Category: Florida

Fort Myers, Florida – United States Attorney Roger B. Handberg announces that Brandon Albanito (37, Cape Coral) has pleaded guilty to a six-count information charging him with possession of a controlled substance (fentanyl) with the intent to distribute it, two counts of possessing counterfeit drugs for sale, possessing parts used to manufacture counterfeit drugs, possessing a firearm as a convicted felon, and bank fraud. Albanito faces a maximum penalty of 30 years in federal prison for the bank fraud, up to 20 years’ imprisonment for the controlled substance offenses, up to 15 years on the firearms offense, and lesser penalties for the counterfeit drug charges.  Albanito has agreed to forfeit $97,146.95, traceable to the fraud offense, and the other items he possessed illegally, including a pill press and firearms. Albanito is also required to make full restitution to the financial institution which was the victim of his fraud scheme.

According to court documents, in March 2021, Albanito defrauded his federally insured bank with a scheme involving falsely disputed cash transfers which he had authorized. Albanito illegally obtained $97,146.95 through the scheme. In furtherance of its investigation into his fraud, the U.S. Secret Service executed a search warrant at Albanito’s Cape Coral residence in January 2023. Upon entry into the residence, law enforcement observed a large, commercial-grade pill press in the garage and hundreds of counterfeit oxycodone pills on a nearby shelf. The counterfeit pills, which appeared identical to prescription oxycodone pills, were found to contain fentanyl.

Law enforcement obtained a second warrant permitting them to search for and seize evidence related to drug manufacturing and distribution. During this search, they seized a five-gallon bucket containing approximately 30 pounds of counterfeit alprazolam pills (which actually contained the designer drug clonazolam), a five-gallon bucket containing approximately 20 pounds of pill binding agent, pill dies (i.e. tooling used by a pill press to create pills), and two firearms within the residence. DNA testing conducted on both firearms determined that Albanito had possessed them. Albanito was previously convicted in two federal cases (2011) involving money laundering, drug distribution, creating false identification documents, and possessing a firearm as a felon. As such, he is prohibited from possessing a firearm or ammunition under federal law.

This case was investigated by the United States Secret Service, the United States Food and Drug Administration, the Cape Coral Police Department, with assistance from the Pasco Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Michael V. Leeman.

A Florida resident and dual citizen of the United States and Turkey pleaded guilty yesterday in the District of New Jersey to running an extensive operation over many years to traffic in fraudulent and counterfeit Cisco networking equipment.

According to documents filed in this case and statements made in court, Onur Aksoy, 39, of Miami, ran at least 19 companies formed in New Jersey and Florida, as well as approximately 15 Amazon storefronts and at least 10 eBay storefronts (collectively, the “Pro Network Entities”), that imported from suppliers in China and Hong Kong tens of thousands of low-quality, modified computer networking devices with counterfeit Cisco labels, stickers, boxes, documentation, and packaging, all bearing counterfeit trademarks registered and owned by Cisco, that made the goods falsely appear to be new, genuine, and high-quality devices manufactured and authorized by Cisco. The devices had an estimated total retail value of hundreds of millions of dollars. Moreover, the Pro Network Entities generated over $100 million in revenue, and Aksoy received millions of dollars for his personal gain.

The devices the Pro Network Entities imported from China and Hong Kong were typically older, lower-model products – some of which had been sold or discarded – which Chinese counterfeiters then modified to appear to be genuine versions of new, enhanced, and more expensive Cisco devices. The Chinese counterfeiters often added pirated Cisco software and unauthorized, low-quality, or unreliable components – including components to circumvent technological measures added by Cisco to the software to check for software license compliance and to authenticate the hardware. Finally, to make the devices appear new, genuine, high-quality, and factory-sealed by Cisco, the Chinese counterfeiters added counterfeited Cisco labels, stickers, boxes, documentation, packaging, and other materials.

Fraudulent and counterfeit products sold by the Pro Network Entities suffered from numerous performance, functionality, and safety problems. Often, they would simply fail or otherwise malfunction, causing significant damage to their users’ networks and operations – in some cases, costing users tens of thousands of dollars. Customers of Aksoy’s fraudulent and counterfeit devices included hospitals, schools, government agencies, and the military.

Between 2014 and 2022, Customs and Border Protection (CBP) seized approximately 180 shipments of counterfeit Cisco devices being shipped to the Pro Network Entities from China and Hong Kong. In response to some of these seizures, Aksoy falsely submitted official paperwork to CBP under the alias “Dave Durden,” an identity that he used to communicate with Chinese co-conspirators. To try to avoid CBP scrutiny, Chinese co-conspirators broke the shipments up into smaller parcels and shipped them on different days, and Aksoy used fake delivery addresses in Ohio. After CBP seized a shipment of counterfeit Cisco products to Aksoy and the Pro Network Entities and sent a seizure notice, Aksoy often continued to order counterfeit Cisco products from the same supplier.

Between 2014 and 2019, Cisco sent seven letters to Aksoy asking him to cease and desist his trafficking of counterfeit goods. Aksoy responded to at least two of these letters by causing his attorney to provide Cisco with forged documents. In July 2021, agents executed a search warrant at Aksoy’s warehouse and seized 1,156 counterfeit Cisco devices with a retail value of over $7 million.

Aksoy pleaded guilty to (1) conspiring with others to traffic in counterfeit goods, to commit mail fraud, and to commit wire fraud and (2) mail fraud. He is scheduled to be sentenced on Nov. 6, and under the plea agreement that the court conditionally accepted yesterday pending sentencing, faces a sentence of four to six and a half years in prison. Also pursuant to the plea agreement, Aksoy must forfeit $15 million in illicit gains from his scheme and make full restitution to his victims. The court will determine the final sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Attorney for the United States Vikas Khanna for the District of New Jersey; Acting Special Agent in Charge Eddy Wang of the Homeland Security Investigations (HSI) Los Angeles Field Office; Special Agent in Charge Bryan Denny of the U.S. Department of Defense, Defense Criminal Investigative Service (DCIS) Western Field Office; Special Agent in Charge Floyd Martinez of the General Services Administration Office of Inspector General (GSA-OIG), Southeast and Caribbean Division; Special Agent in Charge Greg Gross of the Naval Criminal Investigative Service (NCIS), Economic Crimes Field Office; Special Agent in Charge Anthony Salisbury of the HSI Miami Field Office; and Special Agent in Charge Ricky J. Patel of the HSI Newark Field Office made the announcement today.

HSI, DCIS, GSA-OIG, NCIS, and CBP are investigating the case.

Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Andrew M. Trombly and Senior Trial Counsel Barbara Ward for the District of New Jersey are prosecuting the case.

The CBP Electronics Center of Excellence; the CBP Los Angeles National Targeting and Analysis Center; and the CBP Office of Trade, Regulatory Audit and Agency Advisory Services, Miami Field Office provided valuable assistance.

ALBANY, Ga. – A Florida resident with multiple prior state felony convictions for distributing methamphetamine pleaded guilty to a federal controlled substance charge after being caught with approximately eight kilograms of the illegal drug during a routine traffic stop when his co-defendant attempted to escape from authorities with the bag of drugs.

