DIF Case # 13-1905

FLORIDA DEPARTMENT OF FINANCIAL
SERVICES
FRAUD DIVISION
FORT MYERS REGIONAL OFFICE

REpORT OF INVESTIGATION

CASE NUMBER: 13-1905
CASE NAME: Fruit Dynamics LLC et. al.
DATE OF REPORT: JULY 22, 2014

DETECTIVES: LT. MARK FRITZ

 DIF Case # 13-1905

FLORIDA DEPARTMEN T OF FINANCIAL SERVICES
DIVISION OF INSURANCE FRAUD

MEMORANDUM
DATE:

July 22,20 14

TO:

Stephen B. Russell , State Attorney
20th Judicial Circuit

FROM:

Lt. Mark Fritz

SUBJECT:

Investigative Costs - Restitution

DFS Case Number: 13-1905

Attached is the Department of Financial Services - Fraud Division Investigative Costs
Summary Report concerning the above captioned subject and/or criminal investigation.
At such time as this defendant is convicted or in the event your office decides to negotiate
a plea, in addition to full restitution to all victims, we respectfully request the defendant
be required to pay our investigative costs pursuant to the provisions ofF.S.S. 93 8.27, as
itemized below:
Detective Time:
106 hours @ $28.32 per hour ... ......... .. .... ... . ........... ............. :... .. $3,001.92
Lieutenant Time:
38.16hr @ $3 8.32perhour ..... ...... ........ . .... ...... ......... ..... .. ........ $1 ,462.44
Secretarial Time:
22 hours @ $15.27 per hour ... .... .. ... .......... .... ..... ... .. .. .. .... ..... ... ...

$335.94

Analyst Time:
13 hours @ $21.22 per hour ...... . ... .... .............. ........... ......... ...

$275.86

Additional Costs:
(Bank records, transcriptions, etc .) .... .. .................. .... ............ .. ..

Total Estimated Investigative Cost:

$5 85 .90

$5,662.06

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 DIF Case # 13-1905

TABLE OF CONTENTS

I.

PREDICATION ........................................................................... 4

II. SYNOPSIS OF FACTS ..................... ......................................... 5
Ill. LIST OF WiTNESSES .................................................................. 16
IV. DESCRIPTION OF SUBJECT ..... ......... ...... ...........................18
V. LIST OF EXHIBITS ............................................................24

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 DIF Case #13-1 905

PREDICATION
This investigation stemmed from a complaint made by Defense Attorney Michael
S. Elstein . Defense Attorney Elstein reported there are numerous unauthorized
workers (from another country) who are employed at Fruit Dynamics LLC , (dba :
Incredible Fresh) and Collier County Produce Inc. located at 4206 Mercantile
Ave. , in Naples, Collier County, Florida . Defense Attorney Elstein also reported
that the employer knows the workers are unauthorized. Defense Attorney Elstein
advised that he has represented clients who were injured while working at this
facility. Defense Attorney Elstein reported that when an employee became
injured , he/she was terminated most of the time and/or harassed. The insurance
carriers in turn would then attempt to suspend his/her benefits and claim he/she
committed fraud by using a false social security number in connection with their
worker's compensation claims .
This investigation is based on employees and/or employers that are allegedly
using fraudulent identification to seek, maintain , or facilitate the use of fraudulent
identification to obtain employment or employ an individual using fraudulent
identification in violation of Florida State Statute ill- 817.568(2)(a) titled Criminal
Use of Personal Identification Information and ill 440.105(4)(b)9 titled Workers'
Compensation - Prohibited Activities

817.568(2)(a) - Criminal Use of Personal Identification Information
Any person who willfully and without authorization fraudulently
uses, or possesses with intent to fraudulently use, personal
identification information concerning an individual without first
obtaining that individual's consent, commits the offense of
fraudulent use of personal identification information , which is a
felony of the third degree.
F.S. 440.1 05(4)(b)9 - Workers' Compensation
It shall be unlawful for any employer:
To knowingly participate in the creation of the employment
relationship in which the employee has used any false,
fraudulent, or misleading oral or written statement as evidence
of identity.
It shall be unlawful for any person :
To knowingly present or cause to be presented any false,
fraudulent, or misleading oral or written statement to any
person as evidence of identity for the purpose of obtaining
employment or filing or supporting a claim for workers'
compensation benefits.

