Southern District of Florida

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, and Ronald J. Verrochio, Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Division, announce that Jeffrey Charles Leroy Taylor, 40, pled guilty before U.S. Magistrate Judge Dave Lee Brannon to charges of conspiracy to commit mail fraud and wire fraud, and mail fraud, in violation of Title 18, United States Code, Sections 1349 and 1341, in Case No. 14-80240-CR-MARRA.

All ten defendants charged in this case have now entered guilty pleas to the charges, which involved a scheme to bilk thousands of homeowners who were struggling to make their mortgage payments. No sentencing date has been set for Taylor yet, but ringleader Jason Vitulano is scheduled for sentencing on December 5, 2014 in West Palm Beach. Taylor and Vitulano each face up to 20 years in prison as to each of the two counts of conviction, plus fines of up to $250,000 or twice the pecuniary loss, as to each count. The other eight defendants were previously sentenced by U.S. District Judge Kenneth A. Marra to prison terms ranging from 24 months to 72 months.

According to the indictment and other documents filed in the case, between September 2008 and August 2009, the defendants operated boiler rooms that collected advance fees from distressed homeowners purportedly in exchange for obtaining loan modifications for the homeowners which were, with few exceptions, never provided.

The indictment alleges that defendant Vitulano was the organizer and operator of FHA All Day.com, Inc. and two other companies, Housing Assistance Law Center, Inc. and Safety Financial Corp., which operated the boiler rooms in Boca Raton and later in Deerfield Beach. According to the indictment and the factual proffers submitted in support of the guilty pleas, Jeffrey Taylor was a team manager who directed sales staff, including telemarketers who made thousands of phone calls to homeowners behind on their mortgage payments.

As alleged in the indictment, the defendants made numerous false statements to the homeowners including telling homeowners they had already been approved or pre-approved for a loan modification that would save the homeowner a specific amount off their mortgage payment, reducing the interest rate and often the principal balance on the mortgage loan. The defendants, according to the indictment, routinely told customers that they had been approved by an “underwriter” and that they had a team of “expert attorneys” who would finalize the loan modifications.

The indictment further alleges that the defendants targeted homeowners across the country who were facing foreclosure, falsely telling them that the company would stop the foreclosure process and that homeowners could stop making mortgage payments while they waited for the company to finalize their loan modifications. FHA All Day, as alleged in the indictment, moved its offices and changed the corporate name several times to avoid law enforcement scrutiny and to hamper consumer complaints. Through the use of these and other false representations, the defendants, according to the indictment, induced over 2,000 distressed homeowners to pay up front fees totaling approximately seven million dollars to the defendants.

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

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that a federal jury in West Palm Beach returned guilty verdicts on all counts against Dontavious M. Blake, 32, and Tara Jo Moore, 26, both of Palm Beach County.

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

Blake and Moore were each found guilty of two counts sex trafficking of children and one count of conspiracy to commit sex trafficking of children, in violation of Title 18, United States Code, Sections 1591 and 594. Sentencing is set for January 23, 2015. Blake and Moore face a mandatory minimum statutory sentence of ten years imprisonment and maximum statutory sentence of life in prison on the sex trafficking of children counts. Blake and Moore face a statutory sentence of life in prison on the conspiracy to engage in sex trafficking of children.

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

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

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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.

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, announce that defendant Kenol Augustin, 36, of Miami, was convicted by a federal jury of one count of conspiracy to commit access device fraud, in violation of Title 18, United States Code, Section 1029(b). Sentencing is scheduled for January 15, 2015. At sentencing, Augustin faces up to five years in prison.

According to court documents and evidence presented at trial, in January 2012, 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.

Defendant Barnard (13-20684-CR-COOKE), who was also involved in this conspiracy, was sentenced on July 23, 2014 to 36 months in prison, to be followed by two years of supervised release, and was ordered to pay restitution of $57,000. Barnard pled guilty to one count of possession of 15 or more unauthorized access devices, in violation of Title 18, United States Code, Sections 1029(a)(3) and 2, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).

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.

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.

The owner and administrator of two Miami home health care companies was sentenced today to serve 80 months in prison for her participation in a $74 million Medicare fraud scheme.

United States Attorney Wifredo A. Ferrer for the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement. U.S. District Judge Marcia G. Cooke in the Southern District of Florida imposed the sentence.

Elsa Ruiz, 45, of Miami, pleaded guilty in July 2014 to one count of conspiracy to commit health care fraud. In addition to the prison sentence, Ruiz was ordered to pay $45 million in restitution.

Ruiz was an owner and operator of Professional Home Care Solutions Inc. and an administrator of LTC Professional Consultants Inc., both of which purported to provide home health and therapy services to Medicare beneficiaries. According to admissions during her plea hearing, Ruiz and her co-conspirators operated LTC and Professional Home Care for the purpose of billing the Medicare program for, among other things, expensive physical therapy and home health care services that were not medically necessary or were not provided.

According to her admissions, Ruiz’s primary role in the scheme was to negotiate and pay kickbacks to patient recruiters and to otherwise oversee the schemes operating out of LTC and Professional Home Care. Specifically, Ruiz and her co-conspirators paid kickbacks to patient recruiters for the referral of patients and for the provision of prescriptions, plans of care, and certifications for medically unnecessary therapy and home health services. Ruiz and her co-conspirators used these prescriptions, plans of care, and medical certifications to fraudulently bill the Medicare program for home health care services.

From approximately January 2006 to June 2012, LTC and Professional Home Care submitted approximately $74 million in claims for home health services that were not medically necessary or not provided, and Medicare paid approximately $45 million on those claims.

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

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

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

A 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.

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, announce that Willy Toussaint, 43, of Lauderhill, Florida, was sentenced by U.S. District Judge Beth Bloom to 46 months in prison, to be followed by five years of supervised release stemming from his convictions to one count of Conspiracy to Commit Bank Fraud, in violation of Title 18, United States Code, Section 1349, and two counts of Bank Fraud, in violation of Title 18, United States Code, Section 1344. Toussaint was also ordered to pay $208,261.90, in restitution to the Internal Revenue Service, which represents the actual loss suffered by the IRS in this case.

According to court documents, Toussaint obtained counterfeit means of identification, including counterfeit State of Florida driver’s licenses, and caused multiple unauthorized personal and business bank accounts to be created at JP Morgan Chase Bank in the names of unsuspecting identity theft victims utilizing their personal identification information (PII). Toussaint paid the bank employees between $2,000 and $10,000, for opening the bank accounts.

Court documents also state that co-conspirators utilized stolen PII to submit false, fictitious, and fraudulent federal income tax returns to the IRS claiming tax refunds to which they were not entitled. The fraudulently claimed tax refunds were then deposited into the bank accounts established with the assistance of Toussaint. After the tax refunds were received at the bank, co-conspirators would either obtain the funds by wire transfer or would utilize multiple automated teller machines (ATMs) to withdraw the money in cash.

Mr. Ferrer commended the investigative efforts of IRS-CI and USSS. The case was prosecuted by Assistant U.S. Attorney Marc S. Anton.

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.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce the charges filed against Christopher Wayne White, 43, of Fort Lauderdale, Florida, for three counts of wire fraud, in violation of Title 18, United States Code, Section 1343. If convicted, White faces a maximum penalty of twenty years in prison, five years supervised release and a fine of up to $250,000 for each count.

According to the criminal complaint, White was a licensed real estate broker and owner and operator of the Christopher White Group in Fort Lauderdale. White obtained three real estate deposits totaling approximately $595,000 – in the amounts of $300,000, $150,000 and $145,000 – via wire transfers involving properties in Broward County from three individuals and White refused to return the escrow deposits. The Secretary of Florida’s Department of Business and Professional Regulation ordered an emergency suspension of his real estate broker’s license. Any victims or individuals with additional information should contact the FBI Field Office in Miami at 305-944-9101.

Mr. Ferrer commended the investigative efforts of the FBI and thanked Florida’s Department of Business and Professional Regulation for their assistance. The case is being prosecuted by Assistant U.S. Attorneys Randy Katz and Thomas P. Lanigan.

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

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), announce that Wisly Toussaint, of Miami, Florida, was convicted by a federal jury of one count of conspiracy to commit access device fraud, in violation of Title 18, United States Code, Section 1029(b), two counts of access device fraud, in violation of Title 18, United States Code, Section 1029(a), and five counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Sentencing is scheduled for January 8, 2015 before U.S. District Judge Joan A. Lenard. Toussaint faces a maximum term of 25 years in prison for the conspiracy and access device charges, and at least one mandatory term of two years in prison, consecutive to any other term in prison, for the aggravated identity theft charges.

According to evidence presented during the five-day trial, Toussaint possessed and trafficked in personal identifying information (PII), that is names, dates of birth and social security numbers, stolen from a mental health facility in Philadelphia, Pennsylvania. In October of 2013, Toussaint was approached by two individuals cooperating with law enforcement and agreed to sell the cooperators the stolen PII, which Toussaint stated he obtained from a partner in Sarasota, Florida. Toussaint later sold the cooperators hundreds of identities stolen from the mental health facility in two separately recorded meetings.

Toussaint was also recorded discussing his plans to make $50,000 during the first week of the 2014 tax filing year and the ability to also file for unemployment compensation with the stolen identities.

Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, and ICE-HSI. The case is being prosecuted by Assistant U.S. Attorney Frank R. Maderal.

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.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, announced today that Assistant United States Attorney (AUSA) Kimberly A. Selmore, of the Miami Office, will lead the U.S. Attorney’s Office efforts in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 4, 2014, general elections. AUSA Selmore has been appointed to serve as the District Election Officer (DEO) for the Southern District of Florida, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.

United States Attorney Wifredo A. Ferrer said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”

The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.

Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.

The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 4, 2014, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Ferrer stated that AUSA/DEO Kimberly A. Selmore will be on duty in this District while the polls are open. AUSA Selmore can be reached by the public at (305) 961-9001.

In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (305) 944-9101.

Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to voting.section@usdoj.gov or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.

United States Attorney Wifredo A. Ferrer added, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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.

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, announce that Victor Diroggiero, 45, of Miami, was sentenced today to 101 months in prison, followed by three years of supervised release and ordered to pay $745,000 in restitution.

Diroggiero previously pled guilty to one count of theft of government money, in violation of Title 18, United States Code, Section 641, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.

According to court documents, from April through August 2009, Diroggiero went to Fast Cash Check Cashing, a check cashing store in North Miami, and cashed over one hundred stolen United States Department of Treasury checks. The checks were social security checks, thrift savings program checks and tax refund checks issued to different, real persons who did not authorize Diroggiero to possess the checks.

Mr. Ferrer commended the investigative efforts of IRS-CI and USSS. The case was prosecuted by Assistant U.S. Attorneys Jonathan E. Kobrinski, Monique Botero, Kurt Lunkenheimer and Robert Watson.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, and Rear Admiral John H. Korn, Commander, 7th Coast Guard District (USCG), announce that Naaman Davis, 54, of Bimini, Bahamas, was sentenced to 168 months in prison by U.S. District Judge Kathleen M. Williams. Davis had previously pled guilty to one count of migrant smuggling resulting in death and one count of bringing an aggravated felon into the United States.

According to court documents, Davis had been hired to drive a boat of migrants from the Bahamas to the United States on the evening of October 15, 2013. During the voyage from the Bahamas, Davis maintained a drug induced high by smoking crack-cocaine from a pipe which he had brought with him. At one point the vessel stalled, approximately seven miles off the coast of Miami, at which time the vessel began taking on water. Instead of assisting the others onboard the vessel with bailing the water, Davis continued to smoke, while everyone else bailed water. Eventually the vessel capsized, trapping four Haitian women underneath: Lodilla Escarment, Carmen Valeris, Kerline Mercy and Woodline Alexis. All four women ultimately died of drowning. Through counsel, Davis conceded that he had intended on using the money he was to be paid from this venture to buy more crack cocaine.

Five co-defendants in the instant case have previously been sentenced for their participation in these events:

George Lewis, 39, of the Bahamas, was sentenced to 60 months imprisonment;

Everton Jones, 51, of Jamaica, was sentenced to 40 months imprisonment;

Matthew Williams, 31, of Jamaica, was sentenced to 20 months imprisonment; and

Sean Gaynor, 28, of Jamaica, was sentenced to time served.

Mr. Ferrer commended the investigative efforts of ICE-HSI and USCG. This case was prosecuted by Special Assistant U.S. Attorney Kelly Blackburn and Assistant U.S. Attorney Jaime Raich.

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.

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 Tracy Delva, 22, of Deerfield Beach, was sentenced to 37 months in prison, followed by three years of supervised release, and was ordered to pay $27,441 in restitution.

Delva previously pled guilty to one count of access device fraud, and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(2) and 1028A.

On October 15, 2014, Jacqueline Nicole Lee Warrick, 26, of Miami, was sentenced to 30 months in prison, followed by three years of supervised release. Warrick pled guilty to one count of using an authorized access device and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(2) and 1028A.

