Southern District of Florida

Four Miami-Dade residents were sentenced to terms of imprisonment for their participation in a fraud conspiracy that involved the unauthorized use of credit card numbers that had been skimmed at local establishments.

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, made the announcement.

Jordy Hechavarria Morales, 21, Yoandy Hechavarria Morales, 29, Christian Vinent, 23, and Addel Fernandez Camejo, 31, all of Miami-Dade, previously pled guilty for their involvement in a conspiracy to commit credit card fraud.  Camejo and Vinenta also pled guilty to aggravated identity theft.  Jordy Morales also plead guilty to possessing fifteen or more counterfeit credit cards, using counterfeit credit cards, and using counterfeit credit cards to obtain goods valued at $1,000 or more.  In addition, Jordy Morales was convicted, following a bench trial, of aggravated identity theft.  Yoandy Morales also pled guilty to possessing fifteen or more counterfeit credit cards, three counts of using counterfeit credit cards, and using counterfeit credit cards to obtain goods valued at $1,000 or more.  In addition, Yoandy Morales was convicted, following a bench trial, of three counts of aggravated identity theft.

The Honorable Judge Kenneth A. Marra sentenced each of the defendants to a term of incarceration, to be followed by two years of supervised release.  Camejo was sentenced to 36 months; Vinent was sentenced to 38 months; Jordy Morales was sentenced to 40 months; and Yoandy Morales was sentenced to 48 months, in prison.

According to court documents, on March 24, 2015, officers with the Tequesta Police Department stopped a car that was occupied by Jordy Morales, Yoandy Morales, Vinent and Camejo.  During a search of the vehicle, officers discovered 143 credit cards, each embossed with a defendant’s name or alias.  Officers also found counterfeit Florida driver’s licenses embossed with Vinent and Yoandy Morales’ aliases.    Each of the discovered credit cards was found to be counterfeit and included unauthorized credit card numbers.  During the subsequent investigation, agents uncovered evidence that the conspirators had used additional unauthorized credit cards during the course of the conspiracy.  In total, the defendants were engaged in a conspiracy involving 173 counterfeit and unauthorized credit cards.

The unauthorized credit card numbers used during the course of the conspiracy actually belonged to Palm Beach County residents.  These credit card account numbers were unlawfully obtained through the use of “skimmers” at gas stations in Palm Beach County.  The stolen credit card numbers were then used to manufacture counterfeit credit cards which were encoded and embossed with the account number and a conspirator’s name, to make it appear as if the defendant was the actual account holder.  The defendants, who are residents of Miami-Dade County, traveled together to Palm Beach County and used the counterfeit credit cards to purchase and attempt to purchase Visa, MasterCard, and American Express gift cards from Palm Beach County merchants.

Mr. Ferrer commended the investigative efforts of ICE-HSI and the Village of Tequesta Police Department.  The case is being prosecuted by Assistant U.S. Attorney Stephanie Evans.

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

A Miami-Dade County resident pled guilty to stealing tax refunds totaling $1,428,027.

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, pled guilty to one count of theft of government money, in violation of Title 18, United States Code, Section 641. As part of his plea agreement, the defendant agreed to pay restitution in the amount of $1,428,027. At sentencing, Cooks faces a maximum statutory sentence of ten years in prison.

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 Cooks and who had been deceased since 2008. Cooks deposited the check in a bank account that he set up in his name.

Cooks is scheduled to be sentenced on December 8, 2015 at 8:30 a.m. before United States District Judge Robert N. Scola, Jr.

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 Miami Lakes resident was sentenced to 24 months in prison, followed by two years of supervised release, and was ordered to forfeit $595,500 and to pay a fine of $6,000 for structuring and causing the filing of false currency transaction reports.

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.

Jorge R. Raynaud, 31, previously pled guilty to thirty-one counts, including five counts of structuring currency transactions with the intent to evade reporting requirements, in violation of Title 31, United States Code, Section 5324(a)(3), and twenty-six counts of causing and attempting to cause a financial institution to fail to file a currency transaction report, in violation of Title 31, United States Code, Section 5324(a)(1). As part of his plea agreement, Raynaud agreed to forfeit $595,500 in U.S. currency.

The Bank Secrecy Act requires financial institutions to file a currency transaction report with the Treasury Department for each financial transaction that involves currency in excess of $10,000.  According to court documents, Raynaud structured currency withdrawals at two different banks by intentionally arranging a series of separate transactions, each one involving less than $10,000, for the purpose of evading the $10,000 currency reporting requirement.  Raynaud also caused the banks to fail to file twenty-six currency transaction reports for currency withdrawals and the cashing of checks in 2012 and 2013.

The intended loss resulting from the offense is between $400,000 and $1,000,000.

Mr. Ferrer commended the investigative efforts of IRS-CI.  This case is being prosecuted by Assistant U.S. Attorney Elijah Levitt

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 men have been separately charged with possession of mail that had been stolen from various condominium complexes throughout Broward County, Florida.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida and Ronald J. Verrochio, Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Division, made the announcement.

Anthony Bouquette, 24, of Valdosta, Georgia, was charged by indictment with four counts of possession of stolen mail,  in violation of Title 18, United States Code, Sections 1708 and 2.   James Mathurin, 24, of Fort Lauderdale, was charged by information with two counts of possession of stolen mail, in violation of Title 18, United States Code, Sections 1708 and 2.   If convicted, each defendant faces up to five years in prison.

According to information contained in the court records, from February through September 2011, the defendants possessed mail that had been stolen from various apartment complexes in Broward County, including locations in Deerfield Beach, Lauderhill, Sunrise and Wilton Manors.  The defendants and other individuals possessed checks that had been made out to businesses and stolen from the condominium complex mail receptacles.  The defendants separately deposited the stolen checks into accounts at local banks.  The defendants’ unauthorized conduct caused both the check writer and the intended business recipient to sustain a financial loss.

Mathurin is scheduled to have his initial appearance on October 7, 2015 before U.S. Magistrate Judge Barry S. Seltzer and is scheduled for a change of plea hearing on October 8, 2015 in front of U.S. District Judge James I. Cohn.  Bouquette’s initial appearance date has not yet been scheduled.

Mr. Ferrer commended the investigative efforts of the USPIS. The case is being prosecuted by Assistant U.S. Attorney Randy Katz.

An indictment or information is only an accusation and the defendant is presumed innocent unless and 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.

The owner of a Florida mortgage company was sentenced today to serve 135 months in prison for orchestrating a $64 million mortgage fraud scheme.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida and Special Agent in Charge Nadine Gurley of the U.S. Department of Housing and Urban Development Office of Inspector General (HUD-OIG) Atlanta Region made the announcement.

Hector Hernandez, 57, of Miami, Florida, the owner and operator of Great Country Mortgage Bankers (Great Country), a mortgage lender in Miami, was sentenced for conspiracy to commit wire fraud affecting a financial institution.  He was also ordered to pay $64,508,141 in restitution and to forfeit $8,000,000 in illicit profits.

In the same case, a real estate developer for Great Country, Aleida Fontao, 62, of Miami, was sentenced today to serve 41 months in prison, and ordered to pay $7,131,952 in restitution and $400,000 in forfeiture.  An underwriter for Great Country, Olga Hernandez, 59, of Lake Mary, Florida, was sentenced yesterday to serve 51 months in prison and ordered to pay $24,512,755 in restitution.  Hector and Olga Hernandez both pleaded guilty on July 13, 2015, while Fontao pleaded guilty on July 7, 2015.  Hector Hernandez was the last defendant to be sentenced in the case.  All 24 defendants charged in this case, which included loan officers, loan processors and underwriters, were convicted of participating in the scheme.

According to admissions made in connection with the guilty pleas, from at least 2006 and continuing through at least September 2008, Hector Hernandez was the owner and operator of Great Country which specialized in approving Federal Housing Administration (FHA) loans.  The loans were primarily for buyers of condominiums at complexes where Hector Hernandez was a part owner – however, the buyers were unqualified borrowers, due to insufficient income, high levels of debts, and outstanding collections.  Hector Hernandez admitted that his company employed loan officers, loan processors and underwriters, including Olga Hernandez and Fontao, whom he knew approved and submitted false and fraudulent FHA mortgage loan applications and accompanying documents to HUD on behalf of the unqualified borrowers.  These documents included false pay stubs, false verification of employment forms, and fictitious letters from the borrowers.

According to admissions made in connection with the guilty pleas, closing costs were paid on behalf of the unqualified borrowers through an interstate wire transfer of funds.  The borrowers were also paid to purchase the condominium units as an unreported inducement to purchase.  After the loans closed, the loans were sold to financial institutions.  When the unqualified borrowers failed to meet their monthly mortgage obligations, they defaulted on the loans causing losses both to the financial institutions and to HUD which insured the loans.  Hector Hernandez admitted that the loss from the fraudulent conduct was at least $64 million.

This case was investigated by HUD-OIG as participants in the Miami Mortgage Fraud Strike Force.  The case was prosecuted by Senior Litigation Counsel David A. Bybee and Trial Attorneys Mike O’Neill and William Johnston of the Criminal Division’s Fraud Section.

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

A Miami Gardens resident pled guilty to a stolen identity tax refund fraud scheme.

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

Rosheem Oneil Williams, 19, 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 in prison, consecutive to any other term of imprisonment, for the aggravated identity theft charge.

According to court documents, IRS-CI investigators noticed that, from January 17, 2015 through June 6, 2015, 187 tax returns claiming refunds totaling $363,457 were filed from Williams’ residence.  A search warrant was executed at the residence on June 19, 2015, and law enforcement found and seized numerous items containing personal identification information (PII) (including names, dates of birth, and social security numbers). Specifically, agents found computer-generated lists and an Apple iPad containing hundreds of individuals’ PII.

Agents interviewed Williams, and he admitted that he possessed the PII found in the residence on June 19, 2015, and that he prepared and filed at least 180 tax returns without the permission of the individuals in whose names the returns were filed.

Williams is scheduled to be sentenced on December 2, 2015 at 2:00 p.m. United States District Judge Marcia G. Cooke.

Mr. Ferrer commended the investigative efforts of IRS-CI.  This case is being prosecuted by Assistant U.S. Attorney Daya Nathan.

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

A Certified Public Account (CPA) pled guilty today to 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, 60, of Davie, pled guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343. At sentencing, the defendant faces a maximum statutory sentence of twenty years in prison.

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 them 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.

Watson is scheduled to be sentenced on December 4, 2015 at 9:00 a.m. before Judge James I. Cohn.

Mr. Ferrer commended the investigative efforts of IRS-CI.  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.

Two Associates Also Sentenced for their Roles in the Conspiracy

The owner of a Florida mortgage company was sentenced today to serve 135 months in prison for orchestrating a $64 million mortgage fraud scheme.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida and Special Agent in Charge Nadine Gurley of the U.S. Department of Housing and Urban Development Office of Inspector General (HUD-OIG) Atlanta Region made the announcement.

Hector Hernandez, 57, of Miami, Florida, the owner and operator of Great Country Mortgage Bankers (Great Country), a mortgage lender in Miami, was sentenced for conspiracy to commit wire fraud affecting a financial institution.  He was also ordered to pay $64,508,141 in restitution and to forfeit $8,000,000 in illicit profits. 

In the same case, a real estate developer for Great Country, Aleida Fontao, 62, of Miami, was sentenced today to serve 41 months in prison, and ordered to pay $7,131,952 in restitution and $400,000 in forfeiture.  An underwriter for Great Country, Olga Hernandez, 59, of Lake Mary, Florida, was sentenced yesterday to serve 51 months in prison and ordered to pay $24,512,755 in restitution.  Hector and Olga Hernandez both pleaded guilty on July 13, 2015, while Fontao pleaded guilty on July 7, 2015.  Hector Hernandez was the last defendant to be sentenced in the case.  All 24 defendants charged in this case, which included loan officers, loan processors and underwriters, were convicted of participating in the scheme.

