Southern District of Florida

Two men were sentenced to decades in prison, following their participation in a carjacking spree in Miami-Dade and Broward Counties.

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), J.D. Patterson Jr., Director, Miami-Dade Police Department (MDPD), Sergio Velazquez, Chief, City of Hialeah Police Department, and Tomas Sanchez, Interim Chief, City of Hollywood Police Department, made the announcement.

Ty West, 19, and Demetrius Bain, 19, both of Miami-Dade County, were sentenced by  United States District Court Senior Judge James Lawrence King to consecutive terms of imprisonment totaling 32 years and 35 years respectively, for possession of a firearm by a convicted felon, carjacking and brandishing firearms during a crime of violence, in violation of Title 18, United States Code, Sections 922(g)(1), 2119(1) and 924(c)(1)(A)(ii).  Upon completion of their prison sentences, the defendants will be placed on supervised release. West will be on supervised release for a period of five years and Bain for ten years.

According to court documents and information provided in court, on June 19, 2014, West was in the City of Hialeah when he brandished a firearm and threatened to kill the vehicle occupants before he took possession of the car.  Days later, on June 26, 2014, West was seen running through private property with a firearm, in Miami-Dade County.  Police arrested West and recovered the firearm.  However, police were not yet aware of West’s involvement in the earlier carjacking and he was released from state custody.

On July 14, 2014, in the City of Hialeah, Bain and West brandished firearms, ordered a couple from their vehicle, and then stole the victims’ car.  A few hours later, West and Bain would later use the stolen vehicle to facilitate the carjacking of a young mother in Broward County.  The defendants drove to a residential neighborhood in Hollywood, Florida.  As the victim attempted to retrieve her child from the vehicle, Bain approached, brandishing a firearm and demanded that the mother give him her purse.  Bain removed the keys from the purse and entered the victim’s vehicle.  Just moments before the defendant drove away in the stolen car, the victim was able to recover her child from the vehicle.  Police later observed West driving the stolen vehicle in Miami-Dade County.  An investigation by law enforcement, including fingerprint examinations and eyewitness statements, linked both West and Bain to the offenses for which they previously pleaded guilty.

Mr. Ferrer commended the investigative efforts of the ATF, MDPD, City of Hialeah Police Department, and City of Hollywood Police Department.  This case was prosecuted by Assistant U.S. Attorney Breezye Telfair.

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

Three Miami real estate developers were sentenced to prison terms today for their roles in a mortgage fraud scheme that caused losses of $27.8 million.

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

Stavroula Mendez, 68, was sentenced to 135 months in prison; Lazaro Mendez, 42, was sentenced to 108 months in prison; and Marie Mendez, 49, was sentenced to 57 months in prison.  U.S. District Judge Patricia A. Seitz of the Southern District of Florida also ordered each of the defendants to forfeit $35,252,331 in fraudulent proceeds and to pay $21,240,064 in restitution.  In November 2014, all three defendants were convicted of wire fraud, bank fraud and conspiracy.  Eleven other co-conspirators were previously convicted of fraud in connection with the scheme.  

Stavroula Mendez, Lazaro Mendez and Marie Mendez owned, controlled or managed various condominium developments in the Miami area.  According to evidence presented at trial, the defendants engaged in a scheme in which they facilitated payments to straw buyers as well as the submission of false loan applications on behalf of the straw buyers to secure mortgages to purchase units in the developments.  Once the units were sold, the defendants retained both the profits from the sales and control over the units.

The trial evidence showed that Lazaro Mendez recruited family members and others to be straw buyers of units that he controlled at one development and that he facilitated the submission of false loan applications.  In addition, Lazaro Mendez enlisted mortgage brokers and another individual to recruit straw buyers and to assist them in obtaining fraudulent loans.  Lazaro Mendez received kickbacks for each referred buyer. 

The evidence at trial demonstrated that, after units were sold at a development that Stavroula Mendez and her husband controlled, Stavroula Mendez funneled a portion of the loan proceeds to shell companies to pay the straw buyers’ closing cash obligations and mortgage payments.  The evidence presented at trial further established that, in 2008 and 2009, Stavroula Mendez used other shell companies to divert more than $2 million of the fraudulent proceeds to bank accounts in Switzerland and Liechtenstein.

According to the evidence presented at trial, Marie Mendez used rental payments received by the conspirators to make mortgage payments, and directed cash to another individual to make mortgage payments on behalf of straw buyers.  The evidence also showed that Marie Mendez submitted fraudulent loan applications for three condominium units that were purchased in her name.

Eventually, the defendants and their co-conspirators were unable to make mortgage payments, which caused dozens of condominium units to go into foreclosure.  The scheme caused the Federal Housing Administration, Freddie Mac, Fannie Mae and private lenders to sustain combined losses of $27.8 million.

The case was investigated by the HUD-OIG and the FHFA-OIG.  The case was prosecuted by Trial Attorneys Gary A. Winters, Brian R. Young and Kyle Maurer 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.

Joseph Akins Owanikin, a/k/a Joe Akins, of Fort Lauderdale, was charged by indictment with ten counts of filing false claims with the Internal Revenue Service, in violation of Title 18, United States Code, Section 287.  Owanikin had his initial appearance and arraignment today in Fort Lauderdale before United States Magistrate Judge Patrick M. Hunt. He pled not guilty.

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.

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

If convicted, the defendant faces up to 50 years in prison.

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

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-Dade County resident was sentenced to a term of imprisonment of 300 months for receipt of child pornography.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Alysa D. Erichs, Special Agent in Charge, United States Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Neil Melofchik, Acting Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, J.D. Patterson Jr., Director, Miami Dade Police Department (MDPD), and Daniel J. Oates, Chief, Miami Beach Police Department (MBPD).

Juan Roman, 57, of Miami, was sentenced today by United States District Judge James Lawrence King to 300 months in prison, to be followed by a lifetime of supervised release.  Roman was also ordered to register as a sex offender upon his release from prison.  Roman previously pled guilty to receiving and possessing visual depictions of minors engaged in sexually explicit conduct, in violation of Title 18, United States Code, Section 2252(a)(2) and (a)(4).  

According to court documents and information provided in court, on August 28, 2014, law enforcement officers executed a search warrant at Roman’s home after receiving information that a computer user at the residence was downloading child pornography.  While executing the search warrant, agents found Roman’s laptop and hard drives.  A forensic examination of the devices revealed that they contained videos and images of child pornography.  According to court records, Roman, a retired officer from the City of Miami Police Department, produced some of the videos depicting the sexual exploitation of minors and also downloaded multiple files of child pornography from the internet.

Mr. Ferrer commended the investigative efforts of ICE-HSI, USSS, MDPD, and MBPD.  This case was prosecuted by Assistant U.S. Attorney Jonathan Kobrinski.

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.

American Access Care Holdings, LLC, which operated a vascular access center in Miami, has agreed to pay $1.2 million to resolve allegations that it violated the False Claims Act by billing Medicare for medically unnecessary percutaneous transluminal angioplasties (PTAs) and thrombectomies and by billing for more PTAs per patient encounter than permitted.  Former American Access Care (AAC) facilities, including the one in Miami, are now operated by Fresenius Vascular Care, Inc.  The conduct addressed by the settlement agreement took place prior to the merger between the two entities.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Miami Region, made the announcement.

“Health care providers that bill for medically unnecessary procedures put their own financial self-interest over their duty to their patients’ well-being,” said Wifredo A. Ferrer, United States Attorney for the Southern District of Florida.  “We will hold providers accountable for this type of fraud and abuse that plagues the Medicare program and increases the cost of health care for all.”

“Jeopardizing patient care in order to steal taxpayer dollars is deeply troubling,” said Shimon R. Richmond, Special Agent in Charge, Office of Inspector General of the U.S. Department of Health and Human Services.  “Actions like these only strengthen our resolve to protect the American public and hold accountable those who would compromise our health care system.”

The United States alleged that a substantial percentage of the PTAs and thrombectomies billed by the AAC facility in Miami were unnecessary, based on a medical review of patient records.  Patients at the facility were routinely brought back for follow-up visits that were not justified by the patients’ condition and that simply provided more opportunities to bill for procedures the patients did not need.  The United States also alleged that AAC billed for multiple PTAs performed during one patient encounter, even though it knew that such procedures were not reimbursable.

The settlement announced today resolves allegations originally brought by Dennis Souza, a registered nurse who worked at American Access Care of Miami, under the qui tam or whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the United States for the submission of false claims and to receive a share of any recovery.  The False Claims Act authorizes the United States to intervene in such lawsuits and take over primary responsibility for litigating them, as the United States did here.  Souza’s share of the settlement has not yet been determined.

The investigation of this matter reflects a coordinated effort between the U.S. Attorney’s Office for the Southern District of Florida and HHS-OIG.  The case was handled by Assistant U.S. Attorney Susan Torres.

The case is captioned United States ex rel. Souza v. American Access Care of Miami, LLC, No. 11-22686-Civ-Lenard (S.D. Fla.).  The claims settled by the lawsuit are allegations only, and there has been no determination of liability.      

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), announce that on July 1, 2015, United States District Judge Cecilia M. Altonaga sentenced Istvan Kaszab, 38, and Andrea Avram, 25, of Aventura, Florida, to 27 months’ and 11 months’ imprisonment, respectively, for Mann Act and money laundering offenses, in violation of Title 18, United States Code, Sections 2421 and 1956.  Judge Altonaga sentenced defendant Szabina Balazs, 21, of Hallandale, Florida to time served (approximately five months’ imprisonment) for violating the Mann Act.  As part of the same case, on July 2, 2015, Judge Altonaga sentenced Christian Fiorenza, 51, of Ft. Lauderdale, Florida, to 37 months’ imprisonment for Mann Act and money laundering violations.  Judge Altonaga said that the sentence imposed was necessary to promote respect for the law and deter the defendant and others from engaging in this type of criminal activity.  All defendants pled guilty to the charges at issue.

Between May 2012 and September 2014, the defendants participated in the operation of an escort agency, that is, the Fort Lauderdale Escort Services (“FLES”).  FLES recruited adult women from Eastern Europe, predominantly Hungary, to engage in prostitution in the United States.  The women were recruited through various advertisements and other means.  FLES would assist the women in petitioning for travel to the United States through the Electronic System for Travel Authorization (“ESTA”) program.  ESTA is an automated system that determines the eligibility of visitors to travel to the United States under the Visa Waiver Program (“VWP”).

Once the women were admitted into in the United States, they would immediately begin working as prostitutes for FLES, both locally in South Florida, as well as nationally.FLES would advertise each prostitute’s “services” on FLES’ website.

FLES would arrange the prostitutes’ travel and housing needs in the United States.Each prostitute stayed in the United States, on average, between three months to a year.However, many overstayed their visas.

Each of the defendants played a different role in the conspiracy.Fiorenza was listed as the President of FLES, according to publicly available information on the Florida Division of Corporation’s website sunbiz.org.He also maintained FLES’ website.Kaszab recruited most of the prostitutes from Hungary.

Avram and Balazs began their affiliation with FLES as prostitutes.Avram then began assisting Kaszab in recruiting women from Hungary, arranging client meetings and travel, and facilitating money transfers from her bank account to Hungary, knowing the money came from prostitution earnings.Balazs began assisting Fiorenza with FLES’ operations.Specifically, she would assist in the maintenance of the website, book client meetings and travel, and facilitate money transfers to and from her bank accounts, knowing that the money came from prostitution earnings.

The defendants received a portion, or “cut,” of the monies earned by the prostitutes.Fiorenza received the largest cut, followed by KaszabAvram and Balazs would receive their cut from their male codefendants’ share.

Kaszab and Avram wired funds from the United States to Hungary on a regular basis and purchased several luxurious items from proceeds earned from prostitution, such as Mercedes Benz vehicles and a Breitling timepiece.

Mr. Ferrer commends the investigative efforts of ICE-HSI for their work on this case.  The case was prosecuted by Assistant U.S. Attorneys Vanessa S. Johannes and Elina A. Rubin-Smith.

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.

 

Summer camps are legally required to make reasonable accommodations to accept children with disabilities, U.S. Attorney Wifredo A. Ferrer announced today.

To help ensure that children with disabilities receive the opportunity to attend summer camp, the U.S. Attorney’s Office recently sent the attached flyer to hundreds of summer camps located within the Southern District of Florida reminding them of their obligations under the Americans with Disabilities Act (“ADA”).

Under the ADA, summer camps, both private and those run by municipalities, must make reasonable modification to enable campers with disabilities to participate fully in all camp programs and activities.  This generally means that children with disabilities are entitled to attend any camp or activity that non-disabled children attend, that camps must evaluate each child on an individual basis, and that camps must train their staff in the requirements of the ADA.  Camps are obligated to pay for the cost of any reasonable modifications necessary for disabled children to participate in camp activities, and parents should not be charged any additional fee beyond standard camp enrollment costs.

“Summer camps represent a cherished pastime where children are given tremendous growth opportunities to learn independence, try novel activities while simultaneously building self-confidence,” Ferrer said.  “The law requires camps to provide equal opportunities to disabled children whose needs can be reasonably accommodated.”      

Additional information about the ADA is available at www.ada.gov, or through contacting the U.S. Attorney’s Office Civil Rights Coordinator (305) 961-9327.

Five residents of Miami-Dade County and one resident of Nicaragua were sentenced yesterday for their participation in a $25.2 million Medicare, Medicaid, and wire fraud scheme.  Erendira V. Delgado, a/k/a “Eren Delgado,” 31, of Miami, Edgardo Rodriguez, 47, of Nicaragua, Rodney Montoya, 36, of Miami, Deborah Smith, 53, of Hialeah, and Augustin Abaga, 48, of Sunny Isles, were sentenced by U.S. District Court Judge Federico A. Moreno in Miami.

Delgado was sentenced to 40 months imprisonment.  E. Rodriguez was sentenced to 42 months imprisonment.  Montoya was sentenced to 48 months imprisonment.  Smith was sentenced to 15 months imprisonment.  Abaga was sentenced to 18 months imprisonment.  Each defendant was sentenced to serve a three year term of supervised release upon completion of their incarceration and pay restitution to the Centers for Medicare and Medicaid Services.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Pam Bondi, Florida Attorney General, Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and David Brown, Acting Special Agent in Charge, U.S. Department of State, Diplomatic Security Service (DSS), made the announcement.

On October 30, 2014, a federal grand jury in Miami returned a 36-count indictment charging Pedro Hernandez, a/k/a “Peter Hernandez,” 51, of Miramar, Freddy Zeron, 52, of Miami and Nicaragua, Delgado, E. Rodriguez, R. Montoya, Santiago Bernabe Montoya, 72, of Miami, Jose Eloy Sanchez, a/k/a “Jose Eloy Sanchez Arguello,” 70, of Coral Gables and Nicaragua, Abram J. Rodriguez, a/k/a “Abe Rodriguez,” 31, of Miami, Mirna L Blanco, 49, of Hialeah, Smith and Abaga for allegedly participating in a scheme to defraud Medicare and Medicaid by submitting false and fraudulent enrollment applications which claimed that beneficiaries resided in Florida when, in fact, they resided in Nicaragua and the Dominican Republic.  The defendants were charged with conspiracy to commit health care fraud and wire fraud, substantive counts of health care fraud, conspiracy to defraud the United States and make false statements related to health care matters and substantive counts of making false statements related to health care matters.

Beginning on November 19, 2014, ten of the eleven individuals charged in the Indictment were arrested.  Sanchez remains at large and is believed to be in Nicaragua.  All ten individuals arrested pleaded guilty in federal court.  Hernandez and A. Rodriguez pleaded guilty on Friday, June 19, 2015.  Zeron pleaded guilty on Tuesday, June 23, 2015.  S. Montoya pleaded guilty on May 14, 2015.  They are scheduled to be sentenced on August 27, 2015, at 9:30 a.m. before the U.S. District Court Judge Federico A. Moreno.

Previously, on May 5, 2015, Blanco was sentenced to 24 months imprisonment after pleading guilty to conspiracy to commit wire fraud and health care fraud.

As part of the indictment, a Temporary Restraining Order (TRO) was obtained against A. Rodriguez and Montoya.  Pursuant to the TRO, various banks froze over $150,000 that were allegedly held in the defendants’ accounts, in order to enjoin the ongoing fraud and restrain the dissipation of fraudulent proceeds.

According to allegations contained in the indictment, Florida Healthcare Plus (“FHCP”) was authorized by the Centers for Medicare and Medicaid Services to offer Medicare Advantage HMO plans to Medicare beneficiaries residing in Miami-Dade County, among other counties in Florida.  The defendants recruited individuals who resided in Nicaragua and the Dominican Republic to enroll in Medicare Advantage plans and Florida Medicaid by falsely and fraudulently representing in enrollment applications that they resided in Florida.  In these enrollment applications, the defendants represented that the foreign residents resided in Florida by using non-residential addresses, the addresses of beneficiaries’ friends and relatives, and addresses associated with the defendants. The defendants induced the individuals residing in Nicaragua and the Dominican Republic to enroll in Medicare Advantage plans, including FHCP plans, by making false and fraudulent representations, including that Medicare benefits were available in Nicaragua and the Dominican Republic.  As a result of the submission of these false and fraudulent enrollment applications, the defendants caused the Center for Medicare and Medicaid services to make monthly capitation payments to FHCP and other Medicare Advantage plans.  The defendants also caused the Florida Medicaid program to pay Medicare premiums and deductibles for many beneficiaries who did not reside in Florida, a benefit for which non-Florida residents would not be entitled.

Additionally, the defendants caused individuals associated with Pharmovisa Inc., Axis Le Professional Medical Group, Inc. (“Axis Le”), and Rodney Montoya Corp. in Miami, where defendant Montoya was employed as a doctor, to be designated as the primary care physicians for the beneficiaries residing in Nicaragua and the Dominican Republic. The defendants paid for the beneficiaries to travel from the Dominican Republic so that they could be seen by a U.S. licensed physician.  The physician would then provide diagnoses which were used to calculate the amount of money Florida Health Care Plus and other Medicare Advantage plans would receive from Medicare.  As a result of these false and fraudulent enrollment applications, the defendants obtained approximately $25,247,413 from Medicare and Florida Medicaid.  

According to the indictment, Hernandez was the chief operating officer of FHCP until May 8, 2013, A. Rodriguez was the marketing director until on or about April 21, 2014.  E. Rodriguez, Smith and Abaga were insurance agents employed by FHCP during the time of the scheme occurred.  Blanco was employed by FHCP, as well as, Axis Le and Rodney Montoya Corp.

U.S. Attorney Wifredo A. Ferrer stated, “Health care fraud cripples the American social service system by increasing health care costs, stealing taxpayer monies that support the Medicare and Medicaid programs, and robbing individuals of quality of life benefits.  This case demonstrates that, with the assistance of law enforcement partners, the U.S. Attorney’s Office is able to successfully combat these fraud schemes even when the offenders move the crime outside our shores.”

“This elaborate $25 million Medicare and Medicaid fraud scheme essentially stole millions of taxpayer dollars, and thanks to my Medicaid Fraud Control Unit and our partnerships with federal authorities, these individuals will be held accountable for their brazen actions,” said Attorney General Pam Bondi.

“Greed does not respect the law, does not concern itself with patient welfare and is not limited by international borders.  Medicare patients and American taxpayers deserve better,” said Shimon R. Richmond, Special Agent in Charge, Office of Inspector General of the U.S. Department of Health and Human Services. “Working closely with our partners we will meet this greed at every turn and bring these criminals to justice.”

“These fraudsters attempted to cheat Medicare and Medicaid by falsely claiming that beneficiaries resided in Florida when in fact they were living in Nicaragua and the Dominican Republic.  A novel idea, but not enough to thwart the hard work and diligence of the agents investigating this matter,” said George L. Piro, Special Agent in Charge, FBI Miami.  “A  special thanks goes to the U.S. Embassy Managua for their close cooperation and support.”

“The worldwide presence and investigative capabilities of the Diplomatic Security Service places us in the unique position to identify criminals who would defraud the U.S. government,” said David Brown, Acting Special Agent in Charge of the Miami Field Office of the Diplomatic Security Service.  “Regardless of where they hide, we are able to work with our law enforcement partners -- both domestically and around world -- to bring these criminals to justice.”

Mr. Ferrer commended HHS-OIG, FBI, the Florida Office of the Attorney General, Medicaid Fraud Control Unit, and DSS for their investigative efforts.

Mr. Ferrer also thanked U.S. Department of State, Diplomatic Security Service, Regional Security Office, at the U.S. Embassies in Managua and Santo Domingo for their assistance with this investigation. 

This case, brought as part of the Medicare Fraud Strike Force, under the supervision of U.S. Attorney’s Office for the Southern District of Florida, is being prosecuted by Assistant U.S. Attorney Eric E. Morales and Special Assistant United States Attorney Hagerenesh Simmons.

Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 2,300 defendants who collectively have falsely billed the Medicare program for more than $7 billion. In addition, the Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.          

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

Two Palm Beach County residents were sentenced today to possessing and using counterfeit currency.

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, William R. Latchford, Chief, Seminole Police Department, and Stephen J. Stepp, Chief, Palm Beach Gardens Police Department, made the announcement.

Bernardo Lecaros, 35, of Delray Beach, was sentenced by U.S. District Judge Robin Rosenberg to 27 months imprisonment, to be followed by two years of supervised release upon release, and was also ordered to pay $5,400 in restitution.  Co-defendant Mariana Cordova Ortiz, 23, of West Palm Beach, was sentenced to 8 months imprisonment, to be followed by a year of supervised release. Both Lecaros and Ortiz previously pled guilty to passing counterfeit currency, in violation of Title 18, United States Code, Section 472. Lecaros also pled guilty to conspiracy to pass and possess counterfeit currency, in violation of Title 18, United States Code, Section 371.

According to public records and information presented in court, on December 10, 2014 and December 14, 2014, Lecaros passed $5,400 in counterfeit currency at the Seminole Classic Casino in Hollywood, Florida.  Lecaros also possessed an additional $37,800 in counterfeit currency.  On December 20, 2014, Lecaros was arrested by the Seminole Police Department and the USSS in connection with his use of counterfeit money at the casino.

In a separate incident, according to public records and information presented in court, Lecaros and Ortiz were arrested on March 3, 2015 by the USSS and the Palm Beach Gardens Police Department after Lecaros used $300 in counterfeit currency to purchase merchandise at a luxury department store inside the Palm Beach Gardens Mall, and possessed an additional $31,500 in counterfeit currency that day.  Lecaros and Ortiz had entered the mall together that day, and Ortiz used $700 in counterfeit currency to purchase luxury goods.

