Southern District of Florida

A former Doral Police Department Public Service Aide and two tow truck drivers were arrested for participating in a bribery scheme. 

Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Donald W. De Lucca, Chief, Doral Police Department (DPD), made the announcement. 

Former DPD Pubic Service Aide (PSA) Leonardo Mayi, 36, and two tow truck operators Andreo Cambria, 51, and Roberto Dominguez, 31, were arrested pursuant to a federal criminal complaint charging each defendant with conspiracy and corruption charges related to their participation in a pirate towing scheme. 

According to the allegations contained in court filings, Cambria offered to pay PSA Mayi cash in return for Mayi misusing his official position to corruptly steer business to Cambria and Dominguez.  During the course of the corruption scheme, Mayi would permit Cambria and Dominguez to circumvent Doral’s rotational wrecker system and approach stranded drivers at accident scenes to illegally solicit their business.  When Cambria or Dominguez was successful, they would tow the disabled vehicles to garages which would, in turn, pay cash kickbacks to Cambria and Dominguez.  For his part, Mayi was paid approximately $100 per successfully towed vehicle.  As a result of their participation in the scheme, between February 2013 and February 2014, the conspirators generated thousands of dollars of illicit business and Mayi himself received at least $5,000 in bribes. 

PSA Mayi submitted his resignation with the Doral Police Department.  Before resigning, Mayi had been with the department since 2008.  

Each of the defendants are charged with conspiracy to commit an offense against the United States, that is, engaging in a wire fraud scheme resulting in the deprivation of Mayi’s honest services and accepting bribes in connection with Mayi’s duties with the DPD, an agency that receives federal funding, all in violation of Title 18, United States Code, Section 371.  Each defendant is exposed to a maximum sentence of five years’ imprisonment, to be followed by three years supervised release, and up to a $250,000 fine. 

Mr. Ferrer commended the investigative efforts of the FBI Miami Area Public Corruption Task Force and the Doral Police Department.  This case is being prosecuted by Assistant United States Attorney Anthony W. Lacosta. 

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.

 

Federal, state and local law enforcement officials today announced the filing of federal charges against 55 defendants in five separate cases for their alleged participation in varied criminal conduct, including armed drug trafficking, narcotics conspiracies, illegal firearms sales and firearms violations by convicted felons.  The charges are the result of initiatives which stem from the Violence Reduction Partnership (VRP), launched by the U.S. Attorney’s Office in 2011.  Through a collaborative partnership, the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminal networks that plague communities in Miami-Dade, Broward and Palm Beach Counties. 

The law enforcement mission is to combat violent crime, narcotics trafficking, gang activity and firearms offenses by prosecuting offenders and working with community leaders and non-profit entities to provide preventive services to the local populations. 

The agencies and departments announcing today’s federal cases are each dedicated members of VRP, included: U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida, Special Agent in Charge Carlos A. Canino for the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Miami Field Division, Special Agent in Charge A.D. Wright for the U.S. Drug Enforcement Administration’s (DEA) Miami Field Division, U.S. Marshal Amos Rojas Jr. for the United States Marshals Service’s (USMS) Regional Fugitive Task Force, Acting Director Juan Perez for the Miami-Dade Police Department (MDPD), Chief Rodolfo Llanes for the City of Miami Police Department (MPD), Chief Antonio G. Brooklen for the Miami Gardens Police Department (MGPD), Special Agent in Charge George L. Piro for the Federal Bureau of Investigation’s (FBI) Miami Field Office, Sheriff Scott Israel for the Broward Sheriff’s Office (BSO), Chief Dan Guistino for the Pembroke Pines Police Department, Special Agent in Charge Troy Walker for the Florida Department of Law Enforcement’s (FDLE) Miami Regional Operations Center, Sheriff  Ric Bradshaw, for the Palm Beach County Sheriff’s Office (PBSO) and Chief William Hernandez for the North Miami Beach Police Department (NMBPD).

“Today, we have cast a wide net in our ongoing efforts to prosecute the violent offenders, narcotics traffickers and convicted felons who continue to prey on our local communities,” said U.S. Attorney Ferrer.  “Our innovative investigative techniques continue to support the identification and apprehension of those who violate the law.  Together, the dedicated law enforcement officers, community leaders and concerned citizens who support the Violence Reduction Partnership are taking back our neighborhoods that are plagued by illegal firearms, illicit drugs and crime.” 

“The streets are safer and the good people of Miami can sleep a little easier knowing that these armed drug dealers are locked up and their days of peddling cocaine, heroin and dealing violence in our community are over,” said Special Agent in Charge Canino.  “Taking armed violent criminals off the streets and putting them behind bars has always been a focus of ATF and our enforcement mission in Florida.  I commend the agents and officers who repeatedly risked their lives to remove these violent criminals from poisoning our community.  I wish to recognize federal and state law enforcement partners and especially the leadership of U.S. Attorney Wifredo A. Ferrer and his office in the relentless prosecution of armed violent offenders.”

“Through the use of electronic intercepts, law enforcement authorities were able to identify participants in the drug trafficking conspiracy who were located in multiple states and abroad,” said Special Agent in Charge Wright.  “DEA remains committed to combatting drug trafficking through our joint efforts with our law enforcement partners.”   

“The serious charges these individuals face and the dangerous weapons seized during this investigation demonstrate an egregious and sustained disregard for the law and the safety of our community,” said Acting Director Perez.  “I am very proud of the efforts of our detectives and the Violence Reduction Partnership with our federal, state and local allies.  This continued collaboration is crucial in a time when we see a prevalence of gun violence in our communities.  While the unfortunate correlation between narcotics trafficking and violence is renowned, so is our commitment to stop these acts from occurring.”

“The City of Miami Police Department has proudly teamed with several local and federal agencies, including the U.S. Attorney’s Office for the South District of Florida, to bring to an end an elaborate network responsible for drug trafficking in our community,” said Chief Llanes.  “The collaborative efforts of all agencies involved have not only proven that law enforcement’s resolve is active and present in our neighborhoods, but equally apparent is the investigative strength obtained through an unified effort to bring an end to drug trafficking and violence on our streets.  It is with great pleasure that we stand along all the agencies present today making a commitment to work together to continue our stand against organized crime and drug trafficking in the South Florida.”

“FDLE is proud to take part in this collaborative effort to make Miami-Dade, Broward and Palm Beach Counties safer,” said Special Agent in Charge Walker  “We are dedicated to the Violence Reduction Partnership and look forward to many future initiatives that will further this positive impact on our community.”

“These criminals traversed counties and states in search of opportunities to further their illegal enterprises,” said Sheriff Israel.  “The fact that working together law enforcement has identified more than 50 targets shows the commitment and dedication we all have to our residents and the betterment of our communities.”

Today, U.S. Attorney Ferrer, joined by members of federal and local law enforcement agencies announced the most recent results of the VRP initiatives impacting areas throughout the Southern District of Florida, including West Little River, Liberty City, Hialeah, West Miami, Kendall and Miami Gardens.

1.         United States v. Hiosbani Garcia, et. al.,

            Case No. 16-20038-CR-LENARD

            On Jan. 21, 2016, 32 individuals were charged by indictment for their alleged participation in interlocking drug trafficking conspiracies in Miami-Dade County, Florida, primarily the neighborhoods of West Little River, Florida, and Liberty City Florida.

            Charged in the 16 count indictment are Hiosbani Garcia aka Hioba, 43, of Miami, Florida, Reinaldo Gomez-Garcia aka Jacobo aka Papi, 33, of Miami, Francisco Garcia aka ‘Frank, 27, of Miami, Luis Prieto Jr. aka Lou, 37, of Miami, Darlene Ondina Mendoza, 32, Miami, Michael Leon Thomas aka Poochie, aka Ghost, 39, of Pembroke Pines, Florida, Arturo Triana, 48, of Miami, Jose Turino, 50, of Kendall, Florida, Emilio Quinones aka Toqui, 30, of Hialeah, Florida, Aldo Cabreja-Olivera aka Pacheco, 43, of Miami, Yubisnel Rolando Rodriguez-Montoya, 34, of Miami, Argelis Casanova-Consuegra, 40, of Miami, Yosvani Alarcon-Esteves, 39, of Hialeah, Jose Mena Callejas, 38, of Miami, Calvin Roger Pearce II, 29, of Miami Gardens, Florida, Richard London, 33, of Miami Gardens, Rickey Lee Pryor Jr., 27, of Miami, Essence Sinque Clervil aka E-Class, 30, of Miami, Wayne Thomas Jr. aka Boobie, 40, of North Miami, Florida, Kenneth Desmond Wright II aka Suge, 36, of Pembroke Pines, Melina Elina Pierre-Louis, 29, of Miami, Harry Kwame Figgers  aka Jit, 37, of Miami, Nancy Sue Hechavarria, 27, of Miami, Samuel Lee Wooden, 30, of Fort Pierce, Florida, Bernard Franklin Tucker, 60, of Miami, Damon Lamont McWilliams, 49, of Miami, Joaquin Rodriguez, 60, of Miami, Guillermo Horta-Alvarez, 70, of Miami, Raul Rodriguez, 51, of Miami, Isaac James McCullough, 44, of Miami, Luis Manuel Zafora, 50, of Pembroke Pines, and Alan Kirschman, 62, of Pompano Beach, Florida.

            According to allegations contained in court documents, law enforcement began investigating Michael Thomas, a suspected crack-cocaine trafficker operating in Liberty City and West Little River, in the fall of 2014.  During the course of the initial investigation, undercover officers purchased approximately 12 ounces of crack cocaine and three firearms from Michael Thomas and his associates.  Following the undercover purchases, communications intercepted over court-authorized wiretaps and the parallel law enforcement surveillance operations, uncovered a vast drug trafficking network in South Florida that spanned from multi-kilogram cocaine suppliers down to local crack-cocaine distributors and their associates.  Hiosbani Garcia and Gomez-Garcia were identified as two of Michael Thomas’ suppliers.  The investigation also identified convicted felons who unlawfully possessed firearms and ammunition, individuals who possessed firearms during the course of drug transactions and individuals who illegally sold firearms. 

 

2.         United States v. Joel Diaz Fernandez, et al.

            Case No. 16-20050-CR-GAYLES

            On Jan. 26, 2016, 20 individuals were indicted for their alleged participation in a Miami based heroin trafficking network that extends from Miami Dade, Broward, and Palm Beach Counties, as well as other United States cities including Atlanta, Georgia, Huntsville, Alabama, Chicago, Illinois, and Dallas, Texas, into Mexico. 

            Charged in the twelve count indictment are Joel Diaz-Fernandez aka Joe, 47, of Mexico, Crecencio Silverio aka “Chencho,” 35, of Norcross, Georgia, Margarita Barragan-Velez, 27, of Norcross, Georgia, Marco Antonio Zagal-Garcia aka Toño, 27, of Mexico, William Muñoz aka Guillermo, 43, of Chicago, Jehu Aguilar-Hernandez, 34, of Atlanta, Israel Garcia-Gasper, 23, of Atlanta, Sean William Watkins, 43, of Miami, Francisco Quezada Del Pilar aka Frank, of Mexico, Rafael Vega-Diaz aka Rafa, 40, of Mexico, Shelton Lamar Edden aka Twin, 32, of Miami, Jermaine Daniels aka Maine, 30, of Miami Gardens, Morris Ulysses Moore aka “Garbage,” 43, of Miami Gardens, Brett Tyler Ayers aka Ty, 30, of Huntsville, Darrel Prenell Gibbs, aka  G, 50, of Orlando, Florida, Jerry Lee Johnson aka Bruh, 29, of Fort Myers, Florida, Victor Lawrence Drayton aka Old School, 54, of Miami, Jethro Pitts aka Uncle Jeth, 67, of Miami, Morris Perez Brown aka Mo, 43, of Miami Gardens, and Tiffany Ebony Knights, 33, of Decatur, Georgia.

            According to allegations contained in court filings, beginning in approximately March of 2015, law enforcement began investigating Moore, a local heroin distributor.  Over the next three months, law enforcement allegedly conducted seven undercover purchases, for a total of approximately 250 grams of heroin, directly from Moore.  The investigation identified Watkins as Moore’s narcotics supplier and wiretaps were initiated on Watkins’ phones.  Through wiretap intercepts, law enforcement determined that Watkins negotiated directly with contacts in Mexico for kilograms of heroin, valued at approximately $65,000 per kilogram.  Diaz-Fernandez was a primary source of heroin for Watkins.  A number of Mexico-based associates supplied Watkins and worked with Diaz-Fernandez’s heroin trafficking network.  The heroin was often routed through Atlanta, where Watkins and other associates would purchase the heroin and transport it to Miami for distribution throughout South Florida.  Watkins would then break down the heroin and sell smaller quantities to other distributors, who would then distribute the narcotics throughout Miami and elsewhere including Huntsville, Fort Myers and Orlando.

 

3.         United States v. Wayne Cox,

            Case No. 16-20034-CR-GAYLES

            On Jan. 19, 2016, Wayne Cox, 56, of Miami Gardens, was charged in a five count indictment with unlawfully engaging in the business of dealing in firearms, being a felon in possession of a firearm and knowingly selling the firearms to a convicted felon.

 

4.         United States v. Timothy Nathaniel Brown,

            Case No. 16-20033-CR-MORENO

            On Jan. 19, 2016, Timothy Brown, 37, of Liberty City, was charged with being a felon in possession of a firearm and ammunition.  

 

5.         United States v. Antonio Rossello

            Case No. 16-2068-MJ-WHITE

            On Jan. 20, 2016, Antonio Rossello, 41, of West Palm Beach, Florida, was charged by complaint with unlicensed dealing in firearms, unlawful possession of a machinegun, possession of an unregistered firearm, the unlawful transfer of a firearm and the unlawful making of a firearm.  According to court documents, between on or about Oct. 29, 2015, and Jan. 8, 2016, Rossello, engaged in the repeated, unlawful sale of firearms (including fully-automatic machine guns) and ammunition. 

 

During the course of the above referenced investigations, law enforcement seized 23 firearms and approximately 506 rounds of ammunition, approximately 10 kilograms of powder cocaine, approximately nine kilograms of heroin and approximately 500 grams of crack-cocaine.

If convicted, the defendants face the following maximum possible statutory sentences for their charged offenses: up to life in prison for possession of a firearm or ammunition by a convicted felon; up to life in prison for possessing a firearm in furtherance of drug trafficking,  up to 10 years in prison for the unlawful transfer or making of firearms, up to five years in prison for unlicensed dealing in firearms; up to 10 years in prison for unlawful possession of a machinegun; up to 10 years in prison for an unregistered firearm; up to life in prison for conspiring to possess controlled substances with the intent to distribute; and up to life in prison for possession of controlled substances with the intent to distribute.

