District of Massachusetts
Press releases recorded for this federal judicial district.
Test Taker in College Admissions Case Pleads GuiltyRead the Press Release
BOSTON – The test taker in the college admissions case pleaded guilty today in federal court in Boston in connection with accepting payments to cheat on the ACT and SAT exams, and other tests.
Mark Riddell, 36, of Palmetto, Fla., pleaded guilty to one count of conspiracy to commit mail fraud and honest services mail fraud and one count of conspiracy to commit money laundering. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for July 18, 2019 at 3:00 p.m.
From 2011 through February 2019, Riddell conspired with William “Rick” Singer and others to cheat on college entrance exams in the United States and Canada. As part of the scheme, Riddell secretly took college entrance exams in place of students, or corrected the students’ answers after they had taken the exam.
In many cases, Singer facilitated the cheating by counseling his clients to seek extended time on the exams, including by having their children purport to have learning disabilities in order to obtain the required medical documentation. Once the extended time was granted, Singer instructed the clients to change the location of the exams to one of two test centers: a public high school in Houston, Texas, or a private college preparatory school in West Hollywood, Calif. Singer had established relationships at those locations with test administrators Niki Williams and Igor Dvorskiy, who allegedly accepted bribes of as much as $10,000 per test in order to facilitate the cheating scheme. Specifically, Williams and Dvorskiy allowed Riddell to take the exams in place of the students, to give the students the correct answers during the exams, or to correct the students’ answers after they completed the exams. Singer typically paid Riddell $10,000 for each test. Singer’s clients paid him between $15,000 and $75,000 per test, with the payments structured as purported donations to the KWF charity controlled by Singer. In many instances, the students taking the exams were unaware that their parents had arranged for the cheating.
On March 22, 2019, Singer pleaded guilty to racketeering conspiracy, money laundering conspiracy, conspiracy to defraud the United States and obstruction of justice. He is scheduled to be sentenced on June 19, 2019, at 2:00 p.m. in Boston.
Updated information about this case can be found at https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of conspiracy to commit mail fraud and honest services mail fraud provides for a sentence of no greater than 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 sentence of up to 20 years in prison, up to three years of supervised release, and a fine of not more than $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 case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lawrence Man Charged with Fentanyl TraffickingRead the Press Release
BOSTON – A Lawrence man was charged Wednesday, April 10, 2019, in federal court in Boston in connection with drug trafficking activities involving fentanyl.
Robinson Guzman, 38, was indicted on three counts of distribution of, and possession with intent to distribute, fentanyl; one count of distribution of, and possession with intent to distribute, more than 40 grams of fentanyl; and one count of possession with intent to distribute more than 40 grams of fentanyl. Guzman was previously charged by criminal complaint and arrested on March 19, 2019. He has been in custody since.
According to court documents, between November 2018 and March 2019, prior to his arrest, Guzman engaged in 10 separate drug sales of fentanyl powder and pills, containing either Oxycodone or fentanyl, to an undercover law enforcement agent.
The charges of distribution of, and possession with intent to distribute, fentanyl each provide for a sentence of no greater than 20 years in prison, a minimum of three years of supervised release and a fine of up to $1 million; the charges involving more than 40 grams of fentanyl carry a mandatory minimum sentence of five years and up to 40 years in prison, a minimum of four years of supervised release, and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. Valuable assistance was provided by the Methuen, Lawrence, and Melrose 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 defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Dominican National Pleads Guilty to Misusing Social Security Number and Stealing Government BenefitsRead the Press Release
BOSTON – A Dominican national pleaded guilty today in federal court in Boston to false representation of a Social Security number and theft of public money.
Noemi Mejia, 51, pleaded guilty to false representation of a Social Security number and theft of public money. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for July 16, 2019. Mejia was charged in May 2018 and released on conditions.
In August 2001, Mejia applied to participate in the Department of Housing and Urban Development’s Section 8 Program, which is administered by the Boston Housing Authority, using the name, Social Security number, and date of birth of a U.S. citizen from Puerto Rico. By falsely claiming that she was a U.S. citizen, Mejia was deemed eligible to receive Section 8 benefits. Mejia also applied for MassHealth benefits using the identity of a Puerto Rican citizen, which rendered her eligible for more expansive healthcare coverage. Mejia also used the stolen identity to obtain a Massachusetts driver’s license and to work.
While receiving benefits under the stolen identity, Mejia applied for and received additional Section 8 housing vouchers and Food Stamps using her true name. She received these benefits on behalf of her daughter, who is a United States citizen. The amount of the benefits received under these programs is determined, in part, by household income. Because Mejia did not report the income she earned using the stolen identity, she fraudulently received Section 8 benefits and Food Stamps in her true name.
In total, Mejia stole more than $164,000 in federally-funded housing assistance benefits, MassHealth benefits, and Food Stamps.
The charge of false representation of a Social Security number provides for a sentence of no greater than 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 theft of public funds provides for a sentence of no greater than 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; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of the Inspector General, Northeast Regional Office; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Suzanne M. Bump, State Auditor of the Commonwealth of Massachusetts, made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit is prosecuting the case.
Salvadoran National Pleads Guilty to Failing to Register as a Sex Offender and Unlawful ReentryRead the Press Release
BOSTON – A previously deported Salvadoran national pleaded guilty in federal court in Boston yesterday to failure to register as a sex offender and unlawful reentry of a deported alien.
Oscar Alfaro, 47, who is currently in state custody in connection with sexual assault charges stemming from a 2016 incident in Newbury, pleaded guilty to one count of failure to register as a sex offender and one count of unlawful reentry of a deported alien. U.S. District Court Judge Richard G. Stearns scheduled sentencing for July 31, 2019.
In 2008, Alfaro was convicted in Virginia state court of taking indecent liberties with a child. As a result, Alfaro is required to register as a sex offender in any jurisdiction where he lives or works. After serving a sentence for his 2008 conviction, Alfaro was deported.
At some point following his deportation, Alfaro illegally reentered the United States. In March 2016, it was reported that Alfaro had committed an indecent assault and battery, which qualifies as a sex offense under Massachusetts state law. After the assault was reported, Alfaro left Massachusetts. The U.S. Marshals Service located and apprehended Alfaro in Virginia in November 2017 and returned him to Massachusetts to face state sexual assault charges.
Failing to register as a sex offender provides for a sentence of no greater than 10 years in prison and a minimum of five years and up to a lifetime supervised release. Unlawful reentry provides for a sentence of no greater than 20 years in prison and three years of supervised release. Both offenses carry a fine of up to $250,000. Alfaro 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 John Gibbons, United States Marshal for the District of Massachusetts, made the announcement today. 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/.
MCI-Cedar Junction Inmate Pleads Guilty to Drug ChargesRead the Press Release
BOSTON – An MCI-Cedar Junction inmate pleaded guilty on Monday, April 8, 2019, in federal court in Boston in connection with smuggling drugs into the facility.
William Guillemette, 39, an inmate at Massachusetts Correctional Institute – Cedar Junction (MCI-CJ) in South Walpole, pleaded guilty to one count of conspiracy to distribute Suboxone and Alprazolam. U.S. District Court Judge Indira Talwani scheduled sentencing for July 16, 2019.
In September 2018, William Guillemette was indicted along with his mother, Margaret Guillemette, 58; his wife, Lisa Guillemette, 42; and Chad Connors, 42, also an MCI-CJ inmate. Margaret Guillemette pleaded guilty on March 1, 2019, and will be sentenced on May 30, 2019.
According to the charging documents, Chad Connors and William Guillemette were inmates housed at MCI-CJ’s Departmental Disciplinary Unit (DDU). It is alleged that Connors was involved in a romantic relationship with a nurse assigned to the DDU. At Connors’ request, the nurse agreed to smuggle contraband, including controlled substances, into MCI-CJ. In order to do this, the nurse opened two P.O. Boxes through a third party. Connors sent letters and money to the nurse at these P.O. Boxes and, at William Guillemette’s direction, Lisa and Margaret Guillemette, obtained and sent Suboxone and Alprazolam to the P.O. Boxes. The nurse subsequently smuggled the drugs into the DDU and delivered them to Connors. It is alleged that Connors and William Guillemette distributed the drugs to other inmates, who sent checks to Lisa and Margaret Guillemette as payment for the drugs. Suboxone and Alprazolam are Schedule III and Schedule IV controlled substances, respectively.
The nurse was previously charged and pleaded guilty to one count of conspiracy to distribute Suboxone and Alprazolam.
The charge of conspiracy to distribute Suboxone and Alprazolam provides for a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $500,000 and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division, made the announcement today.
The details contained in the charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Brockton Man Indicted for Federal Drug and Firearm OffensesRead the Press Release
BOSTON – A Brockton man was charged today in federal court in Boston on firearm and drug offenses.
Nelsy Dasilva, 23, was indicted on one count of being a felon in possession of a firearm and ammunition and one count of distribution of cocaine and fentanyl. Dasilva was arrested on Nov. 14, 2018, and has been in state custody since. He will be arraigned in federal court later this week.
On Nov. 14, 2018, after an investigation into drug distribution in and around Brockton, law enforcement officers executed a search warrant at Dasilva’s apartment. Dasilva was found in possession of approximately 20 grams of cocaine, two grams of fentanyl, a .380 caliber Jimenez Arms Inc., T-380 semi-automatic handgun, and 10 rounds of .380 caliber ammunition. Dasilva has a prior felony conviction for assault with the intent to murder, as well as convictions for possession with the intent to distribute a controlled substance, criminal possession of a loaded firearm, and assault with a dangerous weapon.
The charge of being a felon in possession of a firearm and ammunition provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000. The charge of distribution of a controlled substance provides a sentence of no greater than 30 years in prison, a minimum of six years of supervised release, and a fine of up to $2 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Brockton Police Chief John Crowley made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Lelling’s Organized Crime and Gang Unit is prosecuting the case.
This prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Massachusetts and Louisiana Men Charged in Business Email Compromise SchemeRead the Press Release
BOSTON – A Medfield man and Louisiana man were charged today in federal court in Boston in connection with an international business email compromise scheme that defrauded companies of almost $900,000.
Paul M. Iwuanyanwu, 39, of Medfield, and Larry Brown Jr., 37, of Lafayette, La., were indicted for wire fraud and conspiracy to commit wire fraud. Iwuanyanwu was also charged with one count of money laundering.
Iwuanyanwu and Brown allegedly worked with others to breach the email systems of companies and install unauthorized computer programs that diverted company emails to accounts controlled by Iwuanyanwu and Brown’s co-conspirators. As a result, all emails sent by or to the companies were first routed through the email accounts where co-conspirators could view the messages. Co-conspirators also had the ability to send and respond to emails as if they were representatives of the companies.
It is alleged that Iwuanyanwu, Brown, and others, used this unauthorized access to companies’ email accounts to cause the companies to redirect almost $900,000 in payments intended for legitimate business operations to bank accounts controlled by Iwuanyanwu and Brown.
The charge of wire fraud and conspiracy to commit wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss. The charge of money laundering charge provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000, or twice the value of the criminally derived property. 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 Peter C. Fitzhugh, Special Agent in Charge of the Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorneys Sara Miron Bloom, of Lelling’s Securities & Financial Fraud Unit, and Carol Head, of Lelling’s Asset Recovery Unit, are prosecuting the case.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lawrence Man Pleads Guilty to Fentanyl ConspiracyRead the Press Release
BOSTON – A Lawrence man pleaded guilty yesterday in federal court in Springfield in connection with his role in a large-scale drug conspiracy that trafficked dozens of kilos of heroin and fentanyl into Springfield from Bronx, N.Y., and the Dominican Republic.
Francisco Sandoval, 65, pleaded guilty to one count of conspiring to distribute and possess with intent to distribute fentanyl. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for July 9, 2019.
On July 13, 2016, Sandoval received two kilograms of fentanyl from the alleged leader of a Springfield drug trafficking organization, Alberto Marte. Marte had direct contact with heroin suppliers in the Dominican Republic, and on a monthly basis, members of his organization transported between eight and 20 kilograms of heroin, worth a street value of approximately $1.6 million and $4 million, respectively to the Springfield area.
Marte was arrested and charged in September 2016. He is currently in custody awaiting trial.
The charge of conspiracy to distribute fentanyl provides for a sentence of no greater than 20 years in prison, a minimum of 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; Hampden County District Attorney Anthony D. Gulluni; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry Gilpin, Superintendent of the Massachusetts State Police; Springfield Police Commissioner Cheryl Clapprood; Chicopee Police Chief William Jebb; Holyoke Police Chief Manny Febo; and West Springfield Police Chief Ronald Campurciani made the announcement today. Assistant U.S. Attorney Neil Desroches of Lelling’s Springfield Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Brazilian National Sentenced for Illegal ReentryRead the Press Release
BOSTON - A Brazilian national pleaded guilty and was sentenced yesterday in federal court in Boston for illegally reentering the United States after being deported.
Adilson DeAndrade Lima, 49, a Brazilian national formerly residing in Brighton, pleaded guilty to one count of illegal reentry of a deported alien before U.S. District Court Judge Richard G. Stearns, who sentenced Lima to one year in prison. Lima will be subject to deportation proceedings upon completion of his sentence.
Lima was previously deported in 2001 and in 2017. After each deportation, he illegally reentered the United States without the appropriate permission.
The charging statute provides for a sentence of no greater than 20 years in prison, up to three years of supervised release, and a $250,000 fine. Sentences are imposed by a federal district court judge based on the United States Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit prosecuted the case.
Boston Man Sentenced for Distributing Cocaine and FentanylRead the Press Release
BOSTON – A Boston man was sentenced yesterday in federal court in Boston for distributing cocaine and fentanyl.
James L. Hardy, 53, was sentenced by U.S. District Court Judge Richard G. Stearns to four years in prison and three years of supervised release. Based on Hardy’s criminal history, the Government recommended a sentence of 151 months in prison. On Jan. 3, 2019, Hardy pleaded guilty to one count of distribution of cocaine and fentanyl. Hardy was arrested on Aug. 23, 2018, and has been in custody since.
