District of Massachusetts
Press releases recorded for this federal judicial district.
Four Charged with Fentanyl Trafficking and Gun SalesRead the Press Release
BOSTON – Four individuals were arrested today on charges that they distributed large quantities of fentanyl throughout southeastern Massachusetts.
Filomeno Monteiro, 30, of Brockton; Christina Collins, 18, of Brockton; Eric Marques, 29, of Brockton; and Chayia Chan, 28, of Lynn, were charged in three separate drug trafficking and firearm indictments.
Specifically, Monteiro and Collins were charged with conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl as well as three counts of distribution of fentanyl. Monteiro was also charged with being a felon in possession of a firearm. Marques and Chan were each charged with distribution of 40 grams of more of fentanyl.
The charge of conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl provides for a mandatory minimum sentence of five years and a maximum term of 40 years in prison, a minimum of four years of supervised release and a fine of up to $5 million. The charge of distribution of fentanyl provides for a penalty of up to 20 years in prison, up to three years of supervised release and a fine of up to $1 million. The charge of being a felon in possession of a firearm and ammunition provides for a penalty of up to 10 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 on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Brockton Police Chief Emanuel Gomes; John Gibbons, U.S. Marshal for the District of Massachusetts; and Plymouth County District Attorney Timothy Cruz, made the announcement today. Assistant U.S. Attorney Christopher Pohl of Lelling’s Narcotics and Money Laundering Unit is prosecuting these cases.
The details contained in the indictments are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Parent in College Admissions Case Pleads GuiltyRead the Press Release
BOSTON – A parent in the college admissions case has pleaded guilty today in federal court in Boston.
David Sidoo, 60, of Vancouver, Canada, pleaded guilty before U.S. District Court Judge Nathaniel M. Gorton who scheduled sentencing for July 15, 2020. Sidoo pleaded guilty to one count of conspiracy to commit mail and wire fraud. As part of the plea, Sidoo has agreed to a sentence that includes 90 days in prison and a $250,000 fine.
In 2011, Sidoo agreed to pay $100,000 to have a co-conspirator, Mark Riddell, secretly take the SAT in place of his older son. The following year, Sidoo agreed to pay $100,000 to have Riddell take the SAT in place of his younger son.
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 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. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit 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.
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Boston Man Convicted of Armed Robbery of Brockton Cellular Phone Store and Shooting at PoliceRead the Press Release
BOSTON – A Boston man was convicted yesterday by a federal jury in relation to an armed robbery of a T-Mobile store in Brockton, where multiple gunshots were fired at Brockton Police Officers during a high-speed chase.
A jury convicted Diovanni Carter, 30, of Boston, yesterday of conspiracy to commit a robbery affecting interstate commerce, robbery affecting interstate commerce, and use and carrying, brandishing and discharge of a firearm during and in relation to the robbery. U.S. District Court Judge Allison Burroughs scheduled sentencing for July 7, 2020.
According to the trial testimony, on Jan. 26, 2019, Diovanni Carter orchestrated a plan with three other men to rob a T-Mobile store in Brockton. Diovanni Carter drove the group from Boston to Brockton. When they arrived, the three men went into the store carrying semi-automatic firearms that they pointed at the store manager, demanding cash and electronics, while Diovanni Carter waited in the getaway vehicle. During the robbery, the store manager was struck in the head with the firearm. The three men stole approximately $25,000 in cash and electronics, left the store, and entered the getaway vehicle driven by Diovanni Carter.
Brockton Police responded and located the getaway vehicle. A high speed chase ensued through residential neighborhoods reaching speeds of over 70 mph. During the chase, Diovanni Carter ordered the other men in the car to fire their weapons at the pursuing police cruisers as part of their effort to escape. In total, at least eight rounds were fired at the police. The suspects then abandoned the car nearby and ran on foot.
During the search by law enforcement, the stolen phones and cash and the three firearms used in robbery were recovered. Darius Carter, Stephan Rosser-Steward and a third man were apprehended shortly after the robbery. They were wearing clothes consistent with those worn in store video surveillance. Diovanni Carter was not apprehended that night.
Through the investigation, a warrant was obtained for Diovanni Carter’s arrest, and he remained a fugitive from state charges until March 5, 2019, when he was apprehended.
The charge of interference with commerce by robbery provides for a sentence of up to 20 years in prison, five years of supervised release and a fine of up to $ 250,000. The charge of being a felon in possession of ammunition provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of up to $250,000. The charge of use of a firearm during the commission of a crime of violence provides for a sentence of up to life in prison, and a mandatory consecutive term of imprisonment ranging from: five years for the possession of a firearm, seven years for the brandishing of a firearm and 10 years for the discharge of a firearm. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Lelling; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Christopher S. Mason, Superintendent of the Massachusetts State Police; Plymouth County District Attorney Timothy Cruz; Plymouth County Sheriff, Joseph D. McDonald, Jr.; and Brockton Police Chief Emanuel Gomes, made the announcement. AUSA Glenn MacKinlay Chief of Lelling’s Organized Crime and Gang Unit and AUSA Philip Mallard of the Organized Crime and Gang Unit prosecuted the case. Members of the Quincy Police and Boston Police also provided valuable assistance to the investigation.
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Dominican National Sentenced for False Identity CrimeRead the Press Release
Boston – A Dominican national, formerly residing in Lawrence, was sentenced to 12 months in prison in federal court in Boston today for his conviction for false representation of a Social Security number.
Santo Pascual Soto Diaz, 39, pleaded guilty in December to false representation of a Social Security number before U.S. District Court Judge Richard G. Stearns. Soto Diaz was sentenced to 12 months in prison to be followed by one year of supervised release. He is also subject to deportation proceedings upon completion of his sentence.
On April 12, 2016, Soto Diaz falsely represented that a Social Security number was his in an application for an identification card at the Massachusetts Registry of Motor Vehicles. In connection with the application, Soto Diaz provided various documents, including a Social Security card, in order to obtain the Massachusetts identification.
United States Attorney Andrew E. Lelling; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. Assistant U.S. Attorney Sandra S. Bower of Lelling’s Major Crimes Unit prosecuted the case.
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Dominican National Pleads Guilty to Distributing FentanylRead the Press Release
BOSTON – A Dominican national was pleaded guilty today in federal court in Boston to distributing fentanyl.
Rosario Lara, 37, a Dominican national formerly residing in Lawrence, pleaded guilty today before U.S. District Court Judge William G. Young who scheduled sentencing for July 9, 2020. Lara admitted to distributing cocaine and more than 400 grams of fentanyl.
Lara sold more than a half-kilogram of fentanyl to a confidential informant in Lawrence on Feb. 21, 2019.
Lara faces up to 10 years in prison, to be followed by up to five years of supervised release and a fine of $10 million. Lara will be subject to deportation upon completion of his sentence. 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 today. Valuable assistance was provided by the Middlesex District Attorney’s Office, Massachusetts State Police and Lawrence Police Department. Assistant U.S. Attorney Bill Abely, Deputy Chief of Lelling’s Major Crimes Unit, prosecuted the case.
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Convicted Felon from Clinton Indicted for Possession with Intent to Distribute Kilogram of CocaineRead the Press Release
BOSTON - A Clinton man previously convicted in a federal court of cocaine conspiracy was indicted today for again committing cocaine offenses.
Emmanuelli Rojas-Moraza, 40, was indicted for possession with intent to distribute 500 grams or more of cocaine and use of a communications facility in connection with a narcotics offense. According to the indictment, Rojas-Moraza used the U.S. mail to facilitate his cocaine offense.
Because Rojas-Moraza has a prior drug conviction, the charge of possession with intent distribute 500 grams of cocaine provides for a sentence of 10 years to life in prison, a term of supervised release of eight years to life and a fine of $8 million. The communications facility charges provides for a sentence of up to eight years in prison, a term of supervised release of up to three years 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; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service; and Chief Mark R. Laverdure of the Clinton Police Department and made the announcement. 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 defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Attleboro Man Arrested on Child Pornography ChargesRead the Press Release
BOSTON – An Attleboro man has been charged with allegedly using Snapchat to engage in sexually explicit video-chats with minor children. He was also allegedly in possession of videos depicting children, 3-6 years old, being sexually abused.
Garry F. Bienvenue, 57, of Attleboro, was arrested and charged today in federal court in Boston with receipt and possession of child pornography. He appeared in federal court in Boston and was ordered detained pending a detention hearing set for March 16th at 2:00 p.m.
According to court documents, law enforcement learned that an internet user at Bienvenue’s Attleboro home had solicited and received child pornography from children over the internet using the Snapchat messaging application. A search of the home resulted in the seizure of Bienvenue’s smartphone, which was found to contain child pornography videos, including one depicting the rape of a child as young as 3-5 years old.
The charge of receipt of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison. The charge of possession of child pornography provides for a sentence of up to 10 years in prison. Each charge also provides for a mandatory minimum of five years and up to a lifetime 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; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Attleboro Police Chief Kyle P. Heagney made the announcement today. Assistant U.S. Attorney Elianna Nuzum of Lelling’s Major Crimes Unit is prosecuting the case.
The case was 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Holbrook Man Sentenced to Federal Prison for Heroin and Cocaine Base DistributionRead the Press Release
BOSTON – A Holbrook resident was sentenced yesterday for distribution of heroin and cocaine base.
Allah Mallory a/k/a “Parod,” 43, was sentenced by U.S. District Court Judge Rya W. Zobel to 18.5 months in prison, to be followed by three years of supervised release. Judge Zobel ordered that the sentence run concurrently with a state prison sentence of 16 to 18 years, imposed in September 2019 in Plymouth Superior Court, for gun and drug charges.
In November 2019, a federal jury found that on July 9, 2018, Mallory distributed heroin and cocaine base to a cooperating witness in Brockton.
The case was part of Operation Landshark, a federal investigation that targeted impact players and repeat offenders in Brockton and Boston, each who have prior convictions for acts of violence, firearm offenses and/or drug trafficking. It is alleged that many of the Operation Landshark targets are in the top 30 criminal offenders responsible for violent acts and firearms in Brockton.
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; Plymouth County District Attorney Timothy J. Cruz; Suffolk County District Attorney Rachael Rollins; Boston Police Commissioner William G. Gross; and Brockton Police Chief Emanuel Gomes, made the announcement. The investigation was conducted by the FBI’s North Shore Gang Task Force and Southeastern Massachusetts Gang Task Force. Valuable assistance was provided by the Suffolk County Sheriff’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Plymouth and Essex County Sheriff’s Offices; Massachusetts Department of Corrections; U.S. Parole Commission; U.S. Postal Inspection Services; and the U.S. Secret Service.
Operation Landshark was 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. 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.
Guatemalan National Pleads Guilty and is Sentenced on Illegal Reentry ChargeRead the Press Release
BOSTON - A Guatemalan national, previously convicted of kidnapping and murder in the 1990’s in California, pleaded guilty today and was sentenced in federal court in Boston with illegal reentry.
