Southern District of Florida

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 yesterday’s conviction of Mario Fabricio Ormachea Aliaga, 43, of La Paz, Bolivia. After a three-day jury trial in Ft. Lauderdale before U.S. District Judge Jose A. Gonzalez, Jr., Ormachea was convicted of traveling to the United States with the intent to commit extortion and attempted extortion.

At trial, the evidence showed that Ormachea, the National Chief of the Bolivian Police’s Anti-Corruption Department, traveled to the United States to extort Humberto Roca, a Bolivian citizen and political exile who was living in the United States.

Mr. Roca was a successful and prominent Bolivian businessman who had run the country’s largest private airline, Aerosur. After Mr. Roca spoke out against the Bolivian government, the Bolivian government charged him and members of his family with various crimes against the State. Ormachea flew to the United States to meet with Mr. Roca. During his meetings with Mr. Roca, Ormachea told Mr. Roca that he was in charge of several of the criminal cases against him, that he decided what the criminal investigations showed and what they did not show, and that he provided the components necessary for the Bolivian government to make decisions on Mr. Roca’s cases. Ormachea then told Mr. Roca that he believed him to be innocent of any crimes but that it would cost him $30,000 to have Ormachea shift the investigations to the guilty parties.

Ormachea faces a statutory maximum sentence of up to 25 years in prison, plus fines and restitution. Ormachea will be sentenced in May by U.S. District Judge Robin S. Rosenbaum.

Mr. Ferrer commended the investigative efforts of the FBI. This case was prosecuted by Assistant U.S. Attorneys John R. Byrne and Jon Juenger.

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, A. Lee Bentley, III, United States Attorney for the Middle District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation, Miami Field Office, Paul Wysopal, Special Agent in Charge, Federal Bureau of Investigation (FBI), Tampa Field Office, Aaron T. Ford, Special Agent in Charge, Federal Bureau of Investigation, New Jersey Field Office, and Scott Israel, Sheriff, Broward Sheriff's Office (BSO), Bomb Squad, announce the unsealing of an indictment charging Brian Henderson, 49, of Hallandale. The indictment, which was returned in the Southern District of Florida, is the result of a joint investigation conducted by the FBI Miami Field Office, the Tampa Field Office and the New Jersey Field Office.

Brian Henderson is scheduled to make his initial appearance in the Southern District of Florida before U.S. Magistrate Judge Alicia O. Valle on Friday, March 14, 2014.

According to the eleven-count indictment, which was returned on February 25, 2014, Henderson is charged with attempting to extort money from Publix Super Markets, Inc. (Publix), by the use of actual and threatened force, violence and fear of economic loss.

As set forth in the indictment, Henderson attempted to obtain money from Publix by sending several threatening emails to Publix in which he threatened to damage Publix stores through the use of explosive devices. In furtherance of his attempt to extort money from Publix, Henderson placed, and caused to be detonated, a pipe bomb at the Publix store located in Dania Beach.

If convicted, Brian Henderson faces the following potential penalties: up to 20 years in prison, followed by five years of supervised release, and a possible $250,000 fine as to Count 1, attempted interference with commerce by extortion, and as to count 10, attempting to destroy property by explosives; up to 10 years in prison, followed by three years of supervised release, and a possible $250,000 fine on counts 2, 4, 6 and 8, using an instrument of interstate and foreign commerce to make a threat to destroy property by explosives; up to two years in prison, followed by three years of supervised release, and a possible $250,000 fine, on counts 3, 5, 7 and 9, transmitting a communication in interstate and foreign commerce to extort money by damaging and destroying buildings; and, a mandatory minimum term of 30 years in prison, followed by five years of supervised release, and a possible $250,000 fine on count 11, using and carrying a firearm during and in relation to a crime of violence.

A separate criminal complaint charging Henderson in connection with alleged product tampering threats made to a consumer products company was unsealed today in the District of New Jersey.

Mr. Ferrer commended the investigative efforts of the FBI Tampa Field Office, the New Jersey Field Office, and the Miami Field Office, and the Broward Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Michael Walleisa.

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, 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 the sentencing of Raven Simone Sayers, 23, of Hallandale, by U.S. District Judge Jose E. Martinez. Sayers was sentenced to 162 months in prison, followed by three years supervised release.

Also previously sentenced in this case were defendants Ivory Lee Robinson, III, 22, and Tomaleesha Jeffie 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; and, McKeliver was sentenced to 102 months in prison, followed by three years of supervised release on December 16, 2013.

Each of the defendants previously pled guilty to interference with commerce by robbery (Hobbs Act), in violation of Title 18, United States Code, Section 1951, and using and carrying a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Section 924(c).

According to court documents, during the night of July 7, 2013, into the early morning hours of July 8, 2013, Sayers, Robinson, McKeliver, Paul Edward Moore, Joe JR Desilien, Herbert Lenorris Smith, Jr., Anthony Isaac Johnson, and Allan Demetrius 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. two St Lucie County PNC Banks were robbed at gunpoint, almost simultaneously. Law enforcement eventually identified, located, arrested and charged Sayers, Robinson, McKeliver, and their co-conspirators.

A jury trial for Paul Edward Moore, Anthony Isaac Johnson, and Joe JR Desilien is set for May 19, 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, and Hillsborough County Sheriff’s Office 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, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Carlos Rodriguez, 40, of Miami Lakes, was sentenced today to 22 months in prison, followed by two years of supervised release.

Rodriguez previously pled guilty to one count of structuring financial transactions with the intent to evade currency reporting requirements, in violation of Title 31, United States Code, Sections 5324(a)(3) and 5324(d)(2). Rodriguez is the former Chief Executive Officer of Rodri Rodri & Associates (Rodri), formerly located in Miami Lakes.

According to court documents and statements, financial institutions are required to report cash transactions in amounts over $10,000.00 to the IRS. From on or about January 4, 2012 through on or about March 22, 2012, Rodriguez was the Chief Executive Officer of Rodri, a tax preparation business. During that time, the defendant cashed or had cashed Rodri business checks in amounts under $10,000.00 at JPMorgan Chase Bank with the intent to evade the currency transaction reporting requirements of Title 31, United States Code, Section 5313(a). Pursuant to the terms of the plea agreement, the amount of money involved in the structuring violations was between $400,000 and $1 million.

According to the evidence, the tax return preparation part of the business was supervised by the defendant’s late wife Jennifer Rodriguez. The defendant was primarily responsible for the day-to-day operations of the business such as paying employees, collecting fees for the preparation of tax returns, paying business expenses, and handling customers with questions, concerns, or complaints. Nonetheless, many of the tax returns prepared by Rodri were fraudulent and contained false credits, such as education and fuel credits that the taxpayers otherwise were not entitled to have. The structured cash was used to provide cash, for a fee, to taxpayer clients in exchange for their inflated tax refunds.

As further stated in court and in court documents, the proceeds generated by the tax preparation business are traceable to the purchase of the properties listed in the indictment, including a couple of parcels of real property. According to the plea agreement, Rodriguez agreed to forfeit said properties to the United States.

As further stated in the plea agreement, Rodriguez agreed to cooperate with the IRS in its civil examination, determination, assessment, and collection of income taxes related to the defendant’s 2009 through 2012 income tax returns and any related corporate tax returns, and further agreed not to conceal, transfer, or dissipate funds or property that could be used to satisfy such taxes, penalties, and interest.

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

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, pled guilty today before U.S. District Judge James I. Cohn 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 had worked as a professional tax preparer at Liberty Tax Services, in Hollywood, from 2005-2009. In 2010, the Department of Justice’s Tax Division filed a civil complaint against Guevara, based on a civil IRS investigation, alleging that Guevara had 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 had entered its order. Audits by the IRS found that many of these 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.

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 charges against Russell S. Adler, 52, of Ft. Lauderdale. The defendant is alleged to have conspired to violate the Federal Election Campaign Act while a shareholder of the former Fort Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA).

According to the criminal information filed with the Court earlier today, the defendant was an attorney who was designated as a shareholder of RRA. He was charged with one count of conspiracy to violate the Federal Election Campaign Act and to defraud the United States, in violation of Title 18, United States Code, Section 371. If convicted, the defendant faces a maximum statutory sentence of up to five years in prison

The information charges that in order to circumvent campaign finance laws setting limitations on the amounts which donors can contribute, Rothstein enlisted some of the attorneys and administrative personnel of RRA, and other persons associated with RRA, including Adler, to make political contributions to various political campaigns which were unlawfully reimbursed to them by RRA.

U.S. Attorney Wifredo A. Ferrer stated, “The Federal Election Campaign Act is designed to limit financial influence in the election of candidates. Russell Adler blatantly ignored and circumvented clearly established campaign finance laws in an effort to increase the stature and apparent political power of RRA. The information filed today against Adler holds him accountable for his acts. Adler is now the seventh attorney and seventeenth accomplice to be held accountable in Rothstein’s $1.2 billion Ponzi scheme.”

“According to these charges, Russell S. Adler sought to undermine the campaign finance process and will now have to answer for his decision to do so,” said George L. Piro, Special Agent in Charge, FBI Miami. “This investigation is not over.”

IRS-CI Special Agent in Charge Jose A. Gonzalez stated, “The defendant made contributions to the presidential primary campaign of John McCain and the United States Senate campaign of Charlie Crist, which were unlawfully reimbursed by RRA. Today’s action demonstrates our collective efforts to enforce the law and ensure public trust. This investigation is not over as we are committed to ‘following the money trail’ and pursuing the evidence wherever it leads.”

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.

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, and Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), announce the sentencing of Samuel George Brown, 49, of Fort Pierce, on charges of prohibited possession of firearms, in violation of Title 18, United States Code, Section 922(k); and, possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c). Brown appeared in court on March 7, 2014, in Fort Pierce before U.S. Senior District Judge Donald L. Graham.

According to the indictment, as well as an earlier federal complaint, and facts agreed upon by the parties at sentencing, Brown was found in possession of a .380 caliber Hi-Point handgun, as well as a .22 caliber Marlin rifle and a 12-gauge Mossberg shotgun, with corresponding ammunition, in his home. Officers of the St. Lucie County Sheriff’s Office discovered the firearms and ammunition, together with marijuana packaged for sale, when they executed a search warrant at Brown’s Fort Pierce home on June 8, 2013. Brown is a previously convicted felon.

Brown pleaded guilty to two counts of the indictment, charging him with possession of a firearm with an obliterated or altered serial number; and possession of a firearm in furtherance of a drug trafficking crime. Judge Graham sentenced Brown to a term of 66 months in prison, to be followed by three years of supervised release, and payment of a $200 special assessment.

Mr. Ferrer commended the investigative efforts of ATF, the Fort Pierce Police Department, and the St. Lucie County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Theodore Cooperstein.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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 Ana Alliegro, 44, of Granada, Nicaragua, was arrested and brought back to the United States from Nicaragua, having been previously indicted for having violated the Federal Election Campaign Act in connection with the Democratic Party primary election for Florida’s 26th Congressional District. Alliegro’s initial appearance is scheduled for March 10, 2014 at 1:30 p.m. before U.S. Magistrate Judge Patrick White.

The indictment charges Alliegro with engaging in a conspiracy to make false statements to the Federal Election Commission and to violate the contribution limits of the Federal Election Campaign Act (Count 1); making a false statement (Count 2); and making illegal campaign contributions (Counts 3 & 4). If convicted, Alliegro faces a maximum term of up to five years in prison on each count and a fine of up to $250,000 on each count.