“Fentanyl is killing thousands of Americans a year,” said U.S. Attorney Andrew Lelling, “and by now every drug dealer knows it. The government asked for a sentence of 151 months for this defendant because he has 15 prior convictions, three prior drug dealing convictions, and two of those convictions were federal. This is a defendant who has previously served a 15 year prison term for drug trafficking, and yet remained undeterred. We disagree with the judge’s sentence of 48 months.”
On May 21, 2018, Hardy sold an “8-Ball” (3.5 grams) of cocaine base, commonly referred to as “crack” cocaine, and five grams of fentanyl to an individual working with law enforcement. The sale occurred in a car driven by Hardy in the parking lot of a supermarket in Roslindale. On July 1, 2018, Hardy again sold the same individual working with law enforcement crack and fentanyl. For each transaction, Hardy received $450 for the cocaine and fentanyl.
Hardy has a lengthy criminal record dating back to 1979, including previous federal convictions. In 1996, Hardy was sentenced in federal court to 188 months in prison after being convicted of drug and firearm offenses. In 2017, Hardy was sentenced to “time served” (87 days) and 10 years of supervised release after being convicted of conspiracy to distribute cocaine and 100 grams or more of heroin. At the time of the offense for which Hardy was sentenced yesterday, he was still on supervised release stemming from his 2017 conviction.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Kerry Gilpin, Superintendent of the Massachusetts State Police; and Boston Police Commissioner William G. Gross made the announcement. Valuable assistance was provided by the Suffolk County Sheriff’s Department. Assistant U.S. Attorney David G. Tobin of Lelling’s Major Crimes Unit prosecuted the case.
Boston Man Sentenced for Bank RobberyRead the Press Release
BOSTON – A Boston man was sentenced yesterday in federal court in Boston for bank robbery.
Phillip Leo Campanirio, 53, was sentenced by US District Court Judge George A. O’Toole to 70 months in prison, three years of supervised release, and ordered to pay restitution in the amount of $4,680 to Citizens Bank. On Jan. 9, 2019, Campanirio pleaded guilty to one count of bank robbery. Campanirio has been in federal custody since his arrest on Aug. 31, 2018.
On April 28, 2018, an individual, later determined to be Campanirio, entered a branch of Citizens Bank in Allston, approached the teller and demanded cash. Campanirio stated words to the effect: “$20, $50, and $100 dollar bills. I don’t want any [expletive] dye packs.” The teller handed Campanirio money from her drawer, and then, because Campanirio told her, “I want more,” the teller gave Campanirio additional cash from her drawer. Campanirio then exited the bank. A post-robbery audit determined that the robber had stolen $4,680.
The teller described Campanirio as an approximately 50-year-old white male, who walked with a limp. The teller stated that the robber was wearing a red and blue baseball hat, white reflective sunglasses, a white hooded sweatshirt, brown pants and white sneakers. Bank surveillance cameras showed images of Campanirio consistent with the description provided by the bank’s teller.
Information and pictures of Campanirio were disseminated on various media sites. A probation officer, who is currently supervising Campanirio while he is on supervised release stemming from a prior bank robbery conviction, saw the publicly released information and recognized the suspect as Campanirio.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.
16 Parents Involved in College Admissions Scandal Indicted by Federal Grand Jury in BostonRead the Press Release
BOSTON – Sixteen parents involved in the college admissions scandal were charged today in Boston in a second superseding indictment with conspiring to commit fraud and money laundering in connection with a scheme to use bribery to cheat on college entrance exams and to facilitate their children’s admission to selective colleges and universities as purported athletic recruits.
The defendants, all of whom were arrested last month on a criminal complaint, are charged with conspiring with William “Rick” Singer, 58, of Newport Beach, Calif., and others, to bribe SAT and ACT exam administrators to allow a test taker to secretly take college entrance exams in place of students, or to correct the students’ answers after they had taken the exam, and with bribing university athletic coaches and administrators to facilitate the admission of students to elite universities as purported athletic recruits.
The second superseding indictment also charges the defendants 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.
The following defendants were charged in the second superseding indictment 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:
- Gamal Abdelaziz, 62, aka “Gamal Aziz,” of Las Vegas, Nev.;
- Diane Blake, 55, of Ross, Calif.;
- Todd Blake, 53, of Ross, Calif.;
- I-Hsin “Joey” Chen, 64, of Newport Beach, Calif.;
- Mossimo Giannulli, 55, of Los Angeles, Calif.;
- Elizabeth Henriquez, 56, of Atherton, Calif.;
- Manuel Henriquez, 56, of Atherton, Calif.;
- Douglas Hodge, 61, of Laguna Beach, Calif.;
- Michelle Janavs, 48, of Newport Coast, Calif.;
- Elisabeth Kimmel, 54, of Las Vegas, Nev.;
- Lori Loughlin, 54, of Los Angeles, Calif.;
- William McGlashan, Jr., 55, of Mill Valley, Calif.;
- Marci Palatella, 63, of Hillsborough, Calif.;
- John Wilson, 59, of Lynnfield, Mass.;
- Homayoun Zadeh, 57, of Calabasas, Calif.; and
- Robert Zangrillo, 52, of Miami, Fla.
Three parents—David Sidoo, 59, of Vancouver, Canada; Gregory Colburn, 62, of Palo Alto, Calif.; and Amy Colburn, 50, of Palo Alto, Calif.—were previously indicted in connection with the scheme.
An arraignment date has 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 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 case.
Previously Deported Dominican National Sentenced for Role in Fentanyl ConspiracyRead the Press Release
BOSTON – A Dominican national was sentenced on Friday, April 5, 2019, in federal court in Boston for his role in a fentanyl conspiracy.
Wareng Jhonny Villar-Ortiz, 31, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 73 months in prison and three years of supervised release. Villar-Ortiz will be subject to deportation upon completion of his sentence. In January 2019, Villar Ortiz pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl, one count of distribution of and possession with intent to distribute 400 grams or more of fentanyl, one count of possession with intent to distribute 400 grams or more of fentanyl, and one count of illegal reentry of a deported alien.
A federal drug investigation determined that Villar-Ortiz was a mid-level drug distributor and that Saul Martinez Escarfuller had delivered a kilogram of drugs to Villar-Ortiz in late January 2018. In February 2018, Villar-Ortiz expressed dissatisfaction with the quality of the drugs and made arrangements to return them to Martinez Escarfuller. On Feb. 14, 2018, agents observed Martinez Escarfuller exit Villar-Ortiz’s apartment building and drive off. A short while later, Martinez Escarfuller stopped his car and Joel Cesar Baez exited the vehicle and entered another car. Agents then stopped the second vehicle and asked Baez and the driver to exit. A large plastic bag, which was subsequently determined to contain 789.9 grams of fentanyl, was recovered from inside Baez’s coat.
Angel Milciades Santana Polanco was typically a distributor for Villar-Ortiz and he tested the quality of Villar-Ortiz’ drugs. Between Feb. 8 and Feb. 12, 2018, Santana Polanco offered to supply Villar-Ortiz with a kilogram of drugs. Before deciding whether to purchase the drugs, Villar-Ortiz wanted to test their quality. On Feb. 15, 2018, Villar-Ortiz expressed that the drugs were unacceptable and made arrangements for Santana Polanco to take them back. During a search of Villar-Ortriz’s residence, 978.6 grams of fentanyl from a hiding spot in the bathroom wall was seized.
Villar-Ortiz was previously deported from the United States in 2016.
Santana Polanco was sentenced on Feb. 1, 2019, to five years in prison and three years of supervised release. Cesar Baez, who was a runner for a fentanyl supplier, was sentenced on Jan. 29, 2019, to 30 months in prison and three years of supervised release. Martinez Escarfuller is scheduled to be sentenced on May 30, 2019.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division, made the announcement. Valuable assistance was provided by the Boston, Ipswich, and Arlington Police Departments. Assistant U.S. Attorney James E. Arnold of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
MS-13 Member Pleads Guilty to Racketeering ConspiracyRead the Press Release
BOSTON – An MS-13 member pleaded guilty today in federal court in Boston to racketeering conspiracy.
Nelson Cruz Rodriguez Cartagena, a/k/a “Inquieto,” 24, a Salvadoran national illegally residing in Everett, pleaded guilty to one count of conspiracy to conduct enterprise affairs through a pattern of racketeering activity, commonly referred to as RICO conspiracy. U.S. District Court Judge William G. Young scheduled sentencing for July 9, 2019. Rodriguez Cartagena was arrested in Everett and charged in June 2018 after law enforcement determined that he had reentered the United States.
According to court documents, MS-13 is a violent, transnational criminal organization whose branches, or “cliques,” operate throughout the United States, including in Massachusetts. MS-13 members are required to commit acts of violence to maintain membership and discipline within the group. It is alleged that most of the MS-13 cliques in Massachusetts, including the Everett Locos Salvatrucha (ELS) clique, belonged to MS-13’s East Coast Program, and that these cliques worked both independently and cooperatively to engage in criminal activity and to assist one another in avoiding detection by law enforcement.
Rodriguez Cartagena is a full member, or “homeboy,” in MS-13’s ELS clique. On recorded prison calls with a detained ELS clique leader, Rodriguez Cartagena discussed buying guns for the Everett clique; maintaining and supervising the clique’s marijuana trafficking business; the need to collect dues from clique members; the need to send money to MS-13 leaders in El Salvador due on the 13th of each month; and reporting on the clique’s day-to-day racketeering activities. When the clique leader began to suspect that a member of the ELS clique had cooperated with law enforcement leading to his arrest, he enlisted Rodriguez Cartagena’s help to ferret out the informant. Rodriguez Cartagena provided the true names of two young Everett clique members, and the leader concluded that one of them, Jose Aguilar Villanueva, a/k/a “Fantasma,” was the clique member responsible for his arrest. Once ELS (incorrectly) identified Villanueva as an informant, members of the Everett clique, including Rodriguez Cartagena, met at the clique’s “destroyer house,” – a residence where clique members stored knives, machetes, marijuana, and money – to plan the murder of Villanueva. Ultimately, on the night of July 5, 2015, two young ELS probationary members, or “chequeos,” lured Villanueva into a park in Lawrence and stabbed him to death. Villanueva was 16 years old.
The charge of RICO conspiracy provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. Rodriguez Cartagena will face deportation proceedings upon completion of any sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Commissioner Carol A. Mici of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Rachael Rollins; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Gross; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief James Guido; and Somerville Police Chief David Fallon made the announcement.
14 Defendants in College Admissions Scandal to Plead GuiltyRead the Press Release
BOSTON – Thirteen parents charged in the college admissions scandal will plead guilty to using bribery and other forms of fraud to facilitate their children’s admission to selective colleges and universities. One coach also agreed to plead guilty.
The defendants were arrested last month and charged with conspiring with William “Rick” Singer, 58, of Newport Beach, Calif., and others, to use bribery and other forms of fraud to secure the admission of students to colleges and universities. The conspiracy involved bribing SAT and ACT exam administrators to allow a test taker to secretly take college entrance exams in place of students, or to correct the students’ answers after they had taken the exam, and bribing university athletic coaches and administrators to facilitate the admission of students to elite universities as purported athletic recruits.
The following defendants were charged in an Information with one count of conspiracy to commit mail fraud and honest services mail fraud and have agreed to plead guilty pursuant to plea agreements:
- Gregory Abbott, 68, of New York, N.Y., together with his wife, Marcia, agreed to pay Singer $125,000 to participate in the college entrance exam cheating scheme for their daughter;
- Marcia Abbott, 59, of New York, N.Y.;
- Jane Buckingham, 50, of Beverly Hills, Calif., agreed to pay Singer $50,000 to participate in the college entrance exam cheating scheme for her son;
- Gordon Caplan, 52, of Greenwich, Conn., agreed to pay Singer $75,000 to participate in the college entrance exam cheating scheme for his daughter;
- Robert Flaxman, 62, of Laguna Beach, Calif., agreed to pay Singer $75,000 to participate in the college entrance exam cheating scheme for his daughter;
- Felicity Huffman, 56, of Los Angeles, Calif., agreed to pay Singer at least $15,000 to participate in the college entrance exam cheating scheme for her oldest daughter;
- Agustin Huneeus Jr., 53, of San Francisco, Calif., agreed to pay Singer $300,000 to participate in both the college entrance exam cheating scheme and the college recruitment scheme for his daughter;
- Marjorie Klapper, 50, of Menlo Park, Calif., agreed to pay Singer $15,000 to participate in the college entrance exam cheating scheme for her son;
- Peter Jan Sartorio, 53, of Menlo Park, Calif., agreed to pay Singer $15,000 to participate in the college entrance exam cheating scheme for his daughter;
- Stephen Semprevivo, 53, of Los Angeles, Calif., agreed to pay Singer $400,000 to participate in the college recruitment scheme for his son; and
- Devin Sloane, 53, of Los Angeles, Calif., agreed to pay Singer $250,000 to participate in the college recruitment scheme for his son.
In addition, Bruce Isackson, 61, and Davina Isackson, 55, of Hillsborough, Calif., were charged in a separate Information and have both agreed to plead guilty to one count of conspiracy to commit mail fraud and honest services mail fraud. Bruce Isackson will also plead guilty to one count of money laundering conspiracy and one count of conspiracy to defraud the IRS. The Isacksons agreed to pay Singer an amount, ultimately totaling $600,000, to participate in the college entrance exam cheating scheme for their younger daughter and the college recruitment scheme for both of their daughters. The Isacksons also underpaid their federal income taxes by deducting the bribe payments as purported charitable contributions. The Isacksons are cooperating with the government’s investigation.
Michael Center, 54, of Austin, Texas, the former head coach of men’s tennis at the University of Texas at Austin, was charged in a third Information and has agreed to plead guilty to one count of conspiracy to commit mail fraud and honest services mail fraud. In 2015, Center personally accepted $60,000 in cash from Singer, as well as $40,000 directed to the University of Texas tennis program, in exchange for designating the child of one of Singer’s clients as a tennis recruit, thereby facilitating his admission to the University of Texas.