On August 6, 2014, co-defendant Chouman Emily Syrilien, 25, of Lauderdale Lakes, was sentenced to 34 months in prison, to be followed by three years of supervised release. Syrilien pled guilty to one count of possession of 15 or more unauthorized access devices and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(3) and 1028A.

On October 1, 2014, Carlos Antonio Alexander, 24, of Orlando, was sentenced to 16 months in prison, followed by three years of supervised release. Alexander pled guilty to one count of using an authorized access device and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(2) and 1028A.

On September 3, 2014, Angel Arcos, 23, of Pompano Beach, was sentenced to time served, to be followed by four years of supervised release. As a condition of his supervised release, Arcos was subject to 180 days of home detention with electronic monitoring. Arcos pled guilty to one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349.

On September 3, 2014, Monique Smith, 31, of Pompano Beach, pled guilty to one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349, and one count of aggravated identity theft in violation of Title 18, United States Code, Section and 1028A. Arrington Basil Segu, 28, of Miami pled guilty to one count of access device fraud and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(2) and 1028A. Sentencing for Smith and Segu is scheduled for November 19, 2014.

On September 22, 2014, Shantegra La’Shae Godfrey, 23, of Deerfield Beach, pled guilty to one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349. Sentencing is scheduled for December 3, 2014.

According to court documents, defendant Syrilien was employed by Interactive Response Technologies, Inc. (IRT) located in Margate. IRT provides staffing for call centers to handle direct sales and customer inquiries for AT&T. Syrilien unlawfully provided a co-conspirator with the personal identifying information from multiple AT&T customer files. Segu also unlawfully provided personal identifying information of numerous individuals to the co-conspirator.

Alexander, Delva, Godfrey, Smith and Warrick were added as “authorized users” on victims’ credit or debit card accounts or bank accounts to access the accounts of persons whose personal identifying information had been stolen. Once a co-conspirator’s name was added as an “authorized user,” the bank and/or credit card company was directed to mail additional debit or credit cards bearing the names of these newly added “authorized users” to their addresses or addresses under their control, all without the true account holder's knowledge or consent. The defendants used these credit and debit cards to make purchases or obtain money.

Delva and Warrick both utilized fraudulently obtained debit and credit cards that bore their names as additional “authorized users” on victims’ accounts to make both retail purchases as well as cash advances in excess of $28,000. Alexander, Smith and Godfrey made retail purchases as well as cash advances in excess of $24,000, $12,000 and $8,200, respectively.

Arcos allowed his personal information to be used to open a bank account to further the fraudulent activity. From September 16 to 18, 2013, five withdrawals totaling $13,000 were made from the fraudulent account and deposited into Arcos’ checking account.

The defendants face a maximum of 30 years in prison for the conspiracy charge, a maximum of 10 years in prison for the access device fraud charge, and a mandatory term of two years in prison for the aggravated identity theft charge.

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

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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.

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, Ronald J. Verrochio, Inspector in Charge, United States Postal Inspection Service (USPIS), and Commissioner Drew J. Breakspear, Florida Office of Financial Regulation (OFR), announce the charges filed against Christopher Anzalone, 31, of California, Jeffrey Schuler, 54, of Boynton Beach, Florida, Ben Williams, 30, of Oregon, David Boyce, 30, of California, and Jacob Bradshaw, 32, of Ohio, for their alleged involvement in related investment fraud schemes that yielded an aggregate amount of over $16 million in investments from victims for the purported purchase of precious metal positions and over-the-counter stock.

According to the charging documents, the case involved the following three investment fraud schemes:

From September 2010 to December 2011, Liberty International Financial Services, Inc. (LIFS) was an investment firm in Fort Lauderdale with brokers who solicited investors for the purchase of purported precious metals positions in gold, silver, and palladium. Schuler and Anzalone were the co-founders of LIFS. Schuler was responsible for executing precious metals trade orders for the benefit of investors and Anzalone was responsible for overseeing LIFS brokers. Contrary to representations made to investors by LIFS brokers, Anzalone and Schuler allegedly invested less than $200,000 of the approximately $4 million provided by investors for the purchase of precious metals positions.

From mid-2011 through 2013, Liberty International Holding Corporation (LIHC) was a holding corporation in Fort Lauderdale whose stock traded in the over-the-counter market. LIHC brokers solicited investors for the purchase of LIHC stock. Anzalone was the co-founder of LIHC. Anzalone allegedly represented to brokers, and had brokers represent to potential investors, that LIHC had substantial assets, including a substantial position in metals held in a Panamanian depository. In truth and in fact, as Anzalone well knew, LIHC did not hold these positons or any assets of real value. Induced by misrepresentations made by LIHC brokers, investors purchased more than $9 million in LIHC shares.

From October 2012 through October 2013, Allied Financial Strategies, Inc. (Allied) was an investment firm operating in Miami. Allied brokers solicited investors primarily for the purchase of LIHC stock. Anzalone, Williams, Boyce, and Bradshaw worked at Allied. Williams and Anzalone allegedly induced investors to purchase LIHC shares by falsely and fraudulently representing to investors that a hedge fund or other large investment funds intended to purchase a substantial block of LIHC shares at an over-inflated price compared to the LIHC market price of those same shares. Williams and Anzalone allegedly used co-conspirators, including Boyce and Bradshaw, to falsely and fraudulently pose as other investors or hedge fund representatives to induce prospective investors to invest monies. Based on these false representations by these co-conspirators, investors wired over $3 million to accounts controlled by the co-conspirators.

The defendants are charged with counts of either conspiracy to commit mail and wire fraud, mail fraud, and wire fraud. If convicted, the defendants face a maximum possible statutory sentence of twenty years on each count. Schuler is charged by indictment in 14-60255-CR-Dimitrouleas. Anzalone is charged by information in 14-20737-CR-Moreno. Williams, Boyce, and Bradshaw are charged by indictment in 14-20774-CR-Cooke.

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

Mr. Ferrer thanked the FBI, USPIS, and OFR for their work on this case. The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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.

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, and J. Scott Dennis, Chief, North Miami Beach Police Department, announce that Donald Claude, 34, of Miramar, was sentenced to 40 months in prison, to be followed by three years of supervised release, and was ordered to pay restitution of $210,120.

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

According to court documents, Claude was the Chief Executive Officer of J&D Tax Services, LLC. Claude obtained an Electronic Filing Identification Number (EFIN) for J&D Tax Services, LLC which permitted Claude and co-defendant James Jean-Baptiste to file tax returns electronically in the names of other individuals. Claude also obtained a Preparer Tax Identification Number (PTIN) as a tax preparer that permitted him to identify himself as the preparer on tax returns electronically filed in the names of other individuals.

Claude and Jean-Baptiste obtained the personal identification information (PIl) of students from an employee of Miami-Dade County Public Schools. Claude and Jean-Baptiste used the students’ stolen identities to file false and fraudulent tax returns with the IRS to fraudulently obtain tax refunds for their personal use and benefit. Claude and his co-conspirators caused over $200,000 in false and fraudulent tax refund claims to be submitted to the IRS from 2009 through 2011 through his EFIN and PTIN.

James Jean-Baptiste was charged with one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, seven counts of wire fraud, in violation of Title 18, United States Code, Section 1343, and seven counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). Jean-Baptiste remains at large.

Mr. Ferrer commended the investigative efforts of IRS-CI, USSS, and the North Miami Beach Police Department. The case was prosecuted by Assistant U.S. Attorney Gera R. Peoples.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Thomas Caul, Special Agent in Charge, Social Security Administration (SSA), Office of Inspector General (OIG), and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Emmanuel A. Adeife, of Miami, was sentenced today to 76 months in prison, followed by three years of supervised release, and was ordered to pay restitution of $321,213.70‎.

Adeife previously pled guilty today to one count of access device fraud, in violation of Title 18, United States Code, Section 1029(a)(2), one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A, and one count of failure to appear, in violation of Title 18, United States Code, Sections 3146(a)(1) and 3146(b)(1)(A)(ii).

According to court documents, from January to October 2013, Adeife filed approximately 112 Social Security Retirement Income Benefit (RIB) claims using names, dates of births, and social security numbers belonging to real people without their permission. Adeife directed that the RIB payments be paid onto prepaid debit cards in his control from which he made ATM withdrawals and conducted other transactions. He received RIB payments totaling $194,213.70 in connection with 45 of the claims.

On October 18, 2013, the grand jury returned an Indictment charging Adeife with access device fraud and aggravated identity theft (Case No. 13-20803-CR-Zloch), and Adeife was granted a bond. The Court later set a change of plea hearing for March 6, 2014 in this case, but Adeife knowingly failed to appear at the hearing, despite his attendance being required as a condition of his previous release. Adeife remained a fugitive until his second arrest on June 20, 2014.

After Adeife’s failure to appear, the law enforcement investigation into Adeife’s whereabouts revealed that he continued on the same conduct involving stolen identity fraud. Law enforcement analysis of the debit cards associated with Adeife revealed that Adeife, while on bond, filed stolen identity tax returns seeking approximately $198,000 in fraudulent refunds, of which he actually received approximately $127,000.

Mr. Ferrer commended the investigative efforts of SSA-OIG and IRS-CI. The case was prosecuted by Assistant U.S. Attorney Frank R. Maderal.

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.

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, announce that La Toya Yvette Tillman, 33, of Hollywood, was sentenced today to 36 months in prison, followed by three years of supervised release.

Tillman previously pled guilty to one count of possessing fifteen or more unauthorized access devices with the intent to defraud, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.

According to court documents, Tillman, who worked as a medical assistant at Gastroenterology Consultants in Hollywood, confessed to accessing the Memorial Healthcare System database through her computer at work to steal patient identities, including names, dates of birth, and social security numbers, so that she could sell them. She sold an individual approximately 2,000 identities for $1 each, and the individual told her that he used the identities to file fraudulent tax returns. In addition, in her car, Tillman had a list of 114 identities that included names, dates of birth, and social security numbers. Tillman knew that the victims did not authorize her to possess their personal identifying information.

Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. The case was prosecuted by Assistant U.S. Attorney Vanessa Snyder.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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.

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, announce the filing of a superseding indictment charging Yuri Sucart, 52, of Miami, FL, Juan Carlos Nuñez, 48, of Fort Lauderdale, FL, Lazaro Daniel Collazo, a/k/a “Lazer,” “Laser,” 50, of Hialeah, FL, and Paulo Berejuk, a/k/a “Pablo Berejuk,” “Paolo Berejuk,” 50, of Cutler Bay, with conspiring to distribute testosterone and human growth hormone to underage high school and professional athletes. 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 Sucart, Nuñez, and Collazo, were charged with conspiracy to distribute testosterone. Defendants Anthony Publio Bosch, Carlos Javier Acevedo, Jorge Augustine Velazquez, and Christopher Benjamin Engroba have entered guilty pleas and are pending sentencing in connection with this conspiracy.

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.

The superseding indictment charges Sucart, Collazo, Nuñez, and Berejuk 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; and one count of conspiracy to distribute human growth hormone, in violation of Title 21, United States Code, Sections 333(e)(1) and (e)(2). Additionally, Sucart has been charged with five counts of distribution of testosterone, in violation of Title 21, United States Code, Section 841(a)(1) and Title 18, United States Code, Section 2; and Collazo has been charged with one count of distribution of human growth hormone, in violation of Title 21, United States Code, Sections 333(e)(1) and (e)(2).

If convicted, the defendants face a maximum possible statutory sentence of 10 years in prison on each count.

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

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

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Lawrence Foster, 49, of Miami Beach, the President of Paradise is Mine, was found guilty by a federal jury in Miami of conspiring to commit wire fraud and seven counts of wire fraud. Johana Leon, 38, of Miami Beach, a corporate officer of Paradise is Mine, meanwhile, was found guilty of three counts of structuring currency transactions by the same jury.

The trial evidence showed that Paradise is Mine received approximately $8 million from approximately 90 investors after the company promised that it owned land in the Bahamas and would use investor funds to develop the island of Rum Cay in the Bahamas. In its promotional materials, Paradise is Mine claimed that it was featured in the Wall Street Journal, USA Today and other publications, and that Super Bowl MVP Joe Montana and other celebrities purchased land from Paradise is Mine. Bank records, however, show that no money went to the Bahamas. Instead, Leon withdrew over $1 million as cash below the $10,000 currency transaction reporting level. Foster spent investor money on personal expenses, including gardening and a Bentley GT. Witnesses from the Wall Street Journal and USA Today testified that the Paradise is Mine articles had never appeared in either publication. Finally, the accountant for Joe Montana testified that Mr. Montana never received land from Paradise is Mine.

United States District Judge Donald L. Graham remanded Foster to the custody of the Bureau of Prisons and set sentencing for January 5, 2015. Foster faces a maximum term of 20 years in prison for each count. Leon faces a term up to five years in prison for each count of conviction.

Mr. Ferrer commended the investigative efforts of the FBI. This case is being prosecuted by Assistant U.S. Attorneys H. Ron Davidson, Robert Watson, and Harold Schimkat.

