The FTC is seeking a court order to permanently bar T-Mobile from “cramming,” or charging cellphone customers for spam text messages that they did not request or have an interest in receiving.
In a process known as “third-party billing,” carriers such as T-Mobile, AT&T, Sprint and Verizon typically place charges on a consumer’s bill for services provided by another company. In return, the phone company receives a substantial percentage of the amount charged.
When the charges are placed on the bill without the consumer’s authorization, it is known as “cramming.”
T-Mobile — which brands itself as a low-cost alternative to top rivals AT&T and Verizon — received between 35 and 40 percent of the amount it charged customers for the bogus texts subscriptions, thus generating hundreds of millions of dollars in revenue, the FTC alleged.
“It’s wrong for a company like T-Mobile to profit from scams against its customers when there were clear warning signs the charges it was imposing were fraudulent,” FTC Chairwoman Edith Ramirez indicated in a prepared statement. “The FTC’s goal is to ensure that T-Mobile repays all its customers for these crammed charges.”
The Federal Communications Commission (FCC) is also launching an investigation into T-Mobile’s billing practices and has the power to level fines against the company if it determines that wrongdoing has occurred.
According to the complaint filed by the FTC, T-Mobile allegedly charged customers for spam texts — “such as flirting tips, horoscope information or celebrity gossip” — at a typical cost of $9.99 per month. T-Mobile also ignored signs that the text messages were unwanted — such as a large number of customers seeking refunds — and made it difficult to discover and remove the charges.
“Rather than going after T-Mobile, the FTC should focus on the third-party companies that are sending the text messages,” argued T-Mobile CEO John Legere.
“As a single mother, I can hardly afford to pay additional and fraudulent fees,” T-Mobile customer Bina Fink Kohl of Weston told Examiner. “As a T-Mobile customer, I expect them to be fair and honest in their dealings. From the litigation, it appears that T-Mobile has been scamming me all along.”
According to T-Mobile, they have already made commitments to stop billing for unwanted spam text messages and issue refunds for unwanted text messages.
“T-Mobile is fighting harder than any of the carriers to change the way the wireless industry operates and we are disappointed that the FTC has chosen to file this action against the most pro-consumer company in the industry rather than the real bad actors,” stated Legere.
According to Jessica Rich of the FTC’s Bureau of Consumer Protection, the agency and T-Mobile have not been able to reach a settlement on the charges, resulting in the litigation filed Tuesday by the Federal Trade Commission.
“In court we will determine just how much” T-Mobile needs to refund its consumers, but “our evidence to date is that hundreds and millions of dollars are at stake,” Rich said. “Our first priority is to get the money back to consumers.”
Rich called the charges against T-Mobile — the agency’s first cramming charges against a telecom company — “a new front in [the federal agency’s] longstanding campaign” against wireless cramming.
The T-Mobile case “sends a strong message to other mobile phone companies,” Rich concluded. “We will continue to bring additional cases to deter this conduct.”
According to the Federal Trade Commission complaint, many of the allegations focus on T-Mobile billing practices, which “made it difficult for consumers to detect that they were being charged, much less by whom.”
Customers would have to scan through several screens online and up to 50 pages of a physical bill to find obscure and fraudulent accounting for the third-party charges, the FTC said.
Among the allegations were that prepaid customers – who do not receive monthly bills – would have the third-party charges deducted automatically. Once customers discovered the charges and their source, T-Mobile would refuse to fully refund the charges, sometimes directing the customers to contact the third-parties.
“I’m alarmed that T-Mobile is accused of fraudulent billing practices,” Remington Longstreth told Examiner. “I never check my bill completely. With that said, I don’t expect to be cheated either.”
The federal investigation and complaint against T-Mobile comes at no worse time as the company is reportedly in talks to be bought by Sprint. This highly-anticipated deal would combine the country’s third- and fourth-largest wireless companies.
Legere concluded by calling the lawsuit against T-Mobile “sensationalized legal action” that is “unfounded and without merit.”
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As a nationally recognized credit repair and identity theft expert, Bill Lewis is principal of William E. Lewis Jr. & Associates, a solutions based professional consulting firm specializing in the discriminating individual, business or governmental entity.
Eight defendants have been charged with participating in a conspiracy to unjustly enrich themselves by stealing personal identifying information and using the information to make unauthorized wire transfers from victim bank accounts and obtaining unauthorized credit or debit cards, according to BankInfoSecurity.com on Monday.
Collectively named in a twenty-two count federal indictment were Chouman Emily Syrilien, 25, of Lauderdale Lakes, Arrington Basil Segu, 28, of Miami, Carlos Antonio Alexander, 24, of Orlando, Angel Arcos, 23, of Pompano Beach, Shantegra La’Shae Godfrey, 23, of Deerfield Beach, and Monique Smith, 31, of Pompano Beach.
Two unnamed defendants remain at large.
Each of the defendant’s was charged with one count of conspiracy and several defendants were charged individually with access device fraud and aggravated identity theft.