U.S. Attorney Ferrer thanked the law enforcement agencies, community leaders and social service providers involved in the VRP, the South Florida High Intensity Drug Trafficking Area (HIDTA) Task Force and the Organized Crime Drug Enforcement Task Force (OCDETF).  U.S. Attorney Ferrer also commended the investigative efforts of ATF, DEA, U.S. Marshals Service’s Fugitive Task Force, MDPD, MPD, Miami Gardens Police Department, FBI, BSO, Pembroke Pines Police Department, FDLE, Palm Beach County Sherriff’s Office and NMBPD.  These cases are being prosecuted by Assistant U.S. Attorneys Seth Schlessinger and Cristina Moreno.

An indictment or complaint 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 or on http://pacer.flsd.uscourts.gov

Federal, state and local law enforcement officials today announced the filing of federal charges against 55 defendants in five separate cases for their alleged participation in varied criminal conduct, including armed drug trafficking, narcotics conspiracies, illegal firearms sales and firearms violations by convicted felons.  The charges are the result of initiatives which stem from the Violence Reduction Partnership (VRP), launched by the U.S. Attorney’s Office in 2011.  Through a collaborative partnership, the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminal networks that plague communities in Miami-Dade, Broward and Palm Beach Counties. 

The law enforcement mission is to combat violent crime, narcotics trafficking, gang activity and firearms offenses by prosecuting offenders and working with community leaders and non-profit entities to provide preventive services to the local populations. 

The agencies and departments announcing today’s federal cases are each dedicated members of VRP, included: U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida, Special Agent in Charge Carlos A. Canino for the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Miami Field Division, Special Agent in Charge A.D. Wright for the U.S. Drug Enforcement Administration’s (DEA) Miami Field Division, U.S. Marshal Amos Rojas Jr. for the United States Marshals Service’s (USMS) Regional Fugitive Task Force, Acting Director Juan Perez for the Miami-Dade Police Department (MDPD), Chief Rodolfo Llanes for the City of Miami Police Department (MPD), Chief Antonio G. Brooklen for the Miami Gardens Police Department (MGPD), Special Agent in Charge George L. Piro for the Federal Bureau of Investigation’s (FBI) Miami Field Office, Sheriff Scott Israel for the Broward Sheriff’s Office (BSO), Chief Dan Guistino for the Pembroke Pines Police Department, Special Agent in Charge Troy Walker for the Florida Department of Law Enforcement’s (FDLE) Miami Regional Operations Center, Sheriff  Ric Bradshaw, for the Palm Beach County Sheriff’s Office (PBSO) and Chief William Hernandez for the North Miami Beach Police Department (NMBPD).

“Today, we have cast a wide net in our ongoing efforts to prosecute the violent offenders, narcotics traffickers and convicted felons who continue to prey on our local communities,” said U.S. Attorney Ferrer.  “Our innovative investigative techniques continue to support the identification and apprehension of those who violate the law.  Together, the dedicated law enforcement officers, community leaders and concerned citizens who support the Violence Reduction Partnership are taking back our neighborhoods that are plagued by illegal firearms, illicit drugs and crime.” 

“The streets are safer and the good people of Miami can sleep a little easier knowing that these armed drug dealers are locked up and their days of peddling cocaine, heroin and dealing violence in our community are over,” said Special Agent in Charge Canino.  “Taking armed violent criminals off the streets and putting them behind bars has always been a focus of ATF and our enforcement mission in Florida.  I commend the agents and officers who repeatedly risked their lives to remove these violent criminals from poisoning our community.  I wish to recognize federal and state law enforcement partners and especially the leadership of U.S. Attorney Wifredo A. Ferrer and his office in the relentless prosecution of armed violent offenders.”

“Through the use of electronic intercepts, law enforcement authorities were able to identify participants in the drug trafficking conspiracy who were located in multiple states and abroad,” said Special Agent in Charge Wright.  “DEA remains committed to combatting drug trafficking through our joint efforts with our law enforcement partners.”   

“The serious charges these individuals face and the dangerous weapons seized during this investigation demonstrate an egregious and sustained disregard for the law and the safety of our community,” said Acting Director Perez  “I am very proud of the efforts of our detectives and the Violence Reduction Partnership with our federal, state and local allies.  This continued collaboration is crucial in a time when we see a prevalence of gun violence in our communities.  While the unfortunate correlation between narcotics trafficking and violence is renowned, so is our commitment to stop these acts from occurring.”

“The City of Miami Police Department has proudly teamed with several local and federal agencies, including the U.S. Attorney’s Office for the South District of Florida, to bring to an end an elaborate network responsible for drug trafficking in our community,” said Chief Llanes.  “The collaborative efforts of all agencies involved have not only proven that law enforcement’s resolve is active and present in our neighborhoods, but equally apparent is the investigative strength obtained through an unified effort to bring an end to drug trafficking and violence on our streets.  It is with great pleasure that we stand along all the agencies present today making a commitment to work together to continue our stand against organized crime and drug trafficking in the South Florida.”

“FDLE is proud to take part in this collaborative effort to make Miami-Dade, Broward and Palm Beach Counties safer,” said Special Agent in Charge Walker  “We are dedicated to the Violence Reduction Partnership and look forward to many future initiatives that will further this positive impact on our community.”

“These criminals traversed counties and states in search of opportunities to further their illegal enterprises,” said Sheriff Israel.  “The fact that working together law enforcement has identified more than 50 targets shows the commitment and dedication we all have to our residents and the betterment of our communities.”

Today, U.S. Attorney Ferrer, joined by members of federal and local law enforcement agencies announced the most recent results of the VRP initiatives impacting areas throughout the Southern District of Florida, includingWest Little River, Liberty City, Hialeah, West Miami, Kendall and Miami Gardens.

1.         United States v. Hiosbani Garcia, et. al.,             Case No. 16-20038-CR-LENARD

On Jan. 21, 2016, 32 individuals were charged by indictment for their alleged participation in interlocking drug trafficking conspiracies in Miami-Dade County, Florida, primarily the neighborhoods of West Little River, Florida, and Liberty City Florida.

Charged in the 16 count indictment are Hiosbani Garcia aka Hioba, 43, of Miami, Florida, Reinaldo Gomez-Garcia aka Jacobo aka Papi, 33, of Miami, Francisco Garcia aka ‘Frank, 27, of Miami, Luis Prieto Jr. aka Lou, 37, of Miami, Darlene Ondina Mendoza, 32, Miami, Michael Leon Thomas aka Poochie, aka Ghost, 39, of Pembroke Pines, Florida, Arturo Triana, 48, of Miami, Jose Turino, 50, of Kendall, Florida, Emilio Quinones aka Toqui, 30, of Hialeah, Florida, Aldo Cabreja-Olivera aka Pacheco, 43, of Miami, Yubisnel Rolando Rodriguez-Montoya, 34, of Miami, Argelis Casanova-Consuegra, 40, of Miami, Yosvani Alarcon-Esteves, 39, of Hialeah, Jose Mena Callejas, 38, of Miami, Calvin Roger Pearce II, 29, of Miami Gardens, Florida, Richard London, 33, of Miami Gardens, Rickey Lee Pryor Jr., 27, of Miami, Essence Sinque Clervil aka E-Class, 30, of Miami, Wayne Thomas Jr. aka Boobie, 40, of North Miami, Florida, Kenneth Desmond Wright II aka Suge, 36, of Pembroke Pines, Melina Elina Pierre-Louis, 29, of Miami, Harry Kwame Figgers  aka Jit, 37, of Miami, Nancy Sue Hechavarria, 27, of Miami, Samuel Lee Wooden, 30, of Fort Pierce, Florida, Bernard Franklin Tucker, 60, of Miami, Damon Lamont McWilliams, 49, of Miami, Joaquin Rodriguez, 60, of Miami, Guillermo Horta-Alvarez, 70, of Miami, Raul Rodriguez, 51, of Miami, Isaac James McCullough, 44, of Miami, Luis Manuel Zafora, 50, of Pembroke Pines, and Alan Kirschman, 62, of Pompano Beach, Florida.

According to allegations contained in court documents, law enforcement began investigating Michael Thomas, a suspected crack-cocaine trafficker operating in Liberty City and West Little River, in the fall of 2014.  During the course of the initial investigation, undercover officers purchased approximately 12 ounces of crack cocaine and three firearms from Michael Thomas and his associates.  Following the undercover purchases, communications intercepted over court-authorized wiretaps and the parallel law enforcement surveillance operations, uncovered a vast drug trafficking network in South Florida that spanned from multi-kilogram cocaine suppliers down to local crack-cocaine distributors and their associates.  Hiosbani Garcia and Gomez-Garcia were identified as two of Michael Thomas’ suppliers.  The investigation also identified convicted felons who unlawfully possessed firearms and ammunition, individuals who possessed firearms during the course of drug transactions and individuals who illegally sold firearms. 

2.         United States v. Joel Diaz Fernandez, et al.
            Case. No. 16-20050-CR-GAYLES

On Jan. 26, 2016, 20 individuals were indicted for their alleged participation in a Miami based heroin trafficking network that extends from Miami Dade, Broward, and Palm Beach Counties, as well as other United States cities including Atlanta, Georgia, Huntsville, Alabama, Chicago, Illinois, and Dallas, Texas, into Mexico. 

Charged in the twelve count indictment are Joel Diaz-Fernandez aka Joe, 47, of Mexico, Crecencio Silverio aka “Chencho,” 35, of Norcross, Georgia, Margarita Barragan-Velez, 27, of Norcross, Georgia, Marco Antonio Zagal-Garcia aka Toño, 27, of Mexico, William Muñoz aka Guillermo, 43, of Chicago, Jehu Aguilar-Hernandez, 34, of Atlanta, Israel Garcia-Gasper, 23, of Atlanta, Sean William Watkins, 43, of Miami, Francisco Quezada Del Pilar aka Frank, of Mexico, Rafael Vega-Diaz aka Rafa, 40, of Mexico, Shelton Lamar Edden aka Twin, 32, of Miami, Jermaine Daniels aka Maine, 30, of Miami Gardens, Morris Ulysses Moore aka “Garbage,” 43, of Miami Gardens, Brett Tyler Ayers aka Ty, 30, of Huntsville, Darrel Prenell Gibbs, aka  G, 50, of Orlando, Florida, Jerry Lee Johnson aka Bruh, 29, of Fort Myers, Florida, Victor Lawrence Drayton aka Old School, 54, of Miami, Jethro Pitts aka Uncle Jeth, 67, of Miami, Morris Perez Brown aka Mo, 43, of Miami Gardens, and Tiffany Ebony Knights, 33, of Decatur, Georgia.

According to allegations contained in court filings, beginning in approximately March of 2015, law enforcement began investigating Moore, a local heroin distributor.  Over the next three months, law enforcement allegedly conducted seven undercover purchases, for a total of approximately 250 grams of heroin, directly from Moore.  The investigation identified Watkins as Moore’s narcotics supplier and wiretaps were initiated on Watkins’ phones.  Through wiretap intercepts, law enforcement determined that Watkins negotiated directly with contacts in Mexico for kilograms of heroin, valued at approximately $65,000 per kilogram.  Diaz-Fernandez was a primary source of heroin for Watkins.  A number of Mexico-based associates supplied Watkins and worked with Diaz-Fernandez’s heroin trafficking network.  The heroin was often routed through Atlanta, where Watkins and other associates would purchase the heroin and transport it to Miami for distribution throughout South Florida.  Watkins would then break down the heroin and sell smaller quantities to other distributors, who would then distribute the narcotics throughout Miami and elsewhere including Huntsville, Fort Myers and Orlando.

3.         United States v. Wayne Cox,             Case No. 16-20034-CR-GAYLES

            On Jan. 19, 2016, Wayne Cox, 56, of Miami Gardens, was charged in a five count indictment with unlawfully engaging in the business of dealing in firearms, being a felon in possession of a firearm and knowingly selling the firearms to a convicted felon.

4.         United States v. Timothy Nathaniel Brown,             Case. No. 16-20033-CR-MORENO

            On Jan. 19, 2016, Timothy Brown, 37, of Liberty City, was charged with being a felon in possession of a firearm and ammunition.  

5.         United States v. Antonio Rossello
            Case. No. 16-2068-MJ- WHITE

On Jan. 20, 2016, Antonio Rossello, 41, of West Palm Beach, Florida, was charged by complaint with unlicensed dealing in firearms, unlawful possession of a machinegun, possession of an unregistered firearm, the unlawful transfer of a firearm and the unlawful making of a firearm.  According to court documents, between on or about Oct. 29, 2015, and Jan. 8, 2016, Rossello, engaged in the repeated, unlawful sale of firearms (including fully-automatic machine guns) and ammunition. 

During the course of the above referenced investigations, law enforcement seized 23 firearms and approximately 506 rounds of ammunition, approximately 10 kilograms of powder cocaine, approximately nine kilograms of heroin and approximately 500 grams of crack-cocaine.

If convicted, the defendants face the following maximum possible statutory sentences for their charged offenses: up to life in prison for possession of a firearm or ammunition by a convicted felon; up to life in prison for possessing a firearm in furtherance of drug trafficking,  up to 10 years in prison for the unlawful transfer or making of firearms, up to five years in prison for unlicensed dealing in firearms; up to 10 years in prison for unlawful possession of a machinegun; up to 10 years in prison for an unregistered firearm; up to life in prison for conspiring to possess controlled substances with the intent to distribute; and up to life in prison for possession of controlled substances with the intent to distribute.

U.S. Attorney Ferrer thanked the law enforcement agencies, community leaders and social service providers involved in the VRP, the South Florida High Intensity Drug Trafficking Area (HIDTA) Task Force and the Organized Crime Drug Enforcement Task Force (OCDETF).  U.S. Attorney Ferrer also commended the investigative efforts of ATF, DEA, U.S. Marshals Service’s Fugitive Task Force, MDPD, MPD, Miami Gardens Police Department, FBI, BSO, Pembroke Pines Police Department, FDLE, Palm Beach County Sherriff’s Office and NMBPD.  These cases are being prosecuted by Assistant U.S. Attorneys Seth Schlessinger and Cristina Moreno.

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

A copy of this press release may be found on the website of the U.S. 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.

Six defendants pled guilty for their participation in an extensive stolen identity tax refund fraud scheme involving tens of thousands of individuals’ personal identifying information (PII). The defendants used the PII, including names, dates of birth, and Social Security numbers, to file thousands of fraudulent federal income tax returns with the IRS claiming tens of millions of dollars in refunds.

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), Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Delany De-Leon Colon, Acting Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, 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), Carlos A. Canino, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Dexter Williams, Chief, City of Miramar Police Department, Steve Steinberg, Chief, Aventura Police Department, William Hernandez, Chief, North Miami Beach Police Department (NMBPD), and Franklin Adderley, Chief, Fort Lauderdale Police Department, made the announcement.  

Harlan Decoste, a/k/a “Money King,” a/k/a “Moneyking_111,” 27, Kerby Luma, a/k/a "Money Makin Kerb," 26, Frantz Decoste, a/k/a "Gripe_111," 21, Francis Jeudy, a/k/a "Money Makin Rab," a/k/a "Brizzleon111," 26, all of Miramar, and Andy Cherrelus, a/k/a "Risktakers111," 24, of Miami, each 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 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 one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(1)(a). Frantz Decoste and Jeudy also pled guilty to one count of possession of stolen mail, in violation of Title 18, United States Code, Section 1708.  Chad Davis, a/k/a "Chadillac," a/k/a "Chadillac 305," 29, of Miami, 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).

