Palm Beach County Criminal Lawyer Blog

Rogerio Scotton, a former Boca Raton, Florida stock car driver and entrepreneur, was arrested Friday after he was accused of defrauding shipping companies out of millions of dollars, news sources indicate. Scotton, 42, allegedly posed as an employee of major retailers such as Wal-Mart and Target in order to trick the shipping companies into giving him low rates. He was booked into the Palm Beach County Jail on 26 counts of mail fraud. It is unclear whether he has qualified for bail bond. It is also not yet known whether he has hired an attorney.

Reports say Scotton is a Brazilian native and a former stock car driver. He has appeared in a number of races, including the NASCAR Busch Series and the American Le Mans Series. In 2003, he sustained serious injuries in a motorcycle accident, but was able to return to racing that same year. His charges are unrelated to his racing career, stemming instead from his entrepreneurial pursuits.

Scotton owns several online businesses: Export, Brazil Express Import, and Sky Air Express. From those businesses, he allegedly offered Brazilian customers discount shipping through FedEx and UPS. According to recent reports, Scotton allegedly pretended to work for various retailers, such as Apple, Target, and Wal-Mart, in order to acquire discount shipping from 2007 and March 2012. Detectives say Scotton was only able to offer discounts to because he created fake accounts with both FedEx and UPS where he claimed to represent major retail chains. Reports say Scotton shipped the packages from a number of locations in Coral Springs and Boca Raton. An indictment filed against Scotton says, "The shipping companies suffered multimillion dollar losses because of Scotton's activities," though an exact number of packages allegedly shipped with the discount was not specified.

In other news, Xavier Melton of Lauderhill, Florida was shot Wednesday outside of his Royal Palms Apartments home, news sources say. Melton, 23, was taken to Broward Health Medical Center with a gunshot wound to his chest. He was reportedly unable to identify the shooter and did not know why the suspect shot him. Police say the shooter is still at large.

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Seth Bergen of Boca Raton, Florida, as well as five other Florida residents, were arrested after special investigators accused them of falsely applying for unemployment compensation benefits, a press release from the United States Attorney's Office for the Southern District of Florida indicates. Among the accused are Seth Bergen, 53, of Boca Raton; Anne Marie Castroverde-Menendez, 50, of Hollywood; Joseph Louis Hardardt, 50, of Lake Worth; Andre Dennard Huggins, 46, of West Palm Beach; Robert H. Phaneuf, III, 32, of Boynton Beach; and Steven Bernard Rice, 39, of Delray Beach. Each defendant was arrested on federal charges of mail and wire fraud related to the alleged unemployment scheme fraud. They have all since been released on $10,000 bail bond. It is unclear whether any of the defendants has retained a private criminal defense lawyer.

An investigation by the U.S. Department of Labor and the Florida Department of Economic Opportunity, among other facilities, found that each of the accused reportedly filed for unemployment compensation. However, these benefits were allegedly not merited, and the defendants were able to receive benefits by reporting false information via telephone or by mail, sources say. In six different indictments handed down by investigators through the United States Attorney Office, the arrested parties were charged with mail or wire fraud based on the medium of their allegedly fabricated applications.

In related news, a slew of guilty charges were handed out to those involved in a fraudulent healthcare scheme at the Miami, Florida Biscayne Milieu Health Center Inc. recently, news sources indicate. Antonio Macli and his two children, Jorge Macli and Sandra Huarte, were each found guilty on one count of conspiracy to commit health care fraud, as well as multiple other charges, including conspiracy to commit a health care kickback scheme and conspiracy to commit money laundering.

Several other employees, including Gary Kushner, Rafael Alalu, Jacqueline Moran, Anthony Roberts, and Derek Alexander, were also found guilty on charges stemming from the Biscayne Milieu Health Center healthcare fraud, reports say. 20 other former employees of the center who have already plead guilty to similar charges. It remains to be seen how many people will be charged and convicted in connection to the scheme.

