District of Massachusetts
Press releases recorded for this federal judicial district.
Boston Man Indicted for Distributing Fentanyl and Crack CocaineRead the Press Release
BOSTON – A Boston man was yesterday today in federal court in Boston with drug distribution.
David A. Wood, 30, was indicted on two counts of distribution and possession with intent to distribute fentanyl, one count of distribution and possession with intent to distribute crack cocaine, and one count of possession with intent to distribute fentanyl. Wood was previously charged by criminal complaint and has been in custody since his arrest on Dec. 19, 2019.
According to the charging documents, Wood distributed fentanyl in Boston on Nov. 26 and Dec. 3, 2019, and distributed crack cocaine in Boston on Dec. 10, 2019.
The charge of distributing or possessing with intent to distribute controlled substances provides for a sentence of up to 20 years in prison, three years to a lifetime of supervised release, and a fine of up to $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 and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Belgian National Sentenced for Scam Targeting Charities and Law FirmsRead the Press Release
BOSTON – A Belgian man was sentenced today in federal court in Boston for participating in an e-mail scam that used counterfeit cashier’s checks to defraud charities and law firms.
Aref Zokita Said, 37, of Belgium, was sentenced by U.S. District Court Judge Douglas P. Woodlock to 60 months in prison, three years of supervised release and ordered to pay restitution in the amount of $1,631,478. In October 2019, Said pleaded guilty to eight counts of wire fraud and conspiracy to commit wire fraud.
Beginning no later than August 2013, Said and his co-conspirators defrauded law firms and non-profits, including charities, by sending them fraudulent cashier’s checks and convincing them to wire money to members of the scheme, with the false assurance that the fake checks would cover the expense. Once the checks were discovered to be fraudulent—after the victims’ bank accounts were debited—the victims were left with thousands of dollars in losses, having unwittingly forwarded their own money to a member of the conspiracy.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Joseph W. Cronin, Special Agent in Charge for the U.S. Postal Inspection Service made the announcement today. Assistant U.S. Attorney Kristen Kearney of Lelling’s Securities and Financial Fraud Unit prosecuted the case.
Springfield Golf Pro and Home Builder Charged in Superseding Indictment with Making False Statements to a BankRead the Press Release
BOSTON – A federal grand jury in Springfield returned a superseding indictment today charging a Springfield golf professional and a home builder with an additional charge of making false statements to a federally insured institution.
Kevin M. Kennedy, 41, of East Longmeadow, and Kent S. Pecoy, 62, of Wilbraham, were each charged in a superseding indictment with one count of making a false statement to a federally insured financial institution.
According to the superseding indictment, on Jan. 19, 2010, Kennedy and Kent Pecoy made false statements to Charles Schwab Bank on a loan to Kennedy and his wife for the construction of a residence in East Longmeadow in an attempt to conceal a $160,000 cash down payment. These false statements included understating the sale price of the residence lot, the price of the construction, and the deposit and earnest money paid by Kennedy.
On Dec. 19, 2019, the initial indictment charged Kennedy with three counts of theft concerning programs receiving federal funds, four counts of wire fraud, four counts of engaging in monetary transactions in excess of $10,000 with the proceeds of specified unlawful activity, eight counts of money laundering, four counts of filing a false tax return, and one count of conspiracy to defraud the United States. In addition, Kent Pecoy and Jason Pecoy, 39, also of Wilbraham, were also charged with conspiracy to defraud the United States.
The charge of making a false statement provides for a sentence of up to 30 years in prison, five years of supervised release, and a fine of $1 million. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent In Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorney Steven H. Breslow of Lelling’s Springfield Branch Office and Christopher O’Donnell of the Justice Department’s Criminal Division are prosecuting the case.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former State Senator’s Accountant Sentenced for Tax FraudRead the Press Release
BOSTON—John H. Nardozzi, a certified public accountant for former State Senator Brian Joyce, was sentenced today for conspiring with the late senator to defraud the IRS from 2011 through 2014.
Nardozzi, 68, of Waltham, was sentenced by U.S. District Court Judge William G. Young to 18 months in prison and three years of supervised release.
In October 2019, Nardozzi was convicted after a seven-day trial of conspiring with Joyce to defraud the IRS of approximately $600,000 by manipulating income that should have been reported on Joyce’s corporate tax return and by applying it to Joyce’s personal tax return. Nardozzi was also convicted of fraudulently creating a simplified-employee pension plan (SEP) for Joyce and his wife, to which they were not otherwise entitled. In doing so, Nardozzi enabled Joyce and his wife to defer taxes on over $400,000 of income, including income that Joyce falsely attributed to his wife. Nardozzi also assisted Joyce in an illegal rollover of Joyce’s SEP account to purchase stock in a private company without following the IRA rollover rules.
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 Investigation in Boston, made the announcement today. Assistant U.S. Attorneys Dustin Chao and Evan Gotlob of Lelling’s Public Corruption and Special Prosecutions Unit prosecuted the case.
Boston Career Criminal Pleads Guilty to Drug and Firearm ChargesRead the Press Release
BOSTON – A career criminal, still on supervised release from a previous federal drug trafficking conviction, pleaded guilty today in federal court in Boston to drug trafficking and firearm charges.
Damien Bynoe, 44, of Roxbury, pleaded guilty to one count each of being a felon in possession of a firearm and ammunition and possession with intent to distribute heroin and cocaine. U.S. District Court Judge William G. Young scheduled sentencing for April 29, 2020.
On Jan. 19, 2019, police officers executed a search warrant and seized a loaded gun, heroin and cocaine from an apartment in Roxbury tied to Bynoe, as well as additional amounts of heroin and cocaine from Bynoe himself.
In 2009, Bynoe was convicted in federal court in Boston of distribution of cocaine base within 1000 feet of a school. For that offense, Bynoe was sentenced to six years in prison and six years of supervised release. While on supervised release, Bynoe was arrested and charged with the offenses he was sentenced for today.
According to court documents, Bynoe’s criminal record also includes a 2007 conviction for assault with a firearm; a 2001 conviction for distribution of cocaine in a school zone, for which he served five years in prison; and a 1991 juvenile delinquency adjudication for murder and unlawful possession of a firearm, in which Bynoe shot and killed two teenagers on a Roxbury street.
On the felon in possession of a firearm charge, based on his prior criminal record, Bynoe faces a mandatory minimum sentence of 15 years and up to life in prison, up to five years of supervised release and a fine of up to $250,000. The charge of possession with intent to distribute heroin and cocaine provides for a sentence of up to 30 years in prison, at least six years of supervised release and a fine of up to $2 million. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Commissioner William Gross made the announcement today. Assistant U.S. Attorney Christopher Pohl of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
Three Dominican Nationals Indicted for Fentanyl ConspiracyRead the Press Release
BOSTON – Three Dominican nationals living in Lawrence were indicted today by a federal grand jury in a four-count indictment.
Francis Jimenez Minyetty, 38, Enmanuel Brioso Fabal, 29, and Nieves Guzman, 32, were indicted for conspiracy to distribute and possession with intent to distribute fentanyl. The defendants were charged by criminal complaint and arrested on Nov. 2, 2019.
According to court documents, investigators conducted two controlled purchases of suspected fentanyl from Brioso Fabal and Jimenez Minyetty: approximately 500 suspected fentanyl pills on Aug. 5, 2019, and approximately 55 grams of suspected fentanyl powder on Sept. 26, 2019. On Nov. 2, 2019, investigators executed a search warrant at a suspected stash house in Lawrence associated with this drug organization and encountered Guzman, who had a kilogram brick of fentanyl in her purse. At the stash house, investigators also located various drug distribution paraphernalia, including a mixing bowl containing suspected fentanyl, sifters and blenders.
The charge of conspiracy to distribute and to possess with intent to distribute 40 grams or more of fentanyl, and distribution of 40 grams or more of fentanyl —applicable to Brioso Fabal and Jimenez Minyetty—carries a mandatory minimum sentence of five years and up to 40 years in prison, at least 4 years of supervised release and a fine of $5 million. The charges of possession with intent to distribute 400 grams or more of fentanyl and conspiracy to distribute 400 grams or more of fentanyl—applicable to Guzman— carry a mandatory minimum sentence of 10 years and up to life in prison, at least five years of supervised release and a fine of $10 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 and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. The case is being prosecuted by Lelling’s Narcotics and Money Laundering Unit.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
New York Man Sentenced for Assault Aboard Cruise ShipRead the Press Release
BOSTON – A New York man was sentenced today in federal court in Boston for assaulting a woman aboard a cruise ship.
Adam Damian Panetta, 45, of Farmingville, N.Y., was sentenced by U.S. District Court Judge Leo T. Sorokin to two months in prison, two years of supervised release and a $1,000 fine. In September 2019, Panetta pleaded guilty to one count of assault resulting in substantial bodily injury. Panetta was arrested and charged in April 2019.
On April 25, 2019, while aboard the Norwegian Cruise Line’s Gem, Panetta was observed on surveillance video pulling a woman by her hair down the full length of a hallway. The two were then observed outside one of the cabins. While Panetta attempted to open the cabin door, the woman stuck Panetta in the face with an open hand. Panetta then turned toward the woman and punched her twice in the side of her head with a closed fist. The woman fell to the ground and appeared to be unconscious. Panetta then entered the cabin and left the woman on the floor in the hallway. After about one minute, Panetta came out of the cabin and leaned down to the woman, who was unresponsive. Eventually, the woman began to crawl into the room. Panetta did not appear to assist her, and as she began to crawl, Panetta kicked her twice in the buttocks. He then followed her into the room.
The two left the room a short while later and the woman was holding a white towel over her head, which appeared to be stained with blood. The two arrived at the ship’s medical center where the woman was treated for her injuries, which included approximately 8cm of swelling on the right side of her head as well as a 2.5 cm laceration that required five stiches.
At the time of the alleged assault, the ship was approximately 200 miles off the coast of Massachusetts. Panetta was taken into custody when the ship arrived into port in Boston.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit prosecuted the case.
Mexican National Sentenced on Heroin Trafficking ChargesRead the Press Release
BOSTON – A Mexican national was sentenced yesterday in federal court in Boston in connection with drug trafficking activities that resulted in the seizure of four kilograms of heroin.
