Jury Convicts Synthetic Cannabinoid Distributor

Republished by Daniel Lenghea, Esq.,a private Federal Criminal Defense Attorney in Miami from the news feed of The U.S. Attorney’s Office for the Southern District of Florida.  www.lenghea.com

Ronen Nahmani, 41, of Aventura, Florida was convicted by a jury of conspiracy to possess with intent to distribute controlled substances and controlled substance analogues, namely, synthetic cannabinoids, in violation of Title 21, United States Code, Section 846.  Nahmani is scheduled to be sentenced before Chief Judge Michael Moore on October 8, 2015 at 2:00 p.m.

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

Like all other illegal drugs, synthetic cannabinoids, also commonly known as “Spice” or “K2,” pose a nationwide health concern as they are not tested for safety.  Clandestine manufacturing of these products increase the likelihood of overdose as users do not know what they are ingesting into their bodies.  Synthetic cannabinoids are addictive, are extremely dangerous, and their effects can be life threatening.  Since the beginning of 2015, synthetic cannabinoids accounted for thousands of reported exposures to poison at control centers nationwide.  Because of their appeal to young adults and children, and their street costs, synthetic cannabinoids pose a growing risk to the public’s health and a hazard to public safety.

Nahmani’s conviction is the product of a long-term federal investigation into the importation and trafficking of synthetic cannabinoids.  The investigation revealed that Nahmani purchased vast quantities of illegal chemicals from China and distributed those chemicals in Florida and across the country.  The powdery chemicals shipped from China were turned into both leafy and liquid synthetic cannabinoid products that can be ingested by users.

In July 2014, Nahmani was found in possession of multi-kilogram quantities of synthetic cannabinoids, including AB-FUBINACA, PB-22, XLR-11, THJ-2201, 5-Cl-UR-144 and 5-Br-UR-144, as well as the equipment necessary to manufacture the synthetic products and packaging with labels such as “Scooby Snax,” “Diablo” “Platinum” and “Fire.”  Spice and K2 are commonly sold in such packaging and often contain deceptive labeling that the product is “incense” and “not for human consumption” to thwart law enforcement detection.  Some of the chemicals were not specifically listed under the Controlled Substances Act at the time of the offense conduct, but the government proved that they were controlled substance analogues intended for human consumption under the Controlled Substance Analogue Enforcement Act.  The defendant is pending sentencing.

Mr. Ferrer commends the investigative efforts of DEA, working in conjunction with the Broward County Sheriff’s Office, Coconut Creek Police Department (PD), Coral Springs PD, Davie PD, Hollywood PD, North Miami Beach PD, and Miami-Dade PD, and the support from DEA Office of Diversion Control Drug & Chemical Evaluation Section and DEA Office of Chief Counsel.

The case was prosecuted by Assistant U.S. Attorneys Marton Gyires and Jonathan Kobrinski.

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 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 www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

Martin County Resident Sentenced for Manufacturing Hash Oil in His Apartment Laboratory and Possessing a Firearm

Republished by Daniel Lenghea, Esq.,a private Federal Criminal Defense Attorney in Miami from the news feed of The U.S. Attorney’s Office for the Southern District of Florida.  www.lenghea.com

A Martin County resident was sentenced to 90 months in prison for manufacturing hash oil in his apartment laboratory and possessing a firearm.

Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Office, A.D. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, William D. Snyder, Sheriff, Martin County Sheriff’s Office, and David Dyess, Chief, Stuart Police Department, made the announcement.

Daniel Paul Vranich, 31, of Lake Park, was sentenced by United States District Court Judge Kenneth M. Mara, in Fort Pierce, to 30 months’ imprisonment for endangering human life while illegally manufacturing a controlled substance to run consecutive to a term of 60 months’ imprisonment for possession of a firearm in furtherance of a drug trafficking crime.  Upon his release from incarceration, Vranich will be placed on supervised release for three years.