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.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Richard Walker, Special Agent in Charge, United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations (OLRFI-Miami), and Jesse Panuccio, Executive Director, State of Florida’s Department of Economic Opportunity (DEO) announce that Rodney Fleurimond, 24, of Miami, was sentenced today before U.S. District Judge Federico A. Moreno to twenty-four months and one day in prison, to be followed by three years of supervised release. Fleurimond was furthered ordered to pay $60,405 in restitution.

Fleurimond previously entered a plea of guilty to one count of fraudulently using unauthorized access devices to obtain anything of value aggregative over $1,000, in violation of Title 18, United States Code, Section 1029(a)(2), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).

According to court records, from October 20, 2013 through June 26, 2014, the State of Florida unemployment insurance claims of at least 188 victims were accessed online from Fleurimond’s residences using the victims’ personally identifying information, including their names and social security numbers. A total of $60,405 in fraudulent unemployment insurance benefits was paid into bank accounts controlled or used by Fleurimond. Specifically, the fraudulent unemployment insurance claims of eleven victims were deposited into Fleurimond’s personal checking account; twelve additional fraudulent claims were deposited into other accounts associated with Fleurimond. Bank photographs reflect Fleurimond withdrew fraudulent funds from each of these accounts. The amount of loss resulting from Fleurimond’s offense was $142,905.

Mr. Ferrer commended the investigative efforts of OLRFI-Miami and DEO. This case was prosecuted by Assistant U.S. Attorney Jamie R. Galvin.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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.

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 David Boden, 53, of Ft. Lauderdale, pled guilty today in West Palm Beach before U.S. Magistrate Judge William Matthewman 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. At his sentencing, scheduled for January 9, 2015, before U.S. District Judge Kenneth A. Marra, the defendant faces a maximum five years imprisonment.

In connection with his guilty plea, Boden, who was an attorney with the now defunct RRA law firm, admitted that he cooperated with co-defendant Richard L. Pearson, who agreed to act as a broker for Rothstein’s settlements. Pearson would receive a sales commission from Rothstein derived from the money paid by the investor, and would pay a portion of that sales commission to Boden for his assistance in the sale of these settlements. Beginning in September 2009, a group of investors (hereinafter referred to as “the Investor Group”) began investing in the confidential settlement agreements following a meeting with Rothstein. Boden and Pearson agreed that the Investor Group would pay a sales commission directly to Pearson. The Investor Group was not informed by Boden or Pearson that they were also receiving an additional undisclosed sales commission from the money paid by the Investor Group to Rothstein. The defendant further admitted that, through material misstatements and omissions made to the Investor Group, Pearson and Boden caused the Investor Group to incur a loss of approximately $2,400,000.

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

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that defendant Daniel Ogletree, 25, pled guilty to one count of possession of 15 or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). Sentencing is scheduled for December 19, 2014 at 9:30 a.m. At sentencing, the defendant faces up to 10 years in prison for the access device charge, and a mandatory term of two years in prison, consecutive to any other term in prison, for aggravated identity theft.

According to court documents, law enforcement accompanied state probation officers during a probation check on the defendant’s residence. The defendant gave verbal consent for a search of his bedroom, and law enforcement found a handwritten sheet of paper containing a list of 15 names, dates of birth, and social security numbers. Law enforcement also found a bank statement in another person’s name that had that person’s social security number and date of birth handwritten on the bank statement. Ogletree admitted that it was his handwriting on the sheet of paper and bank statement, and that he did not personally know the people whose personal identifying information he wrote on the sheet.

Mr. Ferrer commended the investigative efforts of ICE-HSI and IRS-CI. The case is being prosecuted by Assistant U.S. Attorneys Timothy J. Abraham and John R. Byrne.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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.

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 Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announced that Richard Anthony Siler, 50, of Hollywood, was sentenced to 154 months in prison, followed by three years of supervised release after being convicted at trial of one count of use of unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(2), one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and three counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).

According to the evidence presented at trial, Siler had previously provided lists of individuals’ personal identity information to an FBI confidential source knowing the identity information would be used for identity theft tax refund fraud. In a subsequent recorded conversation, Siler told the confidential source that Siler could sell approximately “ten thousand” to “thirteen thousand” people’s identity information a week. Siler also told the confidential source that these identities were “never before revealed.” The evidence at trial established that Siler had worked for a company where he had access to lists of people’s personal identity information.

On February 14, 2014, Richard Siler sent an e-mail to the confidential source containing an attachment with the personal identity information of approximately 5,200 elderly Medicare patients. On that same date, the confidential source provided Siler with $6,200 in currency in exchange for those identities and Siler was arrested.

Mr. Ferrer commended the investigative efforts of the FBI and IRS-CI. The case was prosecuted by Assistant U.S. Attorney Michael N. Berger and Francisco Maderal.

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 Miami licensed physician assistant was sentenced today to serve 15 years in prison for participating in a Medicare fraud scheme involving approximately $200 million in fraudulent billings by American Therapeutic Corporation (ATC), a mental health company that was headquartered in Miami.

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

Robert Bergman, 65, of Miami, was sentenced by U.S. District Judge Jose E. Martinez in the Southern District of Florida. In addition to the prison sentence, Bergman was ordered to pay more than $85.3 million in restitution, both jointly and severally with his co-conspirators.

After a six-day trial, on July 18, 2014, a federal jury in the Southern District of Florida found Bergman guilty of one count of conspiracy to commit health care fraud and wire fraud, and one count of conspiracy to make false statements relating to health care matters.

Evidence at trial demonstrated that Bergman and his co-conspirators submitted false and fraudulent claims to Medicare through ATC, which operated purported partial hospitalization programs (PHPs) in seven different locations throughout South Florida and Orlando. A PHP is a form of intensive treatment for severe mental illness.

Evidence at trial also demonstrated that Bergman and other medical professionals at ATC fabricated and signed fraudulent medical documentation and patient files in order to justify ATC’s fraudulent billings to Medicare. Included in these false submissions to Medicare were claims for patients who were ineligible for PHP treatment because they were in neuro-vegetative states, in the late stages of diseases causing permanent cognitive memory loss, or had substance abuse issues and were living in halfway houses. Many of these patients were forced by assisted living facility owners and halfway house owners to attend ATC, and they did not receive treatment for their actual medical conditions.

ATC, an associated management company, and more than 20 individuals, including ATC’s owners, have all previously pleaded guilty or been convicted at trial. Bergman has been in federal custody since his conviction.

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

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

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

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Manuel Orosa, Chief, Miami Police Department, announce that Miguel Roman, 22, of Miami, was sentenced today before U.S. District Judge Ursula Ungaro to 102 months in prison, to be followed by three years of supervised release.

Roman previously pled guilty to one count of possession of three firearms and ammunition while a convicted felon, in violation of Title 18, United States Code, Section 922(g)(1), one count of possession of 15 or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).

According to court documents, during a search warrant on Roman’s apartment, law enforcement discovered three firearms, several boxes of ammunition, a variety of papers and documents reflecting the personally identifying information (PII) of other individuals, including names, dates of birth, and social security numbers, and several debit cards in other individuals’ names. The PII included a notebook containing many handwritten names, dates of birth, and social security numbers of other individuals, together with notations indicating Roman used the PII for fraudulent purposes. Also found were many documents reflecting PII, a large plastic bag containing notebooks of handwritten PII, forms from the Bureau of Prisons reflecting the PII of prisoners, and an envelope containing three treasury checks in other individuals’ names. In total, 1,114 unique names and social security numbers were discovered. Although not directly attributable to the defendant’s conduct, fraudulent tax returns were filed on behalf of at least sixteen of the individuals whose PII was found in Roman’s residence. The amount of loss resulting from the offense is $507,000.

Mr. Ferrer commended the investigative efforts of IRS-CI, the FBI, and the City of Miami Police Department. This case is being prosecuted by Assistant U.S. Attorney Jamie R. Galvin.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Louis N. Gallo, III, 45, of Parkland, the Vice-President of Commodities Online LLC (COL), was sentenced yesterday for his participation in a $21 million investment fraud scheme.

U.S. District Judge Joan Lenard sentenced Gallo to 168 months in prison, to be followed by three years of supervised release. Judge Lenard also ordered Gallo to pay restitution of $19,919,994 to victims of the fraud scheme involving COL as well as a successor company. In addition, the sentence included a criminal forfeiture money judgment of $21,631,466, and forfeiture of Gallo’s interest in a car, two bank accounts and three properties.

Gallo pled guilty on August 8, 2014 to one count of conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 1349. According to court documents, Gallo conspired with co-defendants James C. Howard, III, Patricia S. Saa, Michael R. Casey and others to defraud individuals who invested in COL. From approximately January 2010 through April 2011, Howard and his co-conspirators used material false and fraudulent representations and material omissions to obtain over $21 million from over 700 investors. The COL investors lost $18,919,994.

According to court documents, Gallo and his co-conspirators offered investors the opportunity to participate in funding certain purported “pre-sold” commodities contracts. Gallo and his co-conspirators represented to investors that COL had a track record of profits. However, COL did not have profits. Any payments made to investors were made using funds received from newer investors.

Also according to court documents, Gallo and his co-conspirators also caused material misrepresentations to be made about the leaders of COL. Gallo and his co-conspirators represented to investors that the President of COL was an attorney, co-defendant Michael R. Casey. However, the founder, co-defendant James Howard was in charge. Also, Gallo and his co-conspirators did not disclose to investors that both Gallo and Howard had previously been convicted of federal felonies and that Gallo was still serving a term of supervised release.

According to court documents, Gallo and his co-conspirators also made material misrepresentations and omissions about the misuse of funds that COL received from investors. For example, Gallo caused at least $2.5 million to be diverted for himself and his family.

Also according to court documents, after COL was taken over by a court-appointed Receiver, Gallo participated in a similar scheme involving Global Solutions and Acquisitions LLC (GSA). Approximately 50 individuals invested about $1.1 million in GSA. The GSA investors lost about $900,000.

Mr. Ferrer commended the investigative efforts of the FBI. This case was prosecuted by Assistant U.S. Attorneys Ana Maria Martinez and John P. Gonsoulin.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, announces that yesterday in Washington, D.C. Attorney General Eric Holder presented 278 Justice Department employees and 10 individuals, including one Assistant U.S. Attorney in the Southern District of Florida with Attorney General Awards. These annual awards recognize department employees and other individuals for their dedication to carrying out the Department of Justice’s mission.

U.S. Attorney Wifredo Ferrer stated, “This awards confirms that which I already know – that the attorneys and staff of the U.S. Attorney’s Office are of the highest caliber in the nation. I am proud that the Department has recognized AUSA Kevin Larsen for this well-deserved award. His dedication, hard work and commitment to the cause of justice makes him a worthy recipient of this great honor.”

“With this important event, we come together to honor some of our nation’s most distinguished, dedicated, and deserving public servants,” said Attorney General Holder. “The hard work and impressive achievements of these 278 award recipients have inspired their colleagues at every level of the U.S. Department of Justice – including me. Their leadership has been indispensable in defining the past year as one of historic accomplishment in the face of nearly unprecedented challenge.”

In the Southern District of Florida, the following individual was recognized for the following award:

The Attorney General’s Award for Fraud Prevention recognizes exceptional dedication and effort to prevent, investigate and prosecute fraud, white-collar crimes and official corruption. This team is honored for its exceptional perseverance, diligence and vision in the investigation, litigation and prosecution of allegations that Johnson & Johnson and two of its subsidiaries, Janssen and Scios, improperly promoted drugs, disregarded patient safety and paid kickbacks to enhance sales. The resolution marks the culmination of an extensive, coordinated eight-year investigation. The team’s extraordinary efforts resulted in three civil complaints and two criminal informations filed in the three different districts, and demonstrated an exemplary use of parallel proceedings. More important, the team’s efforts resulted in Johnson & Johnson paying in excess of $2.2 billion to resolve criminal and civil liability arising from its illegal misbranding and fraudulent marketing of drugs to vulnerable populations such as the elderly, children and those with developmental disabilities, and its payment of kickbacks to physicians and the nation’s largest long-term care pharmacy provider. The global resolution is the third largest health care fraud settlement in U.S. history, and with respect to Risperdal, the resolution is the largest settlement for one drug.

This year’s award is presented to Assistant U.S. Attorney Kevin James Larsen from the U.S. Attorney’s Office for the Southern District of Florida.

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.

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 Jacqueline Nicole Lee Warrick, 26, of Miami, was sentenced before U.S. District Judge Marcia G. Cooke. Warrick was sentenced to 30 months in prison, followed by three years of supervised release.

Warrick previously pled guilty to one count of using an authorized access device and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(2) and 1028A.

On July 30, 2014, co-defendant Tracey Delva, 27, of Deerfield Beach, pled guilty to one count of access device fraud, and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(2) and 1028A. Sentencing for Delva is scheduled for October 29, 2014.