Miguel Angel Morales Torres, 40, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 46 months in prison and two years of supervised release. Morales Torres will be subject to deportation proceedings upon completion of his sentence. In October 2019, Torres Morales pleaded guilty to one count of possession with the intent to distribute one kilogram or more of heroin.
In August 2018, a cooperating witness arranged to purchase four kilograms of “china white,” referring to fentanyl, from a large-scale narcotics distributor for $55,000 per kilogram. The distributor agreed to deliver the drugs to the cooperating witness using a courier. On Aug. 20, 2018, Torres Morales drove a tractor trailer to the area of the “Park and Ride” parking lot on Granite Avenue in Milton to deliver the drugs. Federal agents stopped the tractor trailer and, in a cabinet behind the driver’s seat, located four brick-packed kilograms of heroin wrapped in cellophane.
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. Assistant U.S. Attorney Lauren A. Graber and Alathea Porter of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
Florida Man Sentenced for Wire Fraud Conspiracy, Aggravated Identity Theft and FEMA FraudRead the Press Release
BOSTON – A Florida man was sentenced yesterday in federal court in Boston in connection with the fraudulent abuse of the U.S. Postal Service’s (USPS) Informed Delivery electronic notification system, and in connection with FEMA fraud.
Kevens Louis, 26, of Plantation, Fla., was sentenced by U.S. District Court Judge Richard G. Stearns to 27 months in prison and one year of supervised release. In June 2019, Louis pleaded guilty to one count of conspiracy to commit wire fraud and one count of aggravated identity theft. Louis and his co-conspirators, Fred Alcius, Lucson Appolon, and Peter Belony were charged with conspiracy to commit wire fraud in April 2019. Appolon and Belony previously pleaded guilty and were sentenced to two years in prison and three years of supervised release. Alcius remains a fugitive.
Informed Delivery is a free electronic notification service provided by the USPS that gives residential and P.O. Box customers the ability to digitally preview their incoming mail and manage their packages.
The defendants accessed victims’ personal identifying information, including names, Social Security numbers, dates of birth, and addresses on the “dark web” and then used the information to open credit cards in the victims’ names. The defendants then subscribed to Informed Delivery using the victims’ personal identifying information and a fraudulent email address created to track the delivery of credit cards to the victims’ residential mailboxes. The defendants subsequently intercepted the credit cards at mailboxes before the victims could receive them. The credit cards were then used by the defendants at ATMs and to purchase gift cards and other items for resale at retail establishments. The defendants traveled to states across the East Coast in furtherance of the fraud, including New Hampshire, Maine and Massachusetts.
Louis’s sentencing also resolved charges initially brought by the Southern District of Florida involving fraud in connection with a major disaster and aggravated identity theft. Specifically, on various occasions in 2017, Louis fraudulently submitted claims to FEMA for assistance.
United States Attorney Andrew E. Lelling and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. Valuable assistance was provided by the U.S. Attorney’s Office in the Southern District of Florida; Federal Bureau of Investigation, Boston Field Office; Homeland Security Investigations in Boston; and the Concord, Fort Lauderdale (Fla.), Harvard, Kittery (Maine), Norfolk, Plantation (Fla.) Sherborn, and Weston Police Departments. Assistant U.S. Attorney Mackenzie A. Queenin of Lelling’s Cybercrime Unit prosecuted the case.
The details contained in the indictment are allegations. The remaining defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Dominican National Charged with Aggravated Identity TheftRead the Press Release
BOSTON – A Dominican national residing in Hyde Park was arrested yesterday on charges of aggravated identity theft and misuse of a passport.
Yris Sanchez, 48, was charged by a complaint with one count of misuse of a passport and one count of aggravated identity theft. Following an initial appearance, Sanchez was detained pending a detention hearing scheduled for Jan. 10, 2020.
According to court documents, Sanchez used the name and Social Security number of a U.S. citizen to apply for and use various U.S. Passports and at least one Massachusetts REAL ID driver’s license. Sanchez also used this person’s identifiers to apply for and use accounts with various banks, including Citizens Bank and Santander. In addition, Sanchez also used a different identity to obtain another U.S. Passport. Sanchez has previously been arrested under multiple identities.
The charge of misuse of a passport 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 aggravated identity theft provides for a mandatory two year sentence to be served consecutive to any other sentence imposed, 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 William B. Gannon, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service made the announcement today. Assistant U.S. Attorney Bill Abely, Deputy Chief of Lelling’s Major Crimes Unit, is prosecuting the case.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Norwood Woman Pleads Guilty to Distributing Synthetic Marijuana into State Correctional FacilitiesRead the Press Release
BOSTON – A Norwood woman pleaded guilty yesterday in federal court in Boston to distributing synthetic marijuana into state correctional facilities.
Caitlin Marcey, 27, pleaded guilty to distribution of a controlled substance before U.S. District Judge Patti B. Saris who scheduled sentencing for April 28, 2020. Marcey was arrested and charged in June 2019.
Marcey mailed papers soaked in synthetic marijuana, or “K2,” to Massachusetts correctional facilities. The most common means of doing so is by soaking or spraying synthetic marijuana onto documents and then transporting those documents, either in person or by mail, into the jail, where they can be smoked. It is also common to attempt to include documents soaked in synthetic marijuana in mailings disguised as legal mail, as this mail is generally not subjected to rigorous screening due to attorney-client privilege.
In November 2018, investigators at the Souza Baranowksi Correctional Center (SBCC) in Lancaster, Mass., monitored recorded jail calls during which Marcey arranged for the delivery of synthetic marijuana. Investigators subsequently intercepted mail sent by Marcey that purported to be an attorney mailing to an SBCC inmate. The records inside the mailing tested positive for synthetic marijuana.
The charge of distribution of a controlled substance provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, New England Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; Worcester County Sheriff Lew Evangelidis; and Worcester Police Chief Steven M. Sargent made the announcement today. Assistant U.S. Attorneys Greg A. Friedholm and John T. Mulcahy of Lelling’s Worcester Branch Office are prosecuting the case.
Member of ATM Skimming Conspiracy Targeting Multiple New Jersey Bank Locations Sentenced to 60 Months in PrisonRead the Press Release
A New York man was sentenced today to 60 months in prison followed by three years of supervised release for participating in a scheme that used secret card-reading devices and pinhole cameras on various New Jersey bank locations to steal at least $390,141.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Craig Carpenito for the District of New Jersey, Special Agent in Charge Brian Michael of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Newark, and Special Agent in Charge Thomas P. Baker of the U.S. Secret Service, Boston Field Office, made the announcement.
Bogdan Rusu, 39, of Queens, New York, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of conspiracy to commit bank fraud. Judge Salas imposed the sentence today in Newark federal court.
According to court documents and statements made in court, from August 2014 to November 2016, Rusu and others engaged in a widespread bank fraud conspiracy that targeted various banks in Massachusetts, New York and New Jersey. Rusu and others captured payment card account information from customers as they accessed their accounts through automatic teller machines (ATMs) and then used that information to steal money from the customers’ bank accounts. As part of the scheme, Rusu and others installed devises on ATMs in New Jersey and elsewhere to illegally obtain customer account information, including account numbers and personal identification numbers. Rusu and others would then transfer the illegally obtained information to counterfeit payment cards and use those counterfeit cards to steal money from the accounts. 11 other defendants charged in this scheme have pleaded guilty.
HSI, along with special agents of the U.S. Secret Service, Boston Field Office; Massachusetts State Police; TD Bank Fraud Investigations; East Longmeadow, Massachusetts, Police Department; Cambridge, Massachusetts, Police Department; Ludlow, Massachusetts, Police Department, and Medford, Massachusetts, Police Department, with assistance from the victim banks, conducted the investigation. The Middlesex County, Massachusetts, District Attorney’s Office; U.S. Attorney’s Office of the Eastern District of New York and U.S. Attorney’s Office of the District of Massachusetts, Springfield Division assisted in the investigation and prosecution.
Trial Attorney Marianne Shelvey of the Justice Department’s Criminal Division Organized Crime and Gang Section and Assistant U.S. Attorney Angelica Sinopole of the U.S. Attorney’s Office Criminal Division Organized Crime and Gangs Unit in Newark prosecuted the case.
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.
Ludlow Woman Sentenced for Bank FraudRead the Press Release
BOSTON – A Ludlow woman was sentenced today in federal court in Springfield for bank fraud.
Beth Zastawny, 53, was sentenced by U.S. District Court Judge Mark G. Mastroianni to one day in prison and three years of supervised release. In the first year of supervised release, the defendant will be subject to home confinement. In May 2019, Zastawny pleaded guilty to one count of bank fraud and three counts of money laundering.
Zastawny committed bank fraud in connection with a $4.2 million loan package for her Chicopee-based company, Diecast Connections Company Inc. In January 2015, Blue Hills Bank, relying upon Zastawny’s false representations, extended the loans. Zastawny submitted fake financial statements to the bank, and made false representations about Diecast’s assets and liabilities in order to make it appear that Diecast’s financial condition was much stronger than it actually was. After obtaining the loan proceeds, Zastawny paid back creditors who had not been disclosed to the bank, and the funds were used for purposes not called for in the loan agreement between Diecast and Blue Hills Bank. In July 2016, Blue Hills Bank foreclosed on the loan after Zastawny failed to meet the terms of the loan agreement, which resulted in a substantial loss for the bank.
United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office prosecuted the case.
Dominican National Living in Lawrence Sentenced for Possession of Fentanyl with Intent to DistributeRead the Press Release
BOSTON – A Dominican national was sentenced today in federal court in Boston for possession with intent to distribute fentanyl.
Santos Obispo Guerrero Lara, 35, was sentenced by U.S. District Court Judge Allison D. Burroughs to time served (approximately seven months). In October 2019, Guerrero Lara pleaded guilty to one count of possession with intent to distribute fentanyl.
