Southern District of Florida

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Dave Aronberg, State Attorney, Office of the State Attorney for Palm Beach County, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Jeffrey S. Katz, Chief, Boynton Beach Police Department (BBPD), announce that Stephen Anthony Paulsen, 54, of Fort Worth, Texas, was convicted yesterday of attempting to entice a minor to engage in an illegal sexual activity, after a four day jury trial before U.S. Senior District Judge Daniel T.K. Hurley. At sentencing, the defendant faces a 10 year mandatory term in prison and a maximum term of life.

In July 2013, Paulsen sent numerous sexually explicit messages via a web-based social media application to an undercover officer who posed as 15 year old boy. Paulsen then attempted to meet the minor to engage in illegal sexual activity when Paulsen believed the boy was home alone, at which point he was arrested. At the time of his arrest, Paulsen was in South Florida visiting family.

U.S. Attorney Wifredo A. Ferrer stated, “This conviction represents the fruits of a cooperative effort by local, state and federal authorities in the investigation and prosecution of child exploitation cases. During this time when our children are at ever increasing risk from predators who use social media and the internet, I am thankful to Dave Aronberg and the Palm Beach State Attorney’s Office for joining forces in the cross designation of state prosecutors to attack the problem.”

State Attorney Dave Aronberg commented, “This case is an example of our continued close working relationship with local, state and federal authorities. This combined effort will help remove these sexual predators from our community and make our county and state a safer place to live.”

“Homeland Security Investigations is committed to stopping child predators and their elicit behaviors, especially those individuals in positions of trust with access to children” said Alysa D. Erichs, Special Agent in Charge of HSI Miami. “This case is another example of the extraordinary collaborative efforts among law enforcement in Florida to protect those who can’t protect themselves”.

Chief Jeffrey Katz of the Boynton Beach Police Department added, “One of the primary objectives of the Boynton Beach Police Department is the protection of our community's youth. The Boynton Beach Police Department - in cooperation with our valued federal law enforcement and prosecutorial partners - have taken important steps to protect our children from those who seek to shamelessly exploit their innocence. We remain committed to similar operations going forward.”

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

Mr. Ferrer and Mr. Aronberg commended the investigative efforts of ICE-HSI and the Boynton Beach Police Department. This case was adopted from state prosecution in cooperation with the Palm Beach County State Attorney’s Office and the South Florida Internet Crimes Against Children (ICAC) Task Force. This case is being prosecuted by Assistant U.S. Attorney Adam McMichael and Special Assistant U.S. Attorney and Assistant State Attorney Gregory Schiller.

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.

With public participation at an all-time high after six prior events in three years, the Drug Enforcement Administration (DEA) and its national, tribal, and community partners will hold a seventh National Prescription Drug Take Back Day at thousands of sites across America on Saturday the 26th. These Take Back Days give the public the opportunity to prevent pill abuse and theft by ridding their homes of potentially dangerous expired, unused, or unwanted prescription drugs. Collection sites are open 10 a.m. to 2 p.m. local time. The service is free and anonymous, no questions asked.

Prescription drugs that languish in medicine cabinets create a public health and safety concern because they are highly susceptible to diversion, misuse, and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high; almost twice as many Americans (6.8 million) currently abuse prescription drugs than the number of those abusing cocaine, hallucinogens, heroin, and inhalants combined, according to the 2012 National Survey on Drug Use and Health. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet.

Floridians participating in DEA’s six previous Take-Back Days turned in nearly 45 tons—of prescription drugs, and had a record setting event this past April collecting over 13 tons of expired or unwanted medication at more than 229 sites operated by over 160 of DEA’s law enforcement partners.

U.S. Attorney Wifredo A. Ferrer stated, “I encourage everyone to take advantage of the Drug Enforcement Administration’s Prescription Drug Take-Back Day on October 26. At a time when prescription drug abuse is causing more deaths than illicit drugs, this is a tremendous opportunity to safely dispose and rid your homes of expired, unused or unwanted prescription drugs, and the possible misuse or abuse of these drugs.”

DEA Special Agent in Charge Mark R. Trouville stated, “I applaud all Floridians who have participated in these Take-Back events. Their actions have reflected a strong commitment to protecting their families and the community. The DEA will continue to collaborate with our law enforcement partners to host these public safety events to greatly reduce the misuse and abuse of prescription drugs.”

The public can find a nearby collection site by visiting www.dea.gov, clicking on the “Got Drugs?” icon, and following the links to a database where they can enter their zip code. Or they can call 1-800-882-9539.

DEA is in the process of drafting regulations to implement the Secure and Responsible Drug Disposal Act of 2010, which amends the Controlled Substances Act to allow an “ultimate user” (the patient or patient’s caregiver, including the owners of animals being treated by veterinarians) of controlled substance medications to dispose of them by delivering them to entities authorized by the Attorney General to accept them. The Act also allows the Attorney General to authorize long term care facilities to dispose of their residents’ controlled substances in certain instances.

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 defendant Bhardwaaj “Deo” Seecharan, 53, of Orange County, was sentenced yesterday for his participation in an extensive mortgage fraud scheme. The defendant was sentenced by U.S. District Judge Jose E. Martinez to 60 months in prison, followed by five years of supervised release. In addition, Bhardwaaj Seecharan was ordered to pay $2,040,343.14 in restitution to the victim banks.

Bhardwaaj Seecharan previously pled guilty to conspiracy to commit bank fraud involving $3.5 million in diverted real estate escrow funds, in violation of Title 18, United States Code, Sections 1349 and 1344.

According to statements made in court and publicly filed documents in the case, on December 9, 2010, Bhardwaaj Seecharan, his wife Gergawattie “Kamla” Seecharan, and two others were indicted on bank fraud, conspiracy, money laundering and related mortgage fraud charges. According to the charges, the Seecharans, along with their two co-defendants, conspired to solicit mainly Guyanese residents of Florida and other states to act as straw buyers on fraudulent applications for more than $50 million worth of mortgage loans in connection with the purchase of more than 150 homes in Indian River County, Miami-Dade County, and elsewhere. Approximately 80 individuals served as straw buyers of properties in Vero Lake Estates (VLE), in Indian River County, and other developments. This scheme resulted in the issuance of more than $50 million in fraudulent mortgage loans. The proceeds were then used to buy more properties, sustain the deception, service preexisting mortgage loans in the scheme, and pay kickbacks to the straw buyers.

In addition, Kamla Seecharan and codefendant Linda Rovetto unlawfully diverted more than $3.5 million in mortgage loans from real estate closing escrow accounts to Raviworld New Homes, Inc., a company managed by Kamla Seecharan’s husband and codefendant Bhardwaaj Seecharan.

Linda Rovetto was sentenced on August 21, 2012, by Judge Martinez to 42 months in prison for her part in the bank fraud. Kamla Seecharan was sentenced on September 25, 2012, to 121 months in prison.

Mr. Ferrer commended the investigative efforts of the FBI. Mr. Ferrer also thanked the State of Florida Office of Financial Regulation, Bureau of Finance, West Palm Beach Regional Office for their work on this investigation. 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, Michael J. De Palma, Acting 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 convicted in an identity theft tax refund scheme involving the theft of patient information.

Specifically, Oliver Gayle was found 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 after being alerted by a U.S. bank of an individual who attempted to cash a fraudulent check. Gayle presented a Jamaican passport as his form of identification. 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.

Sentencing is scheduled for January 9, 2014 at 10:00 a.m. before U.S. District Judge Donald L. Graham. At sentencing, Gayle faces up to 10 years in prison on the access device fraud count, to be served consecutively by two years in prison for each count of aggravated identity theft, and a maximum of 10 years in prison on the fraud and misuse of visas, permits and other documents count.

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, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, William D. Snyder, Sheriff, Martin County Sheriff’s Office (MCSO), John A. Bolduc, Chief, Port St. Lucie Police Department (PSLPD), announce the sentencing of Antione Elie Sparks, 41, and Jon Scott Merritt, 44, both of Port St. Lucie. Sparks and Merritt were each sentenced by U.S. District Judge Jose E. Martinez to a total of ten years in prison, followed by four years of supervised release. Sparks and Merritt also forfeited cash and a cache of weapons.

Sparks and Merritt had previously pled guilty to conspiracy to manufacture and possess with intent to distribute 100 or more plants of marijuana, in violation of Title 21, United States Code, Sections 846, 841(a)(1) and (b)(1)(B), and possessing a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(ii).

According to the criminal complaints, MCSO deputies conducted a traffic stop of Antione Elie Sparks for speeding. During the traffic stop, a MCSO narcotics K-9 alerted for the presence of drugs. As a result, deputies conducted a search of the vehicle, and located approximately 120 grams of packaged marijuana. An inventory of the vehicle yielded Florida Power and Light bills for a residence in Port St. Lucie, as well as receipts from a hydroponics store for soil, nursery pots, LED lights, cloning gel and light bulbs, as well as receipts for several warehouse unit rentals in St. Lucie West. Deputies also recovered $3,900 during their inventory of the vehicle. Sparks admitted that there was additional marijuana and small marijuana plants growing at the residence.

Upon execution of the search warrant at the residence, detectives found loose marijuana and several plants, drug paraphernalia, a number of firearms and ammunition, including three pistols, three shotguns, two rifles and multiple magazines containing multiple rounds of ammunition and over $7,000 in U.S. currency.

Upon further investigation and execution of the search warrant at the storage units, detectives found a pistol, an AK-47 style rifle, an assault rifle, and a fully assembled Sig Sauer pistol with an obliterated serial number. In addition, detectives found a number of unassembled firearms, including several AK-47 kits, a shotgun, and revolvers.

Detectives also found approximately 380 grams of marijuana and three rooms that had been converted into marijuana grow rooms. Each grow room contained high intensity lighting, water irrigation systems, fans and climate control systems, timers, air filters, plastic buckets and marijuana plants with root systems. Detectives counted a total of 150 marijuana plants with root systems. PSLPD recovered multiple latent prints and partials from the grow equipment. A match was made between a recovered latent print and Jon Scott Merritt. Merritt was subsequently arrested at his residence where ATF agents found additional AK-47 type rifles and parts.

Mr. Ferrer commended the investigative efforts of ATF, the Martin County Sheriff’s Office and the Port St. Lucie Police Department. The case was prosecuted by Assistant U.S. Attorney Carmen Lineberger.

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce the arrest of Hershel F. Smith, Jr., 80, of Ponte Vedra, Florida. Smith is charged with devising a scheme to defraud a charity from 2005 to 2012. The indictment charges nine counts of wire fraud, in violation of Title 18, United States Code, Section 1343. Smith made his initial appearance yesterday before U.S. Magistrate Judge John O’Sullivan.

According to the indictment, Smith was the Treasurer of Malta Projects of Southeastern Florida, Inc., (Malta Projects), a nonprofit corporation associated with the Order of Malta, a lay religious order of the Roman Catholic Church. Among other things, the Order of Malta and its associated organizations administer and fund charitable activities to serve the sick and the poor.

According to the indictment, Smith devised a scheme to unlawfully enrich himself by making material omissions and materially false and fraudulent representations regarding monies Smith withdrew from the Malta Projects bank account for his own benefit and for unauthorized purposes. Smith was an authorized signer of the Malta Projects bank account and also received the bank statements. According to the indictment, from December 2, 2005 through September 18, 2012, Smith withdrew money, through interstate wire transfers, interstate electronic payments and other means, from the Malta Projects bank account for purposes unrelated to Malta Projects and for his personal benefit. Smith concealed his conduct by providing false financial summaries to Malta Projects as well as to the Order of Malta, American Association (American Association). Smith also submitted altered bank statements to the American Association.

If convicted, Smith faces a maximum sentence of 20 years in prison on each count.

Mr. Ferrer commended the investigative efforts of the FBI. This case is being prosecuted by Assistant U.S. Attorney Ana Maria Martinez.

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

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and Deryl Loar, Sheriff, Indian River County Sheriff’s Office, announce the sentencing of Omar Edgar Outten, 30, of Vero Beach, Florida. Outten was sentenced by U.S. District Court Judge Jose E. Martinez to 75 months in prison, followed by three years of supervised release.

The three count indictment, to which Outten pleaded guilty on August 5, 2013, charged him with possessing with intent to distribute a controlled substance - Methylone, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(C), possessing a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(ii), and possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922(g)(1).

According to the criminal complaint filed on June 25, 2013, on March 25, 2013, Indian River County Sheriff’s Office (IRCSO) detectives executed a state search warrant at the defendant’s home. During the search, IRCSO detectives found and confiscated 132 capsules filled with methylone, multiple empty pill capsules, $1,225.00, a Bersa model Thunder 380, .380 caliber pistol loaded with eight rounds of ammunition, a 12 gauge Mossberg shotgun model 835 Ulti-Mag that had the butt stock removed from the firearm, 50 rounds of .380 caliber ammunition, and eight 12 gauge shotgun shells. In addition, IRCSO detectives seized approximately nine grams of marijuana.

