BROTHERS PLEAD GUILTY TO TERRORISM VIOLATIONS, ASSAULTING TWO U.S. MARSHALS

FROM:  U.S. JUSTICE DEPARTMENT
Thursday, March 12, 2015
Two Florida Brothers Plead Guilty to Terrorism Violations and Assault on Two Deputy U.S. Marshals
Younger Sibling Plotted to Attack New York City with a Weapon of Mass Destruction

Assistant Attorney General for National Security John Carlin, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Director Stacia A. Hylton of the U.S. Marshals Service, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and members of the South Florida Joint Terrorism Task Force (JTTF) announced today that Raees Alam Qazi and his brother, Sheheryar Alam Qazi, pleaded guilty to terrorism violations and to assaulting two Deputy U.S. Marshals while in custody.

During the hearing, the Qazi brothers acknowledged that Raees Alam Qazi, the younger brother, was going to initiate an attack using a weapon of mass destruction in New York City and that he had been financially and emotionally supported by his older brother, Sheheryar Alam Qazi, who encouraged him to launch the attack.

“With today’s guilty pleas, Raees Qazi and his brother Sheheryar Qazi are being held accountable for their roles in a plot to conduct a terrorist attack using a weapon of mass destruction in New York City and their assault on two federal officers during their pretrial detention,” said Assistant Attorney General Carlin.  “This case highlights our commitment to pursue any individuals who would seek to conduct an attack on U.S. soil or to injure law enforcement officials who risk their lives to protect us.  I want to thank the many agents, analysts, and prosecutors who are responsible for this successful result.”

“The plot by Raees Qazi to perform a terrorist attack in New York City – and his older brother’s financial support of that plot – was intended to further Al Qa’ida’s message in the United States,” said U.S. Attorney Ferrer.  “The Qazi brothers later attacked federal law enforcement agents.  As today’s guilty pleas demonstrate, we will respond by holding those who plan terrorist acts on American soil accountable.  This case serves as an example of our commitment to protecting civilians from violent jihadi attacks.”

“Any attempt on the life of a law enforcement official is heinous,” said Director Hylton.  “To attempt to murder two Deputy U.S. Marshals while in a federal cellblock is a total disregard for life and the entire judicial process.”

“The Qazi brothers are a great example why the FBI’s number one priority is counterterrorism,” said Special Agent in Charge Piro.  “We remain committed in our steadfast efforts to detect, deter and disrupt every threat to the United States.”

Raees Alam Qazi, 22, and his brother, Sheheryar Alam Qazi, 32, were living in Oakland Park, Florida, in November 2012 when they were arrested and charged with conspiracy to provide material support to terrorists and conspiracy to use a weapon of mass destruction (explosives).  In January 2015, a federal grand jury added additional terrorism charges and five counts of conspiracy, assault and attempted murder relating to an attack on two Deputy U.S. Marshals in April 2014 while the Qazis were in federal custody.

Raees Alam Qazi pleaded guilty to one count of conspiring to provide material support and resources to terrorists in preparation for the use of a weapon of mass destruction, one count of attempting to provide material support to a foreign terrorist organization and one count of conspiring to assault a federal employee.  Under the terms of the plea agreement, the parties jointly agreed to recommend a 32-year prison sentence for Raees Qazi.

Sherheyar Alam Qazi pleaded guilty to one count of conspiring to provide material support and resources to terrorists in preparation for the use of a weapon of mass destruction and one count of conspiring to assault a federal employee.  Under the terms of the plea agreement, the parties jointly agree to recommend a 17-year prison sentence for Sheryheyar.

The sentencing hearing for both brothers is currently set before U.S. District Judge Beth Bloom of the Southern District of Florida on June 5.

Raees Alam Qazi and Sheheryar Alam Qazi face a potential statutory maximum sentence of 35 years and 20 years, respectively.

The brothers are naturalized U.S. citizens from Pakistan.

DOJ ANNOUNCES ITALIAN SHIPPING COMPANY WITH PAY $2.75 MILLION IN FINES

FROM:  U.S. JUSTICE DEPARTMENT
Friday, March 6, 2015
Italian Shipping Company Fined $2.75 Million for Environmental Crimes

Carbofin S.p.A., an Italian domiciled company that owned and operated the M/T Marigola was sentenced to pay an overall criminal penalty of $2.75 million by the Honorable Virginia M. Hernandez Covington for knowingly falsifying the vessel’s oil record book in violation of the Act to Prevent Pollution from Ships (APPS), announced the Department of Justice Environment and Natural Resources Division and the U.S. Attorney’s Office for the Middle District of Florida.

