TALLAHASSEE, FLORIDA – After a six-day trial, Lee John Maher, 59, of Orlando, Florida, was convicted yesterday afternoon of conspiracy to commit mail fraud and with retaining and concealing federal funds, knowing that they were wrongly taken.  Co-defendant Larry Kenneth Long, 75, of Simpsonville, South Carolina, previously pled guilty to mail fraud conspiracy.  The verdict was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.

 

Maher and Long were officers of Clean Fuel Lakeland, which operated a biodiesel facility in Lakeland, Florida, in 2009 and 2010.  When federal money became available for energy initiatives under the American Recovery and Reinvestment Act of 2009, the men applied for a $2,480,000 grant from the United States Department of Energy through the Florida Governor’s Energy Office.  The Act was designed to encourage new energy investment by reimbursing grantees for monies invested in energy businesses.  The defendants fraudulently obtained funds under the grant by falsely claiming that Clean Fuel had spent $2,480,000 to buy and install a generator to run the biodiesel plant.  As proof that the generator had been purchased, the defendants submitted eight bogus bank checks to the Governor’s Energy Office, reflecting generator payments that had never actually been made.  Based upon their submissions, $2,232,000 in grant funds were disbursed to the Clean Fuel bank account in December 2010.  Immediately, the grant funds were disbursed through Maher’s other bank accounts, with Long receiving 1%, $22,320.  None of the grant funds were ever spent toward the purchase of a generator.  The defendants kept the fraud going until November 2012, through the submission of false progress reports.  The grant funds were ultimately recovered through federal asset seizure and forfeiture actions.

 

Maher’s sentencing hearing is scheduled for March 9, 2018, at 9:30 a.m. at the United States Courthouse in Tallahassee.  Maher faces a maximum of 20 years in prison on each count.  Long’s sentencing is scheduled for later this week.

 

This case resulted from an investigation by the United States Secret Service, the Florida Department of Agriculture and Consumer Services Office of Inspector General, and the United States Department of Energy Office of Inspector General.  Assistant U.S. Attorney Michael T. Simpson prosecuted this case.

 

The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General.  To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website.  For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.

TALLAHASSEE, FLORIDA – A federal grand jury has returned a one-count indictment charging Phillip Timothy Howard, 61, of Tallahassee, Florida, with racketeering (RICO).  The indictment was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.

According to the indictment, between in or about December 2015, and in or about January 2018, Howard, a Florida attorney, along with others, was associated with and employed by an Enterprise, that is, his Tallahassee law firm (Howard & Associates, P.A.), and several Tallahassee investment companies (Cambridge Capital Group, LLC; Cambridge Capital Wealth Advisors, LLC; Cambridge Capital Advisors, LLC; Cambridge Capital Funding, Inc., Cambridge Capital Group Equity Option Opportunities, L.P.; and Cambridge Capital Partners, L.P.).  The indictment further alleges that during this time, Howard, along with others, knowingly, willfully, and unlawfully conducted and participated in the conduct of the affairs of the Enterprise, through a pattern of racketeering activity, namely, wire fraud and money laundering. Specifically, the indictment alleges that Howard engaged in such racketeering activity in three ways. 

First, it is alleged that Howard represented former NFL players in a class-action lawsuit who were eligible for settlement payouts from the NFL, and as part of that representation, Howard fraudulently enticed his clients to invest their retirement funds with his investment companies.  However, it is also alleged that Howard failed to disclose and misrepresented to these former NFL player investors the structure of the Enterprise, and the conflicts of interest and the criminal background of persons associated with or employed by the Enterprise.  It is further alleged that Howard failed to disclose and misrepresented the true nature of investment companies’ funds and the actual investments made by the former NFL player investors.  The indictment also alleges that despite reassuring investors that their money was secure, Howard never informed them that almost none of investment funds yielded a return and failed to disclose that the investment funds had been commingled with funds used to operate his law firm and to issue payroll for its staff, pay Howard’s home mortgages, and otherwise personally enrich Howard.  It is alleged that Howard and others fraudulently obtained and attempted to obtain over $4 million through such conduct.

