Please E-mail suggested additions, comments and/or corrections to Kent@MoreLaw.Com.
Date: 03-11-2022
Case Style:
Case Number: 1:20-cr-20170-RNS
Judge: Claire C. Cecchi
Court: United States District Court for the Southern District of Florida (Miami-Dade County)
Plaintiff's Attorney: United States Attorney’s Office
Defendant's Attorney: Irwin Lichter
Description: Miami, Florida criminal defense lawyer represented defendant charged with conspiracy to commit health care fraud in violation of 18 U.S.C. 1349, Health Care Fraud in violation of 18 U.S.C. 1347, receipt of kickbacks in violation of 42 U.S.C. 1320.
Matthew Benjamin, 54, formerly of Englewood, New Jersey, and now of New York, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with one count of wire fraud and one count of securities fraud. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From May 2017 through August 2019, Benjamin falsely represented to at least three families that his company, Clear Solutions Group LLC, had lucrative contracts to purchase closeout or excess cosmetic inventory from a company, which he would then resell at a mark-up to a second company. Benjamin told the victims that he had access to these closeout goods through his contacts in the cosmetics and fragrance industry, which he purportedly made through his work at his family’s cosmetic wholesale and distribution business prior to starting Clear Solutions Group. Benjamin induced the victims to provide him with money to purchase the inventory from the first company and promised significant profits in return. Instead of investing the money as he promised, Benjamin misappropriated the investors’ money for his own use and benefit.
Benjamin provided the victims with falsified documents, including fake purchase orders, invoices, promissory notes and bank records showing inflated assets of Clear Solutions Group. To lull victims and induce them to continue investing, Benjamin provided them with documents that purported to detail the investors’ profits.
Benjamin misrepresented to certain investors that portions of their profits on the investment contracts were being reinvested in additional deals to purchase and sell cosmetics, which in turn would generate more profits. From time to time, Benjamin made payments to the investors that were purportedly their profits on certain cosmetics contracts.
In reality, Benjamin misappropriated the investors’ money by making payments to other investors in Clear Solutions Group, which were characterized as those investors’ profits from the nonexistent cosmetic contracts, thereby enabling Benjamin to continue to perpetuate his fraudulent scheme and funding Benjamin’s lifestyle, including paying for car and house rental payments, food, international travel, legal fees, technology equipment, and summer camp tuition for his family members.
In addition to the prison term, Judge Cecchi sentenced Benjamin to three years of supervised release and ordered forfeiture of $1.53 million and restitution of $909,539.
The U.S. Securities and Exchange Commission has filed a civil complaint against Benjamin based on allegations underlying the securities fraud charge.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jennifer S. Kozar and Catherine R. Murphy, Chief of the Economic Crimes Unit of the U.S. Attorney’s Office.
Outcome: 03/11/2022 41 PLEA AGREEMENT as to Ernesto Espinosa (jh) (Entered: 03/11/2022)
03/11/2022 42 FACTUAL PROFFER STATEMENT as to Ernesto Espinosa (jh) (Entered: 03/11/2022)
03/11/2022 43 PAPERLESS Minute Entry for proceedings held before Judge Robert N. Scola, Jr: Change of Plea Hearing as to Ernesto Espinosa held on 3/11/2022. Ernesto Espinosa (1) Guilty Count 1 of the information. Sentencing hearing set for 5/24/2022 at 8:30 AM. Defendant is permitted to remain on bond pending sentence. Total time in court: 30 minutes. Spanish Interpreter present. Attorney Appearance(s): DOJ Alexander Thor Pogozelski, and Irwin G. Lichter, Esquire. Court Reporter: Tammy Nestor, 305-523-5148 / Tammy_Nestor@flsd.uscourts.gov. (jh) (Entered: 03/11/2022)
03/11/2022 44 Notice of Presentence Investigation Assignment of Ernesto Espinosa to US Probation Officer James Thomas in the Miami Wilkie D. Ferguson, Jr. U.S. Courthouse and he can be contacted at (305)523-5341 or James_Thomas@flsp.uscourts.gov. (lrn) (Entered: 03/11/2022)
03/11/2022 45 PAPERLESS ORDER SETTING IN-PERSON SENTENCING HEARING as to Ernesto Espinosa. Sentencing set for 5/24/2022 08:30 AM in Miami Division before Judge Robert N. Scola Jr., at the Wilkie D. Ferguson U.S. Courthouse, 400 North Miami Avenue, Courtroom 12-3, 12th floor, Miami, Florida. Signed by Judge Robert N. Scola, Jr on 3/11/2022. (jh) (Entered: 03/11/2022)
03/11/2022 46 Corrected Notice of Presentence Investigation Assignment of Ernesto Espinosa to US Probation Officer Andrew McDougan in the Miami Wilkie D. Ferguson, Jr. U.S. Courthouse. He can be contacted at (305)523-5313 or Andrew_McDougan@flsp.uscourts.gov. (lrn) (Entered: 03/11/2022)
Plaintiff's Experts:
Defendant's Experts:
Comments: