Southern District of Florida

A Broward County resident pled guilty in an identity theft fraud scheme involving 734 unauthorized tax returns.

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.

Keyiona Marvette Wright, 27, of Plantation, Florida, pled guilty to one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.  The defendant faces a maximum statutory sentence of twenty years in prison for the conspiracy 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, from March 25, 2014 to May 6, 2015, forty-six federal tax returns were filed with the IRS claiming refunds of $135,196 from an IP address in Plantation.  From September 16, 2014 to May 5, 2015, at least 688 rejected federal tax returns, claiming refunds of $733,276, were electronically transmitted to the IRS from this same IP address.  Agents confirmed that the IP address was assigned to an apartment rented by Wright.

Based on this information, agents executed a search warrant at Wright’s residence and found four notebooks containing PII, two computers (one of which had numerous Social Security numbers and other personal identification information (PII) displayed on the screen), a bag and suitcase each containing thousands of PII in paper form, multiple pre-paid/value cards and gift cards, hundreds of documents containing PII (including Department of Labor applications), and papers containing PII scattered throughout the apartment.  A forensic analysis revealed that the documents, computers, and debit/credit cards seized from Wright’s residence contained identifying or account information for over 14,000 individuals.

Court documents also indicate that agents found a laptop computer outside Wright’s apartment that contained a video depicting the defendant counting money.

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

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

 

 

A Coral Springs resident has pled guilty to stealing government money.

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 Tony Pustizzi, Chief, Coral Springs Police Department, made the announcement.

Lenord Williams, 28, of Coral Springs, Florida, pled guilty to one count of theft of government money, in violation of Title 18, United States Code, Section 641. At sentencing, Williams faces a maximum statutory sentence of ten years in prison and forfeiture of stolen funds.

According to court documents, on August 25, 2012, probation officers conducted a planned compliance search of Williams’ residence and discovered eight United States Treasury checks, worth $41,638.40, in Williams’ nightstand in other individuals’ names. Seven of the checks were payments of tax refunds, and the other check was a monthly Social Security payment.   The defendant admitted that he has someone cash the unauthorized checks for him.

Williams is scheduled to be sentenced on October 23, 2015 at 10:00 a.m. before United States District Judge James I. Cohn.

Mr. Ferrer commended the investigative efforts of IRS-CI and the Coral Springs Police Department.  This case is being prosecuted by Assistant U.S. Attorney Jared M. Strauss.
 

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 president of Broward Teachers Union was charged with committing mail fraud. 

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

Patrick Santeramo, 67, of the Southern District of Florida, was indicted on two counts of mail fraud, in violation of Title 18, United States Code, Section 1341.

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

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

Court documents further allege that each year, Santeramo would send a letter to the School Board of Broward County to explain how the money dedicated to the Accountability Program had been used during the previous school year.  Subsequently, he also would send a letter to the School Board of Broward County requesting the next payment of $80,000 for the Accountability Program for the upcoming school year.  In response to Santeramo’s letters explaining the use of the Accountability Program funds, the School Board of Broward County would mail a check for $80,000 to the BTU.

It is alleged that after the BTU received the $80,000 payment from the School Board of Broward County, Santeramo authorized payments from the Accountability Program account for himself and at least one other employee of the BTU to which they were not entitled.  Santeramo omitted reference to these payments in his letters to the School Board of Broward County.  Consequently, Santeramo allegedly misappropriated, and caused to be misappropriated, in excess of $35,000 between January 2006 and June 2011.

Mr. Ferrer commended the investigative efforts of the DOL-OIG.  The case is being prosecuted by Assistant U.S. Attorney Harry C. Wallace, Jr.

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 assistant band director pled guilty for his participation in an identity theft tax fraud scheme involving former Broward County students and other 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), and Neil Melofchik, Acting Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, made the announcement.

Delvis Demaine Rogers, 27, of Hollywood, Florida, 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). As part of his plea agreement, the defendant agreed to pay restitution in the amount of $129,321. At sentencing, the defendant faces a maximum statutory sentence of ten years in prison for the unauthorized access devices 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 419 suspicious tax returns claiming refunds totaling $754,470 were filed from Rogers’ residential address from January 25, 2014 to April 20, 2014.  Based on this information, a search warrant was executed at Rogers’ residence and agents discovered and seized papers, notes, and documents containing thousands of PII (including names, dates of birth, and social security numbers) including PII contained in records of more than a dozen Broward County School District students, some dating back to the late 1990s and others into the late 2000s. Agents also seized numerous printed 2013 tax returns.

Agents interviewed Rogers during the execution of the search warrant and he admitted to having prepared and filed hundreds of fraudulent tax returns without the permission of the people in whose names they were filed.  Rogers further admitted that he electronically submitted the filings from his apartment. Rogers advised that he was employed as the band director at a school in Opa Locka, Florida, and that he previously was the assistant band director at a high school in Plantation, Florida.

Rogers is scheduled to be sentenced on October 23, 2015 at 9:30 a.m. before United States District Judge James I. Cohn.

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

Yesterday, a Port St. Lucie woman was sentenced to five years of probation, and was ordered to pay $14,421.00 in restitution, by United States District Judge Donald M. Middlebrooks, for her participation in an unemployment insurance fraud scheme.

Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of the Inspector General (DOL-OIG), and Jesse Pannucio, Executive Director, State of Florida’s Department of Economic Opportunity (DEO), made the announcement.

Hyacinth Oslin Reid, 55, of Port St. Lucie, previously pled guilty to one count of mail fraud.

According to court documents, Reid was a registered nurse who first filed for unemployment insurance benefits in October 2009, when she became unemployed.  The unemployment payments were mailed to Reid bi-weekly by the DEO, which administers the unemployment insurance benefit program in the State of Florida using monies provided by the federal government.  Every two weeks, Reid was required to certify to the DEO that she remained unemployed and eligible for the benefit payments.

After qualifying for the unemployment insurance benefits, however, Reid did find work again at a new job, which should have disqualified her for further payment under the program.  Reid instead continued to fraudulently certify her eligibility for unemployment benefits every two weeks, between October 2009 and September 2010.  In this manner, Reid fraudulently accumulated $14,421 in unemployment benefit check payments for which she was not lawfully entitled.

Mr. Ferrer commended the investigative efforts of the DOL-OIG and DEO.  The case was prosecuted by Assistant U.S. Attorney Theodore M. Cooperstein.

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 Police Department officer pled guilty to participating in a wire fraud scheme, arising out of the operation of a series of credit repair businesses.

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

Miami-Dade Police Officer George Price, 42, of Miami-Dade, pled guilty to conspiracy to commit wire fraud, in violation of Title 18, United States Code, Sections 1349, an offense punishable by up to twenty years in prison.

According to court documents, including the stipulated proffer, Price and his co-conspirators participated in a scheme to provide false police reports to individuals operating credit repair businesses. A co-conspirator would provide Price with identifying information of credit business customers. Price would then create false police reports, using the customers’ identifying information. The police reports would falsely represent that the customers had reported to the Miami-Dade Police Department facts consistent with having been victims of identity theft.  Price would cause the false police reports to become official records of the Miami-Dade Police Department. A member of the conspiracy would cause the false police reports created by Price to be transmitted to credit reporting agencies in order to induce the removal of negative items from the credit histories of the alleged victims identified in the false police reports. Price created the false police reports in order to promote the success of the credit businesses and in return would receive payment from his co-conspirators.

“Law enforcement officers have a duty to protect and serve the public.  Instead, George Price betrayed his badge in order to enrich himself unjustly.  Our Office remains vigilant in its efforts to track down and root out official corruption,” stated U.S. Attorney Wifredo A. Ferrer.

“George Price was a police officer who participated in a wire fraud scheme wherein he provided false police reports in exchange for payment.  This unacceptable behavior only serves to tarnish the reputation of the overwhelming majority of police officers who serve their communities faithfully and well every day,” said George L. Piro, Special Agent in Charge, FBI Miami.  “The FBI operates the Miami Area Corruption Task Force to root out this type of activity.” 

Mr. Ferrer commended the investigative efforts of the FBI Miami Area Corruption Task Force and MDPD Professional Compliance Bureau. This case is being prosecuted by Assistant U.S. Attorney Michael Davis.

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-area pharmacy owner pleaded guilty today to submitting almost $1.6 million in fraudulent claims to Medicare.

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

Tamara Esponda, 47, of Miami, pleaded guilty before U.S. District Judge James I. Cohn of the Southern District of Florida to one count of health care fraud.  Sentencing has been scheduled for Nov. 13, 2015.

Esponda owned Biomax Pharamcy Inc.  In connection with her guilty plea, Esponda admitted that, between October 2012 and September 2013, Biomax Pharmacy submitted almost $1.6 million in fraudulent claims to Medicare for prescription drugs that were not prescribed by physicians, not medically necessary, not purchased by Biomax Pharmacy and not provided to Medicare beneficiaries.  Medicare paid 100 percent of the claims.

According to Esponda’s admissions, she and her accomplices stole or illegally paid for unique identifying information of Medicare beneficiaries, and used this information to submit the fraudulent claims.  Esponda also admitted that she controlled Biomax Pharmacy’s bank accounts, and that she transferred the payments received from Medicare to herself and her accomplices.

This case is being investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Southern District of Florida.  This case is being prosecuted by Trial Attorney Timothy P. Loper of the Criminal Division’s Fraud Section.

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

To learn more about the Health Care Fraud Prevention and Enforcement Team, go to: www.stopmedicarefraud.gov.

A Broward County tax preparer was sentenced to 33 months in prison, followed by one year of supervised release, and was ordered to pay restitution in the amount of $58,626.

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. 

Hugo Jean Joseph, 60, of Coral Springs, was previously convicted at trial of eleven counts of preparing false tax returns for his clients. 

As shown at trial and in court documents, Jean Joseph and co-defendant Guencia Piard a/k/a Guencia Toussaint operated Lakay Multi Services (LMS), a tax return service with locations in Pompano Beach, Naples and Fort Myers, Florida.  Jean Joseph and Piard prepared and filed fraudulent tax returns on behalf of their customers during the 2006 to 2008 tax years by using false Schedule A deductions (such as those for medical and unreimbursed employee business expenses), false Schedule C expenses, false education expenses, and false credits for federal fuel tax without their clients’ knowledge or consent. By inflating their clients' deductions, expenses, education credits, and fuel tax credits, Jean Joseph and Piard attained higher tax refunds for their clients which attracted a greater volume of clients.  Jean Joseph and Piard kept a portion of the fraudulently inflated tax refunds as payment for their services.

Jean Joseph and Piard prepared at least 76 false tax returns for twenty-one sets of clients for tax years 2006, 2007, and 2008. Sometimes, Jean Joseph and Piard provided clients with copies of their respective tax returns which were different from the tax returns filed with the IRS.   At least 21 of the 76 tax returns filed with the IRS reported a higher tax refund than the copy of the tax return provided to the client.

The total tax loss to the IRS was $283,834.

Co-defendant Piard was sentenced on August 7, 2014 to 24 months in prison, followed by three years of supervised release, and was ordered to pay restitution of $283,834. Piard pled guilty to one count of conspiracy to defraud the United States, in violation of Title 18, United States Code, Section 371.

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

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 Boynton Beach resident pled guilty to possessing heroin and participating in an identity theft tax refund fraud scheme.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Neil Melofchik, Acting Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, 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), and Ric Bradshaw, Sheriff, Palm Beach County Sherriff’s Office (PBSO), made the announcement.

Christopher Richard Edwards, 25, of Boynton Beach, pled guilty today to possession with intent to distribute heroin, in violation of Title 21, United States Code, Section 841(a)(1), access device fraud, in violation of Title 18, United States Code, Section 1029(a)(3), aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1), and making a material false statement by filing a false tax return with the Internal Revenue Service, in violation of 18, United States Code, Section 287.   At sentencing, the defendant faces a maximum of twenty years of imprisonment for the possession with intent to distribute heroin charge, a maximum of ten years for the access device charge, a mandatory term of two years in prison, consecutive to any other term of imprisonment, for the aggravated identity theft charge, and a maximum of five years imprisonment for making a false statement by filing a false tax return with the IRS.

According to the superseding information and additional court documents, a search warrant was executed at Edwards’ apartment after the defendant’s probation officer conducted a welfare check and discovered narcotics and indicia of identity theft in plain view.  During the search warrant, law enforcement found approximately 159 unauthorized access devices (debit cards) in other peoples’ names, three laptop computers, an encoder/decoder, a credit card embosser, a currency counter machine, several ledgers containing personal identification information (PII), 66 capsules containing heroin, a digital scale, and a plate containing heroin residue.