James E. Freitas, 48, of Winter Haven, Florida, pleaded guilty to possession with intent to distribute methamphetamine before U.S. District Judge Louis Sands today. Codefendant, Miguel L. Mora, 43, of Hanes City, Florida, pleaded guilty to possession with intent to distribute methamphetamine on Aug. 12. Both defendants face a mandatory minimum of ten years up to a maximum of life imprisonment to be followed by at least five years of supervised release and a maximum $10,000,000 fine. Their sentencings will occur within 90 days as determined by the Court.

There is no parole in the federal system.

“The guilty plea of this reoffender is the result of the collaborative efforts between DEA and its law enforcement partners who work tirelessly to eliminate the distribution of the insidious drug methamphetamine,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “This defendant will now face serious time in prison.”

“I-75 is a known corridor for drug traffickers moving fentanyl, methamphetamine and other deadly drugs into communities across the southeast and beyond,” said U.S. Attorney Peter D. Leary. “Individuals caught distributing large quantities of these types of controlled substances will face federal prosecution for their crimes, which are contributing to the death and addiction of many Americans.”

According to court documents, a Lowndes County Sheriff’s Office deputy attempted to conduct a routine traffic stop for a driving violation as Freitas was traveling on I-75 on July 11, 2019. Freitas was unable to provide identification and gave conflicting information. As Frietas was standing outside the vehicle talking with the deputy, Mora climbed into the front seat and drove away in the car. Mora drove the vehicle into a field and then fled on foot into adjacent woods carrying a large bag. Mora was quickly apprehended; the bag that he carried from the car was searched and found to contain 8,099 grams of 97% pure methamphetamine with an estimated street value of $748,000. Officers found a loaded .40 caliber semi-automatic pistol with an obliterated serial number on the floorboard of the car belonging to Freitas. A search warrant executed on Freitas’ cell phone found photos of the gun, plus text and instant messages detailing both defendants travel to and from Tennessee to purchase and transport methamphetamine to a third party in Florida.

Freitas has three prior serious felony drug convictions for trafficking methamphetamine in Polk County, Florida, Circuit Court.

DEA and Lowndes County Sheriff’s Office investigated the case.

Assistant U.S. Attorney Mike Morrison is prosecuting this case.

The DEA encourages parents, along with their children, to educate themselves about the dangers of legal and illegal drugs by visiting DEA’s interactive websites at www.JustThinkTwice.com, www.GetSmartAboutDrugs.com, www.CampusDrugPrevention.gov, and www.dea.gov . Also follow DEA Atlanta via Twitter at @DEAATLANTADiv

MIAMI – A South Florida federal district judge has sentenced William D. Foster, 50, to 60 years in prison for running a sex trafficking organization for more than 20 years that exploited dozens of vulnerable women and girls. The judge also entered a $3.4 million forfeiture money judgment against Foster and ordered him to pay over $14 million in restitution to his victims.

At any given time, up to 15 women and girls lived with, and worked for, Foster.  Through manipulation, lies, and threats, Foster forced his victims to work at South Florida exotic dance clubs and engage in commercial sex. Foster told the victims that he would invest their earnings so that they could retire in their 20s, which was not true. Foster coerced victims into working eight-hour shifts, six days a week, every week of the year and kept all their money.

He used psychological coercion and violence to keep victims in line. If a victim wanted to buy things like food, clothes, or personal hygiene products, she first had to get permission from Foster. He required many of the victims to go on liquid diets, get unsafe weight loss surgeries, and take anti-anxiety and anti-psychotic medications without proper diagnoses. Foster often had sex with victims, some of whom were minors.

If a victim attempted to leave, Foster would threaten financial ruin and other harm.  If a victim left, she left with nothing.

Foster expanded his operation beyond South Florida. He transported victims to other states including New York, New Jersey, Michigan, and Nevada, for the purpose of engaging in prostitution.

Law enforcement officers recovered one of Foster’s victims out of a Detroit hotel room after she called the National Human Trafficking Hotline.

Foster tried to grow his business by starting a website (Foster’s Care) that promised to help human trafficking victims. His plan, however, was not to save anyone, but to lure them into his commercial sex business.

Foster pled guilty in March to conspiracy to commit sex trafficking; sex trafficking of a minor; sex trafficking of a minor by force, fraud, and coercion; five counts of sex trafficking by force, fraud, and coercion; two counts of sex trafficking by fraud and coercion; conspiracy to transport individuals for purposes of prostitution; two counts of transporting individuals for prostitution and a money laundering conspiracy.

Two of Foster’s co-conspirators — Ashleigh Holloway, 37, and Hanah Chan, 32 – pled guilty in the Southern District of Florida to bank fraud charges in connection with the operation. They are scheduled to be sentenced on October 11.

Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida; Robert M. DeWitt, Acting Special Agent in Charge, FBI Miami; and Anthony Salisbury, Homeland Security Investigations (HSI), Miami Field Office announced the sentence imposed yesterday by U.S. District Judge Raag Singhal.

FBI Miami and HSI Miami investigated this case. This case was prosecuted by Assistant U.S. Attorneys Jessica Kahn Obenauf and Brooke Elise Latta. Assistant U.S. Attorney Emily Stone is handling the asset forfeiture aspects of the case.

To report suspected human trafficking or to obtain resources for victims, please call 1-888-373-7888; text “BeFree” (233733), or live chat at HumanTraffickingHotline.org.  The toll-free phone, SMS text lines, and online chat function are available 24 hours a day, 7 days a week, 365 days a year.  Help is available in English, Spanish, Creole, or in more than 200 additional languages.  The National Hotline is not managed by law enforcement, immigration or an investigative agency. Correspondence with the National Hotline is confidential and you may request assistance or report a tip anonymously. To learn more about the hotline, visit www.humantraffickinghotline.org.

To learn more about the U.S. Department of Justic’s efforts to combat human trafficking visit www.justice.gov/humantrafficking.

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 at https://pacer.flsd.uscourts.gov, under case number 19-cr-20804.

MIAMI – Homeland Security Investigations (HSI) Miami announced Aug. 17 efforts to curb the increased flow of weapons, weapon parts and ammunition to Haiti and the Caribbean. Anthony Salisbury, special agent in charge of HSI Miami, along with Department of Homeland Security (DHS) partners made the announcement.

“HSI and our partners will investigate and seek to prosecute any individuals involved in illegal arms trafficking,” said Salisbury. “Today we make it very clear that the United States, and in particular south Florida, is not open for business regarding the illegal trafficking of weapons.”

Partners included: Vernon T. Foret, director, field operations Miami/Tampa field offices; U.S. Customs and Border Protection (CBP); Rear Admiral Brendan C. McPherson, commander of the Seventh Coast Guard District; Timothy Emerick deputy director, Southeast Region, CBP Air and Marine Operations; Walter N. Slosar, chief patrol agent Miami Border Patrol Sector; Michelle Alvarez, first assistant U.S. attorney for Southern District of Florida; Jonathan Carson acting special agent in charge U.S. Department of Commerce Miami Field Office, Bureau of Industry and Security; Tyra J. Cunningham assistant special agent in charge Bureau of Alcohol Tobacco, Firearms and Explosives (ATF); and Maj. Fernand Charles, Miami Dade Police Department (MDPD), Organized Crime Bureau.

