Florida Criminal Attorney Blog

Geroge Elia, of Fort Lauderdale, Florida was arrested for wire fraud on Tuesday after he stepped off of a flight from London to Las Vegas, Nevada. Police have been searching for Elia for two months after he allegedly defrauded South Florida investors out of nearly $10 million. Elia, 68, is currently facing one federal charge of wire fraud; it is not clear whether an investigation by the Federal Bureau of Investigation and the Florida Office of Financial Regulation will yield more charges. It is not clear whether Elia is eligible to receive bail bond. He will soon be transported from Nevada to Florida to face the charges. If convicted, he could face up to 20 years in prison.

Elia's wife, Darlene Elia, reportedly accompanied her husband back to the United States. Here whereabouts are currently unknown, but a Broward Circuit Judge had ordered her arrest and return to South Florida. She has a contempt of court issued against her for failing to attend lawsuit depositions related to her husband's alleged fraud.

George Elia was reportedly in Cyprus, Greece (his birthplace) during the time when he was missing from the United States. He and Darlene Elia moved out of their South Florida home overnight earlier this year as his former clients started to file lawsuits against him. It is not entirely clear why Elia decided to come back to the United States.

According to reports from up to 20 investors, Elia misled them into believing that his company, International Consultants & Investment Group Limited Corporation, was managing $8 million in funds in the stock market. One investor photographed Fidelity records that Elia allegedly showed him during a meeting at the Ritz-Carleton, which reflected a total balance of $8.242 million for Elia's investments. Later, the FBI determined that Elia was actually managing around $111,000.

Investors said that Elia was judicious about sending regular reports and payments, which showed significant gains, but that he suddenly stopped doing so in the summer of last year. Investors reported that they were unable to each Elia via phone or email when they attempted to contact him. The realtor who was in charge of his residence reported that several people came by the home looking for Elia after he had moved out.

Several investors have decided to file lawsuits against Elia in order to recover some of their lost assets. The largest of the lawsuits as of now is that of Michael Imbesi and his family. Imbesi claims that he started working with Elia in 2005, and that he referred his whole family to Elia after Elia gained his trust. He alleges that his parents invested their entire retirement fund with Elia, and that they have now lost it all. He claims that in total, he and his family lost $4 million. Imbesi is suing for that amount in Broward County court.

At least four other investors reported having lost at least half a million dollars apiece. Elia reportedly had at least 30 clients, most of whom live in the Wilton Manors and Fort Lauderdale areas. Investigations have allegedly revealed that Elia transferred millions in client money to accounts controlled by his wife or himself, which the couple later used for their own purposes.

Steven Goodman of St. Petersburg, Florida was charged with conspiracy to commit mail fraud on March 28, according to a press release by the Southern District of Florida United States Attorney's Office. Goodman faces the federal charges in connection to the alleged massive pill mill operation headed by twins Jeffrey and Christopher George, who are currently on trial. It is not clear whether Goodman is eligible to receive bail bond or has retained a private criminal defense attorney.

According to the release, an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Internal Revenue Service and Broward, Palm Beach, Boca Raton and other local police departments resulted in the charge against Goodman. Goodman is a pharmaceutical wholesaler and the former owner and operator of Medical Arts Pharmacy, Inc. of St. Petersburg, FL.

The indictment accuses Goodman of using U.S. mail to ship large amounts of prescription drugs to the George brothers without following federal regulations. Pharmaceutical wholesalers are required to make sure that they are not selling to pill mills. Since the allegation involves the U.S. postal service, the charge is federal.

The George brothers are currently undergoing trial in connection to their alleged operation, which authorities believe brought in $40 million. So far 32 people have been charged in the case, including the George brothers' mother, who allegedly stashed $4.5 million in cash from the operation in safes in her home. 27 so far have pled guilty as charged.

The charges come in connection to four pain management clinics that the George brothers allegedly ran in Palm Beach and Broward counties from 2008 to 2010. The 30-year-old pair, neither of whom have medical degrees, were allegedly able to open the clinics without much trouble. The operation employed a total of five licensed doctors, each of who was paid based on how many prescriptions they wrote out. The doctors reportedly saw around 250 patients a day. The indictment mentioned that the brothers used brazen advertising methods for the clinics, hiring a bikini model for promotional purposes and encouraging out-of-state customers.

Each clinic was wildly successful and allegedly made about $50,000 in cash a day. The prescription drugs sold through the operation are suspected to number in the tens of millions and be responsible for at least 56 overdose deaths. Jeffrey George has actually been charged with the murder of Joey Bartolucci, who is suspected to have died as a result of overdose of pills acquired through the pill mill operation.

The 14-month investigation into the twins' activities revealed that they spent millions on expensive cars including a Lamborghini and a monster truck, lavish homes decked out with flat-screen TVs, and a boat. It also found that the operation involved known gang members and criminals.

The incident has led to questions about a lack of security in Florida law, especially since Chris George was able to open the pain clinics without problems despite the fact that he was convicted of felony drug possession in 2002. Florida is notorious for playing host to a large number of high-profile drug and pill mill operations.

George Elia is reportedly under investigation in Broward County, Florida by the FBI for a an alleged Ponzi scheme. Elia has invoked his right to remain silent and is not believed to be in custody at this time, although he is currently facing lawsuits stemming from the alleged scheme. His criminal defense attorney has not issued any comments.

Elia is being accused by several former investors of running a Ponzi scheme that lost investors millions, often constituting their entire life savings. Elia still owns International Consultants, the company he supposedly used to run the scheme. A Broward Circuit Judge froze all accounts connected with International Consultants and Elia Realty, a company operated by Elia's wife after Michael Imbesi, a former client, filed an injunction.

"This has been emotionally devastating," Imbesi told the press. He and his family have filed a $4 million lawsuit against Elia, alleging that Elia lost them all their life savings. Authorities expect that more alleged victims will come forward as the investigation continues.

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