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An employee of the Palm Beach County, Florida Health Department was fired on Friday after authorities accused him or her of creating illegal lists of patients' names and social security numbers, sources say. Investigators have so far not arrested the employee, whose information has not been released to the public. The mystery person had reportedly tried to send the information through the mail, which may mean they will be facing federal charges if arrested. It is unclear whether the accused party has retained a private criminal defense lawyer.

Reports indicate that employees of the Palm Beach County Health Department, including the accused, are trained in how to handle medical documents prior to employment. This includes an overview of HIPAA rules, which include federal protections for patients in regards to the handling of their personal information. It is uncertain what title the accused employee held at the department, but he or she reportedly had authorized access to digitally filed medical records that displayed social security numbers.

Medical organizations reportedly use a centralized computer system for the entire nation's medical records. Establishments, such as the Palm Beach County Health Department, have access to this computer system; however, sources say that the system is protected with firewalls that track and log all users' activities. With this information, investigators say they were able to see what the employee had access to, which purportedly includes names and social security numbers. Officials told reporters that the employee tried to access patient's financial records as well.

Sources say that after the employee accessed patients' personal information, he or she transcribed the names and social security numbers of as many as 86 people. Reports did not say how the employee transcribed the information, but it was reportedly in printed form. The accused then allegedly prepared and attempted to mail the data. However, investigators were able to intercept the package before it reached the mail truck.

While reports did not say where or to whom the data was being mailed, officials believe it was intended for identity thieves. The sale of personal information, including social security and credit card numbers, can be a very lucrative, sources say. This information can be used to steal victims' identities, allowing the thieves to apply for fraudulent credit cards, acquire prescription drugs, or received refunds from the IRS. According to financial experts, clerical workers are tempted to sell information to the black market with alarming frequency, as doing so can be highly profitable.

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Erica Gilmore-Grier, a Fort Pierce, Florida financial manager, and six others were indicted on fraud charges Tuesday, according to a press release by the United States Attorney's Office for the Southern District of Florida. Gilmore-Grier, 35, is accused of embezzling as much as $210,000 from her former employer, Policy Studies, Incorporated. The indictment charges all involved parties with one count of conspiracy to commit mail fraud and 64 counts of mail fraud. It is not yet known whether Gilmore-Grier or any of the other defendants has retained a private criminal defense lawyer.

Gilmore-Grier worked as a financial manager at the PSI Call Center in Fort Pierce, Florida from October 2008 to October 2011, sources say. This center specializes in the management of companies that support federal and state governments in providing health and human services programs. One of the programs that Gilmore-Grier administered through PSI was reportedly Georgia Peach Care for Kids, an insurance program that offers healthcare to children of low-income households.

According to the organizations' website, Georgia Peach Care for Kids "began covering children in 1999, providing comprehensive health care to children through the age of 18 who do not qualify for Medicaid and live in households with incomes at or below 235% of the federal poverty level." It is not clear how many children are insured under the program. Reports indicate that it was Gilmore-Grier's responsibility to issue refunds to customers of Georgia Peach Care for Kids when they overpaid their premiums. It is through this role, sources claim, that Gilmore-Grier was able to commit fraud.

Sources say that Gilmore-Grier committed a federal offense by authorizing falsified refund checks through Georgia Peach Care for Kids and then distributing them to friends and family, including the six other indicted parties. These people, reports indicate, were not active clients of the health care program and were not entitled to receive refunds. However, they allegedly lied and claimed that they were clients who had overpaid their premiums. "Based on Gilmore-Grier's requests, PSI's main office in Denver, Colorado issued more than 64 checks to Gilmore-Grier's friends and family throughout St. Lucie County," one release statement says. It is not known whether these alleged accomplices or Gilmore-Grier had to submit false paperwork to make this happen.

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Jennifer Adams, Moises Madrid, and nine other defendants were arrested after federal investigators accused them of carrying out an auto insurance scam, according to a recent press release by the United States Attorney for the Southern District of Florida. Adams, 38, Madrid, 40, and the other defendants were charged with one count of conspiracy to commit mail fraud apiece. The group is believed to have been booked into various South Florida federal prisons. It is not clear whether any of them has retained a private criminal defense lawyer.