Out of the $2.75 million criminal penalty, $600,000 will be paid to the National Marine Sanctuary Foundation for the benefit of Florida’s only national marine sanctuary: the Florida Keys National Marine Sanctuary.  The funds are to be used to support the protection and preservation of natural resources located in and adjacent to the sanctuary, including the cleanup and remediation of pollution in the sanctuary; restoration of injured resources, particularly coral reefs and seagrass beds and species dependent on those habitats.  The funds will also support scientific research in, and public education about, the Florida Keys National Marine Sanctuary.

During 2013 and 2014, on numerous international voyages, senior members of the crew of the M/T Marigola directed the installation and use of a so-called “magic hose” to dispose of sludge, waste oil and oil-contaminated bilge water directly into the sea bypassing required pollution prevention equipment.  On April 16, 2014, the vessel called upon the Port of Tampa to load anhydrous ammonia.  Coast Guard inspectors boarded the vessel and were approached by two junior engineering crew members who showed the inspectors a video of the “magic pipe” hooked up between piping leading to the bilge tank and the vessel’s boiler blow down valve.  The boiler blow down valve is a discharge point for the boiler to release hot water and steam.  The inspectors had the valve removed and an oily black substance was discovered.  Oil samples taken from the “magic hose,” the bilge piping and the boiler blow down valve matched.  The Chief Engineer, Carmelo Giano, and the Second Engineer, Alessandro Messore, had previously pleaded guilty and were sentenced for their role in ordering the use of the “magic hose” to illegally discharge oily waste into the sea.

“We are extremely grateful to the U.S. Department of Justice in supporting the work of the National Marine Sanctuary Foundation on behalf of the nation's marine sanctuaries, including here at the Florida Keys National Marine Sanctuary,” said President and CEO Jason Patlis of the National Marine Sanctuary Foundation.  “These funds will go to critical education, research and restoration activities, including deployment of mooring buoys, coral reef restoration and study and mitigation of invasive species impacts.”

“Marine environmental protection is one of the Coast Guard's primary missions,” said Captain Gregory Case of the Port at Sector St. Petersburg.  “The Coast Guard takes marine pollution seriously and works cohesively with our partner agencies to hold those who violate international law accountable for their actions.  We anticipate the results of this case will deter future illegal oil discharges into the sea.”

Consistent with requirements in the APPS regulations, a vessel like the M/T Marigola, must maintain a record known as an oil record book in which transfer and disposal of all oil-contaminated waste and the discharge overboard and disposal otherwise of such waste, must be fully and accurately recorded by the person or persons in charge of the operations.  Oil-contaminated bilge waste can be discharged overboard if it is processed through on-board pollution prevention equipment known as the oily water separator (OWS).  Waste oil and sludge can only be disposed of using an on-board incinerator or by discharging the waste to a shore-side facility, barge or tanker truck.  Giano and Messore falsified the oil record book by not recording that oily waste was being disposed of through the boiler blow down valve.

During the course of the investigation, it was revealed that the oil record book for the M/T Marigola was falsified since at least June 16, 2013.  The investigation also revealed that illegal oily waste discharges had occurred from two other vessels owned and operated by Carbofin, the M/T’s Marola and Solaro.  On the M/T Marola, a “magic hose” was used between on or about December 2012 and April 2013 and on the M/T Solaro between on or about February to August 2013.

The case was investigated by U.S. Coast Guard Sector St. Petersburg and the U.S. Coast Guard Investigative Service.  The case was prosecuted by Kenneth E. Nelson of the Environmental Crimes Section of the Department of Justice and Matthew Mueller of the U.S. Attorney’s Office of the Middle District of Florida.

2 DOCTORS AND SPOUSES TO PAY $1.3 MILLION TO SETTLE ALLEGATIONS OF HEALTH CARE FRAUD

FROM:  U.S. JUSTICE DEPARTMENT
Monday, February 23, 2015

Two Florida Couples Agree to Pay $1.13 Million to Resolve Allegations that They Accepted Kickbacks in Exchange for Home Health Care Referrals
Two South Florida medical doctors and their wives have agreed to settle allegations that they violated the False Claims Act when their wives accepted sham marketer salaries in exchange for their husbands’ referrals to a home health care company called A Plus Home Health Care Inc., the Justice Department announced today.  Under the settlements, Dr. Alan and Lynn Buhler will pay to the United States $1.047 million and Dr. Craig and Cynthia Prokos will pay $90,000.  Dr. Buhler practices in Plantation, Florida, and Dr. Prokos practices in Jupiter, Florida.

“Kickbacks can corrupt the judgment of physicians and cause them to make decisions for their own financial benefit rather than for the benefit of their patients,” said Acting Assistant Attorney General Joyce R. Branda of the Justice Department’s Civil Division.  “We will not tolerate these conflicts of interest where Medicare patients and dollars are concerned.”