According to the indictment, Syrilien was employed by Interactive Response Technologies, lnc. (IRT) of Margate. IRT provides staffing for call centers to handle direct sales and customer inquiries for AT&T. Syrilien unlawfully provided a co-conspirator with the personal identifying information from multiple AT&T customer files. Segu also unlawfully provided personal identifying information of numerous individuals to the co-conspirator.
Alexander, Godfrey, and Smith were added as “authorized users” on victims’ credit or debit card accounts or bank accounts. This was done in order to access the accounts of victims whose personal identifying information had been stolen.
Once a conspirator’s name was added as an “authorized user,” the bank and/or credit card company was directed to mail additional debit or credit cards bearing the names of these newly added “authorized users” to their addresses or addresses under their control. This was done without the true account holder’s knowledge or consent.
The defendants used these credit and debit cards to make purchases or obtain money. Alexander, Smith and Godfrey each made both retail purchases as well as cash advances in excess of $24,000, $12,000 and $8,200, respectively.
Defendant Arcos allowed his personal information to be used to open a bank account to further the fraudulent activity.
AT&T customers who may have been impacted should immediately protect themselves from potential identity theft.
Periodically review your credit report
By keeping close tabs on your credit report, you can detect signs of identity theft early. If you find an account not opened by you and have identified it as fraudulent, enter a dispute directly with the creditor as well as with the credit reporting agencies of Equifax, Experian and TransUnion.
Place a 90-day initial fraud alert on your credit report
Contact the credit reporting agencies and request a 90-day initial fraud alert on your credit report. Not only will this trigger a free credit report but will advise potential creditors to investigate any application prior to issuing credit, goods, benefits and/or services.
Equifax can be contacted at 800-525-6285, Experian at 888-397-3742 and Trans Union at 800-916-8800. Be sure to renew the alert every three months.
Freeze your credit report
Identity thieves are frozen in their tracks without access to your credit report as potential creditors will not have access to your credit history. In most states, you are entitled to temporarily “freeze” access to your credit profile without cost if you are over 65 years of age or are a verified victim of identity theft. All others may be required to pay a small fee.
Without access to your credit report, a responsible lender will not issue credit.
Stop unsolicited credit card offers
Opting out at www.optoutprescreen.com or 888-5OPT-OUT will stop most unsolicited pre-approved applications and reduce the incidence of identity theft. Opting out refers to the process of removing your name and address from lists supplied by the Equifax, Experian, Trans Union and Innovis credit reporting agencies to be used for firm (preapproved/ prescreened) offers of credit or insurance.
If convicted, each of the defendants face a maximum of thirty years in federal prison for the conspiracy charge, a maximum of ten years in prison for the access device fraud charge, and a mandatory term of two years in prison for each aggravated identity theft charge, at least one of which must be served consecutive to any other term in prison.
An indictment is only an accusation and the defendants are presumed innocent until proven guilty.
As a nationally recognized credit repair and identity theft expert, Bill Lewis is principal of William E. Lewis Jr. & Associates, a solutions based professional consulting firm specializing in the discriminating individual, business or governmental entity.
Identity theft and tax return identity theft charges were announced Thursday against 25 defendants in 19 separate cases, according to United States Attorney for the Southern District of Florida, Wifredo A. Ferrer.
Dealing with thousands of stolen identities and millions of dollars of fraudulent identity theft tax filings, the charges filed reaffirmed the joint federal and local commitment to crack-down on stolen identity tax refund fraud (SIRF) perpetrators.
Florida – according to the Federal Trade Commission – had the highest rate of identity theft in the nation last year. It had a rate of 192.9 complaints per 100,000 residents – the highest in the United States .
While identity theft in Florida ranks highest in the United States, the identity theft rate in Miami has reached near epidemic proportions – with a rate of 340.4 complaints per 100,000 residents.
In an attempt to combat the rising wave of stolen identity tax refund scams and armed with recent directives from the Department of Justice’s Tax Division making prosecutions faster and easier, the U.S. Attorney’s Office for the Southern District of Florida established the South Florida Identity Theft Tax Fraud Strike Force (Strike Force) in August 2012.
The members of the Strike Force include the United States Attorney’s Office, Internal Revenue Service, Criminal Investigation, Miami Field Office, Federal Bureau of Investigation, Miami Field Office, U.S. Secret Service, U.S. Postal Inspection Service, Miami Division, Social Security Administration, Office of Inspector General, Aventura Police Department, North Miami Beach Police Department, Miami-Dade Police Department, Immigration and Customs Enforcement, Homeland Security Investigations, Miami Field Office, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, Town of Davie Police Department, Florida Highway Patrol, Lee County Sheriff’s Office, Broward Sheriff’s Office, Ft. Lauderdale Police Department, Coconut Creek Police Department, Sunrise Police Department, Coral Springs Police Department, Miramar Police Department and North Miami Police Department.