According to court documents, while officers from the Miramar Police Department were investigating an armed home invasion that occurred at a home occupied by Harlan Decoste, Frantz Decoste, Luma, and Jeudy, in the Silver Falls Subdivision in Miramar, they discovered evidence of narcotics activity within the home. As a result, officers obtained a state court search warrant for the residence. 

While officers were searching the home pursuant to the state court warrant, they found evidence of fraud related activity in various bedrooms and common areas, consisting of approximately 500 debit cards issued in other persons’ names, one ledger/notebook that contained PII, one ledger/notebook that contained information related to tax returns, five United States income tax refund checks in other persons’ names, and various tax return documentation in other persons’ names.  In addition, the officers seized approximately 10 computers and 3 USB drives. There were also significant amounts of United States currency, jewelry, expensive shoes and clothing, and other valuable items in the home. 

Federal Agents obtained a search warrant to review the electronic and other evidence recovered from the residence. A forensic review of those items revealed that the computers contained PII of tens of thousands of individuals. Some of the PII appeared in photographs of computer screens (screenshots) from a medical center. The screenshots each contained approximately twelve patient names, dates of birth, and Social Security numbers. The PII was also contained in rich text document files. Many of the rich text document files contained the PII from the patient screenshots, along with additional user-inputted information such as the victims’ true addresses, fictitious addresses associated with tax returns, account numbers, IRS filing personal identification numbers, and refund amounts. 

Further analysis revealed that the defendants filed and caused to be filed thousands of fraudulent tax returns claiming tens of millions of dollars associated with the PII recovered from the residence. The defendants provided payment instructions on the tax returns, directing the IRS to transfer the tax refunds to various accounts in other persons' names that the defendants and their co-conspirators controlled. The defendants then withdrew the unlawfully obtained tax proceeds for their personal use and to further the fraud scheme. 

The defendants each face a maximum of ten years imprisonment for each of the conspiracy to defraud the government and access device charges, a maximum of five years imprisonment for the conspiracy to possess access devices, a maximum of five years imprisonment for possession of stolen mail, and a mandatory term of two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charges.

The defendants are scheduled to be sentenced on April 5, 2016, before Judge Dimitrouleas in Fort Lauderdale.

Mr. Ferrer commended the investigative efforts of the IRS-CI, ICE-HSI, USPIS, DOL-OIG, ATF, FBI Miami Cyber Task Force, as well as the Miramar, Aventura, and North Miami Beach Police Departments.  The case is being prosecuted by Assistant United States Attorney Brooke Watson.

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, Florida residents were sentenced to prison for their role in a stolen identity tax refund fraud scheme, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service (IRS) Criminal Investigation announced yesterday.

Roland Alexis, 34, was sentenced yesterday to 42 months in prison followed by three years of supervised release.  Alexis’s co-conspirator, Jim Joseph, 31, was previously sentenced to 42 months in prison followed by three years of supervised release on Jan. 20.

“Identity theft and filing false tax returns are serious crimes that inflict tremendous damage on innocent victims,” said Acting Assistant Attorney General Ciraolo.  “We will continue to work with our federal and state law enforcement partners to aggressively investigate and prosecute these crimes and, where appropriate, seek the maximum sentence available to punish the perpetrators, deter others from engaging in such behavior, and seek justice for the victims.”         

According to the indictment and information disclosed in court proceedings, Joseph and Alexis conspired to file more than 860 false income tax returns claiming more than $1 million in refunds from the IRS.  Alexis’s conduct resulted in a tax loss of $1.8 million; Joseph’s conduct resulted in a tax loss of $1.2 million.  Joseph and Alexis each pleaded guilty in November 2015 to one count of a multi-object conspiracy to defraud the IRS, commit wire fraud and commit aggravated identity theft, as well as one count of aggravated identity theft.

Between 2007 and July 2014, Joseph, Alexis and others filed false federal income tax returns using stolen identities.  Joseph and Alexis obtained the personal identification information including names, social security numbers, addresses and dates of birth, without the individuals’ authorization. Much of the stolen personal identification information belonged to prisoners and deceased individuals.  Joseph, Alexis and others recruited knowing co-conspirators and unknowing victims to obtain Electronic Filing Identification Numbers (EFINs) in their names through which fraudulent income tax returns would be filed.  In late 2009, Alexis and Joseph, along with a co-conspirator, formed Worldwide Income Tax Multi-Services LLC and North Miami Income Tax Services.  The companies were created with the intended purpose of filing fraudulent tax returns using stolen identities.  Worldwide Income Tax Multi-Services was located in Miramar, Florida and listed Alexis as President and Joseph as Vice-President.  North Miami Income Tax Services was set up in Miami and listed Alexis as Registered Agent.  Joseph, Alexis and others then used the stolen identities and EFINs to electronically file fraudulent tax returns.

In addition to the prison term, U.S. District Judge William Zloch for the Southern District of Florida ordered Joseph to pay $1,225,686.12 in restitution to the IRS.  Alexis was also ordered to pay $1,805,332.71 in restitution, forfeit two single family owned properties in Miami and $369,776.18 in proceeds held in a bank account.

U.S. Attorney Ferrer, Acting Assistant Attorney General Ciraolo and Special Agent in Charge Jackson commended special agents of IRS Criminal Investigation and Homeland Security Investigations, who investigated the case and Assistant U.S. Attorney Neil Karadbil of the Southern District of Florida and Assistant Chief Gregory E. Tortella of the Tax Division, who prosecuted the case.

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

A Broward resident was charged for her participation in stolen identity and tax fraud schemes involving at least 652 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), and Dwayne Flournoy, Chief, Hallandale Beach Police Department (HBPD), made the announcement.

Laveisha Dorray Charles-Coldros, 30, of Miramar, Florida, was charged with one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), one count of using one or more unauthorized access devices, in violation of Title 18, United States Code, Sections 1029(a)(2) and 2, and four counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).  If convicted, Charles-Coldros faces a maximum of ten years in prison for each of the access device charges, and a mandatory term of two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charges.

According to court documents, during a vehicle search where Charles-Coldros was the sole occupant, a Hallandale Beach Police Department officer found mail addressed to numerous individuals and a large duffel bag with multiple pieces of paper and notebooks that contained the names, dates of birth, and Social Security numbers of approximately 652 different individuals.

IRS-CI Special Agents interviewed numerous individuals whose PII was found in the duffel bag. The individuals did not authorize Charles-Coldros to have their names, date of births, and Social Security numbers in her possession, and did not authorize a tax return be filed in their names.  Another individual did not authorize Charles-Coldros to have a debit card in his/her name.

Mr. Ferrer commended the investigative efforts of IRS-CI, United States Secret Service, and the Hallandale Beach Police Department, and thanked Federal Protective Service for its assistance in this matter. The case is being prosecuted by Assistant U.S. Attorney Cynthia R. Wood.   

An indictment is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.

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

Jean Baptiste Joseph, 26, of Miami, was sentenced last week by United States District Judge Federico A. Moreno to 55 years in prison, following his trial convictions for possession with intent to distribute more than 1 kilogram of ethylone, in violation of Title 21, United States Code, Section 841; possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922(g)(1); and possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c).

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, Antonio Brooklen, Chief, Miami Gardens Police Department, and Amos Rojas, Jr., United States Marshal, U.S. Marshals Service (USMS), made the announcement.

According to trial evidence and court documents, on June 5, 2015, a U.S. Marshals Task Force went to a residence in Miami Gardens, Florida, to arrest Joseph in connection with a separate criminal investigation.  The U.S. Marshals took Joseph into custody in his bedroom and, as he was being arrested, they saw in plain view, a loaded AK-47 pistol in the open closet and two Ziploc bags containing more than 1 kilogram of ethylone, a synthetic narcotic, on a television stand.

The Miami Gardens Police Department’s subsequent investigation revealed that, in addition to the assault rifle and ethylone, Joseph also possessed a Ziploc bag with 70 grams of marijuana, a 100-round drum magazine (loaded with 65 AK-47 rounds of ammunition), a high capacity 9 mm magazine, two boxes of 9 mm ammunition, empty pill capsules, empty baggies with marijuana logos, a boot stuffed with money, a digital scale, and Joseph’s passport, Social Security card and Florida identification card.

During recorded phone calls following his arrest, Joseph told his associates that he was caught in his bedroom with his “stick,” which referred to his AK-47, and his “work,” which referred to the narcotics.

Mr. Ferrer commended the efforts of ATF, USMS, and the Miami Gardens Police Department in the investigation and prosecution of this case.  This case was prosecuted by Assistant U.S. Attorneys Jonathan Osborne and 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

A Fort Pierce resident was sentenced today to 75 months in prison by United States District Judge Robin L. Rosenberg for receiving and possessing child pornography.

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 Ken J. Mascara, Sheriff, St. Lucie County Sheriff’s Office, made the announcement.

Richard Joseph Ahearn, 56, of Fort Pierce previously pled guilty to one count of receiving child pornography, in violation of Title 18, United States Code, Section 2252(a)(2), and one count of possessing child pornography, in violation of Title 18, United States Code, Section 2252(a)(4)(B).  After his release from incarceration, Ahearn will be placed on supervised release for 10 years and will have to register as a sex offender.

According to court documents and information disclosed during the court proceedings, Yahoo! reported to the National Center for Missing and Exploited Children (NMEC) several suspected child pornography images that had been uploaded to a Flickr account.  The email account and the internet protocol (IP) address associated with that account were connected to a physical address in Fort Pierce, determined to be Ahearn’s residence.  The St. Lucie County Sheriff’s Office obtained state search warrants for the Flickr account and associated email accounts.  Examination of those accounts revealed sexually explicit online chats with minors.  It was also determined that Ahearn was employed as an Information Technology Professional with the St. Lucie County Tax Collector’s Office.  After ICE-HSI joined the investigation, a federal search warrant was obtained for Ahearn’s residence and any electronic devices found therein.  A subsequent search of Ahearn’s computer revealed images of sexually explicit conduct involving minors (child pornography).

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

Mr. Ferrer commended the investigative efforts of ICE-HSI and the St. Lucie County Sheriff’s Office.  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.

West Palm Beach brothers Janio Vico and Jharildan Vico were sentenced to 108 months in federal prison, the forfeiture of $1.87 million and restitution in the amount of $1.92 million, following their mail fraud and money laundering convictions.

Wifredo 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.

Janio Vico, 32, and Jharildan Vico, 34, both of West Palm Beach, were sentenced by United States District Judge Robin L. Rosenberg in West Palm Beach, following their trial before a jury resulting in guilty verdicts on the 16-count indictment charging conspiracy to commit mail fraud and mail fraud, in violation of Title 18 United States Code, Sections 1349 and 1341; as well as conspiracy to commit money laundering and money laundering, in violation of Title 18, United States Code, Sections 1956(h) and 1957.

According to statements made in court and documents filed in the case, the Vicos established and operated an unlicensed health care clinic known as V & V Rehabilitation Center, Inc., originally located in Lantana and moved to West Palm Beach, for the purpose of defrauding at least 15 automobile insurance companies by submitting claims for personal injury protection (PIP).  During a 20 month period, beginning December 2009, through at least October 4, 2011, the brothers received approximately $1.87 million in payments from automobile insurers for relying upon these fraudulent claims that were, in part, based upon staged accidents, real accidents resulting in no injuries, false documents submitted for non-existent treatment, and claims made through an unlicensed clinic.  The scheme came about because the Vico brothers were paying claimants to appear at their clinic known as V & V Rehabilitation Center.  Much of the money received from the insurance companies was diverted to the brothers’ accounts for their personal use.

Janio Vico and Jharildan Vico each used a portion of the more than $1.2 million transferred from the clinic accounts to accounts they controlled for their personal use to buy residential property, amongst other things.

The Vico brothers claimed that formerly licensed chiropractor co-conspirator, Jennifer Adams, was the owner of V & V Rehabilitation Center Inc., in order to avoid obtaining a license and evade the scrutiny of the Florida Department of Health.  The evidence at trial showed that Janio Vico and Jharildan Vico were the true owners of the clinic which was unlicensed during time period charged.  According to State of Florida laws, because the Vico brothers were the true owners and did not get a license in their names, the clinic was unlicensed and the claims to insurance companies were illegal.

During the course of the fraud, the Vico brothers purchased at least two residences using moneys obtained through their fraud.  After a hearing to determine whether forfeiture of money and properties should occur in this case, the court entered a preliminary order of forfeiture as part of their sentences that requires that both Janio Vico and Jharildan Vico forfeit $1.87 million together with residences at 610 Cresta Circle, West Palm Beach and 669 Pacific Grove Drive, Unit #3, West Palm Beach.

This prosecution was the latest in the ongoing investigation of clinics established in the Palm Beaches to fraudulently bill automobile insurance companies for PIP claims in Operation Sledgehammer.  As a result of that investigation, more than 100 individuals have been prosecuted for similar offenses.  PIP provides $10,000 of insurance to individuals injured during automobile accidents in Florida regardless of blame, relying upon truthful submission of diagnosis, treatment orders and actual treatment documents provided to the insurance companies.  Each time fraudulent claims are submitted, the price of automobile insurance is affected, resulting in higher premiums.

Mr. Ferrer commended the investigative efforts of the FBI and the assistance of the National Insurance Crime Bureau.  This case was prosecuted by Assistant United States Attorney Ellen Cohen.

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 Broward County resident was arrested and charged in a criminal complaint in connection with a Jamaica based lottery scam.

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, announce the arrest of Delroy Drummond, 25, of Broward County, for his role in a Jamaica based telemarketing fraud scheme.  Drummond had his initial appearance today in federal court and his pre-trial detention hearing is scheduled on Thursday, January 28, 2016 at 10:30 a.m. before U.S. Magistrate Judge Lurana S. Snow.

More specifically, the complaint charges Drummond with 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.  If convicted, Drummond faces a maximum statutory sentence of twenty years in prison.

According to the criminal complaint, beginning in or about April 2015, Drummond’s co-conspirators are alleged to have contacted elderly victims in the United States and falsely informed them that they had won a lottery.  According to the complaint, the 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 allegedly instructed the victims on how to send this money, and to whom, including 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 this fraud.  At that time, Drummond was confronted with the fact that he was participating in a lottery fraud 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 was falsely told they had won a $2.5 million lottery prize.  Drummond, according to the criminal complaint, further used a fraudulent identification in order to receive these funds.  Moreover, in May 2015, Drummond obtained money wired to him under a fictitious name from another victim who was falsely informed they had won a lottery prize.  After receiving the money, Drummond was approached by a police officer and fled through the inside of the retail store, pushing carts and an individual out of his way.  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 throughout the United States.  

Mr. Ferrer commended the investigative efforts of the U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Marshals 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.

A criminal complaint is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.

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 owner and manager of three Miami-area home health agencies was convicted late yesterday for his role in a health care fraud scheme that resulted in the submission of 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, Special Agent in Charge George L. Piro of the FBI’s Miami Division and Special Agent in Charge Shimon Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.

Khaled Elbeblawy, 39, of Miramar, Florida, was convicted after trial of one count of conspiracy to commit health care fraud and wire fraud and one count of conspiracy to defraud the United States and pay health care kickbacks.

According to evidence presented at trial, Elbeblawy was the manager of Willsand Home Health Agency Inc. and the owner of JEM Home Health Care LLC and Healthy Choice Home Health Services Inc., all of which were home health agencies in Miami-Dade County.  The evidence showed that between January 2006 and May 2013, Elbeblawy and his co-conspirators used the three companies to submit approximately $57 million in false and fraudulent claims to Medicare that were based on services that were not medically necessary, were not actually provided and were for patients who were procured through the payment of kickbacks to doctors and patient recruiters.

The evidence introduced at trial showed that Medicare paid approximately $40 million on those claims.

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.  Assistant Chief Nicholas Surmacz and Trial Attorney Vasanth Sridharan of the Criminal Division’s Fraud Section are prosecuting the case, and former Trial Attorney Andrew Warren assisted in the prosecution.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 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 former uniformed police officer with the Miami Dade County Police Department pled guilty today to accepting bribes in furtherance of an illegal pirate towing scheme.

Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Juan Perez, Acting Director, Miami-Dade Police Department (MDPD), made the announcement. 

Yuri Millan, pleaded guilty to participating in a conspiracy against the laws of the United States, that is, engaging in a wire fraud scheme resulting in the deprivation of his honest services and accepting bribes in connection with his official duties at MDPD, an agency that receives federal funding, in violation of Title 18, United States Code, Section 371.  Millan’s codefendants, Oriel Ugardes, and Jose Guim, previously pled guilty to the same charge on January 13, 2016.

According to the court record, including documents filed in support of the defendants’ guilty pleas, between December 2013 and May 2014, Millan accepted bribes from Ugardes and Guim in exchange for Millan secretly using his position as a police officer to assist their towing businesses.  Millan would provide Ugardes and Guim information regarding and access to MDPD accident scenes, where Ugardes and Guim would illegally solicit stranded drivers for business.  In January 2014, after MDPD switched to an encrypted radio communication system, Millan agreed to rent his MDPD radio to Ugardes and Guim so that they could listen to encrypted police communications in an effort to locate accidents before their competitors.  Millan’s misconduct resulted in Ugardes and Guim illicitly acquiring more than $5,000 worth of business. 

The plot was uncovered through the use of recordings by confidential informants, wire intercepts on Ugardes’s telephone, and the seizure of Millan’s police radio from Ugardes after investigators watched Ugardes pick the radio up from Millan’s residence.  In their own separate plea agreements, Ugardes and Guim also admitted paying thousands of dollars of bribes to Millan and another former MDPD employee, Public Service Aide Elina Rodriguez. 

Millan, Ugardes, and Guim are scheduled to be sentenced on April 14, 2016, in front of U.S. District Court Judge Darrin P. Gayles.  Each defendant faces a maximum sentence of 5 years’ imprisonment and 3 years’ supervised release.  The court may also impose a maximum fine of $250,000. 

In December 2015, Rodriguez pled guilty to related federal conspiracy charges before U.S. District Court Judge Ursula Ungaro.  Rodriguez is scheduled to be sentenced in that case on February 22, 2016. 

Mr. Ferrer commended the investigative efforts of the FBI Miami Area Corruption Task Force and the MDPD Internal Affairs Division.  This case is being prosecuted by Assistant U.S. Attorney Anthony Lacosta. 

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 Pembroke Pines, Florida, couple pleaded guilty for conspiring to use stolen identities to file fraudulent tax returns with the Internal Revenue Service (IRS), announced U.S. Attorney Wifredo Ferrer of the Southern District of Florida, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and Special Agent in Charge Kelly R. Jackson of IRS-Criminal Investigation, Miami Field Office.                                                                                            

According to court documents, between July 2009 and August 2014, Walther Wilson Godfrey, 37; Rhonda Peggy Gittens, 35, and others conspired to defraud the United States by filing false federal income tax returns using stolen identities.  Gittens owned and operated 2G Inc., a tax return preparation business and G&G Check Cashing Inc., a check cashing business, both of which were located in Pembroke Pines.  Godfrey and Gittens obtained the personal identification information of actual individuals, some deceased, including names, social security numbers, addresses and dates of birth, without the individuals’ authorization and used this information to file false income tax refund claims for 2009 through 2011.  Gittens and Godfrey recruited a co-conspirator to obtain Electronic Filing Identification Numbers (EFINs) in his name that would be used to file the fraudulent income tax returns.  In addition, Godfrey and Gittens directed Brown to set up companies and bank accounts in his name in order to negotiate the fraudulently obtained income tax refund checks.  Godfrey and Gittens filed more than 700 fraudulent tax returns requesting more than $1.9 million in income tax refunds.  In addition, Godfrey and Gittens possessed device-making equipment including an identification card printer, a credit card embosser, hologram stickers for driver’s licenses and credit cards and blank credit cards.   

Godfrey and Gittens pleaded guilty to one count of a multi-object conspiracy to defraud the United States, commit wire fraud and commit aggravated identity theft, one count of aggravated identity theft and one count of access device fraud.  Both individuals face a statutory maximum sentence of five years in prison and three years of supervised release for the conspiracy charge, a statutory mandatory sentence of two years in prison and one year of supervised release for the aggravated identity theft charge and a statutory maximum sentence of 15 years in prison and three years of supervised release for the access device fraud charge.  Godfrey and Gittens must serve the two year sentence for aggravated identity theft in addition to any sentence the court imposes on the other charges.  Each charge also carries a maximum fine of $250,000.  The maximum statutory sentences are prescribed by Congress and are provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

U.S. Attorney Ferrer and Acting Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who investigated the case and Assistant U.S. Attorney Neil Karadbil of the Southern District of Florida and Assistant Chief Greg Tortella of the Tax Division, who prosecuted the case.

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

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

A Pembroke Pines, Florida, couple pleaded guilty for conspiring to use stolen identities to file fraudulent tax returns with the Internal Revenue Service (IRS), announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, U.S. Attorney Wifredo Ferrer of the Southern District of Florida and Special Agent in Charge Kelly R. Jackson of IRS-Criminal Investigation, Miami Field Office.

According to court documents, between July 2009 and August 2014, Walther Wilson Godfrey, 37; Rhonda Peggy Gittens, 35, and others conspired to defraud the United States by filing false federal income tax returns using stolen identities.  Gittens owned and operated 2G Inc., a tax return preparation business and G&G Check Cashing Inc., a check cashing business, both of which were located in Pembroke Pines.  Godfrey and Gittens obtained the personal identification information of actual individuals, some deceased, including names, social security numbers, addresses and dates of birth, without the individuals’ authorization and used this information to file false income tax refund claims for 2009 through 2011.  Gittens and Godfrey recruited a co-conspirator to obtain Electronic Filing Identification Numbers (EFINs) in his name that would be used to file the fraudulent income tax returns.  In addition, Godfrey and Gittens directed Brown to set up companies and bank accounts in his name in order to negotiate the fraudulently obtained income tax refund checks.  Godfrey and Gittens filed more than 700 fraudulent tax returns requesting more than $1.9 million in income tax refunds.  In addition, Godfrey and Gittens possessed device-making equipment including an identification card printer, a credit card embosser, hologram stickers for driver’s licenses and credit cards and blank credit cards.   

Godfrey and Gittens pleaded guilty to one count of a multi-object conspiracy to defraud the United States, commit wire fraud and commit aggravated identity theft, one count of aggravated identity theft and one count of access device fraud.  Both individuals face a statutory maximum sentence of five years in prison and three years of supervised release for the conspiracy charge, a statutory mandatory sentence of two years in prison and one year of supervised release for the aggravated identity theft charge and a statutory maximum sentence of 15 years in prison and three years of supervised release for the access device fraud charge.  Godfrey and Gittens must serve the two year sentence for aggravated identity theft in addition to any sentence the court imposes on the other charges.  Each charge also carries a maximum fine of $250,000.  The maximum statutory sentences are prescribed by Congress and are provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

Acting Assistant Attorney General Ciraolo and U.S. Attorney Ferrer commended special agents of IRS-Criminal Investigation, who investigated the case and Assistant U.S. Attorney Neil Karadbil of the Southern District of Florida and Assistant Chief Greg Tortella of the Tax Division, who prosecuted the case.

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

A Coconut Grove woman is charged with trafficking in counterfeit merchandise, bankruptcy fraud, and money laundering. 

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), Miami Field Office, made the announcement.

Tatiana F. Tascon, 40, of Coconut Grove, was charged by indictment with three counts of trafficking in counterfeit goods, in violation of Title 18, United States Code, Section 2320(a)(1);  two counts of bankruptcy fraud, in violation of Title 18, United States Code, Sections 152(1) and 152(2); and forty-five counts of money laundering, in violation of Title 18, United States Code, Section 1956(a)(1)(B)(i).  The defendant had her initial appearance today before the U.S. Magistrate Judge Patrick A. White, in Miami.

As alleged in the indictment and other court documents, the defendant trafficked in counterfeit goods, including high-end designer handbags, wallets and watches, out of a showroom in her Coconut Grove residence.  While trafficking in counterfeit goods, the defendant filed for and was ultimately granted Chapter 7 bankruptcy protection.  In her bankruptcy filings the defendant failed to report that she had earned over $700,000 from her illicit counterfeit goods business.  The defendant laundered the earnings from her illegal business through the bank accounts of third parties.

Mr. Ferrer commended the investigative efforts of ICE-HSI.  This case is being prosecuted by Assistant U.S. Attorneys Robert J. Emery, Daya Nathan, and Eloisa Fernandez.

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 or on http://pacer.flsd.uscourts.gov.

This afternoon, the U.S. Attorney’s Office for the Southern District of Florida hosted a community resilience forum that enabled members of law enforcement, concerned citizens and dozens of local leaders to discuss the immeasurable importance of citizen and law enforcement collaboration, in order to combat crime. 

Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Katherine Fernandez Rundle, Miami-Dade County State Attorney, Ari Sharpira, Assistant Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, Juan Perez, Acting Director, Miami-Dade Police Department (MDPD), Rodolfo Llanes, Chief, City of Miami Police Department, and Kareem Shora, Senior Policy Advisor and Chief of Community Engagement, U.S. Department of Homeland Security, made the announcement.

Law enforcement strives to combat internal and external national security threats, violent crime, firearms trafficking, gangs, illegal firearms purchases, gun violence, hate crimes, and acts of intimidation.  It is the duty of all law enforcement personnel to protect the community from danger.  Community policing is an avenue by which law enforcement can work toward crime prevention and detection. However, law enforcement’s ability to thwart, identify and prosecute these pervasive crimes requires community collaboration.  It is imperative that the community report criminal activity to law enforcement, take a stance against violence and illegal gun possession, and protect themselves from potential harm by strengthening the security of their person, residence and places of worship.  A community’s resilience depends on the fused forces of our federal, state and local law enforcement partners and the voices of our citizens. 

In order to continue this important dialogue and allow for substantive problem solving sessions, the U.S. Attorney’s Office will host future community resilience forums. 

Mr. Ferrer commends the collective efforts of the State Attorney’s Office, FBI, ATF, MDPD, City of Miami Police Department, U.S. Department of Homeland Security, concerned citizens, and local leaders to combat criminal conduct and support the resilience of our communities.   To learn more about the partnership to combat violence and support community initiatives, please contact (305) 961-9134 or visit usafls.vrp@usdoj.gov.  

A Palm Beach County man was sentenced yesterday to 27 months in federal prison, following his wire fraud and criminal contempt convictions.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Danny Banks, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), made the announcement.

 David Lee Ortiz, 39, of Palm Beach County, was sentenced by United States District Judge Robin L. Rosenberg in Fort Pierce, following his prior plea of guilty to telemarketing wire fraud, in violation of Title 18, United States Code, Section 1343 and contempt of court, in violation of Title 18, United States Code, Section 401(3).  

According to statements made in court and documents filed in the case, Ortiz committed online and telemarketing fraud in the form of fraudulent foreign exchange (forex) investment scams, via the internet and email, among other means. Ortiz collected from his victims approximately $420,000 through fraudulent websites and advertisements offering returns of 10% per month on forex contracts and currency trades.  Ortiz represented that investor funds would be kept in individual investor accounts for his clients, but they were in fact aggregated and commingled.  The defendant invested some of the money with losing forex positions at two licensed Futures Commission Merchants.  The remainder of the money Ortiz diverted for his own personal use.

To attract investors, Ortiz established internet websites. In July 2008, Ortiz set up “forexisgreatfor.me,” on which he falsely claimed to have over thirty years in forex trading experience, as well as that he was registered with the Securities and Exchange Commission.  In October 2009, Ortiz also established the website “forexfuturestrader.com,” again falsely claiming to provide daily updates accessible online for individualized investor accounts, as well as promising 100% returns within 12 months.

Ortiz misappropriated at least $232,000 by, for example, using the funds for personal shopping at retail department stores, travel, resort hotels, restaurants, utility bills, personal credit cards and car payments, and by sending, or having some customers send their funds directly, to Ortiz’s wife and her business, who also did not use those funds for forex trading.  Between 2008-2011, Ortiz solicited and accepted investments from clients, placed the monies in accounts he personally controlled, invested some of it in losing forex trades, and used the remainder for personal purchases.   Ortiz created false account statements, purporting to show the clients that they were making profits on imaginary forex contracts placed for them by Ortiz.  When customers tried to recover all or part of their monies, usually in accordance with withdrawal provisions of a written contract which Ortiz had them sign, they regularly met evasion or delay from Ortiz.

The Commodity Futures Trading Commission (CFTC) investigated Ortiz, and filed a civil enforcement action against him in the Southern District of Florida in February 2011. The CFTC sought Court orders directing rescission of the investment contracts and return to the investors of all their monies.  Chief United States District Judge K. Michael Moore signed a permanent injunction against Ortiz on June 30, 2011, directing Ortiz to return the investors’ money and rescind all the investment contracts. The injunction also forbade Ortiz from soliciting or accepting funds from any future investors.

During July and August 2011, Ortiz nonetheless continued to solicit and accept funds from investors. In particular, he met with and took $2,800 from a retired Air Force employee living in Odessa, Texas.  Twice in September 2011, Ortiz emailed the investor false account statements purporting to show gains and profits from forex trades.  The CFTC filed a motion for civil contempt against Ortiz for his failure to abide by the permanent injunction.  On June 4, 2012, Chief Judge Moore held an evidentiary hearing on the civil contempt motion, at which Ortiz appeared pro se.  Following the hearing, the CFTC filed a joint proposed agreed order (which the Court approved and entered on June 6, 2012) setting forth a timetable for Ortiz to submit a sworn accounting and repayment of monies, no later than August 6, 2012.  On August 6, 2012, Ortiz filed a document with the Court, stating that he had received the $2,800 from the Texas investor, but that Ortiz was unable to comply and pay any monies to the aggrieved investors. 

