District of Massachusetts
Press releases recorded for this federal judicial district.
Foundations Resolve Allegations of Enabling Pharmaceutical Companies to Pay Kickbacks to Medicare PatientsRead the Press Release
BOSTON – The U.S. Attorney’s Office announced today that two foundations, Chronic Disease Fund, Inc. d/b/a Good Days from CDF (“CDF”), and Patient Access Network Foundation (“PANF”), have agreed to pay $2 million and $4 million, respectively, to resolve allegations that they violated the False Claims Act by enabling pharmaceutical companies to pay kickbacks to Medicare patients taking the companies’ drugs.
The government alleged that CDF and PANF worked with various pharmaceutical companies to design and operate certain funds that funneled money from the companies to patients taking the specific drugs the companies sold. These schemes enabled the pharmaceutical companies to ensure that Medicare patients did not consider the high costs that the companies charged for their drugs. The schemes also minimized the possibility that the companies’ money would go to patients taking competing drugs made by other companies.
When a Medicare beneficiary obtains a prescription drug covered by Medicare Part B or Part D, the beneficiary may be required to make a partial payment, which may take the form of a co-payment, co-insurance, or deductible (collectively, “co-pays”). Congress included co-pay requirements in these programs, in part, to encourage market forces to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. The Anti-Kickback Statute prohibits pharmaceutical companies from offering or paying, directly or indirectly, any remuneration – which includes money or any other thing of value – to induce Medicare patients to purchase the companies’ drugs. The law further prohibits third parties, such as co-pay foundations, from conspiring with pharmaceutical companies to violate the Anti-Kickback Statute.
“According to the allegations in today’s settlements, CDF and PANF functioned not as independent charities, but as pass-throughs for specific pharmaceutical companies to pay kickbacks to Medicare patients taking their drugs,” said United States Attorney Andrew E. Lelling. “As a result, CDF and PANF enabled their ‘donors’ (the pharmaceutical companies) to undermine the Medicare program at the expense of American taxpayers.”
“OIG continues to be concerned by evidence indicating that foundations are not operating independently from their donors,” said Gregory E. Demske, Chief Counsel to the Inspector General. “Our Integrity Agreements promote such independence and require legal determinations about whether the foundations’ future operations of their assistance programs are compliant with the Anti-Kickback Statute.”
“Today’s settlements are a warning to all pharmaceutical companies, foundations, and others who try to subvert the charitable donation process for their own financial gain at the expense of American taxpayers. Both the Chronic Disease Fund and the Patient Access Network used their status as charities to shield the illegal activities of pharmaceutical companies seeking to maximize profits,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “The FBI and our partners will continue to hold organizations accountable, and to protect and preserve the Medicare system, and the taxpayers who fund it, from kickback schemes like these.”
The United States alleged that, from 2010 through 2014, CDF conspired with five pharmaceutical companies – Novartis, Dendreon, Astellas, Onyx, and Questcor – to enable them to pay kickbacks to Medicare patients taking their drugs. It is further alleged that, from 2011 through 2014, PANF permitted four pharmaceutical companies – Bayer, Astellas, Dendreon, and Amgen – to use PANF as a conduit to pay kickbacks to Medicare patients taking their drugs. Details of the conduct can be found in attached addendum.
The amounts of the settlements announced today were determined based on analysis of each foundation’s ability to pay after review of its financial condition.
CDF and PANF each entered a three-year Integrity Agreement (IA) with OIG as part of their respective settlements. The IAs require, among other things, that the foundations implement measures designed to ensure that they operate independently and that their arrangements and interactions with pharmaceutical manufacturer donors are compliant with the law. In addition, the IAs require compliance-related certifications from the Boards of Directors and detailed reviews by independent review organizations.
U.S. Attorney Lelling, HHS-OIG Chief Counsel Demske and FBI SAC Bonavolonta made the announcement today. The U.S. Postal Inspection Service also assisted with the investigation. The matter was handled by Assistant U.S. Attorneys Gregg Shapiro and Abraham George, of Lelling’s Affirmative Civil Enforcement Unit.
ADDENDUM
CDF’s PNET Co-pay Fund for Novartis. In May 2011, Afinitor, a Novartis product, was approved to treat progressive neuroendocrine tumors of pancreatic origin (“PNET”). In 2012, Novartis asked CDF to open a co-pay fund to cover Afinitor co-pays for PNET patients. At that time, CDF knew that Sutent, a Pfizer drug, also was approved to treat PNET. In August 2012, at Novartis’ request, CDF opened a supposed “PNET” fund. The fund, which Novartis financed alone, covered co-pays only for Afinitor; it did not cover co-pays for Sutent, the other approved PNET drug.
CDF’s Provision of Data to Dendreon for the mCRPC Fund. Provenge, a Dendreon product, is an immunotherapy that the FDA approved in April 2010 for treatment of metastatic castration resistant prostate cancer (“mCRPC”). In or about January 2010, Dendreon contacted CDF to request that CDF create a mCRPC fund. At that time, Provenge’s principal competitor therapy was Taxotere, a less costly injectable therapy indicated for treatment of various types of cancer. CDF opened its mCRPC fund in June 2010, and, from that time until August 2011, Dendreon alone financed CDF’s mCRPC fund. From June 2010 through 2011, at Dendreon’s request and on multiple occasions, CDF provided Dendreon with data concerning the number of Provenge patients receiving money from CDF’s mCRPC fund, the number of Taxotere patients receiving money from the fund, and the average amounts of money the fund was providing to Provenge and Taxotere patients, respectively. In May 2011, following the FDA approval of Zytiga, an oral therapy indicated for treatment of mCRPC, CDF also provided Dendreon with information concerning the number of Zytiga patients receiving money from CDF’s mCRPC fund. CDF’s provision of this information made it possible for Dendreon to confirm that CDF was using Dendreon’s money primarily to cover co-pays for Provenge, even though other mCRPC drugs were on the market.
CDF’s ARI Co-pay Fund for Astellas. Xtandi, an Astellas product, is indicated for treatment of mCRPC for patients who have failed chemotherapy. After the launch of Xtandi in September 2012, Astellas provided funding for the mCRPC fund at CDF. Xtandi is an androgen receptor inhibitor (“ARI”); none of the other major mCRPC drugs is an ARI. In May 2013, Astellas contacted CDF to request the opening of an ARI fund, which would cover mCRPC patients’ co-pays for ARIs, but not for other mCRPC drugs. CDF knew this meant that Astellas was seeking to earmark money for Xtandi patients, and not others, because Xtandi was the dominant ARI drug for treatment of mCRPC. On July 1, 2013, at Astellas’ request, CDF opened an ARI fund. Astellas alone financed CDF’s ARI fund. As CDF intended, Xtandi patients received nearly all of the money that the fund disbursed.
CDF’s Multiple Myeloma Travel Fund for Onyx. In July 2012, Onyx (now owned by Amgen) received approval to market Kyprolis as a third-line treatment for multiple myeloma. Kyprolis must be infused at a health care facility. At around the time of the approval, Onyx asked CDF to create a fund that, ostensibly, would cover health care related travel expenses for patients taking any multiple myeloma drug. At Onyx’s request, CDF created the fund, which Onyx alone financed. Internally, CDF at times referred to the fund as the “Kyprolis Travel” fund, and, in fact, it functioned primarily to cover travel expenses for patients taking Kyprolis.
CDF’s Provision of Data to Onyx for the Multiple Myeloma Co-Pay Fund. CDF operated a fund that covered co-pays for multiple myeloma drugs, including Kyprolis and several other drugs. CDF’s multiple myeloma co-pay fund received financing from several pharmaceutical manufacturers. In 2013, CDF provided Onyx with data detailing the amounts CDF had spent, and anticipated spending, on Kyprolis co-pays. This enabled Onyx to view CDF’s funding requests as seeking amounts necessary to pay Kyrpolis co-pays but not the co-pays of any other multiple myeloma drug. In 2013, after receiving this information, Onyx paid CDF just enough to cover CDF’s anticipated spending on co-pays for Kyprolis patients.
CDF’s MS, Lupus, and RA “Exacerbation” Funds for Questcor. In 2010, 2011, and 2012, respectively, Questcor (now owned by Mallinkcrodt), the maker of Acthar Gel, approached CDF and requested that CDF open separate funds for “exacerbations” (i.e., flare-ups) of multiple sclerosis, lupus, and rheumatoid arthritis, respectively. CDF opened these “exacerbation” funds, and Questcor alone financed them. By design, the multiple sclerosis “exacerbation” fund did not cover drugs (other than Acthar) that treated multiple sclerosis, the lupus “exacerbation” fund did not cover drugs (other than Acthar) that treated lupus, and the rheumatoid arthritis “exacerbation” fund did not cover drugs (other than Acthar) that treated rheumatoid arthritis. After establishing the funds, CDF provided reports to Questcor that enabled Questcor to determine how much money CDF already had spent on Acthar patients and how much more money CDF would need to cover the Acthar co-pays for patients Questcor referred to CDF.
PANF’s Prostate Cancer Subfunds. In March 2010, PANF opened a fund that covered co-pays for patients taking any drug that treated prostate cancer. In September 2012, PANF opened a fund that covered co-pays for patients taking drugs that treated mCRPC. PANF’s mCRPC fund covered a number of drugs, including Xofigo (a Bayer drug), Xtandi (an Astellas drug), and Provenge (a Dendreon drug), as well as competing drugs made by other companies. After PANF opened its mCRPC fund, Bayer, Astellas, and Provenge worked with PANF to create smaller funds, with each functioning primarily, if not exclusively, to cover the drug of the single company that financed each fund.
- The RIT subfund for Bayer. Xofigo is an alpha particleemitting radioactive therapeutic agent that the FDA approved to treat mCRPC on May 15, 2013. None of the other major drugs to treat mCRPC is radioactive. Prior to the approval of Xofigo, Bayer approached PANF about creating a fund that would cover only radioactive drugs for mCRPC. On May 16, 2013, one day after the FDA approved Xofigo, PANF opened a fund called Radioisotope Treatment of Metastatic Castrate Resistant Prostate Cancer (“RIT”). Bayer alone financed PANF’s RIT fund, and Xofigo patients received nearly all of the money the fund disbursed.
- The ARI subfund for Astellas. After hearing about PANF’s RIT fund, Astellas contacted PANF about creating an ARI fund that would cover only ARI drugs for mCRPC. Astellas alone financed PANF’s ARI fund, and Xtandi patients received the great majority of the money the fund disbursed.
- The GU subfund for Dendreon. Approximately one month after the opening of PANF’s RIT fund, PANF and Dendreon began discussions about PANF creating a fund that would cover copays only for immunotherapy treatments for mCRPC. On August 2, 2013, PANF opened a fund called Immunotherapy for Genitourinary Cancer (“GU”). Dendreon alone financed PANF’s GU fund, and Provenge patients received nearly all of the money the fund disbursed.