“The settlement announced today is another example of the Justice Department’s unrelenting efforts to hold accountable those who engage in kickback schemes,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida.  “Health care providers should generate business by offering their patients superior care.  Financial relationships that put profits over patients undermine the quality and care given to patients and ultimately, the integrity of our public health care program upon which millions of Americans depend.”

The United States alleged that, beginning in 2006, A Plus and its owner, Tracy Nemerofsky, engaged in a scheme to increase Medicare referrals in the heavily saturated home health care market in South Florida.  Specifically, the United States alleged that A Plus paid spouses of referring physicians for sham marketing positions in order to induce patient referrals.  Among the spouses allegedly paid by A Plus as part of this scheme were Lynn Buhler and Cynthia Prokos.  The United States alleged that the spouses were required to perform few, if any, of the job duties they were allegedly hired for and instead, the spouses’ salaries were intended as an inducement for the husband physicians to refer their Medicare patients to A Plus.  The United States also alleged that Alan Buhler received medical director payments as part of A Plus’s scheme to obtain his referrals and he attempted to hide those payments from the United States.

The United States previously settled with A Plus, Tracy Nemerofsky and five other couples that allegedly accepted payments from A Plus.

The settlements announced today resolve allegations that were brought by William Guthrie, a former director of development at A Plus, under the qui tam or whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the United States for the submission of false claims and to receive a share of any recovery.  On Jan. 6, Judge William P. Dimitrouleas dismissed Mr. Guthrie’s suit without prejudice to the United States’ right to proceed.  The lawsuit was captioned U.S. ex rel. Guthrie v. A Plus Home Health Care, Inc., 12 CV 60629 (S.D. Fla.).

“Being a physician in the Medicare program is a privilege, not a right,” said Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG).  “Physicians who engage in such in-your-face kickback schemes to refer Medicare patients to certain home health companies in exchange for money will be held accountable for their behavior.  Our agency will continue to crack down on kickbacks, which undermine impartial medical judgment, corrode the public’s trust in the health care system and waste scarce Medicare funding.”

These settlements illustrate the government’s emphasis on combating health care fraud and mark another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services.  The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.  One of the most powerful tools in this effort is the False Claims Act.  Since January 2009, the Justice Department has recovered a total of more than $23.7 billion through False Claims Act cases, with more than $15.2 billion of that amount recovered in cases involving fraud against federal health care programs.

The investigation of this matter reflects a coordinated effort among the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Southern District of Florida, HHS-OIG and the FBI.

The claims resolved by the settlements are allegations only and there has been no determination of liability.

HOME HEALTH COMPANY OWNER RECEIVES 106 MONTH PRISON SENTENCE FOR FRAUD

FROM:  U.S. JUSTICE DEPARTMENT 
Monday, January 26, 2015
Owner of Miami Home Health Company Sentenced to 106 Months in Prison for $30 Million Health Care Fraud Scheme

The owner and operator of a Miami home health care agency was sentenced today to 106 months in prison for his participation in a $30 million Medicare fraud scheme.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.

Ramon Regueira, 66, of Miami, pleaded guilty to one count of conspiracy to commit health care fraud on Nov. 13, 2014.  In addition to the prison sentence, U.S. District Judge Cecilia M. Altonaga of the Southern District of Florida ordered Regueira to pay $21 million in restitution, both jointly and severally with his co-conspirator.

According to his plea agreement, Regueira was an owner of Nation’s Best Care Home Health Corp. (Nation’s Best), a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries.  Regueira admitted that he and his co-conspirators operated Nation’s Best for the purpose of billing the Medicare program for, among other things, expensive physical therapy and home health care services that were not medically necessary or not provided.

Specifically, Regueira admitted that he and his co-conspirators paid kickbacks and bribes to patient recruiters who provided patients to Nation’s Best, as well as prescriptions, plans of care (POCs) and certifications for medically unnecessary therapy and home health services.  Regueira and his co-conspirators then used these prescriptions, POCs and medical certifications to fraudulently bill the Medicare program for unnecessary home health care services.

From January 2007 through January 2011, Nation’s Best submitted approximately $30 million in claims for home health services that were not medically necessary or not provided, and Medicare paid approximately $21 million for these fraudulent claims.

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

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion.  In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

FLORIDA HOSPITAL CEO PLEADS GUILTY FOR ROLE IN $67 MILLION MENTAL HEALTH CARE FRAUD CASE

FROM:  U.S. JUSTICE DEPARTMENT 
Tuesday, November 18, 2014
Miami-Area Hospital Chief Operating Officer Pleads Guilty in $67 Million Mental Health Care Fraud Scheme

The former chief operating officer of a Miami-area hospital pleaded guilty today for his role in a mental health care fraud scheme that resulted in the submission of more than $67 million in fraudulent claims to Medicare by a state-licensed psychiatric hospital located in Hollywood, Florida, that purported to offer both inpatient and outpatient mental health services.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Derrick Jackson of the U.S. Health and Human Services Office of Inspector General’s (HHS-OIG) Florida region made the announcement.