According to the stipulated factual basis in support of the defendant’s previous guilty plea, on December 30, 2014, at approximately 4:00 a.m., an emergency services call was made regarding an explosion at an apartment in Stuart, Florida.  Members of the Stuart Police Department, Martin County Sheriff’s Office, Martin County Fire Rescue, Stuart Fire Rescue and State Fire Marshal’s Office responded to the residence and discovered a smoldering fire, as well as a large industrial vacuum drying oven with a timing device.  Stuart Police Department detectives also found numerous large glass cylinders containing marijuana, numerous empty butane cans, air pumps and compressors, a vacuum oven, wax paper with approximately 48 grams of butane hash oil, a food saver sealing machine, two digital scales, an electric grinder, a money counting machine, a vacuum chamber, and numerous containers and storage bags.  In addition, law enforcement discovered a loaded Sig Sauer .45 caliber pistol and personal documents belonging to Vranich.  DEA agents and members of the Hazardous Material Unit (Hazmat) determined that the discovered chemicals, equipment and other items were used to operate a butane hash oil laboratory in the residence.  The investigation further revealed that Vranich resided in the apartment with his family.

The stipulated factual basis further indicates that Vranich admitted that he was manufacturing and possessing with the intent to distribute the controlled substances, identified as marijuana and hashish oil, and that he possessed the firearm in furtherance of his drug trafficking operation. Vranich also admitted that while manufacturing and attempting to manufacture hashish oil he created a substantial risk of harm to human life.

Hash oil is a highly potent derivative of marijuana, obtained by extracting the resins containing Tetrahydrocannabinol (THC), the active psychoactive compound, from marijuana buds and plant matter through a chemical process using materials and equipment like those found in Vranich’s apartment.  Because the butane vapor created during the process is extremely volatile, highly flammable and large amounts are required in the process of extracting the resin from the raw marijuana, explosions and fires from accidents have resulted in the destruction of property, severe injuries and even death.

Mr. Ferrer commended the investigative efforts of the ATF, DEA, Stuart Police Department, Martin County Sheriff’s Office, Martin County Fire Rescue, Stuart Fire Rescue and the State Fire Marshal’s Office.  This case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.  

A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at 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 www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

Three Real Estate Developers Sentenced to Prison for Their Roles in $27.8 Million Mortgage Fraud Scheme

Republished by Daniel Lenghea, Esq.,a private Federal Criminal Defense Attorney in Miami from the news feed of The U.S. Attorney’s Office for the Southern District of Florida.  www.lenghea.com

Three Miami real estate developers were sentenced to prison terms today for their roles in a mortgage fraud scheme that caused losses of $27.8 million.

U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Nadine Gurley of the Department of Housing and Urban Development’s Office of Inspector General (HUD-OIG) and Special Agent in Charge Timothy A. Mowery of the Federal Housing Finance Agency’s Office of Inspector General (FHFA-OIG) made the announcement.

Stavroula Mendez, 68, was sentenced to 135 months in prison; Lazaro Mendez, 42, was sentenced to 108 months in prison; and Marie Mendez, 49, was sentenced to 57 months in prison.  U.S. District Judge Patricia A. Seitz of the Southern District of Florida also ordered each of the defendants to forfeit $35,252,331 in fraudulent proceeds and to pay $21,240,064 in restitution.  In November 2014, all three defendants were convicted of wire fraud, bank fraud and conspiracy.  Eleven other co-conspirators were previously convicted of fraud in connection with the scheme.  

Stavroula Mendez, Lazaro Mendez and Marie Mendez owned, controlled or managed various condominium developments in the Miami area.  According to evidence presented at trial, the defendants engaged in a scheme in which they facilitated payments to straw buyers as well as the submission of false loan applications on behalf of the straw buyers to secure mortgages to purchase units in the developments.  Once the units were sold, the defendants retained both the profits from the sales and control over the units.

The trial evidence showed that Lazaro Mendez recruited family members and others to be straw buyers of units that he controlled at one development and that he facilitated the submission of false loan applications.  In addition, Lazaro Mendez enlisted mortgage brokers and another individual to recruit straw buyers and to assist them in obtaining fraudulent loans.  Lazaro Mendez received kickbacks for each referred buyer.

