Southern District of Florida

A Miami Dade College student was sentenced to 51 months in prison, followed by 3 years of supervised release, and was ordered to pay restitution in the amount of $29,289, for his participation in a stolen identity tax refund fraud scheme involving student financial services accounts.

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

Smith Jean, 23, previously pled guilty to one count of conspiracy to commit an offense against the United States and one count of theft of government property or money.

According to court documents, from October 15, 2012 to September 23, 2013, Jean participated in a tax fraud scheme with co-defendant Beatrice Simeon, 22, and other co-conspirators.  During the course of the scheme, the co-conspirators received fraudulently obtained U.S. Department of Treasury tax refunds into their personal Higher One, Inc. (HOI) accounts. HOI provided financial services to colleges and universities throughout the United States, including Miami Dade College in the Southern District of Florida.

Jean opened his HOI account when he enrolled as a student at Miami Dade College. Jean and his co-conspirators set up their HOI accounts to allow for the receipt of the fraudulently obtained federal income tax refunds.  After the stolen tax refunds were deposited into Jean’s HOI account, the defendant withdrew the fraudulently obtained monies for his own personal benefit.  Jean recruited co-defendant Simeon to participate in the tax fraud scheme by offering her a financial incentive, in exchange for the deposit of stolen tax refunds into Simeon’s HOI account. Simeon agreed to participate in the tax fraud scheme and provided Jean with her HOI account number.

Jean and other unknown co-conspirators submitted thirty-eight (38) false and fraudulent tax returns, claiming $263,415 in tax refunds to be deposited into Simeon’s HOI account.  Jean and the co-conspirators also submitted twenty-four (24) false and fraudulent tax returns, claiming $81,076 in tax refunds to be deposited into Jean’s HOI account.

Co-defendant Simeon previously pled guilty to one count of conspiracy to commit an offense against the United States and one count of theft of government property or money.  Simeon was sentenced to five years of probation by U.S. District Judge Ursula Ungaro.

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

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

The leader and another member of a massive identity theft tax refund fraud scheme have been convicted of conspiracy, wire fraud, and aggravated identity theft charges following a ten day trial. 

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Ric Bradshaw, Sheriff, Palm Beach County Sherriff’s Office, and Amos Rojas, Jr., United States Marshals, United States Marshals Service Regional Fugitive Task Force, made the announcement.

Defendant Lukner Blanc, 31, of Royal Palm Beach, and Benoit Placide, a/k/a “Snow,” a/k/a “Mario,” 26, of West Palm Beach, were convicted of conspiracy to receive, conceal or retain monies stolen from the United States, wire fraud, and aggravated identity theft.  Blanc was also convicted of receiving, concealing and retaining monies stolen from the United States.  The defendants were remanded into custody, following their conviction.

At trial, the government presented evidence that the federal investigation began with the arrest of Blanc, on October 29, 2012, for an unrelated state crime. Agents recovered four bank debit cards out of Blanc’s pants pocket, all in the names of other persons.  While incarcerated in the state case, Blanc made recorded calls from the Palm Beach County Jail.  Based on information obtained during the course of the monitored and recorded jail calls, law enforcement officials obtained a state search warrant for the residence of co-conspirator Jean Juste, a/k/a “Junior,” a/k/a “Shorty,” 24, of West Palm Beach.  Inside Juste’s residence, agents discovered items used to facilitate identity theft crimes, including computers, more than sixty-nine Western Union debit cards, lists of employers, and the names, Social Security numbers, and dates of birth of various individuals.  During the course of the investigation, law enforcement learned that Blanc and Juste were associates in the identity theft fraud scheme, alongside co-conspirator Placide.

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

The co-conspirators attempted to obtain more than $1,200,000 in unauthorized income tax refunds.  The co-conspirators received more than $700,000 in fraudulent tax refund payments, which were sent to bank accounts and pre-paid debit cards they controlled.  After the fraudulent refunds were sent by wire transfer to the bank accounts and debit cards, the defendants and their co-conspirators withdrew the funds at automatic teller machines (ATMs) and point of sale electronic terminals at various retail establishments.

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

Co-Conspirator Marie Claude, 25, of Lantana, previously pled guilty for her participation in the conspiracy.

Co-conspirator Marie Demesyeux, 29, of Lake Worth, previously pled guilty to one count of perjury for making a false statement while testifying under oath before a Federal Grand Jury.

Claude and Demesyeux are scheduled to be sentenced on April 16, 2015 before United States District Judge T.K. Hurley.

Co-conspirator Shelda Phadael, 28, of Lake Worth, previously pled guilty to conspiracy and theft of government funds.  Phadel is scheduled to be sentenced on May 27, 2015 before United States District Judge T.K. Hurley.

Co-conspirator Frank Fleuzinord, 29, of Cape Coral, is a fugitive.

Defendants Claude and Demesyeux face maximum possible sentences of five years in prison.  Phadel faces a maximum possible sentence of fifteen years in prison for the theft of government funds conviction and twenty years in prison for the conspiracy conviction.  Blanc and Placide face a maximum possible sentence of twenty years in prison for the conspiracy-related convictions, followed by a mandatory minimum term of two years in prison for the aggravated identity theft conviction.

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

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

Three Broward Residents were sentenced today for preparing false tax returns for their clients.  Steven Tidas, of Tamarac, was sentenced to 30 months in prison, followed by three years of supervised release, and ordered to pay restitution in the amount of $85,459.  Sylvanie Junior Pierre, of Lauderdale Lakes, was sentenced to 18 months in prison, followed by three years of supervised release, and ordered to pay restitution in the amount of $28,119.  Stenor Prosper, of Parkland, was sentenced to 6 months in prison, followed by 6 months home confinement and three years of supervised release, and ordered to pay restitution in the amount of $30,463.

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.

Tidas, Pierre and Propser previously pled guilty to one count of conspiracy.

According to court documents, the defendants served as officers of Value Tax Services, Inc. and Value Financial Group, Inc., both of Sunrise.  The defendants prepared tax returns for individuals that falsely claimed tax credits for being first time home buyers, when the defendants knew that in truth and in fact, the taxpayers had not purchased a home and did not qualify for the tax credit.  The defendants also prepared tax returns for individuals that falsely claimed they had received household help income or inflated household help income and had falsely inflated other income or deductions, in order to increase the amount of the taxpayers’ refunds.

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

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 pleaded guilty today in the U.S. District Court in the Southern District of Florida in Fort Lauderdale to one count of conspiracy to commit wire fraud, the Justice Department announced today.

Damion Bryan Barrett, 28, was extradited from Jamaica in February based on charges that he committed fraud as part of an international lottery scheme against elderly victims in the United States.  The prosecution is part of the United States’ ongoing crackdown on fraudulent international lottery schemes.

“The protection of the most vulnerable members of our society, including the elderly, is one of the top priorities of the Department of Justice and of our Office, and this case again shows that an international border is no defense for those who defraud our senior citizens,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida.  “Regardless of where the criminals may be located, we will work together with our domestic and international law enforcement partners to bring them to the United States to hold them accountable for their crimes.  In particular, we thank the Jamaican authorities for their cooperation and assistance in our continuing efforts to stamp out these long-running lottery schemes that target older Americans.”

 “Scammers in foreign countries preying on elderly victims in the United States are not immune from prosecution in the United States,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division.  “This case demonstrates that we will bring those responsible to justice, wherever they may seek to hide.”  

Barrett was indicted by a federal grand jury in Fort Lauderdale on Aug. 9, 2012, and was arrested in Jamaica in January based on the United States’ request that he be extradited.  On Feb. 12, Barrett 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.

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, Barrett 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.       

At his June 19 sentencing, Barrett faces a statutory maximum sentence of 30 years in prison and mandatory restitution.  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 Acting Assistant Attorney General Mizer commended the investigative efforts of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Postal Inspection Service and the U.S. Marshals Service.  The case is being prosecuted by Assistant U.S. Attorney Bertha R. Mitrani of the Southern District of Florida and Trial Attorney Kathryn Drenning of the Civil Division’s Consumer Protection Branch.

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

An Okeechobee man was sentenced to 24 months in prison, followed by one year of supervised release, and was ordered to pay $238,734.00 in restitution, by United States District Judge Robin L. Rosenberg, for his participation in a tax fraud scheme.

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.

Wyman Pittman, 47, of Okeechobee, previously pled guilty to aiding in the preparation and presentation of false tax returns.

According to court documents, Pittman was a paid tax preparer who, together with his former partner Ventrell Bouie, of Fort Pierce, Florida, operated a tax preparation service business, First Premium Financial Services (FPFS), in Okeechobee, Florida.  From 2008 through 2012, Pittman prepared individual income tax returns.  Pittman assisted in the preparation of multiple, fraudulent tax returns by supplying false income and deduction figures, failing to review them in detail with the taxpayers, and then electronically filing them for the taxpayers.

Specifically, Pittman filed a Form 1040 income tax return for the 2008 tax filing year that falsely itemized a taxpayers’ deductions for, among other things, medical and work expenses. As a result, the taxpayer received an inflated and unmerited tax refund payment.  Pittman knew that the taxpayer had not claimed, or provided to Pittman, the information regarding those deductions for inclusion in the tax return.

Maria Garcia began working in 2008 for FPFS and was trained and supervised by Pittman and Bouie. Garcia, as a paid tax preparer, prepared false returns for customers based on false Schedules A and C, false education credits, and false child and dependent care credits. Additionally, Garcia filed three false returns for herself for tax years 2008, 2009, and 2010.

Garcia learned the tax preparation business, while working under Bouie and Pittman.  Pittman taught Garcia how to fraudulently inflate deductions and refunds on client taxpayer returns.  Using that knowledge, Garcia started her own tax preparation business where she too prepared false returns. 

Bouie was charged separately and pled guilty to aiding in the preparation and presentation of false tax returns, in Case No. 13- 14025-CR-Martinez.  Bouie was sentenced to 24 months in prison.

Garcia was also charged separately and pled guilty to aiding in the preparation and presentation of false tax returns, in Case No. 13- 14026-CR-Graham.  Garcia was sentenced to 18 months in prison.

Mr. Ferrer commended the investigative efforts of IRS-CI.  The case was prosecuted by Assistant U.S. Attorney Theodore M. Cooperstein.

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations Miami Office (DOL-OIG), Jesse Panuccio, Executive Director, State of Florida’s Department of Economic Opportunity (DEO), Thomas Caul, Special Agent in Charge, Social Security Administration, Office of Inspector General (SSA-OIG), Steve Steinberg, Chief, Aventura Police Department, J.D. Patterson Jr., Director, Miami Dade Police Department (MDPD), and J. Scott Dennis, Chief, North Miami Beach Police Department (NMBPD), announce the filing of federal charges against 42 defendants in 25 separate cases, dealing with tens of thousands of stolen identities and millions of dollars stolen from victims and government agencies through fraudulent schemes. Today’s cases reaffirm the joint federal, state and local commitment to the prosecution of perpetrators who steal, sell and use personal identification information to commit identity theft fraud schemes.

According to the Federal Trade Commission, Florida had the highest rate of identity theft in the United States in both 2013 and 2014.  While identity theft in Florida ranks highest in the United States, the identity theft rate in Miami has reached near epidemic proportions.  Florida’s rate of 186.3 identity theft complaints per 100,000 residents – the highest in the United States – is dwarfed by the Miami rate of 316.2 complaints per 100,000 residents.

In an attempt to combat the rising wave of stolen identity tax refund scams, and armed with recent directives from the Department of Justice’s Tax Division, making prosecutions faster and easier, the U.S. Attorney’s Office for the Southern District of Florida established the South Florida Identity Theft Tax Fraud Strike Force (Strike Force) in August 2012.  With the escalating spread of fraud offenses, the Strike Force has broadened the scope of its focus and is now identified as the Identity Theft Strike Force.

The members of the Strike Force, and participating agencies, include the United States Attorney’s Office, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, Federal Bureau of Investigation (FBI), Miami Field Office, U.S. Secret Service, U.S. Postal Inspection Service (USPIS), Miami Division, Social Security Administration, Office of Inspector General (SSA-OIG), United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations Miami Office (DOL-OIG), Aventura Police Department, North Miami Beach Police Department, Miami-Dade Police Department, Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), Miami Field Office, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, Broward Sheriff’s Office (BSO), Sunrise Police Department, Coral Springs Police Department, Miramar Police Department, North Miami Police Department, City of Miami Police Department, Ohio Department of Taxation, Michigan Unemployment Insurance Agency, and Texas Workforce Commission.

Since the inception of the Strike Force, we have charged 359 defendants, who were responsible for approximately $314 million in intended losses and in excess of $125 million in actual SIRF fraud loss.

The U.S. Attorney’s Office and the IRS have also attacked this problem at its root by revoking so called “electronic filing identification numbers” or EFIN numbers, which allow individuals to file tax returns on behalf of others.

United States Attorney Wifredo A. Ferrer stated, “Identity theft is a virus that has engulfed our community.  Evolving fraud schemes are sweeping the state, utilizing the stolen personal identification information of our residents and individuals throughout the country.  Theft of personal information is no less egregious when it is perpetrated by offenders who operate fraud schemes from their own homes and places of business.  We are committed to stopping the fraud and encourage institutions to establish protective measure that will ensure personal information is not jeopardized. Our Office thanks the countless members of federal, state and local law enforcement agencies and other governmental entities who work together to fight these pervasive crimes and hold the offenders accountable.”

Kelly R. Jackson, Special Agent in Charge, IRS Criminal Investigation, stated, “Stolen Identity Refund Fraud is an ongoing battle that requires constant, joint and aggressive law enforcement actions to continue protecting the citizens of Florida.  Today’s announcement should serve as a strong warning to those who are considering similar conduct.  Law enforcement is serious about investigating identity theft crimes, and IRS Criminal Investigation is committed to working with the U.S. Attorney’s Office and our partners on the Identity Theft Strike Force to combat the fraud.”

DEO Executive Director Jesse Panuccio said, “Identity theft and public-benefits fraud have reached crisis levels. This fraud harms those whose identities are stolen, robs the social safety net of resources meant for hardworking Floridians, imposes significant costs on taxpayers, and undermines public trust. Our goal at DEO is to set a national standard in preventing, detecting, and helping to prosecute this fraud. We are making great strides within the Reemployment Assistance program, and in the last year our new fraud detection measures uncovered and halted 97,000 fraudulent claims, worth more than $400 million.”

“The epidemic of identity theft and tax fraud has hit South Florida hard in the past few years.  The creation of the South Florida Identity Theft Strike Force has allowed the law enforcement members involved in the task force to work together, on many different levels, to combat this epidemic” said Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service, Miami Division.  “These arrests should send a message to criminals that we will bring them to justice.”

“HSI will not tolerate criminals taking advantage of our citizens through identity theft schemes and we will continue to work hand-in-hand with our law enforcement partners to bring them to justice,” said Alysa D. Erichs, Special Agent in Charge of Homeland Security Investigations Miami.  “Identity theft causes distressing hardships for many citizens and has a devastating impact on the entire community.”

J.D. Patterson, Director of Miami Dade Police Department stated, “It is extremely important for law enforcement agencies to work in collaboration with each other and our communities to address crimes that span the jurisdictional boundaries of one agency and impact thousands of our citizens.   The Miami-Dade Police Department remains committed to working together with fellow law enforcement agencies in the fight against fraud.”

Today, U.S. Attorney Ferrer, joined by members of the Identity Theft Strike Force, announce the most recent results of their investigative efforts. The cases announced today include:

1.         United States v. Densom Beaucejour and Winzord Beaucejour, Case No. 15-20190-CR-Ungaro

On March 24, 2015, Densom Beaucejour, 22, and Winzord Beaucejour, 21, both of Miami Gardens, were charged in a six-count indictment for their participation in a conspiracy to use stolen identities to commit unemployment insurance fraud, state income tax fraud, and federal income tax fraud.

According to public documents, the investigation in this case began in January 2015, when a local police officer reported that he/she was the victim of identity theft and that a fraudulent unemployment insurance claim had been filed in his/her name.  Subsequent investigation by federal law enforcement revealed numerous instances of suspected unemployment insurance fraud connected to the defendants’ residence.

On March 11, 2015, law enforcement agents executed a federal search warrant at the defendants’ residence.  Inside several bedrooms in the defendants’ home, law enforcement found numerous sheets of paper, ledgers, and other documents with personal identifying information (“PII”) – including names, dates of birth, and Social Security numbers – of more than 1,000 individuals.  Agents also discovered three handguns (one of which had been reported stolen), $8,600 in cash, and several credit cards embossed with names of individuals that did not appear to live at the defendants’ residence.  Densom Beaucejour admitted to law enforcement that he possessed the PII found in his bedroom and had used some of it to commit fraud.

The indictment charges the defendants with engaging in a conspiracy between February 2, 2014, and March 11, 2015, to use stolen PII to file fraudulent Florida unemployment insurance claims, fraudulent federal income tax returns, and fraudulent State of Ohio income tax returns.  The fraudulent claims and refund amounts -- ranging between $275 and $7,581 -- are alleged to have been filed from the defendants’ home in Miami Gardens.

The defendants were charged with conspiracy to use unauthorized access devices, possession of fifteen or more unauthorized access devices, and aggravated identity theft.

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

2.         United States v. Cora Eutsay, Case No. 15-2250-MJ-Turnoff

Cora Eutsay, 50, of Miami, was charged by criminal complaint with trafficking in and using unauthorized access devices to obtain anything of value, aggregating $1,000 or more in a one year period.

As alleged in the complaint, Eutsay worked for CareerSource South Florida in the Opa Locka office.  During her employment, Eutsay sought and inappropriately obtained access to the Department of Children and Families’ ACCESS Florida System, a State database containing the personally identifying information, including names, dates of birth, and social security numbers (“PII”) of individuals who applied for public benefits in Florida.  Eutsay’s employment credentials were used on several occasions to run queries in the ACCESS Florida database for the PII of persons who had previously applied for public benefits.  Eutsay then sold the PII of more than 200 individuals.

Mr. Ferrer commended the investigative efforts of the DOL-OIG, IRS-CI, USSS, BSO, and DEO.   The case is being prosecuted by Assistant U.S. Attorney Jaime Galvin.