Ingrid Corzo-Armas, a/k/a Ingrid Sanchez, 49, who formally resided in Lynn, pleaded guilty today to one count of illegal reentry. Corzo-Armas was arrested by Immigration and Customs Enforcement on Feb. 17, 2020, and has remained in the custody since that time. Following her plea today, U.S. District Court Judge F. Dennis Saylor, sentenced Corzo-Armas to time-served (one month) to be followed by three years of supervised release. Upon completion of her sentence, Corzo-Armas will be placed into removal proceedings and deported to Guatemala.
In 1993, Corzo-Armas was convicted in California of kidnapping and murder and sentenced to prison. While serving her sentence in a California prison she was encountered by immigration officials, placed into removal proceedings, and after a hearing in Immigration Court, was ordered removed. Corzo-Armas completed her sentence, and on June 15, 1999, she was deported to Guatemala. Sometime after her removal, Corzo-Armas illegally reentered the United States, and was living in Lynn under the alias, Ingrid Sanchez. On Feb. 17, 2020, immigration officials encountered Corzo-Armas in Lynn and, through the use of fingerprints, established her true identity. Corzo-Armas was later interviewed, confirmed her true identity, admitted to her prior removal, and that she had illegally reentered the United States.
United States Attorney Andrew E. Lelling; Jason Molina, Acting Special Agent in Charge, Homeland Security Investigations in Boston; and Todd Lyons, Acting Field Director, Enforcement and Removal Operations, U.S. Immigration and Customs Enforcement in Boston made the announcement today. Assistant U.S. Attorney Kenneth G. Shine, of Lelling’s Major Crimes Unit is prosecuting the case.
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Dominican National Sentenced for False Identity CrimeRead the Press Release
Boston – A Dominican national residing in Boston was sentenced to 15 months in prison in federal court in Boston today after being convicted of false representation of a Social Security number.
Altagracia Baez Guerrero, 27, pleaded guilty last month to false representation of a Social Security number before U.S. District Court Judge Richard G. Stearns who sentenced Baez Guerrero to 15 months in federal prison to be followed by one year of supervised release.
On March 14, 2016, Baez Guerrero falsely represented that a Social Security number was hers in an application for a learner’s permit at the Massachusetts Registry of Motor Vehicles. The victim whose identity was stolen told law enforcement that she had never visited, lived in, or worked in Massachusetts. The victim learned in 2018 that W-2s in her identity were issued for income earned at two different Massachusetts businesses the previous year. Based on information provided by one of the businesses, the victim learned that the imposter had provided a home address in Dorchester, which was the same address that the defendant used when applying for the learner’s permit.
United States Attorney Andrew E. Lelling; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. Assistant U.S. Attorney Sandra S. Bower of Lelling’s Major Crimes Unit prosecuted the case.Springfield Man Sentenced to 15 Years for Conspiring to Distribute HeroinRead the Press Release
BOSTON – A Springfield man was sentenced today in federal court in Springfield in connection with his role in a large-scale drug conspiracy that trafficked dozens of kilos of heroin into Springfield from Bronx, N.Y. and the Dominican Republic.
Alberto Marte, 35, was sentenced to 15 years in prison after pleading guilty to one count of conspiring to distribute and possess with intent to distribute more than one kilogram of heroin; six counts of distribution of heroin; one count of conspiracy to distribute more than one kilogram of fentanyl; and one count of unlawful possession of a firearm. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for June 29, 2020.
Marte operated a heroin mill at 152 Lebanon Street in Springfield where his co-conspirators packaged kilograms of heroin for retail distribution for a drug trafficking organization based in Springfield. The organization had direct contact with heroin supply sources in the Dominican Republic. On a monthly basis, members of the organization transported between eight and 20 kilograms of heroin to the Springfield area. Marte and 12 others have pleaded guilty to, or have been found guilty of, crimes resulting from their roles in the organization.
A search of Marte’s home and vehicles on Sept. 22, 2016 resulted in the discovery of three kilograms of heroin hidden in an aftermarket compartment in a vehicle and three firearms. On the same date 1.7 kilograms of heroin and evidence of an active heroin mill were also discovered during searches at additional locations.
United States Attorney Andrew E. Lelling; Hampden County District Attorney Anthony D. Gulluni; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Division; Jason Molina, Acting Special Agent in Charge, Homeland Security Investigations in Boston; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Springfield Police Commissioner Cheryl Claprood; Chicopee Police Chief William R. Jebb; Holyoke Police Chief Manny Febo; and West Springfield Police Chief Paul Connor made the announcement today.
Assistant U.S. Attorney Neil L. Desroches of Lelling’s Springfield Branch Office prosecuted the case.
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Springfield Man Pleads Guilty to Damaging a Postal Vehicle and Stealing MailRead the Press Release
BOSTON – A Springfield man pleaded guilty today in federal court in Springfield for theft of United States mail and destruction of government property.
Jose Luis Sanchez, 45, pleaded guilty before U.S. District Court Judge Mark G. Mastroianni who scheduled sentencing for June 11, 2020. Luis Sanchez admitted that on Aug. 16, 2017 he broke into a postal vehicle and stole mail that was inside.
The maximum sentence for stealing mail is up to five years in prison, to be followed by up to three years of supervised release and a fine of up to $250,000. The offense of causing damage to government property is punishable by up to one year in prison to be followed by up to one year of supervised a release and a $100,000 fine.
United States Attorney Andrew E. Lelling; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service; and Springfield Police Commissioner Cheryl Clapprood made the announcement today. Assistant U.S. Attorney Neil L. Desroches of Lelling’s Springfield Branch Office is prosecuting the case.
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Rhode Island Man Pleads Guilty to Bank RobberyRead the Press Release
BOSTON – A Rhode Island man pleaded guilty today in federal court in Boston to five counts of bank robbery.
Charles Lamont Wheeler, 47, pleaded guilty to a Superseding Information charging him, and a co-defendant, Dong Lee, with five counts of bank robbery. U.S. District Court Judge Richard G. Stearns scheduled sentencing for July 13, 2020. Lee is scheduled to plead guilty on March 11, 2020.
Between Sept. 8, 2018 and Sept. 14, 2018 five banks in the Greater Boston area were robbed. Based on the similarity of the robberies, and the descriptions of the robbers provided by bank tellers, it was determined that the same two individuals were responsible for these robberies. On Sept. 14, 2018, Lee and Wheeler robbed a branch of the Crescent Credit Union in Brockton and were both arrested following a high-speed car chase in Attleboro.
Following an interview and review of banks’ surveillance tapes, it was determined that Wheeler and Lee, were responsible for the robberies of the Santander Bank in Andover on Sept. 8, 2018; Berkshire Bank in Boston on Sept. 8, 2018; Rockland Trust in Braintree on Sept. 12, 2018; Abington Savings Bank in Avon on Sept. 14, 2018; and Crescent Credit Union in Brockton on Sept.14, 2018.
Each charge of bank robbery provides for a sentence of up to 20 years’ in prison, three years of supervised release, a fine of up to $250,000 and restitution in the amount of $11,250.
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; Commissioner William G. Gross of the Boston Police Department; Chief Emanuel Gomes of the Brockton Police Department; Chief Jeffrey J. Bukunt of the Avon Police Department; Chief Mark W. Dubois of the Braintree Police Department; and Chief Patrick Keefe of the Andover Police Department made the announcement today. The case is being prosecuted by Assistant United States Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit.
Dominican National Pleads Guilty to Identity Theft ChargesRead the Press Release
BOSTON – A Dominican national pleaded guilty today in connection with using the identity of a U.S. citizen.
Yohnny Peguero Villalona, 33, a Dominican national who formerly resided in Lynn, 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. Sentencing is scheduled for July 8, 2020. 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.
The charges of false representation of a Social Security number and false statement relating to a health care benefit program provide for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a two-year sentence to be served consecutively to any other sentence, as well as up to one year 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; Jason Molina, 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, is prosecuting the case.
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Two Lynn Men Plead Guilty to Drug and Firearm PossessionRead the Press Release
BOSTON – Two Lynn men pleaded guilty today in federal court in Boston in connection with drug and firearm charges.
Carlos Lopez, aka “C-Lo,” 31, pleaded guilty to one count of possession with intent to distribute heroin and marijuana, one count of being a felon in possession of firearms and ammunition and one count of possession of firearms in furtherance of drug trafficking crimes. Dionis Lopez, aka “Kuku,” 29, pleaded guilty to one count of possession with intent to distribute fentanyl, cocaine and marijuana, one count of possession of a firearm with an obliterated serial number and one count of possession of firearms in furtherance of drug trafficking crimes. U.S. Senior District Court Judge Douglas P. Woodlock scheduled sentencing for July 13, 2020. The defendants were arrested and charged in September 2018.
On Nov. 14, 2017, Carlos Lopez possessed and intended to distribute heroin and marijuana while in possession of a Bersa, Model Thunder 380, .380 caliber pistol and a Beretta, Model Px4, 9mm pistol with various rounds of 9mm ammunition. Due to a previous conviction for a crime punishable by more than one year in prison, Carlos Lopez was prohibited from possessing a firearm or ammunition. Dionis Lopez possessed and intended to distribute fentanyl, cocaine and marijuana while in possession of a Glock, Model 27, .40 caliber pistol with an obliterated serial number and a Glock, Model 19, 9 mm pistol.
The charge of possession with intent to distribute heroin and marijuana 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 $1 million. The charge of being a felon in possession of firearms and ammunition provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charge of possession of firearms in furtherance of drug trafficking crimes provides for a mandatory sentence of five years in prison to be served consecutive to any other term imposed and up to three years of supervised release. The charge of possession of a firearm with an obliterated serial number 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 on 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; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Lynn Police Chief Michael Mageary made the announcement today. Assistant U.S. Attorney Timothy Moran, Deputy Chief of Lelling’s Organized Crime and Gang Unit is prosecuting the case.
Holyoke Resident Pleads Guilty to Heroin DistributionRead the Press Release
BOSTON – A Holyoke man pleaded guilty today in federal court in Springfield to distributing heroin.
Alexis Santana, 18, pleaded guilty to an Indictment charging him with distributing and possessing with intent to distribute heroin. Judge Mark G. Mastroianni scheduled sentencing for June 30, 2020.
According to court records, Santana sold heroin on Oct. 7, 2019 in Holyoke.
The charge of distributing and possessing with intent to distribute heroin provides for a sentence of up to 20 years in prison, to be followed by at least three years of supervised release and a $1 million dollar fine.
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.
Florida Man Charged in Connection with Skimming Devices Installed at New England Gas StationsRead the Press Release
BOSTON – A Florida man was arrested today on federal charges arising from his alleged participation in a scheme to install electronic skimming equipment at gas stations across New England, stealing thousands of customers’ debit and credit card account numbers.
Luis Angel Naranjo Rodriguez, 29, of Hialeah, Florida, was charged with one count of possessing 15or more counterfeit access devices (debit and credit card account numbers) and one count of possession of device-making equipment (skimming devices).