Since the inception of the Strike Force, 296 defendants – responsible for approximately $485.5 million in intended stolen identity refund fraud loss and in excess of $106 million in actual SIRF fraud loss – have been charged in federal court.
The U.S. Attorney’s Office and the IRS have also attacked this problem by revoking “electronic filing identity numbers” or EFIN numbers, which allow individuals to file tax returns on behalf of others. Before revoking these EFIN numbers, SIRF fraudsters had used them to file 166,495 fraudulent tax refund claims over the past two years.
“The number of stolen identities and the dollar amount of the tax fraud involved in these cases is staggering,” stated United States Attorney Wifredo A. Ferrer. “These cases serve as a reminder that each and every one of us is a potential victim. While we have a talented and effective team dedicated to fight this fraud, we need everyone – both taxpayers and institutions – to remain vigilant in safeguarding personal identifying information. Protect it as if it were a trade secret.”
U.S. Attorney Ferrer – joined by members of the Strike Force on Thursday – announced the most recent results of their investigative efforts. The cases include:
1. United States v. Rhim-Grant, et al., Case No. 14-20181-Cr-Lenard. United States v. Nydia Tanay Laron Nelson, Case No. 14-2375-mj-Goodman
On March 21, 2014, Pamela Rhim-Grant, 40, and Eugene Moss, 33, both of Miami, were charged by information in a scheme to steal identities for the purpose of conducting stolen identity fraud.
On April 1, 2014, Nydia Tanay Laron Nelson, 30, of Miami, was charged by criminal complaint in connection with the same scheme.
According to the criminal complaint, the defendants conspired to steal the identities of Miami-Dade Public Schools students by exploiting Rhim-Grant’s access to the student information computer database as a food service manager at Horace Mann Middle School. Over the course of more than a year approximately 400 student identities were stolen from across the Miami-Dade County Public Schools district, resulting in numerous fraudulent tax returns.
The information and complaint charge the defendants with conspiracy to commit computer fraud and aggravated identity theft.
Ferrer commended the investigative efforts of the FBI, IRS-CI, and the Miami-Dade Schools Police Department. The case is being prosecuted by Assistant U.S. Attorney Frank Maderal.
“Criminals all over South Florida are turning to computers to make an easy buck at the public’s expense,” said George L. Piro, Special Agent in Charge, FBI Miami. “Identity theft, the fastest growing crime here, is as easy as one, two, three. One, criminals steal someone’s name and social security number; two, they use that identity to file a fraudulent tax return on line; and three, they collect the refund check. Repeat thousands of times. Don’t become a victim, learn how you can protect your personal identifying information from these thieves at FBI.GOV or FTC.GOV.”
2. United States v. Marlon Maikel Palacios, Case No. 14-20121-Cr-Cooke
On February 28, 2014, Marlon Maikel Palacios, 38, of North Miami, was charged in a twelve count indictment for his participation in a conspiracy to defraud the government and mail theft.
According to the indictment, the defendant, a former mail carrier for the U.S. Postal Service, provided to his co-conspirators addresses on his mail routes used with filing false tax returns with the IRS, receiving IRS correspondence, and tax refund checks. The defendant would then identify and pull the IRS correspondence and refund checks, for which the defendant would be paid. With the IRS correspondence, the defendant’s co-conspirators would file false, fictitious, and fraudulent federal income tax returns and thereafter claim refunds to which they were not entitled from the IRS.
The indictment charges the defendant with conspiracy to defraud the government with respect to federal income tax refunds and theft of mail by a postal employee.
Ferrer commended the investigative efforts of the USPS-OIG, USPIS, ICE-HSI, and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Andy R. Camacho.
“U.S. Postal Service employees are honest, hardworking, and trustworthy, but when a Postal Service employee engages in criminal activity, our Special Agents will investigate those matters vigorously, as we did in this case,” says Max Eamiguel, Special Agent in Charge, U.S. Postal Service, Office of Inspector General.
3. United States v. Rodelyn Lamour and Nestor Armando Herrera, Case No. 14-20169-Cr-Martinez
On March 14, 2014, Rodelyn Lamour, 26, and Nestor Armando Ficquire Herrera, 22, of Miami, were charged in a seven count indictment for their participation in a conspiracy to steal mail and a stolen identity tax refund scheme.
According to the indictment, the defendants used a stolen postal service key to open various apartment complex mailboxes and steal mail containing debit cards. The debit cards contained refunds from fraudulent federal income tax returns filed using stolen identities. The defendants then used the stolen debit cards to obtain cash, without the knowledge or authorization of the identity theft victims. The intended loss to the IRS was approximately $39,000.
The indictment charges the defendants with conspiracy, theft of mail, use of a postal service key, unauthorized use of personal identification information, and aggravated identity theft.
Ferrer commended the investigative efforts of USPIS. The case is being prosecuted by Assistant U.S. Attorney Vanessa Snyder.
Ronald Verrochio, Inspector in Charge for Postal Inspection Service stated, “Tax return fraud directly affects millions of Americans each year and indirectly affects every tax payer throughout the country, we are committed to working with our law enforcement partners to combat this problem.”