3.         United States v. Kyron Jonathon Nedd, Case No. 15-2426-MJ-Goodman

On April 1, 2015, Kyron Jonathan Nedd, 22, of Miami Gardens, was charged by criminal complaint for his participation in a stolen identity tax fraud scheme.

According to the criminal complaint, 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 Internal Revenue Service (“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.

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.  The printouts contained the name they contained the name “C.Eutsay” at the top of the documents as well as her ID number  and system identification number for “Cora Eutsay,” who, as noted above, was charged in a separate criminal complaint in Case No. 15-2250-MJ-Turnoff, with selling PII that she had unlawfully obtained from the DCF database.  IRS-CI agents have since determined that there were numerous instances in which the PII contained on the DCF printouts matched up with fraudulent returns filed from Nedd’s residence.

According to the complaint, 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 done without the taxpayers’ permission.

The criminal complaint charges the defendant with use of one more unauthorized access devices, possession of fifteen or more unauthorized access devices, and aggravated identity theft.

Mr. Ferrer commended the investigative efforts of the IRS-CI, USPS-OIG, DOL-OIG, and the USSS.  The case is being prosecuted by Assistant U.S. Attorney Brooke C.  Watson.

4.         United States v. Earnest Thad Etienne and Wilbert Champagne, Case No. 15-20054-CR-Ungaro

On January 30, 2015, Earnest Thad Etienne, 29, and Wilbert Champagne, 20, both of North Miami Beach, were charged in a five-count indictment for their participation in a conspiracy to commit state income tax fraud using stolen identities.

According to the indictment and other court records, on September 26, 2014, law enforcement executed a state search warrant at Etienne’s residence pursuant to an investigation of a homicide that took place in front of Etienne’s home.  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 back yard 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 more than 650 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.

The indictment alleges 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.  The indictment alleges that 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.

Etienne and Champagne were charged with conspiracy to use unauthorized access devices and aggravated identity theft.  Etienne was also charged with possession of fifteen or more unauthorized access devices.  Champagne was also charged with use of unauthorized access devices.

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

5.         United States v. Leonce V. Jeudy, Case No. 15-60037-CR-Bloom

On March 3, 2015, Leonce V. Jeudy, 24, of Plantation, was charged in a six count indictment for his participation in a scheme utilizing stolen identities to commit income tax, unemployment, and credit card fraud.

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

Police officers obtained a state search warrant for Jeudy’s residence.  During the execution of the warrant, inside Jeudy’s bedroom officers found more than 100 credit and debit cards in the names of various individuals including Jeudy, numerous documents with the names, dates of birth, and social security numbers (“PII”) of different individuals, and various electronic devices including five computers, three thumb drives, and seven cellular telephones.  The officers also recovered from Jeudy’s residence an AK-47 rifle, hundreds of rounds of different caliber ammunition, MDMA and Methamphetamine, several smaller packages of powder and crack cocaine, and other drug paraphernalia.

Subsequent forensic analysis by federal law enforcement revealed more than 8,000 sets of PII were found on the recovered thumb drives.  In addition, an analysis revealed that eighteen of the recovered debit cards had received approximately $30,000 in fraudulent income tax refunds and two of the debit cards were associated with fraudulent unemployment insurance claims.

The indictment charges the defendant with six counts of possession with intent to distribute controlled substances, possession of a firearm in furtherance of a drug trafficking crime, trafficking and using unauthorized access devices, possession of unauthorized access devices, and aggravated identity theft.

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

6.         United States v. Jesney Eliassaint, Case No.15-2378-MJ-Simonton

On March 23, 2015, Jesney Eliassaint, 33, of Miami, was charged by criminal complaint for his involvement in an identity theft scheme.

According to the criminal complaint, in February 2014, officers with the Miami Gardens Police Department performed a traffic stop of a car for having an expired vehicle registration.  Inside the car were several iPads and sheets of paper containing (“PII”) – including names, dates of birth, and Social Security numbers - of various individuals.  A subsequent investigation by the USSS revealed that there were approximately 137 different names, with corresponding PII, printed on the sheets, some of which had the word “Patient” written across the top.  The USSS determined that the PII found in the vehicle originated from a data breach at Aventura Hospital.  The breach had been executed from Eliassaint’s computer in the hospital’s medical billing department.  According to Aventura Hospital, computer records revealed that Eliassaint had conducted approximately 4,000 inquiries for patients by their date of birth.

During the investigation, USSS agents interviewed Eliassaint, who admitted to conducting the searches and printing out patient records containing the PII while he was working as a contract employee for an outside company.  Eliassaint also told USSS agents that he would take screen shots of the patient records and then print them out to avoid detection.  Eliassaint stated that he sold the sheets of paper, containing PII, for approximately $100 per sheet, to several individuals.  Eliassaint estimated that he made a total of $2,000 for selling the patients’ information.

The defendant is charged with access device fraud and aggravated identity theft.

Mr. Ferrer commended the investigative efforts of the USSS. The case is being prosecuted by Assistant U.S. Attorney Robert J. Emery.

7.         United States v. Bradley Lee Ritter, Case No. 15-20215-CR-Gayles

On Tuesday, March 31, 2015, Bradley Lee Ritter, 23, of North Miami, was charged in a five-count indictment in a scheme to steal unemployment insurance payments by filing fraudulent claims using stolen personally identifying information of numerous Florida residents.

According to court documents, numerous unemployment insurance claims filed in both the State of Florida and the State of Texas were connected to Ritter’s residence.  On March 18, 2015, a federal search warrant was executed at the defendant’s home.  In one bedroom, along with Ritter’s personal items, law enforcement discovered numerous sheets of paper, ledgers, and other documents containing the personally identifying information (“PII”) - names, dates of birth, and Social Security numbers - of approximately 1,000 individuals.  Law enforcement contacted three individuals whose PII was found in Ritter’s home and had unemployment claims submitted in their names.  All three individuals revealed that they did not file the claim or authorize anyone to use their identity.

The indictment charges the defendant with use of unauthorized access devices, possession of fifteen or more unauthorized access devices, and aggravated identity theft.

Mr. Ferrer commended the investigative efforts of the DOL-OIG, DEO, the USPIS, ICE-HSI, and the NMBPD.  The case is being prosecuted by Assistant U.S. Attorney Ben Widlanski.

8.         United States v. Renet Blanc, Case No. 15-2357-MJ-O’Sullivan

On Thursday, March 19, Renet Blanc, 21, of North Miami, was charged by criminal complaint for his participation in an unemployment insurance fraud scheme.

According to the complaint and other public documents, Renet Blanc was involved in a scheme that utilized the stolen identities of Michigan and Florida residents to file fraudulent unemployment insurance claims in both those states.  The State of Michigan Unemployment Insurance Agency then sent unemployment payments, by direct deposit, to Blanc’s bank account in Florida.  Blanc was identified on bank surveillance photos withdrawing some of the unauthorized funds.

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

The complaint charges the defendant with possession of fifteen or more unauthorized access devices.

Mr. Ferrer commended the investigative efforts of the DOL-OIG, SSA-OIG, DEO, USPIS, ICE-HSI, NMBPD. The case is being prosecuted by Assistant U.S. Attorney Ben Widlanski.

9.         United States v. Ronet Blanc, Case No. 14-2458-MJ-McAliley

On Tuesday, April 7, 2015, Ronet Blanc, 24, of North Miami, was charged by criminal complaint with participating in an unemployment insurance fraud scheme.

According to the complaint and other public documents, Ronet Blanc was involved in a scheme that utilized stolen identities of Michigan and Florida residents to file fraudulent unemployment insurance claims in both those states.  The State of Michigan Unemployment Insurance Agency (“UIA”) sent the unemployment insurance payments by direct deposit to Blanc’s bank account in Florida.  The complaint alleges that Blanc was identified withdrawing some of the unauthorized funds, in bank surveillance photographs.

On Wednesday, March 18, 2015, officers executed a federal search warrant at Blanc’s residence.  In one bedroom, along with Blanc’s personal items, law enforcement discovered a laptop computer.  A subsequent forensic search of the computer revealed Blanc’s resume and a spreadsheet containing the personal identification information (“PII”) – including names, dates of birth, and social security numbers - of at least 3,000 individuals.

The complaint charges the defendant with possession of fifteen or more unauthorized access devices.

Mr. Ferrer commended the investigative efforts of the DOL-OIG, SSA-OIG, DEO, USPIS, ICE-HSI, and the NMBPD.  The case is being prosecuted by Assistant U.S. Attorney Ben Widlanski.

10.       United States v. Luis Daniel Lopez Morales and Rigo Octavio Lopez, Case No. 15-2428-MJ-Goodman

On April 1, 2015, Luis Daniel Lopez Morales, 19, and Rigo Octavio Lopez, 25, both of North Miami, were charged by criminal complaint for their participation in a fraudulent tax refund scheme.

The complaint alleges that between January 31, 2014, and July 8, 2014, a total of 494 fraudulent income tax returns for tax year 2013 were filed with the Internal Revenue Service (“IRS”) from the defendants’ home in North Miami. The fraudulent returns claimed approximately $237,092 in tax refunds.  The IRS paid out approximately $49,902 for the fraudulent returns.

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

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

The complaint charges the defendants with conspiracy to use one or more access devices, possession of fifteen or more unauthorized access devices, and aggravated identity theft.

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

11.       United States v. Antwan Lamar Edwards, et. al, Case No. 15-20174-CR-Cooke

On March 19, 2015, Antwan Lamar Edwards, 26, of Miramar, and Dennis Franks, Jr., 27, of Miami, were charged by indictment for their participation in a scheme to file fraudulent tax returns using stolen personal identity information.

According to the indictment, the defendants were the registered managers of a tax preparation business called All-Star Tax Solutions, LLC (“ASTS”), a Florida corporation with its principal place of business in Miami.  Over the course of almost two years, the defendants used ASTS’s Electronic Filing Identification Number (“EFIN”) and their respective Preparer Tax Identification Numbers (“PTINs”) to e-file fraudulent tax returns using stolen personal identification information and fabricated W-2 statements.  The indictment alleges that the defendants filed the false returns from their residences and claimed refunds for the 2011 tax year in amounts ranging between $563 and $6,515, which were paid by check and direct deposit onto debit cards mailed to ASTS.

The thirty-one count indictment charges the defendants with conspiracy, submitting false claims to the government, wire fraud, and aggravated identity theft.

Mr. Ferrer commended the investigative efforts of the Identity Theft Strike Force, with special commendation to the IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Christopher Browne.

12.       United States v. Christopher M. Mack, Case No. 15-2317-MJ-O’Sullivan

On March 16, 2015, Christopher M. Mack, 30, of Miami, was charged by criminal complaint for operating a scheme to skim credit card numbers, manufacture counterfeit credit cards, and file false federal income tax returns.

According to the criminal complaint, the defendant engaged in a scheme to skim credit card numbers from the customers of a South Beach restaurant.  Pursuant to the investigation and the execution of a search warrant at Mack’s residence, officers discovered a magnetic stripe encoder, a credit card skimmer, over 100 counterfeit credit cards embossed with Mack’s name, three spiral notebooks filled with the personal identifying information of over 500 individuals, and loose sheets of paper filled with over 1,000 social security numbers.

Pursuant to the complaint, a Miami Dade Police Department (“MDPD”) detective selected for further inspection fifty entries from the hundreds listed in the spiral notebooks.  The detective discovered that the fifty entries represented a total of $232,344.00 in filed returns.  Further investigation revealed that individuals listed in the entries had false tax return filings associated with the discovered PII.  Of those false filings, four resulted in paid disbursements.

The complaint charges the defendant with possessing fifteen or more counterfeit or unauthorized access devices.

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

13.       United States v. Yvenante Achille, Case. No. 15-20229-CR-Lenard

In April 3, 2015, defendant Yvenante Achille, 30, of Miami, was charged by indictment for her participation in an identity theft tax fraud scheme.

According to the indictment, Achille was an employee of a community health care provider.  As part of her regular employment, the defendant had access to patient records, which contained personal identifying information (“PII”).  Between August 22, 2013, and March 26, 2104, the defendant stole the PII of more than 9,000 current and former patients. Achille provided the stolen PII, without the patients authorization or permission, to a co-conspirator.  Using a patient’s PII, the co-conspirator filed a fraudulent tax return.

The indictment charges the defendant with conspiracy to commit access device fraud, possession of fifteen or more unauthorized access devices, and possession of fifteen or more unauthorized access devices.

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 Gera Peoples.

14.       United States v. John Mackenley Cesar, et. al, Case No. 15-60071-CR-Zloch

On April 2, 2015, John Mackenley Cesar, 26, of Miami, Chedlor Dorilus, 22, of Hollywood, Lawrence Bernadel (“Bernadel”), 22, of Tallahassee, Ariel Ronet Walker, 22, of Tallahassee, and Lubens Inalien, a/k/a “Lubaby,” 29, of Fort Lauderdale, were charged in a six count indictment for their participation in a stolen identity tax refund fraud scheme.

According to the indictment, from January 29, 2014, through April 17, 2014, in Fort Lauderdale and Tallahassee, Florida, the defendants used an Electronic Filing Identification Number (“EFIN”), in the name of Canaan Plus Tax, Inc. of Miami Gardens, to file fraudulent tax returns with the Internal Revenue Service (“IRS”). The defendants used the personal identification information (“PII”) of hundreds of individuals, including PII obtained from the Texas Department of Public Safety, to file the fraudulent tax returns.  After the fraudulent tax returns were received by the IRS, the defendants arranged to have the tax refund payments deposited onto pre-paid debit cards.  After the monies were deposited onto the cards, they were used by the defendants to purchase items and make withdrawals from ATMs in Broward County and elsewhere.  The indictment alleges that through the submission of the fraudulent tax returns, the defendants sought to obtain approximately $800,000 in tax refunds.

The defendants were charged with conspiracy to defraud the United States, conspiracy to possess fifteen or more unauthorized access devices, possession of fifteen or more unauthorized access devices, and aggravated identity theft.

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

15.       United States v. Kiesha Adderly Mitchell and Melissa Pearl Davis, Case No. 15-20131-CR-Gayles

On March 5, 2015, Kiesha Adderly Mitchell, 36, and Melissa Pearl Davis, 32, both of Miami, were charged in a seventeen count indictment for their participation in a stolen identity tax refund fraud scheme.

According to the indictment, in 2009 the defendants applied to the Internal Revenue Service (“IRS”) for Electronic Filing Identification Numbers (“EFIN”) in the name of corporate or fictitious entities they controlled, including K. Mitch Services, Inc. and Pebbles Tax & Notary Services.  The defendants submitted false and fraudulent federal income tax returns to the IRS, using the names and Social Security numbers of other individuals, without the taxpayers’ authority.  The defendants filed the false and fraudulent tax returns using EFINs, issued in the names of K. Mitch Services Inc. and Pebbles Tax & Notary Services, among others.  After the tax returns were received by the IRS, various financial institutions would authorize refund anticipation loans (“RALs”) in the names of fraudulent tax return applicants.  The refunds were to be loaded onto debit cards controlled by the defendants.  The defendants then used those debit cards for their personal use and enrichment.

The indictment alleges that the defendants submitted fraudulent tax returns for tax years 2011 through 2013, seeking refunds in amounts ranging between $1,122 and $5,830.

The defendants were charged with conspiracy to defraud the government with false claims, filing false, fictitious, and fraudulent claims, possession of fifteen or more unauthorized access devices, and aggravated identity theft

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.

16.       United States v. Alexander Paul, Case No. 15-20236-CR-Lenard/Goodman.

On April 7, 2015, Alexander Paul, 23, of North Miami, was charged in a two count information for his participation in an identity theft scheme.

According to the information, on or about June 5, 2014, the defendant possessed the social security numbers of at least fifteen individuals. The indictment also alleges that the defendant transferred the means of identification, specifically, the name and date of birth, of an individual with the initials “C.F.”

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

17.       United States v. Ashley Leroy, Case No. 15-60009-CR-Bloom

On January 22, 2015, Ashley Monique Leroy, 26, of Davie, was charged in a three count indictment for her participation in an identity theft scheme.

According to the indictment, the defendant possessed the social security numbers of at least fifteen individuals. The indictment also alleges that the defendant transferred the means of identification, specifically, the name and date of birth, of two individuals.

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

18.       United States v. Bash-Dee Antoine Barlatier, Case No. 15-20111-CR-Middlebrooks

On February 27, 2015, Bash-Dee Antoine Barlatier, 28, of North Miami Beach, was charged in a three count indictment for his participation in an unemployment insurance fraud scheme.

According to the indictment, Barlatier used the names and social security numbers of other individuals to obtain anything of value aggregating $1,000 or more.  The defendant also used the names and debit cards of two individuals in relation to that offense.

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

19.       United States v. Christ Lamarre, et al., Case No. 15-20109-CR-King

On February 27, 2015, Christ Lamarre, 24, Antonio Hernandez, 21, and Christopher Carre, 19, all of North Miami Beach, were charged in a five-count indictment for their participation in a conspiracy to commit unemployment insurance fraud.

According to the indictment, the co-conspirators used the names and social security numbers of other individuals to file fraudulent unemployment insurance claims.  The co-conspirators caused the fraudulent unemployment insurance benefits to be electronically deposited into a bank account they controlled.  The defendants then withdrew fraudulent funds from the bank account, using debit cards issued in the name of another individual.

The defendants are charged with conspiracy to commit access device fraud, access device fraud, and aggravated identity theft.

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

20.       United States v. Rashad Aquil Emmons and Adrian Claude Green, Jr., Case. No. 15-60057-CR-Bloom

On March 20, 2015, Rashad Aquil Emmons, 25, of Marietta, GA, and Adrian Claude Green, Jr., 24, of Miami Gardens, were charged in a nine-count indictment for their participation in a stolen identity tax refund scheme.

According the indictment, the defendants engaged in a conspiracy pursuant to which illicit federal tax refunds were deposited by the IRS onto prepaid debit cards.  The indictment alleges that from March 17, 2012, through April 5, 2012, Emmons and Green used a number of those prepaid debit cards, registered in the names of various individuals, to purchase a 2007 BMW and a 2009 Mercedes Benz at a car dealership in Broward County.

