District of Massachusetts

BOSTON – A Melrose man has been indicted in connection with his role in an unemployment insurance fraud scheme. 

Alan Neal Scott, 68, was indicted on four counts of mail fraud, one count of wire fraud and five counts of aggravated identity theft. Scott was arrested and charged by criminal complaint in July 2020.

According to the charging documents, over the course of the last six years, Scott submitted numerous fraudulent unemployment insurance claims with the Massachusetts Department of Unemployment Assistance (DUA). Scott submitted these claims using his own identity as well as the identities of various individuals, including some who were not eligible for unemployment benefits as they were incarcerated at the time of the claims and could not have been employed as reported. Moreover, the fraudulent claims all reported prior employment at a non-operational Massachusetts-based business also associated with Scott. As a result of these fraudulent claims, it is alleged that the DUA sent unemployment benefits funds to several addresses connected to Scott and that the funds were deposited into accounts he controlled. The indictment also alleges that Scott submitted fraudulent pandemic unemployment insurance claims in the names of others.

The charges of mail and wire fraud provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The aggravated identity theft charges provide for a mandatory sentence of two years in prison to be served consecutive to any other sentence imposed, up to one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigation, New York Regional Office; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Joseph W. Cronin, Inspector in Charge of the United States Postal Inspection Service; and Tonya Perkins, Acting Special Agent in Charge of the Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Division made the announcement today. The Commonwealth of Massachusetts, Department of Unemployment Assistance, Program Integrity Unit also provided assistance with the investigation. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Securities, Financial & Cyber Fraud Unit is prosecuting the case. 

The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – A Charlestown man was arrested yesterday and charged in connection with trafficking in firearms obtained from a straw purchaser in New Hampshire.

Charles Baker, 44, was indicted on one count of dealing in firearms without a license and two counts of being a felon in possession of a firearm. Baker was arrested yesterday morning and made an initial appearance before Magistrate Judge Donald L. Cabell. A detention hearing is scheduled for Aug. 25, 2020.

As alleged in the indictment, Baker dealt in firearms until May 2019. Due to a prior conviction, Baker is prohibited from possessing firearms, and does not possess a federal license to sell firearms.

The charge of dealing in firearms without a license provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of being a felon in possession of a firearm provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling and Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, New England Field Division made the announcement. Assistant U.S. Attorney Philip A. Mallard of Lelling’s Organized Crime and Gang Unit is prosecuting the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – A California insurance and private equity executive has agreed to plead guilty to charges in connection with using fraud and bribery to cheat on the ACT exam on behalf of his daughter.

Mark Hauser, 59, of Los Angeles, Calif., will plead guilty to an Information charging him with one count of conspiracy to commit mail fraud and honest services mail fraud. A plea hearing has not yet been scheduled by the Court.

According to the terms of Hauser’s plea agreement, the government will recommend a sentence of six months in prison, one year of supervised release, a fine of $40,000 and restitution. Hauser is the 29th parent to plead guilty and  the 42nd person overall to plead guilty in this case. 

As set forth in the charging document, Hauser agreed with William “Rick” Singer to pay an amount, ultimately totaling $40,000, to facilitate cheating on his daughter’s ACT exam. As part of the scheme, co-conspirator Mark Riddell traveled to Houston, Texas, where Hauser’s daughter took the exam, and purported to proctor the test. Instead, Riddell corrected the answers on the exam after she completed it. Two days later, Singer paid an intermediary, Martin Fox, $25,000, with the understanding that Fox would pass part of the payment on to Niki Williams, the test site administrator who allowed the cheating to occur. Singer also paid Riddell $10,000 for his role in the scheme. 

Singer, Riddell and Fox have previously pleaded guilty and are cooperating with the government’s investigation. Williams has agreed to plead guilty. The details contained in the court documents are allegations and the remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.

The charge of conspiracy to commit mail fraud and honest services mail fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Joleen Simpson, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Mark Deckett, Resident Agent in Charge of the Department of Education, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright, Kristen A. Kearney, Stephen E. Frank and Karin M. Bell of Lelling’s Criminal Division are prosecuting the case.

BOSTON – Lori Loughlin and Mossimo Giannulli were sentenced to two months and five months in prison, respectively, in connection with securing the fraudulent admission of their two daughters to the University of Southern California (USC) as purported athletic recruits.

Loughlin, 56, of Los Angeles, Calif., was sentenced by U.S. District Court Judge Nathaniel M. Gorton to two months in prison, two years of supervised release during which time she must complete 100 hours of community service and ordered to pay a fine of $150,000. Giannulli, 57, was sentenced by Judge Gorton to five months in prison, two years of supervised release during which time he must complete 250 hours of community service and ordered to pay a fine of $250,000.

In May 2020, Loughlin entered a plea of guilty to one count of conspiracy to commit wire and mail fraud and Giannulli entered a plea of guilty to one count of conspiracy to commit wire and mail fraud and honest services wire and mail fraud.

In 2016, Loughlin and Giannulli agreed to have William “Rick” Singer facilitate their older daughter’s admission to USC as a purported crew recruit. In an August 2016 email, Singer told Loughlin and Giannulli that he would “create a coxswain profile.” Giannulli emailed Singer a picture of his older daughter purporting to row on an ergometer for inclusion in the falsified profile.

Giannulli further agreed to make purported charitable contributions totaling $250,000 as a quid pro quo to facilitate his daughter’s fraudulent admission to USC. Giannulli caused $50,000 to be paid to an account belong to the USC athletics administrator and paid $200,000 to Singer’s sham charity, Key Worldwide Foundation (KWF). Giannulli forwarded the invoice from KWF to his financial advisor writing: “Good news my daughter [ ] is in [U]SC . . . bad [news] is I had to work the system.” 

In 2017, Loughlin and Giannulli agreed with Singer to facilitate their younger daughter’s admission to USC as a purported crew recruit even though she too had never participated in the sport. In July 2017, Singer emailed Giannulli and Loughlin telling them he would “build an athletic profile for USC” and noted that he would falsely present her as a coxswain. Shortly thereafter, Giannulli, copying Loughlin, emailed Singer a photograph of their younger daughter on an ergometer. 

In November 2017, Singer emailed Loughlin and Giannulli a “likely letter” stating that their younger daughter had been provisionally admitted to USC as an athletic recruit. Loughlin, copying Giannulli, responded: “This is wonderful news!” 

Thereafter, Giannulli caused $50,000 to be paid to a USC athletic account controlled by the USC athletic administrator and $200,000 to be paid to KWF. Giannulli forwarded the KWF invoice to his financial advisor, noting that it was “the last college ‘donation’ for” his daughter, and asking, “Can’t I write this off?”

Singer has pleaded guilty and is cooperating with the government’s investigation.

Loughlin and Giannulli are the 21st and 22nd parents to be sentenced in the college admissions case.

Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.

United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Joleen Simpson, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Mark Deckett, Resident Agent in Charge of the Department of Education, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright, Kristen A. Kearney, Stephen E. Frank and Karin M. Bell of Lelling’s Criminal Division are prosecuting the case.

The details contained in the charging documents are allegations. The remaining defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – A Texas man was indicted yesterday by a federal grand jury in connection with possession of 30 kilograms of cocaine.

Javier Robledo Perez, 36, of Houston, Texas, was indicted on one count of possession with intent to distribute five kilograms or more of cocaine. Perez was previously charged by criminal complaint and arrested on May 24, 2020.

As alleged in charging documents, on May 24, 2020, following a traffic stop in Charlton, law enforcement officers seized 30 brick-shaped objects suspected to be kilograms of cocaine from the cab of the semi-truck Perez was driving. Agents conducted field tests on two of the brick-shaped objects, both of which tested positive for the presence of cocaine. 

The charge of possession with intent to distribute of five kilograms or more of cocaine carries a minimum mandatory sentence of 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement today. Lelling’s Narcotics and Money Laundering Unit is prosecuting the case. 

The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.

The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

“After extensive deliberations, including consideration of the views of the many victims in this case, the Justice Department has decided to ask the Supreme Court to review the First Circuit Court of Appeals’ decision to reverse the death penalty, in an effort to preserve the jury’s verdict sentencing Dzhokhar Tsarnaev to death. Our hope is that this will result in reinstatement of the original sentence and avoid a retrial of the death penalty phase.

First, we respectfully disagree with the merits of the appellate court’s decision. Second, Dzhokhar Tsarnaev is an ideologically driven mass killer who, with his brother, detonated at the finish line of the Boston Marathon two home-made bombs specifically designed to rip people apart, killing three – a young boy and two women – maiming seventeen, and injuring hundreds; shot a police officer three times in the head so they could steal his sidearm; and exchanged thousands of rounds with police officers in Watertown. I have heard, and respect, the voices calling for the Department to drop its pursuit of the death penalty in this case. But the severity of Tsarnaev’s crimes place him in that narrow category of criminals for whom death is a proportional punishment. Some have argued that executing Tsarnaev will not deter others from pursuing similar crimes. But, ultimately, this decision is not about deterrence.  It is about justice.”

BOSTON – A former client relationship manager at Bank of America was arrested and charged today in connection with embezzling $1.5 million from a client company and using a portion of those funds to purchase luxury items.

Waqas Ali, 31, of Abington, was charged in a criminal complaint with wire fraud and money laundering. Ali will make an initial appearance today via videoconference in federal court in Boston.

According to court documents, Ali was the client relationship manager for the victim company, which was a Bank of America client. Ali allegedly opened a checking account in the name of the victim company without its knowledge or authorization, and between September 2016 and July 2017, fraudulently transferred over $1.5 million from the victim company’s accounts to a fraudulent account. 

It is alleged that Ali used over $600,000 of the funds he fraudulently obtained to fund his lifestyle and pay for luxury items, including a Porsche SUV and retail items at Neiman Marcus, Bloomingdales, Christian Louboutin and Tag Heuer. 

The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charge of money laundering provides for a sentence of up to 20 years in prison, three years of supervised release, a $500,000 fine, restitution and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorney Mackenzie A. Queenin of Lelling’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.

