Southern District of Florida

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), and Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Marcelin Jean Louis, 40, of Homestead, was sentenced to 60 months in prison, followed by three years of supervised release, after pleading guilty to one count of conspiracy to commit an offense against the United States, in violation of Title 18, United States Code, Section 371, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A, for a tax refund scheme that resulted in the cashing of approximately $5 million in fraudulent tax refund checks. The defendant was also ordered to pay $4.5 million in restitution.

According to the plea documents, from in or around March 2012, through in or around October 2012, Louis obtained U.S. Department of Treasury tax refund checks from various individuals, which checks had been fraudulently obtained. The defendant brought the fraudulently obtained U.S. Department of Treasury tax refund checks to a co-conspirator to be cashed. In total, during this period, Louis cashed thousands of these fraudulently obtained income tax refund checks (the total amount of tax refund checks cashed by Argo Check Cashing during this period totaled approximately $5MM). In order to cash the checks, Louis brought copies of fake driver’s licenses with the name of the individual on the tax refund check.

According to the plea documents, Louis knew that the checks had been obtained by fraud and – to compensate him for the risk of cashing fraudulent checks – he received approximately 20% of the value of the checks. The defendant admitted in a recording with the owner of the store that he knew that the checks had been obtained by fraud.

According to statements made at sentencing, Louis agreed to turn over six different houses, one vehicle, and other assets totaling nearly $1 million.

Mr. Ferrer commended the investigative efforts of IRS-CI and USSS. 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, George L. Piro, Special Agent in Charge, Federal Bureau of Investigations (FBI), Miami Field Office, and Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Freddie Howard, 56, of Davie, pled guilty for his role in a large-dollar tax refund fraud scam. Sentencing for Howard is scheduled for August 29, 2014 at 10:15 a.m.

Howard pled guilty to one count of mail fraud, in violation of Title 18, United States Code, Section 1341. At sentencing, the defendant faces a maximum term of 22 years in prison.

According to the plea documents, Howard operated a tax preparation business called QTS1, Inc. (Quality Tax Service) in Broward County. Howard prepared false and fraudulent tax returns using the identity information of willing participants, as well as, stolen identity information. Howard used false and fictitious income and withholding tax information on the returns submitted to the IRS to justify fraudulent large-dollar refund requests. The requested refund amounts generally ranged from $60,000 to $1,400,000, and Howard typically requested payment of these refunds via U.S. Treasury tax refund check. To conceal his identity, Howard submitted the tax returns to the IRS by mail and did not include preparer information. Howard also blocked out the tax preparer software information, and used other people to contact the IRS to inquire about the status of the fraudulent returns.

According to the plea documents, Freddie Howard submitted over $22 million in false and fraudulent large-dollar refund claims to the IRS that resulted in a payout of approximately $4.5 million on these large-dollar refund requests. As part of the scam, Howard caused a false and fraudulent tax return in the name of “J.E.” to be submitted to the IRS that resulted in a U.S. Treasury tax refund check sent to “J.E.” in Coral Springs for $398,502.52.

Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to the FBI and IRS-CI. This case is being prosecuted by Assistant U.S. Attorney 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, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Eric I. Bustillo, Director of Miami Regional Office of the Securities and Exchange Commission (SEC), announce that Jenny Coplan, 55, of Lauderhill, pled guilty for her role in an investment fraud scheme. Sentencing for Coplan is scheduled for August 29, 2013 at 9:30 a.m.

Coplan pled guilty to one count of wire fraud, in violation of Title 18, Untied States Code, Section 1343. At sentencing, the defendant faces a maximum term of 22 years in prison.

According to the plea documents, Coplan was the president of Immigration General Serivces, LLC (IGS) and solicited investors for purported investments in federal bail and immigration bonds. Coplan promised investors interest rates on their investments that exceeded 60% a year.

According to the plea documents, to induce investors to invest money with IGS, Coplan made material oral misrepresentations, which included, among others, promises that the investments were insured by the Federal Deposit Insurance Company, that the investments were secure and had little risk, and that Coplan had the experience and licenses to invest in these bonds. Further, to induce investors to invest money with IGS and to keep their investment with IGS, Coplan made material written misrepresentations to investors, including, among others, providing investors fraudulent and fictitious financial statements and fraudulent and fictitious e-mails from the bond corporation in which investors were purportedly investing.

According to the plea documents, induced by Coplan’s misrepresentations, investors invested approximately $4 million with Coplan by wiring money, writing checks, or providing cash to Coplan. Rather than investing the money in the bonds as promised, Coplan used the monies from new investors to pay old investors and used the money for her personal use and benefit.

Mr. Ferrer thanked the FBI and the SEC 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, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), announce that defendants Marlan L. Copeland, 42, and Vory V. Copeland, 40, both of Miramar, and Brannoc K. Rudd, 71, of Miami Gardens, were charged in an eighteen-count indictment for conspiring to unjustly enrich themselves by obtaining United States Department of Treasury tax refund checks to which they were not entitled for their personal use and benefit. Marlan L. Copeland and Vory V. Copeland made their initial appearances today before United States Magistrate Judge Chris M. McAliley. Defendant Rudd remains at large.

Specifically, each defendant was charged with one count of conspiracy to commit an offense against the United States, in violation of Title 18, United States Code, Section 371, five counts of theft of government property, in violation of Title 18, United States Code, Section 641, eight counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1), one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, and three counts of wire fraud, in violation of Title 18, United States Code, Section 1343.

According to the indictment, the defendants and their co-conspirators submitted fraudulent federal income tax returns to the United States Department of Treasury in the names, and using the social security account numbers, of individuals without their authority. The defendants and their co-conspirators obtained tax refund checks belonging to other individuals and then cashed those tax refund checks without the authority or knowledge of the taxpayers. The defendants and their co-conspirators caused over $300,000 in tax refund checks to be cashed or deposited into their bank accounts which they and their co-conspirators then retained for their personal use and benefit.

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

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

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

Zhifei Li, the owner of an antique business in China, was sentenced today to serve 70 months in prison for heading an illegal wildlife smuggling conspiracy in which 30 rhinoceros horns and numerous objects made from rhino horn and elephant ivory worth more than $4.5 million were smuggled from the United States to China.

The sentence – one of the longest sentences to be imposed in the United States for a wildlife smuggling offense – was announced by Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida; Sam Hirsch, the Acting Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice; Paul J. Fishman, U.S. Attorney for the District of New Jersey; and Dan Ashe, Director of the U.S. Fish and Wildlife Service (USFWS).

Li, 30, of Shandong, China, the owner of Overseas Treasure Finding in Shandong, previously pleaded guilty before U.S. District Judge Esther Salas to a total of 11 counts: one count of conspiracy to smuggle and violate the Lacey Act; seven counts of smuggling; one count of illegal wildlife trafficking in violation of the Lacey Act; and two counts of making false wildlife documents. Judge Salas also imposed the sentence today in Newark federal court.

“Li was the ringleader of a criminal enterprise that spanned the globe and profited from an illegal trade that is pushing endangered animals toward extinction,” said Sam Hirsch, Acting Assistant Attorney General for the Environment and Natural Resources Division. “As this case clearly demonstrates, rhino trafficking is increasingly organized, well financed, and a threat to the rule of law. The United States is resolved to bring wildlife traffickers to justice.”

“The multibillion-dollar illegal wildlife market is supplied by animal poaching of unthinkable brutality and fed by those willing to profit from such cruelty,” said U.S. Attorney Fishman. “Zhifei Li appropriately faces 70 months in prison for orchestrating schemes worth millions of dollars and for violating laws meant to protect the most vulnerable species.”

“Wild populations of rhinos are being slaughtered at appalling rates due to the greed and indifference of criminals like Li and his accomplices,” said U.S. Fish and Wildlife Service Director Dan Ashe. “The sentence handed down today serves notice to other organized trafficking and poaching rings that their crimes will not go unpunished. We will relentlessly work across the U.S. government and with the international law enforcement community to destroy these networks, while strengthening protections for rhinos in the wild and reducing demand for horn in consumer countries.”

Li was arrested in Florida in January 2013, shortly after arriving in the country, on federal charges brought under seal in New Jersey. Before he was arrested, he purchased two endangered black rhinoceros horns from an undercover USFWS agent in a Miami Beach hotel room for $59,000 while attending an antique show. Li was arrested as part of “Operation Crash” – a nationwide effort led by the USFWS and the Justice Department to investigate and prosecute those involved in the black market trade of rhinoceros horns and other protected species.

In papers filed in Newark federal court, Li admitted that he was the “boss” of three antique dealers in the United States whom he paid to help obtain wildlife items and smuggle them to him via Hong Kong. One of those individuals was Qiang Wang, aka “Jeffrey Wang,” who was sentenced to 37 months in prison on Dec. 5, 2013, in the Southern District of New York. Li played a leadership and organizational role in the smuggling conspiracy by arranging for financing to pay for the wildlife, purchasing and negotiating prices, directing how to smuggle the items out of the United States, and getting the assistance of additional collaborators in Hong Kong to receive the goods and smuggle them to him in mainland China.

Rhinoceros are an herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under United States and international law. Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (known as CITES), a treaty signed by over 170 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets.

In pleading guilty, Li admitted that he sold 30 smuggled, raw rhinoceros horns worth approximately $3 million – approximately $17,500 per pound – to factories in China where raw rhinoceros horns are carved into fake antiques known as Zuo Jiu (which means “to make it as old” in Mandarin). In China, there is a centuries old tradition of drinking from an intricately carved “libation cup” made from a rhinoceros horn. Owning or drinking from such a cup is believed by some to bring good health, and true antiques are highly prized by collectors. The escalating value of such items has resulted in an increased demand for rhinoceros horn that has helped fuel a thriving black market, including recently carved fake antiques.

In addition to the prison term, Judge Salas ordered Li to serve two years of supervised release and to forfeit $3.5 million in proceeds of his criminal activity as well as several Asian artifacts. Various ivory objects seized by the USFWS as part of the investigation have also been surrendered.

The investigation is continuing and is being handled by the U.S. Fish & Wildlife Service’s Office of Law Enforcement, the U.S. Attorney’s Office for the District of New Jersey, the U.S. Attorney’s Office for the Southern District of Florida and the Justice Department’s Environmental Crimes Section.

The government is represented by Assistant U.S. Attorney Thomas Watts-FitzGerald of the U.S. Attorney’s Office for the Southern District of Florida, Assistant U.S. Attorneys Kathleen P. O’Leary and Barbara Ward of the New Jersey U.S. Attorney’s Office Criminal Division and Asset Forfeiture and Money Laundering Unit, and Senior Counsel Richard A. Udell of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division.

Additional information, including a detailed joint factual statement and photo exhibits can be found here: http://go.usa.gov/8nYY.

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, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, announce that Rodelyn Lamour, 26, of Miami, pled guilty to one count of conspiracy to commit mail theft, in violation of Title 18, United States Code, Section 371, one count of possession of a Postal Service key, in violation of Title 18, United States Code, Section 1704, one count of mail theft, in violation of Title 18, United States Code, Section 1708, one count of use of unauthorized access devices, 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). Sentencing is scheduled for July 17, 2014, at 2:30 p.m. before Senior U.S. District Judge James Lawrence King.

According to the stipulated statement of facts executed by the parties, from August 2013 to January 2014, Lamour and co-conspirator, Nestor Herrera, conspired to steal mail from various apartment complexes in Miami-Dade County. On various occasions, Herrera acted as a lookout while Lamour used a stolen Postal Service key to open apartment complex cluster mailboxes and steal mail. After stealing mail that contained debit cards, Lamour used the debit cards to make cash withdrawals at various banks, to buy United States Postal Money Orders, and to conduct wire transfers via money gram. The seventeen debit cards he used during a one-year period contained $45,729.17 in fraudulent tax refunds. Lamour knew the debit cards belonged to real people who did not authorize him to use their debit cards.

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

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

Bradley Bowman, a resident of Lighthouse Point, Florida, pleaded guilty to one count of filing a false claim for a tax refund with the Internal Revenue Service (IRS), U.S. Attorney Wifredo Ferrer for the Southern District of Florida and Assistant Attorney General Kathryn Keneally of the Justice Department’s Tax Division announced today. Bowman was indicted on March 25, 2014.

According to court documents, in 2009, Bowman submitted to the IRS a false individual income false tax return for tax year 2005 that fraudulently claimed a refund of $299,024. Bowman engaged Penny Jones, who is currently serving a 12 year sentence in a related case, to create this false return. Bowman attached false Forms 1099-OID to the return which fraudulently claimed that he had income of $447,036, and he also falsely claimed that all of this income was withheld to satisfy his income tax liabilities. Sentencing is set for Aug. 7, 2014, where Bowman faces a statutory maximum sentence of five years in prison, followed by up to three years of supervised release.

The case was investigated by Special Agents of the IRS-Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Bertha Mitrani for the Southern District of Florida and Trial Attorney Greg Bailey of the Tax Division.

Additional information about the Tax Division and its enforcement efforts may be found at the division website.

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 Paula A. Reid, Special Agent in Charge, United States Secret Service, announce that Alexander Nicholas Katsabanis Jr, 23, Dimitris Nicholas Katsabanis, 25, Christian Fernando Dume, 32, Christine Eliz Marrero, 24, Javier Osvaldo Labrador, 26, Dietter Navarro, 32, Yurien Martinez Gallardo, 34, Keilyn Nicole Gonzalez, 21, Felix Marino Garcia Custodio, 32, Desiree Marie Basanta, 29, Jonathan Gabriel Gonzalez, 24, Jade Amber Garcia, 27, Melissa Rivas, 25, Dominga Ivett Guerrero, 50, Johan Alvarez, 20, Gustavo Andres Jimenez, 26, Daniel Allen Limbacher, 31, all of Miami, Noel Sebastian Cisneros, 23, of Homestead, Mirelys Reyes, 19, of Hialeah, and Yasael Aquit, 29, of Tampa, have been charged with varied counts of 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, conspiracy to commit access device fraud, Title 18, United States Code, Section 1029(b)(2), access device fraud, Title 18, United States Code, Section 1029(a)(2), and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.

According to the indictment, between August 2012 and July 2013, A. Katsabanis, D. Katsabanis, and Dume, secured and caused other co-conspirators, including Labrador, Limbacher, and Gallardo, to secure the personal identification information (PII) of cellular telephone subscribers, including those of Verizon and AT&T. The customers’ PII included the customer’s name, cellular telephone number, date of birth, and the last four digits of their Social Security Number. A. Katsabanis, D. Katsabanis, Dume, and their co-conspirators, then made and caused to be made telephone calls to Verizon and AT&T, in order to use the unlawfully acquired PII, to add additional users on the existing, legitimate customer accounts, in order to purchase subsidized telephones (iPhones), without the customers’ knowledge and authorization. The retail price for each cellular telephone was approximately $550.00 to $649.00. Customers, and their authorized users, were entitled to purchase the cellular phones at a discounted price of approximately $200.00. A. Katsabanis, D. Katsabanis, Dume, and others, recruited into the scheme various individuals who served as “runners”, who having been fraudulently added as purported “authorized users” on the existing, legitimate accounts of Verizon and AT&T customers, purchased cellular telephones (iPhones) at discounted prices. These purchases were made in the Southern District of Florida, as well as other locations in Florida, California, and Nevada.

Marrero, Labrador, Navarro, Gallardo, K. Gonzalez, Custodio, Basanta, J. Gonzalez, Garcia, Rivas, Cisneros, Guerrero, Reyes, Alvarez, Jimenez, Limbacher and Aquit served as “runners” for the fraudulent scheme. The runners would deliver their purchases to A. Katsabanis, D. Katsabanis, Dume, and others, and be paid approximately $100.00 for each fraudulently acquired telephone. As a result of the scheme, the conspirators enriched themselves from the profits and payments, while the cellular telephone providers, Verizon and AT&T, would incur a loss based on the difference between the retail price and the subsidized cost or discounted price.

During the course of the scheme, 860 Verizon customer accounts were fraudulently accessed, and individuals, including the co-conspirators, were added as authorized users on existing customer accounts, in order to purchase cellular telephones at a discounted price. Approximately 1,249 cellular devices (telephones) were fraudulently purchased. As a result of the fraudulent scheme, Verizon incurred a loss of more than $545,500.

Mr. Ferrer commended the investigative efforts of the United States Secret Service and the Miami-Dade Police Department Economic Crimes Bureau. The case is being prosecuted by Assistant U.S. Attorney Sarah J. Schall.