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 DIF Case # 13-1905
SYNOPSIS OF FACTS

This investigation stemmed from a complaint made by Defense Attorney Michael
S. Elstein . Defense Attorney Elstein reported there are numerous unauthorized
workers (from another country) who are employed at Fruit Dynamics LLC, (dba:
Incredible Fresh) and Collier County Produce Inc. located at 4206 Mercantile
Ave. , in Naples, Collier County, Florida . Defense Attorney Elstein also reported
that the employer knows the workers are unauthorized . Defense Attorney Elstein
advised that he has represented clients who were injured while working at this
facility . Defense Attorney Elstein reported that when an employee became
injured , he/she was terminated most of the time and/or harassed. The insurance
carriers in turn would then attempt to suspend his/her benefits and claim he/she
committed fraud by using a false social security number in connection with their
worker's compensation claims. (exhibit #1)
On 9/17/13, Lt. Mark Fritz and Det. William Hill met with Fruit Dynamics' Plant
Manager, Mark Hansen . The following is a summary of a recorded sworn
statement. This summary is not verbatim . (exhibit #2)
Mark Hansen advised that there were 165 employees at Fruit Dynamics
and it is a year-round business. Mark Hansen believes the company's
worker's comp carrier is Guarantee Insurance Company. Either the
bookkeeper/accountant Heather Ebanks or AI Oakes deals with obtaining
the insurance coverage. The type of work 90% of the employees perform
are slicing and dicing fresh fruit and vegetables. The remaining staff
members are in a support group , driving forklifts and bringing the produce
to the processing portion of this facility. Fruit Dynamics employs 2 forklift
drivers. Those employees work the night shift loading the products on
delivery trucks. There are 8 supervisors that work on the plant floor. Fruit
Dynamics does not employ any truck drivers. The produce is delivered by
Oakes Farm's truck drivers. There are four clerical staff members . Most of
the processing of the produce is done by a cutting apparatus or cutting
machines. Only mangoes are cut using a hand-held knife. This company
works on a "to order" basis . The employees work an average of 50 hours
a week. There are generally 165 employees working per day, five days a
week.
The types of injuries employees generally suffered are : cuts made with a
knife, slip-falls, and repetitive motion injuries . Injured employees are sent
to Advanced Medical Center located at 1250 Pine Ridge Road in Naples,
FL. Advanced Medical Center is an urgent care center offering a variety
of medical services.
Mark Hansen explained the hiring process. The employees are found via,
"word of mouth". The turnover rate of employees is low. Eighty percent of
the employees are long-time employees.

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 DI F Case # 13-1 905
An employee's file would contain their application , W-2 , 1-9 form and copy
of their identification cards.
Mark Hansen provided a guided tour of the facility. Lt. Fritz noticed that a
majority of the workers were in processing rooms . The employees were
observed freely walking in and out of the shipping and storage warehouse.
While there, Lt. Fritz noticed semi trucks parked at the loading dock.
On 9/17/13, Lt. Fritz received a copy of the insurance policy from Fruit Dynamics'
employee Heather Ebanks . The policy only accounted for 102 employees.
Heather Ebanks advised their insurance agent is Stephen Benza employed with
Lutgert Insurance located at 1395 Panther Lane, Naples, FI. (exhibit #3)
A review of the policy revealed :
On December 12, 2012, a worker's compensation policy was written by
Lutgert Insurance Agency insuring Fruit Dynamics LLC located at 4206
Mercantile Ave . in Naples. The policy was issued from "Guarantee
Insurance". This policy listed one hundred (100) employees under rating
code 8018 titled "Store Wholesale NOC" and two (2) employees under
rating code 8810 titled "Clerical ".
During the course of this investigation, Lt. Fritz communicated with Contego
Services Group, LLC Special Investigations Unit Manager Trish Donaven and
learned the following: (exhibit #4)
On October 16, 2013, Guarantee Insurance Company conducted an audit
of this facility and discovered that there were one hundred and seventy
(170) employees under rating code 8018 titled "Store Wholesale NOC"
and four (4) employees under rating code 8810 titled "Clerical". As a result
of this audit it was discovered that Fruit Dynamics dba: Incredible Fresh
had under reported their employee payroll and the number of employees
employed . During this audit an employee master list was obtained listing
all the employees for the period ending September 28, 2013.
During the period September 16, 2013 through June 12, 2014 , Florida Division of
Insurance Fraud CIA Supervisor Kathy Morris and Florida Division of Insurance
Fraud Crime Intelligence Analyst Lisa Gonzalez conducted a research on 212
employees to verify whether anyone used fictitious identification numbers to seek
and maintain employment. As a result of their research , 171 employees were
identified as fictitiously using another person 's identity to seek and maintain
employment or used a fictitiouslinvalid Social Security Number. This was
accomplished by submitting the employee 's name and his/her associated United
States Social Security Number to the United States Social Security
Administration asking the Administration to determine if the purported United
States Social Security Numbers matched .