On August 6, 2014, co-defendant Chouman Emily Syrilien, 25, of Lauderdale Lakes, was sentenced to 34 months in prison, to be followed by three years of supervised release. Syrilien pled guilty to one count of possession of 15 or more unauthorized access devices and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(3) and 1028A.

On October 1, 2014, Carlos Antonio Alexander, 24, of Orlando, was sentenced to 16 months in prison, followed by three years of supervised release. Alexander pled guilty to one count of using an authorized access device and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(2) and 1028A.

On September 3, 2014, Angel Arcos, 23, of Pompano Beach, was sentenced to time served, to be followed by four years of supervised release. As a condition of his supervised release, Arcos was subject to 180 days of home detention with electronic monitoring. Arcos pled guilty to one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349.

On September 3, 2014, Monique Smith, 31, of Pompano Beach, pled guilty to one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349, and one count of aggravated identity theft in violation of Title 18, United States Code, Section and 1028A. Arrington Basil Segu, 28, of Miami pled guilty to one count of access device fraud and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(2) and 1028A. Sentencing for Smith and Segu is scheduled for November 19, 2014.

On September 22, 2014, Shantegra La’Shae Godfrey, 23, of Deerfield Beach, pled guilty to one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349. Sentencing is scheduled for December 3, 2014.

According to court documents, defendant Syrilien was employed by Interactive Response Technologies, Inc. (IRT) located in Margate. IRT provides staffing for call centers to handle direct sales and customer inquiries for AT&T. Syrilien unlawfully provided a co-conspirator with the personal identifying information from multiple AT&T customer files. Segu also unlawfully provided personal identifying information of numerous individuals to the co-conspirator.

Alexander, Delva, Godfrey, Smith and Warrick were added as “authorized users” on victims’ credit or debit card accounts or bank accounts to access the accounts of persons whose personal identifying information had been stolen. Once a co-conspirator’s name was added as an “authorized user,” the bank and/or credit card company was directed to mail additional debit or credit cards bearing the names of these newly added “authorized users” to their addresses or addresses under their control, all without the true account holder's knowledge or consent. The defendants used these credit and debit cards to make purchases or obtain money.

Delva and Warrick both utilized fraudulently obtained debit and credit cards that bore their names as additional “authorized users” on victims’ accounts to make both retail purchases as well as cash advances in excess of $28,000. Alexander, Smith and Godfrey made retail purchases as well as cash advances in excess of $24,000, $12,000 and $8,200, respectively.

Arcos allowed his personal information to be used to open a bank account to further the fraudulent activity. From September 16 to 18, 2013, five withdrawals totaling $13,000 were made from the fraudulent account and deposited into Arcos’ checking account.

The defendants face a maximum of 30 years in prison for the conspiracy charge, a maximum of 10 years in prison for the access device fraud charge, and a mandatory term of two years in prison for the aggravated identity theft charge.

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

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Monty Stokes, Special Agent in Charge, United States Department of Veteran Affairs, Office of Inspector General (VA-OIG), announce the charges filed against Timothy Rouch, 47, Port St. Lucie, the former Chief of Prosthetics at VA Medical Center West Palm Beach, and Frankie Lane, 52, formerly of Boca Raton, owner of AAA Medical Discount, two defendants for conspiracy to commit healthcare fraud, in violation of Title 18, United States Code, Section 1349.

According to the information, the defendants conspired to fraudulently bill the VA in West Palm Beach for durable medical equipment that was never provided to veterans. The VA official solicited and received kickbacks from the vendor. AAA Medical Discount sold over $2.2 million in durable medical equipment to the VA from 2006-2010.

If convicted, each faces a statutory maximum penalty of up to 10 years in prison, to be followed by up to a three-year term of supervised release, and imposition of a $250,000 fine in addition to payment of restitution.

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

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

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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.

Gang Allegedly Responsible For Multiple Murders in Illinois, Indiana, and Florida

Ten alleged members of the violent Almighty Imperial Gangsters Nation gang have been indicted by a federal grand jury in the Southern District of Florida for their roles in various murders in Miami, Chicago, and East Chicago. Fifteen alleged members of the gang have now been charged by the Justice Department in this case.

U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Robert J. Holley of the FBI’s Chicago Field Office, and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.

The second superseding indictment returned by a federal grand jury on Oct. 9, 2014, and unsealed today, charges Robert Martinez, aka “Trap,” 20, of Miami, along with Rogelio Perez, aka “Popeye,” 40, Eddie Camacho, aka “NeNe,” 35, Miguel Pedraza, aka “Fuzzy,” 33, Ryan Perez, aka “Lil Dk,” 32, Carlos Mena, aka “Rollo,” 33, Carlos Gomez, aka “Lokes,” 35, and Guillermo Sinisterra, aka “Memo,” 26, all of Chicago, with conspiracy to participate in racketeering activity, including murder. Piero Benitez, aka “Bam Bam,” 27, of Skokie, Illinois, was charged with murder in aid of racketeering, and Santiago Salcedo, aka “Chino,” 25, of Miami, was charged with conspiracy to commit murder in aid of racketeering. Alleged fellow gang members Jose Herrera, aka “Spyro,” 27, Leonel Carrera, aka “Leo,” 25, Victor Lopez, aka “Magic,” Ramon Madruga, aka “Porky” 28, and Alex Enrique Somarriba, aka “A-Rock,” 28, all of Chicago, were previously charged in the superseding indictment unsealed in this case on Aug. 4, 2014, and remain charged in the second superseding indictment.

According to the second superseding indictment, all fifteen defendants are members of the Almighty Imperial Gangsters Nation, which is a nationally-known organized street gang that originated in the near northwest side of Chicago and spread to other regions of the United States, including South Florida. Members and associates of the Almighty Imperial Gangsters Nation allegedly engaged in acts of violence, including murder, attempted murder, battery, aggravated battery, and aggravated assault, as well as narcotics distribution and other criminal activities. Specifically, the indictment charges that the gang is responsible for twelve murders in Miami, Chicago and East Chicago, Indiana between 1985 and 2011, including the murder of a state prosecution witness whose cooperation with law enforcement ultimately led to the conviction of the gang’s South Florida leader, Victor Lopez, on cocaine distribution charges.

The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

This case is being investigated by the FBI field offices in Chicago, Miami, and Merrillville, Indiana, and the Bureau of Alcohol, Tobacco, Firearms and Explosives field office in Merrillville, Indiana, along with the Miami-Dade Police Department, the City of Miami Police Department, the Chicago Police Department, the Franklin Park, Illinois, Police Department, and the East Chicago, Indiana Police Department. The Florida Department of Corrections and the Broward County Sheriff’s Office also assisted with this case.

The case is being prosecuted by Joseph A. Cooley and Rebecca A. Staton of the Criminal Division’s Organized Crime and Gang Section, as well as the Forfeiture Section of the U.S. Attorney’s Office for the Southern District of Florida, with the assistance of the U.S. Attorneys’ Offices for the Northern District of Indiana and the Northern District of Illinois, as well as the State Attorneys’ Offices for Miami-Dade and Broward Counties in Florida and Cook County in Illinois.

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.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Gheorghe Adrian Lupu, 47, Nicolai Ceausescu, 39, Claudiu Florin Iordache, 23, Victor Ticus, 45, Marinel Aurelian Capra, 32, and Florian Laurentiu Nicola, 40, were sentenced yesterday for conspiracy to commit bank fraud. The defendants are Romanian nationals without known permanent addresses in the United States. Before their arrests, they were living in Miami. Lupu was sentenced to 33 months in prison, Ceausescu was sentenced to 78 months in prison, Iordache was sentenced to 57 monthsin prison, Ticus was sentenced to 82 months in prison, Capra was sentenced to 63 months in prison, and Nicola was sentenced to 74 months in prison.

According to the defendants’ admissions at their plea hearings and the parties’ submissions at sentencing, the defendants engaged in a scheme known as ATM “skimming.” The defendants operated this scheme by placing skimming devices and pinhole cameras on ATMs. The skimming devices fit over the ATMs’ card slots, such that ATM cards inserted into an ATM first passed through the skimming device. The skimming devices looked like parts of the ATMs themselves, so that customers were not aware that a device had been attached to the ATMs. The skimming devices allowed the ATMs to function properly, but first recorded the data encoded on the bank customers’ ATM cards. At the same time, the pinhole cameras surreptitiously recorded the customers’ PINs. The defendants then made counterfeit ATM cards by re-encoding the magnetic strips on other cards, such as gift cards. Using the counterfeit cards and the recorded PINs, the defendants made unauthorized withdrawals from the customers’ bank accounts. In total, the defendants installed skimming devices on ATMs on 53 occasions known to the government, after which they withdrew $340,584 from 314 accounts.

A seventh defendant, Laurentiu Grimberg, was previously sentenced to 63 months in prison.

Mr. Ferrer commended the investigative efforts of ICE-HSI and the FBI. This case was prosecuted by Assistant U.S. Attorney Marc Osborne.

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.

Twelve Liberty City residents were arrested today for probation violations. As part of the arrests, three guns were seized.

The announcement was made by Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Katherine Fernandez Rundle, Miami-Dade State Attorney, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, Chief Manuel Orosa, Chief, Miami Police Department (MPD), Hector Llevat, Major, Miami-Dade Police Department (MDPD), and Sunny J. Ukenye, Circuit Administrator for Circuit 11 Miami-Dade, Florida Department of Corrections Probation & Parole (FDOC).

Today’s proactive enforcement operation in Liberty City resulted in 12 arrests for probation violations. Three of the arrests were for possession of a firearm by a convicted felon. The guns seized were: a revolver; a semi-automatic pistol; and an AK-47 assault rifle.

Two of the arrests were for the possession of several fraudulent credit cards and over 100 fraudulently obtained personal identifying information. Seven arrests were for drug-related crimes, which included the possession of heroin, cocaine, and marijuana.

“Today, we announce the results of the most recent partnership between federal and state law enforcement to combat violent crime in our communities. The goal of the Violence Reduction Partnership is to help neighborhoods plagued with violent crime shake off the cycle of violence and make those neighborhoods safer for all residents,” stated U.S. Attorney Wifredo Ferrer. Enforcement of criminal statutes is an integral component of our holistic approach to community building. But we cannot arrest our way out of violent crime. For that reason, our Partnership also focuses on community-partnering, crime prevention, and reentry assistance for offenders attempting to put their pasts behind them and build healthy, productive lives in our community. The results of this operation clearly illustrate that we remain committed to this comprehensive approach.”

“The State Attorney’s Office is committed to the pro-active partnership of federal, state and local law enforcement which maximizes our resources in order to focus the most violent offenders in our community,” explains State Attorney Katherine Fernandez Rundle. “These joint efforts allow us to protect our community; build trust with them; and foster a safe environment for our families.”

Special Agent in Charge Hugo Barrera said, “Today’s arrests demonstrate law enforcement’s commitment to disrupt violent criminals that are affecting the quality of life of our law abiding citizens. This partnership illustrates the collaborative teamwork with all levels of government, federal, state and local together bringing their expertise and unique abilities with one goal to combat violent crime in our community.”

Chief Manuel Orosa stated, “It is unfortunate that individuals given a second chance at freedom abuse the system and decide to do wrong. Therefore, it is imperative to have these operations to ensure compliance since they cannot do what’s right.”

“The Miami-Dade Police Department is proud to work in collaboration with our law enforcement partners to reduce street violence in our community,” stated Major Hector Llevat. “Today’s operation serves as just one example of our collective determination to reach that goal. Through strategic partnerships such as the North-end Street Violence Task force, we can leverage our strengths and act as a force multiplier in combating criminals wherever they may hide.”

“The Florida Department of Corrections is committed in changing lives to ensure a safer Florida,” stated Circuit Administrator Sunny J. Ukenye.

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

Mr. Ferrer commended the investigative efforts of ATF, MPD, MDPD, and FDOC. Mr. Ferrer also thanked U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations, and Federal Bureau of Investigation, Miami Field Office, for their participation in and assistance with this initiative. This initiative was led by Roy K. Altman, Deputy Chief of the Special Prosecutions Section.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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.

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 Richard L. Pearson, 57, of Miami, pled guilty today in West Palm Beach before U.S. Magistrate Judge William Matthewman 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. At his sentencing, scheduled for January 9, 2015, before U.S. District Judge Kenneth A. Marra, the defendant faces a maximum five years imprisonment.

In connection with his guilty plea, Pearson admitted that he agreed to act as a broker for Rothstein’s settlements. Pearson would receive a sales commission from Rothstein derived from the money paid by the investor, and would pay a portion of that sales commission to RRA attorney David Boden for his assistance in the sale of these settlement. Beginning in September 2009, a group of investors (hereinafter referred to as “the Investor Group”) began investing in the confidential settlement agreements following a meeting with Rothstein. Boden and Pearson agreed that the Investor Group would pay a sales commission directly to Pearson. The Investor Group was not informed by Boden or Pearson that they were also receiving an additional undisclosed sales commission from the money paid by the Investor Group to Rothstein. The defendant further admitted that, through material misstatements and omissions made to the Investor Group, Pearson and Boden caused the Investor Group to incur a loss of approximately $2,400,000.