Mr. Ferrer commended the investigative efforts of the CFTC, FDLE, FBI, and the Palm Beach County Sheriff’s Office.  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 Miami resident pled guilty 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, Miami Division, made the announcement.

Ronel Junior Lamour, 25, 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. At sentencing, Lamour faces 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, 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.

A Palm Beach County man is charged with fraudulently using his father’s identity to collect unauthorized Social Security and pension retirement benefits, knowing of his father’s unreported murder. 

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Sheriff Ric. L. Bradshaw, Palm Beach County Sheriff's Office (PBSO), Margaret Moore-Jackson, Special Agent in Charge, Social Security Administration, Office of Inspector General (SSA-OIG), 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. 

Jason Henry Davis, 37, of West Palm Beach, Florida, was charged with eight counts of wire fraud, in violation of Title 18, United States Code, Section 1343; one count of access device fraud, in violation of Title 18, United States Code, Section 1029(a); twelve counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A; and two counts of making a false statement to a government agency, in violation of Title 18, United States Code, Section 1001. The defendant had his initial appearance earlier today, January 20, 2016 before the Honorable United States Magistrate Judge William Matthewman, in West Palm Beach.  He is scheduled for a pretrial detention hearing on January 27, 2016. 

As alleged in the indictment, on April 18, 2013, the skeletal remains of Henry T. Davis, Jr., the father of defendant Jason Davis, were found in the backyard of the Lantana, Florida residence where Henry Davis had lived with the defendant and his ex-wife, Jason Davis’ mother.  The indictment alleges that Jason Davis was present when his father was murdered, as early as 2008, and failed to report his death to the authorities.  Jason Davis then assumed his father’s identity in order to collect approximately $1,500 in monthly Social Security and HUD funded pension retirement benefits.  The defendant also failed to report his receipt of these funds to the Department of Agriculture in order to fraudulently obtain food assistance benefits.  As a result of his fraudulent scheme, the defendant collected approximately $120,000 in federally-funded benefits which he was not personally qualified to receive.

Mr. Ferrer commended the investigative efforts of the Palm Beach County Sheriff’s Office Homicide Unit and Public Assistance Fraud Task Force, SSA-OIG, HUD-OIG, and USDA-OIG.  This case is being prosecuted by Assistant U.S. Attorneys Carolyn Bell and Adam McMichael.

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

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

Two Broward County residents pled guilty for their involvement 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), Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, and Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), made the announcement.

Stacy A. Gaines, 39, and Nicaya T. Cooper, 35, both of Tamarac, each pled guilty to one count of mail fraud conspiracy, in violation of Title 18, United States Code, Section 1349. As part of their plea agreements, Gaines and Cooper agreed to restitution in the amounts of $266,866.39 and $284,162.49, respectively. At sentencing, the defendants each face a maximum statutory sentence of twenty years in prison. 

According to court documents, Cooper opened two bank accounts and gave Gaines access to those accounts to deposit various fraudulent tax refunds. Gaines also opened a bank account in her name for the purpose of depositing additional fraudulent tax refunds.  From February 2010 through May 2013, Gaines mailed 139 fraudulent tax returns to the IRS seeking refunds in the amount of $299,433.88 by utilizing the personal identification information (PII) of various individuals. Gaines and Cooper received approximately $279,866.39 in fraudulent refunds from the IRS based upon the fraudulent returns. The true taxpayers did not give Gaines or Cooper permission to file fraudulent tax returns on their behalf.

Gaines is scheduled to be sentenced on March 22, 2016 at 1:15 p.m. and Cooper is scheduled to be sentenced on March 31, 2016 at 1:15 p.m., both before U.S. District Judge William P. Dimitrouleas.

Mr. Ferrer commended the investigative efforts of IRS-CI, the USSS South Florida Organized Fraud Task Force (SFOTF), and BSO.  The case is being prosecuted by Assistant U.S. Attorney Alicia E. Shick.

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.

Tywan McGee, 24, of Miami, was sentenced yesterday by U.S. District Judge Kathleen M. Williams to 15 years’ imprisonment for his role in an armed robbery and carjacking conspiracy.  His co-defendants, Alan Agnew, 22, and Jamal McMillan, 19, both of Miami, were recently sentenced to 25 years’ and 9 years’ imprisonment for their roles in the conspiracy.

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 J.D. Patterson, Director, Miami-Dade Police Department (MDPD), made the announcement.

Agnew previously pled guilty to two armed robberies, in violation of Title 18, United States Code, Section 1951(a); three carjackings, in violation of Title 18, United States Code, Section 2119(1); and the use of a firearm during a crime of violence, in violation of Title 18, United States Code, Section 924(c).  McGee previously pled guilty to two armed robberies and one carjacking, as well as the use of a firearm during a crime of violence.  McMillan previously pled guilty to one armed robbery, one attempted carjacking, and the use of a firearm during a crime of violence.

According to court documents, between August 10, 2014 and September 7, 2014, one or more of the defendants participated in six different armed robberies and carjackings, all of which occurred in the Little River area of Miami.  The victims included taxi cab drivers, a fast food delivery driver, and individuals whom the defendants contacted over Facebook. 

Mr. Ferrer commended the investigative efforts of ATF and MDPD for their work on this case.  The case was prosecuted by Assistant U.S. Attorneys Olivia S. Choe and Benjamin Widlanski.

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 health care clinic consultant and Medicare biller pleaded guilty today in connection with a $63 million health care fraud and money laundering scheme involving a defunct Miami-area health care provider. 

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

Nery Cowan, 53, of Miami, pleaded guilty before U.S. District Judge Beth Bloom of the Southern District of Florida to one count of conspiracy to commit money laundering.  Cowan will be sentenced by Judge Bloom on March 25, 2016.  

According to the factual basis, Cowan served as a consultant and Medicare biller for Greater Miami Behavioral Healthcare Center Inc. (Greater Miami), a partial hospitalization program (PHP) that purported to provide intensive treatment for severe mental illness, where Cowan directed the payment of kickbacks to patient brokers and others in exchange for Medicare beneficiary referrals.  Cowan admitted that she received a percentage of the Medicare reimbursement from Greater Miami’s PHP as compensation.                                                                                            

Cowan admitted that she, along with co-defendants Dean Butler and Irina Mora, took great lengths to conceal kickback payments to shell companies owned by “patient brokers” who, on behalf of Greater Miami, solicited Medicare beneficiaries from assisted living facilities, halfway houses and drug courts located throughout the Southern District of Florida.  Cowan, Butler and Mora disguised these monthly kickbacks as “outreach” or “marketing” payments through HNB-Stell Care Inc., a sham staffing company, she admitted. 

According to court documents, from 2006 through 2014, Greater Miami billed Medicare approximately $63 million for purported mental health services.

On Nov. 30, 2015, Judge Bloom sentenced Butler to 16 years in prison and Mora to nine years in prison following their guilty pleas.

The FBI and HHS-OIG investigated this case, which was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division's Fraud Section and the U.S. Attorney's Office for the Southern District of Florida.  Assistant Chief Allan J. Medina and Trial Attorneys Elizabeth Young and Kelly Graves of the Fraud Section 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 nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 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 former health care clinic consultant and Medicare biller pleaded guilty today in connection with a $63 million health care fraud and money laundering scheme involving a defunct Miami-area health care provider. 

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

Nery Cowan, 53, of Miami, pleaded guilty before U.S. District Judge Beth Bloom of the Southern District of Florida to one count of conspiracy to commit money laundering.  Cowan will be sentenced by Judge Bloom on March 25, 2016.  

According to the factual basis, Cowan served as a consultant and Medicare biller for Greater Miami Behavioral Healthcare Center Inc. (Greater Miami), a partial hospitalization program (PHP) that purported to provide intensive treatment for severe mental illness, where Cowan directed the payment of kickbacks to patient brokers and others in exchange for Medicare beneficiary referrals.  Cowan admitted that she received a percentage of the Medicare reimbursement from Greater Miami’s PHP as compensation.

Cowan admitted that she, along with co-defendants Dean Butler and Irina Mora, took great lengths to conceal kickback payments to shell companies owned by “patient brokers” who, on behalf of Greater Miami, solicited Medicare beneficiaries from assisted living facilities, halfway houses and drug courts located throughout the Southern District of Florida.  Cowan, Butler and Mora disguised these monthly kickbacks as “outreach” or “marketing” payments through HNB-Stell Care Inc., a sham staffing company, she admitted. 

According to court documents, from 2006 through 2014, Greater Miami billed Medicare approximately $63 million for purported mental health services.

On Nov. 30, 2015, Judge Bloom sentenced Butler to 16 years in prison and Mora to nine years in prison following their guilty pleas.

The FBI and HHS-OIG investigated this case, which was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division's Fraud Section and the U.S. Attorney's Office for the Southern District of Florida.  Assistant Chief Allan J. Medina and Trial Attorneys Elizabeth Young and Kelly Graves of the Fraud Section 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 nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 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.  

Ronnie Razz, a resident of West Palm Beach, was sentenced to 15 years in prison by U.S. District Judge Kenneth Marra, following his guilty plea to being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g) and 924(e).

Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, David Aronberg, State Attorney, Palm Beach County State Attorney’s Office, Carlos A. Canino, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO), made the announcement. 

According to court records, a stolen firearm was recovered after Razz fled from law enforcement in early January 2015.  Razz was arrested later that month pursuant to a warrant.  During the subsequent search of the residence in which Razz was arrested, law enforcement discovered a second stolen firearm and a controlled substance (“Flakka”).  A forensic analysis identified the defendant’s DNA on the firearm and narcotics discovered in the residence.   On September 30, 2015, Razz pled guilty to possession of both recovered firearms.  Razz, was previously convicted of state felony offenses, including robbery with a weapon, aggravated battery and sale of cocaine within 1000 feet of a place of worship or convenience business.

This case is, in large part, the result of the Project Safe Neighborhood Partnership, launched by the U.S. Attorney’s Office for the Southern District of Florida.  Through this Partnership, the U.S. Attorney’s Office and its federal, state 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 youth, provide job training and family services, and help individuals who have completed their federal and state prison sentences to successfully re-enter society.

Mr. Ferrer and Mr. Aronberg commended the investigative efforts of the ATF and PBSO.  This case was prosecuted by Special Assistant U.S. Attorney Gregory Schiller from the Palm Beach County State Attorney’s Office.

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 is charged with using unauthorized personal identification information to facilitate a credit card fraud scheme.

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

Kesner Joaseus, 46, of Wellington, FL, was charged by criminal complaint with aggravated identity theft, access device fraud, and bank fraud, in violation of Title 18, United States Code, Sections 1028A, 1029(a)(2) and 1344 (Case No. 15-CR-8006).  If convicted, Joaseus faces up to 30 years in prison and up to $1 million in fines on the bank fraud charge, up to 10 years in prison and $250,000 in fines on the access device fraud charge, and two years in prison on the aggravated identity theft charge, to run consecutively to any other sentence imposed.

According to the criminal complaint, Joaseus used the personal identifiers, including the date of birth and Social Security number, of several victims to fraudulently obtain credit cards and then used the unauthorized cards to purchase merchandise and withdraw cash at various locations in Palm Beach County and elsewhere.  The unauthorized merchandise purchases included two Mercedes-Benz automobiles.  The total fraud loss resulting from the fraudulent scheme is estimated at over $260,000. 

Mr. Ferrer commended the investigative efforts of the USPIS.  This case is being prosecuted by Assistant U.S. Attorney Lauren Jorgensen.

A complaint is only an accusation and a 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.

Three Palm Beach County residents are charged with running a fraudulent rental property scheme that caused the true property owner to sustain financial losses of hundreds of thousands of dollars.   

Wifredo A. Ferrer, U.S. 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, Sean Scheller, Chief of Police for the Town of Lantana, Florida, and Delany De-Leon Colon, Inspector in Charge, United States Postal Inspection Service, Miami Division, made the announcement.

Kesner Joaseus, 46, of Wellington, FL, Wadno Dorneau, 36, of West Palm Beach, and Miguel Tilus, 54, of Lake Worth, were charged by criminal complaint for their participation in a fraud scheme from November 2014 through January 2016.   The defendants are charged with conspiracy to commit mail fraud, mail fraud, in violation of Title 18, United States Code, Sections 1341 and 1349 (Case No. 16-CR-8005).  The defendants each face up to 20 years imprisonment, up to $250,000 in fines and mandatory restitution, on each count of conviction.  Detention hearings have been scheduled for each defendant on January 19, 2016 in West Palm Beach.

According to court documents, a legitimate real estate investment trust based in Georgia, RHA 2, LLC, owns dozens of properties in Palm Beach and Broward Counties that it leases out as residential single family homes.  This company operates as HavenBrook Homes.  From November 2014 through the present, Joaseus, Dorneau and Tilus have conspired to use a similar company name, “RHA Two, LLC,” to illegally take possession of and rent the homes lawfully owned by HavenBrook by assuming the legitimate company’s identity.

In order to facilitate the fraud scheme, the defendants identify and monitor the status of homes being renovated by HavenBrook.  When construction is nearing completion, the defendants remove the lockbox from a targeted home and call a locksmith to change the locks.  After having the locks changed, sometimes within hours, the defendants place signs in high traffic areas advertising a home for rent and post one of several prepaid cellular telephone numbers.

When individuals seeking to rent a house call the listed numbers, one of the defendants arranges to meet the prospective renter at the property, presents the renter with fraudulent leases with a counterfeit “HavenBrook Homes” logo, and collects thousands of dollars in money orders or cash, purportedly for the security deposit, as well as the first and last month’s rent.  In this manner, the defendants collected purported lease payments from dozens of tenants of houses owned by which the defendants had no right to possess.

During the course of the fraud scheme, at least 80 homes owned by HavenBrook Homes were taken over by the defendants, causing the company to sustain approximately $100,000 a month in rental income losses.

Mr. Ferrer commended the investigative efforts of the ICE-HSI, Lantana Police Department, and USPIS.  This case is being prosecuted by Assistant U.S. Attorney Lauren Jorgensen.

A complaint is only an accusation and a 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.

A Broward County Resident was sentenced to 63 months in prison, to be followed by five years of supervised release, and was ordered to pay restitution in the amount of $119,080.95 for his participation in an extensive identity theft tax refund 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 George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.

Dezman Dunbar Zama, 34, of Fort Lauderdale, previously pled guilty to one count of conspiracy to commit wire fraud, one count of conspiracy to commit bank fraud, and one count of aggravated identity theft, in violation of Title l8, United States Code, Sections 1343, 1344, 1349 and 1028A.

Co-defendant Brandi Mary Janice Stroman, 30, of Oakland Park, was sentenced on October 14, 2015 to 61 months in prison, to be followed by five years of supervised release, and was ordered to pay restitution in the amount of $119,080.95. Stroman previously pled guilty to one count of conspiracy to commit wire fraud, one count of conspiracy to commit bank fraud, one count of aggravated identity theft, and one count of conspiracy to commit mail fraud, in violation of Title l8, United States Code, Sections 1343, 1344, 1349, 1028A, 1341 and 1349. 

