft victims whose personal information was used for this scheme spanned from Indian River, Highlands, St. Lucie, Martin and Palm Beach Counties, as well as persons outside the State of Florida.  This scheme resulted in the submission to the IRS of more than 590 fraudulent returns in the names of other persons, seeking approximately $1.5 million in fraudulent income tax refunds.

Court documents also indicate that on September 1, 2010, while Verdell was receiving unauthorized income from the filing of fraudulent income tax returns with the IRS, she received a housing assistance payment funded by the U.S. Department of Housing and Urban Development (HUD), while knowing she was not entitled to receive such a payment.  On September 24, 2013, Verdell submitted an application for enrollment in the Supplemental Nutrition Assistance Program (SNAP), also referred to as ‘food stamps.’  In her application, Verdell knowingly stated that her only monthly income was $715, without any other source of income, when she was in fact receiving significant income from fraudulent tax refund payments.

Court documents also indicate that evidence of the stolen PII, a list of bank accounts belonging to Willis, information regarding accounts which received fraudulent refunds, and a stolen .38 caliber pistol, were found in Verdell’s home during the execution of a federal search warrant.

Mr. Ferrer commended the investigative efforts of the IRS-CI, HUD-OIG, and USDA OIG.  Mr. Ferrer also thanked the Palm Beach County Sheriff’s Office for their assistance with this investigation.  The case is being prosecuted by Assistant U.S. Attorney Theodore Cooperstein.  

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 staff mentor at the Florida Keys Children’s Shelter, a residential facility in Tavernier, Florida, was sentenced today by United States District Judge Marcia G. Cooke to 380 months’ imprisonment, following his conviction for child sex trafficking.

Wifredo A. Ferrer, 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.

Following a three-week jury trial beginning on October 19, 2015, Ricky Jermaine Atkins, 29, of Key Largo, was convicted of conspiracy to engage in the sex trafficking of minors, in violation of Title 18, United States Code, Section 1594(c), as well as two counts of sex trafficking of a minor, in violation of Title 18, United States Code, Section 1591(a)(1).  The Court sentenced Atkins to concurrent terms of 380 months’ imprisonment as to each count, to be followed by a lifetime term of supervised release.

Atkins’ co-defendant, Sandra Simon, 24, of Homestead, previously pled guilty to one count of sex trafficking of a minor, in violation of Title 18, United States Code, Section 1591(a)(1).  On November 20, 2015, Simon was sentenced to 136 months’ imprisonment.

According to evidence presented at trial, Atkins worked overnight shifts as a staff mentor at the Florida Keys Children’s Shelter, a residential facility in Tavernier for minor children.  Atkins obtained two of the children living at the shelter, girls aged fifteen and sixteen, to be brought from Tavernier to a hotel in Cutler Bay, where Simon supervised their prostitution.  On the night of August 15, 2014, Atkins personally transported the minor victims from Tavernier to Cutler Bay, where he left them with Simon.  Earlier on that day, Simon had pled guilty in state court to procuring a minor for prostitution, and had received a sentence of probation.

Evidence presented at trial further established that Atkins subsequently collected money earned from the minor victims’ prostitution, and delivered to Simon a cellular phone and other items intended to facilitate the prostitution of the minor victims.  Further evidence admitted at trial established that Atkins simultaneously prostituted an 18-year-old woman whom Atkins had met while the woman was a minor child living at the shelter.

Mr. Ferrer thanked the FBI’s Child Exploitation Task Force, the State Attorney’s Office Human Trafficking Task Force, the Monroe County Sherriff’s Office and the North Port Police Department for their work on this case.  The case is being prosecuted by Assistant U.S. Attorneys Seth M. Schlessinger and Elina A. Rubin-Smith.

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.

Ezra L. Ealy, 21, a convicted felon, was sentenced to 70 months in prison for possessing a sawed off shotgun and ammunition while on the streets of Fort Pierce by U.S. District Court Judge Kenneth A. Marra, sitting in Fort Pierce.

Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Carlos A. Canino, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Office, and Diane Hobley-Burney, Chief, Fort Pierce Police Department (FTPPD), made the announcement.  

Ealy, a Fort Pierce resident, was charged by indictment with being a felon in possession of a firearm and ammunition on July 13, 2015, in violation of Title 18, United States Code, Section 922(g)(1).  Ealy faced a maximum statutory penalty of ten years in prison. 