PANF’s SHPT Fund for Amgen. Sensipar, an Amgen product, is approved to treat secondary hyperparathyroidism (“SHPT”). The FDA also has approved other drugs to treat SHPT. In September 2011, Amgen approached PANF about creating an SHPT fund. PANF and Amgen then worked together to determine the fund’s coverage parameters so that it would cover only Sensipar. In November 2011, PANF launched a SHPT fund with Amgen alone providing the financing. Until June 2014, Sensipar patients received all of the money PANF’s SHPT fund disbursed.
Former Massachusetts Man Sentenced for Conspiracy to Hide $486,000 from Federally Insured Financial InstitutionRead the Press Release
BOSTON – A former Massachusetts man was sentenced yesterday in federal court in Springfield for his role in a conspiracy to hide money from a federally insured financial institution.
Jeffrey Borer, 59, formerly of Hatfield, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 10 months in prison, four years of supervised release and ordered to pay $189,000 in restitution and $189,000 in forfeiture. In February 2019, Borer pleaded guilty to one count of conspiracy to make false statements to a federally insured financial institution and one count of false statements to a federally insured financial institution.
In August 2011, Borer and another person owed Wells Fargo Bank approximately $1.32 million in outstanding loans. In March 2012, Borer’s sister, who was acting as their bookkeeper, received approximately $1.1 million, which related to a judgment from a Honduran court, in her Massachusetts bank account. The share of these funds belonging to Borer and the other person was $486,000. A few days later, Borer sent an e-mail to his sister to “keep [the] bulk” of their funds in her account because “Wells Fargo might be conducting an asset search on us to try and recover on the judgments. Just transfer what is needed to pay bills as they arrive.” Borer’s sister distributed their funds from her account as he requested.
On or about May 24, 2012, Borer’s sister prepared a false personal financial statement for Borer, stating that he and the other person only had $4,200 of cash in the bank. Borer provided the statement to Wells Fargo, which relied upon it to negotiate their debt. On Oct. 31, 2012, Borer executed a settlement agreement with Wells Fargo, in which the bank agreed to forgive Borer’s personal obligations in exchange for a payment of only $50,000. Wells Fargo would not have settled for $50,000 had it known that Borer and the other individual had received $486,000 in cash from the Honduran judgment.
On September 20, 2018, Borer’s sister pleaded guilty to these same charges. Her sentencing is scheduled for November 12, 2019.
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 Steven H. Breslow of Lelling’s Springfield Branch Office is prosecuting the case.
Worcester Man Arrested for Wildlife SmugglingRead the Press Release
BOSTON – A Worcester man was arrested yesterday and charged in federal court in Worcester with unlawfully importing a protected species.
Nathan Boss, 27, was charged with one count of unlawful smuggling of prohibited wildlife. Boss made an initial appearance yesterday before U.S. Magistrate Judge David Hennessy.
According to the charging documents, on Sept. 19, 2019, federal investigators intercepted an inbound U.S. Postal Service package from Hong Kong that was addressed to “Shelton Boss” at an address on Mildred Avenue in Worcester. The package was found to contain four black-breasted leaf turtles (Geoemyda spengleri), a species included in the Convention for Trade in Endangered Species and Wild Fauna, an international agreement joined by the U.S. that governs the importation of designated wildlife. Specifically, any black-breasted leaf turtle imported into the United States must be declared and approved by Fish and Wildlife Service before any shipment can be received.
On Sept. 20, 2019, Boss accepted delivery of the subject package at a post office in Worcester. Before leaving with the package containing the turtles, Boss allegedly informed the postal clerk that “Shelton Boss” was an alias that he used. In the course of the investigation, agents discovered evidence of Boss’s involvement in the unlawful importation of wildlife prior to September 2019.
The charge provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; David Sykes, Resident Agent in Charge of the U.S. Fish and Wildlife Service, Office of Law Enforcement; and Worcester Police Chief Steven M. Sargent made the announcement today. Assistance with the investigation was provided by the U.S. Postal Inspection Service, U.S. Customs and Border Protection and the Massachusetts Division of Fisheries and Wildlife. Assistant U.S. Attorney Nadine Pellegrini of Lelling’s Criminal Division is prosecuting the case.
Walpole Man Agrees to Plead Guilty to Filing a False Tax ReturnRead the Press Release
BOSTON – A Walpole man has agreed to plead guilty in connection with failing to report income from his landscaping business to the Internal Revenue Service (IRS).
Stephen L. Petrucci, 56, has agreed to plead guilty to one count of filing a false tax return. A plea hearing has not yet been scheduled by the Court. According to the terms of the plea agreement, the government will recommend a sentence of two years in prison, one year of supervised release, a fine and restitution to the IRS of $726,789.
According to the charging document, Petrucci owes more than $700,000 in income taxes to the IRS after he failed to report income from his landscaping business on his federal tax returns for tax years 2012 through 2017.
The charging statute provides a sentence of up to three years in prison, one year of supervised release and a fine of $100,000. 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 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 Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit is prosecuting the case.
Three Romanian Nationals Sentenced for Racketeering Conspiracy, ATM Skimming and Aggravated ID TheftRead the Press Release
BOSTON – Three Romanian nationals were sentenced in federal court in Boston yesterday in connection with an ATM skimming scheme operating throughout Massachusetts and other states including Connecticut, New York and South Carolina.
Ion Bonculescu, 26, Ion Vaduva, 39, and Florin Hornea, 38, were sentenced by U.S. District Court Judge William G. Young to 50, 24, and 36 months in prison, respectively, and three years of supervised release each. Judge Young also ordered restitution in the amount of $80,292 for Bonculescu, $141,635 for Vaduva, and $209,894 for Hornea. The defendants will face deportation proceedings upon completion of their sentence.
In October 2018, Vaduva pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, conspiracy to use counterfeit access devices, and aggravated identity theft. In a separate hearing, Ion Vaduva, 38, and Florin Hornea, 37, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity and conspiracy to use counterfeit access devices. Hornea also pleaded guilty to aggravated identity theft. In May 2017, the defendants and eleven others were indicted in connection with the ATM skimming scheme. A superseding indictment later added another defendant.
The defendants, except for one, were members of the Hornea Crew, led by Constantin Denis Hornea and Ludemis Hornea, and engaged in ATM skimming – obtaining debit card numbers and PINs from unsuspecting bank customers, creating counterfeit cards, and making unauthorized withdrawals from the victims’ bank accounts.
Over a period of 18 months, the Crew installed skimming devices and made unauthorized withdrawals in seven states, including Massachusetts. In particular, members of the Crew installed skimming devices in the following locations: Amherst, Bellingham, Billerica, Braintree, Chicopee, Quincy, Southwick, Waltham, Weymouth, and Whately, Mass.; Enfield, Conn.; Columbia, Greenville, Greenwood, Mauldin, and Saluda, S.C.; Savannah, Ga.; and Yadkinville, N.C. The Crew made unauthorized withdrawals at ATMs in approximately 29 Massachusetts towns; seven Connecticut towns; six New York towns; Salem, N.H.; and Sumter, S.C.
Members of the Hornea Crew transferred money throughout the United States and to Romania and the People’s Republic of China. Some of those transfers were for the purchase of skimming devices and related components from abroad.
In May 2018, Constantin Hornea was sentenced to 65 months in prison, three years of supervised release and ordered to pay $242,141 in restitution and a money judgment of $54,260. Ludemis Hornea was sentenced to 42 months in prison, which includes credit for 15 months served on a state sentence, three years of supervised release and ordered to pay $57,422 in restitution and a money judgment of $11,124.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement today. Assistance with the investigation was also provided by the Internal Revenue Service’s Criminal Investigations in Boston; U.S. Secret Service; U.S. Postal Service; Massachusetts Department of Correction; U.S. Customs and Border Protection; the Amherst, Billerica, Braintree, Boston, Quincy, Southwick, Waltham, Whately, and Westwood Police Departments; Connecticut State Police; Greenwich Police Department; the New York City Police Department; Houston Police Department; South Carolina Law Enforcement Division; Richland County (South Carolina) Sheriff’s Department; Florence and Saluda (South Carolina) Police Departments; and the Solicitor’s Offices of Greenville and Saluda Counties. Assistant U.S. Attorney Timothy E. Moran of Lelling’s Organized Crime and Gang Unit prosecuted the case.
South Boston Man Sentenced for Loansharking and Gambling ChargesRead the Press Release
BOSTON – A South Boston man was sentenced yesterday in federal court in Boston on loansharking and gambling charges.
Tam V. Nguyen, 51, was sentenced by U.S. District Court Judge Denise J. Casper to 10 months in prison and two years of supervised release. In June 2019, Nguyen pleaded guilty to one count of conspiracy to collect extensions of credit by extortionate means and one count of operating an illegal gambling business.
From April to August 2017, Nguyen conspired to collect an extension of credit from a victim and engaged in an illegal gambling business from September 2016 through August 2017. Nguyen was a bookmaker and conspired to collect a large gambling debt from a bettor. In an intercepted telephone call, Nguyen told a conspirator to “go ahead and be firm, be firm with him. That will make him afraid and try hard to take care of it. That’s all.”
As part of the same investigation, in August 2017, Vinh Quang Huynh, Quang PT Le, and Kim Nguyen, all of Dorchester, were charged with kidnapping, conspiracy to collect extension of credit by extortionate means, and operating an illegal gambling business. In March 2019, Kim Nguyen was sentenced to one year and one day in prison, two years of supervised release, and ordered to pay restitution in the amount of $6,300. In May 2018, Le was sentenced to six years in prison, three years of supervised release and ordered to pay restitution in the amount of $6,300. In December 2017, Huynh pleaded guilty and is awaiting sentencing. In addition, as part of the same case, Ban “Bo” Tran pleaded guilty to misprision of a felony and was sentenced in February 2019 to eight months in prison, one year of supervised release and ordered to pay a fine of $5,000.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Boston Police Commissioner William Gross; and Quincy Police Chief Paul Keenan made the announcement today. The Internal Revenue Service’s Criminal Investigation in Boston and the Massachusetts Department of Correction assisted with the investigation. Assistant U.S. Attorney Timothy E. Moran of Lelling’s Organized Crime and Gang Unit is prosecuting the case.
Former Owner of Giovanni’s Roast Beef & Pizza Sentenced for Tax FraudRead the Press Release
BOSTON – The former owner of Giovanni’s Roast Beef & Pizza in Saugus was sentenced today in federal court in Boston for failing to report $800,000 in corporate and personal income to the IRS.
Steve Konis, 70, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to three months in prison, two years of supervised release, and ordered to pay a fine of $100,000 and restitution of $178,196. In July 2019, Konis pleaded guilty to two counts of aiding and assisting in filing false corporate tax returns.