Mr. Ferrer commended the investigative efforts of the USSS, the Seminole Police Department and the Palm Beach Gardens Police Department.  The case is being prosecuted by Assistant U.S. Attorneys Lauren Jorgensen and 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 sentenced to 37 months in prison, followed by three years of supervised release, and was ordered to pay restitution of $322,617.31, for his participation in an identity theft fraud scheme involving cashed tax refund checks.

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

Eldridge Nichols, 41, of Miami, previously pled guilty to one count of theft of government money.

According to court documents, from February 2011 to January 2012, the defendant had access to and control over a bank account in the name of Eldridge Nichols LLC in Miami, Florida.  Nichols caused fraudulent tax refund checks to be deposited into this account.  Approximately forty-three U.S. Treasury tax refund checks, totaling approximately $322,000, were cashed through this bank account. Nichols used the proceeds from the fraudulent tax refund checks for travel, clothing, entertainment, and other personal purposes.

Law enforcement contacted a sample of individuals who had a tax refund check in their name cashed in this account.  All of the individuals advised that they did not know of the defendant, that they did not authorize Nichols to have possession of a tax refund check in their name, and that they did not personally receive any of the proceeds from this unauthorized tax refund.

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

A Miami-Dade County resident was sentenced to a term of imprisonment of 151 months for receipt of child pornography.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Neil Melofchik, Acting Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Alysa D. Erichs, Special Agent in Charge, United States Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), J.D. Patterson Jr., Director, Miami Dade Police Department (MDPD), Daniel J. Oates, Chief, Miami Beach Police Department (MBPD) and Leonard Burgess, Chief, North Miami Police Department (NMPD), made the announcement.

Jefferson Sanchez, 32, of Homestead, was sentenced yesterday to 151 months in prison, to be followed by a lifetime of supervised release.  Sanchez was also ordered to register as a sex offender upon his release from prison.  Sanchez previously pled guilty to receiving a visual depiction of a minor engaged in sexually explicit conduct, in violation of Title 18, United States Code, Section 2252(a)(2).  

According to court documents and information provided in court, on January 29, 2015, law enforcement officers executed a search warrant at Sanchez’s home after receiving information that a computer user at the residence was downloading child pornography.  While executing the search warrant, agents followed a trail of water from the bathroom to a closet, where they found Sanchez’s wet laptop inside a storage bin covered by clothes.  A forensic examination of the computer revealed videos and images of child pornography and that the defendant had downloaded a child pornography video just before agents executed the search warrant.      

Mr. Ferrer commended the investigative efforts of the USSS, FBI, ICE-HSI, MDPD, MBPD and NMPD.  This case was prosecuted by Assistant U.S. Attorney Jonathan Kobrinski.

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.

A Miami resident pled guilty for participating in an identity theft tax fraud scheme involving thousands of deceased and other individuals’ personal identifying information (PII).

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

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

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

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

Pardo is scheduled to be sentenced on September 10, 2015 at 10:30 a.m. before United States District Judge Robin L. Rosenberg.  At sentencing, the defendant faces a maximum of fifteen years in prison for the counterfeit access device charge, ten years in prison for the access devices charge, and a mandatory term of two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charge.

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

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

Three Miami Gardens residents, Talvet Johnson, 45, Demetrius Brown, 25, and Eric McKenzie, 25, were indicted on charges of selling crack cocaine.  Brown is also charged with possessing a firearm in furtherance of drug trafficking and with possession of a firearm by a convicted felon.  A fourth Miami Gardens resident, Reuben Oliver, 22, was indicted on charges of selling firearms to a convicted felon.  As part of a joint federal-state operation, five other defendants who have been charged by the Miami-Dade State Attorney’s Office with related narcotics offenses remain at large.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Katherine Fernandez Rundle, State Attorney for Miami-Dade County, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Antonio G. Brooklen, Interim Chief, Miami Gardens Police Department (MGPD), made the announcement.

According to court documents and statements made in court, Johnson, Brown, and McKenzie are each charged in separate indictments with selling crack cocaine on multiple occasions in or near a housing complex located in Miami Gardens.  If convicted, Brown faces a mandatory minimum sentence of five years’ imprisonment and a maximum term of life imprisonment.  Johnson and McKenzie each face a maximum term of 20 years’ imprisonment.  Oliver faces a maximum term of 10 years’ imprisonment.

Mr. Ferrer commended the investigative efforts of members of the United States Attorney’s Office Violence Reduction Partnership, which includes the FBI, ATF, and MGPD.  The federal cases are being prosecuted by Assistant U.S. Attorneys Olivia S. Choe and Vanessa Snyder.  The state cases are being prosecuted by Assistant State Attorney Sarah Lobel.

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

An indictment is a formal accusation of criminal conduct, not evidence of guilt. A defendant is presumed innocent unless 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 Jamaican man was sentenced today in Fort Lauderdale, Florida, after he pleaded guilty to his role in an international lottery scheme against elderly victims in the United States.

Damion Bryan Barrett, 28, was sentenced by U.S. District Court Judge William J. Zloch of the Southern District of Florida to serve 46 months in prison and five years of supervised release.  Barrett was also ordered to pay $94,456 in restitution.

Barrett was indicted by a federal grand jury in Fort Lauderdale on Aug. 9, 2012, and was arrested in Jan. 2015 in Jamaica based on the United States’ request that he be extradited to this country.  Barrett was extradited to the United States on Feb. 12 and was the first Jamaican to be extradited to the United States based on charges that he committed fraud as part of an international lottery scheme.

On April 10, Barrett pleaded guilty to one count of conspiracy to commit wire fraud.  The prosecution is part of the United States’ ongoing crackdown on fraudulent international lottery schemes.

“This case is an excellent example of coordination between domestic and international law enforcement agencies to hold those who facilitate and participate in fraudulent schemes accountable,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida.  “We will continue to foster this cooperation in order to crackdown on international lottery fraud so that members of our community are protected and are not deprived of their hard earned savings.”

 “This sentence sends a very strong message that scammers operating in foreign countries will be held accountable for the laws they break in the United States,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division.  “The Justice Department is committed to bringing these international fraudsters to justice.”

As part of his guilty plea, Barrett acknowledged that had the case gone to trial, the United States would have proved beyond a reasonable doubt that from 2008 through 2012, he was a member of a conspiracy in which elderly victims were informed that they had won a large amount of money in a lottery and were induced to pay bogus fees in advance of receiving their purported lottery winnings.  Barrett also admitted that the United States would have proved that he knew the claims of lottery winnings were completely fabricated and that he and his co-conspirators kept the victims’ money for their own benefit without paying any lottery winnings.  Barrett also admitted that the United States would have proved that in an effort to convince the victims that the lottery winnings were real, the conspirators sent the victims communications discussing their purported lottery winnings, which falsely claimed to be from a genuine sweepstakes company and from federal agencies including the Internal Revenue Service and the Federal Reserve.  In fact, these communications were not from a genuine sweepstakes company or from agencies of the United States.       

Barrett’s co-defendant, Oneike Barnett, 29, pleaded guilty on Feb. 28, 2014, to conspiracy to commit wire fraud.  On April 29, 2014, U.S. District Court Judge William J. Zloch sentenced Barnett to serve 60 months in prison and five years of supervised release, and to pay $94,456 in restitution for his role in this case.   

U.S. Attorney Ferrer and Principal Deputy Assistant Attorney General Mizer commended the investigative efforts of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Postal Inspection Service and the U.S. Marshals Service.  The case was prosecuted by Assistant U.S. Attorney Bertha Mitrani of the Southern District of Florida and Trial Attorney Kathryn Drenning of the Civil Division’s Consumer Protection Branch.

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), 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), announced the filing of charges against three defendants in a joint investigation of individuals who fraudulently obtained federal money and property in connection with the construction of low-income housing developments in Miami-Dade County.

Gonzalo DeRamon, 51, of Coral Gables, a co-founder of Biscayne Housing Group, Inc. (“BHG”), an affordable housing developer in Miami, Florida, was charged by complaint with one count of conspiracy to commit theft of government money (18 U.S.C. § 641), one count of theft of government money (18 U.S.C. § 641), one count of money laundering (18 U.S.C. § 1957), and one count of obstruction of justice (18 U.S.C. § 1519).  These charges together carry a maximum potential sentence of forty-five years of imprisonment.

Rene Sierra, 57, of Southwest Ranches, who was the founder of Siltek Affordable Housing, LLC (“Siltek”), a general contractor located in Planation, Florida, and Arturo Hevia, 63, of Miramar, who was the founder of Design Management and Builders Corporation (“DMBC”), a general contractor located in Doral, Florida, were charged by information with one count of conspiracy to commit theft of government property and money (18 U.S.C. § 371).  This charge carries a maximum sentence of five years of imprisonment.

Seizure warrants were also filed for the proceeds of the alleged theft of government funds and money laundering.

The charging documents allege the following facts. The criminal scheme involved the following developments for elderly, low-income families or formerly homeless persons in Miami-Dade County (the “Subject Developments”): Bonita Cove: an apartment complex in Little Haiti; Casa Matias: an apartment complex in Homestead; Georgia Ayers: an apartment complex in Opa-Locka; Labre Place: an apartment complex in Overtown; Notre Dame: an apartment complex in Little Haiti; and Village Carver II:  an apartment complex in Little Haiti.

The defendants conspired to defraud the federal government in order to embezzle, steal and convert to their own use federal tax credits and funds. The criminal scheme worked as follows:  The designated state housing finance agency, Florida Housing Finance Corporation (“FHFC”), selected some of BHG’s low-income developments as eligible to receive federal tax credits and grant monies, including the Subject Developments, for the construction of low-income housing developments.

Once each Subject Development was selected, DeRamon solicited a final construction bid from contractors Sierra and Hevia reflecting the total compensation that these contractors would receive to build each Subject Development.  After receiving the final construction bid, DeRamon provided Sierra and Hevia with an inflated price to use in the construction contract for each Subject Development that would be submitted to FHFC’s representatives.  DeRamon had an unwritten agreement with Sierra and Hevia that the contractors would keep only their final construction bid amount and would kick back the remaining inflated amount in the contracts to DeRamon and his co-conspirators.

DeRamon, Sierra, and Hevia signed construction contracts with these fraudulently inflated prices for each Subject Development and submitted these contracts to FHFC’s representatives.  FHFC’s representatives relied on these fraudulent contracts in determining the amount of federal tax credits and grant monies to issue.  As a result of these fraudulently inflated prices in the construction contracts, FHFC allocated in excess of $10 million in federal tax credits and grant monies to the Subject Developments that should not have been allocated.  During the course of the scheme, Sierra and Hevia kicked back millions of dollars of these excess federal funds to accounts for the benefit of DeRamon and his co-conspirators.

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

A criminal complaint or an information is merely an allegation, and a 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 Gardens resident pled guilty today in a stolen identity tax refund fraud scheme involving personal identification information taken from the State of Florida Department of Children and Families database.

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

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

According to court documents, between February 1, 2014, and July 18, 2014, a total of 379 fraudulent federal income tax returns, for tax year 2013, were filed with the IRS from Nedd’s residence in Miami Gardens.  The returns claimed $843,295 in tax refunds.  The IRS refunded approximately $64,557 for those fraudulently filed tax returns.

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

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

Nedd is scheduled to be sentenced on September 2, 2015 at 8:30 a.m., before the Honorable Robert N. Scola, Jr., United States District Judge.  At sentencing, the defendant faces a maximum of ten years of imprisonment for the access devices charge, and a mandatory term of two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charge.

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

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Dave Aronberg, State Attorney, Office of the State Attorney for Palm Beach County, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Jeffrey S. Katz, Chief, Boynton Beach Police Department (BBPD), announced the sentencing of defendant Dennis Blake, 62, of Delray Beach, Florida, in connection with his conviction for two counts of enticing a minor to engage in sexual activity, in violation of Title 18, United States Code, Section 2422(b).  After finding that Blake, a retired principal from Indiana, arranged to meet a minor to engage in sexual activity, U.S. District Judge Beth Bloom sentenced Blake to a 120 month term of imprisonment and a $200 special assessment.  Upon release, Blake will serve a 10 year term of supervised release and will have to register as a sex offender.

Blake pled guilty to two counts of enticing a minor to engage in sexual activity on March 31, 2015.  The evidence showed that Blake sent numerous sexually explicit messages via a web-based social media application to an undercover officer who posed as a 15 year-old boy.  Blake then attempted to meet the person he believed to be a minor to engage in illegal sexual activity.  Blake was arrested by Boynton Beach Police Officers and Special Investigators for the office of the State Attorney’s Sexual Predator Enforcement Unit after he drove to a location where he believed that he would pick up the 15 year old boy.  Special Agents from ICE-HSI conducted further investigation into Blake’s cellular telephone which revealed another conversation Blake had with an actual 15 year-old boy who lived in Palm Beach County, Florida.  Blake had exchanged numerous sexually explicit messages via another web-based social media application and traveled to the boy’s home to attempt to engage in sex with him.

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

Mr. Ferrer and Mr. Aronberg commended the investigative and cooperative efforts of ICE-HSI and BBPD.  The case was prosecuted by Assistant U.S. Attorney Brandy Galler and Special Assistant U.S. Attorney Gregory Schiller from the Palm Beach 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.

Marilyn McDaniel, 67, of Garner, North Carolina, was charged by indictment with two counts of attempt to evade or defeat tax, in violation of Title 26, United States Code, Section 7201.  If convicted, the defendant faces a maximum statutory sentence of ten years in prison.

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

According to the indictment, in the calendar year 2009, McDaniel willfully attempted to evade and defeat tax by failing to pay the Internal Revenue Service (IRS) at least $200,664 in federal income tax due based on funds that she diverted from RGB Group, Inc. and RLM Services, Inc., to personal bank accounts she controlled.  For calendar year 2010, McDaniel willfully prepared and caused to be prepared a false and fraudulent U.S. Individual Income Tax Return, Form 1040, on behalf of herself, which was filed with the IRS, indicating that her taxable income for the calendar year was approximately $15,577 when she knew that her taxable income was substantially in excess of what she reported.

McDaniel had her initial appearance on June 23, 2015, before United States Magistrate Judge Alicia M. Otazo-Reyes.

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

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.

U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Acting U.S. Attorney Kelly T. Currie of the Eastern District of New York and Regional Director Jay Bergman of the Andean Region of the Drug Enforcement Administration (DEA) announced today the unsealing of five indictments in U.S. federal courts in Brooklyn, New York, and Miami charging 17 alleged leaders and associates of Colombia’s largest and most influential BACRIM (banda criminal or criminal group), Clan Usuga (formerly referred to as Los Urabeños).  The alleged leaders and other high-ranking members of Clan Usuga are charged with operating continuing criminal enterprises, participating in international cocaine trafficking conspiracies and using firearms in furtherance of drug trafficking crimes.  Clan Usuga and many of its principal leaders have been previously designated by the President of the United States and the Department of the Treasury, Office of Foreign Assets Control as specially designated narcotics traffickers pursuant to the Foreign Narcotics Kingpin Designation Act.  The Department of State has posted a $5 million reward for information leading to the arrest and/or conviction of alleged Clan Usuga principal leader Dairo Antonio Usuga David, also known as Otoniel. 

“The cases referenced today demonstrate that the U.S. government, in collaboration with our international law enforcement partners, continues to successfully combat leaders and associates of BACRIM criminal enterprises that seek to supply narcotics to the United States,” said U.S. Attorney Ferrer.  “Together, the U.S. Attorney’s Offices and the Colombian authorities strive to systematically dismantle one BACRIM structure after another and eliminate the threat they pose to our communities.” 

“The indictments announced today are the result of a sweeping national and international effort to stem the flow of drugs across the world and into our communities,” said Acting U.S. Attorney Currie.  “We stand united with our partners in Colombia in our unwavering commitment to root out the leaders of drug trafficking criminal enterprises wherever they may be found.”                            

U.S. Attorney Ferrer and Acting U.S. Attorney Currie extended their grateful appreciation to the DEA’s New York Field Division, Miami Field Division and the Bogotá Country Office as well as the Department of Homeland Security, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) New York El Dorado Task Force and the Colombian National Police, the agencies responsible for leading the investigations.  Mr. Ferrer and Mr. Currie also expressed their gratitude for the invaluable assistance provided by the Colombian Fiscalia General and the Department of Justice’s Office of International Affairs.

“These indictments are the culmination of years of work and far too often heartfelt sacrifice by the brave men and women of the Colombian National Police and the Office of the Prosecutor General of Colombia,” said DEA Regional Director Bergman.  “These indictments represent the United States’ steadfast bilateral commitment to conclusively dismantle what is the largest and arguably the last of the nationally structured criminal bands in Colombia.”

“Today’s indictments illustrate our commitment, along with our international law enforcement partners to disrupt a criminal network responsible for smuggling tons of cocaine into the United States,” said Country Attaché Luis Sierra of ICE-HSI in Colombia.  “HSI will continue to use its unique customs authorities to attack and dismantle these types of organizations and will aggressively pursue leads, regardless of where that information may lead us.”

Six of the Clan Usuga leaders were charged in both Brooklyn and Miami.  Dairo Antonio Usuga-David aka “Otoniel,” “Mao,” “Gallo,” and “Mauricio-Gallo,” is alleged to be the principal leader of CLAN USUGA.  Roberto Vargas Gutierrez aka “Gavilan,” Carlos Alberto Moreno Turberquia aka “Nicolas,” Aristides Manuel Mesa Paez aka “El Indio,” and Cesar Daniel Anaya Martinez aka “Tierra,” are alleged commanders of Clan Usuga responsible for collecting drug taxes, managing armed combatants and maintaining control over specific territorial areas within Colombia.  Also charged in Brooklyn and Miami is an alleged manager of Clan Usuga, Ramiro Caro Pineda aka “Nolasco,” who was in charge of collecting drug taxes, coordinating drug shipments and maintaining control over airstrips and ports on the coast of Colombia.

The Brooklyn indictments also charge seven other cartel leaders, including Daniel Rendon-Herrera aka “Don Mario,” the original founder and prior leader of Clan Usuga; Luis Orlando Padierna Pena aka “Inglaterra,” and Jobanis de Jesus Avila Villadiego aka “Chiquito” and “Chiquito Malo,” commanders of Clan Usuga; and Jhoni Alberto Grajales aka “Guajiro,” Orlando Gutierrez-Rendon aka “Negro Orlando,” Gustavo Palomino Araujo aka “Camilo,” and Eduard Fernando Cardoza-Giraldo aka “Boliqueso” – alleged leaders of drug collections offices and paramilitary armed groups aligned with Clan Usuga.            

A Miami indictment unsealed today charges Dairo Antonio Usuga-David aka “Otoniel,” “Mao,” and “Mauricio,” Jairo De Jesus Durango Restrepo aka “Gua Gua,” Roberto Vargas Gutierrez aka “Gavilan,” Aristides Manuel Mesa Paez aka “El Indio,” Alverio Feo Alvarado aka “Benevides,” Oscar David Pulgarin-Ganan aka “Nino” and “Coroso,” Ramiro Caro-Pineda  aka “Nolasco” and “Hugo,” Cesar Daniel Anaya Martinez aka “Tierra,” and Eduardo Luis Vargas Gutierrez aka “Pipon,” with conspiring to distribute five kilograms or more of cocaine, knowing that it would be imported into the United States.  Specifically, the defendants are charged with the distribution from as early as 2002 through June 2015, in Colombia, Venezuela, Ecuador, Guatemala, Panama, Honduras, Costa Rica, Nicaragua, Mexico and elsewhere.

According to a previously unsealed superseding indictment out of Miami, beginning around October 2006 through Feb. 10, 2012, defendants Henry De Jesus Lopez Londono aka “Mi Sangre,” “Salvador,” “Carlos Mario,” “Brother,” “Krackin,” and “Federico,” Jhon Fernando Giraldo Usuga aka “Simon,” and “Revenlino,” Arley Usuga Torres aka “07,” “Siete,” and “Samuel,” Jose Carlos Londono Robledo aka “Tito” and “Wolverine,” Carlos Antonio Moreno Tuberquia aka “Nicholas,” Edison Gomez Molina aka “El Doctor,” and Juan Diego Giraldo Usuga aka “Menor” and “Camilo,” are charged with conspiring to distribute five kilograms or more of cocaine knowing that it would be imported into the United States.  Gomez Molina, Giraldo Usuga and Fernando Usuga pleaded guilty to the superseding indictment on Nov. 26, 2013, March 20, 2014, and May 8, 2014, respectively.  According to their stipulated factual proffers, from at least October 2006 through February 2012, Gomez Molina, Giraldo Usuga and Fernando Usuga, along with others, used airplanes and other means of transportation to ship multiple loads of cocaine from Colombia to Central America.  The loads ranged anywhere from 300 to 600 kilograms each.  From there, the cocaine would be delivered to representatives of other organizations, who would take the cocaine and ultimately import it into the United States.  Each defendant admitted that he was responsible for the shipment or attempted shipment of at least 150 kilograms of cocaine and knew that the cocaine would ultimately be imported into the United States.  Gomez Molina was sentenced to serve 63 months in prison on Feb. 4, 2014.  Girlado Usuga was sentenced to serve 63 months in prison on June 9, 2014.  Fernando Usuga was sentenced to serve 168 months in prison on Aug. 29, 2014.

In another Miami indictment, Victor Alfonso Mosquera Perez aka “Negro,” is charged with conspiring to distribute five kilograms or more of cocaine, knowing that it would be imported into the United States.  Specifically, the distribution allegedly occurred from as early as 2008 until approximately May 9, 2014, in Colombia, Honduras, Nicaragua and elsewhere.

According to another indictment, Andres Fernandez Perez-Restrepo aka “Anthrax,” is charged with conspiring to distribute five kilograms or more of cocaine, knowing that it would imported into the United States.  Specifically, the defendant is alleged to have committed the distribution from at least as early as July 2012 through March 2, 2014, in Colombia, Honduras and elsewhere.

As detailed in one of the Brooklyn indictments, between June 2003 and December 2014, Usuga-David, Vargas Gutierrez, Moreno Turberquia, Padierna Pena, Avila Villadiego, Anaya Martinez and others, as leaders of Clan Usuga, conspired to import more than 73 metric tons of cocaine into the United States.  Clan Usuga coordinated the production, purchase and transfer of multi-ton shipments of cocaine, as well as the receipt of shipments of cocaine in Mexico and Central America, for ultimate importation into the United States.  Clan Usuga also controlled territory in various areas in Colombia and imposed a tax on any drug traffickers operating in those territories – a set fee for every kilogram of cocaine that was manufactured, stored or transported through areas under their control.  The indictment further alleges that these defendants employed sicarios, or hitmen, who carried out acts of violence including murders, assaults, kidnappings and assassinations to collect drug debts, maintain discipline, control and expand drug territory and to promote and enhance the position of the organization.