Lara attempted to sell approximately 20g of fentanyl to an undercover agent. Lara was arrested in Lawrence on June 6, 2019, as part of a 10-week coordinated enforcement operation in the Merrimack Valley called “Devil’s Highway.” The operation targeted the distribution of opioids, including fentanyl and heroin, and resulted in charges against a total of 40 people for federal drug offenses, with at least a dozen more individuals facing state charges.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Jason J. Molina, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Boston made the announcement today. Valuable assistance was provided by the Andover Police Department. Assistant U.S. Attorney Mackenzie A. Queenin of Lelling’s Criminal Division prosecuted the case.
Worcester Food Market Settles Allegations of Food Safety Law ViolationsRead the Press Release
BOSTON – Makola Market, a retail food store in Worcester, has entered into a consent decree with the government to resolve allegations that it continually violated the Federal Meat Inspection Act (FMIA) by selling and offering for sale non-federally inspected meat products.
Under the consent decree, Makola Market and its owner and manager, Comfort Russell, face significant penalties if violations of the FMIA continue. The consent decree also permanently enjoins Makola Market and Ms. Russell from further violating the FMIA and provides investigators with broad access for inspection of the premises and business records in the future.
“Consumers should be able to trust that the food they buy is produced and sold under safe and sanitary conditions,” said United States Attorney Andrew E. Lelling. “This consent decree establishes procedures to prevent this business and its owner from further jeopardizing the health of consumers.”
“Our inspection personnel are on the job daily, verifying that establishments are providing consumers with safe, wholesome, and properly labeled meat products,” said Carmen Rottenberg, FSIS Administrator. “The consent decree agreed to by Makola Market provides our investigators with broad access to the premises and business records so that we can be confident in the safety of their meat products.”
The government filed its complaint after investigators with the Food Safety and Inspection Service (FSIS) of the U.S. Department of Agriculture (USDA) repeatedly issued written warnings to Makola Market and Ms. Russell to stop purchasing, offering for sale, and selling misbranded meat food products that were not inspected by the USDA. In addition, FSIS investigators cited Makola Market for failing to maintain the required business records of the purchase and sale of these meat food products. During the latest USDA inspection, investigators observed Makola Market offering for sale federally uninspected uncooked beef heads to retail customers and failed to maintain the necessary business records documenting the origin of these beef heads.
The government filed the proposed consent decree, which is subject to judicial approval.
U.S. Attorney Lelling and FSIS Administrator Rottenberg made the announcement today. Assistant U.S. Attorney Anita Johnson of Lelling’s Civil Division handled the case.
Chelsea Man Charged as Felon in Possession of FirearmRead the Press Release
BOSTON – A Chelsea man was arrested on Dec. 27, 2019, and charged with being a felon in possession of a firearm.
Semaj Leary was charged in an indictment with one count of being a felon in possession of a firearm. Following an initial appearance and arraignment in federal court in Boston today, Leary was detained pending a detention hearing set for Jan. 2, 2020.
According the indictment, on Aug. 15, 2019, Leary was found in possession of a 9mm Glock semi-automatic pistol, seven rounds of R-P 9mm caliber ammunition, four round of WIN 9mm caliber ammunition, two rounds of VPT 9mm caliber ammunition, one round of WCC 9mm caliber ammunition, and one round of Tulammo 9mm caliber ammunition. Leary had previously been convicted of being a felon in possession of a firearm and other crimes punishable by more than a year in jail, and therefore was prohibited from possessing firearms.
The charging statute provides for a sentence of no greater than 10 years in prison, up to three years of supervised release, and a fine of $250,000 or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Suffolk County District Attorney Rachel Rollins; and Boston Police Commissioner William Gross made the announcement today.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Natick Man Charged with Fentanyl and Methamphetamine TraffickingRead the Press Release
BOSTON – A Natick man has been indicted by a federal jury in Boston in connection with drug trafficking activities involving fentanyl.
Rafael Ashworth, 27, was indicted on Dec. 18, 2019, on one count of possession with intent to distribute 40 grams or more of fentanyl and 50 grams or more of methamphetamine. Ashworth was arrested by state authorities on Nov. 17, 2019, and charged by federal criminal complaint on Nov. 21, 2019. He is currently in federal custody.
According to court documents, after responding to a report of an overdose death at Ashworth’s apartment, police found Ashworth with approximately 100 grams of a substance containing both fentanyl and methamphetamine along with other paraphernalia associated with drug packaging and distribution. Police also found a deceased woman in the apartment, who is believed to have died from a fentanyl overdose.
The charge of possession with intent to distribute more than 40 grams of fentanyl and 50 grams or more of methamphetamine carries a mandatory minimum sentence of five years and up to 40 year in prison, at least four years of supervised release, and a fine of up to $5 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 and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division, made the announcement. Special assistance was provided by the Natick Police Department and the Massachusetts State Police. Assistant U.S. Attorneys Leah Foley and Stephen Hassink of Lelling’s Narcotics and Money Laundering 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.
Two Former Pharmacists at New England Compounding Center Sentenced in Connection with 2012 Fungal Meningitis OutbreakRead the Press Release
BOSTON – Two former verification pharmacists at New England Compounding Center (NECC) have been sentenced in federal court in Boston for violating the Food, Drug, and Cosmetic Act (FDCA).
Michelle L. Thomas, 35, of Cumberland, R.I., was sentenced today by U.S. District Court Judge Richard G. Stearns to one year of probation. Yesterday, Judge Stearns sentenced Kathy S. Chin, 47, of Canton, to two years of probation. In May 2019, Thomas and Chin were convicted by a federal jury of two and four felony counts, respectively, of dispensing drugs without valid prescriptions with the intent to defraud or mislead government regulators and customers.
NECC, a licensed pharmacy, routinely dispensed drugs in bulk without valid prescriptions. Chin and Thomas served as verification pharmacists, signing off on drug orders prior to shipment to customers. Chin was convicted of approving shipments of drugs for patients with names such as Flash Gordon, Long John, Tony Tiger, Chester Cheeto, Dale Earnhardt, Tom Brokaw, Jon Stewart, Jay Leno, David Letterman, and Dick Van Dyke, among others. Thomas was convicted of approving shipments of drugs for patients with names such as L.L. Bean, Filet O’Fish, Rug Doctor, Squeaky Wheel, Dingo Boney, Coco Puff, and Harry Potter, among others.
Chin and Thomas dispensed these and other bulk orders of prescription drugs with the intent to defraud and mislead state and federal government regulators. Specifically, NECC repeatedly took steps to shield its operations from regulatory oversight by the Food and Drug Administration (FDA) by claiming to be a pharmacy dispensing drugs pursuant to valid, patient-specific prescriptions. The jury heard evidence that the fake prescriptions, along with numerous other bulk drug orders, approved by Chin and Thomas allowed NECC to operate as an unregulated drug manufacturer.
In June 2017, Barry Cadden, the former owner and head pharmacist for NECC, was sentenced to nine years in prison and three years of supervised release after being convicted of racketeering, racketeering conspiracy, mail fraud, and introduction of misbranded drugs into interstate commerce with the intent to defraud and mislead. In January 2018, Glenn Chin, NECC’s former supervisory pharmacist, was sentenced to eight years in prison and two years of supervised release after being convicted of 77 counts. In total, 13 NECC defendants have been convicted of 178 charges.
United States Attorney Andrew E. Lelling; FDA Commissioner Dr. Stephen M. Hahn; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Leigh-Alistair Barzey, Special Agent in Charge of the Defense Criminal Investigative Service, Northeast Field Office; Sean Smith, Special Agent in Charge of the Department of Veterans Affairs Office of Inspector General, Criminal Investigations Division; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division, made the announcement today. Assistant U.S. Attorneys Amanda P.M. Strachan, Chief of Lelling’s Health Care Fraud Unit, and Christopher Looney prosecuted the case.
Regional President of Outlaws Motorcycle Club Indicted on Firearms ChargesRead the Press Release
BOSTON – The regional president of the Outlaws Motorcycle Club was indicted yesterday by a federal grand jury in Boston for possession of an unregistered firearm.
Bruce Sartwell, a/k/a “Monster,” 48, of East Bridgewater, was indicted on one count of possession of an unregistered firearm. Sartwell was charged by criminal complaint and arrested in October 2019.
As alleged in the charging documents, Sartwell is the Regional President of the Brockton/East Bridgewater Chapters of the Outlaws Motorcycle Club. On Oct. 19, 2019, agents intercepted a package originating in China and addressed to Sartwell that was declared as a “Fuel Filter” but actually contained a firearm silencer. A review of importation records revealed that Sartwell had received approximately 65 shipments from Asia (over 55 from China), many of which were labeled as innocuous items that could have been more easily and cheaply purchased in the United States.
On Oct. 30, 2019, a search was executed at Sartwell’s residence where an AR-15 styled “ghost gun” – a firearm without any manufacturing or serial numbers – and firearm manufacturing tools, assembly parts including milling equipment, buffer spring, buffer tube, air-powered water dremel polish and a drill press were recovered.
In addition, two firearm silencers were found concealed in false bottom compartments, a guide for assembly and disassembly of an AR-15 rifle, 20 knives, a black powder handgun, a flare gun and various ammunition compatible with the AR-15 styled rifle. In the basement of the house, a floor-length mirror concealed the entrance to a hidden storage area that was found to contain a safe with silencer parts and a firearm assembly instruction book.
The charge of possession of an unregistered firearm provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based 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 Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, New England Field Division made the announcement today. The U.S. Postal Inspection Service; Customs and Boarder Protection; Massachusetts State Police; East Bridgewater Police Department; Bristol County Sheriff’s Office; and the Massachusetts Environmental Protection Agency provided assistance with the investigation. Assistant U.S. Attorney Linsey Weinstein 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.
Malden Woman Charged with Bank FraudRead the Press Release
BOSTON – A Malden woman was arrested and charged yesterday in connection with a scheme to embezzle more than $795,000 from her employer.
Kayla Figelski, 32, was charged with one count of bank fraud. Figelski was released on conditions following an initial appearance in federal court in Boston yesterday.
