EFTA00193954

AFFIDAVIT OF JAY CURTIS SCHEURER 
T1S SCHEURER, being first duly sworn on oath, hereby swear and affirm • • 
as follows: 
INTRODUCTION 
•.• 
1. I am Currently employed by the United States Food mid Drug Administration, Office of 
Criminal Investigations (FDA/OCI) as a Special Agent and have been so-employed since • 
May, 2002. I have approximately nine years of prier law enforcement experience as a 
Special Agent with the United States Department of Education, Office of Inspector 
General. I am currently assigned to the FDA/OCI Miami Field Office, Plantation, 
Florida, with the responsibility of investigating violations of the Federal Food, Drug, and. 
Cosmetic Act, (hereinafter "FD&C Act"), distribution of controlled substances under 
Title 21, and related crimesiincluding financial fratid and money laundering. I have 
received training frit the United States Food and Drug Administration (FDA) in.
conducting investigations regarding the illegal distribution of controlled substances and 
other pharmaceuticals as well as training in the investigation of fraud and money 
laundering whales. 
2. I am part of an investigative team which includes law enforcement officers from • 
• FDA/OCI, the Federal Bureau of Investigation, Postal Inspection Service Inspectors,. and.:
Inspectors from Drug Enforcement Administration's (DEA) biversion unit. Members of F.. 
the team have significant experience and training in the investigation of both 
pharmaceuti6a1 drug violations and financial crimes. Members of the team have.also  
consulted with numerous experts, including those in the 
chemistry and. insurance claims. 
• 
• 
GOVERNMENT 
EXHIBIT 
• 
4 
ms&rtailutilna fPittadi and... 
correct copy of the original, 
Carl •s Juenke, 
District Co 
Sou il 
District 
Date 
ty Clerk . 
• . .. 
EFTA00194474

3. Since aPpr0ximately isiarch;'1004,'We haviheen 
intestigationtitunitrerHot • 
.. 
• 
individuals including Toseph Sutera, a licensed pharmacist who, from appitodmately
.June, 2001 to September, 2005, owned of The Medicine Shoppe, a retail pharmacy • 
lOcateil at 3365 Burris Road, Suite 104, in Palm Beach Gardens; Florida. 
4. On February 2, 2006, a federal grand jury in the Southern District of Florida indipted 
. 
.. 
• 
.• • 
• Joseph Sutera and others for conspiracy to commit health care fraud, in violation of 18. 
§ 371; health care fraud in violation of 18 U.S.C. §1347; false statements to law 
enforcement, in violation of 18 U.S.C. §1001;.and moneylaunciering, in violation of 18 
U.S.C. § 1957. The indictment also included the forfeiture of the following assets 
associated with Sutera: 
A. 
A stun of $9,941,761.44 in United States currency representing the groas proceeds 
obtained as ti result of the offense. 
The contents of his residence located at 912 Mill Creek Drive, Palm Belch 
Gardens; Florida, including but not limited to a grand piano,consumer electronic . • 
equipment, including stereo sYstems•and television sets; artwork, nxttires,•and. 
decimator items, and furniture. 
C. . 
PrOceeds lathe amount of approximately$362,083.32 from' he sale of a parcel of 
• . 
real estate formerly deeded to defendant JOSEPH SUTERA located at Nature 
Court, Palm Beach Gardens, Florida. . 
D. 
Proceeds in the amount of approximately $396;793.25 from the sale of a parcel of 
real estate formerly deeded to defendant JOSEPH SUTERA located at Palm 
- 
Bay, Palm Beach Gardens, Florida. 
E. 
Proceeds in the amount of approximately $150,275.98 from the sale of a parcel of 
EFTA00194475