According to admissions made in connection with the guilty pleas, from at least 2006 and continuing through at least September 2008, Hector Hernandez was the owner and operator of Great Country which specialized in approving Federal Housing Administration (FHA) loans.  The loans were primarily for buyers of condominiums at complexes where Hector Hernandez was a part owner – however, the buyers were unqualified borrowers, due to insufficient income, high levels of debts, and outstanding collections.  Hector Hernandez admitted that his company employed loan officers, loan processors and underwriters, including Olga Hernandez and Fontao, whom he knew approved and submitted false and fraudulent FHA mortgage loan applications and accompanying documents to HUD on behalf of the unqualified borrowers.  These documents included false pay stubs, false verification of employment forms, and fictitious letters from the borrowers.

According to admissions made in connection with the guilty pleas, closing costs were paid on behalf of the unqualified borrowers through an interstate wire transfer of funds.  The borrowers were also paid to purchase the condominium units as an unreported inducement to purchase.  After the loans closed, the loans were sold to financial institutions.  When the unqualified borrowers failed to meet their monthly mortgage obligations, they defaulted on the loans causing losses both to the financial institutions and to HUD which insured the loans.  Hector Hernandez admitted that the loss from the fraudulent conduct was at least $64 million.

This case was investigated by HUD-OIG as participants in the Miami Mortgage Fraud Strike Force.  The case was prosecuted by Senior Litigation Counsel David A. Bybee and Trial Attorneys Mike O’Neill and William Johnston of the Criminal Division’s Fraud Section.

Former Miami Springs Police Department (MSPD) Sergeant Andres Quintanilla was sentenced today to nine years in prison by U.S. District Court Chief Judge Michael K. Moore.   Quintanilla had previously pleaded guilty to receiving bribes from an undercover FBI confidential source, who Quintanilla believed was a narcotics trafficker.

Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida and George L. Piro, Special Agent in Charge, FBI, Miami Field Office made the announcement.

Andres Quintanilla, 34, had previously pleaded guilty to attempting to affect commerce by extortion under color of official right, in violation of Title 18, United States Code, Section 1951(a).  Quintanilla was sentenced to 108 months in prison, to be followed by a year of supervised release.  He was also ordered to pay a $5,000 fine and to forfeit an additional $3,700 that had been paid to him by the confidential source.

According to court documents, in October 2014, a FBI confidential source (CS) informed Quintanilla that he (the CS) was a drug trafficker.  Rather than arrest the CS, or open an investigation, Quintanilla offered to help the CS’s drug trafficking business.  During a series of recorded meetings, Quintanilla offered advice on how the CS should run his drug trafficking business, provided the location of an unmarked Miami-Dade Police Department narcotics office, provided the names of three Miami-Dade Police Department officers, and promised to provide photographs of officers in the future. In addition, Quintanilla ran the name of a purported drug dealer in a law enforcement database when asked to do so by CS.

By December 2014, Quintanilla had agreed to act as an escort during a purported 10 kilogram cocaine deal.  Under FBI direction, the CS told Quintanilla that the CS needed a safe location in Miami Springs where the CS could exchange 10 kilograms of cocaine for $250,000.  Quintanilla chose a location for the transaction to take place and, on the date of the transaction, the FBI filmed and recorded Quintanilla meeting with the CS and viewing the cocaine.   After the purported deal took place with second undercover CS acting as a drug dealer, Quintanilla then followed the CS’s vehicle to an express package service center, where Quintanilla believed that the CS would ship the $250,000 of drug proceeds to New York.  Quintanilla participated in the transaction in uniform, while driving his MSPD marked vehicle.  In exchange for his assistance, Quintanilla accepted $3,500 in bribe payments.

Mr. Ferrer commended the investigative efforts of the FBI Miami Area Corruption Task Force.  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 Port St. Lucie Police Officer has been charged with receiving, distributing 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 John A. Bolduc, Chief of Police, Port St. Lucie Police Department, made the announcement.

Michael Edwin Harding, of Port St. Lucie, was charged, by criminal complaint with receiving and distributing material involving sexual exploitation of minors and possession of child pornography, in violation of Title 18, United States Code, Sections 2252(a) and 2252A.  If convicted, Harding faces a mandatory minimum term of 5 years in prison and maximum statutory sentence of 20 years in prison.

Following his initial appearance today before United States Chief Magistrate Judge Frank J. Lynch, Jr., Harding was ordered held without bond pending a detention hearing on Wednesday, September 30, 2015 at 9:30 a.m. 

According to allegations contained in the court record, on July 23, 2015, an individual posted images of child pornography to an instant messaging account for mobile devices.  An investigation by law enforcement revealed that subsequently, an additional image and video of child related sexually explicit material were posted to the account.  Subscriber information allegedly identified Michael Harding as the accountholder.  On September 22, 2015, law enforcement executed a federal search warrant at Harding?s residence and seized Harding?s computer, cell phones and thumb drives, among other materials.  A preliminary forensic analysis revealed that the recovered items allegedly contained hundreds of images and videos of children engaged in sexually explicit conduct.

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

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

A complaint is only an accusation and the defendant is presumed innocent unless and 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.

Former Carlisle Chief Executive Officer (CEO) pled guilty to participating in a $30 million fraud scheme involving ten low-income housing developments.

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, Nadine Gurley, Special Agent in Charge, United States Department of Housing and Urban Development, Office of Inspector General (HUD-OIG), and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.

Former Carlisle CEO Matthew Greer, 37, of Miami Beach, pled guilty yesterday before United States District Court Judge Ursula Ungaro to two counts of conspiracy to commit theft of government money, in connection with a scheme to steal government funds intended for the construction of low-income housing. 

According to court documents, including the factual proffer in support of the defendant’s plea, Matthew Greer and Lloyd Boggio served, at alternating times, as CEO of Carlisle Development Group (CDG), a low-income housing developer in Miami, Florida.  CDG applied for federal tax credits and federal grant monies to build low-income housing developments through a program administered by the Florida Housing Finance Corporation (FHFC).  To obtain these federal funds, FHFC required developers to submit proposed development costs, including a construction contract signed by the developer and contractor.

The court records further indicate that Greer and others through CDG, conspired to unjustly enrich themselves by submitting fraudulently inflated low-income housing construction contracts to FHFC’s representatives to obtain excess federal tax credits and grant monies to which they were not entitled, and then to use the proceeds for their personal use and benefit.  From 2006 to 2012, Greer, and the other conspirators caused the submission of fraudulently inflated construction contracts on at least eight different low-income housing developments, which resulted in the allocation of at least $26 million in excess federal tax credits and grant monies.  Similarly, during the course of the scheme, the conspirators made kickback payments for the benefit of Greer and others totaling at least $26 million.

Greer conspired with representatives of Biscayne Housing Group (BHG) to commit theft of government money and property.  BHG employed the same contract inflation scheme of submitting fraudulently inflated contracts to FHFC for the receipt of excess federal tax credits and grant monies.  CDG and BHG had a joint venture for two developments.  In or around May 2010, Greer and his conspirators agreed to share approximately $3.7 million in excess government funds for these two joint venture developments.

Greer is scheduled to be sentenced on November 13, 2015.  The United States has seized $9.3 million from Greer, who has agreed to entry of a forfeiture money judgment in the amount of $16,004,137, the balance of which he is expected to pay prior to sentencing.  Greer faces a maximum possible sentence of ten years in prison.

Mr. Ferrer thanked the FBI, HUD-OIG, and IRS-CI for their work on this case.  The case is being prosecuted by Assistant United States Attorneys Michael R. Sherwin, Michael N. Berger, Evelyn Sheehan and Eloisa Fernandez. 

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 Davie resident was sentenced by United States District Judge Beth Bloom to 24 months in prison, followed by one year of supervised release, and was ordered to pay restitution in the amount of $191,678 for her role in an identity theft 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 Raymond Black, Chief, Miramar Police Department, made the announcement.

Ashley Monique Leroy, 26, of Davie, previously pled guilty to one count of aggravated identity theft, in violation of Title 18, United States Codes Section 1028A(a)(1).

According to court documents, on September 17, 2012, police officers from the Miramar Police Department arrested Leroy for possession of marijuana and other traffic infractions. After her arrest, officers conducted an inventory search of her vehicle and recovered a blue notebook that contained hundreds of personal identifying information, such as names, Social Security numbers, and dates of birth. The notebook also contained information explaining how to file income tax returns.

As part of her plea agreement, Leroy agreed to pay restitution to the IRS of $191,678. This amount represents the monetary loss for the filing of fraudulent income taxes in the names of the individuals listed in the blue notebook found in Leroy’s possession.

Mr. Ferrer commended the investigative efforts of the Identity Theft Strike Force, with special commendation to the IRS-CI and the City of Miramar Police Department.  The case is being prosecuted by Assistant U.S. Attorney Miesha Shonta Darrough.

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.

WASHINGTON, DC—Today, U.S. Attorney General Loretta Lynch announced Office of Community Oriented Policing Services (COPS Office) a funding award to Metropolitan Dade County, in the Southern District of Florida, aimed at creating, and in some cases protecting twenty-five (25) Miami-Dade County Police Department law enforcement positions. Over $107 million will be awarded nationally, through the COPS Hiring Program (CHP), including $3,125,000 to be awarded to Metropolitan Miami-Dade County.

The list of this year’s grantees includes Metropolitan Miami-Dade County (the Miami-Dade County Police Department).

“The COPS Office is pleased to assist local law enforcement agencies throughout the country in addressing their most critical public safety issues,” said Ronald L. Davis, Director of the COPS Office. “These grants are not simply about putting more officers on the street, they are about expanding the capacity of law enforcement agencies to engage in community policing.”

CHP provides grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers. The program provides salaries and benefits for officer and deputy hires for three years.

“The CHP grants support law enforcement’s ability to advance public safety and strengthen community relations.” stated U.S. Attorney Wifredo A. Ferrer.  “The U.S. Attorney’s Office for the Southern District of Florida applauds Metropolitan Miami-Dade County for receiving an award that will augment the crime prevention efforts of our local law enforcement partner, the Miami-Dade County Police Department.”

Priority consideration was given this year to agencies that selected any of the Building Trust focus areas or School Based Policing through School Resource Officers.  All applicants were encouraged to refer to the report of the President's Task Force on 21st Century Policing for suggested actions to incorporate into their proposed community policing strategy.

The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has invested over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 127,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.

For the entire list of grantees and additional information about the 2015 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.

The former Mayor and Councilman for Islamorada Village was sentenced today, by United States District Court Judge Jose E. Martinez, after previously pleading guilty to conspiring to commit tax evasion, in violation of Title 18, United States Code, Section 371.

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.

Michael Alan Reckwerdt, 47, of Islamorada, Florida, was sentenced to 12 months and 1 day for conspiring to defraud the IRS in the collection of employment taxes. Following his release from incarceration, Reckwerdt will be on supervised release for three years.  Reckwerdt was also ordered to pay a $10,000 fine and $160,031.71 in restitution.  Reckwerdt previously paid an additional $276,951.46 to the IRS in order to satisfy restitution, interest and penalties.

According to court documents and information presented in court, Reckwerdt, who owns and operates several businesses in Islamorada and Key West, namely, Flamingo Air of the Florida Keys, Inc., Rent-A-Boat, Inc., Robbie’s Charter Enterprises, Inc., Robbie’s Marine Enterprises, Inc., and Robbie’s of Key West, LLC, conspired to pay a portion of his employees’ wages in cash from January 2006 through December 2010, and consequently, underpay employment taxes due and owed to the IRS.  The cash payments were uncovered after the IRS executed three search warrants on Reckwerdt’s home and two of his businesses on November 3, 2011, and seized hundreds of business and financial records.  A subsequent review of those records revealed that between 2006 and 2010, Reckwerdt’s businesses had systematically paid employees in cash and therefore underreported employees’ wages and underpaid employment taxes.  Additionally, interviews of current and/or former employees of Reckwerdt revealed that once an employee’s salary composition was determined, the companies’ books and tax records were falsified to hide and conceal the cash payments to employees. Between 2006 and 2010, Reckwerdt underreported approximately $1,045,841.24 in cash wages, resulting in $160,013.71 of employment tax due and owed to the U.S. government.