Mr. Ferrer commended the investigative efforts of ATF and the Indian River County Sheriff’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.

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, Michael J. DePalma, Acting 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 Wilfredo Sauceda, 33, of West Palm Beach, and Nelson Felix Martinez Torres, 47, also of West Palm Beach, were sentenced today by United States District Judge Kenneth A. Marra for their participation in an automobile insurance fraud scheme involving staged automobile accidents. Wilfredo Sauceda was sentenced to 40 months of incarceration, followed by three years of supervised release and ordered to pay restitution in the amount of $643,964.09; Nelson Felix Martinez Torres was sentenced to 70 months of incarceration, followed by three years of supervised release and ordered to pay restitution in the amount of $1,359,208.73.

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; multiple counts of mail fraud, in violation of Title 18, United States Code, Sections 1341 and 2; 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); and multiple counts of money laundering, in violation of Title 18, United States Code, Sections 1956(a)(1)(A)(i), 1956(a)(1)(B)(i), 1956(a)(1)(B)(ii), and 2.

On September 30, 2013, Maria Testa Baceiro, a/k/a "Maria Testa," 29, of Miami, Olinda Rodriguez, 39, of West Palm Beach, and Yeisy Chouza, 31, of Miami, were sentenced by United States District Judge Kenneth A. Marra for their participation in the same scheme. Maria Testa Baceira was sentenced to 72 months of incarceration, followed by two years of supervised release and ordered to pay restitution in the amount of $4,232,248.04; Olinda Rodriguez was sentenced to 50 months of incarceration, followed by two years of supervised release and ordered to pay restitution in the amount of $1,447,139.23; and Yeisy Chouza was sentenced to 40 months of incarceration, followed by two years of supervised release and ordered to pay restitution in the amount of $558,261.55. On October 8, 2013, Iris Roca, of Davie, was sentenced by United States District Judge Daniel T.K. Hurley for her participation in the same scheme. Iris Roca was sentenced to 50 months of incarceration, followed by three years of supervised release and ordered to pay restitution in the amount of $1,135,577.23.

According to court documents, between approximately October 2006 and December 2012, the members of the conspiracy staged automobile accidents and thereafter caused the submission of false insurance claims through chiropractic clinics they controlled. To execute the scheme, Maria Testa Baceiro, one of the true owners of some of the chiropractic clinics involved in this scheme, and others, recruited individuals who had the medical or chiropractic licenses required by the State of Florida to open a clinic to act as "nominee owners" of the clinics. The defendants also recruited individuals, including defendants Yeisy Chouza, Wilfredo Sauceda, and Nelson Felix Martinez Torres, whom they referred to as "Perros" and "Perras" depending on their roles in the accidents, to participate in the staged accidents, and others to help the clinics launder the insurance proceeds. The defendants also hired complicit chiropractors and therapists, including licensed massage therapists Olinda Rodriguez and Iris Roca, 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. Defendants Yeisy Chouza, Wilfredo Sauceda, and Nelson Felix Martinez Torres also worked cashing checks for various chiropractic clinics. Twenty-one clinics participated in this scheme.

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 B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Hernandez Banks, 23, of Palm Beach, was convicted yesterday on all three counts of receipt, distribution and possession of child pornography, after a six day trial before U.S. District Judge Kenneth A. Marra.

This case stemmed from an undercover investigation into child pornography distributers who use LimeWire, a peer to peer software application. In August 2011, FBI-Houston conducted and undercover investigation that identified Banks transmitting child pornography from his West Palm Beach home using LimeWire. The FBI-West Palm Beach seized two computers from Banks’ home. The FBI analyzed the computers at their laboratory and discovered over 100 videos and images of child pornography.

Banks faces a mandatory minimum term of five years and up to a maximum term of twenty years in prison on the receipt and distribution counts. Banks faces a maximum term of ten years in prison on the possession count. Sentencing is scheduled for January 27, 2014 before U.S. District Judge Kenneth A. Marra in West Palm Beach, Florida.

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

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

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announced that defendants Eddy Marin, 50, and Patrick Daoud, 54, pled guilty today before U.S. District Judge Kenneth A. Marra to charges related to obstruction of justice. Marin pled guilty to conspiracy to obstruct justice, in violation of Title 18, United States Code, Section 1512(k). Daoud pled guilty to obstruction of justice, in violation of Title 18, United States Code, Section 1512(c). Sentencing has been scheduled for February 3, 2014 for both men.

According to the documents filed with the court, former Ft. Lauderdale attorney Scott W. Rothstein, who was the Chief Executive Officer and Chairman of the law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA), used the funds obtained from the operation of a Ponzi scheme to purchase tens of millions of dollars of real estate, vehicles, vessels, business interests, luxury watches, jewelry and sports memorabilia for himself, his wife, Kimberly Rothstein, and others. As part of his plea agreement, Scott W. Rothstein agreed to forfeit to the government all assets acquired with funds derived through the aforesaid Ponzi scheme. On November 9, 2009, agents of the Internal Revenue Service, Criminal Investigation, went to the Rothstein residence, where Kimberly Rothstein assisted the agents in retrieving what was believed to be all of the available cash, jewelry and luxury watches which had previously been purchased by Scott W. Rothstein with proceeds derived from the Ponzi scheme. However, according to court documents, before, during and after the aforesaid seizure by federal agents on November 9, 2009, Kimberly Rothstein, Stacie Weisman, and attorney Scott F. Saidel knowingly took action to conceal certain items of jewelry, valued in excess of one million dollars, for the purpose of preventing the government from exercising its authority to take such property into its lawful custody and control. Thereafter, Kimberly Rothstein and Stacie Weisman sold and attempted to sell a portion of this jewelry to and through various persons, including Eddy Marin and Patrick Daoud.

The documents further allege that, in connection with civil proceedings instituted by the Trustee in bankruptcy for RRA, both defendants took steps to obstruct justice by concealing the true location of certain items of jewelry in order to prevent its availability for use in the bankruptcy proceedings. It is further alleged that, as part of their obstructive conduct, Marin and Daoud committed perjury during depositions in connection with the bankruptcy proceedings.

Mr. Ferrer commended the investigative efforts of IRS-CI and the FBI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence LaVecchio, Jeffrey Kaplan, Paul Schwartz and Evelyn 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, Michael P. Stephens, Acting Inspector General, Federal Housing Finance Agency, Office of Inspector General, and Drew J. Breakspear, Commissioner, Florida Office of Financial Regulation, announced the sentencing of Patrick J. Mansell, 68, of Boca Raton, FL, Vice President of Coastal States Mortgage Corporation (Coastal). Mansell was sentenced to a statutory maximum penalty of five years in prison, followed by three years of supervised release by U.S. District Judge Robin S. Rosenbaum. Mansell previously pled guilty to conspiracy to commit wire fraud to defraud government sponsored entities, Fannie Mae and Freddie Mac.

According to the Information, from April 2007 through November 2008, in the Southern District of Florida, Coastal was a licensed mortgage brokerage whose primary business was the selling and servicing of mortgage loans for both Freddie Mac and Fannie Mae. At the change of plea hearing, Mansell admitted that Coastal failed to remit some of the mortgage loan payoffs it received and processed from borrowers to Freddie Mac and Fannie Mae, as required by the contractual agreement entered into between them. This resulted in an $18,735,903.77 loss to Freddie Mac and Fannie Mae. The misappropriation was concealed by the regular submission of false financial reports and monthly mortgage payments by Coastal, via an interstate internet portal, to Freddie Mac and Fannie Mae. These monthly mortgage payments by Coastal misled the lenders into believing the loans were still performing.

Mr. Ferrer commended the investigative efforts of the Federal Housing Finance Agency, Office of the Inspector General and Florida’s Office of Financial Regulation. The case was 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, and Michael P. Stephens, Acting Inspector General, Federal Housing Finance Agency, Office of Inspector General, announced the sentencing of defendant Quelyory A. Rigal, 38, of Homestead, to 200 months in prison, followed by five years of supervised release by U.S. District Judge William J. Zloch.

Rigal was indicted with seven other defendants in Case No. 12-60088-CR-Zloch for fraudulently obtaining mortgages for the purchase of condominium units at Marina Oaks Condominiums in Fort Lauderdale, FL. The indictment charged defendant Rigal with conspiracy to commit wire fraud and mail fraud, as well as substantive counts of wire fraud and mail fraud. Defendant Rigal was found guilty on all counts charged in the indictment.

The other defendants were: Juan Carlos Sanchez, of New York, N.Y., Sandra P. Campo, of Colombia, Osbelia Lazardi, of Southwest Ranches, FL, Dayanara Montero, of Miramar, FL, Edward R. Mena, of Miami, FL, Celeste Mota, of Fort Myers, FL, and David Arboleda, of Doral, FL. With the exception of Rigal who proceeded to trial, all other defendants plead guilty to conspiracy to commit mail and wire fraud. Defendant Sanchez was sentenced to 180 months in prison and three years of supervised release. Defendants Lazardi was sentenced to 25 months in prison and three years of supervised release. Defendant Campo was sentenced to 70 months in prison and five years of supervised release. Defendant Mena was sentenced to 54 months in prison and three years of supervised release. Defendant Arboleda was sentenced to 30 months in prison and three years of supervised release. Defendant Montero was sentenced to 22 months in prison and three years of supervised release. Defendant Mota was sentenced to five years of supervised release.

According to the indictment, from January 2007 through November 2008, the defendants conspired to recruit individuals willing to purchase condominium units at Marina Oaks Condominiums. These buyers were promised a “buyers’ incentive,” which payment was not disclosed to the lenders or reflected on any of the closing documents. The conspirators would then prepare materially false mortgage applications for the buyers on HUD Uniform Loan Application Form 1003. These forms contained false information as to material facts regarding the borrowers’ credit worthiness in order to qualify the borrowers for mortgages to purchase the Marina Oaks Condominiums. The conspirators created false documents to support the mortgage applications. Once the loans closed, the conspirators diverted portions of the mortgage proceeds for their personal use and benefit. The indictment alleges that the conspirators obtained approximately $39 million in 163 fraudulent mortgage loans at Marina Oaks, resulting in $34 million in losses to the various lenders including Fannie Mae, which reported losses over $4.1 million to date, while Freddie Mac faces potential exposure of an additional $8.5 million.

Mr. Ferrer commended the investigative efforts of the Federal Housing Finance Agency, Office of the Inspector General, as the lead investigative agency in the prosecution of Rigal, and IRS-CI and the Broward Sheriff’s Office for their participation in this investigation. 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, Rear Admiral John H. Korn, Commander, 7th Coast Guard District, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), Miami Field Office, announce the indictment of twelve defendants for their alleged participation in the smuggling of Cubans to the United States.

Two indictments, with a combined 126 counts, charge the defendants with conspiracy to encourage and induce aliens to enter the United States, in violation of Title 8, United States Code, Section 1324(a)(1)(A)(v)(I); encouraging and inducing aliens to enter the United States, in violation of Title 8, United States Code, Section 1324(a)(1)(A)(iv); alien smuggling for private financial gain, in violation of Title 8, United States Code, Section 1324(a)(2)(B)(ii); bringing an aggravated felon into the United States, in violation of Title 8, United States Code, Section 1327; and illegal reentry into the United States by an aggravated felon, in violation of Title 8, United States Code, Section 1326(a) and (b)(2). The indictments charge the following twelve individuals:

Antonio Comin, 56, of Miami-Dade County
Arial Arias, 42, of Miami-Dade County
Severo Tapanes, 41, of Miami-Dade County
Jose Valdes Diaz, 37, of Miami-Dade County
Oreste Chavez Torres, 22, of Miami-Dade County
Alexander Aznay-Gonzalez, 23, of Miami-Dade County
Oylver Aguilar, 40 of Miami-Dade County
Juan Blanco, 20 of Miami Dade County
Rogelio Martin-Hernandez, 73, of Miami-Dade County
Eduardo Rodriguez, 42 of Miami-Dade County
Daniel Rochela, 42 of Monroe County
Mario Valdez, 53, of Monroe County

According to the indictments, the defendants are alleged to have engaged in three separate ventures to smuggle a total of sixty-nine aliens. The indictments further allege that the smuggling of fifty of those aliens was for profit. Four defendants remain at large. The other defendants had their initial appearances before U.S. Magistrate Judge Lurana S. Snow in Key West, Florida.