Over the last three months, HSI has seen a substantial increase in the number of weapons, along with a serious increase on the caliber and type of firearms, being illegally trafficked. Some of those weapons include .50 caliber sniper rifles, 308 rifles, and a belt fed machine gun.

In the wrong hands, these weapons could cause mass casualties. Because of this, HSI and counterparts within DHS, Department of Commerce, ATF, MDPD, and the U.S. Attorney for Southern District of Florida are vigorously pursuing this issue and implementing countermeasures. These measures include extra resources within HSI Miami, primarily through our Border Enforcement Security Taskforce (BEST) groups, charged with combating emerging and existing Transnational Criminal Organizations and increased inspections of U.S. export shipments to ensure compliance with federal export laws.

Agencies are also leveraging information developed from investigations and partnerships with foreign customs officials and police to target shipments and individuals that may be engaged in smuggling. These efforts not only concern the physical movement of illegal weapons but also the financial flows that support this illicit activity.

HSI recognizes this is an effort that goes well beyond law enforcement capabilities, which is why it encourages anyone with information about cross-border weapons trafficking to contact HSI at the HSI Tip-Line by calling 866-347-2423. Tips can be anonymous and there is potential reward money for accurate information. For more information on HSI Miami, follow @HSI_Miami.

TALLAHASSEE, FLORIDA – William K. Gordon, Jr., 28, originally of Cairo, Georgia, but living in Tallahassee, Florida, at the time of his arrest, was sentenced to 15 years in federal prison after pleading guilty to a conspiracy to distribute 50 grams or more of methamphetamine, one count of distribution of more than 50 grams of a mixture containing methamphetamine, and one count of distribution of 50 grams or more of methamphetamine. The sentence was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.

“Methamphetamine distribution is a scourge on large and small communities of our district,” stated U.S. Attorney Coody. “We are committed to work with our law enforcement partners to identify and aggressively prosecute recidivist offenders who continue to distribute such these addictive, controlled substances. This sentence is further proof of this resolve.”

Evidence introduced at the sentencing hearing demonstrated that Gordon was obtaining methamphetamine from Georgia and selling it in Tallahassee, Florida. On March 17, 2021, members of the North Florida High Intensity Drug Trafficking Area (HIDTA) Capital Area Drug Response & Evaluation (CADRE) Initiative used a confidential source to purchase two ounces of methamphetamine from Gordon. Three days later, Gordon fled from officers of the Tallahassee Police Department, who were able to catch and arrest him. TPD officers found that Gordon had $2705 in his pants pocket at the time of his arrest, including twenty of the bills used for the March 17 controlled purchase. Despite being released on bond for his state charges, Gordon continued his narcotics distribution activities. On August 4, 2021, the North Florida HIDTA CADRE Initiative used a second confidential source to purchase three additional ounces of methamphetamine from Gordon. When arrested on August 6, 2021, officers identified and recovered 23 of the bills from Gordon which were used during the August 4 controlled purchase.

“Methamphetamine is a dangerous synthetic drug that has an incredibly destructive effect on our communities,” said DEA Miami Field Division Special Agent in Charge Deanne L. Reuter. “The DEA Miami Field Division remains committed to working with our law enforcement partners to ensure Florida communities remain safe and healthy.”

Gordon’s federal prison sentence will be followed by 15 years of supervised release.

“The arrest and conviction of William K. Gordon is a major step in getting some of the most addictive and deadly drugs out of Leon County,” said Sheriff Walt McNeil. “I am grateful for the hard work of our deputies and detectives who assisted in this case. LCSO and our law enforcement partners will continue to work closely to identify, arrest and prosecute these dealers to keep our communities safe.”

This case resulted from a joint investigation by the Drug Enforcement Administration and the North Florida HIDTA CADRE Initiative, with assistance from the Leon County Sheriff’s Office and the Tallahassee Police Department. Assistant United States Attorney James A. McCain prosecuted the 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 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 https://www.justice.gov/usao/fln/index.html.

A federal grand jury in the District of New Jersey returned an indictment yesterday charging a resident of Florida with running a massive operation over many years to traffic in fraudulent and counterfeit Cisco networking equipment with an estimated retail value of over $1 billion.

According to the indictment, Onur Aksoy, aka Ron Aksoy, aka Dave Durden, 38, of Miami, allegedly ran at least 19 companies formed in New Jersey and Florida as well as at least 15 Amazon storefronts, at least 10 eBay storefronts, and multiple other entities (collectively, the “Pro Network Entities”) that imported tens of thousands of fraudulent and counterfeit Cisco networking devices from China and Hong Kong and resold them to customers in the United States and overseas, falsely representing the products as new and genuine. The operation allegedly generated over $100 million in revenue, and Aksoy received millions of dollars for his personal gain.

According to the indictment, the devices the Pro Network Entities imported from China and Hong Kong were typically older, lower-model products, some of which had been sold or discarded, which Chinese counterfeiters then modified to appear to be genuine versions of new, enhanced, and more expensive Cisco devices. As alleged, the Chinese counterfeiters often added pirated Cisco software and unauthorized, low-quality, or unreliable components – including components to circumvent technological measures added by Cisco to the software to check for software license compliance and to authenticate the hardware. Finally, to make the devices appear new, genuine, high-quality, and factory-sealed by Cisco, the Chinese counterfeiters allegedly added counterfeited Cisco labels, stickers, boxes, documentation, packaging, and other materials.

The fraudulent and counterfeit products sold by the Pro Network Entities suffered from numerous performance, functionality, and safety problems. Often, they would simply fail or otherwise malfunction, causing significant damage to their users’ networks and operations – in some cases, costing users tens of thousands of dollars. Customers of Aksoy’s fraudulent and counterfeit devices included hospitals, schools, government agencies, and the military.

As set forth in the indictment, between 2014 and 2022, Customs and Border Protection (CBP) seized approximately 180 shipments of counterfeit Cisco devices being shipped to the Pro Network Entities from China and Hong Kong. In response to some of these seizures, Aksoy allegedly falsely submitted official paperwork to CBP under the alias “Dave Durden,” an identity that he used to communicate with Chinese co-conspirators. To try to avoid CBP scrutiny, Chinese co-conspirators allegedly broke the shipments up into smaller parcels and shipped them on different days, and Aksoy used at least two fake delivery addresses in Ohio. After CBP seized a shipment of counterfeit Cisco products to Aksoy and the Pro Network Entities and sent a seizure notice, Aksoy allegedly often continued to order counterfeit Cisco products from the same supplier.

According to the indictment, between 2014 and 2019, Cisco sent seven letters to Aksoy asking him to cease and desist his trafficking of counterfeit goods. Aksoy allegedly responded to at least two of these letters by causing his attorney to provide Cisco with forged documents. In July 2021, agents executed a search warrant at Aksoy’s warehouse and seized 1,156 counterfeit Cisco devices with a retail value of over $7 million.