Mr. Ferrer commended the investigative efforts of the IRS-CI.  This case was prosecuted by Assistant U.S. Attorney Kimberly A. Selmore.

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 uniformed police officer with the City of Miami Police Department is charged with accepting bribes.

Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, and Rodolfo Llanes, Chief, City of Miami Police Department (MPD) made the announcement.

On September 21, 2015, Julio Ruiz made his initial appearance in federal court on a Criminal Information filed by the U.S. Attorney’s Office.  In that Information, Ruiz is charged with three counts of affecting commerce by extortion under color of official right, in violation of Title 18, United States Code, Section 1951(a).  Specifically, Ruiz is charged with accepting three bribe payments between April 26 and June 12, 2013, for a total sum of $1,800 cash and a cellular telephone.  In exchange for the bribe payments, the Information alleges Ruiz misused his position as a police officer by providing access to, and information regarding, traffic accidents within the jurisdiction of the City of Miami police department.

Title 18, United States Code, Section 1951(a) carries a maximum sentence of 20 years’ imprisonment, a maximum fine of $250,000, and a term of supervised release of up to three years.   The case has been assigned to United States District Court Judge Cecilia M. Altonaga.

Mr. Ferrer commended the investigative efforts of the FBI Miami Area Corruption Task Force and the City of Miami Police Department 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 tax return preparer pled guilty to filing a false claim with the Internal Revenue Service (IRS).

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, 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. At sentencing, the defendant faces a maximum statutory sentence of five years in prison.

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 a false and fraudulent claim, that is, a false 2008 individual 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.

Owanikin is scheduled to be sentenced on December 1, 2015 at 10:30 a.m. before Judge William J. Zloch.

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.

Three individuals were convicted in federal court for committing armed robberies in Miami, Florida.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Hugo J. Barrera, 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, and J.D. Patterson Jr., Director, Miami-Dade Police Department (MDPD), made the announcement.

Jesse Foots, 24, of Miami, was convicted on September 11, 2015, of one count of participating in a Hobbs Act robbery conspiracy, two counts of participating in a Hobbs Act robbery, and two counts of brandishing a firearm during a crime of violence, following a four day jury trial before United States District Court Judge Cecilia M. Altonaga.

According to evidence presented at trial, on February 26, 2015, Foots and his co-conspirator, Dario Pinson robbed a Miami-Dade County MetroPCS and a Pizza Hut establishment.  During the course of the robbery, Foots struck a victim with a firearm and held customers and employees at gunpoint.  Foots faces a statutory mandatory minimum of 32 years to life in prison.  Sentencing is scheduled for November 19, 2015.

Dario Pinson, 19, of Atlanta, Georgia, previously pled guilty to participating in the robbery conspiracy with defendant Foots.  Pinson and co-conspirator Kendrick Belfon, 18, of Miami, pled guilty to a separate armed robbery conspiracy which occurred on February 24, 2015.  Pinson was sentenced to 35 years in prison for his criminal conduct.  Belfon was sentenced to 10 years in prison.

Mr. Ferrer commended the collaborative investigative efforts of the ATF Miami Field Office/MDPD Street Terror Offender Program, FBI Miami Field Office’s Multi-Agency Violent Crimes Task Force, MDPD’s Robbery Bureau, Miami Shores Police Department, Plantation Police Department, Pembroke Pines Police Department, Broward County Sheriff’s Office, Sunrise Police Department, Davie Police Department, and Miramar Police Department.  Mr. Ferrer also thanked the Crisp County Sheriff’s Office, Riverdale Police Department, Clayton County Police Department and Coweta County Sheriff’s Office, in Georgia, for their assistance.  The cases are being prosecuted by Assistant United States Attorneys for the Southern District of Florida.

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 retired master deputy sheriff was sentenced today to 20 years in prison for receiving, distributing and possessing child pornography, announced 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 Alysa D. Erichs of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Miami Field Division and Sheriff Ken J. Mascara of the St. Lucie County, Florida, Sheriff’s Office.

Cameron Dean Bates, 50, of Port St. Lucie, Florida, was found guilty by a jury on June 11, 2015, of four counts of receipt of child pornography, one count of distribution of child pornography and one count of possession of child pornography.  In addition to imposing the prison term, Chief U.S. District Judge K. Michael Moore of the Southern District of Florida ordered Bates to pay $3,500 in restitution to a victim.

In March 2011, St. Lucie County Sheriff’s Office detectives and members of the South Florida Internet Crimes Against Children Task Force (ICAC) began an investigation using peer-to-peer (P2P) software.  According to evidence presented at trial, investigators discovered that, between December 2010 and June 2012, several Internet protocol (IP) addresses linked to Bates in both St. Lucie County and Palm Beach County were used to download and share child pornography files.  The trial evidence showed that a laptop computer recovered during a search of Bates’ home contained numerous images and videos of child pornography, including at least one image depicting a child under the age of 12.

This case was investigated by the St. Lucie County Sheriff’s Office, the South Florida ICAC and ICE-HSI, with assistance from the Palm Beach County, Florida, Sheriff’s Office.  The case is being prosecuted by Trial Attorney Reginald E. Jones of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Ben Widlanski of the Southern District of Florida.

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

A retired master deputy sheriff was sentenced today to 20 years in prison, to be followed by 15 years of supervised release, for receiving, distributing and possessing child pornography, announced 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 Alysa D. Erichs of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Miami Field Division and Sheriff Ken J. Mascara of the St. Lucie County, Florida, Sheriff’s Office.

Cameron Dean Bates, 50, of Port St. Lucie, Florida, was found guilty by a jury on June 11, 2015, of four counts of receipt of child pornography, one count of distribution of child pornography and one count of possession of child pornography.  In addition to imposing the prison term, Chief U.S. District Judge K. Michael Moore of the Southern District of Florida ordered Bates to pay $3,500 in restitution to a victim.

In March 2011, St. Lucie County Sheriff’s Office detectives and members of the South Florida Internet Crimes Against Children Task Force (ICAC) began an investigation using peer-to-peer (P2P) software.  According to evidence presented at trial, investigators discovered that, between December 2010 and June 2012, several Internet protocol (IP) addresses linked to Bates in both St. Lucie County and Palm Beach County were used to download and share child pornography files.  The trial evidence showed that a laptop computer recovered during a search of Bates’ home contained numerous images and videos of child pornography, including at least one image depicting a child under the age of 12.      

This case was investigated by the St. Lucie County Sheriff’s Office, the South Florida ICAC and ICE-HSI, with assistance from the Palm Beach County, Florida, Sheriff’s Office.  The case is being prosecuted by Trial Attorney Reginald E. Jones of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Ben Widlanski of the Southern District of Florida.

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

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

North Broward Hospital District, a special taxing district of the state of Florida that operates hospitals and other health care facilities in the Broward County, Florida, area, has agreed to pay the United States $69.5 million to settle allegations that it violated the False Claims Act by engaging in improper financial relationships with referring physicians, the Justice Department announced today.

“The Department of Justice has long-standing concerns about improper financial relationships between health care providers and their referral sources, because those relationships can alter a physician’s judgment about the patient’s true health care needs and drive up health care costs for everybody,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.  “In addition to yielding a recovery for taxpayers, this settlement should deter similar conduct in the future and help make health care more affordable.”

“Our citizens deserve medical treatment uncorrupted by excessive salaries paid to physicians as a reward for the referral of business rather than the provision of the highest quality healthcare,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida.  “This office will be steadfast in continuing to devote all necessary resources to ensure that anyone rendering medical care does so for the sole benefit of the patient and in compliance with the law.”

“Improper financial rewards  given to physicians in exchange for patient referrals corrupts medical decision making and inflates health care costs,” said Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG).  “Our agency will continue to root out such behavior from our health care system.”

The settlement announced today resolved allegations that the hospital district provided compensation to nine employed physicians that exceeded the fair market value of their services.  The United States contended that these agreements violated the Stark Statute and the False Claims Act.  The Stark Statute restricts the financial relationships that hospitals may have with doctors who refer patients to them.

The allegations settled today arose from a lawsuit filed by a whistleblower, Dr. Michael Reilly, under the qui tam provisions of the False Claims Act.  Under the act, private citizens can bring suit on behalf of the government for false claims and share in any recovery.  Dr. Reilly will receive $12,045,655.51 from the recovery announced today.

This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services.  The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.  One of the most powerful tools in this effort is the False Claims Act.  Since January 2009, the Justice Department has recovered a total of more than $25 billion through False Claims Act cases, with more than $16 billion of that amount recovered in cases involving fraud against federal health care programs.

The case, United States ex rel. Reilly v. North Broward Hospital District, et al., Case No. 10-60590 (S.D. Fla.), was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the Southern District of Florida and the HHS-OIG.  The claims settled by this agreement are allegations only, and there has been no determination of liability.

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 Deerfield Beach resident pled guilty today to having stolen Social Security benefits for more than thirty years.

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

Claudia Carpenter, 60, of Deerfield Beach, pled guilty to two counts of theft of government funds, in violation of Title 18, United States Code, Section 641.  Carpenter is scheduled to be sentenced on November 24, 2015 at 9:30 a.m. by U.S. District Judge Beth Bloom in Fort Lauderdale.  The defendant faces up to ten years in prison, three years of supervised release and a $250,000 fine.  The defendant will also be required to pay restitution.

According to information presented in court, the Social Security Administration administers numerous programs to provide for the material needs of individuals and their families, including retirement security insurance.   Monthly benefits are paid to eligible retired workers and their eligible dependents.   From approximately October 1984 through March 2015, Carpenter falsely obtained Social Security Administration Retirement Security Income (“RSI”) benefits that had been issued to her mother, who died in September 1984.  The funds were directly deposited into a joint checking account the defendant shared with her deceased mother.  After her mother’s death, the defendant continued to receive unauthorized SSA benefits, totaling $239,089.  Carpenter withdrew these unauthorized funds by writing checks made payable to “cash” from the account and through cash withdrawals at automatic teller machines.

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

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.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Custom Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, announce that on August 24, 2015, Inaldo Chavez, 57, of Hialeah, Caridad Baez, 50, of Hialeah, and Masiel Puron, 33, of Marathon, were sentenced following their pleas of guilty to various immigration fraud charges.   The conspiracy’s organizers, Chavez and Baez, were sentenced to 21 months’ imprisonment.  Recruiter Puron was sentenced to 10 months’ imprisonment.  The other defendants, Elides Rodriguez Vallejo, 42, of Marathon, Claudio Catapano, 49, of Argentina, Naile Yubero Carrasco, 30, of Hialeah, Enrique Giglio, 32, of Venezuela, Duniesky Alvarez Perez, 26, of Homestead, Angela Cuellar Velandia, 29, of Colombia, Marcos Vila, 25, of Homestead, Olena Pokotiuk, 27, of Ukraine, Dayana Trigueiro, 21, of Homestead, Vladimir Popa, 28, of Moldova, Yinet Hernandez Martinez, 31, of Weston, Daylin Ramirez Pereira, 24, of Marathon, Igor Singereanu, 29, of Moldova, Jennifer Gutierrez, 22, of Marathon, Serghei Serdiuc, 27, of Moldova, Suset Nodarse Gonzalez, 23, of Coral Gables, Eldar Ben Atar, 28, of Israel, Kassandra Perdomo, 21, of Miami, Efrain Basaldella Landa, 24, of Venezuela, Elio Martinez Alan, 44, of Hialeah, Maria Pinto Camacho, 48, of Venezuela, Jenny Gonzalez, 24, of Miami, and Ido Sharir, 25, of Israel, were sentenced in June following their  pleas of guilty to various immigration fraud charges.  They received varying sentences.  One other individual charged in the indictment remains as a fugitive, Camilo Benavides Prieto, 30, of Colombia.