If convicted, defendants Tapanes, Martin-Hernandez, and Rodriguez are facing a maximum possible sentence of twenty years in prison; defendants Arias, Valdes Diaz, Chavez Torres, Aznay-Gonzalez, Aguilar, and Blanco are facing a sentence of fifteen years in prison; and defendants Rochela and Valdez are facing a possible maximum sentence of ten years in prison. Defendant Comin is charged with 102 counts, including fifty counts of alien smuggling for profit, and could face a higher sentence.

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

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, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), announce the conviction and sentencing of Honduran national Fausto Aguero Alvarado, 40. Aguero Alvarado was sentenced to 30 years in prison on drug trafficking conspiracy charges. Aguero Alvarado was arrested in Colombia in 2010 and was extradited to the United States in 2012. A jury convicted Aguero Alvarado following a July 2013 trial.

According to the evidence at trial, Aguero Alvarado had been a source for the Drug Enforcement Administration (DEA) from mid-2008 until early-2009. Following his deactivation as a source, Aguero Alvarado joined forces with the same individuals he had previously helped to target, and entered into a conspiracy to distribute multi-hundred kilo loads of cocaine from Colombia to Honduras. He introduced his co-conspirators to Colombian law enforcement officers who, posing as members of a foreign terrorist organization, sought to obtain weapons that they intended to use to launch attacks on the Colombian government. Aguero Alvarado helped to negotiate a deal to exchange multi-hundred kilogram loads of cocaine in exchange for rocket-propelled grenade launchers. Through Aguero Alvarado’s introductions, the Colombian law enforcement officers ultimately purchased several rocket-propelled grenade launchers, grenades, an Uzi submachine gun and ammunition.

The conviction of Aguero Alvarado is the result of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) led by ICE-HSI. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.

Mr. Ferrer commended the investigative efforts of ICE-HSI and DEA. The case was prosecuted by Assistant U.S. Attorney Adam Fels and Jerrob Duffy.

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, announce that defendant Lionell Sanders (a/k/a “Pistol,” and “Briscoe”), 19, of Miami, Florida, was indicted by a federal grand jury on one count of conspiracy to commit armed robbery, in violation of Title 18, United States Code, Section 1951(a), four counts of armed robbery, in violation of Title 18, United States Code, Section 1951(a), and four counts of possessing and brandishing a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Section 924(c)(1)(A)(ii).

The defendant is the alleged leader of a group targeting taxi cab and food delivery drivers in the Allapattah and Little Haiti neighborhoods of the City of Miami. The drivers were called out to the areas during the early morning hours, and accosted by the defendant and his coconspirators. The drivers were forced out of their vehicles at gunpoint, robbed, and often pistol-whipped.

Once the defendant realized that law enforcement was on his trail, he fled the area. Due to a multi-agency effort, the defendant was apprehended on September 27, 2013. The defendant is presently detained, pending trial. If convicted, he faces up to life in prison.

Mr. Ferrer commended the investigative efforts of ATF, the U.S. Marshal’s Service, the Miami-Dade Police Department, and the City of Miami Police Department. The case is being prosecuted by Assistant U.S. Attorney Vanessa Singh Johannes.

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 Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, Michael J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Scott J. Israel, Sheriff, Broward County Sheriff’s Office (BSO), and Ric L. Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO), announce that Rafael Oscar Valdes and Tammy Lynn Valdes, of Miami, Florida, were found guilty by a federal jury of all counts charged in connection with the unlawful sale of hundreds of firearms without a federal firearms license.

After a two week trial and over 300 items of admitted evidence, the jury convicted Rafael Valdes with dealing in firearms without a license (18 U.S.C. § 922(a)(1)(A)), making a false statement to a federal firearms dealer (18 U.S.C. § 922(a)(6)), interstate transportation of stolen property (18 U.S.C. § 2314), and filing false tax returns for years 2008 – 2011 (26 U.S.C. § 7206(1)). The jury also convicted Tammy Valdes with dealing in firearms without a license and filing false tax returns for years 2008 – 2011. At sentencing, Rafael Valdes faces a combined maximum statutory term of imprisonment of 37 years, as well as paying restitution to the City of Hialeah and possible fines. At sentencing, Tammy Valdes faces a combined maximum statutory term of imprisonment of 18 years and possible fines. Sentencing is scheduled for December 12, 2013, before U.S. District Judge Donald M. Middlebrooks.

According to the court record and evidence presented at trial, Rafael Valdes was employed as a police officer with the City of Hialeah, Florida since 2004. Tammy Valdes was also once employed as a police officer with the City of West Miami, Florida, from 2004 until 2008 and the Town of Golden Beach, Florida, from 2008 through 2009. Neither defendant ever possessed a federal firearms license.

The Valdeses were initially indicted on December 13, 2012, for dealing in firearms without a license. Starting as early as July 2005, and continuing through June 2012, the defendants sold hundreds of firearms. In November 2008, the defendants began buying and selling firearms under the fictitious name of Custom Weapons Systems. The defendants advertised and sold over 100 firearms via the Internet to persons across the nation. The defendants also attended over 100 gun shows in the Southern and Middle Districts of Florida, during which they purchased over 400 firearms and sold over 500 firearms. At times, their purchase and subsequent sale of firearms took place on the same day. Additionally, the defendants sold nine firearms to undercover agents, solicited the purchase of firearms from undercover agents, and offered to acquire firearms for undercover agents on a repetitive basis.

As part of the initial indictment, Rafael Valdes was charged with making a false statement to a licensed firearms dealer in December 2008 when he purchased three AR-15 serialized lower receivers. Evidence admitted during trial proved that Rafael Valdes purchased those receivers for the sole purpose of building and selling completed rifles to three other officers after taking deposits. Rafael Valdes then falsely stated on an ATF Form 4473 that all three receivers were his, when in fact he was acquiring those receivers for other persons.

On July 31, 2013, a superseding indictment added tax charges against both defendants for filing false tax returns from 2008 – 2011, in that they failed to report their total income which included money derived from firearm sales. During trial, evidence was presented that the Valdeses failed to report over $350,000.00 in gross receipts during 2008 - 2011.

The superseding indictment also charged Rafael Valdes with transporting stolen firearm parts from the Hialeah Police Department where he was employed in the training section. During trial, the evidence showed that Rafael Valdes took apart firearms that were in evidence at the Hialeah Police Department and deemed to be destroyed. Rafael Valdes then advertised those parts for sale on the internet and later transported those parts to buyers located across the United States, including; New York, California, Utah, and Missouri. Rafael Valdes then deposited the proceeds into his personal bank account. In addition to selling parts of firearms that were once in evidence, Rafael Valdes also sold machine gun parts taken from six different Heckler and Koch, MP-5 machine guns which had been utilized by the Hialeah Police Department SWAT team.

Mr. Ferrer commended the investigative and cooperative efforts of ATF, IRS-CI, BSO, PBSO, Miami-Dade Police Department, Miami Beach Police Department, City of Miami Police Department, Virginia Gardens Police Department, Hialeah Police Department, FDLE, FBI and HSI. The case was prosecuted by Assistant U.S. Attorneys Adam McMichael and John McMillan.

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 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.

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 Michael J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Scott F. Saidel, 45, was sentenced to 36 months in prison to be followed by 2 years of supervised release by U.S. District Judge Robin S. Rosenbaum. In addition, Saidel was ordered to pay restitution in the amount of $515,000.

Saidel pled guilty to conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 371 on January 30, 2013. Saidel was charged, along with Kimberly Wendell Rothstein, 38, and Stacie Weisman, 49, in September 2012, in connection with certain crimes committed in furtherance of a plot to conceal and dispose of assets which were forfeitable in connection with a Ponzi scheme orchestrated by Scott W. Rothstein. At the same time, in September 2012, Eddy Marin, 50, and Patrick Daoud, 54, were also charged in a separate, but related, matter with obstruction of justice and perjury, in violation of Title 18, United States Code, Sections 1512(k) and 1621.

According to the documents filed with the court, former Ft. Lauderdale attorney Scott W. Rothstein, who was the Chief Executive Officer and Chairman of the law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA), used the funds obtained from the operation of a Ponzi scheme to purchase tens of millions of dollars of real estate, vehicles, vessels, business interests, luxury watches, jewelry and sports memorabilia for himself, his wife, Kimberly Rothstein, and others. As part of his plea agreement, Scott W. Rothstein agreed to forfeit to the government all assets acquired with funds derived through the aforesaid Ponzi scheme. On November 9, 2009, agents of the Internal Revenue Service, Criminal Investigations, went to the Rothstein residence, where Kimberly Rothstein assisted the agents in retrieving what was believed to be all of the available cash, jewelry and luxury watches which had previously been purchased by Scott W. Rothstein with proceeds derived from the Ponzi scheme. However, according to Court documents, before, during and after the aforesaid seizure by federal agents on November 9, 2009, Kimberly Rothstein, Stacie Weisman, and Scott F. Saidel knowingly took action to conceal certain items of jewelry, valued in excess of one million dollars, for the purpose of preventing the government from exercising its authority to take such property into its lawful custody and control. Thereafter, Kimberly Rothstein and Stacie Weisman sold and attempted to sell a portion of this jewelry to and through various persons, including Eddy Marin and Patrick Daoud.

The documents further allege that, in connection with civil proceedings instituted by the Trustee in bankruptcy for RRA, the defendants took steps to obstruct justice by concealing the true location of certain items of jewelry in order to prevent its availability for use in the bankruptcy proceedings. It is further alleged that Marin and Daoud committed perjury during depositions in connection with the bankruptcy proceedings, and that Kimberly Rothstein, Stacie Weisman and Scott F. Saidel sought to have Scott W. Rothstein testify falsely in connection with those proceedings.

Kimberly Rothstein and Stacie Weisman are scheduled to be sentenced on November 12, 2013. Trial in the matter of Eddy Marin and Patrick Daoud is set to commence on October 21, 2013.

Mr. Ferrer commended the investigative efforts of IRS-CI and FBI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence LaVecchio, Jeffrey Kaplan, Paul Schwartz and Evelyn 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, Otha Easley, Acting Special Agent in Charge, NOAA Fisheries, Office of Law Enforcement, Southeast Division, and Major Camille Soverel, Regional Commander, South A Region, Florida Fish & Wildlife Conservation Commission (FWC), announce that Toby Lamm, 46, of Vero Beach, entered a guilty plea in Fort Pierce before U.S. Magistrate Judge Frank J. Lynch to importing illegal catch in violation of the Lacey Act, Title 16, United States Code, Sections 3371(a)(2)(A) and 3373(d)(1)(A).

According to allegations in the information and statements made in court, on or about June 23, 2013, in St. Lucie County, Lamm attempted to import queen conch (Strombus gigus), spiny lobster (Panulirus argus), stone crab (Menippe mercenaria) claws and demersal (fin fish) namely: snapper (Lutjanus) and grouper (Serranidae), in violation of the possession limits for each of the species as set forth in the laws and regulations of the Commonwealth of the Bahamas, specifically, the Fisheries Resources (Jurisdiction & Conservation) Regulations, Part X, Sections 47(1)(a), (b) and 48(1)(f) and the laws and regulations of the State of Florida, specifically 68B-16.003(1), 68B-24.003(4), and 68B-13.005(2) contrary to the federal Lacey Act.

The information also seeks the forfeiture of the illegal catch: approximately, 338 queen conch, 11 spiny lobster tails, 31 stone crab claws, and 140 pounds of snapper and grouper fillets.

Sentencing is scheduled for December 16, 2013 before U.S. District Judge Jose E. Martinez. Lamm faces a possible sentence of up to one year in prison, the forfeiture of the illegal catch, and a fine of up to $10,000.

Mr. Ferrer commended the investigative efforts the NOAA, Office of Law Enforcement, FWC, and Customs and Border Protection. The case is being prosecuted by Assistant U.S. Attorneys Norman O. Hemming, III and Antonia Barnes.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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 Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce the conviction of Malinsky Bazile, 28, of North Miami Beach, for his participation in a stolen identity tax refund scheme.

Specifically, 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 on 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.

Sentencing is scheduled for December 16, 2013 at 9:00 a.m. before U.S. District Judge Robin Rosenbaum. Bazile faces a possible maximum prison sentence of 33 years in prison.

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, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, John A. Bolduc, Chief, Port St. Lucie Police Department, Kenneth Mascara, St. Lucie County Sheriff’s Office, J. Michelle Morris, Chief, Sebastian Police Department, and Deryl Loar, Sheriff, Indian River Sheriff’s Office, announce the arrest and detention of Raven Simone Sayers, 23, of Hallandale, FL. Sayers made her initial appearance on September 26, 2013, and was ordered detained pending trial as both a risk of flight and danger to the community by U.S. Magistrate Judge Frank J. Lynch, Jr. in Ft. Pierce. She is scheduled for arraignment on Friday October 4, 2013.