A forensic examination of the access device cards revealed that they contained unauthorized unemployment benefits.  An examination of Edwards’ computer revealed fraudulent filings for unemployment benefits, consistent with the unemployment benefit cards found in his apartment.  The unemployment claims filed from Edwards’ computer in 2014 totaled $287,360.  The investigation further revealed that Edwards filed 41 tax returns containing false information, including the names of other individuals who did not authorize Edwards to use file with their PII.  Edwards claimed a total of $299,240 in false tax refunds.

The total amount of loss attributable to Edwards’ fraudulent scheme is $586,600 and the number of victims exceeds 250.

Edwards is scheduled to be sentenced on November 13, 2015 at 10:30 a.m. before United States District Judge Kenneth A. Marra.

Mr. Ferrer commended the investigative efforts of the IRS-CI, USSS, DOL-OIG, and PBSO. This case is being prosecuted by Assistant U.S. Attorney Lauren E. Jorgensen.

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.

 

Ivan Vaclavik, 68, of the Czech Republic was sentenced today to 27 months in prison, to be followed by two years of supervised release, for attempting to enter the United States illegally as an alien who was previously deported, in violation of Title 8, United States Code, Sections 1326(a) and (b)(1). 

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

According to court documents, Vaclavik was born in Czechoslovakia, holds a passport from the Czech Republic and is prohibited from entering the United States.  Despite the prohibition, on January 13, 2015, Vaclavik boarded an 18-foot vessel in Freeport, Bahamas, bound for the United States.  During the trip, the vessel lost power and began to take on water due to the turbulent waters.  The boat captain, Henry Noel, radioed for assistance and the United States Coast Guard responded with air and marine assets in order to assist the sinking vessel.  Vaclavik and other vessel occupants were rescued approximately 8 nautical miles off the coast of Palm Beach County, Florida. 

Vaclavik was previously removed from the United States, twice, on October 8, 2013 and again on December 8, 2014, following a series of criminal convictions.  Vaclavik did not apply for nor receive permission to re-enter the United States from the Secretary of Homeland Security or the Attorney General.

Noel previously pled guilty to alien smuggling, in Case No. 15-CR-80024, and was sentenced to 36 months in prison.

Mr. Ferrer commended the investigative efforts of ICE-HIS, United States Customs and Border Protection and United States Border Patrol.  This case is being prosecuted by Assistant U.S. Attorneys Lauren Jorgensen and Jennifer Keene.

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 residents of South Florida were charged with conspiring to defraud the United States government by stealing millions of dollars and property intended for the construction of low-income housing developments. 

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge of the 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.

The following defendants were charged by criminal information:

• Matthew Greer, 37, of Miami Beach, a former chief executive officer of Carlisle Development Group (“CDG”), a low-income housing developer in Miami;

• Lloyd Boggio, 69, of Coconut Grove, a former chief executive officer of CDG;

• Michael Runyan, 66, of Lighthouse Point, the chief executive officer of BJ&K Construction, Inc., a general contractor in Fort Lauderdale;

• Gonzalo DeRamon, 51, of Coral Gables, a founder of Biscayne Housing Group, Inc. (“BHG”), a low-income housing developer in Miami;

• Michael Cox, 47, of Miami, a co-founder of BHG; and

• Rene Sierra, 57, of Southwest Ranches, a founder of Siltek Affordable Housing LLC (“Siltek”), a general contractor in Plantation. 

Greer, Boggio, and DeRamon were charged with two counts of conspiracy to commit theft of government money and property, in violation of Title 18, United States Code, Section 371, an offense punishable by a statutory maximum term of five years in prison as to each count.

Runyan, Cox, and Sierra were charged with one count of conspiracy to commit theft of government money and property, in violation of Title 18, United States Code, Section 371, an offense punishable by a statutory maximum term of five years in prison.

According to allegations contained in the charging documents, Florida Housing Finance Corporation (“FHFC”) issued federal tax credits and grant monies to developers for the construction of low-income housing in Florida. To obtain these federal funds, FHFC required developers to submit proposed development costs, including a construction contract signed by the developer and contractor.  The informations allege that the defendants conspired to unjustly enrich themselves by fraudulently inflating the costs of the construction contracts in order to obtain excess federal funds to which they were not entitled, and then to use the proceeds for their own personal use and benefit. 

From 2007 to 2012, CDG executives Greer and Boggio allegedly conspired with BJ&K executive Runyan to steal federal tax credits and grant monies, by submitting fraudulently inflated construction contracts to FHFC for eight different low-income housing developments in Miami-Dade County and elsewhere: Brownsville Transit Village II (a 100-unit apartment complex in Brownsville), Brownsville Transit Village III (a 103-unit apartment complex in Brownsville), Brownsville Transit Village IV (a 102-unit apartment complex in Brownsville), Everett Stewart Senior Village (a 96-unit apartment complex in Brownsville), Metro (a 90-unit apartment complex in Overtown), Poinciana Grove (an 80-unit apartment complex in Little Haiti), Villa Patricia III (an 89-unit Apartment complex in Little Haiti), and Wahneta Palms (a 64-unit apartment complex in Polk County). 

From 2009 to 2012, BHG founders DeRamon and Cox allegedly conspired with Siltek owner Sierra to steal federal tax credits and grant monies by submitting fraudulently inflated construction contracts to FHFC for four different low-income housing developments in Miami-Dade County: Bonita Cove (a 60-unit apartment complex in Little Haiti), Labre Place (a 90-unit apartment complex in Overtown), Notre Dame (a 64-unit apartment complex in Little Haiti), and Village Carver II (a 90-unit apartment complex in Little Haiti).  In addition, DeRamon, Cox, Greer, and Boggio, as alleged in the information, had a side agreement to share in the illegal kickback payments for Labre Place and Village Carver II. 

From 2009 to 2012, BHG founders DeRamon and Cox allegedly conspired with Arturo Hevia to steal federal tax credits and grant monies by submitting fraudulently inflated construction contracts to FHFC for two different low-income housing developments in Miami-Dade County:  Casa Matias (an 80-unit apartment complex in Homestead) and Georgia Ayers (a 72-unit apartment complex in Opa-Locka). 

Court documents allege that as a result of the fraudulently inflated contracts, FHFC allocated more than $36 million in excess tax credits and grant monies for the fourteen low-income developments built by CDG and BHG.  Both during and after construction of the developments, the contractors allegedly made periodic kickback payments of the construction inflation monies for the benefit of the CDG and BHG principals, including more than $26 million in kickbacks from Runyan for the benefit of Greer and Boggio; more than $6.2 million in kickbacks from Sierra for the benefit of DeRamon, Cox, Greer, and Boggio; and more than $1 million in kickbacks from Arturo Hevia for the benefit of DeRamon and Cox.       

As alleged in the information, the kickback payments were in addition to tens of millions of dollars in FHFC authorized developers’ fees that BHG and CDG were receiving for building the low-income housing developments.

During the course of the investigation, seizure warrants were executed and approximately $10.8 million in proceeds of the alleged thefts of government funds were recovered. 

U.S. Attorney Wifredo A. Ferrer stated, “[M]otivated by personal greed, the defendants are charged with stealing tens of millions of dollars of federal funds intended for the construction of housing for the poor, the homeless, and the elderly of South Florida.  Our office will vigorously pursue those who line their pockets with federal resources that are intended to benefit vulnerable individuals and families.” 

Kelly R. Jackson, Special Agent in Charge, IRS Criminal Investigation, stated, “The Low Income Housing Tax Credit (LIHTC) was created to encourage investment and is an important resource for creating affordable housing in South Florida.  LIHTCs were not intended to be a vehicle for get-rich-quick kickback schemes.  IRS Criminal Investigation enforces the nation's tax laws, including those involving LIHTC, and takes particular interest in cases where individuals and corporations fraudulently use credits and/or other government funding mechanisms for their own personal benefit.”     

“We are committed to pursuing individuals who attempt to steal funds meant for the less fortunate. HUD-OIG and our law enforcement partners will continue to work jointly in uncovering such schemes in order to bring those responsible to justice,” said Nadine E. Gurley, Special Agent in Charge, HUD-OIG.

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

Mr. Ferrer commended the investigative efforts of the FBI, HUD-OIG and IRS-CI. The case is being prosecuted by Assistant U.S. Attorneys Michael R. Sherwin, Michael N. Berger, Evelyn B. Sheehan and Eloisa D. Fernandez.

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 Miami-Dade County brothers were each sentenced to 70 months in prison for identity theft schemes involving unemployment insurance fraud, federal income tax fraud, and state income tax fraud.

Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, 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), 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), and J. Scott Dennis, Chief, North Miami Beach Police Department (NMBPD), made the announcement.

Densom Beaucejour, 22, and Winzord Beaucejour, 21, both of Miami Gardens, each 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, the investigation in this case began in January 2015, when a local police officer reported that he/she was the victim of identity theft and that a fraudulent unemployment insurance claim had been filed in his/her name.  A subsequent investigation by federal law enforcement revealed that 234 fraudulent unemployment claims were filed from the defendants’ residence. The total intended loss associated with these claims is $239,510.

On March 11, 2015, law enforcement agents executed a federal search warrant at the defendants’ residence.  Inside several bedrooms in the defendants’ home, law enforcement found numerous sheets of paper, ledgers, and other documents with personal identifying information (PII) – including names, dates of birth, and Social Security numbers – of more than 1,000 individuals.  Agents also discovered three handguns, $8,600 in cash, and several credit cards embossed with names of individuals who did not appear to live at the defendants’ residence.  Approximately 365 fraudulent tax returns were filed with the IRS from the residence seeking $413,279 in fraudulent tax refunds, as well as 2 fraudulent state tax returns with Ohio seeking $15,004.  In total, the amount of intended loss is $917,973.

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

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.

Christopher R. Glenn, 34, a South Florida Resident, was sentenced on July 31, 2015, to 120 months of imprisonment, to be followed by three years of supervised release, by United States District Judge Kenneth Marra following his guilty plea for violations of Title 18, United States Code, Section 793(e), willful retention of classified national defense information under the Espionage Act, Section 1030(a)(1), computer intrusion under the Computer Fraud and Abuse Act, while employed as a computer systems administrator at a U.S. Military installation in Honduras; and Sections 371 and 1425(a), conspiracy to commit naturalization fraud.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, John P. Carlin, Assistant Attorney General for National Security, George Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and members of the South Florida Joint Terrorism Task Force (JTTF), made the announcement.

According to court records, while working as a computer systems administrator at Soto Cano Air Base in Honduras, Glenn accessed a classified Department of Defense network without authorization and removed classified national defense information from the Department of Defense and U.S. Southern Command's (SOUTHCOM's) Joint Task Force - Bravo, including intelligence reports and military plans. Glenn proceeded to encrypt the files and place them on an Internet-accessible network storage device located in his residence in Honduras.

Glenn also conspired with his wife, Khadraa A. Glenn, 28, to commit naturalization fraud for her benefit by fabricating fraudulent documents and submitting false statements and the documents to the U.S. Citizenship and Immigration Services (USCIS).  Khadraa A. Glenn previously pled guilty to naturalization fraud conspiracy and was sentenced on October 7, 2014.

“The defendant exploited and violated the special trust placed in him as a computer network system administrator working at a United States military base, in order to penetrate the computer system and steal classified materials.  We will continue to investigate and prosecute insider threats to national security and we will bring those violators to justice,” stated U.S. Attorney Ferrer.       

“Christopher Glenn exploited his position as a cleared military contractor and systems administrator to steal classified U.S. military secrets,” said Assistant Attorney General Carlin.  “In doing so, he violated the unique trust placed in him by the Department of Defense.  Insider threats by trusted employees who exploit computer access are a significant danger to U.S. national security and this sentencing shows it will not be tolerated.”

"A person who violated the Espionage Act and had significant ties to South Florida, is Christopher Glenn," said Special Agent in Charge Piro.  "A defense contractor whose routine would take him through Broward, Dade and Palm Beach counties, Glenn hacked a classified computer network and gained access to national defense information.  More than ever, the Glenns of this world are targeting our nation's most valuable secrets.  While it doesn't often make the headlines, the FBI works hard to keep our secrets from falling into the wrong hands."