According to court documents, between May 2011 and February 2014, organizers, Chavez and Baez, and recruiters, including Puron, arranged for United States citizens and lawful permanent residents to enter into fraudulent marriages with aliens for the purpose of evading the immigration laws of the United States.  Chavez, Baez, and Puron charged the aliens a fee to arrange the fraudulent marriages, notarized the fraudulent marriage licenses, completed the necessary immigration paperwork, and prepared the co-conspirators for their interviews with United States Citizenship and Immigration Services.  The United States citizen and lawful permanent resident co-conspirators also charged the aliens a fee to enter into the fraudulent marriages.  Aliens Catapano, Giglio, Velandia, Pokotiuk, Popa, Prieto, Singereanu, Serdiuc, Atar, Landa, Camacho, and Sharir, all paid a fee to enter into fraudulent marriages with United States citizens Gutierrez and Jenny Gonzalez, and lawful permanent residents Vallejo, Carrasco, Perez, Vila, Trigueiro, Martinez, Pereira, Suset Gonzalez, Perdomo, and Alan.  These fraudulent marriages took place in the Southern District of Florida.  In addition, during the time that they were arranging the fraudulent marriages, Chavez and Baez personally attempted to fraudulently obtain naturalization.

Mr. Ferrer commended the investigative efforts of ICE-HSI and U.S. Citizenship and Immigration Services, who provided significant and valuable support to this investigation.  The case is being prosecuted by Assistant U.S. Attorney Vanessa Snyder.

An indictment is only an accusation, and the defendants are 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.

Kiesha Adderly Mitchell, 36, of Miami, was sentenced by U.S. District Court Judge Darrin P. Gayles to 48 months in prison, to be followed by three years of supervised release, for her participation in a stolen identity tax refund fraud scheme.  Mitchell was also ordered to pay restitution in the amount of $219,721.

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 Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.

The same sentence was imposed upon Mitchell’s co-defendant, Melissa Pearl Davis, 32, on August 20, 2015.

Defendants Mitchell and Davis each previously pled guilty to one count of conspiracy to defraud the government with respect to claims, in violation of Title 18, United States Code, Section 286, and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2. As part of their pleas, each defendant agreed to pay restitution in the amount of $219,721.

According to court documents, in 2009, the defendants applied to the Internal Revenue Service (“IRS”) for Electronic Filing Identification Numbers (“EFINs”) in the name of corporate or fictitious entities they controlled, including K. Mitch Services, Inc. and Pebbles Tax & Notary Services.  The defendants used those EFINs to submit false and fraudulent federal income tax returns to the IRS, using the names and Social Security numbers of other individuals, without the taxpayers’ authority.   After the tax returns were received by the IRS, various financial institutions would authorize the defendants to load onto debit cards refund anticipation loans in the names of tax payers whose names and Social Security numbers were used to file the false and fraudulent tax returns.  The defendants then withdrew the unlawfully obtained tax proceeds from the debit cards for their personal use and enrichment.  The total intended loss from the defendants’ false and fraudulent filings of unauthorized income tax returns was over $400,000.

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

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

A 2010 Congressional candidate for Florida’s 25th Congressional District, along with the campaign manager for an opposing candidate from a different party, were sentenced today for violating federal election laws, in violation of Title 18, United States Code, Section 371.

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

United States District Court Judge Jose E. Martinez sentenced Jeffrey Garcia, 42, of Miami, to two years of probation, including 240 days of home detention, and Jose Rolando Arrojo, 41, of Miami, to one years of probation, including 180 days of home detention.  The defendants had previously pled guilty to conspiring to make and accept excessive contributions to the 2010 Roly Arrojo for Congress Committee, in violation of the Federal Election Campaign Act of 1971.  In 2010, the Federal Election Campaign Act of 1971, as amended, established a $2,400 per election limit on contributions from any individual to a federal candidates’ authorized campaign committee. Therefore, because the contributions did not exceed the permissible amount by more than $25,000, Garcia and Arrojo faced a maximum possible sentence of one year in prison.

According to court documents and information presented in court, during the 2010 election cycle, Garcia was the campaign manager for a candidate (“Candidate A”) opposing Arrojo in the general election. The objective of the conspiracy was to benefit Candidate A by splitting the general election votes of his opponents, by causing and funding the existence of Arrojo’s campaign. The information also alleges the conspirators used third party checks to conceal the contributions. A $12,000 check signed by Garcia, and drawn from the campaign account of Candidate A, was made payable to Palm Media, LLC, a company that was also owned and operated by Garcia. Garcia then signed two checks, made payable to cash in the amounts of $5,000 and $5,500, drawn from the Palm Media, LLC account. These checks were deposited by Arrojo into a personal account. Arrojo subsequently wrote a $10,500 check from the personal account made payable to “Roly Arrojo for Congress” which was deposited into the bank account for the Roly Arrojo for Congress Committee. Arrojo then caused a $10,440 check to issue from the Committee’s account to the Department of State, in order to cover his filing fee expenses. Arrojo submitted this check, along with an Oath of Candidate form, to the Department of State in order to be placed on the ballot in 2010 for Florida’s 25th Congressional District.

Mr. Greenberg commended the investigative efforts of the FBI Miami Area Corruption Task Force.  This case is being prosecuted by Assistant U.S. Attorney Kimberly A. Selmore.

A criminal information 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 resident was sentenced to 36 months in prison, followed by three years of supervised release, for participating in an identity theft tax fraud scheme involving thousands of deceased and other individuals’ personal identifying information (PII).       

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Neil Melofchik, Acting Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and J. Scott Dennis, Chief, North Miami Beach Police Department (NMBPD), made the announcement.

Yovaris Pardo, 40, of Miami, previously pled guilty to one count of possessing a counterfeit access device, in violation of Title 18, United States Code, Section 1029(a)(1), one count of possessing fifteen or more unauthorized access devices with the intent to defraud, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title l8, United States Codes Section 1028A.

According to court documents, on April 22, 2013, Pardo knowingly used a counterfeit credit card to purchase tires at a Pep Boys Store in North Miami, Florida. Pardo knew that the credit card was counterfeit and acted with the intent to defraud.  On July l0, 2013, law enforcement encountered Pardo and executed a search warrant for the contents of her vehicle in Miami-Dade County. In her vehicle, Pardo had numerous counterfeit credit cards, counterfeit driver's licenses, social security cards belonging to other individuals, debit cards also in the names of other individuals that contained fraudulent tax refunds, numerous tax documents, printouts of death record search results (containing names, dates of birth, and social security numbers for deceased people), and notebooks containing handwritten identities (names, dates of birth, social security numbers).   Pardo knowingly possessed the approximately 1,320 unauthorized access devices (i.e. debit card numbers, credit card numbers, social security numbers) that were found in her vehicle.  Pardo did not have permission or authority to possess or use the PII belonging to the other individuals.

In addition, a forensic examination of Pardo's laptop that was found in the trunk of her vehicle revealed approximately 4,095 death record search results (containing names, dates of birth, and social security numbers for deceased people) and 48 additional credit card numbers.  The laptop also contained pictures of credit card skimmers, embossing machines, and credit card readers, as well as software to make fraudulent credit cards, and subscriptions to fraud programs.

Mr. Ferrer commended the investigative efforts of the USSS, IRS-CI and NMBPD.  This case is being prosecuted by Assistant U.S. Attorney Vanessa Snyder.

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.

Four men were indicted yesterday in the wake of an increase in gun violence in West Palm Beach.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Dave Aronberg, State Attorney, Palm Beach County, Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, Bryan Kummerlen, Chief, West Palm Beach Police Department and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, made the announcement.

Patrick D. Turner, 30, Antonio Gaynus, 24, Devontae L. Colbert, 20, and Adrian Coleman, 25, all of West Palm Beach, were charged by indictment with being felons in possession of a firearm.  If convicted and determined to be Armed Career Criminals, Turner and Coleman, face a mandatory minimum sentence of 15 years to life in prison.  Gaynus and Colbert face a statutory maximum sentence of 10 years in prison.

The criminal complaints allege that on various dates the four defendants unlawfully possessed firearms.

On July 25, 2015, Turner, a convicted felon, was found in possession of a loaded semi-automatic pistol.  On July 24, 2015, Gaynus, a convicted felon, was found in possession of a loaded 9mm semi-automatic pistol.  On June 29, 2015, law enforcement officers with the West Palm Beach Police Department responded to a shooting at the Roosevelt Full Service Center School in West Palm Beach and found Colbert, a convicted felon, on the scene.  Colbert allegedly attempted to conceal a firearm he possessed, by throwing it on top of a container.  A forensic examination was conducted and Colbert’s blood and DNA was allegedly discovered on the recovered firearm.  On July 15, 2015, Coleman, was the rear passenger of a vehicle and attempted to flee from the police during a traffic stop.  Following his arrest, law enforcement discovered that Coleman had placed and attempted to conceal a loaded.45 caliber pistol in the vehicle.                                                                                         

These cases are the result of Project Safe Neighborhoods (PSN).  PSN is a Department of Justice nationwide initiative that combines traditional law enforcement activities with community-based support and intervention programs. The two primary goals of the PSN initiative are to reduce and prevent violent crimes and to help past offenders adjust and re-enter the community.

Mr. Ferrer commended the investigative efforts of the ATF, West Palm Beach Police Department and Palm Beach County Sheriff’s Office. These cases are being prosecuted by Assistant U.S. Attorney Adam McMichael.

A criminal indictment is only an accusation and the defendants are 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.

Two former City of Miami Public Service Aides (PSA), three tow truck drivers, and the former owner of a tow company were sentenced by U.S. District Court Judge Marcia Cooke today for their participation in a kickback/bribery scheme.  In that scheme, four tow truck drivers paid PSAs thousands of dollars in a series of bribes over a multi-year period. In exchange for the payments, the PSAs provided the tow truck drivers accident location information and other confidential information from their police department computers.

Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, and Rodolfo Llanes, Chief, City of Miami Police Department (MPD), made the announcement.

City of Miami PSA Aristides Paulino, 31, City of Miami PSA Keri Dixon, 27, Jesus Tello, 29, Ronald Alfaro, 27, Reinaldo Martin Cruz, 30, and Robert Muriedas, 43, all of Miami, previously pled guilty to one count of conspiring to deprive the public of honest services through the use of interstate wires and conspiring to participate in a bribery scheme as/with a City of Miami Police Department employee in connection with a series of transactions valued at $5,000 or more in violation of Title 18, United States Code, Section 371. Robert Muriedas, the former owner of a tow truck company involved in the scheme, received a sentence of 34 months imprisonment.  PSA Paulino and PSA Dixon were each sentenced to 30 and 29 months, respectively.  The tow trucks’ operators, Tello, Alfaro, and Martin Cruz were each sentenced to 32, 29, and 29 months of imprisonment, respectively.  All of the defendants are also required to serve one year supervised release, upon their release from prison.

Michael Perez, 22, of Miami, has been scheduled for sentencing at 11:00 a.m. on October 21, 2015.

According to the facts set forth in court documents, the City of Miami has established a wrecker operator system for the purpose of protecting drivers and preventing corruption. For example, when a car is disabled because of an accident, the driver must call a tow company himself or herself, have his or her insurance company arrange a tow, or ask the responding officer or PSA to arrange a tow.  If an officer or PSA is asked to arrange the tow, almost every police department, including MPD, has strict regulations on how that tow referral must be made.

As further alleged, the information provided by PSAs Paulino and Dixon to tow truck operators Tello, Martin Cruz, Alfaro and Perez, and other unnamed co-conspirators, enabled the tow truck operators to arrive first at accident scenes, often times even before the arrival of law enforcement.  Once there, the tow truck operators would illegally solicit stranded accident victims for towing and steer those victims to a particular collision repair business.

According to the factual proffers in the court file, Paulino admitted taking more than $35,000 worth of bribes between 2011 and 2014, and Dixon admitted receiving more than $20,000 in bribes between 2012 and 2014.    Court documents stated that at the times when PSAs Paulino and Dixon were present at the accident locations, Paulino and Dixon actively assisted the tow truck operators in soliciting business from the stranded individuals.  When the damaged vehicles were towed, they were delivered to a particular collision repair business which would pay a kickback to the tow truck operators, the PSAs, and the owner of the tow truck.  Payment of these kickbacks was prohibited by the tow truck company’s contract with the City of Miami and the City of Miami also lost revenue because each tow was not properly logged as a rotational tow.

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

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 Michigan man was found guilty today of fifteen counts of mail fraud in a $50 million Ponzi scheme that spanned ten years.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced today that after a six-week trial, Joseph P. Zada, 57, of Grosse Pointe Shores, Michigan, and formerly of Wellington, Florida, was found guilty today of 15 counts of mail fraud in a $50 million Ponzi scheme that spanned ten years.

The victims included an internationally acclaimed hockey player, a former Olympic equestrian champion, a veterinarian, a jeweler, and a pawnbroker, as well as a number of firefighters.  Zada told the victims that he was investing their money in oil and currency trading through a top-secret board headquartered in London.  In truth, he never invested their money, but instead squandered it on a lavish jet-set lifestyle, which included mansions in Florida and Michigan.  The victims were defrauded out of more than $50 million. When pressed to return the investment money, Zada claimed he was awaiting a billion dollar inheritance from a member of the royal family of Saudi Arabia, but the inheritance never materialized.

Zada was taken into custody immediately after the verdict was read. Zada faces up to 20 years in prison for each of the 15 counts. His sentencing is scheduled for November 20, 2015 at 2:00 p.m. before U.S. District Judge Kenneth A. Marra.

Mr. Ferrer commended the investigative efforts of the FBI. This case is being prosecuted by Assistant United States Attorneys Rolando Garcia and Adrienne Rabinowitz.

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 48 months in prison, followed by three years of supervised release, and was ordered to pay a money judgment in the amount of $165,000 and to forfeit $69,900.22 and a BMW seized during the investigation.

Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Jeff Key, Chief, Opa-locka Police Department, and J.D. Patterson Jr., Director, Miami-Dade Police Department (MDPD), made the announcement.

Geovanys Guevara, 41, of Hialeah, was previously convicted by a federal jury of three counts of causing the filing of false reports of cash payments over $10,000 received in a trade or business, specifically Form 8300, with the Treasury Department, for the purpose of evading reporting these payments to the Treasury Department, in violation of Title 31, United States Code, Sections 5324(b)(2) and (d)(2).

As shown at trial and in court documents, Guevara purchased three cars in the names of another individual at a Miami-Dade car dealership: a Ferrari involving cash in the amount of $95,000, a Lamborghini involving cash in the amount of $20,000, and a Rolls Royce involving cash in the amount of $50,000.  Because Guevara used a straw buyer to purchase the vehicles, his actions caused the car dealership to file a Form 8300 for each purchase containing material omissions and misstatements of fact concerning the true identity of the person from whom the cash was received.  Federal law requires every non-financial trade and business to file a Form 8300 with the Treasury Department to report cash payments received over $10,000 during a transaction or two or more related transactions.

Mr. Ferrer commended the investigative efforts of the South Florida Financial Crimes Strike Force, with special commendation to IRS-CI, the Opa-locka Police Department, and the MDPD.  The case is being prosecuted by Assistant U.S. Attorneys Elijah A. Levitt and Timothy Abraham.

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 Gardens resident was sentenced today to 30 months in prison, followed by three years of supervised release, and was ordered to pay restitution in the amount of $64,557 for his participation in a stolen identity tax refund fraud scheme involving personal identification information taken from the State of Florida Department of Children and Families database.

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 Neil Melofchik, Acting Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, made the announcement.

Kyron Jonathan Nedd, 22, of Miami Gardens, previously pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title l8, United States Code, Section 1028A(a)(1).

According to court documents, between February 1, 2014 and July 18, 2014, fraudulent federal income tax returns for tax year 2013 were filed with the IRS from Nedd’s residence in Miami Gardens. The IRS refunded approximately $64,557 for those fraudulently filed tax returns.

Court documents state that on February 12, 2015, a federal search warrant was executed at Nedd’s residence, where agents discovered items containing personal identification information (PII) - names, dates of birth and social security numbers - of hundreds of individuals.  Inside Nedd’s bedroom, law enforcement found a safe with numerous debit cards and computer-generated printouts from the State of Florida Department of Children and Families (DCF) database.  IRS-CI agents have since determined that there were numerous instances in which the PII contained on the DCF printouts were used in fraudulent returns filed from Nedd’s residence.

According to court documents, federal law enforcement agents interviewed Nedd after serving the federal search warrant.  Nedd admitted to law enforcement that he electronically filed the income tax returns from his house and that the returns were false and prepared without the taxpayers’ permission.

Mr. Ferrer commended the investigative efforts of IRS-CI and USSS.  This case is being prosecuted by Assistant U.S. Attorney Daya Nathan.

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.

Miami brothers Ronet Blanc, 24, and Renet Blanc, 20, were sentenced yesterday to 94 months imprisonment and 82 months imprisonment, respectively, to be followed by three years of supervised release, for filing fraudulent unemployment insurance and Social Security claims using stolen identities.

Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Rafiq Ahmad, Special Agent in Charge, U.S. Department of Labor, Office of Inspector General (DOL-OIG), Office of Labor Racketeering and Fraud Investigations, Margaret Moore-Jackson, Special Agent in Charge, Social Security Administration, Office of Inspector General (SSA-OIG), Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Neil Melofchik, Acting Special Agent in Charge, United States Secret Service (USSS), Yukima Everett, Manager, Enforcement Section, Michigan Unemployment Insurance Agency, and J. Scott Dennis, Chief, North Miami Beach Police Department (NMBPD), made the announcement.

According to court records, Ronet and Renet Blanc were involved in a scheme that utilized the stolen identities of Michigan and Florida residents to file fraudulent unemployment insurance claims in both of those states. The State of Michigan Unemployment Insurance Agency then sent unemployment payments, by direct deposit, to bank accounts controlled by the Blancs in Florida. The Blancs were identified on bank surveillance photos withdrawing some of the unauthorized funds.

On Wednesday, March 18, 2015, officers executed a federal search warrant at the Blancs’ residence. In one bedroom, along with Renet Blanc’s personal items, law enforcement discovered numerous sheets of paper, ledgers, and other documents containing the personally identifying information (“PII”)—including names, dates of birth, and Social Security numbers—of various individuals who did not appear to live at the Blancs’ residence. In particular, law enforcement discovered in excess of 50 unique sets of PII on notebook paper, W-2 employment forms, and patient records. Law enforcement also discovered a debit card Renet Blanc was captured using at the bank to withdraw fraudulent unemployment insurance funds.

In another bedroom, along with Ronet Blanc’s personal items, law enforcement discovered a laptop computer. A subsequent forensic search of the computer revealed Ronet Blanc’s resume and a spreadsheet containing the personal identification information (“PII”)—including names, dates of birth, and social security numbers—of at least 3,000 individuals, including residents of Michigan and Florida.

In addition to the fraudulent unemployment insurance claims, the Blancs filed fraudulent Social Security claims. The combined actual intended loss which resulted from the Blancs’ conduct was over $2,000,000.00.        

Ronet Blanc and Renet Blanc each previously pleaded guilty to one count of using of one or more unauthorized access devices to obtain $1,000 in value or more during one calendar year, as well as one count of possession of fifteen or more unauthorized access devices, and one count of aggravated identity theft. U.S. District Judge Cecilia Altonaga ordered restitution for Renet Blanc in the amount of $25,724 and Ronet Blanc in the amount of $63,366.

Mr. Ferrer commended the investigative efforts of the U.S. Department of Labor, Office of Inspector General (DOL-OIG), Office of Labor Racketeering and Fraud Investigations, SSA-OIG, USPIS, HSI, USSS, Michigan Unemployment Insurance Agency and NMBPD. This case is being prosecuted by Assistant United States Attorney Ben Widlanski.

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.

Lawrence Foster, 50, from Miami Beach, was sentenced today to 152 months’ imprisonment by U.S. District Judge Donald L. Graham, for conspiring to commit wire fraud and committing substantive counts of wire fraud, and was ordered to pay over $8 million in restitution.  The Court also ordered the forfeiture of over $1 million that was seized by federal law enforcement.

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

Foster was convicted of all counts after a jury trial for his role in defrauding over 100 investors of over $8 million dollars.  Foster fraudulently promised investors that his company, Paradise is Mine, was developing land in the Bahamas.

The government announced its intent to use the forfeited monies to repay a portion of the $8 million owed to the victims of the fraudulent scheme.

Foster’s co-defendants were previously sentenced for their roles in the fraudulent scheme.

Salesperson Jordon McCarty, 37, of Fort Lauderdale, was sentenced in November 2013, to 78 month’s imprisonment for his role in defrauding investors.  Johana Leon, 39, of Miami Beach, was sentenced in May 2015, to one year and one day imprisonment, after being convicted of structuring currency transactions.

Mr. Ferrer commended the investigative efforts of the FBI.  The case was tried by Assistant U.S. Attorneys H. Ron Davidson and Robert Watson.  Assistant United States Attorneys Evelyn Sheehan and Karen Moore handled the forfeiture proceedings in this case.

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 Miami Dade College (MDC) employee was sentenced to 36 months in prison, followed by three years of supervised release, and was ordered to pay restitution in the amount of $19,083 for his participation in an identity theft tax fraud scheme.

Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Steve Steinberg, Chief, Aventura Police Department, made the announcement.

Michelson Jeancy, 35, of Miami, previously pled guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).

According to court documents, Jeancy worked at MDC as a Student Services Assistant. As part of his regular employment, the defendant had access to student records, which contained personal identifying information (“PII”).  Between February 2013 and June 2104, the defendant stole the PII of current and former MDC students. Using the students’ PII, the defendant and his accomplices filed fraudulent tax returns.

Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, and the City of Aventura Police Department.  The case is being prosecuted by Assistant U.S. Attorney Gera Peoples.

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.

Mohamed Hussain Said, 27, a citizen and resident of Nairobi, Kenya, was sentenced to 15 years in prison by U.S. District Judge Ursula Ungaro of the Southern District of Florida for conspiring to provide material support to three separately designated Foreign Terrorist Organizations, al-Qa’ida, al-Qa’ida in Iraq/al-Nusrah Front (AQI/al-Nusrah Front) and al-Shabaab.

Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.

On May 28, 2015, Said pleaded guilty to count one of an indictment charging him with conspiracy to provide money and recruits to al-Qa’ida, AQI/al-Nusrah Front in Syria and al-Shabaab in Somalia.  During the conspiracy, Said received a series of wire transfers from co-conspirator Gufran Ahmed Mohammed for the purpose of supporting al-Shabaab, and recruited experienced al-Shabaab fighters for AQI/al-Nusrah Front to fight in the conflict in Syria.  Additionally, Said tried to recruit other individuals for attacks within the United States.

Assistant Attorney General Carlin joined U.S. Attorney Ferrer in commending the investigative efforts of the FBI and the South Florida Joint Terrorism Task Force.  The case was prosecuted by Assistant U.S. Attorneys Brian K. Frazier and Ricardo A. Del Toro of the Southern District of Florida and Trial Attorney Jolie F. Zimmerman of the National Security Division’s Counterterrorism Section.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, A.D. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Office, Paul C. May, Sheriff, Okeechobee County Sheriff’s Office, John J. Burke, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), Fort Myers Regional Operation Center-Sebring Field Office, and Susan Benton, Sheriff, Highlands County Sheriff’s Office (HCSO) announce the filing of federal charges against 15 defendants for their alleged participation in a conspiracy to distribute controlled substances, specifically methamphetamines, in and around Okeechobee and Highlands Counties.  The defendants have been charged in a single indictment in the matter of United States v. Steven Lee Oakes, et. al., 2015-CR-14046-Martinez.  In addition to the federal indictment, 29 individuals have been charged by the Office of the State Attorney, 19th Judicial Circuit of Florida for their alleged participation in a related conspiracy to commit narcotics involved racketeering offenses.  This coordinated takedown to combat the drug epidemic is one of the largest in the history of Okeechobee and Highlands Counties. 

United States Attorney Wifredo A. Ferrer stated, “The continued collaboration between federal and local law enforcement agencies to attack drug trafficking activity is of paramount importance.  Methamphetamines continue to poison our communities at alarming rates.  Today’s indictment demonstrates that we are dedicated to protecting the public’s safety and improving the quality of life for law-abiding residents of South Florida by adopting proactive law enforcement initiatives.  We will continue to work with our State partners to prosecute individuals whose criminal conduct infects our communities.”

“Cooperative law enforcement is the enemy of these drug rings,” said DEA Special Agent in Charge A.D. Wright.  “These indictments and arrests demonstrate the commitment DEA has to combating organized networks that traffic drugs in our neighborhoods.  We would like to commend the federal and local law enforcement officers who worked side by side with the DEA.  We believe that citizens should be protected from rampant drug dealing and other criminal activity in their communities.”

“This operation illustrates the value of bringing the assets of Federal, State, County and Municipal agencies together in a coordinated investigative effort for maximum impact on an insidious and destructive threat to public safety. FDLE is pledged to support any effort to attack methamphetamine and the host of other illicit drugs that threaten the safety of our residents and visitors,” said FDLE Special Agent in Charge John J. Burke.

Sheriff Susan Benton, HCSO, stated, “As we see the direct link between property crimes and the use of methamphetamines; this significant, large scale investigation will certainly impact local crime and our citizens will be safer as a result. Thank you to our partners at the state and federal level for the help they provide to local residents.”

The federal indictment charges 15 defendants in the Southern District of Florida for their alleged participation in a methamphetamine distribution conspiracy.  Charged in the ten count indictment are Steven Lee Oakes, a/k/a “Wildman,” 59, of Davenport, Jetta Lyn Frake, 45, of Lorida, Lacy Junior Locklear, 47, of Davenport, Stephen Patrick Hall, Jr., 35, of Dundee, Daniel John Alsdorf, 58, of Okeechobee, James Ledger Carter, a/k/a “Buddy,” 61, of Lake Port, Teresa Lee Green, 45, of Okeechobee, Tanner Lyn Carter, 22, of Lake Port, Felisha Michelle Leitner, 28, of Okeechobee, David Allen Sparks, 49, of Okeechobee, Jamie Lea Hewitt, 35, of Okeechobee, Jessica Marie Bell, 28, of Okeechobee, Vickie Lynn Johnson, 47, of Okeechobee, Travis Wayne Carr, 23, of Okeechobee, and Timothy Dale Reid, 49, of Okeechobee.

The indictment alleges that all fifteen defendants conspired to distribute 50 grams or more of methamphetamine from as early as July 2014 and continuing to and including August 6, 2015, in Okeechobee and Highlands Counties, in the Southern District of Florida, and other locations, in violation of Title 21, United States Code, Sections 841(a)(1) and 846.

In addition to the conspiracy charge, a number of defendants were also indicted for possession with intent to distribute methamphetamine, in various amounts up to 50 grams or more, in violation of Title 21, United States Code, Section 841(a)(1).

• Steven Lee Oakes was charged with possession with intent to distribute 5 grams or more of methamphetamine on October 8, 14, and 28 of 2014, December 5, 2014 and April 26, 2015.  Oakes was also charged with possession with intent to distribute 50 grams or more of methamphetamine on December 17, 2014.

• Lacy Junior Locklear was charged with possession with intent to distribute 5 grams or more of methamphetamine on April 26, 2015.

• Daniel John Alsdorf was charged with possession with intent to distribute 5 grams or more of methamphetamine on April 28, 2015.

• Teresa Lee Green was charged with possession with intent to distribute a mixture or substance containing a detectible amount of methamphetamine on March 10, 2015.

• Vickie Lyn Johnson was charged with possession with intent to distribute 5 grams or more of methamphetamine on March 31, 2015.

During the course of the investigation, law enforcement seized a significant amount of methamphetamine.

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

The federal indictment is being prosecuted by Assistant U.S. Attorney Courtney L. Coker and Special Assistant United States Attorney Ryan L. Butler.   The state matters are being prosecuted by Assistant State Attorney Ashley Albright.

If convicted in federal court, the defendants face the following possible statutory sentences: a mandatory minimum of ten years and up to life in prison for the conspiracy to distribute and/or possession with intent to distribute 50 grams or more of methamphetamine; a mandatory minimum of five years and up to forty years in prison for possession with intent to distribute five grams or more of methamphetamine; and up to twenty years in prison for possession with intent to distribute a mixture or substance containing a detectible amount of methamphetamine.

Mr. Ferrer commended the collaborative efforts of the U.S. Attorney’s Office for the Middle District of Florida and the Okeechobee County Office of the State Attorney.   Mr. Ferrer thanked the OCDETF law enforcement agencies that assisted with this multi-faceted investigation, including the DEA, Okeechobee County Sheriff’s Office Narcotics Task Force, FDLE’s Fort Myers Regional Operations Center Sebring Field Office, HCSO, the Okeechobee Police Department, Glades County Sheriff’s Office, Saint Lucie County Sheriff’s Office, Fort Pierce Police Department, the Fort Pierce Offices of the United States Marshals Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HIS), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Port Saint Lucie Police Department, Martin County Sheriff’s Office, United States Border Patrol, and Indian River County Sheriff’s Office

An indictment and state charging instruments are only accusations 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.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, John P. Carlin, Assistant Attorney General for National Security, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and the members of the South Florida Joint Terrorism Task Force (JTTF), announce that Mohamed Hussain Said, 27, a citizen and resident of Nairobi, Kenya, was sentenced to fifteen years in prison by U.S. District Judge Ursula Ungaro, for conspiring to provide material support to three separately designated Foreign Terrorist Organizations, al-Qa’ida, al-Qa’ida in Iraq/al-Nusrah Front (“AQI/al-Nusrah Front”), and al-Shabaab.

On May 28, 2015, Said pled guilty to Count 1 of an Indictment charging him with conspiracy to provide money and recruits to al-Qa’ida, AQI/al-Nusrah Front in Syria, and al-Shabaab in Somalia. During the conspiracy, Said received a series of wire transfers from co-conspirator Gufran Ahmed Mohammed for the purpose of supporting al-Shabaab, and recruited experienced al-Shabaab fighters for AQI/al-Nusrah Front to fight in the conflict in Syria.  Additionally, Said tried to recruit other individuals for attacks within the United States.

Mr. Ferrer commended the investigative efforts of the FBI and the South Florida Joint Terrorism Task Force.  The case was prosecuted by Assistant U.S. Attorneys Brian K. Frazier and Ricardo A. Del Toro and Trial Attorney Jolie F. Zimmerman from the Counterterrorism Section of the Justice Department’s National Security Division.

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 North Miami resident was sentenced to 31 months in prison, followed by three years of supervised release, and was ordered to pay restitution in the amount of $18,469 for his participation in a stolen identity tax refund fraud scheme.

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

Alexander Paul, 23, previously pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).

According to court documents, from February 2, 2014 to May 20, 2014, fifty-three (53) tax returns were filed from Paul’s residence claiming federal tax refunds of $109,322. The IRS paid out $18,469 in refunds on those tax returns.

A search warrant was executed at the defendant’s residence where law enforcement found and seized evidence relating to identity theft and the filing of false tax returns. Personal identification information (PII) of other individuals was found in a notebook, computer, and two cellular telephones in Paul’s bedroom. The computer also contained copies of tax returns filed in the names of other individuals.

Paul admitted to law enforcement that he possessed the PII found in the residence, that he prepared and filed the 53 tax returns electronically submitted to the IRS, and that he loaded the refunds obtained onto debit cards. The defendant did not have permission or authority to use the PII, belonging to other individuals, to prepare the tax returns.

Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. The case is being prosecuted by Assistant U.S. Attorneys Daya Nathan and Brooke C. Watson.

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.

An Indian River County resident was sentenced by U.S. District Judge Jose E. Martinez in Fort Pierce, Florida on August 25, 2015, to 24 years and 5 months in prison for enticing minors over the internet.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Deryl Loar, Sheriff, Indian River County Sheriff’s Office (IRCSO), and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), made the announcement.

Jay Frederick Nagel, 26, of Indian River County, was sentenced to concurrent terms of 292 months’ imprisonment following his guilty plea to three counts of enticement of a minor, in violation of Title 18, United States Code, Section 2422(b).  Following his term of imprisonment, the defendant will be placed on supervised release for 20 years and be required to register as a sex offender.   

According to court records, Nagel created a Facebook account using the alias “Jonathan Langley” and purported to be between 21 and 23 years of age. In the fall of 2013, Nagel used Facebook’s private messaging service in order to communicate with 12 to 17 year old minor females in Indian River County.  Search warrant records for Nagel’s Facebook account produced the message content data of the defendant’s communications with the minor victims.  Nagel targeted emotionally vulnerable minors.  Nagel would befriend, compliment and express his interest in the minors, over the internet.  After establishing a connection with the minors over the internet, Nagel would meet the victims in person and on occasion provide them with alcohol or marijuana.  Nagel also enticed the minors to engage in sexual acts with him at his place of employment, at his apartment, or at the victims’ residences. 

Mr. Ferrer commended the investigative efforts of the Indian River County Sheriff’s Office and ICE-HSI for their work on this case.  The case is being prosecuted by Special Assistant U.S. Attorney Ryan Butler.

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 United States District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

Four Tampa residents plead guilty to their involvement in a conspiracy to import a synthetic cannabinoid, XLR-11, a/k/a “Spice,” and paraphernalia to the United States from China, before United States Chief Magistrate Judge Frank J. Lynch, Jr., in Ft. Pierce, Florida.

Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), A.D. Wright, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division, and Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, made the announcement.  

Saiful Hossain, 28, of Tampa, pleaded guilty to conspiracy to import a Schedule l controlled substance (XLR-11) and conspiracy to manufacture, possess with intent to manufacture and distribute a Schedule l controlled substance (XLR-11).  Each offense carries a maximum penalty of 20 years in prison. Hossain also agreed to the forfeiture of assets totaling over $1.5 million and real property in St. Petersburg, Florida.  

Last week, on Tuesday, August 11, 2015, Ahmed Yehia Khalifa, 28, and Ahmed Maher Elhelw, 25, both from Tampa, pleaded 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).  Each offense carries a maximum penalty of 20 years in prison. The defendants also agreed to the forfeiture of assets totaling $472,780.00.  

On Wednesday, August 12, 2015, Tanjina Islam Piya, 24, of Tampa, pleaded guilty to conspiracy to import drug paraphernalia.  The offense carries a maximum penalty of 3 years in prison.  The defendant also agreed to the forfeiture of assets totaling $157,158.80 and real property in St. Petersburg, Florida. 

The sentencing for the four defendants has been set for October 22, 2015, before U.S. District Court Judge Donald M. Middlebrooks in West Palm Beach, Florida.

According to allegations contained in court records, U.S. Customs and Border Protection (CBP) Officers in New York identified, searched and detained twelve United States 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 allegedly 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 allege 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 a Schedule I or II controlled substance.  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 HSI, DEA, USPIS, CBP, Hillsborough County Sheriff’s Office, 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.           

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.

Broward man charged in federal court for using a means of interstate commerce to attempt to entice a mother and her minor daughters to engage in incest

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Dave Aronberg, State Attorney, Palm Beach County, George Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office and Rick Bradsaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO), made the announcement.