The criminal complaint charged Sayers with conspiracy to obstruct, delay, or affect commerce or the movement of any article or commodity in commerce by robbery (Hobbs Act), in violation of Title 18, United States Code, Section 1951; and conspiracy to use and carry a firearm during and in relation to a crime of violence in violation of Title 18, United States Code, Sections 924(o) and 924(c). If convicted of the Hobbs Act robbery conspiracy, Sayers faces a possible maximum statutory sentence of 20 years in prison. If convicted of the conspiracy to use and carry a firearm during and in relation to a crime of violence, Sayers faces a mandatory minimum of seven years, and a possible maximum sentence of life, in prison, consecutive to any other sentence imposed.

According to the criminal complaint, on July 8, 2013, the PNC Bank, located in Fort Pierce, Florida, and PNC Bank in Port St. Lucie, Florida were robbed almost simultaneously at gunpoint by groups of black males wearing white clothing and white cloth masks. In each robbery, the groups of males fled in mini vans stolen earlier that morning. One group, was apprehended after a police chase that ended near the intersection of Port St. Lucie Boulevard and Aster Road in Port St. Lucie, Florida. Upon execution of a state search warrant on the white Chrysler sedan, a large amount of currency, a semi-automatic handgun, several cellular phones, cloth gloves, and numerous articles of clothing, consistent with what the bank robbers wore during the robbery of the PNC Bank in Fort Pierce, Florida, was recovered. The driver Tomaleesha Jeffie Laqua McKeliver, and the three passengers, Anthony Isaac Johnson, Allan Demetrius Bradford, and Ivory Lee Robinson, III were arrested and transported to the Port St. Lucie Police Department.

The criminal complaint also states that shortly after two of the males fled the PNC Bank in Port St. Lucie, Florida, the third became momentarily trapped inside, and was observed removing clothing as he fled. A bag containing money was recovered near the PNC Bank, and Paul Edward Moore was arrested nearby and transported to the Port St. Lucie Police Department. With the exception of Moore, the other individuals involved in the PNC Bank in Port St. Lucie, Florida, remained at large.

During Sayers’ detention hearing, an FBI Agent testified that Sayers was implicated as part of the West Palm Beach group that traveled to St. Lucie County for the specific purpose of robbing PNC banks. According to the agent, Sayers was identified as the second getaway driver, and that cell tower records place Sayers in close proximity to both of the St. Lucie County PNC banks, prior to the gun point robberies, and near the site of the minivan thefts. Testimony also revealed that Sayers was in cell phone contact with at least three of the five co-defendants, around the time of the two St. Lucie County bank robberies. The FBI agent also testified that there is a West Palm Beach Walmart video showing Sayers purchasing gloves, consistent with those worn by the robbers during the two St. Lucie County PNC bank robberies.

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

A criminal 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, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), announce that defendant Sonny Austin Ramdeo, 35, of Sunrise, pled guilty in connection with a $20 million federal payroll tax fraud scheme to two counts of fraud by use of wires and money laundering, in violation of Title 18, United States Code, Sections 1343 and 1956(a)(1)(B)(i).

According to court documents, from as early as 2005, defendant Ramdeo was employed as the payroll supervisor at Promise Healthcare, Inc. (Promise Healthcare) and Success Healthcare Group (Success Healthcare), both of which owned and operated hospital facilities throughout the United States. As payroll supervisor for these two companies, Ramdeo was responsible for overseeing the payment of bi-weekly wages and related payroll taxes for more than 3,500 employees.

To execute his scheme, Ramdeo allegedly incorporated PayServ Tax Inc., and thereafter represented to officers and employees of Promise Healthcare that PayServ Tax would handle the transfer of local, state and federal payroll taxes to the proper agencies on behalf of Promise Healthcare and Success Healthcare. In fact, however, Ramdeo kept the monies paid by Promise and Success Healthcare to PayServ and used the funds to open and operate EZ Jet Airlines between Guyana and New York.

Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Ellen L. Cohen.

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 J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigations (IRS-CI), announce that Edda Obando, 65, of Miami, Florida, was sentenced on September 30, 2013 based on her earlier guilty plea to making and subscribing a false tax return, in violation of Title 26, United States Code, Section 7206(1).

According to the allegations of the charging instrument, Obando, who served as a bookkeeper, prepared a false and fraudulent tax return by significantly under-reporting her income on her own personal tax return.

Obando was sentenced by Chief U.S. District Judge Frederico A. Moreno to forty-five days in prison, followed by five years of probation, with special conditions to include, inter alia, cooperation with the IRS in determining and paying tax liabilities. Further, Obando was sentenced to pay restitution in the amount of $72,212.68 and $100 special assessment.

Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Special Counsel to the U.S. Attorney, Norman O. Hemming, III.

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, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that a federal grand jury indicted defendant Christopher Gregory Wayne, 53, of Miami Beach, an osteopathic physician residing in Miami, for health care fraud. Wayne was arrested today and made his initial appearance at 2:00 p.m. before U.S. Magistrate Judge Barry L. Garber.

The indictment charges Wayne with twelve counts of health care fraud by executing a scheme to defraud the Medicare program, in violation of Title 18, United States Code, Section 1347. The case has been assigned to U.S. District Judge Robert N. Scola, Jr.

If convicted, Wayne faces a maximum statutory sentence of up to ten years in prison and a $250,000 fine.

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

The Indictment is only an accusation and is not evidence of guilt. A defendant is presumed innocent unless and until he is 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, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Eric I. Bustillo, Regional Director, Securities and Exchange Commission (SEC), announce the filing of an indictment charging defendant Jenny Coplan, 54, of Lauderhill, with three counts of wire fraud, in violation of Title 18, United States Code, Section 1343. In a parallel action, the SEC announced civil charges against Coplan.

According to the indictment filed in this matter, Coplan was the president of Immigration General Services, LLC (IGS) and solicited investors for purported investments in federal bail and immigration bonds. Coplan promised investors interest rates exceeding sixty percent a year on their investments.

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

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

If convicted, the defendant faces a possible maximum statutory sentence of 20 years in prison for each count of wire fraud.

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

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.

Funds Will Hire School Resource Officers and Critical Law Enforcement Positions

United States Attorney Wifredo A. Ferrer, in conjunction with the U.S. Department of Justice Office of Community Oriented Policing Services (COPS), today announced funding awards for the Southern District of Florida.

The Southern District of Florida has been awarded grants totaling $8,118,029 to the following Police Departments and/or their respective municipalities for the hiring of police officers: Ft. Pierce Police Department, Hendry County Sheriff's Department, Key West Police Department, City of Lauderdale Lakes, Metropolitan Dade County, Miami Gardens Police Department, City of Miami, Miami-Dade County Public Schools Police Department, the City of Opa-Locka, St. Lucie County Sheriff's Office, and the City of West Palm Beach.

U.S. Attorney Wifredo A. Ferrer stated, “Keeping our children safe when they go to school is of critical importance and I am pleased to join the Attorney General and the COPS Office in announcing these grants which will help provide our communities with the resources needed to accomplish this vital mission.”

“In the wake of past tragedies, it's clear that we need to be willing to take all possible steps to ensure that our kids are safe when they go to school,” said Attorney General Eric Holder. “These critical investments represent the Justice Department's latest effort to strengthen key law enforcement capabilities, and to provide communities with the resources they need to protect our young people. Especially in a time of increased challenges and limited budgets, our top priority must always be the safety and well-being of our children.”

Overall the COPS Office funded awards to 263 cities and counties, aimed at creating 937 law enforcement positions. More than $125 million will be awarded nationally, including nearly $45 million to fund 356 new school resource officer positions.

“The COPS Office is pleased to assist local law enforcement agencies throughout the country address their most critical public safety issues,” said Joshua Ederheimer, Acting Director of the COPS Office. “Funding from this year’s program will allow many cities and counties to apply new sworn personnel to issues related to violent crime, property crime, and school safety.”

The COPS Hiring Program offers grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers. The program provides the salary and benefits for officer and deputy hires for three years.

Grantees for the 2013 hiring program were selected based on their fiscal needs, local crime rates, and their community policing plans. There was an additional focus this year on agencies requesting assistance in developing school safety programs that would include the hiring of a school resource officer. School resource officer positions funded by the COPS Office are sworn law enforcement positions that work within a school district or facility, interacting directly with school administrators and students.

The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has awarded over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 125,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.

For the entire list of grantees and additional information about the 2013 COPS Hiring Program, visit the COPS website at www.cops.usdoj.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.

Two Miami-area residents were indicted in connection with 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 HHS Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement after the indictment was unsealed.

Mayelin Santoyo, 28, and Jose Martin Olivares, 36, were each charged with one count of conspiracy to defraud the United States and to receive illegal health care kickbacks, and two counts of receiving health care kickbacks. Each charge carries a maximum penalty of five years in prison upon conviction.

According to the indictment, the scheme that Santoyo and Olivares allegedly participated in lasted from approximately February 2006 to October 2010. The scheme was orchestrated by the owners and operators of American Therapeutic Corporation (ATC) and its management company, Medlink Professional Management Group Inc. (Medlink). 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 and Orlando. Both corporations have been defunct since their owners were arrested in October 2010.

The indictment alleges that Santoyo and Olivares served as patient brokers who provided ineligible patients to ATC in exchange for kickbacks in the form of checks and cash. The amount of the kickback was based on the number of days each recruited patient spent at ATC. Throughout the course of the ATC conspiracy, millions of dollars in kickbacks were paid in exchange for Medicare beneficiaries who did not qualify for PHP services and who attended treatment programs that were not legitimate PHPs so that ATC could bill Medicare for the medically unnecessary services. According to court filings, to obtain the cash required to support the kickbacks, the co-conspirators laundered millions of dollars of payments from Medicare.

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 Trial Attorneys Anne P. McNamara and Robert A. Zink of the Fraud Section.

Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,500 defendants who collectively have falsely billed the Medicare program for more than $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: 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.

A patient recruiter of a Miami health care company pleaded guilty today for his participation in a $48 million home health 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 Dennis of the HHS Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.

Emilio Amador, 46, pleaded guilty before U.S. District Judge Federico A. Moreno to one count of conspiracy to receive health care kickbacks and two counts of receiving health care kickbacks. He faces a maximum penalty of five years in prison for each count when he is sentenced on Dec. 4, 2013.

According to court documents, Amador was a patient recruiter who worked for Caring Nurse Home Health Care Corp. (Caring Nurse), a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries.

According to court documents, from approximately January 2006 through approximately June 2011, Amador would recruit patients for Caring Nurse, and in doing so would solicit and receive kickbacks and bribes from the owners and operators of Caring Nurse in return for allowing Caring Nurse to bill the Medicare program on behalf of the patients Amador had recruited. These Medicare beneficiaries were billed for home health care and therapy services that were medically unnecessary and/or not provided.

According to court documents, Amador also pleaded guilty to his involvement with fraudulent billings for Nation’s Best Care Home Health, Corp. (Nation’s Best) as relevant conduct. Amador was the owner, operator and president of Nation’s Best. The billings for Nation’s Best were approximately $30 million.

In a related case, on Feb. 27, 2013, Rogelio Rodriguez and Raymond Aday, the owners and operators of Caring Nurse and Good Quality Home Health Care, Inc. (Good Quality), another fraudulent home health care agency, were sentenced to 108 and 51 months in prison, respectively. Their sentencings followed their December 2012 guilty pleas to one count each of conspiracy to commit health care fraud charged in an October 2013 indictment. From in or around January 2006 through in or around June 2011, Caring Nurse and Good Quality submitted approximately $48 million in claims for home health services that were not medically necessary and/or not provided. Medicare paid approximately $33 million for these fraudulent claims.

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

Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,500 defendants who collectively have falsely billed the Medicare program for more than $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: 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.

Several patient recruiters, including two medical clinic owners, have been arrested in connection with a health care fraud scheme involving defunct home health care company Flores Home Health Care Inc. (Flores Home Health).

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 Dennis of the HHS Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.

In an indictment returned on Sept. 24, 2013, and unsealed this afternoon, Isabel Medina, 49, and Lerida Labrada, 59, were charged with conspiracy to commit health care fraud, which carries a maximum penalty of 10 years in prison upon conviction. Together with Mayra Flores, 49, and German Martinez, 36, Medina and Labrada also face charges for allegedly conspiring to defraud the United States and to receive health care kickbacks as well as receipt of kickbacks in connection with a federal health care program, which carry a maximum penalty of five years in prison upon conviction.

According to the indictment, the defendants worked as patient recruiters for the owners and operators of Flores Home Health, a Miami home health care agency that purported to provide home health and physical therapy services to Medicare beneficiaries. Medina and Labrada were also the owners and operators of Miami medical clinics which allegedly provided fraudulent prescriptions to the owners and operators of Flores Home Health.