real estate formerly deeded to Stab), 
assoCiatedTivith defendant' • • 
• JOSEPH SUTERA, (ticked:at Indiainevin Road;Jupiter, Florida: 
• 
. . 
F. . 
Proceeds in the amount of approximately $34,023.58 from the sale of a parcel of 
real-estate forinerly deeded to defendant JOSEPH SUTERA located at:Santa • 
Barbara Way, Palm Beach Gardens, Florida. 
G. 
• proceeds received from a Mortgage in the amount of approximately $20,000.00 
recorded on a parcel of real estate formerly deeded to defendant-JOSEPH 
SUTERA located at Santa Barbara Way, Palm Beach Gardens, Florida. Said 
mortgage was recorded on August 20, 2004, at Book 17424, Page 201 of the 
records of Palm:Beach County, Florida. 
Contents of IDS Life Insurance Company IRA Account number 93-107241382-2-
004 in, the name of defendant JOSEPH SUTERA. 
Contents of IDS Life Insurance.Company IRA Account number 93-107241388-9-
004 in the name of defendant JOSEPH SUTERA's wife.
J. 
 IDS Life Insurance Company life insurance policy number 9090-6909552-1-004 
. in the name of defendant JOSEPH SUTERA and his wife. 
• • 
IDS Life Insurance Company life insurance policy number 9090-7233747-2-004.. • . 
in the name of defendant JOSEPH SUTERA's wife 
:: • 
L 
Wachovia Bank account number 1010110078678 in the name attendant 
• 
• 
• JOSEPH SUTERA. 
M. 
Wachovia Bank account number 20000211287710 in the name of MO Inc., d/b/a •. . 
The Medicine Shoppe pharmacy. • 
• 
Wachovia Bank account number 1010055623793 in the name of defendant 
EFTA00194476

••••••••-• 
—lost-PH STIEMays wife 
.. . 
• . . 
• 
ante Presidential Rolex Watch with diamonds, acquired on or about January 12,' 
• 2003 for approximately $15,875.00, from Rained Jewelers. 
5.. • Private health insurinde companies pay on phaimaceatiCal claims based upon 
. . 
information received. from pharmacies about prescriptions that they have been asked to 
. 
. 
fill by physicians. In most cases, payment is made directly to the subscribing pharmacy. 
These claims, and payments made on these claims, are most often transmitted by 
• interstate wire or by private or public mail. The claim information suburitted by the 
phannaoY includes, among other things, the name of the patient, the name of the 
preicribing physician, and the type and quantity of medication prescribed. Insurance 
companies rely on the information in the claim to be true and accurate, and do not 
. regularly conduct independent audits of claims prior to paythent. Materially falai and 
fraudulent claimaor payment include claims for drugs that were not prescribed, were not.
delivered to patients named on the claims. A substantial number.of the claims were for 
Ketamine, a schedule DI controlled substance With a reimbursement to the pharmacy of 
approximately $1,000 per claini. 
6. Evidence of the scheme includes the pharmacy's database, taken nal search on August •• 
• 
26, 2004, which shows more than $17 million in claims submitted to various insurance ,. 
companies, backed up by the insurance companies' records.. 
• 
7. Proof of the falsity of a substantial number of the claims includes the statements of 
• 
numerous doctors who were interviewed as part of the investigation, a substantial number 
,. . 
of whom stated that they never prescribed Ketamine or most of the other drugs for whiCh 
claims were submitted under their names. Patient records from these doctors corroborate 
EFTA00194477

• 
their statements as, in many instances, the riamei of thilitienfa for 
blights were • 
associated with dick names were not even patient's of that &dor'. 
8. At least two physicians have admitted to conspiring with Sutera to falsely substantiate 
prescriptioni for the prescription drug claims subniitted through the Medicine ShoPpe•to• 
private insurance companies. for his compounded cream containing Ketamine or . • 
BUpiyacaine. 
9. In Wilton, numerous patients were interviewed. Most of them stated that they did not 
kpow their names were being used for the clainis and that they either never received the 
:medications, including the Ketamine cream, for which claims were submitted in their 
names, or never requested or received prescriptions for drugs which were sent to theni. 
10. Further, at the.time of the se-arch; Sutera admitted to one of the agents that he had been 
submitting false claims. • 
• 
11. All known insurance payments for false and fraudulent prescription drug claims..from the. 
. . 
private insurance companies were deposited into the accounts of The Medicine Shoppe • 
and commingled with insurance payments for legitimate claims. 
12. An analysis was conducted of the bank records for successive operating business bank 
accounts maintained by The Medicine Shoppe, including the last known account, 
Wachovia account number 200002-1128710. This analysis revealed that from july.2901 
through May 2005 approximately $9,941,761.00-was deposited into these accounts from. 
private insurance companies. Inspection of copies of the deposited checks indicated that . . 
these funds represented payments for claims filed by The Medicine Shoppe,:. 
. .13. An analysis was conducted of the bank records for the personal bank accounts 
maintained by Joseph Sutera, including Wachovia account number 101011007.8678.. 
EFTA00194478