In a second of the indictments unsealed in Brooklyn, Orlando Gutierrez-Rendon aka “Negro Orlando,” is charged with leading the Gutierrez-Rendon drug trafficking organization, a cocaine trafficking and cocaine-debt collection organization based in Cali, Colombia, that was aligned with Clan Usuga.  According to the indictment, the Gutierrez-Rendon’s organization was involved in multi-ton shipments of cocaine from Colombia to Mexico, El Salvador and Panama for ultimate importation into the United States.  The organization is also alleged to have acted as a collection agency, using violence and murder to collect payments and outstanding debts related to cocaine shipments on behalf of Clan Usuga.  In exchange for its role in collecting funds, the organization received ownership interests in the cocaine shipments.  Gutierrez-Rendon is also charged with conspiring to murder rival drug traffickers, including the murder of Samir Garcia.  Between January 2006 and May 2013, Gutierrez-Rendon allegedly imported more than 30,000 kilograms of cocaine into the United States.

In a third Brooklyn indictment, Gustavo Palomino Araujo aka “Soldado,” “Zarco,” and “Camilo,” is charged with leading the Palomino Araujo, an organization responsible for cocaine trafficking, cocaine-debt collection and a paramilitary organization based in Cali, Colombia, that was aligned with Clan Usuga.  The organization allegedly facilitated the transfer of multi-ton shipments of cocaine from Colombia to Mexico and Central America for importation into the United States, controlled territory in various areas in Colombia, imposed a tax on any drug traffickers operating in regions under its control and employed sicarios, or hitmen, to collect debts.  Palomino Araujo is also charged with conspiring to murder numerous drug rivals.   

In the fourth Brooklyn indictment, Eduard Fernando Cardoza-Giraldo aka “Boliqueso,” is charged with international cocaine trafficking in connection with his role in controlling a drug debt collection office aligned with Clan Usuga.  

In all, 25 individuals have been charged in the investigations coordinated between the U.S. Attorneys’ Offices in Brooklyn and Miami.  All of the defendants face a maximum sentence of life in prison, if convicted of the charges against them.  Certain individuals named in indictments unsealed today have also been charged by other U.S. Attorneys’ Offices around the country.  These cases are the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies.  The OCDETF mission is to identify, investigate and prosecute high level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.

The cases in the U.S. Attorney’s Office of the Eastern District of New York are being prosecuted by Assistant U.S. Attorneys Steven L. Tiscione, Gina M. Parlovecchio and Margaret Lee of the office’s International Narcotics and Money Laundering Section.

The cases in the U.S. Attorney’s Office of the Southern District of Florida are being prosecuted by Assistant U.S. Attorney Michael Nadler of the office’s Narcotics Section.

An indictment is a formal charging document notifying the defendant of the charges.  All persons charged in an indictment are presumed innocent until proven guilty.

BOGOTA, COLOMBIA --Wifredo A. Ferrer, United States Attorney for the Southern District of Florida (SDFL), Kelly T. Currie, Acting United States Attorney for the Eastern District of New York (EDNY) and Jay Bergman, Regional Director of the Andean Region for the U.S. Drug Enforcement Administration (DEA), announced today the unsealing of five indictments in U.S. federal courts in Brooklyn, New York and Miami, Florida charging 17 alleged leaders and associates of Colombia’s largest and most influential BACRIM (banda criminal or criminal group), CLAN USUGA (formerly referred to as Los Urabeños).  The alleged leaders and other high-ranking members of CLAN USUGA are charged with operating continuing criminal enterprises, participating in international cocaine trafficking conspiracies, and using firearms in furtherance of drug trafficking crimes.  CLAN USUGA and many of its principal leaders have been previously designated by the President of the United States and the U.S. Department of the Treasury, Office of Foreign Assets Control as specially designated narcotics traffickers pursuant to the Foreign Narcotics Kingpin Designation Act.  The U.S. Department of State has posted a $5 million reward for information leading to the arrest and/or conviction of alleged CLAN USUGA principal leader Dairo Antonio Usuga David, also known as Otoniel.

“The indictments announced today are the result of a sweeping national and international effort to stem the flow of drugs across the world and into our communities,” said Kelly T. Currie, Acting U.S. Attorney for the Eastern District of New York.  “We stand united with our partners in Colombia in our unwavering commitment to root out the leaders of drug trafficking criminal enterprises wherever they may be found.”                   

 "The cases referenced today demonstrate that the U.S. government, in collaboration with our international law enforcement partners, continues to successfully combat leaders and associates of BACRIM criminal enterprises that seek to supply narcotics to the United States,” said Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida.  “Together, the U.S. Attorney’s Offices and the Colombian authorities strive to systematically dismantle one BACRIM structure after another and eliminate the threat they pose to our communities.”

Mr. Currie and Mr. Ferrer extended their grateful appreciation to the Drug Enforcement Administration’s New York Field Division, Miami Field Division, and the Bogota Country Office as well as the Department of Homeland Security, Homeland Security Investigations (HSI) New York El Dorado Task Force, and the Colombian National Police, the agencies responsible for leading the investigations.  Mr. Currie and Mr. Ferrer also expressed their gratitude for the invaluable assistance provided by the Colombian Fiscalia General and the U.S. Department of Justice Office of International Affairs.

“These indictments are the culmination of years of work and far too often heartfelt sacrifice by the brave men and women of the Colombian National Police and the Office of the Prosecutor General of Colombia,” said DEA Regional Director Jay Bergman.  “These indictments represent the United States’ steadfast bilateral commitment to conclusively dismantle what is the largest and arguably the last of the nationally structured criminal bands in Colombia.”

“Today’s indictments illustrate our commitment, along with our international law enforcement partners to disrupt a criminal network responsible for smuggling tons of cocaine into the United States,” said Luis Sierra, country attaché for HSI in Colombia.  “HSI will continue to use its unique customs authorities to attack and dismantle these types of organizations, and will aggressively pursue leads, regardless of where that information may lead us.”

Six of the CLAN USUGA leaders were charged in both Brooklyn and Miami.  Dairo Antonio Usuga-David, also known as “Otoniel,” “Mao,” “Gallo,” and “Mauricio-Gallo,” is alleged to be the principal leader of CLAN USUGA.  Roberto Vargas Gutierrez, also known as “Gavilan,” Carlos Alberto Moreno Turberquia, also known as “Nicolas,” Aristides Manuel Mesa Paez, also known as “El Indio,” and Cesar Daniel Anaya Martinez, also known as “Tierra,” are alleged commanders of CLAN USUGA responsible for collecting drug taxes, managing armed combatants, and maintaining control over specific territorial areas within Colombia.  Also charged in Brooklyn and Miami is an alleged manager of CLAN USUGA,, Ramiro Caro Pineda, also known as “Nolasco,” who was in charge of collecting drug taxes, coordinating drug shipments, and maintaining control over airstrips and ports on the coast of Colombia.

The Brooklyn indictments also charge seven other cartel leaders, including Daniel Rendon-Herrera, also known as “Don Mario,” the original founder and prior leader of CLAN USUGA; Luis Orlando Padierna Pena, also known as “Inglaterra,” and Jobanis de Jesus Avila Villadiego, also known as “Chiquito” and “Chiquito Malo,” commanders of CLAN USUGA; and Jhoni Alberto Grajales, also known as “Guajiro,” Orlando Gutierrez-Rendon, also known as “Negro Orlando,” Gustavo Palomino Araujo, also known as “Camilo,” and Eduard Fernando Cardoza-Giraldo, also known as “Boliqueso” – alleged leaders of drug collections offices and paramilitary armed groups aligned with CLAN USUGA.

A Miami indictment unsealed today, United States v. Dairo Antonio Usuga-David, et. al., 15 CR 20403-WPD, charges Dairo Antonio Usuga-David, also known as “Otoniel,” “Mao,” and “Mauricio,” Jairo De Jesus Durango Restrepo, also known as “Gua Gua,” Roberto Vargas Gutierrez, also known as “Gavilan,” Aristides Manuel Mesa Paez, also known as “El Indio,” Alverio Feo Alvarado, also known as “Benevides,” Oscar David Pulgarin-Ganan, also known as “Nino” and “Coroso,” Ramiro Caro-Pineda, also known as “Nolasco” and “Hugo,” Cesar Daniel Anaya Martinez, also known as “Tierra,” and Eduardo Luis Vargas Gutierrez, also known as “Pipon,” with conspiring to distribute 5 kilograms or more of cocaine, knowing that it would be imported into the United States.  Specifically, the defendants are charged with the distribution from as early as 2002 through June 2015, in Colombia, Venezuela, Ecuador, Guatemala, Panama, Honduras, Costa Rica, Nicaragua, Mexico, and elsewhere.

According to a previously unsealed superseding indictment out of Miami, United States v. Lopez Londono, et. al., 10 CR 20763 – Lenard (DE 9), beginning around October 2006 through February 10, 2012, defendants Henry De Jesus Lopez Londono, also known as “Mi Sangre,” “Salvador,” “Carlos Mario,” “Brother,” “Krackin,” and “Federico,” Jhon Fernando Giraldo Usuga, also known as “Simon,” and “Revenlino,” Arley Usuga Torres, also known as “07,” “Siete,” and “Samuel,” Jose Carlos Londono Robledo, also known as “Tito” and “Wolverine,” Carlos Antonio Moreno Tuberquia, also known as “Nicholas,” Edison Gomez Molina, also known as “El Doctor,” and Juan Diego Giraldo Usuga, also known as “Menor” and “Camilo,” are charged with conspiring to distribute 5 kilograms or more of cocaine knowing that it would be imported into the United States.  Gomez Molina, Giraldo Usuga, and Fernando Usuga pled guilty to the superseding indictment on November 26, 2013, March 20, 2014, and May 8, 2014, respectively (DE 72, 98, 110).  According to their stipulated factual proffers (DE 74, 101, 112), from at least October 2006 through February 2012, Gomez Molina, Giraldo Usuga, and Fernando Usuga, along with others, used airplanes and other means of transportation to ship multiple loads of cocaine from Colombia to Central America.  The loads ranged anywhere from 300 to 600 kilograms each.  From there, the cocaine would be delivered to representatives of other organizations, who would take the cocaine and ultimately import it into the United States.  Each defendant admitted that he was responsible for the shipment or attempted shipment of at least 150 kilograms of cocaine and knew that the cocaine would ultimately be imported into the United States.  Gomez Molina was sentenced to 63 months in prison on February 4, 2014 (DE 90).  Girlado Usuga was sentenced to 63 months’ imprisonment on June 9, 2014 (DE 124).  Fernando Usuga was sentenced to 168 months’ imprisonment on August 29, 2014 (DE 139).

In another Miami indictment, United States v. Victor Alfonso Mosquera Perez, 14 CR 20332 – Moore/McAliley (DE 1), Victor Alfonso Mosquera Perez, also known as “Negro,” is charged with conspiring to distribute 5 kilograms or more of cocaine, knowing that it would be imported into the United States.  Specifically, the distribution allegedly occurred from as early as 2008 until approximately May 9, 2014, in Colombia, Honduras, Nicaragua, and elsewhere.

According to another indictment, United States v. Andres Fernandez Perez-Restrepo, 14 CR 20333 – Ungaro/Otazo-Reyes (DE 1), Andres Fernandez Perez-Restrepo, also known as “Anthrax,” is charged with conspiring to distribute 5 kilograms or more of cocaine, knowing that it would imported into the United States.  Specifically, the defendant is alleged to have committed the distribution from at least as early as July 2012 through March 2, 2014, in Colombia, Honduras, and elsewhere.

As detailed in one of the Brooklyn indictments, United States v. Usuga-David et al., 14 CR 625 (S-2) (DLI), between June 2003 and December 2014, Usuga-David, Vargas Gutierrez, Moreno Turberquia, Padierna Pena, Avila Villadiego, Anaya Martinez, and others, as leaders of CLAN USUGA, conspired to import more than 73 metric tons of cocaine into the United States.  CLAN USUGA coordinated the production, purchase, and transfer of multi-ton shipments of cocaine, as well as the receipt of shipments of cocaine in Mexico and Central America, for ultimate importation into the United States.  CLAN USUGA also controlled territory in various areas in Colombia and imposed a tax on any drug traffickers operating in those territories – a set fee for every kilogram of cocaine that was manufactured, stored, or transported through areas under their control.  The indictment further alleges that these defendants employed sicarios, or hitmen, who carried out acts of violence including murders, assaults, kidnappings, and assassinations to collect drug debts, maintain discipline, control and expand drug territory, and to promote and enhance the position of the organization.

In a second of the indictments unsealed in Brooklyn, United States v. Gutierrez-Rendon, 14 CR 607 (CBA), Orlando Gutierrez-Rendon, also known as “Negro Orlando,” is charged with leading the Gutierrez-Rendon drug trafficking organization, a cocaine trafficking and cocaine-debt collection organization based in Cali, Colombia that was aligned with CLAN USUGA.  According to the indictment, the Gutierrez-Rendon’s organization was involved in multi-ton shipments of cocaine from Colombia to Mexico, El Salvador, and Panama for ultimate importation into the United States.  The organization is also alleged to have acted as a collection agency, using violence and murder to collect payments and outstanding debts related to cocaine shipments on behalf of CLAN USUGA.  In exchange for its role in collecting funds, the organization received ownership interests in the cocaine shipments.  Gutierrez-Rendon is also charged with conspiring to murder rival drug traffickers, including the murder of Samir Garcia. Between January 2006 and May 2013, Gutierrez-Rendon allegedly imported more than 30,000 kilograms of cocaine into the United States.

In a third Brooklyn indictment, United States v. Palomino-Araujo, 15 CR 162 (CBA), Gustavo Palomino Araujo, also known as “Soldado,” “Zarco,” and “Camilo,” is charged with leading the Palomino Araujo an organization responsible for cocaine trafficking, cocaine-debt collection, and a paramilitary organization based in Cali, Colombia that was aligned with CLAN USUGA.  The organization allegedly facilitated the transfer of multi-ton shipments of cocaine from Colombia to Mexico and Central America for importation into the United States, controlled territory in various areas in Colombia, imposed a tax on any drug traffickers operating in regions under its control, and employed sicarios, or hitmen, to collect debts.  Palomino Araujo is also charged with conspiring to murder numerous drug rivals.

In the fourth Brooklyn indictment, United States v. Cardoza-Giraldo, 15 CR 305 (KAM), Eduard Fernando Cardoza-Giraldo, also known as “Boliqueso,” is charged with international cocaine trafficking in connection with his role in controlling a drug debt collection office aligned with CLAN USUGA.

In all, 25 individuals have been charged in the investigations coordinated between the U.S. Attorneys’ Offices in Brooklyn and Miami.  All of the defendants face a maximum sentence of life in prison if convicted of the charges against them.  Certain individuals named in indictments unsealed today have also been charged by other U.S. Attorneys’ Offices around the country.  These cases are the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.

The cases in the Eastern District of New York are being prosecuted by Assistant U.S. Attorneys Steven L. Tiscione, Gina M. Parlovecchio, and Margaret Lee from the Office’s International Narcotics and Money Laundering Section.

The cases in the Southern District of Florida are being prosecuted by Assistant U.S. Attorney Michael Nadler from the Office’s Narcotics Section.

An indictment is a formal charging document notifying the defendant of the charges.  All persons charged in an indictment are presumed innocent until proven guilty.

Two United Kingdom nationals have been charged with crimes involving the death of a scuba diver in the Florida Keys.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Rear Admiral Scott A. Buschman, Commander of the Coast Guard 7th District and Director of Homeland Security Task Force Southeast, and Thomas E. Robarge, Special Agent in Charge, U.S. Coast Guard Investigative Service (CGIS), made the announcement that an indictment has been unsealed against Christopher Jones, 50, and Alison Gracey, 47, both of the United Kingdom, who were charged with crimes involving the death of a scuba diver in the Florida Keys in December 18, 2011.

The indictment charges Jones and Gracey with one count of involuntary manslaughter, in violation of 18 U.S.C. § 1112, and one count of making a false official statement, in violation of 18 U.S.C. § 1001(a)(2).  Additionally, the indictment charges Jones with one count of the Seaman’s Manslaughter Statute, in violation of 18 U.S.C. § 1115.  If convicted, Jones faces a maximum statutory penalty of 10 years and Gracey a maximum statutory penalty of eight years.

According to the allegations in the indictment, the defendants operated a commercial dive charter boat called “GET WET.”  The alleged unlawful and careless manner in which the defendants operated the boat caused the death of an individual scuba diver.  Additionally, the indictment alleges that the defendants knowingly and willingly made a false statement to the U.S. Coast Guard National Vessel Documentation Center about the boat’s ownership.

On June 5, 2015, Dutch authorities in St. Maarten arrested Jones and Gracey based on the previously-sealed indictment.  The Department of Justice, the Coast Guard, and Coast Guard Investigative Services are seeking the extradition of Jones and Gracey to the United States to face the charges in the indictment from St. Maarten.                                                                 

Mr. Ferrer commended the investigative efforts of the U.S. Coast Guard and the U.S. Coast Guard Investigative Service.  This case is being handled by Assistant U.S. Attorney Jaime Raich.

An indictment is merely 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.

Wifredo A. Ferrer, Fiscal Federal para el Distrito Sur de la Florida (SDFL), Kelly T. Currie, Fiscal Federal Interino para el Distrito Este de Nueva York (EDNY) y Jay Bergman, Director Regional de la Zona de los Andes de la Administración Antinarcóticos de los Estados Unidos ( DEA), anunciaron hoy la apertura de cinco acusaciones formales en los tribunales federales en Brooklyn,  Nueva York y en Miami, la Florida, imputando cargos  a 17 supuestos jefes y asociados de la BACRIM  (banda criminal)  colombiana más grande y con mayor influencia, el CLAN ÚSUGA (antes conocido como  los Urabeños).  A los supuestos jefes y otros miembros de alto rango dentro del CLAN ÚSUGA se les imputa el manejo de empresas criminales continuas, participación en conspiraciones internacionales de tráfico de cocaína, y de utilizar armas de fuego para llevar a cabo sus delitos de narcotráfico. El CLAN ÚSUGA y muchos de sus jefes principales ya antes habían sido designados por el Presidente de los Estados Unidos y el Departamento del Tesoro de los Estados Unidos, la Oficina de Control de Activos Extranjeros como narcotraficantes específicamente designados de acuerdo con  la Ley de Nombramiento de Capos Narcotraficantes Extranjeros. El Departamento de Estado de los Estados Unidos ofrece una recompensa de $5 millones para información que lleve al arresto y o condena del supuesto jefe principal del CLAN ÚSUGA, Dairo Antonio Úsuga David, también conocido como Otoniel.

“Las acusaciones formales que se anuncian hoy son el resultado de un esfuerzo nacional e internacional para parar el movimiento de drogas por todo el mundo y dentro de nuestras comunidades”, dijo Kelly T. Currie, Fiscal Federal Interino para el Distrito Este de Nueva York.  “Estamos  unidos junto  con nuestros socios en Colombia con el firme compromiso de erradicar a los jefes de las empresas narcotraficantes criminales dondequiera que se encuentren”.

“Los casos señalados hoy demuestran que el gobierno de los Estados Unidos, en colaboración con nuestros socios internacionales para el cumplimiento de la ley, sigue combatiendo con éxito a los jefes y asociados de las empresas criminales  BACRIM que quieren suministrar estupefacientes dentro de los Estados Unidos”, dijo Wifredo A. Ferrer, Fiscal Federal de los Estados Unidos para el Distrito Sur de la Florida.  “Juntos, las Oficinas de las Fiscalías Federales de los Estados Unidos y las autoridades de Colombia nos dedicamos a desmantelar sistemáticamente una estructura BACRIM tras otra, y a eliminar la amenaza que presentan para nuestras comunidades”.

El Sr. Currie y el Sr. Ferrer expresaron su agradecimiento a la Oficina de Campo de la Administración Antinarcóticos en Nueva York, la División de Campo de Miami, y la Oficina Dentro del País en Bogotá, y además al Departamento de Seguridad Interna, Investigaciones de Seguridad Interna (HSI) Grupo de Trabajo El Dorado de Nueva York, y a la Policía Nacional Colombiana, las agencias responsables de encabezar las investigaciones. El Sr. Currie y el Sr. Ferrer también expresaron su gratitud por la ayuda incalculable aportada por la Fiscalía General Colombiana y la Oficina de Asuntos Internacionales del Departamento de Justicia de los Estados Unidos.

“Estas acusaciones formales  son el resultado de años de trabajo y con demasiada frecuencia con el sacrificio de todo corazón  por parte de los hombres y mujeres valientes de la Policía Nacional Colombiana y la Oficina de la Fiscalía General de Colombia”, dijo el Director Regional de la DEA Jay Bergman.  “Estas acusaciones formales representan el compromiso inalterable bilateral de los Estados Unidos para definitivamente desmantelar lo que se puede considerar la última de las grandes bandas criminales estructuradas a nivel nacional en Colombia.”

“Estas acusaciones formales hoy demuestran nuestro compromiso, junto con nuestros socios internacionales para el cumplimiento de las leyes, para deshacer una red criminal responsable de contrabandear toneladas de cocaína dentro de los Estados Unidos” dijo Luis Sierra, el Agregado de HSI en Colombia. “HSI seguirá utilizando sus autoridades aduaneras únicas  para atacar y desmantelar esta clase de organizaciones, y seguirá activamente las pistas, sin importar a dónde nos lleve esa información.”

Seis de los jefes del CLAN ÚSUGA fueron acusados tanto en Brooklyn como en Miami. Dairo Antonio Úsuga David, también conocido como “Otoniel”, “Mao”, “Gallo” y “Mauricio-Gallo”, imputado como jefe principal del CLAN ÚSUGA. Roberto Vargas Gutiérrez, también conocido como  “Gavilán,”  Carlos Alberto Moreno Turberquia, también conocido como  “Nicolás,”  Aristides Manuel Mesa Paez, también conocido como “El Indio,”  y César Daniel Anaya Martínez, también conocido como “Tierra,” son supuestos comandantes del CLAN ÚSUGA responsables de cobrar impuestos por las drogas, manejar a los combatientes armados, y mantener control sobre áreas territoriales específicas dentro de Colombia. También fue acusado tanto en Brooklyn como Miami un supuesto administrador del CLAN ÚSUGA, Ramiro Caro Pineda, también conocido como  “Nolasco,”  encargado de cobrar los impuestos del narcotráfico, coordinar los envíos de las drogas y de mantener el control sobre las pistas aéreas y los puertos en la costa colombiana. 