Mr. Ferrer commended the investigative efforts of the FBI’s Miami Area Corruption Task Force, the Legal Attaché Panama City, Panama and Diplomatic Security Service. The case is being prosecuted by Senior Litigation Counsel Thomas J. Mulvihill.

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

Attachment:

Indictment (PDF)

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José 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 Tenisha Nkesha Francis, 32, of Lake Worth, and Ryan Michael Francis, 27, of Riviera Beach, pled guilty today for their participation in a stolen identity tax refund scheme. Sentencing is scheduled for September 11, 2014 at 1:30 p.m. before Senior U.S. District Judge Kenneth L. Ryskamp.

Specifically, the defendants each pled guilty to one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2, and one count of theft of government funds, in violation of Title 18, United States Code, Sections 641 and 2. At sentencing, the defendants each face a mandatory term of two years in prison for the aggravated identity theft charge, to run consecutively to any other sentence, and a maximum term of ten years in prison for the theft of government funds charge.

According to court documents, Tenisha Francis worked as a Financial Services Representative at TD Bank. Tenisha Francis opened seven fraudulent accounts at the bank with stolen identification information obtained from co-defendant Ryan Francis. She was paid between $200 and $500 to open each fraudulent account. After opening the accounts, Tenisha Francis performed maintenance on these accounts and changed certain identifiers associated with the accounts, such as customers’ dates of birth, addresses and telephone numbers. Stolen U.S. Treasury checks were deposited into the accounts, and funds were withdrawn via check card purchases, ATM withdrawals and checks payable to third parties including Ryan Francis and his wife, Vanessa Brown, and Ryan Francis’ company, J.A. Kingz Automotive, LLC.

The amount of loss attributable to Tenisha Francis’ relevant conduct is between $120,000 and $200,000. The amount of loss attributable to Ryan Francis’ relevant conduct will be determined at his sentencing hearing.

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

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 Herve Wilmore Jr., 29, of Aventura, and Delvin Jean Baptiste, a/k/a “Doo Doo”, 29, of Miramar, were convicted today by a federal jury in Miami for their participation in a stolen identity tax refund scheme resulting in millions of dollars in fraudulent activity. Sentencing is scheduled for June 12, 2014, at 9:30 a.m. before U.S. District Judge Robert N. Scola.

Specifically, each of the defendants was 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 18 U.S.C. § 371; two counts of wire fraud, in violation of 18 U.S.C. §§ 1343 and 2; and two counts of aggravated identity theft, in violation of 18 U.S.C. §§ 1028A(a)(1) and 2. The defendants face a possible maximum statutory sentence of five years in prison for the conspiracy count, 20 years in prison for each count of wire fraud, and two years consecutive in prison for each count of aggravated identity theft.

Evidence at trial established that 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 refunds 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-defendants Marie Eleazard, a/k/a “Fanfan,” 32, of Miami, Henry Dorvil, a/k/a “D,” 35, of Hollywood, Brandon Johnson, 29, of Miami Gardens, Ronald Gustave, 36, of Miami, Ruth Cartwright, a/k/a “Princess,” 30, formerly of Plantation, 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, and Corey Williams, 30, of Miami Gardens, each previously pled guilty to one count of conspiring to defraud the government, in violation of 18,U.S.C. § 371, and one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A(a)(1). Marie Eleazard is scheduled to be sentenced on April 9, 2014 at 8:30 a.m. Sentencing for Dorvil, Johnson, and Gustave is scheduled for April 18, 2014 at 8:30 a.m. Cartwright is scheduled to be sentenced on May 7, 2014 at 8:30 a.m. Dukens Eleazard, St Fleur, and Harrell are scheduled to be sentenced on May 9, 2014 at 8:30 a.m. Williams is scheduled to be sentenced on May 21, 2014 at 8:30 a.m.

Co-defendant Marc Leroy Saint Juste, 47, of Tamarac, previously pled guilty to one count of conspiring to defraud the government, in violation of 18 U.S.C. § 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 18 U.S.C. § 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, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Patrick Lynn, Chief, Davie Police Department, announce the indictment of Daniel Jonathan Gast, 28, of Plantation, on child pornography charges.

The two-count indictment charges Gast with one count of distribution of child pornography and one count of possession of child pornography, in violation of Title 18, United States Code, Section 2252(a). If convicted, Gast faces a mandatory minimum sentence of five years in prison and a maximum sentence of up to 20 years in prison. Gast would also be required to register as a sex offender in any jurisdiction in which he lives, works or attends school.

According to documents filed with the court, in August 2013, law enforcement officials assigned to the South Florida Internet Crimes Against Children (ICAC) Task Force were conducting an investigation into the advertisement of suspected child pornography over publicly available Peer to Peer (P2P) networks. Their investigation revealed an IP address registered to Gast at his Plantation residence. A search of Gast’s residence in Plantation yielded no evidence of the suspected child pornography. However, a subsequent search of a music school in Broward County, where Gast worked as a music teacher, resulted in the discovery of Gast’s laptop which had over 95 video files of child pornography, much involving children under the age of 12, who were made to engage in the sexually explicit conduct depicted.

Anyone with questions or concerns should contact Davie Police Department Detective Adam Granit at (954) 693-8365.

Mr. Ferrer commended the investigative efforts of ICE-HSI, the Davie Police Department, and the South Florida ICAC Task Force. The case is being prosecuted by Assistant U.S. Attorney Karen Stewart.

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, 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), and Ronald J. Verrochio, Postal Inspector in Charge, United States Postal Inspection Service (USPIS), announce that Jeaneno Florent, 38, of North Miami, pled guilty today for his role in a tax refund scheme that resulted in the submission of approximately $2.4 million in fraudulent refund claims.

Florent pled guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343. Sentencing for Florent is scheduled for May 9, 2014 at 9:30 a.m. before U.S. District Judge Federico A. Moreno. At sentencing, the defendant faces a maximum term of 20 years in prison.

According to the plea documents, the defendant caused a false and fraudulent individual income tax return in his own name to be submitted to the Internal Revenue Service (IRS) in January 2012. The tax return falsely and fraudulently indicated that the defendant worked at Capitol Records, Inc. and 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. IRS approved payment and issued a refund check for approximately $613,000 in the defendant’s name.

According to plea documents and documents submitted in court, the defendant also submitted a similar fraudulent tax refund claim with the IRS in 2013 seeking approximately $573,000 and 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, USSS and USPIS. 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, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Ric L. Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, announce the arrests of Eliesky Sanchez, 31, and Reinaldo Garcia Suarez, 39, both of West Palm Beach. The defendants were charged by criminal complaint with conspiracy to receive goods stolen from an interstate or foreign shipment, in violation of Title 18, United States Code, Section 659, and sale or receipt of stolen property, in violation of Title 18, United States Code, Section 2315, all in violation of Title 18, United States Code, Section 371.

The defendants made their initial appearances today at 10:00 a.m. before U.S. Magistrate Judge Dave Lee Brannon. A pre-trial detention hearing for Sanchez has been scheduled for March 5, 2014. A pre-trial detention hearing for Garcia Suarez has been scheduled for March 7, 2014.

According to the criminal complaint, the investigation revealed that Eliesky Sanchez and Reinaldo Garcia Suarez were actively selling and providing as samples property which bore identifying numbers that matched the identifying numbers on the products stolen from different tractor trailer thefts. Items sold and/or provided as samples included, but were not limited to, Liquid Crystal Display vehicle monitors, Invicta wrist watches, Ralph Lauren clothing items, Proctor & Gamble products, and Nestle brand products.

According to the criminal complaint, on February 25, 2014, a confidential informant (CI) met with the defendants at the Extra Space Storage facility located in Palm Springs. During their meeting, the defendants opened the storage units and showed the CI pallets of merchandise inside of each unit. During this time, the CI had an empty trailer dropped off at this location as part of his undercover role. The CI discussed with the defendants filling the trailer with merchandise which the CI would purchase on February 27, 2014, and then ship to Brazil. As part of these arrangements, the CI agreed to purchase approximately three 53’ trailer loads of merchandise from the defendants over the course of a few days.

If convicted, the defendants face a maximum of five years in prison on the conspiracy charge.

Mr. Ferrer commended investigative efforts of the FBI and the Palm Beach County Sheriff’s Office. This case is being handled by Assistant U.S. Attorney William T. Zloch.

A criminal complaint 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, Michael B. Steinbach, 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 defendants Tiffany Shenae Cooper, 33, of Deerfield Beach, and Angela Dione Rosier, 41, of Coral Springs, were sentenced today for their participation in a stolen identity tax refund scheme. Cooper was sentenced to 57 months in prison, to be followed by three years of supervised release. Rosier was sentenced to 49 months in prison, to be followed by three years of supervised release. The court also ordered both defendants to pay $129,390.06 in restitution to the IRS and the medical services provider whose database had been breached.

Cooper previously pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Rosier previously pled guilty to one count of conspiracy to commit access device fraud, in violation of Title 18, United States Code, Section 1029(b)(2).

Co-defendants Michael Ali Bryant, Sr., 41, of Lauderdale Lakes, and Marquis Onigirin Moye, 24, of Pompano Beach, each previously pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Bryant’s sentencing is scheduled for April 11, 2014. Moye is scheduled to be sentenced on March 28, 2014. At sentencing, each of the defendants face a maximum of ten years in prison for the possession of unauthorized access devices charge, and a mandatory term of two years in prison, consecutive to any other term in prison, for the aggravated identity theft charge.

Michael Bryant's wife and co-defendant Latina Rashawn Bryant, 43, of Lauderdale Lakes, previously pled guilty to one count of using an unauthorized access device, 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. Sentencing is scheduled for March 28, 2014.

According to court documents, a confidential source (CS) initially approached Michael Bryant and inquired about purchasing narcotics. Bryant told the CS that he did not have any narcotics but that he did have personal identity information (PII) that he was willing to sell to the CS. The CS made a controlled purchase of ten pages (each page containing approximately 20 to 25 names) of PII. Bryant instructed the CS on how to commit tax fraud using the PII, and provided the CS with specific instructions on what information to enter into the web pages of the internet-based tax services to obtain a tax refund. An examination of the PII revealed that it was from a medical services provider.

Co-defendant Rosier was an employee of the medical services provider. Co-defendant Cooper spoke to Rosier to obtain user names and passwords for current employees of the medical services provider. Cooper admitted to illegally logging on to the medical services provider’s computer network and downloading PII for the purpose of committing various types of fraud. She was assisted in her activities by Rosier and co-defendant Moye.

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

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, U.S. Secret Service, Miami Field Office, announce that Regina James, 38, of Fort Lauderdale, pled guilty for her participation in a check cashing and stolen identity scheme. Sentencing is scheduled for May 16, 2014 at 4:00 p.m. before U.S. District Judge Marra.

Specifically, James pled guilty to one count of theft of public money, in violation of 18 U.S.C. § 641, and one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A(a)(1). At sentencing, James faces a maximum term of ten years in prison for the theft of public money charge, and a mandatory term of two years in prison for the aggravated identity theft charge, to run consecutively to any other sentence.