According to the allegations contained in court filings and detention hearing testimony, on July 13, 2015, an ATF Special Agent and a FTPPD Detective responded to a radio call of shots being fired by a large bearded male with a shotgun in the area of 31st & Avenue F in Fort Pierce, Florida. Upon arrival, the law enforcement officers observed Ealy, who fit the description, running away from the site of the call. During their pursuit, the agents observed Ealy stop, and open and close the lid of a recycling bin. Thereafter, agents recovered a sawed off Winchester 12 gauge shotgun in the trash bin. After his apprehension, agents recovered two (2) unspent Winchester shotgun shells from Ealy’s pocket, and one spent shotgun shell from the chamber of the shotgun.  Fingerprints also linked Ealy to the shotgun.

This case was brought as part of Project Safe Neighborhoods (PSN).  PSN is a Department of Justice nationwide initiative that combines traditional law enforcement activities with community-based support and intervention programs. The two primary goals of the PSN initiative are to reduce and prevent violent crimes and to help past offenders adjust and re-enter the community.  This program emphasizes and facilitates cooperative federal, state and local prosecution of firearm crimes, violent criminals, repeat violent offenders and gang related criminal activity. 

Mr. Ferrer commended the investigative efforts of ATF and the Fort Pierce Police Department.  This case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.

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

On Friday, February 12, 2016, Patrick Santeramo, 68, of Dania Beach, Florida appeared in court in Fort Lauderdale, before U.S. District Court Judge William J. Zloch, and pleaded guilty to one count of mail fraud.

Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and Rafiq Ahmad, Special Agent in Charge, Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations (DOL-OIG), made the announcement.

According to court documents, Santeramo was the president of the Broward Teachers Union (BTU) from 2001 to 2011, and served as vice president of the BTU prior to that.  The BTU and the School Board of Broward County negotiated a collective bargaining agreement in which the School Board of Broward County agreed to provide an annual payment of $80,000 to the BTU for the BTU’s Accountability Program, which was administered by the BTU.

The collective bargaining agreement required that all of the money provided by the School Board of Broward County for the Accountability Program be used to further the program’s goals “in such areas as training, release time for teachers working on accountability projects, guest speakers, etc.”  The collective bargaining agreement also required the BTU to keep a written record of expenditures charged to the Accountability Program, and to make this information available to the School Board of Broward County.

Each year, defendant Santeramo would send a letter to the School Board of Broward County to explain how the money dedicated to the Accountability Program had been used during the previous school year.  Subsequently, he would also send a letter to the School Board of Broward County requesting the next payment of $80,000 for the Accountability Program for the upcoming school year. As a result of the letters from Santeramo explaining the use of the funds that the School Board of Broward County provided for the Accountability Program, the School Board of Broward County would mail a check for $80,000 to the BTU.

After the BTU received the $80,000 payment from the School Board of Broward County, Santeramo authorized payments from the Accountability Program account for himself and three other employees of the BTU to which they were not entitled.  In letters from Santeramo to the School Board of Broward County, Santeramo omitted that payments from the Accountability Program account had been made to him and the other employees.  Consequently, Santeramo was responsible for the misappropriating more than $93,000 during the fraudulent scheme.

Sentencing is scheduled for April 22, 2016 at 11:00 a.m. before Judge Zloch.

Mr. Ferrer commended the investigative efforts of the Department of Labor, Office of Inspector General, Miami Field Office.  The case is being prosecuted by Assistant U.S. Attorneys Miesha Darrough and Harry C. Wallace, Jr.

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 payroll administrator was sentenced to 42 months in prison, followed by three years of supervised release for her participation in a tax evasion scheme where she diverted employees’ wage payments into bank accounts under her control and failed to report the money as gross income to the Internal Revenue Service (IRS).

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Rodolfo Llanes, Chief, Miami Police Department (MPD), made the announcement.

Marilyn McDaniel, 67, of Garner, North Carolina, previously pled guilty to one count of attempting to evade or defeat tax, in violation of Title 26, United States Code, Section 7201.

According to court documents, McDaniel was the payroll administrator for a company and her sole responsibility was to report the employee hours and pay to the company’s payroll service provider. In early 2010, a former employee contacted the company’s accountant regarding a letter from the IRS indicating that the individual worked at the company in 2008 and that the individual failed to pay taxes on that income. The company’s payroll records revealed that in 2008 there were wage payments being made to the employee, but the wage payments were not deposited into the employee’s account.  Instead, the wages were deposited into McDaniel’s personal bank account.