Las acusaciones formales de Brooklyn también imputan cargos a otros siete jefes del cartel, incluyendo a Daniel Rendón Herrera, también conocido como  “Don Mario,”  el fundador y jefe anterior del CLAN ÚSUGA, a Luis Orlando Padierna Pena, también conocido como  “Inglaterra,”  a Jobanis de Jesús Ávila Villadiego, también conocido como  “Chiquito”  y  “Chiquito Malo,” comandantes del CLAN ÚSUGA, y a Jhoni Alberto Grajales, también conocido como “Guajiro,” a  Orlando Gutiérrez Rendón, también conocido como  “Negro Orlando,” a  Gustavo Palomino Araujo, también conocido como  “Camilo,”  y a Eduard Fernando Cardoza- Giraldo, también conocido como “Boliqueso,”    supuestos jefes de las oficinas de cobro de drogas y de grupos paramilitares armados alineados con el CLAN ÚSUGA.

Una acusación formal abierta hoy en Miami, Estados Unidos versus Dairo Antonio Úsuga- David, et. al., 15 CR 20403 WPD   les acusa a Dairo Antonio Úsuga- David, también conocido como “Otoniel”,  “Mao”, y “Mauricio”,  a Jairo De Jesús Durango Restrepo, también conocido como “Gua Gua”,  a Roberto Vargas Gutiérrez, también conocido como  “Gavilán”, a  Aristides Manuel Mesa Páez, también conocido como  “El Indio”, a  Alverio Feo Alvarado, también conocido como   “Benevides”,   a Oscar David Pulgarín Ganan, también conocido como  “Nino” y “Coroso”,  a Ramiro Caro- Pineda, también conocido como  “Nolasco”,  y “Hugo”, a César Daniel Anaya Martínez, también conocido como “Tierra”,  y a Eduardo Luis Vargas Gutiérrez, también conocido como  “ Pipon”, de conspiración para distribuir 5 kilogramos o más de cocaína, sabiendo que sería importada a los Estados Unidos. Específicamente, se les imputa a los acusados la distribución, remontándose desde 2002 e incluyendo hasta junio de 2015 en Colombia, Venezuela, Ecuador, Guatemala, Panamá, Honduras, Costa Rica, Nicaragua, México y en otros lugares.

Según una acusación formal suplente  abierta previamente en Miami, Estados Unidos versus López Londono, et. al., 10 CR 20763 -  Lenard (DE 9), comenzando alrededor de octubre, 2006, hasta el 10 de febrero de 2012, a los acusados Henry De Jesús López Londono, también conocido como “Mi Sangre”, “Salvador”,  “ Carlos Mario”,  “Brother”,   “Krackin”, y “ Federico”, Jhon Fernando Giraldo Úsuga, también conocido como “ Simón”, y “Revenlino”,   Arley Úsuga Torres, también conocido como  “07”,  “Siete”,  y “Samuel”,  José Carlos Londono Robledo, también conocido como  “Tito”  y “Wolverine”, Carlos Antonio Moreno Tuberquia, también conocido como  “Nicholas”,   Edison Gómez Molina, también conocido como “El Doctor”, y Juan Diego Giraldo Úsuga, también conocido como “Menor” y “Camilo”,  se les acusa de conspiración para distribuir 5 kilogramos o más de cocaína sabiendo que sería importada a los Estados Unidos. Gómez Molina, Giraldo Úsuga y Fernando Úsuga se declararon culpables de una acusación formal suplente el 26 de noviembre de 2013, el 20 de marzo de 2014 y el 8 de mayo de 2014, respetivamente (DE 72, 98, 110). Según sus proffers, estipulando los hechos (DE 74, 101, 112), remontándose por lo menos a octubre de 2006 y hasta finales de febrero  de  2012, Gómez Molina, Giraldo Úsuga y Fernando Úsuga, juntos con otros, utilizaron aviones y otros medios de transporte para enviar múltiples cargamentos de cocaína de Colombia a Centroamérica. Los cargamentos variaban entre 300 y 600 kilogramos cada uno. Desde allí se entregaba la cocaína a representantes de otras organizaciones, que se encargaban de la cocaína y al final la importaban a los Estados Unidos. Cada acusado admitió que era responsable de enviar o de intentar enviar por lo menos 150 kilogramos de cocaína y que sabían  que la cocaína al final se importaría a los Estados Unidos. Gómez Molina fue sentenciado a 63 meses de encarcelamiento el 4 de febrero de 2014 (DE 90). Giraldo Úsuga  fue sentenciado a 63 meses de encarcelamiento el 9 de junio de 2014 (DE 124). Fernando Úsuga fue sentenciado a 168 meses de encarcelamiento el 29 de agosto de 2014 (DE 139).

En otra acusación formal en Miami, Estados Unidos versus Víctor Alfonso Mosquera Pérez,  14 CR 20332 – Moore/McAliley (DE 1), a Víctor Alfonso Mosquera Pérez, también conocido como “Negro”, se le acusa de conspiración para distribuir 5 kilogramos o más de cocaína, sabiendo que sería importada a los Estados Unidos.  Específicamente, la distribución supuestamente ocurrió desde el  2008 hasta aproximadamente el 9 de mayo de 2014, en Colombia, Honduras, Nicaragua y otros lugares.

Según otra acusación formal, Estados Unidos versus Andrés Fernández Pérez Restrepo, 14 CR 20333 – Ungaro/Otazo-Reyes (DE 1), a Andrés Fernández Pérez-Restrepo, también conocido como “Anthrax”, se le acusa de conspiración para distribuir 5 kilogramos o más de cocaína, sabiendo que sería importada a los Estados Unidos. Específicamente el acusado supuestamente participó en la distribución   desde por lo menos julio de 2012 hasta el 2 de marzo 2014en Colombia, Honduras y otros lugares.

Como se detalla en una de las acusaciones formales de Brooklyn, Estados Unidos versus Úsuga-David et al., 14 CR 625 (S-2) (DLI), entre junio de 2003 y diciembre de 2014, Úsuga-David, Vargas Gutiérrez, Moreno Turberquia, Padierna Pena, Ávila Villadiego, Anaya Martínez y otros, como jefes del CLAN ÚSUGA, conspiraron para importar más de 73 toneladas métricas de cocaína a los Estados Unidos.  El CLAN ÚSUGA  coordinó la producción, compra y traslado de cargamentos de múltiples toneladas de cocaína, así también como la recepción de los cargamentos de cocaína en México y Centroamérica, para la importación final a los Estados Unidos. El CLAN ÚSUGA también controlaba territorios en varias áreas de Colombia e imponían un impuesto a cualquier narcotraficante que trabajase en esos territorios - una tarifa establecida por cada kilogramo de cocaína fabricado, almacenado o transportado a través de las áreas bajo su control.  La acusación formal alega además que los acusados empleaban a sicarios, quienes llevaban a cabo actos de violencia  incluyendo homicidios, agresiones, secuestros y asesinatos para cobrar deudas de drogas, mantener la disciplina, controlar y ampliar el territorio de drogas y para promover y mejorar la posición de la organización.

En la segunda de las acusaciones formales abiertas en Brooklyn, Estados Unidos versus Gutiérrez Rendón, 14 CR 607 (CBA), a Orlando Gutiérrez-Rendón, también conocido como “Negro Orlando”, se le acusa de encabezar la organización de narcotráfico  Gutiérrez-Rendón, dicha  organización de tráfico de cocaína y de cobros de deudas de cocaína basada en Cali, Colombia, que estaba alineada con El CLAN ÚSUGA.  Según la acusación formal, la organización de Gutiérrez-Rendón estaba involucrada en el envío de cargamentos de múltiples toneladas de cocaína desde Colombia a México, El Salvador y Panamá para su importación final dentro de los Estados Unidos.  Se alega además que la organización actuaba también como agencia de cobros, usando violencia y asesinatos para cobrar pagos y deudas pendientes relacionados con los envíos de cocaína, de parte del CLAN ÚSUGA.  A cambio de su papel en el cobro de fondos, la organización recibía un porcentaje de participación como dueños en  los cargamentos de cocaína.  A Gutiérrez-Rendón se le acusa también de conspirar para asesinar a narcotraficantes rivales, incluyendo el asesinato de Samir García.  Entre enero de 2006 y mayo de 2013, Gutiérrez-Rendón supuestamente importó más de 30.000 kilogramos de cocaína a los Estados Unidos.

En la tercera acusación formal en Brooklyn, Estados Unidos versus Palomino- Araujo, 15 CR 162 (CBA), a Gustavo Palomino Araujo, también conocido como  “Soldado”, “Zarco”, y “Camilo”, se le acusa de encabezar la organización Palomino Araujo, organización  responsable de tráfico de cocaína, cobros de deudas de cocaína y una organización paramilitar basada en Cali, Colombia que estaba alineada con el CLAN ÚSUGA. Se alega que la organización facilitó el traslado de envíos de múltiples toneladas de cocaína desde Colombia a México y Centroamérica para su importación a los Estados Unidos, que controlaba territorio en varias áreas de Colombia, que imponía un impuesto a cualquier narcotraficante operando en las regiones bajo su control, y que empleaba a sicarios para cobrar deudas. A Palomino Araujo también se le acusa de conspirar para asesinar a numerosos narcotraficantes rivales.

En la cuarta acusación formal en Brooklyn, Estados Unidos versus Cardoza- Giraldo, 15 CR 305 (KAM), a Eduard Fernando Cardoza-Giraldo, también conocido como “Boliqueso”, se le acusa de narcotráfico internacional de cocaína por su papel controlando una oficina de cobros de deudas de drogas alineada con el CLAN ÚSUGA.

En total, se imputan cargos a 25 individuos en las investigaciones coordinadas entre las Oficinas de las Fiscalías Federales de Estados Unidos en Brooklyn y Miami. Todos los acusados contemplan una sentencia máxima de cadena perpetua si se les condena por todos los cargos en su contra. Ciertos individuos nombrados en las acusaciones formales abiertas hoy también tienen cargos  en otras Oficinas de Fiscalías Federales de los Estados Unidos. Estos casos son el resultado de esfuerzos continuos por parte del Grupo Conjunto de Trabajo Contra el Crimen Organizado de Narcotráfico  (OCDETF), una asociación entre agencias de orden público a nivel federal, estatal y local. La misión de OCDETF es identificar, investigar y procesar a miembros de alto nivel de las empresas narcotraficantes, uniendo  y vinculando las pericias y  capacidades únicas de las fuerzas de orden público federales, estatales y locales. 

Los encargados de procesar los casos en el Distrito Este de Nueva York son los Fiscales Federales Adjuntos de los Estados Unidos Steven L. Tiscione, Gina M. Parlovecchio, y Margaret Lee, de la Sección de la Oficina Encargada de Narcóticos y Lavado de Activos Internacionales. 

El encargado de procesar los casos en el Distrito Sur de la Florida es el Fiscal Federal Adjunto de los Estados Unidos Michael Nadler, de la Sección de Narcóticos de la Oficina.

Una acusación formal es un documento formal de cargos que le informa al acusado de los cargos en su contra. Todas las  personas imputadas en una acusación formal gozan de la presunción de la inocencia hasta que se pruebe su culpabilidad.

Two Miami men were sentenced today for an armed and violent carjacking in Miami of an Internal Revenue Service (IRS) employee.          

Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Melissa Chedotal, Special Agent in Charge, Treasury Inspector General for Tax Administration (TIGTA), Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Rene Landa, Chief, South Miami Police Department, J.D. Patterson, Director, Miami-Dade Police Department (MDPD), Rodolfo Llanes, Chief, City of Miami Police Department (MPD), and Daniel Oates, Miami Beach Police Department, made the announcement that Ernest Bernard Hammett, 22, and Carl Lee Williams, 23, both of Miami, were sentenced for committing an armed, violent carjacking and brandishing a firearm during a crime of violence, in violation of Title 18, United States Code, Sections 2119(1) and 924(c)(1)(A)(i)-(ii).

Hammett was sentenced to a term of 25 years’ imprisonment.  Williams was sentenced to 15 years’ imprisonment.  After release from imprisonment, Hammett will serve a term of 10 years of supervised release and Williams will serve a term of 5 years of supervised release.  Both the defendants were also ordered to pay $35,023.25 in restitution.          

According to statements made and documents filed in court, Hammett and Williams attacked the victim, an IRS employee, at a parking garage in South Miami on May 29, 2014.  They forcibly took the victim’s property, including jewelry, a laptop computer, credit and debit cards and the victim’s vehicle.  During the course of the carjacking, Hammett and Williams physically restrained, punched and choked the victim.  The defendants also brandished and utilized a .40 caliber handgun to repeatedly strike the victim, causing the victim to suffer serious bodily injury.  When another vehicle arrived in the garage, the victim escaped and notified security at the parking garage.  Hammett and Williams then fled in the victim’s vehicle, which law enforcement promptly tracked to the Brownsville neighborhood of Miami.  Hammett and Williams were arrested after attempting to flee on foot and toss the .40 caliber handgun.  In addition to possessing some of the victim’s stolen property, the defendants were further identified through DNA evidence.

Mr. Ferrer commended the investigative efforts of members of the Violence Reduction Partnership, including TIGTA, ATF, FBI, South Miami Police Department, MDPD, MPD, and Miami Beach Police Department.  This case is being prosecuted by Assistant U.S. Attorney’s Sean T. McLaughlin and Anita White.

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

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

A North Miami Beach resident was sentenced to 48 months in prison, followed by three years of supervised release, and was ordered to pay restitution of $110,325, for his involvement in a conspiracy to commit state income tax fraud using stolen identities.

Wifredo A. Ferrer, United States 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), J. Scott Dennis, Chief, North Miami Beach Police Department (NMBPD), and the Ohio Department of Taxation – Criminal Investigations Division, made the announcement.

Earnest Thad Etienne, 29, previously pled guilty to one count of conspiracy to use unauthorized access devices, in violation of Title 18, United States Code, Section 1029(b)(2), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).

According to court records, on September 26, 2014, law enforcement executed a state search warrant at Etienne’s residence pursuant to another investigation.  During the search, law enforcement officers discovered fifteen prepaid debit cards embossed with various individuals’ names, a thumb drive, ammunition, and $7,750 in cash in Etienne’s bedroom.  In another room in the residence, law enforcement discovered additional electronic devices and a bank debit card embossed with the name of an individual who did not appear to live in the residence.  Several firearms and additional ammunition were found in the backyard of the home.

Subsequent investigation by federal law enforcement revealed that the thumb drive discovered in Etienne’s room contained the personal identifying information (PII) – including names, dates of birth, and social security numbers – of many individuals with addresses in Ohio.  In addition, Etienne used at least one of the debit cards found in his residence to withdraw money associated with fraudulent state of Ohio income tax refunds.

Court documents further state that between January 14, 2014, and September 26, 2014, Etienne and his co-conspirators caused fraudulent income tax returns to be filed in the State of Ohio seeking tax refunds in amounts ranging between $7,543 and $11,515.  The conspirators caused the State of Ohio to pay the fraudulent tax refunds to pre-paid debit cards in other individuals’ names or to a bank account in one of the co-conspirator’s names.  On several occasions, Etienne withdrew money from the bank account in his co-conspirator’s name that contained fraudulent income tax refunds from the State of Ohio.

Co-defendant Wilbert Champagne, 20, of North Miami Beach, was charged with conspiracy to use unauthorized access devices, use of unauthorized access devices, and aggravated identity theft.  Champagne is a fugitive.

Mr. Ferrer commended the investigative efforts of the DOL-OIG, IRS-CI, ICE-HSI, NMBPD and the Ohio Department of Taxation – Criminal Investigations Division.  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.

Two defendants pled guilty in a stolen identity tax refund fraud scheme.

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

Kiesha Adderly Mitchell, 36, and Melissa Pearl Davis, 32, both of Miami, each pled guilty to one count of conspiracy to defraud the government with respect to claims, in violation of Title 18, United States Code, Section 286, and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2. As part of their plea agreements, each defendant agreed to restitution in the amount of $219,721.

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

Sentencing for both defendants is scheduled for August 20, 2015 before U.S. District Court Judge Darrin P. Gayles. At sentencing, the defendants each face a maximum of ten years in prison for the conspiracy charge, and a mandatory term of two years in prison, consecutive to any other term in prison, for the aggravated identity theft charge.

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

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

Two central Florida residents have been charged by indictment with conspiracy to import alpha-Pyrrolidinopentiophenone (a-PVP), a/k/a "Flakka" from China.  A Broward County resident has also been charged by indictment with distributing “Flakka” within 1000 feet of a Ft. Lauderdale elementary school and possession of a firearm in furtherance of drug trafficking crime.

Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), A.D. Wright, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division, Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, Franklin Adderley, Chief, City of Fort Lauderdale Police Department, and Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), made the announcement.

Michael J. Hernandez, 25, from Orlando, and Jonell Philip Vega-Mercado, 19, from Clermont, were charged with conspiracy to import, conspiracy to possess with the intent to distribute, and possession with the intent to distribute a Schedule I controlled substance, alpha-Pyrrolidinopentiophenone (a-PVP), a/k/a “Flakka.”  If convicted, the defendants face a maximum statutory sentence of 20 years in prison for each offense.

According to allegations contained in court records, U.S. Customs and Border Protection (CBP) Officers in Chicago identified, searched and detained multiple parcels destined for Broward County, in the Southern District of Florida.  Each of the parcels was shipped from China and allegedly contained multi-kilogram packages of a controlled substance, alpha-Pyrrolidinopentiophenone (a-PVP), a/k/a “Flakka.”  The parcels were mailed to locations in Broward County.  Hernandez and Vega-Mercado were apprehended while picking up two (2) of the packages in Fort Lauderdale.  In total, law enforcement seized approximately 24 pounds of “Flakka,” with a total street value of approximately $500,000.

In a separate indictment, Brandon Laquaine Anderson, 29, was also charged with possession with intent to distribute “Flakka” within 1000 feet of a Ft. Lauderdale elementary school, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm as a convicted felon.  If convicted of possession with intent to distribute “Flakka” within 1000 feet of a Ft. Lauderdale elementary school and possession of a firearm in furtherance of a drug trafficking crime, Anderson faces a minimum sentence of six years in prison and a maximum sentence of life imprisonment.

United States Attorney Wifredo A. Ferrer stated, “The continued collaboration between federal and local law enforcement agencies to attack the trafficking and importation of “Flakka,” and protect our community from exposure to this dangerous and potentially deadly drug, is of paramount importance.  Today’s charges demonstrate that we are dedicated to improving public safety and the quality of life for law-abiding residents by protecting our neighborhoods and schools, adopting proactive law enforcement initiatives, and prosecuting repeat offenders, firearms violators, and narcotics traffickers.”

“These dangerous synthetic drugs compromise the public safety of our communities,” said HSI Miami Special Agent in Charge Alysa D. Erichs.  “As today’s charges demonstrate, HSI will continue to aggressively target this emerging threat to the South Florida region.”

DEA Special Agent in Charge A.D. Wright stated, “Synthetic drugs are the most lethal drugs out there today no matter what trendy names these drugs dealers attach to them.  Last year it was Molly, now it’s Flakka, and who knows what it will be called next.  These are only street terms and these drugs can contain anything.  The users are allowing themselves to be utilized as guinea pigs.  They have no idea what they are putting into their bodies.  The DEA will continue to work with our law enforcement partners to keep our citizens safe and put these dangerous drug dealers out of business.”

“Law enforcement in Florida are working collaboratively to combat the distribution of a very dangerous synthetic drug called “Flakka,”  stated Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service, Miami Division.  “We will aggressively investigate those that use the mail for criminal activity and bring them to justice.”

“The Fort Lauderdale Police Department will continue to work with various federal agencies and local partners to break the pipeline of flakka entering our community.”

“These drug dealers are only interested in padding their pockets and have complete disregard for the damage they cause to our families and our communities,” Sheriff Scott Israel said.  “In addition to our enforcement efforts, I’ve put together a team of experts from our agency to educate the community about the dangers of this deadly drug in an effort to prevent more deaths.”

Mr. Ferrer commended the investigative efforts of HSI, DEA, USPIS, CBP, Fort Lauderdale Police Department and BSO.  Both cases are being prosecuted by Assistant U.S. Attorney Sean T. McLaughlin.

An indictment is only an accusation and a 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.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Attorney General Loretta E. Lynch, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Amy L. Parker, Assistant Special Agent in Charge, Eastern Region, U.S. Office of Personnel Management, Office of Inspector General (OPM-OIG), Pam Bondi, Florida Attorney General, and, David W. Bourne, Special Agent in Charge, U.S. Food and Drug Administration’s (FDA) Office of Criminal Investigations, Miami Field Office, announce that seventy-three (73) South Florida residents were charged for their alleged participation in various schemes to defraud Medicare and Medicaid out of more than $262,567.878.  The charges in South Florida are part of a nationwide takedown by Medicare Fraud Strike Force operations in 17 cities that resulted in charges against 243 individuals, including more than 46 doctors, nurses, and other licensed medical professionals, for their alleged participation in Medicare fraud schemes involving approximately $712 million in false billings.  In addition, the Centers for Medicare & Medicaid Services (CMS) also suspended a number of providers using its suspension authority as provided in the Affordable Care Act.  This coordinated takedown is the largest in Strike Force history, both in terms of the number of defendants and loss amount.  

U.S. Attorney Wifredo A. Ferrer stated, “The Medicare fraud schemes continue to be relentless.  However, the efforts discussed today demonstrate that our national law enforcement initiatives are actively combatting this problem.  Here, on the home front, we have charged thirty percent of the total defendants alleged to have participated in these evolving fraud schemes.  Together, we have taken a solid stance against those who rob our communities of tax dollars intended to fund government programs that provide essential, quality of life benefits to the elderly and infirm.  Those who commit Medicare fraud through the filing of false claims, payment or receipt of kickbacks, or fraudulent medical practices will be held accountable for defrauding the U.S. government.”

“This action represents the largest criminal health care fraud takedown in the history of the Department of Justice, and it adds to an already remarkable record of enforcement,” said Attorney General Lynch.  “The defendants charged include doctors, patient recruiters, home health care providers, pharmacy owners, and others.  They billed for equipment that wasn’t provided, for care that wasn’t needed, and for services that weren’t rendered.  In the days ahead, the Department of Justice will continue our focus on preventing wrongdoing and prosecuting those whose criminal activity drives up medical costs and jeopardizes a system that our citizens trust with their lives.  We are prepared – and I am personally determined – to continue working with our federal, state, and local partners to bring about the vital progress that all Americans deserve.”

“Health care fraud undercuts our country by driving up health care costs, wasting taxpayer dollars, and diverting Medicare and Medicaid funds designed to pay for legitimate health services.  Taxpayers expect their government to fight back hard against such fraud and today’s crackdown shows our commitment to protecting Medicare, Medicaid, and the patients served by these government programs,” said Special Agent in Charge Shimon R. Richmond of U.S. Department of Health and Human Services Office of Inspector General’s Miami regional office.  “Coordinating closely with our law enforcement partners, our agents work hard and well to ensure those who steal from federal health care programs pay dearly for their crimes.”