This analysis revealed that from July 2061 through May 2005.aPproximately 
$4,306,129.00 was deposited into these accounts. 
14. Affiant interviewed Martin Fields, who owned The Medicine Shoppe pharmacy from 
• 
•' . • 
• beceniber.1999 through approximatelylune 2001. when he sold it to Joseph Sutera:
Martin Fields advisedlhat during the apprOxiMately18 mcnithethat he owned The 
Medicine Shoppe pharmacy it lost between $70,000 and $80,000. Martin Fields sold The 
Medicine Shoppe pharmacy to joseph,Sutera in exchange for Sutera taking over. Field? 
franchise payments to. Medicine Shoppe International. At the time of this transaction 
Fields owed Medicine Shoppe.Inteinational approximately $170,000. 
15. My investigation has revealed that Joseph Sutera filed a voluntary petifion•for bankruptcy • 
. 
. 
. 
bearing Docket # 97g2416 on 5/16/97. In the petition Joseph Sitters listed his addrest as • 
1420 Ocean Way, Bldg 8B, Jupiter, Florida a property belonging to his sister, Sullen • 
Sutera. At the time of filing, Joseph Sutera claimed $125 in assets and $1,594,726 in 
liabilities and listed himself as unemployed with $1,750 in monthly income in the form • 
of friends and fatnili, paying his eiperisea. Sutera received a discharge as of 10/8/97.. • 
16. I also interviewed individuals who advised me that Sutera told them he had no assets at • 
the time he purchased the pharmacy, and that Sutera had to borrow approximately 
$80,000 in order to purchase the pharmacy in 2001. In a personal financial statement' 
submitted in 2003 as part of a loan application, Supra indicated that he received salary 
payments in excess of $500,000 per year from• the Medicine Shoppe and only $800 per 
month from investments. 
ASSETS TO BE RBSTRANED 
17. The contents of the property located at 912• Mill Creek Drive, Palm Beach Gardens, 
EFTA00194479

• 
. Florikthe perionaliesidenee of cosephSutera; including but riot lifilitedjoThe. PS 
".• 
. 
. 
" 
. 
P 
• 
•••• 
• 
• 
• 
• piano, stereo and video equip-inent; finniture, fixtures, artwork and deconitot items. An-- ' - • 
analysis of the bank records of Joseph Sutera and MRF Inc. has revealed that front shortly 
before the date of the closing on the purchasOof the residence through August 27;4064.: .• • 
. 
. 
. 
. • 
• 
. 
. 
. 
Joseph Sutera paid Dominque Marriano Interiors a total of $292,093.11 ibi.interior design, . . . 
funiiture and other i'mprovements. Records provided by Carl's Patio and Furniture 
Conipanies indicate that between August 2003 and April 2005 $31,758.65 Worth of 
• 
fumiture was purchased by Joseph Sutera and delivered to 912 Mill Creek Drive, Palm 
Beach Gardens, Florida. Records provided by Showplace Interiors, a furniture and interior 
design business located in Palm Beach Gardens, Florida indicates that between November 
• 2002 and December 2003 Joseph Sutera purchased $50,915.86 worth of furniture and 
decorator improvements for 912 Mill Creek Drive, Palm Beach Gardens, Florida Records 
• 
provided by Skeffington Furniture Company of Jupiter, Florida indicates that on.or 'about 
July 14, 2003 $14,67,1.92 worth of furniture was purchased by JosephSuteraattd delivered 
to 912 Mill Creek Drive, Palm Beach Gardens, Florida, Records provided by Mark 
• 
Gregory Piano Gallery of Lake Part, Florida indicate that on or about September 13, 2003 
Joseph Sutera purchased a grand piano for $55,120 that was delivered to 912'MillCreek. • 
Drive, Palm Beach Gardens, Florida: Records and testimony provided bySQund,ildvice 
Dania Beach, Florida based stereo and televisicin retail store indicate that behveen•June • 
2001 and June 2005 approximately $492,892.64 worth of consumer audio/visual •• • 
• 
equipment including numerous flat panel LCD television sets were purchased by Joseph 
: 
Sutera. Sound Advice records and testimony from the primary sales. representative:for. 
these purchases indicate that the items were delivered to and/or installed at 912 Mill Creek 
. 
EFTA00194480