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

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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 Office, and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, announce that Richard A. Heyn, 49, of Margate, was sentenced to 120 months in prison and three years of supervised release following his conviction in February on charges that he made and possessed an unregistered destructive device.

According to court records and evidence at trial, Heyn made and possessed a pipe bomb in August 2011, which he camouflaged with black spray paint and attached to the under carriage of the SUV driven by a man living Boca Raton. At the time, Heyn had had a two year long extramarital affair with the man’s wife, which affair the wife was attempting to end.

During the seven day trial, evidence was presented which linked Heyn to the components used in the pipe bomb. In addition, explosives experts from ATF testified that the pipe bomb found on the husband’s vehicle had all the components of a destructive device, capable of creating a “small cratering in the road” and serious physical injury or even death to those in the vicinity of the explosion.

Mr. Ferrer commended the investigative efforts ATF and the Palm Beach County Sheriff’s Office. Mr. Ferrer also thanked the Computer Crime Laboratory of the Department of Justice for their assistance in analyzing computer evidence. This case was prosecuted by Assistant U.S. Attorneys Aurora Fagan and Alexandra Hui

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 José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Dianelys Armengol Guevara, 28, of Pembroke Pines and Dallas, Texas, was sentenced by U.S. District Judge James I. Cohn to 30 months in prison followed by 12 months of supervised release. Dianelys Armengol Guevara previously pled guilty to a one-count information charging her with contempt of court for violating a court order forbidding her from acting as a tax preparer.

According to the factual proffer filed in court, Guevara worked as a professional tax preparer at Liberty Tax Services, in Hollywood, from 2005-2009. In 2010, the Department of Justice Tax Division filed a civil complaint against Guevara, based on a civil IRS investigation, alleging that Guevara filed tax returns improperly claiming First Time Homebuyer Credits, various education credits, deductions, and expenses. In January 2011, U.S. District Judge Cecilia M. Altonaga entered a judgment which permanently barred Guevara from acting as a federal tax return preparer. However, on or about January 13, 2011, Guevara began willfully disobeying that judgment by continuing to prepare, and assist in preparing, federal tax returns, from her home in Pembroke Pines. Guevara admitted to preparing approximately 130 federal tax returns after the Court entered its bar order. Audits by the IRS found that many of the returns prepared by Guevara also made illegitimate claims to education credits and other deductions, resulting in an average under-payment of approximately $3,358 per return.

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

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

180 Defendants Have Been Charged to Date as Part of the Southern District of Florida Securities and Investment Fraud Initiative

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, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Eric I. Bustillo, Regional Director, Securities and Exchange Commission (SEC), Fred W. Gibson, Jr., Principal Deputy Inspector General, Federal Deposit Insurance Corporation, Office of Inspector General (FDIC-OIG), David Meister, Director, Division of Enforcement, U.S. Commodity Futures Trading Commission (CFTC), Cindy Liebes, Director, Federal Trade Commission, Southeast Region (FTC), and Drew J. Breakspear, Commissioner, State of Florida’s Office of Financial Regulation, announce the most recent charges filed in connection with the Southern District of Florida Securities and Investment Fraud Initiative (the “Initiative”). The Initiative was first announced in December 2010 and designed to combat securities fraud and protect the interests of the investing public.

The Initiative was established to address an increase in investment and securities fraud schemes in the Southern District of Florida. Participating agencies include the U.S. Attorney’s Office, FBI, IRS-CI, USSS, USPIS, SEC, CFTC, FTC, FDIC-OIG, and the Florida Office of Financial Regulation. These law enforcement and regulatory agencies have shared intelligence and combined their resources to combat securities and investment fraud, including Ponzi schemes, affinity fraud schemes, prime bank/high-yield investment scams, business opportunity fraud, promoter/micro-cap/“pump and dump” schemes, foreign exchange (FOREX) frauds, false bankruptcy petitions, and other schemes to defraud individual investors. Among the goals of the Initiative is to alert the public about the prevalence of these types of schemes, educate the public on how to avoid falling prey to these schemes, and to highlight the law enforcement response to the problem.

Using the strike force model successfully developed in the health care and mortgage fraud areas, the Initiative has yielded similar success. Since its inception in December 2010, the Initiative has resulted in charges against 180 defendants in the Southern District of Florida, resulting in more than $ 1.8 billion in restitution ordered.

Today, we announce charges against six individuals in the following five cases:

1. United States v. Eric Brown, Case No. 14-60107-CR-Cohn

Eric Brown, 50, of Brooklyn, New York, is charged with one count of mail fraud, in violation of Title 18, United States Code, Section 1341. The information alleges that Brown agreed to pay a purported fund manager one share for every four shares of buying that the fund would make in DAM Holdings, Inc. (DAMH). In October 2011, Brown agreed to come to Florida to induce the fund manager to invest in DAMH.

The case is being prosecuted by Assistant U.S. Attorney H. Ron Davidson.

2. United States v. Billy Ray, Jr., Case No. 14-60109-CR-Zloch

Billy Ray, Jr., 56, of Cumming, Georgia, is charged with one count of securities fraud, in violation of Title 18, United States Code, Section 1348. The information alleges that Ray was the CEO and President of the Board of Directors of Urban AG Corporation (AQUM), a Delaware corporation that was publicly traded. Its common stock was traded in the Pink Sheets and registered with the SEC under Section 12 of the Securities Exchange Act of 1934. On approximately May 28, 2013, Ray agreed to pay a kickback to induce a hedge fund manager to invest the fund’s money in AQUM.

The case is being prosecuted by Assistant U.S. Attorney H. Ron Davidson.

3. United States v. Wade Clark, Case No. 14-60108-CR- Dimitrouleas

Wade Clark, 38, of Melissa, Texas, is charged with committing one count of insider trading, in violation of Title 15, United States Code, Sections 78j(b) and 78ff(a), and Title 17, Code of Federal Regulations, Sections 240.10b-5 and 240.10b5-1. The information alleges that on or about July 9, 2013, in a recorded conversation, Clark told an FBI undercover agent who posed as a hedge fund manager about press releases that had not yet been issued. Clark told the purported fund manager “you should probably start buying” stock before a press release was issued.

The case is being prosecuted by Assistant U.S. Attorney H. Ron Davidson.

4. United States v. Kevin McKnight and Stephen Bauer, Case No. 14-80080-CR-Hurley

Kevin McKnight, 41, of Boca Raton, and Stephen Bauer, 63, of Hillsboro Beach, were charged by indictment alleging that they conspired to commit securities fraud, in violation of Title 18, United States Code, Section 1349. According to the indictment, both men were promoters for Environmental Infrastructure Holdings Corp. (EIHC), a publicly traded company whose stock was registered with the SEC. The defendants were charged with engaging in a scheme to manipulate the publicly quoted share price and trading volume of EIHC common stock. The alleged scheme involved, among other things, illegal kickbacks and the “match trading” of stock, which is the unlawful buying and selling of securities in equal quantities by two parties to a transaction, rather than their bidding or offering orders on the open market.

The case is being prosecuted by Assistant U.S. Attorney Roger Cruz.

5. United States v. Jeffrey Berkowitz, Case No. 14-20342-CR-Scola

Jeffrey Berkowitz, 57, of Palm Beach County, a stock promoter, was charged by information with conspiracy to engage in a scheme to manipulate the publicly quoted share price and trading volume of Face Up Entertainment Group (FUEG) stock, in violation of Title 18, United States Code, Section 371. FUEG, a Florida corporation, is purported to be in the business of operating an internet gaming website.

The case is being prosecuted by Assistant U.S. Attorney Michael Sherwin.

Mr. Ferrer commends the investigative efforts of the FBI, IRS-CI, USSS, USPIS, SEC, FDIC-OIG, CFTC, FTC, and the State of Florida’s Office of Financial Regulation.

An indictment or information is merely an accusation and defendants are presumed innocent until proven guilty.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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 José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigations (IRS-CI), announce the filing of charges against Stuart Rosenfeldt, 59, of Boca Raton, for conspiring to commit crimes through the operation of the former Fort Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA). Stuart Rosenfeldt was an attorney admitted to practice law in Florida and was an equity partner in 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.

The information, which was filed earlier today, charges Rosenfeldt with conspiracy to commit campaign finance fraud, to defraud the United States, to commit bank fraud and to deny civil rights, in violation of Title 18, United States Code, Section 371. If convicted, Rosenfeldt faces a maximum statutory sentence of up to five years in prison.

According to the information, 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. Stuart 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 the IRS-CI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, and Jeffrey N. Kaplan.

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

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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 Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Garfield Perry, 67, of North Miami Beach, pled guilty to a one-count information charging him with conspiring to accept bribes in connection with programs receiving federal funds and to commit extortion, all in violation of Title 18, United States Code, Section 371. Sentencing is scheduled for July 29, 2014 at 9:00 a.m. before U.S. District Judge Cecilia M. Altonaga.

According to the stipulated statement of facts executed by the parties, from at least 2002 through 2009, Perry was the Roadway Lighting Coordinator for the Department of Public Works in Miami-Dade County. In this capacity, Perry was responsible for, among other things, overseeing the maintenance of more than 22,000 street lights in the county’s roadway system. The information charges that from 2006 through October 2009, Perry accepted bribe payments from a Manufacturer’s Representative totaling approximately $150,000. Perry regularly directed the Manufacturer’s Representative to make the bribe payments by paying down debts owed by Perry, including payments on two home mortgages, one car loan, two home insurance policies, two car insurance policies, and eight credit cards. Perry accepted as bribe payments from the Manufacturer’s Representative, cruise vacations, domestic and international airline tickets, payments for hotels and theatre tickets. Perry regularly directed the Manufacturer’s Representative to make bribe payments by issuing checks payable to third parties, and, after the checks were cashed, determined the manner in which the proceeds were to be split. Perry falsely certified to Miami-Dade County that he was not engaged in any outside employment and did not receive any gratuities. In return for the bribe payments, Perry helped to ensure that lighting products used in Public Works’ projects were represented by the Manufacturer’s Representative.

At sentencing, Perry faces a possible maximum statutory sentence of up to five years in prison.

Mr. Ferrer commended the investigative efforts of the FBI and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney 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 Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), announce that Thomas Edler, 49, of Weston, was sentenced yesterday to serve fifteen years in prison after pleading guilty to charges of transportation and possession of child pornography. Following his release from prison, Edler will be on supervised release for the remainder of his life and will also be required to register as a sex offender.

According to plea documents, in February 2013, the National Center for Missing and Exploited Children (NCMEC) requested the assistance of the South Florida Internet Crimes Against Children (ICAC) Task Force in attempting to identify a child who appeared in numerous images of child pornography that had been recovered across the county. The images of this child had been previously identified and categorized by NCMEC as the “Dave” series, and had been recovered in numerous prior child pornography investigations. According to the data provided by NCMEC, the images had been produced between the approximate dates of June 16, 2001 and September 14, 2002. The South Florida ICAC detectives determined, through the utilization of various investigative techniques, that several of the “Dave” series images had been taken in the backyard of a residence located in Weston. Detectives then determined that the current owners of that residence were the defendant, Thomas Edler, and his wife, who also owned and occupied that residence during the time period when the “Dave” series images were taken (2001-2002). In addition, detectives learned that the Edlers have two minor children. Further investigation revealed that the child portrayed in the “Dave” series, who was between the ages of five and six when the images were taken, had been friendly with Edler’s son.

On April 9, 2013, HSI Fort Lauderdale Special Agents and South Florida ICAC Task Force members executed a federal search warrant at the Edler residence. Pursuant to the search warrant, several items of electronic media were seized including a Dell laptop computer belonging to the defendant. HSI Forensic Examiners conducted a complete forensic analysis of the computer and media devices taken during the search warrant. Results of the forensic examination resulted in the discovery of numerous images that had been taken by Edler depicting child pornography.

Subsequently, it was determined that Edler was responsible for producing another known series of child pornography referred to as the “Lil Charlie” series. The images depicted in the “Lil Charlie” series, a friend of the Edler family, were taken in July 2002 when the Edlers were visiting the child’s family in Rhode Island. After taking the images, the defendant knowingly transported the images to Broward County. The images depicted in the “Lil Charlie” series were later recovered in other child pornography investigations across the world.

Also pursuant to the investigation, it was determined that Edler had taken pictures of another minor while the Edler family was visiting that child’s family in Winter Springs in January 2002. The child depicted in those images was present at the sentencing hearing. In imposing the 15 year sentence, U.S. District Judge Robin S. Rosenbaum took into account what she deemed a credible allegation by this minor that, in addition to taking the pictures, Edler had touched him inappropriately.

Mr. Ferrer commended the investigative efforts of ICE-HSI and the South Florida ICAC. The case is being prosecuted by Assistant U.S. Attorneys Corey Steinberg and Francis Viamontes.

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, John A. Bolduc, Chief, Port St. Lucie Police Department, Ken J. Mascara, St. Lucie County Sheriff’s Office, Sean Baldwin Chief, Ft. Pierce Police Department, J. Michelle Morris, Chief, Sebastian Police Department, and Deryl Loar, Sheriff, Indian River Sheriff’s Office, announce that Herbert Lenorris Smith, Jr., 37, of West Palm Beach, was sentenced May 20, 2014 by U.S. District Judge Jose E. Martinez to 17 years in prison.

Smith previously pled guilty on January 29, 2014, to two counts of interfering with commerce by robbery, in violation of Title 18, United States Code, Section 1951(a) and 2; and using and carrying a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Sections 924(c)(1)(A)(ii)and 2.

According to court documents, between June 8, 2013 and July 8, 2013, employees of five PNC bank branches located in the counties of Indian River, Volusia, Hillsborough and St. Lucie Counties, were robbed at gunpoint by three males, whose faces were covered and were wearing gloves. In all of the robberies, one male would brandish a handgun, and two males would jump the tellers’ counters demanding money.

On June 20, 2013, at approximately 9:50 a.m., three males entered the PNC Bank in Port Orange, Volusia County, with faces covered and wearing gloves. One male brandished a firearm at bank employees, two jumped the teller counters, and demanded and took United States currency. The three males were picked up by a fourth male driving a stolen Jeep, which was found abandoned nearby. Anthony Isaac Johnson, Paul Edward Moore and Alan Demetrius Bradford remained in cellular phone contact with one another before and after the robbery.

On July 1, 2013, at approximately 9:50 a.m., three males entered the PNC Bank in Tampa, Hillsborough County, with faces covered and wearing gloves. One male brandished a firearm at the bank employees and two males jumped the teller counters, with another remaining in the lobby area. They demanded and took United States currency. The three males fled the bank in a stolen Dodge Intrepid. While in the area of the PNC bank and the site the vehicle was stolen, Raven Simone Sayers and Bradford remained in cellular phone contact with each other. The stolen vehicle was abandoned in a housing development near the PNC bank. On this date, Sayers was in possession of a leased vehicle.

According to court documents, during the night of July 7, 2013, into the early morning hours of July 8, 2013, Sayers, Ivory Lee Robinson, Tomaleesha Jeffie Laqua McKeliver, Moore, Desilien, Herbert Lenorris Smith, Jr., Johnson, and Bradford, planned and agreed to rob two St. Lucie County PNC banks at gun point. In order to carry out the two robberies, the group separated into two teams. The plan was for each team to have a female as a getaway driver and three males. Sayers and McKeliver agreed to be the robbery getaway drivers. Each team would steal a van, rob each of the banks at gunpoint, with their faces covered, leave the bank in the van, and transfer into the getaway vehicles, in order to flee the area. Sayers and McKeliver drove rental cars. The two teams travelled from Palm Beach County to St. Lucie County in the two rented cars. While en route, the two teams remained in cellular phone contact with one another. Once in St. Lucie County, the teams scouted PNC Banks and escape routes and stole two vans in Ft. Pierce for use in the two bank robberies.

Later on July 8, 2013, between 9:00 and 9:30 a.m., St Lucie County PNC Banks located in Port St. Lucie and Fort Pierce were robbed at gunpoint, almost simultaneously. After the Ft. Pierce and Port St. Lucie PNC bank robberies, McKeliver, Johnson, Robinson and Bradford were arrested after a police pursuit, and Moore was arrested near the bank. Law enforcement eventually identified, located, arrested and charged Sayers, Smith and Desilien, who escaped back to Palm Beach County.