According to court documents, Wilson and Kate Lau owned a check cashing store called American Quick Cash (AQC). The Laus were cashing fraudulent tax refund checks arising out of fraudulent tax refund filings containing stolen identities. James was one of the seven “middle men” who brought the fraudulently obtained U.S. Treasury checks to AQC. James also brought fake Florida driver’s licenses in the names of the individuals on the checks that she cashed at AQC. James was charged 15% to cash the fraudulent checks, but Lau subsequently increased the fee to 50%. James received the stolen checks from another person and gave 40% of the amount of the check to that individual, and kept 10% for herself.

From January 2010 through June 2011, the total amount of U.S. Treasury checks cashed by James at AQC is approximately $650,617. The number of victims involved is greater than 50, but fewer than 250.

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 Alicia E. Shick.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Ronald J. Verrochio, Postal Inspector in Charge, United States Postal Inspection Service (USPIS), and Drew J. Breakspear, Commissioner, Florida Office of Financial Regulation, announce yesterday’s conviction of Arthur John Schlecht, 54, of Boone, North Carolina, and formerly of Miami-Dade County, for conspiracy to commit mail and wire fraud, and for wire fraud. Schlecht was convicted by a jury in Miami following a five-week trial.

The indictment charged Schlecht and others with conspiracy to commit fraud through their operation of three corporations, Global Bullion Trading Group, Inc., WJS Funding, Inc., d/b/a Capital Asset Management, and Certified, Inc., d/b/a Certified Clearing. These businesses claimed to be investment brokerage firms offering investors the opportunity to invest in gold, silver, platinum and palladium bullion, which would be stored for the investors in depository vaults. The indictment charged that the companies did not actually purchase physical metal in the name of their investors. The indictment also charged that Schlecht tried to hide his control of Global Bullion Trading Group, Inc., and Capital Asset Management, and that Schlecht used millions of dollars of company funds for his own benefit, including direct payments to family members, and for cars, maid services, home décor, landscaping, remodeling, interior furnishings, and jewelry.

Evidence at trial showed that hundreds of victims lost in excess of $25 million. Co-defendants Frederick B. Gomer, Carlos Rodriguez, Ricardo Padron and Robert Roca, who also worked at the businesses, pled guilty prior to trial.

Schlecht faces a statutory maximum sentence of up to 40 years in prison, plus fines and restitution. Schlecht will be sentenced in May by U.S. Judge Richard W. Goldberg.

Mr. Ferrer commended the investigative efforts of the FBI, USPIS, and the Florida Office of Financial Regulation. This case is being prosecuted by Senior Litigation Counsel Caroline Heck Miller and Assistant U.S. Attorney Michael R. Sherwin.

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 arrest of Tia Lashonda Miller, 39, of West Palm Beach, on charges of unlawful possession of unauthorized access devices, in violation of 18 U.S.C. § 1029(a)(3), and five counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A(a)(1)). Miller made her initial appearance in court on Monday, February 24, 2014, before U.S. Magistrate Judge Frank J. Lynch, Jr., and again at a bond hearing on Tuesday, February 25, 2014 that resulted in her detention without bond pending trial.

If convicted, the defendant faces a maximum statutory term of ten years in prison on the access devices count, and consecutive sentences of mandatory two years in prison on each aggravated identity theft count.

According to the indictment and both public filings and testimony in open court, Miller was found in possession of notebooks containing stolen personal identity information for over 700 persons, including names, dates of birth and social security account numbers, together with twenty credit and debit cards, eighteen of which were in the names of persons also found in the notebooks. IRS investigation determined that many of the names and account numbers were used to file fraudulent tax returns, seeking unmerited tax refund payments to credit and debit cards and to other accounts.

Agents, authorized by federal court search warrants, searched Miller’s home and computers and found additional evidence of fraudulent tax filings in the names of other identity theft victims.

Mr. Ferrer commended the investigative efforts of IRS-CI and the Martin County Sheriff’s Office for their work investigating this case. The case is being prosecuted by Assistant U.S. Attorney Theodore Cooperstein.

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

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Maureen O’Mara, Special Agent in Charge, United States Environmental Protection Agency, Criminal Investigation Division, Atlanta Area Office, and Colonel Alan M. Dodd, U.S. Army, Corps of Engineers, announce that Richard A. Bunnell, 70, of Coconut Grove, was sentenced yesterday for violations of federal law involving the illegal construction of structures, including docks and piers, in the navigable waters of the United States in violation of the Rivers and Harbors Act.

Bunnell was sentenced before U.S. District Judge K. Michael Moore on two counts of knowingly placing and erecting structures, docks, and piers within navigable waters of the United States, without, or in violation of, valid permits from the United States Army Corps of Engineers authorizing such conduct. Bunnell previously pled guilty to the charges before Judge Moore on December 26, 2013.

Bunnell was sentenced to six months home detention with electronic monitoring as well as concurrent probationary terms of five years on each of the counts of conviction. Bunnell was also ordered to pay a criminal fine of $175,000 and an additional payment of $50,000 to the South Florida National Parks Trust for management, restoration, and research. Finally, pursuant to the terms of the plea agreement in the case, Bunnell must file any necessary permit applications for six Miami-area installations involved in the case, and commence any corrective action required by the Army Corps of Engineers to modify or alter the installations to comply with Federal law, including the payment of mitigation for damage to natural resources.

Mr. Ferrer commended the investigative efforts of the Environmental Protection Agency, Criminal Investigation Division, and the U.S. Army Corps of Engineers. The case was prosecuted by Special Assistant U.S. Attorney Jodi A. Mazer and Assistant U.S. Attorney Thomas Watts-FitzGerald.

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 Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that a federal jury convicted Richard Altomare, 65, of Palm Beach County, on all four counts of the indictment, including one count of mail fraud and three counts of securities fraud. Altomare was the former CEO of Universal Express, Inc.

According to the indictment and evidence presented during the trial, Altomare carried out a scheme to artificially inflate the share price and trading volume of stock for a publicly traded company then known as Sunset Brands, Inc. (SSBN). Altomare agreed to pay a former business associate to purchase shares of SSBN stock to give the investing public the false impression that SSBN's stock was rising and that there was a public market for SSBN stock. Unbeknownst to Altomare, his former associate was an informant for the FBI. During recorded conversations and meetings, Altomare promised to compensate the informant with SSBN stock to induce his cooperation in the scheme. Altomare agreed to bolster the fraudulent buying program by agreeing to cause SSBN to issue one or more press releases announcing positive news about the company, which would be timed to follow and coincide with the illegally induced purchasing by the informant. The purpose of the press releases was to give the investing public the false impression that the purchase of SSBN stock was induced by positive news about the company and to conceal the market manipulation scheme from regulatory authorities.

Sentencing has been scheduled for May 6, 2014 at 1:15 p.m. before U.S. District Judge William Dimitrouleas in Ft. Lauderdale. At sentencing, the defendant faces up to twenty years in prison for each count of mail fraud and securities fraud.

Mr. Ferrer commended the investigative efforts of the FBI. The case is being 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, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), and Drew J. Breakspear, Commissioner, Florida Office of Financial Regulation, announce that George Louis Theodule, 52, a former resident of Wellington, was sentenced to 150 months in prison, to be followed by three years of supervised release. Theodule previously pled guilty to wire fraud, in violation of Title 18, United States Code, Section 1343.

According to the indictment, Theodule engaged in an investment fraud or “Ponzi” scheme, wherein he induced individuals to invest money with his companies, Creative Capital Consortium and A Creative Capital Concepts, based upon the representation that he would be able to double their money in 90 days, primarily by trading in stock options. Theodule, the indictment alleges, targeted the Haitian community in South Florida and elsewhere, forming “investment clubs” which attracted thousands of investors between late 2007 and late 2008. In reality only a small portion of investors’ money was placed into trading accounts – which invariably were depleted without showing any gains whatsoever. Rather, substantial funds were used to repay earlier investors, creating the appearance of investment success, and other funds were used by the defendant for his personal benefit. The scheme unraveled in early 2009 when the Securities and Exchange Commission obtained a restraining order and later an injunction to stop the alleged unlawful practices.

U.S. Attorney Wifredo A. Ferrer stated, “George Louis Theodule defrauded his victims out of millions of their hard-earned dollars. He did so by taking advantage of people who trusted him because of their cultural affinity. Such tactics are intolerable, especially given that some of his victims lost their entire life savings. This sentence should send a strong message to those who prey on the trust of others: you will get caught and justice will be served.”

“George Louis Theodule preyed on his connections within the Haitian community with offers too good to be true,” said Michael B. Steinbach, Special Agent in Charge, FBI Miami. Theodule now has 12 and a half years in prison to think about how he betrayed others.”

“Protecting Floridians from fraud, such as this, is one of our highest priorities and we are pleased with the outcome,” said OFR Commissioner Drew J. Breakspear. “We thank our partners in law enforcement for bringing this individual to justice. All potential investors are strongly encouraged to use due diligence when considering any financial product.”

In addition to the prison sentence, Theodule will be ordered to pay restitution to identified victims of the scheme. A restitution hearing has been scheduled for May 9, 2014.

Any victims of George Louis Theodule’s fraud who have not yet submitted a claim with the U.S. Probation Office are asked to contact Rosemary Williams at (305) 523-5455.

Mr. Ferrer commended the investigative efforts of the FBI and the Florida Office of Financial Regulation. This case is being prosecuted by Assistant U.S. Attorneys Roger H. Stefin and Carolyn Bell.

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 defendant Wendy Sands, 42, of Opa-Locka, was sentenced today to 26 months in prison, to be followed by three years of supervised release. Sands previously pled guilty to one count of possessing fifteen or more unauthorized access devices with the intent to defraud, in violation of Title 18, United States Code, Section 1029(a)(3), and to one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.

According to court documents, on January 16, 2013, Sands met with a confidential source (CS) and Sands was unaware the CS was working for the government. During the meeting, Sands provided the CS with documents that contained personal identifying information -- including names, dates of birth, and social security numbers -- for approximately 64 stolen identities. Sands knew that these 64 stolen identities belonged to real people and that the 64 victims did not authorize her to possess their personal information. Sands also knew that the stolen personal identifying information would be used to file fraudulent tax returns.

Mr. Ferrer commended the investigative efforts IRS-CI. 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.

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 Angelo Ponds, 32, of Miami Gardens, and Sean Guillaume, 31, of Miramar, were sentenced today for their participation in a stolen identity tax refund scheme relating to a health care provider. Ponds was sentenced to 48 months in prison, to be followed by three years of supervised release. Guillaume was sentenced to 94 months in prison, to be followed by three years of supervised release.

Both defendants previously pled guilty to one count of conspiracy to defraud the government, in violation of Title 18, United Stated Code, Section 286, and one count of aggravated identity theft in violation of Title 18, United States Code, Section 1028A.

According to court documents, Guillaume worked for a company that performed medical laboratory tests where he had access to medical records with names, dates of birth, and Social Security numbers (personal identity information or “PII”) of individuals in the course of his employment with that company.

During the conspiracy, Guillaume stole PII from the company and sold five thousand individuals’ PII to Ponds. Guillaume knew that Ponds would use the PII for the filing of fraudulent and unauthorized tax returns. Ponds caused other individuals to file false and fraudulent tax returns with the Internal Revenue Service (IRS) seeking refunds using the PII provided by Guillaume.

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, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Drew J. Breakspear, Commissioner, State of Florida, Office of Financial Regulation, Bureau of Financial Investigations, announce that Daniel Paez, 27, of Miami, was sentenced today before U.S. District Judge William P. Dimitrouleas to 37 months in prison in connection with a scheme to defraud investors in Florida and several states.