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

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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.

93 defendants have been charged to date in Operation Sledgehammer I-VI

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Jeff Atwater, Florida Chief Financial Officer, and Dave Aronberg, State Attorney, Office of the State Attorney for Palm Beach County, announce that defendants Kenneth Karow, 54, chiropractor, of West Palm Beach, Hermann J. Diehl, 44, chiropractor, of Miami, and Hal Mark Kreitman, 50, former chiropractor, of Miami Beach, were sentenced before U.S. District Judge Kenneth A. Marra for their participation in a massive staged automobile accident scheme based in Palm Beach and Miami-Dade Counties.

Defendant Karow was sentenced to 11 years in prison; defendant Diehl was sentenced to nine years in prison; and defendant Kreitman was sentenced to eight years in prison.

After a seven-week trial before U.S. District Judge Kenneth A. Marra, a federal jury in West Palm Beach convicted all of the defendants of one count of conspiracy to commit mail fraud, in violation of Title 18, United States Code, Section 1341, all in violation of Title 18, United States Code, Section 1349; and one count of conspiracy to commit money laundering, in violation of Title 18, United States Code, Sections 1956(a)(1), all in violation of Title 18, United States Code, Section 1956(h). Defendant Karow was convicted of 48 substantive counts of mail fraud, in violation of Title 18, United States Code, Sections 1341 and 2, and 11 substantive counts of money laundering, in violation of Title 18, United States Code, Sections 1956(a)(1)(A)(i), 1956(a)(1)(B)(i), 1956(a)(1)(B)(ii) and 2. Defendant Diehl was convicted of two substantive counts of mail fraud and three substantive counts of money laundering. Defendant Kreitman was convicted of 21 substantive counts of mail fraud and two substantive counts of money laundering.

According to the fourth superseding indictment, these defendants were charged with defrauding insurance companies out of Personal Injury Protection (“PIP”) insurance payments through the use of the United States Mails. This indictment alleges that the fraud was committed in a number of ways, including: (1) by soliciting licensed chiropractors, including defendants Karow and Diehl, who would serve as the “named owners” of chiropractic clinics although others would maintain financial control over the businesses in order to avoid Florida’s licensing restrictions; (2) by recruiting individuals to participate in staged automobile accidents or persons who had been in real automobile accidents but who had not suffered any injuries to attend chiropractic clinics and make claims for reimbursement for treatments that were neither needed nor received; (3) submitting fraudulent claims to insurance companies stating that the bills were for treatments that were medically necessary and were actually received when neither was true; (4) submitting claims to insurance companies without attempting to collect co-pays and deductibles from the insureds and without disclosing that fact to the insurance companies; and (5) converting the money collected from the insurance companies to cash which would be used to pay recruiters, patients, and other participants, and to enrich the members of the conspiracy.

This superseding indictment was the latest in a series of federal and state charges that have been part of a four-year investigation into a massive staged automobile accident/fraudulent chiropractic clinic scheme based in Palm Beach and Miami-Dade Counties. The joint federal and state law enforcement investigation, dubbed Operation Sledgehammer, has resulted in charges filed against 93 defendants for their participation in this automobile insurance fraud scheme. Of those 93 defendants, 57 have been charged federally by the U.S. Attorney’s Office, resulting in court-ordered restitution of more than $11 million to the defrauded insurance companies, and 51 of those 57 defendants have been convicted by jury or by guilty plea. The remaining six defendants are fugitives. Another thirty-six defendants have been charged by the Palm Beach County State Attorney’s Office.

According to the evidence presented at trial, between October 2006 and December 2012, the defendants and their co-conspirators staged automobile accidents and thereafter caused the submission of false insurance claims through chiropractic clinics they controlled. To execute the scheme, the true owners of the chiropractic clinics allegedly recruited individuals, who had the medical or chiropractic licenses required by the state to open a clinic, to act as “nominee owners” of the clinics. The defendants also recruited individuals, whom they referred to as “Macho” and the “Hembra” or the “Perro” and “Perra,” to participate in the accidents, and others to help the clinics launder the insurance proceeds. The defendants also hired complicit chiropractors, including Diehl, Karow and Kreitman, and therapists who prescribed and billed for unnecessary treatments and/or for services that had not been rendered. Thereafter, complicit clinic employees prepared and submitted claims to the automobile insurance companies for payment for these unnecessary or non-rendered services. Twenty-one clinics participated in this scheme.

Mr. Ferrer commended the efforts of the FBI, IRS-CI, the Florida Division of Insurance Fraud, the Palm Beach County State Attorney’s Office, and the Greater Palm Beach County Health Care Fraud Task Force for their outstanding work in this case. Mr. Ferrer also recognized the National Insurance Crime Bureau (NICB) for its collaboration and assistance in this investigation. This case was handled by Assistant U.S. Attorneys A. Marie Villafaña and E.J. Yera.

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.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Attorney General Pam Bondi announce the sentencing of Yamile Calvo-Gonzalez, 41, of Homestead. United States District Judge Joan A. Lenard sentenced Calvo-Gonzalez to 66 months in prison, to be followed by three years of supervised release, and ordered her to pay $2,015,286.24 in restitution to the Centers for Medicare and Medicaid Services.

Calvo-Gonzalez, who previously pled guilty to conspiracy to commit health care fraud, in violation of 18 U.S.C. §1349, was the owner of WY Medical Group and Rehabilitation Services, Inc., located in Miami-Dade County.

“Health care fraud threatens the strength and integrity of our health care system,” said U.S. Attorney Ferrer. “As I have previously stated, we remain steadfast in our efforts to protect Medicaid from fraud and abuse for those who need it – the sick, the elderly and the poor. We will continue to work with our state and local law enforcement partners to bring justice to anyone seeking to defraud Medicaid.”

“We will continue to partner with federal, state and local agencies to uphold the integrity of the Medicaid program and to protect taxpayer dollars,” said Attorney General Pam Bondi.

The Health Care Fraud Prevention and Enforcement Action Team (HEAT), is comprised of the Department of Health and Human Services-Office of the Inspector General (HHS-OIG), the Department of Justice and other federal, state and local agencies. The Florida Office of the Attorney General’s Medicaid Fraud Control Unit and HHS-OIG investigated this case.

Mr. Ferrer commended the investigative efforts of Florida Office of the Attorney General, Medicaid Fraud Control Unit. The case was prosecuted by Special Assistant United States Attorney Hagerenesh Simmons.

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

Three Miami residents have been charged in a superseding indictment with health care fraud violations stemming from a $23 million Medicare fraud scheme. Two of the defendants are also charged with drug trafficking for submitting fraudulent prescriptions for oxycodone and other drugs to pharmacies.

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

On Oct. 9, 2014, a grand jury sitting in the Southern District of Florida returned a 16-count superseding indictment, charging Guillermo Delgado, 45; Gabriel Delgado, 42; and Emerson Carmona, 43, with conspiracy to pay and receive health care kickbacks and the receipt of kickbacks. Guillermo Delgado and Gabriel Delgado were also charged with conspiracy to commit money laundering, and Gabriel Delgado was charged with four money laundering counts. In addition, Guillermo Delgado and Emerson Carmona were charged with conspiracy to commit health care fraud and conspiracy to possess with intent to distribute a controlled substance.

The superseding indictment alleges that Jose Carlos Morales, 57, co-owned two pharmacies, Pharmovisa Inc., Pharmovisa Limited, and PharmovisaMD Inc. Between March 2006 and September 2012, Morales paid kickbacks to brothers Guillermo Delgado and Gabriel Delgado, as well as Carmona, for Medicare beneficiary information, which Morales then used to submit more than $23 million in fraudulent claims to Medicare and Medicaid. The Delgado brothers allegedly concealed the kickbacks by disguising them as legitimate payments for services purportedly provided by shell companies under their control.

The superseding indictment also alleges that from June 2010 through September 2011, Guillermo Delgado and Carmona delivered or caused the delivery of fraudulent prescriptions for oxycodone, oxymorphone and other prescription drugs to Morales’s pharmacies. Morales filled the fraudulent prescriptions and submitted fraudulent claims for reimbursement to Medicare. Guillermo Delgado and Carmona allegedly gave the drugs to other co-conspirators for resale.

On Dec. 7, 2012, Morales pleaded guilty to one count of conspiracy to commit health care fraud and one count of conspiracy to defraud the United States and pay illegal health care kickbacks. On Feb. 26, 2013, he was sentenced to serve 14 years in prison.

The charges contained in the superseding indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

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

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

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

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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.

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 an indictment was unsealed today charging Frank Spinosa, 53, of Ft. Lauderdale, with conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, and five counts of wire fraud, in violation of 18 U.S.C. § 1343. If convicted, the defendant faces a maximum sentence of twenty years in prison and a $250,000 fine on each count.

The indictment, which was returned by a grand jury in Ft. Lauderdale on October 9, 2014, charges that the defendant was a Regional Vice President of TD Bank who, from in or about 2008 through in or about November 2009, conspired to defraud various investors. In 2009, it was discovered that Rothstein, Rosenfeldt and Adler, P.A. 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.

The indictment charges that Spinosa and Rothstein agreed to utilize the prestige and legitimacy of TD Bank, and Spinosa’s position as Regional Vice President, to give investors in the scheme a false sense of security and induce them into investing in the confidential settlements by fraudulently creating documents that made it appear that certain investment funds were being held in restricted accounts at TD Bank, when they were not, and by fraudulently asserting that certain balances were being held within specified accounts at TD Bank, when they were not.

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

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

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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.

U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida and Acting Assistant Attorney General Molly Moran for the Justice Department’s Civil Rights Division announced today that Rafael Alberto Cadena-Sosa pleaded guilty in the Southern District of Florida to one count of conspiracy and one count of holding a person in involuntary servitude. Cadena-Sosa faces a maximum sentence of 15 years in prison and a fine of $500,000. Sentencing is scheduled to occur on Jan. 27, 2015, before United States District Judge Jose Martinez. According to the terms of the plea agreement, the parties will recommend the maximum sentence of 15 years and over $1.26 million in restitution to the victims.

Cadena-Sosa, a 45 year-old Mexican national, pleaded guilty to holding the victim, a young, undocumented Mexican national, in involuntary servitude from 1996 to 1997, using beatings, rapes, threats of harm toward the victim and her family and threats of arrest to compel her to engage in prostitution to pay off a smuggling debt. Cadena-Sosa also pleaded guilty to conspiring with other members of the Cadena organization to commit additional offenses in connection with the scheme.

Sixteen defendants were charged in a superseding indictment filed in 1998. Cadena-Sosa was arrested in Mexico and extradited to the United States in November 2013. Four other family members have been convicted, including Cadena-Sosa’s uncle, Rogerio Cadena, who pleaded guilty in 1999 and was sentenced to 15 years; Cadena-Sosa’s brother, Abel Cadena-Sosa, who was convicted in Mexico and sentenced to 24 years, and two other brothers, Hugo and Juan Luis Cadena-Sosa, who pleaded guilty 2002 and 2008, and were sentenced to 5 years and 15 years, respectively. Six other defendants have pleaded guilty in federal court in connection with the scheme, and one was convicted in state court for a murder outside a Cadena-run brothel.

According to court records, the defendant and other members of the Cadena organization recruited young women and girls, some as young as fourteen, in Veracruz, Mexico, and lured them to the United States on false promises of legitimate jobs. The defendants then smuggled the victims into the United States, imposed heavy smuggling debts, and compelled them into prostitution for twelve hours a day, six days a week, using brutal assaults, rapes and threats to control the victims and punish those who attempted to escape.

“Undoubtedly, sex trafficking is one the most serious crimes prosecuted by our Office and the Department of Justice,” said U.S. Attorney Ferrer. “The heinous acts committed against these young women and girls by the Cadena organization simply cannot be tolerated, and we will continue to identify, arrest and prosecute those who seek to profit at the expense of the suffering of others. The victims here are survivors and today’s plea represents one more step towards closure in a case that has taken them down a long road to justice.”

“No human being should have to endure the atrocities these young women and girls suffered at the hands of the Cadena organization,” said Acting Assistant Attorney General Moran. “These violations of the victims’ individual rights and freedom are intolerable in a nation founded on rights, liberty, and the rule of law. The Department of Justice will continue in its relentless efforts to bring human traffickers to justice and restore the rights and dignity of the courageous survivors of this crime.”

“Rafael Alberto Cadena-Sosa is a brutal criminal who threatened and coerced young victims into prostitution to pay off smuggling debts,” said FBI Special Agent in Charge George L. Pira of the FBI’s Miami Office. “He is now behind bars in large part due to the diligence and dedication of our many law enforcement partners who helped bring this case to justice.”