In addition, the company’s payroll records also showed that McDaniel had submitted false wage reports on behalf of sixteen other former employees and that approximately $1.7 million in wage payments in the names of those former employees were diverted from the company’s bank accounts into accounts controlled by McDaniel and her daughter. The company’s employees did not give McDaniel permission to have checks issued in their names or have those checks deposited into her personal bank account.

McDaniel did not report or pay taxes on the stolen money that was diverted from the company into her and her daughter’s account, as she failed to file an individual tax return with the IRS for calendar year 2009. In total, McDaniel’s total tax due and owing is $547,792.14.

Mr. Ferrer commended the investigative efforts of IRS-CI, Miami Police Department and Miami-Dade State Attorney’s Office.  This case is being prosecuted by Assistant U.S. Attorney Maurice A. Johnson.

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

Five defendants were sentenced for their participation in an extensive stolen identity tax refund fraud scheme.

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

Ronald Jerome Scriven was sentenced to 108 months in prison, to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $7,521,485.  Danesa Latoya Webb was sentenced to 54 months in prison, to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $3,271,603.  The defendants each previously pled guilty to one count of conspiracy to defraud the government with respect to claims, in violation of Title 18, United States Code, Section 286, one count of misusing Social Security numbers, in violation of Title 42, United States Code, Section 408(a)(8), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).

On January 28, 2016, co-defendant Walter Waitus Pressley was sentenced to 31 months in prison, to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $1,361,326.  Michael Dwight Brown, a/k/a “Big Mike,” was sentenced to 24 months in prison, to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $340,976.  On February 2, 2016, Fritznel Jacques, a/k/a “Glacier,” was sentenced to 18 months in prison, to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $493,733.  Each of the defendants previously pled guilty to one count of conspiracy to defraud the government with respect to claims, in violation of Title 18, United States Code, Section 286. 

According to court documents, Scriven created nine business entities, seven of which were tax preparation businesses using his name, the names of co-conspirators, or the names of individuals whose identities were stolen.  Scriven, Webb and others obtained electronic filing identification numbers (EFINs) from the IRS for the seven tax preparation businesses for the purpose of electronically submitting false tax returns. Scriven, Webb and Pressley recruited taxpayers and obtained their personal identifying information (PII), such as their names and Social Security numbers, for the purpose of submitting false tax returns to the IRS.  Scriven and Webb also used the PII of living and deceased individuals for the same fraudulent purpose.  Tax preparers’ fees and other fees totaling $700,000 were deducted from the tax refunds and were deposited into bank accounts controlled by the co-conspirators.

Scriven and Webb printed refund checks in the names of taxpayers whose names and Social Security numbers were used to file the false tax returns. Some of the co-conspirators accompanied taxpayers, whose identities they had used to file false tax returns, to cash the refund checks and would then demand a substantial portion of the proceeds obtained from those cashed checks. 

Mr. Ferrer commended the investigative efforts of IRS-CI.  The case is being prosecuted by Assistant U.S. Attorney Lois Foster-Steers.   

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

A Miami physician pleaded guilty today for his role in a Medicare fraud scheme that caused more than $20 million in losses. 

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

Henry Lora, 51, of Miami, pleaded guilty before U.S. District Judge Federico A. Moreno of the Southern District of Florida to one count of conspiracy to commit health care fraud and one count of conspiracy to defraud the United States, receive health care kickbacks and make false statements relating to health care matters. 

According to the factual basis of the plea agreement, Lora was the medical director of Merfi Corporation, a Miami-area clinic that employed physicians, physician assistants and other medical professionals.  Lora admitted that in exchange for kickbacks and bribes, he and his co-conspirators wrote prescriptions for home health care and other services for Medicare beneficiaries that were not medically necessary or not provided.  Lora and his co-conspirators also falsified patient records to make it appear as if the beneficiaries qualified for these services, he admitted.

Lora admitted that his and his co-conspirators’ actions caused multiple Miami-Dade home health care agencies and other providers to bill Medicare for services that were not medically necessary or not provided, and Medicare made payments on these fraudulent claims. 

In March 2014, Isabel Medina, the owner of Merfi, was sentenced to nine years in prison for conspiracy to commit health care fraud. 