Previously sentenced in this case were Ivory Lee Robinson, 22, and Laqua McKeliver, 22, both of West Palm Beach, by U.S. District Judge Donald L. Graham. Robinson, a career offender, was sentenced to 262 months in prison, followed by five years of supervised release on February 27, 2014; McKeliver was sentenced to 102 months in prison, followed by three years of supervised release on December 16, 2013. Sayers, 23, of Hallandale, was sentenced by U.S. District Judge Jose E. Martinez to 162 months in prison, followed by three years of supervised release on March 11, 2014.

Bradford pled guilty on February 4, 2014, to conspiracy to interfere with commerce by robbery, in violation of Title 18, United States Code, Section 1951(a); two counts of interfering with commerce by robbery, in violation of Title 18, United States Code, Sections 1951(a) and 2; two counts of using and carrying a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Sections 924(c)(1)(A)(ii)and 2; and, felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 2.

Desilien pled guilty on March 27, 2014, to conspiracy to interfere with commerce by robbery, in violation of Title 18, United States Code, Section 1951(a); interfering with commerce by robbery, in violation of Title 18, United States Code, Sections 1951(a) and 2; and, using and carrying a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Sections 924(c)(1)(A)(ii)and 2.

The sentencing for Bradford and Desilien has been set for July 14, 2014, before U.S. District Judge Jose E. Martinez.

Earlier this month, the last two of the eight defendants arrested, Anthony Isaac Johnson, 24, of West Palm Beach, and Paul Edward Moore, 25, of Green Acres, pled guilty before U.S. Magistrate Judge Frank J. Lynch to two counts of using and carrying a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Sections 924(c)(1)(A)(ii)and 2.

The sentencing for Johnson and Moore has been set for August 26, 2014, before U.S. District Judge Jose E. Martinez in Ft. Pierce.

Mr. Ferrer commended the investigative efforts of the FBI, Port St. Lucie Police Department, Ft. Pierce Police Department, Sebastian Police Department, St. Lucie County Sheriff’s Office, Indian River Sheriff’s Office, Palm Beach County Sheriff’s Office, Port Orange Police Department, Hillsborough County Sheriff’s Office and FDLE for their work on this case. The case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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 Office, and Deryl Loar, Sheriff, Indian River County Sheriff’s Office, announce the guilty plea of Glenn Thomas Carvajal, 34, of Vero Beach. Carvajal pled guilty before U.S. District Judge Jose E. Martinez, in Ft. Pierce. Sentencing for Carvajal is scheduled for July 23, 2014 before U.S. District Judge Donald M. Middlebrooks in West Palm Beach.

Carvajal pled guilty to interfering with commerce by threats or violence (robbery), in violation of Title 18, United States Code, Section 1951(a), and possessing and brandishing a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Section 924(c)(1)(A). The defendant faces a possible statutory maximum sentence of up to 20 years in prison. For the charge of possessing and brandishing a firearm in furtherance of a crime of violence, the defendant faces a consecutive seven year term up to life in prison.

A stipulated factual basis filed in Court indicates that Carvajal, a former GameStop manager, robbed a GameStop store on October 10, 2013, located in Vero Beach. Carvajal approached a Game Stop employee, handed the employee a hand written note, which read “I have a gun, please empty the register as soon as possible,” while showing what appeared to be the grip of a black semi-automatic firearm. Before exiting the store, Carvajal warned the employee that he had someone monitoring the phones that knew who he was, where he lived, and would kill or hurt him or one of his family members. After images from the store surveillance video were released to the media, several witnesses came forward and identified Carvajal.

Mr. Ferrer commended the investigative efforts of ATF and the Indian River County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Carmen Lineberger.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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, Jose A. Gonzalez, 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 Christina M. Kitterman, 38, of Deerfield Beach, was sentenced by U.S. District Judge Daniel T. K. Hurley to five years in prison, followed by three years of supervised release. Kitterman was previously convicted on three counts of wire fraud.

Kitterman was charged with three counts of wire fraud, in violation of Title 18, United States Code, Section 1343. The acts set forth in the charging document were all in furtherance of a “Ponzi” scheme involving the sale of purported confidential settlement agreements in sexual harassment and/or whistle blower cases which were purportedly handled by attorneys at the former Ft. Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA).

Evidence introduced at trial established that, during the course of the Ponzi scheme, and while she was employed as an attorney at RRA, Kitterman falsely posed as the head of the Ft. Lauderdale office of the Florida Bar Association during a meeting with certain investors in order to explain to the investors the reason why certain payments due to them had not been made.

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

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 José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigations (IRS-CI), announce that Irene Shannon, formerly known as Irene Stay, 50, of Miami, pled guilty to conspiring to commit crimes through the operation of the former Fort Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA). The defendant was the Chief Financial Officer of 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.

The defendant pled guilty before U.S. District Judge Robin S. Rosenbaum to conspiracy to commit money laundering and to defraud a financial institution, in violation of Title 18, United States Code, Section 371. At her sentencing, which is scheduled for August 8, 2014, the defendant faces a maximum statutory sentence of up to five years in prison.

According to the factual statement executed by Shannon in support of her guilty plea, Shannon oversaw the accounting functions of RRA, including the deposits and withdrawals made by RRA and Rothstein at TD Bank and other financial institutions. In furtherance of the Ponzi scheme, Shannon transferred hundreds of millions of dollars obtained from investors to pay prior investors in the scheme and to supplement and support the operation and activities of RRA, among other purposes. The factual statement further explains that Shannon was well aware that hundreds of millions of dollars were not being held in trust accounts for investors, contrary to what those investors had been told, and that the funds were instead being disbursed to further Rothstein’s fraudulent scheme. Irene Shannon also admitted that she utilized her position to float checks between and among certain bank accounts maintained by RRA in a form of bank fraud commonly known as “check kiting.”

Mr. Ferrer commended the investigative efforts of the FBI and IRS-CI. 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 Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, announce the sentencings of Quinton Mitchell, 31, of Sweeting’s Cay Settlement, Green Turtle Cay, Bahamas and Leroy Anthony Edwards a/k/a “Roy Anthony Elliot,” 57, of Kingston Jamaica. Both defendants were sentenced by U.S. District Judge Jose E. Martinez to five years in prison, followed by four years of supervised release.

Mitchell pled guilty on January 28, 2014, to conspiracy to import a controlled substance –100 kilograms or more of marijuana, in violation of Title 21, United States Code, Sections 952(a), 963 and 960(b)(2).

Edwards pled guilty on January 28, 2014, to importation of a controlled substance – 100 kilograms or more of marijuana, in violation of Title 21, United States Code, Sections 952(a), and 960(b)(2) and Title 18, United States Code, Section 2. Edwards also pled guilty to being a previously removed alien after deportation, in violation of Title 8, United States Code, Section 1326(a)(1).

According to documents filed with the Court, on November 22, 2013, eyewitnesses observed a vessel capsize in the waters off of the Jupiter Island shoreline. Three males made it to shore. One ran away from the scene. Leroy Anthony Edwards, a Jamaican national, was rescued from the surf and resuscitated by a good samaritan. Edwards, who was in critical condition from the drowning, was transported to the hospital by a rescue team. Mitchell, who was identified as the boat captain, was captured by Jupiter Island Police Department Officers and Martin County Sheriff’s Office Deputies while in flight from the scene. Mitchell admitted to detectives that he was approached while in the Bahamas to transport the marijuana along with another Bahamian, and two Jamaican nationals to the U.S. because he had boat driving experience. Mitchell said when they arrived a few miles from the Florida coastline, they began to have engine difficulty and later when the boat entered the rough surf, it capsized. Martin County Sheriff’s Office Crime Scene investigators found that the recovered bales contained marijuana, weighing approximately 236 kilograms. Authorities are still searching for the two other passengers that were on-board the boat.

Immigration records reflected that Edwards was previously removed from the U.S. in 2001 under the name of Roy Anthony Elliott, and again in 2012, after presenting a fraudulent legal permanent resident card at the Port Everglades Seaport.

Mr. Ferrer commended the investigative efforts of ICE-HSI, DEA. Mr. Ferrer also thanked the Jupiter Island Police Department, the Martin County Sheriff’s Office, U.S. Customs and Border Protection, and Florida Fish and Wildlife. The case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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 Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, Julie Leon, Special Agent in Charge, ATF, Tampa/Orlando Field Office, Deryl Loar, Sheriff, Indian River County Sheriff’s Office, Wayne Ivey, Sheriff, Brevard County Sheriff’s Office, John A. Bolduc, Chief, Port St. Lucie Police Department, and Frank J. Kitzerow, Chief, Jupiter Police Department, announce that Yubran Alvarez Vasquez, 22, of Bluffton, South Carolina, and Matthew Emmanuel Vasquez, 24, of Savannah, Georgia, pled guilty today to charges stemming from six armed robberies targeting gas stations and hotels along I-95 from Melbourne to Jupiter. Each defendant pled guilty to two counts of possessing, brandishing, and discharging a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Section 924(c)(1)(A)(ii & iii).

According to the terms of the plea agreements, the defendants must serve a minimum of 35 years in prison but may be sentenced to life in prison. Sentencing is scheduled for August 27, 2014 at 1:30 p.m. in Fort Pierce, before U.S. District Judge Jose E. Martinez.

The defendants admitted to targeting gas stations and hotels just off exits on I-95 from Melbourne to Jupiter. The defendants participated in one robbery spree that lasted five hours commencing on February 14, 2013, through the early morning hours of February 15, 2013, during which the defendants robbed at gunpoint two gas stations and two hotels. The defendants brandished guns in all the robberies and during the robbery of the Holiday Inn Express in Vero Beach, a firearm was fired. No one was seriously injured.

Mr. Ferrer commended the investigative efforts of ATF, the Indian River County Sheriff’s Office, the Brevard County Sheriff’s Office, the Port St. Lucie Police Department, and the Jupiter Police Department. The case is being prosecuted by Assistant U.S. Attorney Russell R. Killinger.

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 Drew J. Breakspear, Commissioner, Florida Office of Financial Regulation, announce that Karl Oreste, 56, of Miramar, Marie Lucie Tondreau, a/k/a “Lucie Tondreau”, 54, of North Miami, Okechukwu Josiah Odunna, a/k/a “O.J. Odunna”, 49, of Lauderdale Lakes, and Kelly Augustin, 57, of North Miami, have been charged with conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, and six counts of wire fraud, in violation of Title 18, United States Code, Section 1343. According to the allegations in the indictment, between December 2005 and May 2008, Oreste, president of KMC Mortgage Corporation of Florida, a mortgage lending business in North Miami Beach, identified residential properties in South Florida that were for sale. Oreste and Tondreau hosted several radio show programs in the South Florida area in which they advertised the services offered by KMC Mortgage. Oreste and Tondreau recruited and paid some of the listeners who responded to those advertisements, as well as other individuals, to pose as borrowers to purchase properties identified by Oreste. Augustin, an employee of KMC Mortgage, also recruited straw borrowers.

Thereafter, the indictment alleges that Oreste and Odunna, and other co-conspirators prepared or caused to be prepared loan applications on behalf of straw borrowers. Odunna was an attorney previously licensed to practice law in Florida, and president of O.J. Odunna, P.A. and Direct Title and Escrow Services. These loan applications included false information relating to employment, wages, assets and intent to make the property being purchased a primary residence. The loan applications and documents were submitted by co-conspirators to various mortgage lenders throughout the United States. Once the loan applications were approved, the lenders wired loan funds to O.J. Odunna, P.A., Direct Title or other title companies for closing.

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

At closing, a portion of loan proceeds were disbursed to Oreste through his corporation, JR Investment and Mortgage Corporation, or other bank accounts controlled by him. In some instances, a portion of the loan proceeds was diverted to O.J. Odunna, P.A. or Direct Title accounts. Oreste disbursed some of the proceeds he received to pay recruiters – such as Tondreau and Augustin – and straw borrowers. Oreste also transferred a substantial portion of the funds to bank accounts of LTO Investment Corporation, a corporation controlled by Tondreau. Tondreau used funds deposited in LTO Investment Corporation’s bank accounts to make payments on the falsely and fraudulently obtained mortgages in order to maintain the loans, and to conceal and further the fraud. She also used a portion of the funds deposited into LTO Investment Corporation’s bank accounts for her own personal use and benefit.

The indictment alleges that over the course of the conspiracy, the defendants fraudulently obtained loans on approximately 20 properties, for which the lenders have suffered losses in the amount of approximately $8,000,000.00. If convicted, each defendant faces a maximum term of 30 years in prison.

Mr. Ferrer commended the investigative efforts of the FBI and Florida’s Office of Financial Regulation. The case is being prosecuted by Assistance U.S. Attorney Lois Foster-Steers.

An indictment 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.

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 Rear Admiral John H. Korn, Commander, 7th Coast Guard District (USCG), announce today the guilty plea of Naaman Davis, 53, of the Bahamas, to one count of encouraging and inducing aliens to enter the United States resulting in death, in violation of Title 8, United States Code, Section 1324(a)(1)(A)(iv), and one count of aiding and assisting an aggravated felon to enter the United States, in violation of Title 8, United States Code, Section 1327.

According to the stipulated statement of facts filed with the Court, the defendant drove a migrant smuggling vessel from Bimini, Bahamas to South Florida on the evening of October 15, 2013. Prior to leaving the Bahamas, the defendant consumed some quantity of rum. The vessel stalled several times throughout the voyage, and the defendant smoked crack-cocaine one of the times that the vessel stalled. Seven nautical miles off of Miami, the vessel began taking on water and lost stability. The defendant and another individual identified as George Lewis jumped overboard shortly before the vessel capsized. Five of the thirteen migrants onboard became trapped underneath the capsized vessel, four of whom ultimately died.

Lewis and three other individuals onboard the vessel that night also pled guilty to their conduct relating to this case. Specifically, George Lewis, 38, of the Bahamas, Matthew Williams, 31, Everton Jones, a/k/a “Everton Bryce,” 41, and Kenard Hagigal, 36, each of Jamaica, pled guilty to illegal reentry into the United States by an aggravated felon, in violation of Title 8, United States Code, Section 1326(a) and (b)(2). They each await sentencing by United States District Judge Kathleen Williams. A fifth individual, Sean Gaynor, 37, of Jamaica, pled guilty to illegal reentry into the United States, in violation of Title 8, United States Code, Section 1326(a), and was sentenced to time served.

At sentencing, Davis faces a statutory maximum sentence of life imprisonment. Lewis, Williams, Jones and Hagigal face a statutory maximum sentence of twenty years imprisonment.

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

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, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Tom Weschler, Chief, City of Naples Police Department, announce that Marie Jean Baptiste, 22, of North Miami, was sentenced today to 12 months and one day in prison, to be followed by three years of supervised release. Baptiste was previously convicted by a federal jury of three counts of stealing tax refunds, in violation of Title 18, United States Code, Sections 641 and 2.

According to the indictment and evidence presented at trial, Baptiste received four tax refunds that she knew were stolen, and converted them for her own use and gain. Baptiste participated in a scheme in which fraudulent tax returns were filed directing the tax refunds to be directly deposited into her bank account. After the tax refunds were deposited into her bank account, Baptiste would withdraw the tax proceeds from the bank and various ATMs for her own use and gain.

Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI and the City of Naples Police Department. This 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.

27 Medical Professionals, Including 16 Doctors, Charged with Health Care Fraud

Attorney General Eric Holder and Department of Health and Human Services (HHS) Secretary Kathleen Sebelius announced today that a nationwide takedown by Medicare Fraud Strike Force operations in six cities has resulted in charges against 90 individuals, including 27 doctors, nurses and other medical professionals, for their alleged participation in Medicare fraud schemes involving approximately $260 million in false billings. .

Attorney General Holder and Secretary Sebelius were joined in the announcement by Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, FBI Assistant Director Joseph Campbell, U.S. Department of Health and Human Services (HHS) Inspector General Daniel R. Levinson and Deputy Administrator and Director of the Centers for Medicare & Medicaid Services (CMS) Center for Program Integrity Shantanu Agrawal.

This coordinated takedown is the seventh national Medicare fraud takedown in Strike Force history. The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.

Since their inception in March 2007, Strike Force operations in nine locations have charged almost 1,900 defendants who collectively have falsely billed the Medicare program for almost $6 billion. In addition, CMS, working in conjunction with HHS-OIG, has suspended enrollments of high-risk providers in five Strike force locations and has removed over 17,000 providers from the Medicare program since 2011.

The joint Department of Justice and HHS Medicare Fraud Strike Force is a multi-agency team of federal, state and local investigators designed to combat Medicare fraud through the use of Medicare data analysis techniques and an increased focus on community policing. Almost 400 law enforcement agents from the FBI, HHS-OIG, multiple Medicaid Fraud Control Units and other federal, state and local law enforcement agencies participated in the takedown.