Mr. Ferrer commended the investigative efforts of the FBI, U.S. Army’s 470th Military Intelligence Brigade, U.S. Army’s Criminal Investigations Division, the U.S. Southern Command (SOUTHCOM), USCIS, IRS-CI, Department of Homeland Security and the JTTF.  The case is being prosecuted by Assistant U.S. Attorney Ricardo Del Toro and Trial Attorney Christian Ford of the Counterintelligence and Export Control Section of the Department of Justice’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 Miami-Dade County resident pled guilty to filing more than $7 million in false refund claims with the Internal Revenue Service.

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

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

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

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

Galvez is scheduled to be sentenced on October 15, 2015 at 10:00 a.m. before United States District Judge William J. Zloch.  At sentencing, the defendant faces a maximum of five years of imprisonment.

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

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.

Former Miami-Dade Police Department Public Service Aide and the owner of a tow truck company were charged in an illegal bribery and kickback scheme.

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

Matthew Valdes Perez, 29, and Lazaro Garcia, 31, are charged with conspiring to violate the Hobbs Act, in violation of Title 18, United States Code, Section 1951(a), an offense which carries a statutory maximum sentence of 20 years’ imprisonment.  Valdes and Garcia are also charged with accepting, or paying, bribes concerning a local governmental agency receiving federal funds, in violation of Title 18, United States Code, Sections 666(a)(1)(B) and 666(a)(2), which carry a maximum sentence of 10 years’ imprisonment.

According to the facts alleged in the complaint, in August 2014, a confidential source (CS) told investigating FBI agents that Lazaro Garcia, the owner and operator of a tow truck company, had been receiving kickbacks from the CS and paying bribes to a MDPD Public Service Aide (PSA).  The FBI subsequently corroborated the CS’s allegations during a series of recorded meetings between the CS, MDPD PSA Matthew Valdes, and Garcia.  During those recordings, Garcia admitted paying Valdes for accident information which, in turn, Garcia would use to illegally solicit stranded drivers for business.  Both Valdes and Garcia were recorded on multiple occasions participating in the illegal towing scheme.

The complaint further alleges that in order to further document the illicit relationship between Garcia and Valdes, the CS asked Garcia if he knew anyone who could collect confidential information regarding accident victims.  The CS indicated he knew a corrupt chiropractor who would use the confidential information to illegally solicit the accident victims for business.  Garcia suggested PSA Valdes.  Between September 2014 and October 2014, Valdes accessed and collected the confidential personal information of dozens of accident victims from MDPD databases. Valdes and Garcia sold this information to the CS, in return for $4200 in cash payments.  Those transactions were also recorded.

In January 2015, Valdes was interviewed by the FBI and confessed to his part in the various kickback schemes. Valdes admitted receiving more than $10,000 worth of bribes from Garcia between January 2014 and January 2015.  Valdes also admitted receiving bribes from the CS for his role in the plot to steal accident victim’s personal information for use by the corrupt doctor.

Mr. Ferrer commended the investigative efforts of the FBI Miami Area Corruption Task Force and the MDPD Internal Affairs Professional Compliance Bureau.  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 Miami-Dade County residents pled guilty today for their participation in a stolen identity tax fraud scheme based on information discovered while they were boarding a flight at the Fort Lauderdale-Hollywood International Airport.

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

Godfrey Teekah, Jr., 28, and Phillip Collins, 29, both of Miami Gardens, each 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 2, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1) and 2.

According to court documents, the defendants were stopped while attempting to board a flight at Fort Lauderdale-Hollywood International Airport in February 2013. Teekah was found in possession of nine debit cards embossed with names other than his own, and $4,365 in U.S. currency. Collins was in possession of one debit card in someone else’s name.  Two computers were also found in the defendants’ possession.  A search of Teekah’s computer revealed photographs of handwritten notes containing personal identification information (PII), IRS employer identification numbers, and IRS website access logs.  A search of Collins’ computer revealed temporary internet files for “get my prepaid card,” “irs.gov” and “gfx-prepaid-cards.” A search of Teekah’s bag produced three additional debit cards, along with manila envelopes containing hundreds of individuals’ PII including names, dates of birth and Social Security numbers.  In total, the defendants unlawfully possessed PII belonging to over three hundred individuals.   Both Teekah and Collins were aware that false tax returns would be filed using the PII and that the debit cards were used to obtain the fraudulent tax refunds.

Sentencing for both defendants is scheduled for October 9, 2015 at 9:00 a.m. before United States District Judge James I. Cohn.  The defendants face a maximum statutory sentence of ten years in prison for the possession of unauthorized access devices charge, and a mandatory term of two years in prison, consecutive to any other term of imprisonment, for the aggravated identity theft charge.

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

A Miami-Dade County resident was charged with robbery of a U.S. Postal Letter Carrier.

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.

Yunior Blanco, 19, of Miami-Dade, was charged by criminal complaint with robbery of a postal employee, in violation of Title 18, United States Code, Section 2114(a).

According to allegations contained in the criminal complaint, Blanco robbed a U.S. Postal Letter Carrier of his arrow key while the carrier was delivering mail.  Blanco then attempted to flee the crime scene.  After a brief foot chase, Blanco was stopped by the postal carrier and several nearby bystanders who witnessed the pursuit.

“Letter carriers are government representatives who perform an important public service.  The U.S. Attorneys’ Office is committed to working alongside federal and local law enforcement agencies, in our effort to identify and prosecute those who target and steal from government employees,” stated U.S. Attorney Wifredo A. Ferrer.

“Earlier this year, we asked South Florida residents to help us in keeping our letter carriers safe by taking a moment to look around when they see them” said U.S. Postal Inspector in Charge in Miami Ronald Verrochio, “it was just this kind of vigilance that helped apprehend this subject.”

U.S. Attorney Ferrer commended the efforts of the USPIS and the City of Miami Police Department.  The case is being prosecuted by Assistant United States Attorney Jonathan Kobrinski.

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 master of a cargo vessel was charged with operating the boat while under the influence of alcohol.

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

Anatoli Slepov, 50, a citizen of Lithuania, was charged in a criminal complaint filed in Ft. Lauderdale, with operating the vessel as it approached Port Everglades, in U.S. waters, while under the influence of alcohol, that is, while having a blood alcohol concentration of .04 or greater, in violation of Title 46, United States Code, Section 2302(c).

According to court records, Slepov was a master of the Wasaborg cargo vessel and as such had operational control of the ship when it was boarded by United States Coast Guard personnel for purposes of a port state control examination.  During the examination, Coast Guard personnel observed Slepov behaving in an agitated manner, with glazed eyes, slurred speech, and a strong odor of alcohol coming from his person.  Coast Guard personnel administered two blood alcohol tests to the defendant via breathalyzer.  The first reading registered a content of .104, while the second reading registered a content of .108.

Following his initial appearance today before United States Magistrate Judge Patrick Hunt in Ft. Lauderdale, Slepov was ordered held in pre-trial detention pending a bond hearing that has been scheduled for August 4, 2015 at 11:00 a.m.

Mr. Ferrer commended the investigative efforts of the United States Coast Guard and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI). The case is being prosecuted by Special Assistant U.S. Attorney Jeremy McCall.

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-Dade County resident sentenced for his role in a conspiracy to distribute methamphetamine.

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

Efrain Veiga, 64, of Miami, was sentenced yesterday to twenty-four months imprisonment, to be followed by three years of supervised release, for his role in a conspiracy to distribute methamphetamine.  Veiga had previously pled guilty to violating Title 21, United States Code, Section 846.

According to court records, Veiga was the founder and former owner of Yuca, a restaurant in Miami Beach, Florida.  In November 2014, the DEA initiated an investigation into Veiga’s drug-trafficking activities, based on information that Veiga was distributing methamphetamine in Miami Beach.  On November 21, 2014, the DEA conducted a controlled purchase of methamphetamine from Veiga at his apartment, during which Veiga sold approximately 70 grams of methamphetamine in exchange for $3,600.  The drug transaction was captured on video.  A subsequent laboratory analysis of the methamphetamine determined the drug was 94.7% pure.  On December 4, 2014, the DEA executed a search warrant at Veiga’s apartment.  DEA agents found digital scales, a portion of the funds used for the controlled purchase and a bag containing a small portion of methamphetamine.  Upon entering the apartment’s bathroom, agents also found a plastic bag containing methamphetamine residue floating in the toilet.  Two individuals who occupied the residence at the time of the search had attempted to dispose of the methamphetamine.  The bag had contained two ounces 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.

Mr. Ferrer commended the DEA for their work on this investigation.  This case was prosecuted by Assistant U.S. Attorney Robert J. Brady, Jr.

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

On July 24, 2015, Presner Telusme, of West Palm Beach, was sentenced to 15 years in prison by U.S. District Judge Kenneth Marra, following his guilty plea to being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g) and 924(e).

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

According to court records, Telusme was arrested pursuant to a warrant.  During the subsequent execution of a search warrant at Telusme’s residence, law enforcement discovered a stolen firearm.  Telusme, who was previously convicted of state felony offenses, including two sales of cocaine, resisting arrest with violence, and fleeing/eluding, admitted to unlawfully possessing the firearm.

This case is, in large part, the result of the Project Safe Neighborhood Partnership, launched by the U.S. Attorney’s Office for the Southern District of Florida.  Through this Partnership, the U.S. Attorney’s Office and its federal, state and local law enforcement allies have sought to dismantle the most violent criminal networks in various neighborhoods, while simultaneously working with community leaders and concerned citizens to mentor at-risk youth, provide job training and family services, and help individuals who have completed their federal and state prison sentences to successfully re-enter society.

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

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 investor advisor pled guilty this afternoon for his involvement in the Rothstein wire fraud conspiracy.

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

Michael Szafranski, 37, of Surfside, pled guilty before U. S. District Court Judge William P. Dimitrouleas to conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 371.  At sentencing, scheduled for October 21, 2015 at 1:15 p.m., Szafranski faces a maximum statutory sentence of five years in prison.

According to court records, including a stipulated statement of facts, it was discovered in 2009 that the law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA) was being utilized by its Chairman and Chief Executive Officer, Scott W. Rothstein, to commit a massive Ponzi scheme stemming from the sale of fictitious confidential settlements.  Szafranski, who was a registered investment advisor, conspired with Rothstein to induce certain persons into investing money in the confidential settlements through material misstatements and material omissions made by defendant Szafranski.  Specifically, Szafranski secretly received compensation from Rothstein and RRA while simultaneously employed by certain investors as a purportedly independent verifier of the legitimacy of the settlement transactions. 

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

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

A Monroe County resident was charged with attempting to use a weapon of mass destruction, an explosive device.

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 members of the South Florida Joint Terrorism Task Force (JTTF), made the announcement.          

Harlem Suarez, a/k/a “Almlak Benitez,” 23, of Key West, Florida, was charged by a criminal complaint with knowingly attempting to use a weapon of mass destruction against a person or property within the United States, in violation of Title 18, United States Code, Section 2332a(a)(2), punishable by up to life in prison.

According to the allegations contained in the complaint, in April 2015, Suarez came to the attention of the FBI due to Facebook postings which contained extremist rhetoric and promoted the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization (FTO).

The complaint further alleges that Suarez told an FBI confidential human source (CHS) that he wanted to make a “timer bomb.”  Suarez purchased components for this device, which was to contain galvanized nails, be concealed in a backpack, and be remotely detonated by a cellular telephone.  Suarez intended to bury the device at a public beach in Key West and then detonate it.

On July 27, 2015, Suarez took possession of an inert explosive device and was arrested.

“The top priority of the Department of Justice is to protect the security of the American people.  The U.S. Attorney’s Office, in collaboration with the FBI, works tirelessly to advance this mission by continuing to thwart home-grown acts of terrorism,” stated U.S. Attorney Ferrer.

“According to the complaint, Harlem Suarez, a self-professed ISIL adherent, knowingly attempted to use a weapon of mass destruction - a backpack bomb - in the United States,” said Assistant Attorney General Carlin.  “Stopping attacks on our homeland by those inspired or directed by designated foreign terrorist organizations is the highest priority of the National Security Division.”

“There is no room for failure when it comes to investigating the potential use of a weapon of mass destruction,” said George L. Piro, Special Agent in Charge, FBI Miami.  “The FBI and our local, state and federal partners work around the clock to prevent such catastrophic weapons from being used against our citizens.  Even so, we ask the public to be vigilant and report suspicious activity to law enforcement.”