U.S. Attorney Ferrer and Acting Assistant Attorney General Moran commended the collaborative efforts of multiple law enforcement agencies throughout the investigation and prosecution, including the Federal Bureau of Investigation, the Department of Homeland Security’s Customs and Border Protection and Immigration and Customs Enforcement, the Bureau of Alcohol, Tobacco and Firearms, Florida Department of Law Enforcement, Palm Beach County Sheriff’s Office, West Palm Beach Police Department, Okeechobee County Sheriff’s Office, Fort Pierce Police Department, Avon Park Police Department, Boynton Beach Police Department and Lee County Sheriff’s Office. They also thanked the Justice Department’s Office of International Affairs for its assistance with the extradition. The case is being prosecuted by Assistant United States Attorney Adam McMichael and Trial Attorney Matthew Grady of the Civil Rights Division’s Human Trafficking Prosecution Unit.

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.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, and Manuel Orosa, Chief, Miami Police Department (MPD), announce charges against 21 members and associates of the Big Money Team, a street gang operating in the Little Havana and Allapattah neighborhoods of Miami. The second superseding indictment includes charges of conspiracy to possess and possession of controlled substances with intent to distribute, in violation of Title 21, United States Code, Sections 841 and 846, possession of firearms in furtherance of drug trafficking and violent crime, in violation of Title 18, United States Code, Section 924, firearm and ammunition possession by convicted felons, in violation of Title 18, United States Code, Sections 922 and 924, carjacking, in violation of Title 18, United States Code, Section 2119, and commission of violent crime in aid of racketeering, in violation of Title 18, United States Code, Section 1959.

The following 17 individuals are charged in the second superseding indictment: 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; Dayaan Zerquera a/k/a “Dsbf BMT Kid,” 24; Raymond Moore a/k/a “Flaco,” a/k/a “Dinero Banks,” a/k/a “Young Gunna,” 22; Alioth Salas, a/k/a “Ali,” 27; Luis Salas a/k/a “Chico Black,” 22; Christian Ramirez a/k/a “Joker,” 31; Joseph Thompson a/k/a “Joe,” 29; Carlos Tinoco a/k/a “C-Lo,” 22; James Dixon a/k/a “Smoke,” 20; Steven Castro a/k/a “YM Stevo,” 23; Dwight Forte, 22; Jay Anthony Flores a/k/a “Jay Gambino,” 19; Joel Diaz a/k/a “Borie,” a/k/a “El Paisa,” and a/k/a “Buom Clock,” 25; Fernando Roberto Darce a/k/a “Bonesz,” 20; and Mario Balboa, 29; all of Miami.

According to the second superseding indictment, these 17 defendants and co-defendants Nadim Guzman, 21, Angel Martinez, a/k/a “Telly,” a/k/a “Tboy,” 22, Kevin Diaz, 19, and Miguel Rodriguez, a/k/a “Fat Boy,” a/k/a “Barba,” 19, each of Miami, were members or associates of the “Big Money Team,” a street gang that engaged in violent crime, such as, robbery, assault, directed prostitution, armed street-level drug trafficking and obstruction of justice.

As alleged in the second superseding indictment, Big Money Team enriched its members and associates through, among other things, robbery, prostitution, and distribution of controlled substances, such as crack cocaine, Molly, and marijuana; preserving and protecting the power, territory, and profits of the gang through assault, obstruction of justice, intimidation, violence, and threats of violence; and keeping victims and witnesses in fear of the gang members and associates through threats of violence and violence.

Additionally, defendant Luis Salas is charged with one count of carjacking on or about May 31, 2014.

Co-defendants Nadim Guzman, Angel Martinez, and Kevin Diaz charged by a prior indictment on June 13, 2014, previously pled guilty to charges of conspiracy to possess controlled substances with intent to distribute, in violation of Title 21, United States Code, Section 846. Co-defendant Miguel Rodriguez, also charged by the prior indictment, previously pled guilty to charges of conspiracy to possess and possession of controlled substances with intent to distribute, in violation of Title 21, United States Code, Sections 841 and 846. Sentencing for Nadim Guzman is scheduled for October 15, 2014, before U.S. District Judge Kathleen M. Williams. Sentencing for Miguel Rodriguez, Kevin Diaz, and Angel Martinez is scheduled for December 2, 2014, also before Judge Williams. Defendants Nadim Guzman, Angel Martinez, and Kevin Diaz each face up to 40 years in prison, to be followed by up to five years of supervised release. Defendant Miguel Rodriguez faces up to 200 years in prison, to be followed by up to five years of supervised release.

Co-Defendants Maurin Chacon, Christopher Altamirano, Rodolfo Portela, Dayaan Zerquera, Raymond Moore, Christian Ramirez, and James Dixon, originally charged by a prior indictment on June 13, 2014, are scheduled for trial commencing on December 1, 2014, before Judge Williams.

Defendants Carlos Tinoco, Luis Salas, Fernando Roberto Darce, Steven Castro, Jay Anthony Flores and Dwight Forte made their initial appearances before U.S. Magistrate Judge Goodman. Defendant Joseph Thompson is expected to make his initial appearance next week before U.S. Magistrate Judge Alicia M. Otazo-Reyes. Defendants Alioth Salas, Joel Diaz and Mario Balboa remain at large.

If convicted, each of the defendants faces up to life in prison for conspiring to possess controlled substances with intent to distribute. Defendant Maurin Chacon, Christopher Altamirano, Rodolfo Portela, Dayaan Zerquera, Raymond Moore, Christian Ramirez, and James Dixon face up to twenty years in prison for possession of controlled substances with intent to distribute. Defendant Maurin Chacon, Christopher Altamirano, Rodolfo Portela, Dayaan Zerquera, Christian Ramirez, Joseph Thompson, Carlos Tinoco, Dwight Forte, and Joel Diaz face up to life in prison for possession of firearms in furtherance of drug trafficking or violent crime. Defendants Maurin Chacon and Dayaan Zerquera face up to ten years in prison for firearm and ammunition possession by convicted felons. Defendants Rodolfo Portela and Joseph Thompson face up to life in prison for firearm and ammunition possession by convicted felon armed career criminals. Defendants Maurin Chacon, Christopher Altamirano, Joseph Thompson and Dwight Forte faces up to twenty years in prison on the commission of violent crime in aid of racketeering charge. Defendant Luis Salas faces up to fifteen years in prison on the carjacking charge.

U.S. Attorney Wifredo Ferrer stated, “Today’s charges are possible because of the continued cooperation between federal and local law enforcement to combat gang-related crime in our communities. The arrest of these defendants represents a significant victory to the residents of Little Havana and Allapattah, as we have effectively removed eighteen members and associates of the violent street gang, ‘Big Money Team.’ We will continue to prosecute individuals whose violent criminal conduct and brazen threats paralyze neighborhoods with fear as federal law, including the Violent Crime in Aiding and Abetting Racketeering statute, charged today, provides stiff penalties for repeat offenders, drug traffickers, and firearm violators. Our office is proud of this collaborative relationship and looks forward to many more operations – like this one – aimed at making our communities safer.”

“Today’s arrests demonstrates law enforcement’s commitment to dismantle violent drug trafficking gangs that are affecting the quality of life of our law abiding citizens in the community. The key to this fight is bringing the resources of all levels of government to empower law enforcement to target organized groups of violent criminals with enhanced punishment and criminal penalties through the utilization of federal statutes, such as, the Violent Crime in Aiding and Abetting Racketeering statute. This sends a clear message that our community will not tolerate the heinous activity perpetrated by gangs like Big Money Team, and evidences our commitment to work together to dismantle violent street gangs,” stated Hugo Barrera, Special Agent in Charge, ATF, Miami Field Division.

Chief of Police Manuel Orosa stated, “I am committed to improving the neighborhood of Little Havana and ridding it of thugs and drug dealers. This community is special to me because it is the neighborhood I grew up in.”

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

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

Attachment:

BMT Second Superseding Indictment (PDF)

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.

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 Michael Stephens, Acting Inspector General, Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG), announce that Barry J. Graham, 59, of Ft. Myers, was charged by superseding information with conspiracy to commit bank fraud, in violation of Title 18 United States Code, Section 371, in connection with a $300 million Ponzi scheme involving the sale of vacation rental units to approximately 1,400 investors in the Florida Keys and elsewhere.

Cay Clubs Resorts and Marinas (Cay Clubs) operated from 2004 through 2008 from offices in the Florida Keys and Clearwater. Cay Clubs marketed vacation rental units for 17 locations in Florida, Las Vegas and the Caribbean, to investors throughout the United States. Cay Clubs would promise to develop dilapidated properties into luxury resorts, and would promise investors an upfront “leaseback” payment of 15 to 20% of the sales price of the unit at the time of closing. Once an investor agreed to purchase a unit, Cay Clubs would arrange for a real estate closing and lender financing, but would not disclose the leaseback payment and other financial inducements to the borrowers on paperwork submitted to lending institutions.

According to the superseding information, Graham was the Director of Sales for Cay Clubs from 2004 through late 2007. During this time, Graham conspired with others to fraudulently inflate the prices of Cay Clubs units through insider sales. Graham 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. Furthermore, the information alleges, as Cay Clubs experienced financial difficulties, Graham conspired with others 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.

Previously, Fred Davis Clark, Jr., and Cristal R. Clark, a/k/a Cristal R. Coleman, were charged by superseding indictment on September 16, 2014, with conspiracy to commit bank fraud and substantive counts of bank fraud, in connection with the alleged Cay Clubs Ponzi scheme. The defendants were ordered detained pretrial and the matter is currently pending before U.S. District Judge Jose E. Martinez in Key West.

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. This matter is being prosecuted by Assistant U.S. Attorney Jerrob Duffy.

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

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, announce that defendants Juan Francisco Soca, Sr., 64, of Stock Island, pled guilty yesterday to one count of possession with the intent to distribute cocaine, in violation of Title 21, United States Code, Section 841(a)(1), and his son, Juan Francisco Soca, Jr., 43, of Key West, pled guilty to conspiracy to possess with the intent to distribute cocaine, in violation of Title 21, United States Code, Section 846. Sentencing is scheduled for December 15, 2014, at 2:00 p.m., before U.S. District Judge Jose Martinez. At sentencing, Juan Francisco Soca, Sr., faces up to 40 years in prison and Juan Francisco Soca, Jr., faces up to life in prison. Jose Antonio Soca, 38, of Stock Island, a cousin of Juan Francisco Soca, Jr., who had previously pled guilty to conspiracy to possess with the intent to distribute cocaine, was sentenced yesterday by Judge Martinez to 55 months in prison.

According to court documents, Juan Francisco Soca, Jr. and Jose Antonio Soca each sold cocaine to a confidential source on separate occasions, and based on those transactions, law enforcement officers obtained and executed a search warrant for the mobile homes where Juan Francisco Soca, Sr. and Jose Antonio Soca lived on Stock Island. Law enforcements officers found $235,398 in cash hidden inside pipes, 7.5 grams of cocaine base, and 3,084 grams of cocaine buried in the yard of Juan Francisco Soca, Sr. On the adjoining property of Jose Antonio Soca, officers found approximately 5,880 grams of cocaine, 570 30-mg oxycodone tablets, 1,332 alprazolam tablets, and $4,370 in cash.

During the arrest of Soca, Jr. on January 29, 2014, outside of his apartment located in Key West, officers found him in possession of 360 30-mg oxycodone tablets and $12,493 in cash. Of this money, $1,305 matched the prerecorded currency that the confidential source had given to Soca, Jr. during the transaction on January 28, and $200 matched the currency given by the confidential source to Jose Antonio Soca during the transaction on January 23. During a consensual search of the storage unit at Soca, Jr.’s apartment, officers found 164 oxycodone pills. Officers also executed a search warrant at a shed located at the Stock Island Lobster Company where Soca, Jr. had engaged in a cocaine transaction with the confidential source. During the search, the officers found 19 grams of cocaine, 958 grams of marijuana, and 132 30-mg oxycodone tablets.

Mr. Ferrer commended the investigative efforts of ICE-HSI, the Key West Police Department and the Monroe County Sheriff’s Office. This case is being prosecuted by Assistant U.S. Attorney Michael Thakur and Special Assistant U.S. Attorney Mark Wilson.

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 citizen and resident of Costa Rica pleaded guilty today to conspiracy to smuggle more than 25 undocumented immigrants to the United States.

U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, and Special Agent in Charge Clark E. Settles of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations’ (HSI) Washington, D.C., Field Office made the announcement.

Mercedes Morera Roche, 49, was extradited to the United States from Panama on Aug. 21, 2014, to face charges for smuggling more than 25 undocumented immigrants from Cuba to the United States.

According to her plea agreement, Roche admitted that between 2004 and 2011, she was an organizer of a human smuggling network that provided instructions, fraudulent identity and travel documents, escorts, transport, safe house locations, and other assistance to facilitate the illicit travel of undocumented immigrants to the United States. Roche admitted that in some cases, she provided fraudulent passports so that undocumented immigrants could fly to the United States with the help of corrupt foreign airline and immigration officials. Roche directed the immigrants to destroy the fraudulent documents during the flights before landing at United States airports and instructed the immigrants about engaging with authorities at the airports. In other cases, Roche coordinated the smuggling of undocumented immigrants via land through Latin America and Mexico into the United States. Roche solicited payments of up to $10,000 for each undocumented immigrant.

