District of Massachusetts
Press releases recorded for this federal judicial district.
Westfield Man Charged with 17 Counts of Fraud and Money LaunderingRead the Press Release
BOSTON - A Westfield man was charged in federal court in Springfield today in connection with a scheme to obtain bank loans and money for projects in Saudi Arabia.
Hanibal Tayeh, 58, was charged in a superseding indictment with two counts of bank fraud, 10 counts of wire fraud, four counts of money laundering, and one count of making a false bankruptcy declaration. Tayeh was originally charged and arrested in July 2018 and released on personal recognizance.
According to the charging documents, Tayeh is alleged to have used fake documents, misrepresentations, and a number of corporate entities to obtain a $9.1 million loan package, and later a $400,000 extension of credit, from a bank. A number of the fake documents and misrepresentations pertained to a business venture Tayeh was pursuing in Saudi Arabia. It is further alleged that Tayeh financially defrauded three individuals by providing them with fake documents and by making misrepresentations about construction projects he was pursuing in Saudi Arabia. Tayeh is accused of laundering the proceeds of his fraud schemes through payments made to third parties for his personal obligations. Finally, Tayeh was charged with making a false statement during a bankruptcy proceeding when he allegedly denied knowledge of a fake letter of credit that he created.
The charge of bank fraud provides for a sentence of no greater than 30 years in prison, five years of supervised release, and a $1 million fine. The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a $250,000 fine. The charge of money laundering provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a $250,000 fine. The charge of false bankruptcy declaration provides for a sentence of no greater than five years in prison, three years of supervised release, and a $250,000 fine. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Owner and Four Former Employees of New England Compounding Center Convicted Following TrialRead the Press Release
BOSTON – An owner and four former employees of New England Compounding Center (NECC) were convicted today by a federal jury for their roles at NECC, the company that caused the 2012 nationwide fungal meningitis outbreak. The outbreak was the largest public health crisis ever caused by a pharmaceutical drug. With today’s convictions, 11 former owners, executives, and employees of NECC have been convicted of federal criminal charges.
“These defendants were professionals who acted recklessly to the extreme detriment of public health,” said United States Attorney Andrew Lelling. “Over the course of years, the defendants callously disregarded patient health by cutting corners and prioritizing profits over safety. And they got away with it by defrauding federal and state regulators. The result was contaminated, deficient, deadly drugs that never should have been made or distributed. Ultimately, the jury found the defendants’ fraudulent conduct wrong and deserving of punishment. I applaud the prosecutors and the investigative team on their dogged determination to bring us another step closer to justice for the victims and their families.”
“A key aspect of the FDA’s mission is to ensure that drugs are made under high quality conditions to prevent patient harm due to poorly compounded products,” said FDA Commissioner Scott Gottlieb, M.D. “This episode was a tragic reminder of why compounding and compounded drugs can present serious risks to patients. We’ve taken significant new steps to ensure the quality of compounded drugs and improve patient safety, in order to prevent another calamity like the episode involving NECC. However, we continue to see significant risk associated with some compounded drugs, and firms that produce and ship drugs in bulk without any regard for product quality and patient safety. We’re increasing our oversight in this space to crack down on activity that puts patients at risk. At the same time, we’re continuing to advance new policies to help responsible firms that are seeking to stay in compliance with quality standards find efficient ways to meet those requirements.”
“These defendants callously ignored their professional responsibilities to protect patient safety,” said Harold H. Shaw, Special Agent in Charge of the FBI Boston Division. “Their failure to safeguard the public played a significant role in the distribution of medicines that were harmful. The FBI will continue to work with our law enforcement partners to combat fraud and abuse in the health care system, so that we can do everything we possibly can to protect the American public from harm.”
Following an 8-week trial, the following defendants were found guilty by a federal jury:
Gene Svirskiy, 37, of Ashland, Mass., a former NECC clean room pharmacist, who supervised NECC’s production of high-risk heart medications, was convicted of racketeering, racketeering conspiracy, 10 counts of mail fraud, and two counts of introduction of adulterated drugs into interstate commerce with intent to defraud or mislead. Judge Richard G. Stearns scheduled Svirskiy’s sentencing for March 11, 2018. Svirskiy faces a sentence of no greater than 20 years in prison.
Christopher Leary, 34, of Shrewsbury, Mass., an NECC clean room pharmacist, was convicted of three counts of mail fraud, one count of introduction of adulterated drugs into interstate commerce with intent to defraud or mislead, and two counts of introduction of misbranded drugs into interstate commerce. Leary’s sentencing is scheduled for March 14, 2018. Leary faces a sentence of no greater than 20 years in prison.
Sharon Carter, 54, of Hopkinton, Mass., NECC’s former director of operations, was convicted of conspiracy to defraud the United States. Carter’s sentencing is scheduled for March 21, 2018. She faces a sentence of no greater than five years in prison.
Alla Stepanets, 38, of Framingham, Mass., one of NECC’s verification pharmacists, was convicted of six counts of introduction of misbranded drugs into interstate commerce. Sentencing is scheduled for March 26, 2018. She faces a sentence of no greater than one year in prison.
Greg Conigliaro, 53, of Southborough, Mass., a former owner of NECC, was convicted of conspiracy to defraud the United States. Judge Stearns scheduled Conigliaro’s sentencing for March 28, 2018. He faces a sentence of no greater than five years in prison.
Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Joseph Evanosky, 46, of Westford, Mass., a former clean room pharmacist, was acquitted.
In 2012, 753 patients in 20 states were diagnosed with a fungal infection after receiving injections of preservative-free methylprednisolone acetate (MPA) manufactured by NECC. Of those 753 patients, the U.S. Centers for Disease Control and Prevention (CDC) reported that 64 patients in nine states died. The government has since identified a total of 793 patients throughout the country harmed by NECC’s contaminated MPA. More than 100 patients have now died.
The criminal investigation revealed that in addition to the contaminated MPA, NECC’s other pharmacists, including Svirskiy and Leary, knowingly made and sold numerous drugs in a similar unsafe manner and in insanitary conditions. The unsafe manner included, among other things, the pharmacists’ failure to properly sterilize NECC’s drugs, failure to properly test NECC’s drugs for sterility, and failure to wait for test results before sending the drugs to customers. They also approved the use of expired drug ingredients, and the mislabeling of those drugs in order to deceive customers. The insanitary conditions included, among other things, NECC’s lack of proper cleaning and NECC’s failure to take any action when its own environmental monitoring repeatedly detected mold and bacteria within NECC’s clean rooms throughout 2012.
NECC repeatedly took steps to shield its operations from regulatory oversight by the FDA by claiming to be a pharmacy dispensing drugs pursuant to valid, patient-specific prescriptions. In fact, NECC routinely dispensed drugs in bulk without valid prescriptions. Despite this practice, Conigliaro, an owner of NECC, repeatedly misrepresented to the FDA and the Massachusetts Board of Pharmacy that NECC was only dispensing drugs pursuant to patient-specific prescriptions. Carter, NECC’s director of operations, directed employees to engage in a number of fraudulent prescription schemes to deceive regulators by creating the appearance that NECC had prescriptions for the drugs it was selling. To that end, defendant Stepanets, one of NECC’s verification pharmacists, was convicted of approving shipments of drugs for patients with names such as Wonder Woman, Fat Albert, Bud Weiser, Samuel Adams, Hindsight Man, Betty Ford, Jimmy Carter, Bill Clinton, Donald Trump, Calvin Klein and Jennifer Lopez.
“Today’s verdicts demonstrate the ongoing commitment of the Defense Criminal Investigative Service (DCIS) to ensure the integrity of TRICARE, the U.S. Defense Department’s health care program,” stated Special Agent-in-Charge Leigh-Alistair Barzey, DCIS Northeast Field Office. “DCIS will continue to work with its law enforcement partners and the U.S. Attorney's Office to identify individuals and companies who disregard laws and regulations involving pharmaceuticals and, in so doing, endanger the health and safety of U.S. military members and their families.”
“It is appalling that NECC staff engaged in this blatant fraudulent activity with such reckless disregard for patient safety,” said Sean Smith, Special Agent in Charge of the Department of Veterans Affairs Office of Inspector General, Criminal Investigations Division. “This verdict should send a clear message to individuals and businesses that VA OIG and its law enforcement partners will vigorously investigate healthcare fraud that puts the public and veterans at risk.”
“Today’s verdicts demonstrate the commitment of the U.S Postal Inspection Service to bring justice to those who put our customers, the American public, at risk,” said U.S. Postal Inspection Service’s Inspector in Charge, Joseph W. Cronin of the Boston Division. “The cooperation and hard work of our fellow law enforcement agencies and the Department of Justice illustrates the common mission of protecting our citizens.”
In June 2017, Barry Cadden, the former owner and head pharmacist for NECC, was sentenced to nine years in prison and three years of supervised release after being convicted of racketeering, racketeering conspiracy, mail fraud and introduction of misbranded drugs into interstate commerce with the intent to defraud and mislead. In January 2018, Glenn Chin, NECC’s former supervisory pharmacist, was sentenced to eight years in prison and two years of supervised release after being convicted of 77 counts.
Two remaining defendants, Kathy Chin, and Michelle Thomas, of Cumberland, R.I., both of whom were former verification pharmacists, are scheduled to stand trial on March 25, 2019.
U.S. Attorney Lelling, FDA Commissioner Gottlieb, M.D., FBI SAC Shaw, DCIS SAC Barzey, VA OIG SAC Smith, and Inspector Cronin made the announcement today. Assistant U.S. Attorneys George P. Varghese and Amanda P.M. Strachan of Lelling’s Criminal Division prosecuted the case.
Canadian Accountant Sentenced for Stealing Nearly $600,000 from Massachusetts CompanyRead the Press Release
BOSTON – A Canadian national who worked as an accountant for a Massachusetts company was sentenced today in federal court in Boston for stealing nearly $600,000 from her employer.
Thanh Tam Tao Huynh, a/k/a Tiffany Huynh, 30, most recently of Quincy, Mass., was sentenced by U.S. District Court Judge Denise J. Casper to 30 months in prison and ordered to pay restitution of $588,278. Huynh will be deported upon completion of her sentence. In June 2018, Huynh pleaded guilty to two counts of wire fraud.
Huynh was employed as the accountant/bookkeeper by her employer from approximately March 2016 through December 2017. Huynh used her position and access to the company’s bank accounts to wire about $425,000 from a company account held by the Royal Bank of Canada to accounts in the United States that Huynh and her associates controlled. She also used a company credit card to make unauthorized purchases for herself and her friends. To conceal her actions, Huynh provided her employer with false balance information for the Canadian account and withheld the personal charge information from the credit card statements she submitted for review. In total, Huynh defrauded her employer of approximately $588,278.
United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Mark J. Balthazard of Lelling’s Securities and Financial Fraud Unit prosecuted the case.
Pennsylvania Man Pleads Guilty to International Email Impersonation and Fraud ScamRead the Press Release
BOSTON – A Pennsylvania man pleaded guilty yesterday in federal court in Boston in connection with a scam in which he and co-conspirators defrauded victims by pretending to be employees of the Securities and Exchange Commission (SEC).