“Medicare is a sacred compact with our nation’s seniors, and to protect it, we must remain aggressive in combating fraud,” said Attorney General Holder. “This nationwide Medicare Strike Force takedown represents another important step forward in our ongoing fight to safeguard taxpayer resources and to ensure the integrity of essential health care programs. Department of Justice will not tolerate these activities. And we will continue working alongside the Department of Health and Human Services – as well as federal, state, and local partners – to use every appropriate tool and available resource to find, stop, and punish those who seek to take advantage of their fellow citizens.”

“The Affordable Care Act has given us additional tools to preserve Medicare and protect the tens of millions of Americans who rely on it each day,” said Secretary Sebelius. “By expanding our authority to suspend Medicare payments and reimbursements when fraud is suspected, the law allows us to better preserve the system and save taxpayer dollars. Today we’re sending a strong, clear message to anyone seeking to defraud Medicare: You will get caught and you will pay the price. We will protect a sacred trust and an earned guarantee.”

The defendants charged are accused of various health care fraud-related crimes, including conspiracy to commit health care fraud, violations of the anti-kickback statutes and money laundering. The charges are based on a variety of alleged fraud schemes involving various medical treatments and services, including home health care, mental health services, psychotherapy, physical and occupational therapy, durable medical equipment and pharmacy fraud.

According to court documents, the defendants allegedly participated in schemes to submit claims to Medicare for treatments that were medically unnecessary and often never provided. In many cases, court documents allege that patient recruiters, Medicare beneficiaries and other co-conspirators were paid cash kickbacks in return for supplying beneficiary information to providers, so that the providers could then submit fraudulent bills to Medicare for services that were medically unnecessary or never performed. Collectively, the doctors, nurses, licensed medical professionals, health care company owners and others charged are accused of conspiring to submit approximately $260 million in fraudulent billings.

“Today, across the nation, scores of defendants were arrested for engaging in hundreds of millions of dollars in health care fraud,” said Acting Assistant Attorney General O’Neil. “Among the defendants charged were 27 medical professionals, including 16 doctors. The crimes charged represent the face of health care fraud today – doctors billing for services that were never rendered, supply companies providing motorized wheelchairs that were never needed, recruiters paying kickbacks to get Medicare billing numbers of patients. The fraud was rampant, it was brazen, and it permeated every part of the Medicare system. But law enforcement continues to strike back. Using cutting-edge, data-driven investigative techniques, we are bringing fraudsters to justice and saving the American taxpayers billions of dollars. Overall, since its inception, the Department of Justice’s Medicare Fraud Strike Force has charged nearly 1,900 individuals involved in approximately $6 billion of fraud. We are committed to using every tool at our disposal to prevent, deter, and prosecute health care fraud.”

“We all feel the effects of health care fraud,” said FBI Assistant Director Campbell. “It leads to higher health care costs and makes it harder for seniors and those who are ill to get the care they need. The FBI and our law enforcement partners are committed to preventing and prosecuting health care fraud at all levels. But we need the public’s help. Take the time to be aware of fraud and call law enforcement if you see anything suspicious included in the billings to your insurance, Medicare, or Medicaid or have any unusual encounters with health care providers. We can work together to ensure your hard-earned dollars are used to care for the sick and not to line the pockets of criminals.”

“Today's arrests demonstrate the effectiveness of our Strike Forces in combating Medicare and Medicaid fraud,” said HHS Inspector General Levinson. “Through seamless teamwork, our agents and law enforcement partners bring lawbreakers to justice, protect beneficiaries and recover stolen taxpayer funds.”

“Fraud can inflict real harm on Medicare beneficiaries and CMS is committed to working with our law enforcement partners to get criminals behind bars and out of the Medicare program as swiftly as possible,” said CMS Program Integrity Deputy Administrator Agrawal. “Today’s actions represent further consequences for bad actors, many of whom CMS had already stopped paying, or even kicked out of the program. Fundamentally, this is about protecting the well-being of our beneficiaries and the investment of taxpayer dollars.”

In Miami, a total of 50 defendants were charged today and yesterday for their alleged participation in various fraud schemes involving approximately $65.5 million in false billings for home health care and mental health services, and pharmacy fraud. In one case, two defendants were charged in connection with a $23 million pharmacy kickback and laundering scheme. Court documents allege that the defendants solicited kickbacks from a pharmacy owner for Medicare beneficiary information, which was used to bill for drugs that were never dispensed. The kickbacks were concealed as bi-weekly payments under a sham services contract and were laundered through shell entities owned by the defendants.

Eleven individuals were charged by the Houston Medicare Strike Force. Five Houston-area physicians were charged with conspiring to bill Medicare for medically unnecessary home health services. According to court documents, the defendant doctors were paid by two co-conspirators to sign off on home health care services that were not necessary and often never provided.

Eight defendants were charged in Los Angeles for their roles in schemes to defraud Medicare of approximately $32 million. In one case, a doctor was charged for causing almost $24 million in losses to Medicare through his own fraudulent billing and referrals for durable medical equipment, including over 1,000 expensive power wheelchairs, and home health services that were not medically necessary and frequently not provided..

In Detroit, seven defendants were charged for their roles in fraud schemes involving approximately $30 million in false claims for medically unnecessary services, including home health services, psychotherapy and infusion therapy. In one case, four individuals, including a doctor, were charged in a sophisticated $28 million fraud scheme, where the physician billed for expensive tests, physical therapy and injections that were not necessary and not provided. Court documents allege that when the physician’s billings raised red flags, he was put on payment review by Medicare. He was allegedly able to continue his scheme and evade detection by continuing to bill using the billing information of other Medicare providers, sometimes without their knowledge.

In Tampa, Florida, seven individuals were charged in a variety of schemes, ranging from fraudulent physical therapy billings to a scheme involving millions of dollars in physician services and tests that never occurred. In one case, five individuals were charged for their alleged roles in a $12 million health care fraud and money laundering scheme that involved billing Medicare using names of beneficiaries from Miami-Dade County for services purportedly provided in Tampa area clinics, 280 miles away. The defendants then allegedly laundered the proceeds through a number of transactions involving several shell entities.

In Brooklyn, New York, the Strike Force announced an indictment against Syed Imran Ahmed, M.D., in connection with his alleged $85 million scheme involving billings for surgeries that never occurred; Dr. Ahmed had been arrested last month and charged by complaint. Dr. Ahmed has charged with health care fraud and making false statements. In addition, the Brooklyn Strike Force charged six other individuals, including a physician and two billers who allegedly concocted a $14.4 million scheme in which they recruited elderly Medicare beneficiaries and billed Medicare for medically unnecessary vitamin infusions, diagnostic tests and physical and occupational therapy supposedly provided to these patients.

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

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

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

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

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

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 José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Salita St. Simon, 31, of Belle Glade, was sentenced by U.S. District Judge Kenneth A. Marra to 24 months in prison, followed by two years of supervised release. St. Simon was also ordered to pay restitution of $19,896.20.

St. Simon previously pled guilty to one count of conspiracy to defraud the government with respect to claims, in violation of Title 18, United States Code, Section 286, one count of conspiracy to obtain and disclose individually identifiable health information, in violation of Title 18, United States Code, Section 371 and Title 42, United States Code, Sections 1320d-6(a)(2), (a)(3), and (b)(3), and one count of obtaining individually identifiable health information, in violation of Title 42, United States Code, Sections 1320d-6(a)(2) and (b)(3).

St. Simon was a senior clerk at a Palm Beach County Health Department (PBCHD) office in Belle Glade, Florida. As a senior clerk, St. Simon had access to the Health Management System (HMS) for the purpose of performing her job duties. HMS was a computerized database containing patient information, including names, dates of birth, and social security numbers, that PBCHD received and created during and in relation to the treatment of its patients. At sentencing, the Court found that St. Simon had stolen the social security numbers and other identifying information of 1,858 people. St. Simon stole patient information from HMS and gave it to several other people who were using the information to obtain refunds from the IRS.

Mr. Ferrer commended the investigative efforts of the FBI and IRS-CI. The case is being 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.

90 Individuals Charged Nationally for Submitting Approximately $260 Million in Fraudulent Billing; South Florida Responsible for more than $65,701,885 in False Billings

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Attorney General Eric Holder, Daniel R. Levinson, Inspector General, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Ronald Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Field Office, Amy L. Parker, Assistant Special Agent in Charge, Eastern Region, U.S. Office of Personnel Management, Office of Inspector General (OPM-OIG), Pam Bondi, Florida Attorney General, and Gerald Bailey, Commissioner, Florida Department of Law Enforcement (FDLE), announce that fifty (50) South Florida residents were charged for their alleged participation in various schemes to defraud Medicare out of more than $65,701,885. The charges in South Florida are part of a nationwide takedown by Medicare Fraud Strike Force operations in six cities that resulted in charges against 90 individuals, including doctors, nurses, licensed medical professionals and others, for their alleged participation in Medicare fraud schemes involving approximately $260 million in false billings.

U.S. Attorney Wifredo A. Ferrer stated, “Today, 50 defendants were charged in a number of schemes with defrauding our nation’s Medicare program here in South Florida. While some of the schemes were different, all of the defendants possessed the common goal of stealing from a program whose purpose is to provide the security of health care to seniors and the infirm. This is unacceptable. Hopefully, the sight of so many criminal defendants – from medical professionals to clinic owners to Medicare beneficiaries – being held accountable for their misdeeds will send a message of deterrence to those thinking Medicare fraud is a good idea. The efforts described today should also demonstrate that law enforcement in Miami will continue to fight the battle against health care fraud on all fronts. There is simply no safe harbor for Medicare fraudsters in South Florida.”

“Medicare is a sacred compact with our nation’s seniors, and to protect it, we must remain aggressive in combating fraud,” said Attorney General Holder. “This nationwide Medicare Strike Force takedown represents another important step forward in our ongoing fight to safeguard taxpayer resources and to ensure the integrity of essential health care programs. Department of Justice will not tolerate these activities. And we will continue working alongside the Department of Health and Human Services – as well as federal, state, and local partners – to use every appropriate tool and available resource to find, stop, and punish those who seek to take advantage of their fellow citizens.”

“Today’s arrests demonstrate the effectiveness of our Strike Forces in combatting Medicare and Medicaid fraud,” said U.S. Department of Health and Human Services Inspector General Daniel R. Levinson. “Through seamless teamwork, our agents and law enforcement partners bring lawbreakers to justice, protect beneficiaries, and recover stolen taxpayer funds.”

“The actions of the FBI and our partners today have disrupted the operations of several health care fraud operations,” said George L. Piro, Special Agent in Charge, FBI Miami. “But, we need the public’s assistance. Report suspicious activity, inform your insurance company if you see charges on your explanation of benefits for services you did not receive and protect your insurance cards and other personally identifiable information.”

“Greed is the ultimate downfall of these criminals,” said Inspector in Charge Ronald Verrochio. “Today exemplifies the great work of the U.S. Postal Inspection Service and its law enforcement partners in combating fraud.”

“The work of this Strike Force should be a warning to all those who believe that they can defraud the Government with impunity,” said ASAC Amy L. Parker. “If you break the laws of the United States, if you put monetary gain above patient safety, you will be caught and you will be prosecuted. The OPM-OIG is committed to working with law enforcement organizations at all levels to ensure the safety of Federal employees, annuitants, and their dependents, as well as protecting taxpayer dollars.”

“The work of this Strike Force should be a warning to all those who believe that they can defraud the Government with impunity,” said ASAC Amy L. Parker. “If you break the laws of the United States, if you put monetary gain above patient safety, you will be caught and you will be prosecuted. The OPM-OIG is committed to working with law enforcement organizations at all levels to ensure the safety of Federal employees, annuitants, and their dependents, as well as protecting taxpayer dollars.”

“My Medicaid Fraud Control Unit is a proud partner in this nationwide takedown to stop Medicaid and Medicare fraud, which has resulted in charges being brought against dozens of people for defrauding these government programs,” stated Attorney General Pam Bondi. “We will continue to partner with federal, state and local agencies to uphold the integrity of the Medicaid program and to protect taxpayer dollars.”

Florida Department of Law Enforcement Commissioner Gerald Bailey said, “FDLE will continue to infiltrate these criminal organizations. These cases are complex and involve the authority and expertise of multiple law enforcement agencies; I appreciate their hard work.”

The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since their inception in March 2007, Strike Force operations in nine locations have charged more than 1,900 defendants who collectively have falsely billed the Medicare program for more than $6 billion. In addition, CMS, working in conjunction with HHS-OIG, has temporarily stopped enrollments of high-risk providers in five Strike force locations and has removed over 17,000 providers from the Medicare program since 2011.

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

1. United States v. Cecilia Valdes, Case No. 14-20297-CR-Williams

Cecilia Valdes, 46, of Miami, is charged with one count of conspiracy to commit health care fraud. The information filed against Valdes, a physical therapist, alleges that she was paid by therapy staffing service agencies to falsely and fraudulently certify that she had provided home health care physical therapy services to Medicare beneficiaries when she had in fact never done so. As the result of Valdes’ conduct, the Medicare program sustained losses of approximately $355,000. If convicted, Valdes faces up to ten years in prison.

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

2. United States v. Maria E. Ortiz, Case No. 14-20238-CR-Cooke

Maria E. Ortiz, 46, of Homestead, is charged with conspiracy to commit money laundering, substantive counts of money laundering, conspiracy to structure transactions to evade federal reporting requirements, and substantive counts of structuring transactions to evade reporting requirements. The indictment alleges that between November 2011 and June of 2012, Ortiz and others conspired to launder the proceeds of illegal health care kickbacks from Musomed Health Care Corp., a home health agency certified by Medicare. Ortiz and others allegedly withdrew kickback proceeds from banks in amounts less than $10,000 to evade the reporting of the transactions. If convicted, Ortiz faces up to 20 years in prison for each count of money laundering, and up to ten years for each count of structuring.

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

3. United States v. Yulianela Martinez, et.al., Case No. 14-20239-CR-Middlebrooks

Yulianela Martinez, 32, of Hialeah, Luisa Cladera, 53, of Hialeah, Leyma Sosa, 39, of Hialeah, and Miguel Delgado 41, of Hialeah, were charged with conspiracy to pay illegal kickbacks in relation to a federal health care program and with substantive counts of paying illegal kickbacks in relation to a federal health care program. The indictment alleges that between 2009 and 2012, the defendants offered and paid kickbacks and bribes to recruiters for the referral of Medicare beneficiaries to MCDS Home Health Group, a corporation purportedly providing skilled nursing services, physical therapy, occupational therapy, and home health aide services to Medicare beneficiaries. If convicted, the defendants face up to five years for each kickback count.

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

4. United States v. Israel Benigno Gil, Case No. 14-20263-CR-Middlebrooks

Israel Benigno Gil, 85, of Hialeah, is charged with two counts of receiving health care kickbacks. The indictment alleges that Gil was a Medicare beneficiary and received payments in return for ordering, arranging for, and recommending purchasing and ordering home health services. If convicted, Gil faces up to five years in prison for each kickback count.

Mr. Ferrer commended the investigative efforts of USPIS, HHS-OIG, and FBI. This case is being prosecuted by Assistant U.S. Attorney Robert T. Watson.

5. United States v. Miriam Castellanos, Case No. 14-20264-CR-Scola

Miriam Castellanos, 63, of Miami, is charged with conspiracy to commit health care fraud and eight counts of substantive health care fraud. The indictment alleges that Castellanos was president and owner of Professional Treatment Medical Center, Inc., and submitted false and fraudulent claims, causing Medicare to incur a loss of $1,473,504. If convicted, Castellanos faces up to ten years in prison for each count of health care fraud.

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

6. United States v. Miguel Espinosa and Luis Buzzi, Case No. 14-20317-CR-Cooke

Miguel Espinosa, 45, of Coral Springs, and Luis Buzzi, 50, of Hialeah, are charged with conspiracy to commit health care fraud, nine counts of substantive health care fraud, conspiracy to receive health care kickbacks, and substantive counts of receiving kickbacks. Espinosa and Buzzi were patient recruiters who allegedly received and paid kickbacks for referral of Medicare beneficiaries to Lord’s Medical. The indictment alleges that from Febrauty 2010 through July 2011, Lord’s Medical Rehab Center Inc. submitted $5,497,047 in false and fraudulent claims for medical services to Blue Cross Blue Shield, and was paid $2,346,416 of the submitted claims. If convicted, the defendants face up to ten years in prison for each count of health care fraud, and up to five years in prison for each kickback count.