BeaCh Gardens, Florida:.
18, Calitentiot Wachovia Bank Account #1010110078678 in the name of Joseph. Sutera. • 
Evidencesecuied during my investigation indicates that:as of at least May 2065. Joseph 
Sitters maintained this personal bank account at Wachoyia Bank into which payroll Checks.:.
from The Medicine Shcippe pharmacy were automatically deposited. The laSt known 
balance in this account as of January 17, 2006 was $252.68.. 
19. Contents of Wachovia Bank Account #2000021128110 in the name of Mlinic. DBA 
Medicine Shoppe Pharmacy. Evidence secured during my investigation indiCates that as of 
it least May 2005 Joseph Sutera maintained this business bank account in the mine of 
MRF Inc. DBA Medicine Shoppe pharrnacy at Wachovia Bank into which both fraudulent
and legitimate receipts were being deposited. Deposits in May 20005 totaled $60,753.48. • 
- 
The last known balance in this account as of January 17, 2006 was S6.38. 
• 20. Contents of Wachovia Bank Account #1010055623793 in the name of Evens° B. Sutera. 
Evidence secured dining my investigation indicates that as of at least May 2005 Evelise : • 
Sutera, wife of Joseph Sutera maintained this personal bank account at Wachovia Bank 
. into which payroll checks. from The Medicine Shoppe pharmacy were automatically 
deposited. The last known balance in this account as of January 18, 2006 was $1420.15. 
• 
• . • • 
21. Contents of IDS Life Insurance CompanySEP IRA Account #93-107241382,2-004:.i0*-.:: 
mime of Joseph J. Suteri. On or about October 27, 2003 Joseph Sutera arranged for MRF... 
Inc. DBA Medicine Shoppe Pharmacy to provide employer funded SEP IRA accounts for 
employees of MRF Inc. including himself. These account were, established with IDS Life: • 
•• 
• 
• 
Insurance Company, an affiliate of American Express Corporation. Funding for these SEP • 
IRAs came exclusively from the operating account of MRF Inc. The latest reported 
EFTA00194481

balance in the SE? IRA lecountin the name of Joseph Wein as
 October 27;.2005, 
$47,041.20. 
22. Contents of MS Life Insurance Company SEP' IRA Account #93:107241388-9-004 in the 
name of Evelise B. Sutera. On or about October 27, 2003 JosephSuter! arranged for MRF - • 
Inc. DBA Medicine Shoppe Phalli:meito provide employer funded SEP IRA accounts for
employees•of MREInc. including his wife, Evelise Sutera.. These accounts were. 
established With IDS Life Insurance Company, an affiliatenf American Express 
Corporation. Funding for these SEP IRAS came exclusively front the operating account of
MRF Inc. .My investigation has revealed that Evelise Sutera did not work at The Medicine 
Shoppe pharmacy and was not a bona fide employee. The latest reported balance in the 
SEP IRA account in the tiame of Evelise Sutera as of October 27, 2005 was $15,922.03 
. 23. IDS Lifeinsurance Company Life Insurance Policy #9090-6909552-1-004 in the name of 
Evelise B. and Joseph J. Sutera. On or about February 12, 2002 Joseph and Evelise Sutera 
secured a joint $250,000 variable universal life insurance policy from IDS Life Insurance 
• 
Company, an affiliate of American Express Corporation. This policy required quarterly • ' 
premium payments of $5,255.28. Between Februaty 2002 and March ZOOS a total of 
$68,318.64 in premium payments were made by JoSeph Sutera from either the operating 
account of MRF Inc. or from his personal bank account at Bank of AmeriCa. The reported 
cash surrender value of this policy as of June 21, 2005 was $54,516.34. . • 
24. MS Life Insurance Company Life Insurance Policy #9090-7233747727004 in the.name of 
. Evelise B. Sutera. On or about February 11, 2002 Jbseph Sutera secured a. $300,000 20-
year term life insurance policy on his wife, EVeliseSutera for which Joseph Sutera was the 
primary beneficiary. On or about 10/7/03 this policy was converted to a poo,000 variable 
EFTA00194482

. 
6 ..
• 
„universal Ilte.policy.. A new policy number of 90907233747 was assignedafthiittime. 
 