The evidence at trial demonstrated that, after units were sold at a development that Stavroula Mendez and her husband controlled, Stavroula Mendez funneled a portion of the loan proceeds to shell companies to pay the straw buyers’ closing cash obligations and mortgage payments.  The evidence presented at trial further established that, in 2008 and 2009, Stavroula Mendez used other shell companies to divert more than $2 million of the fraudulent proceeds to bank accounts in Switzerland and Liechtenstein.

According to the evidence presented at trial, Marie Mendez used rental payments received by the conspirators to make mortgage payments, and directed cash to another individual to make mortgage payments on behalf of straw buyers.  The evidence also showed that Marie Mendez submitted fraudulent loan applications for three condominium units that were purchased in her name.

Eventually, the defendants and their co-conspirators were unable to make mortgage payments, which caused dozens of condominium units to go into foreclosure.  The scheme caused the Federal Housing Administration, Freddie Mac, Fannie Mae and private lenders to sustain combined losses of $27.8 million.

The case was investigated by the HUD-OIG and the FHFA-OIG.  The case was prosecuted by Trial Attorneys Gary A. Winters, Brian R. Young and Kyle Maurer of the Criminal Division’s Fraud Section.          

A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at 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 www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

Miami Gardens Resident Pleads Guilty in Stolen Identity Tax Refund Fraud Scheme Involving Identities from the Florida Department of Children and Families Database

Republished by Daniel Lenghea, Esq.,a private Federal Criminal Defense Attorney in Miami from the news feed of The U.S. Attorney’s Office for the Southern District of Florida.  www.lenghea.com

A Miami Gardens resident pled guilty today in a stolen identity tax refund fraud scheme involving personal identification information taken from the State of Florida Department of Children and Families database.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Neil Melofchik, Acting Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, made the announcement.

Kyron Jonathan Nedd, 22, of Miami Gardens, pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title l8, United States Codes Section 1028A(a)(1).

According to court documents, between February 1, 2014, and July 18, 2014, a total of 379 fraudulent federal income tax returns, for tax year 2013, were filed with the IRS from Nedd’s residence in Miami Gardens.  The returns claimed $843,295 in tax refunds.  The IRS refunded approximately $64,557 for those fraudulently filed tax returns.

Court documents state that on February 12, 2015, a federal search warrant was executed at Nedd’s residence, where agents discovered items containing personal identification information (PII) - names, dates of birth and social security numbers - of hundreds of individuals.  Inside Nedd’s bedroom, law enforcement found a safe with numerous debit cards and computer-generated printouts from the State of Florida Department of Children and Families (DCF) database.  IRS-CI agents have since determined that there were numerous instances in which the PII contained on the DCF printouts were used in fraudulent returns filed from Nedd’s residence.

According to court documents, federal law enforcement agents interviewed Nedd after serving the federal search warrant.  Nedd admitted to law enforcement that he electronically filed the income tax returns from his house and that the returns were false and prepared without the taxpayers’ permission.

Nedd is scheduled to be sentenced on September 2, 2015 at 8:30 a.m., before the Honorable Robert N. Scola, Jr., United States District Judge.  At sentencing, the defendant faces a maximum of ten years of imprisonment for the access devices charge, and a mandatory term of two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charge.

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

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 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 www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov

Former CEO Pleads Guilty to Bribery and Fraud Scheme Involving Red Light Camera Contracts

Republished by Daniel Lenghea, Esq.,a private Federal Criminal Defense Attorney in Miami from the news feed of The U.S. Attorney’s Office for the Southern District of Florida. daniel-lenghea www.lenghea.com

A former chief executive officer of a red light camera vendor pleaded guilty today to participating in an eight-year bribery and fraud scheme, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Carter M. Stewart of the Southern District of Ohio and Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Field Office.