Frank Gregory Cedeno, 27, of Mahanoy City, Penn., pleaded guilty to conspiracy to commit wire fraud and conspiracy to commit money laundering. U.S. District Court Senior Judge George A. O’Toole, Jr. scheduled sentencing for March 21, 2019. In January 2018, Cedeno was charged and arrested.
From at least November 2015 through November 2017, Cedeno conspired with others to defraud victims by pretending to be employees of the SEC, demanding money from victims and directing them to send it to members of the conspiracy, including Cedeno, who was then living in Ocoee, Fla. The conspirators who received the money generally withdrew it from bank accounts quickly, then forwarded much of it to individuals in the Dominican Republic. In one common version of the scam, victims received e-mails that used official-seeming documentation and the SEC seal to induce the victim to pay a fee in order to receive a portion of a legal settlement. In another version, victims received e-mails and official-seeming documents labeling the victim a defendant in a civil lawsuit, in which the victim owed tens of thousands of dollars in supposed disgorgement, penalties and fees. The documents gave the victim a choice of either appearing in court to contest the lawsuit or paying a smaller fee.
In August 2018, co-conspirator Leonel Alexis Valerio Santana, 28, of Boston, was sentenced to 63 months in prison, three years of supervised release, and ordered to pay restitution of $105,869 after pleading guilty to his role in the scheme.
The charge of conspiracy to commit wire fraud provides for a sentence no greater than 20 years in prison, three years of supervised release, a fine of up to $250,000, or twice the gross gain or loss in the offense, and restitution. The charge of money laundering conspiracy provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $500,000 or twice the value of the funds involved in the money laundering, whichever is greater. 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; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Carl W. Hoecker, Inspector General of the U.S. Securities and Exchange Commission’s Office of Inspector General; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorney Brian A. Pérez-Daple of Lelling’s Criminal Division is prosecuting the case.
Milford Woman Sentenced for Stealing $2.6 Million from EmployerRead the Press Release
BOSTON – A Milford woman was sentenced today in federal court in Boston for stealing approximately $2.6 million from her employer and using the money to purchase luxury items at Boston-area boutiques.
Debra Mulloy, a/k/a Debra Depaul, 58, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 69 months in prison, three years of supervised release and ordered to pay restitution in the amount of $2,654,346. In July 2018, Mulloy pleaded guilty to two counts of wire fraud and one count of aggravated identity theft.
From 2004 through 2016, Mulloy was responsible for most of the financial and organizational duties at the company for which she was employed. On multiple occasions from April 2012 to December 2016, Mulloy used the company’s credit card account in the name of another employee to make hundreds of unauthorized charges totaling nearly $2.4 million. Most of those unauthorized purchases were for clothing, furs, and jewelry at boutique stores in the Boston area. Mulloy then sold many of the luxury items at consignment shops. As part of her scheme, Mulloy also caused company checks to be issued for her personal benefit, primarily to pay her personal credit card bills. In total, Mulloy defrauded her employer of approximately $2.6 million.
United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Mark J. Balthazard of Lelling’s Securities and Financial Fraud Unit prosecuted the case.
Massachusetts State Trooper Pleads Guilty in Overtime Abuse InvestigationRead the Press Release
BOSTON – A suspended Massachusetts State Police Trooper pleaded guilty today in connection with the ongoing investigation of overtime abuse at the Massachusetts State Police (MSP).
Eric Chin, 46, of Hanover, pleaded guilty to one count of embezzlement from an agency receiving federal funds. U.S. District Court Judge Richard G. Stearns scheduled sentencing for March, 20, 2018. In October 2018, Chin was charged by Information and agreed to plead guilty pursuant to a plea agreement.
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 shifts that he did not work at all or from which he left early. 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.
In 2016, MSP received annual benefits from the U.S. Department of Transportation in excess of $10,000, which were funded pursuant to numerous federal grants.
Chin is the fifth Trooper to plead guilty as a result of the ongoing investigation. On July 2, 2018, former Trooper Gregory Raftery, 47, of Westwood pleaded guilty; on Sep. 14, 2018, suspended Trooper Kevin Sweeney, 40, of Braintree pleaded guilty; on Oct. 11, 2018, suspended Trooper Gary Herman, 45, of Chester, pleaded guilty; and, on Nov. 28, 2019, former Trooper Paul Cesan pleaded guilty.
The U.S. Attorney’s Office announced earlier today that David Wilson and Daren DeJong, who were each previously charged on June 27, 2018, and July 25, 2018, respectively, have agreed to plead guilty. Dates for those plea hearings have not yet been set.
Pursuant to Chin’s plea agreement, the government will recommend a sentence of between six and 12 months of incarceration. The charge of theft of government 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. 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; Harold H. Shaw, 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.
The details contained in the court documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Chairman of Boston-Based Biomedical Company Sentenced for Making False StatementsRead the Press Release
BOSTON – The former chairman of a Boston-based biomedical company, previously called Endeavor Power Corp., was sentenced today for making false statements to the U.S. Securities and Exchange Commission (SEC) in connection with the SEC’s investigation into a scheme to defraud the market for Endeavor’s publicly traded stock.
Edward Withrow III, 53, of Malibu, Calif., was sentenced by U.S. District Court Chief Judge Patti B. Saris to five months of home detention, five years of probation and ordered to pay a fine of $10,000. In May 2018, he pleaded guilty to one count of making false statements. In October 2015, Withrow and Marco Babini, 57, who is believed to reside in Vancouver, Canada, were charged in an indictment. Babini remains at large and is charged with one count of conspiracy, one count of securities fraud and two counts of wire fraud.
By March 2013, the SEC had suspended trading in the securities of Endeavor, but they continued to investigate through at least August 2013. Withrow provided sworn testimony to the SEC relating to questions about who owned approximately 40 million unrestricted shares of Endeavor’s stock (i.e., shares that can be freely bought and sold in the securities market), and whether Withrow ever tried to determine who owned those shares. Withrow admitted that he misled the SEC about his knowledge of these Endeavor shares—most of which had been stashed in Switzerland—and Babini’s association with those shares.
United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. SEC Attorney Eric A. Forni, who was appointed as a Special Assistant U.S. Attorney, is prosecuting the case.
The remaining defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Eighth Massachusetts State Trooper ArrestedRead the Press Release
BOSTON – A Massachusetts State Police Trooper was arrested and charged today, and two previously charged retired State Troopers agreed to plead guilty in connection with the ongoing investigation of overtime abuse at the Massachusetts State Police (MSP).
Heath McAuliffe, 40, of Hopkinton, was arrested this morning and charged in a criminal complaint with embezzlement from an agency receiving federal funds. McAuliffe will appear in federal court in Boston later today.
As alleged in court documents, McAuliffe was an MSP Trooper assigned to Troop E, which is responsible for enforcing criminal and traffic regulations along the Massachusetts Turnpike, Interstate I-90. McAuliffe allegedly received overtime pay for hours that he either did not actually work at all, or shifts in which he departed one to four hours early.
The alleged conduct involves overtime pay for selective enforcement initiatives, including the Accident and Injury Reduction Effort program (AIRE). That initiative was intended to reduce accidents, crashes, and injuries on I-90 through an enhanced presence of MSP Troopers and targeting vehicles traveling at excessive speeds. McAuliffe was required to work the entire duration of the four hour shift and truthfully report the date, time and sector of deployment on the citations issued during the shift. As alleged, McAuliffe concealed his fraud by submitting citations that were issued prior to the overtime shift, altered the citations to create the appearance that citations were issued during the overtime shift, and/or submitted citations that were never issued to drivers.
Trooper McAuliffe earned $164,680 in 2016, including approximately $60,908 in overtime, and earned $180,215 in 2015, including approximately $83,496 in overtime. According to court documents, between Aug. 1, 2015, and Aug. 31, 2016, McAuliffe was paid $9,825 for AIRE overtime hours that he did not work.
In addition, retired Troopers David Wilson, 58, of Charlton, and Daren DeJong, 57, of Uxbridge, both agreed to plead guilty pursuant to plea agreements filed today. Wilson and DeJong were arrested and charged on June 27, 2018, and July 25, 2018, respectively, with embezzlement from an agency receiving federal funds. A date for the plea hearings has not yet been scheduled.
In 2016, Wilson, a lieutenant, earned approximately $259,475, which included approximately $102,062 in overtime pay. Wilson has agreed to plead guilty to having been paid $12,450 for overtime hours that he did not work. Pursuant to the plea agreement, the government will recommend a sentence of between six months and 12 months of incarceration.
In 2016, DeJong earned $200,416, which included approximately $68,394 in overtime pay. DeJong has agreed to plead guilty to having been paid $14,062.50 for overtime hours that he did not work. Pursuant to a plea agreement, the government will recommend a sentence of between six months and 12 months of incarceration.
In 2015 and 2016, MSP received annual benefits from the U.S. Department of Transportation in excess of $10,000, which were funded pursuant to numerous federal grants.
McAuliffe is the eighth MSP trooper charged in the ongoing investigation. Seven troopers have pleaded guilty or have agreed to do so. On July 2, 2018, former Trooper Gregory Raftery, 47, of Westwood pleaded guilty; on Sept. 14, 2018, suspended Trooper Kevin Sweeney, 40, of Braintree pleaded guilty; on Oct.11, 2018, suspended Trooper Gary Herman, 45, of Chester, pleaded guilty; on Nov. 28, 2019, former Trooper Paul Cesan pleaded guilty; and suspended Trooper Eric Chin, 46, of Hanover, is scheduled to plead guilty today.
The charge of theft of government 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. 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; Harold H. Shaw, 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.
Dominican National Sentenced for Illegally Possessing Firearm and AmmunitionRead the Press Release
BOSTON - A Dominican national was sentenced yesterday in federal court in Boston for illegally possessing a firearm and ammunition.
Carmito Martinez, 26, a Dominican national formerly residing in Roslindale, was sentenced by U.S. District Judge George A. O’Toole to 16 months in prison and two years of supervised release. Martinez will face deportation proceedings upon completion of his sentence. In October 2018, Martinez pleaded guilty to possession of a firearm and ammunition by an alien unlawfully present in the United States.
On Aug. 31, 2017, deportation officers went to Martinez’s last known address in Roslindale to take Martinez into custody for deportation purposes. When Martinez exited the house, law enforcement ordered him to stop and show his hands. Martinez removed a dark colored object from his waistband, threw the object behind a fence, and took off running. After Martinez was apprehended, the object he had thrown was located and determined to be a Smith and Wesson Model 422 .22 caliber long riffle. The weapon had one round in the chamber and seven rounds in the magazine, and the safety was not engaged. Further investigation revealed that the recovered weapon had been stolen. It is a violation of federal law for an alien in the country without legal authority to possess a firearm or ammunition.
United States Attorney Andrew E. Lelling and Peter C. Fitzhugh made the announcement. Valuable assistance was provided by the Boston Police Department. Assistant U.S. Attorney David G. Tobin of Lelling’s Major Crimes Unit prosecuted the case.
Burlington Man Pleads Guilty to Ammunition ChargeRead the Press Release
BOSTON - A Burlington man pleaded guilty yesterday in federal court in Boston to illegally possessing 30 pieces of ammunition.
Brendan Sheils, 32, pleaded guilty to one count of being a felon in possession of ammunition. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for March 18, 2019.