“Health care fraud is a multi-million dollar criminal industry that is bleeding off tax payer dollars from the system leaving people with legitimate health needs to bear the burden,” said George L. Piro, Special Agent in Charge, FBI Miami.  “The FBI and its partners devote vast resources to investigate, catch and prosecute those committing health care fraud.  To attack the problem from both ends, tougher regulations and oversight are key to reducing the amount of fraud from occurring in the first place.”

Florida Attorney General Pam Bondi stated, “When you charge for a medical procedure you never performed, for something a patient never needed or asked for and steal millions from our taxpayers, we are coming after you.  I want to thank my Medicaid Fraud Control Unit and our federal partners who worked together through the Health Care Fraud Prevention and Enforcement Action Team, for the great investigative work that lead to these arrests.”

“Patients rely on the FDA to help keep their prescription medications safe and effective. When these drugs are diverted from the legitimate supply chain, they place the patient’s health at risk,” said George M. Karavetsos, Director, FDA Office of Criminal Investigations. “We will continue to work with our law enforcement colleagues to protect the public’s health.”

Specifically, the South Florida cases announced as part of the nationwide Medicare Fraud Strike Force takedown include:  

1. United States v. Daniel Suarez, et al., Case No. 15-20411-CR-Middlebrooks

Daniel Suarez, 23, of Miami, Maria Echarri, 40, of North Miami Beach, Angelina Gonzalez, 47, of Miami, Odalys del Carmen Borrego, 47, of Miami, Victor Manuel Ron, 30, of Homestead, Evelyn Parrado, 26, of Homestead, Enemisis Torres, 48, of Miami, and Aimee Geada, 39, of Miami, are charged by indictment with conspiracy to commit health care fraud and wire fraud and substantive counts of health care fraud.  The indictment alleges that the defendants participated in overlapping conspiracies which took place from 2010 until the end of 2014.  Suarez, Echarri, Gonzalez, and Borrego owned and operated four pharmacies, Alpha Pharmacy & Discount, Inc., Galaxy Pharmacy & Discount Inc., Dixie Pharmacy Discount Inc., and Nicole Pharmacy LLC, and husband and wife, Ron and Parrado, owned and operated a fifth pharmacy, NW Pharmacy, Inc.  The indictment further alleges that the defendants and their co-conspirators submitted claims to Medicare and Part D drug plan sponsors that falsely and fraudulently represented that that prescription drugs that had been filled at their pharmacies, were medically necessary, prescribed by a doctor and were actually provided to Medicare beneficiaries. The indictment alleges that the co-conspirators paid Medicare beneficiaries for their personal identification numbers that were used to file false and fraudulent claims with Medicare drug plan sponsors.  The indictment further alleges that Torres, through her clinic, Palmetto Comprehensive Healthcare, Inc., with the assistance of employee Geada, forged and altered Medicare beneficiary prescriptions and sold the prescriptions to the co-conspirators, who in turn, caused false and fraudulent claims to be filed with the Medicare and Part D drug program.   As a result of these false and fraudulent claims, the defendants billed a total of at least $21.2 million from Medicare.

Mr. Ferrer commended the investigative efforts of HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Roger Cruz.

1. United States v. Eklis Almanza, Juan E. Diaz Gonzalez, and Andres Rojas,Case No. 15-20412-CR-Williams

Eklis Almanza, 42, Juan E. Diaz Gonzalez, 47, both of Hialeah, and Andres Rojas, 56, of Miami, are charged by indictment with conspiracy to commit health care fraud and wire fraud and six counts of substantive health care fraud. The indictment alleges that Almanza, her husband Gonzalez, and their partner Rojas owned and operated Endless Medical Services, Corp., a/k/a “E-Z Pharmacy.”  The indictment further alleges that the defendants conspired to commit health care and wire fraud from 2008 to May of 2014 by submitting claims to Medicare and Part D drug plan sponsors that falsely and fraudulently represented that prescription drugs were medically necessary, prescribed by a doctor and actually provided to Medicare Beneficiaries, when in fact this was not true.   As a result of these false claims, the defendants received approximately $4,787,343 in overpayments from Medicare. 

Mr. Ferrer commended the investigative efforts of HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Roger Cruz.

1. United States v. Jose Pando, Magaly Gonzalez, and Daysi Sanchez,Case No. 14-20398-CR-Cooke

Jose Pando, 62, Magaly Gonzalez, 60, and Daysi Sanchez, 51, all of Hialeah, are charged by indictment with conspiracy to commit health care fraud and wire fraud, four counts of substantive health care fraud, and conspiracy to defraud the United States and pay health care kickbacks.  The indictment alleges that the defendants submitted claims to Medicare and Medicare Part D drug plan sponsors that falsely and fraudulently represented that prescription drugs were medically necessary, prescribed by a doctor and actually provided to Medicare beneficiaries when, in fact, the drugs were not medically necessary and not provided.  The Indictment also alleges that in furtherance of the conspiracy the co-conspirators submitted false and fraudulent prescription drug wholesaler invoices to conceal from PBMs auditing their operations that they had not purchased sufficient quantities of prescription drugs.  As a result of these false and fraudulent claims to Medicare Part D drug plan sponsors made overpayments to Phrma Services, a company controlled by the defendants in the approximate amount of $2.7 million.

Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney James Hayes.

1. United States v. Jorge Collazo, Case No. 15-20426-CR-Middlebrooks

Jorge Collazo, 30, of Miami, an owner of Sonic Pharmacy, is charged by indictment with conspiracy to commit health care fraud and wire fraud and four counts of substantive health care fraud.  The indictment alleges that the defendant and his co-conspirators submitted claims to Medicare and Medicare Part D drug plan sponsors that falsely and fraudulently represented that prescription drugs were medically necessary, prescribed by a doctor and actually provided to Medicare beneficiaries when, in fact, the drugs were not medically necessary and not provided.  As a result of these false and fraudulent claims, Medicare drug plan sponsors made approximately $1.3 million dollars in overpayments to Sonic Pharmacy.

Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney James Hayes.

1. United States v. Yamille Duain Porro, Case No. 15-20426-CR-Williams

Dr. Yamille Duain Porro, 69, of Hialeah, is charged by indictment with conspiracy to commit health care fraud and wire fraud, two counts of substantive health care fraud, conspiracy to defraud the United States by paying and receiving health care kickbacks, and four substantive counts of receiving health care kickbacks.  The indictment alleges that the defendant and her co-conspirators submitted claims to Medicare via interstate wire which fraudulently and falsely represented that home health care services were medically necessary, prescribed by a doctor, and provided to Medicare beneficiaries when, in fact, they were not medically necessary and not provided.  The indictment further alleges that health care kickbacks were paid to patients, patient recruiters, and to the defendant in order to further the scheme.  As a result of these false and fraudulent claims, Medicare paid Suncare Home Health and other Miami-based Home Health Agencies.

Mr. Ferrer commended the investigative efforts of the FBI, HHS-OIG and the United States Postal Inspection Service (USPIS). This case is being prosecuted by Assistant U.S. Attorney James Hayes.

1. United States v. Adrian Armas and Asley Del Sol Fernandez,Case No. 15-20442-CR-Dimitrouleas

Adrian Armas, 27, and Asley Del Sol Fernandez, 34, both of Miami, are charged by indictment with conspiracy to commit health care fraud and wire fraud and four substantive health care fraud.  The indictment alleges that the defendants and their co-conspirators submitted claims to Medicare and Medicare Part D drug plan sponsors that falsely and fraudulently represented that prescription drugs were medically necessary, prescribed by a doctor and actually provided to Medicare beneficiaries when in fact the drugs were not medically necessary and not provided.  The indictment also alleges that in furtherance of the conspiracy the co-conspirators submitted false and fraudulent prescription drug wholesaler invoices to conceal from pharmacy benefit managers (PBMs) auditing their operations that they had not purchased sufficient quantities of prescription drugs.  As a result of these false and fraudulent claims, Medicare Part D drug plan sponsors made overpayments to Astra Pharmacy in the approximate amount of $1.1 million.

Mr. Ferrer commended the investigative efforts of the HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney James Hayes.

1. United States v. Laura Ledesma, Case No. 15-20441-CR-Zloch

Laura Ledesma, 31, Hialeah, the president, director and registered agent of EDI Pharmacy, is charged by indictment with six counts of substantive health care fraud.  The indictment alleges that the defendant submitted claims to Medicare and Medicare Part D drug plan sponsors that falsely and fraudulently represented that prescription drugs were medically necessary, prescribed by a doctor and actually provided to Medicare beneficiaries, when in fact the drugs were not medically necessary and not provided.  As a result of the false and fraudulent claims, Medicare drug plan sponsors made approximately $3.3 million in overpayments to EDI Pharmacy.

Mr. Ferrer commended the investigative efforts of HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney James Hayes.

1. United States v. Odette Sanchez and Roque Garcia, Case No. 15-20396-CR-King

Odette Sanchez, 37, and Roque X. Garcia, 62, both of Miami Lakes, are charged by indictment with conspiracy to commit health care fraud and wire fraud and three counts of substantive health care fraud.  The indictment alleges that Sanchez was the former owner of Limited Home Health Care, Inc., and Garcia was the former director of nursing for the company.  The indictment further alleges that Sanchez and Garcia submitted and caused the submission of false and fraudulent claims to Medicare and Florida Medicaid for home health services that were neither medically necessary or actually provided by creating and causing the creation of false and fraudulent patient assessment forms which stated that Medicare and Medicaid beneficiaries were qualified to receive home health services, when in fact, they were not qualified.

Mr. Ferrer commended the investigative efforts of the HHS-OIG and the State of Florida Medicaid Fraud Control Unit (MFCU). This case is being prosecuted by Special Assistant U.S. Attorney Hagerenesh Simmons from the Florida Attorney General MFCU.

1. United States v. Emilio Almuina, Case No. 15-20440-CR-Cohn

Emilio Almuina, 46, of Miami, the owner of Little Havana Drug Store, Inc., is charged by indictment with six counts of health care fraud.  The indictment alleges that the defendant defrauded the Medicare program out of more than $1.1 million dollars by submitting claims to Medicare and Part D drug plan sponsors which falsely and fraudulently represented that prescription drugs were medically necessary, prescribed by a doctor and actually provided to Medicare beneficiaries, when, in fact, they were not medically necessary and not provided.   The indictment also alleges that the defendant paid Medicare beneficiaries to obtain prescriptions for pharmaceutical items to be used in connection with the filing of the false claims.  The indictment alleges that as a result of these false and fraudulent claims, Medicare made payments in the approximate amount of $1,161,446. 

Mr. Ferrer commended the investigative efforts of FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Kevin J. Larsen.

1. United States v. Ivan Fonseca and Ivon Fonseca, Case No. 15-20387-CR-Dimitrouleas

Ivan Fonseca, 51, of Palmetto Bay, and Ivon Fonseca, 53, of Miami, are charged by indictment with conspiracy to commit health care fraud and wire fraud, conspiracy to defraud the United States and receive health care kickbacks, and receipt of kickbacks.  The indictment alleges that the defendants allegedly paid the owner of a clinic kickbacks in exchange for home health care service prescriptions.  The defendants then used the purchased prescriptions to bill Medicare for physical therapy services that were not medically necessary and never rendered to Medicare beneficiaries.  The indictment further alleges that the defendants paid the owner of a physical therapy staffing services agency to provide them with documentation that falsely and fraudulently represented that physical therapy had been rendered to Medicare beneficiaries, when such services were never, in fact rendered.  The defendants, through their home health agency, RPH Home Health, fraudulently sought reimbursement from the Medicare program.  The indictment also charges the defendants in a second conspiracy related to a scheme to defraud the United States and to receive health care kickbacks.  In connection with this scheme, the defendants are charged with allegedly recruiting and referring Medicare beneficiaries to the owner of a Miami, Florida home health agency in exchange for kickbacks.  As the result of the defendants’ fraudulent schemes, the Medicare program purportedly sustained losses of approximately $2.2 million.

Mr. Ferrer commended the investigative efforts of FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Kevin J. Larsen.

1. United States v. James Bailey, Case No. 15-20425-CR-Ungaro

Jason Bailey, 39, of Opa Locka, is charged by indictment with ten counts of mail fraud, five counts of wire fraud, and one count of aggravated identity theft.  The indictment alleges that the defendant was employed by a health care provider to submit claims on their behalf and while submitting claims for payment for services, the defendant caused insurance carriers to send payments to his own address.  The defendant then allegedly deposited the checks into bank accounts he controlled.

Mr. Ferrer commended the investigative efforts of FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Christopher J. Clark.

1. United States v. Jesus Martinez, Case No. 15-20448-CR-Martinez

Jesus Martinez, 52, Miami, is charged by Information with conspiracy to commit money laundering.  According to the Information, the defendant and his co-conspirators allegedly agreed to engage in a series of financial transactions through American Master Trading, LLC, a Florida corporation. These financial transactions were undertaken in order to conceal the nature, location, source, and ownership of the proceeds of a specified unlawful activity.   According to the allegations, the specified unlawful activity was the payment of kickbacks in connection with a Federal health care program, in violation of Title 42, United States Code, Section 1320a-7b(b)(2)(A).  

Mr. Ferrer commended the investigative efforts of FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney James Hayes.

1. United States v. Dean Butler, et al., Case No. 15-20438-CR-Bloom

Dean Butler, 42, of Broward County, Nery Cowan, 53, of Miami, and Irina Mora, 47, of Miami, are charged with conspiracy to defraud the United States and pay and receive health care kickbacks, seven counts of substantive health care fraud, conspiracy to commit money laundering, and five counts of substantive money laundering.  In addition, Cowan and Butler are charged with conspiracy to commit health care fraud and wire fraud.  The indictment alleges that Butler, the owner, administrator, and director for Greater Miami Behavioral Healthcare, along with his associates Cowan and Mora paid kickbacks to patient brokers who, in turn, paid kickbacks to patient recruiters and assisted living facility owners located throughout the Southern District of Florida. The indictment further alleges that as a result of the defendants conduct, the Medicare program sustained losses of approximately $63.9 million.

Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Allan J. Medina of the Criminal Division’s Fraud Section.

1. United States v. Otto Egea, Case No. 15-20449-CR-Lenard          

Otto Egea, 57, of Miami, is charged by Information with conspiracy to defraud the United States and accept health care kickbacks.  The Information filed against Egea, who served as a patient broker for Greater Miami Behavioral Healthcare, alleges that the defendant received kickbacks in exchange for recruiting patients.

Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Allan J. Medina of the Criminal Division’s Fraud Section.

1. United States v. Nayra Nario, Case No. 15-20450-CR-Moore

Nayra Nario, 48, of Monroe County, is charged by Information with conspiracy to defraud the United States and accept health care kickbacks. The Information filed against Nario, who served as a patient broker for Greater Miami Behavioral Healthcare, alleges that the defendant received kickbacks in exchange for recruiting patients.

Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Allan J. Medina of the Criminal Division’s Fraud Section.

1. United States v. Santiago Borges, et. al., Case No. 15-20383-CR-Ungaro

Santiago Borges, 50, Erik Alonso, 44, Cristina Alonso, 43, and Damian Mayol, 43, all of Miami, each face various charges from among the following offenses included in the indictment: conspiracy to commit health care fraud and wire fraud, conspiracy to defraud the United States and pay health care kickbacks, payment of kickbacks in connection with a federal health care program, and conspiracy to make false statements relating to health care matters.  The indictment alleges that the four defendants caused the submission of false and fraudulent claims to Medicare for partial hospitalization program (“PHP”) services which were not medically necessary and not provided.  As a result of this conduct, the Medicare program sustained losses of approximately $65 million.

Mr. Ferrer commended the investigation efforts of the FBI. This case is being prosecuted by DOJ Attorney A. Brendan Stewart of the Criminal Division’s Fraud Section.

1. United States v. Lourdes Mora, Case No. 15-20416-CR-King

         United States v. Osnier Pupo, Case No. 15-20417-CR-King

Lourdes Mora, 59, a licensed mental health counselor, and Osnier Pupo, 38, both of Miami, are charged by Information with conspiracy to commit health care fraud and conspiracy to defraud the United States and pay and receive health care kickbacks, respectively.  The Information filed against Mora alleges that she was a licensed mental health counselor who worked as a therapist at R&S, St. Theresa, and New Day where she fabricated patient records, including group therapy session notes, to make it appear that patients qualified for and received legitimate partial hospitalization program (“PHP”) services when, in fact, such services were not medically necessary and/or were not provided.  The Information alleges that Pupo was paid for recruiting patients for the clinics, and in turn paid kickbacks to other patient recruiters for patient referrals and directly to beneficiaries to induce them to serve as patients at the clinics.

Mr. Ferrer commended the investigation efforts of the FBI. This case is being prosecuted by DOJ Attorney A. Brendan Stewart of the Criminal Division’s Fraud Section.

1. United States v. Ana Ibis Rumbaut, Carlos Medina and Sheyla Diaz,Case No. 15-20424-CR-Altonaga

Ana Ibis Rumbaut, 44, of Hialeah, Carlos Medina, 63, of Miami, and Sheyla Diaz, 35, of Miami, are charged by indictment with conspiracy to commit health care fraud and wire fraud, conspiracy to defraud the United States and pay and receive health care kickbacks, and substantive kickback counts.  The indictment alleges that the defendants and their co-conspirators participated in multi-million dollar health care fraud and kickback schemes involving a medical clinic, a fraudulent therapy staffing company, and multiple South Florida home health agencies.  The indictment also alleges that Rumbaut was a patient recruiter who ran a fraudulent therapy staffing company that purportedly provided home health services to Medicare beneficiaries at these home health agencies, but in reality, often did not.  The indictment further alleges that Medina was an owner of Doral Community Clinic, Inc. (“Doral”), a medical clinic that sold fraudulent home health prescriptions which were used by these home health agencies to fraudulently bill Medicare.  The indictment alleges that Diaz worked at Doral and also sold fraudulent home health prescriptions.  Through these home health agencies, the defendants and their co-conspirators allegedly submitted millions of dollars in false and fraudulent claims to Medicare for purported home health services.

Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorneys A. Brendan Stewart and Anne P. McNamara of the Criminal Division’s Fraud Section.

1. United States v. Yovani Suarez, Case No. 15-20429-CR-Altonaga

Yovani Suarez, 48, of Miami, is charged by Information with conspiracy to commit health care fraud.  The Information alleges that Suarez was a patient recruiter who worked closely with the owners and operators of several South Florida home health agencies.  According to the Information, Suarez allegedly was paid kickbacks by the owners and operators of these agencies in return for referring beneficiaries to serve as patients at these agencies.  The Information further alleges that the defendant bought fraudulent home health prescriptions from individuals at South Florida medical clinics and acted as a go-between for these home health agencies and other patient recruiters.  Allegedly, in this role, the defendant offered other patient recruiters kickbacks for referring patients to these home health agencies.

Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorneys A. Brendan Stewart and Anne P. McNamara of the Criminal Division’s Fraud Section.

1. United States v. Vladimir Prieto, et. al., Case No. 15-20385-CR-Middlebrooks

Vladimir Prieto, 52, of Miami, Ruben Maranges, 62, of Miami, Javier Paulino, 26, of Miami, Armando Lugo, 48, of Miami, and Mario Izquierdo, 57, of Hialeah, are charged by indictment with conspiracy to commit health care fraud and wire fraud, conspiracy to commit money laundering, conspiracy to defraud the United States and pay and receive health care kickbacks, and substantive kickback and money laundering counts.  The indictment alleges that for several years the defendants participated in health care fraud, money laundering and kickback schemes involving USA Home Care Solution Agency, Corp. (“USA Home Care”).  The indictment further alleges that patient recruiters provided non-homebound beneficiaries to owners and operators at this South Florida home health agency, in exchange for illegal kickbacks and bribes.  The indictment alleges that the defendants laundered money, in order to help obtain cash used to pay many of these kickbacks.  The indictment further alleges that the fraudulent therapy staffing companies documented home health services purportedly provided to beneficiaries at USA Home Care, but in reality, the services were often not provided.  The indictment alleges that the estimated loss to the Medicare program from these activities is $8.7 million.

Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Anne P. McNamara of the Criminal Division’s Fraud Section.

1. United States v. Milka Alvarez, et. al., Case No. 15-20436-CR-Gayles

Milka Alvarez, 42, of Miami, Jesus Miguel Perez, 50, of Miami, Joel Alvarez, 42, of Miami, Sandra Jaramillo, 39, of Miami, Adolfo Larrea, 53, of Miami, and Maria Teresa Pupo, 50, of Opa Locka, are charged by indictment with criminal offenses.  Alvarez, Jaramillo, Alvarez, and Perez are all charged with conspiracy to commit health care fraud, and conspiracy to defraud the United States and pay health care kickbacks, and substantive counts of paying or receiving health care kickbacks. Larrea is charged with conspiracy to defraud the United States and pay and receive health care kickbacks and two substantive counts of payment of health care kickbacks.  The indictment alleges that for more than five years, the defendants participated in health care fraud and kickback schemes involving the Yava Medical Office Inc. (“Yava”) clinic and several South Florida home health agencies, including D&D&D Home Health Care, Inc. (“D&D&D”) and Mercy Home Care Inc. (“Mercy”).  The indictment further alleges that Alvarez was the longtime owner and operator of the Yava clinic.  In this role, Alvarez allegedly conspired with others to sell fraudulent home health prescriptions which were used by the home health agencies to fraudulently bill Medicare for millions of dollars.  Pupo was allegedly a patient recruiter who bought fraudulent prescriptions, and referred beneficiaries to D&D&D and Mercy.  The indictment further alleges that Perez, Alvarez, Jaramillo, and Larrea were all owners, operators or employees of these home health agencies, and participated in the health care fraud and kickback schemes.  Through these home health agencies, the defendants and their co-conspirators allegedly submitted false and fraudulent claims to Medicare for home health services purportedly provided to recruited Medicare beneficiaries.

Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Anne P. McNamara of the Criminal Division’s Fraud Section.

1. United States v. Lazaro Del Rio, et. al., Case No. 15-20409-CR-Ungaro

Lazaro Del Rio, 55, of Miami, Hector Anzardo, 42, of Miami, Yanella Nunez, 41, of Hialeah, and Yocis Nunez, 42, of Hialeah, are charged by indictment with conspiracy to commit health care fraud and wire fraud, and with multiple counts of health care fraud.  The indictment alleges that the defendants filed false and fraudulent prescription drug claims to Medicare and Part D drug plan sponsors through Vivi Pharmacy.

Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Anne P. McNamara of the Criminal Division’s Fraud Section.

1. United States v. Alfredo Ramos, Case No. 15-20430-CR-Lenard

Alfredo Ramos, 48, of Miami, is charged by Information with conspiracy to defraud the United States and receive health care kickbacks.  The Information alleges that Ramos was a patient recruiter for Professional Medical Home Health LLC, USA Home Care Solution Agency Corp., and Longcare Home Health Corporation, all of which were Miami home health care agencies that purported to provide home health and therapy services to Medicare beneficiaries.  The Information alleges that Ramos referred Medicare beneficiaries to these agencies in exchange for kickback payments.  As a result, Ramos and his co-conspirators allegedly caused false and fraudulent claims to be submitted to Medicare for home health services purportedly provided by these agencies.

Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Anne P. McNamara of the Criminal Division’s Fraud Section.

1. United States v. Luis Toledo, Case No. 15-20407-CR-Cooke

Luis Toledo, 49, of Hialeah, is charged by indictment with conspiracy to defraud the United States and pay and receive health care kickbacks, conspiracy to commit money laundering, and substantive money laundering counts.  The indictment alleges that Toledo paid kickbacks to patient recruiters in exchange for the referral of Medicare beneficiaries to Renovation Health Care, a Miami-Dade home health care agency.  The indictment further alleges that the defendant and his co-conspirators engaged in a money laundering conspiracy to conceal the proceeds of the kickback scheme.

Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Kelly Graves of the Criminal Division’s Fraud Section.

1. United States v. Idelia Florat Viamontes, Case No. 15-20432-CR-Ungaro

Idelia Florat Viamontes, 55, of Miami, is charged by Information with conspiracy to defraud the United States and receive health care kickbacks.  The Information alleges that the defendant was a patient recruiter who referred Medicare beneficiaries to multiple Miami-Dade home health care agencies in exchange for bribes and kickbacks.

Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Kelly Graves of the Criminal Division’s Fraud Section.

1. United States v. Khaled Elbeblawy, Case No. 15-20546-CR-Bloom

Khaled Elbeblawy, 38, of Broward County, is charged by Information with one count of conspiracy to commit health care fraud.  The indictment alleges that the defendant was an employee of Willsand Home Health agency and Owner of JEM Home Health Care Inc.  From 2006 through 2011, the defendant submitted and caused the submission of false claims to Medicare for home health services that were not medically necessary and not provided.  The defendant also paid kickbacks to patient recruiters in return for referring Medicare beneficiaries to Willsand and JEM.  As a result of the submission of false claims, Medicare made payments in the approximate amount of $37 million.       

Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorneys Lisa H. Miller and Assistant Chief Joseph S. Beemsterboer of the Criminal Division’s Fraud Section.

1. United States v. Jose Ramos, Case No. 15-20435-CR-King

Jose Ramos, 42, of Miami, is charged by indictment with health care fraud.  The indictment alleges that Ramos was the owner of Garcia Pharmacy, located in Miami-Dade County. The indictment further alleges Ramos used Garcia Pharmacy to submit claims to Medicare Part D drug plan sponsors for purportedly providing prescription drugs to Medicare beneficiaries when in fact, the beneficiaries were not prescribed and did not receive the medication. 

Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Shubhra Shivpuri of the Criminal Division’s Fraud Section.

1. United States v. Evelio Fernandez Penaranda, Case No. 15-20399-CR-Moore

Evelio Fernandez Penaranda, 47, of Miami, is charged by indictment with health care fraud. The indictment alleges that Fernandez Penaranda owned and operated Naranja Pharmacy and that from approximately May of 2013 until March of 2014, the defendant used the pharmacy to submit claims for prescription drugs to Medicare Part D and other Medicare Drug Sponsors, which were unnecessary, not prescribed and not provided.

Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Shubhra Shivpuri of the Criminal Division’s Fraud Section.

1. United States v. James Banner, Case No. 15-20408-CR-Martinez

James Banner, 47, of Miami, is charged by indictment with conspiracy to defraud the United States and pay and receive health care kickbacks. The indictment alleges that Banner, who owned and operated Oracle Diagnostic Laboratories, had Oracle perform drug tests at several facilities in Southern Florida in exchange for a percentage of Oracle’s billings for these services to Medicare.

Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Nicholas E. Surmacz of the Criminal Division’s Fraud Section.

1. United States v. Tamara Esponda, Case No. 15-20439-CR-Cohn

Tamara Esponda, 47, of Hialeah, is charged by indictment with healthcare fraud.  The indictment alleges that Esponda, owner and operator of Biomax Pharmacy, caused the pharmacy to bill Medicare Part D drug plan sponsors for prescription drugs that it never dispensed, and never purchased from wholesalers.  The indictment alleges that the estimated loss to the Medicare program as a result of Esponda’s actions is approximately $1,582,976 million.

Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Timothy Loper of the Criminal Division’s Fraud Section.

1. United States v. Tomas Garcia Torres, Case No. 15-20346-CR-Lenard

Tomas Garcia Torres, 44, of Hialeah, is charged by indictment with healthcare fraud.  The indictment alleges that Torres, owner and operator of San Nicolas Pharmacy caused the pharmacy to bill Medicare Part D drug plan sponsors for prescribing drugs that it never dispensed and never purchased. The indictment alleges that the estimated loss to the Medicare program as a result of Torres’ actions is approximately $1,680,127 million.

Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Timothy Loper of the Criminal Division’s Fraud Section.

1. United States v. Raynel Soto-Rivera, Case No. 15-2740-mj-CMM

Raynel Soto-Rivera, age 39, of Hialeah, is charged by complaint with money laundering.  According to allegations contained in the complaint, principals of Gold Care Home Health Services caused the submission of fraudulent claims to Medicare seeking payment for home health services that were not legitimately prescribed or provided.  The complaint alleges that Medicare paid over $2.4 million to Gold Care Home Health Services based on these fraudulent claims.  The complaint further alleges that Soto-Rivera assisted with laundering $50,000 in fraud proceeds he received from Gold Care Home Health Services.

Mr. Ferrer commended the investigation efforts of the FBI, HHS-OIG, and DHS-HSI. This case is being prosecuted by DOJ Attorney Christopher Hunter of the Criminal Division’s Fraud Section.

1. United States v. Gustavo Castillo, Case No. 15-2783-CMM-Torres

Gustavo Castillo, 42, of Hialeah, is charged by complaint with laundering the proceeds of a conspiracy that attempted to defraud Medicare of almost $24 million by submitting false claims for durable medical equipment.  The complaint alleges that as a result of the fraudulent conspiracy Medicare paid approximately $3.5 million.  The complaint further alleges that the defendant owned and operated Castillo Transportation Services, which received approximately $140,000 from the members of the Medicare conspiracy.           

Mr. Ferrer commended the investigation efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Timothy Loper of the Criminal Division’s Fraud Section.

1. United States v. Jorge Moreno and Luis Antony Rivera, Case No. 15-2806-mj-Torres               

Jorge Moreno, 50, of Tampa, and Luis Antony Rivera, 50, of Punta Gorda, are charged by complaint prescription drug diversion, by selling prescription drugs, with the intent to defraud and mislead, not as a wholesale distributor, and without transaction history, transaction information, and transaction statements as required by Title 21, United States Code, Section 360eee-1(c)(1)(A)(iii), in violation of Title 21, United States Code Sections 331(t) and 333(a)(2).  The complaint alleges that between April 6, 2015, and June 15, 2015, the defendants and their co-conspirators improperly sold diverted prescription drugs to undercover agents on three separate occasions during buy operations recorded and controlled by law enforcement.  The complaint alleges that the drugs sold on these three occasions were worth, in the aggregate, approximately $200,000.

Mr. Ferrer commended the investigative efforts of the FDA-OCI and HHS-OIG.This case is being prosecuted by Assistant U.S. Attorney James Hayes.

1. United States v. Miriam Valdez, Case No. 15-2833-mj-JG               

Miriam Valdez, 62, of Miami, is charged by complaint with prescription drug diversion, by selling prescription drugs, with the intent to defraud and mislead, not as a wholesale distributor, and without transaction history, transaction information, and transaction statements as required by Title 21, United States Code, Section 360eee-1(c)(1)(A)(iii), in violation of Title 21, United States Code Sections 331(t) and 333(a)(2).  The complaint alleges that on June 16, 2015, the defendant and her co-conspirator improperly sold diverted prescription drugs during a recorded law enforcement operation.  The complaint alleges that the drugs sold on these three occasions were worth, in the aggregate, approximately $100,000.

Mr. Ferrer commended the investigative efforts of the FDA-OCI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney James Hayes.

1. United States v. Indira Martell, Case No. 15-2805-mj-TORRES

Indira Martell, 48, of Miami, an owner of Martell Pharmacy, is charged by complaint with health care fraud.  The complaint alleges that the defendant and her accomplices submitted claims to Medicare and Medicare Part D drug plan sponsors and to Medicaid that falsely and fraudulently represented that prescription drugs were medically necessary, prescribed by a doctor and actually provided to Medicare beneficiaries when, in fact, the drugs were not medically necessary and were not provided.  As a result of these false and fraudulent claims, Medicare Part D drug plan sponsors and Medicaid made approximately $4.9 million dollars in overpayments to Martell Pharmacy.

Mr. Ferrer commended the investigative efforts of HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney James Hayes.

If convicted of a charged offense, a defendant faces a possible maximum statutory sentence of five years in prison for conspiracy to defraud the United States by paying and receiving health care kickbacks, in violation of Title 18, United States Code, Section 371; five years in prison for payment and receipt of kickbacks in connection with a federal health care program, in violation of Title 42, United States Code, Section 1320a; twenty years in prison for mail or wire fraud, in violation of Title 18, United States Code, Section 1341; ten years in prison for health care fraud, in violation of Title 18, United States Code, Section 1347; twenty years for conspiracy to commit health care fraud and wire fraud, in violation of Title 18, United States Code, Section 1349; twenty years for money laundering or conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956; and two years in prison consecutive to any other term for aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.

The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.  Since their inception in March 2007, Strike Force operations in nine locations have charged over 2,300 defendants who collectively have falsely billed the Medicare program for over $7 billion.

Including today’s enforcement actions, nearly 900 individuals have been charged in national takedown operations, which have involved more than $2.5 billion in fraudulent billings.  Today’s announcement marks the first time that districts outside of Strike Force locations have participated in a national takedown and accounted for 82 defendants charged in the takedown.

The cases announced today are being prosecuted and investigated by Medicare Fraud Strike Force teams from the Fraud Section of the Justice Department’s Criminal Division and from the U.S. Attorney’s Offices for the Southern District of Florida, Eastern District of Michigan, Eastern District of New York, Southern District of Texas, Central District of California, Eastern District of Louisiana, Northern District of Texas, Northern District of Illinois and the Middle District of Florida; and agents from the FBI, HHS-OIG, OPM, and state Medicaid Fraud Control Units (MFCU).

In addition to the Strike Force, today’s enforcement actions include cases brought by the U.S. Attorney’s Offices for the Southern District of Illinois, Northern District of Ohio, Western District of Pennsylvania, Western District of Kentucky, Southern District of New York, Alaska and the Southern District of Georgia.

A complaint, information or indictment is merely a charge, and defendants are presumed innocent until proven guilty.

To learn more about HEAT, go to: www.stopmedicarefraud.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

Today, the Justice Department announced that a grand jury in the Southern District of Florida charged Miami Dade Police Department (MDPD) Detective William Kostopoulos, 47, with using his law enforcement authority to violate motorists’ civil rights.

The indictment charges Kostopoulos with making traffic stops of three motorists in order to steal their money and property, in violation of the motorists’ rights under the Fourth Amendment of the U.S. Constitution to be free from unreasonable seizures of their property.  The indictment also charges Kostopoulos with making misleading statements in order to prevent the communication of information about his alleged crimes to federal law enforcement officers.

This case is being investigated by the Federal Bureau of Investigation (FBI), with assistance from the Homestead, Florida, Police Department.  The matter is being prosecuted by Assistant U.S. Attorney Tonya Long of the Southern District of Florida, Special Litigation Counsel Gerard Hogan and Trial Attorney Samantha Trepel of the Civil Rights Division.

An indictment is a formal accusation of criminal conduct, not evidence of guilt.  The defendant is presumed innocent unless proven guilty.

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Tracy Dunn, Assistant Director, NOAA Fisheries Office of Law Enforcement, Sean Morton, Superintendent of the Florida Keys National Marine Sanctuary (FKNMS), and David Pharo, Resident Agent in Charge U.S. Fish & Wildlife Service (FWS), Miami, announced that Charles Veach, 39, of Coppitt Key, Ryan Veach, 41, formerly of Bay Point, and Tyson Veach, 36, of Stock Island, were sentenced yesterday before Senior U.S. District Judge James Lawrence King.

Charles Veach, Ryan Veach, and Tyson Veach were each sentenced to serve a term of imprisonment of six months, followed by a one year period of supervised release.  Additionally, the Court ordered the forfeiture the fishing vessel used in the offense, including its engines, tackle, and appurtenances as instrumentalities of the crimes.  Each of the three defendants was also sentenced to pay a $25,000 fine.

Each defendant was sentenced based on their prior guilty pleas to the offense of knowingly transporting, selling, receiving, acquiring, and purchasing lobster violation of the laws and regulations of the State of Florida, in violation of Title 16, United States Code, Sections 3372(a)(2)(A), and 3373(d)(2) and Title 18, United States Code, Section 2.  Additionally, the corporate entity operated by the defendants, Super Grouper, Inc., was sentenced based on its previous conviction for knowingly engaging and attempting to engage in conduct that involved the offer, sale and intent to purchase spiny lobster in interstate commerce in violation of the laws and regulations of the State of Florida, specifically, Florida Administrative Code, Sections 68B-24.006(10), all in violation of Title 16, United States Code, Sections 3372(a)(2)(A), 3372(a)(4), and 3373(d)(1)(B), and Title 18, United States Code, Section 2.                  

According to court documents and information, Charles Veach was the President and Director of Super Grouper, Inc., and the company was the registered owner of the fishing vessel, the “SUPER GROUPER.”

On August 10, 2009, Charles and Ryan Veach operated the vessel and harvested lobster in the FKNMS. During that voyage, aircraft operated by the Florida Fish & Wildlife Conservation Commission (FWCC) videotaped their diving activities.  NOAA Special Agents documented the vessel return to Charles Veach’s home, where a significant amount of spiny lobsters were unloaded and subsequently sold to a wholesale dealer in Key West.

On August 15, 2014, the Super Grouper, operated by Charles and Tyson Veach, was located in the FKNMS by Customs and Border Protection (CBP) aircraft.  FWS agents subsequently documented multiple locations where a diver deployed from the Super Grouper and CBP video captured spiny lobster harvesting activities on board the Super Grouper.  NOAA Special Agents later witnessed the landing and sale of a part of the harvest at Stock Island to a wholesale dealer.  An additional sale was made to a Key West dealer.

On August 19, 2014, NOAA Special Agents observed Charles and Tyson Veach aboard the Super Grouper harvesting lobsters in the FKNMS.  During that trip, CBP documented multiple locations at which Tyson Veach engaged in diving activities.   A later survey of the locations by the FWS Region 4 Dive Team verified the presence of illegal “casitas,” or artificial habitats, at the sites.  Charles and Tyson Veach later landed the vessel and sold the spiny lobsters at a wholesaler dealer in Stock Island.

Creating or harvesting from “casitas,” or artificial habitat, is illegal under state and federal law.  As part of their agreement to cooperate, the defendants surrendered a list of all their illegal harvesting sites to the Government, and were required to remove all the sites at their own expense from federal and State waters, prior to sentencing.  The defendants were also required to surrender their various lobster and dive endorsements to the State of Florida.

Mr. Ferrer commended the joint investigative efforts of the Special Agents of the NOAA Office of Law Enforcement, and the FWS who led the long-term investigation into the illegal harvesting and sale of spiny lobster known as Operation Quick Peek.  Mr. Ferrer also thanked Customs and Border Protection Office of Air & Marine, the FWCC, the crew of the Patrol Vessel Peter Gladding, and the FWS Region 4 Dive Team who also assisted in the investigative effort.  This case was prosecuted by Assistant U.S. Attorneys Thomas Watts-FitzGerald and Antonio Barnes.

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

Michael Childs, 39, and Charles Lovett, 26, both of Opa-Locka, were sentenced by U.S. District Court Judge Joan A. Lenard to consecutive terms of imprisonment totaling 480 months and 141 months respectively, for committing multiple armed robberies.

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), made the announcement.

According to statements made and documents filed in court, Childs and Lovett were charged with committing a series of armed robberies of commercial establishments in late 2013 and early 2014, across Miami-Dade and Broward Counties, including robberies in West Park, Miami Gardens, Opa-Locka, and the City of Miami.  Both Childs and Lovett pled guilty to committing multiple armed robberies. Childs also admitted that, in January 2014, during the course of two separate robberies, he used a firearm to shoot at customers and employees inside Opa-Locka and Liberty City convenience stores.  Childs, who had previously been convicted of committing a robbery in Pennsylvania, was identified through a forensic examination of fingerprints he left during the course of a robbery at the Liberty City convenience store.

Mr. Ferrer commended the investigative efforts of members of the Violence Reduction Partnership, including ATF, Miami-Dade Police Department (MDPD), the City of Miami Police Department, Opa-Locka Police Department, Miami Gardens Police Department, Broward Sheriff’s Office, and the Hallandale Beach Police Department.  The cases were prosecuted by Assistant U.S. Attorneys Olivia S. Choe and Seth M. Schlessinger.

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

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 businessman pled guilty for participating in a four million dollar commodities fraud scheme.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, and Drew Breakspear, Commissioner, Florida Office of Financial Regulation (OFR), made the announcement.

Jeffrey Schuler, 54 of Boynton Beach, Florida pled guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343.  Sentencing for the defendant is scheduled for August 25, 2015, at 1:15 p.m., before U.S. District Judge William A. Dimitrouleas.  At sentencing, the defendant faces a maximum term of imprisonment of 20 years.

According to court records, including the factual proffer, in or around early 2010, Schuler co-founded Liberty International Financial Services (“Liberty”) in Fort Lauderdale with Christopher Anzalone, who was charged separately in Case No. 14-20737-CR-FAM.  Liberty employed brokers that solicited investors throughout the United States to make purchases of precious metals, such as gold, silver, or palladium.  Liberty brokers represented to investors that investors’ monies would be used for the purchase of precious metals in silver, gold, and palladium.  Based on representations made by brokers, prospective investors provided funds to Liberty for precious metals investments. 

The court records further indicate that the defendant had responsibility at Liberty for executing precious metal trades.  The defendant falsely and fraudulently represented to Liberty brokers that he was actually making precious metals trades for investors.  In reality, from September 2010 to December 2011, the defendant executed almost no trades of precious metals.  During this period, Liberty received approximately $4 million from investors and spent less than $200,000 in precious metals related trades.  Instead, the money was used to pay old investors, to pay the defendant a substantial income, and to pay other Liberty brokers and personnel.

Anzalone previously pled guilty to one count of conspiracy to commit wire and mail fraud, in violation of Title 18, United States Code, Section 1349 and was sentenced to 15 years in prison on March 27, 2015.

Mr. Ferrer commended the investigative efforts of the FBI, USPIS, and OFR.  The 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.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Miami Region, announced that Donald C. Proctor, Jr., M.D., a Mohs surgeon and facial plastic surgeon practicing in Vero Beach, Florida, and Grove Place Surgery Center, LLC, an ambulatory surgical center managed by Dr. Proctor, have agreed to pay $4 million to resolve allegations that they violated the False Claims Act by billing Medicare for Mohs surgeries and other surgical procedures that Dr. Proctor either did not perform or were medically unnecessary.  Dr. Proctor also agreed to be excluded from Medicare, Medicaid, and all federally funded health care programs for at least five years.      

“The settlement announced today demonstrates this office’s commitment to aggressively pursue physicians who put their own financial self-interest over a duty to their patients and thereby raise the cost of health care for all of us as patients and taxpayers,” said Wifredo A. Ferrer, United States Attorney for the Southern District of Florida.  “We will not allow physicians to put patients at risk by performing unnecessary procedures, or permit them to make up phantom claims to increase their reimbursements from Medicare.”

“Any time greed replaces medical necessity as the primary factor in performing unnecessary, invasive procedures on Medicare beneficiaries, both patient health and taxpayer funds are compromised,” said Special Agent in Charge Shimon R. Richmond of the U.S. Health and Human Services Office of Inspector General. “Dr. Proctor received a 5-year exclusion from participating in Medicare by placing his patients and the integrity of the Medicare program at risk just to enrich himself.”

The settlement resolves allegations made in a lawsuit filed by Ferdinand F. Becker, M.D., a facial plastic surgeon and former Mohs surgeon who referred patients to Dr. Proctor, and Linda Wildes, who worked as Dr. Proctor’s histology technician for over eight years.  They filed under the qui tam, or “whistleblower,” provisions of the False Claims Act, which permit private parties to sue on behalf of the government and receive a share of any recovery. The act also authorizes the government to intervene in and assume primary responsibility for litigating the lawsuit, as the government has done in this case.  Dr. Becker and Ms. Wildes will receive $920,000.

Based on an extensive investigation, the United States alleged that Dr. Proctor would routinely see patients who had been referred to him with a confirmed skin cancer lesion and falsely inform them that they had additional lesions requiring Mohs surgery, even though the supposed additional lesions had not been confirmed through a biopsy as cancerous or simply did not exist.  Mohs surgery is a specialized and expensive surgical procedure for removing certain types of skin cancers in specific areas of the body, including the face.  The surgery is performed in stages in which the surgeon removes a single layer of tissue and then, after a microscopic evaluation of the excised tumor, performs additional stages, if necessary, until all of the cancer is removed.  The United States further alleged that, solely to increase his Medicare reimbursement, Dr. Proctor would routinely perform three to four stages (or many more in some cases) of Mohs surgery, even though that is far outside the norm and was often not necessary.  This required patients to remain at Grove Place Surgery Center for prolonged periods of time and be subjected to additional surgeries they did not need.

Finally, based on its investigation, the United States alleged that Dr. Proctor was also defrauding Medicare by routinely billing for unnecessary or nonexistent surgeries to close up the wounds allegedly left by the Mohs surgeries. These reconstructions, called adjacent tissue transfers, are complicated and often time-consuming procedures physicians sometimes use to close a defect resulting from the removal of a lesion on a patient’s skin.  Dr. Proctor billed Medicare for these procedures in connection with virtually every Mohs surgery he claimed to have performed, even though, the United States alleged, it would have been physically impossible in most cases for him to have performed them.