4. United States v. Paul Evans Auguste, Case No. 14-80087-Cr-Scola
On February 12, 2014, Paul Evans Auguste, 30, of Miami, was charged in a seven-count indictment for his participation in a stolen identity tax refund scheme.
According to the criminal complaint, Auguste sold approximately 260 stolen identities to an undercover law enforcement officer and stated that he could provide the undercover law enforcement officer any types of identities he would want, including those of children and the elderly. Auguste also stated his intention to conduct tax fraud with the multitude of stolen identities he maintained at his residence. Law enforcement obtained a federal search warrant for Auguste’s residence which revealed an additional 1,200 stolen identities in his possession.
The defendant was charged with access device fraud and aggravated identity theft.
Ferrer commended the investigative efforts of ICE-HSI and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Frank Maderal.
5. United States v. Freddie Howard, Case No. 14-60068-Cr-Rosenbaum
On April 1, 2014, Freddie Howard, 56, of Davie, was charged in a one-count information in a stolen identity refund fraud scheme that involved the submission of approximately $22 million in fraudulent refund claims.
According to the information, Howard operated a tax preparation business called QTS1, Inc. (Quality Tax Service) in Broward County. Howard prepared false and fraudulent tax returns using the identity information of willing participants and stolen identity information. Howard used false and fictitious income and withholding tax information on the returns submitted to the IRS to justify fraudulent large-dollar refund requests. The requested refund amounts generally ranged from $60,000 to $1,400,000, and Howard typically requested payment of these refunds via U.S. Treasury tax refund check. To conceal his identity, Howard submitted the tax returns to the IRS by mail and did not include preparer information. Howard also blocked out the tax preparer software information, and used other people to contact the IRS to inquire about the status of the fraudulent returns.
According to the information, Freddie Howard submitted over $22 million in false and fraudulent tax refund claims to the IRS. The IRS paid approximately $4.5 million on these refund requests.
The defendant was charged with access device fraud and identity theft.
Ferrer commended the investigative efforts of the Strike Force, with special commendation to the FBI and IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
IRS Special Agent in Charge José A. Gonzalez stated, “Today’s announcement should send a message to those who might consider disguising themselves as legitimate tax return preparers or Electronic Filing Identification Number (EFIN) holders for the purpose of submitting false claims with the IRS. Protecting the integrity of our U.S. tax system is essential, therefore, those who chose to corrupt this system will be investigated and brought to justice, regardless of their level of participation in the fraud.”
6. United States v. Anthony A. Pace, Jr., et al., Case No. 14-20101-Cr-Moore/Torres
On February 18, 2014, Anthony A. Pace, Jr., 29, Brandon A. Terry, 29, Derel L. Henry, 39, and Rosa Johnson, 26, all of Miami, were charged in a twenty-three count indictment for their participation in a $3.3 million stolen identity tax refund scheme.
According to the indictment, the defendants obtained personal identifying information, including names, dates of birth and Social Security numbers, of hundreds of identity theft victims, for use in this identity theft tax fraud scheme. The defendants used this stolen personal identity information, including personal identity information of former and current inmates of the Miami-Dade Corrections and Rehabilitation Program, to file false and fraudulent federal income tax returns without their victims’ knowledge and authorization. Based on Internet Protocal data and a unique tax filing number issued by the IRS called an EFIN, each of the defendants filed false and fraudulent tax returns using stolen identities and directed the IRS to deposit the funds into bank accounts and onto debit cards accessible to the members of the scheme.
According to disclosures at bond hearings, Anthony A. Pace, Jr. was employed as a correctional officer with the Miami-Dade Corrections and Rehabilitation Program. False and fraudulent tax returns were filed in the names of former and current prisoners using an EFIN associated with defendant Pace. These same tax filings directed payment of the illicit tax refund proceeds into accounts controlled by Pace and Johnson. ATM video reveals that Pace was withdrawing funds from the accounts into which the illicit funds were deposited.
The indictment charges all of the defendants with conspiracy to make false claims, in violation of 18 U.S.C. ‘ 286 and aggravated identity theft, in violation of 18 U.S.C. ‘ 1028A, defendants Brandon Terry and Derel Henry with access device fraud, in violation of 18 U.S.C. ‘ 1029, and defendants Anthony Pace and Rosa Johnson with theft of government property, in violation of 18 U.S.C. ‘ 641.
Ferrer commended the investigative efforts of IRS-CI, FBI and USSS. The case is being prosecuted by Assistant U.S. Attorney Peter A. Forand.
7. United States v. Judes Stanley Celestin, Case No. 13-60243-Cr-Scola
On September 27, 2013, Judes Stanely Celestin, 36, of Hallandale Beach, was charged in a sixteen-count indictment in a stolen identity refund fraud scheme that resulted in the submission of approximately $1 million in fraudulent refund claims.