The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Southern District of Florida.  Fraud Section Trial Attorney A. Brendan Stewart is prosecuting the case.                           

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion.  In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov. 

A Miami physician pleaded guilty today for his role in a Medicare fraud scheme that caused more than $20 million in losses. 

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

Henry Lora, 51, of Miami, pleaded guilty before U.S. District Judge Federico A. Moreno of the Southern District of Florida to one count of conspiracy to commit health care fraud and one count of conspiracy to defraud the United States, receive health care kickbacks and make false statements relating to health care matters. 

According to the factual basis of the plea agreement, Lora was the medical director of Merfi Corporation, a Miami-area clinic that employed physicians, physician assistants and other medical professionals.  Lora admitted that in exchange for kickbacks and bribes, he and his co-conspirators wrote prescriptions for home health care and other services for Medicare beneficiaries that were not medically necessary or not provided.  Lora and his co-conspirators also falsified patient records to make it appear as if the beneficiaries qualified for these services, he admitted.

Lora admitted that his and his co-conspirators’ actions caused multiple Miami-Dade home health care agencies and other providers to bill Medicare for services that were not medically necessary or not provided, and Medicare made payments on these fraudulent claims. 

In March 2014, Isabel Medina, the owner of Merfi, was sentenced to nine years in prison for conspiracy to commit health care fraud. 

The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Southern District of Florida.  Fraud Section Trial Attorney A. Brendan Stewart is prosecuting the case.                       

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion.  In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.

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

A Bahamian man was sentenced to 60 months in prison by U.S. District Judge Kenneth A. Marra in West Palm Beach, following his second conviction for alien smuggling. 

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Department of Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement. 

Detric Demetris Butler, 32, of Bahamas, was sentenced on February 5, 2016, following his conviction for one count of transporting aliens into the United States, in violation of Title 8, United States Code, Section 1324(a), as well as one count of failure to heave to a vessel, in violation of Title 18, United States Code, Section 2237. 

According to court documents, Butler was at the wheel of a boat from the Bahamas during the night of September 8, 2015, four miles off the Florida coast in the early morning hours opposite St. Lucie County.  With Butler in the boat were 20 other passengers, all unauthorized aliens from Haiti and the Bahamas.  Two of the aliens aboard were unaccompanied minors.  Upon approach by a U.S. Coast Guard cutter, Butler took the helm and attempted to flee and evade the intercepting U.S. vessel.  After Butler ignored hailing and a warning shot fired across the bow, the Coast Guard stopped Butler’s vessel with a shotgun blast into the engine of his boat. 

Butler was previously convicted of alien smuggling, in 2013, and had been sentenced to three years (36 months) in prison. 

Mr. Ferrer commended the investigative efforts of ICE-HSI and the assistance of the U.S. Coast Guard.  The case was prosecuted by Assistant U.S. Attorney Theodore M. Cooperstein. 

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.

Raul Sosa and Maura Sosa were sentenced to terms of imprisonment of 78 months and 48 months, respectively, by United States District Court Chief Judge K. Michael Moore, following their convictions by a Miami jury for criminal tax offenses arising out of a five-year scheme to defraud the Internal Revenue Service.  Judge Moore also ordered the defendants to pay $1,488,213.85 in restitution and serve three years of supervised release following their release from prison.

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

The defendants were convicted on November 10, 2015, following a six-day trial before Judge Moore.  According to evidence presented at trial, starting in 2003, the defendants, who are married to one another, operated Accion 1 Auto Sales, Inc., an automobile salvage and recycling business in Hialeah.  After purchasing junked and non-functioning cars, the defendants would strip the cars, sell the usable parts and components to businesses in the secondary auto parts market, and then sell the remaining metal as scrap to a local metal recycler.  On some occasions, the defendants would resell whole cars, without stripping them.

The defendants’ fraud scheme revolved around their underreporting of Accion 1’s annual sales revenue on the businesses’ federal income tax returns.  Through this scheme, Raul and Maura Sosa depressed the net profits reported on the businesses’ returns, the income reported on their individual returns, and their federal income tax owed.

From 2004 through 2008, the defendants’ business had sales of over $28.6 million.  However, the defendants reported only approximately 14% of their sales, or $3.9 million, on the businesses’ federal income tax returns during that period.  Evidence introduced at trial included records and witness testimony indicating that the defendants’ spending in 2008, on automobiles, real estate, jewelry, and credit card payments exceeded the total income reported on their joint individual income tax return by at least $900,000. 