Konis was the sole owner of Giovanni’s Roast Beef & Pizza in Saugus. From 2012 through October 2016, Konis underreported the gross receipts of Giovanni’s in order to reduce the federal income taxes owed by Konis and Giovanni’s. Konis accomplished this by diverting some of the restaurant’s cash receipts for his own benefit, paying for some supplies with cash, and paying a portion of his employees’ wages in cash. In addition, Konis failed to report all of Giovanni’s business expenses in order to make the false gross receipts he reported appear more realistic. As a result, Konis failed to report on cash receipts totaling approximately $800,000 and cash expenses of $312,000 on Giovanni’s tax returns. As a result, for tax years 2012 through 2015, Konis avoided paying corporate and personal taxes totaling $178,169.
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. Assistant U.S. Attorney Mark J. Balthazard of Lelling’s Securities and Financial Fraud Unit prosecuted the case.
Westminster Woman Sentenced for Stealing Social Security BenefitsRead the Press Release
BOSTON – A Westminster woman was sentenced today in federal court in Worcester for stealing Social Security benefits.
Theresa Kenda Benedict, 56, was sentenced by U.S. District Court Judge Timothy Hillman to six months of home confinement, two years of probation and ordered to pay restitution of $46,310. In May 2019, Benedict pleaded guilty to one count of theft of public funds and four counts of making false statements. Benedict was arrested and charged in June 2018.
Benedict served as the representative payee for a disabled individual who was receiving Social Security benefits. In 2013, 2014, 2015, and 2016, Benedict informed the Social Security Administration that she used all of the money she received as a representative payee for the beneficiary. In fact, Benedict had used some of the money for her own expenses. Between December 2007 and March 2016, Benedict stole approximately $46,310.36 in Social Security benefits intended for the disabled individual.
United States Attorney Andrew E. Lelling 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 prosecuted the case.
Ware Man Pleads Guilty to Sexual Exploitation ChargesRead the Press Release
BOSTON – A Ware man pleaded guilty today in federal court in Springfield after being charged with sexual exploitation charges.
Walter Brown, 74, pleaded guilty to one count of conspiracy to commit sexual exploitation of a child, two counts of sexual exploitation of a child, one count of conspiracy to commit sex trafficking and two counts of sex trafficking. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Jan. 22, 2020. Brown was arrested on July 14, 2017, and has been detained since that time.
On Oct 11, 2019, co-defendant Claire Poole was sentenced to 125 months in prison after pleading guilty to conspiracy to commit sex trafficking and two counts of sex trafficking.
Poole moved to the Springfield area in early 2017 and later helped co-defendant Walter Brown have sex with a teenage girl. Brown induced the girl to provide pornographic videos and to have sex with him on two occasions by paying her money. Poole acted as a go-between, first by conveying Brown’s initial offer to the girl and then by relaying Brown’s messages to the victim, which included negotiations about what Brown would pay. Poole also provided a cell phone to produce the pornographic videos, and Poole transported the minor to Brown’s house in Ware for sex on two occasions.
The sex trafficking charges provide for a minimum mandatory sentence of 10 years and up to a lifetime in prison, a minimum of five years and up to a lifetime of supervised release and a fine of $250,000. The charges of sexual exploitation of a child provide for a minimum mandatory sentence of 15 years and up to 30 years in prison, a minimum of five years and up to a lifetime of supervised release and a fine of $250,000. Sentences are imposed by a federal district judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Ware Police Chief Shawn Crevier; Monson Police Chief Stephen Kozloski; and Amherst Police Chief Scott Livingstone made the announcement today. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. 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.
Two New York Men Charged with Fentanyl TraffickingRead the Press Release
BOSTON – Two New York City men were arrested on Monday, Oct. 21, 2019, and charged with drug trafficking in federal court in Boston.
James De La Cruz, 28, and Juan Santos Roque, 46, were charged with conspiracy to distribute and possession with intent to distribute more than 400 grams of fentanyl. The defendants were arrested in Peabody, Mass., and remain in federal custody pending a detention hearing.
It is alleged that De La Cruz spoke with a cooperating witness several times in September and October 2019, and met with the cooperating witness to arrange a large drug shipment from New York to the Boston area. On Oct. 21, 2019, De La Cruz and Santos Roque drove from New York to Peabody, Mass. with approximately 10 kilograms of suspected fentanyl and six kilograms of suspected heroin in a hidden compartment in Santos Roque’s vehicle. After meeting with the cooperating witness, law enforcement agents arrested both men.
The charge of conspiracy to distribute more than 400 grams of fentanyl carries a mandatory minimum sentence of 10 years in prison and up to life in prison, at least five years of supervised release and a maximum fine of $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Valuable assistance was provided by the Federal Bureau of Investigation, Boston Field Division; the Drug Enforcement Administration, New England Field Division; the Massachusetts State Police; the Massachusetts Attorney General’s Office; and the Dartmouth and Peabody Police Departments. Assistant U.S. Attorney Stephen W. Hassink 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.
Two Everett Men Charged with Money Laundering ConspiracyRead the Press Release
BOSTON – Two Everett men were indicted yesterday in connection with their role in a money laundering conspiracy.
Lindsley J. Georges, 27, and Dave Guillaume, 24, were indicted on one count of conspiracy to commit money laundering. The defendants were previously charged by criminal complaint in July 2019.
According to the indictment, in December 2017 and January 2018, customer accounts at Santander Bank and TD Bank were compromised and more than $900,000 fraudulent withdrawals were used to purchase bank checks in the names of several entities. Georges and Guillaume deposited the fraudulently obtained bank checks to business accounts they opened at TD Bank and Bank of America, after which they made substantial withdrawals of cash and checks. Guillaume allegedly opened two of the business accounts using false names, as well as a fraudulent driver’s license.
The charge of money laundering conspiracy 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 on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement. Assistant U.S. Attorneys Leslie A. Wright and Mark J. Balthazard of Lelling’s Securities and Financial Fraud Unit are prosecuting the cases.
The details contained in charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Marketing Company CEO Sentenced in College Admissions CaseRead the Press Release
BOSTON – A California woman became the 11th parent to be sentenced in the college admissions case.
Jane Buckingham, 50, of Beverly Hills, Calif., was sentenced by U.S. District Court Judge Indira Talwani to three weeks in prison, one year of supervised release, and ordered to pay a fine of $40,000. In May 2019, Buckingham pleaded guilty to one count of conspiracy to commit mail fraud and honest services mail fraud.
The government recommended a sentence of six months in prison, one year of supervised release and a fine of $40,000.
Beginning in 2018, Buckingham agreed with William “Rick” Singer and others to pay $50,000 to participate in the college entrance exam cheating scheme for her son. As part of the scheme, Buckingham made arrangements for her son to take the ACT at a test center in Houston, Texas, that Singer “controlled” through a corrupt test administrator, and for his answers to be corrected by co-conspirator Mark Riddell, who would purport to proctor the exam. Two days prior to the scheduled exam date, a physician advised Buckingham that her son could not fly to Houston due to a medical condition. Buckingham, in turn, asked Singer if it would be possible for Riddell simply to take the test in his place while she administered a fake exam to her son at her home in Los Angeles.
On July 14, 2018, Riddell completed the ACT exam by himself in a Houston hotel room. Three days later, Buckingham make a purported charitable donation of $35,000 to Singer’s sham charity, the Key Worldwide Foundation, to pay for the fraud, and advised Singer that she intended to have her former husband pay the remaining $15,000. In October 2018, Buckingham told Singer that she wanted to pursue the scheme again for her daughter. Ultimately, Buckingham was arrested before she had the opportunity to engage in the fraud a second time.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit prosecuted the case.
Dorchester Man Sentenced on Counterfeiting ChargesRead the Press Release
BOSTON – A Dorchester man was sentenced yesterday in federal court in Boston for selling counterfeit bills.
Franklin Perry, 53, was sentenced by U.S. Senior District Court Judge George A. O’Toole Jr. to 15 months in prison, two years of supervised release and forfeiture. In April 2019, Perry pleaded guilty to one count of dealing in counterfeit currency and two counts of passing and uttering counterfeit obligations of the United States. Perry was arrested in August 2018 during a law enforcement sweep targeting federal drug, firearms and counterfeiting offenses.
On June 27, 2018, Perry sold 10 counterfeit $100 bills to an individual who was working with federal law enforcement officers. On July 25, 2018, Perry purchased items from a retail store in Westwood, including an ink jet printer, with $500 in counterfeit $100 bills. That same day, he also purchased items at another retail store in Walpole with $500 in counterfeit bills. All of the counterfeit bills were manufactured using an inkjet printer on real currency that had been bleached first.
On Aug. 23, 2018, five inkjet printers, cleaning solution, bleach, counterfeit currency and real currency were found during a search of Perry’s residence.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service, Boston Field Division, made the announcement. Assistant U.S. Attorney S. William Abely of Lelling’s Major Crimes Unit prosecuted the case.
Lowell Man Pleads Guilty to Heroin and Fentanyl TraffickingRead the Press Release
BOSTON – A Lowell man pleaded guilty yesterday in federal court in Boston to heroin and fentanyl trafficking charges.
Anderson Daniel Jorge Cruz, 21, pleaded guilty to conspiracy to distribute and possession with intent to distribute one kilogram or more of heroin and fentanyl and other drug trafficking offenses. Cruz has been in custody since his arrest on Jan. 23, 2019, along with co-defendant Joshua Ramos-Rios. Cruz is scheduled to be sentenced before U.S. District Court Judge William G. Young on Jan. 14, 2020.
On Jan. 23, 2019, law enforcement seized over one kilogram of suspected heroin and fentanyl from Cruz’s apartment in Lowell after an undercover operation. At the time, Cruz had an outstanding warrant for homicide in Allentown, Pa.
The charge of conspiracy to distribute and possession with intent to distribute one kilogram or more of heroin and fentanyl provides for a mandatory minimum sentence of 10 years and up to life in prison, a minimum of five years of supervised release and a fine of $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Division; Lowell Police Superintendent Raymond Kelly Richardson; and Colonel Kerry Gilpin, Superintendent of the Massachusetts State Police, made the announcement. Assistant U.S. Attorney Philip C. Cheng of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.
Additional Charges Filed Against University Athletic Officials and Others in College Admissions CaseRead the Press Release
BOSTON – A federal grand jury in the District of Massachusetts returned a superseding indictment bringing additional charges against seven university athletic officials and others previously charged in the college admissions case today.
Gordon Ernst, Donna Heinel, Jorge Salcedo, Mikaela Sanford, Jovan Vavic, Niki Williams and William Ferguson have been charged with conspiring to commit mail and wire fraud, and honest services mail and wire fraud, in connection with the previously charged scheme to accept bribes and engage in other forms of fraud to facilitate cheating on standardized admissions tests and to secure the admission of students to elite universities by designating them as purported athletic recruits or members of other favored admissions categories. Six of the defendants—Ernst, Heinel, Salcedo, Sanford, Vavic and Williams—also face substantive wire and honest services wire fraud charges in connection with the scheme.
In addition, three defendants, Ernst, Heinel, and Salcedo, face new charges of conspiring to commit federal programs bribery by soliciting and accepting bribes to facilitate the admission of students to the universities where they worked: Georgetown University, the University of Southern California, and The University of California – Los Angeles. Ernst is also charged with substantive counts of federal programs bribery and money laundering.
The defendants, who were arrested in March 2018, were previously charged with racketeering conspiracy in connection with the scheme.
Arraignment dates have not yet been scheduled. Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of racketeering conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater and restitution. The charge of conspiracy to commit mail and wire fraud and honest services mail and wire fraud provides for a maximum sentence of 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of conspiracy to commit federal programs bribery provides for a sentence of up to five years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of mail and wire fraud and honest services mail and 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 and restitution. The charge of money laundering provides for a sentence of up to 10 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of conspiracy to commit mail fraud and honest services mail fraud and federal programs bribery provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. The Department of Education, Office of Inspector General provided assistance with the investigation. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Additional Charges Filed Against Parents in College Admissions CaseRead the Press Release
BOSTON – A grand jury in the District of Massachusetts has returned additional charges against 11 of the 15 parents charged in the college admissions case.
The new charges in the third superseding indictment allege that 11 defendants – Gamal Abdelaziz, Diane Blake, Todd Blake, Mossimo Giannulli, Elisabeth Kimmell, Lori Loughlin, William McGlashan, Jr., Marci Palatella, John Wilson, Homayoun Zadeh, and Robert Zangrillo – conspired to commit federal program bribery by bribing employees of the University of Southern California (USC) to facilitate their children’s admission. In exchange for the bribes, employees of the university allegedly designated the defendants’ children as athletic recruits – with little or no regard for their athletic abilities – or as members of other favored admissions categories.
In addition to the conspiracy count, one defendant, John Wilson of Lynnfield, Mass., is charged with two counts of substantive federal programs bribery in connection with his efforts to use bribes to secure his children’s admission to Harvard University and Stanford University. As alleged in the indictment, USC, Harvard and Stanford all receive more than $10,000 annually in grants, subsidies or other forms of federal assistance.
Today’s indictment also includes additional charges of wire fraud and honest services wire fraud against four defendants—Joey Chen, William McGlashan, Jr., John Wilson and Robert Zangrillo—in connection with the previously charged scheme to use bribery and other forms of fraud to obtain falsified standardized test scores and admission to elite colleges and universities as purported athletic recruits or members of other favored admissions categories.
The defendants, all of whom were arrested in March 2019, were previously charged with conspiring with William “Rick” Singer and others, to bribe SAT and ACT exam administrators to allow a test taker to secretly take college entrance exams in place of their children, or to correct the children’s answers after they had taken the exams. The defendants were also previously charged with conspiring to launder the bribes and other payments in furtherance of the fraud by funneling them through Singer’s purported charity and his for-profit corporation, as well as by transferring money into the United States, from outside the United States, for the purpose of promoting the fraud scheme.
Arraignment dates have not yet been scheduled. Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of conspiracy to commit mail and wire fraud and honest services mail and wire fraud provides for a maximum sentence of 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of conspiracy to commit federal programs bribery 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. The charge of conspiracy to commit money laundering provides for a maximum sentence of 20 years in prison, three years of supervised release, and a fine of $500,000 or twice the value of the property involved in the money laundering. The charge of wire fraud and honest services wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of federal programs bribery 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. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. The Department of Education, Office of Inspector General provided assistance with the investigation. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
South Yarmouth Man Charged with Drug PossessionRead the Press Release
BOSTON – A South Yarmouth man was arrested on Friday, Oct. 18, 2019, and charged with fentanyl possession.
Roosevelt Wilkins, 33, was charged by indictment on one count of possession with intent to distribute 40 grams or more of fentanyl. Wilkins was detained pending a probable cause and detention hearing set for Oct. 25, 2019.
As alleged in the indictment, on April 1, 2019, Wilkins possessed and intended to distribute 40 grams or more of fentanyl in Brockton.
The charging statute provides for a minimum mandatory sentence of 5 years and up to 40 years in prison, four years to a lifetime of supervised release, and a fine of up to $5 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 & Explosives, Boston Field Division; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, 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.
Parents in College Admissions Case Plead GuiltyRead the Press Release
BOSTON – A California husband and wife charged in the college admissions scandal pleaded guilty today in federal court in Boston.
Manuel Henriquez, 55, the founder of Hercules Capital, and his wife, Elizabeth Henriquez, 56, both of Atherton, Calif. pleaded guilty today to an indictment charging one count of conspiracy to commit mail and wire fraud and honest services mail and wire fraud and one count of conspiracy to commit money laundering. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for March 5 and Feb. 7, 2020, respectively.
Beginning in 2015, the Henriquezes conspired with Rick Singer, and others, to have their daughters’ college entrance exams corrected, thereby fraudulently inflating their scores; Elizabeth Henriquez agreed with Singer to facilitate the admission of her older daughter to Georgetown University as a purported athletic recruit.
In October 2015, co-conspirator Mark Riddell purported to proctor the SAT exam for the Henriquezes’ older daughter, but in actuality, Riddell provided her with the answers. Soon after, the Henriquezes wired $15,000 to Singer’s personal bank account and $10,000 to Singer’s for-profit college counseling business. Singer used some of that money to pay Riddell. Beginning in 2015, Elizabeth Henriquez agreed to pay Singer an amount, ultimately totaling $400,000, to facilitate their older daughter’s admission to Georgetown as a purported tennis recruit. After their daughter was admitted to Georgetown in the spring of 2016, the Henriquezes made a $400,000 donation to Singer’s sham charity, Key Worldwide Foundation, to pay for the fraud, and Singer, in turn, made payments to Ernst personally.
In 2016 and 2017, the Henriquezes participated in the ACT and SAT cheating scheme on multiple occasions for their younger daughter in exchange for payments funneled through KWF.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of conspiracy to commit mail and wire fraud and honest services mail and wire fraud provides for a maximum sentence of 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of conspiracy to commit money laundering provides for a maximum sentence of 20 years in prison, three years of supervised release and a fine of $500,000 or twice the value of the property involved in the money laundering. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit are prosecuting the cases.
The details contained in the court documents are allegations and the remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Parent in College Admissions Case Pleads GuiltyRead the Press Release
BOSTON – A California woman pleaded guilty today in federal court in Boston to paying $300,000 to participate in both the college entrance exam cheating scheme and athletic recruitment scheme.
Michelle Janavs, 48, of Newport Coast, Calif., pleaded guilty to an indictment charging her with one count of conspiracy to commit mail and wire fraud and honest services mail and wire fraud and one count of conspiracy to commit money laundering. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Feb. 25, 2020.
Beginning in 2017, Janavs conspired with Rick Singer and others to secure her children’s admission to selective colleges and universities through bribery and fraud. On Oct. 28, 2017, Janavs’ older daughter took the ACT exam at a test center in West Hollywood that Singer “controlled” through a corrupt test proctor, Mark Riddell, who reviewed and corrected her answers. In November 2017, Janavs sent a $50,000 check to KWF to pay for the fraud. In February 2019, Janavs older daughter again took the ACT at the West Hollywood Test Center, and Riddell corrected her answers. Later that month, Janavs wired $25,000 to KWF and mailed a $25,000 check to KWF. Singer, in turn, passed bribes to Riddell and to Igor Dvorskiy, the administrator of the test center.
Beginning in 2018, Janavs agreed to with Singer to facilitate her older daughter’s admission to the University of Southern California (USC) as a purported volleyball recruit. In August 2018, Janavs emailed Singer photos of her daughter playing volleyball. In October 2018, a USC athletics administrator, Donna Heinel, secured approval to admit Janavs’ daughter from the USC subcommittee for athletic admissions based on the falsified athletic credentials. Later that month, Janavs mailed Heinel a $50,000 check made payable to USC Women’s Athletic Fund. Janavs was arrested before her older daughter received her formal admission to USC and, accordingly, did not pay the remaining $150,000 of the initially agreed upon amount.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of conspiracy to commit mail and wire fraud and honest services mail and wire fraud provides for a maximum sentence of 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of conspiracy to commit money laundering provides for a maximum sentence of 20 years in prison, three years of supervised release, and a fine of $500,000 or twice the value of the property involved in the money laundering. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit are prosecuting the cases.
The details contained in the court documents are allegations and the remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former President of Private Tennis Academy Agrees to Plead Guilty in College Admissions CaseRead the Press Release
BOSTON – Martin Fox, the former president of a private tennis academy in Texas, will plead guilty in connection with his involvement in a scheme to use bribery to facilitate the admission of applicants to selective colleges and universities.
Fox, 62, of Houston, Texas, will plead guilty to one count of conspiracy to commit racketeering. A plea hearing has not yet been scheduled by the Court. According to the terms of the plea agreement, the government will recommend a sentence at the low end of the sentencing guidelines, one year of supervised release, a fine and restitution.
In 2015, Fox introduced co-conspirator William “Rick” Singer to a tennis coach at the University of Texas (U-Texas), who facilitated the admission of a student to U-Texas as a purported athletic recruit in exchange for a bribe. In return for assisting with the bribe transaction, Singer paid Fox $100,000. Fox arranged additional similar bribes, on two occasions, with a varsity sports coach at the University of San Diego (USD). Specifically, in exchange for a bribe paid through Fox, the USD coach designated the son of one of Singer’s clients, who did not play the sport, as an athletic recruit for the team, thereby facilitating his admission to USD. Singer paid Fox $100,000 for arranging the bribe. In 2017, in exchange for the promise of another bribe, the varsity coach designated another student as a recruit to manage the coach’s team, thereby facilitating her admission to USD. Although the student ultimately decided not to attend USD, Singer paid the varsity coach $10,000 for his help.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of racketeering conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit prosecuted the case.
Former Executive Assistant Pleads Guilty in Connection with Embezzling over $3 MillionRead the Press Release
BOSTON – The former executive assistant of a Waltham-based technology company pleaded guilty today in connection with a fraud and embezzlement scheme that netted over $3 million.
Shivani Patel, 38, of Vineyard Haven, pleaded guilty to one count each of bank fraud, money laundering and filing false tax returns. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Jan. 13, 2020. According to the terms of the plea agreement, the government will recommend a sentence of 57 months in prison, three years of supervised release, a fine between $20,000 and $200,000, restitution and forfeiture.
As an executive assistant to the chief financial officer, Patel’s duties included retrieving incoming mail containing customer checks made payable to her employer, recording the checks into the payment system and depositing the checks into her employer’s bank account.