According to the indictment, Celestin set up Florida corporations (JC Easy Tax and Taxes on Time) with himself as the president and then opened up bank accounts at numerous different banks from 2010 through 2012 in the name of these corporations. Celestin subsequently caused false and fraudulent tax returns to be filed with the IRS in the names of individuals without these individuals’ knowledge or authority. In total, Celestin caused approximately $1 million dollars in tax refund monies to be direct deposited to these bank accounts and related bank accounts from 2010 through 2012 and then withdrew the money for his own personal use.
The defendant was charged with wire fraud and aggravated identity theft.
Ferrer commended the investigative efforts of the Strike Force, with special commendation to IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
8. United States v. Karl Moltimer, Case No. 14-20117-Cr-Altonaga
On February 27, 2014, Karl Moltimer, 34, of Miami, was charged in a fourteen-count indictment in a stolen identity tax refund fraud scheme that resulted in the submission of over $1 million in fraudulent refund claims.
According to the indictment, Moltimer obtained EFIN numbers that permitted him to file tax returns in the names of other persons. Moltimer opened bank accounts for himself and his business name. Moltimer, through his EFINs, caused false and fraudulent tax returns seeking refunds to be filed with the IRS using stolen individuals’ personal identity information. Moltimer caused the fraudulently obtained tax refunds to be either deposited into bank accounts controlled by him, paid via refund anticipation checks controlled by him, or paid via pre-paid debit cards controlled by him. Moltimer caused over one million dollars in false and fraudulent tax refund claims to be submitted to the IRS from 2009 through 2012 through his EFINs.
The defendant was charged with wire fraud and aggravated identity theft.
Ferrer commended the investigative efforts of the Strike Force, with special commendation to IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
9. United States v. Marlon Hamilton, Case No. 14-20175-Cr-Moreno
On March 18, 2014, Marlon Hamilton, 40, of Hialeah, was charged in a six count indictment for his participation in a stolen identity tax refund scheme.
According to the indictment, the defendant obtained and sold the personal identifying information of numerous identity theft victims, including their names, dates of birth, and social security numbers, to an individual who intended to utilize the information to electronically file false, fictitious, and fraudulent federal income tax returns without the knowledge or authorization of the identity theft victims, and thereafter claim refunds to which they were not entitled from the IRS. The intended loss to the IRS was approximately $190,000. The indictment charges the defendant with unauthorized possession of personal identification information and aggravated identity theft.
Ferrer commended the investigative efforts of the FBI. The case is being prosecuted by Assistant U.S. Attorney Vanessa Snyder.
10. United States v. Marcus Braxton, Case No. 14-20174-Cr-Ungaro
On March 18, 2014, Marcus Braxton, 29, of Plantation, was charged in a six count indictment for his participation in a stolen identity tax refund scheme.
According to the indictment, the defendant obtained and sold the personal identifying information of numerous identity theft victims, including their names, dates of birth, and social security numbers, to an individual who intended to utilize the information to electronically file false, fictitious, and fraudulent federal income tax returns without the knowledge or authorization of the identity theft victims, and thereafter claim refunds to which they were not entitled from the IRS. The intended loss to the IRS was approximately $58,500.
The indictment charges the defendant with unauthorized possession of personal identification information and aggravated identity theft.
Ferrer commended the investigative efforts of the FBI. The case is being prosecuted by Assistant U.S. Attorney Vanessa Snyder.
11. United States v. Richard Anthony Siler, Case No. 14-20116-Cr-Williams
On February 27, 2014, Richard Anthony Siler, 50, of Hollywood, was charged in a nine-count indictment in a stolen identity refund fraud scheme that involved the sale of over 5,000 people’s identities.
According to the indictment and other documents filed in court, Siler discussed selling approximately 10,000 to 15,000 identities to a confidential source who told Siler that the identities would be used to file taxes. Siler indicated to the confidential source that these identities were “never revealed before.” Siler discussed selling the 10,000 to 15,000 identities to the confidential source for approximately $6,200. On February 14, 2014, an FBI controlled e-mail account received an e-mail from Richard Siler containing approximately 5,200 individuals’ personal identifying information that appeared to be patients. On that same date, the confidential source provided Siler with $6,200 in currency and Siler was arrested.
The defendant was charged with access device fraud and identity theft.
Ferrer commended the investigative efforts of the Strike Force, with special commendation to the FBI and IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
12. United States v. Giovanni Francois Noel, Case No. 14-20198-Cr-Moore
On March 28, 2014, Giovanni Francois Noel, 24, of North Miami Beach, was charged in an eight count indictment for his participation in an identity theft tax refund scheme.
According to the indictment, the defendant possessed the social security numbers of at least fifteen individuals. The indictment also alleges that the defendant stole the means of identification, specifically, the name and date of birth, of seven individuals.
Ferrer commended the investigative efforts of the Strike Force, with special commendation to the IRS-CI and the NMBPD. The case is being prosecuted by Assistant U.S. Attorney John R. Byrne.