Co-defendant Jerrod Dashon Bosket, 26, of Orlando, previously pled guilty to one count of unauthorized use of an access device and one count of aggravated identity theft, in violation of Title 18, Sections 1029(a)(2) and 1028A. On September 23, 2015, he was sentenced to time served.

According to court documents, from March 2012 through August 2012, Stroman obtained the bank account information of Zama and Jerrod Bosket. Stroman then provided the bank account information to another individual who filed false tax returns using the personally identifiable information (PII) of patients of a medical services provider. The fraudulent refunds from these tax returns were deposited into one of the bank accounts controlled by Zama, Jerrod Bosket, or others. After the money was deposited into the account, Stroman contacted the co-defendants and directed them to withdraw the funds. During the course of the conspiracy, at least 27 false returns were filed requesting $105,313 in fraudulent refunds. Each one of the 27 false returns listed one of the defendant’s bank account numbers.

Court documents also state that a member of the conspiracy obtained the names, Social Security numbers, and bank account numbers of three other individuals.  A member of the conspiracy transferred or attempted to transfer $62,000, $92,716, and $135,482.46, respectively, from these three individuals’ bank accounts into a bank account controlled by Stroman or Zama.  Stroman and Zama then withdrew or attempted to withdraw the transferred funds. Four fraudulent tax refunds in the name of incarcerated individuals were also deposited into Stroman’s bank account.

Mr. Ferrer commended the investigative efforts of the Identity Theft Strike Force, with special commendation to IRS-CI and the FBI.  This case is being prosecuted by Assistant U.S. Attorney Cynthia R. Wood.

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.

Bryan Sainte-Rose, 39 of Plantation, Florida, was sentenced to 54 months in prison, to be followed by three years of supervised release for supplying personal identifying information (PII) to other individuals who were involved 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), George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and William Hernandez, Chief, North Miami Beach Police Department (NMBPD), made the announcement.

Sainte-Rose previously pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Sections 1029(a)(3) and 2, 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, law enforcement learned that an Electronic Filing Identification Number (EFIN) was used to file 345 tax returns from January 23, 2014 through February 26, 2014 from an address in North Miami, Florida requesting approximately $1,151,482 in tax refunds. The EFIN was assigned to “L.W.,” who incorporated a business called Lil Mama Tax Services. These tax returns contained numerous indicators of identity theft tax fraud, including repeat addresses, the use of deceased or incarcerated individuals, taxpayers under the age of eighteen, and numerous repeated occupations.

On June 11, 2014, law enforcement executed a search warrant at the address used to file the returns. Inside the premises was an office containing evidence indicative of tax fraud: printers, tax documents, notepads containing lists of personal identifying information or “PII” (including the Social Security numbers of more than 15 individuals), stacks of pre-paid debit cards with account numbers, laminate material used for making false identification cards, and two fraudulent State of Florida driver's licenses.  On a sheet of paper was EFIN information used to file income taxes, including taxes filed by Lil Mama Tax Services.  Also found at the location was electronic equipment used to access the Internet.

Mr. Ferrer commended the investigative efforts of IRS-CI, FBI and NMBPD.  This case was 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.

The president of a Miami-based transportation company was convicted today for his role in a health care fraud scheme involving three mental health centers based in Miami 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, Special Agent in Charge George L. Piro of the FBI’s Miami Division and Special Agent in Charge Shimon Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.

Damian Mayol, 43, of Miami, was convicted after trial of one count of conspiracy to pay health care kickbacks. 

According to evidence presented at trial, Mayol was the president of Transportation Services Providers Inc., a transportation company based in Miami.  The evidence showed that Mayol and 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.  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 October 2015, co-defendants Santiago Borges, Erik Alonso and Cristina Alonso pleaded guilty to related charges and were sentenced in December 2015 to prison terms ranging from 28 months to 120 months. 

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

Four Miami-Dade residents have been indicted for their participation in various schemes to defraud the United States government. 

Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Shimon Richmond, Special Agent in Charge, Health and Human Services, Office of Inspector General (HHS-OIG), Pam Bondi, Florida Attorney General, Margaret Moore-Jackson, Special Agent in Charge, Social Security Administration, Office of Inspector General (SSA-OIG), Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Linda M. Swacina, District Director, U.S. Citizenship and Immigration Services (USCIS), made the announcement.

Fernando Mendez Villamil, 48, of South Miami, Maritza Exposito, 57, of Miami, Arnaldo Oscar Jimenez, 57, of Hialeah, and Yomara Vila, 45, of Miami were charged in a twenty-one count indictment for their participation in a scheme to defraud Medicare, Medicaid, the United States Social Security Administration (“SSA”), and the United States Citizenship and Immigration Services (“USCIS”).   The defendants are charged with conspiracy to commit health care fraud and wire fraud, substantive counts of health care fraud, conspiracy to defraud the United States and make false statements with respect to immigration matters, conspiracy to defraud the government with respect to claim, theft of government funds, false statements to SSA, and making false statements with respect to immigration matters.

The indictment alleges that the defendants submitted and caused the submission of false and fraudulent claims to Medicare and Medicaid, made false and fraudulent statements and representations to the SSA regarding the medical treatment and condition of SSA disability benefits applicants and recipients, and made false and fraudulent statements and representations to USCIS regarding the status, medical treatment, and medical condition of applicants for immigration benefits. 

The indictment alleges multiple types of fraudulent practices occurred at the Miami-Dade medical office of Fernando Mendez Villamil, a State of Florida licensed psychiatrist authorized to provide health care services to Medicare and Medicaid beneficiaries.  The defendants, in exchange for money, offered to aid and aided others to fraudulently apply for and receive SSA disability benefits.  Defendant Villamil provided individuals false and fraudulent diagnoses of debilitating psychiatric conditions so that the individuals could fraudulently obtain SSA disability benefits, Medicare and Medicaid benefits.

The indictment also alleges that the defendants submitted or caused the submission of false statements with respect to a material fact in applications and documents required by  immigration laws and regulations, which contained false statements with respect to a material fact, namely medical certifications for disability exceptions to the English and or civic requirements to the U.S. Naturalization process. 

Mr. Ferrer commended the investigative efforts of the Medicare Fraud Strike Force and participating partners, including HHS-OIG, SSA-OIG, the State of Florida’s Medicaid Fraud Control Unit, ICE-HSI, FBI, and USCIS.  The case is being prosecuted by Assistant U.S. Attorney Eric E. Morales and Special Assistant United States Attorney Hagerenesh Simmons. 

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 or on http://pacer.flsd.uscourts.gov.

A North Miami Beach resident pled guilty 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), 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), Jesse Panuccio, Executive Director, Florida Department of Economic Opportunity (DEO), and J. Scott Dennis, Chief, North Miami Beach Police Department (NMBPD), made the announcement.

Daiman Williams, 23, 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). At sentencing, Williams faces 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, on or about January 18, 2013, a state probation compliance check was performed on Williams at his residence in North Miami Beach, FL. During the compliance check of Williams’ residence, officers found a Toshiba laptop that contained a list of personal identifying information (PII). A forensic examination of the laptop revealed a series of documents containing over two thousand (2,000) pieces of PII, which included the names, Social Security numbers, and dates of birth for hundreds of school teachers and medical patients. In addition, credit reports, tax returns, and other miscellaneous PII were found in the laptop.  Further investigation revealed that several of the individuals identified from the laptop had been victims of identity theft related to the fraudulent filing of their federal income tax returns.

On or about August 26, 2014, another state probation compliance check was performed on Williams at his residence.  In connection with the compliance check, law enforcement searched Williams’ phone and found a video of the defendant holding a firearm and then storing the firearm in the trunk of a white Lexus vehicle.  The vehicle was found in the driveway of Williams’ residence.  Officers opened the trunk of the vehicle and discovered the firearm, ammunition and PII for more than 50 individuals, including names, dates of birth and Social Security numbers of homeowners’ insurance applications and completed income tax forms.

The intended loss to the government was $643,205.

Williams is scheduled to be sentenced on March 17, 2016 at 9:30 a.m. before United States District Judge Federico A. Moreno.

Mr. Ferrer commended the investigative efforts of IRS-CI, DOL-OIG, DEO, and the NMBPD.  The case is being prosecuted by Assistant U.S. Attorney Miesha Shonta Darrough.

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

After a two day hearing, three Tampa residents were sentenced for their participation in a conspiracy to import synthetic cannabinoids, a/k/a “Spice,” to the United States from China, by U.S. District Court Judge Donald M. Middlebrooks in West Palm Beach, Florida.

Wifredo A. Ferrer, U.S. 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, A.D. Wright, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division, and Delany E. De Leon-Colon, Acting Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, made the announcement. 

Saiful Hossain, 28, was sentenced to 120 months incarceration, to be followed by 3 years of supervised release.  Hossain was also ordered to forfeit assets totaling over $1.5 million and real property in St. Petersburg, Florida.  

Ahmed Yehia Khalifa, 28, was sentenced to 96 months incarceration, to be followed by 3 years of supervised release and Ahmed Maher Elhelw, 25, was sentenced to 36 months incarceration, to be followed by 3 years supervised release.  Khalifa and Elhelw were also ordered to forfeit assets totaling $472,780.00.  

The defendants previously pled guilty to conspiracy to import a Schedule 1 controlled substance (XLR-11) and conspiracy to manufacture, possess with intent to manufacture and distribute a Schedule 1 controlled substance (XLR-11). 

According to court records, U.S. Customs and Border Protection (CBP) Officers in New York identified, searched and detained twelve U.S. Postal Service (USPS) parcels, destined for Indian River and Palm Beach Counties, in the Southern District of Florida.  Each of the parcels was shipped from China and contained three kilogram packages of a controlled substance, XLR-11 a chemical used in the manufacture of smokable synthetic cannabinoids (SSC).  The parcels were mailed to separate private mailboxes, with defined street addresses, located at mailbox service centers in Indian River and Palm Beach Counties.

The court records further indicate that SSC products, commonly known as “Spice,” are a mixture of an organic “carrier” medium, such as the herb-like substance damiana leaf and/or marshmallow leaf, which is then typically sprayed or mixed with a synthetic cannabinoid chemical compound which mimics the pharmacological effect of the a Schedule I controlled substance, THC.  This organic “carrier” is then commonly sprayed with a tobacco flavoring such as strawberry, blueberry, or pineapple, in order to mask the harsh chemical taste upon ingestion.  Currently, there are hundreds of synthetic cannabinoid compounds.

Mr. Ferrer commended the investigative efforts of ICE-HSI, DEA, USPIS, U.S. Customs and Border Protection, the Hillsborough County Sheriff’s Office, the Tampa Police Department, and the Indian River County Sheriff’s Office.  This case is being prosecuted by Assistant U.S. Attorneys Carmen Lineberger and Antonia Barnes.

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.

Lukner Blanc, 33, of Royal Palm Beach, was sentenced to 192 months in prison, to be followed by three years of supervised release, and was ordered to pay joint and several restitution in the amount of $733,563 for his role in a massive identity theft tax refund 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), Ric Bradshaw, Sheriff, Palm Beach County Sherriff’s Office, and Amos Rojas, Jr., United States Marshals, United States Marshals Service Regional Fugitive Task Force, made the announcement.

After a ten day trial, Blanc and co-defendant Benoit Placide, a/k/a “Snow,” a/k/a “Mario,” 27, of West Palm Beach, were each convicted of conspiracy to receive, conceal or retain monies stolen from the United States, wire fraud, and aggravated identity theft.  Blanc was also convicted of receiving, concealing and retaining monies stolen from the United States.  On October 5, 2015, co-conspirator Benoit Placide was sentenced to 120 months in prison, to be followed by three years of supervised release, and was ordered to pay joint and several restitution in the amount of $742,955.

At trial, the government presented evidence that the federal investigation began with the arrest of Blanc, on October 29, 2012, for an unrelated state crime. Agents recovered four bank debit cards out of Blanc’s pants pocket, all in the names of other persons.  While incarcerated in the state case, Blanc made recorded calls from the Palm Beach County Jail.  Based on information obtained during the course of the monitored and recorded jail calls, law enforcement officials obtained a state search warrant for the residence of co-conspirator Jean Juste, a/k/a “Junior,” a/k/a “Shorty,” 26, of West Palm Beach.  Inside Juste’s residence, agents discovered items used to facilitate identity theft crimes, including computers, more than sixty-nine Western Union debit cards, lists of employers, and the names, Social Security numbers, and dates of birth of various individuals.  During the course of the investigation, law enforcement learned that Blanc and Juste were associates in the identity theft fraud scheme, alongside co-conspirator Placide. 

During the course of the identity theft fraud scheme investigation federal agents obtained additional warrants to search the computers recovered from Juste’s residence.  Forensic examinations of the computers revealed that more than 1,000 fraudulent federal personal income tax returns had been filed using the operating system.  The returns were submitted over the internet to the Internal Revenue Service (“IRS”) using TaxHawk.com and TurboTax.  Co-conspirators of the fraud scheme opened bank accounts in Florida, in order receive the fraudulently obtained federal income tax refunds. 

The co-conspirators attempted to obtain more than $1,200,000 in fraudulent, unauthorized income tax refunds.  As a result of the fraudulent scheme, the government was induced to pay out more than $730,000 in unauthorized refunds that were later determined to have been filed by the co-conspirators and not the legitimate taxpayers.  The co-conspirators received the fraudulent tax refund payments, which were sent to bank accounts and pre-paid debit cards they controlled.  After the fraudulent refunds were sent by wire transfer to the bank accounts and debit cards, the defendants and their co-conspirators withdrew the funds at automatic teller machines (ATMs) and point of sale electronic terminals at various retail establishments.

Co-conspirator Jean Juste previously pled guilty to conspiracy, theft of government funds, wire fraud, and aggravated identity theft.  On February 17, 2015, Juste was sentenced to 84 months in prison, followed by three years of supervised release, and was ordered to pay restitution in the amount of $668,947 for his participation in the conspiracy.

Co-conspirator Shelda Phadael, 29, of Lake Worth, previously pled guilty to conspiracy and theft of government funds.  On May 29, 2015, Phadel was sentenced to 18 months in prison, followed by 3 years of supervised release, and was ordered to pay restitution in the amount of $13,327.

Co-Conspirators Marie Claude, 27, of Lantana, and Marie Demesyeux, 31, of Lake Worth, previously pled guilty. On April 16, 2015, both defendants were sentenced to time served.

Co-conspirator Frank Fleuzinord, 30, of Cape Coral, is a fugitive.

Mr. Ferrer commended the investigative efforts of IRS-CI, the United States Marshals Service Regional Fugitive Task Force, and the Palm Beach County Sheriff’s Office.  This case was prosecuted by Assistant U.S. Attorney Stephen Carlton.

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 resident was sentenced to 30 years in prison by United States District Judge Jose E. Martinez for sexually exploiting a child and producing child pornography.

Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, and William D. Snyder, Sheriff, Martin County Sheriff's Office (MCSO), made the announcement. 