• 
130;veen FebrUary 2002 .and April 2005"a total of $21,852.62 in proniiiim payments Were 
' 
made on this policy. With the exception of one payment pf $312 niade from an account in • 
the name. of Eveliie Suteta in March 2003; Joseph Sutera made all paymentS•front either..the 
operating account of MRF Inc. or from his personal bank account at Bank of America. The
reported cash surrender value of this policy as of June 21, 2005 was $18,583.16. 
•
 
I declare under penalty of perjury that the information contained herein is true and Correct. 
FURTHER YOUR AFFJANT SAYETH NAUGHT 
. 
• 
99 CC-77-TH 
JAY SCHEURER, SPECIAL AGENT, 
U.S. FOOD AND DRUG ADMINISTRATION 
• 
. 
. 
Sworn to and subscribed before me 
• 
this j_ _day of February, 2006 
EFTA00194483

EFTA00194484

AFFIDAVIT 
MS CAI< riek-oka 
(r i) 
litt Cali 1/99' 7 
- -and-Explosives-(-MT) and have been so em Toyed since July of-2 
. Rye. to 1, 
ClArr-t441tiaini 41"eat -iv (A. Victteg - crinnit 
0/ (An 
Wed -  edit 
ATFrgentl-served4s-aPoliee-Officer-for--approxima 
gLacir'DV°' 
ofNi. 
cit
y 
Of
 e ray Stack-Eton ar PTolice-Depariniest. I have. received specialized training 
ciekt4 O>I4010froil.
regarding the investigation ancl-enfereeFfienyf federal fire 
violations and have 
tALa
dealar
Enisvh4revt
) 'd?fi ti‘,,mits to
 
1-11 
investigated subjects who are unlawfully 
(/4 ;irk INV•Inat S 
-.4-nnvistecl-felensr and-who-unlawfally-possess-ortransfercertahrtypes-of-firearms, 
I 
I, SeHriv1:-Berger, being duly s om, depose and state: 
Fee/Lk-act 61A-re-otk. 
Micch 
1. I am a Special Agent (S/A) with the Bureau ntalsolielr T-ebacco7 f 
TMS /`ive 
a,)
ann 
-silencers;mitehim. guns, 
biarreled-rifles-orshotgims7terructive-devicesvor-±tany_ 
-.ether wearnriSr initiolafiOn.of the National FirearmsAtatAD:
2. The facts contained in this affidavit are based on my own personal knowledge as 
well as information provided to me by other law enforcement officers and witnesses. 
Because this affidavit is made for the limited purpose of securing the issuance of a search 
1;24,1141:1442;24eg.sectAid7-aff 
search 
warrant pursuant to 26 U.S.C. § 7302 to seize a 
Ellocr Taa NuirAiLar Nqotkre.) 
 
--WDBLIF26114A451-1-541 it does not contain all the details of this investigation. 
3. On August 3 2005, your affiant was contacted for assistance by West Palm 
Beach Police Department (WPBPD) Vice Agent Rich Birch regarding JOSEPH E. 
PELUSO, III, (hereinafter "PELUSO"), a W/M, DOB: 09-02-1968, Florida DL# P420-
485-68-322-0, who was alleged to be in possession of machine guns. Agent Birch had 
received information from a WPBPD confidential informant (hereinafter "CI") who had 
previously provided reliable information to Agent Birch that PELUSO had offered to sell 
1 
EFTA00194485

the CI machine 
s, firearm silencers, and grenades in the past and still had some 
available for purcha e. Your affiant documented the CI as an ATF informant. The CI 
has a pending c 
case and hopes that if he/she assists the government it may 
ultimately lead to a red lion of the CI's sentence. 
4. Your affiant ra a criminal check on PELUSO and learned that PELUSO did 
not have any felony or dom tic violence convictions and was therefore not prohibited 
under the law from possessin: firea►ms or ammunition. A criminal history check 
revealed that PELUSO was arr ted in 2002 by the Riviera Beach Police Department for 
aggravated assault with a deadl weapon without intent to kill, but court records show 
that the case was dropped. 
5. The CI identified PELU 
from a photograph. The CI also stated that 
PELUSO has tattoos from the bottom of his neck to his wrists and has one on his chest 
that says "only God can judge me." Th- CI also told your affiant that PELUSO drove a 
black colored Hummer with a Florida 
nalized tag of SPEEEED. A Department of 
Motor Vehicles records check revealed tha PELUSO resided at 244 East 25th Street, 
Riviera Beach, FL 33404 and had a black H 
er with the Florida tag SPEEEED 
registered to him at that address. Your affiant so learned that PELUSO has a current 
concealed weapons permit in the State of Florida. 
6. On November 21, 2005, the CI provide 
our affiant with PELUSO's home 
telephone number of (561) 882-1392 and a cell phone umber of (561) 779-5644. 
7. On the morning of November 22, 2005, the C 
ade a series of controlled 
calls to PELUSO and left messages for PELUSO to return i call. At approximately 
12:16 pm, your affiant, S/A Vincent Holmes, and the CL went • the Steelworks, 
2 
EFTA00194486