All of the defendants who improperly took tax deductions for the bribe payments have agreed to cooperate with the IRS to pay back taxes.
Plea hearings have not yet been scheduled by the Court. Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of conspiracy to commit mail fraud and honest services mail fraud provides for a 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. The charge of conspiracy to defraud the United States provides for a maximum sentence of 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; 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.
Rwandan Man Convicted for Immigration Fraud and Perjury in Connection with the 1994 GenocideRead the Press Release
BOSTON – A man who fled Rwanda near the end of the 1994 genocide was convicted today by a federal jury for immigration fraud and perjury in connection with his application for asylum in the United States.
Jean Leonard Teganya, 48, was convicted of two counts of immigration fraud and three counts of perjury. U.S. District Court Judge F. Denis Saylor IV scheduled sentencing for July 1, 2019.
“For 25 years, Jean Leonard Teganya has been running away from the truth,” said United States Attorney Andrew E. Lelling. “Mr. Teganya hid the truth about atrocities he committed during the Rwandan genocide in order to seek asylum in the United States. Our asylum laws exist to protect true victims of violent crime – especially genocide – not the perpetrators.”
“Today’s guilty verdict is a true testament to the significant efforts, over many years and across two continents, of a committed team of Homeland Security Investigations Special Agents and Assistant U.S. Attorneys who valiantly pursued this investigation,” said Special Agent in Charge Peter C. Fitzhugh, Homeland Security Investigations, Boston. “This verdict is a victory, not just for the people of Rwanda, but for all Americans, as it serves as a reminder of our nation’s commitment to prevent human rights violators from exploiting America’s historic hospitality for immigrants by using it as a shield from accountability for their reprehensible war crimes.”
The Rwandan genocide began on April 6, 1994, and lasted for a period of 100 days. During the genocide, approximately 800,000 ethnic Tutsis were murdered, making it the deadliest genocide since the holocaust in World War II. Prior to the genocide, Teganya was enrolled as a medical student at the National University of Rwanda, in Butare. During that time, he was a member of the MRND political party, the ruling Hutu-dominated party that incited the genocide. Teganya was also a member of the Interahamwe, the MRND youth wing, where he participated in martial arts and weapons training.
During the genocide, Teganya remained at the hospital in Butare, where he led teams of soldiers and Interahamwe around the hospital to locate Tutsi patients and refugees hiding in the hospital. Once discovered, the Tutsis were taken and killed behind the maternity ward. Teganya also led teams of soldiers and Interahawme who took Tutsi women to be raped.
The evidence at trial demonstrated that Teganya participated in the murders of three Tutsi people at the hospital and two Tutsi students he discovered in the dormitory where he was living. Teganya also participated in five rapes of two Tutsi women who were hiding in the hospital.
At the end of the genocide in mid-July 1994, Teganya fled Butare, traveling to the Democratic Republic of Congo, Kenya, India, and then Canada. In 1999, Teganya applied for asylum in Canada. Canadian authorities twice determined that Teganya was not entitled to asylum because he had been complicit in atrocities committed at the Butare hospital during the genocide. After 15 years of asylum proceedings, Teganya evaded the Canadian deportation order and fled across the border into the United States. On Aug. 3, 2014, Teganya was encountered walking on foot after he had crossed from Canada into Houlton, Maine. Teganya was taken into custody and he formally applied for asylum. On the application for Asylum and Withholding of Removal, Teganya made false statements by failing to disclose his membership with MRND and his activities during the genocide.
The charge of immigration fraud provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. The charge of perjury provides for a sentence of no greater than 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.
U.S. Attorney Lelling and HSI SAC Fitzhugh made the announcement today. U.S. Customs and Border Protection, the U.S. State Department and the Revere Police Department provided valuable assistance. Assistant U.S. Attorneys Scott L. Garland, Deputy Chief of Lelling’s Nation Security Unit, and George P. Varghese, also of the National Security Unit, are prosecuting the case.
New Jersey Sex Offender Charged with Attempted Production of Child PornographyRead the Press Release
BOSTON - A Bellmawr, N.J., man was charged yesterday in federal court in Worcester in connection with attempting to sexually exploit an 11-year-old boy.
Jordan Winczuk, 34, was indicted on one count of attempted sexual exploitation of a minor and one count of committing a felony offense involving a minor while being required to register as a sex offender. Winczuk is currently in state custody in New Jersey on unrelated charges.
According to the charging document, Winczuk attempted to persuade an 11-year-old Worcester boy, whom he had met through social media days prior, to send him images of his genitals via Instagram. As a result of a 2010 conviction for sexually assaulting a boy and endangering the welfare of a child through the distribution of child pornography, Winczuk is a level 3 sex offender.
If convicted of the attempted sexual exploitation, Winczuk faces a mandatory minimum sentence of life in prison, a minimum of five years and up to a lifetime of supervised release, and a $250,000 fine. The charge of committing the offense while being required to register as a sex offender provides for a mandatory 10 year sentence, to be served consecutive to the sentence imposed on the sexual exploitation charge. 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. Assistant U.S. Attorney Kristen M. Noto of Lelling’s Worcester Branch Office is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Holyoke Man Sentenced for Selling CocaineRead the Press Release
BOSTON - A Holyoke man was sentenced on Wednesday, April 3, 2019, in federal court in Springfield for selling cocaine.
Carlos Maldonado, 30, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 30 months in prison and six years of supervised release. In October 2018, Maldonado pleaded guilty to one count of distribution and possession with intent to distribute cocaine. Maldonado was arrested in September 2016 and has been in federal custody since.
“The government asked for a sentence of 216 months for this career offender,” said U.S. Attorney Andrew E. Lelling. “Maldonado has previously served seven years in prison for assault with intent to murder and has a prior federal conviction for drug dealing – the crime he was sentenced for Wednesday. We respectfully disagree with the Court’s sentence of 30 months.”
On July 15, 2016, Maldonado distributed cocaine to a government witness in Holyoke. This was Maldonado’s second federal narcotics-related conviction, as he was convicted in 2015 in federal court in Springfield for possessing heroin with the intent to distribute and was sentenced to 16 months in prison. Maldonado had been released from a residential re-entry center in May 2016, only two months prior to the time of committing the offense for which he was sentenced on Wednesday.
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; Acting Springfield Police Commissioner Cheryl Clapprood; and Holyoke Police Chief Manny Febo made the announcement. Assistant U.S. Attorney Neil L. Desroches of Lelling’s Springfield Branch Office prosecuted the case.
Project Safe Neighborhoods (PSN) is 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.
Three Pharmaceutical Companies Agree to Pay a Total of over $122 Million to Resolve Allegations that they Paid Kickbacks Through Co-Pay Assistance FoundationsRead the Press Release
BOSTON – The U.S. Attorney’s Office announced today that three pharmaceutical companies –Jazz Pharmaceuticals plc (Jazz), Lundbeck LLC (Lundbeck), and Alexion Pharmaceuticals, Inc. – have agreed to pay a total of $122.6 million to resolve allegations that they violated the False Claims Act by paying kickbacks to Medicare and Civilian Health and Medical Program (ChampVA) patients through purportedly independent charitable foundations.
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). Similarly, under ChampVA, patients may be required to pay a co-pay for medications. Congress included co-pay requirements in these programs, in part, to encourage market forces to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can set 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 or VA patients to purchase the companies’ drugs.
“We are committed to ensuring that pharmaceutical companies do not use third-party foundations to pay kickbacks masking the high prices those companies charge for their drugs,” said United States Attorney Andrew E. Lelling. “This misconduct is widespread, and enforcement will continue until pharmaceutical companies stop circumventing the anti-kickback laws to artificially bolster high drug prices, all at the expense of American taxpayers.”
“Pharmaceutical companies undercut a key safeguard against rising drug costs when they create assistance funds to serve as conduits for the companies to subsidize the copays of their own drugs,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “These enforcement actions make clear that the government will hold accountable drug companies that directly or indirectly pay illegal kickbacks.”
“These settlements demonstrate the FBI’s commitment to safeguarding the Medicare program and ensuring that patients receive treatment solely based on their medical needs,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “Not only did these companies undermine a program that was set up to assist patients in decreasing the cost of their drugs, but they threatened the financial integrity of the Medicare program to which we all contribute and on which we all depend.”
“Kickback schemes undermine the integrity our nation’s healthcare system, including healthcare benefits administered by the U.S. Department of Veterans Affairs,” said Special Agent-in-Charge Sean Smith, VA Office of Inspector General, Northeast Field Office. “The VA Office of Inspector General, along with our law enforcement partners, will continue to aggressively pursue these investigations and exhaust all efforts to uncover these schemes.”
The government’s allegations in the three settlements announced today are as follows:
Jazz. Jazz sells Xyrem, a treatment for narcolepsy, and Prialt, a non-opioid treatment for management of severe chronic pain. The government alleges that, in 2011, Jazz asked a foundation to create a fund that would cover the co-pays of Xyrem patients. The foundation then created a fund that would ostensibly cover the co-pays of patients taking any narcolepsy drug, but that, through May 2014, almost exclusively assisted patients taking Xyrem. During this period, Jazz raised the price of Xyrem at over 24 times the rate of overall inflation in the United States. The government further alleges that Jazz asked the same foundation to create a fund that would purportedly cover the co-pays of patients taking any drug for severe chronic pain, but that, through May 2014, almost exclusively assisted patients taking Prialt. The foundation told Jazz that, when severe chronic pain patients seeking assistance with drugs other than Prialt contacted the foundation, the foundation would refer them elsewhere. Furthermore, as Jazz knew, the foundation did not advertise the severe chronic pain fund on its website, so that Jazz itself was the principal source referrals to the fund. Jazz has agreed to pay $57 million to resolve the government’s allegations.
Lundbeck. Lundbeck sells Xenaxine, a treatment for chorea associated with Huntington’s Disease. The government alleges that, beginning in 2011, Lundbeck donated millions of dollars to a foundation’s fund that, ostensibly, covered the co-pays of patients with Huntington’s Disease, but that, in fact, simply covered the co-pays of patients taking Xenazine, regardless of the condition the drug was being used to treat. After May 2014, when HHS-OIG published a document entitled “Supplemental Special Advisory Bulletin: Independent Charity Assistance Programs,” Lundbeck and the foundation agreed that the foundation would continue to pay the Xenazine co-pays for non-Huntington’s Disease patients out of a “general fund” that the foundation would use for this purpose. When Lundbeck asked the foundation whether there was a “risk” that HHS-OIG would not view this practice as compliant, the foundation replied, “[t]hey don’t know what we use the general fund for.” This conduct continued through 2016. During the period of the alleged misconduct, Lundbeck raised the price of Xenazine at over 22 times the rate of overall inflation in the United States. Lundbeck has agreed to pay $52.6 million to resolve the government’s allegations.
Jazz and Lundbeck each entered five-year corporate integrity agreements (CIAs) with OIG as part of their respective settlements. The CIAs require the companies to implement measures, controls, and monitoring designed to promote independence from any patient assistance programs to which they donate. In addition, the companies agreed to implement risk assessment programs and to obtain compliance-related certifications from company executives and Board members.
“These kickback schemes harm Medicare and the public,” said Gregory E. Demske, Chief Counsel to the Inspector General. “OIG CIAs, such as those with Jazz and Lundbeck, are designed to reduce future risks to patients and taxpayer-funded programs. OIG decided not to require a CIA with Alexion because it made sweeping and fundamental organizational changes following the bad conduct. The changes included hiring a new eight-member executive leadership team and changing half of the members of its Board of Directors. In addition, forty percent of Alexion’s employees are new and the company relocated its corporate headquarters.”
Alexion. Alexion sells Soliris, a drug that is approved to treat patients with paroxysmal nocturnal hemoglobinuria (PNH) and to treat patients with atypical hemolytic uremic syndrome (aHUS). Soliris can cost over $500,000 per year. Alexion allegedly knew that the price it set for Soliris could pose a financial burden to patients. In January 2010, the government alleges, Alexion requested that a foundation create a “Complement-Mediated Disease” (“CMD”) fund. Over the next several months, Alexion and the foundation allegedly discussed the coverage parameters that Alexion desired for the fund, including Alexion’s desire that the fund “not support a patient with any of these [CMD] diagnoses for other reasons tha[n] Soliris therapy.” The government alleges that, after the fund opened, Alexion—the sole donor to the fund—understood that the fund’s provision of financial assistance to a patient was contingent on the patient taking Soliris. Alexion allegedly noted internally that it needed to be diligent in notifying the foundation if a patient had stopped taking Soliris so that Alexion’s donations would not be used on patients who were not starting or maintaining Soliris therapy. Alexion has agreed to pay $13 million to resolve the government’s allegations.
U.S. Attorney Lelling, Assistant Attorney General Hunt, HHS-OIG Chief Counsel Demske, FBI SAC Bonavolonta, and VA OIG SAC Sean Smith 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, and by Trial Attorneys Augustine Ripa and Sarah Arni of the Justice Department’s Civil Division.
Three Pharmaceutical Companies Agree to Pay a Total of over $122 Million to Resolve Allegations That They Paid Kickbacks Through Co-Pay Assistance FoundationsRead the Press Release
The Department of Justice today announced that three pharmaceutical companies – Jazz Pharmaceuticals plc (Jazz), Lundbeck LLC (Lundbeck), and Alexion Pharmaceuticals Inc. (Alexion) – have agreed to pay a total of $122.6 million to resolve allegations that they each violated the False Claims Act by illegally paying the Medicare or Civilian Health and Medical Program (ChampVA) copays for their own products, through purportedly independent foundations that the companies used as mere conduits.
When a Medicare beneficiary obtains a prescription drug covered by Medicare, the beneficiary may be required to make a partial payment, which may take the form of a copayment, coinsurance, or a deductible (collectively “copays”). Similarly, under ChampVA, patients may be required to pay a copay for medications. Congress included copay requirements in the Medicare program, in part, 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 a pharmaceutical company from offering or paying, directly or indirectly, any remuneration — which includes money or any other thing of value — to induce Medicare or ChampVA patients to purchase the company’s drugs. This prohibition extends to the payment of patients’ copay obligations.
“Pharmaceutical companies undercut a key safeguard against rising drug costs when they create assistance funds to serve as conduits for the companies to subsidize the copays of their own drugs,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “These enforcement actions make clear that the government will hold accountable drug companies that directly or indirectly pay illegal kickbacks.”
“We are committed to ensuring that pharmaceutical companies do not use third-party foundations to pay kickbacks masking the high prices those companies charge for their drugs,” said U.S. Attorney Andrew E. Lelling. “This misconduct is widespread, and enforcement will continue until pharmaceutical companies stop circumventing the anti-kickback laws to artificially bolster high drug prices, all at the expense of American taxpayers.”
Jazz and Lundbeck each entered five-year corporate integrity agreements (CIAs) with OIG as part of their respective settlements. The CIAs require the companies to implement measures, controls, and monitoring designed to promote independence from any patient assistance programs to which they donate. In addition, the companies agreed to implement risk assessment programs and to obtain compliance-related certifications from company executives and Board members.
“These kickback schemes harm Medicare and the public,” said Gregory E. Demske, Chief Counsel to the Inspector General. “OIG CIAs, such as those with Jazz and Lundbeck, are designed to reduce future risks to patients and taxpayer-funded programs. OIG decided not to require a CIA with Alexion because it made sweeping and fundamental organizational changes following the bad conduct. The changes included hiring a new eight-member executive leadership team and changing half of the members of its Board of Directors. In addition, 40 percent of Alexion’s employees are new and the company relocated its corporate headquarters.”
“These settlements demonstrate the FBI’s commitment to safeguard the Medicare program and ensure that patients receive treatment solely based on their medical needs,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “Not only did these companies undermine a program that was set up to assist patients in decreasing the cost of their drugs, but they threatened the financial integrity of the Medicare program to which we all contribute and on which we all depend.”
“Kickback schemes undermine the integrity our nation’s healthcare system, including healthcare benefits administered by the U.S. Department of Veterans Affairs,” said Special Agent-in-Charge Sean Smith, VA Office of Inspector General, Northeast Field Office. “The VA Office of Inspector General, along with our law enforcement partners, will continue to aggressively pursue these investigations and exhaust all efforts to uncover these schemes.”
The government’s allegations in the three settlements being announced today are as follows:
Jazz: Jazz sells Xyrem, a narcolepsy medication with Gamma Hydroxybutyrate (GHB)—a central nervous system depressant and controlled substance—as its main active ingredient. The government alleged that, in 2011, Jazz asked a foundation to create a fund that would pay the copays of Xyrem Medicare patients and that the foundation agreed to establish a “Narcolepsy Fund,” to which Jazz became the sole donor. The government alleged that Jazz knew that, although Xyrem accounted for a small share of the overall narcolepsy market, the fund almost exclusively used Jazz’s donations to pay copays for Xyrem and required non-Xyrem patients on competing products to obtain a denial letter from another assistance plan before helping them. The government further alleged that, in conjunction with establishing this fund, Jazz made Medicare patients ineligible for Jazz’s free drug program and instead referred Xyrem Medicare patients to the foundation, enabling Jazz to generate revenue from Medicare and induce purchases of the drug, rather than continuing to provide these patients with free drugs. Meanwhile, Jazz raised the price of Xyrem by over 150 percent from 2011 through the end of the relevant time period.
Jazz also sold Prialt, an injectable severe chronic pain medication. The government alleged that Jazz asked the same foundation to create a fund ostensibly to assist patients with the co-pays of any severe chronic pain drugs, but which, in practice, almost exclusively paid Prialt Medicare copays. Shortly after creating the fund, the foundation allegedly told Jazz that when severe chronic pain patients seeking assistance with other drugs contacted the foundation, it would refer them elsewhere. The government alleged that Jazz was also aware that the fund did not appear on the foundation’s website, thereby minimizing the number of non-Prialt patients seeking assistance from the fund. Jazz has agreed to pay $57 million to resolve the government’s allegations.
Lundbeck: Lundbeck sells Xenazine, the only drug that was approved to treat chorea associated with Huntington’s disease until a generic version became available until 2015. The government alleged that Lundbeck was the sole donor and made millions in payments to a fund at a foundation that ostensibly provided financial support only for patients with Huntington’s Disease. However, Lundbeck allegedly referred Xenazine patients with many other conditions to this foundation, which then paid the Xenazine copays for these unapproved uses from its Huntington’s Disease fund. The government further alleged that, in June 2014, after the foundation determined that its Huntington’s Disease fund would no longer pay the copays of patients taking Xenazine for non-Huntington’s disease uses, Lundbeck agreed to repurpose some of its prior donations to the Huntington’s Disease fund to a “general fund” at the foundation for the purpose of paying these patients’ Xenazine copays, and made subsequent “unrestricted” payments to the foundation with the understanding that the foundation would use these payments to pay Xenazine copays for these same patients. Lundbeck allegedly asked the foundation whether there was a “risk” that this practice would be viewed as not compliant with the foundation’s HHS-OIG Advisory Opinion, and the foundation allegedly replied that “[t]hey don’t know what we use the general fund for.”
The government also alleged that, at the time it was engaged in the foregoing conduct, Lundbeck had a policy of not permitting Medicare or ChampVA patients to participate in its free drug program for Xenazine, which was open to other financially needy patients, even if those Medicare or ChampVA patients could not afford their copays for Xenazine. Instead, in order to generate revenue from Medicare and ChampVA and to induce purchases of Xenazine, Lundbeck allegedly referred financially needy non-Huntington’s Disease Xenazine patients to the foundation, which resulted in claims to Medicare and ChampVA to cover the cost of the drug. Lundbeck has agreed to pay $52.6 million to resolve the government’s allegations.
Alexion: Alexion sells Soliris, which, from Jan. 1, 2010, through June 30, 2016, was indicated for certain uses to treat patients with paroxysmal nocturnal hemoglobinuria (PNH) and atypical hemolytic uremic syndrome (aHUS). The cost of Soliris, based upon its list price and indicated dosing recommendation, can be approximately $500,000 per year. The government alleged that Alexion made donations to a “Complement-Mediated Disease” (CMD) fund at a foundation to pay the Medicare copay obligations of patients taking Soliris and to induce those patients’ purchases of Soliris. Alexion allegedly knew that the price it set for Soliris could pose a barrier to patients’ purchases of it. In particular, the government alleged that Alexion approached the foundation in January 2010 to request that it create a fund to provide financial assistance to Soliris patients, including by paying patients’ Soliris Medicare copays and other medical expenses for Soliris patients. Over the next several months, Alexion and the foundation allegedly discussed the coverage parameters for the fund, including Alexion’s desire that the foundation “not support a patient with any of these [CMD] diagnoses for other reasons tha[n] Soliris therapy.” After the fund opened, Alexion—the sole donor to the fund—allegedly understood that the foundation’s provision of financial assistance to a patient was contingent on the patient taking Soliris. Alexion allegedly noted internally that it needed to be diligent in letting the foundation know if a patient had stopped taking Soliris so that Alexion’s donations would not be used on patients who were not starting or maintaining Soliris therapy.
Meanwhile, the government alleged that Alexion had a general practice of not permitting Medicare patients to participate in its free drug program, which was open to other financially needy patients, even if those Medicare patients could not afford their copays for Soliris. Instead, in order to generate revenue from Medicare and induce purchases of Soliris, Alexion allegedly referred Medicare patients prescribed Soliris to the foundation, through the foundation’s “referral portal” software. Allegedly, the “referral portal” reported information back to Alexion confirming those Soliris patients who were approved for copay or other financial assistance from the foundation, and detailed the foundation’s payments to them, which resulted in claims to Medicare to cover the cost of Soliris. Alexion has agreed to pay $13 million to resolve the government’s allegations.
The government’s resolution of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
These investigations were conducted by the Justice Department’s Civil Division and the U.S. Attorney’s Office for the District of Massachusetts, in conjunction with the Department of Health and Human Services, Office of Inspector General; the Federal Bureau of Investigation; and the Department of Veterans Affairs, Office of Inspector General.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Rhode Island Man Indicted by Federal Grand Jury for the Kidnapping of Jassy CorreiaRead the Press Release
BOSTON – Louis Coleman III was indicted today by a federal grand jury in Boston for the kidnapping resulting in the death of Jassy Correia.
Coleman, 32, of Providence, R.I., was indicted on one count of kidnapping resulting in death. An arraignment date will be scheduled by the Court. Coleman was arrested on Feb. 28, 2019, in Delaware, charged by complaint in the District of Massachusetts on March 3, and appeared in federal court in Boston on March 11. He has been detained since his arrest.
According to the charging documents, after learning of the disappearance of Correia, law enforcement reviewed surveillance tape from outside of the Venu nightclub, the last place Correia had been seen by her friends, which showed Correia leaving the area and entering a vehicle with a man later identified as Coleman. Surveillance footage from Coleman’s Providence, R.I., apartment building showed Coleman, at about 4:15 a.m. on Sunday, Feb. 24, 2019, parking and exiting the vehicle, and then returning a short time later carrying a blanket. He then walked from the car to the front of the building carrying a body with long hair and clothing consistent with the description of Ms. Correia. Once he entered the building, surveillance video showed Coleman dropping the victim on the floor and dragging her towards the elevator, and subsequently towards his apartment unit. The victim was not moving and her body was limp.
It is alleged that on Feb. 26, 2019, surveillance video from the defendant’s apartment building showed Coleman enter the apartment building with Walmart shopping bags. Law enforcement subsequently obtained video surveillance and a receipt from a Walmart in Providence, R.I., that revealed Coleman had purchased three Tyvek suits, duct tape, two candles, electrical tape, one mask, surgical gloves, two pairs of safety goggles, an odor respirator and CLN release bleach bath.
At approximately 9:58 p.m. on Feb. 27, 2019, Coleman is seen on video surveillance entering the apartment building with what appeared to be a new, large suitcase. At 1:15 a.m., on Feb. 28, 2019, Coleman is seen in the video wheeling the suitcase away from his apartment unit towards the elevator, eventually out of the building and into the parking lot where his vehicle was parked. Coleman appeared to have difficulty lifting the suitcase into the trunk of his car.
Additional surveillance video showed Coleman on several occasions exiting his apartment building with other items, including trash bags, cardboard boxes, a bottle of bleach, a laptop case, a computer tower and a small duffle bag.
Later in the day on Feb. 28, 2019, a search warrant was executed at Coleman’s apartment, where two packages of hooded coveralls and two respirator masks were recovered. A sofa with four large cushions, one of which was missing a cover, was also observed. In a dumpster outside of the apartment complex, white trash bags, a bag containing plastic sheets, men’s jeans with bleach stains and a belt, a white nylon hooded coverall, an empty box of baking soda, clear safety goggles, a respirator mask, duct tape packaging, rubbing alcohol, Walmart bags, used plastic gloves, an empty package from a car air freshener, three empty packages of purifying charcoal and a sponge were recovered.
On the afternoon of Feb. 28, 2019, Coleman’s vehicle was stopped by Delaware authorities on I-95 South near Wilmington, Delaware. Officers ordered Coleman out of the vehicle and asked him if anyone else was in the vehicle with him. It is alleged that Coleman stated words to the effect: “She’s in the trunk.”
Officers discovered the victim’s body in the trunk of Coleman’s vehicle, wrapped in a sofa cushion cover, which was inside of a black trash bag, inside of a large suitcase that matches the suitcase Coleman was observed bringing into his apartment on Feb. 27, 2019. The victim had significant bruising, a bloodied face, was bound with gray duct tape, and was covered in what is believed to be baking soda.
A duffle bag, a pair of new long-handled loppers, plastic garbage bags, clothing, a red plastic gas container, a green butane lighter, black gloves, charcoal air purifiers, air fresheners, tinted safety glasses, plastic Walmart bags, work towels, cloth work-gloves, a new set of DeWalt pliers, a laptop, a computer hard-drive/tower, and disinfectant wipes were also recovered in Coleman’s vehicle.
It is further alleged that photographs of the defendant’s vehicle depict a windshield that is cracked in two locations on the passenger side and a white substance, believed to be baking soda, in the trunk of the vehicle.
Coleman was taken into custody and transported to a Delaware State Police barracks. There, it was noted that Coleman had a large bandage on the right side of his face. When asked about it, he allegedly replied, “It’s from the girl.”
The charge of kidnapping resulting in death provides for a sentence of death or life in prison. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Boston Police Commissioner William G. Gross; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; John Gibbons, U.S. Marshal for the District of Massachusetts; Suffolk County District Attorney Rachael Rollins; Colonel Nathaniel McQueen Jr., Delaware State Police; and Colonel Hugh T. Clements Jr., Chief of Police, Providence Police Department, made the announcement today. The U.S. Attorney’s Office would also like to acknowledge the cooperation and assistance of Rhode Island Attorney General Peter F. Neronha; United States Attorney David C. Weiss, District of Delaware; and the Massachusetts State Police. Assistant U.S. Attorneys Kenneth G. Shine and Robert Richardson of Lelling’s Major Crimes Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
South Boston Man Pleads Guilty to Distributing Heroin and Fentanyl in Public Housing DevelopmentRead the Press Release
BOSTON – A South Boston man pleaded guilty today in federal court in Boston to distributing heroin and fentanyl.
Jomar Ventura, 24, pleaded guilty to four counts of distribution and possession with intent to distribute heroin and fentanyl. Chief U.S. District Court Judge Patti B. Saris scheduled sentencing for July 10, 2019. Ventura was arrested and charged in September 2018 and has been in custody since.
On March 19, March 28, April 24, and May 4, 2018, Ventura distributed heroin and fentanyl in and around the Mary Ellen McCormack public housing development in South Boston.