Flores Home Health was allegedly operated for the purpose of billing the Medicare program for, among other services, expensive physical therapy and home health care services that were not medically necessary and/or were not provided.

From approximately October 2009 through approximately June 2012, Flores Home Health was paid approximately $8 million by Medicare for allegedly fraudulent claims for home health services.

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

Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,500 defendants who collectively have falsely billed the Medicare program for more than $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: www.stopmedicarefraud.gov.

An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted.

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.

Defendant Claimed to be a Fortune Teller and Spiritual Adviser

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation, (IRS-CI), Frank Adderly, Chief, Fort Lauderdale Police Department, and Paula Reid, Special Agent in Charge, U.S. Secret Service, Miami Field Office, announce that a Fort Lauderdale federal jury found Rose Marks, 62, of Fort Lauderdale, Florida and New York, New York, guilty of all counts charged in connection with a $25 million fraud scheme.

More specifically, after a month-long trial, the jury convicted Rose Marks of all 14 counts in an indictment which charged conspiracy to commit mail fraud and wire fraud (18 U.S.C. ' 1349), mail fraud (18 U.S.C. ' 1341), wire fraud (18 U.S.C. ' 1343), conspiracy to commit money laundering and money laundering (18 U.S.C. ' 1956 and 1957), and filing false income tax returns (26 U.S.C. ' 7206). At sentencing, the defendant faces a maximum statutory term of 20 years in prison for each of the mail, wire fraud and conspiracy counts, 10 years for the money laundering counts and three years in prison for each of the tax counts, as well as mandatory restitution and possible fines.

Rose Marks was taken into custody after the verdict was returned. Sentencing is scheduled for December 9, 2013 at 3:30 p.m. before U.S. District Judge Kenneth A. Marra in West Palm Beach.

On August 16, 2011, a multi-count indictment was unsealed charging Rose Marks and nine other defendants with conspiracy to commit mail fraud and wire fraud (18 U.S.C. ' 1349), mail fraud (18 U.S.C. ' 1341), wire fraud (18 U.S.C. ' 1343), and money laundering conspiracy (18 U.S.C. ' 1956). The indictment, the result of “Operation Crystal Ball,” focused on a group of individuals, all family members, claiming to be fortune tellers, psychic readers and spiritual advisors. In reality, however, these individuals defrauded more than twenty victims out of $25 million.

According to the evidence at trial, Rose Marks and her co-conspirators held themselves out as fortune tellers, clairvoyants and spiritual advisers. In this way, they falsely represented to their victims that they could remove purported curses or negativity from their lives or that of their loved ones. Rose Marks and her co-conspirators claimed that these curses were the cause of illnesses, family problems, marital and relationship issues and other difficulties faced by their victims.

The evidence and testimony presented at trial showed that to execute the scheme, Rose Marks and her co-conspirators used magic tricks and false statements to induce their victims to give them large sums of money and other valuables, including jewelry and gold coins, to be “sacrificed” and “cleansed” of negativity. The defendants told victims that the money would be used for the “work”, which included meditation and prayer, and that they and their family would continue to suffer terrible consequences, unless the money and valuables was “cleansed.” Although the defendants promised to return the victims’ money and valuables when the “work” was completed, the defendants deposited the victims’ funds into bank accounts they controlled and used the money to pay for their personal expenses and promote their lifestyle.

The following defendants have entered guilty pleas and are awaiting sentencing in connection with the August 16, 2011, Indictment:

Vivian Marks, of Fort Lauderdale, Florida; pled guilty on 2/8/2013; Sentencing is set for 10/7/2013 at 1:30 p.m. in West Palm Beach, Florida.

Ricky Marks, of Fort Lauderdale, Florida and New York, New York; pled guilty on 3/12/2013; sentencing is set for 10/7/2013 1:30 p.m. in West Palm Beach, Florida.

Michael Marks, of Fort Lauderdale, Florida; pled guilty on 11/28/2012; sentencing is set for 10/7/2013 at 1:30 p.m. in West Palm Beach, Florida.

Victoria Eli, of Fort Lauderdale, Florida and Secaucus, New Jersey; pled guilty on 3/15/2013; sentencing is set for 11/4/2013 at 1:30 p.m. in West Palm Beach, Florida.

Nancy Marks, of Fort Lauderdale, Florida and New York, New York; pled guilty on 3/14/2013; sentencing is set for 12/2/2013 at 10:00 a.m. in West Palm Beach, Florida.

Rosie Marks, of Fort Lauderdale, Florida; pled guilty on 2/8/2013; sentencing is set for 12/2/2013 at 10:00 a.m. in West Palm Beach, Florida.

Cynthia Miller, of Fort Lauderdale, Florida; pled guilty on 3/15/2013; sentencing is set for 12/2/2013 at 10:00 a.m. in West Palm Beach, Florida.

Donnie Eli, of Fort Lauderdale, Florida and New York, New York; pled guilty on 2/08/2013; sentencing is set for 12/2/2013 at 10:00 a.m. in West Palm Beach, Florida.

Mr. Ferrer commended the investigative efforts of IRS-CI, the Fort Lauderdale Police Department and U.S. Secret Service. This case is being handled by Assistant U.S. Attorneys Roger Stefin and Laurence Bardfeld.

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

Five Miami residents have been charged for their alleged roles in a $48 million home health 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 Dennis of the HHS Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement after the case was unsealed following the defendants’ arrests yesterday.

On Sept. 24, 2013, a federal grand jury in Miami returned an 11-count indictment charging Marianela Martinez, 45; Mireya Amechazurra, 49; Lissett Jo-Moure, 55; Omar Hernandez, 48; and Celia Santovenia, 49, each with one count of conspiracy to receive health care kickbacks and two counts of receiving kickbacks in connection with a Federal health care program. Each charge carries a maximum penalty of five years in prison upon conviction.

According to the indictment, the defendants participated in a scheme involving Caring Nurse Home Health Care Corp. (Caring Nurse) and Good Quality Home Health Inc. (Good Quality), Miami home health care agencies that purported to provide home health and therapy services to Medicare beneficiaries. The defendants allegedly referred Medicare beneficiaries to Caring Nurse and/or Good Quality in exchange for kickbacks, knowing that Caring Nurse and/or Good Quality would in turn bill Medicare for home health services purportedly rendered for the recruited Medicare beneficiaries.

An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted.

In a related case, on Feb. 27, 2013, Rogelio Rodriguez and Raymond Aday, the owners and operators of Caring Nurse and Good Quality, were sentenced to 108 and 51 months in prison, respectively. The sentencings followed their December 2012 guilty pleas to one count each of conspiracy to commit health care fraud charged in an October 2012 indictment, which alleged that from approximately January 2006 through June 2011, Caring Nurse and Good Quality submitted approximately $48 million in claims for home health services that were not medically necessary and/or not provided. Medicare paid approximately $33 million for those fraudulent claims.

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

Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,500 defendants who collectively have falsely billed the Medicare program for more than $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: 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, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that David McLean, 50, a suspended City Commissioner for the city of Margate and board member on the Margate Community Redevelopment Agency (MCRA) Board was convicted by a Ft. Lauderdale federal jury on September 24, 2013, of federal bribery charges. McLean was convicted on counts two and three of a three-count indictment charging him with bribery in a program receiving federal funds, in violation of Title 18, United States Code, Section 666. McLean was acquitted of the charges in Count one.

According to the allegations in the indictment and the evidence presented at trial, on November 2, 2012, McLean accepted $3,000 in cash in exchange for his influence in connection with a $25,000 MCRA construction grant (Count 2). And on January 30, 2013, McLean accepted another $2,000 in cash in exchange for his influence in connection with the $25,000 MCRA construction grant.

The defendant faces a maximum statutory term of 10 years in prison, a $250,000 fine and restitution as to each of the two counts. Sentencing is scheduled for December 6, 2013, before U.S. District Judge James Cohn in Ft. Lauderdale.

Mr. Ferrer commended the investigative efforts of the FBI. This case is being prosecuted by Assistant U.S. Attorney Neil Karadbil.

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, Otha Easley, Acting Special Agent in Charge, NOAA Fisheries Office of Law Enforcement, and David Pharo, Resident Agent in Charge U.S. Fish & Wildlife Service, Miami, announce that Peter C. Covino, IV, 20, of Eagle, Idaho, was sentenced yesterday in Key West, for knowingly and corruptly attempting to persuade another to alter, destroy, mutilate, or conceal an object with the intent to impair the object’s integrity and availability for use in an official proceeding, in violation of Title 18, United States Code, Sections 1512(b)(2)(B) and 2.

U.S. District Court Judge Jose E. Martinez, who presided over the trial of Peter Covino in July, imposed a sentence of imprisonment of time served - two months, six months of home confinement under electronic monitoring, and two years of supervised release. The court determined that Covino was unable to pay a fine.

According to testimony presented during the trial and documents in the case file, in February 2013 Covino made two phone calls to a business in the Florida Keys involved in the wholesale marine life trade in an effort to persuade one of the business owners “to erase all the text messages, and emails, or any other evidence” linking the Florida business to Peter Covino’s uncle, Ammon Covino, then a Director of the Idaho Aquarium, Inc., in Boise, Idaho.

In a separate criminal proceeding, United States v. Ammon Covino, et al., Case No. 12-10020-CR-Martinez, Ammon Covino had been arrested on February 21, 2013, and charged with engaging in a conspiracy and other violations of the federal Lacey Act by purchasing and transporting wildlife from the Florida Keys to Idaho for exhibit at the Idaho Aquarium in Boise, Idaho. The wildlife included spotted eagle rays and lemon sharks, which required Florida licenses and permits never acquired by the participants in the deals. Testimony at Peter Covino’s trial established that Ammon Covino and his co-defendant Christopher Conk had made the arrangements for the illegal purchases by emails, text messages, and telephone calls.

Unknown to Peter Covino at the time of the phone calls was the fact that the business owner was cooperating with federal authorities and his phone conversations were recorded. During his trial testimony, Peter Covino admitted that he made the calls at the direction of his uncle, Ammon Covino.

Mr. Ferrer commended the investigative efforts of the NOAA Office of Law Enforcement, the U.S. Fish & Wildlife Service, Office of Law Enforcement, and the Idaho Department of Fish & Game. This case was prosecuted by Assistant U.S. Attorneys 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, Otha Easley, Acting Special Agent in Charge, NOAA Fisheries Office of Law Enforcement, and David Pharo, Resident Agent in Charge U.S. Fish & Wildlife Service, Miami, announce that Idaho Aquarium, Inc., an Idaho corporation based in Boise, Ammon Covino, 40, formerly of Meridian, Idaho, and Christopher Conk, 40, of Middleton, Idaho, entered guilty pleas in federal District Court in Key West yesterday for conspiring to harvest, transport, and sell spotted eagle rays and lemon sharks, knowing the marine life were taken, possessed, transported, sold, and intended to be sold in violation of the laws and regulations of the State of Florida, contrary to the federal Lacey Act, Title 16, United States Code, Sections 3372(a)(2)(A), and 3373(d)(1) and (2), all in violation of Title 18, United States Code, Section 371.

According to the Indictment and Joint Factual Statements submitted to the Court and agreed to by the respective defendants, the defendants confessed that during the period extending from March 2012 through approximately November 2012, they engaged in a conspiracy to purchase and transport wildlife from the Florida Keys to Idaho for exhibit at the Idaho Aquarium in Boise. The wildlife included spotted eagle rays and lemon sharks, which required Florida licenses and permits never acquired by the participants in the deals. According to the Factual Statements, Covino and Conk were both at the time officers of the Aquarium, were individually advised of the requirements of the law, and nevertheless directed their Florida-based suppliers to ignore the law and make the shipments. Unknown to Covino and Conk at the time of the phone calls was the fact that the business owner was cooperating with federal authorities and the phone conversations and text messages were recorded. Payment for the various specimens was made by credit cards held in the Aquarium’s name. All three defendants acknowledged that Covino and Conk’s illegal conduct was within the scope of their employment, and intended to benefit, at least in part, the Idaho Aquarium.

In a separate criminal proceeding, United States v. Peter C. Covino, IV, Case No. 13-10010-CR-Martinez, Peter Covino, the nephew of Ammon Covino, was tried, convicted, and sentenced for obstruction of justice in connection with his effort to persuade the supplier in the Florida Keys to destroy the invoices and messages related to the illegal purchases of marine life to prevent their use in Ammon Covino’s case, in violation of Title 18, United States Code, Sections 1512(b)(2)(B). Testimony at the trial established that after Ammon Covino had been arrested on February 21, 2013 he induced Peter Covino to make the calls.

