Source: United States Attorneys General

Headline: Florida-Based School Chain To Pay United States Government $600,000 For Submitting False Claims For Federal Student Financial Aid

Florida Technical College, Inc. (“FTC”) will pay the United States $600,000 to resolve False Claims Act allegations that FTC’s Cutler Bay Campus (“FTC-Cutler Bay”) falsely certified compliance with federal student aid programs’ eligibility requirements and submitted claims for 27 ineligible students.

Benjamin G. Green, United States Attorney for the Southern District of Florida, made the announcement.

Title IV of the Higher Education Act of 1965 (“HEA”), as amended, 20 U.S.C. §§ 1070 et seq. (“Title IV, HEA Programs”), authorizes federal student aid programs. The Title IV, HEA Programs, administered by the United States Department of Education, provide students with financial aid in the form of, among other things, Federal Pell Grants and Federal Direct Loans.

“Federal financial aid is meant to help qualified students obtain a quality education from an eligible institution, and we are committed to ensure colleges comply with the rules to make certain that federal financial aid is provided to those individuals it is meant to assist,” said U.S. Attorney Benjamin G. Greenberg.

The United States alleged that certain FTC-Cutler Bay employees engaged in fraudulent practices to induce students to enroll in the school. As a result of those admissions personnel, FTC submitted to the U.S. Department of Education false information regarding the eligibility of 27 FTC-Cutler Bay students to receive Title IV, HEA Program funds. Specifically, FTC-Cutler Bay employees provided false documentation that the students had a high school diploma or its recognized equivalent from a qualified secondary school, when the those students did not have such credential.

In providing such false documentation, FTC-Cutler Bay’s enrollment numbers were falsely increased, and consequently, the amount of federal dollars the school received also increased at the expense of taxpayers and students, who incurred long-term debt. FTC cooperated in the investigation and FTC no longer employs the admissions personnel or their managers involved.

The lawsuit was filed on March 8, 2016, by Laurie Astacio, a former administrative assistant in the FTC-Cutler Bay admissions office. She filed the complaint under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government and receive a share of any recovery. The Act also authorizes the government to intervene in and assume primary responsibility for litigating the lawsuit.

“The Office of Inspector General has a unique and special law enforcement mission – to protect public education funds for eligible students. Today’s settlement is an example of our commitment to this mission,” said Neil Sanchez, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Southern Regional Office. “The OIG will continue to pursue allegations of violations of the False Claims Act in carrying out our important public service.”

This matter was investigated and the settlement negotiated by Assistant U.S. Attorney James A. Weinkle.  The case is captioned U.S. ex rel. Laurie Astacio v. Florida Technical College, Inc., Case No.: 16-20842-CIV-Seitz (S.D. Fla.). The claims settled by this agreement are allegations only, and there has been no determination of liability.

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.

Source: United States Attorneys General

Headline: Clearwater Property Manager Pleads Guilty To Equity Skimming And Bankruptcy Fraud Charges

Tampa, Florida – United States Attorney Maria Chapa Lopez announces that Michael Rubino (59, Clearwater) today pleaded guilty to a criminal information charging him with one count of equity skimming and one count of bankruptcy fraud.  He faces a maximum penalty of five years in federal prison for each count. A sentencing date has not yet been set.

According to the plea agreement, Rubino devised a scheme to defraud mortgage lenders holding recorded mortgage notes, as well as the Federal National Mortgage Association (“Fannie Mae”) and the Federal Housing Agency (“FHA”), which guaranteed the mortgage notes. In furtherance of his scheme, Rubino searched the Pinellas County Clerk of Court records to find properties in various stages of foreclosure. He then contacted distressed homeowners who had already defaulted on their mortgages and vacated their properties. Rubino offered to take control of, manage, and rent the properties to new tenants. Rubino told the homeowners that he would use the rental income he obtained to pay the mortgages and, in some instances, pay the homeowner a portion of the rent he collected. At no time did Rubino hold any legal or equitable interest in these properties, or have authorization from the mortgage lenders, Fannie Mae, or FHA, to rent out the properties. Further, he failed to remit any of the collected rent monies to FHA, as required by law. 

Additionally, in order to prevent Fannie Mae and the mortgage lenders from lawfully foreclosing on properties secured by mortgage notes, Rubino engaged in a bankruptcy fraud scheme whereby he filed fraudulent bankruptcy petitions in the names of the distressed homeowners, without their knowledge or consent, just prior to the scheduled foreclosure sale. These fraudulent bankruptcies invoked the automatic stay provision of the bankruptcy code, preventing the mortgage note holders from conducting the foreclosure sale. The fraudulent bankruptcy petitions filed by Rubino allowed him to continue to collect rent monies to which he was not entitled.

This case was investigated by the U.S. Department of Housing and Urban Development – Office of Inspector General and the Federal Housing Finance Agency – Office of Inspector General.  It is being prosecuted by Special Assistant United States Attorney Chris Poor.