The charge of distributing or possessing with intent to distribute heroin and fentanyl provides for a sentence of no greater than 20 years in prison, three years to a lifetime of supervised release, and a fine of up to $1 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division, made the announcement today. Assistant U.S. Attorney Elianna Nuzum of Lelling’s Major Crimes 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. 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.
Holyoke Man Sentenced for Dealing CocaineRead the Press Release
BOSTON – A Holyoke man was sentenced yesterday in federal court in Springfield for dealing cocaine.
Raul Ramos, 44, was sentenced by U.S. District Court Judge Mark G. Mastroianni to time served, six days, in prison and six years of supervised release. In February 2018, Ramos pleaded guilty to one count of distribution and possession with intent to distribute cocaine.
On Nov. 8, 2016, Ramos distributed more than 27 grams of cocaine in exchange for $1,300. The charge is a result of a federal, state, and local law enforcement investigation into drug trafficking in Springfield and Holyoke.
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; Springfield Police Commissioner Cheryl Clapprood; and Holyoke Police Chief Manny Febo made the announcement today. Assistant U.S. Attorney Todd E. Newhouse of Lelling’s Springfield Branch Office prosecuted the case.
Dorchester Man Pleads Guilty to Counterfeiting ChargesRead the Press Release
BOSTON – A Dorchester man pleaded guilty yesterday in federal court in Boston to counterfeiting charges.
Franklin Perry, 53, pleaded guilty to one count of dealing in counterfeit currency and two counts of passing and uttering counterfeit obligations of the United States. Senior U.S. District Court Judge George A. O’Toole Jr. scheduled sentencing for July 9, 2019. 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 Target in Westwood, including an ink jet printer, with $500 in counterfeit $100 bills. That same day, he also purchased items at a Walmart 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.
For each charge, Perry faces a sentence of no greater than 20 years in prison, five years of supervised release and a $250,000 fine. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; 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. Theodore Merritt of Lelling’s Major Crimes Unit is prosecuting the case.
Brockton Man Sentenced for Fentanyl DistributionRead the Press Release
BOSTON – A Brockton man was sentenced yesterday in federal court in Boston for fentanyl distribution.
Tequan Brown, a/k/a “Purp,” 26, was sentenced by U.S. District Court Chief Judge Patti B. Saris to eight months in prison and three years of supervised release. In February 2019, Brown pleaded guilty to distributing fentanyl.
Brown was responsible for distributing 2.28 grams of fentanyl in May 2018.
This case was part of Operation Landshark, a federal investigation that targeted impact players and repeat offenders in Brockton and Boston, each of whom had prior convictions for acts of violence, firearm offenses, and/or drug trafficking. It is alleged that many of the Operation Landshark targets are among the top 30 criminal offenders responsible for violent acts and firearms in Brockton.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Plymouth County District Attorney Timothy J. Cruz; Suffolk County District Attorney Rachael Rollins; Boston Police Commissioner William G. Gross; and Brockton Police Chief John Crowley made the announcement. The investigation was conducted by the FBI’s North Shore Gang Task Force and Southeastern Massachusetts Gang Task Force. Valuable assistance was provided by the Suffolk County Sheriff’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Plymouth and Essex County Sheriff’s Offices; Massachusetts Department of Corrections; U.S. Parole Commission; U.S. Postal Inspection Services; and the U.S. Secret Service.
Operation Landshark 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.
U.S. Attorney’s Office Settles Disability Discrimination Allegations Related to the CPA ExamRead the Press Release
BOSTON – The U.S. Attorney’s Office has reached an agreement with the American Institute of Certified Public Accountants (AICPA) and the National Association of State Boards of Accountancy (NASBA) related to testing accommodations for individuals who are blind or have low vision who take the Uniform Certified Public Accountant Exam (the CPA exam). This agreement resolves allegations of discrimination on the basis of disability under Title III of the Americans with Disabilities Act (ADA).
“People who have vision-related disabilities deserve equal opportunities to take the CPA exam and gain licensure to the profession,” said United States Attorney Andrew E. Lelling. “We are pleased that AICPA and NASBA worked cooperatively to adopt measures that will ensure these individuals receive appropriate auxiliary aids so that their CPA exam results accurately reflect their aptitude rather than reflecting their impaired visual skills.”
In order to become a licensed CPA, one must pass the CPA exam, which consists of four separate sections, available only on a computer. When the United States began its investigation in August 2017, there was no auxiliary aid software available to exam-takers with low vision that would allow them to both magnify the computer screen and have the computer read aloud sections of the text. Instead, those exam-takers had to use alternative auxiliary aids, and sometimes a human reader, for some portions of the exam, rather than the screen reader/magnifier they requested that was recommended by their qualified professional health care provider as appropriate for their disability. AICPA now makes screen reader/magnifier software available to exam-takers with low vision for all four sections of the exam and has made the text of the Authoritative Literature (resource materials for use during the exam) accessible through a screen reader. Under the terms of the settlement agreement, AICPA is continuing to work with advocacy organizations and auxiliary aid software developers to ensure ongoing accessibility of the exam to individuals with vision-related disabilities.
Additionally, the AICPA will pay $15,000 to an individual who was a subject of the alleged discrimination. The United States will also identify other aggrieved persons who are blind or have low vision and recently took the CPA exam with an inappropriate auxiliary aid. Each additional aggrieved person shall receive up to $10,000 from AICPA, based on the details and extent of discrimination they suffered. Individuals who believe they are aggrieved persons under the terms of the agreement should contact the U.S. Attorney’s Office at (617) 275-8756.
United States Attorney Andrew E. Lelling made the announcement today. Assistant U.S. Attorney Torey B. Cummings of Lelling’s Civil Rights Unit handled the case.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
Revere Man Pleads Guilty to Trafficking Counterfeit GoodsRead the Press Release
BOSTON - A Revere man pleaded guilty today in federal court in Boston in connection with importing and selling counterfeit apparel.
Paul G. Adri, 34, pleaded guilty to one count of trafficking in counterfeit goods. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for July 9, 2019. Adri was arrested and charged by complaint in December 2018 and was released on conditions.
Adri improperly utilized trademarks held by Adidas, Nike, MLB, the NFL, and the NBA, among others, by importing counterfeit goods from Hong Kong and China and selling them on eBay. Adri ignored two separate notices from U.S. Customs and Border Protection relating to his illegal counterfeiting activities.
The charge of trafficking in counterfeit goods and services provides for a sentence of no greater than 10 years in prison, up to three years of supervised release, and a fine of up to $2 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 Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Mackenzie Queenin of Lelling’s Cybercrime Unit is prosecuting the case.
Milton Woman Arrested for Running Multimillion-Dollar Black Market Marijuana EnterpriseRead the Press Release
BOSTON – A Milton woman was arrested today and charged in federal court in Boston in connection with her ownership and management of Northern Herb, a black-market marijuana delivery service that operated in Massachusetts from 2015 to 2018.
Deana Martin, 51, was charged with one count of conspiring to distribute more than 100 kilograms of marijuana. She will appear in federal court in Boston later today.
According to the charging document, Martin owned and managed Northern Herb, which operated a website offering marijuana (including raw marijuana, pre-rolled cigarettes, and marijuana edibles) for sale. While Northern Herb purported to provide medical marijuana, it did not require a customer to provide proof of a medical marijuana card. Furthermore, it is alleged that Northern Herb would deliver marijuana to unattended locations (such as a front door or hallway) where unknown third parties might have access to it. Northern Herb used locations in Canton, Milton, Foxborough, and Hyde Park to store and distribute marijuana, and employed at least 25 workers.
It is further alleged that Martin planned for Northern Herb to use a sales team that would be incentivized based on monthly marijuana sales. One such incentivized tier, for instance, would be for selling more than 10 pounds of marijuana per month.
From May 2016 through July 2018, Northern Herb allegedly had total revenue exceeding $14 million, and Martin herself claimed an income of $80,000 per month. Martin controlled numerous bank accounts into which funds derived from Northern Herb sales were laundered, and she used several accounts in another person’s name to conceal her control over this money and to hide it from the U.S. Bankruptcy Court. Martin allegedly used money from Northern Herb sales to pay more than $300,000 towards the mortgage on her house and to buy a 2017 Porsche Boxster, among other things.
It is further alleged that Northern Herb did not withhold or pay taxes on its millions of dollars in marijuana sales. In an email referencing cannabis taxes charged by one state government, Martin wrote: “Zero taxes is still better.” Northern Herb did not remit or pay employment taxes in connection with its workforce or issue its employees W-2s or 1099s.
The charge provides for a mandatory minimum sentence of five years and no greater than 40 years in prison, a minimum of four years and up 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; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. The United States Postal Inspection Service also provided valuable assistance with this investigation. Assistant U.S. Attorney William Abely of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Easthampton Attorney Arrested and Charged with Financial Fraud and False Statements to Federal AgentsRead the Press Release
BOSTON – An Easthampton attorney was arrested on March 31, 2019, and appeared in federal court in Springfield yesterday to face charges for various financial fraud offenses and lying to federal agents.
Phillip R. Williams, 49, was indicted on three counts of wire fraud, two counts of engaging in financial transactions greater than $10,000 of proceeds derived from criminal activity, two counts of money laundering, two counts of tax fraud, and one count of false statements to a federal official. Williams appeared in federal court in Springfield yesterday and was detained pending a hearing scheduled for April 4, 2019.
According to the indictment, Williams was an attorney licensed to practice law in Massachusetts. Williams maintained an Interest on Lawyers’ Trust Account at a bank in Massachusetts and was required to hold funds with the care required of a professional fiduciary, for the exclusive benefit of his clients. Between approximately Jan. 29, 2014, and Dec. 31, 2014, Williams allegedly devised a scheme to defraud two individuals who transferred $950,000 into the Williams Lawyers’ Trust Account. As part of that scheme, Williams stole $453,695 of these funds for his own benefit, his family members, and two associates.
It is further alleged that when Williams electronically filed his self-prepared 2014 Individual Tax Return Form 1040 with the IRS, he failed to report the full amount of the $453,695 that he misappropriated from the Williams Lawyer’s Trust Account. In September 2015, Williams filed an amended 2014 Individual Tax Return, Form 1040x, with the IRS and increased his adjusted gross income from $44,439 to $282,000.
In addition, in July 2015, Williams allegedly told agents that he reported an estimated $300,000 of the stolen funds on his 2014 income tax return.
The wire fraud and money laundering charges provide for a sentence of no greater than 20 years in prison, up to five years of supervised release, and a fine of $250,000. The $10,000 financial transaction charges provide for a sentence of no greater than10 years in prison, up to three years of supervised release, and a fine of $250,000. The tax fraud charges provide for up to three years in prison, a maximum of three years of supervised release, and a fine of $100,000. The false statement charge provides for a sentence of no greater than five years in prison, up to three years of supervised release, and a fine of $250,000. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office, made the announcement. Assistant U.S. Attorney Steven H. Breslow of Lelling’s Springfield Branch Office is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Boston Man Indicted for Being a Felon in Possession of a FirearmRead the Press Release
BOSTON – A Boston man was indicted today in federal court in Boston for being a felon in possession of a firearm.
Khyeme Johnson, 31, was charged with one count of being a felon in possession of a firearm and ammunition.
On Aug. 24, 2018, Johnson was allegedly found in possession of an Arcadia Machine & Tool .380 semiautomatic pistol with two rounds of ammunition. Johnson is prohibited from possessing a firearm due to multiple prior felony convictions.
Based upon his criminal history, Johnson faces a maximum sentence of life in prison, up to five years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. Valuable assistance was provided by the Suffolk County District Attorney’s Office and the Boston Police Department. Assistant U.S. Attorney Chris Looney of Lelling’s Criminal Division is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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.
Springfield Man Pleads Guilty to Armed RobberyRead the Press Release
BOSTON – A Springfield man pleaded guilty today in federal court in Springfield in connection with an armed robbery of a convenience store and firearms charges.
Emilio Rivera, 30, pleaded guilty to one count of interference with commerce by robbery, one count of using a firearm in relation to crime of violence, and one count of being a felon in possession of a firearm and ammunition. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for July 9, 2019.
On Nov. 14, 2018, Rivera and alleged co-defendant Alfredo Aldeco, 32, of Holyoke, robbed a clerk in a West Springfield convenience store at gunpoint. After forcibly taking cash and cigarettes from the clerk, Aldeco warned the clerk, “If you call the cops, I will come back and kill you.” When law enforcement later executed a search warrant on Rivera’s home, they found the firearm used in the robbery along with another firearm and ammunition. At the time, Rivera was prohibited from possessing a firearm or ammunition due to a prior felony conviction.
Aldeco has pleaded not guilty and is awaiting trial.
The charges of interference with commerce by robbery and using a firearm in relation to a crime of violence provides for a sentence of no greater than 20 years in prison, up to three years of supervised release, and a fine of up to $250,000. The charge of being a felon in possession of a firearm and ammunition provides for a sentence of no greater than 10 years in prison, up to three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based 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 Division, made the announcement. The West Springfield, Holyoke, Agawam, Chicopee, Northampton, and Springfield Police Departments and the Massachusetts State Police provided valuable assistance to the investigation. Assistant U.S. Attorney Deepika Bains Shukla of Lelling’s Springfield Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Fresenius Medical Care Agrees to Pay $231 Million to Resolve Foreign Corrupt Practices Act ChargesRead the Press Release
BOSTON – Fresenius Medical Care AG & Co. KGaA (Fresenius), a German-based provider of medical products and services, has agreed to pay approximately $231 million to resolve the Department of Justice (DOJ) and Securities and Exchange Commission’s (SEC) investigation into violations of the Foreign Corrupt Practices Act (FCPA) in connection with Fresenius’s participation in various corrupt schemes to obtain business in multiple countries.
“Bribery, in all forms, is corrosive and illegal,” said United States Attorney Andrew E. Lelling of the District of Massachusetts. “As today’s announcement makes clear, this Office will continue its long tradition of aggressively investigating companies and individuals who use bribes and kickbacks to gain an unfair and illicit business advantage, or who deliberately turn a blind eye to that conduct.”