According to court documents, Paez was the President of Fly High Investments, Inc., a Miami-Dade investment fund. From in or around September 2010, through in or around April 2012, Paez obtained more than $500,000 in funds from investors via telephone solicitations and through the Internet. Paez told investors that Fly High Investments was a hedge fund that managed more than $50 million, and he promised investors that their money would be invested in safe and secure investments. Paez also promised a fixed rate of return and that investors could withdraw their money whenever they wished. Instead, according to the Information, Paez spent the bulk of the money raised from investors at casinos, and also withdrew large amounts of cash for his personal benefit. Paez did invest certain investor monies in stocks and other securities, but often in high risk investments or penny stocks that were materially different than the specific investments promised to investors during their sales pitch.

When investors contacted Fly High Investments and Paez to inquire about the status of their funds, Paez misled investors into believing their money was safe and had been invested profitably. Paez ultimately stopped returning calls and ignored requests for the return of investor funds. According to the Information, there were approximately 17 victim investors who were located in Florida and other states, including California, South Dakota, New Jersey and Minnesota. None of these investors received any return on their investment and they lost all of the money they invested with Fly High Investments and Paez.

Mr. Ferrer commended the investigative efforts of the FBI and the State of Florida, Office of Financial Regulation, Bureau of Financial Investigations. The matter is being prosecuted by Assistant U.S. Attorney Jerrob Duffy.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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 Liberty City/Little Haiti Violence Reduction Partnership

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CID), Miami Field Office, announce the return of an indictment charging eight defendants with participating in a narcotics-trafficking conspiracy, in violation of Title 21, United States Code, Section 846, as well as charging several defendants individually with associated firearms offenses, including possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i), and possession of a firearm and ammunition by a convicted felon, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(e).

The defendants charged are: Espere Desmond Pierre, 32; Markentz Blanc, 32; Meluin Jermaine Braynen, 19; Willis Maxi, 33; Wisvelt Voltaire, 32; Alex Bermudez, 24; Sanders Bermudez, 22; and Kervens Lalanne, 22, all of Miami.

According to the indictment, the defendants participated in the large-scale distribution of crack cocaine through multiple retail sale locations operated by the conspirators in the Little Haiti area of Miami.

In addition, Pierre and Blanc also conspired to use compromised personal identifying information to file numerous false and fraudulent tax returns in order to claim tax refunds to which they were not entitled. The defendants possessed the identity information (including names, dates of birth, and Social Security numbers) of over 1,000 persons. Pierre and Blanc were charged with conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349; and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). Blanc was additionally charged with possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3).

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 thanked FBI, ATF, IRS-CI, the MDPD, and the City of Miami Police Department for their work on the case. The case is being prosecuted by Assistant U.S. Attorney Seth M. Schlessinger.

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

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Douglas L. Bates, 55, of Parkland, pled guilty today in U.S. District Court in West Palm Beach to a Superseding Information charging conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 371. At sentencing, Bates faces up to five years in prison.

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.

Sentencing for Bates is scheduled for May 1, 2014 at 11:00 a.m. in West Palm Beach before U.S. District Judge Donald M. Middlebrooks.

U.S. Attorney Wifredo A. Ferrer stated, “It is unconscionable and unacceptable when attorneys violate the oath of office they swear to uphold. Bates, an attorney, violated the oath of office he swore to uphold by participating in the furtherance of Rothstein’s Ponzi scheme. As I have previously stated, the tentacles of Rothstein’s billion dollar Ponzi scheme reached far and wide. One by one, Rothstein’s criminal associates are being held accountable for their crimes. Today, Bates’ criminal actions make him the sixth attorney - and the 16th accomplice - to be held accountable.”

José A. Gonzalez stated, “Today’s guilty plea should send a message to those who violate their ethical obligations by participating in a massive fraud – no matter who you are or the fraudulent means employed, you will be held accountable for your actions. This investigation is not over. Together with our law enforcement partners we will continue to aggressively pursue those who assisted Rothstein in perpetrating this complex financial fraud.”

“Scott Rothstein needed accomplices who were willing to gamble away their ethical obligations in exchange for the promise of financial gain,” said Michael B. Steinbach, Special Agent in Charge, FBI Miami. “Douglas Bates took that gamble and lost. Regardless of one’s role, the FBI and its partners are committed to investigate those who swindle investors.”

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, Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Mark R. Trouville, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division, announce today that Christopher Gregory Wayne, an osteopathic physician residing in Miami, pled guilty before U.S. District Judge Robert N. Scola, Jr., to a criminal information that charges him with health care fraud and conspiracy to violate the narcotics laws of the United States. Sentencing has been scheduled for May 16, 2014.

At sentencing, Wayne faces a maximum sentence of ten years in prison and a $250,000 fine on the health care fraud charge. The narcotics charge carries a maximum sentence of five years in prison and a $250,000 fine.

In his plea, Wayne admitted to executing a scheme to defraud the Medicare program and attempting to cause a loss in excess of $2,500,000 to Medicare. Wayne agreed to the entry of a forfeiture judgment in the amount of $1,649,042, and the forfeiture of real property and a car, representing proceeds traceable to the health care fraud offense. Wayne also agreed to entry of a money judgment in the amount of $428,300 as proceeds of the narcotics distribution.

Mr. Ferrer commended the investigative efforts of HHS-OIG, FBI and DEA. The case is being prosecuted by Assistant U.S. Attorneys Eric Morales and Brent Tantillo.

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Maureen O’Mara, Special Agent in Charge, United States Environmental Protection Agency, Criminal Investigation Division (EPA-CID), Michael A. Hill, Special Agent in Charge, United States Environmental Protection Agency, Office of Inspector General (EPA-OIG), Atlanta Field Office, and Colonel/Director Calvin Adams, Florida Fish and Wildlife Conservation Commission, Division of Law Enforcement (FWCC), announce the filing of an 11-count indictment charging New Nautical Coatings, Inc., d/b/a “Sea Hawk Paints,” Sea Hawk Refinish Line, Inc., d/b/a “Refinish Line Auto Supplies,” of Clearwater, Florida, and Hillsborough County residents Erik Norrie, David Norrie, Jason Revie, and Tommy Craft, in a scheme to unlawfully sell an unregistered pesticide and obstruct justice.

David Norrie, Jason Revie, and Tommy Craft had their initial appearances on February 11, 2013, in Tampa before U.S. Magistrate Judge Anthony Porcelli. Erik Norrie is expected to make his initial this week in Tampa before U.S. Magistrate Judge Porcelli.

Specifically, each defendant is charged with one count of conspiracy to (1) impede, impair, obstruct, and defeat the lawful functions of the EPA; (2) sell an unregistered pesticide; (3) violate an EPA cancellation order; and (4) obstruct justice, in violation of Title 18, United States Code, Section 371, and a separate conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 1349. New Nautical Coatings, Refinish Line, David Norrie, Erik Norrie and Jason Revie are also charged with one count of wire fraud, in violation of Title 18, United States Code, Section 1343, and one count of misuse of a government seal, in violation of Title 18, United States Code, Section 1017. New Nautical Coatings and David Norrie are also charged with one count of obstruction of justice, and New Nautical Coatings and Erik Norrie are charged with two other counts of obstructing justice, in violation of Title 18, United States Code, Section 1512(b)(3). New Nautical Coatings, David Norrie, Erik Norrie, Jason Revie, and Tommy Craft are also charged with four counts of the sale of an unregistered pesticide, in violation of Title 7, United States Code, Section 136j(a)(1)(A).

According to the indictment, New Nautical manufactured a paint called Biocop Anti-Fouling Coating which contained tributyltin methacrylate, also known as “TBT,” a chemical compound which was found to have significant harmful effects on marine life. TBT based paints such as Biocop are pesticides subject to registration with the EPA. On or about December 1, 2005, the EPA cancelled New Nautical’s registration for Biocop, making it unlawful for New Nautical to manufacture Biocop for sale in the United States after December 1, 2005, or sell Biocop in the United States after December 31, 2005. Despite the cancellation, New Nautical Coatings, through defendants David Norrie, Erik Norrie Jason Revie, Tommy Craft and others continued to manufacture and sell Biocop in the United States. In order to manufacture and sell Biocop after the cancellation date, New Nautical Coatings, through defendants David Norrie, Erik Norrie, Jason Revie, Tommy Craft, and others, misled their customers and the EPA regarding their continued production of Biocop after the cancellation date. In furtherance of the conspiracy, the defendants took steps to make it falsely and fraudulently appear that New Nautical had earmarked and sold significant amounts of Biocop to distributors prior to December 31, 2005. In truth, the supposedly allocated Biocop had not been manufactured by December 1, 2005, and did not exist to be sold by December 31, 2005. In furtherance of the conspiracy, Refinish Line, David Norrie, Erik Norrie, and Jason Revie created and caused to be created false and fraudulent purchase orders and invoices for orders of Biocop that Refinish Line did not sell, distribute, or ship to the customers and companies listed in the purchase orders and invoices. New Nautical, David Norrie, and Erik Norrie took other steps to conceal the unlawful production and sale of Biocop, including the falsification of reports submitted to the EPA and directing a witness to lie to the EPA. By producing and selling Biocop, an unregistered pesticide, for domestic use and application, and by concealing such acts from the EPA and customers, New Nautical, Refinish Line and their co-conspirators derived pecuniary gains in excess of $2,000,000.

If convicted, the corporate defendants, New Nautical Coatings, Inc. and Sea Hawk Refinish Line, Inc., face a fine of up to $500,000 for each felony conviction, and a fine of $200,000 for each misdemeanor conviction. If convicted, the individual defendants face up to five years in prison for each count of conspiracy to defraud the government, up to twenty years in prison for each count of conspiracy to commit mail and wire fraud, wire fraud, and obstruction of justice, up to five years in prison for each count of the misuse of a government seal, and up to one year in prison for each count of the sale of an unregistered pesticide.

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

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

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Paul Miller, Interim Chief, Miami Gardens Police Department (MGPD), announce that Deondre Bain, 23, Lamar Eady, Jr., 23, and Lloyd Hulse, Jr., 22, all of Miami Gardens, were sentenced following their convictions as previously convicted felons in possession of firearms. Eady, an armed career criminal, was sentenced to 188 months in prison, while Bain and Hulse were sentenced to 111 and 110 months in prison, respectively, by U.S. District Judge William J. Zloch.

According to evidence presented at trial and statements made in open court, in the early morning hours of Sunday, June 30, 2013, federal and state law enforcement officers were conducting an investigation into the activities of the 170 Boys gang in Miami Gardens. Around 3:00 a.m., as they patrolled the Honey Hill area, officers saw Hulse getting into a parked car, holding what turned out to be a stolen AR-15 assault rifle, loaded with forty rounds of .223 caliber ammunition. Further investigation revealed two more stolen firearms inside the car, fully loaded, belonging to Bain and Eady, who were seated in the vehicle.

A federal grand jury indicted Bain, Eady, and Hulse on July 26, 2013, charging all three with possession of a firearm and ammunition by a convicted felon. In November 2013, Hulse pled guilty, and Bain and Eady were convicted following a trial. According to evidence presented at the trial and statements made in open court, all three men had significant criminal histories involving multiple felony convictions. Eady was sentenced under the Armed Career Criminal Act, which provides a sentencing range of fifteen years to life for individuals who have been convicted of federal gun crimes and have at least three prior felony convictions for violent felonies and/or serious drug offenses.