U.S. Secret Service Special Agent in Charge Paula Reid added, “Once again, the U.S. Secret Service is glad to be an integral part of combatting this massive fraudulent scheme that is plaguing South Florida. Together, we will continue to identify and penalize those who misuse our government systems with no regard to the financial and unjust impacts they cause on others.”
13. United States v. Wallens B. Alcime, Case No. 14-02372-mj-Goodman
On April 1, 2014, Wallens B. Alcime, 26, of Miami, was charged by criminal complaint for his participation in a stolen identity tax refund scheme.
According to the criminal complaint, a confidential source informed law enforcement that Alcime was using the mailing addresses of accomplices to receive stolen identity tax refunds deposited onto pre-paid debit cards. A controlled delivery was arranged where Alcime took possession of a debit card loaded with stolen identity tax refunds while under law enforcement surveillance. Alcime was later captured on surveillance video making cash withdrawals from the debit card.
The defendant was charged with access device fraud and aggravated identity theft.
Ferrer commended the investigative efforts of the FBI and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Frank Maderal.
14. United States v. Steven Toussaint, et al., Case No. 14-20161-Cr-Martinez
On March 14, 2014, Steven Toussaint, 32, and Emmanuel Alphonse, 28, both of Miami, were charged by indictment in a scheme to launder money from stolen identity tax refund fraud.
According to the indictment, the defendants conspired to conduct financial transactions the purpose of which was to conceal the proceeds of theft from the government. Each defendant is also charged with ten counts of money laundering connected to individual money orders cashed on various dates alleged in the indictment.
The complaint charges the defendants with conspiracy to commit money laundering and money laundering.
Ferrer commended the investigative efforts of USPIS and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Frank Maderal.
15. United States v. Mark Anthony Dacres, Jr., Case No. 14-20204-Cr-Ungaro
On April 1, 2014, Mark Anthony Dacres, Jr., 30, of Homestead, was charged in a seven-count indictment for identity theft in connection with his unauthorized possession of at least fifteen social security numbers belonging to other individuals. Dacres was found with over 1,700 names, dates of birth and social security numbers of other individuals.
Ferrer commended the investigative efforts of the Strike Force, with special commendation to IRS-CI and USSS. The case is being prosecuted by Assistant U.S. Attorney Gera Peoples.
16. United States v. Providencia Llanos, Case No. 14-20205-Cr-Lenard
On April 1, 2014, Providencia Llanos, a/k/a “Providensia Llanos,” a/k/a “Providencia Allison,” 36, of Miami Gardens was charged in a seven-count indictment for identity theft in connection with her unauthorized possession of at least fifteen social security numbers belonging to other individuals. Llanos was found with over 3,000 names, dates of birth and social security numbers of other individuals.
Ferrer commended the investigative efforts of the Strike Force, with special commendation to IRS-CI and USSS. The case is being prosecuted by Assistant U.S. Attorney Gera Peoples.
17. United States v. Stevens Nore, Case No. 14-14016-Cr-Middlebrooks
On March 24, 2014, Stevens Nore, 35, of Port St. Lucie, was charged in a twenty-eight count indictment for his participation in tax fraud and identity theft schemes.
According to the indictment, from June 11, 2009 through April 2012, Nore owned and operated Fraternity Tax and Services, a tax return preparation business located in Fort Pierce. Nore prepared and submitted Individual Tax Returns (Forms 1040), with accompanying schedules, to the IRS on behalf of taxpayers claiming false deductions and credits for tax years 2009 to 2011. Nore also filed false tax returns for 2010 and 2011 by falsely stating the amount of gross receipts and sales on Schedule C forms. The defendant stole three tax refunds totaling $26,349.30 to which he was not entitled, and used the identity of two individuals without their permission.
Nore was charged with twenty-one counts of preparing false tax returns, two counts of filing false tax returns, three counts of theft of public money, and two counts of aggravated identity theft.
Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Shaniek Maynard.
18. United States v. Rony Maurival, Case No. 14-14014-Cr-Middlebrooks
On March 24, 2014, Rony Maurical, 38, of Port St. Lucie, was charged in fifty-two count indictment for his participation in tax fraud and identity theft schemes.
According to the indictment, from July 3, 2008 through March 23, 2012, Maurival owned and operated RJ’s Tax & Services, a tax return preparation business located in Fort Pierce. Maurival prepared and submitted Individual Tax Returns (Forms 1040), with accompanying schedules, to the IRS on behalf of taxpayers claiming false deductions and credits for tax years 2008 to 2011. Maurival also filed false tax returns for 2009 and 2010 by falsely claiming Head of Household and falsely stating Schedule C income, gross receipts, and sales. The defendant stole three tax refunds totaling $3,292 to which he was not entitled, and used the identity of three individuals without their permission.
Maurival was charged with forty-four counts of preparing false tax returns, two counts of filing false tax returns, three counts of theft of public money, and three counts of aggravated identity theft.
Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Russell R. Killinger.