Christopher Gabel, 61, of Davie, Florida, the former Chief Operating Officer (COO) of Hollywood Pavilion LLC (HP), pleaded guilty before U.S. District Judge Cecilia M. Altonaga in the Southern District of Florida to one count of conspiracy to commit health care fraud and one count of conspiracy to defraud the United States and pay and receive health care kickbacks.  Gabel was charged in an indictment returned on May 8, 2014.

According to Gabel’s admissions in connection with his guilty plea, between April 2003 and September 2012, HP submitted false and fraudulent claims to Medicare for treatment that was not medically necessary or not provided to patients.  As COO during that time, Gabel supervised HP’s staff at both its inpatient and outpatient facilities, where Medicare beneficiaries were admitted to HP regardless of whether they qualified for mental health treatment, and were often admitted before seeing a doctor.

Gabel admitted that HP obtained Medicare beneficiaries from across the country by paying bribes and kickbacks to various patient brokers.  Gabel instructed the patient brokers to falsify invoices and marketing reports in an effort to hide, and cover up the true nature of the bribes and kickbacks they were receiving from HP.  From 2003 through August 2012, HP billed Medicare approximately $67 million for services that were not properly rendered, for patients that did not qualify for the services being billed, and for claims for patients who were procured through bribes and kickbacks.  Medicare reimbursed HP nearly $40 million for those claims.

Karen Kallen-Zury, Daisy Miller, Michele Petrie and Christian Coloma were convicted at trial in June 2013 for their roles in this scheme.  Kallen-Zury, HP’s former chief executive officer, was sentenced to 25 years in prison.  Miller, the clinical director of HP’s inpatient facility, was sentenced to 15 years in prison; and Petrie, the head of HP’s intensive outpatient program, was sentenced to six years in prison.  Coloma, the director of physical therapy for an entity associated with HP, was sentenced to 12 years in prison.  Kallen-Zury, Miller and Petrie were ordered to pay nearly $40 million in restitution, and Coloma was ordered to pay more than $20 million in restitution.

The case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida.  The case is being prosecuted by Trial Attorneys Nicholas E. Surmacz, Andrew H. Warren and L. Rush Atkinson of the Criminal Division’s Fraud Section.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion.  In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

JUSTICE ANNOUNCES INDICTMENTS IN FLORIDA MORTGAGE FRAUD SCHEME

FROM:  U.S. JUSTICE DEPARTMENT 
Monday, March 31, 2014
Seven Indicted in Florida in Mortgage Scheme

Seven individuals have been indicted in the Southern District of Florida for their alleged participation in a mortgage fraud scheme in the Miami area.

The charges were announced by Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, Inspector General David A. Montoya of the Department of Housing and Urban Development and Acting Inspector General Michael P. Stephens of the Federal Housing Finance Agency’s Office of the Inspector General.

A 19-count indictment, returned on March 13, 2014, by a federal grand jury and unsealed today, charges Miami-Dade County residents Luis Mendez, Stavroula Mendez, Luis Michael Mendez, Lazaro Mendez, Marie Mendez, Wilkie Perez and Enrique Angulo with one count of conspiracy to commit wire and bank fraud.   Some of those defendants have also been charged with bank fraud and wire fraud.   Stavroula Mendez, Luis Michael Mendez, Lazaro Mendez and Marie Mendez were taken into custody today and made their initial appearances before United States Magistrate Judge Jonathan Goodman in Miami, while the other three defendants remain at large.

As alleged in the indictment, Luis Mendez, Stavroula Mendez, Luis Michael Mendez, Lazaro Mendez and Marie Mendez owned or controlled various real estate properties in the Miami area.   They enlisted mortgage brokers and other individuals, including Perez and Angulo, to recruit straw buyers to act as qualifying mortgage applicants to fraudulently purchase condominiums in the properties.   The defendants prepared and caused to be prepared loan documents containing false statements and representations relating to the buyers’ income, assets and other information necessary to enable lenders to assess the buyers’ qualifications to borrow money, which induced the lenders to make loans to finance the condominiums.   Luis Michael Mendez and Marie Mendez are alleged to have submitted their own fraudulent loan applications for two condominiums, and they, as well as Luis Mendez and Stavroula Mendez, advanced the buyers cash to close the transactions.

After the loans were funded, the defendants allegedly caused fraudulent payments to be made from the loan proceeds to pay kickbacks through shell companies to the brokers, recruiters and straw buyers, as well as to pay the mortgages to conceal the conspiracy.   Eventually, the conspirators were unable to make mortgage payments, causing many of the condominium units to go into foreclosure and leading to losses by the lenders.