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

7. United States v. Manuel J. Chavez, Case No. 14-20321-CR-Ungaro

Manuel J. Chavez, 34, of Miami Beach, is charged with eight counts of health care fraud. The indictment alleges that Chavez submitted false and fraudulent claims for medications to Medicare Part D in connection with Pharma One, a pharmacy in Hialeah. An invoice reconciliation analysis of Pharma One drug purchases shows that it overbilled Medicare by approximately $1,381,278. If convicted, Chavez faces up to ten years in prison for each count of health care fraud.

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

8. United States v. Eduardo Perez de Morales, Case No. 12-20663-CR-Zloch(s)(s)

Eduardo Perez de Morales, 26, of Miami, is charged with one count of conspiring to launder the proceeds of health care fraud. According to Court records, Jorge Emilio Perez de Morales Sante, a fugitive defendant previously charged, operated a money remitting company that moved money from the United States to Cuba. The superseding indictment alleges that Jorge Emilio Perez de Morales and his brother Eduardo Perez de Morales laundered health care fraud proceeds through the money remitting company’s bank accounts. The United States is seeking forfeiture of $238,067,956. If convicted, Eduardo Perez de Morales faces up to 20 years in prison.

Mr. Ferrer commended the investigative efforts of the Florida Department of Law Enforcement and the FBI. This case is being prosecuted by Assistant U.S. Attorney H. Ron Davidson.

9. United States v. Yamile Calvo-Gonzalez, Case No. 14-20288-CR-Lenard

Yamile Calvo-Gonzalez, 41, of Miami, the owner of WY Medical Group and Rehabilitation Services Inc., is charged with conspiracy to commit health care fraud, substantive health care fraud, conspiracy to receive health care kickbacks and substantive receipt of kickbacks. The indictment alleges that Calvo-Gonzalez and her co-conspirators submitted and caused the submission of false and fraudulent claims to Medicare and Florida Medicaid for home health services that were neither medically necessary or actually provided. The indictment further alleges that the defendant acted as a patient recruiter and received kickbacks and bribes from co-conspirator home health agency owners for referring beneficiaries to serve as patients. If convicted, Calvo-Gonzalez faces up to ten years in prison for each count of health care fraud, and up to five years in prison for each kickback count.

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

10. United States v. Igor Iturriaga, Ovidio Iturriaga and Esther Lopez, Case No. 14-20324-CR-Moore

Igor Iturriaga, 45, Ovidio Iturriaga, 71, and Esther Lopez, 54, all of Miami, were charged with conspiracy to pay and receive health care kickbacks in relation to a federal health care program, receipt of health care kickbacks in connection with a federal health care program, conspiracy to commit money laundering, and substantive counts of money laundering. The indictment alleges that in 2012, the defendants cashed checks for their co-conspirators, knowing that the cash they provided to their co-conspirators would be used to pay kickbacks to patient recruiters who provided Medicare beneficiaries to home health care agencies Miami United Home Health Care, Inc. and TGR Home Health Care, Inc. The defendants acted as patient recruiters and also accepted kickbacks from their co-conspirators in return for referring Medicare beneficiaries to Miami United and TGR for home health services. The defendants and their co-conspirators used the beneficiary information obtained through the payment of bribes and kickbacks to cause Miami United and TGR to submit claims to Medicare for home health services purportedly provided to the recruited Medicare beneficiaries. If convicted, the defendants face up to 20 years in prison on the money laundering counts, and up to five years in prison on the kickback counts.

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

11. United States v. Jesus Fundora and Carlos Manuel Perez Gomez, Case No. 14-20287-CR-Altonaga

Jesus Fundora, 36, and Carlos Manuel Perez Gomez, 50, both of Miami, are charged with conspiracy to commit health care fraud as well as 12 counts of substantive health care fraud. The indictment alleges that the defendants filed false and fraudulent prescription drug claims under Medicare Part D through Kiara Pharmacy, and as a result of those false and fraudulent claims, Medicare sustained a loss of over $6 million. If convicted, the defendants face up to ten years in prison for each count of health care fraud.

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

12. United States v. Adalberto Perez Peguero, Maydelin Matos Fernandez, Roberto Rogelio Rojas and Maria Arce, Case No. 14-20266-CR-Lenard(s)

Adalberto Perez Peguero, 42, Maydelin Matos Fernandez, 34, Roberto Rogelio Rojas, 72, all of Miami, and Maria Arce, 57, of Miami Beach, are charged with conspiracy to commit health care fraud, and Perez Peguero, Matos Fernandez and Arce are charged with substantive counts of health care fraud as well. The indictment also charges Perez Peguero with paying kickbacks, and Rogelio Rojas and Arce with receiving kickbacks. The indictment alleges that Perez Peguero managed and operated Alephzayn Health Services and he offered and paid kickbacks and bribes to patient recruiters, including Rogelio Rojas, in return for referring beneficiaries so that he and Matos Fernandez could bill Medicare, through Alephzayn, for services that were not medically necessary and provided. The indictment further alleges that beneficiaries, including Arce, solicited and accepted bribes and kickbacks in exchange for permitting their beneficiary information to be used to submit false and fraudulent claims to Medicare. If convicted, the defendants face up to ten years in prison for each count of health care fraud, and up to five years in prison for each kickback count.

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

13. United States v. Joel Diaz Reyes and Miguel Gonzalez, Case No. 14-20292-CR-Scola(s)

Joel Diaz Reyes, 42, and Miguel Gonzalez, 41, both of Miami, are charged with conspiracy to commit health care fraud, substantive counts of health care fraud, conspiracy to pay and receive health care kickbacks, and substantive counts of paying and receiving health care kickbacks. The indictment alleges that the defendants recruited Medicare beneficiaries to Santa Barbara Pharmacy in order to cause the submission of false and fraudulent claims to Medicare for drugs that were not medically necessary and were never provided. The defendants also allegedly offered and paid kickbacks and bribes to Medicare beneficiaries and caused false and fraudulent prescriptions to be created for those beneficiaries. If convicted, the defendants face up to ten years for each count of health care fraud, and up to five years for each kickback count.

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

14. United States v. Luisa Isabel Vega, Case No. 14-2530-CR-Simonton

Luisa Isabel Vega, 57, of Miami, is charged by criminal complaint with health care fraud. Vega was the owner of AB Pharmacy, which billed Medicare Part D for dispensed prescription drugs, and as a result of those claims, received $8.4 million. However, an invoice reconciliation by government agents showed that AB Pharmacy did not buy enough of the drugs billed for to support the amount the pharmacy was paid for dispensing those drugs. As a result, AB Pharmacy received $4.2 million for drugs that it never dispensed. Interviews with beneficiaries revealed that many had been paid kickbacks by patient recruiters in return for allowing AB Pharmacy to submit fraudulent claims to Medicare using their beneficiary information, and many had never received the billed-for medications. If convicted, Vega faces up to ten years for each count of health care fraud.

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

15. United States v. Alexander Gonzalez and Virgilio Zayas, Case No. 14-20334-CR-Cooke

Alexander Gonzalez, 37, and Virgilio Zayas, 65, both of Miami, are charged with conspiracy to pay and receive health care kickbacks. Gonzalez is also charged with thirteen substantive counts of paying kickbacks and Zayas is also charged with two substantive counts of receiving kickbacks. Gonzalez managed and operated a Miami-based HHA, Suncare Home Health Services, Inc. ("Suncare"), which purportedly provided home health therapy to Medicare beneficiaries. Gonzalez paid patient recruiters kickbacks for referring patients to Suncare. Patient recruiters would buy home health prescriptions from doctors in the area and paid beneficiaries a kickback for serving as patients. Zayas was paid kickbacks as both a patient recruiter and for serving as a beneficiary himself at Suncare. The defendants face up to five years in prison for the conspiracy charge, and up to five years in prison for each substantive count.

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

16. United States v. Yenisey Suarez, et al., Case No. 14-20322-CR-Williams

Yenisey Suarez, 36, of Miami, Lourdes Duarte, 41, of Hialeah, and Erick Armando Juarez, 32, of Miami, are charged with one count of conspiracy to defraud the United States and receive health care kickbacks and two counts each of receipt of kickbacks in connection with a federal health care program. The indictment alleges that the defendants were patient recruiters for defunct home health care company Starlite Home Health Care Inc. (Starlite Home Health). The defendants are alleged to have solicited and received kickbacks and bribes from the owner and operator of Starlite Home Health in return for recruiting patients to Starlite Home Health and allowing the company to bill the Medicare program on behalf of the recruited patients for home health care and therapy services that were not medically necessary and/or were not provided. As alleged in the indictment, between approximately May 2010 through May 2013, Starlite Home Health submitted over $8 million in fraudulent claims to Medicare and was reimbursed approximately $3 million by Medicare. If convicted, the defendants face up to five years in prison for each kickback count.

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

17. United States v. Abigail Aguila, Estrella Perez, Solchys Perez, and Monica Macias, Case No. 14-20300-CR-Moore

Abigail Aguila, 40, of Miami, Estrella Perez, 57, of Coral Gables, Solchys Perez, 34, of Miami, and Monica Macias, 52, of Miami, are charged with conspiracy to defraud the United States and receive health care kickbacks. Solchys Perez and Estrella Perez are also charged with conspiracy to commit health care fraud and with receiving kickbacks in connection with a federal health care program. The indictment alleges that the defendants participated in a scheme involving Trust Care Health Services, Inc. (Trust Care). The defendants allegedly supplied Medicare beneficiaries to Trust Care in exchange for kickbacks and bribes. Trust Care, in turn, fraudulently billed Medicare for more than $20 million for home health services that were not provided and/or were not medically necessary. If convicted, the defendants face up to ten years in prison for the health care fraud charge, and up to five years in prison for each kickback-related charge.

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

18. United States v. Cruz Sonia Collado, Case No. 14-20302-CR-Scola. United States v. Euridice Borroto, Case No. 14-20310-CR-Lenard

Cruz Sonia Collado, 64, of Homestead, and Euridice Borroto, 45, of Miami, are charged with conspiracy to defraud the United States and pay health care kickbacks. Collado also faces substantive kickback charges. The indictment alleges that Cruz Sonia Collado orchestrated a scheme involving Nestor’s Health Services, Inc. (Nestor’s). As owner and operator of Nestor’s, the defendant paid kickbacks and bribes to patient recruiters, in exchange for the recruiters providing Medicare beneficiaries to Nestor’s for purported home health and therapy services. Nestor, in turn, fraudulently billed Medicare for approximately $6.5 million for home health care services purportedly provided to the Medicare beneficiaries. Euridice Borroto was a patient recruiter who solicited patients to participate in the scheme at Nestor’s. If convicted, the defendants face up to five years in prison for each count charged.

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

19. United States v. Annarella Garcia and Annilet Dominguez, Case No. 14-20301-CR-Moreno

Annarella Garcia, 44, and Annilet Dominguez, 27, both of Hialeah, are charged with conspiracy to commit health care fraud. Dominguez is also charged with substantive counts of making false statements related to health care matters, and the other defendant is also charged with money laundering. The indictment alleges that the defendants participated in a scheme involving Professional Medical Home Health LLC. (Professional Home Health). The defendants and their co-conspirators submitted false and fraudulent claims for home health services that were not provided and/or were not medically necessary. In turn, Medicare paid Professional Home Health approximately $6 million for services purportedly provided to Medicare beneficiaries. If convicted, the defendants face up to 20 years in prison for the money laundering charge, up to ten years in prison for the health care fraud charge, and up to five years in prison for each false statement charge.

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

20. United States v. Armando Buchillon and Lizette Garcia, Case No. 14-20299-CR-Lenard

Armando Buchillon, 42, of Miami, is charged with conspiracy to commit health care fraud and substantive health care fraud. Lizette Garcia, 37, of Hialeah, is charged with payment of kickbacks in connection with a federal health care program. The indictment alleges that the defendants participated in a scheme involving Anna Nursing Services Corp. Buchillon, a registered nurse, was Anna Nursing’s Director of Nursing. Garcia was a receptionist and office worker. The defendants paid kickbacks and bribes to patient recruiters, in exchange for the recruiters providing Medicare beneficiaries to Anna Nursing for purported home health and therapy services. As a result of the submission of fraudulent claims on behalf of these beneficiaries, Medicare paid Anna Nursing more than $7 million for purported home health services. If convicted, the defendants face up to ten years in prison for each heath care fraud charge, and up to five years in prison for the kickback-related charge.

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

21. United States v. Barry Kaplowitz, M.D., Christopher Gabel, Melvin Hunter and Tiffany Foster, Case No. 14-20323-CR-Altonaga

Barry Kaplowitz, M.D., 53, of Aventura, Christopher Gabel, 61, of Davie, Melvin Hunter, 61, of Davie, and Tiffany Foster, 47, of Alabama, are charged with participating in a conspiracy to commit health care and wire fraud arising from claims made to Medicare by Hollywood Pavilion, LLC (“HP”), a state licensed psychiatric hospital located in Hollywood that purportedly provided inpatient and outpatient psychiatric care to Medicare beneficiaries. Dr. Barry Kaplowitz is also charged with health care fraud and false statements relating to health care matters related to claims HP made to Medicare for patients that he purportedly treated. Christopher Gabel, Melvin Hunter and Tiffany Foster are also charged with participating in a conspiracy to pay illegal bribes and kickbacks to patient brokers and causing claims to be submitted for Medicare beneficiaries who were procured through bribes and kickbacks. The indictment alleges that from at least 2003 through September 2012, HP billed Medicare more than $67 million for services that were never rendered, for patients that did not qualify for the services being billed, and for claims that were procured through bribes and kickbacks. If convicted, the defendants face up to 20 years in prison for wire fraud, up to 10 years for health care fraud, and up to five years for the false statements and the kickback counts

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

22. United States v. Gabriel Delgado and Guillermo Delgado, Case No. 14-2581-Otazo Reyes

Guillermo Delgado, 42, and Gabriel Delgado, 41, both of Miami, are charged with conspiracy to defraud the United States and receive health care kickbacks, receipt of kickbacks in connection with a federal health care program and conspiracy to commit money laundering. As alleged in the complaint, the defendants are patient recruiters who controlled numerous patients residing in Assisted Living Facilities (ALFs) located in the Miami area and referred them to pharmacies, home health agencies, and community mental health centers among other Medicare providers in exchange for kickback payments. The complaint also alleges that the defendants led a money laundering scheme with Jose Morales, the owner and operator of Morales Pharmacies whereby the defendants would provide checks to Morales for him to cash through a Western Union franchise operated by Morales. The complaint alleges that the defendants and Morales submitted and caused to be submitted approximately $23,367,755.07 in false and fraudulent claims to the Medicare and Florida Medicaid programs. Morales pleaded guilty in December 2012 to one count each of health care fraud and payment of kickbacks for his role in the scheme. If convicted, the defendants face up to five years in prison for each kickback count, and up to 20 years for the money laundering conspiracy.

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

23. United States v. Nelson Salazar, Case No. 14-20326-CR-Martinez

Nelson Salazar, 45, of Miami, is charged with conspiracy to commit health care fraud. The information filed against Salazar alleges that he was a patient recruiter for American Therapeutic Corporation (ATC) who would pay and receive kickbacks in exchange for referring Medicare beneficiaries to attend ATC. The information further alleges that Salazar and others caused false and fraudulent claims to be submitted to Medicare for services purportedly provided at ATCs locations. If convicted, the defendant faces up to ten years in prison.

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

24. United States v. Francisco Pabon, Case No. 14-20327-CR-Ungaro

Francisco Pabon, 64, of Miami, is charged with conspiracy to commit health care fraud. The information filed against Pabon alleges that he was a mental health technician and social worker at an inpatient psychiatric hospital located in Miami, and he received illegal health care kickbacks in exchange for referring inpatient psychiatric patients to Health Care Solution Network (HCSN). The information further alleges that Pabon and his co-conspirators submitted and caused to be submitted claims to Medicare and Medicaid in an approximate amount of $63 million for partial hospitalization program services that were not medically necessary and were not provided at HCSN in Florida and North Carolina. If convicted, the defendant faces up to 10 years in prison.