The defendants are charged with conspiracy to commit access device fraud, access device fraud, and aggravated identity theft.

Mr. Ferrer commended the investigative efforts of the IRS-CI and the Aventura Police Department.  The case is being prosecuted by Assistant United States Attorney Tonya Long.

21.       United States v. Junior St. Fleurose, Case No. 15-20155-CR-Moore

On March 12, 2015, Junior St. Fleurose, 29, of Miami, was charged with five counts of theft of government funds.

According to the indictment, from March 30, 2010, through June 16, 2011, Fleurose received a total of approximately $112,665.95 in fraudulent tax refunds via U.S. Treasury checks or electronic funds transfers issued to various payees.

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

22.       United States v. Michelson Jeancy, Case No. 15-20230-CR-Huck

On April 3, 2015, defendant Michelson Jeancy, 35, of Miami, was charged by indictment for his participation in an identity theft tax fraud scheme.

According to the indictment, Jeancy was an employee of a Miami-Dade College.  As part of his regular employment, the defendant had access to student records, which contained personal identifying information (“PII”).  Between February 2013, and June 2104, the defendant stole the PII of current and former Miami Dade College students. Using the students’ PII, the defendant and his accomplices filed fraudulent tax returns.

The indictment charges the defendant with wire fraud, aggravated identity theft and possession of fifteen or more unauthorized access devices.

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

23.       United States v. Brandi Mary Janice Stroman, et. al, Case No. 15-60045-CR-Zloch

On March 10, 2015, Brandi Mary Janice Stroman, 30, of Oakland Park, Dezman Dunbar Zama, 34, of Fort Lauderdale, Cornelius Craig Bosket, 32, of Fort Lauderdale, and Jerrod Dashon Bosket, 26, of Oarlando, were charged in a twenty-four count indictment for their participation in a stolen identity tax refund fraud scheme.

According to the indictment, from November 2009, to March 28, 2014, the defendants obtained income tax refunds from the U.S. Department of the Treasury in the names of unsuspecting identity theft victims.  After coconspirators obtained the personal identification information (“PII), including names, social security numbers, and dates of birth of real persons, the defendants and their coconspirators used the PII to electronically file fraudulent tax returns with the Internal Revenue Service (“IRS”) claiming tax refunds to which they were not entitled.  The defendants then, in part, used their personal bank accounts to receive the fraudulently obtained tax refunds by direct deposit or through depositing U.S. Treasury tax refund checks to those accounts.  The defendants withdrew the money using a variety of methods including making ATM withdrawals, purchasing items or paying their bills, and moving the funds to other accounts.

The charges in the indictment include conspiracy to commit wire, mail, and bank fraud, access device fraud, and aggravated identity theft.

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 Cynthia R. Wood.

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

24.       United States v. Thomas Jerry, III, Case No. 15-20228-CR-Scola

On April 3, 2015, defendant Thomas Jerry III, 31, of Miami, was charged by indictment for his participation in an identity theft scheme.

According to the indictment, on or about July 24, 2014, the defendant possessed the social security numbers of at least fifteen individuals. The indictment also alleges that the defendant transferred, possessed and used the means of identification, specifically, the name and social security number, of two individuals.

The indictment charges the defendant with possession of fifteen or more unauthorized access devices, aggravated identity theft, and being a felon in possession of firearms and ammunition.

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

If convicted, the defendants face a possible maximum statutory sentence of ten years in prison for trafficking in or using one or more unauthorized access devices during a one-year period and by such conduct obtains anything of value over $1,000; ten years in prison for stealing government funds; and two years in prison consecutive to any other term for aggravated identity theft.

 

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

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

Six individuals, from Miami and Brazil, were indicted for participating in a mortgage fraud conspiracy.

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

Raul Enrique Quintana, 48, of Miami, Maura Barbosa Lopes, a/k/a “Maura Quintana,” 55, of Brazil, Arnaldo Almeida Prado Neto, 33, of Brazil, Evelyn Lara, 47, of Miami, Luis Enrique Sosa, 43, of Miami, and Juan Osiel Gonzalez, 54, of Miami, were charged with conspiracy to commit bank fraud and wire fraud affecting a financial institution, and various counts of bank fraud offenses, punishable by up to thirty years in prison.

The indictment alleges that from 2004 to 2007, the defendants conspired to perpetrate a complex mortgage fraud scheme against various FDIC-insured lenders, including Chevy Chase Bank, JP Morgan Chase Bank, and Washington Mutual Bank.

The indictment alleges that the defendants Raul Enrique Quintana, Maura Barbosa Lopes, and Arnaldo Almeida Prado Neto purchased and refinanced residential properties in Miami-Dade and Palm Beach Counties, including a number of properties on Fisher Island, using mortgage loans that they obtained through false and fraudulent misrepresentations on their loan applications and related documents.

According to the indictment, the fraudulent loan applications were originated by Raul Enrique Quintana’s mortgage brokerage company, Brickell Financial Corporation (“BFC”).  Title Closing Partners, LLC (“TTP”), a company controlled by Raul Enrique Quintana, Maura Barbosa Lopes, and Evelyn Lara, served as the closing agent for the loans.

According to the indictment, the defendants’ misrepresentations to the banks included fictitious verifications of false and fraudulent employment and bank deposit information set forth on loan applications.  The indictment alleges that Maura Barbosa Lopes and Arnaldo Almeida Prado Neto, as borrowers, falsely and fraudulently declared that they were employed by defendant Luis Sosa’s company, CWW, and were earning substantial salaries.  It is further alleged that Raul Quintana and Luis Sosa agreed that when lenders contacted CWW the employees would provide fraudulent verifications of Barbosa Lopes and Prado Neto’s employment with the company.

The indictment also alleges that Raul Quintana, Maura Barbosa Lopes, and Arnaldo Almeida Prado Neto submitted loan applications that fraudulently listed fictitious or inflated bank account balances as assets, and that in some instances they provided lenders with falsified bank account statements in support of those claims.  It is alleged that defendant Juan Gonzalez, who was an employee at Wachovia Bank, provided lenders with false and fraudulent verifications of deposit for fictitious and inflated Wachovia Bank accounts that were listed as assets by Raul Quintana and Maura Quintana on their loan applications.

The indictment alleges that Evelyn Lara prepared and signed HUD-1 Settlement Statements for loans to Raul Quintana, Maura Barbosa Lopes, and Arnaldo Almeida Prado Neto, which falsely and fraudulently stated that they had paid earnest money deposits and cash due at the closing of their loans.

On April 6, 2015, Raul Quintana, Maura Barbosa Lopes, Arnaldo Almeida Prado Neto, Luis Sosa, and Juan Gonzalez appeared for their initial hearing before United States Magistrate Judge Chris M. McAliley.  Luis Sosa and Juan Gonzalez were granted bond.  Raul Quintana, Maura Barbosa Lopes, and Arnaldo Almeida Prado Neto remain in custody pending their pretrial detention hearings, which are currently set for April 9, 2015, before Magistrate Judge McAliley in Miami.

Mr. Ferrer commends the investigative efforts of the FBI.  The case is being prosecuted by Assistant United States Attorney Dwayne E. Williams.

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

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

A Broward County resident was sentenced to 61 months in prison, followed by 3 years of supervised release, and was ordered to pay restitution of $57,949, for his participation in identity theft schemes involving fraudulent income tax refunds and Social Security benefits.

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), Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, Thomas Caul, Special Agent in Charge, Social Security Administration (SSA), Office of Inspector General (OIG), and Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), made the announcement.

Sheldon Mozie, II, 23, previously pled guilty to one count of wire fraud and one count of aggravated identity theft.

According to court documents, law enforcement executed a search warrant at Mozie’s residence and seized papers/notes containing at least 182 victims’ personal identifying information (PII), a thumb drive containing at least 99 additional victims, Mozie’s computer,  and debit cards.  Computer forensic investigators determined that Mozie’s computer contained the PII of many of the same victims’ that were found in the notes/papers in Mozie’s bedroom, in addition to other victims’ PII.  Mozie filed 49 federal income tax returns for tax year 2013 using the PII of many of the victims that were found on the papers/notes in his bedroom. Between February 10, 2014 and May 6, 2014, for the tax year 2013, Mozie claimed $208,559 on the fraudulent tax returns.

Mozie also utilized the stolen PII to divert Social Security benefit payments to himself that belonged to additional identity theft victims.  To accomplish this scheme, Mozie logged onto the Social Security Administration website, “my Social Security,” with the victims’ names, dates of birth and Social Security numbers to open online accounts in those victims’ identities.  Once the online accounts were opened, Mozie was able to divert the Social Security benefit payments from the victims to himself by having the funds deposited onto prepaid debit cards (mostly Green Dot cards) or by directly depositing the funds into his personal bank account. Between September 2013 and May 2014, Mozie diverted approximately $25,027 in Social Security benefits to himself.

Mr. Ferrer commended the investigative efforts of IRS-CI, the USSS, SSA-OIG, and BSO.  The case is being prosecuted by Assistant U.S. Attorney Alicia E. Shick.

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

A Broward county resident was sentenced by United States District Judge Beth Bloom in Fort Lauderdale to 71 months imprisonment, followed by three years of supervised release, for his participation in a fraudulent international lottery scheme that targeted senior citizens living in the United States.

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

            On January 23, 2015, Mikhail Gorbachev George Williams, 26, of Fort Lauderdale, pled guilty to one count of conspiracy to commit wire fraud.

            According to court documents and statements made in court, Williams participated in a fraudulent lottery scheme, emanating from Jamaica, in which elderly victims throughout the United States were falsely told that they had won a lottery/sweepstake contest.  Williams and his co-conspirators sent letters and made multiple telephone calls to the victims, wherein they fraudulently claimed to be representatives of the sweepstakes/lottery company that was to award the prize monies.  The victims were told that in order to claim their winnings, they had to pay taxes, duties or fees.  The co-conspirators directed the victims to pay Williams in order to receive their purported winnings.  The elderly victims were induced to send thousands of dollars to cover bogus fees, taxes and insurance for the fraudulent lottery winnings.  The victims paid Williams by wire transfers, money orders, U.S. currency, and checks.  Payment was made though the U.S. mail and by prepaid debit cards.

Mr. Ferrer commended the investigative efforts of the U.S. Postal Inspection Service and ICE-HSI. The case is being prosecuted by Assistant U.S. Attorney Bertha R. Mitrani.

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 pled guilty 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, 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.

Sentencing is scheduled for June 11, 2015 at 9:30 a.m.  At sentencing, Worthy faces 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 IRS-CI and the FBI.  This case is being prosecuted by Assistant U.S. Attorney Cynthia R. Wood.

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

A Miami-Dade Police Department Officer was arrested for participating in a fraud scheme.

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

Rafael Duran, 43, of Miami, made his initial appearance before U.S. Magistrate Jonathan Goodman.  Duran’s arraignment is scheduled for April 16, 2015.

Duran is charged, by indictment, with conspiracy to commit wire fraud and wire fraud offenses, punishable by up to twenty years in prison.

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

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

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

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

Two South Florida residents were sentenced to 60 months imprisonment, followed by three years of supervised release, by United States District Judge Jose E. Martinez, for their involvement in a fraud scheme involving vacation rental units. 

            Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Timothy Mowery, Special Agent in Charge, Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG), made the announcement.

According to court documents and statements made in court, Barry J. Graham, 59, and Ricky Lynn Stokes, 54, both of Ft. Myers, Florida, participated in a $300 million Ponzi scheme involving the sale of Cay Clubs Resorts and Marinas (Cay Clubs) vacation rental units to approximately 1,400 investors in the Florida Keys and elsewhere.  The Cay Clubs business operated from 2004 through 2008, out of offices in the Florida Keys and Clearwater, Florida. Graham was the Director of Sales for Cay Clubs from 2004 through late 2007.  From September 2005 to 2008, Stokes was one of Cay Clubs’ highest-producing sales agents and was Cay Clubs’ Director of Investor Relations.

Cay Clubs marketed vacation rental units, in seventeen locations throughout Florida, Las Vegas and the Caribbean, to investors throughout the United States.  Cay Clubs promised to develop dilapidated properties into luxury resorts.  They also promised investors an upfront “leaseback” payment of 15 to 20% of the unit’s sales price, at the time of closing.  Once an investor agreed to purchase a unit, Cay Clubs arranged for a real estate closing and lender financing.  Clay Clubs would not disclose the leaseback payment and other financial inducements to the borrowers, on paperwork submitted to lending institutions.

Graham and Stokes conspired with others to fraudulently inflate the prices of Cay Clubs units through insider sales.  Graham, Stokes and other insiders purchased units from Cay Clubs without disclosing their affiliation with Cay Clubs.  Thereafter, these insider sale prices were used on marketing materials to make it appear to investors that the Cay Clubs units were rapidly increasing in price.  Stokes, Graham, and others created and distributed marketing materials that contained false and misleading statements in order to induce investors to purchase units. Furthermore, as Cay Clubs experienced financial difficulties, Graham, Stokes and others conspired to fraudulently market the Cay Clubs investment to new investors by making false and misleading statements, including by concealing Cay Clubs’ failure to convert dilapidated properties into luxury resorts.

During the course of the fraud scheme, Graham and Stokes received approximately $6.5 and $6.2 million, respectively, in real estate commissions or referral fees from Cay Clubs’ affiliated accounts.

            On September 16, 2014, co-conspirators Fred Davis Clark, Jr., a/k/a Dave Clark, 56, and Cristal R. Clark, a/k/a Cristal R. Coleman, 41, both formerly from Monroe County, were charged by Superseding Indictment with conspiracy to commit bank fraud and substantive counts of bank fraud, in connection with their alleged participation in the Cay Clubs Ponzi scheme.  Dave Clark and Cristal Clark are scheduled for trial before United States District Judge Jose E. Martinez, in Miami, on June 1, 2015.

            Mr. Ferrer commended the investigative efforts of IRS-CI, ICE-HSI and FHFA-OIG, and the assistance of the SEC Miami Regional Office in this matter.  The matter is being prosecuted by Assistant U.S. Attorneys Jerrob Duffy and Thomas A. Watts-FitzGerald.

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 who operated various tax preparation businesses was sentenced to 70 months in prison, followed by three years of supervised release, and was ordered to pay restitution in the amount of $279,903.

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.

Julio Lugo, 38, previously pled guilty to one count of conspiracy to defraud the government with respect to claims and one count of aggravated identity theft.

According to court documents, Lugo operated various tax preparation businesses including #1 Tax Specialist, The Number One Tax Specialist, and Number Two Tax Specialist. Light House Refund, which was another tax preparation business, obtained an Electronic Filing Identification Number (EFIN) from the IRS to electronically file clients' income tax returns. Lugo used the EFIN for Light House Refund to file 48 fraudulent tax returns using stolen identities, and obtained tax refunds to which he was not entitled.

Co-defendant Jamar James was sentenced to two years of probation.  James previously pled guilty to one count of making a false statement to a federal agency.

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

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 New York City Police Officer pled guilty today to one count of conspiracy to possess with intent to distribute five kilograms or more of cocaine.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Adolphus Wright, Acting Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, and John Brooks, Chief, Sunrise Police Department, made the announcement.

Phillip Leroy, 28, of Queens, New York, pled guilty to conspiring to possess with the intent to distribute multiple kilograms of cocaine.  According to the stipulated factual basis, beginning in November 2014, an undercover officer engaged in a series of telephone conversations with co-defendant Richard Quintanilla to arrange the sale of ten kilograms of cocaine to Leroy and co-defendant Brian Espinal, in exchange for $200,000.  On November 30, 2014, Leroy and Espinal drove from New York to South Florida, and on December 1, 2014, Leroy, Espinal and Quintanilla met with the undercover officer in order to facilitate the drug transaction.  At the meeting location, Leroy and Espinal retrived approximately $200,000 from the back of their vehicle and provided it to the undercover officer in exchange for ten kilograms of cocaine.  Leroy and Espinal then concealed the cocaine inside a hidden compartment located in the center console of their vehicle.  As Leroy and Espinal prepared to leave the scene, they were apprehended.  A loaded, 9 mm handgun, with one round in the chamber, was recovered underneath Leroy’s seat.  The firearm was Leroy’s off-duty service revolver.  Leroy admitted that he accompanied Espinal to Florida in order to purchase multiple kilograms of cocaine that they intended to transport back to New York.

Sentencing is scheduled for June 5, 2015 at 1:15 p.m. before United States District Judge William P. Dimitrouleas.  At sentencing, Leroy faces a minimum mandatory sentence of ten  years and a possible maximum sentence of life in prison.  Leroy’s co-conspirators, Brian Espinal and Richard Quintanilla, previously pled guilty to conspiracy to possess with intent to distribute five kilograms or more of cocaine and are scheduled to be sentenced on May 15 and 18, 2014, respectively.  

Mr. Ferrer commended the investigative efforts of the DEA and Sunrise Police Department.  This case is being prosecuted by Assistant U.S. Attorney Corey Steinberg.

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, Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations (OLRFI-Miami), Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), Jesse Panuccio, Executive Director, State of Florida’s Department of Economic Opportunity (DEO), and Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), made the announcement.

Cora Eutsay, 50, of Miami, was charged by criminal complaint with trafficking in and using unauthorized access devices to obtain anything of value, aggregating $1,000 or more in a one year period.

As alleged in the complaint, Eutsay worked for CareerSource South Florida in the Opa Locka office.  During her employment, Eutsay sought and inappropriately obtained access to the Department of Children and Families’ ACCESS Florida System, a State database containing the personally identifying information, including names, dates of birth, and social security numbers (“PII”) of individuals who applied for public benefits in Florida.  Eutsay’s employment credentials were used on several occasions to run queries in the ACCESS Florida database for the PII of persons who had previously applied for public benefits.  Eutsay then sold the PII of more than 200 individuals.

Mr. Ferrer commended the investigative efforts of the U.S. Department of Labor, Office of Inspector General, OLRFI-Miami, IRS-CI, USSS, DEO and BSO.  The case is being prosecuted by Assistant U.S. Attorney Jaime Galvin.