Naranjo Rodriguez was arrested in Concord, Mass. on Nov. 17, 2019 after Concord Police found him at a closed gas station standing next to an unlocked gas pump with keys in the lock. According to court documents, officers searched Naranjo Rodriguez and the vehicle next to which he was found, and discovered multiple skimming devices and additional gas pump keys. Officers also searched Naranjo Rodriguez’s hotel room. A review of the devices seized from the vehicle and hotel room resulted in the discovery of more than 5,600 account numbers that appeared to have been stolen via skimming devices. It is alleged that this scheme involved the theft of account information via skimming devices installed at gas stations in Lynnfield, Concord, Malden, Taunton, Randolph and Raynham, Mass., Portland, Maine, Nashua, N.H. and Willington, Conn.
The charging statute for using a counterfeit access device provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. The charge of possessing device-making equipment provides for a sentence of up to 15 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 Thomas P. Baker, Acting Special Agent in Charge of the United States Secret Service, Boston Field Office made the announcement. Special assistance was provided by the Concord, Lunenburg and Raynham Police Departments in Massachusetts, the Nashua Police Department (New Hampshire) and the Portland Police Department (Maine). Assistant U.S. Attorneys Bill Abely and Fred Wyshak, III are prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Scottish Man Charged with Obstruction of JusticeRead the Press Release
BOSTON – A Scottish man was charged yesterday in federal court in Boston with obstructing a federal investigation.
Gavin MacPhee, 34, was charged with destruction, alteration, or falsification of records in a federal investigation. A plea hearing has not yet been scheduled by the court.
According to charging documents, MacPhee used his access to his former employer’s webmail and information technology platform to delete an email account and other files related to an ongoing criminal investigation. A search at the company’s corporate headquarters was executed in October 2019. Thereafter, with full knowledge of the federal investigation and the relevance of those materials, MacPhee allegedly deleted at least one email account for an individual who had since left the company, and with whom he had a close relationship.
The charging statute provides for a sentence of 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; Jason Molina, Acting Special Agent in Charge, Homeland Security Investigations in Boston; 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; and William B. Gannon, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security Service, Boston Field Office made the announcement today. Valuable assistance was also provided by the United States Citizenship and Immigration Services, Fraud Detection and National Security Unit in Vermont. HSI’s Document and Benefit Fraud Task Force, a specialized investigative group comprised of various local, state and federal agencies, conducted this investigation. Assistant U.S. Attorney Jordi de Llano, Deputy Chief of Lelling’s Securities & Financial Fraud Unit, and Assistant U.S. Attorney Mackenzie Queenin of Lelling’s Cybercrime Unit are 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.
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Man Traveling from the Dominican Republic Arrested after Presenting False Passport at Boston Logan AirportRead the Press Release
BOSTON – A man traveling from the Dominican Republic under an assumed identity was arrested yesterday for attempting to enter the United States using a false U.S. passport.
The defendant, whose identity has not yet been confirmed and who was charged as John Doe, was charged with misuse of a passport and is being held pending a detention hearing scheduled for March 12, 2020.
According to charging documents, the defendant arrived in Boston on a commercial flight from the Dominican Republic on March 4, 2020. While attempting to pass inspection by Customs and Border Protection at Boston Logan International Airport, he provided officers a U.S. Passport bearing his image, but the name, date of birth and social security number of a different person.
An investigation revealed that the defendant allegedly applied for the passport in November 2019 in Brighton, Massachusetts. In the application, he fraudulently listed the personal identifying information of a United States citizen from Puerto Rico. He also attached a copy of the citizen’s birth certificate in support of the application. The passport was issued to the defendant under the assumed identity of the citizen.
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 and William B. Gannon, Special Agent in Charge of the Department of State’s Diplomatic Security Service, Boston Field Office made the announcement. Assistance was provided by Customs and Border Patrol and Immigration and Customs Enforcement. Assistant U.S. Attorney Fred Wyshak III of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Dominican National Sentenced to Five Years in Federal Prison for Fentanyl and Heroin Conspiracy and DistributionRead the Press Release
BOSTON – A Dominican national was sentenced yesterday in federal court in Worcester for distributing fentanyl and heroin.
Erotides Mendez, 50, a Dominican national previously residing in New York City, was sentenced by U.S. District Court Judge Timothy J. Hillman to five years in prison to be followed by four years of supervised release. Mendez will be deported upon completion of his sentence. In November 2019, Mendez pleaded guilty to one count of conspiring to distribute heroin and more than 40 grams of fentanyl, one count of distributing heroin and more than 40 grams of fentanyl and one count of possessing heroin and more than 40 grams of fentanyl with intent to distribute. Mendez and co-defendant Albeiro Gomez, who previously pleaded guilty and is set to be sentenced on March 20, 2020, were arrested in December 2018.
Investigators intercepted communications to and from the defendants’ phones which evidenced their drug trafficking activities. Mendez was involved in the acquisition of heroin and fentanyl in New York and the transportation of these drugs for sale in and around Worcester. Gomez was a livery driver in Worcester who used his livery vehicle to procure and distribute drugs, meet with customers and to collect cash derived from drug sales.
In November 2018, law enforcement stopped a passenger van headed from New York City to Worcester, and observed Mendez – a passenger in the van – throw a bag containing approximately 150 grams of heroin from the van. In December 2018, agents stopped a car in which Mendez was a passenger and located approximately 150 grams of heroin and 138 grams of a mixture of fentanyl and heroin.
In connection with this investigation, Freiber Betancourth, of Worcester, pleaded guilty to drug trafficking charges and was sentenced to 12 months and one day in prison. Betancourth distributed heroin and fentanyl from the parking lot of his employer. In addition, Jonathan Bobadilla Rosa pleaded guilty to drug trafficking and identity theft charges and is scheduled to be sentenced on April 23, 2020.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. Assistance with the investigation was provided by the Massachusetts State Police and the U.S. Department of State, Diplomatic Security Service, Boston Field Office. Assistant U.S. Attorneys Bill Abely and John Mulcahy of Lelling’s Criminal Division are prosecuting the case.
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Chicopee Man Sentenced to Seven Years in Federal Prison for Child Pornography OffensesRead the Press Release
BOSTON – A Chicopee man was sentenced today in federal court in Springfield for receiving child pornography.
Victor Stepus, 51, was sentenced by U.S. District Court Judge Mark G. Mastroianni to seven years in prison and 10 years of supervised release. In November 2019, Stepus pleaded guilty to three counts of receipt of child pornography and one count of possession of child pornography. Stepus has been in custody since his arrest in August 2015.
The investigation that led to the charges against Stepus began with the discovery of Playpen, a secret child pornography bulletin board and website dedicated to the advertisement and distribution of child pornography and the discussion of matters involving the sexual abuse of children. Playpen existed on the “dark web,” and enabled allowed users, on an anonymous basis, to access the site. When investigators obtained logs from the Playpen site, they found that Stepus had been an active user during a six-month period during 2014 and 2015.
A search of Stepus’s residence resulted in the seizure of a personal computer that contained over 8,000 images and 33 videos of child pornography. These included images depicting the sexual abuse, including bondage, of girls as young as eight years old. Stepus admitted that for the past several years he used his home computer to access and download child pornography two to three times per week.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Chicopee Police Chief William R. Jebb made the announcement today. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
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Chelsea Landlord Agrees to Settle False Claims Act AllegationsRead the Press Release
BOSTON – The U.S. Attorney’s Office announced today a $7,000 settlement with 44 Hawthorne, LLC and its owner, Alek Vienneau, to resolve allegations that they submitted false claims to the federal government after receiving impermissible excess rent payments from a low income tenant while participating in a federal housing subsidy program.
The Department of Housing and Urban Development provides federal funding through the Federal Housing Choice Voucher program, commonly referred to as “Section 8,” to assist low income individuals in securing safe housing. The funding is provided through vouchers that are administered by local public housing agencies. The housing subsidy, which may cover all or a portion of a tenant’s monthly rent, is paid directly to the landlord. As a condition for receiving the housing subsidy, the landlord contractually agrees not to charge the Section 8 tenant rent in excess of the amount set by the public housing agency.
Despite this restriction, 44 Hawthorne, LLC and its owner, Alek Vienneau, allegedly collected excess rent from a Section 8 tenant for five months between June and November 2017. Denise Komnenus, the Section 8 tenant, first raised this allegation in a lawsuit filed against the defendants under the qui tam, or whistleblower, provisions of the False Claims Act.
“The Section 8 program provides crucial funding for low income individuals to afford safe housing,” said United States Attorney Andrew E. Lelling. “We will hold accountable landlords who benefit from the program and then take advantage of their tenants.”
“This settlement is the latest example of our continued commitment to hold landlords accountable for actions that seek to enrich themselves at the expense of our poorest neighbors,” said Special Agent in Charge Christina Scaringi, U.S. Department of Housing and Urban Development, Office of Inspector General.
The False Claims Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery. The settlement agreement requires the defendants to pay $7,000 to the United States. Ms. Komnenus will receive approximately $1,540 of the recovery in this case.
U.S. Attorney Lelling and HUD OIG SAC Scaringi made the announcement today. This case was handled by Assistant U.S. Attorneys Steven Sharobem and Elianna Nuzum of Lelling’s Office with the assistance of the United States Department of Housing and Urban Development’s Office of Inspector General.
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U.S. Attorney Sues Spinal Device Company and Its Executives for Allegations that they Paid Kickbacks to SurgeonsRead the Press Release
BOSTON – The U.S. Attorney’s Office has filed a civil health care fraud complaint against SpineFrontier, Inc. (SpineFrontier); Impartial Medical Experts, LLC (IME); Kingsley Chin, the founder and CEO of SpineFrontier; Aditya Humad, the CFO of SpineFrontier; Vanessa Dudley, Chin’s wife and the Business Administrator of IME; and other entities Chin owns and controls.
The government alleges that SpineFrontier, based in Malden, Mass., and the other defendants paid, and conspired to pay, kickbacks in the form of sham consulting fees via a sham third-party, IME. The lawsuit alleges that the defendants made these payments to surgeons to induce them to use SpineFrontier’s devices in spinal surgeries. The government contends that the defendants violated the Anti-Kickback Statute, and as a result caused federal health care programs to pay millions of dollars in false claims.
In addition, the U.S. Attorney’s Office has settled civil health care fraud claims against five physicians, each of whom admits to seeking and obtaining kickbacks from SpineFrontier, via the sham third-party IME, for consulting work he did not perform. Further, each physician admits that one or more of SpineFrontier, Chin, or Humad specifically instructed him to bill “consulting” hours to SpineFrontier for each and every surgery in which he used a SpineFrontier device, regardless of whether he spent any time actually consulting.
- Dr. F. Paul DeGenova, an orthopedic spine surgeon in Ohio, admitted to accepting payments from SpineFrontier via IME for consulting hours he did not work, and agreed to settle the government’s claims for $486,985;
- Dr. Michael Murray, an orthopedic spine surgeon in New York employed by the Department of Veteran Affairs, admitted to accepting payments from SpineFrontier via IME for consulting hours he did not work, and agreed to settle the government’s claims for $330,668;
- Dr. Joseph Shehadi, a neurosurgeon in Ohio, admitted to accepting payments from SpineFrontier via IME for consulting hours he did not work, and agreed to settle the government’s claims for $323,419;
- Dr. Agha Khan, a neurosurgeon in Maryland, admitted to accepting payments from SpineFrontier via IME for consulting hours he did not work, and agreed to settle the government’s claims for $310,843; and
- Dr. John Atwater, an orthopedic surgeon who has worked in in Florida and Illinois, admitted to accepting payments from SpineFrontier via IME for consulting hours he did not work, and agreed to settle the government’s claims for $105,149.