Mr. Ferrer commended the investigative efforts of the FBI, JTTF, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), Key West Police Department, Monroe County Sheriff’s Office, and Palm Beach County Sheriff’s Office.  This case is being prosecuted by Assistant United States Attorneys Marc S. Anton and Karen E. Gilbert and Trial Attorneys Clement McGovern and Michael Dittoe of the Counterterrorism Section of the U.S. Department of Justice.

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.

Miguel Moran Diaz, 45, of Miami, was sentenced yesterday by U.S. District Judge Joan A. Lenard of the Southern District of Florida to the statutory maximum term of 120 months in prison, to be followed by three years of supervised release, following his guilty plea for being a felon in possession of a firearm. 

U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and members of the South Florida Joint Terrorism Task Force (JTTF) made the announcement.

“The U.S. Attorney’s Office is committed to using our law enforcement resources in order to disrupt potential terroristic plots and prosecute those individuals who seek to jeopardize our security,” said U.S. Attorney Ferrer.  “Individuals who unlawfully possess firearms and advocate for violent extremism will continue to be identified, prosecuted and brought to justice under the federal sentencing guidelines.”

“Miguel Moran Diaz was an armed, convicted felon who harbored sympathies for the Islamic State of Iraq and Syria,” said Special Agent in Charge Piro.  “He called himself a ‘Lone Wolf’ for ‘ISIS.’  This is not a scenario where law enforcement can afford to wait and see what happens next.  The FBI and our partners in the Joint Terrorism Task Force investigated and disrupted this threat to South Florida.”

According to court documents and statements made in court, in late January 2015, Diaz came to the attention of the FBI due in part to Facebook postings in the name of  “Azizi Al Hariri,” a photo of Diaz possessing a firearm and articles regarding the Islamic State of Iraq and Syria (ISIS), a designated foreign terrorist organization.  Thereafter, during a subsequent undercover operation, Diaz told an FBI confidential source that he was a convicted felon and could not purchase a firearm.  Diaz asked the  confidential source to purchase him a “baby Glock” (a small concealable semi-automatic firearm) and other weapons, in exchange for $500.  Diaz proposed that he would arrange to have the guns “stolen” from the confidential source’s vehicle.

Diaz also advised that he already owned a number of weapons, including a rifle, handgun and a Ket Tec 2000 with a collapsible stock that he would use to conceal the firearm.  Diaz showed the confidential source photographs of him holding firearms and also displayed a gun that was concealed in his vehicle. 

On Jan. 30, 2015, during a meeting with the confidential source in Miami, Diaz described himself as a “Lone Wolf” for ISIS.  Diaz indicated that he wanted to acquire a .308 caliber bolt action rifle and intended to scratch “ISIS” into the shell casings.  Diaz claimed that after he killed people, authorities would find the shell casings and put the city on lockdown as they attempted to locate the sniper.  Diaz also used his iPhone to view Al-Qaida in the Arabian Peninsula’s (AQAP’s) Inspire Magazine website in order to learn how to build bombs. 

On Feb. 8, 2015, the confidential source again met with Diaz in Miami in order to conduct target practice with loaded firearms.

On March 20, 2015, the confidential source asked Diaz if he would like to purchase any additional ammunition.  Diaz stated that he had approximately 500 rounds of ammunition at his residence, but wanted to purchase 500 additional rounds if the price was good.

On April 2, 2015, the FBI executed a warrant and found Diaz driving a vehicle while in possession of a .40 caliber handgun loaded with 15 rounds of ammunition and a magazine containing 15 addition rounds.  A search of Diaz’s residence revealed an additional Kel-tec 2000, .40 caliber rifle and approximately 200 to 300 rounds of .40 caliber ammunition. 

U.S. Attorney Ferrer commended the investigative efforts of the FBI and JTTF.  The case is being prosecuted by Assistant U.S. Attorneys Marc S. Anton and Karen E. Gilbert of the Southern District of Florida.

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

Miguel Moran Diaz, 45, of Miami, Florida, was sentenced yesterday by United States District Judge Joan A. Lenard to the statutory maximum term of 120 months in prison, to be followed by three years of supervised release, following his guilty plea for being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1).

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

 According to court documents and statements made in court, in late January 2015, Diaz came to the attention of the FBI due in part to Facebook postings that included a photo of Diaz possessing a firearm and articles regarding the Islamic State of Iraq and Syria (ISIS), a designated foreign terrorist organization.

Thereafter, Diaz told an FBI confidential human source (CHS) that he was a convicted felon and could not purchase a firearm. Nevertheless, Diaz asked the CHS to purchase a handgun and other weapons in exchange for $500. Diaz also advised that he already owned a number of firearms.  Diaz showed the CHS photographs of him holding the weapons and displayed a gun that was concealed in his vehicle.

On January 30, 2015, during a meeting with the CHS, Diaz described himself as a “Lone Wolf” for “ISIS.”  Diaz indicated that he wanted to acquire a rifle and intended to scratch “ISIS” into the shell casings so that, after an attack, the authorities would find the shell casings and know what group was responsible.

On February 8, 2015, the CHS again met with Diaz in Miami, in order to conduct target practice with loaded firearms.

On March 20, 2015, the CHS asked Diaz if he would like to purchase additional ammunition.  Diaz stated that he had approximately 500 rounds of ammunition at his residence, but wanted to purchase 500 additional rounds.

On April 2, 2015, the FBI arrested Diaz while in possession of a .40 caliber handgun, loaded with fifteen rounds of ammunition, and a magazine containing fifteen additional rounds.  A search of Diaz’s residence uncovered more firearms and ammunition.

“The U.S. Attorney’s Office is committed to using our law enforcement resources in order to disrupt potential terroristic plots and prosecute those individuals who seek to jeopardize our security.  Individuals who unlawfully possess firearms and advocate for violent extremism will continue to be identified, prosecuted and brought to justice under the federal sentencing guidelines,” stated U.S. Attorney Wifredo A. Ferrer.  

“Miguel Moran Diaz was an armed, convicted felon who harbored sympathies for the Islamic State of Iraq and Syria.  He called himself a ‘Lone Wolf’ for ‘ISIS,’” said George L. Piro, Special Agent in Charge, FBI Miami.  “This is not a scenario where law enforcement can afford to wait and see what happens next.  The FBI and our partners in the Joint Terrorism Task Force investigated and disrupted this threat to South Florida.”

Mr. Ferrer commended the investigative efforts of the FBI and JTTF.  The case was prosecuted by Assistant U.S. Attorneys Marc S. Anton and Karen E. Gilbert.

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.

Federal charges were filed, by information, against five individuals for paying and accepting bribes and gratuities.

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

Irma Davidian, 52, of Boca Raton, is charged with conspiracy to commit bribery in programs receiving federal funds and commit health care fraud; and conspiracy to give a gratuity to a public official, both, in violation of Title 18, United States Code, Section 371.

Gladys Roman, 47, and George Lopez, 35, both of Pompano Beach, are charged in a separate information, with conspiracy to commit bribery in programs receiving federal funds and commit health care fraud, in violation of Title 18, United States Code, Section 371.

Maria Sanchez, 50, of Pembroke Pines, is charged with conspiracy to receive and accept a gratuity by a public official, in violation of Title 18, United States Code, Section 371.

Alejandro Lomoso, 56, of Southwest Ranches, is charged with conspiracy to receive and accept a gratuity by a public official, in violation of Title 18, United States Code, Section 371.

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

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

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

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

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

If convicted, Davidian faces a statutory maximum term of imprisonment of 10 years’ imprisonment and/or a fine of up to $500,000 and may be ordered to pay restitution.If convicted, defendants Roman, Lopez, Sanchez, and Lomoso each face a statutory maximum term of imprisonment of 5 years’ imprisonment and/or a fine of up to $250,000 and may be ordered to pay restitution.

In conjunction with the federal charges, the following individuals were arrested and charged by the Florida Attorney General’s Medicaid Fraud Control Unit:

Alexey Mesiatsev, 61, of Wellington, FL

Ilya Massarsky, 38, of Sunny Isles Beach, FL

Lyudmila Ustakova, 46, of Boca Raton, FL

Maryna Makhnyeva, 37, of Boca Raton, FL

Natalya Krichevskaya, 49, of Ft. Lauderdale, FL

Olga Maximova, 53, of Sunny Isles Beach, FL

Sergei Berezin, 43, of Boca Raton, FL

Lyudmila Pereverzeva, 56, of Hallandale Beach, FL

The total loss to the Florida Medicaid program as a result of the defendants alleged conduct is more than $2.7 million.

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

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

Suspected Medicaid fraud can be reported to the Department of Justice through www.stopmedicarefraud.gov or 800-447-8477, or the Florida Attorney General’s Office by calling the hotline telephone at 866-966-7226 or by filing a complaint at http://myfloridalegal.com.

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

 

Three defendants pled guilty for their participation in an extensive stolen identity tax refund fraud scheme.

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

Brandi Mary Janice Stroman, 30, of Oakland Park, and Dezman Dunbar Zama, 34, of Fort Lauderdale, each pled guilty to one count of conspiracy to commit wire fraud, one count of conspiracy to commit bank fraud, and one count of aggravated identity theft, in violation of Title l8, United States Code, Sections 1343, 1344, 1349 and 1028A. Stroman also pled guilty to one count of conspiracy to commit mail fraud, in violation of Title l8, United States Code, Sections 1341 and 1349. Jerrod Dashon Bosket, 26, of Orlando, pled guilty to one count of unauthorized use of an access device and one count of aggravated identity theft, in violation of Title 18, Sections 1029(a)(2) and 1028A.

According to court documents, from March 2012 through August 2012, Stroman obtained the bank account information of Zama, Jerrod Bosket, and co-defendant Cornelius Craig Bosket, 32, of Fort Lauderdale. Stroman then provided the bank account information to another individual who filed false tax returns using the personally identifiable information (PII) of patients of a medical services provider. The fraudulent refunds from these tax returns were deposited into one of the bank accounts controlled by Zama, Jerrod Bosket, Cornelius Bosket, or others. After the money was deposited into the account, Stroman contacted the co-defendants and directed them to withdraw the funds. During the course of the conspiracy, at least 27 false returns were filed requesting $105,313 in fraudulent refunds. Each one of the 27 false returns listed one of the defendant’s bank account numbers.

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

Defendants Zama and Jerrod Bosket are scheduled to be sentenced on September 23, 2015, and defendant Stroman is scheduled to be sentenced on October 7, 2015, all before United States District Judge William J. Zloch.  All of the defendants face a mandatory term of two years in prison, consecutive to any other term of imprisonment, for the aggravated identity theft charge. Stroman and Zama also face a maximum of twenty years in prison for the conspiracy to commit wire fraud charge and a maximum of thirty years in prison for the conspiracy to commit bank fraud charge. Stroman also faces a maximum of twenty years in prison for the conspiracy to commit mail fraud charge. Jerrod Bosket faces a maximum of ten years in prison for the access device charge.

Trial is scheduled to begin on July 28, 2015 for co-defendant Cornelius Craig Bosket.

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

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

Eight additional individuals were indicted for participating in a securities fraud scheme that targeted the elderly. 

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

David Anthony Eratostene, 53, of Miramar, Florida, Christopher J. Borgo, 41, of Boca Raton, Florida, Alan D. Messina, 54, of Sunrise, Florida, Michael T. Angeletti, 33, of Sunrise, Florida, Michael J. Calash 34, of Boca Raton, Florida, Stephen R. Reynolds, 38, of Pompano Beach, Florida, Gary X. Schultz, 55, of Miramar, Florida, Chazon Stein, 36, North Miami Beach, Florida, were charged with conspiracy to commit mail and wire fraud.

“Securities fraud schemes that target members of our community jeopardize our personal investments and security,” said U.S. Attorney Ferrer.  “Our Office, in collaboration with the FBI, strives to prevent the victimization of our elderly residents.  By combatting these invasive fraud schemes, we help to protect potential victims from losing their hard-earned money to telemarketing thieves.”

According to allegations contained in the indictment, the defendants pressured investors into purchasing stock in two companies, Thought Development Inc. (TDI) and Virgin Gaming.  TDI was a Miami Beach-based company that claimed its signature invention generated a green laser line on the football field visible in the stadium to players, fans as well as on television.  TDI represented that use of its technology would decrease the time used by officials to determine first downs, freeing up broadcast time that could then be sold to television advertisers.  The defendants raised approximately $2.4 million through the use of call rooms that targeted more than 200 investors throughout the nation, who were told that an initial public offering (IPO) in TDI was imminent and that their money would be safe and used to develop the ground-breaking technology.  Instead, the indictment alleges that the IPO was not forthcoming as promised and at least 50 percent of the offering proceeds were retained by the defendants or paid to sales agents through undisclosed, exorbitant commissions and fees.  The defendants also lured investors by misrepresenting that TDI’s technology was about to be used by the NFL.  The defendants also neglected to tell investors the TDI laser technology posed a potential risk of blindness to players on the football field.