Roche’s sentencing is scheduled on Dec. 11, 2014, before U.S. District Court Judge Ursula M. Ungaro of the Southern District of Florida.

The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.

The investigation was conducted by HSI’s Washington, D.C. Field Office with support from the Human Smuggling Trafficking Center and U.S. Customs and Border Protection’s National Targeting Center. Critical assistance was also provided by HSI’s Miami Field Office and the ICE Attaché Office in Panama. Extradition assistance was provided by the Criminal Division’s Office of International Affairs, Interpol Washington and the United States Marshals Service. The Justice Department is grateful for the significant assistance provided by the Panamanian Ministry of Foreign Affairs. This case is being prosecuted by Trial Attorney Michael Sheckels of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Robert Emery of the Southern District of Florida.

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.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Maureen O’Mara, Special Agent in Charge, United States Environmental Protection Agency, Criminal Investigation Division (EPA-CID), Michael A. Hill, Special Agent in Charge, United States Environmental Protection Agency, Office of Inspector General (EPA-OIG), Atlanta Field Office, and Colonel/Director Calvin Adams, Florida Fish and Wildlife Conservation Commission, Division of Law Enforcement (FWCC), announce that New Nautical Coatings, Inc., d/b/a “Sea Hawk Paints,” Sea Hawk Refinish Line, Inc., d/b/a “Refinish Line Auto Supplies,” of Clearwater, and Erik Norrie, 42, David Norrie, 46, Jason Revie, 44, and Tommy Craft, 46, each of Hillsborough County, pled guilty before United States District Judge Ursula Ungaro.

New Nautical Coatings, Inc. and David Norrie pled guilty to willfully conspiring to corruptly obstruct the due and proper administration of law under which a pending proceeding was being had before the Environmental Protection Agency, in violation of Title 18, United States Code, Section 371. At sentencing, David Norrie faces up to five years in prison, up to three years of supervised release, and a $250,000 fine. At sentencing, New Nautical Coatings, Inc. faces a fine of up to $500,000, or twice the gross pecuniary gain resulting from the offense, whichever is greater, and a term of probation of not less than one year and not more than five years. Pursuant to the terms of the plea agreement, New Nautical has agreed to pay a fine of $1,235,315.00, and implement a comprehensive Environmental Compliance Plan in cooperation with the U.S. Attorney’s Office and the EPA.

Sea Hawk Refinish Line and Erik Norrie pled guilty to willfully conspiring to knowingly distribute and sell an unregistered pesticide, in violation of Title 18, United States Code, Section 371. Jason Revie and Tommy Craft pled guilty to knowingly distributing and selling an unregistered pesticide, in violation of Title 7, United States Code, Section 136j(a)(1)(A). At sentencing, Erik Norrie, Jason Revie and Tommy Craft face up to one year in prison, up to one year of supervised release and a $100,000 fine. Sea Hawk Refinish Line, Inc. faces a fine of up to $200,000, or twice the gross pecuniary gain resulting from the offense, whichever is greater, and a term of probation of not more than five years.

According to court documents, New Nautical manufactured a marine paint called Biocop Anti-Fouling Coating which contained tributyltin methacrylate (“TBT”), a pesticide subject to registration with the EPA that was found to have a significant harmful effect on marine life. On or about March 30, 2005, the EPA cancelled New Nautical’s registration for Biocop, making it unlawful for the company to manufacture Biocop for sale in the United States after December 1, 2005, or sell Biocop in the United States after December 31, 2005. At the time, New Nautical was the last manufacturer of TBT based anti-fouling coatings in the United States.

In order to manufacture and sell Biocop after its registration was canceled, New Nautical Coatings conceived and executed a plan to produce and sell Biocop in the United States by making it appear that it had manufactured Biocop prior to December 1, 2005, and sold its inventory of the banned pesticide to distributors, including to codefendant Refinish Line, by December 31, 2005. In an effort to conceal New Nautical’s unlawful production and sale of Biocop from authorities, David Norrie falsely represented to an EPA inspector that New Nautical had sold its existing stock of Biocop to distributors. Additionally, after David Norrie sold 60 gallons of Biocop to a customer in Broward County, he directed that customer to tell the EPA that he did not have Biocop and that New Nautical did not sell Biocop.

Sentencing for all defendants is scheduled for December 5, 2014.

Mr. Ferrer commended the investigative efforts of EPA-CID, EPA-OIG, and FWCC. This case is being prosecuted by Assistant U.S. Attorneys Alejandro O. Soto and Maria Medetis.

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.

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 Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Stuart Rosenfeldt, 59, of Boca Raton, was sentenced today by United States District Judge Marcia G. Cooke to 33 months imprisonment, to be followed by two years’ supervised release in connection with his conviction for conspiracy to commit campaign finance fraud, to defraud the United States, to commit bank fraud and to deny civil rights, in violation of 18 U.S.C. § 371. Rosenfeldt was an attorney admitted to practice law in Florida and was an equity partner in the former Ft. Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA).

During his June 11, 2014 guilty plea, the defendant admitted that, in order to circumvent campaign finance laws setting limitations on the amounts which donors can contribute, Rothstein enlisted some of the attorneys and administrative personnel of RRA, and other persons associated with RRA, including Rosenfeldt, to make political contributions to various political campaigns which were unlawfully reimbursed to them by RRA. Rosenfeldt also participated in a scheme to float checks between and among certain bank accounts maintained by RRA in a form of bank fraud commonly known as “check kiting.” Additionally, Rosenfeldt arranged with Rothstein to have certain law enforcement officers utilize unlawful threats against the boyfriend of an escort who was threatening to expose an illicit relationship which existed between the escort and Rosenfeldt.

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

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, 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), and William D. Snyder, Sheriff, Martin County Sheriff’s Office (MCSO), announce the indictments of three individuals for their roles in Jamaica based telemarketing fraud schemes. Shanice Ethridge, 24, of Broward County, was charged with conspiracy to commit mail fraud, in violation of Title 18, United States Code, Section 1349, wire fraud, in violation of Title 18, United States Code, Section 1343, with an enhanced penalty for targeting the elderly, in violation of Title 18, United States Code, Section 2326. Mikhail Gorbachev George Williams, 25, of Broward County, was charged with conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, wire fraud, in violation of Title 18, United States Code, Section 1343, and unlicensed money transmitting business, in violation of Title 18, United States Code, Section 1960. Fabian Winston Parkinson, 33, of Miami-Dade County, has been charged with mail fraud, in violation of Title 18, United States Code, Section 1341.

Defendants Ethridge and Williams made their initial appearance this morning before United States Magistrate Judge Patrick M. Hunt in Fort Lauderdale. Defendant Parkinson is scheduled to make his initial appearance this afternoon in Dallas, Texas.

According to the indictments, Ethridge, Williams and Parkinson participated in fraudulent lottery schemes emanating from Jamaica, in which elderly victims throughout the United States were told that they had won a lottery or a sweepstakes but first had to pay taxes, duties or fees on their supposed winnings in order to receive their prize. These elderly victims were induced to send thousands of dollars to cover bogus fees, taxes and insurance for lottery winnings they had not won.

According to the indictments, the co-conspirators and co-schemers sent letters and made multiple telephone calls to the victims claiming to be from a purported sweepstakes/lottery company in the United States. As alleged in the indictment, the victims were told that they had to pay several thousand dollars in order to collect their purported winnings. The co-conspirators and co-schemers allegedly told the victims to make payments to either Ethridge, Williams or Parkinson in order to receive their winnings. Ethridge, Williams and Parkinson received the victims money either by wire transfers, cash, money orders and checks though the U.S. mail and prepaid debit cards.

“We will not allow South Florida to be a pipeline for these money couriers who are the lifeblood of these fraudulent schemes that prey on the elderly and vulnerable,” said United States Attorney Wifredo Ferrer. “We are committed to cutting off the money flow by dismantling these fraudulent lottery cells and prosecuting all of those involved, both here and abroad.”

“Combating scammers who target senior citizens is a priority for the Postal Inspection Service” said U.S. Postal Inspector in Charge in Miami Ronald Verrochio. “Aside from enforcement; we are also actively taking steps to educate elderly Americans about the dangers of lottery frauds.”

“These arrests show that HSI is committed to stopping individuals who prey on our senior citizens,” said Special Agent in Charge of HSI Miami Alysa D. Erichs. “We will continue to work with our international partners and other law enforcement agencies to put an end to these criminal organizations.”

“The Martin County Sheriff’s Office is proud to be part of the team bringing scam artists such as these to justice,” said Martin County Sheriff William D. Snyder. “These scammers who prey on our seniors in Martin County and elsewhere cannot be allowed to continue. These arrests are a testament to our joint efforts with our law enforcement’s partners at the state, local and federal levels.”

Mr. Ferrer commended the investigative efforts of USPIS, ICE-HSI, and the Martin County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Bertha R. Mitrani.

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.

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 Derrick Jackson, Acting Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General’s (HHS-OIG), Miami Regional Office, announce that Salo Shapiro, 69, a medical doctor, of Broward County, Marlene Cesar, 63, a licensed nurse practitioner, of Allentown, Pennsylvania and former resident of Miami, and Sonia Gallimore, 73, a licensed mental health counselor, of Broward County, were indicted on charges of conspiracy to commit health care fraud, health care fraud, and false statements related to health care matters, in violation of Title 18, United States Code, Sections 1349, 1347, and 1035.

According to the indictment, the defendants and their co-conspirators caused the submission of over $55 million dollars in false and fraudulent claims to Medicare through Biscayne Milieu, a Miami-based clinic which purportedly operated a partial hospitalization program (PHP) – a form of intensive treatment for severe mental illness. Instead, the defendants and their co-conspirators devised a scheme in which ineligible Medicare beneficiaries were admitted to Biscayne Milieu and Medicare was fraudulently billed for services that were never provided. Many of the patients admitted to Biscayne Milieu were not eligible for PHP because they were chronic substance abusers, suffered from severe dementia and would not benefit from group therapy, or had no mental health diagnosis but were seeking exemptions for their U.S. citizenship applications.

The indictment alleges that, as an attending physician at Biscayne Milieu, Shapiro authorized the treatment of patients that he knew were ineligible for PHP treatment. The same was true of Cesar, who also knowingly admitted ineligible patients as a nurse practitioner. The indictment further alleges that Gallimore, a licensed mental health counselor, conducted sham therapy sessions for patients that she knew were ineligible for PHP treatment. As a result of the defendants’ and their co-conspirators’ actions, Biscayne Milieu billed Medicare for over $55 million in false and fraudulent claims, and Medicare paid the clinic over $11 million.

Various owners, a doctor, managers, therapists, patient brokers and other employees of Biscayne Milieu have also been charged with various health care fraud, kickback, money laundering and other offenses in three other indictments unsealed in September 2011, May 2012, and February 2013. Biscayne Milieu, its owners, and more than 25 of the individual defendants charged in these cases have pleaded guilty or have been convicted at trial. Antonio and Jorge Macli and Sandra Huarte – the owners and operators of Biscayne Milieu – were each convicted at trial of various offenses and were sentenced in April 2013 to 30 years, 25 years, and 22 years in prison, respectively. Dr. Gary Kushner, another attending physician and former medical director of Biscayne Milieu, was sentenced to 12 years in prison in March 2013.

The case is being prosecuted by Assistant U.S. Attorney James V. Hayes of the U.S. Attorney’s Office for the Southern District of Florida; James V. Hayes was formerly a Trial Attorney with the Fraud Section of the Justice Department’s Criminal Division. The case was investigated by the FBI with the assistance of HHS-OIG, and was brought by the U.S. Attorney’s Office for the Southern District of Florida in coordination with the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.

An indictment is merely an accusation, and defendants are presumed innocent unless and until proven guilty.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and J. Scott Dennis, Chief, North Miami Beach Police Department, announce that defendants Michael Virgile, 28, and Shana Sainvil, 26, both of Miami, each pled guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343. Sentencing is scheduled for December 11, 2014 at 9:30 a.m. At sentencing, the defendants each face up to twenty years in prison.

According to court documents, in 2009, Virgile set up a corporation called Tax Masters & Multi-Services LLC (Tax Masters) listing himself as managing member with Sainvil, and Sainvil applied for two electronic filing identification numbers (EFINs) with the IRS. From early 2010 to late 2011, Virgile caused fraudulent income tax returns in other people’s names to be filed with the IRS primarily using Sainvil’s EFINs. Virgile knowingly included fraudulent income amounts and inapplicable tax credits to cause a greater refund payment. Many of the tax returns were prepared in the names of high school or college students who were not entitled to refunds.