Alysa D. Erichs, Special Agent in Charge for ICE-HSI stated, “Homeland Security Investigations utilizes its vast authorities to work with their partners to disrupt and dismantle criminal organizations involved in tax refund fraud schemes and other financial violations that affect our citizens and economy.”
If convicted, the defendants face a possible maximum statutory sentence of twenty years in prison for each count of wire fraud; ten years in prison for conspiracy to make false claims against the United States; five to fifteen years in prison for access device fraud; ten years in prison for stealing government funds; and two years in prison consecutive to any other term for aggravated identity theft.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
As a nationally recognized credit repair and identity theft expert, Bill Lewis is principal of William E. Lewis Jr. & Associates, a solutions based professional consulting firm specializing in the discriminating individual, business or governmental entity.
In a matter of “great public importance” that has gone largely ignored this week, the high-profile foreclosure fraud case of Roman Pino versus The Bank of New York has been settled. According to the Florida Supreme Court, the matter was dismissed upon Pino’s “Notice –Dismiss (Voluntary Stipulation)” on July 25th.
The opportunity for a precedent setting opinion for attorney Thomas Ice, of Ice Legal, whose boutique litigation firm specializes in uncovering forged and fraudulent foreclosure documents, must mean outright success for Pino.
Although details of the settlement were not provided in the brief stipulation before the high court, one can only speculate whether Pino received a mortgage modification, principal reduction, right to short-sale, waiver of deficiency balance, or his home free and clear.
One thing is clear, though. Any settlement agreement between the parties would contain a confidentiality agreement.
Neither Ice, nor Enrique Nieves – Pino’s attorney of record – were available for comment despite several messages left at Ice Legal and on their cell phone voicemail.
An appeals court in February requested that the Florida Supreme Court consider the case of Greenacres homeowner Roman Pino as a matter of “great public importance.” The decision by the 4th District Court of Appeal in West Palm Beach was unusual as neither the bank nor the homeowner had requested such a review.
“We conclude that this is a question of great public importance, as many, many mortgage foreclosures appear tainted with suspect documents,” the appeals court wrote in certification to the Supreme Court.
Had the matter been adjudicated on its merits and a decision rendered in favor of Pino, thousands of foreclosure cases could have been impacted as allegations of document fraud and robo-signing run rampant throughout the nation.
According to land records, Pino purchased his Greenacres home in July, 2006 for $203,000 by securing a $162,400 mortgage with Silver State Financial Systems. After falling behind on the mortgage, the Bank of New York moved to foreclose in October, 2008.
In their foreclosure complaint, the Bank of New York alleged that it was the owner of Pino’s mortgage note through an assignment from another lender, but did not include said assignment as part of its original complaint.
Pino retained Ice, who in moving to dismiss the complaint, argued that the bank needed an assignment in order to have standing to foreclose.
Attorneys from the Law Offices of David J. Stern in Plantation filed an amended complaint and attached an unrecorded mortgage assignment “which happened to be dated just before the original pleading was filed,” the appeals court wrote.
Stern’s now defunct law firm is one of several foreclosure mills throughout Florida that are under investigation by Florida Attorney General Pam Bondi.
Just as Pino’s attorneys were set to take depositions of Stern employees to determine how the assignment was created, the Bank of New York dismissed its foreclosure action. Ice had wanted an opportunity to prove that Pino was the victim of fraud but was unable to do so because of the voluntary dismissal. The bank refiled the foreclosure in August 2009, and that case is pending.
In its written opinion, the Fourth District Court of Appeal agreed with the lower court’s ruling about the dismissal but because of its importance on similar foreclosure matters, sent the case to the state’s highest court in Tallahassee. One appellate judge, Gary Farmer, dissented saying he thought the trial judge could have kept the case open to litigate Pino’s claim of fraud.
“I’m not surprised at a settlement of this matter considering the allegations of forged or fraudulent documents and the risk of substantial loss to the bank,” said Carlos J. Reyes, of the Reyes Law Group in Fort Lauderdale. “As a foreclosure defense attorney, my preference would have been for a written opinion from the Florida Supreme Court, but the client is the ultimate decision maker in any settlement discussions.”
Florida Attorney General Pam Bondi announced on Tuesday that her office has sued JLF University School of Medicine and its affiliated entities for defrauding medical and nursing students.
Students were promised that they would eligible for licensure in Florida. Following graduation, students learned they would not be eligible for licensure as the JLF University medical and nursing programs were not accredited or approved by any entity.
JLF University School of Medicine is based in Haiti with a local office in Miramar. Their local and Washington state phone numbers have been disconnected with no forwarding information.
Named after its founder, Joseph LaFortune, the “University” offered online courses for their non-accredited medical and nursing schools. Students enrolled in the nursing program were required to pay anywhere from $7,000 to $15,000 for the year-long program and several weeks of clinical practice in Jamaica.
When students demanded refunds, Mr. LaFortune allegedly offered them an opportunity to “transfer” to Green Cross School of Nursing for an additional payment of $7,000. Owned by LaFortune’s wife, Aline, graduates of Green Cross are eligible to be licensed by the Florida Board of Nursing.