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 D1F Case # 13-1 905
As a result of this request it was determined that 171 employees used another
person 's United States Social Security Number or an invalid number to obtain
employment at the above-listed business. Kathy Morris and Crime Intelligence
Analyst Lisa Gonzalez conducted further research utilizing computerized
databases and were able to identify the names of the true owners of those
fraudulently used Social Security Numbers. Kathy Morris then submitted the
names of the true owners of the Social Security Numbers to the United States
Social Security Administration and confirmed that the true owners' names
matched their Social Security Numbers . Kathy Morris subsequently received
proof of the true owners' names and Social Security Numbers for 77 victims of
identity theft. (exhibit #5)
During the past several months Lt. Fritz sent out victim identity theft affidavits to
law enforcement agencies in twenty-five (25) different States: Alabama , Arizona ,
California, Colorado, Florida, Idaho, Illinois, Iowa , Kansas , Kentucky, Maryland ,
Minnesota, Montana, Nevada , New York, Pennsylvania, North Dakota ,
Oklahoma, Oregon , Tennessee, Texas, Utah , Virginia, Washington , Wisconsin ;
plus Puerto Rico and Washington D.C. Lt. Fritz subsequently received affidavits
or certified death certificates on (27) identity theft victims confirming the
information collected by Supervisor Kathy Morris and Crime Intelligence Analyst
Lisa Gonzalez. These affidavits will be found in the respective defendant exhibits.
On April 7, 2014, Lt. Fritz and Fire Marshal Detective Raul Vallejo interviewed a
former employee (further referred to as a Cooperating Witness). Cooperating
Witness identified Robert Eddy as a Supervisor, Maria Eddy as the Human
Resource person and Mark Hansen as the manager. Cooperating Witness
advised that no one associated with the company assisted him in obtaining his
fraudulent identification. Cooperating Witness stated that many of the employees
have fake identities which they have used to seek and maintain employment at
this business . Cooperating Witness advised that everybody working there knows
who has obtained employment illegally. (exhibit #6)
On April 7, 2014, Lt. Fritz then traveled to Fruit Dynamics and met with Robert
Eddy and Maria Eddy. Lt. Fritz asked to speak with somebody in Human
Resources. Robert Eddy advised Lt. Fritz that he would have to speak with
Manager Mark Hansen . Lt. Fritz later met with Mark Hansen . Mark Hansen
introduced Lt. Fritz to Maria Eddy as the Human Resource Manager. Lt. Fritz
advised that he wanted to view the Cooperating Witness' personnel file . Another
office staff worker brought the Cooperating Witness' personnel file to be viewed .
Lt. Fritz noted that this file was obtained from a rear office behind Mark Hansen's
office. This unknown employee is known as Teresa (later determined to be Maria
Teresa Pacheco). Maria Eddy and Mark Hansen advised that Heather Ebanks is
the person that maintains the 1-9 forms and that she works on Wednesdays. Lt.
Fritz subsequently received the "First Report of Injury or Illness" form prepared
for the Cooperating Witness' injury. The company name on this report was
"Collier County Produce Inc." located at 4206 Mercantile Ave.