The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

The case is being investigated by HUD-OIG and FHFA-OIG.  The case is being prosecuted by Trial Attorneys Gary A. Winters and Brian Young of the Criminal Division’s Fraud Section.

45TH SPACE WING SUPPORTED SPACEX SUCCESSFUL LAUNCH

FROM:  U.S. AIR FORCE 

The 45th Space Wing supported Space Exploration Technologies to complete a successful launch of the SES-8 communications satellite Dec. 3, 2013, at Cape Canaveral Air Force Station, Fla. The satellite will be released in a super synchronous transfer orbit stretching above its 22,300-mile-high operating post. (Courtesy Photo)

CAPE CANAVERAL AIR FORCE STATION, Fla. (AFNS) --
The 45th Space Wing supported Space Exploration Technologies, or SpaceX, to complete a successful launch of the SES-8 communications satellite here Dec. 3.

Airmen, Air Force civilians and contractors from the 45th Space Wing provided weather forecasts, launch and range operations, security, safety, medical and public affairs support. The wing also provided its vast network of radar, telemetry, optical and communications instrumentation to facilitate a safe launch.

"For the second time in a little more than two weeks, the 45th Space Wing and our mission partners have worked together to ensure another successful launch here on the Eastern Range," said Brig. Gen. Nina Armagno, the commander of the 45th Space Wing, who also served as the launch decision authority for this mission. "It's gratifying to see a varied, high-performing team like this come together time and time-again. We are truly grateful for the outstanding space team we have here on the space coast,"

Launched aboard a SpaceX Falcon 9 rocket, the payload flew on the Falcon 9 v1.1 configuration with upgraded Merlin 1D engines, stretched fuel tanks, and a payload fairing.

According to SES website, the launch of SES-8, which will be released in a super synchronous transfer orbit stretching above its 22,300-mile-high operating post, requires two burns of the Falcon 9 second stage. The first firing will place SES-8 in a low-altitude parking orbit, then the second burn is designed to inject the 7,055-pound craft in an oval-shaped orbit. The SES-8 will maneuver itself into a circular orbit 22,300 miles over the equator, sliding into position in the geostationary arc at 95 degrees east longitude.

The satellite features up to 33 Ku-band transponders (36 MHz equivalent). SES-8 will be co-located with NSS-6 at the orbital location of 95 degrees east to provide growth capacity over Asia-Pacific. The spacecraft's high performance beams will support the rapidly growing markets in South Asia and Indo-China, as well as provide expansion capacity for Direct to Home, Very small aperture satellite terminal and government applications.

FLORIDA RESIDENT CHARGED WITH UNREGISTERED SALES OF SECURITIES

FROM:   SECURITIES AND EXCHANGE COMMISSION 
SEC Charges Florida Resident with Unregistered Sales of Securities

On July 23, 2013, the Securities and Exchange Commission filed settled charges against Florida resident Jorge Bravo, Jr., for unlawful sales of millions of shares of a microcap company to the public without complying with the registration requirements of the Securities Act of 1933.

According to the SEC's complaint filed in the U.S. District Court for the Southern District of New York, from April 2009 until May 2010, Bravo unlawfully sold approximately 93 million shares of stock of AVVAA World Health Care Products, Inc. in unregistered transactions for proceeds of approximately $523,000. The complaint alleges that Bravo obtained the shares through three "wrap around agreements." The wrap around agreements involved debts that AVVAA supposedly owed to its officers, affiliates, or other persons closely associated with the company ("Affiliates") for unpaid compensation for services rendered. Under the wrap around agreements, the Affiliates assigned to Bravo the debts that AVVAA purportedly owed to them, and AVVAA consented to the assignment and agreed to modify the terms of the original debt obligation so that the debts now owed to Bravo were immediately convertible into shares of AVVAA common stock. According to the complaint, within weeks of entering into the first two agreements, and approximately four months after the execution of the third, Bravo began selling the shares he obtained under the agreements to the public. He then used some of the proceeds of the stock sales to pay the amounts owed to the Affiliates under the wrap around agreements. The complaint further alleges that Bravo had previously been involved in wrap around agreements, in his capacity as of president and chief executive of Cross Atlantic Commodities, Inc., a public company located in Weston, Florida, and that those wrap around agreements were subjects of a prior Commission enforcement action, SEC v. K&L International Enterprises, Inc., 6:09-cv-1638-GAP-KRS (M.D. Fla. Sept. 24, 2009). Bravo was not charged in that matter.

Without admitting or denying the SEC's allegations, Bravo agreed to settle the case against him by consenting to the entry of a final judgment permanently enjoining him from future violations of Sections 5(a) and 5(c) of the Securities Act; permanently enjoining him from participating in any offering of penny stock; and requiring him to pay disgorgement of $ 392,000, the amount of his ill-gotten gains, plus prejudgment interest of $ 53,866 and a civil penalty in the amount of $150,000. The settlement must be approved by the court.