The indictment alleges that the second fraudulently sold stock, for Virgin Gaming, a subsidiary of Virgin Media Inc., provided a fee-based service that facilitated online tournaments, fantasy sports leagues and competitive online gaming.  The Virgin Gaming scheme took one of two forms.  In some instances, sales agents told investors they would be investing in a company that had obtained the right to purchase shares of Virgin Gaming stock.  The defendants told investors those shares would be converted into shares of Virgin Gaming just prior to an IPO.  However, this was not a true representation as no such option to buy Virgin Gaming stock, in fact existed.  On other occasions, sales agents told investors that they were directly purchasing Virgin Gaming stock when in fact they were not.  The defendants’ sales agents also lied about guaranteed returns on investments and the timing of the purported IPO.  Over the course of the scheme, the defendants caused approximately 35 individuals to purchase the non-existent Virgin Gaming stock and thereby made approximately $325,000 in fraudulent sales.  Nearly all of the monies were misappropriated as undisclosed commissions and fees.

This indictment relates to a case filed a year ago, United States v. Kirschner.  All four defendants in that matter, the leader/organizers of the TDI fraud scheme discussed above, pleaded guilty and have been sentenced.

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

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

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

Eight additional individuals were indicted for participating in a securities fraud scheme that targeted the elderly.

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.

David Anthony Eratostene, 53, of Miramar, Florida, Christopher J. Borgo, 41, of Boca Raton, Alan D. Messina, 54, of Sunrise, Michael T. Angeletti, 33, of Sunrise, Michael J. Calash 34, of Boca Raton, Stephen R. Reynolds, 38, of Pompano Beach, Gary X. Schultz, 55, of Miramar, Chazon Stein, 36, North Miami Beach, were charged with conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 1349, and wire fraud, in violation of Title 18, United States Code, Section 1343.

“Securities fraud schemes that target members of our community jeopardize our personal investments and security.  Our Office, in collaboration with the FBI, strives to prevent the victimization of our elderly residents.  By combatting these invasive fraud schemes, we help to protect potential victims from losing their hard-earned money to telemarketing thieves,” stated U.S. Attorney Wifredo A. Ferrer. 

According to allegations contained in the indictment, the defendants pressured investors into purchasing stock in two companies, Thought Development Inc. (TDI) and Virgin Gaming.  TDI was a Miami Beach-based company that claimed its signature invention generated a green laser line on the football field visible in the stadium to players, fans as well as on television.  TDI represented that use of its technology would decrease the time used by officials to determine first downs, freeing up broadcast time that could then be sold to television advertisers.  The defendants raised approximately $2.4 million through the use of call rooms that targeted more than 200 investors throughout the nation, who were told that an initial public offering (IPO) in TDI was imminent and that their money would be safe and used to develop the ground-breaking technology.  Instead, the indictment alleges, that the IPO was not forthcoming as promised, and at least 50 percent of the offering proceeds were retained by the defendants or paid to sales agents through undisclosed, exorbitant commissions and fees.  The defendants also lured investors by misrepresenting that TDI’s technology was about to be used by the NFL.  The defendants also neglected to tell investors the TDI laser technology posed a potential risk of blindness to players on the football field.

The indictment alleges that the second fraudulently sold stock, for Virgin Gaming, a subsidiary of Virgin Media, Inc., provided a fee-based service that facilitated online tournaments, fantasy sports leagues, and competitive online gaming. The Virgin Gaming scheme took one of two forms.  In some instances, sales agents told investors they would be investing in a company that had obtained the right to purchase shares of Virgin Gaming stock.  The defendants told investors those shares would be converted into shares of Virgin Gaming just prior to an IPO.  However, this was not a true representation as no such option to buy Virgin Gaming stock, in fact existed.  On other occasions, sales agents told investors that they were directly purchasing Virgin Gaming stock when in fact they were not.  The defendants’ sales agents also lied about guaranteed returns on investments and the timing of the purported IPO.  Over the course of the scheme, the defendants caused approximately thirty-five individuals to purchase the non-existent Virgin Gaming stock and thereby made approximately $325,000 in fraudulent sales.  Nearly all of the monies were misappropriated as undisclosed commissions and fees.

This indictment relates to a case filed a year ago, United States v. Kirschner, et. al, 14-20514-CR-Gayles.  All four defendants in that matter, the leader/organizers of the TDI fraud scheme discussed above, pleaded guilty and have been sentenced.

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

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

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

Ashley Monique Leroy, 26, of Davie, pled guilty to one count of aggravated identity theft, in violation of Title l8, United States Codes Section 1028A(a)(1).

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.

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.

Leroy is scheduled to be sentenced on September 21, 2015 at 9:00 a.m., before the Honorable Beth Bloom, United States District Judge.  At sentencing, the defendant faces a mandatory term of two years’ imprisonment, consecutive to any other prison term.

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.

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

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

Starling Willis, 32, of West Palm Beach, was charged by information with one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A and 2. If convicted, Willis faces a maximum of twenty years in prison for the conspiracy charge, and a mandatory term of two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charge.

Willis is alleged to have participated in fraudulent activity with two defendants charged in a separate superseding indictment, Latonia Verdell, 40, and Kelli Witherspoon McIntosh, 39, both of Palm Beach County (Case No. 14-CR-80158).

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

As part of the overall schemes to defraud the IRS, Willis allegedly allowed Verdell to use her personal bank accounts to receive payments of tax refunds from fraudulent income tax returns.   Willis allegedly opened additional bank accounts, at various banks, expressly for the purpose of receiving some of the fraudulent tax refund payments. Willis would then withdraw the monies and share them with Verdell.

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

Trial is scheduled for Verdell and McIntosh on October 5, 2015.  The Court has not yet scheduled a trial date for Willis.

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

An information or 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.

 

 

A Miami-Dade County resident was sentenced to 41 months in prison, followed by three years of supervised release, for his participation in an identity theft tax fraud scheme involving $418,679.66 in fraudulent refunds.

Wifredo A. Ferrer, U.S. 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 Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, made the announcement.

Junior St. Fleurose, 29, of Miami, previously pled guilty to five counts of theft of government funds.

According to court documents, from January 2010 through July 2011, St. Fleurose received forty-three (43) Treasury tax refund checks and wire deposits into his personal and business bank accounts that were in other people's names. Some of the tax refund checks and wires were from fraudulently filed tax returns without the knowledge of the taxpayer. Others were Treasury checks stolen from individuals who filed a legitimate tax return. The defendant converted $325,432.02 in tax refunds for his and someone else's use at various vendors in the South Florida area. St. Fleurose also received twenty-six (26) tax Refund Anticipation Loan checks into his bank accounts totaling $89,440.64.

The total amount of loss is $418,679.66.

Mr. Ferrer commended the investigative efforts of the USSS, IRS-CI, and USPIS. The case is being prosecuted by Assistant U.S. Attorney Ilham A. Hosseini.

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 Miami-Dade County residents pled guilty for their participation in an identity theft tax fraud scheme using deceased and other 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), and J. Scott Dennis, Chief, North Miami Beach Police Department (NMBPD), made the announcement.

Joshua Chikudo, 40, and Curtis Joseph, a/k/a “CJ,” 36, both of Miami-Dade, each pled guilty to one count of wire fraud conspiracy, in violation of Title 18, United States Code, Section 1349. Chikudo also pled guilty to one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.

According to court documents, Joseph met with an IRS confidential informant (CI) and discussed a scheme to cash tax refund checks involving PII stolen from a medical clinic. The CI introduced Joseph to an undercover IRS agent. During three separate meetings, Joseph gave the undercover agent a total of thirteen tax refund checks for the undercover agent to cash. In exchange, the undercover agent gave Joseph approximately sixty-five percent (65%) of the check amounts as payment for his participation in the illicit scheme.

Court documents also state that at another meeting, the undercover agent provided Joseph with five IRS-controlled identities, consisting of fictitious PII - names, social security numbers, and dates of birth - to be used by a tax preparer in order to file fraudulent federal tax returns.  During a separate meeting, the undercover agent gave Chikudo seven additional IRS-controlled identities that Chikudo intended to include in fraudulent tax return filings.  Chikudo asked the undercover agent if he could obtain a business bank account for the purpose of depositing the fraudulent tax refunds into that account to avoid detection.  The defendants, undercover agent, and another undercover partner agreed to split all of the tax refunds equally amongst themselves. The undercover agent provided Chikudo with IRS-controlled bank account information to be included on the fraudulent tax returns.  The defendants caused six fraudulent federal income tax returns to be filed.  The filings designated the IRS-controlled bank account as the intended recipient of the fraudulent refunds.

Furthermore, court documents state that between April and August of 2013, the defendants filed thirty-two fraudulent federal income tax returns using the twelve IRS-controlled identities, to request refunds totaling $197,688.  Twenty-one of the returns were joint returns that included the PII of deceased individuals.

The defendants each face a maximum of twenty years in prison for the conspiracy charge. Chikudo is also facing and a mandatory term of two years in prison, consecutive to any other term of imprisonment, for the aggravated identity theft charge.

Mr. Ferrer commended the investigative efforts of IRS-CI, ICE-HSI and NMBPD.  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.

A Riviera Beach resident was convicted by a jury for being a felon in possession of a firearm.

Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, Stephen J. Stepp, Chief, Palm Beach Gardens Police Department (PBGPD) and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO), made the announcement.                                     

Joseph McDonald, 36, of Riviera Beach was convicted following a three-day jury trial before U.S. District Judge Donald M. Middlebrooks on two counts of being a felon in possession of a firearm.  McDonald was previously convicted in state court for being a felon in possession.    McDonald faces a maximum sentence of up to 20 years in federal prison for the crimes of conviction.  McDonald is scheduled to be sentenced on September 30, 2015, at 10:30 a.m.

According to evidence presented at trial, McDonald fled from the police during two separate stolen vehicle investigations.  On July 28, 2013, McDonald dropped a fully loaded Smith & Wesson 9 mm semi-automatic pistol during his flight from members of the Palm Beach Gardens Police Department.  On December 17, 2013, Palm Beach County Sheriff’s Deputies recovered a fully loaded Ingram Mac 10 semi-automatic pistol from McDonald’s path of flight.

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

Mr. Ferrer commended the investigative efforts of ATF, PBGPD and PBSO.  The case is being prosecuted by Assistant U.S. Attorneys Brandy Galler and Daniel Funk.

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-area pharmacy owner pleaded guilty today for his role in the submission of more than $1.8 million in fraudulent claims to Medicare.

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

Evelio Fernandez Penaranda, 47, of Miami, Florida, pleaded guilty before U.S. Magistrate Judge Chris M. McAliley of the Southern District of Florida to one count of health care fraud.  Sentencing has been scheduled for Oct. 8, 2015.

Penaranda owned Naranja Pharmacy Inc.  In connection with his guilty plea, Penaranda admitted that, between May 2013 and March 2014, Naranja Pharmacy submitted fraudulent claims to Medicare for prescription drugs that were not prescribed by physicians, not medically necessary and not provided to Medicare beneficiaries.  According to admissions made in connection with Penaranda’s guilty plea, Naranja Pharmacy submitted these false claims by obtaining and using the unique identifying information of Medicare beneficiaries and doctors without their consent.

Penaranda admitted that he controlled Naranja Pharmacy’s bank accounts, and that he transferred the payments received from Medicare to himself and his accomplices.  According to admissions made in connection with Penaranda’s plea, during the course of the scheme, Naranja Pharmacy submitted to Medicare over $1.8 million in false claims for prescription drugs, and Medicare paid 100 percent of the claims.

The case is being investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Southern District of Florida.  The case is being prosecuted by Trial Attorney Nicholas E. Surmacz of the Criminal Division’s Fraud Section.

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

To learn more about the Health Care Fraud Prevention and Enforcement Team, go to: www.stopmedicarefraud.gov.

DO NOT REPLY TO THIS MESSAGE.  IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.

 

The Justice Department and Carnival Corp. today announced a comprehensive, landmark settlement agreement under the Americans with Disabilities Act (ADA) to advance equal access for individuals with disabilities who travel on cruise ships.