Second, the indictment alleges that Howard sought third-party lenders that would be willing to lend money to Howard’s former NFL clients in advance of their potential NFL concussion settlements as part of the NFL class-action lawsuit, and also to Howard as litigation funding for the NFL class-action lawsuit.  To obtain such funds for himself and his clients, it is alleged that Howard provided false and fraudulent information, including numerous material misrepresentations and omissions, to the lenders. It is alleged that Howard and others fraudulently obtained and attempted to obtain over $10 million from third-party lenders through such conduct.

Third, the indictment alleges that Howard solicited a person to invest in a real estate project located in Jacksonville, Florida, and in doing so, promised the investor certain returns on the investment within a specified period of time.  It is further alleged that after the investor money transferred money to the investment company, Howard and an employee falsely told the investor that additional money was needed in order to close that real estate deal, and that the investor was guaranteed to receive a certain return on that investment within a specified period of time.  In reliance on this false promise, it is alleged that the investor transferred additional proceeds to the investment company.  The indictment alleges that several months later, the investor was falsely told by Howard that the real estate investment funds were secure and would be returned to her.  It is alleged that Howard fraudulently obtained and attempted to obtain over $520,000 from this investor through this conduct.

Trial for Howard is scheduled for January 30, 2023, at 8:15 a.m., at the United States Courthouse in Tallahassee before the Honorable United States Chief District Judge Mark E. Walker. Howard faces a maximum penalty of 20 years in prison for racketeering and a maximum term of 3 years of supervised release following any prison sentence that is imposed.

This case resulted from a joint investigation by the Federal Bureau of Investigation and the Internal Revenue Service–Criminal Investigations, with assistance from the U.S. Securities and Exchange Commission.  Assistant United States Attorneys Justin M. Keen and David Byron are prosecuting the case.

An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.

PENSACOLA, FLORIDA – Son Chu Gilliam, 51, of Pensacola, Florida, pleaded guilty today to misdemeanor charges of receipt of adulterated and misbranded devices, and sale of prescription devices without a prescription -- those devices being contact lenses.  Lawrence Keefe, United States Attorney for the Northern District of Florida, announced the guilty plea.

Her sentencing hearing is currently set for September 10, 2019.

In May 2015, law enforcement seized approximately 600 counterfeit contact lenses that were being imported from China by Gilliam to her place of business, All about Ink, a tattoo shop in Pensacola, Florida.  A number of the contact lenses seized were tested by the U.S. Food and Drug Administration (FDA), and determined to contain microbial contamination.  FDA has determined that the types of bacteria found in the contact lenses can be hazardous.

Between July 2015, and October 2015, law enforcement made a number of undercover purchases of contact lenses from Gilliam and others working for Gilliam at All about Ink.  Following the undercover purchases, a federal search warrant was executed at All about Ink, and approximately 200 pairs of contact lenses were seized.  Samples of both the contact lenses purchased by undercover agents, and the contact lenses seized were tested by FDA, and a number of those also contained microbial contamination.  In addition to agents determining that a number of the contact lenses were counterfeit and FDA determining that a number of the contact lenses were contaminated and that none of the contact lenses should have been sold without a prescription.

“American consumers rely on FDA oversight to ensure the safety of their medical devices, including contact lenses.  Selling counterfeit contact lenses without a valid prescription puts patients’ health – and their vision – at risk,” said Acting Special Agent in Charge, H. Peter Kuehl, FDA Office of Criminal Investigations Miami Field Office. “The FDA is committed to working with our law enforcement partners to keep such products out of the U.S. marketplace.”

“This criminal was selling substandard, dangerous counterfeit contact lenses with no regard for the health and safety of consumers,” said HSI Tampa Deputy Special Agent in Charge Kevin D. Sibley. “Our agents are committed to collaborating with partner agencies, like U.S. Customs and Border Protection, the U.S. Food and Drug Administration and the Florida Department of Health, to conduct aggressive investigations into the distribution of fake goods that threaten the safety of our public.”

The case resulted from the investigation by the Homeland Security Investigations, the U.S. Food and Drug Administration Office of Criminal Investigations, U.S. Customs and Border Protection, and the Florida Department of Health.  It was prosecuted by Assistant United States Attorney J. Ryan Love.