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

Mr. Ferrer commended the investigative efforts of ATF, FBI, and MGPD. This case was prosecuted by Assistant U.S. Attorneys Benjamin Coats and Andy Camacho.

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

The former owner of a defunct durable medical equipment (DME) clinic was sentenced today in Miami to serve 70 months in prison for his role in an $11 million health care fraud scheme involving World Class Medical Clinic Corp. (World Class).

U.S. Attorney for the Southern District of Florida Wifredo A Ferrer, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Special Agent in Charge Michael B. Steinbach of the FBI's Miami Field Office, and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigation’s Miami Office made the announcement.

Francisco Enrique Chavez, 36, of Miami, was sentenced by U.S. District Judge Patricia A. Seitz in the Southern District of Florida. In addition to his prison term, Chavez was sentenced to three years of supervised release and ordered to pay $1,713,959 in restitution.

On Nov. 21, 2013, Chavez pleaded guilty to one count of health care fraud.

During the course of the health care fraud scheme, Chavez served as the president and sole corporate officer of World Class, a defunct DME company located in Miami. From March 27, 2006 through Aug. 22, 2006, Chavez submitted and caused to be submitted approximately $11.3 million in false and fraudulent claims to the Medicare program on behalf of World Class for DME that was neither prescribed by a physician nor medically necessary. Medicare paid more than $1.7 million on these false and fraudulent claims. The proceeds of the World Class fraud scheme were deposited into corporate bank accounts that were controlled by Chavez. Chavez, in turn, made numerous cash withdrawals and deposits into personal and shell entity bank accounts to facilitate and conceal the nature of the scheme.

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

Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,700 defendants who collectively have falsely billed the Medicare program for more than $5.5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

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

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce today that a federal jury in West Palm Beach convicted Christina M. Kitterman, 38, of Deerfield Beach, on three counts of wire fraud, after a week-long trial before U.S. District Judge Daniel T. K. Hurley. A sentencing date has not been set.

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.

At sentencing, Kitterman faces up to twenty years in prison and a fine of $250,000.00.

U.S. Attorney Wifredo A. Ferrer stated, “The verdict rendered by the jury today is another step toward bringing Rothstein’s criminal associates to justice. As I have previously stated, the success of Rothstein's complex scheme to deceive and defraud depended on the complicity of individuals like Christina Kitterman. Kitterman, an attorney, was the fifteenth individual to face criminal charges in connection with this complex financial fraud.”

IRS-CI Special Agent in Charge Jose A. Gonzalez stated, “The jury has validated the government's case sending a strong message that those who knowingly assist in perpetrating investment scams will be held accountable for their actions. Together with our law enforcement partners, we will continue to aggressively investigate and bring to justice those who aided Rothstein in perpetrating this massive fraud.”

“Although Scott Rothstein was the ringleader in a massive Ponzi scheme, he needed help. A jury of her peers has determined Christina Kitterman gave him that help and needs to be held accountable,” said Michael B. Steinbach, Special Agent in Charge, FBI Miami. “Regardless of one’s role, the FBI and its partners are committed to investigate those who swindle investors.”

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, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Rafael P. Hernandez, Jr., Chief, North Miami Beach Police Department, and Marc Elias, Jr., Chief, North Miami Police Department, announce the sentencing of defendant Robinson Calixte, 22, of Miami. U.S. District Judge Donald L. Graham sentenced Calixte to 47 months in prison, followed by three years of supervised release.

On September 13, 2013, Calixte was charged in a five count indictment for identity theft in connection with his unauthorized possession of at least fifteen social security numbers belonging to other individuals. Calixte was found with over 800 names, dates of birth and social security numbers of other individuals.

On December 2, 2013, Calixte pled guilty to one count of access device fraud, in violation of Title 18, United States Code, Sections 1029 (a)(3) and 2; and to one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028 A(a)(1) and 2.

Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to the IRS-CI, ATF, North Miami Beach Police Department, and North Miami Police Department. The case is being prosecuted by Assistant U.S. Attorney Gera R. Peoples.

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Richard Walker, Special Agent in Charge of the Atlanta Regional Office, United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, and Jesse Panuccio, Executive Director, State of Florida’s Department of Economic Opportunity, announce the sentencing of Guy Robert Nalien, 26, of North Miami, after a plea of guilty on November 6, 2013, to mail fraud and aggravated identity theft. On February 5, 2014, U.S. District Court Judge Marcia G. Cooke sentenced Nalien to 32 months in prison, followed by three years of supervised release, and restitution to the State of Florida in the amount of $29,815.

According to the indictment, Nalien utilized the personal identification of others to falsely represent to the Florida Department of Economic Opportunity Unemployment Compensation Program that such individuals were unemployed and eligible to obtain Florida unemployment compensation benefits. The indictment further alleged, that Nalien used the U.S. Postal Service to receive these fraudulently obtained benefits for his own personal use.

Mr. Ferrer commended the investigative efforts of the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations and the State of Florida’s Department of Economic Opportunity. The case is being prosecuted by Assistant U.S. Attorney Thomas P. Lanigan.

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, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Manuel Orosa, Chief, City of Miami Police Department (MPD), and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Malinsky Bazile, 28, of North Miami Beach, was sentenced today for his participation in a stolen identity tax refund scheme. Bazile was sentenced to 144 months in prison, to be followed by three years of supervised release and ordered to pay restitution in the amount of $140,000.

Bazile was convicted by a jury of one count of fraudulent use of unauthorized devices, in violation of Title 18, United States Code, Section 1029(a)(2), four counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1), one count of exceeding authorized access to a protected computer, in violation of Title 18, United States Code, Section 1030(a)(4), and one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3).

According to testimony and evidence presented at trial, the defendant operated an identity theft tax refund scheme from January 2012 to October 2012. During that period, the defendant, while employed as a City of Miami Police Officer, used his access to the Florida driver's license database to steal the personal identity information of approximately seven hundred middle-aged women with common last names throughout the State of Florida. Using those identities, the defendant filed false and fraudulent tax returns with the Internal Revenue Service seeking refunds payable to pre-paid debit cards. The defendant was captured on multiple bank ATM videos withdrawing money from pre-paid debit cards loaded with fraudulent tax refund proceeds. FBI and MPD conducted a search at the defendant's residence and found ledgers in a safe filled with hundreds of people’s identities and several pre-paid debit card containers. The defendant admitted to FBI and MPD that he made between $130,000 to $140,000 from the fraud scheme in 2011 and 2012.

Mr. Ferrer commended the FBI, MPD, and IRS-CI for their work on the case. The case is being prosecuted by Assistant U.S. Attorneys Michael N. Berger and Peter Forand.

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 Lee Ervin Dale, 31, of Fort Lauderdale, was sentenced today for his participation in a tax refund scheme using stolen identities. United States District Judge Kathleen M. Williams sentenced Dale to 120 months in prison, followed by three years of supervised release, and ordered restitution in the amount of $275,740. A jury previously convicted Dale of two counts of converting government funds to his own use, six counts of making and presenting false claims to the IRS, and two counts of aggravated identity theft.

According to testimony and evidence presented at trial and sentencing, Dale filed approximately 291 handwritten tax returns claiming more than $2 million in refunds between 2006 and 2009 using stolen identities and listing his P.O. Box address. Although the IRS was able to prevent refund checks from being issued on most of these claims, approximately $275,000 in refund checks were mailed to his P.O. Box. Several of these checks were deposited directly into bank accounts bearing both Dale’s name and the identity theft victim’s name. Other checks were cashed at a check cashing store in Oakland Park, Florida, in exchange for cash and money orders that Dale then deposited into his own accounts.

Mr. Ferrer commended the investigative efforts of IRS-CI. The case was prosecuted by Assistant U.S. Attorney Jared M. Strauss and now-former Assistant U.S. Attorney Laurie E. Rucoba.

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, and Paula Reid, Special Agent in Charge, U.S. Secret Service, Miami Field Office, announce that Darryl Burke, 50, and Vicki Garland, 50, both of Delray Beach, Florida, were convicted yesterday by a federal jury in Ft. Lauderdale of bank fraud and wire fraud conspiracy, after a two and half week trial before U.S. District Judge James I. Cohn. Burke was also convicted of four substantive counts of bank fraud, and Garland was convicted of three substantive counts of bank fraud.

Evidence at trial established that Burke and Garland created fictitious companies, including Next Level Development, and used an abandoned coin laundry in Delray Beach, to create an empire of fraudulently obtained investment properties. The abandoned coin laundry had a mailbox that served as the official address for the defendants, various fake companies, and other conspirators and fictitious individuals. Trial evidence established that Burke and Garland used fake documents, including false wage and tax documents, and false claims of employment and income, to obtain bank loans for investment properties in low-income neighborhoods. Garland was held out as the “President” of Next Level, and would sell properties to Burke, using his alias, “David Middleton.” The defendants would then enroll the properties in the U.S. Department of Housing and Urban Development (HUD), Section 8 voucher program, and obtain proceeds from HUD and from low-income tenants. The defendants then used false claims of status for Burke and also for the fake name, “David Middleton,” as total and permanent disabled veterans to avoid property taxes on various fraudulently obtained properties. Burke and his fake alias were neither veterans nor disabled. Trial evidence established that the loans and rental proceeds totaled millions of dollars.

Defendants used the proceeds of the fraud to acquire a multi-residence waterfront compound in Delray Beach, as well as Bentley, Mercedes and Range Rover automobiles, luxury goods, and courtside season tickets for the Miami Heat, and to obtain large amounts of cash. Evidence further showed that Burke was convicted in 1997 in the Southern District of Florida of federal bank fraud charges, in relation to conduct that spanned the late 1980s and early 1990s.

Sentencing of Burke and Garland is set for April 18, 2014 before Judge Cohn.

Previously, four defendants were convicted in connection with the scheme to defraud multiple lenders. Three title agents, Osvaldo Sanchez, 38, Rafael Amador, 32, both of Miami, Florida, and Devon Fraser, 31, of Sunrise, Florida, and real estate investor Chiquita Alexis, 46, of Boca Raton, Florida, all pled guilty before to the same conspiracy involving Burke and Garland. Sanchez and Amador were each sentenced to 24 months in prison on November 5, 2013. Fraser and Alexis are scheduled for sentencing before U.S. District Judge Ursula Ungaro on February 19, 2014

Mr. Ferrer commended the investigative efforts of the U.S. Secret Service. This case is being prosecuted by Assistant U.S. Attorney Jerrob Duffy.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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), Paula Reid, Special Agent in Charge, U.S. Secret Service, Miami Field Office, and J. Dennis Scott, Chief, North Miami Beach Police Department, announce that Frantz Pierre, 34, of Parkland, Terry Pierre, 29, and Christmanie Bissainthe, 33, both of Miami, were sentenced today by U.S. District Court Judge Marcia G. Cooke after having been found guilty by a federal jury of charges relating to their participation in a stolen identity tax refund scheme that resulted in the submission of approximately $2.2 million in fraudulent refund claims to the Internal Revenue Service. Specifically, Frantz Pierre was sentenced to 208 months in prison, followed by three years of supervised release; Terry Pierre was sentenced to 121 months in prison, followed by three years of supervised; and Christmanie Bissainthe was sentenced to 84 months in prison, followed by three years of supervised. A restitution hearing is scheduled for April 30, 2014 at 9:30 a.m.