Source: United States Attorneys General

Headline: Alien Smugglers Sentenced after Rollover Incident that Led to Death

LAREDO, Texas – Two Laredo residents and a Nuevo Laredo man have been sentenced to federal prison for harboring and transporting illegal aliens which resulted in multiple deaths, announced U.S. Attorney Ryan K. Patrick. Four aliens died and another four received severe injuries resulting from a vehicle rollover.

Christina Rosalinda Washington, 31, of Laredo, pleaded guilty Nov. 10, 2016, while Gerardo Lucero-Martinez, 46, also of Laredo, and Raul Arreola-Marron, 50, an undocumented alien from Mexico living in Laredo, pleaded guilty Aug. 23, 2016. 

Today, U.S. District Judge Diana Saldaña ordered Washington, Arreola-Marron and Lucero-Martinez to serve 70, 126 and 71 months, respectively. Arreola-Marron had been on federal supervised release at the time of the offense and was further ordered to serve an additional six months. Washington and Lucero-Martinez will serve five-year-terms of supervised release following their sentences, while Arreola-Marron, not a U.S. citizen, is expected to face deportation proceedings following his release. In handing down the sentences, Judge Saldaña noted that each compounded the tragedy and added to the suffering of the aliens by not calling 911 immediately to report the accident so that medical personnel could attend to the injured.

At the time of their pleas, the three admitted to conspiring to harbor eight aliens in Laredo and transporting them to Houston. Washington managed the aliens at her residence, while Arreola-Marron transported the aliens after their crossing from Mexico to Washington’s residence and provided all transport vehicles. Lucero-Martinez was engaged in transporting the aliens to Houston.

Near midnight on Feb. 17, 2016, near the intersection of Texas Highway 59 and Farm to Market Road 2895, Lucero-Martinez lost control of the pickup truck he was driving. The vehicle flipped and all occupants were thrown from the truck. He telephoned Arreola-Marron and Washington to report the accident and asked Arreola-Marron to come to the scene to pick him up. Lucero-Martinez thereafter telephoned another person to pick him up who drove him to a Laredo hospital. At no time did any of the three defendants attempt to provide or contact authorities to provide medical assistance to the aliens left at the scene. State, local and federal authorities arrived four hours later and provided emergency first aid to the four survivors. 

The defendants have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

Immigration and Customs Enforcement’s Homeland Security Investigations, Border Patrol, Texas Department of Public Safety and the Webb County District Attorney’s Office conducted the investigation. Assistant U.S. Attorney Homero Ramirez prosecuted the case.  

Source: United States Attorneys General

Headline: New Jersey Couple Sentenced For Unsuccessful Bribing Of SEPTA Officials

PHILADELPHIA – Nazik Modawi and Abboud Wali were sentenced to prison for their conspiring to bribe a SEPTA employee. Modawi, who bribed SEPTA employees on two occasions, earned a sentence of one-year imprisonment. Wali, who was involved with one of those bribes, was given a sentence of 6 months’ imprisonment. The Honorable Harvey Bartle III, United States District Judge in the Eastern District of Pennsylvania, remarked that bribing public officials “strikes at the heart of our democracy.”

Modawi and Wali owned and operated companies, called Rides, Inc. and Safe Rides, LLC, that provided transportation services for children and adults with special needs. Modawi and Wali sought a “Disadvantaged Business Enterprise” (DBE) certification from SEPTA in order to obtain various government contracts. To expedite their application, Modawi and Wali gave cash payments to the SEPTA employee.  The total amount of the bribes given to Septa employees were $10,000. The SEPTA employee immediately alerted authorities.

The case was investigated by the Federal Bureau of Investigation, the United States Department of Transportation, Office of Inspector General, and SEPTA Office of the Inspector General.  It was prosecuted by Assistant United States Attorney Denise S. Wolf.

Source: United States Attorneys General

Headline: Mexican National Sentenced for Illegally Reentry

U.S. Attorney Duane A. Evans announced that SALVADOR TENOCO-RODRIGUEZ age 40, a citizen of Mexico, was sentenced after previously pleading guilty to a one-count Bill of Information for illegal reentry of a removed alien after deportation.

Source: United States Attorneys General

Headline: Honduran Man Sentenced to 2 Years for Immigration Offense

United States District Court Judge Kurt D. Engelhardt sentenced LAGOS to the maximum sentence, 2 years, followed by one year of supervised release, a $100 special assessment fee, and a $5,000 fine. The defendant will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings after he completes his sentence.  

According to court documents, on March 21, 2017, LAGOS was found in the United States after having been previously deported from the United States on January 13, 2016.

Source: United States Attorneys General

Headline: New Haven Man Sentenced to 5 Years in Federal Prison for Role in Heroin Trafficking Ring

John H. Durham, United States Attorney for the District of Connecticut, announced that ELVIN PLAZA, also known as “Jordan,” 40, of New Haven, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 60 months of imprisonment, followed by four years of supervised release, for his role in a heroin trafficking ring.