On Feb. 22, 2018, police received information that Sheils was in possession of an Uzi bump stock weapon and that he desired to attack the Burlington Police Department. On Feb. 23, 2018, police executed a search warrant at Sheils’ residence, where they recovered a total of 30 pieces of ammunition, as well as an AR-15 type rifle that was determined to be a “ghost gun,” which is made when an individual buys component parts and then assembles the pieces together. The rifle was loaded with 28 of the pieces of ammunition.
The firearms charge provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based on the United States Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division, Woburn Police Chief Robert J. Ferullo Jr.; and Burlington Police Chief Michael Kent made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit is prosecuting the case.
Boston Man Sentenced to 19 Years in Prison for Possession of Fentanyl, Cocaine, Firearm, and AmmunitionRead the Press Release
BOSTON – A Boston man was sentenced today for federal drug and firearm charges arising out of a large-scale seizure of fentanyl and other contraband.
Edgar Belis, 34, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 19 years in prison and five years of supervised release. In April 2018, Belis pleaded guilty to one count of possession with intent to distribute fentanyl and cocaine and one count of being a felon in possession of a firearm and ammunition.
In 2015, law enforcement agents identified Belis as a large-scale heroin trafficker in the Boston area. At the time, Belis had been convicted of heroin-related offenses on at least four prior occasions in Massachusetts state court.
In 2016, using a cooperating witness, law enforcement arranged calls with Belis seeking to purchase heroin. During those calls, Belis stated that he had kilogram quantities of heroin to sell, but suggested that the heroin must contain fentanyl or customers on the street would notice a difference. Belis stated that he would be willing to sell heroin or fentanyl for $40,000 per kilogram.
On May 3, 2016, a cooperating witness called Belis and placed an order for two kilograms of fentanyl. The purchase was set up for three days later. On May 6, 2016, Belis drove from Hopkinton to Boston, where law enforcement observed Belis picking up a backpack from a basement apartment. Belis then travelled to a location in South Boston to complete the sale of the two kilograms of fentanyl, where he was intercepted by law enforcement agents. Belis ignored several orders to exit the vehicle and locked himself in the car. Agents were forced to break the car windows to arrest Belis. A search of the backpack in the car resulted in the seizure of approximately 2.35 kilograms of fentanyl and approximately 250 grams of cocaine.
Later that day, agents executed a search warrant at the apartment associated with Belis, and seized an approximately 300 grams of fentanyl, approximately 125 grams of cocaine, $57,500 in cash, a Glock Model 22 .40 caliber pistol, and 31 rounds of .40 caliber ammunition.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Boston Police Commissioner William Gross made the announcement today.
Boston Man Charged with Federal Firearm OffenseRead the Press Release
BOSTON –A Boston man was arrested today and charged in federal court in Boston with being a felon in possession of a firearm and ammunition.
Mohamed Abdulaziz, 31, was charged with one count of being a felon in possession of a firearm and ammunition. Abdulaziz is currently in state custody.
According to the charging document, on Sept. 2, 2018, law enforcement officers stopped Abdulaziz on Route 24 South in West Bridgewater because he was driving erratically. After Abdulaziz failed several field sobriety tests, he was arrested for driving under the influence of alcohol. Troopers then conducted a routine inventory search of Abdulaziz’s vehicle before it was towed and found a loaded revolver beneath the driver’s seat. Federal law prohibits Abdulaziz from possessing a firearm or ammunition because of a prior felony conviction.
The charging statute 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 and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement today. Assistant U.S. Attorney Christine Wichers 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.
Georgia Man Pleads Guilty in Jamaican Lottery ScamRead the Press Release
BOSTON – A Georgia man pleaded guilty in federal district court in Boston today in connection with his role in a bogus advance fee Jamaican lottery scheme in which victims were defrauded of more than $1 million.
Peter Anthony Chin Jr., 34, of Atlanta, Ga., pleaded guilty to one count of conspiracy to commit mail and wire fraud before U.S. District Judge Nathaniel M. Gorton, who scheduled sentencing for March 7, 2019.
From 2012 to 2017, Chin was part of a scheme which targeted elderly individuals throughout the United States, including in Massachusetts. The victms were informed via phone, email and mail that they had won millions of dollars in a lottery, but that they had to pay the taxes on their purported winnings before the funds could be released. Chin’s co-conspirators directed the victims to mail or wire funds to Chin or to his associates. Chin kept a portion of the funds for himself and then distributed the rest as directed by his co-conspirators, including sending significant amounts to Jamaica. The victims suffered losses of almost $1.4 million.
The charge of conspiracy to commit mail and 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 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; Harold H. Shaw, 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; David W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Field Division made the announcement today. Assistant U.S. Attorney Sandra S. Bower of Lelling’s Criminal Division is prosecuting the case.
Belgian National Extradited to Boston for Scam Targeting Charities and Law FirmsRead the Press Release
BOSTON – A Belgian national was extradited from Morocco to the United States yesterday to face charges for his role in an e-mail scam that used counterfeit cashier’s checks to defraud charities and law firms.
Aref Zokita Said, 36, of Belgium, was charged in an indictment unsealed today with wire fraud and conspiracy to commit wire fraud. In April 2018, Said was arrested in Morocco and extradited to the United States, arriving in Boston last night. He was detained following an initial appearance in federal court in Boston today.
According to the indictment, beginning no later than August 2013, Said and his co-conspirators defrauded law firms and non-profits, including charities, by sending them fraudulent cashier’s checks and convincing them to wire money to members of the scheme, with the false assurance that the fake checks would cover the expense. Once the checks were discovered to be fraudulent, the victims’ bank accounts were debited, and the victims were left with thousands of dollars in losses, having unwittingly forwarded their own money to a member of the conspiracy.
The charging statutes provide for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000, or twice the gross gain or loss involved in the scam, and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service; and John Gibbons, U.S. Marshal for the District of Massachusetts, made the announcement today. Assistant U.S. Attorneys Kristen A. Kearney and Brian A. Pérez-Daple of Lelling’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Worcester Man Sentenced for Marriage FraudRead the Press Release
BOSTON – A Worcester man was sentenced Tuesday, Dec. 4, 2018, in connection with entering into six fraudulent marriages in order to evade immigration laws.
Peter Hicks, 57, was sentenced by U.S. District Court Judge Timothy S. Hillman to two years of probation. In September 2018, Hicks pleaded guilty to one count of marriage fraud. Hicks was arrested and charged in January 2018 and released on conditions following an initial appearance.
In 2014, federal law enforcement agents uncovered evidence that Hicks married six foreign national women from Sub-Saharan Africa between 2003 and 2013. Hicks filed for immigration benefits for four of his six wives.
During a routine interview as part of his application for benefits for a non-citizen spouse, Hicks admitted to marrying three of the women solely to obtain immigration benefits for them. During a second interview with immigration officials, Hicks admitted that he was paid to recruit people for fraudulent marriages. While being interviewed by federal agents on Jan. 8, 2015, Hicks admitted that he was involved in marriage fraud for approximately 13 years. He also said that he received payments to marry undocumented African women and to find willing United States citizens to marry illegal aliens for the purpose of allowing the women to establish legal status in the United States.
In addition, on at least one occasion, Hicks was still married to one spouse at the time of his marriage to another spouse. Hicks also fraudulently claimed on an immigration form submitted on behalf of one of his spouses, that he had only one former spouse and that he had only petitioned for immigration benefits for the one former spouse, when, in fact, Hicks had actually been married five times and submitted requests for immigration benefits for a number of his former spouses.
United States Attorney Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; and Denis C. Riordan, District Director, U.S. Citizenship and Immigration Services, District 1, made the announcement. Assistant U.S. Attorney David G. Tobin of Lelling’s Major Crimes Unit prosecuted the case.
Two Western Massachusetts Men Indicted for Armed RobberyRead the Press Release
BOSTON – Two western Massachusetts men were indicted today by a federal grand jury in Springfield on armed robbery and firearms charges.
Alfredo Aldeco, 32, of Holyoke, and Emilio Rivera, 30, of Springfield, were each indicted on 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. Aldeco and Rivera were arrested and charged by criminal complaint on Nov. 21, 2018, and have been in custody since.
According to court documents, between Oct. 25, 2018, and Nov. 14, 2018, there were at least nine armed robberies of convenience stores located in Holyoke, Chicopee, Florence, West Springfield, and Agawam. Investigations into the robberies led law enforcement to determine that the same two men were involved in many of the robberies. During each of the robberies, a suspect brandished a distinctive long-barreled, black firearm-type object, and during at least one of the robberies, the suspect threatened to “come back and kill” the store clerk if the clerk called the police.
The charges of interference with commerce by robbery and using a firearm in relation to crime of violence provide 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, made the announcement today. The Massachusetts State Police and the West Springfield, Holyoke, Agawam, Chicopee, Northampton, and Springfield Police Departments 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 defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Southwick Man Indicted for Sending Threatening Letters and White Powder to Federal Agencies in SpringfieldRead the Press Release
BOSTON – A Southwick man was indicted today by a federal grand jury for sending two packages, containing white powder, to federal agencies in Springfield.
Kevin A. Johnson, 47, was indicted on two counts of conveying false information and hoaxes and one count of mailing threatening communications to a federal law enforcement officer. Johnson was charged by criminal complaint and arrested on Nov. 30, 2018.
According to the charging documents, between July and November 2018, FBI’s Springfield Office and the Springfield Social Security Administration Office (SSA Springfield), received collectively three packages containing either threatening communications and/or suspicious substances. The Springfield Branch Office of the United States Attorney’s Office for the District of Massachusetts received a letter from an individual claiming responsibility for sending the packages. All of the packages contained a piece of white-lined paper with a hand-drawn logo that appeared to combine the “anarchist A” symbol (the capital letter “A” surrounded by the letter “O”) and the symbol for ISIS, a foreign terrorist organization. Two of the packages contained suspicious white powder.
As alleged in court documents, on July 23, 2018, security cameras at the FBI Springfield Office captured an individual throwing a manila envelope at the front door. The package contained a handwritten note saying: “Death to TRUMP.”
On Oct. 23, 2018, SSA Springfield received a package containing white powder and a handwritten letter stating, among other things: “FOR ALLAH YOU DIE, ATHENA KNOWS YOUR LIES, DEATH TO YOU TRAITORS, AND THE FU----- FBI.”
On Oct. 24, 2018, the FBI Springfield Office received a package through the mail addressed to “AGENT UNCLE HAM.” The package contained white powder and a handwritten note stating: “FOR ALLAH YOU DIE, ATHENA KNOWS YOUR LIES, DEATH TO THE N.O.R.A.D SPIES, AND THE FBI.” The Massachusetts State Police Laboratory later found the white powder in the packages to contain no hazardous materials.
The charges of false information and hoaxes provide for a sentence of no greater than five years in prison, one year of supervised release, and a fine of up to $250,000. The charges of mailing threatening communications provide 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 upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Stephen A. Marks, Special agent in Charge of the U.S. Secret Service, Boston Field Division; and Southwick Police Chief Kevin A. Bishop, made the announcement today. Assistance was provided by the Western Massachusetts Joint Terrorism Task Force, Hampden County Sheriff’s Department, and Holyoke Police Department. Assistant U.S. Attorney Deepika Bains Shukla of Lelling’s Springfield Branch Office is prosecuting the case.