Court documents also state that approximately $1.2 million in fraudulent refunds were deposited into bank accounts controlled by Virgil, and between $200,000 and $400,000 in fraudulent refunds were paid into Sainvil’s accounts. The defendants used the fraudulent refund proceeds for their own personal use and benefit.

Mr. Ferrer commended the investigative efforts of IRS-CI, FBI and North Miami Beach Police Department. The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced that Haider Zafar, 36, formerly of Miami-Dade County, has entered a guilty plea, in United States District Court in the Southern District of Ohio, to five counts of wire fraud in connection with an investment scam that yielded millions of dollars from investors and a Miami Heat premium ticket package.

At sentencing, Zafar faces a maximum penalty of 20 years in prison on each wire fraud count.

According to the indictment, Zafar would introduce and falsely portray himself as Haider Zafar Haswhani, a member of a wealthy and influential Pakistani family that operated several hotels, textile plants and oil businesses. He claimed he lived in a penthouse in The Essex house in New York, but also had residences at The Setai, the Mondrian, and 10 Museum Park, across the street from the American Airlines Arena.

Using this false persona, Zafar approached a Miami Heat sales executive and fraudulently obtained a Miami Heat premium three-season ticket package, which cost $1,055,000 with a promise to pay in the near future. Then he used the same scheme in approaching several other investors, promising them various investment opportunities and ultimately fraudulently obtaining in excess of $3,500,000.

At the time of this offense Zafar was living in Miami-Dade County. At the time of Zafar was indicted on these charges, he was incarcerated in Ohio awaiting sentencing on federal fraud charges there. Shortly thereafter, the defendant agreed to plead guilty and the case was transferred to the Southern District of Ohio in order for him to enter a guilty plea and his ultimate sentencing.

Mr. Ferrer commended the investigative efforts of the FBI. The case was prosecuted in the Southern District of Florida by Assistant U.S. Attorney Luis M. Pérez. The United States Attorney for the Southern District of Ohio is Carter M. Stewart, and Assistant U.S. Attorney Dale E. Williams, Jr. is prosecuting the case before Edmund A. Sargus, Jr., United States District Judge, Southern District of Ohio

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.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Yessyka Santana, Special Agent in Charge, Department of Education, Office of Inspector General (ED-OIG), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Alejandro Amor, 56, of Coral Gables, Jose W. Gonzalez, 53, of Port Orange, Michael Grubbs, 37, of Jacksonville, and Anthony Mincey, 57, of Jacksonville, have been charged in a fifteen count indictment with conspiracy to steal government funds, in violation of Title 18, United States Code, Section 371, and theft of government funds, in violation of Title 18, United States Code, Section 641. If convicted, the defendants face up to five years in prison, three years of supervised release, a $250,000 fine, and restitution, on the conspiracy count, and up to ten years in prison, three years of supervised release, a $250,000 fine, and restitution on each substantive count. The case has been assigned to United States District Judge Joan A. Lenard.

Defendant Amor made his initial appearance before United States Magistrate Judge Chris M. McAliley. Defendant Gonzalez made his initial appearance before United States Magistrate Judge David A. Baker, in Orlando. Defendants Grubbs and Mincey made their initial appearances before United States Magistrate Judge Patricia D. Barksdale, in Jacksonville.

According to the indictment, from approximately August 2008 through May 2012, Alejandro Amor, the owner of a for-profit proprietary college called Fast Train, directed his admissions representatives, including Jose W. Gonzalez, Michael Grubbs, and Anthony Mincey, among others, to defraud the United States Department of Education, by recruiting students who were not eligible for federal student aid and falsifying student aid applications in order to obtain federal Pell Grants and Direct Loans. As a result of these fraudulent recruiting practices, Alejandro Amor, Jose W. Gonzalez, Michael Grubbs, Anthony Mincey, and others, caused Fast Train students to submit approximately 1300 fraudulent student aid applications, which yielded approximately $6.5 million in fraudulently obtained Pell Grant and Direct Loan funds.

Mr. Ferrer commended the investigative efforts of ED-OIG and the FBI. This case is being prosecuted by Assistant U.S. Attorney Amanda Perwin.

An indictment is only an accusation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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.

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), announce that Scarlet Veres, 45, and Steven M. Veres, III, 49, both of Clermont, formerly of Broward County, were sentenced today before U.S. District Judge Robert N. Scola, Jr. for their participation in a scheme to evade paying taxes on income received through their construction company following the 2004 and 2005 hurricanes. Scarlet Veres was sentenced to 18 months in prison, to be followed by three years of supervised release. Steven Veres was sentenced to 24 months in prison, to be followed by three years of supervised release. Additionally, each defendant was ordered to pay $600,000.00 in restitution.

Scarlet and Steven Veres each previously pled guilty to one count of conspiracy to defraud the United States, in violation of Title 18, United States Code, Section 371.

According to court documents, Scarlet Veres and Steven M. Veres III, who was then a licensed general contractor, were the sole shareholders of Superior Contracting, Inc., a Broward County-based construction company. In 2005, Superior Contracting, Inc. received millions of dollars from contracts to make hurricane-related repairs, including a contract to make repairs at a condominium development in Fort Pierce. During 2005, the defendants diverted corporate receipts of Superior Contracting, Inc. for their own use. In order to conceal their diversion of corporate funds, the defendants falsified the profit and loss statement of Superior Contracting, Inc. by characterizing personal expenses, including the purchase of property in Parkland, the construction of their personal residence on the Parkland property, the purchase of a residence in Osceola County, and a $550,000 personal real estate investment as business expenses. The defendants further falsified the profit and loss statement by claiming that a $400,000 personal real estate investment was a repayment of a fictitious loan previously made to Superior Construction, Inc. Pursuant to their plea agreements, the defendants agreed to pay restitution to the Internal Revenue Service in the amount of $600,000.

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

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 Fred W. Gibson, Principal Deputy Inspector General, Federal Deposit Insurance Corporation, Office of Inspector General (FDIC-OIG), Atlanta Regional Office, announce that Domenico “Dom” Rabuffo, 78, of Miami, was sentenced by Chief United States District Judge K. Michael Moore for his role as a leader and organizer of a $49.6 million bank fraud and wire scheme, perpetrated from approximately 2003 through 2008. Domenico Rabuffo was sentenced to 27 years and three months in prison for his role in the fraud scheme.

On July 3, 2014, Domenico Rabuffo and three co-defendants, Mae Rabuffo, 75, of New York, Raymond E. “Ray” Olivier, 52, of Land O’ Lakes, Florida, and Curtis Allen Davis, 52, of Tampa, were convicted of conspiracy to commit bank fraud and wire fraud after an 11 day-jury trial before Chief Judge Moore. Domenico Rabuffo, Olivier, and Davis were also convicted of various bank fraud offenses.

According to the indictment and evidence at trial, from 2003 to 2008, Rabuffo and his co-defendants conspired to perpetrate a complex $49.6 million mortgage fraud scheme against various FDIC-insured lenders, including Bank of America, Regions Bank, SunTrust Bank, and Wachovia Bank. Rabuffo and his ex-wife Mae Rabuffo used shell companies to acquire ownership and control of a purported residential property development known as Hampton Springs, located in Cashiers, North Carolina. Then, Rabuffo, Olivier, and Davis recruited numerous straw borrowers to purchase building lots in the development. Several of the straw borrowers testified at the trial. According to their testimony and other evidence, Domenico Rabuffo paid the borrowers to obtain lot purchase loans and construction loans for building lots in Hampton Springs. To obtain the loans, Domenico Rabuffo, Mae Rabuffo, Olivier, Davis, and other conspirators, submitted fraudulent loan applications and related documents to the lenders and the lenders’ closing agents.

Among other things, the loan applications and settlement statements for the lot loans contained fraudulent statements that the borrowers paid earnest money deposits and cash due at the closing. In fact, the deposits and cash-to-close were paid by Domenico Rabuffo and Mae Rabuffo using proceeds from the fraudulent scheme. Further, Domenico Rabuffo and Mae Rabuffo sent fraudulent correspondence to the closing agents, including letters bearing the forged signatures of borrowers, to create the false impression that the deposits and cash due at closing had been supplied by the borrowers from their own funds.

Olivier and Davis recruited straw borrowers for the fraud scheme and submitted fraudulent loan applications to the lenders. Further, Olivier and Davis caused their private companies to be disclosed as the employers of straw borrowers whose actual employment was inconsistent with the inflated income stated on their loan applications. Then, when they were contacted by the lenders, Olivier and Davis provided fraudulent verifications of employment for those borrowers.

Mae Rabuffo, Davis, and Olivier are scheduled to be sentenced on October 30, 2014, also before Chief Judge Moore.

Three other defendants, Diane M. Hayduk, 64, of Miami, Victor Miguel Vidal, 49, of Miami, and Lazaro Jesus Perez, 44, of Miami Springs, pled guilty to the charged conspiracy and agreed to assist the United States. Hayduk assisted Domenico Rabuffo and Mae Rabuffo with the misappropriation of loan proceeds and the transmission of fraudulent correspondence to the lenders and the closing agents. Vidal served as a loan officer at SunTrust Mortgage, where he sponsored fraudulent loan applications for lots in Hampton Springs, including fraudulent applications for $33 million in construction loans. Perez furnished fictitious accountant’s letters to Vidal, in support of fraudulent loan applications submitted to SunTrust Mortgage. Hayduk, Vidal, and Perez were sentenced in September, 2014. Hayduk was sentenced to 40 months in prison, Vidal was sentenced to 64 months in prison and Perez was sentenced to 30 months in prison.

Mr. Ferrer commended the investigative efforts of the FBI and FDIC-OIG. This case was prosecuted by Assistant United States Attorneys Dwayne E. Williams and Jerrob Duffy.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, the Attorney General and the Office of Justice Programs’ National Institute of Justice (NIJ), today announced it has awarded nearly $63 million to school districts and research organizations through the Comprehensive School Safety Initiative (CSSI). CSSI is a large-scale, multi-agency research effort to build knowledge about effective approaches to increasing school safety nationwide.

Through the Initiative, 24 research projects receive funding under two different solicitations. The first, “Investigator-Initiated Research,” includes nine awards to research organizations totaling more than $18 million. The second, “Developing Knowledge about What Works to Make Schools Safe,” provides more than $45 million to 15 school districts and their research partners.

The School Board of Miami-Dade will receive $4,273,799, for its Evaluating Campus Shield program, and the School District of Palm Beach County will receive $3,909,116, for its School Safety and Student Performance Partnership.

“This funding is being awarded as part of the Comprehensive School Safety Initiative – a large-scale, multi-agency research effort to build practical, and scientifically-sound, knowledge about effective ways to increase school safety nationwide,” said Attorney General Holder. “It will enable us to examine and implement additional actions to make schools safer. And it will yield new insights and evidence about what works – and what doesn’t – when it comes to school discipline, violence and bullying reduction, school resource officers, mental health professionals, and justice interventions like youth courts.”

President Obama’s January 2013 plan to end gun violence emphasized keeping guns out of potentially dangerous hands and recognized that additional actions are needed to make our schools safer. CSSI was launched in early 2014 in response to a Congressional request for a broad, research-based effort to increase safety in the nation’s schools.

U.S. Attorney Ferrer stated “The sole focus of children should be on learning, not whether or not their school is safe. I commend the Miami-Dade and Palm Beach County schools for their commitment to examining, and ultimately implementing, the best methodology to keep our community’s children safe and focused on their education.”

“We know a great deal about how to make schools safe in general but very little about the specifics for various settings and populations,” said Dr. William J. Sabol, Acting Director of NIJ. “With this $63 million investment, the nation will gain an understanding of school safety that is scientifically sound, practical, and that can be easily interpreted and used by schools.”

The initiative has three primary goals: to collect national-level data; to convene stakeholders to identify and share best practices; and to conduct innovative research and evaluate pilot projects in school districts. The programs and policies within CSSI are designed to produce evidence about what works in such areas of school safety as effectiveness of school resource officers and mental health professionals, violence and bullying reduction, and effectiveness of such restorative justice interventions as youth courts. The initiative will also examine potential unintended consequences of school safety efforts, including the excessive use of exclusionary discipline and arrests of students.

Although NIJ has primary responsibility for CSSI, the program is a collaborative effort among more than 20 federal partners, including the Departments of Justice, Education, Health and Human Services, Homeland Security, and the Treasury. This partnership will allow the federal government to make a significant impact on school safety by investing limited funds in research that has practical applications for every school in the nation. By determining what interventions work best for specific schools and students, CSSI will provide professionals with a body of knowledge to help them make decisions about which programs will be most effective — and most cost effective — for their particular schools and their challenges.

A list of the awards can be viewed http://nij.gov/topics/crime/school-crime/documents/comprehensive-school-safety-initiative-awards-fy-2014.pdf?utm_source=feature&utm_medium=nijgov-home&utm_campaign=CSSI-awards and more information about CSSI is available at www.nij.gov, keywords: “School Safety.”

The Office of Justice Programs (OJP), headed by Assistant Attorney General Karol V. Mason provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice, and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART).

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.