“Fresenius doled out millions of dollars in bribes across the globe to gain a competitive advantage in the medical services industry, profiting to the tune of over $140 million,” said Assistant Attorney General Benczkowski. “Today’s resolution, under which Fresenius has agreed to retain an independent compliance monitor for at least two years, reflects the Department’s firm commitment to both rooting out bribery and promoting the kind of effective corporate compliance programs that will prevent misconduct going forward.”
“This case shows the continued commitment of the FBI and our partners to investigate bribery and corruption worldwide,” said FBI Assistant Director Robert Johnson. “The FBI's dedicated International Corruption Squads across the United States will continue to combat foreign corruption that reaches our shores and send a strong message that, no matter how long it takes, we will not wane in our efforts to uphold the law.”
“This case shows the FBI will hold accountable those who treat corruption as the cost of doing business,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “Fresenius’s admissions are incredibly concerning because no company should break the law by paying-off international partners to obtain or retain business. We will continue to work with our law enforcement partners to root out corrupt schemes and ensure they do not become common practice at the expense of other hard-working businesses.”
According to Fresenius’s admissions, between 2007 and 2016, the company paid bribes to publicly-employed health and/or government officials to obtain or retain business in Angola and Saudi Arabia. In Angola and Saudi Arabia, as well as in Morocco, Spain, Turkey, and countries in West Africa, Fresenius knowingly failed to implement reasonable internal accounting controls over financial transactions, and failed to maintain books and records that accurately and fairly reflected the transactions.
In Angola, Fresenius offered or provided bribes to an Angolan military health officer and his family, as well as prominent Angolan government-employed nephrologists. Specifically, Fresenius offered these individuals shares in a joint venture, storage contracts, and consultancy agreements, all for the purpose of securing an improper advantage and assisting Fresenius with obtaining and retaining business in Angola.
In Saudi Arabia, Fresenius employed a check cashing scheme, entered into sham consulting and commission agreements for which no services were ever performed, entered into fake collection commission agreements, made payments to a government charity, gave gifts, and made payments for travel with no business or educational justification, the company admitted.
In Morocco, Fresenius paid bribes to a Moroccan state official for the purpose of obtaining contracts to develop kidney dialysis centers at Moroccan state-owned military hospitals.
In Spain, Fresenius entered into fake consulting agreements with publicly-employed doctors or professionals who could influence or provide information about public tenders, gave gifts or provided other benefits such as travel to medical conferences, and made donations to fund projects for the doctors.
In Turkey, Fresenius entered into joint ventures with publicly-employed doctors in exchange for those doctors directing business from their public employer to Fresenius Turkey clinics.
In West Africa, Fresenius paid bribes to publicly-employed health officials in various countries, including Benin, Burkina Faso, Cameroon, the Ivory Coast, Niger, Gabon, Chad, and Senegal. Fresenius paid these bribes through a combination of direct payments, payments made through third parties, and payments through a third-party distributorship, all to obtain and retain business in those countries.
In total, Fresenius earned more than $140 million in profits from the corrupt schemes.
To resolve the case, Fresenius entered into a non-prosecution agreement (NPA) with DOJ and agreed to pay a total criminal penalty of $84,715,273. As part of the NPA, Fresenius also agreed to continue to cooperate with DOJ’s investigation, enhance its compliance program, implement rigorous internal controls, and retain an independent corporate compliance monitor for at least two years.
DOJ reached this resolution based on a number of factors. Notably, although Fresenius voluntarily self-disclosed the misconduct in April 2012, the company did not timely respond to certain requests by the DOJ and, at times, did not provide fulsome responses to requests for information. In addition, misconduct occurred in 13 countries, yielded profits of more than $140 million, and continued in certain countries until 2016, and the company has not yet had the opportunity to test the effectiveness of its compliance enhancements. Therefore, the company did not qualify for a declination under the Corporate Enforcement Policy, and instead received a discount of 40 percent below the low end of the U.S. Sentencing Guidelines fine range, and an independent compliance monitor for a term of two years, followed by an additional year of self-reporting to the DOJ.
Fresenius settled a related FCPA matter with the SEC today and will pay $147 million in disgorgement and prejudgment interest to the SEC, which the DOJ credited in its resolution, bringing the total monetary amount to over $231 million.
Assistant U.S. Attorney Jordi de Llano of the District of Massachusetts and Trial Attorneys Paul A. Hayden and Sonali D. Patel of the Department’s Criminal Division’s Fraud Section are prosecuting this matter. The Department appreciates the significant cooperation and assistance provided by the U.S. Securities and Exchange Commission in this matter.
Fresenius Medical Care Agrees to Pay $231 Million in Criminal Penalties and Disgorgement to Resolve Foreign Corrupt Practices Act ChargesRead the Press Release
Fresenius Medical Care AG & Co. KGaA (Fresenius), a German-based provider of medical products and services, has agreed to pay approximately $231 million to resolve investigations by the Department of Justice and the Securities and Exchange Commission (SEC) into violations of the Foreign Corrupt Practices Act (FCPA) in connection with Fresenius’s participation in various corrupt schemes to obtain business in multiple foreign countries.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Andrew E. Lelling of the District of Massachusetts, Assistant Director Robert Johnson of the FBI’s Criminal Investigative Division and Special Agent in Charge Joseph R. Bonavolonta of the FBI Boston Field Division made the announcement.
According to Fresenius’s admissions in connection with the resolution, between 2007 and 2016, Fresenius paid bribes to publicly employed health and/or government officials to obtain or retain business in Angola and Saudi Arabia. In Angola and Saudi Arabia, as well as in Morocco, Spain, Turkey and countries in West Africa, Fresenius knowingly and willfully failed to implement reasonable internal accounting controls over financial transactions and failed to maintain books and records that accurately and fairly reflected the transactions, the company admitted.
“Fresenius doled out millions of dollars in bribes across the globe to gain a competitive advantage in the medical services industry, profiting to the tune of over $140 million,” said Assistant Attorney General Benczkowski. “Today’s resolution, under which Fresenius has agreed to retain an independent compliance monitor for at least two years, reflects the Department’s firm commitment to both rooting out bribery and promoting the kind of effective corporate compliance programs that will prevent misconduct going forward.”
“Bribery, in all forms, is corrosive and illegal,” said U.S. Attorney Lelling. “As today’s announcement makes clear, this Office will continue its long tradition of aggressively investigating companies and individuals who use bribes and kickbacks to gain an unfair and illicit business advantage, or who deliberately turn a blind eye to that conduct.”
“This case shows the continued commitment of the FBI and our partners to investigate bribery and corruption worldwide,” said FBI Assistant Director Robert Johnson. “The FBI's dedicated International Corruption Squads across the United States will continue to combat foreign corruption that reaches our shores and send a strong message that, no matter how long it takes, we will not wane in our efforts to uphold the law.”
“This case shows the FBI will hold accountable those who treat corruption as the cost of doing business,” said FBI Special Agent in Charge Bonavolonta. “Fresenius’s admissions are incredibly concerning because no company should break the law by paying-off international partners to obtain or retain business. We will continue to work with our law enforcement partners to root out corrupt schemes and ensure they do not become common practice at the expense of other hard-working businesses.”
In Angola, Fresenius offered or provided things of value to an Angolan military health officer who exercised authority over the Angolan state-owned military hospital in his role as an officer in the Medical Services Division of the Angolan Armed Forces and his family, as well as prominent Angolan government-employed nephrologists. Specifically, Fresenius offered these individuals shares in a joint venture in Fresenius’s local subsidiary, specifically, 15 percent to the Angolan military health officer and 15 percent to a publicly employed doctor, storage contracts with a company owned by the sons of the Angolan military health officer, to provide warehousing space, however, no Fresenius products were ever stored at the warehouse, and consultancy agreements with publicly employed doctors for which no services were ever performed, all for the purpose of securing an improper advantage and assisting Fresenius with obtaining and retaining business in Angola.
In Saudi Arabia, Fresenius offered or provided things of value to Saudi Arabian health officials and publicly employed doctors who directed or were employed by a Saudi medical organization and a governmental charity. Specifically, Fresenius engaged in a check-cashing scheme where employees were directed to cash checks that had been made payable in their names and return the cash to the general manager of Fresenius’s distributor and agent where he [the agent] then arranged to have the cash delivered to Saudi government doctors and others. In addition, publicly employed doctors were awarded sham consulting and commission agreements for which no services were ever performed. Fresenius also entered into fake collection commission agreements, made payments to a government charity, and gave gifts and made payments to publicly employed doctors for travel with no business or educational justification, the company admitted.
In Morocco, Fresenius paid bribes through a sham commission to a Moroccan state official for the purpose of obtaining contracts to develop kidney dialysis centers at Moroccan state-owned military hospitals. The sham commission would pay 10 percent of the value of the contract to the Moroccan state official and was disguised as a bonus payment to a Fresenius employee. In Spain, Fresenius entered into fictitious consulting agreements with publicly employed doctors or professionals who could influence or provide information about public tenders. For example, between 2008 and 2011, Fresenius paid a publicly employed doctor more than €81,000 without a consulting agreement or contract in place. This publicly employed doctor was the head of nephrology at a Spanish state-owned hospital that ultimately awarded Fresenius a tender in 2011. Further, Fresenius gave gifts or provided other benefits such as travel to medical conferences, and made donations to fund projects for the doctors, the company admitted. In Turkey, Fresenius entered into joint ventures with publicly employed doctors in exchange for those doctors directing business from their public employer to Fresenius clinics in Turkey. For example, in or around 2006, Fresenius entered into a joint venture with a publicly employed Turkish doctor, who received 35 percent of the joint venture shares (worth approximately $74,000 at the time) at the time it was formed. In 2010, Fresenius purchased the doctor’s shares and never required the doctor to pay for his shares in the joint venture resulting in $356,000 profit to the doctor. In West Africa, Fresenius knowingly paid bribes to publicly employed health officials and government-employed doctors in numerous countries, including Benin, Burkina Faso, Cameroon, the Ivory Coast, Niger, Gabon, Chad and Senegal. For example, Fresenius employees met with representatives of a Gabon state-owned hospital and proposed a five-year agreement that would include the “prices plus the commission” that the officials would receive for each kit sold. A Fresenius employee responsible for sales in West Africa reported that the agreement would provide for a €12 commission for each kit sold, which was intended as a “commission for the three persons who sign the contract with us.” Fresenius paid these bribes through a combination of direct payments, payments through third parties and payments through a third-party distributorship, all to obtain and retain business in those countries, the company admitted.
In total, Fresenius admitted to earning more than $140 million in profits from the corrupt schemes.
To resolve the case, Fresenius entered into a nonprosecution agreement (NPA) with the Department and agreed to pay a total criminal penalty of $84,715,273. As part of the NPA, Fresenius also agreed to continue to cooperate with the Department’s investigation, enhance its compliance program, implement rigorous internal controls and retain an independent corporate compliance monitor for at least two years.
The Department reached this resolution based on a number of factors. Notably, although Fresenius voluntarily self-disclosed the misconduct in April 2012, the company did not timely respond to certain requests by the Department and, at times, did not provide fulsome responses to requests for information. In addition, misconduct occurred in 13 countries, yielded profits of more than $140 million and continued in certain countries until 2016. Moreover, the company has not yet had the opportunity to test the effectiveness of its compliance enhancements. In light of all the factors, the company did not qualify for a declination under the Corporate Enforcement Policy; however, the company was afforded a reduction of 40 percent below the low end of the U.S. Sentencing Guidelines fine range. As part of the resolution, the company agreed to an independent compliance monitor for a term of two years, followed by an additional year of self-reporting to the Department.
Fresenius settled a related FCPA matter with the U.S. Securities and Exchange Commission (SEC) today, and will pay $147 million in disgorgement and prejudgment interest to the SEC, which the Department credited in its resolution, bringing the total amount paid by Fresenius to over $231 million.
This case is being investigated by the FBI’s International Corruption Squad in New York and the FBI’s Boston Field Office. Trial Attorneys Paul A. Hayden and Sonali D. Patel of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jordi de Llano of the District of Massachusetts are prosecuting the case.
The Department appreciates the significant cooperation and assistance provided by the SEC in this matter.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s Fraud Section FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Dorchester Man Charged with Distribution of HeroinRead the Press Release
BOSTON – A Dorchester man was charged on Wednesday, March 27, 2019, in federal court in Boston with distributing heroin.
John Doe, a/k/a “Manny,” whose true identity is unknown, was indicted by a federal grand jury for distribution of heroin. Doe was arrested on March 1, 2019, and charged by criminal complaint. He has been in custody since his arrest on March 1, 2019.
According to court documents, in September 2018, federal agents began investigating Doe for drug trafficking violations. On four separate occasions between Sept. 26, 2018, and Nov. 28, 2018, law enforcement conducted undercover controlled purchases of heroin from Doe.
The charge of distribution of heroin carries a sentence of no greater than 20 years in prison, at least three years of supervised release, and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division, made the announcement. Assistance was provided by the Massachusetts State Police and the Attleboro, Norton, and Mansfield Police Departments. Assistant U.S. Attorney Alathea E. Porter of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
CareWell Urgent Care Center Agrees to Pay $2 Million to Resolve Allegations of False Billing of Government Health Care ProgramsRead the Press Release
BOSTON – The United States Attorney’s Office announced today that CareWell Urgent Care Centers of MA, P.C., CareWell Urgent Care of Rhode Island, P.C., and Urgent Care Centers of New England Inc. (CareWell), the owners and operators of urgent care centers located throughout Massachusetts and Rhode Island, have agreed to pay $2 million to resolve allegations that they violated the False Claims Act by submitting inflated and upcoded claims to Medicare, Massachusetts Medicaid (MassHealth), the Massachusetts Group Insurance Commission (GIC), and Rhode Island Medicaid.