Mr. Ferrer commended the investigative efforts of the NOAA Office of Law Enforcement, the Fish & Wildlife Service, Office of Law Enforcement, and the Idaho Department of Fish & Game. This case was prosecuted by Assistant U.S. Attorneys Thomas Watts-FitzGerald and Antonia Barnes, with assistance from the U.S. Attorney’s Office for the District of Idaho.

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 J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Scarlet Veres, a/k/a Scarlet Russo, a/k/a Scarlet Rice, and Steven M. Veres, III (the Veres), both of Clermont, Florida, formerly of Broward County, Florida, were charged with tax fraud. Specifically, the Indictment charges both defendants with conspiracy to defraud the Internal Revenue Service and with willfully filing false tax returns. Steven M. Veres, III, was also charged with aiding and assisting in the preparation of a false tax return. The defendants made their initial appearance yesterday before U.S. Magistrate Judge David A. Baker of the Middle District of Florida.

According to the charges, defendant Steven M. Veres, III was a licensed general contractor who owned and operated Superior Contracting, Inc., a State of Florida construction company. During the 2005 tax year, defendants Scarlet Veres and Steven M. Veres, III were the sole shareholders of Superior Contracting, Inc. In 2005, Superior Contracting, Inc. received millions of dollars from contracts to repair hurricane damaged condominium buildings in St. Lucie County, Florida. As stated in the Indictment, Scarlet Veres was responsible for the corporate bookkeeping which included recording the income and expenses for Superior Contracting, Inc. in the accounting software used to generate the profit and loss statements for the corporation.

As further stated in the Indictment, the Veres were married in July of 2005, in Broward County, Florida. In June 2007, defendant Steven M. Veres, III petitioned for a downward modification of his child support payments to a former spouse, whom Steven M. Veres, III divorced in 2003. In support of this petition, defendant Steven M. Veres, III provided copies of his delinquent personal and corporation income tax returns, which returns were subsequently filed with the IRS. On their 2005 U.S. Individual Income Tax Return, defendants Scarlet Veres and Steven M. Veres, III claimed to have adjusted gross income of a negative amount yet the defendants had expenditures for real property, personal home construction and improvements, vehicles, investments, and jewelry in that same year totaling at least $1.5 million. The false corporate and personal income tax returns served the dual purpose of evading income taxes of defendants Scarlet Veres and Steven M. Veres, III and child support obligations of defendant Steven M. Veres, III.

The Indictment alleges that the Veres conspired with each other to defraud the IRS and file false personal and corporate tax returns for 2005. This was accomplished by diverting corporate receipts of Superior Contracting, Inc. to their own use. In order to conceal their diversion of corporate funds, the Veres allegedly falsified the profit and loss statement of Superior Contracting, Inc. by characterizing personal expenses, as business expenses, which in turn, reduced the income reported on Superior Contracting, Inc.'s corporate tax return. The Indictment further alleges that by providing their tax return preparer with false profit and loss statements for Superior, Inc. the Veres caused the tax preparer to prepare a false 2005 Individual Income Tax Return which failed to correctly report the defendants' share of income generated by Superior Contracting, Inc. The Indictment further states that the defendants made false statements and representations to agents of the Internal Revenue Service for the purpose of concealing the income they received from Superior Contracting, Inc.

If convicted, the defendants face a maximum statutory sentence of up to five years in prison for the conspiracy charge and three years in prison for each count of willfully filing false tax returns. In addition, Steven M. Veres, III faces up to three years in prison for aiding and assisting in the preparation of a false tax return.

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

The Indictment is only an accusation and is not evidence of guilt. A defendant is presumed innocent unless and until he is 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, Otha Easley, Acting Special Agent in Charge, NOAA Fisheries Office of Law Enforcement, and David Pharo, Resident Agent in Charge U.S. Fish & Wildlife Service, Miami, announce that Eric P. Pedersen, 51, of Grassy Key, Florida, and Serdar Ercan, 42, formerly of Grassy Key, entered guilty pleas in Key West today for conspiring to harvest, transport, and sell marine living resources knowing the marine life were taken, possessed, transported, sold, and intended to be sold in violation of the laws and regulations of the State of Florida, contrary to the federal Lacey Act, Title 16, United States Code, Sections 3372(a)(2)(A), and 3373(d)(1) and (2), all in violation of Title 18, United States Code, Section 371.

Pedersen and Ercan each face a possible sentence of up to five years in prison, a period of supervised release of up to three years, and a criminal fine of up to $250,000 in the case. United States District Court Judge Jose E. Martinez set sentencing for the two defendants for December 4, 2013 in Key West, beginning at 10:00 a.m.

According to the Indictment and Joint Factual Statements submitted to the Court, the defendants confessed that during the period extending from October 2010 through approximately February 2011, they engaged in a conspiracy to harvest and transport Live Rock and attached invertebrates, specifically Ricordia florida, sea fans (Gorgonia species), bonnethead sharks (Sphyma tiburo), lemon sharks (Negaprion brevirostris), and nurse sharks (Ginglymostoma cirratum), wildlife from the Florida Keys to buyers throughout the United States and foreign countries. Their activities were conducted without the required licenses and permits mandated by Florida law, and in some instances exceeded permissible bag limits on some of the species of marine life.

According to statements in the record, the harvesting activity occurred within the Florida Keys National Marine Sanctuary, other federal Wildlife Refuges, and State waters. Pursuant to the Florida Keys National Marine Sanctuary and Protection Act and the National Marine Sanctuary Act, the National Oceanic & Atmospheric Administration issued final regulations in January 1997 to govern the conduct of activities within the sanctuary. Title 15, Code of Federal Regulations, Section 922.163(a)(2) prohibits the removal of, injury to, or possession of coral or live rock. Section 922.163(a)(2)(I) prohibits moving, removing, taking, harvesting, damaging, disturbing, breaking, cutting, or otherwise injuring any living or dead coral or coral formation, or attempting any of these activities.

Mr. Ferrer commended the investigative efforts of the NOAA Office of Law Enforcement, the U.S. Fish & Wildlife Service, Office of Law Enforcement. Mr. Ferrer also extended his thanks to the Florida Fish & Wildlife Conservation Commission who assisted in the case. This case was prosecuted by Assistant U.S. Attorneys Thomas Watts-FitzGerald and Antonia Barnes.

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

Two individuals charged with running a telemarketing operation that defrauded Spanish-speaking consumers pleaded guilty today to one count of conspiracy to commit mail fraud, the Department of Justice and U.S. Postal Inspection Service (USPIS) announced. Daniel Carrasco, 54, and Federico Martin Gioja, 45, both of Miramar, Fla., pleaded guilty in the U.S. District Court for the Southern District of Florida in Miami to charges alleging they owned and operated Florida companies that used a telemarketing sales room in Argentina to consistently lie to consumers about products they would receive and to threaten consequences of failure to pay for shipments.

Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, stated: “Fraud, of any kind, is unacceptable. Fraud by threat and intimidation is particularly troublesome because it targets the perceived, but oftentimes real, vulnerabilities of those preyed upon. In this case, the defendants targeted Spanish-speaking consumers and falsely threatened them with arrest and deportation when the consumers refused delivery for products they had not ordered. Such tactics are intolerable. Together with the Department of Justice’s Civil Division, Consumer Protection Branch, we stand united to stem such fraud.”

“The Department of Justice is committed to protecting consumers from fraud,” said Stuart F. Delery, Assistant Attorney General for the Civil Division. “As these guilty pleas demonstrate, we will be particularly vigilant towards schemes that target specific populations, and we will not be deterred by those who seek to evade detection by changing the name of their fraudulent companies.”

Carrasco’s and Gioja’s telemarketers promoted products such as vitamins, lotions and English-language training products. They also promised buyers would receive valuable gifts such as expensive watches and perfumes, gift cards and medical assistance and insurance. However, the companies frequently did not deliver products ordered by consumers. Since the companies did not have many of the products they promised to send to consumers, consumers received other products instead. Then, after consumers refused delivery of the companies’ shipments, the Argentinian phone room telemarketers called and falsely threatened consumers with arrest, deportation or fines on their gas and electric bills.

As part of their guilty pleas, Carrasco and Gioja admitted they routinely changed the names of the companies under which they did business to evade consumer complaints, regulators and law enforcement. A variety of state agencies contacted the businesses regarding their illicit practices. Those working with Carrasco and Gioja, in emails cited in the affidavit in support of arrest, referred to these companies tainted by complaints as “burnt.” Rather than changing the “burnt” companies’ practices, Carrasco and Gioja incorporated new companies and started the same illegal practices again.

Also in pleading guilty, Carrasco and Gioja admitted their telemarketers falsely represented to consumers that they were affiliated with Spanish-language television networks. The alleged fraud first came to light when the Spanish language network Univision informed the USPIS they believed a company was involved in a fraud scheme in which it misrepresented its affiliation with the network. Subsequently, the Postal Inspection Service investigated the case, submitted the affidavit in support of the criminal complaint and arrested the defendants.

"The U.S. Postal Inspection Service is committed to unraveling operations that scheme to defraud innocent people,” said Ronald Verrochio, U.S. Postal Inspector in Charge in Miami. "Our postal inspectors aggressively investigate mail fraud scams such as this one, with a concerted effort to protect consumers.”

Carrasco and Gioja originally were charged by criminal complaint and arrested on June 26, 2013. Both defendants were later indicted on July 25, 2013. They have remained incarcerated since that time. Carrasco and Gioja, and a third individual, Romino Tasso, also were named in a civil suit filed by the Justice Department. In the civil case, the Justice Department requested and obtained a preliminary injunction barring further lies to consumers and freezing the assets of Carrasco, Gioja, Tasso and companies under their control.

Assistant Attorney General Delery commended the Postal Inspection Service for their investigative efforts and thanked the U.S. Attorney’s Office for the Southern District of Florida for their contributions to the civil case. The criminal case was prosecuted by Assistant Director Richard Goldberg with the Department of Justice’s Civil Division, Consumer Protection Branch and Assistant U.S. Attorney Timothy Abraham of the Southern District of Florida.

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Paul Anthony Ruggieri, of Parkland, Florida, was charged in a nine-count Indictment with one count of conspiring to defraud the lawful functions of the Internal Revenue Service, in violation of Title 18, United States Code, Section 371, and eight counts of aiding and assisting in the filing of false tax returns, in violation of Title 26, U.S.C. Section 7206(2). Defendant Ruggieri made his initial appearance today before U.S. Magistrate Judge Dave Lee Brannon.

According to the charges, Ruggieri provided accounting and return preparation services to Anthony Andreozzi, F & A Concepts, Inc. (F & A) and Galaxy Communications, Inc. (Galaxy), two adult entertainment businesses owned and operated by Andreozzi in the State of Florida. Defendant Ruggieri also provided accounting services to the general public through his business, Strategic Accounting Alliance. As stated in the Indictment, Ruggieri and Andreozzi conspired for the purpose of unlawfully enriching themselves by engaging in a fraudulent scheme to evade the payment of federal income taxes.

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

Andreozzi was charged on September 9, 2013, with conspiring to defraud the United States.

If convicted, Ruggieri faces a maximum statutory sentence of up to five years in prison for the conspiracy charge, and three years in prison on each count of willfully aiding and assisting in the filing of false tax returns.

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

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, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, and Richard L. Walker, Special Agent in Charge, U.S. Department of Labor, Office of Inspector General - Office of Labor Racketeering and Fraud Investigation, and Jessie Panuccio, Executive Director, Florida Department of Economic Opportunity, announced that Jean Mari Lindor, 32, of Homestead, Florida, was sentenced in federal court in Miami today, for his participation in filing false claims in connection with the Deepwater Horizon explosion and pollution incident in the Gulf of Mexico. Lindor was convicted on charges of mail fraud, wire fraud, access device fraud, and aggravated identity theft, all in connection with fraudulent claims filed by the defendant seeking lost income against the Gulf Coast Claims Facility, the filing of fraudulent tax returns with the Internal Revenue Service, and false claims for unemployment compensation against the State of Florida, in violation of Title 18, United States Code, Sections 1341, 1343, 1029(a)(2) and (b)(1), and 2.

U.S. District Judge K. Michael Moore, who presided over the trial in the matter, sentenced Lindor to 286 months’ in prison, followed by five years of supervised release. A restitution hearing has been scheduled for December 4, 2014.

According to the Indictment and evidence presented at trial, in June 2010, BP established the Gulf Coast Claims Facility (GCCF) for the purpose of administering, mediating, and settling certain claims of individuals and businesses for costs, damages, and other losses incurred as a result of oil discharges due to the April 20, 2010 explosion and fire on the Deepwater Horizon, an oil rig in the Gulf of Mexico that had been drilling an exploration well. In August 2010, the GCCF began receiving and processing such claims of individuals and businesses for costs, damages, and other losses they had incurred as a result of the Deepwater Horizon incident, paying the claims from a $20 billion Trust Fund established for that purpose.

Lindor also used unauthorized access devices during the scheme, consisting of the unique GCCF Claim numbers assigned to his fictitious claims, and without which he would have been unable to communicate with the GCCF, or cause payments to be issued to them. Moreover, Lindor also sought unemployment compensation for more than a year from the State of Florida, falsely certifying that he was not earning income when, in fact, he was actively directing the scheme at Noula.

Furthermore, the evidence at trial showed that Lindor possessed and used without lawful authority the social security numbers of two identity theft victims to file fraudulent tax claims against the IRS, and directed the refunds into either his personal bank account or to bank debit cards.

Mr. Ferrer commended the investigative efforts of the FBI, U.S. Postal Inspection Service, Secret Service, Department of Labor Office of Inspector General, Florida Department of Economic Opportunity and the U.S. Citizenship and Immigration Service, Fraud Detection and National Security Directorate. Mr. Ferrer would also like to thank the National Center for Disaster Fraud (NCDF). This case was prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald.

Members of the public can report fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, including the 2010 Deepwater Horizon oil spill, through the National Center for Disaster Fraud (NCDF) Disaster Fraud Hotline at 877-NCDF-GCF (623-3423), the Disaster Fraud Fax at 225-334-4707, or the Disaster Fraud e-mail at miamipd@usdoj.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, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Claudio Eleazar Osorio, a/k/a “Claudio Osorio Rodriguez,” 54, of Aventura, was sentenced today by U.S. District Court Judge William Dimitrouleas to 150 months imprisonment and three years of supervised release on two counts of conspiracy to commit wire fraud, and 120 months imprisonment and three years of supervised release on one count of conspiracy to commit money laundering. The terms of imprisonment run concurrently. Osorio was also ordered to pay $23,000,000 in restitution to the victims, and to forfeit his interest in the marital home. Osorio had pled guilty earlier this year, in February 2013.

According to documents filed with the court and statements made in court during the plea, Osorio was the owner and majority shareholder of Innovida Holdings, LLC, a Florida limited liability company, located in Miami Beach. Innovida manufactured fiber composite panels for the construction industry for use in residential, commercial, governmental, and other structures without the need for cement, steel or wood. Innovida purported to be a rapidly expanding and financially strong international operation with facilities in the United States, the United Arab Emirates, Germany, Angola, Tanzania, and other countries.

According to statements made in court, between March 2007 and March 2011, Osorio offered and sold shareholder interests and joint-venture partnerships in Innovida to select individuals and groups, raising more than $40,000,000 from approximately ten (10) investors and investment groups in the United States and abroad. Osorio solicited and recruited investors by making materially false representations and concealing and omitting material facts regarding, among other things, the profitability of the company, the rates of return on investment funds, the use of investors’ funds and the existence of a pending lucrative contract with a third-party entity. Osorio received moneys from investors based on these misrepresentations. Osorio used investor monies for his and his co-conspirators’ personal benefit and to maintain and further the fraud scheme.

According to statements made in court, the second conspiracy to commit wire fraud related to a $10,000,000 loan that Osorio and another applied for and obtained a from the Overseas Private Investment Corporation (“OPIC”), a U.S. government agency that promotes U.S. government investments abroad to foster the development and growth of free markets. The purported purpose of the loan was to build a manufacturing facility and 500 homes in Haiti (“the Haiti project”) for displaced families in the aftermath of the January 2010 earthquake. Osorio and others made materially false representations and omissions concerning, among other things, the profitability of Innovida, the purported use of the loan proceeds, an equity contribution to be made by Innovida, and contracts that Innovida purportedly had obtained with third-party vendors. Osorio used the OPIC loan proceeds to repay investors and for his and his co-conspirators’ personal benefit and to further the fraud scheme.

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

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that James C. Howard, III, 53, of Parkland, FL, the founder of Commodities Online LLC (COL), pled guilty yesterday for his participation in a $21 million investment fraud scheme.

Howard pled guilty before U.S. District Judge Ursula Ungaro to one count of conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 1349. Sentencing is scheduled for December 2, 2013.

According to court documents, Howard conspired with co-defendants Patricia S. Saa, Louis N. Gallo, III, and Michael R. Casey to defraud individuals who invested in COL. From approximately January 2010 through April 2011, Howard and his co-conspirators used material false and fraudulent representations and material omissions to obtain over $21 million from over 700 investors.

According to court documents, Howard and his co-conspirators used COL to sell COL ownership units, subscriptions to the COL website, and investments in purported transactions to buy and sell commodities. After receiving the funds for the COL ownership units, Howard and Saa diverted a large part of those funds for other purposes. In addition to selling COL ownership units, Howard and his co-conspirators caused certain purported “pre-sold” commodities contracts to be offered for investment via the COL website, stating a pre-determined percentage return on investment and the number of days by when investors would be paid. Howard and his co-conspirators also 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, Howard and his co-conspirators also made material misrepresentations and omissions about the leaders of COL. After mid-2010, Howard and his co-conspirators represented that Howard was no longer President of COL and that co-defendant Casey, an attorney, was the President of COL. Howard and his co-conspirators represented that Howard was no longer managing COL, when in fact, Howard remained in charge. Also, Howard and his co-conspirators did not disclose to investors that both Howard and co-defendant Gallo had previously been convicted of federal felonies and that Gallo was still serving a term of supervised release.

Mr. Ferrer commended the investigative efforts of the FBI. This case is 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, United States Attorney for the Southern District of Florida, and Michael J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that defendant Maria Garcia, 33, of Okeechobee County, pled guilty today to charges of aiding and assisting the preparation and presentation of false tax returns, in violation of Title 26, United States Code, Section 7206(2).

Sentencing is scheduled for December 16, 2013, before U.S. District Judge Donald Graham in Fort Pierce, Florida. At sentencing, Garcia faces a possible maximum statutory sentence of up to three (3) years in prison.

According to statements made in open court and documents filed in the case, Garcia prepared multiple fraudulent tax returns for customers from January 2008 through May 2013, first while working for other tax preparers and then in her own tax preparation business. She prepared the returns, supplied false income and deduction figures, failed to review them in detail with the taxpayers, and then electronically filed them for those taxpayers.

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

Three executives of Hollywood Pavilion LLC (HP), an inpatient psychiatric hospital located in Broward County, Fla., were sentenced today for their roles in a $67 million Medicare fraud scheme.

U.S. Attorney Wilfredo 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. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigation’s Miami office made the announcement.

Karen Kallen-Zury, 60, of Lighthouse Point, Fla.; Daisy Miller, 44, of Hollywood, Fla.; and Christian Coloma, 50, of Miami Beach, Fla., were sentenced by U.S. District Judge Jose E. Martinez in the Southern District of Florida. Kallen-Zury was sentenced to serve 25 years in prison; Miller was sentenced to 15 years in prison; and Coloma was sentenced to 12 years in prison. In addition to their prison terms, Kallen-Zury and Miller were ordered to pay more than $39 million in restitution, jointly and severally with certain co-defendants. Coloma was ordered to pay more than $20 million in restitution, jointly and severally with certain co-defendants. The sentencing hearing for Michele Petrie, another convicted executive of HP, is scheduled for Dec. 18, 2013.

On June 28, 2013, Kallen-Zury and Miller were found guilty of one count of conspiracy to commit wire fraud and health care fraud, five substantive counts of wire fraud and two substantive counts of health care fraud. Coloma was convicted of one count of conspiracy to pay bribes in connection with Medicare. Kallen-Zury and Coloma were also convicted on five substantive counts of paying bribes.

“Health care fraud is a devastating crime that threatens the strength and integrity of our health care system,” said U.S. Attorney Ferrer. “As I have previously stated, we remain steadfast in our efforts to protect Medicare from fraud and abuse for those who need it – the sick, the elderly and the poor. Today’s sentencing should send a strong, clear message to anyone seeking to defraud Medicare: You will get caught and you will be brought to justice.”

“These defendants from Hollywood Pavilion who were sentenced today are the first executives from a licensed state hospital prosecuted by the Medicare Fraud Strike Force,” said Acting Assistant Attorney General Raman. “They abused the public’s trust by deliberately targeting disabled substance abusers and conning them into spending weeks locked down at a psychiatric hospital. Their conduct proves that healthcare fraud is not only about harm to the public fisc – it is about real harm to individuals in need of medical care. Thanks to the hard work of the Strike Force, the nine-year, $67 million scheme was discovered, the hospital was shut down, and the executives will now spend as much as 25 years in prison.”

“Bribes, kickbacks and false claims are words that have no place in America’s health care lexicon, yet the greed of these executives developed into an elaborate $67 million health care fraud scheme that involved these very terms,” said FBI Special Agent in Charge Steinbach. “Ultimately, health care fraud robs from the elderly and disabled. The FBI and its partners will continue to pursue those individuals who pay kickbacks and fraudulently bill for medical services that are not necessary or ever provided.”

Evidence at trial demonstrated that the defendants and their co-conspirators caused the submission of false and fraudulent claims to Medicare through HP, a state-licensed psychiatric hospital located in Hollywood that purportedly provided, among other things, inpatient psychiatric care and intensive outpatient psychiatric care. The defendants paid illegal bribes and kickbacks to patient brokers to obtain Medicare beneficiaries as patients at HP who did not qualify for psychiatric treatment. The defendants then submitted claims to Medicare for those patients who were procured through bribes and kickbacks.

According to evidence at trial, Kallen-Zury, the CEO and registered agent of HP, attempted to conceal the payment of bribes and kickbacks by creating false documents to make it appear as if legitimate services were being rendered. Miller, the clinical director of HP’s inpatient facility, and Petrie, the head of HP’s intensive outpatient program, facilitated the payment of bribes to patient recruiters and oversaw the fraudulent admissions and treatment of unqualified patients. Coloma, the director of physical therapy for an entity associated with HP, facilitated the payment of bribes and kickbacks, and he supervised the creation of false documents to conceal the bribery scheme.

From at least 2003 through at least August 2012, HP billed Medicare nearly $70 million for services that were not properly rendered, for patients that did not qualify for the services being billed and for claims for patients who were procured through bribes and kickbacks.

This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. The case was prosecuted by Trial Attorneys Robert Zink, Andrew Warren and Anne McNamara of the Criminal Division’s Fraud Section, with assistance from Assistant U.S. Attorney Timothy Abraham of the Southern District of Florida.

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

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Anthony Andreozzi, of Delray Beach, was charged in a one count Information with conspiring to defraud the lawful functions of the Internal Revenue Service (IRS), in violation of Title 18, United States Code, Section 371. Defendant Andreozzi made his initial appearance in federal court today before U.S. Magistrate Judge Dave Lee Brannon.

According to the charges, Andreozzi owned and operated F & A Concepts, Inc. and Galaxy Communications, Inc., which were adult entertainment businesses incorporated in the State of Florida. Andreozzi conspired with another to unlawfully enrich himself by engaging in a fraudulent scheme to evade the payment of federal income taxes. As alleged in the Information, Andreozzi diverted corporate receipts of both corporations for his own personal use. In order to conceal his diversion of corporate funds, Andreozzi instructed his co-conspirator to falsify the corporate books and records by classifying his personal expenditures as business expenses. Defendant Andreozzi and his co-conspirator caused the preparation and filing of false corporate tax returns for F & A Concepts, Inc. and Galaxy Communications, Inc. and false personal income tax returns for defendant Andreozzi for 2006, 2007, 2008 and 2009, in that the corporate returns included fraudulent business expenses and the personal returns failed to include the diverted corporate income, thereby understating the defendant’s total income and tax due and owing on his personal returns.

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

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

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

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Robert J. Vitale, 42, of Ft. Lauderdale-by-the-Sea, Florida, was sentenced today to 24 months imprisonment, a $50,000 fine, and three-years supervised release by U.S. District Judge Joan A. Lenard. Vitale was convicted of obstruction of proceedings and providing false testimony before the U.S. Securities and Exchange Commission (SEC).

According to court documents, in or around May 2012, the SEC was conducting an official investigation into allegations that Vitale engaged in violation of the securities laws. As part of the investigation, the SEC attempted to identify assets and bank accounts attributable to Vitale. On or about June 4, 2012, Vitale completed and provided to the SEC, a “Background Questionnaire” form purporting to list bank accounts and other assets attributable to him. Shortly before completing the questionnaire, Vitale transferred $100,000 from an account that was disclosed on the form, to a separate account that he controlled.

According to court documents, Vitale willfully failed to disclose the existence of the funds or the bank account holding the funds, to the SEC. Thereafter, on June 5, 2012, Vitale provided sworn testimony to the SEC at the SEC’s Southeast Regional Offices, in Miami, Florida. During this sworn testimony, Vitale provided false testimony about his assets and accounts, as well as the accuracy of the information provided on the form he had submitted to the SEC.