As alleged in the criminal complaint, between April 2017 and June 2019, Figelski stole at least $795,000 from her employer, a law firm in Malden. Figelski allegedly forged checks to herself from her employer’s checking accounts, including conservatorship and trust accounts her employer maintained for its elderly clients and their estates, and deposited the checks into her own account, from which she withdrew the funds, or directly cashed the checks. To hide her scheme, Figelski allegedly modified bank statements to make it appear that the checks were written out to legitimate vendors rather than to Figelski.
The charge of bank fraud provides a sentence of up to 30 years in prison, five years of supervised release, and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling 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 Malden Police Department. Assistant U.S. Attorney Kristen A. Kearney of Lelling’s Securities and Financial Fraud 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.
Lawrence Man Charged with Fentanyl TraffickingRead the Press Release
BOSTON – A Lawrence man has been indicted by a federal grand jury in Boston in connection with drug trafficking activities involving fentanyl.
Cecilio Guzman, 27, was indicted on Dec. 18, 2019, on one count of distribution and possession with intent to distribute 40 grams or more of fentanyl. Guzman was previously charged by complaint and arrested by state authorities on Nov.20, 2019. He is currently in federal custody.
According to court documents, it is alleged that Guzman arranged to sell 120 grams of fentanyl to a cooperating witness for the government. On Nov. 20, 2019, Guzman met with that witness in Lawrence, sold him the fentanyl, and was subsequently arrested.
The charge of distribution and possession with intent to distribute more than 40 grams of fentanyl carries a mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release, and a fine of up to $5 million. 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 Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division, made the announcement today. The investigation was conducted with the assistance of the Andover, Haverhill, Lawrence, Lowell, and Wilmington Police Departments. Special assistance was provided by the Essex District Attorney’s Office. Assistant U.S. Attorney Stephen Hassink of Lelling’s Narcotics and Money Laundering 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.
Guatemalan National Sentenced for Illegal ReentryRead the Press Release
BOSTON – A Guatemalan national wanted for arrest in his home country of Guatemala was sentenced today in federal court in Boston.
Francisco Cuxum Alvarado, a/k/a Francisco Cuxun-Alvarado, 64, was sentenced by U.S. District Court Judge Indira Talwani to six months in prison. Following his sentence, Cuxum Alvarado will be subject to extradition to Guatemala. In September 2019, Cuxum Alvarado pleaded guilty to one count of illegal reentry into the United States, and has been detained since he was indicted in May 2019.
“The United States will not serve as a safe haven for individuals sought for prosecution abroad,” said United States Attorney Andrew E. Lelling. “After service his sentence in the U.S., Mr. Cuxum Alvarado will be returned to Guatemala to face prosecution for his alleged crimes.”
“Cuxum Alvarado will now face removal to his own country,” said Jason Molina, Acting Special Agent in Charge of Homeland Security Investigation in Boston. “By holding Cuxum Alvarado accountable for his violations of U.S. immigration law, today’s sentencing allows for the next critical stage in this case. That’s a fitting next step in the search for justice sought by Guatemala.”
The prosecutor presented evidence that Cuxum Alvarado was implicated in crimes against humanity by participating in the mass sexual assault of indigenous women in Guatemala in the early 1980s. The Guatemalan government obtained an INTERPOL Red Notice in 2018 for Cuxum Alvarado’s arrest, which is a request to law enforcement agencies worldwide to locate and provisionally arrest suspects pending extradition to the jurisdiction in which they are charged.
On April 30, 2019, Cuxum Alvarado was located in Waltham and arrested. At the time of his arrest, Cuxum Alvarado was unlawfully in the United States. He previously unlawfully entered the country in March 2004 in Arizona, and was ordered to be removed.
U.S. Attorney Lelling and Acting HSI Boston SAC Molina, made the announcement today. The Waltham Police Department and the HSI Attaché in Guatemala City, Guatemala assisted in the investigation. Assistant U.S. Attorney Scott L. Garland, Deputy Chief of Lelling’s National Security Unit, prosecuted the case.
Former Pharmaceutical Sales Representative Convicted for Insurance Fraud and Aggravated Identity TheftRead the Press Release
BOSTON – A federal jury in Boston convicted an Illinois man yesterday of defrauding insurance companies in relation to a high-priced drug made by Cambridge-based pharmaceutical company Aegerion Pharmaceuticals Inc., and for using the identities of physicians to carry out the fraud.
Mark Moffett, 47, of Springfield, Ill., was convicted of nine counts of wire fraud and six counts of aggravated identity theft. U.S. District Court Judge William G. Young scheduled sentencing for April 9, 2020.
“Mr. Moffett stole doctors’ identities, obtained fraudulent prescriptions, falsified test results, and forged insurance documents in an effort to sell a powerful drug,” said United States Attorney Andrew E. Lelling. “He ignored the serious consequences it could have on patients’ health, caring more about lining his own pockets. Mr. Moffett’s conviction is part of our ongoing effort to hold pharmaceutical companies accountable for violating laws that protect patient safety and the integrity of the health care system.”
“Mark Moffett took matters into his own hands by defrauding Medicare and potentially putting patients’ health at risk for his own financial benefit,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “The FBI would like to thank the jury for their swift verdict, and we will continue to vigorously investigate healthcare fraud matters to protect the public’s interest.”
“Greed was at the very core of Mark Moffett’s scheme to defraud our federal healthcare system,” said Phillip M. Coyne, Special Agent in Charge for the U.S. Department of Health & Human Services, Office of Inspector General. “This type of fraud is corrosive, wastes taxpayer funds, and drives up healthcare costs. We will continue to aggressively root out these fraud schemes and bring criminals to justice.”
“The Employee Benefits Security Administration is pleased to have had the opportunity to work collaboratively with our law enforcement partners on this investigation. I commend the exceptional work performed by our investigators and their law enforcement partners. This office will continue to vigorously pursue cases where participants and private sector health benefit plans are victimized by unscrupulous and illegal pharmaceutical sales practices,” said Carol S. Hamilton, Acting Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office
In 2014 and 2015, Moffett, a pharmaceutical sales representative for Aegerion, marketed the company’s cholesterol drug Juxtapid. Juxtapid was approved by the FDA only to treat high cholesterol in patients with a rare genetic disease called homozygous familial hypercholesterolemia (“HoFH”). The FDA approved the drug only to treat HoFH patients because the drug carried serious risks of side effects, including liver damage. The drug’s label included a black box warning.
Moffett nonetheless convinced doctors to prescribe Juxtapid, which costs over $300,000 per year, for patients without HoFH. In order to defraud Medicare and private sector employee health plans into paying for a drug they only covered for FDA-approved uses, Moffett obtained fraudulent prescriptions and falsified numerous documents, including statements of medical necessity and other insurance documents. This included false patient test results, false clinical histories and false diagnoses. Moffett used the identities of several cardiologists to carry out the fraud. He was paid bonuses by Aegerion of up to $11,000 for each prescription of Juxtapid.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 per count. The charge of aggravated identity theft provides for a mandatory minimum sentence of two years in prison to be serve consecutive to any other sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Lelling, FBI Boston SAC Bonavolonta, HSI-OIG SAC Coyne, and DOL-EBSA Acting Regional Director Hamilton made the announcement. Assistant U.S. Attorneys Kriss Basil, of Lelling’s Securities and Financial Fraud Unit, and Rachel Y. Hemani, of Lelling’s Health Care Fraud Unit, are prosecuting the case.
Boston Man Sentenced for Selling Crack Cocaine to Bedford VA Medical Center ResidentsRead the Press Release
BOSTON – A Boston man was sentenced yesterday in federal court in Boston for distributing crack cocaine.
Austin Wilkerson, 41, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to three years of probation. In 2018, Wilkerson pleaded guilty to three counts of distributing cocaine base, also known as crack cocaine, on the Veterans Affairs Medical Center campus in Bedford.
In January 2017, a cooperating witness reported to law enforcement that Wilkerson was selling crack cocaine to Michael Sexton, a resident at the Veterans Affairs Medical Center. On July 27, Aug. 10, and Sept. 5, 2017, Wilkerson provided crack cocaine to Sexton, who then sold it to the cooperating witness at the Veterans Affairs Medical Center in Bedford.
In October 2019, Sexton was sentenced to time served (approximately two months) and two years of supervised release.
United States Attorney Andrew E. Lelling; Sean J. Smith, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office; Brian Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; and F. Todd Foreman, Chief of Police of the U.S. Department of Veterans Affairs Police Service, Bedford VA Medical Center, made the announcement today. Assistant U.S. Attorney Nicholas Soivilien and Timothy Moran of Lelling's Criminal Division prosecuted the case.
Boston Man Indicted for Bank RobberyRead the Press Release
BOSTON – A Boston man was indicted yesterday by a federal grand jury in Worcester for the October 2019 robberies of the TD Bank in Worcester and the East Boston Savings Bank in Revere.
Samuel Jose Baptista, 27, was indicted on two counts of bank robbery. In November 2019, Baptista was charged by criminal complaint.
According to charging documents, on Oct. 20, 2019, Baptista entered a branch of TD Bank in Worcester and demanded $10,000 from the bank teller. On Oct. 26, Baptista entered a branch of the East Boston Savings Bank in Revere and demanded $20,000. In both instances, Baptista threatened to detonate a bomb he allegedly was carrying if the bank did not turn over money to him.
The charging statute provides for a sentence of up to 20 years, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Worcester Police Chief Steven M. Sargent; and Revere Police Chief James Guido made the announcement. 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.
Boston Man Charged with Distributing Fentanyl and Crack CocaineRead the Press Release
BOSTON – A Boston man was arrested yesterday and charged with distributing fentanyl and crack cocaine.
David A. Wood, 30, was charged with distribution and possession with intent to distribute controlled substances. Following an initial appearance in federal court in Boston, Wood was detained pending a detention hearing on set for Dec. 23,2019.
According to court documents, Wood distributed fentanyl in Boston on Nov. 26 and Dec. 3, 2019, and distributed crack cocaine in Boston on Dec. 10, 2019.
The charge of distributing or possessing with intent to distribute controlled substances provides for a sentence of up to 20 years in prison, three years to a lifetime of supervised release, and a fine of up to $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 and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Worcester Man Sentenced for Child Pornography OffensesRead the Press Release
BOSTON – A Worcester man was sentenced today in federal court in Worcester for possession of child pornography.