Urgent care centers receive payment for Evaluation and Management (E/M) services by submitting Current Procedural Terminology (CPT) codes which reflect the level of E/M service performed. The level of E/M service is determined, in part, by the number of 14 possible body systems (e.g. cardiovascular, gastrointestinal, neurological, etc.) a physician, nurse practitioner, or other medical professional must review and examine to diagnose and treat a patient’s specific medical complaints. Generally, the more complex a patient’s medical complaints are, the more body systems may need to be reviewed, reflecting a higher level of E/M service performed. Urgent care centers are required to submit CPT codes for E/M services that are reasonable and medically necessary for an urgent care center to perform in light of the history of, examination into, and medical decision-making required for a patient’s medical complaints. In addition, urgent care centers must submit claims that properly identify whether a nurse practitioner, without the direct supervision of a physician, performed the E/M service in order to accurately determine the amount of payment they should receive.
The United States, the Commonwealth of Massachusetts, and the state of Rhode Island allege that, between March 1, 2013, and August 31, 2018, CareWell submitted false claims to Medicare, MassHealth, GIC, and Rhode Island Medicaid by falsely inflating the level of E/M services performed and by failing to properly identify the providers of E/M services. The governments contend that CareWell accomplished its fraud in several ways, including mandating that medical personnel examine and document at least 13 body systems during medical history inquiries, and at least nine body systems during physical examinations, even if patients’ specific medical complaints or symptoms did not justify such a comprehensive inquiry or examination.
CareWell instructed medical personnel to use encounter plan templates, loaded onto electronic medical records software, containing “yes or no” questions that CareWell directed its personnel to ask patients regarding specific body systems, even when such inquiries were not medically necessary. Even if medical personnel failed to ask a patient every question in an encounter plan template, the template contained a default “no” response to each inquiry. CareWell used the default “no” responses to assert that the associated body systems had been examined and billed accordingly, even when no such examination had occurred. The governments also allege that CareWell’s management told its medical personnel that the mandate of examining body systems unrelated to a patient’s specific medical complaints or symptoms was a requirement imposed by a malpractice insurance carrier, even though CareWell knew that no malpractice insurance carrier had ever imposed such a requirement on CareWell. In addition, the governments contend that CareWell failed to reduce the amounts of its claims to Medicare, MassHealth, GIC, and Rhode Island Medicaid for services performed by unsupervised nurse practitioners.
“The CareWell urgent care centers engaged in a calculated scheme to reap unjustified economic benefit for their own gain from precious government healthcare resources,” said United States Attorney Andrew E. Lelling. “Today’s result reinforces this office’s commitment to take action against providers that have defrauded government healthcare programs.”
“Inflating bills and submitting claims to government health insurance programs for needless services drains resources from legitimate patient care,” said Phillip Coyne, Special Agent in Charge, Office of Inspector General of the U.S. Department of Health and Human Services. “Those seeking to enrich themselves at the expense of these taxpayer-funded programs must be held accountable.”
This civil settlement resolves allegations brought forth in a whistleblower lawsuit filed by a former employee of CareWell, Aileen Cartier, under the qui tam provisions of the False Claims Act, which permits private individuals, known as relators, to sue on behalf of the government for false claims and to share in any recovery. In connection with today’s announced settlement, Ms. Cartier will receive 17 percent of the recovery.
U.S. Attorney Lelling and HHS-OIG SAC Coyne made the announcement today. This case was handled by Assistant U.S. Attorney Steven Sharobem of Lelling’s Civil Division, Assistant Attorneys General Cassandra Arriaza, Jennifer Goldstein, and Ali Russo from the Massachusetts’ Attorney General’s Office and Assistant Attorney General James Dube of the Rhode Island’s Attorney General’s Office.
Three Boston Men Charged with Armed Robberyof Brockton Cell Phone StoreRead the Press Release
BOSTON – Three Boston men were charged yesterday in federal court in Boston in connection with the robbing a T-Mobile store in Brockton and shooting at police officers as they fled the scene.
Diovanni Carter, 29, Darius Carter, 28, and Stephan Rosser-Stewart, 26, were indicted yesterday on charges of interference with commerce by robbery; conspiracy to interfere with commerce by robbery; discharging, brandishing, using and carrying a firearm during the commission of a crime of violence; and being felons in possession of firearms and ammunition. The defendants were previously charged by the state. The Court has not yet scheduled an arraignment date.
On Jan. 26, 2019, Darius Carter and Rosser-Stewart entered a T-Mobile store in Brockton at approximately 7:11 p.m. It is alleged the men were carrying a semi-automatic firearm, which they pointed at the store manager as they demanded cash and electronics. Darius Carter struck the store manager in the head with a firearm as he demanded that the manager open the door to a rear room with a large safe containing cell phones and cash. The men allegedly stole approximately $25,000 in cash and electronics, left the store, and fled in a getaway vehicle driven by Diovanni Carter, who is alleged to be the leader of the group and orchestrated the plan.
Brockton Police responded and located the getaway vehicle. A high speed chase ensued that reached over 70 mph in residential neighborhoods. During the chase, Darius Carter and Rosser-Stewart allegedly fired nine rounds at the pursuing police cruisers.
Law enforcement apprehended Darius Carter and Rosser-Stewart and recovered the stolen phones, cash, and three firearms used in robbery. The defendants were wearing clothes consistent with those worn in store video surveillance. Diovanni Carter remained a fugitive until March 5, 2019, when he was apprehended by law enforcement.
All of the charged defendants were prohibited from possessing firearms and ammunition due to prior criminal convictions.
The charge of interference with commerce by robbery provides for a sentence of no greater than 20 years in prison, five years of supervised release, and a fine of up to $250,000. The charge of being a felon in possession of ammunition provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000. The charge of use of a firearm during the commission of a crime of violence provides for a sentence of up to life in prison, and a mandatory consecutive term of imprisonment ranging from five years for the possession of a firearm, seven years for the brandishing of a firearm, and 10 years for the discharge of a firearm. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; John Gibbons, U.S. Marshal of the District of Massachusetts; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Plymouth County District Attorney Timothy J. Cruz; Plymouth County Sheriff Joseph D. McDonald Jr.; and Brockton Police Chief John Crowley made the announcement today. Assistant U.S. Attorneys Philip Mallard and John Wortmann of Lelling’s Organized Crime and Gang Unit are prosecuting the case.
This prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The details contained in the indictments are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Yale University Coach Pleads Guilty to Accepting Bribes to Facilitate Admissions to YaleRead the Press Release
BOSTON – The former Yale University women’s soccer coach pleaded guilty today in federal court in Boston in connection with accepting bribes to facilitate the admission of students to Yale as recruited athletes.
Rudolph “Rudy” Meredith, 51, of Madison, Conn., pleaded guilty to one count of conspiracy to commit wire fraud and honest services wire fraud and one count of wire fraud and honest services wire fraud. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for June 20, 2019 at 2:30 p.m.
From 1995 through November 2018, Meredith was employed as the head women’s soccer coach at Yale University. Beginning in April 2015, Meredith agreed with William “Rick” Singer, 58, of Newport Beach, Calif., to accept bribes in exchange for designating applicants to Yale as recruits for the Yale women’s soccer team, and thereby facilitating their admission to the University.
In early November 2017, Singer received an email indicating that an individual wished to make a “donation” to “one of those top schools” for his daughter’s “application.” Singer sent the resume and personal statement of the client’s child to Meredith and stated that he would “revise” the materials to “soccer.” Singer then sent Meredith an athletic “profile” that falsely described the child as the co-captain of a prominent soccer club team in southern California. Meredith subsequently designated the child as a recruit for the Yale women’s soccer team – thereby facilitating her admission to Yale – despite the fact that the child did not play competitive soccer. On Jan. 1, 2018, after the child was admitted to Yale, Singer mailed Meredith a check for $400,000 from the account of his purported charitable organization, Key Worldwide Foundation (KWF). During the summer of 2018, relatives of the applicant paid Singer $1.2 million in multiple installments.
On April 12, 2018, Meredith met with the father of another prospective Yale applicant in a Boston hotel room. During the recorded meeting, Meredith stated that he would designate the child as a recruit for the Yale women’s soccer team in exchange for $450,000. At the meeting, Meredith accepted $2,000 in cash as a partial payment and provided bank account information for future payments.
On March 22, 2019, Singer pleaded guilty to racketeering conspiracy, money laundering conspiracy, conspiracy to defraud the United States, and obstruction of justice. He is scheduled to be sentenced on June 19, 2019, at 2:00 p.m. in Boston.
The charges of conspiracy to commit wire fraud and honest services wire fraud, and honest services wire fraud and wire fraud, provide for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie Wright, and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit are prosecuting the case.
Dominican National Sentenced for Social Security FraudRead the Press Release
BOSTON – A Dominican national was sentenced yesterday in federal court in Boston.
Fausto Junior Feliz Feliz, 41, a Dominican national formerly residing in Malden, was sentenced by U.S. District Court Judge Denise J. Casper to 12 months in prison and three years of supervised release. Feliz Feliz will be subject to deportation proceedings upon completion of his sentence. In January 2019, Feliz Feliz pleaded guilty to one count of false representation of a Social Security number. He was arrested and charged in a July 2018 federal law enforcement sweep of 25 individuals accused of document and benefit fraud.
Dubbed “Double Trouble,” the July 2018 investigation was aimed at detecting, deterring and disrupting organizations and individuals involved in various types of document, identity and benefit fraud schemes.
On Sept. 3, 2015, Feliz Feliz, applied for a Massachusetts identity card using the name, Social Security number, and date of birth of a Puerto Rican citizen. He supported his application with a Puerto Rican birth certificate and a Social Security card in the other person’s name. Based on the application and supporting identity documents, Feliz Feliz was issued a Massachusetts identity card in the name of the Puerto Rican citizen.
United States Attorney Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General, Office of Investigations; Adam Schneider, Acting Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations; William B. Gannon, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Massachusetts State Auditor Suzanne M. Bump made the announcement. Assistant U.S. Attorney Patrick Callahan of Lelling’s Criminal Division prosecuted the case.
Canton Man Indicted for Armed RobberyRead the Press Release
BOSTON – A Canton man was indicted today in federal court in Boston in connection with multiple armed robberies in Canton and Mattapan.
Jerron Perry, 27, was charged with three counts of interference with commerce by robbery and one count of being a felon in possession of ammunition. Perry was arrested on Feb. 28, 2019, and charged by complaint; he has been in custody since.
According to the charging documents, on Sept. 22, 2018, Perry, wearing a mask, pointed a semi-automatic pistol at the store clerk of a Metro PCS store in Mattapan and demanded money from the register; he left the store with approximately $607. Perry is alleged to have robbed that same store again in the same manner on Oct. 25, 2018, stealing $359. It is further alleged that Perry committed a similar armed robbery at a 7-11 Convenience Store in Canton on Oct. 31, 2018, stealing an unknown amount of cash.
On Feb. 28, 2019, law enforcement executed a search warrant at Perry’s residence, where they discovered clothing that matched the suspect’s clothes and two shell casings. Due to a 2013 conviction for assault and battery by means of a dangerous weapon, which carries a sentence of more than one year in prison, Perry is prohibited from possessing ammunition.
Each charge of interference with commerce by robbery provides for a sentence of no greater than 20 years in prison, five years of supervised release, and a fine of up to $ 250,000. The charge of being a felon in possession of ammunition provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000. 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; Boston Police Commissioner William Gross; and Canton Police Chief Kenneth Berkowitz made the announcement. Assistant U.S. Attorney Theodore Merritt 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.
Brockton Man Sentenced for Fentanyl DistributionRead the Press Release
BOSTON – A Brockton resident was sentenced yesterday in federal court in Boston to more than four years in prison for fentanyl distribution.
Jorge Monteiro a/k/a “Jay,” 24, was sentenced by U.S. District Court Judge Richard G. Stearns to 51 months in prison and three years of supervised release. In December 2018, Monteiro pleaded guilty to distributing fentanyl.
Monteiro was responsible for distributing 57 grams of fentanyl in June 2018. In addition, during his arrest on Aug. 23, 2018, law enforcement recovered a Glock 9 mm pistol and two metal cylindrical presses. The presses are typically used to press opiates such as heroin or fentanyl into “fingers” for distribution; a finger is typically 10 grams. The government also alleged that Monteiro was an associate of the Perkins Avenue gang in Brockton.
According to the court documents, this case was part of Operation Landshark, a federal investigation that targeted impact players and repeat offenders in Brockton and Boston, each who have prior convictions for acts of violence, firearm offenses and/or drug trafficking. It is alleged that many of the Operation Landshark targets are among the top 30 criminal offenders responsible for violent acts and firearms in Brockton.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Plymouth County District Attorney Timothy J. Cruz; Suffolk County District Attorney Rachael Rollins; Boston Police Commissioner William G. Gross; and Brockton Police Chief John Crowley made the announcement. The investigation was conducted by the FBI’s North Shore Gang Task Force and Southeastern Massachusetts Gang Task Force. Valuable assistance was provided by the Suffolk County Sheriff’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Plymouth and Essex County Sheriff’s Offices; Massachusetts Department of Corrections; U.S. Parole Commission; U.S. Postal Inspection Services; and the U.S. Secret Service.
Operation Landshark 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.
Boston Man Indicted by Federal Grand Jury for Sexual Exploitation of ChildrenRead the Press Release
BOSTON – A Boston man was indicted today by a federal grand jury in Boston for surreptitiously filming boys in the restrooms at Boston Latin School (BLS).
Eric Tran Thai, 36, was indicted on four counts of sexual exploitation of children. His arraignment date will be scheduled by the Court. Thai was arrested on March 11 and charged by complaint. He was ordered detained by the Court on March 19 and has been in custody since.
According to court documents, on Feb. 6 and Feb. 27, 2018, two separate Boston College students reported to the police that they had been videotaped without their knowledge or consent while they were using the men’s restrooms on the Boston College campus. Following the Feb. 27, 2018, report, police located and spoke with Thai, who was then arrested on state charges in Middlesex County Superior Court.