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

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

Former North Miami Mayor was sentenced by United States District Judge Robert N. Scola for her participation in a multi-million dollar mortgage fraud scheme.

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

Following a federal jury trial, Marie Lucie Tondreau, a/k/a “Lucie Tondreau,” 54, of North Miami, was convicted of one count of conspiracy to commit wire fraud and four counts of wire fraud. As shown at trial, between December 2005 and May 2008, Tondreau and her co-defendants Karl Oreste, 56, of Miramar, Florida, and Okechukwu Josiah Odunna, a/k/a “O.J. Odunna,” 49, of Lauderdale, Florida orchestrated a mortgage fraud scheme.

Oreste, president of KMC Mortgage Corporation of Florida (KMC Mortgage), a mortgage lending business in North Miami Beach, identified residential properties in South Florida that were for sale. Oreste and Tondreau, who at the time was a community activist, hosted several radio show programs in the South Florida area in which they advertised the services offered by KMC Mortgage. Oreste and Tondreau recruited and paid some of the listeners who responded to those advertisements, as well as other individuals, to pose as borrowers to purchase properties identified by Oreste.

Oreste, Odunna, and other co-conspirators prepared or caused to be prepared loan applications on behalf of straw borrowers recruited by Oreste and Tondreau. Odunna was an attorney, previously licensed to practice law in the State of Florida, and president of O.J. Odunna, P.A. and Direct Title and Escrow Services (Direct Title). The loan applications included false information relating to employment, wages, assets and the purchaser’s intent to maintain the purchased property as a primary residence. The loan applications and supporting documents were submitted by the co-conspirators to various mortgage lenders, throughout the United States. Once the loan applications were approved, Tondreau wired funds to O.J. Odunna, P.A., Direct Title, or other title companies for the closing costs.

In some instances Oreste, Odunna and other co-conspirators created and submitted duplicate HUD-Settlement Statement Forms, which grossly inflated the true purchase price of the properties. The HUD-1 Settlement Statements also falsely represented to the mortgage lenders that the straw borrowers had met their down payment and cash to close obligations, when in truth and fact, the straw borrowers had never made any such payments.

At closing, a portion of loan proceeds were disbursed to Oreste through his company, JR Investment and Mortgage Corporation, or other bank accounts he controlled. In some instances, a portion of the loan proceeds were diverted to accounts controlled by O.J. Odunna, P.A. and Direct Title. Oreste disbursed some of the proceeds that he received to pay recruiters, such as Tondreau and co-conspirator Kelly Augustin, and straw borrowers. Oreste also transferred a substantial portion of the funds to the bank account of LTO Investment Corporation, a company controlled by Tondreau. Tondreau used the deposited funds to make payments on the fraudulently obtained mortgages, maintain the loans and use the monies for her own personal benefit.

Over the course of the mortgage fraud scheme, Tondreau was involved in obtaining 13 loans for which the lenders suffered approximately $8,000,000 in losses. Of the proceeds from the fraudulent scheme, more than $300,000 was deposited into Tondreau’s business account and an additional $100,000 into her personal bank accounts.

Tondreau was sentenced to 65 months imprisonment, followed by 5 years of supervised release. A restitution hearing has been scheduled for Friday, May 22, 2015, before the Honorable Judge Scola.

In February 2015, Oreste was sentenced to 100 months imprisonment, to be followed by 5 years of supervised release. Oreste was further ordered to pay $8,215,197.28 in restitution.

Odunna and Augustin were indicted and remain fugitives.

Mr. Ferrer commended the investigative efforts of the FBI and Florida Office of Financial Regulation. The case is being prosecuted by Assistant U.S. Attorney Lois Foster-Steers and Gera R. Peoples.

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

Two Broward County residents were sentenced by U.S. District Court Judge Jose E. Martinez, in Key West, Florida, for conspiring to illegally sell wildlife.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Tracy Dunn, Assistant Director, National Oceanic and Atmospheric Administration (NOAA) Fisheries Office of Law Enforcement, and David Pharo, Resident Agent in Charge, United States Fish and Wildlife Service, Office of Law Enforcement, made the announcement.

Robert V. Kelton, 60, of Hollywood, Florida, and Bruce Brande, 59, of Cooper City, Florida, conspired together and with others to transport, sell, receive, acquire, and purchase live rock and invertebrates, specifically Ricordea florida, with a fair market value in excess of $350.00, knowing the wildlife was taken, possessed, transported, or sold, in violation of the laws and regulations of the State of Florida. Kelton and Brande also knowingly made and submitted false declarations to the United States Fish and Wildlife Service which understated the value of the wildlife which was intended to be imported, transported, sold, purchased, and received from a foreign country.

According to court documents and statements made in court, beginning in October 2006 Kelton and Brande conspired with different marine life collectors to purchase quantities of live rock with attached marine life, such as Ricordea florida, which was illegally harvested and transported from the Florida Keys National Marine Sanctuary (FKNMS). Live rock is an essential building block of the reef system of the Florida Keys. Through October 2010, Kelton produced numerous false invoices, in order to conceal the transactions. The fraudulent invoices documented sales of live rock with marine life attached, purportedly imported from Haiti, to marine life collectors, when in truth and in fact the products were actually harvested from the FKNMS. Records seized by federal agents indicated that Kelton and Brande had made $37,108.41 in sales, at wholesale prices, of live rock with Ricordea and other marine life through a former Miami business, D. R. Imports, Inc. (DRI). The records also showed that that from November 12, 2008, through 2010, 11,567 Ricordea polyps were sold to DRI at a wholesale price of $38,637.50. Half of the wholesale price is attributable to live rock that was illegally harvested from the FKNMS.

From February 2011 through May 2011, Kelton and Brande shipped and sold through interstate commerce to a dealer in Rhinelander, Wisconsin, large pieces of live rock, bearing Ricordea florida and Zoanthus pulchellus, at a wholesale value of almost $5,000. Kelton and Brande knew that the live rock had been illegally harvested from the FKNMS but it was falsely advertised for sale as having originated from Haiti.

Pursuant to the Florida Keys National Marine Sanctuary and Protection Act and the National Marine Sanctuary Act, the NOAA has established regulations governing the conduct of activities within the Sanctuary. Title 15, Code of Federal Regulations, Section 922.163(a)(2) prohibits the removal of, injury to, or possession of coral or live rock. Section 922.163(a)(2)(I) prohibits moving, removing, taking, harvesting, damaging, disturbing, breaking, cutting, or otherwise injuring any living or dead coral or coral formation, or attempting any of these activities.

Florida Administrative Code, Section 68B-42.008, prohibits the harvesting of live rock. Florida Statute 370.07 requires that a person who sells salt water marine related wildlife, such as Ricordea florida, hold a State wholesale and retail license. None of the individuals and corporations referenced herein, including Kelton and Brande, were authorized to harvest or attempt to harvest any live rock from the FKNMS or State waters during the aforementioned time, nor did they hold the marine related wholesale and retail permits required by Florida Statute 370.07

From January 2009 through December 2012, Kelton and Brande made and submitted fraudulent declarations to the U.S. Fish and Wildlife Service and Customs and Border Protection in order to secure clearance of marine wildlife shipments imported from the Dominican Republic and Haiti for commercial re-sale. The investigation revealed that importations from the Dominican Republic and Haiti businesses, for which a second set of “supplier’s” invoices existed at DRI, reflected commercial values significantly higher than on the invoices and records submitted by Kelton and Brande on DRI’s behalf. The value declared to the federal agencies during the course of the presentation of the importations for clearance was intentionally understated by $352,594.

Kelton was sentenced to a concurrent term of two years imprisonment, followed by three years of supervised release thereafter.

Brande was sentenced to one year and one day, followed by one year of supervised release.

Mr. Ferrer commended the joint investigative efforts of the NOAA Office of Law Enforcement, analysts with the NOAA Office of Law Enforcement Crime Trade Analyst Team, and the U.S. Fish & Wildlife Service Office of Law Enforcement who participated in the long-term investigation into the illegal harvesting and sale of marine life resources from the Florida Keys known as Operation Rock Bottom. This case was prosecuted by Assistant U.S. Attorney Thomas Watts-Fitzgerald.

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

A Canadian citizen pled guilty to all four counts of a superseding indictment, which included two counts of enticing a person under the age of 18 to engage in sexual activity, one count of traveling to the United States for purposes of engaging in illicit sexual conduct with a person under the age of 18, and one count of knowingly transporting a visual depiction of a minor engaged in sexually explicit conduct, by means of interstate or foreign commerce.

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), and Scott Friedman, Assistant Special Agent in Charge, Florida Department of Law Enforcement (FDLE), made the announcement.

According to court documents and statements made in court, law enforcement agents established an undercover account on a social networking site for the purpose of finding individuals interested in engaging in sexual activity with underage children.

On October 9, 2014, Rene Roberge, 47, a user of the social networking site, sent a message to an undercover agent requesting a meeting with him and his minor son. Roberge stated that he was willing to travel from Canada to Florida for the meeting.

Between October 9, 2014 and November 7, 2014, Roberge utilized the social networking site and email communications to finalize his plans to travel from Canada to Florida, in order to engage in sexual activity with the undercover agent’s son, a person he believed to be 14 years of age. Roberge made reservations to stay at a hotel in Pompano Beach, Florida.

On November 9, 2014, Roberge flew into the United States and arrived at Fort Lauderdale-Hollywood International Airport. Roberge was apprehended and admitted to law enforcement that he had communicated with the undercover agent and his minor son via the internet. Roberge also admitted that he had booked flight and hotel reservations for the purpose of having sexual relations with the son in Florida. Roberge also admitted that he had planned to travel to Texas, following his visit to Florida, so that he could engage in sexual activity with a 15 year old boy he had met on the social networking site.

A forensic examination of the iPad Roberge had brought into the United States revealed between 150 and 300 files containing child pornography images.

Roberge is scheduled to be sentenced on June 4, 2015 at 2:00 p.m., by U.S. District Judge Michael K. Moore. At sentencing, Roberge faces a mandatory minimum term of 10 years imprisonment up to a statutory maximum term of life imprisonment.

Mr. Ferrer commended the investigative efforts of ICE-HSI, U.S. Customs and Border Protection, and FDLE. This case is being prosecuted by Assistant U.S. Attorney Francis Viamontes.

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

Three individuals, including a former employee of the U.S. Postal Service, have pled guilty based on their participation in an identity theft tax refund fraud scheme.

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

Shawn Hawes, 34, of Miami, Florida, Toni Sophia Yates, 28, of Hollywood, Florida, and Kelly Urseles Roberts, 39, of Miami, Florida, each pled guilty to one count of aggravated identity theft. Hawes and Yates also pled guilty to one count of possession of fifteen or more unauthorized access devices. Roberts also pled guilty to one count of theft of government property.

According to court documents, law enforcement executed a search warrant at a storage unit rented to Yates. Hawes used this storage unit with Yates. During a search of the unit, law enforcement found, among other things, notebooks containing handwritten personal identifying information, including the social security numbers of approximately 600 individuals. In addition, law enforcement found equipment capable of creating false identification documents and credit/debit cards, and actual false identification documents and credit/debit cards. Yates name was embossed on a number of the cards. Inside one of the notebooks was the social security number of an individual who had a tax return filed on his behalf in 2014. The refund associated with this return had been direct deposited into Hawes’ bank account. This individual did not authorize Hawes or Yates to possess or use his personally identifiable information.

Defendant Hawes was arrested for, among other things, possession of stolen tax refund checks issued by the United States Treasury Department. Following Hawes’ arrest, law enforcement began focusing on who provided the treasury checks to Hawes. Law enforcement suspected that this source was a mail carrier because Hawes had referred to the course as the “postman.” Yates called a cooperating defendant and asked him if he was interested in buying more checks from the postman. The cooperating defendant said that he was interested. Ultimately, Roberts met with the cooperating defendant on three separate occasions and sold him a total of nine treasury checks.

Yates is scheduled to be sentenced on May 12, 2015 at 8:30 a.m. Roberts is scheduled to be sentenced on May 13, 2015 at 8:30 a.m. Hawes is scheduled to be sentenced on May 27, 2015 at 8:30 a.m. Each defendant will be sentenced by U.S. District Judge Cecilia M. Altonaga. At sentencing, each defendant faces a maximum of ten years in prison for the theft of government property and access device charges, 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 IRS-CI, FBI, USPIS, and United States Postal Service Office of Inspector General. This case is being prosecuted by Assistant U.S. Attorney John R. Byrne.

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

Two former City of Miami Public Service Aides (PSA) and four two truck drivers were arrested this morning for their alleged participation in a kickback/bribery scheme, in which the four tow truck drivers allegedly paid the PSAs thousands of dollars in a series of bribes over a multi-year period. In exchange for the payment, the PSAs allegedly provided to the drivers real-time accident location information that they had obtained from police computer software programs.

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

City of Miami PSA Aristides Paulino, 31, City of Miami PSA Keri Dixon, 27, Jesus Tello, 29, Reinaldo Martin Cruz, 30, Ronald Alfaro, 27, and Michael Perez, 22, were charged by complaint with conspiring to commit wire fraud and pay bribes related to local agencies receiving federal funds.

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

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

The complaint also alleges that at the times when PSAs Paulino and Dixon were present at the accident locations, Paulino and Dixon actively assisted the tow truck operators in soliciting business from the stranded individuals. The particular collision repair business that profited from the illegal tows would then pay a kickback to the tow truck operators and PSAs so that they too would be enriched from their participation in the illegal scheme.

“After an accident, individuals are concerned with their well-being and the well-being of the other accident victims. The two Public Service Aides and four tow truck drivers arrested today used these concerns to violate their positions for illicit profit,” said U.S. Attorney Wifredo Ferrer. “The residents of Miami have a choice. If you are in an accident and a tow truck operator that you have not called arrives, know that you have the right to refuse that operator’s service. As the charges filed today demonstrate, we are committed to unraveling this scheme to bring those who target accident victims to justice.”

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

A criminal complaint is only an accusation and a defendant is presumed innocent unless and until proven guilty.

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

Former Broward County resident sentenced to 25 years imprisonment for robbing five banks located in Broward County, and his attempted robbery of a bank located in Tamarac.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, and Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), made the announcement.

United States Judge James I. Cohn sentenced Jeffrey Ross, 28, to 199 months imprisonment, consecutive to a 101 month sentence Ross is currently serving out of the Eastern District of Michigan. The evidence established that in September 2012, Ross attempted to rob a bank in Tamarac. During the robbery, he displayed a firearm that was concealed in his waistband and demanded that the bank teller give him money. When the teller was slow to respond, Ross fled the bank to avoid apprehension. From October 19, 2012 through February 28, 2013, Ross robbed five banks in Broward County. During each of the robberies, Ross displayed a firearm that was concealed in his waistband. In total, Ross stole $9,646.

After the last robbery, Ross fled to Michigan where he committed another bank robbery in July 2013. During that robbery, Ross pointed a firearm at bank employees and stole $4,350. Ross then ordered all the employees into the bank vault before he fled the scene. After a foot pursuit and area canvas by the police, law enforcement apprehended Ross in the bushes next to a building located near the bank. After pleading guilty in Michigan and being sentenced to 101 month, Ross was extradited to South Florida to face charges.

U.S. Attorney Wifredo Ferrer commended the FBI’s Violent Crime Task Force, BSO, and the Ft. Lauderdale Police Departments for their investigative efforts on this matter. The FBI’s Violent Crime Task Force includes members from the FBI, BSO, and other local police departments. This case was prosecuted by Assistant U.S. Attorney Mark Dispoto.

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

A Miami resident was sentenced to 27 months in prison, followed by one year of supervised release, and was ordered to pay restitution of $196,645 to the Internal Revenue Service.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Robert C. Erickson, Deputy Inspector General, General Services Administration Office of the Inspector General (GSA-OIG), made the announcement.

Danilo Santos, 52, previously pled guilty to three counts of filing a false federal income tax return and one count of failure to file a federal income tax return.

According to court documents, in 2009 and 2010, Santos was president and 100% shareholder of Santos Auction USA, Inc. Santos falsely represented to the public that he was associated with the General Services Administration and that he could arrange to sell government seized properties, including boats and automobiles, at bargain prices, prior to the items being offered for auction. An investigation by the General Services Administration Office of the Inspector General revealed that in 2009 and 2010, Santos defrauded a number of his clients by representing to them that he was buying government seized properties for them and then failing to deliver the properties or return the funds that Santos received from the clients. Subsequent prosecution of Santos by the State of Florida resulted in his paying court-ordered restitution to some of these clients.

Court documents state that IRS reviewed Santos’ personal and business bank accounts, interviewed individuals who paid Santos to purchase properties for them, and examined the tax returns filed by Santos. Santos filed false individual and corporate income tax returns for calendar year 2009, and filed a false individual income tax return for calendar year 2010. Santos failed to file a corporate income tax return for calendar year 2010.

Mr. Ferrer commended the outstanding investigative efforts of IRS-CI and GSA-OIG. The case was prosecuted by Assistant U.S. Attorney Robert J. Lehner.

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

After a three-day trial, a federal jury 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.

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.

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 $61,000.00, that had been issued to a victim-taxpayer with the initials E.R.L. An aggregate amount of tax refunds in the amount of $63,000.00 was deposited into Johnson’s account.

At sentencing, which is currently set for May 27, 2015 at 1:30 p.m., before U.S. District Judge Jose E. Martinez, Johnson faces a maximum term of 10 years in prison.

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.

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

A Pompano Beach, Florida, resident was charged by Information yesterday in Fort Lauderdale with possessing and passing counterfeit currency.

Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Paula A. Reid, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, and William R. Latchford, Chief, Seminole Police Department, made the announcement.

Bernardo Lecaros, 35, was arrested by the Seminole Police Department and the U.S. Secret Service on December 20, 2014, for passing counterfeit notes at the Seminole Classic Casino in Hollywood, Florida.

According to the documents filed with the court, on both December 10, 2014 and December 14, 2014, Lecaros passed $5,400 in counterfeit currency at the Seminole Classic Casino. Lecaros possessed an additional $37,800 in counterfeit currency. If convicted, Lecaros faces up to twenty years imprisonment, three years of supervised release, a $250,000 fine and restitution as to each count.