Michael Chapman, 63, was sentenced by U.S. District Court Judge Timothy S. Hillman to 126 months in prison and seven years of supervised release. In September 2019, Chapman pleaded guilty to two counts of possession of child pornography.
On July 2 and 3, 2017, Chapman uploaded images depicting child pornography using his Skype account. He also possessed child pornography on Oct. 6, 2017, on his computer, which agents seized during the execution of a search warrant. Chapman is a registered Level 3 sex offender due to multiple prior convictions. In 2004, he was convicted of two counts of indecent assault and battery on a child under 14 and three counts of obscene material; in 1994, he was convicted of transporting in interstate commerce a visual depiction of a minor engaging in sexually explicit conduct; and, in 1984, he was convicted of rape of a child and four counts of lewd and lascivious acts.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Worcester Police Chief Steven M. Sargent made the announcement today. Assistant U.S. Attorney Michelle L. Dineen Jerrett of Lelling’s Worcester Branch Office prosecuted 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/.
Owner of Golf Management Company Charged with Embezzlement of City Funds and Tax FraudRead the Press Release
BOSTON – A federal grand jury in Springfield returned an indictment today charging a Springfield golf professional with theft concerning a program receiving federal funds, wire fraud, money laundering-related crimes, and filing false tax returns. The indictment also charges the golf professional and two local home builders with conspiring to defraud the United States.
Kevin M. Kennedy, 41 of East Longmeadow, was indicted on three counts of theft concerning programs receiving federal funds, four counts of wire fraud, four counts of engaging in monetary transactions in excess of $10,000 with the proceeds of specified unlawful activity, eight counts of money laundering, and four counts of filing a false tax return, and one count of conspiracy to defraud the United States. Kent S. Pecoy, 62, and Jason Pecoy, 39, both of Wilbraham, were also charged with conspiracy to defraud the United States.
According to the indictment, Kennedy owned and operated Kennedy Golf Management Inc. (KGM), through which he managed the City of Springfield’s two public golf courses, Franconia Golf Course and Veterans Memorial Golf Course. As part of its duties, KGM was required to collect greens fees and motorized cart rental fees on behalf of the City of Springfield. From 2010 through 2016, Kennedy allegedly embezzled greens fees and cart fees that were owed to the City by stealing cash directly from the City’s cash register and by diverting payments to KGM terminals. In an attempt to conceal the scheme, it is further alleged that Kennedy provided fraudulent records to the City that underreported the golf courses’ daily activity and revenues. Kennedy allegedly used the stolen funds for personal expenditures, including building homes in East Longmeadow, and West Dennis, and failed to report the income on his 2010 through 2014 tax returns.
In addition, the indictment charges that from 2009 through 2016, Kennedy conspired with Kent Pecoy, the owner of Kent Pecoy and Sons Construction Inc. (KPSC), and his son, Jason Pecoy, a KPSC project manager, to obstruct and impede the Internal Revenue Service and the collection of taxes by concealing Kennedy’s cash payments for construction of the East Longmeadow and West Dennis homes. According to the indictment, Kennedy paid the Pecoys in cash and the Pecoys failed to deposit most of the cash into business bank accounts, but rather distributed the cash directly to vendors and subcontractors. When they did deposit the cash, it is alleged that the Pecoys deposited funds in amounts less than $10,000 to avoid the filing of currency transaction reports. The indictment further alleges that the Pecoys created and maintained separate ledgers documenting Kennedy’s cash payments, created and maintained false contracts and cover sheets, and created false entries in KPSC’s accounting system to conceal the cash payments.
The wire fraud and money laundering charges provide for a sentence of up to 20 years in prison, five years of supervised release, and a fine of $250,000. The theft and monetary transactions charges provide for a sentence of up to 10 years in prison, three years of supervised release, and a fine of $250,000. The tax fraud charges provide for a sentence of up to three years in prison, three years of supervised release, and a fine of $100,000. The conspiracy charges 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 based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division; and Kristina O’Connell, Special Agent In Charge of the Internal Revenue Service, Criminal Investigation made the announcement today. Assistant U.S. Attorney Steven H. Breslow of Lelling’s Springfield Branch Office and Christopher O’Donnell of the Justice Department’s Tax Division are prosecuting the case.
Owner of Golf Management Company Charged with Embezzlement of City Funds and Tax FraudRead the Press Release
A federal grand jury in Springfield, Massachusetts, returned an indictment today charging a local golf professional with theft concerning a program receiving federal funds, wire fraud, money laundering-related crimes, and filing false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Andrew E. Lelling for the District of Massachusetts. The indictment also charges the golf professional and two local home builders with conspiring to defraud the United States.
According to the indictment, Kevin M. Kennedy, a Massachusetts resident, owned and operated Kennedy Golf Management Inc. (KGM), through which he managed the City of Springfield’s two public golf courses, Franconia Golf Course and Veterans Memorial Golf Course. As part of its duties, KGM was required to collect golfer fees, known as “greens fees,” and motorized cart rental fees on behalf of the City of Springfield. From 2010 through 2016, Kennedy allegedly embezzled greens fees and cart fees that were owed to the City by stealing cash directly from the City’s cash register and by diverting payments to KGM terminals. In an attempt to conceal the scheme, it is further alleged that Kennedy provided fraudulent records to the City that underreported the golf courses’ daily activity and revenues. Kennedy allegedly used the stolen funds for personal expenditures, including building homes in East Longmeadow, and West Dennis, Massachusetts, and failed to report the income on his 2010 through 2014 tax returns.
In addition, the indictment charges that from 2009 through 2016, Kennedy conspired with Kent Pecoy, the owner of Kent Pecoy and Sons Construction Inc. (KPSC), and his son, Jason Pecoy, a KPSC project manager, to obstruct and impede the Internal Revenue Service and the collection of taxes by concealing Kennedy’s cash payments for construction of the East Longmeadow and West Dennis homes. According to the indictment, Kennedy paid the Pecoys in cash and the Pecoys failed to deposit most of the cash into business bank accounts, but rather distributed the cash directly to vendors and subcontractors. When they did deposit the cash, it is alleged that the Pecoys deposited funds in amounts less than $10,000 to avoid the filing of currency transaction reports. The indictment further alleges that the Pecoys created and maintained separate ledgers documenting Kennedy’s cash payments, created and maintained false contracts and cover sheets, and created false entries in KPSC’s accounting system to conceal the cash payments.
If convicted, Kennedy faces a maximum of up to 20 years in prison for each count of wire fraud and money laundering, ten years in prison for each count of theft concerning a program receiving federal funds and for engaging in monetary transactions in property derived from specific unlawful activities, five years in prison for conspiracy, and three years in prison for each count of filing a false tax return. Kennedy also faces a term of supervised release, restitution and monetary penalties.
If convicted, the Pecoys each face up to five years in prison for the conspiracy count, a term of supervised release, restitution and monetary penalties.
An indictment merely alleges that crimes have been committed. Individuals charged in indictments are presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Lelling commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant United States Attorney Steve Breslow from the District of Massachusetts and Trial Attorney Christopher O’Donnell of the Department of Justice’s Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Suspended Andover Attorney Sentenced for Tax FraudRead the Press Release
BOSTON – A former attorney from Andover was sentenced yesterday to two years in prison for engaging in a years-long scheme to defraud the IRS.
Daniel P. Gibson, 62, was sentenced by U.S. District Judge Indira Talwani to 24 months in prison, two years of supervised release, and restitution in an amount to be determined at a later time. In May 2019, Gibson was convicted following trial of two counts of tax fraud and one count of conspiring to defraud the IRS.
At trial, the evidence showed that Gibson conspired with his accountant to prepare and file false tax returns in the tax years 2005, 2006, 2008 and 2009 that intentionally underreported approximately $3.7 million in income earned by the law firm of which Gibson was the managing partner. As a result, Gibson underreported his personal income by approximately $2.5 million and avoided taxes of more than $875,000.
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 Sara Miron Bloom and William B. Brady of Lelling’s Criminal Division prosecuted the case.
Haverhill Woman Sentenced for Drug TamperingRead the Press Release
BOSTON – A Haverhill licensed practical nurse was sentenced today in federal court in Boston for drug tampering.
Lauren Perrin, 47, was sentenced by U.S. Senior District Court Judge Mark L. Wolf to 54 months in prison and three years of supervised release. In September 2019, Perrin pleaded guilty to one count of tampering with a consumer product, specifically the Schedule II controlled substance morphine, which is used for pain relief.
While working as a licensed practical nurse at Maplewood Care and Rehabilitation Center in Amesbury, Perrin took morphine sulfate from three bottles prescribed to a hospice patient for her own personal use. In an attempt to avoid detection, she replaced the extracted morphine with cough syrup. Perrin’s tampering lowered the potency of the three bottles of morphine sulfate to only 4-29% of the intended potency. The victim was given the diluted morphine and deprived of necessary pain relief in the weeks before her death.
U.S. Attorney Andrew Lelling; Jeffrey Ebersole, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; and Commissioner Monica Bharel, MD, MPH, of the Massachusetts Department of Public Health made the announcement. Assistant U.S. Attorney Elysa Wan of Lelling’s Health Care Fraud Unit prosecuted the case.
Former New Bedford Police Officer Pleads Guilty to Child Pornography OffensesRead the Press Release
BOSTON – A former New Bedford police officer pleaded guilty today in federal court in Boston to charges of possessing and distributing child pornography.
Paul Hodson, 43, of Acushnet, pleaded guilty to one count of distribution of child pornography and one count of possession of child pornography. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for May 20, 2020. Hodson was indicted on June 20, 2019.
Following an investigation into the use of peer-to-peer file sharing networks for the trade of child pornography, a search was executed at Hodson’s home. Hodson was interviewed on scene and admitted to using peer-to-peer file sharing software to trade child pornography. During the course of forensic analysis of Hodson’s computer, hundreds of child pornography files were recovered, including at least one file that was distributed to undercover law enforcement in the course of the investigation that led to the search warrant.