According to court documents and statements made in court, the DEA’s New Haven Tactical Diversion Squad targeted a New Haven-based heroin trafficking organization led by Bienvenido and Antonio Gonzalez.  The investigation, which included court-authorized wiretaps, controlled purchases of narcotics and physical and video surveillance, revealed that the Gonzalez brothers regularly purchased bulk quantities of heroin from suppliers located in the Bronx, New York, and sold the heroin through a network of redistributors, including PLAZA, in New Haven and elsewhere.  PLAZA regularly purchased between 200 and 300 grams of heroin from Bienvenido Gonzalez and then sold the drug to his own customers.

The investigation resulted in federal charges against 24 individuals.

PLAZA was arrested on March 16, 2017.  On November 1, 2017, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and distribution of, heroin.

Bienvenido Gonzalez and Antonio Gonzalez pleaded guilty to related charges and await sentencing.

PLAZA has 10 prior convictions, including three drug-related convictions, and a sexual offense that involved a minor victim.

The DEA’s New Haven Tactical Diversion Squad includes officers from the Bristol, Hamden, Milford, Monroe, New Haven, Shelton, Wallingford and Wilton Police Departments.  The New Haven, East Haven and West Haven Police Departments, together with the U.S. Coast Guard, provided valuable assistance to the investigation.

This case is being prosecuted by Assistant U.S. Attorneys Natasha M. Freismuth and Patrick F. Caruso.

Source: United States Attorneys General

Headline: Worcester Man Pleads Guilty to Fraud and Identity Theft

BOSTON – A Worcester man pleaded guilty today in federal court in Worcester to fraud and identity theft charges arising from unlawfully using the identity of a disabled Medicare beneficiary for 17 years.

Jose Agosto, 51, pleaded guilty to four counts of wire fraud, four counts of misusing a Social Security number, three counts of making false statements relating to health care services, and five counts of aggravated identity theft. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for April 25, 2018. Agosto was charged on Aug. 9, 2017, and has been in custody since.

Agosto admitted that he began living under the name of another individual in order to avoid the consequences of an arrest warrant, and that he used the victim’s name and other personal identifying information to obtain replacement Social Security cards, driver’s licenses and bank accounts. Agosto also admitted to seeking medical treatment under the victim’s name and that doing so caused medical providers to submit more than $148,000 in claims to Medicare, despite the fact that Agosto was not a Medicare beneficiary. In addition, Agosto executed promissory notes under the victim’s name and then defaulted on those notes. Agosto acknowledged that by using the victim’s identity, Agosto threatened the victim’s continued receipt of Social Security and Medicare benefits as well as the victim’s credit rating.

Furthermore, Agosto admitted to leaving threatening voice mails in an effort to intimidate the victim and his family. In these voice mails, Agosto threatened to kill various members of the victim’s family and warned of a “massacre.” One such statement made by Agosto was: “I’m going to start killing all of your family one-by-one. I’ll start killing your mother, I’ll kill your sister, and then the last one’s going to be you.”  

Each wire fraud count provides for a sentence of no greater than 20 years in prison, up to three years of supervised release, and a fine of $250,000. The charges of Social Security fraud and making false statements provide for a sentence of no greater than five years in prison, up to three years of supervised release, and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory minimum sentence of two years in prison, up to three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors. 

United States Attorney Andrew E. Lelling; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Division; Philip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General, Office of Investigations; and Christina Scaringi, Special Agent in Charge of the U.S Department of Housing and Urban Development, Office of the Inspector General, Northeast Regional Office, made the announcement today. The U.S. Department of Agriculture, Office of Inspector General, and the Massachusetts Bureau of Special Investigations provided assistance with the investigation. Assistant U.S. Attorney Bill Abely of Lelling’s Worcester Branch Office is prosecuting the case.

Source: United States Attorneys General

Headline: Leominster Woman Indicted for Stealing Social Security and Veterans Benefits

BOSTON – A Leominster woman was arrested today and charged in federal court in Boston for theft of Social Security and Veterans Affairs benefits.   

Joyce Progin, 70, was indicted on two counts of theft of public funds. Progin was released after appearing before U.S. District Court Chief Magistrate Judge David H. Hennessy today at 3:00 p.m. 

According to the indictment unsealed today, from November 2009 through March 2017, Progin stole approximately $55,267 in Social Security benefits, and from November 2009 through November 2017, she stole approximately $269,978 in benefits from the Department of Veterans Affairs.

The charge of theft of public funds provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Sean Smith, Special Agent in Charge of the Department of Veterans Affairs, Office of Inspector General, Northeast Field Office, made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit is prosecuting the case.

The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Source: United States Attorneys General

Headline: Monongalia County woman sentenced for drug distribution charge

CLARKSBURG, WEST VIRGINIA – Hollie Jo Exline, of Dellslow, West Virginia, was sentenced today to time served and six months home detention, to be followed by six months of supervised release, for a drug distribution charge, United States Attorney Bill Powell announced.

Exline, age 23, pled guilty to one count of “Unlawful Use of Communication Facility” in September 2017. Exline admitted to using a phone to distribute and assist in a conspiracy to distribute oxycodone. The crime occurred in Monongalia County in February 2017.

Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated. 

The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.

Senior U.S. District Judge Irene M. Keeley presided.