On October 24, 2013, a federal jury in Miami convicted Frantz Pierre, Terry Pierre and Christmanie Bissainthe on 12 counts, including conspiracy to submit fraudulent claims to the government, access device fraud, and aggravated identity theft. According to trial evidence and testimony, 1,000 pre-paid debit cards were sent to Frantz Pierre’s business in the name of Tax Professors in May 2010. Co-conspirators subsequently caused approximately 338 fraudulent and unauthorized tax returns using stolen prisoners’ identities to be submitted to the IRS seeking $2.2 million in refunds for payment onto the Tax Professors’ debit cards. The IRS paid approximately $1.9 million in refunds in connection with these fraudulent returns to these debit cards. Evidence at trial included, among other things, video evidence of all three defendants withdrawing funds from these debit cards.

According to trial evidence and testimony, law enforcement executed a search warrant at defendant Frantz Pierre’s seven-bedroom residence in Parkland, Florida in July 2012. The evidence showed that this residence had been purchased primarily with fraudulent tax refund proceeds. After law enforcement announced their presence, an individual was observed tossing laptops from the second floor of Pierre’s residence towards the pool. Law enforcement found over 70 pre-paid debit cards and a thumb drive with over 2,000 people’s names, dates of birth, Social Security numbers, and IRS pin numbers in Frantz Pierre’s bedside dresser.

Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to IRS-CI (Miami and St. Paul), the U.S. Secret Service, and the North Miami Beach Police Department. The case is being prosecuted by Assistant U.S. Attorneys Michael N. Berger and Cristina Moreno.

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), Wendy Bashnan, Special Agent in Charge, Miami Field Office, U.S. Department of State’s Diplomatic Security Service (DSS), Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce the arrests of Goran Bjelovic, 44, of Aventura, Srdjan Jovcic, 50, of Wallington, New Jersey, and Hollywood, Florida, Branko Likic, 35, of Fort Lauderdale, Heather Bennett, 30, of Fort Lauderdale, and Ljiljana Aleksic, 54, of Orlando. All five defendants have been charged with various violations of fraud and misuse of visa, permits and other documents, in violation of 18 U.S.C. § 1546(a), marriage fraud, in violation of 8 U.S.C. § 1325(c), and/or conspiracy to commit such, in violation of 18 U.S.C. § 371.

Bjelovic, Likic and Bennett were all arrested this morning and made their initial appearances at 11:00 a.m. before U.S. Magistrate Judge Patrick Hunt in Fort Lauderdale. Jovcic, who was arrested in Wallington, New Jersey, and Aleksic, who was arrested in Orlando, will make their initial appearances in the respective districts.

According to the indictment that was unsealed this morning, Jovcic used and possessed a United States passport that had been procured through marriage fraud and the concealment of prior arrest and conviction history. Specifically, he is charged with using such passport to obtain a Florida driver license in 2009 and to enter the United States at the Miami International Airport on two separate occasions in 2011.

Bjelovic, Jovcic and Aleksic are charged with conspiracy to commit marriage fraud and fraud and misuse of visas, permits and other documents in connection with a sham marriage between Bjelovic and Aleksic. According to the indictment, Bjelovic and Aleksic were married in Orlando, Florida on November 16, 2010, shortly after Aleksic took the civics test to become a U.S. citizen. Aleksic then filed a Petition for Alien Relative on behalf of Bjelovic. Jovcic filed, on behalf of Bjelovic, an Affidavit of Support. Bjelovic is also charged with using and possessing a Form I-512, Authorization for Parole of an Alien, that had been procured through marriage fraud and the concealment of prior arrest and conviction history. Specifically, he is charged with using such Authorization to enter the United States at the Miami International Airport in 2011 and to obtain a Florida driver license in 2012.

Jovcic, Likic and Bennett are charged with a conspiracy to commit marriage fraud and fraud and misuse of visas, permits and other documents in connection with a fake sham marriage between Likic and Bennett. According to the indictment, in September 2010, Bennett traveled from South Carolina to Florida and she and Likic signed a marriage license in Broward County. Subsequently, in January 2011, May 2011 and March 2011, Bennett filed a Petition for Alien Relation on behalf of Likic.

If convicted of the conspiracies set forth in the indictment, the defendants face a statutory maximum term of five years in prison and a fine of $250,000. If convicted of the possession and use of a passport or other document charge set forth in the indictment, defendants Bjelovic and Jovcic face a statutory maximum term of 10 years in prison and a fine of $250,000.

Mr. Ferrer commended the investigative efforts of ICE-HSI, DSS, IRS-CI and FBI. Mr. Ferrer would also like to thank the Broward Sheriff’s Office, Drug Enforcement Administration, Department of Commerce, and the U.S Attorneys’ Offices for the District of New Jersey and the Middle District of Florida for their assistance. The case is being prosecuted by Assistant U.S. Attorney Cynthia Stone.

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 Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, Scott J. Israel, Sheriff, Broward County Sheriff’s Office (BSO), and Addy Villanueva, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), announce the arrests of defendants Natalie Ladin, 61, and Jed Ladin, 65, both of Lauderdale-by-the-Sea, Florida. Natalie and Jed Ladin made their initial appearance in federal court on February 3, 2014 before U.S. Magistrate Judge Patrick Hunt in Fort Lauderdale. A pretrial detention hearing is scheduled for both defendants on Friday, February 7, 2014, at 10:30 a.m. before U.S. Magistrate Judge Hunt.

The criminal complaint, which was unsealed after the defendants’ arrest on January 31, 2014, charges Natalie and Jed Ladin with conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h); conspiracy to smuggle gold, in violation of Title 18, United States Code, Section 371; entry of goods by false statements, in violation of Title 18, United States Code, Section 542; and smuggling of gold, in violation of Title 18, United States Code, Section 545. If convicted, the defendants face a statutory maximum sentence of 20 years in prison.

According to the complaint, Natalie Jewelry, doing business as Golden Opportunities, smuggled Guatemalan scrap gold into the United States that was significantly undervalued: from January 2012 until November 2013, two Guatemalan companies sent gold with a declared value of $6,451,90, yet during that same period Natalie Jewelry wire transferred $24,317,665 to Guatemala for those imports. Natalie Ladin and Jed Ladin were the owners of Natalie Jewelry, located in Hallandale Beach, Florida.

Mr. Ferrer commended the investigative efforts of ICE-HSI, BSO and FDLE. This case is being prosecuted by Assistant U.S. Attorney Michael Thakur.

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

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

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, 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), Jeff Atwater, Florida Chief Financial Officer, Florida Department of Financial Services, and Dave Aronberg, State Attorney, Office of the State Attorney for Palm Beach County, announce that defendants Elias Sebastian Munguia, 41, clinic owner, of Miami, Aleida Capdevila, 62, clinic office manager, of West Palm Beach, Yenisleydi Ramos, 26, front desk receptionist and secretary, of West Palm Beach, Juan Francisco Avon, 62, licensed massage therapist, of Miami, Oscar Montiel Martinez, 34, staged accident participant, recruiter and check casher, of Lake Worth, and Teresita Mena, 52, staged accident participant and check casher, of West Palm Beach, were sentenced today by U.S. District Judge Kenneth A. Marra for their participation in an automobile insurance fraud scheme involving staged automobile accidents. Also announced today is the guilty plea of defendant Amaury Tomas Contino, 30, staged accident recruiter, of Lake Worth, for his involvement in said scheme.

Specifically, Elias Sebastian Munguia was sentenced to 102 months in prison, followed by three years of supervised release; Aleida Capdevila was sentenced to 53 months in prison, followed by three years of supervised release; Yenisleydi Ramos was sentenced to 50 months in prison, followed by three years of supervised release; Juan Francisco Avon was sentenced to 38 months in prison, followed by three years of supervised release; Oscar Montiel Martinez was sentenced to 76 months in prison, followed by three years of supervised release; and Teresita Mena was sentenced to 66 months in prison, followed by three years of supervised release. In addition, Munguia was ordered to pay $3,491,516.93 in restitution; Capdevila was ordered to pay restitution in the amount of $1,039,928.19; Ramos was ordered to pay restitution in the amount of $1,666,028.08; Avon was ordered to pay restitution in the amount of $866,801.60; Martinez was ordered to pay restitution in the amount of $1,359,208.73 and Mena was ordered to pay restitution in the amount of $1,321,459.87.

Each of the defendants previously pled guilty to one count of conspiring 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 multiple counts of mail fraud, in violation of Title 18, United States Code, Sections 1341 and 2. In addition, Munguia, Capdevila, Ramos, Martinez and Mena pled guilty to one count of conspiring 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). Mungia, Capdevila and Mena also pled guilty to multiple counts of money laundering, and Martinez pled guilty to one substantive count 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.

Amaury Tomas Contino pled guilty today to one count of conspiring 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 six counts of mail fraud, in violation of Title 18, United States Code, Sections 1341 and 2. Judge Marra will sentence Contino on April 18, 2014 at 3:00 p.m. in West Palm Beach. At sentencing, Contino faces a possible maximum statutory sentence of 20 years in prison for each count of conspiracy to commit mail fraud and substantive mail fraud, to be followed by up to three years of supervised release. Contino also will be ordered to pay restitution to the victims of his offenses.

According to court documents, between approximately October 2006 and December 2012, the conspiracy members staged automobile accidents by recruiting individuals to participate in the accidents. Oscar Montiel Martinez and Teresita Mena served as accident participants and Oscar Montiel Martinez and Amaury Tomas Contino recruited others to participate in staged accidents. The participants were referred to as “Perro” and “Perra” or “Macho” and “Hembra.” Thereafter, the clinic owners, including defendant Munguia, caused the submission of false insurance claims through chiropractic clinics that were controlled by members of the conspiracy. To execute the scheme, the true owners of the chiropractic clinics, including Munguia, 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 co-conspirators also hired complicit licensed chiropractors, and licensed chiropractic physicians’ assistants, including Juan Francisco Avon, 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. Elias Munguia was the “true owner” of three of those clinics. Munguia’s aunt, Aleida Capdevila, served as the office manager of two of the clinics.

Furthermore, according to court records, once fraud proceeds were received from the insurance companies, the clinic owners, including Munguia and Capdevila, also recruited individuals including Oscar Montiel Martinez, Yenisleydi Ramos, and Teresita Mena, to help the clinics launder the insurance proceeds.

Starting with Operation Sledgehammer I in June 2011 and including the defendants charged in Operation Sledgehammer VI, 92 defendants have been charged for their participation in this automobile insurance fraud scheme. Of those 92 defendants, 56 have been charged federally by the U.S. Attorney's Office, resulting in court-ordered restitution of more than $5 million to the defrauded insurance companies. Thirty-six defendants have been charged by the Palm Beach County State Attorney's Office.

Mr. Ferrer commended the efforts of the FBI, IRS-CI, the Florida Department 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. The federal cases are being prosecuted by Assistant U.S. Attorney A. Marie Villafaña and the state cases are being prosecuted by the Palm Beach County State Attorney's Office.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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 Michael Steinbach, Special Agent in Charge, Federal Bureau of Investigation announce the filing of a criminal complaint charging defendant Jose Emmanuel Torres, 37, of Cooper City, with federal bribery, in violation of 18 U.S.C. §201(b)(2)(A) and (B); 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; and, extortion under color of official right, in violation of 18 U.S.C. §1951.