The court found that after the defendants learned they were under investigation, they caused the filing false amended tax returns in an attempt to minimize the seriousness of their tax offenses.  Based upon this conduct, Judge Moore enhanced the sentences of both defendants for obstruction of justice.

U.S. Attorney Ferrer stated, “Our tax system depends upon taxpayers honestly meeting their obligations.  When people, like the defendants sentenced in this case, file false tax returns and fail to pay the taxes they owe, they cheat the entire community out of monies to which they are rightfully owed.  Our office will continue to hold tax offenders accountable for their crimes in a court of law.”

IRS-CI Special Agent in Charge Kelly R. Jackson stated, “In this scheme, the defendants underreported their income to avoid paying taxes to the IRS. As we are in the beginning of tax filing season, let me warn others contemplating similar conduct not to be tempted by greed.  We are all responsible to report all of our income and file correct and accurate tax returns.  Today’s sentencing is an important victory for America’s taxpayers who play by the rules and have no tolerance for those who shun their tax responsibilities.”

Mr. Ferrer commended the investigative efforts of IRS-CI.  The case was prosecuted by Assistant United States Attorneys Michael Davis and John Byrne.

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.

Two Palm Beach County residents were sentenced to prison for their participation in a stolen identity tax fraud scheme involving at least 790 stolen identities.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Nadine Gurley, Special Agent in Charge, U.S. Department of Housing and Urban Development, Office of the Inspector General (HUD-OIG), and Karen Citizen-Wilcox, Special Agent in Charge, U.S. Department of Agriculture, Office of Inspector General (USDA OIG), made the announcement.

Latonia Verdell, 40, of Palm Beach County (Case No. 14-CR-80158), and Starling Willis, 32, of West Palm Beach (Case No. 15-CR-80119), were each sentenced to a term of imprisonment by U.S. Senior District Judge Daniel T. K. Hurley, for their participation in a stolen identity tax fraud conspiracy.  Verdell and Willis were previously convicted of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1), and conspiracy to commit wire fraud, in violation of Title 18, United States Code, Sections 1343 and 1349.  Verdell was also convicted of being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1); possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3); theft of government property, in violation of Title 18, United States Code, Section 641; and making a false statement to a federal government agency, in violation of Title 18, United States Code, Section 1001(a)(2). 

Verdell was sentenced to a total of 94 months in prison, to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $947,296.81.  Verdell’s sentence includes a concurrent term of 70 months in prison for each count of conviction for theft of government money, felon in possession, and unauthorized access devices; and a concurrent sentence of 5 years in prison for the false statement conviction.  In addition, Verdell was sentenced to a mandatory term of 24 months in prison, to run consecutive to all other sentences, for the aggravated identity theft conviction.

Willis was sentenced to a total of 33 months in prison, to be followed by three years of supervised release, and ordered jointly and severally liable for restitution, with Verdell, in the amount of $32,4551.  Willis was sentenced to 9 months in prison for the conspiracy, to be followed by a mandatory consecutive term of 24 months in prison for the aggravated identity theft conviction.

According to court documents and the defendants’ testimony during the sentencing hearings, Verdell, Willis and co-defendant Kelli Witherspoon McIntosh, participated in a widespread stolen identity refund fraud scheme involving at least 790 stolen identities and personal identification information (PII).  The PII was used to file fraudulent on-line income tax returns, with those refunds being directed to various bank accounts created and maintained by Verdell, McIntosh and Willis, as well as to reloadable debit cards.  Identity theft victims whose personal information was used for this scheme spanned from Indian River, Highlands, St. Lucie, Martin and Palm Beach Counties, as well as persons outside the State of Florida.  This scheme resulted in the submission to the IRS of more than 590 fraudulent returns in the names of other persons, seeking approximately $1.5 million in fraudulent income tax refunds. 

Court documents also indicate that on September 1, 2010, while Verdell was receiving unauthorized income from the filing of fraudulent income tax returns with the IRS, she received a housing assistance payment funded by the U.S. Department of Housing and Urban Development (HUD), while knowing she was not entitled to receive such a payment.  On September 24, 2013, Verdell submitted an application for enrollment in the Supplemental Nutrition Assistance Program (SNAP), also referred to as ‘food stamps.’  In her application, Verdell knowingly stated that her only monthly income was $715, without any other source of income, when she was in fact receiving significant income from fraudulent tax refund payments.