Each of the five settling surgeons cooperated with the government’s investigation into the defendants, and the U.S. Attorney’s Office took that cooperation into account in these settlements.
“Medical device companies that pay surgeons kickbacks, directly or indirectly, corrupt the market, damage the health care system and jeopardize patient health and safety,” said United States Attorney Andrew E. Lelling. “We will pursue aggressively any organization or individual who fails to play by the rules.”
“Kickbacks undermine the integrity of federal health care programs and can result in unnecessary or harmful medical care,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department of Justice will pursue unlawful kickback arrangements in whatever form they occur to ensure the integrity of the medical care received by federal program beneficiaries.”
“Kickbacks paid to surgeons as sham medical consultants, as alleged in this case, cheat patients and taxpayers alike,” said Phillip M. Coyne, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Working with our law enforcement partners, we will continue to investigate kickback schemes that threaten the integrity of our federal health care system, no matter how those schemes are disguised.”
“Surgeons have a moral imperative to operate in a trustworthy, transparent manner. No less than people’s lives and safety depend on them. Today, five spine doctors from across the country admitted they prioritized payoffs over patients to enrich themselves and a Malden medical supply company, SpineFrontier, by shelving their ethics once hundreds of thousands of dollars in kickbacks were put on the negotiating table,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “The FBI aggressively pursues health care fraud because cases like this don’t just impact a few people. The cost of these egregious crimes is ultimately borne by all taxpayers.”
“Veterans and non-Veterans alike put trust in their physicians and that confidence is the cornerstone of our health care system. When physicians choose personal gain over patient care, that trust is broken. The settlement with Dr. Murray demonstrates VA OIG’s strong commitment to combating fraud and corruption in our government health care programs, including the Veterans Health Administration,” said VA OIG Acting Special Agent in Charge Jeffrey Stachowiak.
According to the government’s complaint, SpineFrontier paid physicians kickbacks through IME, which operates only with a Florida post office box, and whose sole employee is Chin’s wife, Dudley. The government contends that the defendants told surgeons that they could bill SpineFrontier and IME for “consulting” on a per-surgical case basis, regardless of the time, if any, the surgeons spent consulting. SpineFrontier and IME allegedly set no limit on the number of times a surgeon could purportedly evaluate a SpineFrontier device, leading to numerous instances in which SpineFrontier paid the same physician for submitting consulting hours on the same SpineFrontier device over and over again.
According to the complaint, SpineFrontier made no effort to catalogue, review, or assess feedback that surgeon-consultants provided. Often, the defendants paid surgeons ostensibly for consulting time even when surgeons had provided no product feedback whatsoever.
The government alleges that SpineFrontier and IME paid more than $8 million in kickbacks to surgeons, which generated more than $100 million in revenue, with the vast majority of SpineFrontier's total domestic sales revenues coming from kickback-tainted surgeries.
In connection with the filing of its complaint, the government intervened in two private whistleblower lawsuits that had been filed under seal pursuant to the False Claims Act. The cases are United States ex rel. Birchall v. SpineFrontier, Inc. et al., No. 15-cv-12877 and United States ex rel. Miller & Bennett v. SpineFrontier, Inc. et al., No. 15-cv-12908.
U.S. Attorney Lelling, Assistant Attorney General Hunt, HHS-OIG SAC Coyne, FBI SAC Bonavolonta, and VA OIG Acting SAC Stachowiak made the announcement today. The government’s investigation is being handled by Assistant U.S. Attorneys Abraham R. George, David J. Derusha, Patrick M. Callahan and Steven T. Sharobem of Lelling’s Office and Trial Attorneys Douglas Rosenthal and Chris Terranova of the Department of Justice’s Civil Division.
DOJ Files Suit against Spine Device Manufacturer and Executives Alleging Kickbacks to Surgeons through Sham Consulting PaymentsRead the Press Release
The Justice Department announced today that the United States intervened and filed a complaint in two whistleblower cases filed under the False Claims Act against SpineFrontier, Inc. (SpineFrontier) and related entities and executives, alleging that the defendants paid kickbacks to spine surgeons to induce use of SpineFrontier surgical devices, in violation of the Anti-Kickback Statute (AKS). According to the United States’ complaint, the defendants paid spine surgeons over $8 million in sham “consulting” payments ostensibly for product evaluations, when in fact the payments were for use of SpineFrontier devices.
“Kickbacks undermine the integrity of federal health care programs and can result in unnecessary or harmful medical care,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department of Justice will pursue unlawful kickback arrangements in whatever form they occur to ensure the integrity of the medical care received by federal program beneficiaries.”
According to the United States’ complaint, Dr. Kingsley Chin is the founder and Chief Executive Officer of SpineFrontier, a spine device manufacturer headquartered in Malden, Massachusetts, which sells spinal implant devices across the United States. Dr. Chin is also the founder and principal owner of KIC Management Group Inc. and KICVentures LLC, which own and operate SpineFrontier and Impartial Medical Experts LLC (IME), a purported consulting company. Vanessa Dudley, Dr. Chin’s wife, was IME’s sole employee. Adiya Humad is the Chief Financial Officer for KICVentures and SpineFrontier, and president of SpineFrontier.
The United States’ complaint alleges that from October 2013 through December 2018, the defendants used IME as an intermediary to funnel kickbacks to spine surgeons. Defendants allegedly created IME to shield themselves and spine surgeons from government scrutiny by creating a false impression that surgeons were consulting through an independent third-party entity. The United States contends that IME in reality has served only one client — SpineFrontier — and its sole purpose was to pay spine surgeons to use SpineFrontier’s medical devices. The Defendants generally paid “consulting” spine surgeons $500 for a cervical procedure, and $1,000 for a lumbar procedure — but only if the surgeon used SpineFrontier devices. The United States alleges that consulting spine surgeons often performed little or no work beyond implanting the devices—for which they were separately paid by insurers — and that the Defendants did not systematically collect or use feedback from consultants and paid them even when they had provided no feedback at all. Surgeons allegedly could “consult” on SpineFrontier devices in this manner an unlimited number of times so long as they continued using the SpineFrontier product in surgery.
The AKS prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, TRICARE, and other federally funded programs. The AKS is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives.
“Medical device companies that pay surgeons kickbacks, directly or indirectly, corrupt the market, damage the health care system, and jeopardize patient health and safety,” said U.S. Attorney Andrew E. Lelling of the District of Massachusetts. “We will pursue aggressively any organization or individual who fails to play by the rules.”
“Bribes paid to surgeons as sham medical consultants, as alleged in this case, cheat patients and taxpayers alike,” said Phillip M. Coyne, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Working with our law enforcement partners, we will continue to investigate kickback schemes that threaten the integrity of our federal health care system, no matter how those schemes are disguised.”
The lawsuits were originally filed under the qui tam or whistleblower provisions of the False Claims Act by Charles Birchall, Jr., a former employee of a KICVentures subsidiary; John Miller, a former sales manager at SpineFrontier; and Walter Bennett, a former sales representative at SpineFrontier. Under the Act, a private party, known as a relator, can file an action on behalf of the United States and receive a portion of the recovery. The Act permits the United States to intervene in and take over the action, as it has done here. If a defendant is found liable for violating the Act, the United States may recover three times the amount of its losses plus applicable penalties.
The lawsuits are being handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the District of Massachusetts. Investigative support is being provided by the Department of Health and Human Services, Office of Inspector General and the Federal Bureau of Investigation.
The cases are captioned United States ex rel. Birchall, Jr. v. SpineFrontier, Inc. et al., No. 15cv12877 (D. Mass.) and United States ex rel. Doe v. SpineFrontier, Inc. et al., No. 15cv12908 (D. Mass.). The claims asserted in the government’s complaint are allegations only.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Brockton Man Pleads Guilty to Federal Drug OffensesRead the Press Release
BOSTON – A Brockton man pleaded guilty yesterday in federal court in Boston to distributing fentanyl and cocaine.
Rayshawn DaCruz, 24, pleaded guilty to four counts of distribution of a controlled substance. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for June 25, 2020. DaCruz was arrested in Brockton and charged in May 2019.
On April 4, 2019, DaCruz sold a bag of cocaine and a bag of fentanyl to an undercover police officer in Stoughton. Then on April 16, May 2, and May 6, 2019, DaCruz sold various amounts of fentanyl to the same undercover officer in Brockton.
Each charge of distribution of a controlled substance provides for a sentence of up to 20 years in prison, a minimum of three years and up to life of supervised release and a fine 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 Investigations, Boston Field Division; Plymouth County District Attorney Timothy J. Cruz; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Brockton Police Chief Emanuel Gomes made the announcement. 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.
United States Files False Claims Act Complaint Against Drug Maker MallinckrodtRead the Press Release
BOSTON – The U.S. Attorney’s Office announced today that it filed a complaint under the False Claims Act against Mallinckrodt ARD LLC (formerly known as Mallinckrodt ARD, Inc. and previously Questcor Pharmaceuticals, Inc.) (collectively “Mallinckrodt”). The government alleges that Mallinckrodt has violated the False Claims Act by underpaying Medicaid rebates due as a result of large increases in the price of its drug H.P. Acthar Gel (“Acthar”).
Pursuant to the Medicaid Drug Rebate Program, drug manufacturers must pay quarterly rebates to state Medicaid programs in exchange for Medicaid’s coverage of the manufacturers’ drugs. The mandatory rebate includes an inflationary component, which is designed to insulate the Medicaid program from drug price increases that outpace the rate of inflation. For each unit sold to Medicaid, a manufacturer must pay the difference between the drug’s current price and the price the drug would have had if its price had increased at the rate of inflation since 1990 or the date when the drug was first marketed, whichever date is later.
The government alleges that, although Acthar was first marketed long before 1990, Mallinckrodt and its predecessor, Questcor, began calculating and paying rebates as if Acthar was a new drug first marketed in 2013, based on the FDA’s approval of a new indication for Acthar’s use in 2010. Given that Questcor had raised Acthar’s price by more than $20,000 per unit prior to 2013, the government alleges that Questcor, and later Mallinckrodt, avoided paying inflationary rebates on any of those pre-2013 price increases, and has thus underpaid hundreds of millions of dollars at the expense of American taxpayers.
In failing to pay these rebates, the government alleges that Mallinckrodt avoided its obligations under the Medicaid Drug Rebate Statute despite repeated government warnings. The government alleges, for example, that the Centers for Medicare and Medicaid Services (“CMS”), which administers the Medicaid program at the federal level, warned Mallinckrodt on multiple occasions that it could not ignore Acthar’s pre-2013 price increases when paying Medicaid rebates for the drug.
“Mallinckrodt raised the price of its drug to an extraordinary level and then allegedly cheated the Medicaid program out of hundreds of millions of dollars,” said Andrew Lelling, United States Attorney for the District of Massachusetts. “The government will always target this kind of exploitation of a program designed to provide health care to vulnerable members of our society.”
“The Medicaid Rebate Statute provides an important check on rising drug prices,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department will not hesitate to hold accountable drug companies that attempt to skirt this important protection at the expense of the Medicaid program, which helps ensure that some of our most vulnerable citizens are able to receive medical care.”
“The Medicaid Drug Rebate Program requires drug manufacturers to pay additional rebate amounts if they increase prices beyond a certain level,” said Special Agent in Charge Phillip M Coyne, Office of the Inspector General for the U.S Department of Health and Human Services. “We take very seriously our responsibility to safeguard taxpayers by ensuring all drug manufacturers meet their obligations under the Medicaid Drug Rebate Program, and I appreciate the continued partnership with the Massachusetts U.S Attorney's Office to protect public funds.”
The allegations that are the subject of the government’s complaint were originally alleged in a case filed under the whistleblower, or qui tam, provision of the False Claims Act. The act permits private parties to sue for fraud on behalf of the United States and to share in any recovery. The act also permits the government to intervene in such actions, as the government has done in this case, which is captioned United States of America et al. ex rel. Landolt v. Mallinckrodt Pharmaceuticals Inc., No. 18-11931-PBS (D. Mass.).
U.S. Attorney Lelling, Assistant Attorney General Joseph H. Hunt of the Department of Justice’s Civil Division, and HHS-OIG SAC Phillip Coyne made the announcement today. The matter is being handled by Assistant U.S. Attorneys Evan Panich and Gregg Shapiro of Lelling’s Affirmative Civil Enforcement Unit and Trial Attorneys Augustine Ripa and Michael Hoffman of the Department of Justice’s Civil Division.
Haitian National Sentenced to 21 Years in Prison for Sex TraffickingRead the Press Release
BOSTON – A Haitian national was sentenced today in federal court in Boston for sex trafficking four victims out of his residences in Dracut and Malden.
Reginald Abraham, 51, who previously resided in Dracut, was sentenced by U.S. District Judge William G. Young to 21 years and 10 months in prison and 15 years of supervised release. He was also ordered to pay $728,000 in restitution to the four victims. Abraham will face deportation proceedings upon completion of his sentence.
In July 2019, Abraham was convicted by a federal jury of four counts of sex trafficking by force, fraud, or coercion. He was charged and arrested on Sept. 6, 2017, and has been in federal custody since.
Law enforcement began investigating Abraham in January 2017 after learning about his trafficking operations from several victims. Abraham approached his victims, usually through social media, and began communicating with them in an effort to convince them to live with him. He eventually picked up his victims, all from Maine, and drove them to his residence in Malden, and later Dracut. After arriving at his home, Abraham forced the women into prostitution throughout New England. He maintained his control over these victims through the use of physical violence, threats, rape, and giving and withholding drugs, including heroin and crack cocaine. Abraham trafficked the victims from 2012 through 2016.
United States Attorney Andrew E. Lelling and Jason Molina, Acting Special Agent in Charge of the Homeland Security Investigations in Boston, made the announcement today. Valuable assistance was provided by the Portland (Maine) Office of the Federal Bureau of Investigation and the Dracut and Portland Police Departments. Assistant U.S. Attorneys Leah B. Foley and Stephen W. Hassink of Lelling’s Civil Rights Enforcement Team prosecuted case.
Framingham Man Pleads Guilty to Illegally Possessing Ammunition After Domestic Violence ConvictionRead the Press Release
BOSTON – A Framingham man, who was previously convicted of a domestic violence misdemeanor, pleaded guilty today in federal court in Boston in connection with illegally selling ammunition.
Julien King, 26, pleaded guilty to one count of possession of ammunition after a domestic violence conviction before U.S. District Judge William G. Young, who scheduled sentencing for June 23, 2020. King was indicted in September 2019.
On March 29, 2019, in Framingham, King sold a .22 caliber bolt-action rifle and 45 pieces of .22 caliber ammunition to a confidential informant in exchange for $120. The sale was captured by recording. Due to a 2017 conviction of assault and battery on a family or household member, King was prohibited from possessing a firearm or ammunition.
The charge provides for a sentence of up to 10 years in prison, three years of supervised release and a fine $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; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Framingham Police Acting Chief Steven Trask made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit is prosecuting the case.
Salvadoran National Sentenced for Money Laundering Conspiracy and Unlawful ReentryRead the Press Release
BOSTON – A Salvadoran man who was a member of the violent gang known as La Mara Salvatrucha, or MS-13, was sentenced today in federal court in Boston for unlawfully reentering the United States and conspiracy to commit money laundering.
Jose Audelino Valle Flores, a/k/a “Mecha,” 33, who previously resided in Lynn, was sentenced by U.S. District Court Judge Denise J. Casper to 33 months in federal prison and three years of supervised release.
According to court documents, Valle Flores was unlawfully in the United States until December 2016 when he was arrested by immigration authorities and deported to El Salvador. In August 2018, immigration authorities again encountered Valle Flores in the United States. He was subsequently charged in this case with unlawfully reentering the United States after his prior removal from the country.
From approximately 2010 through 2016, Valle Flores was a member of the Everett Locos Salvatrucha (ELS) clique of MS-13. Members of MS-13 often pay “dues” to their cliques, which is used to further a variety of criminal activity both within and outside of the United States. For example, MS-13 members often send money to El Salvador to further MS-13 gang activity in El Salvador, to purchase weapons, and/or to support MS-13 members who are imprisoned in El Salvador.
From at least 2014 through at least 2016, Valle Flores conspired with other MS-13 members to send money from the United States to El Salvador with the intent of promoting unlawful activity by the MS-13 gang. As an example of these money transfers, for approximately a year around 2014, Valle Flores collected clique dues from ELS members and sent money to MS-13 leaders in El Salvador.
United States Attorney Andrew E. Lelling; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; 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.
Former Tax Preparer Sentenced for Tax FraudRead the Press Release
BOSTON – A former tax preparer operating under the business “Skylimits Tax Service and Consulting” was sentenced today in federal court in Worcester for filing false income tax returns.
Sebastian Adzadi, 45, was sentenced by U.S. District Court Judge Timothy S. Hillman to time served, one year of supervised release and ordered to pay restitution in the amount of $131,077. In October 2019, Adzadi pleaded guilty to one count of aiding and assisting in the preparation and presentation of false income tax returns.
Adzadi operated “Skylimits Tax Service and Consulting” in Worcester. For tax years 2013 through 2016, Adzadi prepared hundreds of tax returns for numerous clients that included false Schedule A “Itemized Deductions” including medical expenses, charitable contributions and unreimbursed business expenses. The IRS estimates that Adzadi’s fraud caused a total loss of approximately $829,000.
United States Attorney Andrew E. Lelling 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 Michelle L. Dineen Jerrett and Lucy Sun of Lelling’s Worcester Branch Office prosecuted the case.
Former Groton Postmaster Pleads Guilty to Stealing Government FundsRead the Press Release
BOSTON – A USPS employee pleaded guilty today in federal court in Boston to stealing approximately $7,000 in government money.
Adam Lavertue, 37, of Dracut, pleaded guilty to one count of embezzlement and theft of public money, property or records. U.S. District Court Judge Richard G. Stearns scheduled sentencing for June 2, 2020. In September 2019, Lavertue was arrested and charged by indictment.
Lavertue began working the United States Postal Service (USPS) in April 2008 and became Postmaster of the Groton Post Office in June 2015. In this role, Lavertue performed a variety of managerial and administrative tasks to facilitate the daily operations of the Post Office, including maintaining the facility’s operational functions, handling customer transactions and managing mail clerks and delivery staff. In February 2017, Lavertue began using the purchase charge card issued to the Groton Post Office to make over $500 in personal purchases, including food, beverages and tobacco products. Additionally, Lavertue used Post Office Voyager cards, which are used by USPS mail couriers to fuel the official USPS delivery vehicles, to fuel his personally owned vehicle, charging over $5,000 in fuel. Lavertue also stole over $1,000 in cash from his assigned cash register drawer and reserve at the Groton Post Office. Lavertue’s scheme cost the USPS approximately $7,000.
The charging statute provides a sentence of up to 10 years in prison, three years 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 Modafferi, Special Agent in Charge of the U.S. Postal Service Inspector General; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service made the announcement today. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
Ware Man Sentenced to 15 Years in Prison for Sex Trafficking and Sexual Exploitation of a MinorRead the Press Release
BOSTON – A Ware man was sentenced today in federal court in Springfield on sex trafficking and sexual exploitation charges.
Walter Brown, 74, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 15 years in prison and five years of supervised release. In October 2019, Brown pleaded guilty to one count of conspiracy to commit sexual exploitation of a child, two counts of sexual exploitation of a child, one count of conspiracy to commit sex trafficking and two counts of sex trafficking. Brown was arrested on July 14, 2017 and has been detained since that time.
On Oct 11, 2019, co-defendant Claire Poole was sentenced to 125 months in prison after pleading guilty to conspiracy to commit sex trafficking and two counts of sex trafficking.
Poole moved to the Springfield area in early 2017 and later helped Brown have sex with a teenage girl. Brown induced the girl to provide pornographic videos and to have sex with him on two occasions by paying her money. Poole acted as a go-between, first by conveying Brown’s initial offer to the girl and then by relaying Brown’s messages to the victim, which included negotiations about what Brown would pay. Poole also provided a cell phone to produce the pornographic videos, and Poole transported the minor to Brown’s house in Ware for sex on two occasions.
United States Andrew E. Lelling; Hampden County District Attorney Anthony D. Gulluni; 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; Ware Police Chief Shawn Crevier; Monson Police Chief Stephen Kozloski; and Amherst Police Chief Scott Livingstone made the announcement today. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office prosecuted the case.
This case is the result of the efforts of the Western Massachusetts Human Trafficking Working Group which was established in August 2015 to investigate and prosecute crimes involving commercial sex trafficking.
Utility Workers Union of America, Local 369, Reruns Election Under Department of Labor SupervisionRead the Press Release
BOSTON – Utility Workers Union of America, Local 369 has rerun its 2017 election of officers under the supervision of the Department of Labor as part as a settlement resolving allegations that Local 369 failed to guarantee its members the right to vote.
The allegations of election violations were filed in April 2018, by the U.S. Attorney’s Office on behalf of the Department of Labor. The Labor-Management Reporting and Disclosure Act, which regulates labor unions, imposes certain requirements on unions in conducting their officers’ elections, including that every member has the right to vote and requiring that the union employ adequate safeguards to ensure a fair election. The Secretary alleged that Local 369 did not employ adequate safeguards and denied some members the right to vote in its 2017 officers’ election.
Local 369 and the United States Department of Labor reached a settlement agreement in September 2019. As a result of the settlement agreement, Local 369 reran one of the races from the 2017 election under the supervision of the Department of Labor. On Jan. 16, 2020, the Secretary of Labor certified the results of the election to the court as required by the settlement agreement. Last week, the court entered a final judgment in the matter, recognizing the certified results.
“The government takes these violations seriously and will hold unions accountable for ensuring that all members’ voices are heard during elections,” said United States Attorney Andrew E. Lelling.
U.S. Attorney Lelling made the announcement today. Assistant U.S. Attorneys Alexandra Brazier and Evan Panich of Lelling’s Affirmative Litigation Unit handled the matter.
Springfield Man Pleads Guilty to Sex TraffickingRead the Press Release
BOSTON – A Springfield man pleaded guilty yesterday in federal court in Springfield to sex trafficking.
William Coleman, 48, pleaded guilty to one count of conspiracy to commit sex trafficking and nine counts of sex trafficking. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for July 9, 2020. Coleman has been in custody since his arrest on Dec. 23, 2018.
Coleman ran a prostitution business in the Springfield area, the greater Hartford, Conn., area, and other parts of Connecticut, from 2016 to 2018. Coleman used violence and the drug addictions of eight female victims to coerce them into engaging in commercial sex acts with paying customers. The victims were typically required to turn over all of their earnings to Coleman, and their daily lives were tightly controlled by him. Most of the women were not allowed to keep any of the money they earned, and they were only to obtain their drugs – in most cases, heroin – from Coleman. Victims who did not engage in prostitution for Coleman, or who did not follow his rules, were subjected to physical assaults, sexual violence and the withholding of drugs. Coleman used websites to post prostitution advertisements for the victims working for him.
The maximum sentence for sex trafficking and conspiracy to commit sex trafficking is life in prison, up to life of supervised release and a $250,000 fine. The charge of sex trafficking provides for a mandatory minimum sentence of 15 years and up to life in prison, up to life of supervised release and a $250,000 fine. According to the terms of the plea agreement, Coleman will be sentenced to 186 months in prison. 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; Hampden County District Attorney Anthony D. Gulluni; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Hampden County Sheriff Nicholas Cocchi; Springfield Police Commissioner Cheryl Clapprood; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement today. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office is prosecuting the case.
This case is the result of the efforts of the Western Massachusetts Human Trafficking Working Group which was established in August 2015 to investigate and prosecute crimes involving commercial sex trafficking.
Sanofi Agrees to Pay $11.85 Million to Resolve Allegations That it Paid Kickbacks Through a Co-Pay Assistance FoundationRead the Press Release
BOSTON – The U.S. Attorney’s Office announced today that pharmaceutical company Sanofi-Aventis U.S., LLC (“Sanofi”), has agreed to pay $11.85 million to resolve allegations that it violated the False Claims Act by paying kickbacks to Medicare patients through a purportedly independent charitable foundation, The Assistance Fund (“TAF”).
When a Medicare beneficiary obtains a prescription drug covered by Medicare Part B, 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 the Medicare program, 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.
Sanofi sells Lemtrada, a multiple sclerosis drug that costs nearly $100,000 per patient per year. Medicare co-pays for Lemtrada can be many thousands of dollars per year. The cost of the drug often presents significant barriers to access for Medicare patients.
The government alleged that TAF, an entity claiming 501(c)(3) status for tax purposes, operates funds, including a fund for MS patients, that pay the co-pays of certain patients, including Medicare patients, who were prescribed Lemtrada. TAF allegedly raised its maximum per-patient grant allocation to $20,000 specifically to accommodate Lemtrada patients. During the relevant time period, TAF’s MS fund frequently ran out of funding and was closed to new patients. If any patients applied for co-pay assistance at a time when the MS fund was out of funding and closed to new patients, TAF did not maintain a wait list of such patients. As a consequence, whenever TAF’s MS fund opened to new patients, the fund provided grants to the patients who applied immediately after the opening and did not provide grants to patients who had sought to apply earlier but at a time when the fund was closed.
The United States further alleged that Sanofi made payments to TAF not with a charitable purpose but rather with the intention of using TAF as a conduit to pay the financial obligations, including Medicare co-pay obligations, of patients taking Lemtrada, and that Sanofi’s payment through TAF of Medicare co-pays for Lemtrada violated the Anti-Kickback Statute. To effectuate its scheme, Sanofi worked with its third-party reimbursement hub to identify Medicare patients for whom physicians had prescribed Lemtrada, but who had not yet received infusions of the drug because they lacked sufficient funds to afford the co-pays for Lemtrada. Sanofi made nine payments to TAF during 2015 and 2016. At the times Sanofi made eight of these nine payments, TAF’s MS fund had run out of funding, and was closed to new patients. In conjunction with its payments to TAF, and knowing that TAF’s MS fund did not maintain wait lists and would fund the first patients who applied for assistance after the fund received new funding, Sanofi instructed its hub quickly to refer as many Lemtrada patients as possible to the TAF MS fund. As a result, when TAF’s MS fund opened with funding from Sanofi, Lemtrada patients received a disproportionately large share of the Medicare co-pay grants TAF issued and patients taking MS drugs other than Lemtrada received a disproportionately small share of the Medicare co-pay grants TAF issued.
“According to the allegations in today’s settlement agreement, Sanofi used a supposed charity as a conduit to funnel money to patients taking Sanofi’s very expensive drug, all at the expense of the Medicare program,” said United States Attorney Andrew E. Lelling. “This office will continue to pursue drug companies for violations of the anti-kickback laws. We commend Sanofi for swiftly resolving the government’s allegations.”
“Sanofi sought to undermine the Medicare program through its use of kickbacks disguised as routine charitable donations aimed at helping patients battling multiple sclerosis and who were struggling with costly copays,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “They rigged the system so those taking its drug Lemtrada gained an unfair advantage over patients using other medications, and with today’s settlement, they are finally being held accountable for their actions.”
Sanofi has also entered into a corporate integrity agreement (CIA) with the Department of Health and Human Services Office of Inspector General (HHS-OIG). The CIA requires, among other things, that Sanofi implement measures designed to ensure that arrangements and interactions with third-party patient assistance programs are compliant with the law. In addition, the CIA requires reviews by an independent review organization, and compliance-related certifications from company executives and Board members.
A limited liability partnership formed by a former employee of Sanofi’s predecessor, Genzyme Corporation, brought these allegations through a whistleblower lawsuit. Under the qui tam provisions of the False Claims Act, private individuals, known as relators, can sue on behalf of the government for false claims and share in any recovery. In connection with today’s announced settlement, the partnership will receive approximately $2.7 million of the recovery.
U.S. Attorney Lelling, HHS-OIG Chief Counsel Demske and FBI SAC Joseph Bonavolonta made the announcement today. The matter was handled by Assistant U.S. Attorneys Gregg Shapiro and Evan Panich of Lelling’s Office, with assistance from Kelley Hauser, Trial Attorney with Department of Justice’s Civil Division.
Lancaster Man Arrested for Robberies in Massachusetts and New HampshireRead the Press Release
BOSTON – A Lancaster man was arrested yesterday and charged in connection with a series of unarmed robberies committed in Massachusetts and New Hampshire between November 2019 and February 2020.
Matthew Alden, 26, was charged in a criminal complaint with two counts of interference with commerce by threats or violence. Alden was arrested yesterday evening and detained pending a detention hearing set for March 5, 2020.
According to charging documents, on Feb. 4, 2020, Alden robbed a TD Bank on Main Street in Athol, Mass., and on Feb. 21, 2020, Alden allegedly robbed an Avidia Bank on Maple Avenue in Shrewsbury. During both robberies, Alden wore a black ski mask and black gloves and demanded cash from the bank tellers. Alden is allegedly connected to the eight other robberies listed below:
• Nov. 21, 2019: Enterprise Bank on Littleton Road in Westford;
• Dec. 2, 2019: TD Bank on Main Street in Athol;
• Dec. 11, 2019: Honey Farms on Leominster-Shirley Road in Lunenburg;
• Dec. 12, 2019: Cornerstone Bank on South Main Street in Leicester;
• Dec. 27, 2019: Avidia Savings Bank on Maple Street in Marlborough;
• Jan. 10, 2020: Metro Credit Union on Worcester Road in Framingham;
• Jan. 10, 2020: TD Bank on Central Street in Foxborough; and
• Feb. 13, 2020: Citizens Bank on North Eastern Boulevard in Nashua, N.H..
The charging statute provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 on each count. 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. Assistance was provided by the Massachusetts State Police and the Westford, Athol, Lunenberg, Leicester, Marlborough, Framingham, Foxborough, Shrewsbury, Clinton, Lancaster, Millbury and Nashua (N.H.) Police Departments. Assistant U.S. Attorney Lucy Sun 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.
Justice Department Settles with Tufts Medical Center to Better Ensure Equal Access to Individuals with DisabilitiesRead the Press Release
BOSTON – The U.S. Attorney’s Office has entered into a settlement agreement with Tufts Medical Center to ensure equal access for individuals with disabilities at its facilities in Boston.
The agreement resolves a compliance review under Title III of the Americans with Disabilities Act (ADA). Under the three-year Agreement, Tufts will:
- improve the hospital’s policies, practices and procedures for ensuring effective communication with patients and companions who are deaf or hard of hearing (including an assessment to determine appropriate Auxiliary Aids and Services, and providing qualified interpreters in a timely way);
- improve physical access to its facilities by removing barriers at public and common use areas;
- provide one or more accessible patient rooms on every medical department;
- provide sufficient accessible medical equipment to ensure individuals with disabilities have equal access to medical services (at least one of each type per clinical service); and
- Designate an ADA Compliance Officer and an Effective Communication Coordinator.
“This case is a reminder that we still need the basic protections provided by the ADA,” said U.S. Attorney Andrew Lelling. “This is especially true for the deaf and hard-of-hearing, who often receive too little support when trying to navigate the healthcare system. I commend Tufts for working with us to improve services for patients with disabilities, and we hope this agreement encourages other healthcare providers to review their ADA compliance.”
“No one with a disability should face unlawful barriers to accessing health care facilities or receiving medical treatment,” said the head of the Civil Rights Division, Assistant Attorney General Eric Dreiband. “This agreement reflects the Department’s continued commitment to enforcing the Americans with Disabilities Act to ensure equal access for individuals with disabilities to medical care, and we appreciate Tufts’ full cooperation with the Department throughout the investigation.”
The settlement agreement is posted here: https://www.ada.gov/tufts_medical_ctr_sa.html.
Assistant U.S. Attorney Gregory Dorchak of Lelling’s Civil Rights Unit handled the matter with Senior Trial Attorney Alyse Bass of the Justice Department’s Disability Rights Section.
People interested in finding out more about the ADA or this settlement agreement can call the toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD), or access the ADA website at http://www.ada.gov.
Justice Department Settles with Tufts Medical Center to Better Ensure Equal Access for Individuals with DisabilitiesRead the Press Release
Today, the Justice Department and Tufts Medical Center entered into a settlement agreement to ensure equal access for individuals with disabilities at Tufts’ facilities in Boston, Massachusetts. The agreement resolves a compliance review under Title III of the Americans with Disabilities Act (ADA). Under the agreement, Tufts will:
- improve the hospital’s policies, practices, and procedures for ensuring effective communication with patients and companions who are deaf or hard of hearing;
- improve physical access to its facilities by removing barriers at public and common use areas;
- provide one or more accessible patient rooms for each medical service; and
- provide sufficient accessible medical equipment to enable individuals with disabilities to have equal access to medical services.