The charge of distribution of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison, a minimum of five years and up to a lifetime of supervised release and a fine of up to $250,000. The charge of possession of child pornography provides for a sentence of up to 20 years in prison, a 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 upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Valuable assistance was provided by the Massachusetts State Police and the Acushnet Police Department. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former Cape Cod Bookkeeper Indicted a Second Time on Embezzlement ChargesRead the Press Release
BOSTON – A Cape Cod woman was indicted on federal charges yesterday in connection with embezzling more than $390,000 from an employer.
Jessica L. Greenan, 42, of Centerville, formerly an employee of a Cape Cod construction company, was charged with seven counts of wire fraud, two counts of bank fraud, and two counts of aggravated identity theft. Greenan was previously indicted in September 2019 for embezzling $1.1 million from a previous employer, and is pending trial in that case. Several of the charges in the new indictment are alleged to have occurred after Greenan was released on conditions in the earlier prosecution.
The most recent indictment alleges that Greenan embezzled funds from the construction company while she was employed as a bookkeeper between August 2018 and September 2018. Greenan allegedly made more than $5,300 in unauthorized charges to a company credit card, embezzled more than $287,000 from company bank accounts to pay her own credit cards, converted more than $11,000 of company funds to pay her auto loans, forged the company owner’s signature to transfer company funds to conceal her frauds, and fraudulently obtained more than $6,300 in unauthorized payroll after her employment had been terminated.
Each charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater, forfeiture, and restitution. Each charge of bank fraud provides for a sentence of up to 30 years in prison, five years of supervised release, a fine of $1 million, forfeiture, and restitution. The charge of aggravated identity theft carries a mandatory two year prison sentence, which must be served consecutive to any other sentence imposed in the case. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. Assistant U.S. Attorney Victor A. Wild of Lelling’s Securities & Financial Fraud 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.
Florida Man Sentenced to Prison for Extensive Cyberstalking and Threats CampaignRead the Press Release
A Florida man was sentenced today to 70 months in prison followed by three years of supervised release for conducting an extensive cyberstalking campaign that targeted his former schoolmate, a 31-year-old woman who lived in Massachusetts at the time. The victim’s name is being withheld to protect her privacy.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Andrew Lelling of the District of Massachusetts and Special Agent in Charge Joseph R. Bonavolonta of the FBI’s Boston Field Office made the announcement.
Byron A. Cardozo, 35, who previously resided in Jacksonville and Tamarac, Florida, was sentenced today by U.S. District Judge Allison D. Burroughs of the District of Massachusetts. Cardozo pleaded guilty in August 2019 to one count of cyberstalking and one count of making interstate threats. Cardozo was arrested in August 2018 and has been held in custody since.
According to the indictment, to which Cardozo pleaded guilty, and evidence presented at sentencing, Cardozo engaged in an 18-month-long, multi-faceted cyberstalking and threats campaign targeting the victim. He launched his campaign in February 2017, shortly after the victim wrote, and had published in an online magazine, an essay describing a one-time, traumatic sexual encounter she had with Cardozo when she was approximately 13 and he was approximately 17 and they attended the same school in Florida. She used pseudonyms for Cardozo and others in the essay.
Cardozo then sent hundreds of online communications, many of which he made in the “comments” section to the essay and on the victim’s personal website. In those communications, Cardozo claimed that the victim had fabricated her claims about the coercive nature of the 2001 sexual encounter, he provided graphic descriptions of his purported consensual sexual encounter with the victim, and he described how he continued to masturbate to the victim’s photographs. Cardozo also made express and implicit threats to injure the victim. At other times, he also apologized to her for the traumatic sexual experience in 2001, asked for forgiveness, expressed his love for her and made veiled threats to commit suicide “because of you.” Cardozo continued to harass and threaten the victim despite the fact that she had obtained a state court order in April 2017, forbidding him from communication with her.
The FBI’s Boston Field Office conducted the investigation. Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Amy Harman Burkart, Chief of Lelling’s Cybercrime Unit in the District of Massachusetts, are prosecuting the case.
Florida Man Sentenced for Extensive Cyberstalking and Threats CampaignRead the Press Release
BOSTON – A Florida man was sentenced today in federal court in Boston for cyberstalking and threatening his former schoolmate, a 30-year-old Massachusetts woman.
Byron A. Cardozo, 35, who previously resided in Jacksonville and Tamarac, Fla., was sentenced by U.S. District Court Judge Allison D. Burroughs to 70 months in prison and three years of supervised release. In August 2019, Cardozo pleaded guilty to one count of cyberstalking and one count of making interstate threats. Cardozo was arrested in August 2018 and has been in custody since.
Cardozo engaged in an 18-month-long, multi-faceted cyberstalking and threats campaign targeting his former schoolmate. He launched his campaign in February 2017, shortly after the victim wrote an essay published in an online magazine describing a one-time, traumatic sexual encounter she had with Cardozo when she was approximately 13-years-old and he was approximately 17-years-old. The victim used pseudonyms for Cardozo and others in the essay. In response, Cardozo sent hundreds of online communications, many of which he made in the “comments” section to the essay and on the victim’s personal website, where he claimed that the victim fabricated her claims about the coercive nature of the sexual encounter. Cardozo provided graphic descriptions of his purported consensual sexual encounter with the victim and made express and implicit threats to injure the victim. At other times, he also apologized to her for the traumatic sexual experience, asked for forgiveness, expressed his love for her and made veiled threats to commit suicide. Cardozo continued to harass and threaten the victim despite the fact that she had obtained a state court order in April 2017, forbidding him from communicating with her.
United States Attorney Andrew E. Lelling; Assistant Attorney General Brian Benczkowski of the Justice Department’s Criminal Division; and Joseph Bonavolonta, Special Agent in Charge Federal Bureau of Investigation, Boston Field Office, made the announcement. Assistant U.S. Attorney Amy Harman Burkart, Chief of Lelling’s Cyber Crime Unit and Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section prosecuted the case.
Two Men Arrested for Conspiracy to Distribute FentanylRead the Press Release
BOSTON – Two men were arrested on Wednesday, Dec. 11, 2019, and charged with conspiracy to distribute fentanyl.
Steven Perez, of Lowell, and Anthony Holloway, of Methuen, were arrested and charged with conspiracy to distribute and possession with intent to distribute fentanyl. Following an initial appearance in federal court in Boston, Perez and Holloway were detained pending a detention and probable cause hearing set for Dec. 19, 2019.
According to the charging documents, over the course of several months, law enforcement investigated Perez and Holloway’s fentanyl distribution operation. The men allegedly used an elderly housing complex run by the Methuen Housing Authority to package drugs and conduct drug sales.
The charge of conspiracy to distribute and to possess with intent to distribute fentanyl carries a sentence of up to 20 years in prison, at least three years of supervised release and a fine of $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 Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Field Office; and Methuen Police Chief Joseph Solomon made the announcement. Assistant U.S. Attorney Philip C. Cheng of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
East Bridgewater Man Sentenced for Production, Distribution and Possession of Child PornographyRead the Press Release
Boston – An East Bridgewater man was sentenced to 17 years in prison on child pornography charges.
Daniel O’Connor Jr., 57, was sentenced on Friday, Dec. 13, 2019 by Chief U.S. District Court Judge Patti B. Saris to 17 years in prison, five years of supervised release and ordered to pay $5,000 in restitution. In September 2019, O’Connor Jr. pleaded guilty to one count each of production of child pornography, distribution of child pornography and possession of child pornography.
A forensic review of an iPhone recovered during a search of O’Connor Jr.’s home revealed images of child pornography including approximately 137 images and approximately 26 videos of child pornography. Fifteen of those 26 videos depicted the same 11-year-old girl. O’Connor Jr.’s collection of child pornography included girls between approximately five and 13 years of age. In addition, the cellphone contained multiple apps popular with minors, such as Kik Messenger. A review of O’Connor Jr.’s Kik app revealed chats between him and an 11-year-old girl during which he coerced and persuaded the girl to record and send him sexually explicit videos of herself.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; East Bridgewater Police Chief Scott Allen; and Plymouth County District Attorney Timothy Cruz made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit prosecuted the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identity and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Cooley Dickinson Hospital Resolves Allegation of Billing for Unnecessary Tick-Borne Disease TestsRead the Press Release
BOSTON – Cooley Dickinson Hospital, a Partners HealthCare affiliated hospital based in Northampton, has agreed to pay $11,332 to resolve the allegation that it submitted claims to Medicare and Medicaid for medically unnecessary testing.
Individuals can contract tick-borne diseases, such as Lyme disease, anaplasmosis, erlichiosis, and babesiosis, if bitten by specific ticks infected with bacteria, viruses, or parasites. The type of tick-borne disease an individual may contract depends on the species of tick, which, in turn, depends upon the geographic region where the individual was bitten.
Cooley Dickinson allegedly created tick borne disease test “panels” through which physicians and nurse practitioners could order more than one tick-borne disease test. When a physician and/or nurse practitioner selected a testing panel in the ordering system (as opposed to manually selecting each medically appropriate tick-borne disease test), an order went to Cooley Dickinson’s laboratory to test for all of the tick-borne diseases programmed into the testing panel, even though the panel included tests for diseases caused by ticks that were not likely to be present in the geographic region where the individual was bitten so that the tests were not medically indicated by the patient’s symptoms. The government alleges that between July 1, 2014, and June 22, 2017, Cooley Dickinson submitted claims to Medicare and Medicaid for blood tests used to detect tick-borne diseases when the tests were not medically necessary.
“This settlement is another reminder of how whistleblowers can help the government identify improper billing practices among health care providers,” said United States Attorney Andrew E. Lelling.
A patient of Cooley Dickinson, Dr. Morris Leibowitz, 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 to share in any recovery. In connection with today’s announced settlement, Dr. Leibowitz will receive 21% of the recovery.
U.S. Attorney Lelling made the announcement today. Assistant U.S. Attorneys Steven Sharobem and Christopher Morgan of Lelling’s Office handled the matter.
Boston Man Sentenced for Federal Firearm OffenseRead the Press Release
BOSTON – A Boston man was sentenced on Thursday, Dec. 12, 2019, in federal court in Boston for illegally possessing a firearm and ammunition.