Carnival Corp. is one of the largest cruise companies in the world, owning and operating several cruise lines.  Today’s settlement agreement addresses accessibility on 62 ships among the Carnival Cruise Line, Holland America Line and Princess Cruises brands and implements accessibility standards and policies to provide greater access on cruises that embark and disembark from U.S. waters or those of its territories.

“The ADA guarantees people with disabilities equal access to public accommodations,” said head of the Civil Rights Division, Principal Deputy Assistant Attorney General Vanita Gupta.  “Cruise ships are ‘floating cities’ and provide a wide range of facilities and activities subject to the requirements of the ADA, such as lodging, dining, entertainment, recreation, and medical facilities.  People with disabilities who travel must be able to count on getting the accessible cabin they reserve, and the cruise lines must provide equal access to the choice of amenities and attractions that passengers expect from a major cruise company like Carnival Corporation.”

“This landmark ADA agreement will enable individuals with disabilities the opportunity to equally enjoy a full range of cabins and services that previously were unavailable while vacationing on cruise ships,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida.

The settlement agreement is the result of an investigation of complaints by the Justice Department.  Carnival officials cooperated with the department throughout the process.  Among the complaints were allegations that the company failed to: properly provide and reserve accessible cabins for individuals with mobility disabilities; reasonably modify policies, practices and procedures to accommodate individuals with disabilities; afford individuals with disabilities the same opportunities to participate in programs and services, including embarkation and disembarkation; and provide effective communication during muster and emergency drills.

Under the agreement:

• 42 existing ships, and 7 ships in various stages of design and construction, will be surveyed and remediated to comply with the ADA regulations.  Accessible cabins will be dispersed among the various classes of accommodations and will provide a range of accessible features, including features for guests with hearing impairments;
• Three percent of the cabins on 49 ships will be accessible according to three levels of accessibility: fully accessible cabins, fully accessible cabins with a single side approach to the bed, and ambulatory accessible cabins.  The remaining 13 ships will be subject to possible remediation if they continue to be in service in U.S. ports four years after the agreement is entered.
• Carnival Corp. has created brand standards that address an array of accessibility issues and policies to implement them;
• Carnival Corp. will provide specific ADA training to employees and managers;
• Reservations systems will allow individuals with disabilities to reserve accessible cabins and suites with specific available options and amenities, and to guarantee reservations for accessible cabins;
• The accessibility of Carnival Corp. websites and mobile applications will comply with WCAG 2.0 Level A and AA;
• Carnival Corp. will appoint an ADA compliance officer at the executive level, two ADA responsibility officers – one for Carnival Cruises and one for Holland America Group, which includes Holland America Line and Princess Cruises, and ADA shipboard officers for each ship who are responsible for resolving ADA-related issues that arise at sea; and
• Carnival Corp. will pay a civil penalty of $55,000 to the United States and $350,000 in damages to individuals harmed by past discrimination.

Today’s settlement represents the first time the Department of Justice has required a cruise company to provide a minimum number of accessible cabins, to conduct a survey of its ships and to develop a remediation plan to comply with the ADA.  It is also the first time that an agreement under the ADA has specifically identified three types of accessible cabins on cruise ships – fully accessible cabins, fully accessible cabins-single side approach and ambulatory accessible cabins – that will be available to individuals with disabilities.

People interested in finding out more about the ADA or this settlement agreement can call the toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD), or access the ADA website at http://www.ada.gov.

DO NOT REPLY TO THIS MESSAGE.  IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.

 

The Justice Department and Carnival Corp. today announced a comprehensive, landmark settlement agreement under the Americans with Disabilities Act (ADA) to advance equal access for individuals with disabilities who travel on cruise ships.

Carnival Corp. is one of the largest cruise companies in the world, owning and operating several cruise lines.  Today’s settlement agreement addresses accessibility on 62 ships among the Carnival Cruise Line, Holland America Line and Princess Cruises brands and implements accessibility standards and policies to provide greater access on cruises that embark and disembark from U.S. waters or those of its territories.

“The ADA guarantees people with disabilities equal access to public accommodations,” said head of the Civil Rights Division, Principal Deputy Assistant Attorney General Vanita Gupta.  “Cruise ships are ‘floating cities’ and provide a wide range of facilities and activities subject to the requirements of the ADA, such as lodging, dining, entertainment, recreation, and medical facilities.  People with disabilities who travel must be able to count on getting the accessible cabin they reserve, and the cruise lines must provide equal access to the choice of amenities and attractions that passengers expect from a major cruise company like Carnival Corporation.”

“This landmark ADA agreement will enable individuals with disabilities the opportunity to equally enjoy a full range of cabins and services that previously were unavailable while vacationing on cruise ships,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida.

The settlement agreement is the result of an investigation of complaints by the Justice Department.  Carnival officials cooperated with the department throughout the process.  Among the complaints were allegations that the company failed to: properly provide and reserve accessible cabins for individuals with mobility disabilities; reasonably modify policies, practices and procedures to accommodate individuals with disabilities; afford individuals with disabilities the same opportunities to participate in programs and services, including embarkation and disembarkation; and provide effective communication during muster and emergency drills.

Under the agreement:

• 42 existing ships, and 7 ships in various stages of design and construction, will be surveyed and remediated to comply with the ADA regulations.  Accessible cabins will be dispersed among the various classes of accommodations and will provide a range of accessible features, including features for guests with hearing impairments;
• Three percent of the cabins on 49 ships will be accessible according to three levels of accessibility: fully accessible cabins, fully accessible cabins with a single side approach to the bed, and ambulatory accessible cabins.  The remaining 13 ships will be subject to possible remediation if they continue to be in service in U.S. ports four years after the agreement is entered.
• Carnival Corp. has created brand standards that address an array of accessibility issues and policies to implement them;
• Carnival Corp. will provide specific ADA training to employees and managers;
• Reservations systems will allow individuals with disabilities to reserve accessible cabins and suites with specific available options and amenities, and to guarantee reservations for accessible cabins;
• The accessibility of Carnival Corp. websites and mobile applications will comply with WCAG 2.0 Level A and AA;
• Carnival Corp. will appoint an ADA compliance officer at the executive level, two ADA responsibility officers – one for Carnival Cruises and one for Holland America Group, which includes Holland America Line and Princess Cruises, and ADA shipboard officers for each ship who are responsible for resolving ADA-related issues that arise at sea; and
• Carnival Corp. will pay a civil penalty of $55,000 to the United States and $350,000 in damages to individuals harmed by past discrimination.

Today’s settlement represents the first time the Department of Justice has required a cruise company to provide a minimum number of accessible cabins, to conduct a survey of its ships and to develop a remediation plan to comply with the ADA.  It is also the first time that an agreement under the ADA has specifically identified three types of accessible cabins on cruise ships – fully accessible cabins, fully accessible cabins-single side approach and ambulatory accessible cabins – that will be available to individuals with disabilities.

People interested in finding out more about the ADA or this settlement agreement can call the toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD), or access the ADA website at http://www.ada.gov.

Ronen Nahmani, 41, of Aventura, Florida was convicted by a jury of conspiracy to possess with intent to distribute controlled substances and controlled substance analogues, namely, synthetic cannabinoids, in violation of Title 21, United States Code, Section 846.  Nahmani is scheduled to be sentenced before Chief Judge Michael Moore on October 8, 2015 at 2:00 p.m.

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

Like all other illegal drugs, synthetic cannabinoids, also commonly known as “Spice” or “K2,” pose a nationwide health concern as they are not tested for safety.  Clandestine manufacturing of these products increase the likelihood of overdose as users do not know what they are ingesting into their bodies.  Synthetic cannabinoids are addictive, are extremely dangerous, and their effects can be life threatening.  Since the beginning of 2015, synthetic cannabinoids accounted for thousands of reported exposures to poison at control centers nationwide.  Because of their appeal to young adults and children, and their street costs, synthetic cannabinoids pose a growing risk to the public’s health and a hazard to public safety.

Nahmani’s conviction is the product of a long-term federal investigation into the importation and trafficking of synthetic cannabinoids.  The investigation revealed that Nahmani purchased vast quantities of illegal chemicals from China and distributed those chemicals in Florida and across the country.  The powdery chemicals shipped from China were turned into both leafy and liquid synthetic cannabinoid products that can be ingested by users.

In July 2014, Nahmani was found in possession of multi-kilogram quantities of synthetic cannabinoids, including AB-FUBINACA, PB-22, XLR-11, THJ-2201, 5-Cl-UR-144 and 5-Br-UR-144, as well as the equipment necessary to manufacture the synthetic products and packaging with labels such as “Scooby Snax,” “Diablo” “Platinum” and “Fire.”  Spice and K2 are commonly sold in such packaging and often contain deceptive labeling that the product is “incense” and “not for human consumption” to thwart law enforcement detection.  Some of the chemicals were not specifically listed under the Controlled Substances Act at the time of the offense conduct, but the government proved that they were controlled substance analogues intended for human consumption under the Controlled Substance Analogue Enforcement Act.  The defendant is pending sentencing.

Mr. Ferrer commends the investigative efforts of DEA, working in conjunction with the Broward County Sheriff’s Office, Coconut Creek Police Department (PD), Coral Springs PD, Davie PD, Hollywood PD, North Miami Beach PD, and Miami-Dade PD, and the support from DEA Office of Diversion Control Drug & Chemical Evaluation Section and DEA Office of Chief Counsel.

The case was prosecuted by Assistant U.S. Attorneys Marton Gyires and 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.

 

Guillermo M. Sanchez, 60, Isabel C. Sanchez, 36, and Gustavo Giral 38, all of Cutler Bay, Florida, are charged in the indictment with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering and money laundering.

Three family members were indicted for their alleged participation in a scheme to defraud Miami-area lenders and the Export-Import Bank of the United States (Ex-Im Bank), announced United States Attorney Wifredo A. Ferrer of the Southern District of Florida and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.

According to allegations in the indictment, from 2007 through 2012, the defendants utilized companies they controlled to create fictitious invoices for sales of merchandise that never occurred.  In a process called “factoring,” the defendants sold the accounts receivables to two Miami-area lenders for approximately 90 percent of the value of the merchandise listed on the alleged fake invoices.  The lenders were not aware that the invoices were fake, and expected to recover the full amount owed from the purported purchasers.  To perpetuate the fraud, the defendants allegedly transferred the proceeds through numerous bank accounts under their control and, in a Ponzi-style scheme, used a portion of the funds to pay off other factored invoices.

After the Miami lenders refused to extend further credit, the defendants and their co-conspirators allegedly created false invoices and shipping documents to obtain a loan guaranteed by the Ex-Im Bank.  Rather than acquiring, selling and shipping American-manufactured goods as required for Ex-Im Bank-guaranteed loans, the defendants allegedly used the loan proceeds to extend the fraudulent scheme by paying off other lenders, and split the remaining funds among themselves and other co-conspirators.  Ultimately, the defendants defaulted on both the factoring loans and the Ex-Im Bank loan.

Co-conspirators Fredy Moreno-Beltran, Ricardo Beato and Jorge Amad were separately charged, and each have pleaded guilty to participating in the scheme.  According to his plea agreement, Moreno-Beltran owned Clientric, a purported purchaser of goods from companies controlled by the defendants.  According to their plea agreements, Beato and Amad owned Approach Technologies International, a company that the defendants falsely claimed had sold nearly $2 million of American-manufactured telephone call center software to Clientric in order to obtain an Ex-Im Bank-guaranteed loan.  In connection with their guilty pleas, Beato, Amad and Moreno admitted that the invoices provided to Ex-Im Bank were false.

The alleged scheme caused approximately $8 million in losses to the private lenders and nearly $2 million in losses to the United States.

The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.

The case is being investigated by the Ex-Im Bank Office of Inspector General, with assistance provided by the FBI and U.S. Immigration and Customs Enforcement Homeland Security Investigations.  The case is being prosecuted by Senior Litigation Counsel Patrick Donley and Trial Attorney William Bowne of the Criminal Division’s Fraud Section.

Two Colombian citizens were sentenced for their participation in an international money laundering conspiracy. Leonardo Forero Ramirez, 59, was sentenced to 37 months in prison, followed by one year of supervised release. Ubaner Alberto Acevedo Espinosa, 32, was sentenced to 18 months in prison, followed by one year of supervised release.

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.

The defendants each previously pled guilty to one count of conspiracy to commit money laundering.