“No one with a disability should face unlawful barriers to accessing health care facilities or receiving medical treatment,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “This agreement reflects the Department’s continued commitment to enforcing the Americans with Disabilities Act to ensure equal access for individuals with disabilities to medical care, and we appreciate Tufts’ full cooperation with the Department throughout the investigation.”
“This case is a reminder that we still need the basic protections provided by the ADA,” said U.S. Attorney Andrew Lelling. “This is especially true for the deaf and hard-of-hearing, who often receive too little support when trying to navigate the healthcare system. I commend Tufts for working with us to improve services for patients with disabilities, and we hope this agreement encourages other healthcare providers to review their ADA compliance.”
2020 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.
People interested in finding out more about the ADA or this settlement agreement can call the toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD), or access the ADA website at http://www.ada.gov.
NOTE: The settlement agreement can be found here.
Hyde Park Man Charged with Armed Bank RobberyRead the Press Release
BOSTON – A Hyde Park man was charged yesterday in federal court in Boston with bank robbery.
Paul Whooten, 56, was charged in a criminal complaint with one count of armed bank robbery. Whooten was detained following an initial appearance before U.S. District Court Magistrate Judge M. Page Kelley.
According to the charging documents, on Dec. 21, 2019, an individual wearing black clothing and a mask walked into a branch of Rockland Trust Bank in Hyde Park with what appeared to be a firearm. The robber pointed the firearm at the teller and said, “Give me all of your money.” The teller filled the robber’s bag with cash, and the robber fled the bank on foot. Bank surveillance cameras captured images of the robber wearing a long dark coat, black reflective jacket, a black knit hat, black sunglasses and gloves. A police officer stationed inside of the bank broadcast a description of the robber.
As alleged in the complaint, another police officer observed an individual matching the description of the robber walking down Truman Parkway. The officer issued verbal commands to the robber to drop the gun and get on the ground. The robber complied and was apprehended by law enforcement. A black rifle-type BB gun and bag of cash were recovered from the robber, who was identified as Whooten.
The charging statute provides for a sentence of up to 25years in prison, five 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 Boston Police Commissioner William Gross made the announcement. Assistant U.S. Attorney Adam W. Deitch 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.
Biotech Officer Sentenced for Securities Fraud and Obstruction of SEC ProceedingRead the Press Release
BOSTON – The former Vice President of Investor Relations for PixarBio Corp., a Boston-based biotech company, was sentenced yesterday on securities fraud charges in connection with a scheme to manipulate trading in the company’s shares and obstruction of proceedings before the Securities and Exchange Commission (SEC).
Kenneth Stromsland, 48, of Rumson, N.J., was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to six months in home detention, three years of supervised release during which time he must complete 200 hours of community service per year, and ordered to pay a fine of $60,000 and forfeiture of $25,700. In September 2018, Stromsland pleaded guilty to one count of securities fraud through manipulative trading, one count of obstructing an agency proceeding and agreed to cooperate with the government. In April 2018, Stromsland was charged with co-defendant Frank Reynolds, the former chief executive officer of PixarBio. Reynolds was convicted by a federal jury in October 2019, and sentenced on Feb. 18, 2020, to seven years in prison.
Stromsland admitted that beginning in or about November 2016, he engaged in manipulative trades in PixarBio stock that simulated market interest in the stock and artificially pushed up the trading price. These trades included orders to buy at a price much higher than the price of the preceding market transaction.
Stromsland also admitted that during a 2017 SEC investigation into manipulative trading in PixarBio’s stock, he testified falsely before the SEC. In his testimony on three different days, Stromsland falsely denied that he had purchased shares of PixarBio to affect the share price and falsely denied that he had been instructed to do so by PixarBio’s then Chief Executive Officer.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Carl W. Hoecker, Inspector General of the U.S. Securities and Exchange Commission Office of Inspector General, made the announcement. Assistant U.S. Attorneys Sara Miron Bloom and Leslie A. Wright of Lelling’s Securities and Financial Fraud Unit prosecuted the case.
Mortgage Short Sale Negotiator Sentenced for Defrauding Mortgage LendersRead the Press Release
BOSTON – The principal and co-founder of a North Andover mortgage short sale assistance company was sentenced yesterday in connection with defrauding mortgage lenders and investors out of nearly $500,000 in proceeds from about 90 short sale transactions.
Jaime L. Mulvihill, 40, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to six months in prison, two years of supervised release, and ordered to pay restitution in the amount of $478,458 and forfeiture of $239,229. In November 2019, Mulvihill pleaded guilty to conspiracy to commit wire fraud.
Mulvihill and her co-defendant Gabriel T. Tavarez founded and operated Loss Mitigation Services, LLC. The charges arise out of the defendants’ scheme to steal undisclosed and improper fees from mortgage lenders in connection with short sales of homes. A short sale occurs where the mortgage debt on the home is greater than the sale price, and the mortgage lender agrees to take a loss on the transaction.
Loss Mitigation Services, purportedly acting on behalf of underwater homeowners, negotiated with mortgage lenders for approval of short sales in lieu of foreclosure. Mortgage lenders typically forbid short sale negotiators, such as Loss Mitigation Services, from receiving any proceeds of a short sale.
From 2014 to 2017, Mulvihill and, allegedly, Tavarez, directly or through their employees, falsely claimed to homeowners, real estate agents and closing attorneys that mortgage lenders had agreed to pay Loss Mitigation Services fees known as “seller paid closing costs” or “seller concessions” from the proceeds of the short sales. In reality, the mortgage lenders had never approved Loss Mitigation Services to receive those fees. When the short sales closed, at the instruction of Mulvihill, or others working with her and Tavarez, settlement agents paid Loss Mitigation Services the fees, which typically were 3% of the short sale price above and beyond any fees to real estate agents, closing attorneys and others involved in the transaction. To deceive mortgage lenders about the true nature of the fees, Mulvihill or Tavarez filed, or caused others to file, false short sale transaction documents with mortgage lenders, including altered settlement statements and fabricated contracts and mortgage loan preapproval letters. Mulvihill and, allegedly, Tavarez, fabricated the transaction documents, or caused them to be fabricated, in order to justify the additional fees and conceal that they were being paid to Loss Mitigation Services.
The defendants defrauded the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation and the U.S. Department of Housing and Urban Development.
Tavarez has pleaded not guilty and is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Robert Manchak, Special Agent in Charge of the Federal Housing Finance Agency, Office of Inspector General, Northeast Region; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. Assistant U.S. Attorneys Sara Miron Bloom and Brian M. LaMacchia of Lelling’s Office are prosecuting the case.
Holyoke Resident Pleads Guilty to Heroin DistributionRead the Press Release
BOSTON – A Holyoke woman pleaded guilty today in federal court in Springfield to distributing heroin.
Milagros Gaetan, 50, pleaded guilty to an indictment charging her with distributing and possessing with intent to distribute heroin. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for June 26, 2020.
On Oct. 1, 2019, an undercover officer made a controlled drug purchase in an area known for the availability of heroin, cocaine and cocaine base on Appleton Street in Holyoke. The officer walked down the street and encountered an individual later identified at Gaetan. Gaetan asked the officer what he was looking for and he responded one bundle (10 bags) of heroin. Gaetan told the officer to wait, and then returned a short time later with one bundle of heroin, which she gave to the officer in return for cash.
On Oct. 7, 2019, the undercover officer returned to the area and purchased one bundle of heroin and cocaine from Gaetan in return for cash. On Oct. 25, 2019, Gaetan was arrested and charged by criminal complaint.
The charging statute provides for a sentence of up to 20 years in prison, at least three years of supervised release and fine of $1 million. 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; 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. Assistant U.S. Attorney Todd E. Newhouse of Lelling’s Springfield Branch Office is prosecuting the case.
Columbia Gas Agrees to Plead Guilty in Connection with September 2018 Gas Explosions in Merrimack ValleyRead the Press Release
BOSTON – Columbia Gas of Massachusetts (CMA) has agreed to accept responsibility for the gas explosions on Sept. 13, 2018, in Lawrence, Andover and North Andover that killed one individual, injured 22, and damaged homes and businesses.
Bay State Gas Company, d/b/a Columbia Gas of Massachusetts, has agreed to plead guilty to violating a minimum safety standard of the Natural Gas Pipeline Safety Act relating to the failure to implement procedures to prevent the over-pressurization of its low-pressure gas distribution system in South Lawrence during a pipe replacement project known as the South Union Project. A plea hearing has not yet been scheduled.
According to the terms of the plea agreement, CMA will pay a criminal fine of $53,030,116 which represents twice the amount of profits that CMA earned between 2015 and 2018 from a pipeline infrastructure program called the Gas System Enhancement Plan (GSEP). In addition to a fine, CMA’s operations will be subject to monitoring during a three year period of probation to ensure CMA’s compliance with federal and state safety regulations.
The U.S. Attorney’s Office has also entered into a Deferred Prosecution Agreement (DPA) with CMA’s parent company, NiSource, Inc. based in Indiana. As part of the DPA, NiSource has agreed to undertake their best reasonable best efforts to sell CMA after which NiSource and CMA would stop all gas pipeline operations in Massachusetts. In exchange for the U.S. Attorney’s Office’s agreement to defer prosecution of NiSource as a result of CMA’s conduct, NiSource has also agreed to forfeit any profit it may earn from the sale of CMA and implement each of the safety recommendations from the National Transportation Safety Board (NTSB) resulting from the Sept. 13, 2018 incident.
According the charging documents, during the afternoon of Sept. 13, 2018, the over-pressurization of a low pressure gas distribution system in South Lawrence caused multiple fires and explosions in the communities of Lawrence, Andover, and North Andover. As a result, one individual in Lawrence was killed and another severely disabled, 22 people were injured, and approximately 131 residential homes and commercial buildings were damaged.
The charges filed against CMA allege that the company recklessly disregarded a known safety risk related to regulator control lines – sections of pipe connected to regulator stations that helped monitor and control downstream gas pressure. By at least 2015, according to an internal company notice, CMA knew that the failure to properly account for control lines in construction projects could lead a “catastrophic event,” including fires and explosions. Aging cast iron pipes were being replaced, but the failure to remove or relocate control line pipes that were later abandoned would automatically cause regulator stations to continually increase pressure to the point of dangerous over-pressurization.
The failure to account for control lines that led to the Sept. 13, 2018 event took place during a pipe replacement project known as the South Union Street Project that began in Lawrence in 2016. Throughout the project, CMA disregarded the known safety risks related to control lines, and instead focused on the timely completion of construction projects to maximize earnings under the company’s GSEP. The charging document alleges that the company, through the actions of its employees in Engineering, Construction and Operations and a pattern of flagrant organization indifference, failed to implement and follow any plan or action to ensure against over-pressurization and that failure led to the eventual fires and explosions in the Merrimack Valley on Sept. 13, 2018.
The DPA with NiSource acknowledges the fact that NiSource has previously made substantial voluntary restitution payments to the victims of the September 2018 incident, and has agreed to seek to resolve all pending civil claims. Most of the $53 million fine will be directed to the Justice Department’s Crime Victims Fund, which is a major funding source for victim services throughout the United States.