Previously, in an unrelated matter, Vitale was charged civilly with violating securities laws in 2004, and was the subject of Final Judgment in SEC v. Robert Vitale, et al., No. 04-60493 (the “2004 Case”), in which he was ordered to pay disgorgement and civil penalties for violations of the federal securities laws. According to court records, as of June 2012, when he provided false sworn testimony and engaged in conduct designed to conceal his assets, Vitale had failed to satisfy his obligations from the 2004 Case.

In addition to the sentence of 24-months imprisonment and $50,000 fine, during the defendant’s three-year supervised release term, he was ordered to have no involvement in the securities or real estate industries, and no involvement in any investment business absent court permission.

Mr. Ferrer commended the investigative efforts of the FBI and the SEC. 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.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Mark R. Trouville, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (ICE-HSI), announce the indictment of several individuals for their alleged participation in a drug trafficking conspiracy. The defendants were arrested on September 4, 2013 and made their initial appearances yesterday in federal court.

Charged in the eight-count Indictment are the following individuals:

Jose Alberto Ontivero Monte de Oca, aka “Pariente,” aka “El Viejo,” aka “Papito,” 54, of Hialeah, Florida; Pedro Farach, 45, of Hialeah, Florida; Jaime Maldonado Ramos, aka “Oggie,” 46, of Homestead, Florida; Jose Alfredo Villarreal, aka “Alfredito,” 40, of Naples, Florida; Roberto Perez, aka “Rodo,” 46, of Pembroke Pines, Florida; Juan Enrique Martinez, 50, of Miami, Florida; Alberto Arregoitia Lorenzo, aka “Lorenzo Arregoitia,” 61, of Miami, Florida; Miguel Angel Desdin, aka “Miguelon,” 59, of Hialeah, Florida; Vladimir Mir-Medina, aka “Vladimir Medina,” aka “Vladimir Mir,” 50, of Miami, Florida; Miguel Cruz, 49, of Hialeah, Florida; Manuel Bautista Alvarez, 53, of Miami, Florida; Hernan Rodriguez Alfaro, aka “Iran,” 40, of Cutler Bay, Florida; and
Rafael Luis Ramos Lopez, aka “Lou,” 46, of Miami, Florida.

The indictment, filed on August 23, 2013, and unsealed yesterday, charges the defendants with conspiracy to possess with intent to distribute over five kilograms of cocaine and distribution and/or possession with intent to distribute cocaine, in violation of Title 21, United States Code, Sections 841(a)(1) and 846. If convicted, the defendants each face a mandatory minimum sentence of 10 years in prison and a possible statutory maximum sentence of life. Jaime Maldonado Ramos, who is also charged with firearms offenses in violation of Title 18, United States Code, Sections 922(g)(1) and 924(c), faces an additional mandatory minimum sentence of five years in prison and a possible statutory maximum sentence of life.

This case is a result of the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.

Mr. Ferrer commended the investigative efforts of the DEA, ATF and ICE-HSI. Mr. Ferrer also commended the U.S. Marshals Service, the Miami-Dade Police Department, the Coral Gables Police Department, the Hialeah Police Department, the Homestead Police Department and the West Miami Police Department for their assistance in this investigation. The case is being prosecuted by Assistant U.S. Attorney Elisa Castrolugo.

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

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, Vernot Foret, Director Field Operations, U.S. Customs and Border Protection (CBP), Miami Field Office, and Richard M. Blom, Chief, Doral Police Department, announce the arrest of defendant Francisco Mario Ormachea Aliaga, 42, of Bolivia, on a criminal complaint charging him with traveling in interstate commerce with the intent to promote, manage, establish, carry on, and facilitate an unlawful activity, that is, extortion, in violation of Florida Statute section 836.05, and Title 18, United States Code, Section 1951(a), and thereafter performing and attempting to perform an act to promote, manage, establish and carry on, and to facilitate the promotion, management, establishment, and carrying on of such unlawful activity, in violation of Title 18, United States Code, Section 1952(a)(3). Ormachea made an initial appearance before U.S. Magistrate Judge Barry L. Garber on Tuesday, September 3, 2013, and is scheduled to be arraigned on September 17, 2013.

According to the allegations in the complaint, the FBI was contacted by a Bolivian businessman with initials “H.R.” on August 29, 2013. H.R. told the FBI that someone who identified himself as “the Colonel” had contacted H.R. to request a meeting in the United States. Subsequent investigation revealed that the caller, who had referred to himself as “the Colonel,” was Ormachea.

On August 29, 2013, Ormachea departed La Paz, Bolivia on a commercial flight to Lima, Peru, and then flew on another commercial flight to Miami International Airport. At Miami International Airport, Ormachea presented a valid Bolivian passport containing a valid United States tourist visa to United States Customs and Border Protection, who admitted him into the United States.

On August 30, 2013, H.R. met with Ormachea. The FBI monitored and recorded this meeting. During the meeting, Ormachea discussed the issues surrounding the criminal case against H.R. in Bolivia. Ormachea offered to dispose of the criminal charges pending against H.R. in Bolivia for a fee of $30,000. Ormachea agreed to take a payment of $10,000 immediately and receive the remainder of the payment later.

On Saturday, August 31, 2013, H.R. met with Ormachea again. The FBI monitored and recorded this meeting. During the course of the meeting, Ormachea stated that, in exchange for $30,000, he would drop the charges against H.R. and charge someone else instead. If, however, H.R. did not pay, Ormachea said that he would pursue H.R.’s arrest in the United States, extradition to Bolivia, and prosecution there. H.R. gave Ormachea $5,000 in previously-recorded bills as an initial payment towards the $30,000 required to resolve the charges against him. After the meeting, Ormachea departed by car.

FBI surveillance teams in coordination with local law enforcement conducted a traffic stop of Ormachea shortly thereafter. Ormachea was detained and $5,000 was recovered from his person. A review of the seized U.S. currency revealed that it matched the previously recorded bills.

Law enforcement officials interviewed Ormachea at the Miami Field Office of the FBI. After receiving and waiving his Miranda warnings in writing, Ormachea acknowledged meeting with H.R. on two occasions but denied attempting to extort H.R. Ormachea acknowledged that he is a member of the Bolivian National Police Corps, but stated that he was not traveling in his official capacity as a diplomat of Bolivia.

Mr. Ferrer commended investigative efforts of the FBI, ATF, CBP and the Doral Police Department. This case is being handled by Assistant U.S. Attorneys John Byrne and Jaime Raich.

A complaint is merely 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.

The owners and operators of several Miami home health care agencies and a patient recruiter pleaded guilty today in connection with a health care fraud scheme involving defunct home health care company Trust Care Health Services Inc. (Trust Care).

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; 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 Investigations Miami office; and Acting Special Agent in Charge Michael J. DePalma of the Internal Revenue Service—Criminal Investigation’s (IRS-CI) Miami Field Office made the announcement.

Roberto Marrero, 60; Sandra Fernandez Viera, 49; and Enrique Rodriguez, 59, all of Miami, pleaded guilty before U.S. Magistrate Judge Edwin G. Torres in the Southern District of Florida to conspiracy to commit health care fraud and conspiracy to receive and pay health care kickbacks.

Marrero and Fernandez Viera were owners and operators of Trust Care, a Miami home health care agency that purported to provide home health and physical therapy services to Medicare beneficiaries. Rodriguez worked as a patient recruiter on behalf of Trust Care and Marrero and Fernandez Viera.

According to court documents, Marrero and Fernandez Viera operated Trust Care for the purpose of billing the Medicare Program for, among other things, expensive physical therapy and home health care services that were not medically necessary and/or were not provided.

Marrero largely controlled Trust Care and, in light of that role, oversaw the schemes operating out of the company. Fernandez Viera’s primary role, among others, involved managing and supervising personnel at Trust Care. Both Marrero and Fernandez Viera were responsible for negotiating and paying kickbacks and bribes, interacting with patient recruiters, and coordinating and overseeing the submission of fraudulent claims submitted to the Medicare program.

Marrero, Fernandez Viera and their co-conspirators paid kickbacks and bribes to patient recruiters, including Rodriguez, in return for the recruiters providing patients to Trust Care for home health and therapy services that were medically unnecessary and/or not provided. Marrero, Fernandez Viera and their co-conspirators at Trust Care also paid kickbacks and bribes to co-conspirators in doctors’ offices and clinics in exchange for home health and therapy prescriptions, medical certifications and other documentation. Marrero, Fernandez Viera and their co-conspirators used these prescriptions, medical certifications and other documentation to fraudulently bill the Medicare program for home health care services, which Marrero and Fernandez Viera knew was in violation of federal criminal laws.

Rodriguez offered and paid kickbacks and bribes to Medicare beneficiaries in return for those beneficiaries allowing Trust Care to bill Medicare for services that were medically unnecessary and/or not provided. Rodriguez solicited and received kickbacks and bribes from the owners and operators of Trust Care, including Marrero and Fernandez Viera, in return for his patient recruiting. Rodriguez knew that in many instances the patients he recruited for Trust Care did not qualify for the services billed to Medicare.

From approximately March 2007 through at least October 2010, Trust Care submitted more than $20 million in claims for home health services. Medicare paid Trust Care more than $15 million for these fraudulent claims.

Marrero, Fernandez Viera and Rodriguez also acknowledged their involvement in similar fraudulent schemes at several other Miami health care agencies in addition to Trust Care with estimated total losses of approximately $50 million, including Global Nursing Home Health Inc., Lovable Home Health Services Corp., New Concepts In Health Inc., Ubieta Health System Inc., R&M Health Care Inc., Vital Care Home Health Services Inc., Centrum Home Health Care Inc. and A&B Health Services Inc.

At sentencing, scheduled for Nov. 12, 2013, the defendants face a maximum penalty of 10 years in prison for conspiracy to commit health care fraud and five years in prison for conspiracy to receive and pay health care kickbacks.

The case was investigated by the FBI and HHS-OIG, with the assistance of IRS-CI, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case was prosecuted by Trial Attorney A. Brendan Stewart of the Criminal Division’s Fraud Section.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

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

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and David Pharo, Resident Agent in Charge, U.S. Fish and Wildlife Service (USFWS), Office of Law Enforcement (OLE), announce that on September 4, 2013, Jose Valladares, 56, of Miami, pled guilty to charges of taking migratory birds and unlawful possession of a firearm. Valladares was sentenced immediately following his guilty plea by U.S. District Judge Kathleen M. Williams to one year probation and a $125 special assessment.

According to Court documents and statements at the hearing, Valladares established a bird trap on his property which captured a turkey vulture (Cathartes aura), a species of migratory bird protected pursuant to the convention between the United States of America and the then existing Union of Soviet Socialist Republics concerning the conservation of migratory birds and their environment. The case also involved the capture and possession of three painted buntings (Passerina ciris), and four indigo buntings (Passerina cyanea).

During the operation to recover the painted and indigo buntings, Valladares was found to be in possession of a firearm and ammunition. Valladares was prohibited from possessing the same pursuant to a court order issued on or about January 22, 2004, by the Eleventh Judicial Circuit in Miami-Dade County.

Mr. Ferrer commended the investigative efforts of USFWS-OLE and ATF. This case is being prosecuted by Assistant U.S. Attorneys Norman O. Hemming, III and Antonia Barnes.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at 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, Michael J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Drew J. Breakspear, Commissioner, Florida’s Office of Financial Regulation, announced the return of a 27-count indictment charging Joseph Paul Zada, 55, of Grosse Pointe Shores, Michigan, with mail fraud, wire fraud, interstate transportation of stolen property, and money laundering in connection with an investment fraud scheme.

According to the indictment, in order to attract investors to his fraudulent scheme, Zada projected an image of great wealth, portraying himself as a successful businessman and investor with connections to Saudi Arabian oil ventures. In this regard, Zada hosted extravagant parties, drove expensive luxury vehicles, and maintained expensive homes in Wellington, Florida and Grosse Pointe, Michigan. The indictment alleges that Zada told investors that he would invest their monies in oil related ventures. Instead of being used to invest in oil ventures, the investor monies were used to support Zada’s lavish lifestyle and to make purported returns on investments to prior investors. According to the indictment, Zada caused over twenty investors to invest over $20 million in his fraudulent scheme.

If convicted, Zada faces a statutory maximum penalty of 20 years in prison for each count of mail fraud and wire fraud, and a statutory maximum of 10 years in prison for each count of interstate transportation of stolen property and money laundering.

Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI and the Florida Office of Financial Regulation. The case is being prosecuted by Assistant U.S. Attorney Rolando Garcia.

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.