Aaron J. Fink, 44, of Deerfield Beach, has been charged by a criminal complaint with using the internet to attempt to entice a mother and her two minor children to engage in illegal sexual activity.  Fink is presently in state custody at the Palm Beach County jail and is expected to appear for Initial Appearance in two weeks before a United States Magistrate Judge upon which the government will seek his detention.  If convicted, the defendant faces a 10 year mandatory term of imprisonment and a maximum term of life.

Between June 29, 2015, and August 13, 2015, Fink sent numerous sexually explicit messages via a public website, e-mail and text messages to an undercover officer who posed as the single mother of two minor daughters, 8 and 12 years old.  As alleged in the criminal complaint, Fink discussed his desire to have sexual intercourse with the mother and both children as part of an incestuous relationship.  Fink’s desires culminated on August 13, 2015, when he drove to West Palm Beach in an attempt to meet the mother and her children to engage in illegal sexual activity.  PBSO intercepted Fink and he was arrested.  Fink later confessed to sending sexually explicit messages to the mother, whom he did not know was an undercover officer.  Fink also admitted that he traveled to West Palm Beach to meet the mother and minor children to “possibly” engage in sexual activity with them.  

This case was adopted from state prosecution in cooperation with the Palm Beach County State Attorney’s Office and the South Florida ICAC. This case was also brought into federal court as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse.  Project Safe Childhood was launched in May 2006 by the Department of Justice and is led by United States Attorney’s Offices and the Criminal Division’ Child Exploitation and Obscenity Section (CEOS).  Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. 

The case is being prosecuted by Assistant U.S. Attorney Adam McMichael and Special Assistant U.S. Attorney Gregory Schiller from the Palm Beach State Attorney’s Office. 

A 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 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 Court Judge Darrin P. Gayles for her participation in a stolen identity tax refund fraud scheme. Melissa Pearl Davis (“Davis,”) 32, was sentenced to 48 months in prison, followed by three years of supervised release, and was ordered to pay restitution in the amount of $219,721.

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 Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (“IRS-CI”), made the announcement.

Davis and her co-defendant, Kiesha Adderly Mitchell (“Mitchell,”) 36, each previously pled guilty to one count of conspiracy to defraud the government with respect to claims, in violation of Title 18, United States Code, Section 286, and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2. As part of their plea agreements, each defendant agreed to restitution in the amount of $219,721.

According to court documents, in 2009, the defendants applied to the Internal Revenue Service (“IRS”) for Electronic Filing Identification Numbers (“EFINs”) in the name of corporate or fictitious entities they controlled, including K. Mitch Services, Inc. and Pebbles Tax & Notary Services.  The defendants used those EFINs to submit false and fraudulent federal income tax returns to the IRS, using the names and Social Security numbers of other individuals, without the taxpayers’ authority.   After the tax returns were received by the IRS, various financial institutions would authorize the defendants to load onto debit cards refund anticipation loans in the names of tax payers whose names and Social Security numbers were used to file the false and fraudulent tax returns. The defendants then withdrew the unlawfully obtained tax proceeds from the debit cards for their personal use and enrichment.  The total intended loss from the defendants’ false and fraudulent filings of unauthorized income tax returns was over $400,000.

A sentencing date has not been set for Mitchell.

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

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

Fourteen individuals have been charged by federal indictment with conspiracy to commit marriage fraud and related immigration fraud charges.

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

Odalys Marrero, 51, of  Kendall, Rolando Mulet, 62, of Kendall, Katiusca Elena Aguilar Navarro, 28, of Doral, Carlos Alberto  Mederos Paule, 46, of Miami, Manuel Andres Gomez, 46, of Wilton Manors, Virginia De La Caridad Mederos Paule, 57, of Miami, Elisabet Kerese Alvarez, 38, of Aventura, Osvaldo Lastre Duran, 48, of Sweetwater, Natacha Perera, 44, of North Miami, Javier Manejias, 51, of Antioch, TN, Marianelly Auxiliado Rodriguez, 48, of Doral, Rafael Abreu Gonzalez, 46, of Hialeah, Okyvi Olmar Yoll Mesa, 35, of Doral, and Salvador L Cabanas, 44, of Kendall, have been charged by federal indictment with conspiracy to commit marriage fraud and related immigration fraud charges.

According to the indictment, between December 2009 and July 2014, organizers, Marrero and Mulet recruited Cuban citizens eligible for lawful permanent residence under the Cuban Adjustment Act to enter into fraudulent marriages with aliens for the purpose of evading the immigration laws of the United States. Marrero and Mulet charged the aliens a fee to arrange the fraudulent marriages, notarized the fraudulent marriage licenses, completed the necessary immigration paperwork, and prepared the co-conspirators for their interviews with United States Citizenship and Immigration Services. Aliens Aguilar Navarro, Andres Gomez, Kerese Alvarez, Perera, Auxiliado Rodriguez, and Yoll Mesa, all paid a fee to enter into fraudulent marriages with Alberto Mederos Paule, Virginia De la Caridad Mederos Paule, Lastre Duran, Manejias, Abreu Gonzalez, and Cabanas. These fraudulent marriages took place in the Southern District of Florida.

U.S. Attorney Ferrer stated, “Immigration fraud is a serious crime that undermines our nation’s immigration system and can pose a risk to our security.  Our Office will continue to work with our law enforcement partners to investigate these crimes and prosecute those individuals who seek to perpetrate fraudulent immigration schemes.”

"These arrests serve as a reminder that America's legal immigration system is not for sale," said Alysa D. Erichs, special agent in charge of ICE-HSI in Miami. "HSI will not tolerate the exploitation of our country's immigration system. We will work aggressively to investigate and bring to justice those who seek to compromise the integrity of that system for personal profit or to evade immigration laws."

“USCIS has no tolerance for immigration fraud,” said Linda Swacina, Director for the USCIS Miami District. “Anyone tempted to take advantage of America’s hospitality needs to understand that USCIS is committed to ensuring the integrity of our nation’s immigration system and along with our law enforcement partners will prosecute those committing fraud to the fullest extent of the law.”

Mr. Ferrer commended the investigative efforts of ICE-HSI and USCIS, who provided significant and valuable support to this investigation.

The case is being prosecuted by Assistant United States Attorney Robert Emery.

An indictment is only an accusation, and the defendants are 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.

Kirk Chambers, a former Trooper with the Florida Highway Patrol (FHP), was sentenced today before U.S. District Court Judge Cecilia Altonaga for his participation in a bribery scheme.

Wifredo A. Ferrer, U.S. 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. 

On August 20, 2015, U.S. District Court Judge Cecilia Altonaga sentenced former FHP Trooper Kirk Chambers to 51 months’ imprisonment.  Chambers had previously pleaded guilty to violation of 18 U.S.C. § 1951(a), that is, participating in a conspiracy to affect commerce through extortion under color of law.  Chambers’ co-conspirator in the offense, Guillermo “Tony” Sepulveda was previously sentenced by Judge Altonaga to 37 months imprisonment on August 4, 2015.

According to the facts set forth in court documents, Chambers was employed as a sworn FHP Trooper between 2006 and 2015.  In 2013, the FBI and local law enforcement agencies opened an investigation into allegations that South Florida law enforcement personnel were being paid bribes by local wrecker operators to illegally solicit business from stranded drivers at accident scenes.  Chambers was one of the officers identified as taking bribes.

In 2014, an FBI confidential source (CHS) approached Guillermo “Tony” Sepulveda, the owner and operator of a local Miami based towing company.  Under FBI direction, the CHS told Sepulveda that he had a corrupt “chiropractor” that was interested in purchasing confidential accident information from law enforcement in order to permit the chiropractor to illegally solicit business from the accident victims.  Sepulveda agreed to participate and introduced the CHS to Trooper Chambers.

Between September and November 2014, Chambers used his position to download the personal information of approximately 100 accident victims from FHP servers.  Chambers provided that information to the CHS in return for $5,000, during a series of transactions.  For his part in the conspiracy, Sepulveda was paid $1,200. 

On January 22, 2015, Chambers was interviewed by the FBI and admitted participating in the bribery scheme.  Chambers also admitted being paid thousands of dollars in bribes by various tow truck operators for a number of years.

Mr. Ferrer commended the investigative efforts of the FBI Miami Area Corruption Task Force, Florida Division of Insurance Fraud and the Florida Highway Patrol.  This case is being prosecuted by Assistant U.S. Attorney Anthony Lacosta.

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 individuals pled guilty for endorsing and cashing stolen and fraudulently obtained United States Treasury checks.

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.

Pete Hoggins, 32, and Hani Sobhi Alshaikh, a/k/a “Danny”, 35, both of the Southern District of Florida, each pled guilty to one count of conspiracy to commit forgery and theft of public money, in violation of Title 18, United States Code, Section 371. Hoggins also pled guilty to one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.  The defendants face a maximum statutory sentence of five years in prison for the conspiracy charge, and Hoggins also faces a mandatory term of two years in prison, consecutive to any other term of imprisonment, for the aggravated identity theft charge.

According to court documents, Alshaikh worked at a gas station in Pompano Beach, Florida.  On multiple occasions from December 2011 to January 2014, Hoggins brought Alshaikh stolen and fraudulently obtained Treasury checks to cash at this gas station.  Hoggins and Alshaikh forged the payees’ endorsements on the Treasury checks.  Alshaikh then deposited those checks into several different business checking accounts that he had opened at various banks in the name of his company, HSA Investment Group.

The total number of victims in the scheme was more than 50, but less than 250. The total amount of intended loss was more than $200,000 but less than $250,000.

Hoggins is scheduled to be sentenced on October 2, 2015 at 10:30 a.m., and Alshaikh is scheduled to be sentenced on October 29, 2015 at 10:00 a.m., both before United States District Judge William J. Zloch.

Mr. Ferrer commended the investigative efforts of IRS-CI.  This case is being prosecuted by Assistant U.S. Attorney Alicia E. Shick.

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 defendants sentenced by U.S. District Judge Kathleen M. Williams for an identity theft fraud scheme involving a $144,170 tax refund check.

Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, made the announcement.

On August 19, 2015, Eve Mary Jean, 30, of Miami Beach, Florida, was sentenced to 24 months in prison, followed by three years of supervised release.  On July 17, 2015, co-defendant James Medard, a/k/a “James Joseph,” 40, of Pembroke Pines, Florida, was sentenced to 16 months in prison, followed by three years of supervised release, and was ordered to pay restitution in the amount of $144,170.

Each of the defendants previously pled guilty to one count of theft of government property, in violation of Title 18, United States Code, Sections 641 and 2, and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections l 028A(a)(1) and 2.

According to court documents, the defendants stole a United States Department of Treasury tax refund check in the amount of $144,170 that was in the names of two identity theft victims. Jean opened a checking account in the names of the victims, and Medard deposited the check into the account by forging the victims’ names on the back of the check. The victims did not know Medard or Jean, and did not authorize the defendants to possess or deposit the check.

Court documents state that Jean withdrew $110,000 from the fraudulent bank account by making a check payable to Destiny Real Estate Investment, a company owned by Medard. Jean and Medard then deposited the check into Destiny Real Estate Investment’s bank account. Jean issued two other checks to Medard in the amounts of $9,200 and $15,000 from the bank account that she had set up in the names of the victims.

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

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

Two North Miami brothers were sentenced for an identity theft tax fraud scheme involving students and other individuals’ personal identifying information. Rigo Octavio Lopez, 25, and Luis Daniel Lopez Morales, 19, were each sentenced to 48 months in prison, followed by three years of supervised release, and were ordered to pay restitution in the amount of $49,902.

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

Each defendant previously pled guilty to one count of using one or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(2), and one count of aggravated identify theft, in violation of Title l8, United States Code, Section 1028A(a)(1).

According to court documents, between January 31, 2014 and July 8, 2014, a total of 494 fraudulent income tax returns for tax year 2013 were filed with the IRS from the defendants’ home in North Miami. The fraudulent returns claimed approximately $237,092 in tax refunds.  The IRS paid out approximately $49,902 for the fraudulent returns.