The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – A vendor for several Veterans Affairs medical facilities pleaded guilty today to a scheme to profit by billing for, but failing to perform, critical medical gas inspections at VA facilities.

Chester Wojcik, 49, of Agawam, Mass., pleaded guilty to one count of wire fraud. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Nov. 19, 2020.

From May 29, 2014, through March 5, 2015, Wojcik, as the owner of Alliance Medical Gas Corporation, engaged in a scheme to defraud the VA by creating false invoices and reports for medical gas inspections that never took place. Medical gas supply systems deliver piped gases, including compressed air, oxygen, nitrous oxide, nitrogen and carbon dioxide to operating rooms, recovery rooms and patient rooms. Medical gas supply systems must be inspected and maintained regularly to ensure the safety of patients and medical professionals. Wojcik failed to perform, and then lied about, scheduled inspections of medical gas systems at VA facilities in Sioux Falls, S.D., Tuskegee, Ala. and Montgomery, Ala. Wojcik was paid $8,981 by the VA for services that his company did not perform.

The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Christopher Algieri, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorney Elysa Q. Wan of Lelling’s Health Care Fraud Unit is prosecuting the case.

BOSTON – A Randolph man was sentenced today in federal court in Boston for distributing fentanyl. 

Richard Petit-Frere, 25, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to 60 months in prison and 48 months of supervised release. In August 2019, Petit-Frere pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 40 grams or more of fentanyl, one count of distribution of and possession with intent to distribute 40 grams or more of fentanyl and five counts of distribution of and possession with intent to distribute fentanyl.

On multiple occasions from May 2, 2018, through Nov. 11, 2018, an undercover federal agent purchased fentanyl from Petit-Frere and others in Randolph, Canton and Foxboro. The investigation revealed that Petit-Frere was a member of the No Fear Ones street gang in Randolph. 

United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Randolph Police Chief William Pace; Stoughton Police Chief Donna M. McNamara; and Foxboro Police Chief Michael Grace made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Lelling’s Organized Crime and Gang Unit prosecuted the case.

BOSTON – A Malden woman was arrested today and charged with stealing Social Security benefits and bank embezzlement.   

Materesa Jose, 52, was charged with one count of theft of public funds and one count of bank embezzlement. Jose was arrested today and will make an initial appearance before U.S. District Court Magistrate Judge Jennifer Boal at 3:30 p.m. 

According to the indictment, Jose, while an employee at Eastern Bank, stole approximately $27,605 from the bank, some of which consisted of Social Security benefits, from September 2017 through July 2018.

The charge of theft of public funds provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of bank embezzlement provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Tonya Perkins, Acting Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Matthew Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit is prosecuting the case.

The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – The former second-in-command of the Boston-based Devon Street Kings Chapter of the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) pleaded guilty today to racketeering charges.

Alexis Peguero, a/k/a “King Lexi,” a/k/a “King Looney,” 29, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Dec. 15, 2020. Alexis Peguero was arrested and charged in December 2019, at which time he was the Cacique or second-in-command of the Devon Street Kings, a Boston-based Chapter of the Latin Kings.

The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.

Named for its origin on Devon Street in Boston, the Devon Street Kings or D5K Chapter of the Latin Kings, included at various times, approximately a dozen members who reported to Alexis Peguero, who served as “Cacique” or the second-in-command of the Chapter. The Devon Street Kings, in turn, reported to the Massachusetts State Leadership of the Latin Kings, providing information, structure, funds and other resources to further the Latin Kings goals and directives in the state. 

As described in court documents, Alexis Peguero produced various music videos touting his allegiance to the Latin Kings, distributed controlled substances and threatened rival gang members. During the investigation, various meetings were covertly recorded where Alexis Peguero and members of the Devon Street Kings discussed the business of the racketeering enterprise. In addition, Alexis Peguero was present during meetings where members were beaten and violence against rival gangs was discussed and decided upon.

In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Alexis Peguero is the eighth defendant to plead guilty in the case.

The RICO conspiracy charge provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and Boston Police Commissioner William Gross made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices.  Assistant U.S. Attorney Philip A. Mallard and Mark Grady of Lelling’s Criminal Division are prosecuting the case.

The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.

The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – A Fall River woman pleaded guilty today in federal court to stealing Social Security disability benefits.    

Gloria Camara, 58, pleaded guilty to one count of theft of public funds and one count of making a false statement. U.S. District Court Judge Indira Talwani scheduled sentencing for Dec. 15, 2020. 

Camara began receiving Social Security disability benefits in 1992. In November 2009, she began working as a caregiver, but she did not report her income to the Social Security Administration. Instead, during periodic eligibility reviews, including a review on April 20, 2017, Camara falsely told Social Security that her only income consisted of three months of unemployment compensation benefits in 2008, and sporadic wages from two companies between 2003 and 2011. Because she did not report her earnings as a caregiver, Camara stole approximately $84,222 in Social Security benefits from November 2009 through October 2019. 

The charge of theft of public funds provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater.  The charge of making a false statement provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling and Tonya Perkins, Acting Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit is prosecuting the case.

BOSTON – The U.S. Attorney’s Office has filed a complaint under the False Claims Act against Teva Pharmaceuticals USA, Inc., and Teva Neuroscience, Inc., the maker of Copaxone, a drug for multiple sclerosis (MS).

The government alleges that Teva conspired with a specialty pharmacy, Advanced Care Scripts, Inc. (ACS), and two purportedly independent foundations, Chronic Disease Fund (CDF) and The Assistance Fund (TAF), to violate the Anti-Kickback Statute and False Claims Act by using the foundations as conduits to subsidize Medicare co-pays for Copaxone, all while steadily raising Copaxone’s price.

When a Medicare beneficiary obtains a prescription drug covered by Medicare Part B or Part D, the beneficiary may be required to make a partial payment, which may take the form of a co-payment, co-insurance, or deductible (collectively “co-pays”). These co-pay obligations may be substantial for expensive medications. Congress included co-pay requirements in these programs, in part, to encourage market forces to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. The Anti-Kickback Statute prohibits pharmaceutical companies from offering or paying, directly or indirectly, any remuneration – which includes money or any other thing of value – to induce Medicare patients to purchase the companies’ drugs.

“The government’s complaint today alleges that Teva used ostensibly independent charitable foundations as vehicles to pay hundreds of millions of dollars in kickbacks, all while raising the price of its drug, Copaxone, at a rate over 19 times the rate of inflation,” said Andrew E. Lelling, United States Attorney for the District of Massachusetts. “Teva’s alleged kickbacks undermined the Medicare program’s co-pay structure, which Congress created as a safeguard against inflated drug prices.”

“The Department is committed to stopping pharmaceutical companies from using foundations as conduits to funnel kickbacks to Medicare patients, and to prop up excessive drug costs at the expense of the American taxpayers,” said Acting Assistant Attorney General Ethan P. Davis of the Department of Justice’s Civil Division. “We will continue to root out these unlawful kickback arrangements that undermine the integrity of federal health care programs.”

“Drug manufacturers that offer kickbacks in order to boost profits – as alleged in this case – drive up health care costs for everyone and undermine the public’s trust in the health care system,” said Special Agent in Charge Phillip M. Coyne of the U.S. Department of Health and Human Services, Office of Inspector General. “Our agency, working closely with our law enforcement partners, will continue to thoroughly investigate such corrosive schemes.”

“As alleged, Teva gamed Medicare and tried to deflect attention away from a 329% increase in the cost of its drug by masking kickbacks as charitable contributions,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “This case demonstrates the FBI’s ongoing commitment to protect our government programs and the American taxpayers who contribute to them from being victimized by corporations who allegedly pay kickbacks to pad their bottom line.”

The government alleges that, from 2006 through at least 2015, Teva paid the two foundations well over $300 million, not as charity for MS patients generally, but with the intent and understanding that the foundations would use Teva’s money to cover the Medicare co-pays of patients taking Copaxone. During the same period, Teva raised the price of Copaxone from approximately $17,000 per year to over $73,000 per year. Meanwhile, because of Teva’s kickbacks, many Medicare patients (and their doctors) had no reason to consider the drug’s ever-increasing cost.

According to the complaint, Teva effectuated its scheme through ACS, to which Teva referred virtually all Copaxone patients who faced Medicare co-pays for the drug. ACS, in turn, arranged for the patients to obtain Medicare co-pay coverage from the foundations and then reported back to Teva how many Copaxone patients were receiving co-pay coverage from each foundation. At the end of each year, Teva used information from ACS and the foundations to determine how much money each foundation would need to cover the Medicare co-pays of existing Copaxone patients for the following year, and Teva paid each foundation accordingly.

The government further alleges that, after the beginning of a year, when the foundations’ MS funds were often closed to new patients because the foundations had allocated all of their funding to existing patients, ACS would provide periodic reports to Teva on the number of new Copaxone patients awaiting Medicare co-pay assistance. When an ACS report showed a substantial number of Copaxone patients waiting, Teva would multiply the number of waiting patients by the foundation’s average grant amount for Copaxone patients, add the foundation’s administrative fee, and then send a corresponding payment to the foundation. Just before sending the payment, Teva would notify ACS, which then would send a “batch file” of applications for all the waiting Copaxone patients to the foundation so that the foundation would act on those applications as soon as the fund re-opened. In this way, Teva and ACS ensured that Copaxone patients received the vast majority of the co-pay grants the foundations made whenever they re-opened their MS funds with money from Teva.

The government previously entered into settlement agreements with ACS, TAF, and CDF.

U.S. Attorney Lelling, Acting AAG Davis, HHS-OIG SAC Coyne, and FBI Boston SAC Bonavolonta made the announcement today. The matter is being handled by Assistant U.S. Attorneys Gregg Shapiro, Abraham George, and Evan Panich of Lelling’s Affirmative Civil Enforcement Unit and Trial Attorneys Douglas Rosenthal and Nelson Wagner of the Department of Justice’s Civil Division.

BOSTON – A Missouri surgeon and Kansas distributor have been charged and agreed to plead guilty to conspiring to pay and receive kickbacks aimed at inducing the use of spinal implants sold by a medical device company as well as engaging in conduct aimed at obstructing the government’s federal investigation into that the kickback scheme.

Jason Montone, DO, 44, of Lawson, Mo., will plead guilty to one count of conspiracy to violate the Anti-Kickback statute and one count of obstruction. According to the terms of Montone’s plea agreement, the government will recommend a sentence at the low end of the sentencing guidelines, one year of supervised release, a fine and forfeiture of $379,000 – the amount that he received in sham consulting fees from the medical device company. 

John Balzer, 42, of Lenexa, Kan., will plead guilty to one count of conspiracy to violate the Anti-Kickback statute and one count of witness tampering. According to the terms of Balzer’s plea agreement, the government will recommend a sentence at the low end of the sentencing guidelines, one year of supervised release, and forfeiture of $1,264,501 – the amount that he received in commissions from the medical device company for products Montone used in his spine surgeries.

Plea hearings have not yet been scheduled by the Court.

“Kickbacks paid to influence physicians are illegal and incompatible with a properly functioning health care system,” said United States Attorney Andrew E. Lelling. “We will take all necessary steps to ensure that patients receive, and the government pays for, health care that is based solely on sound medical judgment, not compromised by kickbacks.”

“These charges serve as a strong reminder that we will not tolerate bribes and corruption within our federal healthcare system, nor will we accept acts of obstruction that attempt to disrupt our pursuit of justice,” said Phillip M. Coyne, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Surgeons are entrusted to make decisions for the best interests of their patients, not because of the corrupting influence of kickbacks. We will fervently pursue kickback schemes that seek to undermine our healthcare system no matter how those schemes are disguised.”

“When surgeons participate in a kickback scheme with medical device companies, they trade their commitment to patient care for personal gain. Any efforts to obstruct our investigations only compound that harm,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Sham consulting arrangements undermine the integrity of the medical decision-making process, and this case sends a clear message that these types of financial arrangements will not be tolerated.”

According to the charging documents, between late 2012 and October 2015, Balzer, Montone, and their co-conspirators engaged in a scheme in which the medical device company and its CEO and CFO paid Montone a total of $379,000 pursuant to a sham consulting program that paid Montone $500 to $750 per hour for supposedly performing consulting services. Although the medical device company’s physician-consulting program was purportedly directed at gathering technical feedback about its products from surgeons, the company and its CEO and CFO allegedly used the program, and the kickbacks they paid pursuant to that program, to induce and reward Montone’s decision to use the company’s products.  

To accomplish this, the medical device company, among other things, tracked the sales volumes of Montone and other physician-consultants and used that information to determine how much the company would pay Montone, regardless of how much consulting was actually performed. During the conspiracy, Balzer and Montone represented that Montone had spent hundreds of hours evaluating products, discussing industry trends and educating medical residents. In fact, Montone spent only a small fraction of his reported time performing actual consulting activities for the medical device company. In exchange for the consulting payments he received, Montone used over $4.5 million of the company’s products in his surgeries, often in Balzer’s presence or at his prompting, including excessive amounts of certain of the company’s products. During this time, Montone performed numerous surgeries on patients who were Medicare or Medicaid beneficiaries. The medical device company agreed to pay Balzer a 25% commission on all of the medical device company’s products that Montone used in his spine surgeries. Over the period of the time covered by the conspiracy, the company paid Balzer over $1.2 million in commissions for spine products Montone used.

In September 2017, after Montone learned of the government’s investigation into the medical device company, he created false documents purporting to show work he ostensibly performed pursuant to his consulting agreement and later produced those false documents to the government. In December 2018, Montone sat for an interview with government agents and withheld information concerning his conversations with the company’s employees regarding how his consulting fees would be determined; how he came up with the number of alleged consulting hours he had performed; and his conversations with Balzer about violations of the Anti-Kickback Statute. 

In February 2019, after Balzer became aware of the government’s investigation he advised Montone to falsely tell the government that Montone had performed legitimate consulting in an amount equal to the hundreds of hours Balzer and Montone had reported and that Montone was “surprised” the company was missing documentation showing Montone’s feedback and consulting work. In fact, Balzer knew that neither representation was true.

The charge of witness tampering provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross loss to the victims and restitution. The charges of conspiracy to violate the Anti-Kickback Statute and obstruction of a criminal health care fraud investigation each provide for a sentence of up to five years in prison, three years of supervised release, a fine of $250,000 or twice the gross loss to the victims, and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

U.S. Attorney Lelling, HHS-OIG SAC Coyne and FBI SAC Bonavolonta made the announcement. Assistant U.S. Attorneys Patrick M. Callahan, Abraham R. George and David J. Derusha of Lelling’s Health Care Fraud Unit and Affirmative Civil Enforcement Unit are prosecuting the cases.

The details contained in the court documents concerning other individuals and entities are allegations only and those individuals and entities are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The Justice Department today filed a lawsuit in the District of Massachusetts alleging that PRTaylor Enterprises LLC, a company doing business as Father & Son Moving & Storage (Father & Son), violated the Servicemembers Civil Relief Act (SCRA) by failing to obtain a court order before auctioning off the entire contents of a U.S. Air Force Technical Sergeant’s two storage units while he was deployed overseas.

The SCRA, which provides a wide variety of financial and housing protections to members of the military, prohibits storage companies from auctioning off servicemembers’ belongings without a court order. The lawsuit further alleges that among the Technical Sergeant’s possessions sold by Father & Son were military gear and mementos that had belonged to a cousin who was killed in military action, his grandfather’s military service medals, a dresser that was handmade by his great-grandfather, and personal photographs.

“Congress enacted the Servicemembers Civil Relief Act to protect the patriots who protect all of us by serving in our nation’s armed forces. The Servicemembers Civil Relief Act outlawed the kind of conduct alleged here, and for good reason. No individual or organization should be able to get away with the kind of devastation this young man suffered when he returned home from an overseas deployment and learned that many of his most valued family mementos were gone. The law protects servicemembers from losing their property, including items of great sentimental value, because of their service,” said Assistant Attorney General Eric S. Dreiband of the Justice Department’s Civil Rights Division. “The Department of Justice is filing this lawsuit today to ensure that this servicemember receives just compensation and to prevent this from happening to another member of our military. We must and will put an end to these unlawful business practices.”

“This servicemember was called overseas to serve our country and returned home to find his personal possessions, family heirlooms and military awards auctioned off to the highest bidder,” said U.S. Attorney Andrew E. Lelling. “That is unacceptable. We will continue to protect the rights of servicemembers who dedicate their lives to preserving our security and freedom.”

The law places the burden on moving and storage companies and other lienholders to determine whether the property in their possession belongs to a servicemember. The complaint alleges that several facts should have put Father & Son on notice that the Technical Sergeant was a servicemember, including that he told an agent of Father & Son that he was in the military. The complaint also alleges that Father & Son picked up and packed the Technical Sergeant’s belongings at Hanscom Air Force Base while he was present and wearing his U.S. Air Force uniform. The lawsuit asserts that Father & Son sent correspondence to the Technical Sergeant at his previous address of record at Hanscom Air Force Base while he was stationed overseas.

In addition to seeking damages for the servicemember, including the value of the auctioned items, the Justice Department is seeking to enjoin Father & Son from illegally auctioning off servicemembers’ possessions in the future in violation of the SCRA. The lawsuit also seeks a civil penalty.

This lawsuit resulted from a referral to the Justice Department from the U.S. Air Force. Servicemembers and their dependents who believe their SCRA rights have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil/. The department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section and U.S. Attorney’s Offices throughout the country. Since 2011, the department has obtained over $474 million in monetary relief for over 120,000 servicemembers through its enforcement of the SCRA. Additional information on the Justice Department’s enforcement of the SCRA and other laws protecting servicemembers is available at www.servicemembers.gov.

BOSTON – The Justice Department filed a lawsuit today alleging that PRTaylor Enterprises LLC, a company doing business as Father & Son Moving & Storage, violated the Servicemembers Civil Relief Act (SCRA) by failing to obtain a court order before auctioning off the entire contents of a U.S. Air Force Technical Sergeant’s storage units while he was deployed overseas.

The SCRA, which provides a wide variety of financial and housing protections to members of the military, prohibits storage companies from auctioning off servicemembers’ belongings without a court order. The lawsuit alleges that included among the Technical Sergeant’s possessions sold by Father & Son were military gear and mementos that had belonged to a cousin who was killed in military action, his grandfather’s military service medals, a dresser that was handmade by his great-grandfather and personal photographs.

The SCRA places the burden on moving and storage companies to determine whether the property in their possession belongs to a servicemember. The complaint alleges that several facts should have put Father & Son on notice that the Technical Sergeant was a servicemember, including that he told an agent of Father & Son that he was in the military. According to court documents, Father & Son picked up and packed the Technical Sergeant’s belongings at Hanscom Air Force Base while he was present and wearing his U.S. Air Force uniform. The lawsuit asserts that Father & Son sent correspondence to the Technical Sergeant at his previous address of record at Hanscom Air Force Base while he was stationed overseas.

“This servicemember was called overseas to serve our country and returned home to find his personal possessions, family heirlooms and military awards auctioned off to the highest bidder,” said Untied States Attorney Andrew E. Lelling. “That is unacceptable.  We will continue to protect the rights of servicemembers who dedicate their lives to preserving our security and freedom.”

“Congress enacted the Servicemembers Civil Relief Act to protect the patriots who protect all of us by serving in our nation’s armed forces. The Servicemembers Civil Relief Act outlawed the kind of conduct alleged here, and for good reason. No individual or organization should be able to get away with the kind of devastation this young man suffered when he returned home from an overseas deployment and learned that many of his most valued family mementos were gone. The law protects servicemembers from losing their property, including items of great sentimental value, because of their service,” said Assistant Attorney General Eric S. Dreiband of the Justice Department’s Civil Rights Division. “The Department of Justice is filing this lawsuit today to ensure that this servicemember receives just compensation and to prevent this from happening to another member of our military. We must and will put an end to these unlawful business practices.”

In addition to seeking damages for the servicemember, including the value of the auctioned items, the Justice Department is seeking to enjoin Father & Son from illegally auctioning off servicemembers’ possessions in the future in violation of the SCRA. The lawsuit also seeks a civil penalty.  This lawsuit resulted from a referral to the Justice Department from the U.S. Air Force. 

Servicemembers and their dependents who believe their SCRA rights have been violated should contact the nearest Armed Forces Legal Assistance Program Office.

The Department’s enforcement of the SCRA is conducted by U.S. Attorney’s Offices and the Civil Rights Division’s Housing and Civil Enforcement Section. Since 2011, the Department has obtained over $474 million in monetary relief for over 120,000 servicemembers through its enforcement of the SCRA. Additional information on the Justice Department’s enforcement of the SCRA and other laws protecting servicemembers is available at www.servicemembers.gov.

This matter is being handled by Assistant United States Attorney Torey B. Cummings of Lelling’s Civil Rights Unit and Trial Attorney Tanya Kirwan of the Civil Rights Division’s Housing and Civil Enforcement Section.

BOSTON – A Lowell man was indicted yesterday by a federal grand jury in connection with advertising the sale of a firearm on Snapchat.   

Juan Aparicio, 29, who was indicted on one count of being a felon in possession of a firearm and ammunition and one count of possession with intent to distribute cocaine, will be arraigned in federal court at a later date. Aparicio was arrested and charged by criminal complaint on June 10, 2020.

According to the charging documents, on Jan. 6, 2020, law enforcement searched Aparicio’s residence after viewing Snapchat videos that evening showing Aparicio offering to sell numerous firearms. A loaded assault rifle and cocaine were recovered during the search. Due to previous convictions punishable by more than one year in prison, Aparicio is prohibited from possessing firearms and ammunition.

The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, one year of supervised release and a fine of up to $250,000. The charge of possession with intent to distribute cocaine provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Middlesex County District Attorney Marian T. Ryan; and Superintendent Raymond Kelly Richardson of the Lowell Police Department made the announcement. Assistant U.S. Attorney Evan Panich of Lelling’s Office is prosecuting the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – LaFrance Hospitality, operator of 14 hotels in New England, has entered an agreement under Title III of the Americans with Disabilities Act (ADA) to resolve allegations that the showers in the accessible rooms of their New Bedford Marriott Fairfield hotel were inaccessible to persons with disabilities.

LaFrance Hospitality failed to install permanent shower seats on the wall in their roll-in showers at the New Bedford Marriott Fairfield as is required by the ADA. Instead, non-fixed seats were placed in each roll-in shower. When a woman with a mobility impairment used the non-fixed shower seat it collapsed, and the woman fell. The fall resulted in the woman requiring emergency services and an overnight stay at a local hospital for her injuries.

Under the agreement, LaFrance Hospitality will ensure all showers in accessible rooms in all 14 of its hotels meet ADA standards, including installation and positioning of shower seats, grab bars, and shower spray units. LaFrance Hospitality also will pay the woman $20,000 in compensation.

“Meeting the requirements of the ADA means individuals with mobility impairments should never have to question whether the hotel they are staying in will provide safe and accessible rooms,” said United States Attorney Andrew E. Lelling. “We commend LaFrance Hospitality for working cooperatively with us to meet the standards of the ADA moving forward.”

This year marks the 30th Anniversary of the Americans with Disabilities Act. The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. The Justice Department will continue to use its enforcement and technical assistance tools to eliminate unlawful discrimination against individuals with disabilities.

This case was handled by Assistant U.S. Attorney Gregory Dorchak of Lelling’s Civil Rights Unit.

The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.

BOSTON – A Bourne man was indicted yesterday by a federal grand jury on charges of receipt and possession of child pornography.

Bryan C. Mileikis, 33, was indicted on one count of receipt of child pornography and one count of possession of child pornography. Mileikis was arrested on July 1, 2020 and charged by criminal complaint.

According to the charging documents, on June 11, 2019, law enforcement executed a search warrant at Mileikis’ home and seized an iPhone belonging to Mileikis. A forensic examination of the phone revealed images and videos depicting child pornography.

The charge of receipt of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison, a mandatory minimum of five years and up to life of supervised release and a fine of $250,000. The charge of possession of child pornography provides for a sentence of up to 20 years in prison, a mandatory minimum of five years and up to life of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the United States Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Michael Shea, Acting Special Agent in Charge of the Homeland Security Investigations in Boston; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigations, Boston Field Division; and Bourne Chief of Police Dennis Woodside made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit is prosecuting the case.

The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identity and rescue victims.  For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.

BOSTON – An attorney was sentenced yesterday in federal court in Boston for his role in an international securities fraud scheme that sought to generate $15 million in fraudulent proceeds.

Milan Patel, 50, a resident of Minnesota, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 15 months in prison and ordered to pay a fine of $50,000. In February 2019, Patel pleaded guilty to one count of conspiracy to commit securities fraud and one count of securities fraud.

From 2013 to 2018, Patel and co-conspirators Morrie Tobin, Matthew Ledvina and Roger Knox conspired to disguise their ownership and control of various microcap securities, and to employ paid promotional campaigns and manipulative trading techniques to artificially inflate the price and trading volume of those stocks so that Tobin and others could secretly sell their shares at a substantial profit. Patel, together with Ledvina, helped Tobin create shell companies to disguise Tobin’s control of the shares, enabling Tobin to sell the shares to unsuspecting investors.   

Tobin pleaded guilty in February 2019 and was sentenced yesterday to one year and one day in prison and ordered to pay a fine of $100,000 and forfeiture of $4 million. Ledvina was sentenced in June 2020 to 30 months of probation and ordered to pay a fine of $50,000. Knox previously pleaded guilty and is currently scheduled to be sentenced on Sept. 30, 2020.

United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement. The Boston regional office of the SEC provided assistance with the investigation. Assistant U.S. Attorneys Eric S. Rosen and James R. Drabick of Lelling’s Securities, Financial and Cyber Fraud Unit are prosecuting the case.

BOSTON – A Worcester man was arrested yesterday and charged in connection with transporting stolen laptops.

Christian Diaz, 31, was indicted on one count of interstate transportation of stolen goods. Diaz will be arraigned in federal court at a later date.

According to the indictment, from Aug. 11, 2015 until Sept. 30, 2015, Diaz transported stolen laptops in interstate commerce. 

The charging statute provides for a sentence of up to 10 years in prison, three years of supervised release, a fine of up to $250,000 and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling and Joseph W. Cronin, Postal Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, made the announcement.  Assistant U.S. Attorney Danial E. Bennett of Lelling’s Worcester Branch Office is prosecuting the case. 

The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – The U.S. Attorney’s Office has reached a $3.5 million settlement with specialty pharmacy Advanced Care Scripts, Inc. (ACS), to resolve allegations that ACS conspired with pharmaceutical manufacturer Teva Neuroscience, Inc. (Teva), to enable Teva to pay kickbacks to Medicare patients taking Copaxone, a Teva drug approved for treatment of multiple sclerosis.

When a Medicare beneficiary obtains a prescription drug covered by Medicare Part B or Part D, the beneficiary may be required to make a partial payment, which may take the form of a co-payment, co-insurance, or deductible (collectively “co-pays”). These co-pay obligations may be substantial for expensive medications. Congress included co-pay requirements in these programs, in part, to encourage market forces to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. The Anti-Kickback Statute prohibits pharmaceutical companies from offering or paying, directly or indirectly, any remuneration – which includes money or any other thing of value – to induce Medicare patients to purchase the companies’ drugs.

From approximately October 2006 through January 2015, ACS served as a contracted vendor for Teva and provided, among other things, benefits investigation services to certain patients who had been prescribed Copaxone. As part of today’s settlement, ACS acknowledged certain facts, including that it relayed data from two foundations, Chronic Disease Fund (CDF) and The Assistance Fund (TAF), to Teva so that Teva could correlate its payments to the foundations with the amounts of money the foundations spent on Copaxone patients. ACS further acknowledged that, when the foundations lacked funding and were not accepting new applications for Medicare co-pay coverage, ACS provided regular updates to Teva on the number of Medicare Part D patients serviced by ACS who had prescriptions for Copaxone, met the criteria for foundation co-pay coverage, and were awaiting foundation co-pay coverage. At least one ACS employee understood that Teva would use the number of waiting Copaxone patients to help determine the amount of its next payment to CDF or TAF. Teva sometimes provided ACS with advance notice of its payments to CDF or TAF. Once ACS learned that CDF or TAF had re-opened its co-pay fund, ACS promptly would send the foundation a “batch file” that consisted almost entirely of Copaxone patients’ applications for Medicare co-pay coverage. Thereafter, ACS often received notice from the foundation that most or all of the applications submitted by ACS had been approved to receive co-pay funding. When a Copaxone patient’s application was approved, ACS no longer included that patient in its reports to Teva on the number of Copaxone patients awaiting foundation co-pay coverage.

“According to the allegations in today’s agreement, ACS knowingly enabled a large pharmaceutical manufacturer to pay kickbacks to Medicare patients taking its expensive drug,” said Andrew E. Lelling, United States Attorney for the District of Massachusetts. “Such conduct undermined the Medicare program’s co-pay structure, which Congress created as a safeguard against inflated drug prices. We commend ACS for expeditiously resolving this matter.”

“Advanced Care Scripts (ACS) willingly served as a pawn in a kickback scheme, putting profit over patient needs, by helping Teva to time its foundation payments to boost sales of Teva's own drug, which ACS then dispensed,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Today’s settlement should be a warning to others that the FBI will continue to aggressively go after vendors like ACS who conspire with pharmaceutical companies to disguise kickbacks as charitable contributions, at the expense of hard-working taxpayers who support the Medicare program.”

“This settlement demonstrates the OIG’s commitment to safeguarding the Medicare program from kickback arrangements,” said Phillip M. Coyne, Special Agent in Charge, Office of Inspector General of the U.S. Department of Health and Human Service’s Boston Regional Office. “I appreciate the partnership with the Massachusetts U.S Attorney’s Office in identifying and prosecuting this type of fraud.”

The government previously entered into settlement agreements with TAF and CDF.

U.S. Attorney Lelling, Boston FBI SAC Bonavolonta, and HHS-OIG SAC Coyne made the announcement today. The matter was handled by Assistant U.S. Attorneys Abraham George, Gregg Shapiro, and Evan Panich of Lelling’s Affirmative Civil Enforcement Unit, with assistance from Trial Attorneys Douglas Rosenthal and Nelson Wagner of the Department of Justice’s Civil Division.

BOSTON – A Holyoke man was sentenced today in federal court in Springfield for distributing heroin.

Alexis Santana, 19, was sentenced by Judge Mark G. Mastroianni to three years of probation. The government recommended a sentence of four months in prison. In March 2020, Santana pleaded guilty to distributing and possessing with intent to distribute heroin. 

According to court records, Santana sold heroin on Oct. 7, 2019 in Holyoke.

United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Holyoke Police Chief Manny Febo made the announcement today.  The case is being prosecuted by Todd E. Newhouse of Lelling’s Springfield Branch Office.

BOSTON – A former employee of the Houston Independent School District has agreed to plead guilty in connection with her involvement in a scheme to use bribery and fraud to facilitate cheating on the ACT and SAT exams.

Niki D. Williams, 46, of Houston, Texas, will plead guilty to one count of conspiracy to commit wire fraud and mail fraud and honest services wire fraud and mail fraud. A plea hearing has not yet been scheduled. According to the terms of the plea agreement, the government will recommend a sentence at the low end of the sentencing guidelines, one year of supervised release, a fine, forfeiture in the amount of $20,000 and restitution.

According to the superseding indictment, Williams administered the SAT and ACT exams at the public high school in Houston where she worked. In exchange for bribe payments directed to her by co-conspirators William “Rick” Singer and Martin Fox, and in violation of her duty of honest services to the ACT and the College Board, Williams allowed another co-conspirator, Mark Riddell, to secretly take ACT and SAT tests in place of the children of Singer’s clients or to replace their exam answers with his own corrected answers. Williams then returned the falsified exams to the ACT and College Board for scoring.

Singer, Riddell and Fox previously pleaded guilty and are cooperating with the government’s investigation. 

Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.

The charge of conspiracy to commit mail and wire fraud and honest services mail and wire fraud provides for a sentence of up 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. The Department of Education, Office of Inspector General provided assistance with the investigation. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright, Kristen A. Kearney, Karin M. Bell and Stephen E. Frank of Lelling’s Criminal Division are prosecuting the case.

The details contained in the charging documents are allegations. The remaining defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – A Connecticut man has been charged in federal court in Boston with firearm trafficking.

Brian McCarthy, 33, of Bridgeport, Conn., was charged with one count of dealing firearms without a federal license. McCarthy will make an initial appearance in federal court in Boston at a later date. He has been in state custody since his arrest on July 31, 2020.

According to the criminal complaint, between June 17 and July 31, 2020, McCarthy travelled to Massachusetts and sold an undercover officer two Glock-style Privately Made Firearms (PMF) he had personally fabricated. PMFs are firearms that are not made by firearm manufacturers; instead, firearm manufactures sell individual buyers firearm parts, and the buyer uses various firearm drilling tools to construct and assemble the parts into a functional firearm.  PMFs are also known as “ghost guns” because they are not serialized, and are thus, untraceable.  

Following the July 31 sale, McCarthy was taken into custody. The search of his apartment resulted in the seizure of two additional Glock-style PMFs, one AR15/M4-type rifle upper receiver, accessories for AR15/M4 rifles, multiple semi-automatic magazines, approximately 250 rounds of ammunition, and various firearm construction and assembly tools.

The charge of dealing firearms without a federal license provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Plymouth County District Attorney Timothy J. Cruz; and Bristol County District Attorney Thomas M. Quinn made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Lelling’s Organized Crime and Gang Unit is prosecuting the case.

This prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

The details contained in the criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. 

BOSTON – A Colombian national pleaded guilty today in federal court in Boston to cocaine trafficking and illegal reentry charges.

Ricardo Lopera-Arteaga, 58, pleaded guilty to one count of conspiracy to distribute and possession with intent to distribute 500 grams or more of cocaine, one count of possession with intent to distribute 500 grams or more of cocaine and one count of unlawful reentry of a deported alien. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for Dec. 10, 2020. Lopera-Arteaga has been in federal custody since his arrest on Oct. 9, 2019 with co-defendant Diego Sanchez, 34, who pleaded guilty to similar charges on May 15, 2020.

Sanchez and Lopera-Arteaga conspired together to sell one kilogram of cocaine to a cooperating witness in East Boston in October 2019. Sanchez also engaged in two sales of cocaine to the same cooperating witness on Sept. 10 and 27, 2019 in East Boston. On Oct. 9, 2019, law enforcement agents observed both men meet and walk together towards a spot arranged for the drug transaction. Agents arrested both men a short time later and seized one kilogram of cocaine from Lopera-Arteaga.

The charges of conspiracy to distribute and possession with intent to distribute more than 500 grams of cocaine provide for a mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release and a fine of up to $5 million. The charge of unlawful reentry of a deported alien carries a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Lopera-Arteaga will be subject to deportation upon completion of any sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.

United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner William Gross made the announcement today. Assistant U.S. Attorney Stephen W. Hassink of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.

BOSTON – A Canadian national who resides in Los Angeles was sentenced today in federal court in Boston for his role in a massive global securities fraud scheme that sought to generate $15 million in fraudulent proceeds.

Morrie Tobin, 57, who resides in Los Angeles, Calif., was sentenced by U.S. District Court Judge Nathaniel M. Gorton to one year and one day in prison, two years of supervised release and ordered to pay a fine of $100,000 and forfeiture of $4 million. In February 2019, Tobin pleaded guilty to one count of conspiracy to commit securities fraud and one count of securities fraud.

From 2013 to 2018, Tobin and co-conspirators Milan Patel, Matthew Ledinva and Roger Knox conspired to commit securities fraud by disguising their ownership and control of various microcap securities, and employing paid promotional campaigns and manipulative trading techniques to artificially inflate the price and trading volume of those stocks so that Tobin and others could secretly sell their shares of those stocks at a substantial profit. 

Tobin and others acquired the majority of the shares of GS Valet, a public shell company with minimal assets and operations, and then renamed it International Metals Streaming Corporation (IMST). Tobin, Patel and Ledinva then distributed the shares of IMST among four offshore entities registered in the names of various parties. From December 2016 to June 2017, Tobin and the co-conspirators orchestrated a reverse merger of IMST into Environmental Packing Technology (EPTI), which became a publically-traded company, and then caused 10.5 million shares held in the offshore entities to be transferred to Knox’s asset management firm and a separate brokerage firm. During this time, Tobin and the co-conspirators raised $2.9 million in private placement of shares of EPTI, and used a portion of this money to pay a third-party stock promoter to artificially promote the shares of EPTI. From June 9 to June 27, 2017 – when the Securities and Exchange Commission halted trading in EPTI shares – the co-conspirators directed the sale of EPTI shares held by the offshore entities, thereby generating proceeds of approximately $1,519,182. At sentencing, the Court found that Tobin and his co-conspirators intended to generate $15 million in proceeds based on the number of shares under their control.

Patel pleaded guilty in February 2019 and is scheduled to be sentenced on Thursday, Aug. 13, 2020. Ledinva was sentenced in June 2020 to 30 months of probation and ordered to pay a fine of $50,000. Knox previously pleaded guilty and is currently scheduled to be sentenced on Sept. 30, 2020.

United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. The Boston regional office of the SEC provided assistance with the investigation. Assistant U.S. Attorneys Eric S. Rosen and James R. Drabick of Lelling’s Securities, Financial and Cyber Fraud Unit are prosecuting the case.

BOSTON – The owner of Everett and Worcester auto body shops was charged today with a payroll tax scheme resulting in a $292,231 tax loss.    

Adam Haddad, 43, of Shrewsbury, was charged and has agreed to plead guilty to three counts of aiding the preparation of false tax returns.

As alleged in the Information, for tax quarters ending in March 2015 through June 2017, Haddad paid a significant portion of the wages to employees of his company, Accurate Collision, Inc. “under the table.”  In doing so, Haddad caused Accurate Collision, Inc. to file false returns with the IRS which underreported the actual wages he had paid his employees as well as the employment taxes due to the IRS. In total, Haddad caused a loss to the IRS of at least $292,231.

The charging statue provides for a sentence of up to three years in prison, one year of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater.  Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation made the announcement today. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Securities, Financial and Cyber Fraud Unit is prosecuting the case.

BOSTON – A leader of the Rhode Island Chapter of the Almighty Latin King and Queen Nation (“Latin Kings”) pleaded guilty today to conspiracy charges.

Eric Thomas a/k/a “King E,” 46, pleaded guilty to conspiracy to distribute cocaine. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Dec. 8, 2020. Thomas was arrested and charged in December 2019, at which time he had been identified as the leader of the Rhode Island Chapter of the Latin Kings.

During the plea proceedings, Thomas admitted that in August 2019, he conspired with others to purchase cocaine from members of the Latin Kings in New Bedford for resale. Days later, on Sept. 4, 2019, a co-conspirator was captured in a video recording purchasing 186 grams of cocaine from members of the New Bedford Chapter in a deal facilitated by Thomas. 

The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.

The conspiracy charge provides for a sentence of up to 20 years in prison, at least three years and up to life of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and Worcester Police Chief Steven M. Sargent made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices.  Assistant U.S. Attorney Philip A. Mallard and Mark Grady of Lelling’s Criminal Division are prosecuting the case.

The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – The former leader of the Fitchburg Chapter of the Almighty Latin King and Queen Nation (“Latin Kings”) pleaded guilty today to racketeering conspiracy charges.

Marlon Rivera, a/k/a “King Pluto,” 36, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Dec. 2, 2020. Rivera was serving a related state sentence when he was charged in December 2019.

The Latin Kings are a violent gang comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the criminal organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and is motivated by a desire to further its influence and to protect its turf from rival gangs.

In addition to his membership in the Latin Kings, Rivera is alleged to have founded the Devon Street Kings Chapter in Boston, and recently was the Inca, or leader, of the Fitchburg Chapter of the Latin Kings. Evidence developed during the course of the investigation included recordings of Rivera participating in meetings, discussing business of the enterprise, and possessing cocaine base with intent to distribute.

In December 2019, a federal grand jury issued an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Marlon Rivera is the sixth defendant to plead guilty in the case.

The RICO conspiracy charge provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Commissioner Carol Mici of the Massachusetts Department of Correction. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorney Philip A. Mallard and Mark Grady of Lelling’s Criminal Division are prosecuting the case.

The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – A Weston man pleaded guilty today in connection with a scheme to defraud private high schools and international students of millions of dollars in tuition and other fees.

Keenam “Kason” Park, 59, of Weston, pleaded guilty to one count of wire fraud before U.S. Senior District Court Judge Mark L. Wolf, who scheduled sentencing for Nov. 2, 2020. According to the terms of the plea agreement, the government will recommend a sentence of 51 months in prison, two years of supervised release and a fine and restitution/forfeiture of at least $5,192,330. Park was charged in November 2019.

Park caused EduBoston to collect tuition and other payments from students’ families for the 2019-2020 academic year but failed to remit tuition payments to partnering schools. Instead, Park used the funds on unrelated expenses, including personal expenses. Park also caused EduBoston to collect advance tuition and other payments for the 2020-2021 academic year, which Park failed to return to the students’ families after EduBoston went out of business around September 2019. As a result, EduBoston owes over $5 million to partnering schools.

The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorney Leslie A. Wright of Lelling’s Securities, Financial and Cyber Fraud Unit is prosecuting the case.

BOSTON – A Dominican national previously residing in Lawrence was sentenced today for fraudulent use of a Social Security number.

Richard Zapata Suarez, 33, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to 12 months in prison and one year of supervised release. In June 2020, Zapata Suarez pleaded guilty to one count of false representation of a Social Security number.

On May 17, 2016, Zapata Suarez used the Social Security number of a U.S. citizen to submit a renewal application for a Massachusetts driver’s license under the victim’s name. In order to obtain the license, Zapata Suarez fraudulently provided various documents to the Massachusetts Registry of Motor Vehicles, including a Social Security card and birth certificate bearing the victim’s name.

The investigation was conducted by Homeland Security Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized investigative group comprised of personnel from various state, local and federal agencies with expertise in detecting, deterring and disrupting organizations and individuals involved in various types of document, identity and benefit fraud schemes.

United States Attorney Andrew E. Lelling; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Phillip M. Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General made the announcement today. Valuable assistance was provided by the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Office; U.S. Secret Service; U.S. Postal Inspection Service; U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office; U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, Boston; U.S. Marshals Service; Massachusetts State Police; and the Massachusetts Office of Inspector General. Assistant U.S. Attorney Adam W. Deitch of Lelling’s Major Crimes Unit prosecuted the case.

BOSTON – A California man pleaded guilty today in federal court in Boston to illegally exporting cesium atomic clocks to Hong Kong. 

Alex Yun Cheong Yue, 69, of South El Monte, Calif., pleaded guilty to one count of conspiracy to commit export violations, two counts of unlawful exports and attempted exports of U.S. goods to Hong Kong, and one count of smuggling. U.S. District Court Judge Indira Talwani scheduled sentencing for Dec. 10, 2020. Yue was charged by indictment and arrested in June 2019. Wai Kay Victor Zee, 56, of Hong Kong, along with his company, Premium Tech Systems, Limited were also charged. Zee remains at large in Hong Kong Special Administrative Region of the People’s Republic of China.

Beginning in December 2015, Yue, Zee, and Premium Tech conspired to procure U.S.-origin cesium atomic clocks and export them to Hong Kong without obtaining the required export licenses. Cesium atomic clocks are used in global positioning system solutions, network timing protocols, encryption programs, and national defense and space applications. They are controlled for export by the U.S. Department of Commerce for national security and anti-terrorism reasons.

To obtain the atomic clocks, Yue purchased them using a fictitious company, “Ecycle Tech International Ltd.,” by falsely representing to the U.S. seller that the atomic clocks would be used solely in the United States for cordless phone research and development. Based on Yue’s false representations, the U.S. seller sold the cesium atomic clocks to Ecycle. On Feb. 19, 2016, the atomic clocks shipped from the manufacturing facility in Beverly, Mass., to Yue in California. Three days later, on Feb. 22, 2016, Yue allegedly reshipped the controlled cesium atomic clocks to Zee at Premium Tech in Hong Kong. Neither Yue, Zee, nor Premium Tech ever applied for or obtained the required export licenses from the U.S. Department of Commerce. On Feb. 24, 2016, Zee allegedly confirmed receipt of the cesium atomic clocks in Hong Kong.

In December 2017, Yue attempted to purchase an additional cesium atomic clock. Prior to the sale, however, the U.S. seller required Yue to provide an end-user statement detailing where and for what the clocks would be used. In April 2018, Yue sent an end-user certificate on Ecycle letterhead stating that the atomic clocks would be used in a calibration lab in California.  In response to further inquiries from the U.S. seller, Yue falsely declared that he was not intending to export the cesium atomic clocks. When the U.S. seller insisted on a site visit to the California location where the atomic clocks would be utilized, Yue abruptly canceled the order. On July 13, 2018, Yue received a refund payment from the U.S. seller. Three days later, on July 16, 2018, Yue sent a wire transfer to Premium Tech’s bank account in Hong Kong with the refunded money.

The charge of conspiring to commit export violations and unlawfully exporting and attempting to export U.S. goods provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $1 million. The charge of smuggling goods from the United States provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew Lelling; William Higgins, Special Agent in Charge of the Department of Commerce, Office of Export Enforcement, Boston Field Office; and Michael Shea, Acting Special Agent in Charge of the Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorney Scott Garland, Deputy Chief of Lelling’s National Security Unit, is prosecuting the case.

The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – A Boston man pleaded guilty today in federal court in Boston to conspiring to deal firearms illegally.

Charles A. Slayden Jr., 26, pleaded guilty to one count of conspiracy to deal in firearms without a license before U.S. District Court Judge Denise J. Casper, who scheduled sentencing for Dec. 3, 2020. In June 2019, Slayden was charged along with co-defendant Levenson Merilus, 29, of Randolph, who pleaded guilty on Feb. 12, 2020.

According to court documents, Slayden and Merilus conspired to purchase firearms from a licensed dealer and re-sell them for profit to individuals in Boston. In furtherance of this conspiracy, Merilus purchased at least seven guns from a licensed dealer, falsely claiming to be purchasing them for himself.

The charge of conspiring to deal in firearms without a license provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement today.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

BOSTON – A Springfield man pleaded guilty yesterday in federal court for failing to register as a sex offender.

Ruben Pagan, 50, pleaded guilty to one count of failing to register as a sex offender before U.S. District Court Judge Mark G. Mastroianni, who scheduled sentencing for Jan. 5, 2021.

Pagan, who was convicted of a sex offense in 2002, moved from Springfield to Providence, R.I. in October 2017. He remained in Providence until March 2018, when he was arrested on a Massachusetts state court warrant charging him with child sexual abuse. Pagan failed to register as a sex offender in Rhode Island, including while the warrant for his arrest was outstanding.

Pagan previously pleaded guilty to rape and abuse of a child and is currently serving a six-year state court prison sentence. Pagan was also convicted of failure to register as a sex offender on two prior occasions in Massachusetts state court.

The charging statute provides for a sentence of up to 10 years in prison, a lifetime of supervised release and a $250,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling and John Gibbons, United States Marshal for the District of Massachusetts made the announcement. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office is prosecuting the case.

BOSTON – A Springfield man was indicted yesterday with being a felon in possession of a firearm and possession of marijuana. 

Lavon Pemberton, 32, was indicted on one count of being a felon in possession of a firearm and ammunition and one count of possession with intent to distribute marijuana. Pemberton will be arraigned in Worcester federal court on Monday, Aug. 10, 2020.

On May 14, 2020, Pemberton was stopped by law enforcement for speeding on the Massachusetts Turnpike while driving a rented vehicle. A subsequent search of the vehicle resulted in the discovery a loaded firearm, thousands of dollars in cash and multiple bags of marijuana. According to the charging documents, Pemberton stated that he intended to sell the marijuana once he reached his destination.

Pemberton was previously convicted in federal court of being a felon in possession of a firearm, and was on supervised release for that offense at the time of the vehicle stop.   

The firearm charge provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The drug charge provides for a sentence of up to five years in prison, two years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Kelley D. Brady, Special Agent in Charge of the Bureau of alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement. Assistant U.S. Attorney Kristen Noto of Lelling’s Worcester Branch Office is prosecuting the case.

The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – A U.S. Postal employee was indicted yesterday in connection with stealing mail believed to contain controlled substances. 

Shawn M. Herron, 44, of Whitman, Mass., was indicted on one count of conspiracy to possess cocaine with intent to distribute and one count of theft of mail by a postal employee. Herron was arrested and charged by criminal complaint in February 2020. 

According to court documents, Herron has been employed by the Postal Service since September 2005, most recently as a Manager of Customer Services at the Fall River Post Office (FPO).  Prior to this position, he was the Supervisor of Customer Service at the Canton Post Office.

It is alleged that Herron tracked packages he suspected of containing narcotics and, rather than dealing with them appropriately, opened them and stole the contents. Herron profiled priority parcels from Puerto Rico and west coast U.S. states, and parcels flagged by law enforcement as potentially containing illegal narcotics, and then removed them from the U.S Mail stream. Herron tracked the suspected parcels through Postal Service databases and monitored their arrival at the FPO. After their arrival Herron located the parcels and brought them to his personal office space, where he stole the narcotics for distribution.