Mr. Ferrer commended the investigative efforts of USSS and the Seminole Police Department. The case is being prosecuted by Assistant U.S. Attorney Randy Katz.

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

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

Wilfredo A. Ferrer, United States Attorney for the Southern District of Florida, David Pharo, Resident Agent in Charge, U.S. Fish & Wildlife Service (FWS), Miami Area Office of Law Enforcement, Thomas Tidwell, Resident Agent in Charge, U.S. Fish & Wildlife Service (FWS), Denver Area Office of Law Enforcement, FWS, and Tracy Dunn, Assistant Director, NOAA Fisheries Office of Law Enforcement, announced that Curtis W. Waters, 58, of Weeki Wachee, Florida, was sentenced for engaging in conduct that involved the sale and purchase of, and intent to sell and purchase, wildlife with a market value in excess of $350.00, that is, approximately 150 specimens of Ricordea florida, and did knowingly sell said wildlife in interstate commerce, knowing it was taken, possessed, transported, and sold in violation of and in a manner unlawful under the laws of the State of Florida, specifically, Florida Statute Section 379.361(2)(f), in violation of the Lacey Act, Title 16, United States Code, Sections 3372(a)(2)(A) and 3373(d)(1)(B), and Title 18, United States Code, Section 2.

U.S. District Court Judge James Lawrence King sentenced Waters to three months home confinement and a three year period of probation, but did not impose a fine after determining that Waters did not possess the resources to pay a criminal assessment. As a further consequence of his federal conviction, the Florida Fish & Wildlife Conservation Commission revoked all of Waters’ remaining licenses, and prohibited his transfer of the valuable “Marine Life Dive” endorsement he had held during the period of the criminal conduct.

According to the allegations of the Information filed against him, and a Joint Factual Statement submitted by the parties, at the relevant times, Waters, was a resident of Hernando County, Florida, and the holder of a Saltwater Products License (SPL) issued by the Florida Fish & Wildlife Conservation Commission (FWCC), which authorized him, among other things, to harvest live Ricordea florida, a corallimorph species native to the salt water reefs of South Florida.

The representative charge in the case noted that in August 2013, Waters called an individual in Colorado, with whom he had prior business dealings, stating that Waters would be in the Florida Keys shortly collecting marine specimens and offering to sell “more” Ricordea florida. At the direction of FWS agents, the cooperator ordered 150 ricordea. Waters advised he planned to ship the ricordea by September 3, 2013 at a price of $4.00 each for the ricordea.

Through surveillance and information provided by witnesses, the investigating agents determined that in order to conduct the harvest of Ricordea florida, Waters towed a boat from his residence to the Keys. The Joint Factual Statement further stated that on September 2, 2013, Waters called the buyer, confirming the order of 150 ricordea would be sent via Fed-Ex the following day. On September 4 a package from Waters was delivered via Fed-Ex to the Colorado address. Included in the shipment was an invoice for 150 ricordea at $4.00 each, for a total of $600.00, and a pre-completed bank deposit slip for Waters’s bank account for a deposit of $600.00. FWS Agents deposited $600.00 cash into the bank account associated with the deposit slip. Further evidence in the case established that during the relevant period, Waters illegally sold approximately 2,600 of the ricordea to a number of out-of-state buyers.

Mr. Ferrer commended the investigative efforts of the U.S. Fish & Wildlife Service Office of Law Enforcement and the NOAA Office of Law Enforcement who participated in the long-term investigation into the illegal harvesting and sale of marine life resources from the Florida Keys known as Operation Rock Bottom. This matter was prosecuted by Assistant U.S. Attorneys Thomas Watts-FitzGerald and Antonia Barnes.

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

Younger Sibling Plotted to Attack New York City with a Weapon of Mass Destruction

U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General for National Security John Carlin, Director Stacia A. Hylton of the U.S. Marshals Service, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and members of the South Florida Joint Terrorism Task Force (JTTF) announced today that Raees Alam Qazi and his brother, Sheheryar Alam Qazi, pled guilty to terrorism violations and to assaulting two Deputy U.S. Marshals while in custody.

During the hearing, the Qazi brothers acknowledged 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.

“The plot by Raees Qazi to perform a terrorist attack in New York City – and his older brother’s financial support of that plot – was intended to further Al Qa’ida’s message in the United States,” said U.S. Attorney Ferrer. “The Qazi brothers later attacked federal law enforcement agents. As today’s guilty pleas demonstrate, we will respond by holding those who plan terrorist acts on American soil accountable. This case serves as an example of our commitment to protecting civilians from violent jihadi attacks.”

“With today’s guilty pleas, 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 many agents, analysts, and prosecutors who are responsible for this successful result.”

“The Qazi brothers are a great example why the FBI’s number one priority is counterterrorism. We remain committed in our steadfast efforts to detect, deter and disrupt every threat to the United States,” said Special Agent in Charge George L. Piro of the FBI’s Miami Division.

“Any attempt on the life of a law enforcement official is heinous,” said Director Hylton. “To attempt to murder two Deputy U.S. Marshals while in a federal cellblock is a total disregard for life and the entire judicial process.”

Raees Alam Qazi, 22, and his brother, Sheheryar Alam Qazi, 32, were living in Oakland Park, Florida, in November 2012 when they were arrested and charged with conspiracy to provide material support to terrorists and conspiracy to use a weapon of mass destruction (explosives). In January 2015, a federal grand jury added additional terrorism charges and five counts of conspiracy, assault and attempted murder relating to an attack on two Deputy U.S. Marshals in April 2014 while the Qazis were in federal custody.

Raees Alam Qazi pled 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 foreign terrorist organization and one count of conspiring to assault a federal employee. Under the terms of the plea agreement, the parties jointly agreed to recommend a 32-year prison sentence for Raees Qazi.

Sherheyar Alam Qazi pled 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. Under the terms of the plea agreement, the parties jointly agree to recommend a 17-year prison sentence for Sheryheyar.

The sentencing hearing for both brothers is currently set before U.S. District Judge Beth Bloom on June 5 in the Southern District of Florida.

Raees Alam Qazi and Sheheryar Alam Qazi face a potential statutory maximum sentence of 35 years and 20 years, respectively.

The brothers are naturalized U.S. citizens from Pakistan.

The case was investigated by the FBI’s Miami Field Office and the South Florida JTTF. The case is being prosecuted by Assistant U.S. Attorneys Karen E. Gilbert and Adam S. Fels of the Southern District of Florida, and Trial Attorney Jennifer E. Levy of the Justice Department’s National Security Division.

Attachments:

Factual Basis in Support of Plea - Qazi, Raees Alam (PDF)
PleaAgreement - Qazi, Raees Alam (PDF)
PleaAgreement - Qazi, Sheheryar Alam (PDF)

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

An Okeechobee County man pled guilty today before U.S. Magistrate Court Judge Frank J. Lynch, Jr. to illegal possession of a firearm.

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), Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and Paul C. May, Sheriff, Okeechobee County Sheriff’s Office (OCSO), made the announcement.

Martin Alvarez-Moreno, 34, of Fort Pierce, Florida, pled guilty to an indictment charging him possession of a firearm by an alien illegally/unlawfully in the U.S.

According to the stipulated factual basis, on November 7, 2014, Okeechobee County Sherriff’s Office received a 911 call with a complaint of a domestic disturbance involving Alvarez-Moreno and a firearm. Upon arrival, OCSO Deputy Sheriffs encountered Alvarez-Moreno standing outside the location. After describing the dispute he was having with his wife, Alvarez-Moreno admitted to the deputies that there was a weapon in his nearby vehicle and provided the keys to the vehicle. An OCSO deputy recovered the Marlin Model 881 rifle from inside the vehicle. The complainant, who identified herself as Alvarez-Moreno’s wife did not want to prosecute. Because there were no other witnesses to the altercation, neither party wished to pursue charges, Alvarez-Moreno agreed to leave the premises and OCSO did not make any arrests at that time. The rifle was transported and placed into OCSO’s evidence for safekeeping.

In the following weeks, Alvarez-Moreno and his wife returned to OSCO four times, and provided written statements of Alvarez-Moreno’s ownership, in order for the return of the firearm. OCSO evidence custodians did not release the firearm because Alvarez-Moreno failed to provide documentation, proving that he was authorized to possess and own a firearm, which was manufactured outside the State of Florida. It was later discovered, that Alvarez-Moreno had illegally entered the U.S. by crossing the border in Arizona in March 2003.

Alvarez-Moreno is scheduled to be sentenced on May 8, at 9:30 a.m., before U.S. District Judge Kenneth A. Marra. He faces up to 10 years in prison, followed by up to three years of supervised release, and possible deportation.

Mr. Ferrer commended the investigative efforts of the ICE-HSI, ATF, and OCSO. This case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.

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

A North Miami Beach resident was sentenced today to 96 months imprisonment, to be followed by three years of supervised release, for filing fraudulent unemployment insurance claims using the personal identifying information (PII) of more than 90 individuals.

Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Rafiq Ahmad, Special Agent in Charge, U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Thomas Caul, Special Agent in Charge, Social Security Administration, Office of Inspector General (SSA-OIG), Mario J. Musolino, Acting Commissioner, New York State Department of Labor, Jesse Panuccio, Executive Director, State of Florida Department of Economic Opportunity, and J. Scott Dennis, Chief, North Miami Beach Police Department, made the announcement.

According to court records, from at least as early as December 2013, through the summer of 2014, the unemployment insurance claims of more than 90 victims (utilizing the victims’ respective PII) were submitted online from the residence of Reginald Steele-Nelson, 28. In filing these claims, Steele-Nelson used the victims’ PII, including their names and social security numbers. A federal search warrant was obtained for Steele-Nelson’s residence and was executed on August 21, 2014. On that date, law enforcement officers discovered nearly two thousand pieces of unique PII inside the residence and on Steele-Nelson’s person. Law enforcement officers also located a credit card “skimmer,” a device specifically designed to assist in the creation of fraudulent credit and debit cards. Steele-Nelson filed fraudulent unemployment insurance claims with the states of Florida, New York, and Massachusetts. He also filed fraudulent Social Security claims and redirected legitimate Social Security claims from their intended recipients to accounts he controlled. The amount of the intended loss resulting from Steele-Nelson’s offense was nearly $900,000; when taken with the approximately $236,000 in funds actually paid out during the scheme, Steele-Nelson was held accountable for more than $1,100,000 in loss.

Steele-Nelson previously pled guilty to one count of use of one or more unauthorized access devices to obtain $1,000 in value or more during one calendar year, one count of possession of fifteen or more unauthorized access devices, one count of possession of device making equipment, and three counts of aggravated identity theft. Restitution in the full amount of actual loss, $236,371.45, was ordered by U.S. District Judge Kathleen M. Williams.

Mr. Ferrer commended the investigative efforts of the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, USSS, SSA-OIG, the State of New York Department of Labor, the State of Florida’s Department of Economic Opportunity, and the North Miami Beach Police Department. This case is being prosecuted by Assistant United States Attorneys Ben Widlanski and Jamie R. Galvin.

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

A Miami resident was sentenced to 16 months in prison, followed by two years of supervised release, and was ordered to pay joint and several restitution of $57,000.

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 Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, made the announcement.

Kenol Augustin, 36, was previously convicted by a federal jury of one count of conspiracy to commit access device fraud.

According to court documents and evidence presented at trial, in November 2014, an individual recruited into the scheme searched their employer’s database and accessed the names and Social Security numbers (personal identity information or PII) of individual medical patients. This employee then provided a list of individuals’ PII in exchange for a cash payment made by defendant Augustin. Augustin and his co-conspirators then caused false and fraudulent tax returns seeking refunds to be filed with the Internal Revenue Service using the PII that the conspirators had so obtained.

Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. These cases are being prosecuted by Assistant U.S. Attorneys James V. Hayes and Gera Peoples.

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

Fourteen individuals were arrested today for their alleged participation in a scheme to defraud privately insured health care plans located in Miami-Dade County, including Cigna, Blue Cross Blue Shield (BCBS), United Health Care (UHC), Miami-Dade County Public Schools, City of Miami, Pepsi Co., BJ’s Wholesale Club, Inc., Lincoln Property Company, Macy’s Inc., Nextera Energy Inc., Radioshack Corporation, Sodexo, Inc., Southeast Frozen Foods Company LP, and other self-insured employers which offered Administrative Services Only (ASO) insurance plans to their employees.

ASO insurance plans reimbursed Cigna, BCBS, and UHS for the money paid out by the insurance companies for health benefits for their respective employees. Therefore, the employers acted in a self-insured role; making them financially responsible for any claim payments to their employees.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, Alysa D. Erichs, Special Agent in Charge, United States Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), J.D. Patterson, Director, Miami-Dade Police Department (MDPD), Ian A. Moffett, Chief, Miami-Dade Schools Police Department, Rodolfo Llanes, Chief, Miami Police Department (MPD), and Sergio Velazquez, Chief, Hialeah Police Department, made the announcement.

Reynaldo Castillo, 46, of Hialeah, Hendris Castillo Morales, 33, of Miami, Lisbet Castillo, 23, of Hialeah, Maite Garcia, 40, of Hialeah, Osvaldo Marin Medina, 48, of Hialeah, Alejandro Biart, 40, of Miami, Alejandro Jesus Cura, 47, of Miami, Dania Chavez, 43, of Miami, Ezequiel Severo Casas, 28, of Hialeah, Humberto Martinez Rodriguez, 43, of Hialeah, Jose Gerardo Gonzalez, 23, of Miami, Julio Suarez, 47, of Miami, Nelson Ramos, 56, of Miami, Reinaldo Cinta Gonzalez, 46, of Miami, Rudy N. Dominguez, 25, of Hialeah, and Diulys Martinez, 39, of Miami, were charged with Conspiracy to commit Health Care Fraud and Health Care Fraud in United States v. Reynaldo Castillo, et al., Case No. 15-20144-Cr-Scola. In addition, Maite Garcia was charged with Conspiracy to Pay Health Care Kickbacks and Payment of Kickbacks in Connection with a Federal Health Care Program.

As alleged in the indictment, Reynaldo Castillo, Hendris Castillo Morales, Lisbet Castillo Batista, and Maite Garcia owned and controlled 30 companies based in Miami, Hialeah, Hialeah Lakes, and Doral, Florida. These individuals utilized medical director staffing companies to obtain and misappropriate the names and licensing information for numerous physicians. This information was then used to submit false and fraudulent claims to the private insurance plans.

The indictment further alleges that Alejandro Biart accepted kickbacks from co-conspirators in return for referring Cigna, BCBS, and UHC beneficiaries to the medical clinics controlled by Reynaldo Castillo, Hendris Castillo Morales, Lisbet Castillo Batista, and Maite Garcia. These beneficiaries signed documents falsely and fraudulently representing that they had received medical services when, in fact, they had not received medical services.

The indictment additionally charges Maite Garcia for her role in paying kickbacks and bribes to certain beneficiaries in order to reimburse the beneficiaries for their monthly premium payments to Cigna.

According to the indictment, Osvaldo Marin Medina, Humberto Martinez Rodriguez, Alejandro Jesus Cura, Dania Chavez, Ezequiel Severo Casas, Jose Gerardo Gonzalez, Julio Suarez, Nelson Ramos, Reinaldo Cinta Gonzalez, Rudy N. Dominguez and Duilys Martinez agreed, in exchange for a fee, to have companies be placed in their names, to open bank accounts and check cashing accounts in the names of the companies, and to cash and deposit checks received from Cigna, BCBS, and UHC.

The indictment alleges that as a result of this scheme, Reynaldo Castillo together with his co-conspirators, submitted and caused to be the submitted false and fraudulent claims to private insurance plans, including Cigna, BCBS, UHC, and ASO insurance plans managed by Cigna, BCBS, and UHC, on behalf of the medical clinics seeking approximately $125,676,324.00, as reimbursement for injection treatments, physical therapy treatments, and other medical items and services which were neither ordered by a physician nor provided to a beneficiary as claimed. Based on these false and fraudulent claims, Cigna, BCBS, and UHC, as well as, ASO insurance plans managed by Cigna, BCBS, and UHC, paid the medical clinics approximately $13,853,392.00.

The indictment further alleges that Reynaldo Castillo, Lisbet Castillo Batista, and Hendris Castillo incorporated Investors Group of Florida Corp. to receive proceeds from the medical clinics and utilized those proceeds to purchase real estate properties. Investors Group of Florida Corp. was listed as owner of the purchased real estate properties and acted as the leasing agent. Reynaldo Castillo was the president and registered agent of Investors Group of Florida Corp. The real properties are subject to criminal forfeiture as specified in the indictment.

Osvaldo Marin Medina and Alejandro Biart were also charged in United States v. Ernesto Castillo, et al., Case No. 15-20017-Cr-Ungaro, together with Ernesto Castillo, 43, of Hialeah, and Danny Jacomino Bordon, 50, of Miami, for Conspiracy to Commit Health Care Fraud and Health Care Fraud.

The indictment alleges that Ernesto Castillo, Osvaldo Marin Medina, Alejandro Biart, Danny Jacomino Bordon, and their co-conspirators submitted and caused Amazing Medical Services Inc. (Amazing) to submit claims to Cigna seeking reimbursement in the amount of approximately $1,111,183.00, which claims falsely and fraudulently represented that medical services were prescribed by a doctor and provided to Cigna beneficiaries by Amazing. As a result of such false and fraudulent claims, Cigna made payments to Amazing in the approximate amount of $86,035.00.

The indictment further alleges that Ernesto Castillo, Osvaldo Marin Medina, Alejandro Biart caused Serenity Rehabilitation Center, Inc. (Serenity) to submit fraudulent claims to Cigna seeking reimbursement in approximately $1,806,800.00, which resulted in reimbursement payments to Serenity in the approximate amount of $252,259.00. The defendants also caused World of Rehabilitation Therapy, Inc. (World Rehab) to submit fraudulent claims to Cigna seeking reimbursement in the amount of approximately $2,245,300.00, which resulted in payments to World of Rehab from Cigna in the approximate amount of $889,151.00.

The indictment alleges that defendant Alejandro Biart accepted kickbacks from co-conspirators in return for referring Cigna beneficiaries to Amazing, Serenity, and World of Rehab.