From at least February 2012 through July 2017, Patel embezzled approximately $3,076,369 from her then employer for her personal use. Specifically, in February 2012, Patel created a company with a name nearly identical to that of her then employer — using her employer’s name but just adding an “s” to the end — and opened a business banking account in the sham company’s name. Thereafter, Patel took customer checks payable to her employer from the mail, deposited those checks into the sham company’s bank account, and concealed her embezzlement by making false entries in her employer’s billing system. To disguise and conceal the nature of these funds, Patel funneled this money through multiple bank accounts.
In addition, Patel filed income tax returns for the tax years 2012 through 2016 in which she intentionally underreported her income by failing to disclose the money she had stolen from her employer.
The 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, restitution and forfeiture. The charge of money laundering provides for a sentence of up to 20 years, three years of supervised release, a fine of $500,000 or twice the amount involved in the transaction, restitution and forfeiture. The charge of filing false tax returns provides for a sentence of up to three years in prison, one year of supervised release, a fine of $100,000, restitution and forfeiture. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; 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 Justin D. O’Connell of Lelling’s Securities and Financial Fraud Unit is prosecuting the case.
Former CEO of Pimco Pleads Guilty in College Admissions CaseRead the Press Release
BOSTON – A California man pleaded guilty today in federal court in Boston to using bribery and other forms of fraud to facilitate his children’s admission to the University of Southern California (USC) as purported athletic recruits.
Douglas Hodge, 61, of Laguna Beach, Calif., the former CEO of Pimco, pleaded guilty today to an indictment charging him with one count of conspiracy to commit mail and wire fraud and honest services mail and wire fraud and one count of conspiracy to commit money laundering. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Jan. 22, 2020.
Beginning in 2012, Hodge conspired with Rick Singer and others to pay a total of $525,000 to facilitate his younger daughter’s admission to USC as a purported soccer recruit and his son’s admission to USC as a purported football recruit. In September 2012, Singer sent high school transcripts for Hodge’s younger daughter to Laura Janke and Ali Khosroshahin, the coaches of the USC women’s soccer team. They fabricated a soccer profile for Hodge’s younger daughter, which was then submitted as part of her application to USC. In February 2013, a senior athletics administrator at USC, Donna Heinel, allegedly presented Hodge’s younger daughter to the USC subcommittee for athletic admissions – and based on the falsified soccer credentials – secured her admission to the university as a purported soccer recruit. On April 9, 2013, after Hodge’s younger daughter received a formal acceptance letter from USC, Hodge wired $150,000 to Singer’s for-profit college counseling business and $50,000 to Singer’s sham charity, Key Worldwide Foundation, to pay for the bribery scheme.
In January 2015, Singer e-mailed two falsified athletic profiles of Hodge’s son created by Janke—one relating for football, the other for tennis—to Hodge and instructed Hodge to e-mail them to the senior athletic director at USC. In February 2015, Hodge’s son was approved by the USC subcommittee for athletic admissions based on the falsified football credentials after being presented by the senior athletic director. In March 2015, Hodge mailed the athletic director a $75,000 check made payable to USC “Womens Athletic Board,” a fund she controlled, after Hodge’s son was formally accepted to USC. In April 2015, Hodge wired $125,000 to Singer’s business and $125,000 to Singer’s sham charity to pay for the bribery scheme.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of conspiracy to commit mail and wire fraud and honest services mail and wire fraud provides for a maximum sentence of 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of conspiracy to commit money laundering provides for a maximum sentence of 20 years in prison, three years of supervised release, and a fine of $500,000 or twice the value of the property involved in the money laundering. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit are prosecuting the cases.
The details contained in the court documents are allegations and the remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Brockton Man Sentenced to Prison for Drug TraffickingRead the Press Release
BOSTON – A Brockton man was sentenced on Thursday, Oct. 17, 2019, in federal court in Boston for heroin trafficking.
Ozair Pereira, 31, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 30 months in prison and three years of supervised release. In May 2019, Pereira pleaded guilty to conspiracy to distribute and possession with intent to distribute heroin.
During an investigation in the fall of 2018, agents intercepted telephone calls between Djuna Goncalves and multiple individuals, including Pereira, which revealed that Goncalves allegedly worked with others to distribute large quantities of heroin, fentanyl, cocaine, crack cocaine and marijuana from a base of operations at 12 Addison Avenue in Brockton. During the intercepted calls, Pereira ordered heroin from Goncalves, and agents observed Goncalves deliver the drugs to Pereira in Brockton.
Periera was indicted, along with Goncalves, and eight other defendants on Dec. 12, 2018, in a wide ranging drug conspiracy. Periera is the second defendant in this case to be sentenced.
United States Attorney Andrew E. Lelling; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; John Gibbons, U.S. Marshal for the District of Massachusetts; Colonel Kerry A. Gilpin, Superintended of the Massachusetts State Police; Brockton Police Chief John Crowley; and Plymouth County District Attorney Timothy J. Cruz made the announcement today. Assistant U.S. Attorneys Christopher Pohl and Alathea Porter of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
Real Estate Developer Sentenced in College Admissions CaseRead the Press Release
BOSTON – A California real estate developer became the tenth parent to be sentenced in connection with the college admissions case.
Robert Flaxman, 62, of Laguna Beach, Calif., was sentenced by U.S. District Court Judge Indira Talwani to one month in prison, one year of supervised release, ordered to complete 250 hours of community service and to pay a fine of $50,000. In May 2019, Flaxman pleaded guilty to one count of conspiracy to commit mail fraud and honest services mail fraud.
The government recommended a sentence of eight months in prison, one year of supervised release and a fine of $40,000.
Beginning in the 2016, Flaxman conspired with William “Rick” Singer and others to have his daughter’s ACT exam corrected, thereby fraudulently inflating the score. As part of the scheme, Flaxman took steps to secure extended time for his daughter to take the ACT and to take the exam at a test center in Houston, Texas, that Singer “controlled” through a corrupt test administrator. On Oct. 22, 2016, Flaxman’s daughter and the child of another client of Singer both took the ACT with the assistance of co-conspirator Mark Riddell. Riddell assisted in answering exam questions and instructed the students to answer different questions incorrectly so that the ACT would not suspect cheating. As a result of the cheating scheme, Flaxman’s daughter received a score of 28 out of 36 on the exam.
Two days prior to the exam, Flaxman made a purported charitable donation of $75,000 to Singer’s sham charity, Key Worldwide Foundation, to pay for the fraud. Thereafter, Flaxman deducted the bribe payment from his income taxes, thereby defrauding the IRS.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit prosecuted the case.
Provincetown Man Charged with Possessing and Receiving Child PornographyRead the Press Release
BOSTON – A Provincetown man was arrested yesterday and charged in federal court in Boston with receipt and possession of child pornography.
Kerry Adams, 59, was charged with one count of receipt of child pornography and one count of possession of child pornography. Adams was held pending a detention hearing scheduled for Oct. 22, 2019, before U.S. District Court Magistrate Judge M. Page Kelley.
According to court documents, a federal search warrant was executed on Oct. 17, 2019 at Adams’s residence in Provincetown were multiple devices, including laptops, thumb drives and SD cards were located. During an initial on-scene forensic review of a laptop, hundreds of files in the computer’s peer-to-peer software program were located. At least a dozen of these files were found to contain child pornography, and three of the files contained videos depicting pre-pubescent boys engaging in sexual acts. During a consensual interview, Adams initially denied downloading child pornography onto his computer, but eventually admitted that he had searched the term “teen boy,” in the past. It is alleged that Adams initially denied that there would be pornography of 10-14 year-old-boys on his computer, but later admitted that 13-15 year-old-boys were once of sexual interest to him, but are not anymore.
The charging statute 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; Stephen Marks, Special Agent in Charge of U.S. Secret Service in Boston; and Barnstable Police Chief Matthew Sonnabend made the announcement today. Valuable assistance was provided by Provincetown Police Department. Assistant U.S. Attorney Lindsey E. Weinstein of Lelling’s Major Crimes Unit is prosecuting the case.
Members of the public who have questions, concerns, or information regarding this case should call 617-748-3274.
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/.
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.
Former Airline Gate Agent Pleads Guilty to Cheating Airline Ticketing SystemRead the Press Release
BOSTON – A Chelsea woman pleaded guilty today in federal court in Boston in connection with using her position as an airline gate agent to convert low cost flights to more expensive flights and destinations for friends, family and acquaintances.
Tiffany Jenkins, 31, pleaded guilty to three counts of wire fraud. She was arrested and charged in November 2018. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Jan. 21, 2019.
As a gate agent, Jenkins had access to the airline’s computer reservation database and had the ability to use a special code, referred to as an involuntary exchange or “INVOL,” to change flights for customers at no additional cost. This code enables agents to change flights for customers who miss their flights or experience a death in the family.
During a 15-month period, from approximately July 1, 2016, through Sept. 27, 2017, Jenkins executed approximately 505 involuntary ticket exchanges for more than 100 different passengers. Many of those exchanges occurred after the passenger was first booked on domestic flights at one of the airline company’s lowest available fares—often, roundtrip flights between Las Vegas, Nev., and Long Beach, Calif. A short time later, Jenkins exchanged those tickets for a completely different city pair, generally involving much more expensive international locations, for friends, family and acquaintances.
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 or twice the gross loss or gain, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorneys Sara Miron Bloom and Mark Balthazard of Lelling’s Securities and Financial Fraud Unit are prosecuting the case.
Dominican National Pleads Guilty to Fentanyl Trafficking and Aggravated Identity TheftRead the Press Release
BOSTON – A Dominican national pleaded guilty yesterday in federal court in Boston to fentanyl trafficking and using the Social Security number of a U.S. citizen to obtain a driver’s license.
Santo Patricio Lugo Santos, 42, pleaded guilty to two counts of distribution of and possession with intent to distribute more than 40 grams of fentanyl, one count of false representation of a Social Security number, and one count of aggravated identity theft. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Jan. 21, 2020. Lugo Santos has been in custody since his arrest on Feb. 14, 2019.
According to charging documents, Lugo Santos made two sales of fentanyl to a cooperating witness in October 2016 and January 2017. Additionally, in July 2018, he used the Social Security number of a U.S. citizen to obtain a Massachusetts driver’s license.
The charges of distribution of over 40 grams of fentanyl provides for a mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release and a fine of $5 million. The charge of false representation of a Social Security number provides for a sentence of up to five years in prison, at least three years of supervised release and a fine of up to $250,000. The charge of aggravated identity theft carries a mandatory two-year sentence of imprisonment to be served consecutively to any other sentence imposed, at least one year of supervised release and a fine of up to $250,000. Lugo Santos will be subject to deportation upon completion of his sentence. 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. The case was investigated by the OCDETF Strike Force, which consists of members of the Massachusetts Department of Correction; Norfolk County Sheriff’s Office; and the Reading, Watertown, Braintree, Peabody, Waltham, Woburn, and Concord Police Departments. The Suffolk County Sheriff’s Office and the Boston Police Department also assisted with the investigation. Assistant U.S. Attorney Stephen W. Hassink of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
Bedford Man Sentenced for Selling Crack Cocaine to Bedford VA Medical Center ResidentsRead the Press Release
BOSTON – A Bedford man was sentenced yesterday in federal court in Boston in connection with a scheme to distribute crack cocaine on the Veterans Affairs Medical Center campus in Bedford.