Robert Vishaun Roscoe, 28, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 27 months in prison and three years of supervised release. In September 2019, Roscoe pleaded guilty to one count of being a felon in possession of a firearm and ammunition. Roscoe was charged in May 2019 and has been in custody since.
On Oct. 11, 2018, law enforcement officers encountered Roscoe with a loaded black KelTec 9mm semi-automatic pistol and seven rounds of ammunition in Dorchester. Roscoe had been previously convicted of a crime punishable by more than one year in prison and was therefore prohibited from possessing a firearm or ammunition.
United States Attorney Andrew E. Lelling; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Boston Police Chief William G. Gross; and Suffolk County District Attorney Rachael S. Rollins made the announcement today.
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.
Arlington Man Indicted for Stealing Government BenefitsRead the Press Release
BOSTON – An Arlington man was arrested on Friday, Dec. 13, 2019, and charged with fraudulently receiving disability benefits from the Department of Veterans Affairs and the Social Security Administration.
Patrick Quinn, 47, was charged with two counts of theft of public funds and two counts of making false statements. He was released on conditions following an initial appearance in federal court in Boston.
According to the indictment, since January 2012, Quinn stole more than $420,000 in veterans benefits and Social Security benefits by falsely telling the Department of Veterans Affairs and Social Security Administration that he was unable to work due to a disability, when in reality, he owned and operated Quinn Insurance Group, Inc.
The charge of theft of public funds provides for a sentence of up to 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of making a false statement charge provides for a sentence of up to five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Jeffrey Stachowiak, Acting Special Agent in Charge of the Department of Veterans Affairs, Office of Inspector General, Northeast Field Office; 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. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit is prosecuting the case.
Woburn Man Sentenced for Being a Felon in Possession of Firearm and AmmunitionRead the Press Release
BOSTON – A Woburn man was sentenced yesterday in federal court in Boston for being a felon in possession of a firearm and ammunition.
Vasily Hardy, 28, was sentenced by U.S. District Court Senior Judge Rya W. Zobel to 15 months in prison and three years of supervised release. In September 2019, Hardy pleaded guilty to one count of being a felon in possession of a firearm and ammunition and has been in custody since his arrest in January 2019.
On Nov. 14, 2018, a police officer conducted a vehicle stop after observing the driver make multiple traffic violations. The officer was informed over the radio that there was an active warrant for Hardy’s arrest and he was subsequently arrested and his vehicle was searched. During the search, a Sig Sauer, semi-automatic pistol loaded with an eight-round magazine of .45 caliber ammunition as well as a second eight-round magazine were recovered. During an interview with law enforcement, Hardy confirmed that the handgun belonged to him and that he did not have a license to carry a firearm in Massachusetts. Further investigation revealed that Hardy was prohibited from possessing firearms and ammunition due to a previous conviction of larceny from a person in 2013, which is punishable by more than a year in jail.
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 Wellesley Police Department, Norfolk County District Attorney’s Office and the Hillsborough County Attorney’s Office in New Hampshire. Assistant U.S. Attorney Stephen W. Hassink of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
Thirteen Indicted on Drug Trafficking ChargesRead the Press Release
BOSTON – Thirteen men were indicted on Dec. 4, 2019, and charged in federal court in Boston with various drug trafficking offenses and money laundering.
The following individuals were indicted:
- Yuen Liu-Torres, a/k/a “Chino,” 36, of New Bedford, was charged with conspiring to distribute and to possess with intent to distribute five kilograms or more of cocaine, and conspiracy to launder monetary instruments;
- Victor Alejandro-Carrillo, 28, of New Bedford, was charged with conspiring to distribute and to possess with intent to distribute five kilograms or more of cocaine, 100 grams or more of heroin and 40 grams or more of fentanyl;
- Elvis Garcia, 37, of New Bedford, was charged with conspiring to distribute and to possess with intent to distribute 500 grams or more of cocaine;
- Jose Rodriguez-Garcia, a/k/a Pina, 35, of New Bedford, was charged with conspiring to distribute and to possess with intent to distribute 500 grams or more of cocaine and conspiracy to launder monetary instruments;
- Jose L. Diaz Fontanez, 45, of New Bedford, was charged with conspiring to distribute and to possess with intent to distribute 500 grams or more of cocaine and possession with intent to distribute 500 grams or more of cocaine;
- Keon Green, 34, of New Bedford, was charged with conspiring to distribute and to possess with intent to distribute 500 grams or more of cocaine;
- Ricardo Correa-Perez, 44, of New Bedford, was charged with conspiring to distribute and to possess with intent to distribute 500 grams or more of cocaine;
- Caly Juan Montanez Agosto, a/k/a “Cali,” 38, of Puerto Rico, was charged with conspiring to distribute and to possess with intent to distribute 500 grams or more of cocaine;
- Manuel Colon, 48, of New Bedford, was charged with conspiring to distribute and to possess with intent to distribute 500 grams or more of cocaine, 100 grams or more of heroin and 50 grams or more of fentanyl;
- Jaime Torres, 45, of Fall River, was charged with conspiring to distribute and to possess with intent to distribute 500 grams or more of cocaine, and possession with intent to distribute 100 grams or more of heroin, 500 grams or more of cocaine, 40 grams or more of fentanyl and 5 grams or more of methamphetamine;
- Ricardo Torres, a/k/a “Louis Torres,” a/k/a “Angel Manzano,” a/k/a “Richie,” 46, of Chicopee, was charged with conspiring to distribute and to possess with intent to distribute 500 grams or more of cocaine;
- Alexander Santiago Medina, a/k/a “Flaco,” 32, of Fall River, was charged with conspiring to distribute and to possess with intent to distribute 500 grams or more of cocaine; and
- Vicente Gonzalez, a/k/a/ “Viejo,” 46, was charged with conspiring to distribute and to possess with intent to distribute 500 grams or more of cocaine and possession with intent to distribute 500 grams or more of cocaine.
The charge of conspiracy to possess with intent to distribute and possession with intent to distribute five kilograms or more of cocaine provides for a sentence of at least 10 years and up to life in prison, five years of supervised release and a fine of up to $10 million. The charge of conspiracy to possess with intent to distribute 500 grams or more of cocaine, 100 grams or more of heroin, and 40 grams or more of fentanyl, as well as the charge of possession with intent to distribute 500 grams or more of cocaine, 100 grams or more of heroin, 40 grams or more of fentanyl, and five grams or more of methamphetamine, each provide for a sentence of at least five years and up to 40 years in prison, four years of supervised release and a fine of up to $5 million. The charge of conspiracy to launder monetary instruments provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $500,000. 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, New England Field Division; Joseph Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and New Bedford Police Chief Joseph C. Cordeiro made the announcement. Assistant U.S. Attorney Craig Estes of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
Massachusetts Man Pleads Guilty to Illegally Retaining Classified National Defense Information Regarding U.S. Military ProgramsRead the Press Release
BOSTON – A Sharon man pleaded guilty today to illegally retaining national defense information.
Ahmedelhadi Yassin Serageldin, 66, an Egyptian-born nationalized U.S. citizen, pleaded guilty today to one count of willfully retaining national defense information. U.S. District Court Judge Patti B. Saris scheduled sentencing for April 24, 2020. Serageldin was initially indicted in November 2018 on one count of misleading conduct with intent to hinder, delay, or prevent communications to a law enforcement officer relating to the commission or possible commission of a federal offense.
Serageldin admitted to having unauthorized possession of numerous classified documents, writings, and notes relating to the national defense,. During the execution of a search warrant at Serageldin’s house, agents found thousands of paper documents and electronic files belonging to Raytheon or the Department of Defense, and that many of them were marked as containing classified information. Court documents list five specific documents, all of which pertain to U.S. military programs involving missile defense and are classified at the SECRET level.
Serageldin was a systems engineer at Raytheon Company in Massachusetts from August 1997 until he was terminated in May 2017. Serageldin had a secret-level security clearance in order to complete his assignments on several defense contracts for the U.S. government involving military radar technology.
In 2017, Raytheon investigated Serageldin for time-card fraud. The time-card fraud investigation led Raytheon to uncover evidence that Serageldin had downloaded a substantial number of files from Raytheon’s computer network and had connected his personal removable electronic storage devices to the network in violation of Raytheon’s security policy. During the company’s internal investigation Serageldin engaged in misleading conduct to hinder, delay, or prevent Raytheon employees from communicating with law enforcement about his time-card fraud and his potential mishandling and retention of classified and national defense information.
The charge of willfully retaining documents relating to the national defense and failing to deliver them to the United States provides for a sentence of up to 10 years in prison, three years of supervised release, a fine of $250,000 or twice the gain or loss, whichever is greatest, restitution and forfeiture. According to a plea agreement filed in the case, the original charge of obstruction of justice will be dismissed at the time of sentencing. 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; Assistant Attorney General John C. Demers; Joseph Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Leo Lamont, Special Agent in Charge of the Naval Criminal Investigative Service, Northeast Field Office made the announcement today. Assistance with the investigation was provided by the Air Force Office of Special Investigations and the Internal Revenue Service’s Criminal Investigations in Boston. Raytheon Company has cooperated with the investigation, which was launched after they notified federal authorities about the suspicious conduct. Assistant U.S. Attorney Scott L. Garland, Deputy Chief of Lelling’s National Security Unit and Trial Attorney Scott Claffee of the Justice Department’s National Security Division are prosecuting the case.
Massachusetts Man Pleads Guilty to Illegally Retaining Classified National Defense Information Regarding U.S. Military ProgramsRead the Press Release
A Sharon, Massachusetts, man pleaded guilty today to willfully retaining national defense information.
Ahmedelhadi Yassin Serageldin, 66, an Egyptian-born nationalized U.S. citizen, admitted to removing classified national defense information from his workplace at a defense contractor without authorization and keeping it unsecured within his home. Serageldin was originally indicted and arrested in November 2018 on one count of misleading conduct with intent to hinder, delay, or prevent communications to a law enforcement officer relating to the commission or possible commission of a federal offense.
The original indictment alleged that Serageldin was a systems engineer at Raytheon Company in Massachusetts from August 1997 until he was terminated in May 2017. Serageldin had a secret-level security clearance in order to complete his assignments on several defense contracts for the U.S. government involving military radar technology.