Piercin: and Tattoo parlor, located at 4246 Okeechobee Boulevard, in West Palm Beach, 
Florida, b ause the CI said that PELUSO frequented that tattoo parlor. Your affiant 
observed PE ►USO driving his black Hummer with the tag SPEBEED in the parking lot 
of the tattoo p or. 
8. Several 
nutes later, at approximately 12:19 pm, the CI's cell phone rang and 
the telephone numb • r on the Cl's cell phone's caller identification was (561) 682-9111, 
which was the teleph e number for the tattoo parlor. The CI repeatedly received calls 
on his cell phone from e tattoo parlor between 12:19pm and 1:01pm. During one of the 
calls your affiant instruct== the CI to answer the phone, and it was PELUSO. At your 
affiant's direction, the CI to • PELUSO that the CI would have to call him right back. 
This call was not recorded. 
9. At approximately 1:0 pm, CI made a recorded call to (561) 682-9111. 
During the call, the CI spoke to P 
USO, who said that he had been trying to call the CI 
because he had eight triple x vests ( 
h is street terminology for bullet proof vests). 
PELUSO went on to say that he had alt.: dy sold the vests, but that he had a couple of 
"toys" (which is street terminology for 
), and wanted the CI to stop by the tattoo 
parlor. After that call, ATF agents went to e tattoo parlor and observed PELUSO's 
Hummer parked outside. 
10. In preparation for the CI's meeting 'th PELUSO at the tattoo parlor, your 
affiant searched the CI and the CI's vehicle, and n• contraband was found. Your affiant 
then provided the CI with a recording device which 
CI consented to wear. At 
approximately 1:31pm, CI went to the tattoo parlor at 
Okeechobee Blvd., West 
Palm Beach, Florida. ATF agents conducted a surveillan7 of the CI and the tattoo 
3 
EFTA00194487

parlor. A 
proximately 1:41 pm, the CI entered the tattoo parlor and met with 
PELUSO. S rtly thereafter, both the CI and PELUSO walked outside to PELUSO's 
Hummer. 
11. The 
who is a previously convicted felon, and PELUSO discussed the 
various guns that P t USO was selling. PELUSO said that he had an HK pistol with a 
threaded barrel for a s 
ressor which he was getting ready to take to Stuart. When 
asked about the price of e pistol, PELUSO said that he had $1,500 into it. According to 
PELUSO, the HK pistol w s brand new. PELUSO then opened the fanny pack that he 
was wearing and showed the 
his HK pistols. PELUSO told the CI that one was a HK 
Socom and the other was an 
compact, and that SWAT teams used them. 
12. During the Novembe 22'd meeting, PELUSO also said that he had a .357 
magnum revolver. CI told PELUS o that the CI wanted to buy the guns but didn't have 
the money with him/her. PELUSO th 
opened the door to his Hummer and showed the 
CI the HK pistol and the .357 revolver. 
en the CI asked PELUSO whether it was 
possible to put a silencer on the HK pistol, • ELUSO said that's what why the gun had a 
threaded barrel. When the CI asked PELUS • whether he had a silencer for the pistol, 
PELUSO said that he could get them, and that o e would cost about $1,500. PELUSO 
also told the CI about the .357 magnum revolver w .ch PELUSO was selling for $400. 
The CI asked whether PELUSO had any "pineapples (which is street terminology for 
grenades); however, PELUSO said that he couldn't get hold of his supplier. 
13. The CI arranged to meet with PELUSO the ne day to buy the guns. The CI 
told PELUSO that a lot of people had been running their mo 
and he/she was planning 
on taking care of them. The CI also explained to PELUSO that he/she had a criminal 
4 
EFTA00194488