Karen L. Finley, 55, of Cave Creek, Arizona, pleaded guilty before U.S. Magistrate Judge Terence P. Kemp of the Southern District of Ohio to a one-count information charging her with conspiracy to commit federal programs bribery and honest services wire and mail fraud.  Finley’s sentencing hearing will be scheduled at a later date.

From December 2005 to February 2013, Finley served as CEO of a red light camera enforcement company.  As part of her plea agreement, Finley admitted that, between 2005 and 2013, she participated in a scheme in which the company made campaign contributions to elected public officials in the cities of Columbus and Cincinnati through a consultant retained by the company.  According to admissions made in connection with her plea, Finley and others, including another executive of the company, agreed to provide the conduit campaign contributions with the understanding that the elected public officials would assist the company in obtaining or retaining municipal contracts, including a photo red light enforcement contract with the City of Columbus.  Finley also admitted she and her co-conspirators concealed the true nature and source of the payments by the consultant’s submission and the company’s payment of false invoices for “consulting services,” which funds the consultant then provided to the campaigns of the elected public officials.

The case was investigated by the FBI’s Cincinnati Field Office, Columbus Resident Agency, with the assistance of IRS-Criminal Investigations and the Ohio Bureau of Criminal Investigation.  The case is being prosecuted by Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney J. Michael Marous of the Southern District of Ohio.

Many thanks to Oliver Benson for this beautiful article about me in Florida Mea, one of the most informative blogs for the Romanian Community  www.floridamea.info !

Miami-Dade Police Officer Indicted on Fraud Charges

Republished by Daniel Lenghea, Esq.,a private Federal Criminal Defense Attorney in Miami from the news feed of The U.S. Attorney’s Office for the Southern District of Florida. daniel-lenghea www.lenghea.com

A second Miami-Dade Police Department officer was arrested for participating in a fraud scheme arising out of the operation of a series of credit repair businesses.

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

Miami-Dade Police Officer George Price, 42, and Fatima Ruiz, a/k/a “Fatima Cabana,” 45, both of Miami-Dade, made their initial appearances on a superseding indictment yesterday before Magistrate Judge Andrea M. Simonton.  Price and Ruiz are both charged by indictment with conspiracy to commit wire fraud, wire fraud, conspiracy to commit mail fraud, and mail fraud, in violation of Title 18, United States Code, Sections 1341, 1343, and 1349, offenses punishable by up to twenty years in prison. A third defendant named in the indictment, Miami-Dade Police Officer Rafael Duran, was previously arrested on April 2, 2015.

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

The superseding indictment further alleges that while working at the credit businesses, Ruiz would provide funds to a co-conspirator who acted as an intermediary between Price and the companies.  The intermediary in turn would pay Price for his participation in the scheme.  According to the superseding indictment, Ruiz would also allegedly transmit to the credit reporting agencies letters claiming that customers of the credit businesses had been victims of identity theft.  Ruiz would include false police reports to support the claims made in these letters.

The superseding indictment also alleges that Ruiz conducted a similar scheme while operating her own separate credit repair business.  According the superseding indictment, Ruiz would try to repair customer credit by sending letters to the credit reporting agencies claiming that her customers had been victims of identity theft.  Ruiz would include false police reports created by Price along with the letters.

U.S. Attorney Wifredo A. Ferrer stated, “This indictment demonstrates that individuals who facilitate the sale of false police reports will be prosecuted accordingly because their fraudulent conduct undermines the public’s trust in the integrity of our law enforcement community.”

“Law enforcement officers are entrusted with a great deal of responsibility and authority and therefore must be held to a high standard,” said George L. Piro, Special Agent in Charge, FBI Miami.  “Unfortunately, the actions of a very few corrupt officers undercuts the public’s trust and they must be rooted out.  The FBI’s Miami Area Corruption Task Force was assembled and designed to do just that.”

“The Miami-Dade Police Department is committed to upholding the community's trust. Integrity is the hallmark of the Department, and we will continue to work in collaboration with our law enforcement partners to ensure that those who violate that trust are held accountable,” said MDPD Director J.D. Patterson.

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