Aksoy is charged with one count of conspiracy to traffic in counterfeit goods and to commit mail and wire fraud; three counts of mail fraud; four counts of wire fraud; and three counts of trafficking in counterfeit goods. Aksoy was charged by a criminal complaint filed in New Jersey on June 29 and was arrested in Miami the same day.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Attorney for the United States Vikas Khanna of the District of New Jersey; Acting Special Agent in Charge Eddy Wang of the Homeland Security Investigations (HSI) Los Angeles Field Office; Special Agent in Charge Bryan Denny of the U.S. Department of Defense, Defense Criminal Investigative Service (DCIS) Western Field Office; Special Agent in Charge Floyd Martinez of the General Services Administration Office of Inspector General (GSA-OIG), Southeast and Caribbean Division; Special Agent in Charge Peter Tolentino of the Naval Criminal Investigative Service (NCIS), Economic Crimes Field Office; Special Agent in Charge Anthony Salisbury of the HSI Miami Field Office; and Special Agent in Charge Jason Molina of the HSI Newark Field Office made the announcement today.

The CBP Electronics Center of Excellence; the CBP Los Angeles National Targeting and Analysis Center; and the CBP Office of Trade, Regulatory Audit and Agency Advisory Services, Miami Field Office provided valuable assistance.

If you believe you are a victim of Aksoy or the Pro Network Entities, please visit www.justice.gov/largecases or https://edit.justice.gov/usao-nj/united-states-v-onur-aksoy-pro-network for more information.

The Pro Network Entities include at least the following:

HSI, DCIS, GSA-OIG, NCIS, and CBP are investigating the case.

Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Andrew M. Trombly and Senior Trial Counsel Barbara Ward of the District of New Jersey are prosecuting the case.

An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

USA-IT featured in Florida Politics coverage of Gov. DeSantis signing SB 1534.

“United to Safeguard America from Illegal Trade also applauded the passage of the legislation. ‘We applaud Attorney General Moody, Sen. Boyd and Rep. Clemmons for moving this important public safety legislation forward,’ said USA-IT spokesman and former director of U.S. Immigration and Customs Enforcement (ICE), Matt Albence. ‘States across the country are taking positive steps, equipping police and prosecutors with these new tools. Through cooperative, cross-sector efforts, we can all work together to stop Organized Retail Crime that is hurting our economy, endangering our citizens and providing a revenue stream for criminal organizations.’”

Read more here.

A Florida man was arrested today for allegedly distributing more than $230 million in adulterated HIV drugs that were ultimately dispensed to unsuspecting patients throughout the country.

According to an indictment unsealed today, Lazaro Hernandez, 51, of Miami, was allegedly part of a nationwide scheme to defraud the U.S. Food and Drug Administration (FDA) and illegally distribute more than $230 million in adulterated and misbranded prescription drugs that were dispensed to unsuspecting patients. As alleged in the indictment, Hernandez acquired large quantities of HIV medication illegally and then created false drug labeling and other documentation to make it appear as though these high-priced drugs had been obtained legitimately. To carry out the scheme, Hernandez and co-conspirators established licensed wholesale drug distribution companies in Florida, New Jersey, Connecticut, and New York. Hernandez and his co-conspirators used those companies to sell the adulterated drugs at steep discounts to other co-conspirators at wholesale pharmaceutical distributors in Mississippi, Maryland, and New York. Those wholesale pharmaceutical distributors then resold the drugs to pharmacies throughout the country, which billed the drugs to health insurers, including Medicare, and dispensed the adulterated and misbranded HIV medication to unsuspecting patients.

As alleged in the indictment, between approximately 2019 and 2021, the wholesale pharmaceutical distributors paid Hernandez and his co-conspirators more than $230 million for the illegally acquired and adulterated prescription drugs. Hernandez allegedly laundered those hundreds of millions of dollars through the use of several corporations in Miami.

Hernandez is charged with conspiracy to deliver into interstate commerce adulterated and misbranded drugs, conspiracy to traffic in medical products with false documentation, conspiracy to commit money laundering, and specific money laundering offenses. If convicted of all counts, he faces a maximum total penalty of more than 100 years in prison. The defendant was also charged in a separate, superseding indictment that was returned by a grand jury in Miami on June 14. Hernandez is scheduled to make his initial court appearance in both cases today in the U.S. District Court for the Southern District of Florida.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida, Special Agent in Charge Omar Pérez Aybar of the Department of Health and Human Services Office of Inspector General (HHS-OIG), and Special Agent in Charge Kyle A. Myles of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), Atlanta Region, made the announcement.

HHS-OIG and FDIC-OIG are investigating the case.

Trial Attorney Alexander Thor Pogozelski of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Timothy James Abraham of the Southern District of Florida are prosecuting the case. Assistant U.S. Attorney Emily Stone is handling forfeiture.

An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

SACRAMENTO, Calif. — Akrum Alrahib, 43, of Miami, Florida, was sentenced today to five years in prison and ordered to pay over $10 million in restitution for conspiring to commit mail fraud in non-cigarette tobacco schemes that defrauded the State of California of over $10 million in unpaid excise taxes, U.S. Attorney Phillip A. Talbert announced.

Non-cigarette tobacco (known as Other Tobacco Products or OTP) consists of tobacco products such as cigars, chewing tobacco, and leaf tobacco. During the relevant time period, California imposed an average excise tax of about 28.13% of the wholesale cost of the OTP between April 2016 and June 2016; 27.30% between July 2016 and June 2017; and 65.08% between July 2017 and December 2017. California licensed tobacco distributors are required to collect this tax when they distribute the product within the state. The distributor must then submit to the California Department of Tax and Fee Administration (CDTFA) in Sacramento (formerly the Board of Equalization) monthly reports reflecting the amount of untaxed OTP sold in the previous month and the amount of excise tax owing, and the payment of the excise tax.

According to court documents, between April 2016 and December 2017, Alrahib led two conspiracies involving multiple individuals and businesses operating in California. As the leader, Alrahib provided untaxed OTP to various individuals and companies in California, knowing that the products would be sold illegally without collecting the required excise tax, resulting in a loss to the State of California of over $10 million in tax revenue.

“Today’s sentence is the result of a highly successful, collaborative effort involving federal and state investigators and prosecutors, working side-by-side,” U.S. Attorney Talbert stated. “We will continue to root out illegal conduct and tax evasion in the tobacco products industry.”

“The primary goal of ATF in combating tobacco trafficking is to enforce the federal laws relating to the trafficking of domestically produced and counterfeit cigarettes and tobacco products,” said Special Agent in Charge Patrick Gorman, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), San Francisco Field Division. “Partnerships are the backbone of law enforcement. ATF will continue to work alongside our partners to investigate incidents of illegal conduct and tax evasion of tobacco products.”

“Tax evasion is a serious crime, depriving our communities of critical resources and exposing law-abiding businesses to unfair competition,” said California Department of Tax and Fee Administration Director Nick Maduros. “We will continue to work with federal and state prosecutors to bring tax evaders to justice.”