Jose Gerardo Gonzalez, Reynaldo Castillo, Ezequiel Severo Casas, and Danny Jacomino Bordon remain at large.

Mr. Ferrer thanked the FBI, ICE-HIS, MDPD, Miami-Dade Schools Police Department, MPD, and the Hialeah Police Department for their investigative efforts. This case is being prosecuted by Assistant U.S. Attorney Christopher J. Clark.

An indictment is only an accusation and the defendants are presumed innocent until proven guilty.

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

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

Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, J.D. Patterson, Director, Miami-Dade Police Department (MDPD), made the announcement.

Contrell Leo Floyd, a/k/a “Kevin Wells,” 34, was convicted in a two-day trial before U.S. District Judge Federico A. Moreno for being a felon in possession of a firearm. In the early afternoon of October 20, 2014, two Robbery Intervention Detail MDPD Detectives in an unmarked vehicle saw Floyd in front of Brownsville middle school and began to approach Floyd to ask him questions. Before they could speak with him, Floyd quickly stopped, turned toward the car, and pulled up his shirt to flash a handgun that was tucked in his waistband. Immediately upon seeing the gun, one detective drew his weapon and announced “police!” Floyd fled and threw the firearm into a public park in front of Brownsville middle school. The police officers apprehended Floyd after a short pursuit and recovered the loaded handgun.

Floyd had been previously convicted of state felony crimes, including armed robbery with a firearm.

Floyd is scheduled to be sentenced on May 11, 2015, at 10:00 a.m., and faces a minimum sentence of 15 years in prison as an armed career criminal.

Mr. Ferrer commended the investigative efforts of ATF and MDPD. The case is being prosecuted by Assistant U.S. Attorneys Timothy Abraham and Vanessa Snyder.

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

The leader and three other members of Big Money Team (BMT), a violent street gang that operates in the Little Havana and Allapattah neighborhoods of Miami, Florida, have been convicted of drug conspiracy, firearm and violent crime charges following a one month long trial.

Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and Rodolfo Llanes, Chief, City of Miami Police Department (MPD), made the announcement.

Defendants Maurin Chacon a/k/a “Tiny,” a/k/a “Peludo,” a/k/a “Yung Patron,” 27, Christopher Altamirano a.k.a “Tango,” a.k.a “Peter Baitz,” 22, Rodolfo Portela a.k.a “Papo L. Desperado,” 29, and James Dixon a.k.a “Smoke,” 20, each of Miami, Florida, were convicted of conspiracy to possess controlled substances with intent to distribute. Additionally, Chacon, Altamirano and Portela were convicted of possession of firearms in furtherance of drug trafficking or violent crime. Chacon and Portela were also convicted of firearm and ammunition possession by convicted felons. Additionally, Altamirno was also convicted of the commission of violent crime in aid of racketeering, in relation to a November 20, 2013 armed robbery. The charges resulted from a second superseding indictment returned by a federal grand jury on October 3, 2014, following an investigation that began in March of 2013.

During the trial, a civilian witness testified that the BMT “invaded” and “took over” a neighborhood in Little Havana. According to the civilian witness, BMT members robbed and sold narcotics on a daily basis. Through cooperating defendant testimony, the jury heard that members of the BMT gained status within the gang through the commission of violent acts. The trial evidence also included jailhouse phone calls which captured BMT members discussing the operation of their narcotics and prostitution activities, thwarting law enforcement’s investigation of the group, the recovery of a firearm used during a robbery to prevent law enforcement seizure, and the brutal assault of a witness who cooperated with authorities.

Further, the government introduced evidence of BMT’s commitment to criminal activity and long term criminal associations. For example, the government introduced a photograph that Chacon, the leader of the organization, posted on a social media site. The photograph was of Chacon posing in front of the state criminal courthouse and had the underlying caption in which Chacon compared himself to the former leader of the Gambino Crime family, John Gotti. Additional trial evidence included undercover recordings of gang members distributing narcotics and conducting a gun sale.

“The conviction of four violent members of the street gang ‘Big Money Team,’ including the gang’s leader, is a victory for the residents of Little Havana and Allapattah. These gang members used violence to intimidate, harass and oppress our community’s citizens,” said U.S. Attorney Wifredo A. Ferrer. “We will continue to partner with our federal and local law enforcement partners to bring to justice those whose violent criminal conduct and brazen threats paralyze neighborhoods with fear.”

ATF Special Agent in Charge Hugo Barrera stated, “Today’s conviction demonstrates law enforcement’s commitment to disrupt violent criminals that are affecting the quality of life of our law abiding citizens. This illustrates the collaborative teamwork of federal, state and local law enforcement working together to combat violent crime and make our communities safer.”

Miami Police Department Chief of Police Rodolfo Llanes added, “These convictions are a testament to what we can achieve in our efforts to reduce violent crimes, as well as, the surge of dangerous narcotics and illegal weapons when we partner with the community and other law enforcement agencies at all levels, local, state and federal. Together we will make Miami a safer place to live, work, play and visit.”

The investigation identified the convicted gang members, including Chacon, the group’s leader, and their associates with participation in armed street-level drug trafficking. Prior to the jury verdict, the following defendants pled guilty to participating in the gang’s drug trafficking conspiracy:

Dayaan Zequera a.k.a “Dsbf BMT Kid,” 24, Angel Martinez a.k.a “Telly” a.k.a “Tboy,” 22, Miguel Rodriguez a.k.a “Fat Boy,” a.k.a “Barba,” 19, Kevin Diaz, 19, Nadim Guzman, 21, Raymond Moore a/k/a “Flaco,” a/k/a “Dinero Banks,” a.k.a “Young Gunna,” 22, Luis Salas a/k/a “Chico Black,” 22, Christian Ramirez a.k.a “Joker”, 31, Carlos Tinoco a/k/a “C-Lo,” 22, Steven Castro a/k/a “YM Stevo,” 23, Fernando Roberto Darce a/k/a “Bonesz”, 20, and
Mario Balboa, 29, all of Miami.

The defendants face minimum mandatory terms from 10 years to life in prison, with maximum statutory terms varying from 20 years to life in prison for the aforementioned charges.

On June 29, 2015 the following defendants face trial on charges relating to the investigation:

Alioth Salas, a/k/a “Ali,” 27, Joseph Thompson a/k/a “Joe,” 29, Dwight Forte, 22, and
Joel Diaz a/k/a “Borie,” a/k/a “El Paisa,” and a/k/a “Buom Clock,” 25.

Mr. Ferrer commended the investigative efforts of ATF and MPD’s Gang Intelligence Detail through their participation in the Miami-Dade County Multi-Agency Gang Task Force. Mr. Ferrer also thanked the Miami-Dade Police Department’s Robbery Bureau and Street Gang Section, the MPD’s Little Havana Problem Solving Team, the MPD’s Robbery Unit, the Miami-Dade Corrections and Rehabilitation Department’s Security Threat Group Unit and the Miami-Dade State Attorney’s Gang Strike Force. This case is being prosecuted by Assistant U.S. Attorney’s Ignacio J. Vàzquez, Jr. and Ilham Hosseini.

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

A Martin County resident was arrested for running a butane hash oil laboratory and weapons charges.

Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Office, and A.D. Wright, Acting Special Agent in Charge, DEA, Miami Field Division, made the announcement.

Daniel Paul Vranich, 31, of Lake Park, FL, made his initial appearance before U.S. Magistrate Frank J. Lynch Jr., in Fort Pierce, who detained him as a risk of flight and danger to the community, pending a detention hearing. His detention hearing is scheduled for March 13, 2015 and arraignment on March 20, 2015.

Vranich is charged with manufacturing and possession with intent to manufacture, distribute and dispense a controlled substance, punishable by up to five years in prison; endangering human life while illegally manufacturing a controlled substance, punishable by up to ten years in prison; possession of a firearm in furtherance of a drug trafficking crime, punishable by a consecutive five years in prison; possession of a firearm by a convicted felon, punishable by up to ten years in prison.

On December 30th, 2014, at approximately 4:00 a.m., 911 Emergency Services received a call, regarding an explosion originating from an apartment in Stuart, Florida. In the apartment, Stuart Police Department (SPD), Martin County Sheriff’s Office (MCSO), Martin County Fire Rescue (MCFR), Stuart Fire Rescue (SFR) and State Fire Marshal’s Office discovered a smoldering fire and a large industrial vacuum drying oven with a timing device. DEA and Hazardous Material Unit (Hazmat) determined that the chemicals, equipment and other items were consistent of a Butane Hash Oil (BHO) laboratory. A witness identified Daniel Paul Vranich and his girlfriend, as the couple who had been living in the apartment for the past year, with their twin baby girls. SPD detectives found large glass cylinders containing approximately 20 pounds of marijuana, numerous empty butane cans, air pumps/compressors, a 1.9 cubic foot vacuum oven, wax paper with approximately 48 grams of BHO, a food saver sealing machine, two digital scales, electric grinder, money counting machine, vacuum chamber, and numerous containers and storage bags. SPD detectives also found a loaded Sig Sauer .45 caliber pistol and numerous personal documents belonging to Vranich.

According to the criminal complaint, hash oil is a highly potent derivative of marijuana, obtained by extracting the resins containing Tetrahydrocannabinol (THC), the active psychoactive compound, from marijuana buds and plant matter by passing liquid butane through a glass cylinder packed with marijuana plant matter, like those found in Vranich’s apartment. As the butane passes through the cylinder, the crystallized resins containing THC are dissolved in the butane. As the solvent (butane & resins) exits the cylinder, it is caught in a glass container, like that found in Vranich’s apartment. Because butane vapor is extremely volatile, highly flammable and large amounts are required in the process of extracting the resin from the raw marijuana, explosions and fires from accidents have resulted in the destruction of property, severe injuries and even death.

Mr. Ferrer commended the investigative efforts of the ATF, DEA, SPD, MCSO, MCFR, SFR and State Fire Marshal’s Office. This case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.

A complaint is only an accusation, and a defendant is presumed innocent unless and until proven guilty.

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

Gilbert Fiorentino, 54, and Carl Fiorentino, 57, both of Coral Gables, Florida, were sentenced yesterday in Federal Court in the Southern District of Florida, in connection with their participation in an illegal scheme to obtain more than $11 million dollars in kickbacks and other benefits, and to conceal this illicit income from the IRS, while employed as senior executives at Systemax, Inc. (“Systemax”) and its subsidiary, TigerDirect, Inc. (“TigerDirect”). Carl Fiorentino was sentenced to 80 months’ imprisonment. Gilbert Fiorentino was sentenced to 60 months’ imprisonment. A hearing to determine the remaining amount of restitution owed to Systemax by the defendants, who are brothers, has been scheduled for April 3, 2015.

On December 2, 2014, Carl Fiorentino pleaded guilty to one count of conspiracy to commit mail and wire fraud, and one count of tax evasion, and Gilbert Fiorentino pleaded guilty to one count of conspiracy to commit securities fraud and to impair and impede the lawful functions of the Internal Revenue Service.

The sentences were announced by Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Loretta E. Lynch, United States Attorney for the Eastern District of New York; Diego G. Rodriguez, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office; and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office.

U.S. Attorney Wifredo A. Ferrer stated, “Gilbert and Carl Fiorentino hid their ill-gotten financial gains from the IRS and the shareholders of Systemax. They violated their positions of trust by accepting illegal kickbacks, driving up the price of the consumer electronics and passing the price increase to the consumer. Yesterday’s sentences demonstrate our commitment to root out corporate fraud and enforce the laws that protect investors in financial markets.”

“For years, the brothers Fiorentino financed their luxury lifestyles with illicit kickbacks, all the while concealing their fraudulent gains from the shareholders of Systemax and the IRS. Such illegal self-enrichment, at the expense of a publicly-traded corporation and the IRS, cannot be tolerated,” stated United States Attorney Lynch. “Yesterday’s sentences should serve as a stern reminder that those who commit corporate fraud will be held accountable.”

Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office, stated, “The Fiorentinos financed their extravagant lifestyle with $11 million in kickbacks. These kickbacks paid for, among other things, a waterfront Florida mansion. But the excess ends today. This sentence should put anyone who plans to shakedown shareholders on notice.”

IRS-CI Special Agent-in-Charge Kelly R. Jackson stated, “These high-ranking corporate officials undermined the process of fair and open competition and broke the law when they obtained unlawful kickbacks. They then took steps to hide these kickbacks from Systemax and the IRS. Yesterday’s sentencing sends a clear message to other corporate officials that this type of criminal behavior will be punished. IRS Criminal Investigation will continue to work with its law enforcement partners to investigate corporate officers who misuse their positions of trust and violate the tax laws.”

Systemax had its principal place of business in Port Washington, New York, and sold personal computers and other consumer electronics through its websites, retail stores, and direct mail catalogs including TigerDirect, CompUSA, and Circuit City. In fiscal year 2010, Systemax had annual sales revenue of approximately $3.6 billion according to its public filings. Gilbert Fiorentino was a director of Systemax and was the Chief Executive Officer of its Technology Product Group, including its subsidiary TigerDirect. Carl Fiorentino was the former president of TigerDirect. Both defendants worked at TigerDirect’s Miami offices before they were terminated on April 18, 2011.

As senior executives of Systemax and TigerDirect, Gilbert Fiorentino and Carl Fiorentino had responsibility for, among other things, purchasing and sourcing hundreds of millions of dollars’ worth of computer and electronics items for Systemax and its various operations. Gilbert Fiorentino and Carl Fiorentino conspired with each other and third parties to obtain unlawful kickbacks in exchange for steering business to companies that paid the kickbacks. For example, Carl Fiorentino received millions of dollars in payments from one TigerDirect supplier, including more than $3 million to pay for his waterfront residence in Gables Estates and millions of dollars’ worth of luxury furniture, art, and high-end electronics. Gilbert Fiorentino received hundreds of thousands of dollars in payments. These included deliveries of gold coins, cash handed over in the parking lot of the Miami offices of TigerDirect, and furniture and other goods and services delivered to his Gables Estates waterfront home.

In connection with this scheme, Carl and Gilbert Fiorentino filed false United States Individual Income Tax Returns and also regularly signed conflict of interest questionnaires in which they falsely and fraudulently concealed from Systemax their receipt of cash and other remuneration from vendors who did business with the company. In doing so, they mislead Systemax’s auditors and prevented them from performing accurate reviews and audits of the company’s books, records, and accounts. Additionally, when Carl Fiorentino learned that he was under investigation by the government, he obstructed justice by instructing witnesses to lie to federal authorities to conceal his criminal conduct.

This case was originally investigated by the U.S. Attorney’s Office for the Eastern District of New York with the assistance of the FBI New York Field Office and the IRS-CI Miami Field Office. Carl Fiorentino was previously charged in the Eastern District of New York on June 18, 2013, with conspiracy to commit mail and wire fraud, multiple counts of mail and wire fraud, and money laundering. The case involving Carl Fiorentino was transferred to the Southern District of Florida by court order on January 6, 2014.

The sentence was imposed by United States District Judge Jose E. Martinez.

The matter is being prosecuted by Assistant U.S. Attorneys Jerrob Duffy of the Southern District of Florida and Whitman G.S. Knapp of the Eastern District of New York.

Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement and investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.

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

Stanley P. Phillips, 48, of Dothan, Alabama, was sentenced by U.S. District Judge Beth Bloom to nine years imprisonment after his conviction on eight counts of wire fraud in Fort Lauderdale, Florida. Phillips was convicted on December 11, 2014, after an eleven day jury trial. The jury found that Phillips, an employee of Day and Zimmerman, International (D&Z), a large, multi-national company specializing in construction, engineering, and security for leading corporations and governments around the world, engaged in two schemes in which he attempted to fraudulently obtain almost $650,000.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigations (FBI), Miami Field Office, John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), and Frank Robey, Director, Major Procurement Fraud Unit (MPFU), U.S. Army Criminal Investigation Command, made the announcement.

U.S. Attorney Wifredo A. Ferrer stated “Stanley Phillips stole from his friends, his business partners, and his employer. He used his position of trust to compromise the ability of our military to fund necessary projects. We are committed to work with our law enforcement partners to prosecute those who corrupt the procurement process for their own personal benefit.”

“We cannot tolerate a system where crooked individuals seek to enrich themselves at taxpayer expense,” said Michael A. D’Alonzo, Assistant Special Agent in Charge, FBI Miami. “We will continue to aggressively investigate this type of conduct to ensure that government monies do not fall into the hands of the greedy and dishonest. Anyone who may have information about corruption is encouraged to come forward and report it.”

“Today’s sentencing sends a clear signal to those who defraud the Department of Defense,” said Special Agent in Charge John F. Khin, Defense Criminal Investigative Service (DCIS) Southeast Field Office. “This individual, working in a position of trust, manipulated the contracting process for his own personal gain. DCIS continues to work with our investigative partners to tirelessly investigate the misuse or abuse of American taxpayer dollars needed to support our Warfighters.”

“We are very pleased with the sentencing and as equally proud of the hard work and tireless investigative efforts of our Special Agents,” said Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit. “This sentencing is a strong message to all who would defraud the DoD and the Department of the Army and an example of our continued and relentless commitment to investigate and assist in holding accountable all those who attempt to commit fraud.”

According to evidence presented at trial, in the first scheme, Phillips, used his position as a construction foreman on a D&Z project to build a chemical plant in Pace, Florida, to steal more than $35,000. Phillips did so by convincing AWA Fabrication and Construction, LLC, (AWA) a family-owned vendor company that supplied certain piping materials to D&Z, to “hire” a company called Royal Global Services, LLC to install the piping being supplied. In fact, the installation was done by D&Z employees, and Royal Global Services, LLC was a shell company solely owned by the Phillips.

In the second scheme, Phillips, acting as the construction/site manager for a D&Z project to build a Weak Acetic Acid Recovery Facility Plant (WAARP) at the Holston Army Ammunition Plant in Kingsport, Tennessee, attempted to steal more than $600,000. Phillips did so by convincing a family-owned sub-contractor company called HSIII to “hire” a company called RGS Professional Services, LLC (RGSPS) to ostensibly do work on behalf of HSIII on the WAARP Project. In fact, Phillips was the 51% owner of RGSPS, which was actually a nursing registry not capable of providing any services on the WAARP Project.