According to court documents, both Acevedo and Forero were Colombian citizens residing in Bogota.  During 2008 and 2009, Acevedo handled customer accounts at a stock brokerage firm that offered accounts which could be used by customers to receive deposits, wire transfers, and other credit or money, and to disburse the funds through wire transfers and cash or other withdrawals. The stock brokerage firm was authorized to receive funds in U.S. dollars, provided that they were properly documented and justified as being for legitimate business transactions.  Forero was one of Acevedo's customers.

During the course of his participation in this scheme, Forero received approximately $1.2 million from IRS undercover accounts which he passed on to the people designated to receive it. Acevedo was involved in the transfer of approximately $335,000 from IRS undercover accounts in the United States to the stock brokerage firm in Colombia, and the conversion of the dollars into pesos and the subsequent withdrawal of the monies by Forero.  Both Acevedo and Forero knew that the money was derived from criminal activity.

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

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.

Sherrie Rivera, 53 of Hialeah, pled guilty today to one count of theft of government money, in violation of Title 18, United States Code, Section 641.

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.

According to court documents, from 2009 through 2014, Rivera worked as the Chief Operating Officer for a credit union.  In that position, Rivera had the ability to access account information, institute fee reversals, and authorize transactions on the credit union’s accounts.  Over a five-year period, Rivera stole approximately $385,000 from accounts using different means.

Court documents state that in 2011 a customer’s account at the credit union received a series of tax refunds in different names from the filing of fraudulent tax returns.  The U.S. Department of Treasury requested reclamation of these refunds from the credit union.  The credit union was supposed to mail checks to the Treasury Department in the amount of the fraudulent refunds.  Specifically, the account had a tax refund in the amount of $4,900.  On June 1, 2011, Rivera caused a $4,900 check to be written from the account to the U.S. Department of Treasury.  Rivera signed the check, but instead of sending the check to the Treasury Department, Rivera told a teller to cash the check and Rivera kept the funds for her personal use.  Rivera admitted in an interview to her involvement in this theft of government funds.

Rivera is scheduled to be sentenced on October 2, 2015, before the Honorable Kenneth A. Marra, United States District Judge.  At sentencing, the defendant faces a maximum of ten years of imprisonment.

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

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

Two Palm Beach County residents received 27 and 15 year prison sentences following their jury trial convictions for sex trafficking of minors.

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.

Dontavious M. Blake, 33, and Tara Jo Moore, 27, both of Palm Beach County, were sentenced to 324 months and 180 months’ imprisonment, respectively, by United States District Judge Kenneth A. Marra following their conviction on charges of sex trafficking of children, in violation of Title 18, United States Code, Sections 1591 and 594.

According to court records and trial testimony, this case stemmed from an investigation into the production of child pornography.  During the investigation, a juvenile victim revealed that she had engaged in prostitution, at the age of 15, beginning in August of 2011 and continuing until December 2011. She had approximately 10 – 15 regular clients and worked in hotels in the Palm Beach County area. After further investigation, a second juvenile victim was identified and revealed that she had also engaged in prostitution, at the age of 16, beginning in July 2011 and continuing through October 2012.  They worked for a pimp who they identified as Blake and his girlfriend Moore.  Blake would post online escort advertisements with photographs of the minors on Backpage.com, which postings included a telephone number that belonged to him.  Moore would answer the calls from the clients and negotiate a price for prostitution services and schedule a “date.”  Once the negotiated price had been agreed upon, Blake would contact the minors and drive them to the hotel or location for the “date.”  At the conclusion of the date, the minor would pay a portion of the proceeds to Blake including payment for a portion of the hotel room.

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

Mr. Ferrer commended the investigative efforts of the FBI.  The case was prosecuted by Assistant U.S. Attorney Lothrop Morris.

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 members of the Pagans Motorcycle Club were convicted of firearms offenses at trial.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Special Agent in Charge George L. Piro, Federal Bureau of Investigation (FBI), Miami Field Office, Hugo J. Barrera, Special Agent in Charge Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, Ken J. Mascara, Sheriff, St. Lucie County Sheriff’s Office, William D. Snyder, Sheriff, Martin County Sheriff’s Office, and Michelle Morris, Chief, Sebastian Police Department, made the announcement.

Richard Todd Badali, 52, of Castelberry, and Thomas Richard Laakmann, 60, of Orange City, were convicted of all charges following a jury trial in Fort Pierce, Florida, before Senior U.S. District Court Judge Donald L. Graham.  Badali was convicted of possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922(g) and sale of a firearm to a known convicted felon, in violation of Title 18, United States Code, Section 922(d).   Laakmann was convicted of possession of a firearm, after having been convicted of a misdemeanor crime of domestic violence, in violation of Title 18, United States Code, Section 922(g)(9) and sale of a firearm to a known convicted felon, in violation of Title 18, United States Code, Section 922(d).

Badali and Laakmann will both be sentenced by Senior Judge Graham in Miami, Florida on a date not yet scheduled in September 2015.  At sentencing, the defendants each face a maximum sentence of 20 years’ imprisonment.

According to court records and trial testimony, between August 9, 2011 and September 3, 2011, Badali agreed to sell a 9mm pistol to another Pagans Motorcycle Club member who was cooperating with the FBI.  The cooperating source secretly recorded conversations with Badali and Laakmann regarding the sale of the firearm.  Laakmann delivered the firearm to the cooperating source on September 3, 2011, at the Pagans’ clubhouse in Sebastian, Florida.

These charges were the result of a multi-year federal, state and local law enforcement task force operation targeting the Pagan’s Motorcycle Club.  The operation resulted in the conviction of nine individuals for violations of federal firearms and narcotics laws.

U.S. Attorney Ferrer stated, “[T]his verdict reflects the commitment of this Office and our federal, state and local law enforcement partners in combatting the illegal trafficking in firearms.”

“This operation exemplifies the cooperation among federal, state and local agencies to target dangerous individuals who through illegal gun sales may threaten the safety of our communities,” stated St. Lucie County Sheriff Mascara.

Mr. Ferrer commended the investigative efforts of the FBI, ATF, St. Lucie County Sheriff’s Office Special Investigations Unit, Martin County Sheriff’s Office and Sebastian Police Department in Indian River County.  The case was prosecuted by Assistant U.S. Attorney Russell R. Killinger and Special Assistant U.S. Attorney Ryan L. 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 District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

A Martin County resident was sentenced to 90 months in prison for manufacturing hash oil in his apartment laboratory and possessing a firearm.

Wifredo A. Ferrer, U.S. 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, A.D. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, William D. Snyder, Sheriff, Martin County Sheriff’s Office, and David Dyess, Chief, Stuart Police Department, made the announcement. 

Daniel Paul Vranich, 31, of Lake Park, was sentenced by United States District Court Judge Kenneth M. Mara, in Fort Pierce, to 30 months’ imprisonment for endangering human life while illegally manufacturing a controlled substance to run consecutive to a term of 60 months’ imprisonment for possession of a firearm in furtherance of a drug trafficking crime.  Upon his release from incarceration, Vranich will be placed on supervised release for three years.

According to the stipulated factual basis in support of the defendant’s previous guilty plea, on December 30, 2014, at approximately 4:00 a.m., an emergency services call was made regarding an explosion at an apartment in Stuart, Florida.  Members of the Stuart Police Department, Martin County Sheriff’s Office, Martin County Fire Rescue, Stuart Fire Rescue and State Fire Marshal’s Office responded to the residence and discovered a smoldering fire, as well as a large industrial vacuum drying oven with a timing device.  Stuart Police Department detectives also found numerous large glass cylinders containing marijuana, numerous empty butane cans, air pumps and compressors, a vacuum oven, wax paper with approximately 48 grams of butane hash oil, a food saver sealing machine, two digital scales, an electric grinder, a money counting machine, a vacuum chamber, and numerous containers and storage bags.  In addition, law enforcement discovered a loaded Sig Sauer .45 caliber pistol and personal documents belonging to Vranich.  DEA agents and members of the Hazardous Material Unit (Hazmat) determined that the discovered chemicals, equipment and other items were used to operate a butane hash oil laboratory in the residence.  The investigation further revealed that Vranich resided in the apartment with his family.

The stipulated factual basis further indicates that Vranich admitted that he was manufacturing and possessing with the intent to distribute the controlled substances, identified as marijuana and hashish oil, and that he possessed the firearm in furtherance of his drug trafficking operation. Vranich also admitted that while manufacturing and attempting to manufacture hashish oil he created a substantial risk of harm to human life.

Hash oil is a highly potent derivative of marijuana, obtained by extracting the resins containing Tetrahydrocannabinol (THC), the active psychoactive compound, from marijuana buds and plant matter through a chemical process using materials and equipment like those found in Vranich’s apartment.  Because the butane vapor created during the process is extremely volatile, highly flammable and large amounts are required in the process of extracting the resin from the raw marijuana, explosions and fires from accidents have resulted in the destruction of property, severe injuries and even death.

Mr. Ferrer commended the investigative efforts of the ATF, DEA, Stuart Police Department, Martin County Sheriff’s Office, Martin County Fire Rescue, Stuart Fire Rescue and the State Fire Marshal’s Office.  This case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.   

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.

Craig Joseph Naughtin, 43, of Broward County was sentenced to 52 months imprisonment by United States District Judge Beth Bloom for robbing the Wells Fargo Bank in Pompano Beach.  Following his release from prison, the defendant will be placed on supervised release for three years and is ordered to pay restitution.

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

According to court records, on February 3, 2015, Naughtin walked into the Wells Fargo Bank in Pompano Beach and handed the bank teller a demand note.  The teller read the note and then gave Naughtin a stack of money.  After receiving the money, Naughtin fled the bank.  The robbery was recorded on the bank’s video surveillance system.  In a search incident to Naughtin’s arrest, law enforcement officers found $3,561.00, on the defendant as well as the demand note which stated “no this is not a joke all the money in the cash draw, no GPS, no dye packs, I’ll be on my way no problems.”

Mr. Ferrer commended the investigative efforts of the FBI, BSO and the South Florida Violent Crimes Task Force for their work on this case.  The 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.

Five defendants were indicted on charges stemming from their participation in an extensive tax refund and identity theft fraud scheme.

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

Ronald Jerome Scriven, Danesa Latoya Webb, Walter Waitus Pressley, Fritznel Jacques, a/k/a “Glacier,” and Michael Dwight Brown, a/k/a “Big Mike,” were each charged with one count of conspiracy to defraud the government with respect to claims, in violation of Title 18, United States Code, Section 286.  Defendants Scriven, Webb, Jacques, and Brown were also charged with six counts of misusing Social Security numbers, in violation of Title 42, United States Code, Section 408(a)(8), and six counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1), (c)(11) and 2.

Scriven and Pressley had their initial appearances today before U.S. Magistrate Judge Barry S. Seltzer.

According to allegations contained in the indictment, Scriven created various tax preparation business entities using his name, the names of co-conspirators, or the names of individuals whose identities were stolen. Scriven and Webb obtained electronic filing identification numbers (EFINs) from the IRS for the purpose of electronically submitting false tax returns. Scriven, Webb, Pressley and Jacques recruited taxpayers and obtained their personal identifying information (PII), such as their names and Social Security numbers, for the purpose of submitting false tax returns to the IRS.  Without authorization, the PII of living and deceased individuals was also obtained for the same fraudulent purpose.

The indictment also alleges that Scriven, Webb and Jacques prepared and filed false 2008, 2009 and 2010 federal income tax returns claiming false refunds on behalf of the taxpayers who were recruited or whose identities they had stolen. Tax preparers’ fees and other fees totaling $700,000 were deducted from the tax refunds and were deposited into bank accounts controlled by some of the co-conspirators.

According to allegations contained in the indictment, Scriven and Webb prepared refund checks or prepaid debit cards in the names of taxpayers whose names and Social Security numbers were used to file the false tax returns. Some of the co-conspirators accompanied taxpayers, whose identities they had used to file false tax returns, to cash the refund checks.  The defendants would demand a substantial portion of the proceeds obtained from those cashed checks.  In the instances where the stolen identities of individuals were used to file false returns, Scriven and Webb cashed the refund checks or negotiated them for reduced values.

If convicted, the defendants each face a maximum of ten years in prison for the conspiracy charge, five years in prison for each count of the misusing a Social Security number, and a mandatory term of two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charges.

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

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.