Torres, who was arrested on Friday, made his initial appearance today before U.S. Magistrate Judge Patrick Hunt in Fort Lauderdale.

According to the criminal complaint, Torres is currently assigned as an Intelligence Specialist to the United States Marine Corps Forces, South, under the United States Southern Command. 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 had interviewed an individual 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. The individual had been periodically arrested on immigration violations. In August 2013, Torres told the individual that he had used his influence to have the individual arrested on immigration charges. In or about September 2013, Torres complained to the individual that he was having financial problems, and that he was not making enough money as a United States Marine. Torres asked the individual for $10,000. The individual understood that, if he did not give Torres the money, Torres could use his influence to have the individual arrested again. The individual then reported this matter to law enforcement and the FBI began recording text messages, telephone and Skype calls between Torres and the cooperating individual (the CI). 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, under the supervision of law enforcement agents, paid Torres $6,000 in order for Torres to use his influence to assist the CI with the CI’s immigration proceedings.

During the course of the relationship between Torres and the CI, Torres asked the CI if he had drug trafficking contacts in Costa Rica and Miami because he [Torres] was looking to conduct a robbery of a delivery of drug money or identify a stash house where drug money was stored. Initially, Torres told the CI that he [Torres] was willing to participate in the robbery and that he [Torres] has some trustworthy individuals to assist him with the robbery. Between November 2013 and January 2014, Torres communicated with the CI regarding the robbery by way of text, telephone, Skype and a “secret” email account used by Torres. Communications included Torres sending information that Torres had obtained from law enforcement databases regarding two individuals that the CI indicated would assist the CI in the robbery. Ultimately, under the direction of law enforcement agents, the CI told Torres that the CI had the opportunity to steal drug proceeds totaling $500,000 that was being transported in a car. The CI told Torres that the CI needed a law enforcement receipt so that the CI could represent to the owners of the purported drug money that the funds had been seized by law enforcement. On January 29, 2014, Torres provided the CI a detailed four-page DEA seizure form dated January 31, 2014, reflecting a bulk cash seizure by DEA agents in the amount of $500,000. The CI told Torres that he [Torres] would receive $250,000 from the money stolen from the drug dealers for providing the receipt. On January 31, 2014, the CI called Torres to tell him that the CI was in possession of the drug proceeds and they arranged a meeting for the purpose of providing Torres with his $250,000. On that same date, the CI and Torres met in a parking lot in Dania, Florida, and Torres was given a duffel bag which purportedly contained $250,000 of drug proceeds. Torres was arrested after taking possession of the duffel bag.

If convicted, Torres faces a statutory maximum term of 40 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.

A complaint 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), Steven Steinberg, Chief, Aventura Police Department, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Thomas Caul, Special Agent in Charge, U.S. Social Security Administration, Office of Inspector General (SSA-OIG), announce that defendant Oliver Gayle, 43, of Miami, was sentenced to 51 months in prison, followed by two years of supervised release for his participation in an identity theft tax refund scheme involving the theft of patient information.

On October 23, 2013, a federal jury found Oliver Gayle guilty of one count of possession of 15 or more unauthorized access devices, that is, debit cards and social security numbers of other persons with corresponding names and dates of birth, in violation of Title 18, United States Code, Sections 1029 (a)(3) and 2; three counts of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2; and one count of possessing, using and attempting to use a U.S. visa knowing it to be forged, counterfeited altered and falsely made, in violation of Title 18, United States Code, Section 1546 (a).

According to testimony and evidence presented at trial, on February 27, 2013, the Aventura Police Department stopped a vehicle driven by Gayle. During an inventory search of the vehicle driven by Gayle, officers uncovered a black bag containing over 100 printouts from Mt. Sinai Medical Center Account Inquiry Processor with multiple names, dates of birth, social security numbers, and addresses of patients on each printout. Additionally, photocopies of checks written to Mt. Sinai Medical Center from various individuals with a photocopy of the corresponding billing statement from Mt. Sinai were found in the bag.

According to court documents and trial testimony, during a consensual search of Gayle's residence, law enforcement found multiple printouts from Mt. Sinai Medical Center that appeared similar to the ones found in his black bag. Law enforcement also found copies of U.S. Treasury checks; a document labeled “HIT LIST” with a list of names, Social Security numbers and dates of birth; several tax returns in the names of other individuals; multiple Tax Act and Turbo Tax pre-paid debit cards issued in the names of other individuals; a Jamaican passport in Gayle's name containing a counterfeit U.S. visa; and, an identification badge for Mt. Sinai Medical Center with Gayle’s name and photo.

Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to the IRS-CI, Aventura Police Department, ICE-HSI and SSA-OIG. The case is being prosecuted by Assistant U.S. Attorneys Elina A. Rubin-Smith and Michael J. Garofola.

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 Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce the sentencing of Timothy B. Josselson, 49, and Kathryn A. Josselson, 42, both from Parma, Ohio, and Robert S. Lananna, 29, of Boynton Beach, Florida, for their participation in a $21 million investment fraud scheme.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce the sentencing of Timothy B. Josselson, 49, and Kathryn A. Josselson, 42, both from Parma, Ohio, and Robert S. Lananna, 29, of Boynton Beach, Florida, for their participation in a $21 million investment fraud scheme.

These three defendants pled guilty in November 2013 to separate Informations, each charging one count of conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 371. According to court documents, Timothy Josselson, Kathryn Josselson and Lananna conspired with each other and with other co-conspirators who were charged in a separate indictment. The indicted co-conspirators include James C. Howard, III, Patricia S. Saa, Louis N. Gallo, III, and Michael R. Casey.

According to court documents, the defendants conspired to defraud individuals who invested in Commodities Online LLC (COL). Timothy Josselson was the Chief Operating Officer, Katrhyn Josselson was the Comptroller, and Lananna was the Director of Sales. From approximately January 2010 through April 2011, the defendants used material false and fraudulent representations and material omissions to obtain over $21 million from over 700 investors. According to court documents, the investors lost over $18 million.

According to court documents, the defendants used COL to sell investments in purported transactions to buy and sell commodities. Among other things, the defendants represented to investors that COL had a track record of profits. However, COL did not have profits. Any payments made to investors were made using funds received from newer investors.

Also according to court documents, the defendants also made material misrepresentations and omissions about the leaders of COL. After mid-2010, the defendants represented that Howard, who was the founder of COL, was no longer President of COL. Defendant Casey, an attorney, was given the title of President of COL. However, Howard remained in charge.

Howard pled guilty and was sentenced on December 3, 2013 to 189 months in prison. A restitution hearing is set for February 24, 2014. The trial of Howard’s co-defendants is scheduled for March 10, 2014.

Mr. Ferrer commended the investigative efforts of the FBI. These cases are being prosecuted by Assistant U.S. Attorney Ana Maria Martinez.

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, U.S. Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce the filing of two Informations charging conspiracies to offer bribes, and to accept bribes, by persons associated with Jackson North Medical Center, a hospital and health care provider, which is part of Jackson Health System, popularly known in Miami-Dade County as Jackson Memorial Hospital, in violation of Title 18, United States Code, Sections 371 and 666(a)(1)(B).

The first of the two Informations charges Douglas Denton, 59, Cooper City, with conspiring with “V.S.” and “L.L.” to corruptly solicit, demand, accept, and agree to accept cash payments, intending that Denton would be influenced and rewarded in connection with transactions of Jackson Health System, involving at least $5,000, that is, vendor contracts to provide goods and services to Jackson Health System.

According to the Information, Denton was an employee at Jackson North Medical Center who solicited payments from the operators of a small business called Seico Construction Co., in return for awarding those operators contracts for construction jobs at Jackson North Medical Center. The Information identifies the operators of Seico as “V.S.” and “L.L.”. The Information further alleges that from 2010 through 2013 Denton received a total of $5000, in increments of $1,000, on five separate occasions from co-conspirators.

The second Information charges defendants Victor Seijas, 45, and Luis Ledesma, 50, both of Miami, with conspiring with “D.D.”, an employee of Jackson North Medical Center, to corruptly give, offer, and agree to give monetary payments, to an employee of Jackson North Medical Center, in connection with transactions of Jackson North Medical Center and Jackson Health Systems, involving more than $5,000. The Information alleges that the monetary payments were made by Seijas and Ledesma in order to obtain construction contracts at Jackson North Medical Center. The Information further alleges that Seijas and Ledesma operated a small business called Seico Construction Co. that obtained construction contracts from conspirator “D.D.” for construction jobs at Jackson North Medical Center in the time period 2010 through 2013.

The defendants are expected to make their initial appearances today, January 31, 2014, at 1:30 p.m. before U.S. Magistrate Judge Jonathan Goodman. If convicted, the defendants face a maximum sentence of five years in prison on the one count of conspiracy against each of them. They also face possible $250,000 fine, and payment of restitution.

Mr. Ferrer commended the investigative efforts of the FBI. This case is being prosecuted by Senior Litigation Counsel Michael P. Sullivan.

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.

Three Miami residents have been indicted for their alleged participation in a $190 million Medicare fraud scheme.

U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement after the indictment was unsealed.

On Jan. 28, 2014, a federal grand jury in Miami returned a 10-count indictment charging Nelson Rojas, 43, Roger Bergman, 64, and Rodolfo Santaya, 54, for allegedly participating in a scheme to defraud Medicare by submitting false and fraudulent claims, from approximately December 2002 to October 2010.

Rojas was charged with conspiracy to pay and receive bribes and kickbacks in connection with a federal health care program, conspiracy to commit money laundering, two counts of money laundering and one count of aggravated identity theft. Bergman and Santaya were each charged with conspiracy to commit health care fraud and wire fraud. In addition, Bergman was charged with conspiracy to make false statements relating to health care matters. Santaya was also charged with conspiracy to pay and receive bribes and kickbacks in connection with a federal health care program, as well as two counts of receiving bribes and kickbacks in connection with a federal health care benefit program.

According to the indictment, Rojas, Bergman and Santaya allegedly participated in a scheme orchestrated by the owners and operators of American Therapeutic Corporation (ATC) and its management company, Medlink Professional Management Group Inc. ATC and Medlink were Florida corporations headquartered in Miami. ATC operated purported partial hospitalization programs (PHPs), a form of intensive treatment for severe mental illness, in seven different locations throughout South Florida. Both corporations have been defunct since October 2010.

The indictment alleges that Bergman was a licensed physician’s assistant who participated in the scheme by, among other things, admitting Medicare beneficiaries to ATC facilities for PHP treatment even though they did not quality for such treatment and falsifying patient records to make it appear as though patients needed, qualified for and actually received legitimate PHP treatment when they did not. The indictment alleges that Santaya served as a patient recruiter who provided ineligible patients to ATC in exchange for kickbacks. The indictment alleges that Rojas was the co-owner of a check cashing business and that he facilitated the payments of bribes and kickbacks from ATC to various patient recruiters.

ATC, Medlink and various owners, managers, doctors, therapists, patient brokers and marketers of ATC and Medlink have pleaded guilty or have been convicted at trial. In September 2011, ATC owner Lawrence Duran was sentenced to 50 years in prison for his role in orchestrating and executing the scheme to defraud Medicare.