The details contained in the indictment and complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Six Arrested in Lawrence for Identity Theft and Social Security FraudRead the Press Release
BOSTON – Six individuals were arrested today in Lawrence and charged in federal court in Boston with identity theft and Social Security fraud.
The following six Lawrence residents were each charged in federal court in separate criminal complaints with one count of misuse of a Social Security number and one count of aggravated identity theft:
- John Doe, whose true identity is unknown, allegedly requested a replacement Social Security card in the name of a deceased U.S. citizen from Puerto Rico while in jail on state drug charges. The mother of the deceased U.S. citizen confirmed that the photograph used by the suspect was not her son’s. In November 2018, the suspect attempted to obtain Medicaid benefits using the stolen identity, but appeared deceased in the Social Security system.
- John Doe, whose true identity is unknown, was convicted of possession with intent to distribute heroin while using the identity of a U.S. citizen from Puerto Rico. A comparison of license photos and booking photos, both in Massachusetts and Puerto Rico, allegedly revealed that the individual in Massachusetts was using a fraudulent identity.
- Lenin Alfredo Amparo, 44, a Dominican national with Lawful Permanent Residency status, with an extensive criminal history, including drug conspiracies, assault and battery, breaking and entering, destruction of property, and operating under the influence, submitted an application for a Massachusetts driver’s license in the identity of a U.S. citizen from Puerto Rico.
- Julissa Ranee Acosta Estevez, 45, a Dominican national, presented the name, Social Security card, and birth certificate of a deceased U.S. citizen from Puerto Rico as her own when she applied for a Massachusetts driver’s license. Acosta Estevez used the stolen identity to apply for and receive approximately $6,500 in unemployment insurance benefits. Social Security records verify a 2016 death record associated with the stolen identity as well as a 2017 application filed for child for survivor benefits in Puerto Rico.
- Andres Aridio Contrera Diaz, 30, a Dominican national, presented a name, Social Security number, and date of birth of a U.S. citizen from Puerto Rico in an application for a Massachusetts driver’s license. In addition, Contrera Diaz has received approximately $6,117 in unemployment insurance in the name of the stolen identity. Social Security records revealed the victim whose identity was stolen resides in Puerto Rico. Subsequent investigation discovered the victim had never been to Massachusetts, let alone applied for benefits in Massachusetts.
- Raul Alexander Guerrero-Sanchez, 35, a Dominican national, when arrested for drug offenses, including distribution of heroin and distribution of cocaine, presented the identification of a U.S. citizen and resident of Puerto Rico as his own.
“These were targeted investigations, aimed specifically at identifying people who have stolen the identities of others,” said United States Attorney Andrew E. Lelling. “And the continued emphasis on the City of Lawrence is no coincidence: with the help of state and local partners, we will continue targeting drug, gun, and immigration-related crime in that city until the crime rate there drops substantially. This has been, and will continue to be, a top priority of my office.”
“Today’s arrests demonstrate our commitment to stopping the real threats and devastating financial impacts that American taxpayers and citizens face from the danger of identity theft crimes,” said Peter C. Fitzhugh, Special Agent in Charge, Homeland Security Investigations in Boston. “Along with our local and federal partners, we look forward to the successful prosecution of these individuals who have literally robbed the identities and stolen directly out of the pockets of American taxpayers.”
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigation’s Document and Benefit Fraud Task Force (DBFTF), comprised of various local, state and federal agencies with expertise in detecting, deterring and disrupting organizations and individuals involved in various types of document, identity and benefit fraud schemes.
Among those individuals that the DBFTF is currently investigating are suspected aliens, predominately from the Dominican Republic, who are believed to have obtained stolen identities of United States citizens living in Puerto Rico and who have used those identities to obtain documents and public benefits that they would not otherwise be eligible to receive, such as Registry of Motor Vehicles identity documents, Social Security numbers, Medicaid, unemployment and public housing subsidies.
U.S. Attorney Lelling; HSI SAC Fitzhugh; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; William B. Gannon, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office; Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; Joseph Cronin, Inspector in Charge of the U.S. Postal Inspection Service; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; Denis C. Riordan, District Director, U.S. Citizenship and Immigration Services, District 1; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement today. Assistant U.S. Attorney David G. Tobin of Lelling’s Major Crimes Unit is prosecuting the cases.
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.
Dominican National Convicted by Federal Jury of False Representation of Social Security NumberRead the Press Release
BOSTON - A Dominican national was convicted today by a federal jury in Boston of false representation of a Social Security number.
Erika Bautista Diaz, 30, was convicted by a federal jury of one count of false representation of a Social Security number. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Feb. 28, 2019. Bautista Diaz was arrested and charged in July 2018 during a federal sweep targeting individuals involved in various types of document, identity, and benefit fraud schemes.
During the execution of a search warrant at Bautista Diaz’s home on July 26, 2018, law enforcement found identity documents in Bautista Diaz’s true name, as well as a Social Security card and birth certificate in the name of a U.S. citizen from Puerto Rico. Bautista Diaz used the name and Social Security number of the U.S. citizen from Puerto Rico for employment in Massachusetts and to receive paychecks.
The charge provides for a sentence of no greater than five years in prison, three years of supervised release, a fine of $250,000. Bautista Diaz will be subject to deportation upon completion of her 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; 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; William B. Gannon, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office; and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigation, Boston Field Division, made the announcement today. Special Assistant U.S. Attorney Karen Burzycki and Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit are prosecuting the case.
Auburn Man Charged with Embezzling from Labor UnionRead the Press Release
BOSTON – An Auburn man was arrested today and charged in federal court in Worcester in connection with embezzling from a labor union.
Ivar Carlson, 58, was charged with one count of embezzlement from a labor union. He appeared in federal court in Worcester today and was released on conditions.
According to the charging document, Carlson was the former business agent and treasurer for Local B-395 of the International Alliance of Theatrical Stage Employees (IATSE), which represented workers at the DCU Center in Worcester. It is alleged that from around March 2007 until September 2016, Carlson embezzled approximately $37,014 belonging to Local B-395 by writing checks from the Local B-395’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.
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.
Actelion Pharmaceuticals Agrees to Pay $360 Million to Resolve Allegations that it Paid Kickbacks Through a Co-Pay Assistance FoundationRead the Press Release
BOSTON – The U.S. Attorney’s Office announced today that pharmaceutical company Actelion Pharmaceuticals US, Inc. (Actelion), a seller of pulmonary arterial hypertension (PAH) drugs, has agreed to pay $360 million to resolve allegations that it violated the False Claims Act by paying kickbacks to Medicare patients through a purportedly independent charitable foundation.
When a Medicare beneficiary obtains a prescription drug covered by Medicare Part B or Part D, the beneficiary may be required to make a partial payment, which may take the form of a co-payment, co-insurance, or deductible (collectively “co-pays”). These co-pay obligations may be substantial for expensive medications. Congress included co-pay requirements in these programs, in part, to encourage market forces to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. The Anti-Kickback Statute prohibits pharmaceutical companies from offering or paying, directly or indirectly, any remuneration – which includes money or any other thing of value – to induce Medicare patients to purchase the companies’ drugs.
Actelion sells a number of PAH drugs, including Tracleer, Ventavis, Veletri, and Opsumit. As part of today’s settlement, the government alleged that Actelion used a foundation as a conduit to pay the co-pay obligations of thousands of Medicare patients taking Actelion’s PAH drugs. By doing so, the government alleged, Actelion was able to induce patients to purchase its drugs when the prices Actelion had set for those drugs otherwise could have posed a barrier to purchases.
The government alleges that in 2014 and 2015, Actelion routinely obtained data from the foundation detailing how many patients on each Actelion drug the foundation had assisted, how much the foundation had spent on those patients, and how much the foundation expected to spend on those patients in the future. Actelion used this information to budget for future payments to the foundation on a drug-specific basis and to confirm that its contribution amounts to the foundation were sufficient to cover the copays of patients taking Actelion’s drugs, but not of patients taking other manufacturers’ PAH drugs. Actelion engaged in this practice even though the foundation warned the company against receiving data concerning the foundation’s expenditures on copays for Actelion’s drugs. Meanwhile, the government also alleged that Actelion had a policy 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 Actelion’s drugs. Instead, to generate revenue from Medicare and induce purchases of its drugs, the government alleged that Actelion referred such Medicare patients to the foundation, which allowed the patients’ copays to be paid and resulted in claims to Medicare for the remaining cost.
“Using data from a foundation that it knew it should not have, Actelion effectively set up a proprietary fund to cover the co-pays of just its own drugs,” said United States Attorney Andrew E. Lelling. “Such conduct not only violates the anti-kickback statute, it also undermines the Medicare program’s co-pay structure, which Congress created as a safeguard against inflated drug prices. During the period covered by today’s settlement, Actelion raised the price of its main PAH drug, Tracleer, by nearly 30 times the rate of overall inflation in the United States.”
“This settlement, as do prior settlements concerning similar misconduct, make clear that the government will hold accountable drug companies that pay illegal kickbacks,” said Assistant Attorney General Joseph H. Hunt of the Department Justice’s Civil Division. “Pharmaceutical companies cannot have it both ways—they cannot continue to increase drug prices while engaging in conduct designed to defeat the mechanisms that Congress designed to check such prices and then expect Medicare to pay for the ballooning costs.”
“Kickback schemes can undermine our healthcare system, compromise medical decisions, and waste taxpayer dollars,” said Phillip Coyne, Special Agent in Charge, Office of the Inspector General of the Department of Health and Human Service’s Boston Regional Office. “We will continue to hold pharmaceutical companies accountable for subverting the charitable donation process in order to circumvent safeguards designed to protect the integrity of the Medicare program.”
“Today’s settlement against Actelion is a victory for the public and underscores the FBI's commitment to safeguarding the financial integrity of the Medicare program,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “Simply put, the goal of the FBI's Health Care Fraud program is to ensure that patients receive the appropriate treatments and therapies according to their medical needs, without corrupt or profit-driven influence of drug manufacturers.”
On June 16, 2017, after the conduct alleged in today’s settlement agreement, Johnson & Johnson acquired Actelion. Johnson & Johnson was not involved, directly or indirectly, in the alleged conduct and the allegations above do not relate in any way to Johnson & Johnson.
U.S. Attorney Lelling, Assistant Attorney General Hunt, HHS-OIG SAC Coyne, and FBI SAC Shaw 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 Office, and by Trial Attorneys Augustine Ripa and Sarah Arni of the Justice Department’s Civil Division.
Revere Man Charged with Counterfeit Goods and ServicesRead the Press Release
BOSTON - A Revere man was charged today in federal court in Boston in connection with importing and selling counterfeit apparel.
Paul G. Adri, 34, was charged with one count of trafficking in counterfeit goods and services, one count of smuggling goods into the United States, one count of conspiracy and one count of wire fraud. Adri was arrested today and released on conditions following an initial appearance.
According to the charging document, Adri improperly utilized trademarks held by Adidas, Nike, the NFL, and the NBA, among others, and 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 no more than $2 million. The charges of smuggling goods into the United States and wire fraud each provide for a sentence of no greater than 20 years in prison, up to three years of supervised release, and a fine of no more than $250,000, or twice the gross gain or loss. The charge of conspiracy provides for a sentence of no greater than five years in prison, up to three years of supervised release, and a fine of no more than $250,000, or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and 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.
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.