Michael Sexton, 59, was sentenced by U.S. District Court Douglas P. Woodlock to time served (approximately two months) and two years of supervised release. In October 2018, Sexton pleaded guilty to distributing crack cocaine and was subsequently accepted into the Massachusetts District Court sponsored RISE Program.
In January 2017, a cooperating witness reported to law enforcement that Sexton was selling crack cocaine to residents of the Veterans Affairs Medical Center in Bedford. Law enforcement conducted controlled purchases of crack cocaine between Sexton and the cooperating witness on June 29, Aug. 10, Sept. 5 and Sep. 27, 2017.
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 D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Shawn Kelly, Chief of Police of the Department of Veterans Affairs Police Service, Bedford VA Medical Center, made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Lelling’s Criminal Division prosecuted the case.
New York Man Charged with Armed Bank RobberyRead the Press Release
BOSTON – A New York man was indicted in federal court in Boston with the Aug. 19, 2019, armed robbery of a branch of the Bank of America in Revere.
David J. Hattersley, 45, was indicted on one count of armed bank robbery. He was arrested and charged by criminal complaint on Sept. 27, 2019.
According to the charging documents, on Aug. 19, 2019, at approximately 1:30 p.m., an individual entered a branch of the Bank of America in Revere. The individual approached a teller’s station, passed a threatening demand note, and pointed what appeared to be a black semi-automatic pistol at the teller. The teller handed the individual cash from her drawer and the individual exited the bank. Bank surveillance cameras captured images of the bank robber as a 6’ tall, heavily tattooed, white male, wearing a white tank top, and pointing a black semi-automatic handgun at the teller. A post-robbery audit revealed that the individual stole over $13,000 during the robbery.
Police who interviewed the bank employees, learned that the individual had escaped the area on an MBTA bus. A short time later, a person matching the individual’s description was located in a residential neighborhood. The individual, later determined to be Hattersley, was allegedly in possession of a large sum of cash and a black pistol, which was later determined to be a BB gun. Hattersley was arrested without incident. Police also discovered that Hattersley was the subject of outstanding warrants in New York.
The charging statute provides for a sentence of up to 25 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences imposed by a federal district court judge based upon the US Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigations, Boston Field Division; and Revere Police Chief James Guido made the announcement today. Assistant U.S. Attorney Kenneth G. Shine 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.
Former High School Teacher Sentenced for Child Pornography OffensesRead the Press Release
BOSTON – A former Narraganset Regional High School math teacher was sentenced yesterday in federal court in Boston for receipt and possession of child pornography.
Warren Anderson, 27, of Lowell and Harvard, was sentenced by U.S. District Court Judge Allison D. Burroughs to 45 months in prison and five years of supervised release. In July 2019, Anderson pleaded guilty to one count each of receipt and possession of child pornography.
As part of an investigation into the online trade of child pornography through the use of Kik messenger, Anderson was interviewed in August 2018 and admitted accessing sites on the dark web to obtain child pornography. Forensic analysis of his computers revealed that he had thousands of files of child pornography, and that he had used both Kik and a dark web-based messaging platform to discuss and trade child pornography.
United States Attorney Andrew E. Lelling and Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations made the announcement today. Assistance was provided by the Harvard and Templeton Police Departments. 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/.
Charlestown Man Sentenced for Distributing FentanylRead the Press Release
BOSTON – A Charlestown man was sentenced today in federal court in Boston for distributing fentanyl out of a Chelsea apartment.
Cruz Villar, 32, was sentenced by U.S. District Court Judge Indira Talwani to three years in prison and five years of supervised release. In June 2019, Villar pleaded guilty to one count of distribution and possession with intent to distribute fentanyl and one count of possession with intent to distribute 40 grams or more of fentanyl.
On June 22, 2018, Villar was observed by law enforcement in a hand-to-hand sale of fentanyl to a customer in a parking lot in Dorchester. After the sale, agents recovered approximately 11 grams of fentanyl from the customer and approximately $1,446 in cash from Villar. A subsequent search of an apartment in Chelsea that Villar had been renting—but in which he had not been residing— resulted in the recovery of approximately 87.4 additional grams of fentanyl, along with components of a drug press, a digital scale, two blenders, bottles of a cutting agent, and packaging materials, including plastic wrap and plastic baggies. In addition, Villar made regular trips from the Chelsea apartment to an address in Mashpee in a manner consistent with the distribution of narcotics.
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. Assistant U.S. Attorney Brian A. Pérez‑Daple of Lelling’s Criminal Division prosecuted the case.
Brockton Gang Member Pleads Guilty to Second Federal Firearm OffenseRead the Press Release
BOSTON – A Brockton man affiliated with the Junior Kaos gang pleaded guilty today in federal court in Boston to illegally possessing a firearm and ammunition.
Dwayne Leaston-Brown, 29, pleaded guilty to one count of being a felon in possession of a firearm and ammunition and is scheduled to be sentenced on Jan. 23, 2020. Leaston-Brown was arrested and charged in November 2018 and has been in custody since.
On Sept. 8, 2018, a Boston police officer encountered Leaston-Brown with a loaded firearm on his person near the corner of Fairway Street and Blue Hill Avenue in the Mattapan Square area of Boston. Federal law prohibits Leaston-Brown from possessing a firearm or ammunition because of a prior felony conviction. Leaston-Brown was previously convicted in federal court in November 2014 of being a felon in possession of a firearm.
The charge of being a felon in possession of a firearm 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 Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, New England Field Division; and Boston Police Commissioner William Gross made the announcement today.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Three Members of “Head Shot Mafia” Drug Crew ArrestedRead the Press Release
BOSTON – Three members of a violent Brockton drug crew were arrested and charged in connection with operating a fentanyl delivery service. One member of the drug crew remains at large.
Placido Armando Pereira, 33; Natalio Miranda, 28; andDjoy Defrancesco, 23, all of Brockton, were arrested this morning and charged with conspiracy to distribute and to possess with intent to distribute fentanyl. The defendants were detained following an initial appearance today before U.S. Magistrate Judge M. Page Kelley. A fourth defendant, Jason Miranda, 24, of Taunton, remains at large.
As alleged in charging documents, law enforcement began investigating a violent Brockton-area drug crew that distributed large quantities of fentanyl throughout southeastern Massachusetts. The drug crew, which refers to itself as “HSM,” for “Head Shot Mafia,” ran a fentanyl delivery service that encompassed all of Brockton as well as neighboring cities. Specifically, it is alleged that drug users/customers placed orders for fentanyl by contacting a cellphone maintained and shared by HSM crew members, and that HSM members worked together to deliver the fentanyl order. Beginning in September 2019, agents succeeded in introducing an undercover law enforcement officer to HSM, who made six purchases of fentanyl from members of the crew.
According to the criminal complaint and court records, the defendants have criminal records. In 2017, Pereira was convicted of unlawful possession of a firearm and possession with intent to distribute marijuana and was sentenced to three years in prison. In 2010, Pereira was arrested on drug trafficking charges at Logan Airport as he returned to the U.S. from Cape Verde, and later sentenced to 30 months in prison and three years of supervised release. On Feb. 20, 2014, Pereira was the target of an assassination attempt in Brockton.
According to court documents, Natalio Miranda sold fentanyl to the undercover officer while on probation for a state drug trafficking offense. Furthermore, Defrancesco sold fentanyl to the undercover officer while on pre-trial release from a Plymouth Superior Court indictment charging him with trafficking in fentanyl, possession of a firearm, and possession of a high capacity feeding device, among other offenses.
The charge of conspiracy to distribute and possess with intent to distribute fentanyl 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; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Brockton Police Chief John Crowley; John Gibbons, U.S. Marshal for the District of Massachusetts; and Plymouth County District Attorney Timothy J. Cruz made the announcement today. Assistance was provided by the East Bridgewater, West Bridgewater, Whitman and Bridgewater State University Police Departments as well as the Plymouth County Sheriff’s Office. Assistant U.S. Attorney Christopher Pohl of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the complaint are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Springfield Man Pleads Guilty to Drug ChargeRead the Press Release
BOSTON – A Springfield man pleaded guilty today in federal court in Springfield to distributing cocaine.
Samuel Diaz, a/k/a “Sammy,” 36, pleaded guilty to distributing approximately 50 grams of cocaine to a cooperating witness on March 24, 2015. Diaz also sold a firearm and ammunition to the cooperating witness on the same day.
U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Jan. 23, 2020.
The charge of distributing and possessing with intent to distribute cocaine provides a sentence of up to 20 years in prison, at least three years of supervised release, and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement today. Assistant U.S. Attorney Katharine A. Wagner of Lelling’s Springfield Branch Office is prosecuting the case.
Former State Senator’s Accountant Convicted of Tax FraudRead the Press Release
BOSTON—John H. Nardozzi, the certified public accountant for former State Senator Brian Joyce, was convicted today by a federal jury for conspiring with the late senator to defraud the IRS from 2011 through 2014.
Nardozzi, 67, of Waltham, was convicted after a seven-day trial of defrauding 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 falsely creating a single-employment pension (SEP) fund 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 approximately $400,000 of income. 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. In addition, Nardozzi attributed income from Joyce’s law firm to Joyce’s wife even though she never worked for the law firm.
U.S. District Court Judge William G. Young scheduled sentencing for Jan. 9, 2020.
The charge of conspiracy to defraud the United States provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of aiding and assisting in filing a false tax return provides for a sentence of up to three years in prison, one year of supervised release and a fine of up to $100,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; 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 are prosecuting the case.
California Entrepreneur Sentenced in College Admissions CaseRead the Press Release
BOSTON – A California woman became the ninth parent to be sentenced in connection with the college admissions case.
Marjorie Klapper, 50, of Menlo Park, Calif., was sentenced by U.S. District Court Judge Indira Talwani to three weeks in prison, one year of supervised release, ordered to complete 250 hours of community service and to pay a fine of $9,500. In May 2019, Klapper pleaded guilty to one count of conspiracy to commit mail fraud and honest services mail fraud.
The government recommended a sentence of four months in prison, one year of supervised release and a fine of $20,000.
“This defendant paid $15,000 to arrange for her son to cheat on the ACT and then falsely claimed on his college applications that he was Black or Latino,” said United States Attorney Andrew E. Lelling. “Ms. Klapper thereby not only corrupted the standardized testing system, but also specifically victimized the real minority applicants already fighting for admission to elite schools. We respectfully disagree that a three-week sentence is a sufficient sanction for this misconduct.”