record. 
e CI said that he/she had gone into a gun store to buy a gun. The employee 
had run the CI's record and wouldn't sell the gun to the CI. PELUSO replied, "Oh 
really." PEL SO and the CI agreed to meet at 4:00 p.m. the following day, to do the 
deal. 
14. Atte the meeting, the CI left the tattoo parlor and was followed by ATF 
agents to a location here the CI and the CI's vehicle were searched. No contraband was 
found. Your affiant a o placed the audio and video recordings of the meeting in 
evidence at ATF. It sho ld also be noted that after CI departed the tattoo parlor, ATF 
agents remained in the area f the tattoo parlor and observed PELUSO and another male 
next to PELUSO's Hummer, 
d PELUSO was showing the male something inside the 
Hummer. 
15. On November 23, 2005, at approximately 2:52 pm, surveillance was 
established at the tattoo parlor, locat 
at 4246 Okeechobee Boulevard, in West Palm 
Beach, Florida. The CI called PELUSO' cell phone and left a series of messages for 
PELUSO to call the CI. At approximately 17 pm, PELUSO called the CI from (561) 
616-3434. PELUSO told the CI that he was a 
e Planet Smoothie next to Kmart. It 
should be noted that Planet Smoothie is located a 4366 Okeechobee Boulevard, in West 
Palm Beach, Florida and has a listed telephone numb r of (561) 616-3434, the same 
number from which PELUSO bad called the CL The C told PELUSO that the CI would 
take the "two things" (meaning the two guns) from yester 
and that the CI would meet 
PELUSO at the tattoo parlor. PELUSO changed the location 
the meeting and told the 
CI not to meet him at the tattoo parlor because it was "hot" (whi 
is street terminology 
EFTA00194489

for polic presence or surveillance). Instead, they agreed to meet at Planet Smoothie, 
which is loc tcd in the vicinity of the tattoo parlor. 
16. Yd r affiant provided the CI with recording devices and $2,000 in official 
ATF funds. The I then consented to a search of the CI's person and vehicle with 
negative results. At 'proximately 4:41pm, CI, who was followed by ATF agents, drove 
to Planet Smoothie for c meeting with PELUSO. 
17. At approxim. ely 4:57 pm, the CI arrived in the parking lot of the Planet 
Smoothie and could not fin. PELUSO. After a series of phone calls, the CI met 
PELUSO a short time later in nearby parking lot. PELUSO was driving a red 
convertible 2-door Saab beari • Florida tag V27NLQ. A records check revealed that this 
vehicle is registered to the defen ant's girlfriend, Christine Ventimiglia, who resides at 
the same address as PELUSO. PELUSO got out of the Saab and greeted the CI. 
PELUSO was wearing a fanny pack a ound his waist. 
18. PELUSO told the CI that h didn't want to meet at the tattoo parlor because 
Sheriff's deputies had been watching the -hop all morning, and PELUSO had seen them 
filming the tattoo shop with video cameras. The CI told PELUSO that somebody was 
probably dealing crack out of the tattoo parlo 
The CI said that because he/she was a 
convicted felon, the CI didn't like being over th' e or bringing "shit" over there. 
PELUSO agreed and told the CI not to go to the to oo parlor anymore. 
19. PELUSO then opened the trunk of the Sa • b and showed the CI a Remington 
12 gauge shotgun, a .357 Dan Wesson revolver, and a 5 caliber HK semi-automatic 
pistol. These were the same handguns that PELUSO had hown the CI the day before. 
The CI agreed to buy all three guns from PELUSO for $2,3 c 0. Because the CI only had 
6 
EFTA00194490

$2,000, PE USO agreed that the CI could pay him the remaining $300 at a later date. 
The CI remov 
the three firearms from the trunk of PELUSO's Saab and placed them in 
the trunk of the C = Cat 
20. PELUSO 'sked the CI if he was looking for anything else, and the CI said 
that he/she wanted som 
g fully automatic. PELUSO said that he had just sold two of 
them. PELUSO stated 
t he can get the CI an Ingram 9 fully automatic machine gun. 
PELUSO said that he had a Ily automatic M16 (rifle) suppressed. PELUSO further 
stated that the M16 is not the 
to own because "if you don't have the tax stamp, you 
go to jail for 10 years automati " It should be noted that a check with the ATF National 
Firearm and Transfer Record 
) Branch determined that PELUSO did have a 
lawfully registered short barreled 
-15 rifle, an Impulsiia .45 caliber silencer, and an 
M42000 5.56 caliber silencer registe 
to his company, Strategic Solutions Unlimited, 
Inc., at 244 East 25°' Street, Riviera B 
h. However, NFTR records did not show that 
PELUSO had a machine gun lawfully 
tered to him. Neither PELUSO, Strategic 
Solutions Unlimited Inc., or anyone else t 244 Bast 25th Street, Riviera Beach, Florida 
has any other registered NFA firearms or 
tractive devices. Furthermore, the ATF 
Licensing Center and the NFTR advised yo affiant that neither PELUSO nor Strategic 
Solutions Unlimited Inc. held a federal fireann icense (EFL) or was licensed to deal in 
firearms or NFA weapons, such as, short-barreleafifles, silencers or machineguns. 
21. During the November 23rd transaction, PELUSO asked the CI if someone 
was hunting the CI down. PELUSO offered the a a 4afe house" in Abacoa, which is 
located in Jupiter, Florida. The CI declined PELUSO's tiler. The CI said that he/she 
had tried to rent a house in the Cl's name, but the landlord wouldn't rent it to the CI 
7 
EFTA00194491