The SEC's investigation was conducted by New York Regional Office Enforcement staff Karen Lee, Christopher Ferrante, and Leslie Kazon. The Commission acknowledges the assistance of FINRA, the British Columbia Securities Commission, and the Ontario Securities Commission in this matter.

CORPORATION AND IT'S MAN SENTENCED FOR WETLANDS VIOLATIONS

FROM: U.S. ENVIRONMENTAL PROTECTION AGENCY 
Florida Man and His Corporation Sentenced for Wetlands Violations in Panama City

WASHINGTON - Brian Raphael D’Isernia, 69, of Panama City Beach, Fla., and Lagoon Landing, LLC, a corporation controlled by D’Isernia, were sentenced today in federal court in the Northern District of Florida for illegal dredging and felony wetlands violations in Panama City. The two defendants were ordered to pay a criminal fine totaling $2.25 million dollars, the largest criminal fine assessed for wetlands-related violations in Florida history. D’Isernia was sentenced to pay a $100,000 criminal fine, while Lagoon Landing, LLC was sentenced to pay a $2.15 million criminal fine, a $1 million community service payment, and a term of three years probation.

D’Isernia pleaded guilty to knowingly violating the Rivers and Harbors Act. D’Isernia was charged with dredging an upland cut ship launching basin in Allanton and the channel connecting it to East Bay between December 2009 and February 2010 without obtaining a permit.

Lagoon Landing, LLC, pleaded guilty to a felony violation of the Clean Water Act for knowingly discharging a pollutant into waters of the United States without a permit. Between 2005 and 2010, Lagoon Landing, through its agents and employees in conjunction with persons using tractors and other heavy equipment, altered and filled wetland areas of property it controlled in Allanton without obtaining a permit. The wetland areas were adjacent to and had a significant nexus to East Bay.

Lagoon Landing, LLC was also ordered to pay a $1 million community service payment to the National Fish and Wildlife Foundation, a charitable non-profit organization created by Congress. The foundation will use the money to fund projects for the conservation, protection, restoration and management of wetland, marine and coastal resources, with an emphasis on projects benefiting wetlands in and around St. Andrew Bay.

“The defendants adversely impacted wetlands, which play a critical role in maintaining water quality, providing habitat for fish and wildlife, reducing flood damage, and providing recreational opportunities for the public,” said Cynthia Giles, assistant administrator of EPA’s Office of Enforcement and Compliance Assistance. “The sentences show that EPA, in conjunction with its federal and state law enforcement partners, will vigorously investigate and seek prosecution for those who harm these essential natural resources.”

In a separate but related civil settlement, Northwest Florida Holdings, Inc., a Florida holding corporation controlled by D’Isernia, entered into an Administrative Compliance Order with the U.S. Environmental Protection Agency (EPA) that will result in the restoration of approximately 58.63 acres of wetlands and upland buffers. The wetlands will be protected from future development by a conservation easement. The corporation also agreed to study the water quality in and around the Allanton and Nelson Street Shipyards; upgrade stormwater protection for the Allanton Shipyard; withdraw applications to convert the launching basin to a marina and create a Planned Unit Development at the Allanton Shipyard; and hire someone to oversee environmental compliance.

In a second separate but related civil settlement, Northwest Florida Holdings, Inc. entered into a consent order with the Florida Department of Environmental Protection (FDEP) and agreed to conduct stormwater corrective actions and water quality studies at the Allanton Shipyard. The corporation will pay a $9,750 civil fine to the Ecosystem Management and Restoration Trust Fund, and $94,718.25 in severed dredge materials fees to the Florida Internal Improvement Trust Fund.

In a third separate but related civil settlement, Bay Fabrication, Inc., a corporation controlled by D’Isernia, entered into a consent order with FDEP and agreed to conduct stormwater corrective actions and water quality studies at the Nelson Street Shipyard. The corporation will pay a $6,000 civil fine to the Ecosystem Management and Restoration Trust Fund, and $76,923 in severed dredge materials fees to the Florida Internal Improvement Trust Fund.

In a fourth separate but related civil settlement, Peninsula Holdings, LLC, a corporation controlled by D’Isernia, entered into a Consent Order with FDEP and agreed to conduct stormwater improvements at property it owns located at 2500 Nelson Street, Panama City, Florida 32401. The corporation will pay a $1,500 civil fine to the Ecosystem Management and Restoration Trust Fund.

In a fifth separate but related civil settlement, D’Isernia and his wife Miriam D’Isernia, entered into a consent order with FDEP to remove unauthorized fill materials from property located in Panama City Beach, Fla. Brian and Miriam D’Isernia will pay a $250 civil fine to the Ecosystem Management and Restoration Trust Fund.

These cases were investigated by the EPA Criminal Investigation Division and the Coast Guard Investigative Service, in partnership with EPA Region 4, the U.S. Department of Transportation, Office of Inspector General, U.S. Army Corps of Engineers, U.S. Coast Guard Station Panama City, U.S. Department of Agriculture, and FDEP. These cases were prosecuted by the Honorable Randall J. Hensel, Assistant United States Attorney for the Northern District of Florida.

THE DEATH OF THE ELKHORN CORAL MYSTERY



Photo: Elkhorn Coral Credit: National Park Service-Wikimedia Commons

FROM: NATIONAL SCIENCE FOUNDATION
Underwater Whodunit: What's Killing Florida's Elkhorn Coral?
Scientists solve Caribbean coral mystery: human pathogens cause marine invertebrate deaths
Take one wastewater treatment plant and place it anywhere along the Caribbean coast. Then--by a means unknown to science--kill coral reefs near the plant.

"You'd have all the makings of a great mystery novel," says ecologist James Porter of the University of Georgia.

Except that, in this case, the story would be true.

Coral killer on the loose

"Between 1996 and 2012, more than half of all corals in the Florida Keys alone had died," says Porter.

The greatest decline was in elkhorn coral (Acropora palmata). The species disappeared from more than 90 percent of its former habitat.

Elkhorn coral was once the most common coral in the Caribbean. It's now protected under the U.S. Endangered Species Act.

"Most elkhorn coral that died in the Keys had signs of a disease known as white pox before its demise," says Porter.

Hot on the trail of where the white pox was coming from, Porter and other scientists ultimately identified human sewage outflows as the source of a pathogen that causes the disease.

Along with colleagues Kathryn Sutherland of Rollins College and Erin Lipp of the University of Georgia, Porter discovered that the bacterium killing the coral is also found in humans.

The mystery deepens

But where was it coming from? From the land, it turned out, not the sea: in human waste.

"When we first identified the bacterium Serratia marcescens as the cause of white pox," says Sutherland, "we could only speculate that human waste was the source of the pathogen because it's also found in the wastes of other animals."

Serratia marcescens is in the gut of humans and in that of other land-based animals.

To trace the source, the researchers collected and analyzed samples from a wastewater treatment facility in Key West, and samples from animals such as deer and seagulls.

While Serratia marcescens showed up in these non-human animals, genetic analyses demonstrated that only the strain from people matched that found in white pox-diseased corals.

Investigators on the scene

"The final piece of the puzzle," says Porter, "was to determine whether it was pathogenic to corals."

The scientists exposed fragments of elkhorn coral to the strain found in humans to find out if it would cause the disease.

The experiments were carried out in a laboratory in closed seawater tanks to eliminate any risk of infection to wild populations of corals.

"Within five days, the human strain caused the disease in elkhorn coral," says Sutherland. "We then had definitive evidence that people were the source of the pathogen."

Adds Porter, "These bacteria didn't come from the ocean. They came from us."

In humans, Serratia marcescens results in respiratory, wound and urinary tract infections, as well as in meningitis and pneumonia.

Human diseases caused by the bacterium are often linked with hospital-acquired infections in newborn infants and in immune-compromised adults.

Further studies underway

"Humans are affecting the rest of the living world in many ways, including sharing our diseases," says Sam Scheiner, National Science Foundation (NSF) director of the joint NSF-National Institutes of Health (NIH) Ecology and Evolution of Infectious Diseases (EEID) Program, which funds the research. "This work demonstrates that such sharing may be happening in ways we would never have predicted."

The five-year NSF-NIH EEID study is supported by NSF's Division of Ocean Sciences. Its focus is on how the coral pathogen is transmitted and the factors that drive the emergence of white pox outbreaks, including water quality, climate variability and human population density.

"We're concerned that disease incidence or severity may increase with rising temperatures," Lipp says, "so it's important to protect near-shore water quality in a changing climate."

Research uncovers new disease pathway

To date, the study has revealed a disease pathway--from humans to wildlife--that's the "opposite" of the traditional wildlife-to-human disease transmission model. The results have been published in the journal PLOS ONE.

The movement of pathogens from wildlife to humans is well-documented--in, for example, bird flu--but the transfer of disease-causing microbes from humans to marine invertebrates has never before been proved.

"This is the first time a human disease has been shown to cause deaths of a marine invertebrate," says Porter. "Bacteria from humans kill corals--that's the bad news. But the good news is that we can resolve it with advanced wastewater treatment facilities."

The Florida Keys region is in the process of upgrading its wastewater treatment plants. The measure, the scientists hope, will eliminate this source of the bacterium.

"We need to address the water quality conditions that favored the establishment and survival of this pathogen in the marine environment," says Porter.