The settlement was the result of a coordinated effort by the United States Attorney’s Office for the Southern District of Florida, HHS-OIG, Federal Bureau of Investigation (FBI), and Defense Criminal Investigative Service.  The case was investigated and the settlement negotiated by Assistant U.S. Attorney Susan Torres.  The exclusion agreement was negotiated by OIG Senior Counsel Karen Glassman.

The case is captioned United States ex rel. Becker & Wildes v. Donald C. Proctor, Jr., M.D. et al., No. 11-14214-Civ-Martinez (S.D. Fla.).  The claims asserted against Dr. Proctor and Grove Place Surgery Center are merely allegations.  There has been no determination of liability in this matter.

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

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 Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), announced that Hebrew Homes Health Network, Inc., its operating subsidiaries and affiliates, and William Zubkoff, the former president and executive director of Hebrew Homes Health Network, Inc. (collectively Hebrew Homes), have agreed to pay $17 million to resolve allegations that Hebrew Homes violated the False Claims Act by improperly paying doctors for referrals of Medicare patients requiring skilled nursing care.  Hebrew Homes provided skilled nursing services at seven rehabilitation and skilled nursing facilities in Miami-Dade County, Florida.  This is the largest settlement of alleged violations of the Anti-Kickback Statute paid by skilled nursing facilities in the United States.

“The record settlement announced today demonstrates this Office’s commitment to rooting out all forms of illegal kickback schemes,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida.  “And that is certainly true in the context of nursing homes, where the Department of Justice will not allow healthcare decisions for elderly Medicare patients to be influenced by kickback payments to physicians. The integrity of our public health care program requires that such decisions be based on quality of care.”       

From 2006 through 2013, Hebrew Homes allegedly operated a sophisticated kickback scheme, in which they hired numerous physicians ostensibly as medical directors pursuant to contracts that specified numerous job duties and hourly requirements.  The various facilities had several such medical directors under contract at any given time, paying each several thousand dollars monthly.  The United States alleged that in reality these were ghost positions, and that most of the medical directors were required to perform few, if any, of their contracted job duties.  Instead, they were allegedly paid for their patient referrals to the Hebrew Homes facilities, which increased exponentially once the medical directors were put on the payroll.

“Illegal inducements paid to physicians in exchange for patient referrals will not be tolerated,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division.  “Medicare funds should be used to provide care for our senior citizens, not as an inducement to physicians to refer business.”

“Hebrew Homes’ intricate kickback scheme in this record-setting case threatened the impartiality of physician referrals, the financial integrity of Medicare, and the public’s trust in the health care system,” said Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Our agency will continue to investigate nursing homes and other health care providers that seek to illegally boost profits at the expense of federal health care programs.”

The Anti-Kickback Statute is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives.  The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federal health care programs, including Medicare.

“Illegal kickbacks undermine the integrity of the Medicare system by putting profits in front of patient welfare,” said Special Agent in Charge George L. Piro of the FBI Miami Field Office.  “The investigators who helped unravel this intricate scam are to be commended for their diligence and commitment to root out fraud within our health care system.”

As part of the settlement, Mr. Zubkoff has agreed to resign as Hebrew Homes’ Executive Director and to no longer be an employee of the company.  Also, as part of the settlement announced today, Hebrew Homes has entered into a five-year Corporate Integrity Agreement with HHS-OIG, and has agreed to change its policies on hiring and maintaining medical directors.

The settlement announced today resolves allegations made in a lawsuit filed by Stephen Beaujon, a former CFO of Hebrew Homes, under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery.  Mr. Beaujon will receive $4,250,000.

This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services.  The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.  One of the most powerful tools in this effort is the False Claims Act.  Since January 2009, the Justice Department has recovered a total of more than $24.3 billion through False Claims Act cases, with more than $15.3 billion of that amount recovered in cases involving fraud against federal health care programs.

The settlement was the result of a coordinated effort by the U.S. Attorney’s Office for the Southern District of Florida and the Civil Division’s Commercial Litigation Branch.  Mr. Ferrer commended the joint investigation team, which included special agents with the FBI and HHS-OIG, for their diligent work on this matter.  The case was investigated and the settlement negotiated by Assistant U.S. Attorney Franklin Monsour and Department of Justice Trial Attorneys Elizabeth Young and Adam Schwartz.

The case is captioned United States ex rel. Beaujon v. Hebrew Homes Health Network, Inc., et al., Case No. 12-20951 CIV (S.D. Fla.).  The claims resolved by the settlement are allegations only and there has been no determination of liability.

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 additional defendants pled guilty in a stolen identity tax refund fraud scheme.

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

Zenova Abrahams, 44 of Naples, and Ronald Reed, 59 of Bartow, each pled guilty to one count of conspiracy to traffic in unauthorized access devices, in violation of Title 18, United States Code, Section 1029(b)(2), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A . On May 14, 2015, co-defendant Joseph Houston, 43 of Naples, pled guilty to the same two charges.

According to court documents, defendants Houston and Abrahams met with a Confidential Informant (CI) in the Southern District of Florida, and described a business arrangement where they would obtain Personally Identifiable Information (PII) from their sources (later identified as co-defendant Reed and another individual), and provide that PII to the CI. The CI purportedly would file federal income tax returns using the PII, and receive refunds in the form of Refund Anticipation Loan checks or Treasury checks. Houston and Abrahams would then take and cash those checks. The Cl was to earn 30% of the profits. Houston and Abrahams would receive the remaining 70%, and pay a percentage of that to their sources for providing the PII.

After the CI provided a total of $5,000 in up-front payments to obtain the PII, Houston and Abrahams provided the CI with lists with 500+ identities containing PII that were to be used in the tax fraud scheme. When Reed met with Houston and attempted to pick up proceeds from the allegedly filed fraudulent tax returns, law enforcement approached Reed. Reed provided information regarding the source of the PII. Through the source’s employment, he/she had access to client files containing PII. Reed explained that many of the 500+ names, dates of birth, and social security numbers were documented in the source’s handwriting. Reed also indicated that the source gave him access to the employer’s files, which he used to prepare a portion of the lists provide to the CI.

Sentencing for defendant Houston is scheduled for July 24, 2015, and sentencing for defendants Abrahams and Reed are scheduled for August 20, 2015, all before U.S. District Court Judge William J. Zloch.  At sentencing, the defendants each face a maximum of five years in prison for the conspiracy charge, and a mandatory term of two years in prison, consecutive to any other term in prison, for the aggravated identity theft charge.

Mr. Ferrer commended the investigative efforts of the FBI and IRS-CI.  This 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 federal jury returned unanimous verdicts of guilty today against a former master deputy sheriff, announced U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Alysa D. Erichs of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Miami Field Division and Sheriff Kenneth J. Mascara of the St. Lucie County, Florida, Sheriff’s Office.

Cameron Dean Bates, 49, of Port St. Lucie, Florida, was found guilty of receiving, distributing and possessing child pornography.  U.S. District Court Chief Judge K. Michael Moore of the Southern District of Florida presided over the four-day trial and set sentencing for Sept. 15, 2015.

According to testimony at trial, in March 2011, St. Lucie County Sheriff’s Office detectives and members of the South Florida Internet Crimes Against Children Task Force (ICAC) began an internet investigation using peer-to-peer (P2P) software.  During this investigation, law enforcement found that between December 2010 and June 2012, several internet protocol (IP) addresses linked to Bates in both St. Lucie County and Palm Beach County were used to download and share child pornography files.  Detectives reviewed a number of the files associated with the IP addresses and confirmed that the files contained child pornography.

On June 29, 2012, a search warrant was executed at Bates’ residence in Port St. Lucie.  During the search, law enforcement seized a Dell laptop computer from Bates’ car.  An on-sight forensic preview scan of the computer found numerous, non-deleted child pornography images and videos, which included a minor child engaging in sexually explicit conduct.  A full forensic analysis of Bates’ laptop revealed numerous images and videos of child pornography, along with adult pornography personally produced by Bates.

At trial, the government also introduced evidence recovered during a search of Bates’ residence, including a Dell laptop computer, which contained numerous, non-deleted, child pornography images and videos.  At least one image depicted a prepubescent child under the age of 12.    

This case was investigated by the St. Lucie County Sheriff’s Office, the South Florida ICAC and ICE-HSI, with assistance from the Palm Beach County, Florida, Sheriff’s Office.

The case is being prosecuted by Trial Attorney Reginald E. Jones of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Ben Widlanski of the Southern District of Florida.

This case was brought as part of Project Safe Childhood, a nationwide initiative 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.

Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, John Carlin, Assistant Attorney General for National Security, Stacia A. Hylton, Director of the U.S. Marshals Service, George L. Piro, Special Agent in Charge, FBI, Miami Field Office and members of the South Florida Joint Terrorism Task Force (JTTF) announce today’s sentencing of Raees Alam Qazi, a 22-year-old naturalized U.S. citizen from Pakistan, and his brother, Sheheryar Alam Qazi, a 32-year-old naturalized U.S. citizen from Pakistan.

United States District Court Judge Beth Bloom sentenced Raees Alam Qazi to 35 years in prison, to be followed by 10 years of supervised release and Sheheryar Alam Qazi to 20 years in prison, followed by five years of supervised release.

On March 12, 2015, Raees Alam Qazi plead guilty to one count of conspiring to provide material support and resources to terrorists in preparation for the use of a weapon of mass destruction, one count of attempting to provide material support to a designated foreign terrorist organization, and one count of conspiring to assault a federal employee.  Sherheyar Alam Qazi plead guilty to one count of conspiring to provide material support and resources to terrorists  in preparation for the use of a weapon of mass destruction and one count of conspiring to assault a federal employee.

The brothers acknowledged during the plea hearing that Raees Alam Qazi, the younger brother, was going to initiate an attack using a weapon of mass destruction in New York City and that he had been financially and emotionally supported by his older brother, Sheheryar Alam Qazi, who encouraged him to launch the attack.  Among other things, the brothers acknowledged that Sheheryar Alam Qazi had encouraged his younger brother to travel from Pakistan to Afghanistan in 2011 and that when Raees Alam Qazi had been unsuccessful in his attempt to enter Afghanistan, Raees Alam Qazi returned to his older brother.  The brothers acknowledged that Raees Alam Qazi had been trying to reach the “guys from Yemen” (Al Qa’ida in the Arabian Peninsula (“AQAP”)/Al Qa’ida) on the internet and that they told him not to come to Afghanistan because there were enough people but instead to do something in the United States.  Raees Alam Qazi admitted that he had taken “hints” from an AQAP/Al Qa’ida online publication entitled Inspire Magazine, including building an explosive device using Christmas tree light bulbs.  Raees Alam Qazi also conceded that he had used information in Inspire to communicate with AQAP/Al-Qa’ida and that his communications with Al Qa’ida dealt with his desires to launch an attack in the United States.  The brothers acknowledged that Raees Alam Qazi travelled to New York in November 2012 to conduct an attack with a weapon of mass destruction while Sheheryar Alam Qazi actively misled friends and family members about Raees Alam Qazi’s true whereabouts and activities.  The brothers acknowledged that Raees Alam Qazi called Sheheryar Alam Qazi from New York to notify his brother that he had not been successful in his task. Sheheryar Alam Qazi encouraged Raees Alam Qazi to return to “practice over here [Florida] then you may return [to New York] you know…. I will give you complete freedom.”

The brothers additionally admitted their participation in a conspiracy to assault federal officers.  They conceded that on April 8, 2014, while being moved within the United States Courthouse complex in Miami, Florida, they simultaneously punched two deputy United States Marshals in the face and struggled with them and attempted to use potentially lethal force on them.  Raees Alam Qazi and Sheheryar Alam Qazi acknowledged that while struggling with the Deputy United States Marshals, the defendants simultaneously exclaimed “Allahu Akbar,” an Arabic exhortation meaning “God is Great.”

“Protecting the homeland and our national security remains our number one priority.  Today’s sentences demonstrate this Office’s unwavering commitment to work with our law enforcement partners to combat all forms of terrorism by proactively finding and prosecuting those who actively seek to kill or harm innocent citizens in the name of violent extremism,” said U.S. Attorney Ferrer.

“With the sentences handed down today, Raees Qazi and his brother Sheheryar Qazi are being held accountable for their roles in a plot to conduct a terrorist attack using a weapon of mass destruction in New York City and their assault on two federal officers during their pretrial detention,” said Assistant Attorney General Carlin.  “This case highlights our commitment to pursue any individuals who would seek to conduct an attack on U.S. soil or to injure law enforcement officials who risk their lives to protect us.  I want to thank the U.S. Marshals, agents, analysts, and prosecutors who are responsible for this successful result.”

“Today’s sentencing of the Qazi brothers represents the final chapter for two men who wished to bring harm and mass destruction to Americans on U.S. soil,” said U.S. Marshals Service Director Stacia A. Hylton.  “Their sentences demonstrate that justice prevailed.  I am proud of our brave men and women who participated in this process, and thank the prosecutors who worked tirelessly for this successful conclusion.”

“The threat of a terrorist attack against innocent Americans is real as demonstrated by the actions of these two brothers,” said George L. Piro, Special Agent in Charge, FBI Miami.  “The fact that their terrorist aspirations were cut short didn’t stop Raees and Sheheryar Qazi from attempting to use potentially lethal force against two U.S. Marshals while they were in custody.  This case highlights outstanding work and team effort of our South Florida Joint Terrorism Task Force.”

The case was investigated by the FBI’s South Florida Joint Terrorism Task Force.  The case is being prosecuted by Assistant U.S. Attorneys Karen E. Gilbert and Adam S. Fels of the U.S. Attorney’s Office for the Southern District of Florida, and Jennifer E. Levy, Trial Attorney, Counterterrorism Section of the Justice Department’s National Security Division.

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

A Broward resident was sentenced to 34 months in prison, followed by three years of supervised release, for her participation in an identity theft fraud scheme involving the personally identifiable information (PII) of magazine subscription customers.

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

Eartha Ann Worthy, 29, previously pled guilty to one count of conspiracy to commit access device fraud and one count of aggravated identity theft.

According to court documents, law enforcement agents executed a search warrant at a residence and found the PII belonging to 36 individuals, including their names, addresses, credit card information, dates of birth or social security numbers, on order sheets (taken from a direct call telemarketing center) related to magazine subscriptions.  The owner of the residence explained that Worthy was employed as a supervisor with a company that sells magazine subscriptions and that Worthy was the source of the PII.

Worthy admitted to providing information to the residence’s owner and stated that she knew that the information she was providing was being used for fraudulent purposes.  Worthy stated that the residence’s owner used the stolen credit card information to pay bills and make small purchases.  Worthy also provided PII to another individual, who was involved in a tax refund fraud scheme.

Mr. Ferrer commended the investigative efforts of 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.

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

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

Jeffrey Garcia, 42, and Jose Rolando Arrojo, 41, of Miami, pled guilty to conspiring to make and accept excessive contributions to the 2010 Roly Arrojo for Congress Committee, in violation of the Federal Election Campaign Act of 1971.  In 2010, the Federal Election Campaign Act of 1971, as amended, established a $2,400 per election limit on contributions from any individual to a federal candidates’ authorized campaign committee. Therefore, because the contributions did not exceed the permissible amount by more than $25,000, Garcia and Arrojo face a maximum possible sentence of one year in prison.  Sentencing is scheduled for Garcia and Arrojo on August 27, 2015 at 1:30 p.m. and 2:00 p.m., respectively, before United States District Judge Jose E. Martinez.

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

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

A 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.

David Robert Sutton, 55, who has connections to Wisconsin and New Jersey, pled guilty today to charges of possessing, receiving, and importing unregistered machine guns, in violation of Title 26, United States Code, Sections 5861(d), (j), and (k). 

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

Sentencing for Sutton is scheduled for August 18, 2015 before United States District Judge Robin L. Rosenberg in Fort Pierce.  At sentencing, Sutton faces a maximum statutory sentence of ten years in prison on each of the three counts.

According to statements made in court and documents filed in the case, Sutton is a collector of firearms and is familiar with the requirements for registration and tax payment in order to lawfully possess certain types of firearms.  This includes knowledge of automatic firearms, which are classified as machine guns and are therefore subject to the National Firearms Act, codified at Title 26 of the United States Code.  The statute treats parts of firearms the same as fully assembled firearms. In September 2014, Sutton contacted a German friend by email and asked the individual to purchase him three lower receivers (the part of the firearm frame, with the trigger grip and magazine well,  that houses the operating parts such as the bolt assembly) for Colt M16A1 automatic rifles which were advertised for sale in a website link.  When the German asked if the purchase of the receivers was illegal, Sutton dismissed his concerns and the German proceeded to buy and ship the firearms to Sutton in the United States.  Sutton directed the German to mislabel the package as “aluminum castings for use on boat,” falsely identify the United States of America as the country of origin, and address the delivery to the captain of a boat.  The investigation revealed that Sutton was living on the addressee boat that was docked at a marina in Martin County, Florida.  Sutton further advised his German contact “not to remember” to whom he sent the package, or otherwise respond to inquiries if law enforcement officers should ask about the firearms.

U.S. Customs and Border Protection Officer discovered the firearms upon inspection of the package when it arrived in the United States and transferred the package to HSI agents for investigation.  A joint ATF and HSI investigation into the ownership of the addressee boat led agents to identify Sutton as the intended recipient of the package.  When Sutton returned to the marina he contacted the management office to inquire about his package.  An undercover ATF agent, acting as a marina employee, directed Sutton to the package.  After Sutton took possession of the package and returned to his boat, he and a companion were stopped by HSI and ATF Special Agents and members of the Martin County Sheriff’s Office marine unit.  Following consent by Sutton, the agents searched the boat and found the package containing the three lower receivers, that had been opened and reclosed by Sutton.  Sutton admitted to ordering the firearms and acknowledged that they were not registered as required by federal law.

Mr. Ferrer commended the investigative efforts of ATF, HSI and the Martin County Sheriff’s Office.  The case is being prosecuted by Assistant U.S. Attorney Theodore 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 College student was sentenced to 5 years in prison, followed by three years of supervised release, and was ordered to pay restitution of $63,419.30 for his involvement in a stolen identity tax refund fraud scheme involving student financial services accounts.

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

Ronald Dumond, Jr., a/k/a “Swaggabankz,” a/k/a “Carltin Swagga Banks,” a/k/a “Junior,” 23, of Miami, Florida previously pled guilty to one count of conspiracy to commit an offense against the United States, in violation of Title 18, United States Code, Section 371, one count of theft of government money, in violation of Title 18, United States Code, Section 641, and one count of aggravated identity theft, in violation of Title 18, United State Code, Section 1028A(a)(1).

Court documents state that from August 8, 2011 to September 23, 2013, Dumond, Jr. participated in a tax fraud scheme with Bianca Noel, 22, of Miami, Florida, Mistie Faustin, 23, of Miami, Florida, and others where the defendants received fraudulently obtained tax refunds in their personal Higher One, Inc. (HOI) accounts.  Higher One provided financial services to colleges and universities throughout the United States, including Miami Dade College in Florida.

Dumond, Jr. recruited Noel, Faustin, and other MDC students to participate in the tax fraud scheme by offering them a chance to make money if they would allow stolen tax refunds to be deposited into their HOI accounts. Noel, Faustin and other MDC students agreed and provided Dumond, Jr. with their HOI account numbers and log-in information.

Dumond, Jr. submitted to the U.S. Department of Treasury 35 fraudulent tax returns claiming $186,223 in tax refunds and directed these refunds to be deposited into Noel's HOI account; submitted 26 fraudulent tax returns claiming $73,735 in tax refunds and directed these refunds to be deposited into Faustin's HOI account; and submitted 8 fraudulent tax returns claiming $27,602 in tax refunds and directed these refunds to be deposited into Dumond, Jr.’s HOI account. From April 1, 2012 through May 30, 2012, Dumond, Jr.’s HOI account received $3,417.00 in proceeds from stolen tax refunds from other MDC students' HOI accounts. Dumond, Jr. paid Noel, Faustin and other MDC students for allowing their HOI accounts to receive stolen tax refunds.

During a search warrant of Dumond, Jr.'s residence, federal agents found 4,250 names and social security numbers of real people on electronic devices (computers, CDs, and hard drives) and loose leaf papers.  Law enforcement found files on CDs which contained lists of the MDC students and their HOI account information such as Noel and Faustin who participated in the tax fraud scheme. These files also contained lists with the names and social security numbers of victims who had fraudulent tax returns filed using their names and social security numbers and the HOI accounts and other debit cards in which the stolen tax refunds were deposited. IRS-CI determined that the names and social security numbers found were used to file fraudulent tax returns for the tax years 2011, 2012, and 2013.

Co-defendant Noel was sentenced on June 1, 2015 to 30 days in prison, followed by three years of supervised release, and was ordered to pay restitution of $32,586. Noel previously pled guilty to one count of conspiracy to commit an offense against the United States, in violation of Title 18, United States Code, Section 371, and one count of theft of government money, in violation of Title 18, United States Code, Section 641.

Co-defendant Faustin was sentenced on April 14, 2015 to two years of probation and was ordered to pay $20,819 in restitution. Faustin previously pled guilty to theft of government property, in violation of Title 18, United States Code, Sections 641 and 2.

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

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

Keven Aime, 21, of North Miami, Florida, pled guilty yesterday to one count of possession of fifteen or more access devices with the intent to defraud, in violation of Title 18, United States Code, Section 1029(a)(3) and 2.

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 Steve Steinberg, Chief, Aventura Police Department, made the announcement.

According to the factual proffer in support of the guilty plea, on August 24, 2012, Aime was taken into custody for driving with a suspended license and possession of marijuana.  A search of the car revealed a notebook containing the personal identifying information of approximately forty-five other people, including names, occupations, dates of birth, and social security numbers.

The personal identifying information in the notebook corresponded to victims of tax refund fraud.  Twenty victims had fraudulent tax returns filed in their names in 2011, and thirty-seven victims had fraudulent tax returns filed in their names in 2012.  The total loss to the Internal Revenue Service was $109,628.

Aime is scheduled to be sentenced on August 26, 2015, at 1:30 p.m., before U.S. District Judge Jose E. Martinez.

Mr. Ferrer commended the investigative efforts of IRS-CI and the Aventura Police Department.  This case is being prosecuted by Assistant U.S. Attorney Tonya R. Long.          

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

Three additional Miami-area residents were recently sentenced to prison terms in connection with violations of the Safe Doses Act, pursuant to provisions under Title 18, United States Code, Section 670, which prohibit theft of “pre-retail” medical products.  A total of eight defendants have been convicted in connection with a cargo theft scheme. 

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, and David W. Bourne, Special Agent in Charge, Food and Drug Administration, Office of Criminal Investigation (FDA-OCI), Miami Field Office, made the announcement.