This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the California Department of Tax and Fee Administration. Assistant U.S. Attorneys Rosanne L. Rust and Michael D. Anderson prosecuted the case.

Matt Albence, USA-IT spokesman and former acting director of U.S. Immigration and Customs Enforcement (ICE), is quoted applauding Florida legislation cracking down on organized retail crime:

“We applaud Attorney General Moody, Sen. Boyd and Rep. Clemmons for moving this important public safety legislation forward. States across the country are taking positive steps, equipping police and prosecutors with these new tools. Through cooperative, cross-sector efforts, we can all work together to stop Organized Retail Crime that is hurting our economy, endangering our citizens and providing a revenue stream for criminal organizations.”

Read more here.

Matt Albence, USA-IT spokesman and former acting director of U.S. Immigration and Customs Enforcement (ICE), discusses the increasing threat of organized retail crime and how we must work together to combat it:

“The criminal syndicates that perpetrate organized retail theft are often the same networks engaging in the drug trade, human trafficking, and other forms of illegal trade, like illicit tobacco and counterfeit products. They follow the money and are quick to seize any opportunity to make a profit — including leveraging the explosion of e-commerce to sell stolen goods on social media and online marketplaces.”

“Policymakers must also be agile and adapt their tactics, working alongside law enforcement and the private sector, to combat this threat. Failing to do so will allow these criminal networks to flourish, with the negative consequences being felt far beyond any individual victim or store front.”

Read more here.

Retail stores are a vital part of any community. They conveniently and quickly provide the goods local people want and need. Shops are places where residents work and build their careers. Finally, stores also provide entertainment and can be a welcome diversion for busy, stressed citizens.

However, ongoing thefts and looting intimidates workers, shoppers, and their loved ones while boosting fear of criminal victimization. Store thefts can result in Injury and worse, as well as strip stores of desirable goods local citizens seek. This forces the local shopper to look elsewhere for better, safer shopping options.

Partnerships

No individual store or even chain can flourish alone in this climate of increasing crime victimization and lower consequences for those that harm others. Retailers are working together to build stronger, science-based, cross-company, local policymaker, and law enforcement partnerships at the individual retail center and market levels in part via the Loss Prevention Research Council (LPRC).

Over 70 US retail companies work together with 80 protective solution companies and PhD-level research scientists on anti-crime community engagement and technological solutions via Gainesville, FL based Loss Prevention Research Council. LPRC’s Director and University of Florida Research Scientist/Criminologist Read Hayes, PhD works with a team of eight to support retailers as they deal with theft, fraud, and violence across their stores and supply chain using data analytics, randomized field experiments, offender interviews, a series of simulated retail environment labs, and other scientific methods.

What and How

Through the cross-company communication and engagement of senior executives, investigators, and other individuals within the LPRC’s member organizations, research is being conducted to assist in evidence-based decision making. With over 200 past research projects, the LPRC, through its multiple partners, is one of the leading research organizations involved in studying crime in the retail space.

The LPRC team is available to discuss retail crime dynamics, and group and individual crime reduction strategies and tactics!

Attorney General Moody Partners with Legislators to Target Organized Retail Theft

TALLAHASSEE, Fla.—Attorney General Ashley Moody is working with state legislators to address organized retail theft in Florida. Attorney General Moody held a news conference with lawmakers today in Hialeah to announce legislative efforts to help law enforcement and prosecutors dismantle retail theft crime rings. The announcement comes one week before Florida’s 2022 Legislative Session begins.

Organized retail theft is on the rise nationwide, and Attorney General Moody is dedicated to ensuring Florida remains ahead of the trend to prevent retail crime waves. This session, Attorney General Moody is working with legislative leaders to ensure state laws are effective in helping prosecutors dismantle organized crime rings.

Attorney General Ashley Moody said, “We’ve seen the damage and disorder caused by brazen criminals across the country through terrifying smash-and-grab robberies, and we must continue to innovate to stay ahead of this national crime trend. Last month, I launched FORCE to bolster our efforts to stop and prevent organized retail crime in Florida and this legislative session, I will partner with state legislators to make sure our laws are effective in helping law enforcement and prosecutors stop retail theft gangs from targeting our stores.”

Senator Jim Boyd said, “This legislation addresses the brazen crime of ‘smash-and-grab’ robberies that are on the rise. Already struggling retailers nationwide are seeing an uptick in this type of organized retail theft. It is a public safety issue that we must address to prevent these horrible actions from harming our residents and bankrupting Florida businesses.”

Representative Chuck Clemons, Sr. said, “If you commit crime in Florida, you should expect to face justice and that is why it is so important that we work together this session to stay ahead of the organized retail crime trends we are seeing nationwide. As state lawmakers, it is important that we continue to work with our great Attorney General to ensure we are doing everything in our power to prevent chaos and lawlessness in Florida.”

Senator Manny Diaz, Jr. said, “I am grateful to live in a state with a forward-thinking Attorney General who is committed to spotting crime trends and preventing lawlessness from taking root in Florida. Recently, we have seen mobs ransack businesses in other states, and I will work with Attorney General Moody this session to ensure that organized retail crime members know they can’t get away with that sort of brazen lawlessness in Florida.”

Senator Ileana Garcia said, “Attorney General Moody continues to innovate how Florida fights and prevents crime. I am proud to fight alongside her this Session, as we look for better ways to investigate, prosecute and prevent gangs trying to exploit state law to avoid facing justice for massive retail theft crimes.”

Florida Retail Federation President Scott Shalley said, “Organized retail crime has increased significantly over the last two years. Criminal gangs are stealing hundreds, thousands and sometimes millions of dollars of merchandise, and they’re threatening the safety of our communities. With the leadership of Attorney General Moody, Senator Jim Boyd and Representative Chuck Clemons, and their proposed legislation, Florida is standing up to criminals and holding them accountable for their actions.” Last month, Attorney General Moody launched the Florida Organized Retail Crime Exchange—a task force and database that allows law enforcement, prosecutors and retailers to work together to quickly identify massive, organized retail theft rings. The launch of FORCE comes as 70% of store owners nationwide report an increase in crime over the past year.

FORCE is a statewide task force and database to help spot trends, identify suspects and take down massive, organized retail theft rings. The database is designed to bridge the gap between retailers, law enforcement and prosecutors by allowing shareable, searchable information on theft incidents statewide.

To help bolster the effectiveness of FORCE, the Florida Attorney General’s Office will partner with state legislators this session to seek to remove barriers to prosecution for what is clearly organized criminal activity. Upcoming legislation will provide a targeted revision to current statutes determining the felony status for retail theft when someone steals multiple items from multiple locations in a short period of time. These changes would strengthen the laws on the books to allow prosecutors to bring stronger penalties against criminals who commit crimes across the state to avoid justice.

PALM BEACH, Fla. (AP) — More than a dozen one-of-a-kind Hermes handbags with an estimated value of about $1 million were stolen in a smash-and-grab burglary from a boutique store in South Florida, the store owner said.

The unique luxury bags were taken when the window where they were on display was smashed in the middle of the night earlier this month in the luxury shopping district of Worth Avenue in Palm Beach, Florida, according to television station WPTV.