A Miami-area real estate developer and owner of a mortgage company, his business partner and a senior mortgage underwriter each pleaded guilty to a mortgage fraud scheme involving federally insured mortgages that caused losses of $64 million to the Federal Housing Administration (FHA).  Including these defendants, 25 individuals have pleaded guilty to offenses related to this scheme to date.

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

Hector Hernandez, 57, of Miami; Aleida Fontao, 62, of Miami; and Olga Hernandez, 58, of Lake Mary, Florida, each pleaded guilty to conspiracy to commit wire fraud affecting a financial institution.  Hector and Olga Hernandez both pleaded guilty late yesterday, while Fontao pleaded guilty on July 7, 2015.  As part of his plea, Hector Hernandez also agreed to forfeit $8 million, which amounts to his profits from the scheme.

Hector Hernandez’s mortgage company, Great Country Mortgage Bankers, specialized in mortgage loans that were insured by the FHA, a division of HUD, as part of a program designed to make homeownership more accessible to first-time buyers and borrowers with lower income and imperfect credit history.  To qualify for these federally-insured mortgages, potential borrowers must meet certain income and other financial requirements.  Under the program, HUD relies on lenders like Great Country to review and approve only those borrowers who meet the employment, income and other financial requirements needed to qualify for an FHA mortgage.

According to admissions made in connection with the guilty pleas, although most of Great Country’s potential borrowers did not qualify for the FHA-insured loans, Hector Hernandez and his business partner, Aleida Fontao, directed Great Country employees, including underwriter Olga Hernandez, to falsify important documents in the potential borrowers’ loan applications to make them appear qualified.  In particular, Hector Hernandez and Fontao admitted to pressuring their employees to approve and close loans using earnings statements and verification of employment forms that made it appear as if the borrowers had higher incomes and more favorable work histories than they actually did, and documents falsely improving or explaining  borrowers’ credit histories.  As an underwriter responsible for reviewing and approving loan applications, Olga Hernandez admitted that she provided her coworkers with false information and that she endorsed the applications knowing that the borrowers did not actually qualify for the loans.

After Great Country closed the fraudulent loans, the company sold the loans to financial institutions for profit.  In connection with their guilty pleas, the defendants admitted that they offered kickbacks to the borrowers in the form of cash back after closing, which payments were not disclosed during the loan application process in order to hide the payments both from HUD and from the financial institutions that purchased the loans from Great Country.

The vast majority of the borrowers on these fraudulent loans failed to meet their monthly mortgage obligations and defaulted on their loans.  When these loans went into foreclosure, HUD, which had insured the loans, was required to pay the outstanding loan balances to the financial institution investors, resulting in substantial losses to the FHA of at least $64 million.

This case was investigated by HUD-OIG’s Miami Field Office.  This is being prosecuted by Senior Litigation Counsel David A. Bybee and Trial Attorneys Michael T. O’Neill and William E. Johnston of the Criminal Division’s Fraud Section.

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

Miami-Dade resident convicted at trial of producing child pornography.

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

Patrick Killen, Jr., 22, of Hialeah, was convicted of 15 of 16 charged counts following a jury trial before U.S. District Court Chief Judge K. Michael Moore.  Killen was convicted of three counts of production of child pornography, in violation of Title 18, United States Code, Section 2251(a); two counts of distribution of child pornography, in violation of Title 18, United States Code, Section 2252(a)(2); four counts of receipt of child pornography, in violation of Title 18, United States Code, Section 2252(a)(2); four counts of possession of child pornography, in violation of Title 18, United States Code, Section 2252(a)(4)(B); and two counts of transmission of interstate threats, in violation of Title 18, United States Code, Section 875(d).  Killen was acquitted of destruction of evidence, in violation of Title 18, United States Code, Section 1519.

Killen is scheduled to be sentenced by Chief Judge Moore on September 24, 2015.  At sentencing, Killen faces a minimum mandatory term of 15 years’ imprisonment.

According to the court records and trial testimony, beginning at least as early as November of 2012, Killen created fraudulent social media accounts using assumed identities of teenage girls.  Killen stole photographs of minor females from Facebook, Instagram and other sources that he used in support of his falsified accounts.  Using the assumed female identities, Killen would search social media websites and engage teenage boys, generally between 11 and 14 years of age, in conversation using internet chat applications such as Kik, Skype, and Omegle.  Over the course of these conversations, some of which lasted hours and others months, Killen falsely presented himself to be a teenage girl.  Killen would beg, bribe, and cajole the unsuspecting boys to send him sexually explicit pictures of themselves.  In response to Killen’s fraudulent representations, hundreds of teenage boys sent Killen sexually explicit photographs identified as child pornography.  When many of these young boys expressed reticence in sending additional sexually explicit photographs, Killen would blackmail them by threatening to post the previously provided material on Instagram and other social media sites.  Killen collected, catalogued, and traded the child pornography photographs and videos with other individuals around the world using peer-to-peer file sharing programs.  Killen produced, possessed, distributed and received thousands of images and video of children engaged in sexually explicit conduct.

With this conviction, U.S. Attorney Ferrer noted “[T]he defendant used the internet to target children and to sexually exploit numerous vulnerable victims.  Our Office will continue to join forces with the FBI to combat child pornography offenses.  This particular type of criminal activity, now being commonly referred to as “sextortion,” represents an evolving and pernicious threat.  Parents must understand this new danger, and make certain that their children are similarly aware.  With just an internet connection or a smart phone, even the youngest of children are susceptible to this type of trickery and criminal exploitation.”

“Sextortion is a growing Internet crime by which online predators take advantage of children through terror and manipulation,” said Brenda L. Moxley, Assistant Special Agent in Charge, FBI Miami.  “More information about sextortion and how to protect children from this vile crime can be found at FBI.gov.”

Mr. Ferrer commended the investigative efforts of the FBI and Norwood New Jersey Police Department.  The case was prosecuted by Assistant U.S. Attorneys Robb Emery and Ben Widlanski.

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

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- Federal Authorities announced today that the Financial Crimes Enforcement Network (FinCEN) has issued a Geographic Targeting Order (GTO) for South Florida check cashers to temporarily enhance the identification requirements on customers cashing Federal tax refund checks.  The GTO will require check cashers in Miami-Dade and Broward Counties to obtain and record specific identification information from customers cashing federal income tax refund checks over $1,000.  This information will include the customer’s identification, a digital photograph of the customer taken at the time of the transaction, the customer’s telephone number, and, in accordance with Florida law, the individual’s thumbprint.

FinCEN issued the GTO in close coordination with the Internal Revenue Service Criminal Investigation (IRS-CI), Miami Field Office and the U.S. Attorney’s Office for the Southern District of Florida (SDFL), which established the South Florida Identity Theft Tax Fraud Strike Force to combat the wave of stolen identity tax refund scams over the last several years.  The Florida Office of Financial Regulation further provided valuable assistance to the federal authorities in issuing the GTO.

FinCEN, the IRS, and the SDFL are particularly concerned that identity thieves are attempting to perpetrate their schemes outside of the tax filing season in hopes that their illegal activity will catch financial institutions off guard and be more likely to slip through their anti-money laundering controls, which are aimed at preventing criminal funds from entering and moving through the financial system. The GTO will, therefore, cover a time period (August 3, 2015, through January 30, 2016) in which the proportion of fraudulent tax refund transactions is high, but the total volume of transactions is relatively low.

U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida stated, “Prosecuting stolen identity tax refund fraud remains a top priority for the U.S. Attorney’s Office.  We greatly appreciate the continued efforts of FinCEN and the IRS in this area and look forward to working with financial institutions in the private sector through this GTO in order to further combat these fraudulent schemes that impact our South Florida communities.”

A copy of the Order is available at the following website: http://www.fincen.gov/news_room/nr/pdf/20150710GTO.pdf.

Failure to comply could result in substantial criminal and civil penalties.

A copy of the FinCEN release may be found at the following website: http://www.fincen.gov/news_room/nr/pdf/20150713.pdf.

Sonny Austin Ramdeo, 35, of Sunrise, was sentenced today to 240 months in prison, followed by 3 years of supervised release in connection with a $20 million federal payroll tax fraud scheme.  Ramdeo was also ordered to pay restitution in the amount of $21,442,173.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), made the announcement.

Ramdeo previously pled guilty to two counts of wire fraud and money laundering, in violation of Title 18, United States Code, Sections 1343 and 1956(a)(1)(B)(i).

According to statements made in court and court records, from as early as 2005, defendant Ramdeo was employed as the payroll supervisor at Promise Healthcare, Inc. (Promise Healthcare) and Success Healthcare Group (Success Healthcare), both of which owned and operated hospital facilities throughout the United States.  As payroll supervisor for these two companies, Ramdeo was responsible for overseeing the payment of bi-weekly wages and related payroll taxes for approximately 4,000 employees.  While employed as a payroll supervisor, Ramdeo facilitated a $20 million dollar federal payroll tax fraud scheme.  To execute this scheme, Ramdeo incorporated PayServ Tax Inc., and thereafter represented to officers and employees of Promise Healthcare and Success Healthcare that his company would handle the transfer of local, state and federal payroll taxes to the proper agencies.  Instead of forwarding all of the monies due to the taxing authorities for employee payroll taxes, Ramdeo stole and embezzled the funds resulting in a $21 million dollar underpayment. By stealing the payroll tax money, Ramdeo caused hospitals to lay off employees, adversely impacted the maintenance and operations of seventeen acute care hospitals, jeopardized services provided to patients, challenged investors’ security, and reduced the amount of money the taxing authorities actually collected.

Court records indicate that Ramdeo kept the taxes paid by Promise and Success Healthcare to PayServ for his own personal use.  These stolen monies included employee and company wages.  Ramdeo used the proceeds from this fraudulent scheme in order to finance a now defunct charter airline company.

U.S. Attorney Ferrer stated, “Sonny Ramdeo abused the trust bestowed upon him as a payroll supervisor.  By stealing payroll taxes for his own personal gain, Ramdeo adversely impacted private citizens and companies.  His selfish acts were rightly punished with the imposition of a significant federal sentence.”

“Sonny Austin Ramdeo portrayed himself as a business man who promised his clients that he would file and remit payroll taxes to the proper agencies.  He didn’t,’ said Michael A. D’Alonzo, Assistant Special Agent in Charge, FBI Miami.  “Instead, he was blinded by greed and apparently unconcerned about the plight of the thousands of people he bilked to the tune of $20 million in losses.”

Kelly R. Jackson, Special Agent in Charge, IRS Criminal Investigation, stated, “Sonny Austin Ramdeo was responsible for paying local, state and federal payroll taxes to the proper agencies on behalf of thousands of employees, but instead selfishly stole the money for his own personal use. As seen in this case, the failure to pay over withheld payroll taxes is a serious offense that can have severe consequences for both employers and the employees of the affected businesses. Let Ramdeo’s actions and lengthy sentence serve as a warning to those who are considering similar conduct.”

 Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Ellen L. Cohen.

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

 

A Miami-Dade County resident pled guilty to filing false refund claims with the Internal Revenue Service.

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

Mavys Galvez, 32, of Miami, Florida, pled guilty to one count of making a false, fictitious, and fraudulent claim against the United States, in violation of Title 18, United States Code, Section 287.

According to court documents, Galvez filed false 2006, 2007, 2008 and 2009 amended federal income tax returns with the IRS claiming fraudulent refunds. In the returns, Galvez falsely asserted that she and her husband were owed millions of dollars in income from various entities, and that those entities had withheld the money as federal income tax paid to the IRS.  In fact, the entities owed no such income to Galvez or her husband, and withheld no such taxes on their behalf.  Specifically, Galvez filed a 2006 amended tax return with her husband claiming a tax refund of $1,049,270 based in large part on claimed income and $810,224 of tax withheld by a bank.  The tax return also attached a Form 1099-OID purportedly from the bank reflecting those totals, as well as 1099-OID forms from other entities. The filed 1099-OID forms were false.

Court documents indicate that Galvez had previously filed legitimate tax returns for tax years 2006 through 2009, knew that she and her husband had not received the income from the various entities reported on the fraudulent returns, knew that the taxes claimed had not been withheld, and knew that the 1099-OID forms were false.  The total amount of fraudulent refunds claimed by Galvez for tax years 2006 through 2009 is $3,424,834.

Mavys Galvez is scheduled to be sentenced on September 17, 2015 at 1:30 p.m. before United States District Judge William P. Dimitrouleas.  At sentencing, the defendant faces a maximum of five years of imprisonment.

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

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.