For more information regarding the case, please visit: https://www.justice.gov/usao-ma/victim-and-witness-assistance-program/united-states-v-bay-state-gas-company-dba-columbia-gas-massachusetts
United States Attorney Andrew E. Lelling; Douglas Shoemaker, Special Agent in Charge of the U.S. Department of Transportation, Office of Inspector General, Office of Investigations; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Critical assistance was provided by the Massachusetts State Police and Lawrence Fire Department. Assistant U.S. Attorneys Neil J. Gallagher, Jr. and Evan Gotlob of Lelling’s Public Corruption and Special Prosecutions Unit are prosecuting the case.
Brockton Man Sentenced for Federal Firearm and Drug OffensesRead the Press Release
BOSTON – A Brockton man was sentenced today in federal court in Boston for firearm and drug charges.
Kawana Tillman, 48, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to five years in prison and four years of supervised release. In November 2019, Tillman pleaded guilty to being a felon in possession of a firearm and ammunition, one count of possession with intent to distribute cocaine base, and one count of possession with intent to distribute more than 28 grams of cocaine base. Tillman was arrested on April 30, 2019, and has been in custody since.
On March 10, 2018, Tillman was illegally in possession of a Glock, Model 26, 9mm semi-automatic handgun and three rounds of 9mm ammunition. Tillman has prior felony drug conspiracy and firearm convictions, and is therefore prohibited from possessing firearms and ammunition. On March 19, 2018, and April 30, 2019, Tillman was in possession of various amounts of cocaine base.
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; Plymouth County District Attorney Timothy J. Cruz; Suffolk County District Attorney Rachael Rollins; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Boston Police Commissioner William Gross made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Lelling’s Organized Crime and Gang Unit prosecuted 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. 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.
Brockton Man Pleads Guilty to Federal Firearms ChargeRead the Press Release
BOSTON – A Brockton man pleaded guilty today in federal court in Boston to a firearms offense.
Tyrell Hampton, 30, pleaded guilty to being a felon in possession of firearms before U.S. District Court Judge Nathaniel M. Gorton, who scheduled sentencing for July 9, 2020.
Hampton sold two .9mm Luger pistols and 21 rounds of .9mm ammunition to an undercover officer in Brockton on June 27, 2019. In phone communications prior to the transaction, Hampton indicated that the buyer should move fast because “they [the firearms offered for sale] go quick but I can always get more.”
According to court records, Hampton has previously been convicted of multiple felony offenses including drug convictions and a prior firearm conviction. As a felon, Hampton is barred under federal law from possessing a firearm.
The charge of possessing a firearm after being convicted of a felony provides for a sentence of up to10 years in prison, three years of supervised release and a $250,000 fine. 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 D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, New England Division made the announcement today. Valuable assistance was provided by the Massachusetts State Police and the Brockton Police Department. Assistant U.S. Attorney Bill Abely of Lelling’s Major Crimes Unit is prosecuting the case.
Worcester Man Sentenced on Fentanyl and Heroin ChargesRead the Press Release
BOSTON – A Worcester man was sentenced today in connection with drug trafficking charges.
Freiber Betancourth, 30, was sentenced by U.S. District Court Judge Timothy S. Hillman to 12 months and a day in prison and three years of supervised release. In June 2019, Betancourth pleaded guilty to one count of conspiring to distribute fentanyl and heroin and one count of distributing fentanyl and heroin.
Betancourth worked for a Massachusetts Department of Transportation / EZ Pass contractor in Auburn, Mass. Between June and September 2018, Betancourth distributed heroin and fentanyl on multiple occasions, including in the parking lot outside of his workplace. In addition, he stored drugs in his office. Betancourth obtained these drugs from Albeiro Gomez, sold the drugs to a particular customer, and then provided most of the cash proceeds to Gomez.
Gomez pleaded guilty on Nov. 25, 2019 to various drug charges including distributing fentanyl and heroin and possessing cocaine with intent to distribute. He is scheduled to be sentenced on March 5, 2020.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. The Massachusetts Attorney General’s Office and the Massachusetts State Police provided assistance with the investigation. Assistant U.S. Attorneys Bill Abely and John Mulcahy of Lelling’s Criminal Division prosecuted the case.
Southwick Man Sentenced for Sending Threatening Letters and White Powder to Federal Agencies in SpringfieldRead the Press Release
BOSTON – A Southwick man was sentenced today in federal court in Springfield for sending two packages containing white powder to federal agencies in Springfield.
Kevin A. Johnson, 48, was sentenced by U.S. District Court Judge Mark G. Mastroianni to time served in prison (almost 15 months) and three years of supervised release. In November 2019, Johnson pleaded guilty to two counts of conveying false information and hoaxes. Johnson was arrested on Nov. 30, 2018.
Between July and November 2018, FBI’s Springfield Office and the Springfield Social Security Administration Office (SSA Springfield), collectively received three packages containing either threatening communications and/or suspicious substances. The Springfield Branch Office of the Massachusetts U.S. Attorney’s Office received a letter from an individual claiming responsibility for sending the packages. All of the packages contained a piece of white-lined paper with a hand-drawn logo that appeared to combine the “anarchist A” symbol (the capital letter “A” surrounded by the letter “O”) and the symbol for ISIS, a foreign terrorist organization. Two of the packages contained suspicious white powder.
On July 23, 2018, security cameras at the FBI Springfield Office captured an individual throwing a manila envelope at the front door. The package contained a handwritten note saying: “Death to TRUMP.”
On Oct. 23, 2018, SSA Springfield received a package containing white powder and a handwritten letter stating, among other things: “FOR ALLAH YOU DIE, ATHENA KNOWS YOUR LIES, DEATH TO YOU TRAITORS, AND THE FU----- FBI.”
On Oct. 24, 2018, the FBI Springfield Office received a package through the mail addressed to “AGENT UNCLE HAM.” The package contained white powder and a handwritten note stating: “FOR ALLAH YOU DIE, ATHENA KNOWS YOUR LIES, DEATH TO THE N.O.R.A.D SPIES, AND THE FBI.”
The white powder in the packages was found to contain no hazardous materials.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service, Boston Field Division; and Southwick Police Chief Kevin A. Bishop, made the announcement today. Assistance was provided by the Western Massachusetts Joint Terrorism Task Force, Hampden County Sheriff’s Department, and Holyoke Police Department. Assistant U.S. Attorney Deepika Bains Shukla, Chief of Lelling’s Springfield Branch Office, prosecuted the case.
Parent Sentenced in College Admissions CaseRead the Press Release
BOSTON – A California woman was sentenced today in federal court in Boston for paying $300,000 to participate the college entrance exam cheating scheme and athletic recruitment scheme for her children.
Michelle Janavs, 49, of Newport Coast, Calif., was sentenced by U.S. District Court Judge Nathaniel M. Gorton to five months in prison, two years of supervised release, and ordered to pay a $250,000 fine.
The government recommended a sentence of 21 months in prison, three years of supervised release, 250 hours of community service and a fine of $175,000. In October 2019, Janavs pleaded guilty to one count of conspiracy to commit mail and wire fraud and honest services mail and wire fraud and one count of conspiracy to commit money laundering.
Beginning in 2017, Janavs conspired with Rick Singer and others to secure her children’s admission to selective colleges and universities through bribery and fraud.
On Oct. 28, 2017, Janavs’s older daughter took the ACT exam at a test center in West Hollywood that Singer “controlled” through a corrupt test administrator, Igor Dvorskiy. Singer’s corrupt “proctor,” Mark Riddell, reviewed and corrected the daughter’s answers. In November 2017, Janavs sent a $50,000 check to Singer’s sham charitable organization, Key Worldwide Foundation (KWF), to pay for the fraud. Singer, in turn, passed a portion of the money to Riddell and Dvorskiy.
In February 2019, Janavs’s younger daughter took the ACT at the West Hollywood Test Center, and Riddell corrected her answers. Later that month, Janavs wired $25,000 to KWF and mailed a $25,000 check to KWF. Singer, in turn, passed bribes to Riddell and Dvorskiy.
Riddell and Dvorskiy have pleaded guilty and are awaiting sentencing.
Beginning in 2018, Janavs agreed with Singer to pay $200,000 to facilitate her older daughter’s admission to the University of Southern California (USC) as a purported volleyball recruit. In August 2018, Janavs emailed Singer photos of her daughter playing volleyball so that Singer could create a fake athletic “profile.” In October 2018, a USC athletics administrator, Donna Heinel, secured approval to admit Janavs’s daughter from the USC subcommittee for athletic admissions based on the falsified athletic credentials. Later that month, Janavs mailed Heinel a $50,000 check drawn from her family’s charitable foundation account and made payable to USC Women’s Volleyball, the account designated by Heinel. Janavs was arrested before her older daughter received her formal admission to USC and, accordingly, did not pay the remaining $150,000 of the initially agreed upon amount.
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; 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 of Lelling’s Securities and Financial Fraud Unit are prosecuting the cases.
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.
Lowell Man Sentenced for Heroin and Fentanyl TraffickingRead the Press Release
BOSTON – A Lowell man was sentenced yesterday in federal court in Boston for heroin and fentanyl trafficking charges.
Anderson Daniel Jorge Cruz, 21, was sentenced by U.S. District Court Judge William G. Young to 70 months in prison and three years of supervised release. In October 2019, Cruz pleaded guilty to conspiracy to distribute and possession with intent to distribute one kilogram or more of heroin and fentanyl and other drug trafficking offenses. Cruz has been in custody since his arrest on Jan. 23, 2019, along with co-defendant Joshua Ramos-Rios.
On Jan. 23, 2019, federal, state, and local law enforcement officers seized over one kilogram of heroin mixed with fentanyl hidden inside Cruz’s bedroom ceiling. The seizure was the result of an undercover operation into Cruz and Ramos-Rios. At the time of his arrest, Cruz had an outstanding warrant for homicide in Allentown, Penn., which remains pending. Cruz is also currently charged with murder in Essex County Superior Court.
United States Attorney Andrew Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Lowell Police Superintendent Raymond Kelly Richardson made the announcement. Assistant U.S. Attorney Philip C. Cheng of Lelling’s Narcotics and Money Laundering Unit prosecuted 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. 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.
Brockton Man Pleads Guilty to Firearms ChargeRead the Press Release
BOSTON – A Brockton man pleaded guilty today in federal court in Boston to being a felon in possession of a firearm and ammunition.
Anibal Pires, 29, pleaded guilty to one count of being a felon in possession of a firearm and ammunition before U.S. District Court Judge Allison D. Burroughs, who scheduled sentencing for June 16, 2020.
On Nov. 29, 2018, Pires was found in Brockton in possession of a Taurus PT111, 9mm pistol and 10 rounds of 9 mm ammunition. Due to a prior felony conviction punishable by more than one year incarceration, Pires in prohibited from possessing firearms and ammunition.
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 and Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement today. Valuable assistance was provided by the Brockton Police Department and the Norfolk County District Attorney’s Office. Assistant U.S. Attorney William B. Brady of Lelling’s Criminal Division is prosecuting the case.