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Miami Man Who Allegedly Used COVID-19 Relief Money to Buy Lamborghini Sports Car Charged in Federal Court

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katie-moum-o0kbc907i20-unsplash-300x200A Miami man was arrested and charged for allegedly lying on Paycheck Protection Program (PPP) applications and obtaining $3.9 million, which he used to purchase luxury items, including a Lamborghini Huracán EVO.

David Tyler Hines, 29, of Miami was charged with one count of bank fraud, one count of making false statements to a financial institution, and one count of engaging in transactions in unlawful proceeds. It is unclear if he has acquired legal representation.

According to the complaint, Hines allegedly sought over $13 million in PPP loans from a financial institution on behalf of four of his companies, claiming he needed the money to continue to pay employees. He is accused of making several fraudulent statements about those companies’ payroll expenses in his applications. In total, approximately $3.9 million was approved and funded by the financial institution.

“Hines sought approximately $13.5 million in PPP funds, purportedly for the purpose of paying employees. Those purported employees either did not exist or earned a fraction of what Hines claimed in his PPP applications,” said U.S. Postal Inspector Bryan Masmela in the affidavit. “Collectively, Hines falsely claimed his companies paid millions of dollars in payroll in the first quarter of 2020. State and bank records, however, show little to no payroll expense during this period.”

On May 18, Hines purportedly used the PPP funds he received to purchase a 2020 Lamborghini Huracán sports car for $318,000, which he registered jointly under both his name and the name of one of the companies that received a loan.  Throughout May and June, he additionally bought other “luxury and personal items,” including a $8,530 jewelry purchase at Graff Diamonds, $11,000 in expenses at two luxury hotels in Miami Beach, and almost $5,000 in items bought at Saks Fifth Avenue.

Bank records reportedly show that in the days after the disbursement of the loans, Hines never used any of the money for the payroll payments he had allegedly claimed in his loan applications.

PPP loans are meant to be used by qualifying small businesses to keep workers on payroll throughout the coronavirus pandemic, as well as pay for rent, utilities, and interest on mortgages. The loans have a maturity of two years and an interest rate of one percent. The funds were approved by Congress through the enactment of the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020. Through the CARES Act, Congress authorized over $600 billion in forgivable loans for small businesses and other organizations.

Hines is among millions of American business owners who sought help from the federal government when the coronavirus pandemic upended the economy. His arrest is the latest case of alleged fraud involving the relief program.

Any individual suspected of committing fraud involving the federal government’s COVID-19 relief program should immediately consult an experienced attorney who can conduct an independent investigation and form a good defense.

South Florida Fraud Defense Attorney

Are you accused of committing COVID-19 fraud in South Florida? Contact Brian Silber, P.A. to set up a free initial consultation with one of South Florida’s most experienced fraud defense attorneys.

Miami Prosecutors File Lawsuit to Seize Republic of Congo Parliament Minister’s $3 Million Luxury Condo

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aaron-lee-FAzNAamqwR4-unsplash-300x200Federal prosecutors in Miami are seeking to seize a penthouse in a luxury high-rise condo tower in the city’s downtown area that was allegedly used to embezzle millions of dollars by a minister of parliament in the Republic of Congo.

According to the civil forfeiture complaint, Denis-Christel Sassou Nguesso transferred millions of dollars through an unknown associate to bank accounts in South Florida in order to buy a 3,500-square-foot penthouse at 900 Biscayne Boulevard in 2012.

Prosecutors allege Nguesso stole the funds from Société Nationale des Pétroles du Congo (SNPC), a state-owned oil company where he held the position of deputy manager of downstream operations. The lawsuit claims he used his post to steal millions from the company and solicit bribes to enrich himself. He allegedly funneled the money to bank accounts in the names of various shell companies in order to hide his role in purchasing real estate in Miami.

Between 2009 and 2016, Nguesso allegedly transferred an estimated $10.3 million to bank accounts in South Florida. He used that money to purchase the so-called “Congo condo” in October 2012 for $2.8 million using the alias, Denis Christelle. He reportedly transferred the title of the unit to his wife, Nathalie Bumba-Pembe, in 2016 to conceal his ownership. Neither Nguesso nor his wife have been charged with a crime. The complaint only names the property as the defendant.

Sources indicate that Nguesso also used embezzled funds to purchase another residential property in Coral Gables in 2009 for $2.4 million under the name of his first wife, Danielle Ognanosso. It is unclear why prosecutors are not trying to seize the 4,200-square-foot home at 2715 Cordova Street.

Nguesso acquired wealth far beyond his income as an SNPC executive, prosecutors claim. During a visit to Miami in January 2016, he allegedly told customs officials that he earned $460,000 a year as a deputy manager with SNPC, and that he owned no real estate in the U.S. However, from 2007 to 2017, records show that Nguesso spent $29 million acquiring properties in Miami and Paris, and paying for a “lavish lifestyle” for him and his family.