For now, who's the only culprit in the "Caribbean Coral Mystery"? Surprisingly, says Scheiner, "it's none other than ourselves."

HALFWAY HOUSE OWNER SENTENCED TO PRISON FOR MEDICARE FRAUD

FROM: U.S. DEPARTMENT OF JUSTICE
Thursday, October 18, 2012

Owner and Operator of Florida Halfway House Company Sentenced to 51 Months in Prison for Role in Medicare Fraud Scheme
WASHINGTON – The owner and operator of New Way Recovery Inc., a Florida corporation that operated several halfway houses, was sentenced today to serve 51 months in prison for his role in a $205 million Medicare fraud scheme involving fraudulent claims for purported partial hospitalization program (PHP) services, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Acting Special Agent-in-Charge of the FBI’s Miami Field Office; and Special Agent-in-Charge Christopher B. Dennis of the HHS Office of Inspector General (HHS-OIG), Office of Investigations Miami Office.

Hassan Collins, 41, was sentenced by U.S. District Judge Kevin Michael Moore in the Southern District of Florida. In addition to his prison term, Collins was sentenced to serve three years of supervised release and ordered to pay $2,413,675 in restitution, jointly and severally with co-conspirators.

On June 14, 2012, Collins pleaded guilty to one count of conspiracy to receive and pay health care fraud kickbacks.

According to court documents, from approximately April 2004 through approximately September 2010, Collins, along with co-conspirators, received kickback payments in exchange for referring Medicare beneficiaries, who did not qualify for PHP treatment, for purported PHP services to American Therapeutic Corporation (ATC), a Florida corporation that operated several purported PHPs throughout Florida. Collins and his co-conspirators caused false and fraudulent claims to be submitted to Medicare for PHP services purportedly provided to Medicare beneficiaries at ATC’s locations, when, in fact, the services were never provided.

In related cases, ATC, its management company, Medlink Professional Management Group Inc. and various owners, managers, doctors, therapists, patient brokers and marketers of ATC, were charged with various health care fraud, kickback, money laundering and other offenses in two indictments unsealed in February 2011. ATC, Medlink and more than 20 of the individual defendants charged in these cases have pleaded guilty or have been convicted at trial.

The case is being prosecuted by Fraud Section Trial Attorney Allan J. Medina. The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.

NAVAL AIR STATION IN JACKSONVILLE COMPLETES SOLAR PROJECT

FROM:  U.S. AIR FORCE
NAS Jax Completes Rooftop Solar Power Generating System
By Clark Pierce, Editor, Jax Air News, Naval Air Station Jacksonville
JACKSONVILLE, Fla. (NNS) -- Engineers and technicians gathered at Naval Air Station Jacksonville's Hangar 1122, May 1, to celebrate completion of the station's largest rooftop solar power generating system.

Helicopter Anti-Submarine Squadron (Light) (HSL) 42, Executive Officer Cmdr. Derek Fleck, whose squadron is a tenant of the hangar, cut the ribbon at the ground-level DC inverter array.

"This system will contribute about 25 percent of the hangar's annual electricity consumption," said Lt. j.g. Luis Velazquez, construction manager of the Naval Facilities Engineering Command (NAVFAC) Southeast solar project. "A total of 2,534 solar photovoltaic (PV) panels are installed on the roof of Hangar 1122 located near the St. Johns River seawall."

The $5.7 million project was funded by the American Recovery and Reinvestment Act (ARRA) of 2009 and was completed ahead of schedule.

Fleck said he was honored to cut the ribbon for the project. "Our hangar's solar roof epitomizes the alternative energy commitment of SECNAV (Secretary of the Navy) Ray Mabus and CNO (Chief of Naval Operations Adm. Jonathan) Greenert - who are determined to change the way our Navy produces and procures energy."

William Allen is the field engineering manager for Atlantic Contingency Constructors of Norfolk, the contractor for the project.

"The PV panels convert sunlight into direct current (DC) voltage that is fed into combiner boxes from which electric cables run to the ground-level inverters. The inverters turn the DC into alternating current (AC), which then flows into the hangar's mechanical room where it's distributed through the base power grid," explained Allen.

"There are meters in the mechanical room that monitor how the inverters are performing. Hangar 1122 is also on the base central monitoring system in order to determine exactly how much power is being generated."

Velazquez concluded, "This project contributes to achieving the Secretary of the Navy Ray Mabus' energy goal of increasing alternative energy afloat and ashore - and by 2020 - producing at least 50 percent of shore-based energy requirements from alternative sources."

The hangar is home to three MH-60R Seahawk helicopter squadrons (Helicopter Maritime Strike Squadron (HSM) 70 "Spartans," HSM-74 "Swamp Fox," and HSL-42 "Proud Warriors") and the rooftop PV construction activity did not impact their operational readiness.