Medical Device Maker ev3 Agrees to Plead Guilty and Pay $17.9 Million for Distributing Adulterated DeviceRead the Press Release
BOSTON – The U.S. Attorney’s office announced today that Minnesota-based medical device manufacturer ev3 Inc. (ev3), has agreed to plead guilty to charges related to the distribution of its neurovascular medical device, Onyx Liquid Embolic System, and pay $17.9 million in fines and forfeiture.
“ev3 disregarded laws designed to protect patient safety,” said United States Attorney Andrew E. Lelling. “The U.S. Attorney’s Office is committed to protecting patients and the integrity of federal health care programs, and we will continue to use our criminal authority to ensure that medical device manufacturers play by the rules that protect the public and ensure quality of care.”
“The Department of Justice will hold corporations accountable when they violate laws designed to protect consumers and protect public funds,” said Assistant Attorney General Joseph H. Hunt, of the Department of Justice’s Civil Division. “This resolution demonstrates the Department’s continued commitment to protect taxpayer dollars and deter companies from putting profits before patient safety.”
“Consumers rely on the FDA to ensure that there’s a reasonable assurance of safety and effectiveness for the approved uses of medical devices. When manufacturers ignore the FDA’s regulatory authority, they undermine these crucial assurances and put lives at risk. Our Office of Criminal Investigations investigated a bad actor who marketed their device for unapproved uses, potentially harming patients,” said FDA Commissioner Scott Gottlieb, M.D. “The ev3 agreement to plead guilty announced by the U.S. Department of Justice today is an example of the FDA’s comprehensive commitment to ensuring the safety of medical devices and investigating companies that put patients at risk. A key part of our overall efforts to promote safe and effective innovation and protect patients is our enforcement work related to unsafe practices and bad actors. In addition to investigating such activities, we’re advancing other new policies to assure post-market device safety, as we recently outlined in our Medical Device Safety Action Plan. The FDA is also committed to fully implementing a new active surveillance system that will enable the agency to harness real-world evidence from medical records and patient registries to more swiftly identify device safety issues and enable more informed decision-making.”
Pursuant to a criminal information filed in federal court in Boston today, the United States charged ev3 with violations of the Food, Drug and Cosmetic Act. As part of the criminal resolution, ev3 has agreed to plead guilty to a misdemeanor offense, to pay a criminal fine of $11.9 million, and to forfeit $6 million.
According to court documents, Onyx was approved by the U.S. Food and Drug Administration (FDA) as a liquid embolization device that is surgically injected into blood vessels to block blood flow to arteriovenous malformations in the brain. The FDA has approved Onyx only for use inside the brain. Despite the FDA’s limited approval of Onyx, from 2005 to 2009, ev3 sales representatives encouraged surgeons to use Onyx in large quantities for unproven and potentially dangerous surgical uses outside the brain. The company’s sales force continued to tout unapproved and potentially dangerous uses of Onyx even after FDA officials told ev3 executives in 2008 that they had specific safety concerns regarding uses of Onyx outside the brain. FDA officials told ev3 executives that a study would be required to gain approval for uses of Onyx outside the brain and to ensure that the benefits of the device outweighed the risks.
Rather than conduct a study to ensure the safety and effectiveness of Onyx for uses outside the brain, ev3’s sales representatives attended surgical procedures and provided explicit instructions to surgeons regarding how to use Onyx for unapproved surgical procedures outside the brain, including in greater quantities than would be used in the brain. According to the criminal information, ev3’s management also set up a system of sales quotas and bonuses that incentivized sales representatives to sell Onyx for unapproved uses and trained the sales force to instruct physicians on unapproved uses of the device.
“The American people, as both taxpayers and consumers, expect medical device manufacturers like EV3 to abide by relevant laws and regulations,” stated HHS-OIG Special Agent in Charge Phillip Coyne. “When medical device companies take shortcuts in order to boost profits, it erodes public confidence in the health care system, compromises patient safety, and wastes taxpayer funds intended for healthcare programs that help the most vulnerable members of society. We will continue to investigate allegations of fraud in close cooperation with our law enforcement partners.”
“This sends a clear message that VA OIG and our federal partners will vigorously investigate healthcare fraud and hold companies accountable,” said Sean J. Smith, Special Agent in Charge of the Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division, Northeast Field Office.
“Incentivizing employees to promote surgical devices outside approved protocols violates FDA regulations, places patients at risk, and are unacceptable business practices. In this case, ev3 ignored serious patient safety concerns when it gave sales representatives the green light to promote its device for unapproved uses. Today’s plea and settlement demonstrate the FBI’s commitment to holding companies accountable who violate regulations solely intended to protect the public,” said Harold H. Shaw, Special Agent in Charge of the FBI Boston Division. “The FBI’s Health Care Fraud program will continue to investigate companies like ev3 that promote dangerous sales tactics that pose unacceptable risk to patient safety.”
ev3 was acquired by Covidien LP in 2010, subsequent to the course of criminal conduct covered by the plea agreement. Covidien was then acquired by Medtronic in 2015. Although Medtronic played no role in the criminal conduct, the company has agreed to implement new compensation structures to ensure the sales force responsible for marketing Onyx is not incentivized to sell the device for unapproved uses. Medtronic has also agreed to conduct compliance monitoring related to Onyx sales and marketing.
U.S. Attorney Lelling, Assistant Attorney General Hunt, FDA Commissioner Gottlieb, HHS-OIG SAC Coyne, VA-OIG SAC Smith, and FBI Boston SAC Shaw made the announcement today. This matter was handled by Assistant U.S. Attorneys Gregg Shapiro, Chief of Lelling’s Affirmative Civil Enforcement Unit, Nathaniel Yeager, Chief of Lelling’s Health Care Fraud Unit, and Christopher Looney of Lelling’s Health Care Fraud Unit, and Trial Attorney Matthew Lash of the Justice Department’s Consumer Protection Branch.
Leader of Boston-Based Drug Trafficking Organization Sentenced to 16 Years in PrisonRead the Press Release
BOSTON – The leader of a Boston-based heroin and fentanyl trafficking organization was sentenced yesterday in federal court in Boston.
Jose Antonio Lugo-Guerrero, a/k/a Fernando Rivera-Rodriguez, 40, a Dominican national formerly residing in Mattapan, was sentenced by U.S. District Court Judge Indira Talwani to 16 years in prison and five years of supervised release. Lugo-Guerrero will be subject to deportation proceedings upon completion of his sentence. In August 2018, Lugo-Guerrero pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute more than one kilogram of heroin, more than 400 grams of fentanyl, and more than five kilograms of cocaine, and one count of possession of a firearm in furtherance of a drug trafficking crime. In February 2017, Lugo-Guerrero was arrested and charged along with 22 co-defendants.
From mid-2016 through February 2017, federal law enforcement investigated two drug trafficking organizations operating in Taunton and Boston; the former led by Fernando Hernandez, and the latter led by Lugo-Guerrero. Hernandez’s organization obtained drugs from a network of suppliers that included Lugo-Guerrero.
Lugo-Guerrero sold kilograms of heroin, fentanyl, and cocaine to customers in Boston, New Bedford, Fall River, and surrounding areas. The evidence, including federal wiretaps in late 2016 and early 2017, further showed that he obtained some of the drugs he sold by robbing other drug dealers. On Nov. 3, 2016, Lugo-Guerrero and five co-defendants traveled to New Bedford planning to rob a drug dealer who had stolen half a kilogram of heroin from Lugo-Guerrero. At Lugo-Guerrero’s direction, one of the co-defendants transported a firearm and provided it to another co-defendant just before the attempted robbery. Based on intercepted communications, law enforcement agents were aware of the planned robbery and stopped and questioned the defendants before it occurred. As a result, Lugo-Guerrero aborted his plan that night and returned to Boston.
In February 2018, Hernandez was sentenced to 15½ years in prison after pleading guilty in November 2017. The court found that Hernandez was responsible for distributing more than a kilogram of heroin over a two-month period in the summer of 2016.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Bristol Country District Attorney Thomas M. Quinn; Bristol County Sheriff Thomas M. Hodgson; Attleboro Police Chief Kyle P. Heagney; Boston Police Commissioner William Gross; Bridgewater Police Chief Christopher Delmonte; Fairhaven Police Chief Michael Myers; Fall River Police Chief Albert F. Dupere; New Bedford Police Chief Joseph C. Cordeiro; and Taunton Police Chief Edward James Walsh made the announcement. Assistant U.S. Attorney Ted Heinrich of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
Lynn District Court Assistant Chief Probation Officer Arrested for Sexually Exploiting a ChildRead the Press Release
BOSTON – An Assistant Chief Probation Officer for Lynn District Court was arrested today and charged in federal court in Boston with child exploitation.
Brian Orlandella, 46, of Beverly, was charged with one count of sexual exploitation of a child and one count of transfer of obscene material to a minor. Orlandella appeared in federal court in Boston today and is scheduled for a probable cause hearing on Friday.
According to the charging document, in May 2018, a mother in Texas contacted the local police about messages she found on her 13-year-old daughter’s cell phone between her daughter and an adult man, later identified as Orlandella. The messages, sent via Kik, revealed conversations in which the man sent the minor images of himself masturbating and directed her to send him naked pictures and videos of her. She told him she was 14-years-old, and he acknowledged that he is much older than she is.
Authorities were able to trace the suspect’s Kik account’s IP address to Orlandella’s residence in Beverly, Mass., where law enforcement executed a search warrant this morning and seized phones that are now undergoing forensic analysis.
The charge of sexual exploitation of children provides for a mandatory minimum sentence of 15 years and up to 30 years in prison, a minimum of five years and up a lifetime of supervised release, and a fine of $250,000. The charge of transfer of obscene material to a minor provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $150,000. 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 Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston, 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 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.
Brockton Man Convicted by Federal Jury of Firearm and Drug OffensesRead the Press Release
BOSTON – A Brockton man was convicted today in federal court in Boston of firearm and drug charges.
Douglas Norris, 39, was convicted by a federal jury of one count of being a felon in possession of a firearm and ammunition, one count of possession with intent to distribute 28 grams or more of crack cocaine, one count of possession with intent to distribute cocaine, and one count of possessing a firearm in furtherance of a drug trafficking crime. Norris was arrested and charged in July 2017, and has been in custody since. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for March 28, 2019.
On June 20, 2017, a search warrant was executed at Norris’s home where a backpack containing a fully loaded Smith & Wesson, model 6906, 9 mm pistol; 21 additional rounds of assorted ammunition; plastic baggies containing over 32 grams of cocaine and over 46 grams of crack cocaine; and two digital scales were recovered. Elsewhere in the house, police found an additional 25 grams of cocaine and cocaine base, a kilo press, an electronic money counter, calibration weights, and five additional scales. Norris is prohibited from possessing a firearm based on a prior 2005 conviction.
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 $250,000. The charge of possession with intent to distribute 28 grams or more of crack cocaine provides for a mandatory minimum sentence of five years and up to 40 years in prison, a mandatory minimum of four years and up to a lifetime of supervised release, and a fine of up to $5 million. The charge of possession with intent to distribute cocaine provides for a sentence of no greater than 20 in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of $1 million. The charge of possession of a firearm in furtherance of a drug trafficking crime provides for a minimum mandatory sentence of five years - consecutive to any other sentence imposed - and up to a lifetime in prison, five years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Plymouth County District Attorney Timothy Cruz; and Brockton Police Chief John Crowley made the announcement today. Assistant U.S. Attorneys Robert E. Richardson and Elianna Nuzum of Lelling’s Major Crimes Unit are prosecuting the case.