The total list of defendants in the case includes four West Palm Beach residents (40-year-old Amaurys Hernandez, 41-year-old Maria Molina, 25-year-old Yuliet Tapanes, and 39-yearold Janice Velez) as well as two who formerly resided there (43-year-old Obelio Rodriguez ans 56-year-old Dagoberto Milian Lopez). The rest of the defendants are from Lake Worth (45-year-old Javier De La Caridad Troncoso and 42-year-old Ana Ovando), Greenacres, (49-year-old Gilda Garcia), Orlando (Madrid) and Boca Raton (Adams). The release states that Obello Rodriguez and Dagoberto Lopez are still at large. Madrid and Adams were both released on $50,000 bail bond, while Garcia, Tapanes, and Velez were released on $100,000 bond. If convicted, each defendant could face up to 20 years behind bars.

Adams is reportedly a licensed chiropractor, while Madrid is a licensed massage therapist. There is no reason to believe that either ever received complaints or encountered any sort of legal trouble before the current charges were brought forward. According to the release, Adams was named the owner of several chiropractic clinics in West Palm Beach, Palm Springs, and other South Florida locations. She allegedly conspired with the other defendants to stage car accidents, then fill out insurance claims for chiropractic services that were not needed or never happened.

Federal authorities reportedly believe that the scheme worked like this: the defendants found accomplices to stage car accidents in exchange for a share of the profits of the scheme. These defendants were allegedly taught how to stage the accidents as well as how to deal with authorities, including police officers and insurance officials. It is not clear who these alleged accomplices were or whether they have been apprehended.

Continue reading "Jennifer Adams, Moises Madrid, Nine Others Arrested for West Palm Beach, Florida Insurance Scam" »

Anthony Colon, Troy Dye, Chris Gilkey, Marc Martinangelo, Robert Santiago of the Palm Beach, Florida area were all indicted last week after federal authorities accused them of participating in a national timeshare fraud scheme, according to news reports. The scheme, which reportedly operated in connection with two travel businesses called Universal Marketing Solutions and Creative Vacation Solutions, is suspected to have netted 22,000 victims, and several parties have already admitted to having participated. The five new defendants are 37-year-old Colon of Delray Beach, 48-year-old Dye of Boynton Beach, 30-year-old Gilkey of Lake Worth, 33-year-old Marc Martinangelo of Boynton Beach, and 26-year-old Santiago of West Palm Beach. It is not known whether any of the new defendants has retained a private criminal defense lawyer.

Sources indicate that the quintet is suspected of having participated in the scheme, which investigators believe brought in approximately $30 million by defrauding participants. According to a press release by the U.S. Attorney's office, Creative Vacation Solutions and Universal Marketing Solutions targeted timeshare holders by calling them and claiming that the timeshare property was transferring ownership and that a refundable fee for closing costs was required from timeshare holders. The victims were allegedly told that the closings would occur within three months and that each timeshare holder needed to put down 'several thousand dollars' in refundable closing fees.

News sources indicate that the companies used pressure tactics to get timeshare holders to pay, sometimes telling them that the buyer was on the other line and needed to hear back immediately. However, once the timeshare holders paid the closing fees, the companies allegedly cut contact.

Investigators reportedly discovered that the companies never sold any of the timeshare properties. Authorities reportedly believe that the 22,000 victims of the scam are spread out across all 50 states, and one news source has claimed that the case is Florida's largest source of fraud complaints in the past several years.

According to the same press release, several parties have already been sentenced or have pled guilty to participating in the scam. In August 2011, Steve Flan, Brian Morris, and Ryan Brazel were convicted of multiple charges in connection to the scheme. Also in August, Joel Intravaia pled guilty to several counts of wire fraud and mail fraud conspiracy, and that June, Jennifer Kirk pled guilty to the same charges. Kirk is reportedly believed to have operated the fraudulent companies.

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