Monies from both schemes were deposited into an account in the name of RGS, LLC, which was a separate company Phillips’ controlled but which had been opened in the name of his girlfriend. She was told that the monies were being deposited because Phillips’ was on the secret payroll of Senator Ron Johnson of Wisconsin, and that the money from AWA and HSIII were repayments of loans made to them by Senator Johnson. Phillips maintained the trust of his girlfriend and others by telling them about his association with Senator Johnson, his work for the FBI, his background as a nuclear engineer, and his exploits as part of a secret military team who extracted General Noriega from the jungles of South America. None of this was true. Phillips stipulated that he had no association with any senators of any kind, and no law enforcement connections. He was in fact a high school graduate who had completed two entry level navigation classes while in the Coast Guard. He was discharged in 1986 after only two years because of sleepwalking. Operation Just Cause, in which General Noriega was retrieved, took place in 1989/1990.

In addition to the term of imprisonment, Phillips was also sentenced to three years supervised release, and was ordered to pay restitution to the proprietors of AWA and HSIII.

Mr. Ferrer commended the investigative efforts of the FBI, DCIS, and the U.S. Army Criminal Investigation Command's MPFU. This case is being prosecuted by Assistant U.S. Attorney Carolyn Bell.

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

Jerry Sutherland, 28, of Miami-Dade County, Florida, a former officer with the City of Miami Police Department, pled guilty today to two counts of extortion.

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.

As admitted in Sutherland’s factual proffer in support of his plea of guilty:

In early 2014, Sutherland, who, at the time, was an officer with MPD, managed a football team in his spare time. Sutherland requested that a vendor paint the football team’s helmets free of charge. Subsequently, Sutherland began to demand additional services from the vendor without payment. When the vendor balked at these demands, Sutherland, who erroneously believed that the vendor was involved in an illegal gambling operation that was located adjacent to the vendor’s business in Miami-Dade County, intimated that he would shut down the gambling operation if his demands were not met.

Sutherland represented to the vendor that he would provide the vendor with information about impending surveillance and other operations by MPD in the area of the gambling operation so that the vendor could pass on that information to the owners and operators of the gambling operation.

Several recordings were made of Sutherland receiving 10 bribe payments, many which he received while he was in uniform. Of these payments, 6 were made to Sutherland in exchange for his promise to provide protection for a gambling operation located in Miami-Dade County, that communicated the bets placed there to a gambling establishment in Las Vegas, Nevada; two were made to Sutherland in exchange for his promise to arrange for the dismissal of a criminal court case against an employee of the illegal gambling operation; one was made to Sutherland in exchange for his agreement to increase the visibility of police around a rival gambling location in order to discourage its customers from patronizing that rival location; and the remaining payment was for Sutherland’s promise to provide the vendor with a “case card” with a fictitious case number and officer’s name. Sutherland had been told that the fictitious case card would be used to falsely demonstrate that the gambling operation had been robbed so that the workers could keep for themselves the gambling proceeds that had been made that day. Sutherland received payments which totaled $3,400.

Sutherland is scheduled to be sentenced on May 11, 2015, at 8:30 a.m., before U.S. District Judge Cecilia M. Altonaga.

Mr. Ferrer commended the investigative efforts of the FBI Miami Area Corruption Task Force and the City of Miami Police Department Internal Affairs Section. The case is being prosecuted by Assistant U.S. Attorney Harry C. Wallace, Jr.

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

Three Miami residents were sentenced for their roles in a tax refund scheme, announced U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Principal Deputy Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and Special Agent in Charge Kelly R. Jackson of Internal Revenue Service-Criminal Investigation’s (IRS-CI) Miami Office.

According to the indictment and facts established at his sentencing hearing, Sean Anthony Lopez, 35, of Miami, submitted false personal federal income tax returns claiming $625,320 in fraudulent refunds. Lopez received this refund in connection with his role as a client of an illicit tax preparation business located at 18710 SW 107th Street in Miami. Lopez was sentenced today to serve 30 months in prison. The court also ordered Lopez to pay restitution to the U.S. Treasury in the amount of $695,635.

Lopez’s co-defendants, Claudia Zuloaga, 43, and Sharon Elizabeth Angulo, 49, both of Miami, operated this South Miami-Dade tax preparation business under the names Sterling Executive Associates Inc. and Sterling Executive (Sterling), and assisted Lopez in the preparation of his fraudulent tax returns, as well as numerous other similar false tax returns.

Angulo and Zuloaga were each previously sentenced to serve 60 months in prison. The court also ordered Angulo and Zuloaga to each pay restitution to the U.S. Treasury in the amount of $1,539,873.

According to the indictment and facts established at sentencing, beginning in approximately September 2008 and continuing through September 2012, Zuloaga and Angulo recruited numerous clients, including Lopez, by falsely representing that they could eliminate a substantial portion of their debts by obtaining sizable tax refunds for them. This would be accomplished through false and fraudulent tax returns prepared by Zuloaga and Angulo in exchange for a fee, usually amounting to 30 percent of the fraudulently obtained tax refund. Zuloaga and Angulo were responsible for causing the submission of multiple fraudulent tax returns claiming refunds totaling in excess of $5.4 million. As further established at their sentencing hearings, the IRS was fraudulently induced to issue refund checks in the aggregate amount of $2,305,081, a portion of which was disbursed to Lopez with respect to his fraudulent tax returns.

As further alleged in the indictment and established at their sentencing hearings, the tax returns prepared at Sterling by Zuloaga and Angulo falsely set forth that financial institutions at which the clients maintained accounts withheld sizable amounts of tax from falsely declared interest income, which was falsely claimed as having been earned by the clients. Through this fraudulent mechanism, each return gave the appearance of entitling the client to a significant tax refund due to over-withholding of tax payments in connection with their claimed interest earnings. In addition, in order to provide false substantiation for these fraudulent tax refund claims, the defendants caused fictitious IRS Forms 1099-OID to be created, which set forth the false interest and tax withholding amounts fraudulently reported upon their clients’ tax returns.

It was also established at sentencing hearings that Zuloaga and Angulo promoted the fictitious “redemption theory” to their clients as the purported justification for their fraudulent tax refund claims. Through this promotion, clients were falsely informed that the submission of tax returns in this manner allowed their clients to legitimately access large amounts of money allegedly contained in certain non-existent “straw man” accounts which the defendants claimed were being maintained by the U.S. Treasury for each individual who possessed a social security number.

U.S. Attorney Ferrer and Principal Deputy Assistant Attorney General Ciraolo commended special agents of IRS – Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Peter B. Outerbridge of the Southern District of Florida and Trial Attorney Alexander Effendi of the Tax Division, who prosecuted the case.

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

Three individuals have been arrested – one of whom was arrested in Colombia – for more than $2.4 million in Medicare and Medicaid fraud. The defendants in this case allegedly defrauded Medicaid and Medicare by paying and receiving kickbacks and bribes in return for creating and providing false and fraudulent home health prescriptions and plans of care to patient recruiters and causing the submission of false and fraudulent claims.

Wifredo A. Ferrer, U.S Attorney for the Southern District of Florida, Pam Bondi, Florida Attorney General, and Derrick L. Jackson, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), made the announcement.

Last month, a federal grand jury in Miami returned a four-count indictment charging Dr. Daniel Ronchetta, 77, Chiropractic Physician Assistant John Crowe, 76, and patient recruiter Frank Barrios, 48, for Medicare and Medicaid fraud. The defendants are charged with conspiracy to commit health care fraud and wire fraud, substantive counts of health care fraud, conspiracy to defraud the United States and pay and receive health care kickbacks.

U.S. Attorney Wifredo A. Ferrer stated, “Health care providers should generate business by offering their patients superior care. Financial relationships that put profits over patients undermine the quality and care given to patients and ultimately, the integrity of our public health care program upon which millions of Floridians depend.”

“This was a brazen attempt to get away with stealing millions of taxpayer dollars, but thanks to my Medicaid Fraud Control Unit and strong partnerships with federal authorities, these individuals have been arrested and charged,” said Attorney General Pam Bondi.

“Health care providers that offer or accept kickbacks in exchange for referrals undermine both the public’s trust in medical institutions and the financial integrity of federal health care programs,” said HHS-OIG Special Agent in Charge Derrick L. Jackson. “Our agency will continue to protect both patients and taxpayers by holding those who engage in fraudulent kickback schemes accountable.”

Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,650 defendants who collectively have falsely billed the Medicare program for more than $4.5 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.

Mr. Ferrer thanked the Florida Office of the Attorney General, Medicaid Fraud Control, and HHS-OIG for their investigative efforts. Mr. Ferrer also thanked the Office of International Affairs, Department of Justice, for their assistance in the arrest of John Crowe. This case, brought as part of the Medicare Fraud Strike Force, is being prosecuted by Special Assistant U.S. Attorney Hagerenesh Simmons.

An indictment is only an accusation and the defendants are presumed innocent until proven guilty.

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

The Justice Department announced that it has reached a consent decree with the town of Davie, Florida, to resolve allegations that the Davie Fire Department discriminated against firefighter/paramedic Lori Davis because of her pregnancy and retaliated against firefighter/paramedic Monica Santana because she complained about gender discrimination. Title VII of the Civil Rights Act of 1964 prohibits discrimination in employment on the basis of race, color, sex, national origin and religion.

According to the Justice Department, the consent decree resolves allegations of disparate treatment based on pregnancy that resulted from light duty policies implemented by the Davie Fire Department. In 2012, the Department of Justice challenged those discriminatory light duty policies in a related pattern or a practice Title VII case resulting in the filing of a complaint and consent decree to resolve the case. The consent decree entered by the U.S. District Court for the Southern District of Florida required that the fire department abandon its existing discriminatory light duty policies and adopt new, non-discriminatory policies. This new complaint is the result of individual charges of discrimination referred to the Justice Department by the Equal Employment Opportunity Commission.

As alleged by the Justice Department in this complaint, Davis worked for the Davie Fire Department under its prior policies and was adversely affected by those policies which were implemented in violation of Title VII. Under Title VII, discrimination based on sex includes discrimination due to pregnancy, and requires that women affected by pregnancy be treated the same as other employees who are similar in their ability or inability to work. Under federal law, an employer may not retaliate against employees because they complain about discrimination based on sex.

As alleged in the complaint, Davis’s doctor wanted Davis on light duty during her pregnancy. The fire department’s policy, however, would not allow her light duty during her first trimester. Davis continued to work and eventually was required to fight a fire while pregnant. She suffered a miscarriage after doing so. The complaint also alleges that Santana complained about other policies and practices at the fire department that she reasonably believed discriminated against female firefighters. After she complained about the discriminatory treatment, the fire department responded to her complaints by taking adverse actions against her designed to discourage similar complaints.

The consent decree, filed simultaneously with the complaint in U.S. District Court for the Southern District of Florida must still be approved by the federal court. Under the terms of the agreement, the fire department must review and adopt appropriate anti-retaliation policies to protect its employees from further violations of Title VII and conduct training of its personnel to ensure that they properly handle future complaints under Title VII. The fire department must also pay monetary awards to compensate Davis, Santana, and two other similarly-situated, pregnant firefighters. The total monetary awards to all four women will exceed $400,000.

“Firefighters are dedicated public servants who put their lives at risk every day to protect the citizens of our community,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida. “We are committed to enforcing the federal laws that protect expectant mothers against discrimination so that they will not be forced to choose between their job and their decision to have a family.”

“Every day, expectant mothers after consulting with their doctors make difficult decisions about how and, more importantly, when to restrict their work duties due to pregnancy,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “The Civil Rights Division is firmly committed to vigorous enforcement of Title VII’s prohibitions against pregnancy discrimination and retaliation so that women can make decisions regarding their pregnancies and try to remedy discriminatory treatment without fear of unwarranted repercussions in the work place after doing so.”

The continued enforcement of Title VII has been a priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.usdoj.gov/crt/.

Attachments: Complaint - Town of Davie, Florida (PDF)
Consent Decree - Town of Davie, Florida (PDF)

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

Two South Florida medical doctors and their wives have agreed to settle allegations that they violated the False Claims Act when their wives accepted sham marketer salaries in exchange for their husbands’ referrals to a home health care company called A Plus Home Health Care Inc., the Justice Department announced today. Under the settlements, Dr. Alan and Lynn Buhler will pay to the United States $1.047 million and Dr. Craig and Cynthia Prokos will pay $90,000. Dr. Buhler practices in Plantation, Florida, and Dr. Prokos practices in Jupiter, Florida.

“The settlement announced today is another example of the Justice Department’s unrelenting efforts to hold accountable those who engage in kickback schemes,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida. “Health care providers should generate business by offering their patients superior care. Financial relationships that put profits over patients undermine the quality and care given to patients and ultimately, the integrity of our public health care program upon which millions of Americans depend.”

“Kickbacks can corrupt the judgment of physicians and cause them to make decisions for their own financial benefit rather than for the benefit of their patients,” said Acting Assistant Attorney General Joyce R. Branda of the Justice Department’s Civil Division. “We will not tolerate these conflicts of interest where Medicare patients and dollars are concerned.”

The United States alleged that, beginning in 2006, A Plus and its owner, Tracy Nemerofsky, engaged in a scheme to increase Medicare referrals in the heavily saturated home health care market in South Florida. Specifically, the United States alleged that A Plus paid spouses of referring physicians for sham marketing positions in order to induce patient referrals. Among the spouses allegedly paid by A Plus as part of this scheme were Lynn Buhler and Cynthia Prokos. The United States alleged that the spouses were required to perform few, if any, of the job duties they were allegedly hired for and instead, the spouses’ salaries were intended as an inducement for the husband physicians to refer their Medicare patients to A Plus. The United States also alleged that Alan Buhler received medical director payments as part of A Plus’s scheme to obtain his referrals and he attempted to hide those payments from the United States.

The United States previously settled with A Plus, Tracy Nemerofsky and five other couples that allegedly accepted payments from A Plus.

The settlements announced today resolve allegations that were brought by William Guthrie, a former director of development at A Plus, 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. On Jan. 6, Judge William P. Dimitrouleas dismissed Mr. Guthrie’s suit without prejudice to the United States’ right to proceed. The lawsuit was captioned U.S. ex rel. Guthrie v. A Plus Home Health Care, Inc., 12 CV 60629 (S.D. Fla.).

“Being a physician in the Medicare program is a privilege, not a right,” said Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Physicians who engage in such in-your-face kickback schemes to refer Medicare patients to certain home health companies in exchange for money will be held accountable for their behavior. Our agency will continue to crack down on kickbacks, which undermine impartial medical judgment, corrode the public’s trust in the health care system and waste scarce Medicare funding.”

These settlements illustrate the government’s emphasis on combating health care fraud and mark 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 $23.7 billion through False Claims Act cases, with more than $15.2 billion of that amount recovered in cases involving fraud against federal health care programs.

The investigation of this matter reflects a coordinated effort among the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Southern District of Florida, HHS-OIG and the FBI. This matter is being handled by Assistant U.S. Attorney Susan Torres and Department of Justice Trial Attorneys Elizabeth Young and Derek M. Adams.

The claims resolved by the settlements are allegations only and there has been no determination of liability.

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Frank Preve, 71, of Coral Springs, was sentenced today in Ft. Lauderdale by United States District Judge James I. Cohn to 42 months in prison, to be followed by two years of supervised release. On August 19, 2014, Preve pled guilty to conspiracy to commit wire fraud in connection with the operation of the former Fort Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA).

In 2009, it was discovered that RRA was being utilized by its Chairman and Chief Executive Officer, Scott W. Rothstein, to commit a massive Ponzi scheme stemming from the sale of fictitious confidential settlements. In a written factual stipulation filed in connection with his guilty plea, Preve admitted that he worked for a number of companies, referred to as “the Banyon Group,” which solicited lenders and investors into the confidential settlement business being offered by Rothstein. The defendant further admitted that, from on or about July 9, 2009 through October 31, 2009, he defrauded investors by not disclosing that Rothstein had failed to make payments that were due to the Banyon Group, that Rothstein had frozen certain bank accounts that were holding investor funds, that certain paperwork was not being prepared, and that verification of the investments was not taking place, all in violation of a private placement memorandum which had been circulated to potential investors by the Banyon Group. The defendant further admitted that, through these material misrepresentations and omissions, Preve caused more than $20 million to be paid by investors to the Banyon Group.

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

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

On January 11, 2014, what began as a routine response to the scene of a fight at a Miami Gardens apartment complex ended in a dramatic firefight when Randy Thomas, 45, opened fire on a 25-year old police officer with Miami Gardens Police Department. Following a three-day trial, a federal jury convicted defendant Randy Thomas of being a felon in possession of a firearm.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Stephen E. Johnson, Chief, Miami Gardens Police Department, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, made the announcement.

Following a call to 911, two police officers with Miami Gardens Police Department responded to the scene of a fight between Thomas and two women at an apartment complex. While one officer diverted his attention to the females, the second officer attended to Thomas, who had begun walking away. The officer testified that he was unaware that Thomas was armed as he casually approached Thomas and asked him to stop. The officer then recounted how Thomas spun around with a pistol in his hand and pointed it at the officer who was just four feet away. The evidence at trial also included a surveillance video that showed Thomas abruptly turning with his arm extended and then chasing after the officer.

A bystander described in chilling detail how the officer stepped back in shock when Thomas pulled a gun from his waistband and began to chase and shoot at the officer. The officer sought safety while retrieving his own firearm. The officer fired several shots at Thomas in an attempt to disarm Thomas. Undeterred, Thomas chased down the officer, and fired several shots at him, striking the officer in the leg and causing him to collapse on the sidewalk. The second officer testified that he witnessed the entire altercation and discharged his own firearm when he saw Thomas chasing and shooting at the officer. Yet another officer, who arrived at the moment of the shooting, testified that she pulled up in a patrol car at the precise moment of the shooting, and saw Thomas standing with his arm extended and shooting at the fallen officer.

Forensic analysis helped link the firearm to Thomas. The officer, who sustained a bullet wound to the thigh and received medical treatment at Ryder Trauma, has since recovered fully from his injuries.