“Defrauding hardworking students who are aspiring to become nurses or doctors is appalling,” said Attorney General Pam Bondi. “I am committed to holding schools accountable, and misrepresentation of credentials, which robs students of time and money, will not be tolerated.”
The lawsuit was filed in the 17th Judicial Circuit Court for Broward County in Fort Lauderdale. It seeks an order enjoining the school from misrepresenting its qualifications and programs, requiring restitution for the students, and imposing civil penalties for alleged violations of the Florida Deceptive and Unfair Trade Practices Act.
For more information or to file a complaint on JLF University, please visit www.myfloridalegal.com or call (866) 9-No-Scam or (888) 966-7226.
To review Bill Lewis’ entire consumer protection series, visit www.williamlewis.us.
Bill Lewis is principal of William E. Lewis Jr. & Associates, a solutions based professional consulting firm specializing in the discriminating individual, business or governmental entity. To learn more, tune into The Credit Report with Bill Lewis, weekdays at 9 o’clock on AM 1470 WWNN.
While the Federal Trade Commission has cracked down on debt settlement and loan modification firms that charge upfront fees, little has been done to rein in tax resolution companies that promise to reduce IRS liabilities. The FTC has allowed a number of these operations to continue while making a determination whether the agency has authority over them.
With the April 18th tax deadline three weeks away, tax relief companies have increased late night advertising and Internet promotions promising to settle delinquent IRS debt for pennies on the dollar. Several of these companies are under investigation for deceptive practices.
Florida Attorney General Pam Bondi has initiated a civil inquiry into Texas based Tax Masters and South Carolina based JK Harris and Company following the receipt of 26 and 92 complaints respectively. These companies solicit clients nationwide promising to reduce anxiety and debt to the IRS.
Tax Masters is being investigated for allegations of unfair competition and deceptive trade. Consumer complaints allege violations consisting of: failing to provide service as initially contracted, misrepresentation of the breath of services to clients, charging for unnecessary services, unauthorized credit card transactions, as well as failing to provide refunds.
The Texas and Minnesota attorneys general also filed civil charges of deceptive and unfair trade practices against Tax Masters in 2010.
JK Harris and Company is under investigation for allegedly violating a 2008 settlement with Florida and 17 other states over what regulators said were misleading sales tactics. Among the allegations were false claims that case processors were former IRS agents or tax experts and that the company failed to provide refunds for clients it was unable to help.
The Attorney General’s Office is continuing to work on the multi-state investigation regarding JK Harris. North Carolina is the lead state. JK Harris has been responsive to a list of Florida consumer complaints forwarded to their attention. However, they have not been responsive to the multi-state requests for additional information and documents as part of the continuing investigation.
Some tax relief operations are the target of legal inquiries and lawsuits by regulators in multiple states. Thousands of consumers nationwide have complained they demanded advance fees of up to $25,000, while promising relief from back taxes and penalties, then did nothing.
Tax-relief companies have flourished as the Internal Revenue Service has more aggressively pursued delinquent taxpayers. According to the IRS Data Book, the agency filed nearly 1.1 million liens nationwide in fiscal year 2010, an increase of over 60 percent from 2007.
In a seemingly unregulated industry, tax resolution firms have gone largely unnoticed. A lack of determination of authority from the FTC, tough economic times, and a taxpayers desire to reduce anxiety and IRS debt, have allowed them to exist. Good common sense in choosing a credentialed tax expert and paying huge upfront fees has been ignored.
According to the Internal Revenue Service, three professionals are authorized to represent taxpayers before them – attorneys, certified public accountants and enrolled agents, all whom must pass an IRS test and take refresher courses.
In the absence of representation, consumers can negotiate back taxes and penalties directly with the Internal Revenue Service.
Regulators and consumer advocates warn against using companies guaranteeing what the Internal Revenue Service calls an “offer in compromise” — a settlement for reduced tax payment. Although increasing, IRS statistics show that only 25 percent of compromise applications are granted.
Taxpayers seeking relief from IRS debt should also be aware that companies claiming to be tax specialists may simply be advertising the services of a third-party.
Unlike the debt settlement and loan modification industry, tax resolution services are unregulated in Florida. Despite the huge volume of complaints regarding advance payments and deceptive advertisements, lawmakers have taken little notice. No regulation seems on the agenda of the 2011 Florida legislature.
To file a complaint with the Federal Trade Commission, visit www.ftc.gov or call (877) FTC-HELP (877-382-4357).
To file a complaint with the Florida Attorney General, please visit www.myfloridalegal.com or call (866) 9-NO-SCAM (866-966-7226).
William E. Lewis Jr. & Associates is a solutions based professional consulting firm specializing in the discriminating individual, business or governmental entity. To learn more, tune into The Credit Report with Bill Lewis, weekdays at 9 o’clock on AM 1470 WWNN.
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