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Florida Businessman Sentenced in Connection with Migrant Labor Employment Scheme, Payroll Tax Evasion, and Worker Death

Source: United States Department of Justice Criminal Division

A Florida man was sentenced yesterday to 48 months in prison and ordered to forfeit more than $5.5 million to the United States as well as forfeit numerous real properties and cash, and to pay over $55 million in restitution for conspiracy to commit wire fraud, conspiracy to defraud the United States and willful violation of a workplace standard that resulted in the death of his employee. Manual Domingos Pita, of Wesley Chapel, previously pleaded guilty to those charges on July 9, 2024.

According to court documents, Pita owned and operated Domingos 54 Construction, a subcontracting business for the wood framing of new construction homes. Domingos 54 was a shell construction company that Pita used to provide workers, including undocumented aliens, with construction jobs. However, Pita failed to secure the required workers compensation insurance coverage for these employees by falsifying in worker’s compensation insurance applications the number of workers for which he sought coverage. In addition, Pita failed to pay any federal employment taxes on the wages that these workers earned during the course of the scheme between 2018 and 2022. As a result, Pita caused several worker’s compensation insurance companies to sustain a loss of over $22.7 million in premiums that they could have charged had they been aware of the number of workers which they had been manipulated into covering with their policies. In addition, Pita failed to pay to the IRS over $33.7 million in federal employment taxes on those workers’ wages.

Between February and July 2019, investigators with the Occupational Safety and Health Administration (OSHA) issued six citations to Domingos 54 for failure to provide fall protection to workers. Even after being cited for these violations, Pita continued to ignore OSHA requirements. In March 2020, Pita assigned a worker and three other carpenters to install sheeting on the roof of a residential home in windy conditions without providing the required fall-protection gear or ensuring its use. As a result, one of the workers was blown off the roof and died from his injuries.

“Pita’s history of OSHA violations and deception tragically led to a worker’s death,” said Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division. “We are committed to upholding the rule of law by prosecuting fraud and enforcing worker safety standards.”

“The defendant in this case engaged in a deliberate scheme to defraud insurance companies, the government and evade taxes, resulting in huge losses to the U.S. Treasury, and to personally enrich himself,” said Acting U.S. Attorney for the Middle District of Florida Sara C. Sweeney. “In addition, flagrant violations of OSHA safety standards put workers at unacceptable risk, ultimately resulting in the death of an employee. My office is committed to federally prosecuting and holding accountable anyone who violates these laws and regulations.”

“Mr. Pita repeatedly violated the longstanding policies designed to protect the workforce which resulted in a tragic death,” said Special Agent in Charge Matthew Fodor of the FBI’s Tampa Field Office. “The FBI and its partners will aggressively pursue those who selfishly ignore the laws and policies in place to protect America’s workforce.”

“Not only does this type of scheme give an illegal advantage over honest competitors, it intends to allow the use of illegal, undocumented labor to achieve that advantage,” said Special Agent in Charge Ron Loecker of IRS Criminal Investigation’s Tampa Field Office. “It’s a blatant form of cheating that undercuts fair competition, costs the government millions of dollars in tax revenue, and skirts our nation’s immigration laws. This case reaffirms our unwavering commitment to prosecuting those who engage in fraud at the expense of workers, taxpayers, and law-abiding businesses.”

The FBI, IRS Criminal Investigation, Homeland Security Investigations, Florida Department of Financial Services’ Bureau of Insurance Fraud-Criminal Investigations and the Department of Labor’s Office of Inspector General investigated the case.

Assistant U.S. Attorney Jay L. Hoffer for the Middle District of Florida and Senior Trial Attorney Banumathi Rangarajan of the Environment and Natural Resources Division’s Environmental Crimes Section prosecuted the case.

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Vice President of Health Care Software and Services Company Pleads Guilty to $1B Health Care Fraud Conspiracy

Source: United States Department of Justice Criminal Division

A Kansas man pleaded guilty today to operating an internet-based platform that generated false doctors’ orders to defraud Medicare and other federal health care benefit programs of more than $1 billion.

According to court documents, Gregory Schreck, 50, of Johnson County, admitted that he and his co-conspirators targeted hundreds of thousands of Medicare beneficiaries to provide their personally identifiable information and agree to accept medically unnecessary orthotic braces, pain creams, and other items through misleading mailers, television advertisements, and calls from offshore call centers. Schreck and his co-conspirators owned, controlled, and operated DMERx, an internet-based platform that generated false and fraudulent doctors’ orders for orthotic braces, pain creams, and other items for these beneficiaries. Schreck, a vice president of the company that operated DMERx, admitted that he offered to connect pharmacies, durable medical equipment (DME) suppliers, and marketers with telemedicine companies that would accept illegal kickbacks and bribes in exchange for signed doctors’ orders that were transmitted using the DMERx platform. Schreck and his co-conspirators received payments for coordinating these illegal kickback transactions and referring the completed doctors’ orders to the DME suppliers, pharmacies, and telemarketers that paid for them. The fraudulent doctors’ orders generated by DMERx falsely represented that a doctor had examined and treated the Medicare beneficiaries when, in reality, purported telemedicine companies paid doctors to sign the orders without regard to medical necessity and based only on a brief telephone call with the beneficiary, or sometimes no interaction with the beneficiary at all. The DME suppliers and pharmacies that paid illegal kickbacks in exchange for these doctors’ orders generated through DMERx billed Medicare and other insurers more than $1 billion. Medicare and the insurers paid more than $360 million based on these false and fraudulent claims.