Beginning in the 2017, Klapper conspired with William “Rick” Singer and others to have her son’s ACT exam corrected, thereby fraudulently inflating the score. As part of the scheme, Klapper took steps to secure extended time for her son to take the ACT and to take the exam at a test center in West Hollywood that Singer “controlled” through the center’s corrupt administrator, Igor Dvorskiy. After Klapper’s son completed the exam on Oct. 28, 2017, co-conspirator Mark Riddell corrected his answers. As a result of the cheating scheme, Klapper’s son received a score of 30 out of 36 on the exam. In November 2017, Klapper made a purported charitable donation of $15,000 to Singer’s sham charity, Key Worldwide Foundation to pay for the fraud.
In addition, Klapper conspired with Singer to falsify her son’s college applications by claiming that he was African-American and of Hispanic/Latino origin in an attempt to further improve his odds of admission by claiming minority status. Klapper also falsely represented that neither she nor her husband had attended college in order to bolster her son’s college prospects.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit prosecuted the case.
Two Dominican Nationals Charged with Distributing FentanylRead the Press Release
BOSTON – Two Dominican nationals were indicted today in federal court in Boston with distributing fentanyl.
Jose Guerrero-Soto, 25, and Yokasta Aybar-Soto, 26, both of the Dominican Republic, were indicted on distribution of and possession with intent to distribute 40 grams or more of fentanyl, as well as on conspiracy to distribute and to possess with intent to distribute 40 grams of more of fentanyl. Guerrero-Soto and and Aybar-Soto were initially charged by criminal complaint and have been in custody since Sept. 12, 2019.
The indictments allege that Guerrero-Soto and Aybar-Soto sold over 40 grams of fentanyl to an undercover officer in Lawrence on Sept. 12, 2019.
The charging statutes provide for a mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release, and a fine of up to $5 million. 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, Boston Field Office; Massachusetts Attorney General Maura Healey; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement. Assistant U.S. Attorney James R. Drabick of Lelling’s Criminal Division 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.
Two Chinese Nationals Charged with Stock Spoofing ConspiracyRead the Press Release
BOSTON – Two Chinese nationals were charged today for their alleged participation in a complex market manipulation conspiracy.
Xiaosong Wang, 31, and Jiali Wang, 41, both of the People’s Republic of China, were charged with one count of conspiracy to commit securities fraud. Jiali Wang was arrested yesterday evening at Logan International Airport as he was boarding a flight to Beijing. Xiaosong Wang was arrested at a home he owns in Upton, Mass. Both defendants will appear in U.S. District Court in Boston today at 3:00 p.m.
According to the criminal complaint, Xiaosong Wang, Jiali Wang, and others conspired and engaged in a coordinated stock manipulation scheme that artificially influenced the prices of publicly traded securities by making others in the market believe that there was trading interest and activity in particular stocks. In reality, no such interest or trading activity existed, and the defendants profited from the price movements they caused.
The alleged scheme targeted “thinly-traded” securities, which are securities with a low trading volume that are volatile and highly responsive to buying/selling activity. The defendants are alleged to have placed (or coordinated the placement of) thousands of non-bona fide purchase/sell orders in order to move stock prices up or down. After the prices moved and the defendants purchased/sold the securities at the artificially higher/lower prices, the initial orders were cancelled. Defendants and their co-conspirators are alleged to have profited millions of dollars as a result of the stock price spoofing scheme.
The charge of conspiracy 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. 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. Valuable assistance was provided by the Securities and Exchange Commission. Assistant U.S. Attorney Jordi de Llano, Deputy Chief of Lelling’s Securities & Financial Fraud Unit and Assistant U.S. Attorney David D’Addio of Lelling’s Cybercrime Unit are prosecuting the case.
The details contained in charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Virginia Beach Area Woman Sentenced to More than 10 Years in Prison for Sex TraffickingRead the Press Release
BOSTON – A Virginia Beach area woman was sentenced yesterday in federal court in Springfield for sex trafficking.
Claire Poole, 41, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 125 months in prison and five years of supervised release after pleading guilty to conspiracy to commit sex trafficking and two counts of sex trafficking. Poole was arrested on July 7, 2017, and has been detained since that time.
Poole moved to the Springfield area in early 2017 and began helping co-defendant Walter Brown have sex with a teenage girl. Brown induced the girl to provide pornographic videos and to have sex with him on two occasions by paying her money. Poole acted as a go-between, first by conveying Brown’s initial offer to the girl and then by relaying Brown’s messages to the victim, which included negotiations about what Brown would pay. Poole also provided a cell phone to produce the pornographic videos, and Poole transported the minor to Brown’s house in Ware for sex on two occasions.
Brown is scheduled to plead guilty on Oct. 18, 2019.
United States Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Ware Police Chief Shawn Crevier; Monson Police Chief Stephen Kozloski; and Amherst Police Chief Scott Livingstone made the announcement today. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. 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.
North Dartmouth Woman Admits to Obtaining Cocaine from Puerto Rico Through the U.S. MailRead the Press Release
BOSTON – A North Dartmouth woman pleaded guilty yesterday in federal court in Boston in connection with her role in obtaining cocaine from Puerto Rico through the mail.
Cristina Lopez, 44, pleaded guilty to conspiring to possess with intent to distribute five kilograms or more of cocaine and possession with intent to distribute 500 grams or more of cocaine. U.S. District Court Judge Leo Sorokin scheduled sentencing for Jan. 8, 2020.
Between March 2017 and August 2018, the U.S. Postal Inspection Service identified more than 40 suspicious parcels that had been sent through the mail from Puerto Rico to various addresses in Massachusetts, including residences in Quincy, North Dartmouth, Weymouth, and New Bedford. The suspicious parcels were often sent on the same day from Puerto Rico to two or more different addresses in Massachusetts. Agents executed search warrants on two of the parcels and seized approximately two kilograms of cocaine hidden in sealed coffee cans. Through surveillance, it was determined that Lopez and John Tavares, 31, of Weymouth, were receiving the majority of the parcels. It was also determined that Lopez and Tavares had been flying regularly from Massachusetts to Puerto Rico for trips lasting only 30 to 72 hours, and that the parcels suspected of containing cocaine were then typically sent to Massachusetts within one to three days after their return.
Multiple search warrants were executed on Aug. 18, 2018, including at three different residences in Weymouth, North Dartmouth and Boston. During those searches, more than three kilograms of cocaine, in excess of $100,000 in U.S. currency, two firearms and various drug paraphernalia was seized.
Tavares has pleaded not guilty and set to stand trial on Oct. 28, 2019. The details contained in the charging documents with respect to Tavares are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Andrew E. Lelling; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service in Boston; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Norfolk County District Attorney Michael W. Morrissey; Bristol County District Attorney Thomas M. Quinn, III; and Bristol County Sheriff Thomas M. Hodgson made the announcement today. Police Departments in Quincy, Weymouth, Braintree, North Dartmouth and Boston also assisted with the investigation. Assistant U.S. Attorneys James E. Arnold and Nadine Pellegrini of Lelling’s Narcotics and Money Laundering Unit are prosecuting the case.
California Entrepreneur Sentenced in College Admissions CaseRead the Press Release
BOSTON – A California man became the eighth parent to be sentenced today in connection with the college admissions case.
Peter Jan Sartorio, 53, of Menlo Park, Calif., was sentenced by U.S. District Court Judge Indira Talwani to one year of probation, ordered to complete 250 hours of community service and to pay a fine of $9,500. In May 2019, Sartorio pleaded guilty to one count of conspiracy to commit mail fraud and honest services mail fraud.
The government recommended a sentence of one month in prison, one year of supervised release and a fine of $9,500.
Beginning in the spring of 2017, Sartorio conspired with William “Rick” Singer and others to have his daughter’s ACT exam corrected, thereby fraudulently inflating the score. As part of the scheme, Sartorio took steps to secure extended time for his daughter to take the ACT, which allowed her to take the exam at a test center in West Hollywood that Singer “controlled” through the center’s corrupt administrator, Igor Dvorskiy. After Sartorio’s daughter completed the exam on June 10, 2017, without using the extra time she had been allotted, co-conspirator Mark Riddell corrected her answers. As a result of the cheating scheme, Sartorio’s daughter received a score of 27 out of 36 on the exam, which placed her in the 86th percentile. Sartorio paid Singer $15,000 in cash, structuring the cash withdrawals in three smaller increments over several days to avoid bank reporting requirements.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit are prosecuting the case.
Framingham Man Charged with Producing False Identification DocumentsRead the Press Release
BOSTON – A Framingham man was indicted today in federal court in Boston with producing a false identification document, aiding and abetting and Social Security card fraud.
Cristiano Ribeiro De Moura, 32, was indicted on one count of producing an identification document, authentication feature, or false identification document; aiding and abetting; and one count of Social Security card fraud.
According to the charging documents, Ribeiro De Moura sold four counterfeit Lawful Permanent Resident cards and four counterfeit Social Security cards in July and August 2019. Ribeiro De Moura charged $350 for a set of fake documents, which included one Lawful Permanent Resident card and one Social Security card. The buyers provided their name and date of birth, and Ribeiro De Moura provided the Social Security number.
The charge of producing a false identification document provides for a sentence of up to 15 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 Social Security card fraud 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; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Boston Field Office; and Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Dominican National Sentenced for Identity TheftRead the Press Release
BOSTON – A Dominican national was sentenced today in federal court in Boston for identity theft.
Maissel Avalo-Mejia, 30, a Dominican national residing in Foxboro, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to 27 months in prison. He will face deportation proceedings upon completion of his sentence. In May 2019, Avalo-Mejia pleaded guilty to one count of misuse of a Social Security number and one count of aggravated identity theft.
Avalo-Mejia used the name, date of birth, and Social Security number of a Puerto Rican man, who is presently a Specialist in the U.S. Army, to obtain several Massachusetts driver’s licenses, the most recent issued on April 10, 2014. Avalo-Mejia was identified, among other things, from a fingerprint match with a Dominican Republic identification document issued to him and bearing his photo.
United States Attorney Andrew E. Lelling; Jason Molina, Special Agent in Charge of Homeland Security Investigations in Boston; and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. Assistant U.S. Attorney Sandra S. Bower of Lelling’s Major Crimes Unit prosecuted the case.
Dominican National Indicted for Identity Theft and Making False Statements in an Immigration DocumentRead the Press Release
BOSTON – A Dominican national was indicted today for making false statements in an immigration document and aggravated identity theft.
Teodoro Tejada Rivas, 63, a Dominican national who resided in Lawrence until recently, was indicted on one count of making false statements in an immigration document and one count of aggravated identity theft. Tejada Rivas was arrested on Sept. 10, 2019, in Miami, Fla., and has been detained since.