Court documents also indicate that evidence of the stolen PII, a list of bank accounts belonging to Willis, information regarding accounts which received fraudulent refunds, and a stolen .38 caliber pistol, were found in Verdell’s home during the execution of a federal search warrant.

Kelli Witherspoon McIntosh is scheduled to be sentenced on February 16, 2016 in West Palm Beach by U.S. Senior District Judge Hurley. 

Mr. Ferrer commended the investigative efforts of the IRS-CI, HUD-OIG, and USDA OIG.  Mr. Ferrer also thanked the Palm Beach County Sheriff’s Office for their assistance with this investigation.  The case is being prosecuted by Assistant U.S. Attorney Theodore Cooperstein.   

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 Miami-Dade residents were convicted by a jury in federal court for being felons in possession of a firearm, after they shot at a police officer with an AK-47 rifle.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Carlos A. Canino, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Division, and Juan Perez, Acting Director, Miami-Dade Police Department (MDPD), made the announcement.

Theodist Grimes, III, 27, and Wendell Trenell Clark, 25, both of Miami, were convicted after a nine-day trial before U.S. District Judge Joan Lenard for being felons in possession of a firearm.

According to evidence presented at trial, on April 22, 2015, Grimes and Clark, both convicted felons, along with a third male, entered a convenience store in Miami to confront two men they believed had stolen their friend's gun.  After the initial confrontation, the defendants went back to their car to arm themselves with two handguns and an AK-47 rifle.  Customers called 911 and Miami-Dade police officers responded.

The first officer on the scene testified that he immediately saw Grimes with a Glock handgun and grabbed him.  After a brief struggle, Grimes jumped out of his shorts and sprinted away in his underwear, all of which was captured on the store surveillance video.  Clark then pulled the get-away car around to pick up Grimes and led police on a high-speed chase.  Unable to elude the pursuing officers, Clark maneuvered the car so that Grimes could lean out the window and open fire with the AK-47 rifle on the Miami-Dade robbery detective who was chasing them.  The detective, who is also assigned as an ATF Task Force Officer, testified that Grimes fired eight to ten rounds at the detective’s car, and that he was able to pull his car out of the line of fire.

Clark and Grimes continued to flee and, after crashing their car into a pick-up truck, ran away on foot.  A nearby resident watched from inside his home as Grimes jumped over the fence in his yard and discarded the AK-47 rifle in a trash can on his property.  This resident then immediately ran into the street, flagged down a police officer and showed the officer where the rifle was abandoned.  A perimeter was set up and aviation helped track the defendants, who were located and arrested shortly thereafter.

Grimes and Clark are currently scheduled to be sentenced on April 13, 2016.

Mr. Ferrer commended the investigative efforts of ATF and MDPD.  Mr. Ferrer also thanked the City of Miami Police Department and Miami Beach Police Department for their assistance and cooperation in this matter.  This case was prosecuted by Assistant U.S. Attorney Miesha Shonta Darrough and Deputy Chief Michael Thakur.

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 additional members of the Pagans Motorcycle Club (PMC) were sentenced yesterday by United States District Judge Donald L. Graham in Fort Pierce, after being convicted of firearms charges.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, A. Lee Bentley, III, United States Attorney for the Middle District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Paul Wysopal, Special Agent in Charge, Federal Bureau of Investigation (FBI), Tampa Field Office, Carlos A. Canino, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, Regina Lombardo, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Tampa Field Division, J. Michelle Morris, Chief, Sebastian Police Department, Diane Hobley-Burney, Chief of Police, Fort Pierce Police Department, Ken J. Mascara, Sheriff, St. Lucie County Sheriff’s Office, William D. Snyder, Sheriff, Martin County Sheriff’s Office, Ben Johnson, Sheriff, Volusia County Sheriff’s Office, and Ronald Wright, Chief, South Daytona Police Department, made the announcement.

Richard Todd Badali, 53, of Casselberry, Florida was previously found guilty by a jury of the unlawful sale of a firearm to a convicted felon, in violation of Title 18, United States Code, Section 922(d)(1), and possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922(g)(1).  Badali was sentenced to 18 months in federal prison, to be followed by two years of supervised release.