On April 15, 2015, Eric Leon Gauthier, 54, of Jensen Beach, pled guilty to a single count indictment, which charged him with sexual exploitation of a child and production of child pornography, in violation of Title 18, United States Code, Sections 2251(a), (e).  Gauthier was sentenced to the statutory maximum term of incarceration, 360 months in prison.  After his release from incarceration, Gauthier will be placed on supervised release for the remainder of his life and was ordered to register as a sex offender.

According to court documents and information disclosed during court proceedings, on October 13, 2014, MCSO detectives received a complaint from a 15 year old male, who reported that Gauthier had encouraged and actively promoted sexual activity between the minor male and a 15 year old female.  The promotion included transporting the minors to several locations, under Gauthier’s ownership, in order for them to engage in sexual activity.  This complaint ultimately led to the examination of a number of digital devices, which were found to contain images and videos, surreptitiously recorded by Gauthier, without the knowledge of the teenage couple.  On November 26, 2014, MCSO detectives and FBI agents executed search warrants at three of Gauthier’s properties, located in Martin and St. Lucie Counties, and discovered a variety of digital devices.  One item, a personal computer that was discovered in Gauthier’s warehouse, was found to contain images of the minor couple engaging in sexually explicit conduct. 

Mr. Ferrer commended the investigative efforts of the FBI and MCSO.  This case was prosecuted by Assistant U.S. Attorney Carmen Lineberger.

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

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 bank vice president was sentenced to 30 months in prison, in connection with the Rothstein case.

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 George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement. 

Frank Spinosa, 54, of Ft. Lauderdale was sentenced today in Miami by United States District Judge Beth Bloom to 30 months in prison, to be followed by one year of supervised release.  On October 8, 2015, Spinosa pled guilty to conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 371, in connection with the operation of the former Fort Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA). 

According to court records, including a stipulated statement of facts filed in connection with Spinosa’s guilty plea, in 2009 it was discovered that RRA was being utilized by its Chairman and Chief Executive Officer, Scott W. Rothstein, to commit a massive Ponzi scheme stemming from the sale of fictitious confidential settlements.  Spinosa, who, at the time, was a Regional Vice President with TD Bank, admitted that he conspired with Rothstein to induce certain persons into investing money in the confidential settlements through material misstatements by defendant Spinosa.  Specifically, Spinosa and Rothstein agreed to utilize the prestige and legitimacy of TD Bank, and Spinosa’s position as Regional Vice President, to give investors in the scheme a false sense of security and induce them into investing in the confidential settlements by fraudulently creating documents that made it appear that certain investment funds were being held in restricted accounts at TD Bank when, in fact, they were not.  

Mr. Ferrer commended the investigative efforts of IRS-CI and the FBI.  This case is being prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, and Jeffrey N. Kaplan.

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 Dania Beach businessman pled guilty to trafficking in elephant ivory.

Wilfredo A. Ferrer, United States Attorney for the Southern District of Florida, Ed Grace, Deputy Assistant Director, U.S. Fish and Wildlife Service (FWS), Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, and Delany E. De Leon-Colon, Acting Inspector in Charge, U.S. Postal Inspection Service (USPIS), made the announcement.

Raymond J. Reppert, Jr., 54, of Dania Beach, Florida, pled guilty today in U.S. District Court in Miami to knowingly making and causing to be made false records, accounts, labels for, and false identifications of wildlife, that is elephant ivory, by creating and causing to be created documents falsely identifying elephant ivory as resin carvings and wood samples, said elephant ivory having been and intended to be transported in interstate and foreign commerce, in violation of Title 16, United States Code, Sections 3372(d)(2) and 3373(d)(3)(A)(i), and Title 18, United States Code, Section 2.  Reppert faces a maximum statutory sentence of 5 years’ imprisonment, up to three years of supervised release and a fine of up to $250,000.   The defendant is scheduled to be sentenced in Miami before U.S. District Judge Kathleen M. Williams February 25, 2016.

According to court documents, including a joint factual proffer, Reppert was doing business as Raymie’s Commercial & Residential Moving (Raymies), a packing and shipping company specializing in antiques and located in Dania Beach, Florida,.

On February 14, 2014, U.S. Customs and Border Protection (CBP) officers at the Miami International Mail Facility identified a parcel being exported from the United States, which was referred to the Fish and Wildlife Service for inspection.  An FWS Wildlife Inspector determined that the package, being mailed to Guangdong, China, contained elephant ivory.  The sender listed a Dania, FL address. The accompanying Customs Declaration and Dispatch Note (Postal Service Form 2976-A) completed by the sender described the contents as “resin carvings” with a declared value of $60.   The investigation revealed that the return address was invalid.

A search of a CBP database located over 245 matching records, including shipments from a post office in Pompano Beach, Florida.  USPIS inspectors verified that the name and return addresses for those shipments were also false.  The investigation revealed that a postal clerk knew the sender as “Raymie,” a regular customer who shipped parcels for other people as part of his business.

On February 20, 2014, CBP detained a second parcel consigned to the address in Guangdong, China.  The customs declaration form described the item as a “resin carving” with a declared value of $60, however, FWS personnel identified and photographed the elephant ivory carving found in the parcel.  The credit card sales receipt for the parcel was signed by Reppert and video footage captured the defendant dropping off the parcel at the post office.

Thereafter, between March 25 and April 22, 2014, the inter-agency team identified and inspected six additional export shipments originated by Reppert, each consigned to an address in China that was falsely labelled and documented as wood or resin carvings, when in fact they contained undeclared elephant ivory carvings.

Trade in elephant ivory is regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (“CITES”).  CITES is a treaty providing protection to fish, wildlife and plants that are or could become imperiled due to the demands of international markets. CITES has been signed by over 170 countries including the United States. CITES is implemented in the United States through the Endangered Species Act (“ESA”). 16 U.S.C. § 1538(c); 50 C.F.R. §§ 14 and 23.  An animal species listed as protected under CITES cannot be exported from the United States without prior notification to, and approval from, U.S. Fish and Wildlife Service. 50 C.F.R. §§ 20.13 and 20.20.  Species protected under CITES are listed in a series of appendices (Appendices I, II and III), designating the level of protection afforded each species.  Under Appendix II of CITES, a species can be exported from the United States to a foreign country only if, prior to exportation, the exporter possesses a valid CITES export permit issued by the United States.  Under Appendix I of CITES, a species can only be exported from the United States if, prior to exportation, the exporter possesses a valid foreign import permit issued by the country of import and a valid export permit issued by the United States.  The Asian elephant (Elephas maximus) is a species of elephant native to south-central and southeastern Asia. The Asian elephant is listed on Appendix I of CITES, and was listed as an endangered species in June 1976. 41 Fed. Reg. 24064. The African elephant (Loxodonta africana) is a species of elephant native to eastern and central Africa. The African elephant is listed in Appendix I of CITES, though certain populations of African elephants (specifically those from South Africa, Namibia, Botswana, and Zimbabwe) are listed in Appendix II, accompanied by a special annotation allowing only non-commercial international trade in specimens of those populations. The African elephant was listed as a threatened species under the ESA in May 1978. 43 Fed. Reg. 20504.

Mr. Ferrer commended the investigative efforts of the FWS, ICE-HSI, USPIS and CBP for their assistance with the investigation. This matter is being prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald of the Economic & Environmental Crimes Section.

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 Miami-Dade County resident was sentenced to 102 months in prison, to be followed by 3 years of supervised release, for operating a scheme to skim credit card numbers, manufacture counterfeit credit cards and file false federal income tax returns.

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 J.D. Patterson, Director, Miami Dade Police Department (MDPD), made the announcement.

Christopher M. Mack, 31, previously pled guilty to one count of possession of fifteen or more counterfeit and unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), one count of possession of device making equipment, in violation of Title 18, United States Code, Section 1029(a)(4), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). 

According to court documents, Mack engaged in a scheme to skim credit card numbers from the customers of a South Beach restaurant.  Pursuant to the investigation and the execution of a search warrant at Mack’s residence, officers discovered a magnetic stripe encoder, a credit card skimmer, over 100 counterfeit credit cards embossed with Mack’s name, three spiral notebooks filled with the personal identifying information of approximately 600 individuals, loose sheets of paper filled with over 1,000 SocialSecurity numbers, and thirteen white envelopes containing approximately $200,000 worth of Western Union money order receipts.

Law enforcement reviewed the contents of the spiral notebooks and discovered numerous handwritten entries detailing the filing of federal tax returns. The IRS confirmed that the entries corresponded to fraudulently filed tax returns submitted to the agency. 

Mr. Ferrer commended the investigative efforts of IRS-CI and the MDPD.  The case is being prosecuted by Assistant U.S. Attorney Matthew J. Langley.

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 http://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 http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

Four defendants have been sentenced to prison terms, by U.S. District Judge Daniel T.K. Hurley in West Palm Beach, for paying and accepting bribes and gratuities. 

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Pamela Bondi, Florida Attorney General, Margaret Moore-Jackson, Special Agent in Charge, United States Social Security Administration, Office of Inspector General (SSA-OIG), Shimon R. Richmond, Special Agent in Charge, Miami Region, United States Department of Health and Human Services, Office of Inspector General (HHS-OIG), made the announcement.

Irma Davidian, 52, of Boca Raton, was sentenced to 10 years in prison, to be followed by three years of supervised release and was ordered to pay $2,789,038.85 in restitution.  Davidian previously pled guilty to conspiracy to commit bribery in programs receiving federal funds and commit health care fraud; and conspiracy to give a gratuity to a public official, both, in violation of Title 18, United States Code, Section 371.

Gladys Roman, 47, of Pompano Beach, was sentenced to 40 months in prison, to be followed by three years of supervised release and was ordered to pay $2,789,038.85 in restitution.  George Lopez, 35, of Pompano Beach, was sentenced to 54 months in prison, followed by three years of supervised release and was ordered to pay $300,673.42 in restitution.  Both defendants previously pled guilty to conspiracy to commit bribery in programs receiving federal funds and commit health care fraud, in violation of Title 18, United States Code, Section 371.

Maria Sanchez, 50, of Pembroke Pines, was sentenced to four months in prison and four months of house arrest, to be followed by three years of supervised release.  The defendant previously pled guilty to conspiracy to receive and accept a gratuity by a public official, in violation of Title 18, United States Code, Section 371.

Co-defendant Alejandro Lomoso, 56, of Southwest Ranches, previously pled guilty to conspiracy to receive and accept a gratuity by a public official, in violation of Title 18, United States Code, Section 371 and is scheduled to be sentenced on January 6, 2016. 

According to court records, Davidian was in the business of representing persons who sought to obtain government benefits, including Social Security, Medicaid and Food Stamp benefits.  Davidian would claim that, for a payment ranging from $2,000-$5,000, she could obtain those benefits for individuals regardless of their personal circumstances.  Roman was employed by the Florida Department of Child and Family Services (DCF) as an interview clerk and inputted information from those persons applying for Medicaid and Food Stamps benefits into a DCF computer.  The Medicaid applications would then be assigned to a DCF case worker whose job title was an Economic Self-Sufficiency Specialist (ESS). 

In or about April 2009, Roman submitted applications to DCF on behalf of Davidian’s clients and did so from her home or a public library and would add or change information to enhance the application.  Davidian repeatedly asked Roman if there was an ESS worker at DCF who Davidian could pay to approve DCF applications.   Lopez was an ESS for DCF.  His duties included approving or denying requests for Medicaid and Food Stamp benefits.  In or about 2012, Lopez agreed that, in exchange for money, he would approve applications submitted by Davidian on behalf of her clients.

Davidian submitted applications on behalf of her clients to Roman so that they could be forwarded to DCF.  Davidian submitted fraudulent documents with some of the applications in order to make it appear that her clients met the benefit requirements. Davidian instructed Roman to assign Lopez as the ESS worker in order to ensure that some of the fraudulent applications would be approved.

Roman would then fraudulently approve benefits for applicants who were not otherwise qualified.  If benefits for Medicaid or Food Stamps were properly denied by another DCF employee, Lopez logged into the DCF computer system and overrode the denial and approved the benefits. Beginning in or about 2012 through in or about January 2014, every other week, Davidian paid Roman and Lopez each $500.   As a result of the scheme, Roman and Lopez assisted Davidian to seek more than $5,000,000 in fraudulent benefits.

Court records further indicate that Sanchez and Lomoso worked as claims representatives for the SSA.  From in or about 2008 through in or about early 2011, Sanchez and Lomoso would periodically receive applications from Davidian on behalf of persons seeking SSA benefits.  In exchange for payment, Sanchez and Lomoso would expedite and/or modify the application process.  Davidian gave, offered, and promised approximately $9,500 in U.S. currency to Lomoso and approximately $13,000-$15,000 to Sanchez in exchange for performing their official acts. 

Mr. Ferrer commended the investigative efforts of the FBI, Florida Attorney General’s Office, SSA-OIG, HHS-OIG, MFCU and the Florida Department of Children and Families OIG.  Attorney General Pam Bondi’s Office of Statewide Prosecution will handle the state law violations.  The federal matters are being prosecuted by Assistant U.S. Attorneys Jeffrey N. Kaplan and Thomas P. Lanigan. 

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 http://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 http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

A tax return preparer was sentenced to 48 months in prison, followed by three years of supervised release for filing a false claim with the Internal Revenue Service (IRS). The defendant was also ordered to pay $7,500.00 in restitution to the IRS and other victims.

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

Joseph Akins Owanikin, a/k/a Joe Akins, of Fort Lauderdale, previously pled guilty to one count of filing a false claim with the Internal Revenue Service, in violation of Title 18, United States Code, Section 287.

According to court documents, Owanikin was a professional tax return preparer and operated Akins Financial Inc., a/k/a Akins Financial Services, in Miami-Dade County.  The defendant obtained an Electronic Filing Identification Number (EFIN) so that he could submit tax returns electronically to the IRS in the names of other individuals.  Owanikin knowingly filed at least seventy-eight separate false 2008 United States income tax return and supporting documents, including IRS Form 5405 for the First-Time Homebuyer Credit, fraudulently claiming a tax refund of $7,500. 

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

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 Martin County convicted felons have been detained on an indictment, charging them with possessing firearms and ammunition at an indoor firing range in Jensen Beach, Florida.

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, David Dyess, Chief, Stuart Police (SPD), and William D. Snyder, Sheriff, Martin County Sheriff’s Office (MCSO), made the announcement.  

Aldrick James Lott, 30, and John Robert Rucker, Jr., 46, both of Stuart, were charged by indictment with being felons in possession of a firearm on November 7, 2015, in violation of Title 18, United States Code, Section 922(g)(1).  In addition, Lott is charged with being a felon in possession of ammunition on December 1, 2015, in violation of Title 18, United States Code, Section 922(g)(1).  Lott faces a maximum statutory sentence of 15 years to life imprisonment.  Rucker faces a maximum statutory penalty of ten years in prison.  A detention hearing was held on December 9, 2015, before Chief U.S. Magistrate Judge Frank J. Lynch, Jr.

According to court records and detention hearing testimony, on November 7, 2015, Lott and Rucker, entered a gun shop and indoor shooting range in Jensen Beach, Florida.  During their visit, Lott and Rucker were recorded on video surveillance shooting targets with multiple firearms, including a Glock 30 .45ACP caliber pistol, Smith and Wesson M&P40 .40 caliber pistol, and High-Point 9mm pistol.  The Glock and Smith and Wesson pistols were left at the store for cleaning, examined by law enforcement and determined to have been stolen.

On December 1, 2015, federal and local law enforcement agencies executed three search warrants, on residences connected to Lott and Rucker.   Law enforcement recovered the High-Point 9mm pistol, a second firearm, and various rounds of ammunition from one home connected to Lott.  From a second residence connected to Lott, officers recovered a magazine and ammunition matching the Smith and Wesson M&P40 .40 caliber pistol.  From a residence connected to Rucker, officers recovered narcotics.  

Mr. Ferrer commended the investigative efforts of ATF, Stuart Police Department, Martin County Sheriff’s Office, Federal Bureau of Investigation, Drug Enforcement Administration and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.  This case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.

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

A Miami federal grand jury indicted nine individuals for operating a Broward County telemarketing scheme (“a boiler room”) that targeted investors throughout the country and ultimately defrauded them out of $6.6 million dollars.

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 the Securities and Exchange Commission (SEC), made the announcement.

Thomas A. Guerriero, 39, of Deerfield Beach, Diana P. Lovera (D. Lovera), 32, of Deerfield Beach, Victor Lovera (V. Lovera), 28, of Deerfield Beach, Edward R. Sachs, 56, of Boca Raton, Andrew J. Bourdeaux, 28, of Davie, Joseph Loish, 58, of Pompano Beach, Steven Goldstein,  60, of Sunrise, Steven Sharaf, 63, of Pembroke Pines, and Frank Penaloza, 29, of Pompano Beach, were charged by indictment with conspiracy to commit mail fraud and wire fraud, in violation of Title 18, United States Code, Section 1349.  Additionally, Guerriero, D. Lovera, V. Lovera, Sachs, Bourdeaux, Loish, and Goldstein are charged with substantive counts of mail and/or wire fraud, in violation of Title 18, United States Code, Sections 1341 and 1343.  Guerriero is also charged with witness tampering and obstruction of justice, during the course of an SEC investigation, in violation of Title 18, United States Code, Sections 1005 and 1512(b)(1).

U.S. Attorney Wifredo A. Ferrer stated, “Securities fraud jeopardizes the financial well-being of our citizens.  The U.S. Attorney’s Office and our enforcement partners will continue to identify for prosecution, those individuals who use deception, scare tactics and undue pressure to strip others of their hard-earned financial investments.”

“This case demonstrates our commitment to rooting out fraudsters who bilk millions of dollars from investors every year,” said George L. Piro, Special Agent in Charge, FBI Miami.  “Criminals are always devising new methods to defraud unsuspecting investors.  Accordingly, we are continuously adapting our investigative techniques in order to hold them accountable for their unscrupulous actions.” 

According to allegations contained in the indictment Guerriero, D. Lovera, V. Lovera, Sachs, Bourdeaux, Loish, Goldstein, Sharaf, and Penaloza solicited investors throughout the United States to buy stock shares of Oxford City Football Club, Inc. (“Oxford City”), a Deerfield Beach, Florida corporation that claimed to manage a portfolio involving sports, education, media, and real estate businesses.  The defendants sold stock directly from the company in private placement offerings. 

The indictment alleges that from July 2013 through July 2015, the defendants conspired to misappropriate investor money for their personal benefit by making false statements, during the course of a telemarketing scheme, regarding the Oxford City stock.  According to the indictment, the defendants used high-pressure, strong-armed tactics to intimidate and coerce individuals to invest in Oxford City.  Over the course of the scheme, the defendants and their co-conspirators caused over 150 individuals to buy shares of Oxford City restricted stock for approximately $6.6 million.

Today, the SEC announced parallel civil charges against Guerriero and Oxford.

Mr. Ferrer commended the investigative efforts of the FBI and the SEC.  This case is being prosecuted by Assistant U.S. Attorney Roger Cruz and Trial Attorney Kevin B. Hart from the Antitrust Division of the Department of Justice.

An indictment is only an accusation and a 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 former Cay Clubs Chief Executive Officer was convicted today after a five week trial.  

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 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 fraud scheme involving the sale of vacation rental units involving 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.

U.S. Attorney Wifredo A. Ferrer stated, “We will not stand on the sidelines and allow individuals to defraud investors and financial institutions.  As this case demonstrates, the U.S. Attorney’s Office will work with its law enforcement partners to hold those accountable who use deceptive practices to satisfy their personal desires for wealth.” 

Kelly R. Jackson, Special Agent in Charge, IRS Criminal Investigation (IRS-CI), stated, “Today’s conviction is a victory for the victims who were caught up in Mr. Clark’s tangled financial web of lies. The defendant preyed upon trusting investors and then stole their hard earned money. This case is another example of our commitment to pursue individuals who make fraudulent representations with the intent of deceiving others.”

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 properties it had promised to investors and that they remained in a dilapidated condition. 

Evidence showed that by at least September 2006, Cay Clubs experienced serious financial difficulties and was unable to meet its commitments.  In order to attempt to meet Cay Clubs’ financial obligations and to obtain funds for himself, evidence at trial showed that Clark engaged in a serious of fraudulent 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 on paper units that Cay Clubs had acquired at a lower price, to himself, but at a dramatically higher price, 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, his significant other, 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, including the use of multiple waterfront homes, yachts and aircraft 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 and transcripts presented in court, Clark thereafter engaged in conduct aimed at concealing the location of assets under his control, including by 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 million to a corporate account he controlled in Honduras.  After this transfer, U.S. law enforcement and authorities in Honduras were able to obtain 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. 

Sentencing in this matter is set for February 25, 2016 before United States District Judge Jose E. Martinez in Key West at the Sidney L. Aronovitz Federal Courthouse.

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

A Miami resident was sentenced by U.S. District Judge Donald M. Middlebrooks to 108 months in prison, to be followed by three years of supervised release and was ordered to pay $20,988,632 in restitution. 

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

Daniel Suarez, 24, of Miami, previously pled guilty to one count of conspiracy to commit health care fraud and wire fraud, in violation of Title 18, United States Code, Section 1349.

According to the court record, Suarez and his co-conspirators were the owners of eight separate pharmacies that submitted and caused the submission of false and fraudulent claims to Medicare that they provided pharmaceutical drugs pursuant to properly written prescriptions when, in fact, such items were not properly prescribed or actually provided to Medicare beneficiaries.  This fraud was accomplished in part by the use of a number of patient recruiters who received kickbacks in return for referring Medicare Part D beneficiaries to the eight separate pharmacies that Suarez controlled.  These patient recruiters then purchased the prescriptions for the medically unnecessary pharmaceutical items that the pharmacies billed to Medicare.  Suarez placed the pharmacies he controlled in the names of co-conspirator family members.  In total, Suarez and his co-conspirators submitted and caused the submission of more than $20 million in false claims to the Medicare Part D program.  Suarez used the fraudulently obtained proceeds to benefit himself and his family, including the purchase of luxury automobiles (ie: a Rolls Royce Ghost, Bentley, Range Rover and Mercedes Benz S63 AMG). 

Mr. Ferrer commended the investigative efforts of the HHS-OIG and FBI.  This case was prosecuted by Assistant United States Attorneys Roger Cruz.

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

A former Department of Veterans Affairs employee pled guilty today to destroying, altering and falsifying records and committing computer fraud.

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

Enrique Martinez, 37, of Miami, pled guilty before United States Magistrate Judge Jonathan Goodman to destruction, alteration, and falsification of records, in violation of Title 18, United States Code, Section 1519, and computer fraud, in violation of Title 18, United States Code, Section 1030.  Martinez faces a statutory maximum penalty of up to 20 years in prison.

According to court records and information presented in court, Martinez, a former nurse at the Veterans’ Affairs (VA) Medical Center in Miami, obstructed a federal investigation and caused damage to the computer system of the U. S. Department of Veterans’ Affairs.  Martinez falsified the medical records of a 76-year old veteran who was being treated at the medical center and was directly under Martinez’s responsibility.  The veteran-patient died while hospitalized at the medical center.  Martinez made these changes and alterations in an attempt to avoid responsibility for the poor quality of care he had provided the veteran-patient.   

Mr. Ferrer commended the investigative efforts of the VA-OIG’s Office of Investigations and the VA-OIG’s Office of Healthcare Inspections.  The case is being prosecuted by Assistant U.S. Attorneys Benjamin Widlanski and Jonathan Kobrinski.

Martinez is set for sentencing before United States District Judge Jose E. Martinez on February 19, 2016 at 2:00 p.m..

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 30 months in prison, followed by 3 years of supervised release and was ordered to pay joint and several restitution, in the amount of $891,997.31.

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 Franklin Adderley, Chief, Fort Lauderdale Police Department, made the announcement.

Bobby Cooks, 40, previously pled guilty to one count of theft of government money, in violation of Title 18, United States Code, Section 641.

According to court documents, between 2011 and 2014, Cooks received three United States Treasury tax refunds totaling $1,428,027 based on fraudulent tax returns filed with the IRS.  Specifically, on March 11, 2011, Cooks received a tax refund in the amount of $528,071.33 based on a false 2010 tax return filed in Cooks’ name.  The tax return claimed significant gambling winnings from, and tax withheld by, a casino.  In fact, Cooks won no such money, no such tax was withheld, and the Form W2-G attached to the tax return showing the purported winnings was fake.

Court documents also state that on November 22, 2013, Cooks received a U.S. Treasury check in the amount of $332,534 based on a fraudulent tax return filed in another individual’s name. Cooks obtained a Florida driver’s license in the name of the individual using a fake Georgia birth certificate, and opened bank accounts in the victim’s name where Cooks then deposited the fraudulent tax refund check.  On September 23, 2014, Cooks received another U.S. Treasury check in the amount of $567,422 based on a 2011 fraudulent tax return filed in the name of Cooks’ father, who had the same name as the defendant and who had been deceased since 2008.  Cooks deposited the check in a bank account that he set up in his name.

Mr. Ferrer commended the investigative efforts of IRS-CI and the Fort Lauderdale Police Department.  This case is being 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.

                                                                                              

A Monroe County resident is charged with assaulting United States Coast Guard officers.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Rear Admiral Scott A. Buschman, Commander of the United States Coast Guard 7th District, made the announcement. 

Daniel Michael Szabo, 40, of Monroe County, Florida, was arraigned yesterday on a federal indictment charging him with assault on United States Coast Guard officers, in violation of Title 18, United States Code, Section 111, and other offenses. 

According to court records, on August 21, 2015, Szabo was on his boat, threatening to commit suicide, when United States Coast Guard officers arrived on scene.  After Coast Guard personnel attempted to board Szabo’s vessel, the defendant fled and in the process pulled out a handgun and fired approximately six rounds (shots) at the Coast Guard vessel.  Following a thirty minute pursuit, Szabo turned his boat towards and struck the Coast Guard vessel, before being apprehended.

Mr. Ferrer commended the efforts of the U.S. Coast Guard.  The case is being prosecuted by Special Assistant U.S. Attorney Jeremy McCall.

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.

United State Attorney Ferrer announced today that the Southern District of Florida collected $146,171,229.47 in criminal and civil actions in Fiscal Year 2015.  Of this amount, $56,256,636 was collected in criminal actions and $89,914,593.47 was collected in civil actions.

Additionally, the Southern District of Florida worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $217,282,980.63 in cases pursued jointly with these offices.  Of this amount, $15,169.93 was collected in criminal actions and $217,267,811 was collected in civil actions.

Attorney General Loretta E. Lynch announced today that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year (FY) ending Sept. 30, 2015.  Collections in FY 2015 represent more than seven and a half times the approximately $2.93 billion of the Justice Department’s combined appropriations for the 94 U.S. Attorneys’ offices and the main litigating divisions in that same period.

“The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources and protecting the American people from exploitation and abuse,” said Attorney General Lynch.  “The collections we are announcing today demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver.  I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”

The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims.  The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss.  While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance program.

The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal financial, health, safety, civil rights and environmental laws.  In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.

Additionally, the U.S. Attorney’s office in the Southern District of Florida, working with partner agencies and divisions, collected $34,109,303 in asset forfeiture actions in FY 2015.  Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.

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 Certified Public Account (CPA) was sentenced to 78 months in prison, followed by 3 years of supervised release, and was ordered to pay restitution in the amount of $3,684,921.20 for using her tax preparation business to facilitate an income 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.

Pamella B. Watson, 61, of Davie, previously pled guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343.

According to court documents, Watson operated Watson & Associates Business Services, Inc., a tax preparation business in Miami.  Defendant Watson prepared the client’s tax return and provided him/her a copy showing a refund amount and/or an amount payable to the IRS.  Without the client’s knowledge or authorization, the figures on the return were changed, and a tax return showing a higher refund amount was filed with the IRS.  The client’s bank account received the refund amount reflected on the copy they received from defendant Watson, and the remainder of the tax refund was deposited into an account controlled by Watson.  The client did not have any knowledge of the refund falsification and splitting.

Court documents state that Watson prepared approximately 557 U.S. Individual Income Tax Returns (Forms 1040) for tax years 2010 through 2013 for her clients.  Approximately 395 (71%) had refunds split into an account controlled by defendant Watson, or the entire refund diverted into Watson’s bank account.  From approximately January 2011 through September 2014, defendant Watson deposited $3,405,479.20 of client tax refunds from 183 individual taxpayers into accounts she controlled.

According to court documents, Watson also diverted checks totaling $222,676 into her personal IRS account, and an additional $56,766 in IRS payments from Watson’s clients was applied to an associate’s tax account.  These checks were generated by clients who were informed by defendant Watson that they were paying their own tax liability.

Mr. Ferrer commended the investigative efforts of IRS-CI, and thanked the Jamaican Financial Investigations Division for its substantial assistance.  The case is being prosecuted by Senior Litigation Counsel Neil Karadbil.

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 pled guilty to tax evasion for diverting employees’ wage payments into bank accounts under her control and failing 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, 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.

Sentencing is scheduled for February 8, 2016 at 3:30 p.m. before U.S. District Judge Joan A. Lenard. McDaniel faces a maximum statutory sentence of five years in prison.

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.

A Miami-Dade resident was sentenced to 66 months in prison, followed by 3 years of supervised release for his participation in an identity theft 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 George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.

Randy Normul Pierre, 29, of Miami, previously pled guilty to one count of possession of device-making equipment, in violation of Title 18, United States Code, Sections 1029(a)(4) and 2, 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, law enforcement agents executed a search warrant at the defendant’s residence. During the search, law enforcement agents found device-making equipment, including State of Florida seal adhesives and card stock, as well as the Social Security numbers of more than fifteen persons. In addition, law enforcement agents found a fake driver's license with Pierre's photograph, but in the name of another individual, and a credit or debit card in the name of the other individual.

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

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.