Southwick Man Arrested for Sending Threatening Letters and White Powder to Federal Agencies in Springfield, Mass.Read the Press Release
BOSTON – A Southwick man was arrested today and charged in federal court in Springfield, Mass., for sending four packages, two of which contained white powder, to federal agencies.
Kevin A. Johnson, 47, was charged by criminal complaint with two counts of conveying false information and hoaxes and two counts of mailing threatening communications. Johnson was detained following an initial appearance in federal court in Springfield.
According to the charging document, between July and November 2018, the FBI’s Springfield Office and the Springfield Social Security Administration Office (SSA Springfield), received collectively three packages containing either threatening communications and/or suspicious substances. The Springfield Branch Office of the United States Attorney’s Office received a letter from an individual claiming responsibility for sending the packages. All of the packages contained a piece of white-lined paper with a hand-drawn logo that appeared to combine the “anarchist A” symbol (the capital letter “A” surrounded by the letter “O”) and the symbol for ISIS. Two of the packages contained suspicious white powder.
As alleged in court documents, on July 23, 2018, security cameras at the FBI Springfield Office captured an individual throwing a manila envelope at the front door. The package contained a handwritten note saying: “Death to TRUMP.”
On Oct. 23, 2018, SSA Springfield received a package containing white powder and a handwritten letter stating, among other things: “FOR ALLAH YOU DIE, ATHENA KNOWS YOUR LIES, DEATH TO YOU TRAITORS, AND THE FU----- FBI.”
On Oct. 24, 2018, the FBI Springfield Office received a package through the mail addressed to “AGENT UNCLE HAM.” The package contained white powder and a handwritten note stating: “FOR ALLAH YOU DIE, ATHENA KNOWS YOUR LIES, DEATH TO THE N.O.R.A.D SPIES, AND THE FBI.” Laboratory testing later determined that the white powder in the packages did not contain hazardous material.
On Nov. 13, 2018, the Springfield Branch Office of the U.S. Attorney’s Office for the District of Massachusetts received a letter through the mail addressed to the U.S. Attorney. The return address stated: “WANTED FOR TERRORISM.” The package included a handwritten letter and two newspaper articles. One of the newspaper articles was a report that the SSA Springfield building closed after receiving a suspicious package. The article noted that the powder was found to be onion salt. The words “onion salt” were circled in pen on the article. The second article was about the death of James “Whitey” Bulger Jr. The phrase “5 finger Freddy” was written in pen next to the name “Freddy Geas” on the article. News media outlets have reported Geas as Bulger’s suspected killer.
The charges of false information and hoaxes provide for a sentence of no greater than five years in prison, one year of supervised release, and a fine of up to $250,000. The charges of mailing threatening communications provide 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 upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Stephen A. Marks, Special agent in Charge of the U.S. Secret Service, Boston Field Division; and Southwick Police Chief Kevin A. Bishop, made the announcement today. Assistance was provided by the Western Massachusetts Joint Terrorism Task Force, Hampden County Sheriff’s Department, and Holyoke Police Department. Assistant U.S. Attorney Deepika Bains Shukla of Lelling’s Springfield Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Cape Cod Woman Pleads Guilty to Mail FraudRead the Press Release
BOSTON – A Cape Cod woman pleaded guilty today in federal court in Boston to her role in a fraudulent lottery scheme.
Ashley Barrett, 26, of Hyannis, pleaded guilty to one count of mail fraud. U.S. District Court Judge Denise J. Casper scheduled sentencing for Feb. 26, 2019. On March 29, 2018, Barrett was arrested and was released from custody on conditions.
Between September 2013 and January 2016, Barrett and others devised a scheme to defraud elderly victims across the country by falsely representing to them that they had won millions of dollars in a lottery, and that, in order to receive their winnings, they had to pay a fee. The victims were directed to make payments to specific addresses. In July 2015, one victim mailed Barrett a check for $2,500, which Barrett deposited into one of her bank accounts.
The charging statute for mail fraud provides for a sentence of no greater than 20 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 and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit is prosecuting the case.
U.S. Attorney Issues Warning to Opioid PrescribersRead the Press Release
BOSTON – As part of a comprehensive response to the opioid epidemic, the U.S. Attorney’s Office in the District of Massachusetts has warned a number of medical professionals that their opioid prescribing practices have been identified as a source of concern.
In a letter sent this week, United States Attorney Andrew E. Lelling informed a number of prescribers that a data review identified them as having prescribed opioids to a patient within 60 days of that patient’s death or to a patient who subsequently died from an opioid overdose. The letter reminds physicians that although prescriptions may be medically appropriate, the law prohibits prescribing opioids without a legitimate medical purpose, substantially in excess of the needs of the patient, or outside the usual course of professional practice.
“The opioid crisis is killing tens of thousands of people a year, including thousands in Massachusetts,” said U.S. Attorney Lelling. “One source of opioids – used for both legitimate and illegitimate purposes – is medical professionals, who have an obligation always to act in patients’ best interests. In the midst of an opioid epidemic, that obligation is more important than ever before. Through this effort, we’re trying to educate prescribers who may be improperly dispensing these drugs, stem the flow of opioids to the public and, ultimately, save lives and reduce opioid addiction rates.”
In 2017, approximately 2,000 Commonwealth residents died of opioid-related overdoses and, in the first six months of this year, there were 657 confirmed opioid-related overdose deaths in Massachusetts. While the amount of opioids prescribed and sold in the U.S. has quadrupled since 1999, the overall amount of pain reported by Americans during this period has not changed; the opioid epidemic was caused, in part, by the widespread over-prescription of opioid-based medications.
The Department of Justice is committed to reducing the numbers of opioid deaths and new addictions by monitoring prescription practices. Through this effort and others, the Department aims to reduce the impact of this crisis in our communities by notifying prescribers that their patients have died either as a result of or close in time to receiving an opioid prescription. By doing so, we reduce the risk of unused prescriptions being diverted for non-medical use by those whom the prescription was never intended. At this point, the Department has made no determination that the prescribers receiving these letters have violated the law; the goal is to induce these medical professionals to take stock of their prescribing practices and make any necessary adjustments.
Massachusetts State Trooper Pleads Guilty in Overtime Abuse InvestigationRead the Press Release
BOSTON – A retired Massachusetts State Police Trooper pleaded guilty today to collecting over $29,000 in overtime pay that he did not work.
Paul Cesan, 50, of Southwick, who was previously arrested and charged on June 27, 2018, pleaded guilty to one count of embezzlement from an agency receiving federal funds. U.S. Senior District Court Judge Douglas P. Woodlock scheduled sentencing for March 12, 2019.
Cesan was a Massachusetts State Police (MSP) Trooper assigned to Troop E, which was responsible for enforcing criminal and traffic regulations along the Massachusetts Turnpike, Interstate I-90. In 2016, Cesan earned $163,533, which included approximately $50,866 in overtime pay.
Cesan was paid for overtime shifts that he did not work at all or from which he left early. Cesan 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.
Cesan has admitted collecting $29,287 for overtime hours that he did not work.
The overtime in question involved the Accident and Injury Reduction Effort program (AIRE) and the “X-Team” initiative, which were 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.
In 2016, MSP received annual benefits from the U.S. Department of Transportation in excess of $10,000, which were funded pursuant to numerous federal grants.
Cesan is the fourth Trooper to plead guilty as a result of the ongoing investigation. On July 2, 2018, former Trooper Gregory Raftery, 47, of Westwood, pleaded guilty, on Sept. 14, 2018, suspended Trooper Kevin Sweeney, 40, of Braintree, pleaded guilty, and on Oct. 11, 2018, suspended Trooper Gary Herman, 45, of Chester, pleaded guilty. Three others have been charged: former Lieutenant David Wilson, 57, of Charlton; retired Trooper Daren DeJong, 56, of Uxbridge; and suspended Trooper Eric Chin.
Pursuant to the plea agreement, the government will recommend a sentence of between 10 and 16 months in prison. The charge of theft of government 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. 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; Harold H. Shaw, 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.
The details contained in the court documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Six MS-13 Members Charged with RICO ConspiracyRead the Press Release
BOSTON – Six members of the violent, transnational organization known as “La Mara Salvatrucha” or “MS-13” were indicted today in federal court in Boston with racketeering.
As alleged in the indictment, as part of the racketeering conspiracy, five of the six defendants participated in the murder of a teenage boy in Lynn, Mass., on or about July 30, 2018.
The indictment charges the following members of the Sykos Locos Salvatrucha clique:
- Erick Lopez Flores, a/k/a “Mayimbu,” 29, of Lynn;
- Henri Salvador Gutierrez, a/k/a “Perverso,” 19, a Salvadoran national previously residing in Somerville;
- Eliseo Vaquerano Canas, a/k/a “Peligroso,” 19, a Salvadoran national previously residing in Chelsea;
- Jonathan Tercero Yanes, a/k/a “Desalmado,” 21, a Salvadoran national previously residing in East Boston;
- Marlos Reyes, a/k/a “Silencio,” 22, a Salvadoran national previously residing in Chelsea; and
- Djavier Duggins, a/k/a “Haze,” 29, of Lynn.
The indictment also mentions an unnamed juvenile, who has been separately charged in a sealed information, as required by federal law.
Duggins was arrested today and will appear in federal court on Nov. 29, 2019, at 3:30 p.m. The five defendants accused of murder are currently detained on state charges or in immigration custody, and will appear in federal court in the days ahead.
As alleged in court documents, on Aug. 2, 2018, law enforcement officers responded to Henry Avenue Playground in Lynn, where a civilian had encountered the dead body of a young boy lying in a wooded area. Based on the condition of the body, it appeared that the victim had been murdered a few days prior to when the body was discovered.
It is alleged that Lopez, Salvador, Vaquerano, Tercero, and Reyes murdered the victim with premeditated malice, and with extreme atrocity and cruelty. The evidence includes a recording of Salvador allegedly describing the murder in graphic detail, including how he, Vaquerano, Tercero, and Yanes stabbed the victim numerous times while Lopez assisted. The recording also described Duggins as being a leader of the clique. The victim was allegedly targeted because the gang believed the victim had been cooperating with law enforcement.
“MS-13 is a ruthless, transnational gang operating in our backyard,” said United States Attorney Andrew E. Lelling. “This group routinely commits senseless acts of violence, including murder, to maintain control and instill fear. Dismantling MS-13 in Massachusetts and elsewhere is a top priority of the Department of Justice. Federal, state, and local law enforcement agencies will continue working together to investigate and hold MS-13 members responsible for these heinous crimes.”
“The murder of 17-year old Herson Rivas is another sobering example of the savagery of MS-13, the ruthlessness of its members, and the utter disregard they have for law and order, our communities, and the opportunities afforded to them while here in the United States. This barbaric behavior cannot and will not be tolerated, and law enforcement at all levels will continue to use all available resources, aggressively exploit all available intelligence, and work as one integrated team with the sole intention of preventing additional murders or future acts of violence,” said Harold H. Shaw, Special Agent in Charge of the FBI Boston Division. “I commend the FBI's North Gang Task Force for their unwavering pursuit of MS-13, the tremendous work conducted by our federal, state and local law enforcement partners regarding this threat, and the proactive efforts undertaken to move and share intelligence, all in an effort to stem the flow of violence. There is no place in society for MS-13---their violence and tactics need to be stopped---and this gang must be dismantled at all levels.”