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

25. United States v. Lazaro Martinez, Case No. 14-20329-CR-Cooke

Lazaro Martinez, 72, of Miami, was a patient recruiter who received illegal health care kickbacks from Jose Carlos Morales, the former owner and operator of the Morales Pharmacies, and, in turn, paid illegal health care kickbacks to owners and operators of assisted living facilities located in Miami. Morales agreed to pay illegal health care kickbacks to patient recruiters like Martinez to guarantee a stream of beneficiary information to be used to submit false and fraudulent claims to Medicare and Medicaid. If convicted, the defendant faces up to five years in prison.

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

26. United States v. Michael Mendoza, Case No. 14-20328-CR-Lenard

Michael Mendoza, 45, of Miami, is charged with conspiracy to commit health care fraud. The information filed against Mendoza alleges that Mendoza was a patient recruiter for American Therapeutic Corporation (ATC), which purported to provide partial hospitalization program (PHP) services to individuals suffering from mental illness. As further alleged in the information, Mendoza agreed with the owner of ATC and others to refer patients to ATC in exchange for kickbacks. According to the information, the PHP services for which the patients were referred to ATC were not medically necessary and not provided. If convicted, the defendant faces up to ten years in prison.

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

An indictment and information are merely charges and defendants are presumed innocent until proven guilty.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, U.S. Secret Service, announce that Jeaneno Florent, 38, of North Miami, was sentenced to 60 months in prison, followed by three years of supervised release after pleading guilty to wire fraud, in violation of Title 18, United States Code, Section 1343, for a tax refund scheme that resulted in the submission of approximately $2.4 million in fraudulent refund claims. The defendant was also ordered to pay $1,226,068 in restitution.

According to the plea documents, Florent caused a false and fraudulent individual income tax return in his own name to be submitted to the IRS in January 2012. The tax return falsely and fraudulently indicated that the defendant worked at Capitol Records, Inc., made approximately $8.7 million and was entitled to a refund of approximately $613,000. In reality, the defendant had not worked at Capitol Records and was not entitled to this refund. Even though the return was fraudulent, and Florent knew the return was fraudulent, the IRS approved payment and a refund anticipation check for approximately $613,000 in the defendant’s name. Florent deposited the check in a bank account in his own name and used the proceeds for his own personal benefit.

According to plea documents and documents submitted in court, Florent submitted a similar fraudulent tax refund claim with the IRS in 2013 seeking approximately $573,000, and also conspired with Gerald Duverger who submitted similar fraudulent tax refund claims for approximately $613,000 and approximately $573,000 in Duverger’s name in 2012 and 2013, respectively.

Mr. Ferrer commended the investigative efforts of IRS-CI and the U.S. Secret Service. 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 Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Judes Celestin, 36, of Hollywood, pled guilty for his role in an identity theft tax refund scheme that resulted in the receipt of approximately $1 million in fraudulent tax refunds. Sentencing is scheduled for August 13, 2014 at 8:30 a.m. before U.S. District Judge Robert N. Scola.

Celestin 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. At sentencing, Celestin faces a maximum term of 22 years in prison.

According to the plea documents, Celestin set up two Florida corporations – JC Easy Tax, Inc. (“JC Easy Tax”) and Tax Filing Made Easy! (“Tax Filing Made Easy”) – and listed himself as president. He opened and controlled bank accounts for these two corporations at various banks in South Florida. Celestin caused false and fraudulent individual income tax returns to be filed with the Internal Revenue Service in the names of individuals without those individuals’ knowledge or authority. The defendant caused approximately one million dollars in tax refund monies to be direct deposited to bank accounts for JC Easy Tax and Tax Filing Made Easy. Celestin then withdrew this money for his own personal use and benefit.

Mr. Ferrer commended the investigative efforts of IRS-CI. 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, Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Manuel Orosa, Chief, City of Miami Police Department, announce that Lionell Sanders, 19, of Miami, was sentenced by U.S. District Judge K. Michael Moore to fifty-six years and four months in prison, after pleading guilty on December 9, 2013 to conspiracy to commit robbery affecting interstate commerce, and two counts each of robbery affecting interstate commerce and the possession of a firearm in furtherance of a crime of violence.

According to information in the court record, from August through September 2013 Sanders and his associates conducted a string of violent armed robberies targeting food delivery drivers and taxicab operators. On at least five separate occasions, Sanders and his co-conspirators placed orders for food deliveries, or requested taxi service, at residential locations where he and others, brandishing firearms, assaulted the drivers and forcibly took money, other personal belongings, and any items to be delivered. Several of the robberies resulted in injuries to the victims of varying severity.

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 the ATF and the City of Miami Police Department. The case was prosecuted by Assistant U.S. Attorney Vanessa S. Johannes.

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 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 Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Henry Fecker, III, 60, of Ft. Lauderdale, pled guilty yesterday before U.S. District Judge Robin S. Rosenbaum in Ft. Lauderdale to a superseding information charging him with one count of bank fraud. Sentencing for Fecker is scheduled for July 18, 2014 before Judge Rosenbaum.

According to court documents, Fecker was the listed owner of Camden Consulting, Inc., a shell company used by the principals of Mutual Benefits Corporation (MBC) to receive proceeds from a massive Ponzi scheme, from approximately 1994 through 2004. According to court documents, in 2006, Fecker obtained a $1.5 million bank loan from Washington Mutual Bank in the form of a cash-out refinance of a waterfront vacation house in Camden, Maine. The vacation house had been purchased with funds derived from MBC. Fecker and his accomplice, Steven Steiner a/k/a Steven Steinger, received $487,801.15 as proceeds from the bank loan. According to court documents, Fecker acknowledged that he and Steiner held the funds in the form of ten separate certified bank checks and cashed them periodically between 2008 and 2011. Fecker acknowledged that this was done to conceal the funds from judgment creditors, including the U.S. Securities and Exchange Commission. Fecker used the funds to support a lavish lifestyle and to pay bills for Fecker, Steiner and Steiner’s brother, Joel Steinger, in the years after MBC shut down.

Fecker made material false statements on the loan application under penalty of perjury, including by claiming a monthly salary of $102,083, and that he had been the President of Camden Consulting for 11 years. Fecker also provided a false residence and business address to make the claim of employment appear legitimate. In truth, Camden Consulting was never a real company, had no real business, and Fecker had not had any employment since approximately 1996 when he worked at MBC.

In an earlier case, United States v. Henry Fecker, III and Steven Steiner, No. 11-20578-KMW, in February 2013, Steiner and Fecker were defendants in a four-week trial before U.S. District Judge Kathleen Williams, for money laundering and obstruction of justice. Steiner was convicted of 31 counts and Fecker was acquitted of all counts.

And, in earlier proceedings, Joel Steinger and Steven Steiner pleaded guilty to charges in this case, No. 12-20123-RSR, and a separate case related to the MBC fraud, No. 08-21158-CR-RNS.

Mr. Ferrer commended the investigative efforts of the FBI and IRS-CI. This case is being prosecuted by Assistant U.S. Attorneys Jerrob Duffy, Dwayne E. Williams and Alison Lehr.

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 Mark R. Trouville, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division, announce the extradition of Honduran citizen Carlos Arnoldo Lobo, a/k/a “Negro,” 39, from Honduras to the United States to face charges in the Southern District of Florida involving conspiracy to distribute cocaine. Carlos Arnoldo Lobo arrived in the Southern District of Florida on May 8, 2014 and will make his initial appearance today at 2:00 p.m. before U.S. Magistrate Judge Alicia Otazo-Reyes.

The charges announced today are the result of a multi-agency investigation that began in December 2009 into the drug smuggling activities operating near La Ceiba, Honduras. To date, the investigation has resulted in the indictment and conviction of numerous drug traffickers who worked for Carlos Arnoldo Lobo coordinating the smuggling of cocaine onto vessels for shipment from Panama to Honduras, then into Guatemala and beyond, including Mexico, and ultimately the United States, and working on the vessels for Carlos Arnoldo Lobo. The superseding indictment charges Carlos Arnoldo Lobo, a/k/a “Negro,” with conspiring to distribute cocaine, knowing that the cocaine would be imported into the United States, and conspiring to distribute cocaine on board a vessel subject to the jurisdiction of the United States.

The investigation revealed that Carlos Arnoldo Lobo allegedly owned and operated several dozen vessels off the eastern coast of Honduras which he outfitted to smuggle drugs, and used the vessels to transport drugs, primarily cocaine. The drugs were shipped from Colombia and Panama to Honduras, then into Guatemala and beyond, including Mexico, and ultimately the United States. Carlos Arnoldo Lobo allegedly controlled drug shipments into and out of the eastern coast of Honduras.

The conspiracy allegedly involved the distribution of more than 450 kilograms of cocaine.

U.S. Attorney Wifredo A. Ferrer stated, “The arrest and extradition of Carlos Arnoldo Lobo is the direct result of strong international cooperation with Honduran authorities. It also reflects the hard work, commitment, and perseverance of our Honduran and U.S. law enforcement partners to stem the flow of cocaine into the United States. Lobo was extradited from Honduras for his alleged involvement in the distribution of hundreds of kilos of cocaine, knowing that the cocaine would be imported into the United States. Now that Lobo has been extradited, he will stand trial in the United States for the serious crimes for which he is charged.”

“The arrest of Lobo is a significant victory. Lobo’s arrest and extradition to the U.S. has led to the dismantling of an egregious trafficking organization,” said Alysa D. Erichs, Special Agent in Charge of HSI Miami. “This case highlights the effective collaboration between HSI, DEA and our international law enforcement partners.”

DEA Special Agent in Charge Mark R. Trouville stated, “The DEA appreciates the cooperation of the Honduran law enforcement authorities in the arrest and extradition of Carlos Lobo. The DEA remains committed to working with our international counterparts to bring in the most significant drug traffickers to face justice for their crimes.”

The indictment of Carlos Arnoldo Lobo is the result of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) investigation led by HSI in conjunction with the DEA Miami Field Division. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.

Mr. Ferrer commended the investigative efforts of ICE-HSI and DEA. The Justice Department’s Office of International Affairs, the ICE-HSI Attaché’s Office in Tegucigalpa, Honduras and the DEA Attaché’s in Tegucigalpa, Honduras provided significant assistance and support during the arrest and extradition of the defendants. The case is being prosecuted by Assistant U.S. Attorney Kurt K. Lunkenheimer.

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

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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, Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), and Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), announce the return of a 23-count indictment charging Rudolph Kermit King, a/k/a “Rudy,” 46, of Nassau, the Bahamas, with mail fraud, wire fraud, and aggravated identity theft in a scheme to defraud.

According to the indictment, King created fictitious corporations that he then used to create merchant accounts with credit card processors. Rudolph Kermit King would inflate the amount of funds within the merchant account by charging unauthorized access devices. These funds would then be deposited to a small business checking account under King’s control, from which he withdrew funds. Finally, King used unauthorized access devices to purchase goods and services to fund his lifestyle.

If convicted, King faces a statutory maximum penalty of 20 years in prison for each count of mail fraud and wire fraud, followed by three years of supervised release, a fine of up to $250,000 and restitution, and a consecutive two years in prison for each count of aggravated identity theft.

Mr. Ferrer commended the investigative efforts of USSS and USPIS. The case is being prosecuted by Assistant U.S. Attorney Alexandra Hui.

An indictment is only an accusation, and defendants are presumed innocent until and unless 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 George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Richard Altomare, 65, of Palm Beach County, was sentenced yesterday for his participation in a securities fraud “pump and dump” scheme. Altomare was sentenced to 37 months in prison, to be followed by three years of supervised release.

On February 21, 2014, a federal jury in Fort Lauderdale convicted Altomare on four counts, including one count of mail fraud and three counts of securities fraud.

According to the indictment and evidence presented during the trial, Altomare was the former CEO of Universal Express, Inc. Between 2000 and 2003, Altomare and other company insiders sold 500 million unregistered shares of Universal stock to the public, and then issued a series of false press releases in order to offset the resultant negative pressure on the stock price. On March 8, 2007, a Final Judgment in a civil action brought by the Securities and Exchange Commission was entered against Altomare. Among other things, the order prohibited Altomare from “participating in an offering of penny stock, including engaging in activities with a broker, dealer, or issuer for the purposes of issuing, trading or inducing or attempting to induce the purchase or sale of any penny stock.”

Despite the order, Altomare persuaded a start-up financial services firm based in Jacksonville called Sunset Brands, Inc. (SSBN), whose shares traded on the over the counter “penny stock” market, to bring him in as a consultant to attract investors and help write their press releases. Instead, Altomare used his access to the company to carry out a “pump and dump” scheme to defraud investors. In early 2013, Altomare met with a former business associate and conceived a scheme to artificially inflate the share price and trading volume of SSBN stock to enrich himself and his associate. Unbeknownst to Altomare, his former associate had become an informant for the FBI. During recorded conversations and meetings with the informant, Altomare promised to compensate him with SSBN stock to induce his cooperation in the scheme. Altomare’s plan was to have his former associate purchase shares of SSBN stock to mislead investors into believing that SSBN's share price was rising, and that there was a public market for SSBN stock. Altomare also used his access to SSBN’s press releases to further the scheme. Altomare agreed to cause SSBN, which was unaware of his plans, to issue positive press releases about the company to follow and coincide with the illegally induced purchasing by the informant. The purpose of the press releases was to make it appear that SSBN’s stock price was rising because of the positive news, and to conceal the market manipulation scheme from regulatory authorities. Altomare’s plan was to sell, or “dump,” the stock he and the informant controlled after the share price had been artificially inflated, and then split the proceeds with the informant.

Mr. Ferrer commended the investigative efforts of the FBI, and the assistance of the Miami Regional Office of the Securities and Exchange Commission. The case was prosecuted by Assistant U.S. Attorneys Alejandro O. Soto and Kevin J. Larsen.

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 Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce the filing of a one-count information charging Garfield Perry, 66, of North Miami Beach, with conspiring to accept bribes in connection with programs receiving federal funds and to commit extortion, all in violation of Title 18, United States Code, Section 371. Perry is scheduled to appear in federal court on Friday, May 9, 2014, at 2:00 p.m. before U.S. Magistrate Judge Alicia Otazo-Reyes.

According to the information, from at least 2002 through 2009, Perry was the Roadway Lighting Coordinator for the Department of Public Works in Miami-Dade County. In this capacity, Perry was responsible for, among other things, overseeing the maintenance of more than 22,000 street lights in the county’s roadway system. The information charges that from 2006 through October 2009, Perry accepted bribe payments from a Manufacturer’s Representative totaling approximately $150,000. Perry regularly directed the Manufacturer’s Representative to make the bribe payments by paying down debts owed by Perry, including payments on two home mortgages, one car loan, two home insurance policies, two car insurance policies, and eight credit cards. Perry accepted as bribe payments from the Manufacturer’s Representative, cruise vacations, domestic and international airline tickets, payments for hotels and theatre tickets. Perry regularly directed the Manufacturer’s Representative to make bribe payments by issuing checks payable to third parties, and, after the checks were cashed, determined the manner in which the proceeds were to be split. Perry falsely certified to Miami-Dade County that he was not engaged in any outside employment and did not receive any gratuities. In return for the bribe payments, Perry helped to ensure that lighting products used in Public Works’ projects were represented by the Manufacturer’s Representative.

If convicted, Perry faces a possible maximum statutory sentence of up to five years in prison.

Mr. Ferrer commended the investigative efforts of the FBI and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.

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.

Indictment Stems from USAO’s Miami Gardens Violence Reduction Partnership

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and Stephen Johnson, Chief, Miami Gardens Police Department, announce the indictment of Randy Antonio Thomas, 45, of Miami Gardens, for the alleged possession of a firearm by a convicted felon. Thomas is scheduled to make his initial appearance on Monday, May 5, 2014.

The indictment is, in large part, the result of the Miami Gardens Violence Reduction Partnership, launched by the U.S. Attorney’s Office in June 2013. Through this Partnership, the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminals the Miami Gardens neighborhood, 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.

The indictment, returned on April 22, 2014, charges the defendant with possessing a firearm and ammunition after having previously been convicted of a felony offense, in violation Title 18, United States Code, Sections 922(g) and 924(e)(1). Because of his criminal history, Thomas faces increased penalties under the federal Armed Career Criminal Act. If convicted, Thomas faces a minimum of fifteen years in prison and possible maximum sentence of up to life in prison.

Mr. Ferrer commended the investigative efforts of the ATF and Miami Gardens Police Department. This case is being prosecuted by Assistant U.S. Attorney Cristina Moreno.

An indictment 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.