The owner of the handbags shop, Only Authentics, told the television station that some of the bags were valued at more than $100,000 each. Owner Virgil Rogers said the incident happened the night of Dec. 14.

The store has a collection of one-of-a-kind pieces of Hermes and Chanel handbags.

Alex Piquero, a criminologist at the University of Miami, said the thefts were likely the work of organized criminals.

“It just shows you they don’t care, and they have it such that they have this down to the second. I’ve got x amount of seconds to get in there. I have a car waiting for me down on the street, and there’s probably another car two streets from there that it’s going to be loaded on, loaded off, loaded on, loaded off,” Piquero said.

Over the past two months, there have been a series of smash-and-grab burglaries at luxury stores around the U.S.

Thieves rushed into a Southern California Nordstrom store the night before Thanksgiving and ran off with pricey goods. Around the same time, groups of thieves smashed glass cases and window displays and ransacked high-end stores throughout the San Francisco Bay Area, stealing jewelry, sunglasses, suitcases and other merchandise.

Flagler County Sheriff’s office deputies have arrested four people for an organized retail theft scheme targeting the Palm Coast Target.

“These career offenders thought they could get away with stealing, but they actually just received some new accommodations for Christmas,” Sheriff Rick Staly said. “With our partnership with Target Loss Prevention, I’m glad we were able to put an end to their holiday stealing spree. Hopefully they’ll stay behind bars where they belong for the holidays. Seems they have all had plenty of chances to learn their lesson, but instead continued down the path of being a career criminals. This time they chose to break the law in the wrong County.”

Deputies responded to a call at Target Dec. 22 about a possible shoplifting. It was the eighth call for shoplifting and suspicious incidents at Target that deputies had responded to in one week.

When they arrived, deputies were told that the suspects may have also been part of previous shoplifting incidents based on video footage of the “getaway” vehicle.

The suspects were all believed to be involved in an organized retail theft operation.

Loss prevention officers told deputies about a male who tried to steal appliances from the store.

Loss prevention officers tried to stop the male and saw him get into a Honda Accord, believed to be the same vehicle matching the description in previous shoplifting incidents.

Target Loss Prevention told the FCSO that they believed several of the vehicle’s occupants were involved in previous cases from the Palm Coast and Sanford Target stores.

Deputies made contact with the driver of the suspect vehicle, 41-year-old Teddy Cooper, who agreed to speak with deputies and allow a search of the vehicle.

Deputies found a pipe, several small baggies with a brown powder substance, a while rock-like substance, and a white powdery substance.

In total, deputies recovered 2.75 grams of Fentanyl, 3.09 grams cocaine, and 0.87 grams of heroin in the vehicle.

Deputies also recovered a glass pipe with narcotic residue that tested positive for cocaine, which was found where 30-year-old passenger Dominique Fuller was sitting in the car’s rear seat.

Based on Target’s internal investigation, surveillance also showed the same individual, 61-year-old David Bumgardner, committing retail theft on Sept. 13 for $377 and on Dec. 17 for $569 as the subject was seen exiting the store with items.

Deputies were able to confirm that Bumgardner was the subject on Sept. 13 and Dec. 17; he was all seen in video footage returning a box of Legos for $53 without a receipt and receiving a gift card, which is when law enforcement was contacted.

One Target theft incident resulted in $1,300 of Legos being stolen, and the fraudulently returned item is believed to be part of that theft.

Cooper’s vehicle was positively identified in multiple retail theft incidents at Target stores in Central Florida as the “get-away” vehicle for Bumgardner, and was also used as the “get-away” vehicle when the $1,300 of Legos were stolen.

There was a total loss of $1,258 for the three incidents at the Palm Coast Target.

Cooper is no stranger to law enforcement. He has 32 previous felony arrests for Grand Theft, Assault, Possession and Sale of Cocaine, Loitering and Prowling, Driving While License Suspended/Revoked, Prostitution, Weapons Offense (Deliver/Possess/Sell Altered Firearm), Possession of Marijuana, Principal Trafficking in Oxycodone, Grand Retail Theft, and Tampering with Evidence.

Bumgardner is a Registered Sex Offender. He’s previously been arrested for Failure to Register as a Sex Offender by the Daytona Beach Police Department and Trespassing. Additionally, he’s been arrested in Louisiana and California for Simple Burglary, Simple Arson, Criminal Mischief, Distribution of Quaaludes, Carrying a Dangerous Weapon, Providing False IS to Law Enforcement, Causing Fire of Property, Petit Theft, Burglary, Indecent Exposure, and Disorderly Conduct.

Another participant, John Firethunder, is currently out of jail on bond from Seminole County for Retail Theft. He’s been previously arrested for Fraud/Swindle, Loitering, Retail Theft, Possession of Cocaine, Destroying Evidence, Possession of Drug Paraphernalia, Trespassing, Aggravated Assault with a Deadly Weapon, Felony Petit Theft, Resist Officer without Violence, False Name Given to Law Enforcement Upon Arrest, Driving While License Suspended/Revoked. Additionally, he’s been charged out of state for DUI, Possession of Drug Paraphernalia, Possession with Intent to Sell/Deliver Marijuana, Robbery with Dangerous Weapon, First Degree Arson, Larceny, Possession of Stolen Goods/Property, Assault, and Shoplifting.

Fuller has previously been arrested for Possession of Marijuana, Resisting Officer without Violence, Possession of Drug Paraphernalia, Battery, and Trespassing.

All four suspects were arrested and transported to the Sheriff Perry Hall Inmate Detention Facility.

Cooper was arrested for Possession of Fentanyl, Possession of Cocaine, Possession of Heroin, Dealing in Stolen Property, Organized Retail Theft, and Shoplifting.

Bumgardner was arrested for Dealing in Stolen Property and Resisting Officer without Violence.

Firethunder was arrested for Organized Retail Theft, Petit Theft 3rd Degree, and Resist Recovery of Stolen Property.

Fuller was arrested for Possession of Drug Paraphernalia.

USA-IT joined Florida TaxWatch and the World Trade Center Miami for a roundtable discussion on new approaches to combat illegal trade.

Hernan Albamonte, head of illicit trade prevention U.S., Philip Morris International spoke on the illicit trade of tobacco products and its connection to other forms of illegal trade:

“Why is it so popular, the illicit trade of tobacco products? Because it’s a low-risk, high-reward business opportunity for criminals. You can buy a 40-foot container of cigarettes that will cost you around $100,000 in China. You bring it to the U.S. and put it in New York and Florida, in some high-tax jurisdiction, and you will probably get $2.3 million. And the risk of going to jail because of illicitly trading tobacco is minimal.”

“It’s not about the illicit trade of certain products,” Albamonte said. “It’s the entire ecosystem of illicit activities, which includes corruption, money laundering, cybercrime, environmental crimes, human trafficking and exploitation as well. It’s a combination of many factors, and I would like not to create a perception that these are isolated cases or isolated crimes; they are all together, converge and are managed by the same organizations.”