“Today’s enforcement action demonstrates our continued unrelenting commitment to take the fight to MS-13,” said Peter C. Fitzhugh, Special Agent in Charge, Homeland Security Investigations, Boston. “Working closely with our state, local and federal partners, HSI is determined to dismantle this organization to make our communities in Massachusetts a safer place to live.”
“The brutal violence that is the hallmark of MS-13 is well-documented, and this case was yet another example of the gang’s ruthlessness,” said Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police. “I am extremely proud of the superb work done by the MSP Gang Unit, the State Police Detective Unit for Essex County, and the North Shore Gang Task Force, in conjunction with our federal and local partners, to speak for Herson Rivas and to seek justice for his family by developing the evidence that led to these indictments.”
“These indictments represent an extraordinary collaboration among local, state and federal law enforcement officers who worked tirelessly to identify and apprehend those responsible for the brutal murder of a 17-year old in a city park where children play.” Essex District Attorney Jonathan Blodgett said. “This combined effort should serve as notice to those who engage in gang activity and indiscriminate violence, that we will not rest in our pursuit of justice on behalf of victims and our duty to protect the community from this scourge.”
“I would like to commend the members of the Lynn Police Criminal Investigation Division, the Essex County State Police Detectives Unit, and the FBI for their work on this investigation,” said Lynn Police Chief Michael Mageary. “This was a very sensitive investigation from the beginning and because of the efforts of the investigators those responsible will be brought to justice. Our condolences go out to the Rivas family for their loss.”
According to court documents, MS-13 is a violent street gang whose branches or “cliques” operate throughout the United States, including Massachusetts. MS-13 members are required to commit acts of violence against rival gang members to gain promotions and to maintain membership and discipline within the group. Specifically, MS-13 members are required to attack and murder rival gang members whenever possible, and to attack and murder those suspected of cooperating with law enforcement. MS-13 often recruits younger members from schools and communities with large immigrant populations from Central America.
The charge of RICO conspiracy typically provides for a maximum sentence of 20 years in prison, three years of supervised release, and a fine of $250,000. However, Lopez, Salvador, Vaquerano, Tercero, and Reyes face up to life in prison because their racketeering activity involved murder. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Lelling; FBI Boston SAC Shaw; HSI Boston SAC Fitzhugh; MSP Colonel Gilpin; Essex DA Blodgett; and Lynn Police Chief Mageary made the announcement today. The Boston, Chelsea, and Peabody Police Departments provided assistance with the investigation.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
New Bedford Fishing Boat Captain Sentenced for Interfering with Coast Guard InspectionRead the Press Release
BOSTON – The former captain of a New Bedford fishing boat owned by Carlos Rafael, a/k/a “The Codfather,” was sentenced today in federal court in Boston for interfering with a U.S Coast Guard (USCG) inspection of a fishing boat off the Massachusetts coast.
Thomas D. Simpson, 57, of South Portland, Maine, was sentenced by U.S. District Court Judge Indira Talwani to two years of probation, with the first four months to be served in home confinement with electronic monitoring, and ordered to pay a $15,000 fine. In August 2018, Simpson pleaded guilty to one count of destruction or removal of property subject to seizure and inspection.
“Mr. Simpson’s conduct was careless and dangerous. When he ordered the ship’s nets cut loose, rather than simply reeled in, the steel cables securing the net swung violently across the boat, endangering not only the Coast Guard boarding team but Simpson’s own crew,” said U.S. Attorney Andrew E. Lelling. “My office is committed to prosecuting those who impede federal inspections, especially when they jeopardize the safety of law enforcement officers and bystanders.”
“As a federal law enforcement agency, the Coast Guard boards fishing vessels to ensure the safety of the crew and protect our nation's natural resources,” said Rear Adm. Andrew Tiongson, Commander of the First Coast Guard District. “When Mr. Simpson intentionally jettisoned his net, he interfered with our ability to do that, and endangered everyone on board, including his own crew.”
“Vessel boardings by law enforcement personnel to determine compliance with fishery regulations help support the continued sustainability of the nation’s fisheries,” said James Landon, Director of NOAA’s Office of Law Enforcement. “When fishermen attempt to destroy evidence to avoid detection of illegal fishing, they not only undermine the enforcement management measures designed to ensure that the fishery remains productive, but they also jeopardize the safety of those who enforce those rules. This investigation is a great example of our marine law enforcement agencies working together to uphold federal marine resource laws and to bring to justice those who believe they are above them.”
Simpson was the captain of the fishing vessel Bulldog, a New Bedford based commercial fishing vessel and one of several fishing vessels owned by Carlos Rafael. On Sept. 25, 2017, Rafael, often referred to as “The Codfather,” was sentenced in federal court in Boston to 46 months in federal prison on a variety of charges related to the operation of his commercial fishing business.
On May 31, 2014, the Bulldog was engaged in commercial fishing off the cost of Massachusetts when the U.S. Coast Guard (USCG) boarded the vessel to perform a routine inspection of the Bulldog and its fishing equipment. At the time of the boarding, the Bulldog’s net was deployed in the water and the crew was actively fishing. The USCG Boarding Officer encountered Simpson in the Bulldog’s wheelhouse and instructed Simpson to haul in the fishing net for inspection. The fishing net is controlled from the wheelhouse by an electric winch, which Simpson activated, but instead of hauling the fishing net onto the vessel, he let out more of the cable which attaches the net to the vessel. When the USCG Boarding Officer realized that Simpson was letting the net out, he instructed Simpson to stop and to haul the net in. Simpson ignored the order and continued to let out cable until the net became detached from the Bulldog and sank.
The USCG and the National Oceanic and Atmospheric Administration (NOAA) hired a salvage company, at a cost of approximately $15,000, to retrieve the net from the ocean floor. An inspection of the net revealed that it had three distinct and separate layers of netting in violation of commercial fishing regulations. When two or more fishing nets are placed on top of each other, the size of the openings are reduced. The reduced size net openings hinder younger, smaller fish from being able to escape the net. The prohibition on double or triple lining fishing nets is intended to maintain the size and viability of the fishing stock and reduce over fishing. The use of illegal nets may result in fines and forfeiture of fishing equipment.
U.S. Attorney Lelling; Rear Adm. Tiongson; James M. Noble, Acting Special Agent in Charge of the U.S Coast Guard Investigative Services Northeast Region; and NOAA Director James Landon made the announcement today. Assistant U.S. Attorney David G. Tobin of Lelling’s Major Crimes Unit prosecuted the case.
Former Vice President of Insys Pharmaceuticals Pleads Guilty to Racketeering SchemeRead the Press Release
BOSTON – The former Vice President of Sales of Insys Therapeutics pleaded guilty today in federal court in Boston to his role in a nationwide conspiracy to bribe medical practitioners to unnecessarily prescribe a fentanyl-based pain medication and defraud healthcare insurers.
Alec Burlakoff, 44, of West Palm Beach, Fla., pleaded guilty before U.S. District Court Judge Allison D. Burroughs to one count of racketeering conspiracy. Burlakoff and his co-conspirators – all former managers and executives at Insys – were initially indicted in December 2016; an October 2017, superseding indictment also charged John Kapoor, the founder and former executive chairman of Insys. Today, Burlakoff pleaded guilty to the second superseding indictment.
Burlakoff, and, allegedly, other Insys employees, used various methods to bribe medical practitioners in various states, many of whom operated pain clinics, to induce them to prescribe Subsys. Subsys is a powerful, fentanyl-based pain medication intended to treat cancer patients suffering intense breakthrough pain.
One method employed by Burlakoff and his alleged co-conspirators was the Insys Speaker Program (ISP), which was used as a vehicle to bribe doctors and other clinicians to prescribe Subsys to their patients. Insys sales representatives targeted and promised medical professionals the opportunity to be paid Insys speakers if they wrote prescriptions for Subsys. The more prescriptions written for Subsys – and the higher the dose – the more speaking opportunities were awarded and more fee paid to the clinicians. However, the speaking opportunities were merely an excuse for the clinician and friends to have a meal and drinks paid for by Insys, and for the speaker to be paid. As a result, insurers were defrauded by paying reimbursements for Subsys, a more expensive drug than its nearest competitor, and often prescribed when medically unnecessary and inappropriate.
Other methods were also used to bribe and induce medical professionals to prescribe Subsys. For example, employees of the practitioner’s office were moved onto the Insys payroll. Additionally, relatives and girlfriends of the medical professionals who were high volume writers were also hired.
As a result of the conspiracy, many patients were inappropriately prescribed and overprescribed Subsys, which is highly addictive and dangerous.
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, or twice the amount of pecuniary gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Phillip Coyne, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services; Mark A. McCormack, Special Agent in Charge of the FDA Office of Criminal Investigations’ Metro Washington Field Office; Carol S. Hamilton, Acting Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Leigh-Alistair Barzey, Special Agent in Charge of the Defense Criminal Investigative Service (DCIS), Northeast Field Office; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service; Matthew Modafferi, Special Agent in Charge of the U.S. Postal Service, Office of Inspector General, Northeast Area Field Office; Sean Smith, Special Agent in Charge of the Department of Veterans Affairs, Office of Inspector General, Northeast Field Office; and Thomas South, Deputy Assistant Inspector General for Investigations, Office of Inspector General of the U.S. Office of Personnel Management made the announcement today. Assistant U.S. Attorneys Nathaniel K. Yeager, Fred M. Wyshak, Jr., and David G. Lazarus, of Lelling’s Office, 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.
Dominican National Pleads Guilty to Social Security FraudRead the Press Release
BOSTON - A Dominican national pleaded guilty today in federal court in Boston to Social Security fraud.
Luis Alberto Fernandez Fernandez, 28, a Dominican national residing in Salem with legal permanent resident status, pleaded guilty to one count of false representation of a Social Security number. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Feb. 27, 2019. Fernandez Fernandez was arrested in July 2018 as part of a law enforcement sweep aimed at detecting, deterring and disrupting organizations and individuals involved in various types of document, identity and benefit fraud schemes.
In September 2016, before he became a lawful permanent resident, Fernandez Fernandez applied for a Massachusetts ID card using the name, Social Security number, and date of birth of a U.S. citizen from Puerto Rico. His application was denied.
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; 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 William B. Gannon, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office, made the announcement today. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit is prosecuting the case.
Boston Man Charged with Drug TraffickingRead the Press Release
BOSTON – A Boston man was charged today in federal court in Boston with drug distribution.
Robert Santos, 24, was indicted on one count of possessing with intent to distribute crack cocaine.
The charge of possession with intent to distribute crack cocaine provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling and Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. Assistant U.S. Attorney Chris Looney of Lelling’s Criminal Division 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.
New York Woman and Charlton Woman Sentenced for Oxycodone ConspiracyRead the Press Release
BOSTON – A New York woman and Charlton woman were sentenced today in federal court in Worcester for their roles in an oxycodone trafficking conspiracy.