because 
CI was a convicted felon. The CI further stated that convicted felons can't 
buy guns or o anything. PELUSO agreed and said, "they try to suppress you and all 
they want is 
ney, the state, supervision, probation, all kinds of shit." PELUSO told 
the CI that if h 
he needed a place to hang out for a week or so, if it got hot around here, 
that PELUSO had buddy in North Carolina. The CI said that he/she was worried about 
getting pulled over 'th the firearms because "they'll see my record and see this shit, and 
I'm done." 
22. After the tra action ended, the a and PELUSO left in their respective 
vehicles and were both fo lowed by ATF agents. Your affiant met the CI at a 
predetermined location and searched the CI and the CI's vehicle. The CI no longer 
possessed the $2,000 in official finds. Your affiant photographed the firearms which the 
CI had purchased from PELUSO, removed the Remington shotgun, the Dan Wesson 
Arms .357 revolver, and the UK .45 semi-automatic.pistol from the Cl's trunk, and 
placed them into evidence at ATE The video and audio recordings of the transaction 
were also placed in evidence. 
23. On December 2, 2005, at approximately 1:18 pm, your affiant instructed the 
Cl.to call PELUSO. The CI called PELUSO's home, and PELUSO answered the phone. 
PELUSO agreed to meet with CI later that day. The CI said that he/she had the $300 
which was owed to PELUSO for the Remtnington shotgup•and asked PELUSO if he had 
the "Ingram" (referring to the Ingram machine gun). PELUSO said that he didn't have it 
in his possession.but he could get it. The CI asked PELUSO how much he wanted for it, 
and PELUSO said he had to get $1500 for it and that was a good deal. PELUSO said 
they normally go for $2500. The CI asked PELUSO if it (th Ingram machine gun) was 
8 
EFTA00194492

"full" (referring 
fully automatic), and PELUSO confirmed that it was. PELUSO told 
the CI that he was t his house, but that he would be in and out, and PELUSO gave the CI 
his cell phone numb for the CI to call him. 
24. Shortly a er the call to PELUSO around 1:50 pm, your affiant drove by 
PELUSO's residence a 244 East 25t° Street, Riviera Beach, Florida. According to the 
Palm Beach County Prop • rty Appraiser's Office, PELUSO is the listed owner of the 
residence. There was a fo sale sign posted at the residence with the number (561) 882-
1392, which is the same n 
ber the CI had used to call and speak to PELUSO at home. 
Your affiant observed a whi 
Ventimiglia from her driver' 
Ventimiglia opening the door 
female and recognized the person to be Christine 
license photograph. Later, your affiant observed 
a tall fence that is west of PELUSO's residence. Your 
affiant observed PELUSO's bla 
25. Later on December 2 
telephone calls to PELUSO. At a 
Hummer parked in the fenced area. 
005, the CI made a series of consensually recorded 
roximately 4:54 pm, the CI called PELUSO's cell 
phone and spoke to PELUSO. PEL SO told the CI that they should meet in about an 
hour in the vicinity of the Bonefish 
k restaurant located at 2024 North Military Trail, 
in West Palm Beach, Florida. 
26. On December 2, 2005, at app 
imately 6:26 pm, surveillance was 
established in the area of the Bonefish Creek 
taurant. Your affiant searched the CI and 
the CI's vehicle with negative results. S/A Ber er then provided the CI with $2,000 in 
official ATF funds. The CI was also provided wi recording devices. 
27. On December 2, 2005, at approximatel 
.56 pm, PELUSO met with the a 
in the vicinity of Bonefish Creek. PELUSO arrived at i e location in his girlfriend's red 
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EFTA00194493