According to court documents, in 2017, Raytheon investigated Serageldin for time-card fraud. The time-card fraud investigation allegedly led Raytheon to uncover evidence that Serageldin had downloaded a substantial number of files from Raytheon’s computer network and had connected removable electronic storage devices to the network in violation of Raytheon’s security policy. During the company’s internal investigation, the indictment alleges, Serageldin engaged in misleading conduct to hinder, delay, or prevent Raytheon employees from communicating with law enforcement about his time-card fraud and his potential mishandling and retention of classified information and national defense information.
Today, Serageldin pleaded guilty before Chief United States District Judge Patti B. Saris to a Superseding Information charging him with having unauthorized possession of, access to, and control over numerous classified documents, writings, and notes relating to the national defense, and then willfully retaining the same and failing to deliver them to the United States. At the plea hearing, the prosecutor noted that while executing a search warrant at Serageldin’s house, federal agents found thousands of paper documents and electronic files belonging to Raytheon or the U.S. Department of Defense, and that many of them were marked as containing classified information. The Superseding Information lists five specific documents, all of which pertain to U.S. military programs involving missile defense and are classified at the SECRET level.
According to a plea agreement filed in the case, the original charge of obstruction of justice will be dismissed at the time of sentencing. Sentencing is scheduled for April 14, 2020.
The charge of willfully retaining documents relating to the national defense and failing to deliver them to the United States provides for a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $250,000 or twice the gain or loss, whichever is greatest, restitution, and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General John C. Demers, U.S. Attorney Andrew E. Lelling; Joseph Bonavolonta, Special Agent in Charge of the FBI, Boston Field Division; and Leo Lamont Special Agent in Charge of the Naval Criminal Investigative Service, Northeast Field Office, made the announcement today. Assistance with the investigation was provided by Defense Criminal Investigative Service, Air Force Office of Special Investigations, and Internal Revenue Service’s Criminal Investigations in Boston. Raytheon Company has cooperated with the investigation, which was launched after they notified federal authorities about the suspicious conduct. Assistant U.S. Attorney Scott L. Garland, Deputy Chief of Lelling’s National Security Unit, is prosecuting this case with the assistance of Trial Attorney Scott Claffee of the Justice Department’s Counterintelligence and Export Control Section of the National Security Division.
Lawrence Man Pleads Guilty to Distribution and Possession of FentanylRead the Press Release
BOSTON – A Lawrence man pleaded guilty yesterday in federal court in Boston in connection with selling fentanyl.
John Mena, 24, pleaded guilty to one count of distribution and possession with intent to distribute fentanyl before U.S. District Court Judge William G. Young, who scheduled sentencing for April 6, 2020.
According to court documents, Mena sold approximately 13g of fentanyl in a transaction that an undercover agent witnessed. Mena was arrested in Lawrence on July 16, 2019, as part of a 10-week coordinated enforcement operation in the Merrimack Valley called “Devil’s Highway.” The operation targeted the distribution of opioids, including fentanyl and heroin, and resulted in charges against a total of 40 people for federal drug offenses, with at least a dozen more individuals facing state charges.
The charge of distribution and possession with intent to distribute fentanyl carries a sentence of up to 20 years in prison, a minimum of three years and up to a lifetime of supervised release and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Essex County District Attorney Jonathan W. Blodgett; and Lawrence Police Chief Roy Vasque made the announcement today. Assistant U.S. Attorney Alexandra Brazier of Lelling’s Office is prosecuting the case.
Cambridge Man Pleads Guilty to Federal Firearm OffenseRead the Press Release
BOSTON – A Cambridge man pleaded guilty yesterday in federal court in Boston for illegally possessing two firearms and over 150 rounds of ammunition.
Robert Brito-Pina, 27, pleaded guilty to one count of being a felon in possession of firearms and ammunition. U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for April 13, 2020. Brito-Pina was arrested in April 2019, and has been in custody since.
Brito-Pina was arrested after the execution of a search warrant at his residence resulted in the seizure of two firearms and over 150 rounds of ammunition. The recovered items included a SCCY Model CPX-1 9mm caliber semi-automatic pistol loaded with eight rounds of ammunition; a Springfield Amory, Model XDM 9mm caliber semi-automatic pistol with an obliterated serial number, loaded with 18 rounds of ammunition; and an additional 131 rounds of assorted ammunition. Federal law prohibits Brito-Pina from possessing a firearm or ammunition because of a prior felony conviction.
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 up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Cambridge Police Commissioner Branville G. Bard, Jr. made the announcement today.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department of Justice’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Boston Man Arrested for Armed RobberyRead the Press Release
BOSTON – A Boston man, dubbed the “Inconvenient Crook,” was arrested this morning and charged in connection with the armed robbery of a Quincy convenience store.
Tykei Hallman, 25, of Hyde Park, was charged in a criminal complaint unsealed today with one count of robbery involving use of a firearm. Hallman will make an initial appearance in federal court in Boston at 2:15 p.m.
According to the charging document, between May 2019 and November 2019, approximately 15 convenience-type stores were robbed in the Greater Boston area by a masked and armed individual. During each robbery, the suspect who appeared to be a male, was dressed in dark hooded outer garments, a mask obscuring his face and gloves. The suspect entered the convenience stores brandishing what appeared to be a black and silver semi-automatic handgun and demanded the stores’ cash. Based on the similarity of the robberies, witness statements, and video surveillance obtained from the locations, law enforcement determined that the same individual was responsible for these robberies. Hallman was identified as the robbery subject through physical surveillance, GPS data from cell phones and motor vehicle records.
The charging statute for a Hobbs Act robbery provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Using and carrying a firearm during the commission of a crime of violence provides for a sentence of up to seven years in prison, to be served consecutive to the sentence imposed for robbery. 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 Office made the announcement today. Assistance with the investigation was provided by the Quincy, Milton, Boston, Dedham, Woburn and Fitchburg Police Departments. Assistant U.S. Attorney Kenneth G. Shine 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.
Mississippi Man Sentenced for Sexually Assaulting a Minor on Cruise ShipRead the Press Release
BOSTON – A Mississippi man was sentenced yesterday in federal court in Boston for sexually assaulting a minor during a cruise from Boston to Bermuda.
Adam Christopher Boyd, 32, of Bay Springs, Miss., was sentenced by U.S. Senior District Court Judge Mark L. Wolf to 42 months in prison and five years of supervised release. In April 2019, Boyd pleaded guilty to one count of sexual abuse of a minor.
In August 2017, Boyd was a passenger on a seven-day cruise from Boston to Bermuda. While the ship was docked in Bermuda, Boyd sexually assaulted a minor passenger while the two were onboard the ship. The child subsequently reported that he had been raped to ship security, who notified Bermudian authorities. In the course of the Bermuda Police Service’s initial investigation, they arrested Boyd and notified authorities in the United States, where he was ultimately charged. Subsequent forensic testing revealed the presence of Boyd’s DNA in the minor victim’s underwear.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office, made the announcement. Valuable assistance was also provided by U.S. Customs and Border Protection, the Bermuda Police Service, Massachusetts Port Authority and FBI Legat Bridgetown, Barbados, Sub Office Nassau. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, prosecuted 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/.
Burlington Man Sentenced for Possessing Child PornographyRead the Press Release
BOSTON – A former civilian employee of the Hanscom Air Force Base was sentenced yesterday in federal court in Boston in connection with possessing thousands of files depicting child pornography, including a manual titled “How to Practice Child Love.”
William Gates, 41, of Burlington, was sentenced by U.S. District Court Judge Leo T. Sorokin to 30 months in prison and five years of supervised release. In April 2019, Gates pleaded guilty to one count of possession of child pornography.
In November 2017, law enforcement in Boston received information from authorities in Australia about an investigation involving an online personal photo site, known for hosting child pornography. Australian investigators observed a user of the site posting photographs of, and comments regarding, an approximately six-year-old boy on a school bus, who the user identified as a child on a field trip they were chaperoning. Australian and U.S. authorities were able to trace the account activity to IP addresses assigned to Gates’s home in Burlington and to Hanscom Air Force Base, where Gates was a civilian employee at the time.
A search of two of his digital devices revealed approximately 51 images of child pornography. More than 900 child pornography files were recovered during a search of Gates’s home. He was subsequently indicted by a Middlesex grand jury for possession of child pornography. Further forensic analysis of one of Gates’ laptops revealed an encrypted volume, where approximately 5,000 images and 440 videos of child pornography were hidden, as well as a document titled, “How to Practice Child Love,” which purports to serve as a guide to teach adults how to have sex with children.
United States Attorney Andrew E. Lelling and Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Valuable assistance was provided by the Middlesex District Attorney’s Office and the Burlington Police Department. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, prosecuted 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/.
Boston Man Charged in Large-Scale Insurance Fraud SchemeRead the Press Release
BOSTON – A Boston man was charged today in connection with a scheme to defraud numerous life insurance companies.
Kellerman Jason Zheng, 33, was arrested and charged with one count of mail fraud and one count of wire fraud. Zheng was detained following an initial appearance in federal court in Boston today.
Between December 2016 and March 2018, Zheng allegedly took out at least 24 life insurance policies in his brother’s name. These policies, which carried total coverage limits in excess of $11.5 million, listed Zheng and his parents as the beneficiaries. The charging documents, however, allege that Zheng’s brother died months prior during a visit to China in April 2015. As part of the scheme, Zheng also took steps to make it appear as if his brother were still alive, such as opening and using bank accounts in his brother’s name and renewing his brother’s Massachusetts driver’s license.
Later, Zheng allegedly obtained a false Chinese death certificate, which indicated his brother died in August 2018, and submitted over $5 million in life insurance claims. Zheng admitted during meetings with an undercover agent, who was posing as a claims manager willing to assist in the fraud scheme, that his brother died prior to the inception of the insurance policies.
The charges of mail and wire fraud each carry a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss from the offense. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office made the announcement today. Assistant U.S. Attorney Jordi de Llano, Deputy Chief of Lelling’s Securities and Financial Frauds Unit, is prosecuting the case.