At sentencing, which is currently set for April 24, 2015, at 2:00 p.m., Thomas faces a minimum of 15 years imprisonment and a maximum of a life sentence for his conviction of the federal crime of being a felon in possession of firearm. He also faces prosecution in a state case in which he is charged with attempted murder of a law enforcement officer.

Mr. Ferrer commended the Miami Gardens Police Department for their efforts in the investigation of this case. Mr. Ferrer also thanked the Bureau of Alcohol Tobacco and Firearms for their assistance and cooperation in this matter. This case was prosecuted by Assistant U.S. Attorney Cristina Moreno and Francisco Maderal.

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

Thirty-four Florida residents were arrested in a drug trafficking conspiracy. A total of 39 individuals were charged, five individuals remain at large

Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Ric L. Bradshaw, Sheriff, Palm Beach County Sheriff?s Office, Miami Field Office, made the announcement.

Charged in the indictment are Samuel David Alvarado, a/k/a “Wham,” 35, of Lake Worth, Stephen Carl Alveranga, a/k/a “Stevo,” 39, of West Palm Beach, Armand Edward Armstrong, 30, of Lake Worth, Robert Benjamin Brewster, a/k/a “Benji,” 33, of West Palm Beach, Devier Calvo-Borrego, 26, of West Palm Beach, Jamie Neil Capalbo, 33, of Loxahatchee, Nicholas William Capparelli, a/k/a “Cap,” 27, of Lake Worth, Herve Fils Viaud, a/k/a “V,” 23, of West Palm Beach, Fidel Fragoso, a/k/a Fidel F. Ojito, 62, of West Palm Beach, Julio Angel Garcia, a/k/a “Peanut,” 24, of West Palm Beach, Tavaris Sherrod Hayes, 30, of West Palm Beach, Baron Waldo Henderson, 38, of West Palm Beach, Sam Henricy, a/k/a “Tukan,” 32, of West Palm Beach, Lavaress Jayvon Hopkins, 25, of West Palm Beach, Rones Jean Paul, 29, of Boynton Beach, Walson Tony Joseph, 38, of Lake Worth, Justin Patrick Landfried, 23, of Royal Palm Beach, Steven Joseph Leal, a/k/a “Pep,” 35, of Lake Worth, Eric Ramon Machado-Orama a/k/a “E,” 35, of West Palm Beach, Victoria Lynn McGinnis, a/k/a “Picky Vicky,” 56, of Palm Springs, Pedro Nel Mejia, Jr. a/k/a “Dro,” 26, of West Palm Beach, Andrew Carl Melchert, 32, of West Palm Beach, Joseph Michaud, 31, of West Palm Beach, Joseph Michael O'Connor, a/k/a “Jit,” 23, of West Palm Beach, Neil R. Puterbaugh, Jr., 41, of Greenacres, Vincent Ronald Ranallo, a/k/a “Vinnie,” 48, of Lake Worth, Todd John Reynolds, 44, of West Palm Beach, Jean A. Saint Louis, Jr., 27, of Lake Worth, Adolfo Rico Sanchez, a/k/a “Primo,” 30, of Lantana, Jacob Lee Skelly, 37, of Port Saint Lucie, Teddy Roosevelt Sims, 37, of West Palm Beach, Tyrone Isiah Thomas, 22, of West Palm Beach, Fabian Josue Vallejo, a/k/a “Fabo,” 24, of Greenacres, Eliezet Andres Velazquez, a/k/a “Tete,” 22, of Lake Worth, David Dieudonne Vilmont, a/k/a “Dai Dai,” “Zona,” 26, of West Palm Beach, Omar Veloz, Jr. a/k/a “O,” 25, of West Palm Beach, Alexander Handel Webster, Jr. a/k/a “X,” 30, of Lake Worth, Sherman Eugene Weeks, Sr., 41, of West Palm Beach, and James Alvin Wright, 29, of West Palm Beach.

Capalbo, Henderson, Henricy, Joseph, Landfried, Wright and Veloz were also charged with firearms-related offenses.

Earlier this morning, each of the individuals arrested appeared before U.S. Magistrate Judge William Matthewman for their initial appearances. Alvarado, Garcia, Ranallo, Thomas and Vallejo remain at large.

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

Mr. Ferrer commended the investigative efforts of the FBI, ATF and the Palm Beach County Sheriff?s Office. This case is being prosecuted by Assistant U.S. Attorneys Rinku Tribuiani and Robert Waters.

An indictment is only an accusation and the defendants are presumed innocent until proven guilty.

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

The State Department’s Diplomatic Security Service (DS) Miami Field Office, working with multiple federal, state, and local enforcement authorities, has apprehended 26 men and women sought as suspects of identity theft, as well as passport and visa fraud.

Operation Southern Wave, a Florida statewide law enforcement operation stretching from Jacksonville to Miami, was conducted from February 3 to 18.

“The apprehension of fugitives and suspects delivers a clear message that federal, state, and local law enforcement authorities will find and bring to justice any individuals who attempt to defraud the U.S. government,” said Wendy A. Bashnan, Special Agent in Charge of the DS Miami Field Office.

“If you engage in passport or visa fraud or engage in other forms of identity theft, sooner or later we will track you down.”

Operation Southern Wave generated a total of 18 new complaints and indictments for individuals suspected of passport and/or visa fraud.

17 individuals were charged in the Southern District of Florida for making false statements in application for a passport. Another 9 individuals were charged in the Middle District of Florida for making false statements in application for a passport.

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

Approximately 150 federal, state, and local law enforcement officers were among those involved in support of Operation Southern Wave.

“The Florida Highway Patrol is committed to collaborating with federal, state, and local law enforcement to identify, arrest and pursue prosecution of those who commit identity theft crimes in Florida,” said Colonel David Brierton, director of the Florida Highway Patrol. “Operation Southern Wave’s success is a testament to that commitment.”

The DS Miami Field Office has responsibility for eight southern states. It brought in personnel from its entire region to assist in Operation Southern Wave.

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

Mr. Ferrer commended DS for leading this operation, and thanked all participating agencies for their investigative efforts and assistance. The cases in this District are being prosecuted by Cary Aranovitz, Daniel Cervantes, Robert Emery, Matthew Langley, Daya Nathan, Jonathan Osborne, Kevin Quencer, and Adam Weisholtz.

A complaint/indictment is a formal charge that a defendant has committed one or more violations of federal criminal law. All defendants are presumed innocent unless, and until, proven guilty.

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

After a seven-day trial, a federal jury yesterday convicted Vory V. Copeland, 40, of Miramar, Florida, for his involvement in a tax refund fraud scheme that resulted in the filing of over 150 fraudulent tax returns and the cashing of numerous fraudulently-obtained 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 Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, made the announcement.

As shown at trial, between January 2010 and April 2010, Copeland and his co-conspirators filed numerous fraudulent tax returns, including tax returns based on stolen personal identification information, and cashed many of the resulting fraudulently-obtained tax refund checks at a Wachovia bank in Miami Gardens, Florida. Victims testified at trial that they were not aware that tax returns had been filed by the defendant on their behalf, using their personal information, and that they had not authorized the defendant nor his co-conspirators to file the fraudulent tax returns or cash the resulting tax refund checks.

At sentencing, which is currently set for April 29, 2015, at 3:00 p.m., before U.S. District Judge Joan A. Lenard, Copeland faces a maximum term of 86 years in prison.

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

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

Anthony Bosch, 50, of Key Biscayne, was sentenced today to four years imprisonment, to be followed by three years of supervised release for his role in administering testosterone and human growth hormone to underage high school and professional athletes. The court also ordered Bosch to perform 200 hours of community service and prevented him from working in the medical field in the future.

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

The charges stem from a DEA investigation, which focused on the illegal distribution of testosterone by the charged defendants in Miami-Dade County, and elsewhere. In August 2014, seven defendants, including Yuri Sucart, Juan Carlos Nuñez, and Lazaro Daniel Collazo, were charged with conspiracy to distribute testosterone. Bosch, Carlos Javier Acevedo, Jorge Augustine Velazquez, Christopher Benjamin Engroba, Paulo Berejuk, and Juan Carlos Nuñez plead guilty. Acevedo, Velazquez, and Engroba have been sentenced in connection with this conspiracy. Sentencing for Berejuk is scheduled for February 25, 2015 at 8:30 a.m. before U.S. District Judge Cecilia M. Altonaga. Sentencing for Nuñez is scheduled for March 3, 2015 at 8:30 a.m. before Judge Altonaga.

The charges, filed in August 2014, focused on the illegal distribution of testosterone by the operators of several anti-aging clinics in Miami, Florida, recruiters for these clinics, and a black market distributor of testosterone. These anti-aging clinics were incorporated under several different corporate names: Biogenesis of America, LLC; Biokem, LLC; Revive Miami, LLC; and others by the same group of people who occasionally worked together in the time period 2008 through 2012. One of the original founders of these clinics was Anthony Bosch.

Bosch and his co-conspirators were all charged with one count of conspiracy to distribute a Schedule III controlled substance, that is, the anabolic steroid testosterone, in violation of Title 21, United States Code, Section 846.

Mr. Ferrer thanked the DEA for their work on this investigation. This case was prosecuted by Senior Litigation Counsel Michael P. Sullivan and Assistant U.S. Attorney Sharad A. Motiani.

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

A former accountant of adult entertainment businesses pled guilty for his participation in a tax fraud conspiracy.

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.

Paul Anthony Ruggieri, of Parkland, pled guilty today to one count of conspiracy to defraud the United States.

According to court documents, Ruggieri provided accounting and return preparation services to Anthony Andreozzi [Case 9:13-cr-80174], F & A Concepts, Inc. (F & A) and Galaxy Communications, Inc. (Galaxy), two adult entertainment businesses owned and operated by Andreozzi in the State of Florida. Defendant Ruggieri also provided accounting services to the general public through his business, Strategic Accounting Alliance. Ruggieri and Andreozzi conspired for the purpose of unlawfully enriching Andreozzi by engaging in a fraudulent scheme to evade the payment of federal income taxes.

Court documents state that Andreozzi diverted corporate receipts of F & A and Galaxy for his own personal use. In order to conceal his diversion of corporate funds, Andreozzi instructed Ruggieri to falsify the corporate books and records by classifying certain personal expenditures of Andreozzi as business expenses. Ruggieri and Andreozzi caused the preparation and filing of false corporate tax returns for F & A and Galaxy, in that the corporate returns included fraudulent business expenses which reduced each corporation’s income. Ruggieri and Andreozzi also caused the filing of false personal income tax returns for Andreozzi for calendar years 2006, 2007, 2008 and 2009, in that the personal returns failed to include the diverted corporate income, thereby understating on Andreozzi’s personal returns his total income and tax due and owing.

On October 15, 2013, Andreozzi pled guilty to one count of conspiring to defraud the United States. Andreozzi is scheduled to be sentenced on March 6, 2015, at the Federal Courthouse in West Palm Beach, Florida, by U.S. District Judge Kenneth Ryskamp.

Ruggieri is scheduled to be sentenced on April 17, 2015, at the Federal Courthouse in West Palm Beach, Florida, by U.S. District Judge Kenneth Ryskamp. Each defendant faces a maximum of five years in prison.

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

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

A Palm Beach County resident was sentenced today by U.S. District Judge Kenneth Marra for unlawfully transporting endangered sea turtles.

Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and William H. Calvert, Supervisory Law Enforcement Officer, U.S. Fish and Wildlife Service, West Palm Beach, made the announcement.

On August 15, 2014, James Odell McGriff, 56, of Riviera Beach, Florida, dug into two sea turtle nests and unlawfully took 299 endangered sea turtle eggs. Twelve of the eggs were held as evidence, and the remaining 287 sea turtle eggs were returned to the nests, in an effort to allow the eggs to continue to develop and possibly hatch. All species of sea turtles are protected by the Endangered Species Act, as either threatened or endangered species. McGriff intended to sell the illegally obtained eggs for $20.00 a dozen. The U.S. Fish and Wildlife Service estimates that the black market value is between $3.00 and $5.00 per stolen egg, for a total profit of between $897.00 and $1,495.00.

McGriff was sentenced to 14 months imprisonment, to be followed by three years of supervised release. Additionally, Judge Marra ordered that McGriff not go east of the Intercoastal Waterway while he is on supervised release.

Mr. Ferrer commended the investigative efforts of the U. S. Fish and Wildlife Service, the St. Lucie County Sheriff’s Department and the Florida Fish and Wildlife Conservation Commission. This case was prosecuted by Assistant U.S. Attorney Lauren Jorgensen.

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

A U.S. citizen charged in connection with the operation of a series of fraudulent business opportunities was extradited from Costa Rica to the United States, the Justice Department announced today.

John White was charged in a Nov. 29, 2011, indictment in the Southern District of Florida with conspiracy to commit mail and wire fraud, five counts of mail fraud and 13 counts of wire fraud. White was arrested on Feb. 9, 2012, in Costa Rica pursuant to the indictment, which charges that White and his co-conspirators sold fraudulent beverage and greeting card business opportunities, including assistance in establishing, maintaining and operating such businesses, to victims in the United States. The charges in the indictment form part of the government’s continued nationwide crackdown on business opportunity fraud.

In addition to White, 11 other defendants have been charged in connection with related business opportunity fraud ventures that operated in Costa Rica. Nine of those other defendants have been convicted in the United States with sentences ranging from three to 16 years in prison. Two remaining defendants have yet to be received into the custody of the United States.

“Business opportunity fraud hurts those who are simply trying to fulfill their dream of running their own business.” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida. “We will continue to prosecute those who seek to enrich themselves by committing fraud at the expense of innocent victims.”

“Business opportunity fraud takes a heavy financial toll on victims who believe they are buying a piece of the American dream,” said Acting Assistant Attorney General Joyce R. Branda of the Justice Department’s Civil Division. “The Department of Justice will continue its push to prosecute those who defraud consumers whether from here in the United States or abroad.”

Beginning in May 2005, White and his coconspirators are alleged to have fraudulently induced purchasers in the United States to buy business opportunities in USA Beverages Inc., Twin Peaks Gourmet Coffee Inc., Cards-R-Us Inc., Premier Cards Inc. and The Coffee Man Inc. According to the indictment, the business opportunities the defendant sold cost thousands of dollars each, and most purchasers paid at least $10,000. Each company operated for several months, and after one company closed, the next opened. The various companies used bank accounts, office space and other services in the Southern District of Florida and elsewhere, according to the indictment.

The indictment alleges that the defendant, using aliases, participated in a conspiracy that used various means to make it appear to potential purchasers that the businesses were located entirely in the United States. In reality, White and his co-conspirators operated out of Costa Rica to fraudulently induce potential purchasers in the United States to buy the purported business opportunities, the indictment alleges.

According to the indictment, the companies made numerous false statements to potential purchasers of the business opportunities. Among the misrepresentations alleged in the indictment are: that purchasers would likely earn substantial profits; that prior purchasers of the business opportunities were earning substantial profits; that purchasers would sell a guaranteed minimum amount of merchandise, such as greeting cards and beverages; and that the business opportunity worked with locators familiar with the potential purchaser’s area who would secure or had already secured high-traffic locations for the potential purchaser’s merchandise stands. Potential purchasers were also told that the profits of the companies were based in part on the profits of the business opportunity purchasers, thus creating the false impression that the companies had a stake in the purchasers’ success and in finding good locations.

The indictment alleges that the companies employed various types of sales representatives, including fronters, closers and references. A fronter spoke to potential purchasers when the prospective purchasers initially contacted the company in response to an advertisement. A closer subsequently spoke to potential purchasers to close deals. References spoke to potential purchasers about the financial success they purportedly had experienced since purchasing one of the business opportunities. The companies also employed locators, who were typically characterized by the sales representatives as third parties who worked with the companies to find high-traffic locations for the prospective purchaser’s merchandise display racks. The indictment alleges that White, using assumed names, worked as a fronter and a reference.

Each of the companies was registered as a corporation and rented office space to make it appear to potential purchasers that its operations were fully in the United States. USA Beverages was registered as a Florida and New Mexico corporation and rented office space in Las Cruces, New Mexico; Twin Peaks was registered as a Florida and Colorado corporation and rented office space in Fort Collins, Colorado; Cards-R-Us was registered as a Nevada corporation and rented office space in Reno, Nevada; Premier Cards was registered as a Colorado and Pennsylvania corporation and rented office space in Philadelphia; and The Coffee Man was registered as a Colorado corporation and rented office space in Denver.

White faces a statutory maximum sentence of 25 years in prison, a possible fine and mandatory restitution on the conspiracy count. He also faces a statutory maximum sentence of 25 years in prison on each of the mail and wire fraud counts, possible fines and mandatory restitution.

“The Postal Inspection Service will continue to aggressively investigate and combat business and investment fraud through the use of the U.S. mail,” said Postal Inspector in Charge Ronald Verrochio of the U.S. Postal Inspection Service Miami Division.

U.S. Attorney Ferrer and Acting Assistant Attorney General Branda commended the investigative efforts of the U.S. Postal Inspection Service. The Justice Department’s Office of International Affairs provided assistance with the extradition. The case is being prosecuted by Trial Attorney Alan Phelps of the Civil Division’s Consumer Protection Branch.

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

After a ten-day trial, a federal jury convicted Marlan L. Copeland, of Miramar, and Brannoc K. Rudd, of Miami Gardens, for their involvement in a tax refund fraud scheme that resulted in the cashing of over $100,000.00 in tax refund checks.

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 Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, made the announcement.

As shown at trial, between January 2010 and April 2010, Copeland and Rudd brought over twenty checks into a Wachovia bank in Miami Gardens, Florida. Each check reflected a tax refund issued by the U.S. Department of the Treasury. At the bank, the defendants cashed the checks and left with the money, which totaled over $100,000.00. Although each check had been purportedly signed by the taxpayer, at trial the taxpayers identified the signatures at forgeries.

At sentencing, which is currently set for April 20, 2015, at 3:00 p.m., before U.S. District Judge Joan A. Lenard, Copeland faces a maximum term of 12 years in prison and Rudd faces a maximum term of five years in prison.

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

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