The charge of conspiracy to distribute controlled substances provides for a sentence of up to 20 years in prison, five years of supervised release and up to a $500,000 fine. The charge of theft of mail provides for a sentence of up to five years in prison, three years of supervised release and a $250,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Matthew M. Modafferi, Special Agent in Charge of the U.S. Postal Service Office of Inspector General; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service made the announcement. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption & Special Prosecutions Unit is prosecuting the case.

The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – A former New Jersey broker was sentenced today in federal court in Newark for defrauding his clients by engaging in a multi-year “cherry-picking” scheme that netted nearly $800,000. The defendant was originally indicted in the District of Massachusetts before the case was transferred to New Jersey. 

Michael Bressman, 63, of Montville, N.J., formerly of FCG Advisors and FCG Wealth Management of Chatham, N.J., was sentenced by U.S. District Court Judge Katharine S. Hayden to two years in prison and 18 months of supervised release. Bressman was also ordered to pay restitution of $793,680 and to forfeit that same amount. In June 2019, Bressman pleaded guilty to one count of securities fraud and one count of investment advisor fraud.

Bressman was originally indicted in the District of Massachusetts on Sept. 11, 2018, and the case was transferred to New Jersey pursuant to Federal Rule of Criminal Procedure 21 on Nov. 8, 2018.

Bressman misused his access to an omnibus or “allocation” account to obtain nearly $800,000 in illicit trading profits over a six-year period ending in February 2018. He used the allocation account to place trades and cherry-picked profitable trades, which he then transferred to his own account and the account of family members, while placing unprofitable trades in other customers’ accounts.

United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. The Securities and Exchange Commission in New York provided significant assistance with the investigation. Assistant U.S. Attorney Eric Rosen of Lelling’s Securities, Financial & Cyber Fraud Unit and Assistant U.S. Attorney Courtney Howard, Chief of the Economic Crimes Unit for the District of New Jersey, prosecuted the case. 

BOSTON – Massachusetts General Hospital (MGH) and the U.S. Attorney’s Office entered an agreement today, under Title III of the Americans with Disabilities Act (ADA), to resolve allegations that MGH denied a patient with cystic fibrosis eligibility for a lung transplant because he was being treated with a prescription medication for opioid use disorder (OUD).

At the time MGH evaluated the patient to determine if he was eligible to receive a transplant, the patient was actively participating in a supervised rehabilitation program and not engaged in the illegal use of drugs. Because the patient was being treated with prescription medication to treat his OUD, MGH rejected him for consideration for a transplant and failed to further evaluate him in accordance with its standard transplant consideration process, including consultation with appropriate specialists.

When the patient was able to receive a lung transplant at a different hospital in another state, his mother, who was needed to provide support after the procedure, was required to leave her job and move from her Massachusetts home to be near the transplant hospital while the patient recovered from surgery. The distance from home, family and community caused them both considerable financial and emotional distress.

Under the agreement, MGH will: implement a non-discrimination policy stating that MGH will not unnecessarily deny or limit treatment for individuals on the basis of disability, including OUD, or the use of medication to treat OUD; provide ADA training to medical staff involved in decisions about transplants; and provide the patient and his mother $250,000 in monetary relief for their emotional distress and out of pocket expenses.

“By cooperating and doing the right thing, MGH is eliminating barriers to addiction treatment and fulfilling the promise of the ADA: full access to medical services, regardless of disability,” said United States Attorney Andrew E. Lelling.  

This year marks the 30th Anniversary of the Americans with Disabilities Act. The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. The Justice Department will continue to use its enforcement and technical assistance tools to eliminate unlawful discrimination against individuals with disabilities.

The case was handled by Assistant U.S. Attorney Gregory Dorchak of Lelling’s Civil Rights Unit with Senior Trial Attorney Alyse Bass of the Justice Department’s Disability Rights Section.

The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement.  For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.

BOSTON – A Lexington doctor and his wife, who works as his office manager, were charged in an international money laundering scheme involving importing illegal drugs.

Rahim Shafa, 62, and Nahid “Nina” Tormosi Shafa, 62, were each indicted on one count of international money laundering conspiracy. Shafa was also indicted on three counts of money laundering, one count of conspiracy to defraud the United States, three counts of importing merchandise contrary to law and one count of receiving and delivering misbranded drugs with an intent to defraud and mislead. The defendants will make an initial appearance in federal court in Worcester this afternoon.

“In order to make money, the defendants allegedly circumvented mandatory FDA drug inspections and took advantage of vulnerable patients who sought to escape addiction through legitimate treatment,” said United States Attorney Andrew E. Lelling.

“Distributing illegally imported prescription drugs of unknown origin and ingredients instead of FDA-approved drugs places the U.S. public health at risk,” said Special Agent in Charge Jeffrey J. Ebersole, FDA Office of Criminal Investigations New York Field Office. “We will continue to work with our law enforcement partners and bring to justice those who attempt to subvert FDA requirements, which are designed to ensure the safety and quality of drugs distributed to American consumers.”

According to the indictment, Shafa was a psychiatrist who owned and operated Novel Psychopharmacology in Milford and Natick and Tormosi Shafa was the office manager. From approximately January 2008 through January 2018, Shafa and Tormosi Shafa engaged in an international money laundering scheme to purchase naltrexone pellet implants, disulfiram pellet implants and disulfiram injections from Hong Kong. Disulfiram is used to treat alcohol dependence and naltrexone is used to treat alcohol and opioid dependence. Disulfiram and naltrexone are approved by the FDA in certain forms; however, the forms of the drugs that Shafa and Tormosi Shafa allegedly purchased are not approved by the FDA. Shafa and Tormosi Shafa offered these drugs for sale to patients of Novel.

It is further alleged that Shafa engaged in a conspiracy to defraud the United States by falsifying shipping documents to make the packages containing the drugs shipped from Hong Kong to Shafa in Massachusetts look like lawful imports. For example, packages containing naltrexone pellet implants were falsely declared as ‘plastic beads in plastic tubes’ in shipping documents.

“We will continue to work with our law enforcement partners to ensure that all medical providers properly follow healthcare rules and regulations,” said Phillip M. Coyne, Special Agent in Charge, Office of Inspector General of the U.S. Department of Health and Human Service’s Boston Regional Office. “I appreciate the partnership with the Massachusetts U.S Attorney's Office in identifying and prosecuting this type of fraud.”

The charges of money laundering and money laundering conspiracy provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000.  The charge of conspiracy to defraud provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of importing merchandise contrary to law provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charge of receiving and delivering a misbranded drug with an intent to defraud and mislead provides for a sentence of up to three years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Lelling; FDA-OIC SAC Ebersole; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; HHS-OIG SAC Coyne; and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Worcester Branch Office is prosecuting the case.

The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – A former employee of William “Rick” Singer’s “The Key” for-profit business has agreed to plead guilty in connection with her involvement in a scheme to use bribery and fraud to facilitate the admission of applicants to colleges nationwide.

Mikaela Sanford, 34, of Folsom, Calif., will plead guilty to one count of conspiracy to commit racketeering. A plea hearing has not yet been scheduled. According to the terms of the plea agreement, the government will recommend a sentence at the low end of the sentencing guidelines, one year of supervised release, a fine, forfeiture in the amount of $67,062 and restitution.

According to the superseding indictment, Sanford, who was employed by “The Key,” took online classes for students so that the students could submit the grades Sanford earned in their names as part of their application packages to college and universities. In other instances, Sanford helped fabricate athletic “profiles” and other documents to bolster students’ college applications by making the students appear to be highly successful high school athletes when, in fact, they were not. 

Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.

The charge of racketeering conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright and Kristen A. Kearney, Karin M. Bell and Stephen E. Frank of Lelling’s Criminal Division are prosecuting the case.

The details contained in the charging documents are allegations. The remaining defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – A Boston man was arrested yesterday and charged in connection with operating a drug trafficking organization and with a July 1, 2017 shooting in Boston.

Mujab Jihad Mubarak, a/k/a “Big Homie,” a/k/a “Easy,” a/k/a “E,” was charged in a criminal complaint with one count of conspiring to distribute and possess with intent to distribute heroin and fentanyl and one count of use and possession of a firearm in connection with a drug trafficking crime. Mubarak will make an initial appearance today at 2:30 before Magistrate Judge Judith Dein.

According to charging documents, Mubarak was responsible for a large drug trafficking organization and employed multiple lower-level co-conspirators as part of his distribution network. The court documents detail Mubarak’s operation and recount over 20 recorded purchases made by a cooperating witness. 

Mubarak was allegedly captured on a recording discussing a 2017 shooting incident where a former co-conspirator of Mubarak was targeted because Mubarak believed the co-conspirator had stolen money. Mubarak explained that the co-conspirator was transporting cash through Logan Airport on behalf of Mubarak’s drug trafficking organization and the co-conspirator claimed that the money was seized by police, which was in fact true. When the co-conspirator failed to provide proof of the seizure, Mubarak stated on the recording that he located the co-conspirator and shot him. According to court documents, police and medical records showed that the police responded to a shooting where the co-conspirator was shot and admitted to the hospital with a gunshot wound.

The charge of conspiring to distribute and possess with intent to distribute controlled substances provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $1 million. The charge of using and possessing of a firearm in connection with a drug trafficking crime provides for a sentence of no less than five years and up to life in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement. The Boston Police Department also provided valuable assistance. Assistant U.S. Attorneys Glenn A. MacKinlay and Philip A. Mallard of Lelling’s Organized Crime and Gang Unit are prosecuting the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – A former member of the Boston-based Morton Street Bricks Chapter of the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) pleaded guilty yesterday to racketeering charges.

Oscar Pena, a/k/a “King DO-Block,” 29, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Nov. 17, 2020. Pena was arrested and charged in December 2019, at which time he was a member of the Morton Street Bricks (also known as “MSB”), a Boston-based Chapter of the Latin Kings.

The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.

Named for the Morton Street housing project in Boston, the MSB Chapter of the Latin Kings included approximately half-a-dozen members. The MSB Chapter, in turn, reported to the Massachusetts State Leadership of the Latin Kings, providing information, structure, funds and other resources to further the Latin Kings goals and directives in the state. In addition to conspiring with members of the Latin Kings to further the goals of the enterprise through the commission of criminal acts, Oscar Pena personally sold a cooperating witness approximately 38 grams of fentanyl.

In December 2019, a federal grand jury issued an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Oscar Pena is the fifth defendant to plead guilty in the case.

The RICO conspiracy charge provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and Boston Police Commissioner William Gross made the announcement. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices.  Assistant U.S. Attorneys Philip A. Mallard and Mark Grady of Lelling’s Criminal Division are prosecuting the case.

The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – A Rhode Island man was sentenced today for sending a series of violent and threatening e‑mails to a Massachusetts professor and a university.

Matthew Haviland, 30, of North Kingstown, R.I., was sentenced by U.S. District Court Judge Leo T. Sorokin to 21 months in prison and three years of supervised release. In September 2019, Haviland pleaded guilty to one count of stalking and two counts of transmitting a threat in interstate commerce. Haviland was charged in April 2019.    

“The Constitution protects everyone’s right to free speech, but there is a hard line between free speech and the stalking and harassment committed in this case. My office will enforce that line,” said United States Attorney Andrew E. Lelling.  “Today’s sentence affirms that these are serious crimes that warrant punishment.”

“Today’s sentence cannot atone for the fear that Matthew Haviland caused, and the sense of security his victims lost, but it does hold him accountable for sending dozens of rage-filled emails threatening horrific acts of violence,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “The FBI will vigorously protect every individual’s constitutional right to free speech but we will not allow anyone to hide behind the internet and put others in fear for their lives.”

Over the span of several hours on March 10, 2019, Haviland sent a Massachusetts professor a string of approximately 28 e-mails containing messages that included such threats as, “I will rip every limb from your body and eat it, piece by piece,” “I will bite through your eyeballs while you’re still alive, and I will laugh while you scream,” and  “I will torture you relentlessly until the end of time … [and] feed your body to pigs again and again….”  The professor to whom Haviland sent the threats has published and spoken in favor of abortion rights, and several of Haviland’s e‑mails made reference to abortion. In two successive e-mails, for example, Haviland wrote, “You will be held accountable for every f****** baby you murdered through your horrible deception of they are not humans” and “You will have your face ripped off and eaten by me, personally. I will enjoy raping your body after you’re dead. And that will only be the start.”

Haviland also sent several e-mails on March 15, 2019 to a professional school at the professor’s university. Those e-mails included the message: “You people are Evil, putrid, and somebody shoudl [sic] BOMB your school for spreading the idea that it’s okay to HATE people because of their race.” A later e-mail to the professional school said only, “You should be Murdered in cold blood.”

United States Attorney Lelling and Boston FBI SAC Bonavolonta made the announcement today. Boston FBI’s Joint Terrorism Task Force conducted the investigation with the assistance of the Warwick and North Kingstown (RI) Police Departments. Assistant U.S. Attorney William F. Bloomer of Lelling’s National Security Unit prosecuted the case.

BOSTON – A Cambridge man pleaded guilty today to firearms trafficking charges related to six separate sales.

Ezequiel Netzahualt, 25, pleaded guilty to dealing firearms without a license and selling cocaine base, commonly known as crack cocaine. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Dec. 2, 2020. Netzahualt was charged in February 2020.

Netzahualt sold 11 firearms in Cambridge during six separate transactions between October 2019 and January 2020. Netzahualt also sold crack cocaine on Nov. 20, 2019.

The charge of dealing in firearms without a license provides for a sentence of up to five years in prison, three years of supervised release and a $250,000 fine. The charge of distribution of a controlled substance provides for a sentence of up to 20 years in prison, up to a lifetime of supervised release and a $1 million fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boson Field Office; and Cambridge Police Commissioner Branville G. Bard Jr. made the announcement today. Assistant U.S. Attorney Evan Gotlob of Lelling’s Major Crimes Unit is prosecuting the case.

BOSTON – A Boston man pleaded guilty today in federal court in Boston to being a felon in possession of a firearm.

Khyeme Johnson, 33, pleaded guilty to one count of being a felon in possession of a firearm and ammunition before U.S. Senior District Court Judge George A. O’Toole Jr, who scheduled sentencing for Nov. 9, 2020. Johnson was indicted in April 2019.

On Aug. 24, 2018, Johnson was found in possession of an Arcadia Machine & Tool .380 semiautomatic pistol with two rounds of ammunition. Johnson is prohibited from possessing a firearm due to multiple prior felony convictions.

Johnson faces a sentence of up to 10 years in prison, up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling and Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division, made the announcement today. Valuable assistance was provided by the Suffolk County District Attorney’s Office and the Boston Police Department. Assistant U.S. Attorney Chris Looney of Lelling’s Criminal Division is prosecuting the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

BOSTON – A Boston man pleaded guilty today to being a felon in possession of a firearm.

Naysaan Austin, 23, pleaded guilty via videoconference to one count of being a felon in possession of a firearm before U.S. District Court Judge Patti B. Saris, who scheduled sentencing for Nov. 12, 2020. Austin was arrested on Sept. 19, 2019, and charged by criminal complaint.

On June 16, 2019, Austin was arrested in Dorchester for carrying a Sig Sauer .22 caliber Mosquito Pistol loaded with five rounds of ammunition. The serial number on the gun was obliterated. Austin is prohibited from possessing a firearm due to prior convictions punishable by more than one year in prison.

The charging statute provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Boston Police Commissioner William G. Gross made the announcement. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Criminal Division is prosecuting the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

United States Attorney Andrew E. Lelling announced today that the YWCA Central Massachusetts received over $370,000 from the Justice Department’s Office of Justice Programs to provide safe, stable housing and appropriate services to victims of human trafficking.

“Human trafficking is a barbaric criminal enterprise that subjects its victims to unspeakable cruelty and deprives them of the most basic of human needs, none more essential than a safe place to live,” said Attorney General William P. Barr. “Throughout this Administration, the Department of Justice has fought aggressively to bring human traffickers to justice and to deliver critical aid to trafficking survivors. These new resources, announced today, expand on our efforts to offer those who have suffered the shelter and support they need to begin a new and better life.”

“Doing justice means supporting the survivors of human trafficking, not just prosecuting the criminals who victimize them,” said United States Attorney Lelling. “The YWCA Central Massachusetts is doing righteous work by equipping survivors with the resources and help they need to rebuild their lives.”

The grant will provide six to 24 months of transitional or short-term housing assistance to the trafficking victims, including rental, utilities or related expenses, such as security deposits and relocation costs. The grant will also provide funding for support needed to help victims locate permanent housing, secure employment, as well as occupational training and counseling. The YWCA Central Massachusetts is among 73 organizations receiving more than $35 million in grants from the Office for Victims of Crime to support housing services for human trafficking survivors. 

“Human traffickers dangle the threat of homelessness over those they have entrapped, playing a ruthless game of psychological manipulation that victims are never in a position to win,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “These grants will empower survivors on their path to independence and a life of self-sufficiency and hope.”

Human trafficking offenses are among the most difficult crimes to identify, and the scope of human trafficking victimization may be much greater than the limited data reflect. A new report issued by the National Institute of Justice found that the number of human trafficking cases captured in police reports may represent only a fraction of all such cases. Expanding housing and other services to trafficking victims remains a top Justice Department priority.

For a complete list of individual award amounts and jurisdictions that will receive funding, visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/htvictimsfactheet.pdf.

A Dominican national who previously resided in Lynn was sentenced today in connection with using the identity of a U.S. citizen.

Yohnny Peguero Villalona, 33, was sentenced by U.S. District Court Judge Indira Talwani to two years and one day in prison, one year of supervised release and ordered to pay restitution of $17,220. In March 2020, Peguero Villalona pleaded guilty to one count of false representation of a Social Security number, one count of aggravated identity theft and one count of making a false statement relating to a health care benefit program. Peguero Villalona was arrested in December 2019 and has been detained since that time.

Peguero Villalona used the name and identifiers of a U.S. citizen for at least 13 years, including to obtain a Massachusetts driver’s license and to apply for MassHealth benefits. When he was arrested on unrelated charges, Peguero Villalona used the identity of this U.S. citizen.  Fingerprints taken during the booking process following the prior arrest of Peguero Villalona matched fingerprints showing him to be a citizen of the Dominican Republic. During a search of Peguero Villalona’s residence, a Massachusetts driver’s license and a MassHealth card under the name of the U.S. citizen whose identity Peguero Villalona had fraudulently assumed, were recovered.

United States Attorney Andrew E. Lelling; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Phillip M. Coyne, Special Agent in Charge of the U.S. Department of Health & Human Services, Office of Inspector General made the announcement today.  Valuable assistance was provided by the Social Security Administration, Office of Inspector General, Office of Investigations; U.S. Postal Inspection Service; U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; U.S. Department of State, Diplomatic Security Service; U.S. Department of Housing and Urban Development, Office of Inspector General; U.S. Department of Labor, Office of Inspector General; and the Lynn Police Department. Assistant U.S. Attorney Bill Abely, Deputy Chief of Lelling’s Major Crimes Unit, prosecuted the case.

BOSTON – A Boston man was sentenced today in federal court in Boston for being a felon in possession of a firearm and ammunition.

Christian Teixeira, 34, pleaded guilty to one count of being a felon in possession of a firearm and ammunition and was then sentenced by U.S. District Court Judge Allison D. Burroughs to 43 months in prison and three years of supervised release.

On May 2, 2019, while in Fall River, Teixeira was found in possession of a KAHR PM9, 9mm semi-automatic handgun, and 26 rounds of 9mm ammunition. Teixeira has a prior felony conviction that prohibits him from possessing firearms or ammunition.

United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Bristol County District Attorney Thomas M. Quinn; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Fall River Police Chief Jeffrey Cardoza made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Lelling’s Organized Crime and Gang Unit prosecuted the case.

This prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.