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 filing of a two-count information charging Jose Emmanuel Torres, 37, of Cooper City, in count one, with federal bribery, in violation of 18 U.S.C. §§201(b)(2)(A) and (B); and, in count two, with exceeding authorized access to a government computer, in violation of 18 U.S.C. §§1030(a)(2)(B) and (c)(2)(B)(i) and (ii) and 18 U.S.C. §2.

Jose Emmanuel Torres, who was previously arrested in February 3, 2014, was arraigned today before U.S. Magistrate Judge Alicia Valle in Fort Lauderdale. The criminal information has been assigned to U.S. District Judge Robin S. Rosenbaum.

According to the information, from approximately January 2012 through December 13, 2013, Torres was assigned to the Department of Defense, Defense Intelligence Agency (DIA). As part of his official duties with the DIA, Torres worked with agents from Department of Homeland Security, Immigration and Customs Enforcement, and the Drug Enforcement Agency (DEA) collecting intelligence regarding persons who were allegedly involved in terrorism and drug trafficking. During the course of his duties with DIA, Torres interviewed a cooperating individual (CI) who was attempting to gain legal residence status in the United States and had provided Torres and other agents of the United States with information regarding persons involved in drug trafficking and terrorism. Torres told the CI that he had used his influence to have the CI arrested on immigration charges. In or about September 2013, Torres asked the CI for $10,000. The CI understood that, if he did not give Torres the money, Torres could use his influence to have the CI arrested again. Torres continued to ask for the $10,000 and promised that the CI would not go back to jail even if he [Torres] had to put his “neck on the line.” In November 2013 the CI paid Torres $6,000 in order for Torres to use his influence to assist the CI with the CI’s immigration proceedings.

Torres also caused another person to access a government computer and to obtain information from the NADDIS database operated by the DEA in order to commit a theft of $500,000 of drug proceeds.

If convicted, Torres faces a statutory maximum term of 20 years in prison and a fine of the greater of $250,000 or three times the money received.

Mr. Ferrer commended the investigative efforts of the FBI. Mr. Ferrer would also like to thank the Drug Enforcement Administration and the United States Secret Service for their assistance. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.

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.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Jose A. Gonzalez, 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 Douglas L. Bates, 55, of Parkland, was sentenced by U.S. District Donald M. Middlebrooks to 60 months in prison, two years of supervised release, and a $20,000 fine.

Bates previously pled guilty to a Superseding Information charging him with conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 371.

The acts set forth in the charging document were all in furtherance of a “Ponzi” scheme involving the sale of purported confidential settlement agreements in sexual harassment and/or whistle blower cases which were purportedly handled by attorneys at the former Ft. Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA).

According to the factual stipulation filed in support of the guilty plea, while Bates was a partner in the Law Offices of Koppel and Bates located at 817 South University Drive, Suite 100, Plantation, Florida, he assisted Scott W. Rothstein in defrauding certain clients of RRA by drafting false and fraudulent opinion letters claiming to represent an investment group which had a business plan to invest in the confidential settlements which formed the basis for the Ponzi scheme when, in fact, he did not, and claiming that he represented a plaintiff who had entered into one of the confidential settlement agreements when, in fact, he did not. The Superseding Information further alleges that Bates assisted Rothstein by arranging to have representatives of an investment group falsely informed that numerous legal cases were referred by Koppel & Bates to RRA when, in fact, they were not.

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

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, David W. Bourne, Special Agent in Charge, Food and Drug Administration (FDA), Office of Criminal Investigations, Miami Field Office, and Brian Kummerlen, Interim Chief, West Palm Beach Police Department, announce that Dewitt McDonald, 45, of Wellington, pled guilty to a one-count information charging him with knowingly carrying a firearm during and in relation to a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A). Sentencing is scheduled for July 18, 2014 at 9:00 a.m. in Fort Lauderdale before U.S. District Judge James I. Cohn.

According to the stipulated statement of facts filed with the Court, the defendant was a police officer with the West Palm Beach Police Department. While employed as a police officer, the defendant operated two businesses: Prime Performance Wellness Centers, Inc., located in Lake Worth, and Prime Health and Rejuvenation Clinic, located in Wellington, through which he unlawfully distributed anabolic steroids and other prescription drugs. The stipulated statement of facts further states that on March 5, 2013, while on duty and carrying his Smith & Wesson MP40 pistol, the defendant made a delivery of these drugs to another officer of the West Palm Beach Police Department.

The defendant faces a minimum sentence of five years in prison and a maximum statutory sentence of up to life in prison.

Mr. Ferrer commended the investigative efforts of the FBI and FDA Office of Criminal Investigations. Mr. Ferrer also thanked the West Palm Beach Police Department for their cooperation and assistance in this matter. This case is being prosecuted by Assistant U.S. Attorneys Jeffrey N. Kaplan, Paul F. Schwartz, and Lawrence D. LaVecchio.

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.

Charmaine Anne King was sentenced yesterday in connection with her role in a fraudulent international lottery scheme that targeted U.S. citizens, the Justice Department announced. King was sentenced by U.S. District Court Judge K. Michael Moore in Miami to serve 57 months in prison and five years of supervised release. A hearing on restitution has been scheduled for June 5, 2014. King was convicted by a federal jury in Miami on Feb. 5, 2014, of one count of conspiracy, three counts of mail fraud, and two counts of wire fraud.

King’s prosecution is part of the Department of Justice’s effort, working with federal and local law enforcement, to combat international lottery fraud schemes preying on American citizens. According to the U.S. Postal Inspection Service, Americans have lost tens of millions of dollars to fraudulent foreign lotteries.

“International lottery fraudsters have cheated Americans out of tens of millions of dollars,” said Wifredo Ferrer, U.S. Attorney for the Southern District of Florida. “In this particular scheme, the fraudsters convinced the victims to deposit counterfeit checks into their bank accounts in order to pay fees to collect their purported lottery winnings. After the victims sent the money to King, the counterfeit cashier’s checks bounced and they lost their money. Such fraud will not be tolerated. Together with federal and local law enforcement, we are working to put an end to this type of scheme.”

“The Justice Department will continue to hold criminals accountable for fraudulent lottery schemes,” said Stuart F. Delery, Assistant Attorney General for the Justice Department’s Civil Division. “This illegal conduct creates significant financial harm to people throughout the country, and we will continue to investigate and prosecute such crime, and bring those responsible to justice.”

A federal grand jury in Miami returned an indictment against King and co-conspirator Althea Angela Peart on Oct. 31, 2013. Judge Moore adopted a report and recommendation accepting Peart’s guilty plea on Feb. 4, 2014, and on March 20, 2014, he sentenced Peart to 33 months’ incarceration. As part of her plea agreement, Peart acknowledged that a co-conspirator, believed to be located in Canada, mailed letters to elderly victims in the United States falsely informing the victims that they had won more than a million dollars in a lottery. These letters purported to be from an actual sweepstakes company in the United States.

The evidence at King’s trial showed that a co-conspirator sent fraudulent lottery letters to the victims and included counterfeit cashier’s checks made out to the victims for thousands of dollars. These letters instructed victims to call “claims agents” who were actually co-conspirators, and when the victims called the purported claims agents, the agents informed the victims that they had to pay several thousand dollars in fees in order to collect their purported lottery winnings. The claims agents told the victims to deposit the cashier’s checks in the victims’ bank accounts in order to purportedly cover the money they had to pay. The co-conspirators instructed the victims on how to send and wire this money to King and others. The cashier’s checks that victims received from the fraudulent lottery had no value. The evidence demonstrated that after the victims sent money to King, the counterfeit cashier’s checks bounced. Victims never received any lottery winnings.

Evidence presented at trial showed that King kept a percentage of the money she received from victims and sent the rest of the money to a co-conspirator. King continued to participate in this scheme even after the U.S. Postal Inspection Service verbally informed her that she was participating in unlawful activity, and after she later signed a Cease and Desist Order requiring that she stop receiving money from victims of fraud. The order that King signed described the lottery related activity that the U.S. Postal Inspection Service explained was unlawful.

Assistant Attorney General Delery commended the investigative efforts of the U.S. Postal Inspection Service, Homeland Security Investigations, and the U.S. Marshals Service. The case is being prosecuted by Assistant Director Jeffrey Steger and Trial Attorney Kathryn Drenning with the Department of Justice’s Civil Division, Consumer Protection Branch.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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 Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce the conviction of defendant Erica Jacovia Bryant, 33, of Miramar, after a two day jury trial on charges of filing a false claim, in violation of Title 18, United States Code, Section 287.

At sentencing, the defendant faces a maximum statutory sentence of up to five years in prison, three years of supervised release, and a $250,000 fine. Sentencing has been scheduled for July 11, 2014 at 9:00 a.m. in front of U.S. District Judge James I. Cohn in Ft. Lauderdale.

According to the indictment and evidence introduced in court, Bryant filed a false 2011 tax return that fraudulently sought a $110,859.00 tax refund. Based upon this fraudulent return and the information contained therein, Bryant obtained a $100,653.22 tax refund from the Internal Revenue Service, which was later utilized to purchase a 2013 Lincoln MKZ. The 2013 Lincoln MKZ was subsequently seized by the IRS for forfeiture.

Mr. Ferrer commended the investigative efforts of the Internal Revenue Service-CI Division. This case is being handled by Assistant U.S. Attorney Marc 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.

Oneike Mickhale Barnett, a Jamaican citizen, was sentenced today in Ft. Lauderdale, Fla., in connection with his role in a fraudulent lottery scheme based in Jamaica that targeted victims in the United States, the Justice Department announced. Barnett was sentenced by U.S. District Court Judge William J. Zloch to serve 60 months in prison and five years’ supervised release. Barnett also was ordered to pay $94,456 in restitution.

Barnett’s prosecution is part of the Department of Justice’s effort, working with federal and local law enforcement, to combat fraudulent foreign lottery schemes preying on American citizens. According to the U.S. Postal Inspection Service, Americans have lost tens of millions of dollars to fraudulent foreign lotteries and sweepstakes.

“As international fraudsters focus their criminal schemes on Americans, we will do all we can to prosecute and deter such criminal activity,” said Wifredo Ferrer, U.S. Attorney for the Southern District of Florida. “We will continue to bring international fraudsters to justice in the United States.”

“This sentence sends a strong message that the American justice system will not stand by while criminals defraud unsuspecting Americans of their savings,” said Stuart F. Delery, Assistant Attorney General for the Justice Department’s Civil Division. “The Department of Justice will use all available means to hold these international criminals accountable.”

Barnett was arrested in Orlando, Fla., in August 2013, following his indictment by a federal grand jury in Ft. Lauderdale on Aug. 9, 2012. Barnett pleaded guilty on Feb. 28, 2014, to conspiracy to commit wire fraud. As part of his guilty plea, Barnett acknowledged that had the case gone to trial, the United States government would have proved beyond a reasonable doubt that, from 2008 through 2012, he was a member of a conspiracy in which elderly victims were informed that they had won a large amount of money in a lottery and were induced to pay bogus fees in advance of receiving their purported lottery winnings. In an effort to convince the victims that the lottery winnings were real, the conspirators sent them written and electronic communications discussing their purported lottery winnings which claimed to be from a genuine sweepstakes company, and from federal agencies, including the Internal Revenue Service and the Federal Reserve.

Also as part of his guilty plea, Barnett acknowledged that the government would have proved beyond a reasonable doubt that he knew the claims of lottery winnings were completely fabricated and he, along with his co-conspirators, kept the victims’ money for their own benefit without paying any lottery winnings.

U.S. Attorney Ferrer and Assistant Attorney General Delery commended the investigative efforts of the U.S. Postal Inspection Service, Homeland Security Investigations, and the U.S. Marshals Service. The case was prosecuted by Assistant U.S. Attorney Bertha Mitrani and Consumer Protection Branch, Civil Division Assistant Director Jeffrey Steger and Trial Attorney Kathryn Drenning.

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, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigations (IRS-CI), and Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), announce the filing of charges against David Benjamin, 48, of Boca Raton, and Jeff Alan Poole, 47, of Weston, for conspiring to commit crimes in connection with the operation of the former Fort Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA).

In a criminal information filed earlier today, Benjamin was charged with conspiracy to commit extortion and to violate civil rights, in violation of Title 18, United States Code, Section 371. In a separate criminal information also filed today, Poole was charged with conspiracy to violate civil rights, in violation of Title 18, United States Code, Section 241. The charges allege that, during the relevant time period, both defendants were employed by the Broward Sheriff’s Office. Benjamin was a Lieutenant and served as Executive Officer to then Sheriff Al Lamberti. Poole was a detective assigned to the Strategic Investigations Division.

The charging documents allege that both defendants agreed to utilize their respective positions within BSO unlawfully to further the interests of RRA, its Chairman and CEO, Scott W. Rothstein, and other persons associated with Rothstein. Specifically, the charging documents allege that Benjamin received approximately $185,000 in money and other things of value from Rothstein and RRA in return for providing his assistance when needed, including arranging with Poole to arrest the ex-wife of an attorney who was engaged in a child custody dispute with her, arranging to use force and threats of force against the boyfriend of an escort who was threatening to expose the illicit relationship which existed between the escort and one of the partners at RRA, and assisting Rothstein in loading cash and jewelry onto a private airplane which was used by Rothstein to flee to Morocco on October 27, 2009 as the Ponzi scheme being conducted through RRA was beginning to unravel.

U.S. Attorney Wifredo A. Ferrer stated, “David Benjamin and Jeff Poole used their official positions as law enforcement officers to commit civil rights abuses to further the interests of Scott Rothstein and others associated with Rothstein. When law enforcement officers betray the trust of the people, it strikes at the very core of our democracy. The informations filed today charging Benjamin and Poole should serve as a reminder that no one is above the law. When law enforcement officers violate the public’s trust, they will be held accountable. Benjamin and Poole are the nineteenth and twentieth accomplice, respectively, to be held accountable in Rothstein’s $1.2 billion Ponzi scheme.”

“When David Benjamin and Jeff Alan Poole began to use their official positions to further the illegal schemes of Rothstein and his cronies, they crossed a very bright line,” said William J. Maddalena, Assistant Special Agent in Charge, FBI Miami. “Their criminal misconduct undermined the public’s trust in law enforcement. As such, the FBI will continue to work with our partners to remove those law enforcement officers who violate the law. The FBI, in particular, would like to thank BSO for their close partnership investigating this matter.”

IRS-CI SAC José A. Gonzalez stated, “Law Enforcement Officers and individuals in positions of our citizens’ trust are held to an even higher standard than the general public. It’s a sad day when a lieutenant and a detective of the Broward County Sheriff’s Office who are sworn to uphold the law, allegedly misuse their positions by engaging in criminal acts. IRS-CI, together with its law enforcement partners, will continue to ensure that no one operates above the law and are held accountable for their actions.”

BSO Sheriff Scott Israel stated, “Every time a law enforcement officer is implicated in a crime, it’s a blow to our profession. This indictment tarnishes the image of honest, hard-working law enforcement officers everywhere. My immediate action after taking office was to suspend Deputy Poole and Lieutenant Benjamin based on an ongoing federal investigation. I applaud the diligence and professionalism displayed by our federal partners and we will continue working closely with them to ensure justice is served.”

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

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

Attachment:

David Benjamin - Information (PDF)

Jeff Alan Poole - Information (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, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Allen Weintraub, 48, of Boynton Beach, was sentenced yesterday by U.S. District Judge Donald Graham to 111 months in prison, three years of supervised release, ordered to forfeit $140,280.47, and pay the same amount in restitution to two victims of a scheme to sell Facebook shares.

In February 2014, Weintraub pled guilty to two counts of mail fraud. According to an agreed factual proffer, in February 2012, Weintraub, using an alias, steered potential investors seeking to purchase pre-IPO stock of Facebook, to the website of Private Stock Transfer, Inc. by posting a response on www.quora.com. In that post, Weintraub claimed that he had purchased Facebook stock from Private Stock Transfer, Inc. When victims went to the website and sought information on purchasing Facebook stock, Weintraub responded representing that Private Stock Transfer Inc. had thousands of Facebook shares available for purchase. He directed that various forms be completed which represented that victims were purchasing shares described as “Facebook Inc. by and through PST Investment III, Inc. Class A shares on a one for one conversion basis.” PST Investment III, Inc. was another company associated with Weintraub. After the victims sent payment to Weintraub’s bank accounts, Weintraub issued and mailed stock certificates for PST Investment III shares which would convert to Facebook shares on a one for one basis once Facebook went public. In reality, neither Weintraub nor Private Stock Transfer, Inc. had any Facebook shares. The two victims were defrauded a total of $414,000.