Schreck pleaded guilty to conspiracy to commit health care fraud and faces a maximum penalty of 10 years in prison. A sentencing hearing will be scheduled at a later date. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division; Acting Special Agent in Charge Isaac Bledsoe of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Miami Regional Office; Acting Special Agent in Charge Justin E. Fleck of the FBI Miami Field Office; Special Agent in Charge David Spilker of the Department of Veterans Affairs Office of Inspector General (VA-OIG)’s Southeast Field Office; and Special Agent in Charge Jason Sargenski of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office made the announcement.

HHS-OIG, FBI, VA-OIG, and DCIS are investigating the case.

Trial Attorneys Darren C. Halverson and Jennifer E. Burns of the Criminal Division’s Fraud Section are prosecuting the case. Fraud Section Trial Attorneys Andrea Savdie and Shane Butland assisted in the prosecution.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

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Defense News: Commanding Officer of USS Harry S. Truman Relieved

Source: United States Navy

Snowden was relieved by Rear Adm. Sean Bailey, commander of Carrier Strike Group 8, after serving as the aircraft carrier’s commanding officer since December 2023. Snowden will be temporarily assigned to Naval Air Forces Atlantic.

The relief occurred after Truman was involved in a collision with the merchant vessel Besiktas-M on Feb. 12, while operating in the Mediterranean Sea in the vicinity of Port Said, Egypt.

The U.S. Navy holds commanding officers to the highest standard and takes action to hold them accountable when those standards are not met. Naval leaders are entrusted with significant responsibilities to their Sailors and their ships.

Capt. Christopher Hill, commanding officer of USS Dwight D. Eisenhower (CVN 69), will temporarily serve as Harry S. Truman’s interim commanding officer.

Dwight D. Eisenhower is currently undergoing scheduled maintenance at Norfolk Naval Shipyard after completing a nine-month deployment to U.S. Central Command and U.S. European Command in July 2024.

There is no impact to Harry S. Truman’s mission or schedule due to the relief. The Nimitz-class aircraft carrier is currently deployed to the U.S. 6th Fleet area of operations.

For questions related to this release, contact U.S. Sixth Fleet / Task Force SIX Public Affairs at cne_cna_c6fpao@us.navy.mil

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Defense News: International Maritime Exercise 2025 concludes

Source: United States Navy

IMX 2025 brought together 5,000 personnel from over 30 nations and international organizations committed to preserving the rules-based international order and strengthening regional maritime security cooperation.

The 12-day exercise took participants through several exercise serials across multiple locations at sea in the Arabian Gulf, Gulf of Oman, Gulf of Aden and the Red Sea, as well as ashore and in the air. Some of the serials included diving, harbor security, mine countermeasures, unmanned systems and artificial intelligence integration, visit, board, search and seizure procedures, and global health management events.

“It’s inspiring to see so many nations working together. The incredible level of international representation is pivotal to our success of safeguarding regional waterways and enabling the free flow of commerce,” said U.S. Navy Vice Adm. George Wikoff, Commander of U.S. Naval Forces Central Command and U.S. 5th Fleet, in his remarks at the closing ceremony. “IMX 2025 was truly about partnering to strengthen and expand our capabilities.”

“[The] exercise brought forward many viewpoints [about how] to handle a single situation in various different ways. I am confident that the takeaways of this exercise will serve all the participants in planning and executing various exercises in their respective countries,” said Pakistan Navy Commodore Rashid Mahmood Sheikh, who led the CPX exercise for IMX 2025, in his remarks.

IMX 2025 ran in conjunction with a U.S. Naval Forces Europe-Africa exercise, Cutlass Express 25, with each exercise’s respective maritime operations centers exercising their information sharing capabilities to improve theater-to-theater coordination, reduce regional seams, and strengthen interoperability.

The ninth iteration of the series, IMX began in 2012 as the International Mine Countermeasures Exercise, before changing its name to reflect a more expansive mission set.

The U.S. 5th Fleet area of operations encompasses nearly 2.5 million square miles of water area and includes the Arabian Gulf, Gulf of Oman, Red Sea, parts of the Indian Ocean and three critical choke points at the Strait of Hormuz, Suez Canal and Bab al-Mandeb.

For imagery, photos and information on IMX, visit the feature page at: https://www.cusnc.navy.mil/IMX/.