It is alleged that since at least 2006, Tejada Rivas has been using the identity of a U.S. citizen from Puerto Rico. Tejada Rivas used the name, Social Security number and date of birth of the Puerto Rican man to apply for a U.S. passport in 2007, and to file an immigration form in 2016 in an attempt to bring his Dominican wife and children into the United States. The fraudulent immigration form was filed three years after the death of the U.S. citizen whose identity Tejada Rivas had stolen.
United States Attorney Andrew E. Lelling; William B. Gannon, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service, Boston Field Office; and John Gibbons, U.S. Marshal for the District of Massachusetts, made the announcement today. Assistant U.S. Attorney Elianna Nuzum of Lelling’s Major Crimes Unit is prosecuting the case.
Chelsea Man Sentenced for RICO Conspiracy Involving Attempted MurderRead the Press Release
BOSTON – A Chelsea man was sentenced today in federal court in Boston for RICO conspiracy involving attempted murder and drug trafficking.
Brandon Baez, aka “Big Baby,” was sentenced by U.S. District Court Judge Richard G. Stearns to 10 years in prison and five years of supervised release. In January 2019, Baez pleaded guilty to one count of conspiracy to conduct enterprise affairs through a pattern of racketeering activity and one count of conspiracy to distribute cocaine base and cocaine.
During an investigation into a network of street gangs that had created alliances to traffic weapons and drugs throughout Massachusetts, Baez was identified as a member of the East Side Money Gang (ESMG), a Chelsea-based street gang, which uses violence to further its criminal activities and enforce its internal rules. Specifically, ESMG uses violence to protect its members/associates, target rival gang members/associates and intimidate potential witnesses.
In intercepted calls on April 3, 2016, Baez informed Angel Mejia, a leader in the ESMG, that he had just shot two men in a black Cadillac at a gas station in Revere because he believed that they were members of a rival street gang. Baez told Mejia that he believed he had killed at least one of the intended victims. Two days before the shooting, Mejia and fellow ESMG member Josue Rodriguez had provided Baez with the .22 caliber revolver used in the shooting. Following the shooting, Baez asked Mejia for assistance getting a larger caliber handgun after learning that no one was killed during the Revere shooting. Baez was subsequently arrested in Chelsea by local law enforcement officers while armed with the .22 caliber revolver used in the Revere shooting.
In October 2017, Rodriguez was sentenced to over 10 years in prison and five years of supervised release. In June 2019, Mejia was sentenced to more than 15 years in prison and five years of supervised release. In September 2019, Jesus Perez, a leader in a rival Chelsea-based street gang (the Outlaws), was sentenced to 20 years in prison and four years of supervised release for multiple federal charges, including violent crime in aid of racketeering, drug trafficking and firearms charges.
Baez is one of 53 defendants indicted in June 2016 on federal firearms and drug charges following an investigation into a network of street gangs that created alliances to traffic weapons and drugs and to generate violence against rival gang members. According to court documents, the defendants, who are leaders, members, and associates of the 18th Street Gang, East Side Money Gang and the Boylston Street Gang, were responsible for fueling a gun and drug pipeline across a number of cities and towns in eastern Massachusetts. During the course of the investigation, over 70 firearms were seized.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; John Gibbons, U.S. Marshal for the District of Massachusetts; Maura Healey, Attorney General of Massachusetts; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Boston Police Commissioner William Gross; Chelsea Police Chief Brian Kyes; and Brockton Police Chief John Crowley made the announcement. The U.S. Attorney’s Office also acknowledges the assistance of the Suffolk and Middlesex County Sheriff Departments and the Malden, Revere and Everett Police Departments. Lelling’s Organized Crime and Gang Unit is prosecuting the case.
Boston Man Pleads Guilty to Firearms OffenseRead the Press Release
BOSTON – A Boston man pleaded guilty in federal court in Boston today to the unlicensed transportation of a firearm.
Kenny Romero, 24, pleaded guilty to one count of unlicensed transportation of firearms before U.S. Senior District Court Judge George A. O’Toole Jr., who scheduled sentencing for Jan. 14, 2020. Romero has been detained since his arrest on July 9, 2019.
Law enforcement officers discovered Romero to be in possession of a firearm during a vehicle stop in December 2016. A subsequent investigation revealed that the firearm, which had been used in a shooting earlier that month, was purchased in Virginia in November 2016. Agents learned that another individual purchased the firearm at Romero’s direction, and Romero subsequently transported the firearm from Virginia back to Massachusetts, where he resides.
The charge of unlicensed transportation of firearms provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Office, made the announcement today. Valuable assistance was provided by the U.S. Attorney’s Office for the Eastern District of Virginia, the ATF - Falls Church Field Office and the Boston Police Department. Assistant U.S. Attorney Anne Paruti of Lelling’s Major Crimes Unit is prosecuting the case.
Beverly Man Sentenced for Sending White Powder and Purported AIDS-Infected Blood to Online Dating WebsiteRead the Press Release
BOSTON – A Beverly man was sentenced to probation today for sending a series of threatening letters to the CEO of an online dating website; one letter contained a white powder described as Anthrax and another contained a red substance described as blood infected with the AIDS virus.
Liam MacLeod, 47, was sentenced by U.S. District Court Judge Patti B. Saris to two years of probation, with the first two months to be served in a halfway house and eight months in a sober house on home confinement. The government recommended five months in prison, followed by two years of supervised release which would include five months of community or home confinement.
In June 2019, MacLeod pleaded guilty to two counts of mailing threatening communications and two counts of conveying false information concerning purported biological weapons.
Between September and December 2017, MacLeod mailed nine letters containing threatening communications and/or suspicious substances to the CEO of the online dating website OkCupid.com in Dallas, Texas. On or about Sept. 12, 2017, MacLeod mailed an envelope addressed to the CEO that contained a suspicious white powder, along with a handwritten letter that stated:
Greetings from Beverly
Ban me will ya
Welcome to the wonderful world of ANTHRAX
Expect a package within the next couple of days
It won’t be ticking but it should be interesting!
MacLeod mailed another envelope to the CEO in Dallas, on or about Sept. 14, 2017, containing a typewritten letter with the following message, amongst other text:
How’d you like what I sent you? Aww, go take a powder. Oh, the things I have in store for you! I can go on like this for years. How long can you last?
Incidentally, my father was an angel: That’s Hell’s
Angel to you. You see, we have some pull. Take for
example your vehicles. We now know who owns
what, and where each of you parks his.
Hmm, think of the possibilities!
MacLeod sent a third letter to the CEO in Dallas on or about Sept. 20, 2017. The envelope and its contents, a blank piece of paper, were both stained with a red substance consistent with blood. The next day, MacLeod mailed another letter to the CEO which identified the red substance on the previous letter as blood infected with the AIDS virus.
Between Oct. 4, 2017 and Dec. 21, 2017, MacLeod mailed five additional envelopes addressed to the CEO in Dallas, each containing threatening communications and/or suspicious substances. Each of these mailings generated a response by federal law enforcement in order to rule out the presence of active biological or chemical agents. Laboratory testing later confirmed that the substances contained in the envelopes, including the white powdery substance, did not contain hazardous materials.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, made the announcement today. The investigation was conducted by the FBI Boston’s Joint Terrorism Task Force, with assistance from the Beverly Police Department. OkCupid and its parent company were fully cooperative with the investigation. Assistant U.S. Attorney Jason A. Casey of Lelling’s National Security Unit prosecuted the case.
Natick Man Pleads Guilty to Child PornographyRead the Press Release
BOSTON – A Natick man pleaded guilty yesterday in federal court in Boston to possessing child pornography.
Joshua Bemis, 28, pleaded guilty to one count of possession of child pornography and one count of receipt of child pornography. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Jan. 8, 2020. Bemis was arrested and charged in November 2018.
Federal authorities received information from law enforcement in the United Kingdom about an individual whose IP address was traced to Bemis’ Natick residence, who had posted child pornography on a photo sharing website. Law enforcement subsequently executed a search warrant where they seized a laptop computer and separate hard drive, both of which contained numerous videos of children, including some that depict the rape of children as young as seven-years-old.
Bemis faces a mandatory minimum sentence of five years and up to 40 years in prison, a minimum of five years and up to a lifetime of supervised release and a $250,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Natick Police Chief James G. Hicks made the announcement today. Assistant U.S. Attorney David G. Tobin is prosecuting the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Methuen Man Sentenced for Possession of a Firearm and AmmunitionRead the Press Release
BOSTON – A Methuen man has was sentenced today in federal court in Boston for illegal possession of a firearm and ammunition.
Michael O’Neil, 38, was sentenced by U.S. District Court Judge Douglas P. Woodlock to one year and a day in prison and three years of supervised release. In June 2019, O’Neil pleaded guilty to one count of being a felon in possession of a firearm and ammunition after being arrested on Dec. 1, 2018 in Andover, when police seized a loaded .380 caliber pistol from him. O’Neil is prohibited from possessing a firearm due to a prior conviction of a crime punishable by more than one year in prison.
United States Attorney Andrew E. Lelling; Essex County District Attorney Jonathan W. Blodgett; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police made the announcement today. Assistant U.S. Attorney Evan Panich of Lelling’s Office is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Lawrence Man Sentenced to Prison for Conspiracy to Distribute FentanylRead the Press Release
BOSTON – A Lawrence man was sentenced today in federal court in Worcester in connection with a 2017 fentanyl trafficking conspiracy.
Carlos Rodriguez, 43, was sentenced by U.S. District Court Judge Timothy S. Hillman to 27 months in prison and two years of supervised release. Rodriguez previously pleaded guilty to conspiring to distribute and possession with the intent to distribute in excess of 40 grams of fentanyl.
Co-defendants Ernesto Rodriguez, Jorge Burgos, and Joshua Sanchez were sentenced to 20 months, 60 months, and 34 months in prison, respectively.
As a result of various wiretaps capturing the defendants’ discussions of sales and purchases of fentanyl, in November and December 2017, law enforcement conducted surveillance of Burgos purchasing fentanyl for resale from Carlos Rodriguez, Ernesto Rodriguez, and others. In addition, on Dec. 20, 2017, law enforcement stopped Sanchez after wire intercepts suggested he would be distributing 50 grams of fentanyl to co-defendant Jorge Burgos. Agents conducted a stop of the vehicle Carlos Rodriguez was driving and recovered 50 grams of fentanyl. Further investigation led to the recovery of 40 additional grams of fentanyl from Ernesto Rodriguez. Intercepted communications captured Carlos Rodriguez discussing with Burgos how agents had stopped him on the way to Burgos’ residence and captured him discussing with another individual where to hide a firearm from authorities.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Joseph W. Cronin, Inspector in Charge of the United States Postal Inspection Service; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Worcester Police Chief Steven M. Sargent; and Leicester Interim Police Chief Kenneth Antanavica made the announcement. Assistant U.S. Attorney Mark Grady of Lelling’s Criminal Division prosecuted the case.