Mr. Ferrer commended the investigative efforts of the FBI. This case was prosecuted by Assistant U.S. Attorney Lois Foster-Steers.

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, Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, and Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, announce that Dr. Stephen Anthony, 65, formerly of Davie, was sentenced yesterday to 70 months in prison, to be followed by three years of supervised release. In addition, Dr. Anthony was ordered to pay $552,000 in restitution. Dr. Anthony previously pled guilty to conspiring to distribute and dispense large amounts of oxycodone without a legitimate medical purpose and outside the usual course of professional practice. In addition, Dr. Anthony pled guilty to money laundering and income tax evasion.

According to court documents, Anthony agreed to forfeit $338,300 in money and property representing the illegal narcotics proceeds he earned as a result of his involvement as a physician at Broward Urgent Care in Fort Lauderdale. As set forth in the plea agreement, between April 2010 and February 2011, Anthony was employed as a clinic doctor at Broward Urgent Care which, at the time, was owned by co-conspirators, Vincent Colangelo and Nicholaus Thomas. Colangelo pled guilty to narcotics, money laundering and federal income tax offenses on April 2, 2012, arising from his ownership of six pill mill clinics and pharmacies in Broward and Miami-Dade Counties. Thomas pled guilty on November 18, 2011 to narcotics and money laundering charges. Colangelo and Thomas sold Broward Urgent Care to Anthony after the Florida legislature enacted legislation in October 2010 requiring that pain management clinics be owned by licensed physicians. According to a review of medical records, while at Broward Urgent Care, Anthony wrote 12,510 prescriptions for oxycodone and 5,776 prescriptions for Xanax, and more than 99% of Anthony’s patients received prescriptions for oxycodone. In total, Anthony prescribed 42,374,370 milligrams of oxycodone during the ten months he worked as a physician at Broward Urgent Care.

According to the plea agreement, between 2000 and 2007, Anthony evaded the payment of approximately $556,262 in individual income and employment taxes. Anthony evaded taxes by depositing monies into a bank account in the name of a third party. Instead of paying taxes, Anthony purchased thousands of dollars in personal items including jewelry and automobiles.

U.S. Attorney Wifredo A. Ferrer stated, “Oxycodone is one of the most abused prescription medications in Florida and throughout the United States. Every day individuals die from prescription drug overdoses. Dr. Anthony, while a physician at Broward Urgent Care, nefariously hid behind his medical license and prescribed over a million pills of oxycodone during a ten-month period. Thanks to the dedicated work of our federal and local law enforcement partners, Dr. Anthony was convicted and stands behind bars, no longer able to practice medicine.”

IRS Special Agent in Charge José A. Gonzalez stated, “This sentencing sends a clear message that specialists who hide behind their medical licenses to commit illegal activities for profit, will be discovered, investigated and prosecuted. IRS-CI will account for the monies derived from the illegal activity to ensure that the proper amount of tax is paid and the money laundering transactions are charged.....sending the message that crime does not pay.”

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

U.S. Attorney Ferrer and Assistant Attorney General Keneally commended the IRS-CI, DEA, and the Broward Sheriff’s Office, as well as the many other state and local agencies for their investigative work. This case was prosecuted by Assistant U.S. Attorneys Scott Behnke and Roger Powell and DOJ Tax Division Trial Attorney Greg Tortella.

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, Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division, Jose A. Gonzalez, 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 Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, announce that defendants Brandon Johnson, 29, of Miami Gardens, Henry Dorvil, a/k/a “D,” 35, of Hollywood, Ronald Gustave, 36, of Miami, and Marie Eleazard, a/k/a “Fanfan,” 32, of Miami were sentenced for their participation in a stolen identity tax refund scheme resulting in millions of dollars in fraudulent activity.

Johnson was sentenced yesterday to 30 months in prison, to be followed by three years of supervised release, and was ordered to pay $74,050 in restitution. Dorvil was sentenced on April 17, 2014 to 54 months in prison, to be followed by three years of supervised release, and was ordered to pay $2,537,417 in restitution. Gustave was sentenced on April 17, 2014 to 36 months in prison, to be followed by three years of supervised release, and was ordered to pay $544,054 in restitution. Eleazard was sentenced on April 9, 2014 to 25 months in prison, to be followed by two years of supervised release, and was ordered to pay $1,880,317.94 in restitution. Each of the defendants previously pled guilty to one count of conspiring to defraud the government, in violation of Title 18, United States Code, Section 371, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).

Co-defendants Dukens Eleazard, a/k/a “DK,” 33, of Pembroke Pines, Luckner St Fleur, a/k/a “Nene,” 32, of Miami, Jesse Lamar Harrell, 26, of Miramar, Corey Williams, 30, of Miami Gardens, and Ruth Cartwright, a/k/a “Princess,” 30, formerly of Plantation, each previously pled guilty to one count of conspiring to defraud the government, in violation of Title 18, United States Code, Section 371, and one count of aggravated identity theft, in violation of Title 18, United States Code, 1028A(a)(1). Dukens Eleazard is scheduled to be sentenced on April 29, 2014; St Fleur and Harrell are scheduled to be sentenced on May 9, 2014; Williams is scheduled to be sentenced on May 21, 2014; and Cartwright is scheduled to be sentenced on July 7, 2014.

Co-defendants Herve Wilmore Jr., 29, of Aventura, and Delvin Jean Baptiste, a/k/a “Doo Doo”, 29, of Miramar, were convicted by a federal jury in Miami on March 5, 2014. Sentencing is scheduled for June 12, 2014, at 9:30 a.m. before U.S. District Judge Robert N. Scola. Specifically, the defendants were convicted of one count of conspiring to defraud the Internal Revenue Service (IRS), commit wire fraud, and commit aggravated identity theft, all in violation of Title 18, United States Code, Section 371; two counts of wire fraud, in violation of Title 18, United States Code, Sections 1343 and 2; and two counts of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2.

According to court documents and evidence presented at trial, the defendants conspired to unjustly enrich themselves by recruiting knowing co-conspirators and unknowing victims to put businesses, bank accounts and Electronic Filing Identification Numbers (EFINs) in their names, through which fraudulent transactions would be conducted. To accomplish this, the defendants used the personal identification information of individuals, many deceased, to prepare and file false and fraudulent income tax returns with the IRS. The defendants would obtain possession of fraudulently obtained refunds in the form of United States Treasury and Refund Anticipation Loan checks diverted to addresses or into bank accounts that they caused to be created and controlled. The defendants would then negotiate the fraudulently obtained federal income tax refunds within each other’s businesses, and elsewhere, to avoid being detected.

According to evidence at trial and court documents, Wilmore, Baptiste and their co-conspirators caused the filing of approximately $35 million in fraudulent federal income tax return of which the IRS paid out approximately $14 million. Defendant Wilmore was the president of Worldwide Income Tax Multiservices while Baptiste was the president of Royal Tax Multiservices, both tax preparation services located in Miami.

Co-defendant Marc Leroy Saint Juste, 47, of Tamarac, previously pled guilty to one count of conspiring to defraud the government, in violation of Title 18, United States Code, Section 371. He was sentenced to two months in prison, to be followed by one year of supervised release.

Co-defendant John Similien, 24, of Plantation, pled guilty on the third day of the eight day trial to making a false statement, in violation of Title 18, United States Code, Section 1001(a)(2), and was sentenced to time served.

The indictment was dismissed against Miguel Patterson, 35, of Miami.

U.S. Attorney Ferrer and Assistant Attorney General Keneally commended the investigative efforts of the IRS-CI, FBI, and USSS. The case is being prosecuted by Assistant U.S. Attorney Neil Karadbil and Tax Division Trial Attorney Greg Tortella.

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 conviction of William Garcia, 39, a detective with the Sweetwater Police Department.

On April 21, 2014, a jury in U.S. District Court found Garcia guilty of twelve counts. Specifically, the defendant was found guilty of one count conspiring to produce, use, or traffic in one or more counterfeit access devices, in violation of Title 18, United States Code, Section 371; one count of use of a counterfeit access device, in violation of Title 18, United States Code, Section 1029(a)(1); and ten counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). Garcia faces a mandatory minimum sentence of two years imprisonment and a maximum sentence of thirty-five years in prison.

At trial, the United States presented evidence documenting Garcia’s improper friendship with a former confidential source. The confidential source, a convicted felon, provided Garcia and another former South Miami Detective Richard Munoz with counterfeit credit cards. During the trial, the source, Munoz and others testified about Garcia’s possession and use of those cards during shopping trips to Miami-Dade County shopping malls in 2010 and early 2011. During a meeting in late December 2010, Garcia was recorded providing his own personal credit card for use in stealing account numbers and manufacturing counterfeit cards.

Additional evidence at trial showed that Garcia was caught on videotape bringing eight counterfeit credit cards to the residence of the confidential source. During that and other recorded meetings, Garcia explained that he had taken the counterfeit cards from work and that he would share them with the confidential source. During the next two weeks, Garcia was recorded discussing his use of the cards at restaurants, movies, and a mall. Garcia’s presence during the transactions was further documented through use of phone records, placing Garcia’s cellular telephone in the area of each transaction at the time it occurred.

After the verdict, U.S. District Court Judge Federico Moreno remanded Garcia pending sentencing on June 26, 2014 at 9:30 a.m. in Miami. Munoz, who himself pleaded guilty on March 13, 2014 to related fraud charges last month, is presently set for sentencing in front of Judge Moreno on May 9, 2014.

Mr. Ferrer commended the investigative efforts of the FBI Miami Area Corruption Task Force, the FBI Miami Cyber Task Force, and the Sweetwater Police Department. This case is being prosecuted by Assistant U.S. Attorneys Anthony Lacosta and Sarah Schall.

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, Jose A. Gonzalez, 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, announced that after a six-week trial before U.S. District Judge Kenneth A. Marra, a federal jury in West Palm Beach convicted defendants Kenneth Karow, 54, chiropractor, of West Palm Beach, Hermann J. Diehl, 44, chiropractor, of Miami, Hal Mark Kreitman, 50, former chiropractor, of Miami Beach, and Joel Antonio Simon Ramirez, 29, staged automobile accident recruiter, of West Palm Beach, for their participation in a massive staged automobile accident scheme based in Palm Beach and Miami-Dade Counties.

All of the defendants were convicted 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. Defendant Simon-Ramirez was convicted of eight substantive counts of mail fraud and one substantive count of money laundering.

According to the superseding indictment, these four 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. With today’s verdicts, 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, including Simon Ramirez, 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.

The defendants face a maximum sentence of 20 years in prison each count of conspiracy to commit mail fraud, substantive mail fraud, conspiracy to commit money laundering, and substantive money laundering. Restitution to the victims of these offenses is mandatory. Sentencing for all four defendants is set for July 3, 2014 before Judge Marra in West Palm Beach.

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, José A. Gonzalez, 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 Daniel C. Alexander, Chief, Boca Raton Police Department, announce today that Brandon James, of Miami, was sentenced by U.S. District Judge Daniel T.K. Hurley to 81 months in prison, followed by two years of supervised release. James was also ordered to pay restitution in the amount of $382,444, and a special assessment of $300.

According to court documents and statements made in court, James was involved in cashing out fraudulent federal income tax refunds that had been placed electronically onto debit cards. James and his co-conspirators, Laron Larkin, and Eric Fussell, attempted to defraud the IRS of more than $862,000 in fraudulent income tax refunds based on at least 121 stolen identities. The IRS paid approximately $382,484 on these refund requests.

James pled guilty earlier to conspiracy to steal government monies, in violation of Title 18, United States Code, Section 371 (Count 1), theft of government funds, in violation of Title 18, United States Code, Section 641 (Count 4), and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A (Count 9).

Co-defendant Larkin was sentenced on October 7, 2013 to 36 months and one day in prison, to be followed by three years of supervised release. Larkin pled guilty to one count of conspiracy to steal monies of the United States, in violation of Title 18, United States Code, Section 641, the conspiracy being a violation of Title 18, United States Code, Section 371; and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.

Mr. Ferrer commended the investigative efforts of IRS-CI, FBI, and the Boca Raton Police Department. The case is being prosecuted by Assistant U.S. Attorney Stephen Carlton.

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 José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Steven Tidas, of Tamarac, Stenor Prosper, of Parkland, and Sylvanie Junior Pierre, of Lauderdale Lakes, were charged in a thirty-five count indictment for unlawfully enriching themselves by filing materially false and fraudulent tax returns for their clients for which they obtained fees. All of the defendants were charged with one count of conspiracy, in violation of Title 18, United States Code, Section 371, and numerous counts of assisting in the preparation of false tax returns, in violation of Title 26, United States Code, Section 7206(2). All of the defendants had their initial appearances this morning before U.S. Magistrate Judge Barry S. Seltzer.

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

If convicted, the defendants each face a maximum of five years in prison for the conspiracy charge, and a maximum of three years in prison for each count of preparing false tax returns.

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

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

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Scott J. Israel, Sheriff, Broward Sheriff’s Office (BSO), announce today that co-defendants Camilla Gonzalez, 29, and Patricia Alcime, 29, both of Lauderhill, were sentenced today before U.S. District Judge William P. Dimitrouleas, in connection with their previous convictions relating to a tax refund scheme that used stolen social security and other personal identifying information to file false online tax returns that resulted in the issuance of hundreds of fraudulent tax refunds by the IRS totaling in excess of $1.5 million.

At today’s hearing, Judge Dimitrouleas sentenced Camilla Gonzalez to 102 months in prison to be followed by three years of supervised release and sentenced Patricia Alcime to 94 months in prison to be followed by three years of supervised release. Additionally, they were each ordered to pay $1.8 million in restitution to the IRS and were ordered to forfeit $511,801.28 in fraudulently obtained U.S. currency that had been frozen by SunTrust Bank and seized by the IRS.

Previously, on January 29, 2014, Gonzalez was convicted of one count of conspiracy to commit false claims, in violation of Title 18, United States Code, Section 286, two counts of theft of public money, in violation of Title 18, United States Code, Section 641, and two counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Co-defendant Alcime was convicted of one count of conspiracy to commit false claims, in violation of Title 18, United States Code, Section 286, three counts of theft of public money, in violation of Title 18, United States Code, Section 641, and three counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.

According to testimony and evidence presented at trial, as well as from court documents, between January 15, 2011 and continuing until on or about October 20, 2011, Gonzalez and Alcime conspired to defraud the United States by obtaining and aiding to obtain the payment or allowance of false, fictitious, and fraudulent claims. It was the object of the conspiracy that the defendants unjustly enrich themselves, by obtaining and utilizing stolen means of identification to file false and fraudulent federal income tax returns with the IRS claiming tax refunds to which they were not entitled.

In the instant case, Camilla Gonzalez and Patricia Alcime obtained personal identifying information of numerous identity theft victims, including their names, dates of birth, and Social Security numbers. The defendants utilized this information to electronically file false and fraudulent federal income tax returns without the knowledge or authorization of the identity theft victims, utilizing the Electronic Filing Identification Number (EFIN) assigned to Luxury Tax Inc. and their individually assigned Preparer Tax Identification Numbers (PTIN), claiming refunds to which they were not entitled from the IRS. Camilla Gonzalez and Patricia Alcime thereafter directed the IRS that the fraudulently claimed refunds be direct deposited into Luxury Tax, Inc. bank accounts at JP Morgan Chase Bank and SunTrust Bank or onto pre-paid reloadable debit card accounts.

Once the bank accounts or pre-paid reloadable debit cards had been funded by the Department of the Treasury, Gonzalez and Alcime would thereafter withdraw the funds by making withdrawals at local automated teller machines, transfers to other accounts under their control or to merchants directly, or would utilize the debit cards associated with the Luxury Tax Inc. bank accounts to make everyday purchases, including point of sale transactions at various local businesses and merchants.

In total, Camilla Gonzalez filed 621 fraudulent 2010 tax returns on behalf of unsuspecting identity theft victims, claiming $1,738,639.00 in fraudulent refunds. The IRS subsequently paid out $1,858,386.00 in refunds directly to accounts under her control. Patricia Alcime filed at least 92 fraudulent 2010 tax returns on behalf of unsuspecting identity theft victims, claiming $222,652.00 in fraudulent refunds. The IRS subsequently paid out $203,831.00 in refunds directly to accounts under the control of both Camilla Gonzalez and Patricia Alcime.

Mr. Ferrer commended the investigative efforts of the IRS-CI and BSO. This case is being handled by Assistant U.S. Attorney Marc 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.