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Defense News: Chief of Naval Operations Visits New England Bases, Stresses Lethality and Readiness

Source: United States Navy

NEWPORT, R.I. – Chief of Naval Operations (CNO) Adm. Lisa Franchetti traveled to New England to meet with area Sailors, civilians, and leadership, tour General Dynamics Bath Iron Works (BIW) and Portsmouth Naval Shipyard (PNSY), and meet with students and faculty at Navy school houses and the Naval War College in Newport, R.I., Feb. 18-19.

This visit underscores the Navy’s commitment to putting more ready players on the field and prioritizing training with a focus on warfighting, wargaming, and readiness.

At BIW, in Bath, Maine, Franchetti met with two dozen shipbuilders who are working on the new radar and combat suite for Pre-Commissioning Unit (PCU) Louis H. Wilson Jr. (DDG 126), BIW’s first Flight III Arleigh Burke-class destroyer. She commended them for their hard work and recognized their vital contributions to the Navy’s shipbuilding efforts.

“I’m focused on warfighting and the warfighters that do that warfighting, and they can’t do that without platforms like this,” said Franchetti to Bath Iron Works shipyard workers aboard DDG-126. “I believe in service both in uniform and out. Your service here, building this amazing warship, is also service to your nation. You’re making sure we have the most ready, capable, and lethal Navy that our Nation needs to be able to protect our national security interests all over the world. That all starts right here.”

Franchetti also met with Sailors from the PCUs Harvey C. Barnum Jr (DDG 124) and Patrick Gallagher (DDG 127), the final DDG Flight IIA being built for the Navy.

“It’s exciting to be the plank owners of ships that are going to serve our Nation for 30 years,” said Franchetti. “At the commissioning ceremony for the first Arleigh Burke destroyer, Adm. Arleigh Burke told the crew, ‘this ship was built to fight.  You better know how,’ and I know that’s what this crew thinks about when you go to work every day.”

Franchetti added, “we’ve had 26 warships operating in the Red Sea over the last 15 months, at a level of combat intensity we haven’t seen since World War II. Twelve of those ships were built right here at BIW and have been performing magnificently. That performance is because of our investments in lethal systems, investments in our foundation – shipyards like this one – and investments in Sailors who live and breathe the warrior ethos every day.”

Continuing the visit, CNO took a Quality of Service tour at PNSY where she visited various facilities, including the Bachelor Enlisted Quarters, the Navy Exchange, and the Micromart. During the tour, she engaged in discussions about initiatives focused on improving the quality of life for Sailors. These efforts are part of the ongoing commitment to deliver the high level of service that Sailors deserve and are a key Project 33 target outlined in the CNO’s Navigation Plan for America’s Warfighting Navy.

CNO also received updates on ongoing Shipyard Infrastructure Optimization Program modernization efforts, ship maintenance, and refit timelines at PNSY. She emphasized the need to build readiness and capability now as the Navy partners to scale industrial capacity and expand budgets for future growth—an effort that aligns with another key target in the CNO’s Navigation Plan, to strengthen and modernize the Navy’s industrial base to get platforms in and out of maintenance on time. While at PNSY, she presented the FY24 Battle “E” award to the crew of the Virginia-class fast attack submarine USS North Dakota (SSN 784).

“One of the big tenants of America’s Warfighting Navy is getting more players on the field. That’s platforms with the right capabilities, the right modernization, the right lethality, and people with the right skillset, toolset, and mindset, and you embody that every single day,” Franchetti told the crew. “I’m confident that you’re going to get this player back out on the field as fast as possible because of your very clear commitment to getting after every challenge that comes your way. Your partnership with the shipyard team is second to none, and together, you got left of any barrier that came up. Our submarines are the Apex Predators of the Fleet, and I know the ‘Reapers of the Deep’ are excited to get back out there.”

Following the visit, the CNO went to Newport, R.I., to meet with leadership at the Surface Warfare Schools Command (SWSC) and to speak at the department head graduation. While there she also relayed her charge of command and spoke about standards to the prospective commanding officers.

“You’re going back to the Fleet at a critical time for our Navy and our nation. As you have seen this past year, our Navy-Marine Corps team, and really our surface warfare community, has been in high demand in every region around the globe,” Franchetti said. “We are operating in contested waterways and airspaces to underwrite the global security environment, and to keep the sea lanes of communication open for all to use. There’s no other Navy that operates at this scale, no other Navy can train, deploy and sustain such a lethal, globally deployed, combat credible force at the pace, the scale, and the tempo that we do.”

The CNO then met with leadership from the U.S. Naval War College and received briefs from the college’s Halsey Group advanced research programs, which conduct data collection, research, analysis and wargaming to examine challenges at the operational level of war in the Middle East and East Asia.

To wrap up the visit, CNO met with leadership and students from both the Naval Supply Corps School and the Naval Justice School to thank them for their work delivering warfighting advantage every day.