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 DIF Case # 13-1 905
The Federal Identification Tax number was listed as 65-0114172 . Florida
Department of State - Division of Corporations database show that 65-0114172
is assigned to Collier County Produce, Inc. During this visit, Lt. Fritz observed
computers in the Mark Hansen's and Maria Eddy's offices. (exhibit #7)
On April 9, 2014, Lt. Fritz met with Heather Ebanks at her office. Heather Ebanks
advised Lt. Fritz that she had retrieved Cooperating Witness' 1-9 form and gave it
to Manager Mark Hansen . Heather Ebanks explained that she does not interview
the new applicants or obtain their identities. Maria Eddy is the person who
interviews the new applicants and obtains their identifications. Maria Eddy is the
person that provides the new employees' applications to Heather Ebanks for
forwarding to their payroll company. Heather Ebanks advised that she has never
observed a problem in the past related to employees having fake identifications.
Heather Ebanks stated that she works part-time in this position and that for
several years she worked for the owners at "Oakes Farms". (NOTE: Oakes
Farms is affiliated with Fruit Dynamics LLC and Collier County Produce, Inc.)
(exhibit #8)
On April 9, 2014, Lt. Fritz met with Plant Manager Mark Hansen . Mark Hansen
provided Lt. Fritz with a copy of the 1-9 signed by Cooperating Witness. Mark
Hansen confirmed that he received the document from Heather Ebanks proving
that employee personnel files are stored in her office. (exhibit #10)
On April 9, 2014, Lt. Fritz obtained a recorded sworn statement from Human
Resource Manager Maria Eddy confirming that she was the person that
completed Cooperating Witness' 1-9 form . While there, Lt. Fritz observed
employees freely moving from the processing rooms , warehouse area, and the
shipping department. (exhibit #11)
On June 17, 2014, Lt. Fritz conducted a computerized inquiry into the National
Insurance Crime Bureau (NICB) database researching employees at Fruit
Dynamics LLC and Collier County Produce located at 4206 Mercantile Ave . Lt
Fritz discovered that during the period 2004 thru 2012, numerous worker's
compensation claims were filed by employees using a policy issued to Collier
County Produce. Twenty-nine of those employees were the same individuals
using fake identity numbers to seek and maintain employment at th is location. Lt.
Fritz further researched the NICB database and discovered that between 2004
and 2014 there was only one workers compensation claim filed in 2014 on a
policy issued to Fruit Dynamics LLC . (exhibit #12)
On July 15, 2014, DIF CIA Supervisor Kathy Morris provided a sworn affidavit
confirming that she sent Social Security verifications checks to U.S. Social
Security Administrations and received proof that the above listed defendants
used another person's social security number. (exhibit #190)

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 DIF Case # 13-1 905

On July 16, 2014, A search warrant was executed at the above listed business.
The items seized were employee's employment records for the below listed
employees that were discovered using social security numbers not issued to
them from the United States Social Security Administration. The records
included : ill photo copies of all identifications used to obtain employment, ill
employment application, ill Employment Eligibility Verification Form 1-9, (4) Any
workers compensation claim documents related to the employees listed below.
(exhibit #13)
CCSO and DIF separated the employees in two groups; male and females .
Spanish interviewers then began the process of interviewing employees to
determine if they used a fictitious identification to gain employment. During the
interview process, several employees were found using legitimate identifications
to gain employment. Once these employees were identified they were release .
There were many other employees known to have used fictitious identification to
gain employment, however, since there were no supporting documents in the
employee personnel file , they were also released pending further investigation.
On July 16, 2014, DIF and CCSO investigators interviewed many of the
employees. Det. Ralph Guarniero worked with worked closely with U.S.
Immigrations Customs Enforcement (ICE) and obtained proof that many of the
below listed employees used fake Alien Resident Cards to seek and maintain
employment. The following is a list of the known identity theft employees. This list
indicates whether an employee was arrested or released pending further
investigation . This list also identifies the related exhibit number associated with
each defendant. The exhibits will contain all document associated to the
respective defendant. The arrests were based on the following: (1) Affidavits from
Lt. Fritz detailing his investigation up to July 16, 2014, (2) Affidavits from Det.
Guarniero related to proof from ICE that a defendant used a false Alien
Registration Number, and (3) affidavits from Detectives that interviewed the
defendants. These signed documents were submitted with the CCSO Booking
reports.

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