Money laundering allegations in South Florida’s luxury real estate market by foreign buyers are not uncommon. Nguesso’s acquisitions occurred years before the Treasury Department started requiring title insurance companies to identify the people behind shell companies in all-cash real estate transactions in Miami and 11 other U.S. cities to stem the flow of tainted foreign money derived from embezzlement, corruption, and bribery.

Civil asset forfeiture is a tool used by prosecutors and law enforcement to seize property—real estate, cash, vehicles, electronics—believed to be connected to a crime, even if the property owner hasn’t been charged or convicted. Anyone who has had their property seized using asset forfeiture should immediately consult an experienced attorney.

Miami Civil Asset Forfeiture Attorney

Has your property been seized using asset forfeiture? Contact Brian Silber, P.A. to set up a free initial consultation with one of Miami’s most experienced civil asset forfeiture attorneys.

Source: 22.6.20 Congo parliament minister allegedly used embezzled money to buy Miami condo.pdf

Carlos Alberto Gomez-Ibarra of Miami, FL, Arrested for Workers’ Compensation Premium Fraud

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pexels-photo-209224-300x200Florida’s Chief Financial Officer (CFO) Jimmy Patronis announced the arrest of Carlos Alberto Gomez-Ibarra last week for allegedly evading paying almost $74,000 in workers’ compensation insurance premiums.

Gomez-Ibarra was charged with workers’ compensation premium fraud. The press did not name an attorney for him. \

According to the Bureau of Investigative and Forensic Services, Gomez-Ibarra is the owner of Always Good Construction in Miami. He is accused of concealing payroll information for almost a year to avoid paying higher workers’ compensation premiums.

Between October 2015 and August 2016, Gomez-Ibarra allegedly reported an annual estimated remuneration of $92,400 in payroll on his company’s workers’ compensation insurance policy for four workers. This coverage was estimated to cost over $15,000. However, investigators learned that the company had allegedly conducted more than $442,000 in payroll during that period, which means Gomez-Ibarra evaded paying almost $74,000 in insurance premiums.

“I cannot emphasize the importance of providing the proper coverage for your employees. Knowingly evading the payment of workers’ compensation to save a few dollars on your policy is a serious crime that puts injured workers at risk and drives up insurance rates statewide for honest, hard-working businesses.,” CFO Patronis said in a press release. “I applaud the great work of our dedicated insurance fraud detectives and encourage anyone that suspects insurance fraud to report it to FraudFreeFlorida.com.”

Gomez-Ibarra was booked into Turner Guilford Knight Correctional Center on March 4. If convicted, he faces up to seven years in prison.

All Florida businesses with more than four employees are required by law to have workers’ compensation insurance. Construction companies are the only exception—they are required to have coverage for every employee because construction work has more injuries and fatalities than other business types.

By mandating workers’ comp insurance, the state provides an incentive for businesses to keep workers safe and reduce the risk of lawsuits against business owners.

Construction companies can get in trouble when they under-report their employee payroll, number of workers, worker risk classifications, and claim history. By under-reporting this information while applying for insurance, construction contractors can minimize the cost of their coverage. However, misrepresenting this information becomes immediately apparent to the state once a claim is made, especially if it involves serious injury or death.

Businesses that operate without the proper coverage risk civil and criminal penalties. If your business is being investigated by the Florida Division of Insurance Fraud or Department of Financial Services for workers’ compensation fraud, then you should immediately consult with an experienced criminal defense lawyer to discuss your rights and what you need to do in order to protect yourself against fraud allegations.

Miami Workers’ Compensation Fraud Attorney

Are you a business owner accused of workers’ compensation fraud? Contact Brian Silber, P.A. for a free initial consultation with one of Miami’s most experienced workers’ compensation fraud defense attorneys.

Carlos Alberto Gomez-Ibarra of Miami, FL, Arrested for Workers’ Compensation Premium Fraud

By

pexels-photo-209224-300x200Florida’s Chief Financial Officer (CFO) Jimmy Patronis announced the arrest of Carlos Alberto Gomez-Ibarra last week for allegedly evading paying almost $74,000 in workers’ compensation insurance premiums.

Gomez-Ibarra was charged with workers’ compensation premium fraud. The press did not name an attorney for him. \

According to the Bureau of Investigative and Forensic Services, Gomez-Ibarra is the owner of Always Good Construction in Miami. He is accused of concealing payroll information for almost a year to avoid paying higher workers’ compensation premiums.

Between October 2015 and August 2016, Gomez-Ibarra allegedly reported an annual estimated remuneration of $92,400 in payroll on his company’s workers’ compensation insurance policy for four workers. This coverage was estimated to cost over $15,000. However, investigators learned that the company had allegedly conducted more than $442,000 in payroll during that period, which means Gomez-Ibarra evaded paying almost $74,000 in insurance premiums.