On February 11, 2015, a federal search warrant was executed at the home of Lopez and Lopez Morales.  Federal agents recovered dozens of items containing personal identifying information (PII), including handwritten ledgers with account and PIN numbers, handwritten documents with names and dollar amounts, numerous pre-paid debit cards, lists from the Florida Department of Motor Vehicles, and printouts of “Student Information” from the Miami-Dade Public School system.  The school printouts contained the names, dates of birth, and social security numbers of current or former Miami-Dade students.  Some of the PII listed in the printouts corresponded with fraudulent income tax returns that had been filed from the defendants’ residence.

Both Lopez and Lopez Morales admitted to law enforcement that they filed fraudulent income tax returns from their home.

Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. The case is being prosecuted by Assistant U.S. Attorneys Daya Nathan and Brooke C. Watson.

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 leader of a Little Haiti based drug trafficking organization and identity theft tax fraud scheme pled guilty today before Senior United States District Judge Donald L. Graham. 

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, Hugo J.  Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.

Espere Desmond Pierre, 33, of Miami, pled guilty to conspiracy to possess with intent to distribute over two hundred eighty (280) grams of crack cocaine, in violation of Title 21, United States Code, Sections 846 and 841(b)(1)(A); possession with intent to distribute over 28 grams of crack cocaine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B); possession of a firearm in furtherance of a drug-trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A); conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349; and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). 

Pierre is scheduled to be sentenced in early November 2015, at a date and time to be announced shortly by the Court.

According to court documents, Pierre and co-defendant Markentz Blanc, 34, of Miami, conspired as supervisors and directors of a drug-trafficking organization that distributed cocaine base (commonly referred to as “crack” cocaine) through multiple storage and retail distribution locations in the Little Haiti area of Miami-Dade County.  Pierre and Blanc also conspired to obtain the personal identifying information (including the names, dates of birth, and Social Security numbers) of various persons.  Pierre and Blanc then used the unauthorized information to submit fraudulent tax returns in order to claim income tax refunds to which they were not entitled. 

Earlier this year, Blanc and another co-defendant, Willis Maxi, 33, of Miami, were each convicted following a jury trial and sentenced to 300 and 312 months’ imprisonment, respectively.  Five additional co-defendants – including Meluin Jermaine Braynen, 21, Wisvelt Voltaire, 33, Alex Bermudez, 26, Sanders Bermudez, 23, and Kervens Lalanne, 25, all of Miami, previously pled guilty and were sentenced to terms of imprisonment ranging from 18 to 188 months.

Through its Violence Reduction Partnership, the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminal networks in various neighborhoods in the Southern District of Florida, while simultaneously working with community leaders and concerned citizens to mentor at-risk youth, provide job training, coordinate social services and support the reintegration of ex-offenders (returning citizens) to the community.

Mr. Ferrer thanked FBI, ATF, IRS-CI, the Miami-Dade Police Department, and the City of Miami Police Department for their work on this case.  The case is being prosecuted by Assistant U.S. Attorneys Seth M. Schlessinger and Olivia S. Choe.       

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 Plantation resident pled guilty for his participation in a scheme utilizing stolen identities to commit income tax, unemployment, and credit card frauds.

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), Neil Melofchik, Acting Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, and John E. Brooks, Chief, Sunrise Police Department, made the announcement.

Leonce V. Jeudy, 24, pled guilty to one count of possession with intent to distribute controlled substances, in violation of Title 21, United States Code, Section 841(a)(1), two counts of access device fraud, in violation of Title 18, United States Code, Sections 1029(a)(2) and 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. At sentencing, the defendant faces a maximum statutory sentence of twenty years in prison for the possession with intent to distribute controlled substances charge, ten years in prison for each of the access device charges, and a mandatory term of two years in prison, consecutive to any other term of imprisonment, for the aggravated identity theft charge.

According to court documents, on January 7, 2015, a detective with the Sunrise Police Department initiated a traffic stop of a vehicle driven by Jeudy.  After smelling the odor of marijuana emanating from  the vehicle, the detective conducted a search of the car and found a loaded handgun, ammunition, approximately twenty credit cards in various names, new iPhones and iPads, bank records of an unrelated individual, and receipts of four Visa debit cards purchased earlier that day for approximately $2,000.

Police officers obtained a state search warrant for Jeudy’s residence.  During the execution of the warrant, officers found more than 100 credit and debit cards in the names of various individuals, numerous documents with the personally identifying information (“PII”) of different individuals, along with various electronic devices including numerous computers, thumb drives, and cellular telephones.  The officers also recovered from an AK-47 rifle, hundreds of rounds of different caliber ammunition, butylone, ethylone (commonly known as “Mollys”), several smaller packages of powder and crack cocaine, and other drug paraphernalia.

Subsequent forensic analysis by federal law enforcement revealed more than 8,000 sets of PII were found on the recovered digital devices.  In addition, an analysis revealed that some of  the recovered debit cards had received approximately $30,000 in fraudulent income tax refunds and were associated with fraudulent unemployment insurance claims. Law enforcement further determined that Jeudy was responsible for filing unemployment insurance benefits claims totaling $100,000.

Jeudy is scheduled to be sentenced on October 22, 2015 at 9:30 a.m. before United States District Judge Beth Bloom.

Mr. Ferrer commended the investigative efforts of IRS-CI, DOL-OIG, USSS, and the Sunrise Police Department.  The case is being prosecuted by Assistant U.S. Attorney Jonathan Kobrinski.

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.

This week three Tampa residents pleaded guilty to their involvement in a conspiracy to import a synthetic cannabinoid, XLR-11, a/k/a “Spice,” and paraphernalia to the United States from China, before United States Chief Magistrate Judge Frank J. Lynch, Jr., in Ft. Pierce, Florida.

Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), A.D. Wright, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division, and Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, made the announcement. 

On Tuesday, August 11, 2015, Ahmed Yehia Khalifa, 28, and Ahmed Maher Elhelw, 25, both from Tampa, pleaded 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).  The defendants agreed to the forfeiture of assets totaling $472,780.00.   Each offense carries a maximum penalty of 20 years in prison.

On Wednesday, August 12, 2015, Tanjina Islam Piya, 24, of Tampa, pleaded guilty to conspiracy to import drug paraphernalia.  The defendant also agreed to the forfeiture of assets totaling $157,158.80 and real property in St. Petersberg, Florida.  The offense carries a maximum penalty of 3 years in prison.

A fourth co-defendant, Saiful Hossain, is scheduled for trial August 24, 2015, in Ft. Pierce, Florida, before U.S. District Court Judge Donald M. Middlebrooks.  Hossain is presumed innocent of the charges contained in the indictment until proven guilty beyond a reasonable doubt.

According to court records, HSI, along with other law enforcement agencies, in the Southern and Middle Districts of Florida, have been investigating individuals who are importing illegal “smokable synthetic cannabinoids” (“SSC”) containing Schedule I controlled substances and drug paraphernalia.

On November 7, 2014, HSI agents arrested Elhelw in Vero Beach and recovered a three (3) kilogram package of the controlled substance XLR-11, a chemical used in the manufacture of SSC.  Further investigation revealed that as a result of the conspiracy, at least seven (7) parcels, containing 3 kilograms each of XLR-11, were imported into the Southern District of Florida, with a street value of approximately $5,460,000.00.

On May 19, 2015, federal search warrants were executed at various locations, including residences, a storage facility, and safe deposit boxes.  At the home shared by Hossain and Piya, agents recovered documentary evidence of the importation of “Spice” and drug paraphernalia. After having received consent from Hossain, law enforcement searched a storage facility and found drug paraphernalia and approximately 6.27 pounds of green leafy product (containing a mixture of Schedule I controlled substances XLR-11 and PB-22 and 5-fluoro AB-PINACA, an analogue intended for human consumption).   Agents seized ledgers listing “Spice” brands and amounts, as well as jars, containing a mixture of containing 5-fluoro ABICA, an analogue intended for human consumption, from Khalifa’s residence.  At the homes of Piya/Hossain, Elhelw and Khalifa, agents also seized money.

On June 12, 2015, HSI agents executed a federal search warrant at a residence connected to Khalifa and Hossain.  Therein, agents seized numerous kilograms of leafy product, containing a mixture of XLR-11 and PB-22; bottles of FUB-PB-22, an analogue intended for human consumption; and drug paraphernalia.  The investigation revealed that the controlled substances had been shipped from China.

The court records further allege 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 a Schedule I or II controlled substance.  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 HSI, DEA, USPIS, United States Customs and Border Protection, Hillsborough County Sheriff’s Office, 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.

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.

Six defendants were indicted on charges stemming from their participation in an extensive tax refund and identity theft fraud scheme involving thousands of individuals’ personal identifying information (PII).

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), Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Ronald J. Verrochio, 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), Hugo J. Barrera, 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, Ray Black, Chief, City of Miramar Police Department, Steve Steinberg, Chief, Aventura Police Department, J. Scott Dennis, 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,” 26, Frances Jeudy, a/k/a "Money Makin Rab," a/k/a "Brizzleon111," 26, Kerby Luma, a/k/a "Money Makin Kerb," 26, Frantz Decoste, a/k/a "Gripe_111," 20, all of Miramar, and Andy Cherrelus, a/k/a "Risktakers111," 24 of Miami, were charged with 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 seven counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). Jeudy and Decoste were each also charged with five counts 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, was charged with one count of conspiracy to possess unauthorized access devices, in violation of Title 18, United States Code, Section 1029(b)(2), and 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 allegations contained in the indictment, the defendants obtained personal identifying information (“PII”), including the names, dates of birth, and Social Security numbers of thousands of individuals, and used this PII to file fraudulent federal income tax returns with the IRS.  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 allegedly withdrew the unlawfully obtained tax proceeds for their personal use and to further the fraud scheme.  Court documents further allege that Jeudy and Decoste also unlawfully possessed five United States Treasury checks that had been stolen out of the mail.

If convicted, 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.

U.S. Attorney Wifredo A. Ferrer stated, “Our efforts continue to identify and prosecute those who unlawfully access, possess, use and/or disseminate personal identifying information.   We will not tolerate offenders who target hard earned monies of private citizens.  The dedicated efforts of our federal, state and local law enforcement partners make these prosecutions possible.”

IRS-CI Special Agent in Charge Kelly R. Jackson stated, “Stealing identities and filing false tax returns is a serious crime that will not be tolerated. These investigations remain a top priority for IRS Criminal Investigation. We will continue to hold accountable those who steal and use other peoples’ identities to commit tax fraud and other offenses.”

"This investigation serves as a clear warning to individuals that steal the identities of innocent taxpayers and use the information for personal profit, that they will be aggressively pursued, investigated and prosecuted," said Alysa D. Erichs, Special Agent in Charge for HSI Miami.

"South Florida law enforcement partners continue to work together to stop these criminals from committing identity theft and tax fraud," said Ronald Verrochio, Inspector in Charge, USPIS, Miami Division. "We have proven that together we can make a huge impact in the fight against identity theft and tax fraud."

“Unfortunately, this is another example of the growing wave of stolen identity tax fraud,” said George L. Piro, Special Agent in Charge of FBI Miami Division.  “The FBI and our partners continue to actively target these fraudsters who seek illicit gains by victimizing hard-working taxpayers.”

Mr. Ferrer commended the investigative efforts of the IRS-CI, ICE-HSI, USPIS, DOL-OIG, ATF, FBI Miami Cyber Task Force, NMBPD, as well as the Miramar, Aventura, and Fort Lauderdale Police Departments.  Mr. Ferrer thanked the Miami-Dade Police Department and the Georgia State Patrol, and the United States Attorney’s Office for the Northern District of Georgia, for their assistance in this matter.  The case was initially handled by Assistant United States Attorney Gera R. Peoples and is currently being prosecuted by Assistant United States Attorney Brooke C. Watson.

An indictment 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.