Thomas Richard Laakmann, 60, of Orange City, Florida, was previously found guilty by a jury of sale of a firearm to a convicted felon, in violation of Title 18, United States Code, Section 922(d)(1), and possession of a firearm by a person convicted of misdemeanor crime of domestic violence, in violation of Title 18, United States Code, Section 922(g)(9).  Laakmann was sentenced to 12 months in federal prison, to be followed by two years of supervised release.

According to statements made in court and documents filed in the case, Badali was a ranking member of the PMC and in charge of all PMC members in Florida.  Laakmann was a rank-in-file member of the PMC. Pursuant to the sentencing order, Badali and Laakkmann are also prohibited from associating with members and associates of the PMC while on supervised release.

The sentencing of Badali and Laakkmann concludes a multi-jurisdictional law enforcement investigation into the illicit conduct of PMC members that spanned a number of years.  During the course of the investigation, the FBI was able to infiltrate the PMC operating in Florida and documented the unlawful distribution of narcotics and firearms.  According to court records, much of the criminal conduct, including the firearms offenses committed by Badali and Laakmann, took place at a former PMC club house in Sebastian, Florida.  Other unlawful transactions occurred in Miami, Ft. Lauderdale, Fort Pierce, Stuart, and Daytona Beach.  During the course of the undercover operation, law enforcement purchased 24 firearms from PMC members and their associates. Many of the illegal firearms sellers had prior criminal convictions.  In addition, many of the recovered firearms were determined to be stolen or had obliterated serial numbers.  In addition, controlled substances, including cocaine, prescription pills and marijuana were also purchased from the targets during the course of the undercover investigation. 

In addition to Badali and Laakkmann, eight other individuals previously pleaded guilty and have been sentenced for their participation in narcotics and firearms offenses related to this investigation, including: William Tendrich, 40, of Fort Pierce, was sentenced to 15 years’ imprisonment for firearms offenses; Anthony Posadas, 67, of Fort Pierce, was sentenced to 18 months’ imprisonment for firearms offenses; Michael Clancy, 58, of Vero Beach, was sentenced to 2 years’ imprisonment for narcotics (cocaine) offense; Jorge Duquen, 53, of Miami, was sentenced to 10 months’ imprisonment for a narcotics (cocaine) offense; Hector Garcia, 62, of Miami, was sentenced to 18 months’ imprisonment for a narcotics (cocaine) offense; Michael Carter, 62, of New Smyrna Beach, was sentenced to 51 months’ imprisonment for firearms offenses; Robert Klimkowski, 61, of Melbourne, was sentenced to 1 year of probation for narcotics offenses; and Thomas Close, 60, of Sebastian, was sentenced to 15 years’ imprisonment for a firearm offense.

Mr. Ferrer commended the investigative efforts of the FBI, ATF, Sebastian Police Department, Fort Pierce Police Department, St. Lucie County Sheriff’s Office, Martin County Sheriff’s Office, Volusia County Sheriff’s Office, and South Daytona Police Department.  These cases were prosecuted by Assistant United States Attorneys for the Southern District of Florida Russell R. Killinger and Adam McMichael, Special Assistant United States Attorney Southern District of Florida Ryan L. Butler, and Assistant United States Attorney for the Middle District of Florida Bruce Ambrose.

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 Pierce resident was sentenced today to one year of probation and ordered to pay a $5,000.00 fine by Chief United States Magistrate Judge Frank J. Lynch. Jr., for violating manatee zone speed restrictions.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Jason Riley, Deputy Resident Agent in Charge, U.S. Fish and Wildlife Service (FWS), made the announcement.

Christopher Michael McManus, 37, of Fort Pierce, previously pled guilty to one count of engaging in a waterborne activity contrary to law, in violation of Title 16, United States Code, Section 1583(a)(1)(G).  McManus’s court ordered fine will be forwarded to the Lacey Act Reward Account to support wildlife conservation activities. 

According to court documents and information disclosed during the court proceedings, on July 3, 2015, McManus was observed at the west shoreline of the Indian River, in the Intracoastal Waterway, in St. Lucie County, operating his boat within the clearly posted slow speed minimum wake manatee protection zone.  McManus was operating his boat on plane and creating an excessive wake.  McManus had numerous prior convictions for violating fish and wildlife regulations.

Mr. Ferrer commended the investigative efforts of the U.S. Fish and Wildlife Service.  This case was prosecuted by Assistant United States Attorney Daniel E. Funk.

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.