Jorge Nimer Rolo, 48, Lazaro Martinez, a/k/a “Fat Laz,” 45, and Antonio Ramirez, a/k/a “Tony Bodega,” 54, were recently sentenced to prison terms in connection with a scheme to steal pre-retail medical products, including more than $2.2 million worth of Mucinex cough medicine and $550,000 worth of Similac baby formula, as well as other merchandise. 

According to the indictment and documents filed in court, as part of an organized theft ring, 44 pallets of Similac were stolen by the defendants and their co-conspirators from a distribution site in Fort Worth, Texas, and more than 18,000 cases of Mucinex were pilfered from a tractor-trailer truck in Richland, Mississippi.  These pre-retail medical products, medical products that had not yet been made available for retail purchase by a consumer, were then transported by members of the cargo theft ring to South Florida, stored in various locations, and offered for sale to brokers and retailers in and around Miami-Dade County.  The defendants worked together to sell and distribute the stolen cargo.  The stolen products were originally intended for sale at Wal-Mart and Walgreens stores and other retailers in the Southeastern United States.

Nimer Rolo was a broker who financed a range of stolen cargo in South Florida and elsewhere, including stolen baby formula, computers and electronics, perfume, and women’s lingerie, valued at more than $2.3 million.  Nimer Rolo was sentenced to 108 months imprisonment by U.S. District Judge Joan A. Lenard on May 29, 2015.  Nimer Rolo previously pleaded guilty on March 18, 2015, to one count of conspiracy to receive and sell stolen goods valued at $5,000 or more, involving a pre-retail medical product, as well as one count of money laundering, involving a pre-retail medical product.

Martinez and Ramirez were brokers who obtained stolen product from others and sold portions of the stolen cargo.  Martinez was a co-owner of Tadeo Supermarket in Miami where stolen cargo was sold, and he acted as a buyer and re-seller of stolen cargo with others, including Ramirez.  Ramirez and Martinez pleaded guilty before U.S. District Judge Robert N. Scola on March 3, 2015, to a one count information charging conspiracy to receive and sell stolen goods valued at $5,000 or more.  Ramirez was sentenced by Judge Scola on May 27, 2015, to a total of 36 months imprisonment, including 24 months imprisonment in connection with this case and 12 months imprisonment for a supervised release violation.  Martinez was sentenced to 18 months imprisonment on May 18, 2015.

Previously, Ivan Manuel Valle, 34, of Miami, Daniel Martinez Zamora, 45, of Homestead, Raul Nick Garcia, 52, of Surfside, Ali Saleh, 35 of Miramar, and Jesus Mariano Gutierrez, 51, of Miami, were convicted in connection with this same scheme to steal pre-retail medical products.  Garcia and Zamora were each sentenced to 48 months imprisonment by Judge Lenard on September 22, 2014; Valle was sentenced to 60 months and Gutierrez was sentenced to 30 months, on August 28, 2014; and, Saleh was sentenced to 34 months on September 4, 2014.  The defendants all previously pleaded guilty before Judge Lenard.

The Safe Doses Act, passed by Congress in November, 2012, created a new offense, 18 U.S.C. § 670, which prohibits 1) stealing, or obtaining by fraud or deception, any pre-retail medical product; 2) knowingly and falsely making, altering, forging, or counterfeiting the labeling or documentation of a pre-retail medical product; 3) knowingly possessing or transporting a stolen or fraudulently-obtained pre-retail medical product; and, 4) buying or otherwise obtaining an expired or stolen pre-retail medical product with intent to defraud.  The Act also contains enhanced penalties for money laundering offenses involving the proceeds of violations of the Act.  Products such as baby formula and cold medicine are covered by the Act.

U.S. Attorney Wifredo A. Ferrer stated, “Theft and the illegal sale of pre-retail medical products present a risk to public safety.  The significant sentences that have been handed down by the Courts, against participants in the cargo theft scheme, tell us all that consumer protection is of utmost importance.”

“FDA sets high quality standards for the safety and nutritional quality of infant formulas because these products are consumed during a critical time in a child’s development; once this product is diverted from the protected supply chain, consumers can no longer be assured of its safety or wholesomeness,” said David W. Bourne, Special Agent in Charge, FDA Office of Criminal Investigations’ Miami Field Office. “We will continue to protect the public health by bringing such criminals to justice.”

Mr. Ferrer commended the investigative efforts of the FBI and FDA-OCI, as part of the Miami Major Theft Task Force.  This matter is being prosecuted by Assistant U.S. Attorney Jerrob Duffy.

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 Port St. Lucie resident pled guilty to preparing false tax returns for himself and his clients.

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.

Jean Pedro Jean Baptiste, 55, pled guilty to two counts of filing false tax returns, in violation of Title 26, United States Code, Section 7206(1), and four counts of assisting in filing false tax returns, in violation of Title 26, United States Code, Section 7206(2).

According to court documents, Baptiste was a paid tax return preparer who owned and operated JP and Sons Enterprises in Delray Beach, Florida. For tax years 2008 and 2009, Baptiste prepared individual income tax returns for customers using false income and deduction figures. Baptiste claimed deductions and credits for items that he knew the taxpayers were not entitled to take including, false Schedule C items and false Earned Income Credits, Additional Child Tax Credits, and First Time Home Buyer Credits. Baptiste failed to review the tax returns in detail with his clients and then electronically filed them for the taxpayers.

Baptiste also filed false Form 1040 income tax returns for himself for tax years 2008 and 2009. The 2008 tax return falsely claimed a First Time Home Buyer Credit, and the 2009 tax return falsely claimed an Additional Child Tax Credit, an Earned Income Credit, and falsely stated Schedule C income, gross receipts and sales.  As a result, Baptiste received an inflated and unmerited tax refund payment.

The total loss to the United States is approximately $558,000.

Baptiste is scheduled to be sentenced by U.S. District Court Judge Robin L. Rosenberg on August 18, 2015 at 10:30 a.m.  At sentencing, Baptiste faces a maximum of 3 years in prison per count.

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

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

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

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

At sentencing, which is currently set for August 27, 2015 at 10:00 A.M. before Senior Judge James Lawrence King, Guevara faces a maximum term of 30 years in prison.

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

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

Assistant U.S. Attorneys (AUSA) A. Marie Villafana, Brandy Galler, E.J. Yera, Barbara Martinez, Lisa Rubio, and Cristina Moreno, and former AUSA Roy Altman of the U.S. Attorney’s Office in the Southern District of Florida were one of 160 members of the Department of Justice recognized by Attorney General Loretta Lynch, Deputy Attorney General Sally Quillian Yates, and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 31st Director’s Awards Ceremony today in Washington D.C.

The Southern District of Florida was one of 31 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.

In her prepared remarks, Attorney General Lynch told the awardees, "Our honorees include career executives and supervisors; Assistant U.S. Attorneys and Special Assistant U.S. Attorneys; appellate attorneys and law enforcement officials; administrators, paralegals, and public affairs officers,” said Attorney General Lynch.  “These individuals, and so many others, have faced daunting and sometimes dangerous challenges.  They have dedicated their leadership and their expertise, their time and their energy, to the service of their mission.  And they have remained devoted, at all times, to the high ideals and deeply-held values that animate our country and our cause.”

AUSAs Villafana, Galler and Yera were recognized for their “Superior Performance as an Assistant U.S. Attorney” in the Criminal Division for their work on Operation Sledgehammer.  Operation Sledgehammer was a four-year undercover investigation led by multiple agencies from the Greater Palm Beach Health Care Fraud Task Force that targeted an organized group conducting insurance fraud in Palm Beach and Miami-Dade Counties, Florida.  The investigative team, consisting of both federal and state prosecutors/investigators as well as the National Insurance Crime Bureau, charged 105 subjects.  The federal investigative team prepared thirteen charging instruments in eight federal cases against 57 individuals.  As a result of the investigation, three physicians and a patient recruiter were convicted after trial and over 20 fraudulent therapy clinics were closed.

AUSAs Martinez and Rubio and former AUSA Altman were recognized for their “Superior Performance as an Assistant U.S. Attorney” in the Criminal Division for their work in the case of United States v. Lavont Flanders, Jr. and Emerson Callum, a serial rape and pornography case that spanned five years, involved more than 50 victims, combined the efforts of at least 10 federal and local agencies, and represented the first federal case of its kind in the United States.  Between 2006 and 2011, Flanders, a former police officer, and Callum, a Jamaican-born pornographer, perpetrated an elaborate fraud to lure aspiring models from all across the United States to Miami by promising the victims the opportunity to audition for modeling and acting roles that, it later turned out, never existed.  As part of the fraud, Flanders, using scores of fake social networking profiles and email accounts, recruited the victims to audition for a role with a multi-national company.  Once the victims arrived in Miami, Flanders instructed them to drink alcohol, while he filmed, as part of the audition. Unbeknownst to the women, the drinks were laced with benzodiazepines, sedatives commonly used as date rape drugs.  Once the drugs had taken effect, Flanders drove the victims to Callum’s studio, where Callum would perpetrate a litany of sexual acts on the victims, while Flanders filmed.  The investigation revealed that the defendants had edited, produced, and sold the video-footage of the sexual assaults as pornography, both online and to pornography businesses across the country.  Both defendants were found guilty at trial and sentenced to 13 consecutive terms of life sentences.  Their convictions were affirmed on appeal.

AUSA Moreno, together with AUSAs from the Central District of California and their law enforcement partners from the FBI, Secret Service, and the Armenian Organized Crime Task Force, received an award for “Superior Performance by a Litigative Team” for their extraordinary work handling the largest organized crime prosecution targeting a Eurasian criminal enterprise in DOJ history.  This prosecution targeted the Armenian Power criminal enterprise, a violent and sophisticated organized crime group of international scope directly allied with traditional Armenian-Russian criminal leaders abroad and domestically, and a group that has deep links to the powerful Mexican Mafia prison gang.  The successful prosecution resulted in the conviction of over 100 Armenian Power members and associates for a variety of federal crimes, including racketeering offenses, bank fraud and identity theft offense, public corruption offenses, kidnappings, extortions, firearms offenses, drug-trafficking crimes, illegal gambling, and Medicare.

U.S. Attorney Wifredo A. Ferrer stated, “I applaud the dedicated efforts of the recognized prosecution teams.  Their extraordinary skill, hard work and unwavering commitment to justice ensures that our communities are protected and the offenders are held accountable in a court of law.  I am very proud of their achievements and support of our mission.”

EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.

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.

Dvir Derhy, 46, of Miami-Dade County, Florida, the owner of the Miami Office Center, which leases office space and manages property at a location known as the Flagler Building Downtown, entered a plea of guilty yesterday to one count of bribery.

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

According to the factual proffer in support of his plea of guilty, Derhy owned and operated The Miami Office Center, which leased office space and managed property at, among others, the Flagler Building Downtown located at 223 East Flagler Street in Miami.  The Flagler Building had been cited by the City of Miami Fire Department for violations because it had obstructed means of egress (some of its exits were blocked).

In June 2014, Derhy offered to pay a City of Miami fire inspector and building planner in order to remove the violation citations.  On one such occasion, Derhy attempted to slip money into the fire inspector’s shirt pocket and stated that it was for a “donation to the City.”

On July 18, 2014, law enforcement agents conducted a recorded undercover operation at the Flagler Building in which one of them assumed the identity of a fire inspector and met with Derhy.  A City of Miami fire inspector, as well as the undercover agent, met with Derhy to discuss the egress violations which stemmed from obstructed exit doors at the Flagler Building.  During the meeting, Derhy offered a bribe payment to the fire inspector and the undercover officer by giving them an envelope that contained $10,000.  In exchange for the money, the fire inspectors were supposed to “clear” (remove) the exit door violations from the property record without Derhy in fact fixing the problems cited in his violation notice.  Additionally, Derhy would not be required to submit an approved plan and permit to modify and bring the Flagler Building up to code.  The fire inspector and the undercover agent accepted Derhy’s offer and the envelope containing the $10,000.

On July 21, 2014, the undercover agent placed a call to Derhy, and told him that he had put together a plan of action for the violations at the Flagler Building.  The undercover agent also stated that he could take care of the Certificate of Use that would be needed be for the property.  The undercover agent told Derhy that they needed a work permit, and stated that he “could fix that on [his] end.”  The undercover agent also indicated that there was a second issue that would require backdating paperwork.

Later that afternoon, the undercover agent and Derhy met at a pre-determined location and were recorded.  During the meeting, Derhy paid the undercover agent an additional $3,000 in U.S. currency to “clear everything.”  The undercover agent stated that he would “start making things happen, such as the prior approval, work permits, sketchings for fire, and a certificate of use.”

Yesterday, U.S. District Judge Marcia G. Cooke scheduled Derhy’s sentencing hearing for August 26, 2015.  Derhy is subject to a maximum sentence of ten years in prison, followed by three years of supervised release.  Derhy is also subject to a $250,000 fine and forfeiture in the amount of $13,000.

Mr. Ferrer commended the investigative efforts of the FBI Miami Area Corruption Task Force and City of Miami Police Department Internal Affairs Section.  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 Broward resident was sentenced to 34 months in prison, followed by three years of supervised release, and was ordered to pay restitution of $45,711.10, for his involvement in an identity theft fraud scheme where he obtained and used stolen credit card numbers of individuals without their authorization.

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

Jaqwayn Henry, 25, of Lauderhill, previously pled guilty to one count of conspiracy to commit access device fraud, in violation of Title 18, United States Code, Section 1029(b)(2), and one count of aggravated identity theft in violation of Title 18, United States Code, Section 1028A(a)(1).

Co-defendants Andrew Ware, 27, Alex Dontfred, 29, David Tilus, 27, Sherika Rowe, 20, Fritznel Etienne, 24, and Latonya Ware, 27, all of Lauderhill, were previously sentenced. Andrew Ware was sentenced on April 18, 2014 to 70 months in prison, to be followed by three years of supervised release, and was ordered to pay $182,246.10 in restitution. Dontfred was sentenced on March 18, 2014 to 46 months in prison, to be followed by three years of supervised release, and was ordered to forfeit $49,561.88 and pay restitution in the amount of $45,711.10. Tilus was sentenced on March 10, 2014 to 70 months in prison, to be followed by three years of supervised release, and was ordered to pay $188,322 in restitution. Rowe was sentenced on March 13, 2014 to 45 months in prison, to be followed by three years of supervised release, and was ordered to pay a money judgment of $136,538 and restitution in the amount of $136,535. Etienne was sentenced on March 14, 2014 to 34 months in prison, to be followed by two years of supervised release, and was ordered to pay a money judgment of $11,204 and restitution in the amount of $3,844.81. Latonya Ware was sentenced on March 10, 2014 to 34 months in prison, to be followed by three years of supervised release, and was ordered to pay a money judgment of $136,535 and restitution in the amount of $136,535.

Andrew Ware previously pled guilty to one count each of conspiracy to commit wire fraud, wire fraud, conspiracy to commit access device fraud, and aggravated identity theft, in violation of Title 18, United States Code, Sections 1349, 1343, 1029(b)(2) and 1028A(a)(1), respectively. Dontfred previously pled guilty to one count each of conspiracy to commit access device fraud and access device fraud, in violation of Title 18, United States Code, Sections 1029(b)(2) and 1029(a)(2), respectively. Tilus previously pled guilty to one count each of conspiracy to commit wire fraud, wire fraud, conspiracy to commit access device fraud, and aggravated identity theft, in violation of Title 18, United States Code, Sections 1349, 1343, 1029(b)(2) and 1028A(a)(1), respectively. Rowe previously pled guilty to one count each of conspiracy to commit wire fraud, wire fraud and aggravated identity theft, in violation of Title 18, United States Code, Section 1349, 1343 and 1028A(a)(1), respectively. Etienne previously pled guilty to one count each of access device fraud and aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(2) and 1028A(a)(1), respectively. Latonya Ware previously pled guilty to one count each of conspiracy to commit wire fraud and aggravated identity theft, in violation of Title 18, United States Code, Section 1349 and 1028A(a)(1), respectively.

According to court documents, Andrew Ware, David Tilus, Latonya Ware and Sherika Rowe obtained the personal identifying information (PII) of numerous identity theft victims, including their names, dates of birth, and social security numbers. Latonya Ware stole patients' names and social security numbers from a medical office where she worked, and gave the PII to Tilus and her cousin, Andrew Ware. Rowe electronically filed fraudulent tax returns utilizing the victims’ names and social security numbers, and the fraudulent refunds from these returns were loaded onto prepaid debit cards that Tilus and Andrew Ware used to purchase gift cards and other merchandise from retail stores. The fraudulent refunds that Andrew Ware, Tilus, Latonya Ware and Rowe claimed using stolen identities totaled returns in the amount of approximately $137,132 dollars.

Court documents indicate that Henry, Andrew Ware, Tilus, Dontfred and Etienne utilized victims’ access devices without their authorization, to purchase merchandise totaling at least $1,000 in a single year. These defendants obtained credit card numbers from various victims and used these stolen access devices to purchase merchandise, gift cards and prepaid debit cards for later use. The total amount of fraudulent charges made or attempted to be made by Henry, Andrew Ware, Tilus, and Dontfred utilizing the stolen credit cards is $49,561.88. From approximately January 20, 2012 through January 22, 2012, the total amount of fraudulent charges made or attempted to be made by Etienne utilizing a stolen credit card number was $11,942.23.

The indictment was dismissed against Latanya Ware.

Mr. Ferrer commended the investigative efforts of IRS-CI, the USSS, and BSO. The case is being prosecuted by Assistant U.S. Attorneys Alicia Shick and Harry Wallace.

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

Two Palm Beach County residents were indicted on charges stemming from 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), Nadine Gurley, Special Agent in Charge, U.S. Department of Housing and Urban Development, Office of the Inspector General, (HUD-OIG), and Karen Citizen-Wilcox, Special Agent in Charge, U.S. Department of Agriculture, Office of Inspector General (USDA-OIG), made the announcement.

Latonia Verdell, 40, and Kelli Witherspoon McIntosh, 39, both of Palm Beach County, were charged by superseding indictment with conspiracy to commit wire fraud and mail fraud, in violation of Title 18, United States Code, Section 1349; wire fraud, in violation of Title 18, United States Code, Section 1343; theft of government funds, in violation of Title 18, United States Code, Section 641; and aggravated identity theft, in violation of Title 18, United States Code, section 1028A(a)(1).  In addition, Verdell was all charged with being a felon in possession of a firearm, in violation of Title 18, United States Code, section 922(g)(1); possession of more than fifteen unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3); theft of government funds, in violation of Title 18, United States Code, Section 641; and making a false statement to a federal government agency, in violation of Title 18, United States Code, Section 1001.  Yesterday, both Verdell and McIntosh were arraigned on the superseding indictment before U.S. Magistrate Judge Dave Lee Brannon.  Verdell had previously been indicted alone for the sole count of unlawful gun possession.

According to allegations contained in the superseding indictment and the court record, Verdell recruited and led her co-conspirators, including McIntosh, in a widespread stolen identity refund fraud scheme involving more than 800 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 others, 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.

The indictment further alleges that evidence of the stolen PII was found in Verdell’s home during the execution of a federal search warrant.  Also found in Verdell’s home during the search warrant was a stolen .38 caliber pistol. 

The investigation further revealed, according to allegations in the indictment, that while Verdell was collecting hundreds of thousands of dollars from the fraudulent tax refunds, she was applying for and receiving federal welfare assistance program benefits, from the U.S. Department of Housing and Urban Development, the U.S. Department of Agriculture (USDA), and other governmental entities.  One of those assistance programs was USDA’s Supplemental Nutrition Assistance Program (SNAP), formerly referred to as food stamps.  During the application process, Verdell falsely represented her monthly income in order to receive SNAP benefits.

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

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-Dade County resident was charged, by Information in the Southern District of Florida, for participating in a Ponzi scheme.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation, and Commissioner Drew J. Breakspear with Florida’s Office of Financial Regulation (OFR), made the announcement.

Phil D. Williamson, 48, of Palmetto Bay, was charged for his participation in a fraud scheme.  The defendant was charged with Investment Advisor Fraud, in violation of Title 15, United States Code, Section 80b-6, an offense punishable by up to five years in prison.

According to the Information, Williamson misled investors into believing that he was a registered investment advisor working for a nationally recognized financial services firm.  During the course of the fraud scheme, seventeen individuals invested over two million dollars with Williamson. Unbeknownst to them, Williamson was transferring their money into bank accounts in the names of two companies he owned and operated, Sterling Investment Fund, LLC (“Sterling Investment”) and Sterling Financial Partners, Inc. (“Sterling Financial”).  Williamson misappropriated and misused much of the money he promised to invest.  In order to conceal the fraud from investors, Williamson created false statements of account to lull investors into falsely believing that their principal was safe and generating a positive return.  Williamson further lulled investors by engaging in a Ponzi scheme, paying early investors with money he received from newly solicited investors.

A complaint filed by the Securities and Exchange Commission in a companion case has charged Williamson with violations of Sections 206(1), 206(2), and 206(4) of the Investment Advisers Act of 1940, and Rule 206(4)-8 thereunder.  The SEC is seeking disgorgement of ill-gotten gains, and a permanent injunction against Williamson.

The OFR issued a Stipulation and Consent Agreement with Williamson involving various Florida rules and statutes to include engaging in outside business activity, selling away, unregistered activity, selling unregistered securities, a Ponzi scheme, and several counts of fraud.  The OFR is seeking payment of restitution owed to investors and a permanent bar against Williamson.

Mr. Ferrer commended the investigative efforts of the FBI and OFR.  The case is being prosecuted by Assistant U.S. Attorney Alejandro Soto.

An Information contains mere allegations.  A defendant is presumed innocent unless and until proven guilty in a court of law.

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 College student was sentenced to 21 months in prison, followed by three years of supervised release, and was ordered to pay restitution of $63,000, for her involvement in a stolen identity tax refund fraud scheme involving her student financial services account.

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

A federal jury previously convicted Laquisha Q. Johnson, 24, of Opa Locka, Florida, for her involvement in a stolen identity tax refund fraud scheme that utilized her student Higher One financial services account.  Johnson was convicted of three counts of receiving stolen government property.

As shown at trial, Johnson was a student at Miami Dade College.  During her time as a student, Johnson opened a bank account serviced by Higher One, Inc., which provides financial services to colleges and universities throughout the United States, including Miami Dade College in Florida.  After opening this account, tax refunds issued to three different victim-taxpayers were direct deposited into Johnson’s account.  This included a tax refund of $61,000 that had been issued to a victim-taxpayer with the initials E.R.L.  An aggregate amount of tax refunds in the amount of $63,000 was deposited into Johnson’s account. 

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