The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General.  To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website.  For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html

Moises Humberto Rivera-Luna, also known as Santos and Viejo Santos, 55, an alleged international leader of the violent MS-13 drug gang, made an initial appearance today in the District of Columbia following his extradition from Guatemala to the United States to face racketeering conspiracy charges.“Keeping Americans safe from transnational criminal gangs is one of the Department’s top priorities,” said Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division. “This defendant’s appearance in federal court in Washington today demonstrates our relentless commitment to seeking justice for victims, no matter how long it takes. Thanks to the incredible work by our federal prosecutors and law enforcement partners, we are one step closer to bringing closure for the many victims of this defendant’s alleged brutal violence.”“The decade-long pursuit of this alleged violent gang member illustrates our office’s resolve to remain focused and bring to justice those who violate the law no matter where they are, no matter how long it takes,” said U.S. Attorney Edward R. Martin Jr. for the District of Columbia.“Moise Humberto Rivera-Luna will have his day in court, but he stands accused of very serious crimes,” said U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE HSI) Washington, D.C., Acting Special Agent in Charge Christopher Heck. “His alleged criminal activity, combined with his leadership of the MS-13 transnational criminal organization, makes Rivera-Luna a significant threat to the safety of the American people. We are grateful for the strong relationships we enjoy with our local, state, federal and international law enforcement partners. Without their cooperation, none of this would be possible. ICE HSI Washington, D.C., will continue to work relentlessly and exhaust all resources to investigate and apprehend anyone who presents a threat to national security or the residents of our communities.”Rivera-Luna is one of seven defendants in a nine-count fourth superseding indictment, which was returned on May 9, 2013, charging the defendants with committing racketeering conspiracy, murder in aid of racketeering, kidnapping in aid of racketeering, assault with a deadly weapon in aid of racketeering, and other offenses. Rivera-Luna is charged only with committing racketeering conspiracy. The government alleges that Rivera-Luna, while incarcerated in El Salvador, supervised operations of MS-13 cliques in the Washington area. Upon release, he traveled to Guatemala where he was subject to extradition.The indictment alleges that MS-13 engages in racketeering activity to include murder, narcotics distribution, extortion, robberies, obstruction of justice, and other crimes. The indictment specifically states that some of the defendants allegedly participated in assaults against perceived rival gang members, made threats against people they believed to be cooperating with law enforcement, and carried out extortions.The range of criminal activity alleged in the indictment includes acts committed in the District of Columbia, Maryland, Virginia, and other states. The indictment alleges there was frequent contact between MS-13 members in the Washington metropolitan area and El Salvador, and that members incarcerated in El Salvador encouraged or ordered assaults and murders.Rivera-Luna is alleged to be an international leader of MS-13 who was sending orders and advice to an MS-13 clique operating in the Washington area via cellular telephone calls from his prison cell in El Salvador. The indictment alleges that he and another alleged MS-13 leader, Marvin Geovanny Monterrosa-Larios, also incarcerated in El Salvador, directed a coalition of MS-13 cliques to be formed in the Washington area. They advised local clique members that the coalition’s aim was to seek and kill MS-13 members who were found to be cooperating with law enforcement officials.Among other allegations, the indictment charges Rivera-Luna with ordering the murder of Louis Alberto Membreno-Zelaya, 27. Membreno-Zelaya was found stabbed to death on Nov. 6, 2008, in Northwest Washington.The indictment also alleges that Rivera-Luna authorized the murder of Felipe Enriquez, 25, whose body was found on March 31, 2010, in Montgomery County, Maryland.ICE HSI Washington, D.C., and the Metropolitan Police Department are investigating the case. The Montgomery County and Prince George’s County, Maryland, Police Departments; State Attorney’s Office for Montgomery County; and U.S. Attorneys’ Offices for the District of Maryland and the Eastern District of Virginia provided assistance.The Justice Department’s Office of International Affairs provided significant assistance in securing the extradition of Rivera-Luna from Guatemala.Trial Attorney Lakeita F. Rox-Love of the Criminal Division’s Violent Crime and Racketeering Section and Assistant U.S. Attorney Nihar Mohanty for the District of Columbia are prosecuting the case.This effort was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.