He added: “If you would know that by buying a counterfeit sneaker you would be financing people who are bringing drugs into your community, I’m sure most people would say, ‘You know what? You’re not selling that here.’”

Ned Bowman, executive director of the Florida Petroleum Marketers Association commented on the illegal siphoning and selling of gasoline:

“It’s a constant. Criminals find another way to get around. We were able to convince law enforcement that this is a bomb going down the highway … It’s inside the car, and that van is going down the road, tilted up because it has so much fuel.”

Keith Space, vice chairman of the Florida Restaurant and Lodging Association’s Miami chapter spoke to increased illicit activities surrounding large events:

“As an industry, we can really help complement any of the programs that take place at the state level, but that whack-a-mole strategy of it constantly moving — just because we close one door doesn’t mean it goes away,” he said. “We want those big events, those big concerts and sporting events, (but) if we want to enjoy the benefits of those things, then we have to be vigilant about managing those illicit activities that come as a result.”

Read more here.

The USCGC Vigilant crew (WMEC 617) offloaded illegal narcotics worth an estimated $236 million on Wednesday in Port Everglades before returning to homeport in Port Canaveral.

The crew of the 67-year-old Vigilant offloaded more than 17,000 pounds of cocaine and marijuana following a 45-day patrol in the Eastern Pacific Ocean. An embarked U.S. Coast Guard law enforcement detachment augmented the ship’s crew leveraging the service’s unique capabilities and authorities to perform law enforcement operations in international waters.

The drugs, which include nearly 12,000 pounds of cocaine and more than 5,000 pounds of marijuana, were seized during five interdictions conducted by crews of the Vigilant, USCGC Tampa (WMEC 902), and the Royal Canadian Navy’s HMCS Harry Dewolf (AOPV 430) in international waters off the coasts of Mexico, Central and South America.

Numerous U.S. and partner nation agencies cooperate to combat transnational organized crime.

“The successful interdiction of over 17,000 pounds of illegal narcotics and the apprehension of 17 suspected traffickers are the result of tremendous teamwork,” said Cmdr. Jay Guyer, commanding officer of the Vigilant. “We are thankful for coordinated efforts across the U.S. Coast Guard, the Department of Defense, Customs and Border Protection, as well as our international partners from Canada and throughout Central and South America.”

Vigilant, a 210-foot Reliance-class medium endurance cutter, patrols the Caribbean Sea and Eastern Pacific Ocean, performing counter-drug operations, migrant interdiction operations, search and rescue, and fisheries enforcement.

Tampa, FL – U.S. District Judge Susan C. Bucklew has sentenced Diego Fernando Cardona Lozano (46, Cali, Colombia), also known as “El Doctor” and “Pomada,” to 17 years and 6 months in federal prison for conspiring to import cocaine into the United States and conspiring to commit international money laundering. The court also ordered Cardona Lozano to forfeit approximately $1.4 million, which are traceable to proceeds of the offense.

Cardona Lozano had pleaded guilty on December 20, 2019.

According to court documents, Cardona Lozano was the leader of a transnational criminal organization that used the port of Buenaventura, Colombia, to distribute thousands of kilograms of cocaine worldwide and launder drug proceeds from other countries back to Colombia through the Black Market Peso Exchange. The organization concealed cocaine within legitimate shipping containers bound for ports of entry worldwide by obtaining shipping manifests to identify particular destinations where associates could retrieve the cocaine with the assistance of corrupt port employees and officials. More than 2,000 kilograms of cocaine were seized in Colombia, Mexico, and Costa Rica in connection with this conspiracy. In addition, money laundering activities carried out in North America, Australia, and the Netherlands were tied to the organization.

This case was investigated by the Panama Express Strike Force, a standing Organized Crime Drug Enforcement Task Force (OCDETF) comprised of agents and analysts from the Drug Enforcement Administration, the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Coast Guard Investigative Service, the Naval Criminal Investigative Service, and the U.S. Southern Command’s Joint Interagency Task Force South. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. It was prosecuted by Assistant United States Attorney Dan Baeza.

Miami, Florida – A man who coerced two women and a girl into selling themselves for sex in Miami during the 2020 Superbowl was found guilty of commercial sex trafficking by a federal jury in Ft. Lauderdale this week.

During the eight-day trial, Assistant U.S. Attorneys Alejandra L. López and Brian Dobbins presented evidence that in January 2020, Edward Walker, 48, of New Haven, Connecticut, brought two adult women and a 17-year-old girl to Miami from Connecticut to engage in commercial sex acts during the SuperBowl.  While in Miami, Walker emotionally, psychologically, and financially coerced the victims into soliciting customers and having sex with them in exchange for money, all of which Walker kept.  Additional evidence showed that after the Superbowl in Miami, Walker planned to take the victims to Chicago, Illinois (during the NBA All-Star Game), New Orleans, Lousiana (during Mardi Gras), Las Vegas, Nevada, and other places to further sexually exploit them.

The jury found Walker guilty of sex trafficking by force and coercion, sex trafficking of a minor and by force and coercion, and transporting a person for sexual activity.  U.S. District Judge James I. Cohn will sentence Walker on January 6, 2022, in federal court in Ft. Lauderdale.  He faces a sentence of up to life in prison.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorney’s Offices and the Criminal Divisions 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.

Juan Antonio Gonzalez, Acting U.S. Attorney for the Southern District of Florida; George L. Piro, Special Agent in Charge, FBI Miami; and Alfredo Ramirez, III, Director of Miami-Dade Police Department (MDPD), announced the guilty verdict.

This case was investigated by the FBI’s Child Exploitation and Human Trafficking Task Force, in partnership with MDPD’s Human Trafficking Squad, and the South Florida Human Trafficking Task Force.  FBI New Haven; Homeland Security Investigations Miami; Department of Health and Human Services, Office of Inspector General, Miami Office; Miami Beach Police Department; and Miami-Dade State Attorney’s Office assisted.

To report suspected human trafficking or to obtain resources for victims, please call 1-888-373-7888; text “BeFree” (233733), or live chat at HumanTraffickingHotline.org.  The toll-free phone, SMS text lines, and online chat function are available 24 hours a day, 7 days a week, 365 days a year.  Help is available in English, Spanish, Creole, or in more than 200 additional languages.  The National Hotline is not managed by law enforcement, immigration or an investigative agency.  Correspondence with the National Hotline is confidential and you may request assistance or report a tip anonymously.

To learn more about the National Resource Hotline visit www.humantraffickinghotline.org.  To learn more about the U.S. Department of Justice’s efforts to combat human trafficking visit www.justice.gov/humantrafficking.

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 at https://pacer.flsd.uscourts.gov, under case no. 20-cr-20087.

USA-IT partners Scott Shalley of the Florida Retail Federation and John Holub of the Pennsylvania Retailers’ Association write on illegal trade’s impacts to retailers and why we need cross-sector partnerships to fight back:

“In the midst of a once-in-a-generation pandemic, other problems —some of which exist beneath the surface, beyond the public eye —that also negatively impact our communities were exacerbated. Namely, the dangerous proliferation of illegal trade. As retailers, we know that illegal trade is an age-old problem in Florida and Pennsylvania, and for our industries across the nation. Now more than ever, we need new solutions to fight it.”