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

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

Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,700 defendants who collectively have falsely billed the Medicare program for more than $5.5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Thomas Caul, Special Agent in Charge, Social Security Administration (SSA), Office of Inspector General, Michael B. Steinbach, 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 defendant Daniel Jean Charles, 31, of Miami, was sentenced yesterday to 57 months in prison, followed by three years of supervised release.

Charles pled guilty to one count of conspiracy to commit access device fraud, in violation of Title 18, United States Code, Section 1029, and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.

Co-conspirator Wesley Compere, 31, of Miami, previously pled guilty to one count of conspiracy to commit access device fraud, in violation of Title 18, United States Code, Section 1029, and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A, in a separate case. Compere was sentenced to 70 months in prison, followed by three years of supervised release.

According to court documents, Charles and Compere used stolen identities to file fraudulent Social Security Retirement Income Benefit (RIB) and fraudulent income tax refund claims. The scheme involved the payment of $111,002.10 in fraudulent RIB claims and $128,431.80 in fraudulent tax refund claims.

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

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Manuel Orosa, Chief, City of Miami Police Department, announce that Vital Frederick, 27, a former City of Miami Police Officer, was sentenced to 81 months in prison, three years of supervised release, fined $16,806.33 and ordered to pay forfeiture in the amount of $1,200.

Vital was previously convicted after a five day trial before U.S. District Judge K. Michael Moore. The jury returned a guilty verdict on all seven counts in the indictment, including four counts of interference with commerce by extortion, one count of access device fraud, and two counts of aggravated identity theft. The defendant provided protection and security for an illegal check cashing scheme and exploited the Police databases to steal identities and sell the identifiers believing they were to be used to commit tax fraud.

U.S. Attorney Wifredo A. Ferrer stated, “There is no compromise when it comes to corruption. It has to be sought out and defeated. As a sworn police officer, Vital Frederick, pledged to protect the public. Instead, he abused that trust to victimize those he swore to protect. The Federal Bureau of Investigation Public Corruption Task Force and this office are committed to rooting out public corruption at all levels. This case is a reminder that no one is above the law.”

“Law enforcement officers have a great responsibility to the public and therefore must be held to a higher standard of integrity,” said Michael B. Steinbach, Special Agent in Charge, FBI Miami. “The FBI’s Miami Area Corruption Task Force was assembled and designed to ensure that these high standards are met and maintained.”

FBI Public Corruption Task Force and the City of Miami Internal Affairs Section initiated an investigation on former Officer Frederick after receiving a report of Frederick’s suspicious activity while on duty. On four separate occasions, between August 2012 and September 2012, Frederick provided protection for a courier who he believed was cashing fraudulent government checks at the check cashing store. He did so, while in full uniform and while driving his marked City of Miami Police Department vehicle. Frederick, in an effort to further facilitate the criminal activity, escorted the courier away from the check cashing store to give the courier safe passage. In exchange for providing security of the courier, who was purportedly cashing fraudulent government checks at the check cashing store, Frederick took receipt of approximately $800 cash.

In October 2012, Frederick sold the personal identifiers of 52 individuals to a second cooperating source after accessing City of Miami Police Department databases. During the investigation, City of Miami Police Department Internal Affairs Unit covertly monitored Frederick’s Police issued laptop and found that he conducted searches of the victims whose identities he was selling.

Mr. Ferrer commended the investigative efforts of the FBI and the City of Miami Police Department. This case is being prosecuted by Assistant U.S. Attorneys Robin Waugh and Michael Davis.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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), Miami Field Office, announce today that after a two week trial before U.S. District Judge K. Michael Moore, a federal jury in Miami convicted Lourdes Margarita Garcia, 62, of Pinecrest, a medical doctor, of conspiracy to defraud and to file false returns with the IRS, and of three counts of filing false returns with the IRS. Sentencing is scheduled for April 10, 2014 at 2:00 p.m.

According to the superseding indictment, Garcia was the owner and operator of Global Medical Group, LLC, a Sub-S Corporation, or “flow through” entity for income tax purposes, which operated a medical clinic in Coral Gables, and previously in Miami. The evidence presented at trial showed that Garcia, a physician assistant at the time the false tax returns were filed in 2007 and 2008, had originally been the subject of an IRS collection action for multiple years of back-taxes owed. During the collection case, the IRS learned that Garcia and her now deceased spouse were delinquent in filing income tax returns for the years 1997 through 2005. When those returns were filed in August 2007, under penalties of perjury, the 1997 and 2001 through 2005 returns reported $0.00 adjusted gross income, and a 2006 amended return also filed in August 2007, reported less than $20,000 of adjusted gross income.

According to the evidence presented at trial, during a 1997 Chapter 11 bankruptcy case, Garcia filed sworn monthly reports with the Bankruptcy Court reporting $81,000 of salaries and commissions for the months of May 1997 through October 1997. Additionally, during 2001 through 2007, Global Medical Group had steadily increased its revenues from insurance payments and patient fees, from approximately $81,000 in 2001, to approximately $1.9 million in 2006 and $1.7 in 2007, but no flow-through income from Global was reported on the 2001 through 2005 individual returns of Garcia and her spouse. Their 2006 and 2007 returns omitted approximately $400,000 of insurance payments and patient fees from Global. The evidence at trial also showed that in 2007, Garcia and her spouse purchased an approximately $2 million residence in Pinecrest, despite the $0.00 adjusted gross income reported in the 1997, and 2001 through 2005 returns, and the less than $20,000 and $30,000 of adjusted gross income reported in the 2006 and 2007 returns, respectively. Further, the evidence presented at trial showed that Garcia and her spouse conspired to defraud the IRS, by impairing, obstructing and defeating its lawful functions in the ascertainment, computation and collection of federal income taxes, including by withdrawing approximately $900,000 from bank accounts, only days before an IRS Notice of Levy attached to the accounts.

At sentencing, Garcia faces up to fourteen years in prison on the four counts of conviction.

Mr. Ferrer commended the investigative efforts of IRS-CI. The case was prosecuted by Assistant U.S. Attorneys Jose A. Bonau and Andy R. Camacho.

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 County Sheriff’s Office, announce today the conviction of Camilla Gonzalez, 29, and Patricia Alcime, 29, both of Lauderhill, FL, after a two day jury trial, in connection with 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 numerous fraudulent tax refunds by the IRS.

Specifically, 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. 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. Sentencing has been scheduled for April 9, 2014 at 1:30 p.m. before U.S. District Judge William P. Dimitrouleas in Ft. Lauderdale.

At sentencing, Gonzalez and Alcime each face a maximum statutory sentence of up to ten years in prison on each of the theft of public money and conspiracy to commit false claim counts, and a mandatory consecutive two years in prison on the aggravated identity theft counts. The defendants will also forfeit $511,801.28 in U.S. currency that had been frozen by SunTrust Bank.

As alleged in the Indictment and in-court statements, and thereafter proven in court, between January 15, 2011 and continuing until on or about October 20, 2011, Camilla Gonzalez and Patricia 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 enrich themselves, by obtaining and utilizing stolen means of identification to file false and fraudulent federal income tax returns 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 claiming refunds to which they were not entitled from the IRS. Defendants 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, Camilla Gonzalez and Patricia 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 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.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Danny Banks, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), announce today that defendant Paul Elvidge, 53, of Port St. Lucie, FL, pled guilty to wire fraud and aggravated identity theft for embezzling more than $1,000,000 from client investment accounts while acting as a securities broker for Cape Securities, Inc. and Seacoast Investor Services, Inc.

Elvidge pled guilty before U.S. District Judge Jose E. Martinez to eight counts 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. Elvidge faces a maximum statutory sentence of up to twenty years in prison on each of the wire fraud counts, and a consecutive penalty of two years in prison on the aggravated identity theft count.

According to court pleadings, Elvidge managed and operated Seacoast Investor Services, which later was purchased by Cape Securities, as a brokerage and investment firm in Port St. Lucie. As a registered representative and stockbroker, Elvidge had access to clients’ brokerage accounts and was able to direct wire transfers from these brokerage accounts. From July 2010 to October 2012, Elvidge Jr. embezzled approximately $1,113,594 from client accounts by preparing fraudulent forms and forging account holders’ signatures. Elvidge Jr. used the fraudulently obtained monies to pay for personal and business expenses, and to fund his personal day-trading activities.

Mr. Ferrer commended the investigative efforts of the FBI and FDLE. This case is being prosecuted by Assistant U.S. Attorney Shaniek Maynard.

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 Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Pasquale Pappalardo, 60, of Coral Springs, FL, was sentenced today to 20 years in prison, three years of supervised release, ordered to pay restitution in the amount of $1,061,401 and forfeiture of $3,500,000. Pappalardo was previously convicted in November 2013 in federal court in Fort Lauderdale of conspiracy to commit mail fraud and wire fraud, in violation of Title 18, United States Code, Section 1349, and conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956. Co-defendant Audwin Lovinsky, 35, of Tamarac, FL, was also sentenced today to 33 months in prison, three years of supervised release, and ordered to pay restitution in the amount of $34,635. Lovinsky was previously convicted of conspiracy to commit mail fraud and wire fraud, in violation of Title 18, United States Code, Section 1349.

In all, 41 defendants were charged for their involvement with a time-share resale telemarketing room called Timeshare Mega Media and Marketing Group, Inc., (TMMMG). The other defendants were charged in Case Nos. 11-60190-Cr-Cohn, 11-60247-Cr-Marra, 11-60268-Cr-Hurley, 12-60019-Cr-Scola, 13-60049-Cr-Dimitrouleas, 12-60149-Cr-Scola, 13-60154-Cr-Scola, and 13-60155-Cr-Dimitrouleas. Aside from the two defendants who were sentenced today, thirty-seven defendants previously pled guilty, one is awaiting trial, and one is deceased.

According to the evidence presented at trial, in February 2009, Pasquale Pappalardo, also known to the witnesses as “Patsy U’ Patso” and “Posh,” and Joseph Crapella, also known to witnesses as “Joey Cigars,” started a branch office of Time Share Market Pro (TMP), a time-share resale business. The testimony at trial was that they knew each other from a previous stint in federal prison. In June 2009, at the direction of Pappalardo and Crapella, their associates took customer files and the electronic database of TMP, among other items, without the knowledge of the owner of TMP.

Pappalardo and Crapella then took the employees and the documents seized from TMP and formed a second time share resale company called TMMMG. In November 2009 and January 2010, TMMMG hired salesmen who worked for other fraudulent telemarketing resale companies, including defendant Lovinsky, who used the phone name of Edwin Lovins. Among the lies they would tell timeshare unit owners, was that they had sold their time-share unit and that they needed to pay a refundable fee to secure the sale. The salesmen would then ask the time share unit owners for a fee of at least $1,996, and as much as $10,000. At no time were there any buyers for the time-share units. The testimony at trial was that both Pappalardo and Crapella were told about the lies being told by the salesman, but Pappalardo and Crapella would not do anything to stop the salespeople from lying.

During the 10 months that TMMMG was in business, it fraudulently obtained approximately $5,000,000 from about 3,000 customers. Pappalardo received at least $300,000 in checks and hundreds of thousands of dollars in cash from the money sent by victims of TMMMG.

Mr. Ferrer commended the investigative efforts of the FBI. Mr. Ferrer would also like to recognize the assistance provided by the Fort Lauderdale Police Department, the Federal Trade Commission and the Broward Sheriff’s Office. 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.