“I cannot emphasize the importance of providing the proper coverage for your employees. Knowingly evading the payment of workers’ compensation to save a few dollars on your policy is a serious crime that puts injured workers at risk and drives up insurance rates statewide for honest, hard-working businesses.,” CFO Patronis said in a press release. “I applaud the great work of our dedicated insurance fraud detectives and encourage anyone that suspects insurance fraud to report it to FraudFreeFlorida.com.”

Gomez-Ibarra was booked into Turner Guilford Knight Correctional Center on March 4. If convicted, he faces up to seven years in prison.

All Florida businesses with more than four employees are required by law to have workers’ compensation insurance. Construction companies are the only exception—they are required to have coverage for every employee because construction work has more injuries and fatalities than other business types.

By mandating workers’ comp insurance, the state provides an incentive for businesses to keep workers safe and reduce the risk of lawsuits against business owners.

Construction companies can get in trouble when they under-report their employee payroll, number of workers, worker risk classifications, and claim history. By under-reporting this information while applying for insurance, construction contractors can minimize the cost of their coverage. However, misrepresenting this information becomes immediately apparent to the state once a claim is made, especially if it involves serious injury or death.

Businesses that operate without the proper coverage risk civil and criminal penalties. If your business is being investigated by the Florida Division of Insurance Fraud or Department of Financial Services for workers’ compensation fraud, then you should immediately consult with an experienced criminal defense lawyer to discuss your rights and what you need to do in order to protect yourself against fraud allegations.

Miami Workers’ Compensation Fraud Attorney

Are you a business owner accused of workers’ compensation fraud? Contact Brian Silber, P.A. for a free initial consultation with one of Miami’s most experienced workers’ compensation fraud defense attorneys.

Edwin Jim Garcia-Albarracin of Miami, FL, Accused of Defrauding $1.5 Million from U.S. Postal Service

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pexels-photo-3059854-300x225A Miami man was arrested on federal charges for his alleged involvement in a $1.5 million fraud scheme that targeted the U.S. Postal Service (USPS), the U.S. Attorney’s Office for the Southern District of Florida announced this week.

Edwin Jim Garcia-Albarracin of Miami was charged with 10 counts of wire fraud, 10 counts of mail fraud, and 12 counts of money laundering. The press did not name an attorney for him.

According to the indictment, Garcia-Albarracin, 45, sold a variety of products online through his company, Rambos Market. He allegedly used USPS to ship his products to customers in Florida and throughout the U.S.

Garcia-Albarracin purportedly sold his merchandise using online marketplaces like eBay and Listia. He would then purchase insurance through the postal service and file false and fraudulent claims to the agency, stating that the contents of his packages were damaged during delivery.

To file a claim for compensation, a customer must provide details like their name, physical address, product tracking information, proof of the item’s value, and proof of claim. Customers are required to certify that all the information is “accurate, truthful and complete.”

Between July 2016 and November 2019, Garcia-Albarracin is accused of submitting several claims to the USPS’s Customer Inquiry and Claims Response System certifying that the items in some of his packages were damaged, when in reality they were not.

He allegedly provided fake photos that showed damage to the items he shipped, but the pictures weren’t of products he actually sent, according to the indictment. USPS sent him compensation checks and he wired the funds from one bank account to another in an attempt to “conceal and disguise the nature, location, source, ownership, and control of the proceeds of the specified unlawful activity,” the indictment states. As a result of the alleged scheme, Garcia-Albarracin received over $1.5 million from USPS, the indictment indicates.

Each filing of a fraudulent claim counts as wire fraud, prosecutors said. The money laundering charges stem from Garcia-Albarracin’s alleged attempt to move and hide the funds he received. He purportedly used some of the funds to buy a home in the Kendall neighborhood. The five-bedroom, four-bathroom townhouse was sold in October 2019 for $380,000 and is listed under his name, records show. The property is now subject to civil asset forfeiture, authorities said.

Wire fraud, mail fraud, and money laundering are serious crimes that carry severe penalties. If convicted, Garcia-Albarracin faces fines of up to $750,000 and a maximum prison sentence of 20 years in prison for each count of mail fraud, 20 years for each count of wire fraud, and 20 years for each count of money laundering.

Online court records show that Garcia-Albarracin has a history of criminal activity that involved physical crimes, including a 2016 petit theft rap that cost him $358 in fines, and a 2006 charge of assault on an elderly person.

South Florida Fraud Attorney

If you are involved in a fraud case, then you should hire an attorney. Contact Brian Silber, P.A. to set up a free initial consultation and work with one of South Florida’s most experienced fraud attorneys.

Source: 1.15.20 Miami-Dade county resident charged with fraud targeting U.S. postal service.pdf