“Both our states share vast transportation infrastructure that serves as major hubs for both legal and illegal goods. Our ports are some of the busiest in the world, serving as ideal gateways for drugs and other contraband to flow into our states. According to the latest Drug Enforcement Administration (DEA) data, Florida had the largest amount of cocaine seizures by weight in 2019, while Pennsylvania was third. These kinds of activities threaten our state and our communities. Beyond the social costs that are typically associated with illegal trade, there are also significant costs to taxpayers. Take for example, the illegal tobacco trade, which robs the Florida and Pennsylvania state governments of a whopping $174 million and $185 million a year, respectively.”

“Tackling illegal trade is not an easy task, but it is a crucial one if we are to protect our communities, our businesses, and our country. No one government or single industry, like the retail industry, can address this complex and multifaceted problem on its own. We all have a role to play, and partnerships like USA-IT are key to stopping illegal trade and creating a more fair, secure, and prosperous future for both the Sunshine State and the Keystone State.”

Read more here.

LEXINGTON, Ky. – A Hollywood, Florida, woman, Janaina Nascimento, 38, was sentenced on Thursday, by U.S. District Judge Karen Caldwell, to six months in federal prison, after previously being convicted of selling counterfeit Ethicon Surgicel® Original Hemostat (“Surgicel”), an absorbable surgical mesh used to control bleeding, that was ultimately purchased by the University of Kentucky Medical Center.

Nascimento pled guilty to one count of introducing into interstate commerce a “misbranded” medical device, in violation of the Food, Drug, and Cosmetic Act.  In her plea agreement, Nascimento admitted that in January 2019, she purchased 70 boxes of Surgicel from a distributor in the United Arab Emirates.  When she attempted to re-sell the product to a United States purchaser, that buyer cautioned her that the Surgicel was not authorized for sale in the United States, pointing to a warning label on the box that stated “NOT FOR RE-EXPORT TO THE U.S.A.”  Instead of investigating potential problems with the Surgicel, Nascimento removed individual packages of the product from their boxes with the warning label, and sold 828 such packages to a company called XS Supply, LLC, which then resold those 828 units to the University of Kentucky Medical Center, in April 2019.  After complaints from several surgeons about the product, an investigation determined that the 828 units of Surgicel sold by Nascimento were a non-sterile counterfeit.

Following her term of imprisonment, Nascimento will be on supervised release for a period of one year, during which time she will be prohibited from operating or working for any company engaged in the sale of medical devices.  Nascimento also paid restitution of $24,012 to the University of Kentucky Medical Center.

Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Mark S. McCormack, Special Agent in Charge, U.S. Food and Drug Administration, Office of Criminal Investigations, Metro Washington Field Office; and Phillip Burnett, Jr., Acting Commissioner of the Kentucky State Police, jointly announced the sentence.

The investigation was conducted by the U.S. Food and Drug Administration, Office of Criminal Investigations and the Kentucky State Police.  The United States was represented by Assistant U.S. Attorney Paul McCaffrey.

CINCINNATI— As E-Commerce is a growing segment of the U.S. economy, and consumer habits continue to change, U.S. Customs and Border Protection (CBP) officers continue to stop shipments that contain illicit goods that pose economic security risks. On January 14, in two separate locations, Cincinnati, Ohio, and Louisville, Kentucky, CBP officers halted shipments, arriving from Hong Kong, which contained more than 800 counterfeit designer bracelets.

CBP officers in Cincinnati detained two parcels heading to a residence in West Palm Beach, Florida. CBP officers inspected the parcels to determine the admissibility of its contents in accordance with CBP regulations.

Inside the first box officers found 267 Cartier bracelets, and the other box contained another 137 Cartier bracelets.

On the same night, officers in Louisville were inspecting different parcels to determine their admissibility. A shipment arriving from same location in Hong Kong and heading to the same residence in West Palm Beach, Florida as Cincinnati’s parcel, was inspected and found to contain 401 Cartier rings and bracelets.

The jewelry pieces were reviewed by an import specialist who determined the items were counterfeit. If these items were real, the total MSRP for Cincinnati’s seizure would have been over $4.17 million, while Louisville’s seizure would have been more than $4.55 million; a total of $8.72 million

“This is a significant seizure for CBP, but unfortunately, CBP officers see counterfeit shipments like this every day,” said Richard Gillespie, Port Director-Cincinnati. “I’m extremely proud of these officers determination in stopping illicit shipments, and our commitment to protecting the American economy.”

“Driven by the rise in E-commerce, the market for counterfeit goods in the United States has shifted in recent years from one in which consumers often knowingly purchased counterfeits to one in which counterfeiters try to deceive consumers into buying goods they believe are authentic,” said Thomas Mahn, Port Director-Louisville.. Consumers are unaware that they’re buying a dangerous product as the counterfeit is just that good.”

U.S. Customs and Border Protection (CBP) has the authority to detain, seize, forfeit, and ultimately destroy merchandise seeking entry into the United States if it bears an infringing trademark or copyright that has been registered with the U.S. Patent and Trademark Office (USPTO) or the U.S. Copyright Office (USCOP), and has subsequently been recorded with CBP. As an intellectual property right (IPR) owner, you can partner with CBP to receive border enforcement of your registered trademarks and copyrights through CBP’s e-Recordation Program.  There are several steps an IPR owner can take to ensure their trademarks and copyrights are enforced at all U.S. Ports of Entry.

Every year, CBP seizes millions of counterfeit goods from countries around the world as part of its mission to protect U.S. businesses and consumers. These goods include fake versions of popular products, such as smartphones and related accessories, electronics, apparel, shoes, cosmetics, and high-end luxury goods, as well as goods posing significant health and safety concerns, such as counterfeit pharmaceuticals, bicycle and motorcycle helmets, medical devices, supplements and other consumables. Sold online and in stores, counterfeit goods hurt the U.S. economy, cost Americans their jobs, threaten consumer health and safety, and fund criminal activity. Visit the National IPR Coordination Center for more information about IPR including counterfeiting and piracy.

Nationwide in Fiscal Year 2020, CBP seized 26,503 shipments containing goods that violated intellectual property rights. The total estimated value of the seized goods, had they been genuine, was nearly $1.3 billion. CBP has established an educational initiative to raise consumer awareness about the consequences and dangers that are often associated with the purchase of counterfeit and pirated goods. Information about the Truth Behind Counterfeits public awareness campaign can be found at https://www.cbp.gov/FakeGoodsRealDangers.

CBP’s border security mission is led at ports of entry by CBP officers from the Office of Field Operations.  Please visit CBP Ports of Entry to learn more about how CBP’s Office of Field Operations secures our nation’s borders. Learn more about CBP at www.CBP.gov.

U.S. Customs and Border Protection is the unified border agency within the Department of Homeland Security charged with the management, control and protection of our nation’s borders at and between official ports of entry. CBP is charged with securing the borders of the United States while enforcing hundreds of laws and facilitating lawful trade and travel.