It is alleged that while speaking with police, Thai admitted to “taking some pictures” of a man in the stall next to him without the man’s consent. He further admitted to engaging in such activity for about a year. Thai was placed under arrest on state charges and his bag was subsequently searched; in it, police found several covert camera devices, including faux smoke detectors, a water bottle containing a small cube recording device, and a pair of sunglasses outfitted with a built-in camera.
During a search of Thai’s home on March 1, 2018, law enforcement seized approximately 26 computer hard drives, 20 thumb drives, 27 covert and regular cameras, 14 computers, iPads, and cell phones, and multiple SD and Sim cards. During forensic analysis of the recovered items, investigators found several folders labeled: BU, MIT, Harvard, Northeastern, Bunker Hill, Boston Latin High School, and several different malls, airports, and foreign country locations. Given the amount of data seized by investigators, forensic analysis is ongoing.
It is alleged that the videos contained in folders labeled “Boston Latin High School” contained approximately 45 surreptitiously-recorded videos of male students in various states of dress using the urinals and stalls in a Boston Latin High School boys’ bathroom. The videos appear to have been created on approximately 10 separate dates between February and December 2017.
In general, the videos show Thai sitting in a bathroom stall at Boston Latin High School recording individuals in adjacent stalls or at the urinals through various secret recording methods. In some videos, Thai appears to hold a camera over the top of the partition between the bathroom stalls and videotaping from overhead. In other instances, he appears to hide a small camera inside of his backpack, place the backpack on the bathroom floor and videotape individuals in the adjacent bathroom stall from under the stall’s partition. While recording, it appears that Thai would simultaneously view what the camera was recording on a cellphone or a tablet device in his possession. Based on this evidence, Thai was charged with sexual exploitation of children in violation of federal law.
Members of the public who have questions, concerns, or information about this case should contact the U.S. Attorney’s Office at 617-748-3274.
Each charge of sexual exploitation of children provides for a mandatory minimum 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 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; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Middlesex District Attorney Marian T. Ryan; Boston Police Commissioner William G. Gross; and Boston College Police Chief William B. Evans made the announcement today. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of his 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/.
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.
Whitman Man Arrested for Sexually Exploiting ChildrenRead the Press Release
BOSTON – A Whitman man was arrested and charged yesterday in federal court in Boston with sexual exploitation of children.
Matthew Murphy, 22, was charged with two counts of sexual exploitation of children. Murphy appeared in federal court yesterday afternoon and was detained pending a detention hearing scheduled for today at 3:30 p.m.
According to charging documents, the investigation began when Murphy, posing as a teenage girl, used a Snapchat account to extort nude photographs from a Massachusetts middle school boy. Federal agents obtained portions of the Snapchat account Murphy had created in the fake identity and uncovered evidence of similar extortion of other minors in the area.
During the execution of the search warrant at Murphy’s home, Murphy admitted that the fake account was his, and investigators found forensic evidence of the account on some of his electronic devices. Murphy was subsequently arrested.
Law enforcement is actively working to identify additional victims. Members of the public with questions or information about this matter should call 617-748-3274.
The charges of sexual exploitation of children each provide for a minimum mandatory sentence of 15 years and no greater than 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 court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. The Whitman Police Department provided valuable assistance with the investigation. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of his Major Crimes Unit, is prosecuting the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Springfield Man Pleads Guilty to Distributing Crack CocaineRead the Press Release
BOSTON – A Springfield man pleaded guilty today in federal court in Springfield to distributing crack cocaine.
Alonzo Williams Jr., 31, pleaded guilty to two counts of distribution of crack cocaine before U.S. District Court Judge Mark G. Mastroianni, who scheduled sentencing for June 26, 2019. Williams was arrested and charged in August 2018 and was released on conditions.
Williams admitted that he possessed and distributed crack cocaine to a government witness on Oct. 19, 2017, and Oct. 23, 2017, near his home in Springfield.
Williams faces a sentence of no greater than 20 years in prison, a minimum of three years of supervised release and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Springfield Police Acting Commissioner Cheryl Clapprood; and Holyoke Police Chief Manny Febo made the announcement today. Assistance was provided by the Hampden and Berkshire County Sheriff’s Departments, and the West Springfield and Chicopee Police Departments. Assistant U.S. Attorney Neil L. Desroches of Lelling’s Springfield Branch 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.
Dominican National Charged with Fentanyl Trafficking and Identity TheftRead the Press Release
BOSTON – A Dominican national was charged today in federal court in Boston in connection with trafficking fentanyl, false representation of a Social Security number, and aggravated identity theft.
Omar Lugo, 44, a Dominican national residing in Dorchester, was indicted on two counts of distribution of, and possession with intent to distribute, more than 40 grams of fentanyl. In February 2019, Lugo, whose last name was unknown at the time, was arrested and charged by complaint with aggravated identity theft and false representation of a Social Security number. He has been in custody since.
Between November 2012 and July 2018, Lugo submitted applications for a Massachusetts Identification Card, a Massachusetts Learner’s Permit Exam, and a Massachusetts License using the name, Social Security number, and date of birth of a U.S. citizen from Puerto Rico.
In October 2016 and January 2017, on two separate occasions in Boston, Lugo sold more than 40 grams of fentanyl to a source cooperating with the government.
The charge of distribution of over 40 grams of fentanyl carries a mandatory minimum sentence of five years and no greater than 40 years in prison, a minimum of four years of supervised release, and a fine of up to $5 million. The charge of aggravated identity theft provides for a mandatory two-years in prison to be served consecutive to any other sentence imposed. The charge of false representation of a Social Security number provides for a sentence of no greater than 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 Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The Boston Police Department provided valuable assistance to the investigation. 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.
Former Union Official Pleads Guilty to EmbezzlementRead the Press Release
BOSTON – A former union official pleaded guilty today in federal court in Worcester to embezzlement from Local B-935 of the International Alliance of Theatrical Stage Employees (IATSE).
IIvar Carlson, 58, of Auburn, pleaded guilty to one count of embezzlement from a labor union. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for July 9, 2019. Carlson was charged in December 2018 and released on conditions.
Carlson was the former business agent and treasurer for Local B-935 of the IATSE, which represented workers at the DCU Center in Worcester. From around March 2007 until September 2016, Carlson embezzled approximately $37,014 belonging to Local B-935 by writing checks from the Local B-935’s bank account, cashing those checks, and using the cash for his own personal expenses.
Carlson faces a sentence of no greater than five years in prison, up to three years of supervised release and a fine of up to $10,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Jonathan Russo, District Director, U.S. Department of Labor, Office of Labor-Management Standards, made the announcement today. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Worcester Branch Office is prosecuting the case.
Former Massachusetts State Trooper Sentenced to Three Months in Prison for Overtime FraudRead the Press Release
BOSTON – A former Massachusetts State Trooper was sentenced today in federal court in Boston in connection with the ongoing investigation of overtime abuse at the Massachusetts State Police (MSP).
Gregory Raftery, 47, of Westwood, was sentenced by U.S. District Court Judge William G. Young to 90 days in prison, one year of supervised release, and ordered to pay restitution in the amount of $51,377. In July 2018, Raftery pleaded guilty to one count of embezzling funds from a state agency receiving federal funds.
Raftery admitted that in 2015 and 2016, he was not present and did not work for hundreds of hours of overtime shifts for which he had been paid by the Massachusetts State Police. Raftery admitted that he frequently left overtime shifts early, and, on multiple occasions, did not work overtime shifts at all. To hide his conduct, Raftery submitted bogus motor vehicle citations that were never issued to operators, and then claimed on the citations and internal MSP paperwork that they had been written during overtime shifts that, in reality, Raftery did not work.
Raftery acknowledged that in 2015 he was paid over $24,000, and in 2016, he was paid almost $30,000 for overtime hours that he did not work.
Raftery is the second Trooper to be sentenced as a result of the ongoing investigation. Thus far, eight MSP troopers have been charged and pleaded guilty.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Douglas Shoemaker, Special Agent in Charge of the U.S. Department of Transportation’s Office of Inspector General, made the announcement today. Assistant U.S. Attorneys Dustin Chao and Mark Grady of Lelling’s Public Corruption Unit are prosecuting the case.
Worcester Man Pleads Guilty to Possession of Stolen Firearm and Lying to Firearm DealersRead the Press Release
BOSTON – A Worcester man pleaded guilty today in federal court in Worcester to lying to firearm dealers.
Ruben Ramos, 24, pleaded guilty to two counts of making false statements during the purchase of a firearm, five counts of making false statements in records required to be maintained by a federal firearm dealer, and one count of possession of a stolen firearm. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for July 15, 2019.
In December 2016, Worcester police issued Ramos, an employee of the U.S. Postal Service and member of the Army National Guard, a license to possess firearms. From May 2017 through May 2018, Ramos purchased at least 16 firearms, including 14 pistols and two rifles. On at least five occasions, from March 2018 through May 2018, Ramos knowingly provided a false address to the dealers from whom he purchased seven firearms.
In June 2018, Ramos admitted to federal investigators that he only possessed six of the 16 guns that he purchased over the previous 12 months. Ramos admitted that he lied to firearms dealers on two occasions in May 2018, when he acted as a “straw buyer,” by claiming that he was buying the gun for himself when, in fact, he was buying the guns on behalf of another person. Additionally, in June 2018, investigators found a Beretta 9 mm pistol in Ramos’ residence that was the property of the Army National Guard. Ramos admitted that he had stolen the Beretta 9 mm pistol from the weapons vault at the Army National Guard facility on Plantation Street in Worcester.
The charges of making a false statement during the purchase of a firearm and possession of a stolen firearm each provide for a sentence of no greater than 10 years in prison, up to three years of supervised release, and a fine of up to $250,000. The charges of making a false statement in records required to be maintained by a federally licensed firearm dealer provide for a sentence of no greater than five years in prison, up to three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, & Explosives, Boston Field Division; and Worcester Police Chief Steven Sargent made the announcement today. Assistant U.S. Attorney Greg A. Friedholm of Lelling’s Worcester Branch Office is prosecuting the case.
Massachusetts State Trooper Sentenced for Overtime Abuse InvestigationRead the Press Release
BOSTON – A suspended Massachusetts State Police Trooper was sentenced today in federal court in Boston in connection with the ongoing investigation of overtime abuse at the Massachusetts State Police (MSP).
Eric Chin, 46, of Hanover, was sentenced by U.S. District Court Judge Richard G. Stearns to one day in prison, deemed served, and one year of supervised release with three months to be served in home detention. Chin was also ordered to pay restitution in the amount of $7,125. In December 2018, he pleaded guilty to one count of embezzlement from an agency receiving federal funds.
Chin was an MSP Trooper assigned to Troop E, which was responsible for enforcing criminal and traffic regulations along the Massachusetts Turnpike, Interstate I-90. In 2016, Chin earned $302,400, which included approximately $131,653 in overtime pay.
Chin was paid for overtime hours that he did not work and for at least one four-hour shift that he did not work at all. Chin concealed his fraud by submitting fraudulent citations designed to create the appearance that he had worked overtime hours that he had not, and, falsely claimed in MSP paperwork and payroll entries that he had worked the entirety of his overtime shifts.
Chin admitted collecting $7,125 for overtime hours that he did not work.
The overtime in question involved the Accident and Injury Reduction Effort program (AIRE), which was intended to reduce accidents, crashes, and injuries on I-90 through an enhanced presence of MSP Troopers who were to target vehicles traveling at excessive speeds.
Chin is the first Trooper to be sentenced as a result of the ongoing investigation. Thus far, eight MSP troopers have been charged and have pleaded guilty. Seven are awaiting sentencing.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Douglas Shoemaker, Special Agent in Charge of the U.S. Department of Transportation’s Office of Inspector General made the announcement today. Assistant U.S. Attorneys Dustin Chao and Mark Grady of Lelling’s Public Corruption Unit are prosecuting the cases.
Dominican National Sentenced for Fentanyl ConspiracyRead the Press Release
BOSTON – A Dominican national was sentenced yesterday in federal court in Boston for fentanyl conspiracy.
Maximo Diaz Tejada, 44, a Dominican national residing in Lawrence, was sentenced by Chief U.S. District Court Judge Patti B. Saris to 70 months in prison. Diaz Tejeda will be subject to deportation upon completion of his sentence. In November 2018, Diaz Tejada pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute 400 grams or more of fentanyl, one count of possession with intent to distribute 400 grams or more of fentanyl, and one count of unlawful reentry of a deported alien.
On Dec. 14, 2017, Diaz Tejada and his co-conspirator delivered over half a kilogram of fentanyl to an undercover officer. Law enforcement executed a search warrant at Diaz Tejada’s residence in Lawrence, where they seized an additional 977 grams of fentanyl, 141 grams of heroin, 103 grams of Tramadol, and a small amount of cocaine, as well as drug packaging tools and materials. Diaz Tejada was previously deported from the United States in October 2013 and used multiple aliases while he was in the United States.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. Assistant U.S. Attorney Philip Cheng of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
Orleans Investment Adviser Sentenced for Multi-Million Dollar Fraud and Identity TheftRead the Press Release
BOSTON – An Orleans investment adviser was sentenced yesterday in federal court in Boston for defrauding her clients of more than $3 million and using those funds for her own expenses.
Kimberly Kitts, 51, was sentenced by U.S. District Court Judge Denise J. Casper to 87 months in prison and three years of supervised release. In November 2018, Kitts pleaded guilty to an Information charging her with one count of investment adviser fraud, four counts of wire fraud and one count of aggravated identity theft.
Beginning in 2011, Kitts engaged in various schemes to misappropriate her clients’ assets in order to pay her personal expenses. In one scheme, she directed client assets to a bank account for Marquis Consulting, an entity she controlled. In another scheme, Kitts used her position as an investment adviser to divert her clients’ funds to her own account and then took the funds for her own personal use. This included cashing her clients’ annuities, transferring funds out of her clients’ brokerage accounts and directing distributions from her clients’ Individual Retirement Accounts. In total, Kitts misappropriated approximately $3,085,939 from her clients.
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 U.S. Securities & Exchange Commission provided valuable assistance with the investigation. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Securities and Financial Fraud Unit prosecuted case.