MIAMI, FL – A South Florida grand jury has charged five additional defendants, including Stephen Manuel Costa, 37, in a sophisticated scheme to purchase and distribute millions of dollars in diverted pharmaceutical drugs.
According to the Second Superseding Indictment returned on June 10, 2021, Costa, along with co-conspirators Leah Solomon, 51, Rafael Angel Romero, 50, Ruben Reynaldo Rodriguez Diaz, 43, and David Ramirez Garcia, Sr., 58, are charged with money laundering, mail fraud, and violations of the Federal Food, Drug, and Cosmetics Act.
It is alleged that the defendants purchased large quantities of diverted pharmaceutical drugs on the unregulated, underground market at a cost well below normal wholesale prices. They then used seemingly legitimate wholesale companies and fraudulent paperwork to introduce the diverted drugs back into the legitimate marketplace by selling them to unwitting pharmacies and consumers at big mark-ups.
The operation was so large that co-conspirators purchased two wholesale pharmaceutical companies and chartered a plane to deliver the drugs, according to the indictment. The Second Superseding Indictment charges that the defendants’ scheme resulted in millions of dollars in profits.
Costa, Romero, and Rodriguez Diaz were arrested this morning and will have their initial appearance this afternoon at 1:30 p.m. before U.S. Magistrate Judge Lauren Louis, who sits in Miami. Garcia Sr. and Solomon will have their initial appearances on later dates.
The prosecution was part of Operation Southern Hospitality, an ongoing effort by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state, and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high-level members of drug trafficking and money laundering enterprises.
Assistant U.S. Attorneys Frank Tamen and Walter M. Norkin of the Southern District of Florida are prosecuting this case. Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture.
An indictment contains mere allegations, and the defendants are presumed innocent unless and until proven guilty in a court of law.
Related court documents and information, including charges against other co-conspirators, may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov under case number 19-cr-20674.
Defendant: Stephen Manuel Costa
Charges: Money laundering, mail fraud, and violations of the Federal Food, Drug, and Cosmetics Act
City and State: Miami, Florida
Arrest Date: June 10, 2021
Status: Incarcerated awaiting trial
Amount: Millions of dollars in profits
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Key Facts
- State: Florida
- Category: Drug Trafficking|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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