Amina Young, 40, of New York, was sentenced by U.S. District Court Judge Timothy S. Hillman to 30 months in prison and three years of supervised release. Jennifer Toledo, 46, of Charlton, was sentenced by Judge Hillman to eight months in prison and three years of supervised release, with the first four months to be served in home confinement. Young and Toledo each pleaded guilty to one count of conspiracy to distribute oxycodone in June 2018 and May 2017, respectively.
From August 2015 until April 2016, Toledo conspired with co-defendant John Tautenhan III to distribute oxycodone pills in and around Worcester County. On April 17, 2016, federal agents followed Toledo as she drove from Massachusetts to a restaurant in Yonkers, N.Y., to acquire oxycodone from Young. Five days later, on April 22, 2017, Toledo again drove to Yonkers to purchase additional oxycodone from Young. Investigators stopped the vehicle that Toledo was driving and seized over 500 oxycodone pills from Young and two other passengers.
Tautenhan III pleaded guilty and was sentenced in September 2017 to two years in prison.
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 Greg A. Friedholm, Chief of Lelling’s Worcester Branch Office, prosecuted the case.
Medford Woman Pleads Guilty to Social Security, Medicare, MassHealth and Food Stamp FraudRead the Press Release
BOSTON – A Medford woman pleaded guilty today in federal court in Boston to fraudulently receiving Social Security disability benefits, Medicare, MassHealth and Food Stamps.
Stephanie DiPierro, 38, pleaded guilty to three counts of theft of public funds, two counts of making false statements, and one count of falsely representing a Social Security number. U.S. District Court Judge William G. Young scheduled sentencing for Feb. 26, 2019. In November 2017, DiPierro was arrested, charged, and released on conditions.
According to the indictment that was unsealed today, from October 2007 through May 2017, DiPierro stole $73,288 in Social Security benefits, $8,455 in Medicare benefits, $8,615 in MassHealth benefits and $17,929 in Food Stamps. In September 2015, she falsely informed the Massachusetts Department of Transitional Assistance that she did not have any income other than her Social Security benefits when, in fact, she was receiving income as a result of her work as a personal care attendant. DiPierro falsely told Social Security in March 2016, while she was working as a personal care attendant, that she did not take care of any other individual. DiPierro also falsely represented her Social Security number on a time sheet submitted in connection with her work as a personal care attendant.
The charges of theft of public funds provide 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. The charges of making false statements and false representation of a Social Security number each provide 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. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Phillip M. Coyne, Special Agent in Charge of the Office of Inspector General of the U.S. Department of Health and Human Service’s Boston Regional Office; 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.
MS-13 Member Sentenced to Life in Prison for Gang Murders of Two TeenagersRead the Press Release
BOSTON – An MS-13 member was sentenced to life in prison for using social media to lure and violently murder two teenage boys in East Boston.
Edwin Gonzalez, a/k/a “Sangriento,” 23, a Salvadoran national, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to life in prison. In June 2018, after a multi-week trial, Gonzalez was convicted by a federal jury of conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO or racketeering conspiracy. In addition, the jury found that Gonzalez’s racketeering activity on behalf of MS-13 included his participation in the Sept. 7, 2015, murder of a 15-year-old in East Boston and the Jan. 10, 2016, murder of a 16-year-old in East Boston.
MS-13 is a violent, transnational criminal organization whose members have engaged in acts of violence, including murder, attempted murder, robbery, and assault, as well as other criminal activity, including narcotics trafficking, firearm possession, robbery, and witness retaliation.
MS-13 is organized into smaller groups known as “cliques” that operate throughout the United States. Gonzalez was a member of the Molinos Locos Salvatrucha clique of MS-13.
Prospective members of MS-13 are required to complete an initiation process and then progress through the ranks: from “paro” to “chequeo” to “homeboy.” To be promoted within the gang, MS-13 members are required to commit acts of violence, usually against rival gang members or those suspected of cooperating with law enforcement. Becoming a “homeboy” typically requires the commission of a murder.
The investigation revealed that Gonzalez was the driving force behind, and key participant in, two separate murders in Massachusetts.
On Sept. 7, 2015, Gonzalez and three other MS-13 members lured a 15-year-old boy through social media to Constitution Beach in East Boston. Convinced that the victim was a gang rival, Gonzalez and others targeted him by pretending to be a girl on Facebook and lured the victim to the beach for a date. When the victim arrived at Constitution Beach, Gonzalez and three other MS-13 members took turns stabbing the victim repeatedly, leaving him bleeding to death on a public beach. The victim had approximately 33 sharp force injuries and multiple blunt force injuries.
The other three MS-13 members who committed the September 2015 murder with Gonzalez—Carlos Melara, a/k/a “Chuchito,” a/k/a “Criminal,” Henry Parada Martinez, a/k/a “Street Danger,” and Rene Mejia Flores a/k/a “Gasper,”—were also charged in connection with this investigation and pleaded guilty before trial. Melara was sentenced to 36 years in prison, while Parada Martinez and Mejia Flores are awaiting sentencing.
On Dec. 7, 2015, Gonzalez was promoted to “homeboy,” or full-member of the gang, to reward him for the murder he committed on behalf of MS-13. Melara and Mejia Flores were also promoted to “homeboys” for their role in the murder.
On January 10, 2016, Gonzalez and three other MS-13 members lured a 16-year-old boy through social media to Falcon Street in East Boston. Again, convinced that the victim was a gang rival, Gonzalez and others targeted him by pretending to be a girl on Facebook. Gonzalez then went to pick up the victim, pretending to be a relative of the girl that the victim was supposed to meet for a date. When Gonzalez arrived with the victim in East Boston, the MS-13 members attacked the victim. Three of the MS-13 members, including Gonzalez, were armed with large knives and stabbed the victim repeatedly, while the fourth MS-13 member fired multiple gunshots into the victim. Gonzalez and the other MS-13 members then ran away, leaving the teenager bleeding to death on a public street. The victim had approximately 48 sharp force injuries, multiple gunshot wounds, and multiple blunt force injuries.
One of the murderers was captured on tape stating that the “the dude [victim] was left completely destroyed” and “Sangriento [Gonzalez] whacked the guy’s hands with a machete.” The day after the murder, Gonzalez himself was captured on tape admitting to the murder and discussing further violence against potential rivals, stating, “we’re going to leave all of them chopped in pieces.”
The other three MS-13 members who committed the January 2016 murder with Gonzalez—Edwin Diaz, a/k/a “Demente,” Jairo Perez, a/k/a “Seco,” and Rigoberto Mejia, a/k/a “Ninja”—were also charged in connection with this investigation and pleaded guilty before trial. Diaz and Perez were each sentenced to 35 years in prison, while Mejia received 27.5 years in prison.
Gonzalez was one of 49 defendants convicted as part of this investigation. All nine defendants who went to trial were convicted and 40 others pleaded guilty. In all, 16 defendants, including Gonzalez, were found to have committed or knowingly participated in murders.
United States Attorney Andrew E. Lelling; Harold H. Shaw, 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 Thomas Turco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney John P. Pappas; 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 today. The U.S. Marshals Service has provided crucial assistance with the case.
Boston-Area Investment Adviser Sentenced for FraudRead the Press Release
BOSTON – A Boston-area investment adviser was sentenced today in federal court in Boston for using his clients’ funds to make his own investments and to pay personal expenses.
James Polese, 52, of Wenham, was sentenced by U.S. Senior District Court Judge Mark L. Wolf to five years in prison, three years of supervised release, and ordered to pay a fine of $30,000 and restititution in the amount of $462,000. In April 2018, Polese pleaded guilty to one count of conspiracy and investment adviser fraud, eight counts of bank fraud, and one count of aggravated identity theft. In June 2018, co-conspirator Cornelius Peterson, 29, of Newton, was sentenced to 20 months in prison, two years of supervised release and ordered to pay restitution in the amount of $462,000.
From approximately 2014 to June 2017, Polese and Peterson misappropriated approximately half a million dollars from their clients by transferring funds out of their clients’ accounts without their knowledge or consent. Specifically, on Aug. 20, 2014, Polese and Peterson used $100,000 from a client’s account to invest in a wind farm project despite the fact that it was not an investment opportunity authorized by their company. On May 15, 2015, Polese and Peterson used $400,000 from another client’s account to back a letter of credit in support of the wind farm project. On multiple occasions in 2017, Polese transferred funds from a client’s account to pay personal expenses, including college tuition payments and credit card bills. Polese and Peterson were terminated from the company in June 2017.
United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The U.S. Securities & Exchange Commission also provided valuable assistance with the investigation. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Securities and Financial Fraud Unit prosecuted the case.
Worcester Man Pleads Guilty to Fentanyl, Cocaine and Firearm ChargesRead the Press Release
BOSTON – A Worcester man pleaded guilty today in federal court in Worcester to drug and firearm charges.
Cleon Riley, 36, pleaded guilty to one count of being a felon in possession of firearms and ammunition, one count of distributing cocaine, and one count of possessing fentanyl with intent to distribute. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Feb. 26, 2019. Riley has been detained since his arrest in May 2018.
On multiple occasions in 2018, Riley sold cocaine to a confidential source in Worcester. On one occasion in February 2018, Riley sold powder cocaine, crack cocaine, and a .9mm Beretta handgun, which had previously been reported as stolen, to the same source.
Riley was arrested by local police in May 2018. At the time of his arrest, he was in possession of seven bags of fentanyl and 20 bags of cocaine. Law enforcement also located additional quantities of fentanyl and cocaine in a car used by Riley, as well as a large quantity of fentanyl, digital scales, cutting agents, and packaging materials in an apartment that Riley used.
The drug charges carry sentences of no greater than 30 years in prison, at least six years and up to a lifetime of supervised release, and a $2 million fine. The firearm charge provides for a sentence of no greater than 10 years in prison, three years of supervised release and a $250,000 fine. Riley will face enhanced penalties if he is found to be in violation of the Armed Career Criminal Act. 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 Lawrence J. Panetta, Acting 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 Worcester County District Attorney’s Office and the Worcester Police Department. Assistant U.S. Attorney Bill Abely of Lelling’s Worcester Branch Office is prosecuting the case.
Former Reservist Sentenced to More than 11 Years in Prison for Stealing Weapons from Army Reserve Center, Escaping from Prison & Attempted Bank RobberyRead the Press Release
BOSTON – A former Army Reservist was sentenced today in federal court in Worcester for stealing six machine guns and 10 handguns from a U.S. Army Reserve facility, escaping from federal prison, and attempting to rob two banks.
James W. Morales, 37, of Cambridge, was sentenced by U.S. District Court Judge Timothy S. Hillman to 138 months in prison and three years of supervised release. In November 2017, Morales pleaded guilty to one count of being a felon in possession of a firearm; one count of possession of a machine gun; one count of possession of stolen firearms; one count of theft of government property; one count of conspiracy to possess, store, conceal, and sell stolen weapons; one count of escape; and two counts of attempted bank robbery.
On Nov. 14, 2015, Morales broke into a weapons vault at the Lincoln Stoddard United States Army Reserve Center in Worcester and stole six M-4 Carbines and 10 M-11 handguns. Morales was familiar with the layout of the facility, having been stationed there prior to his discharge from the Army Reserve.
Morales gained access to the weapons by breaking a kitchen window located near the room that contained the vault, climbing to the top of the vault, and cutting a hole through its ceiling. The sharp edges of the ceiling caused Morales to cut himself, leaving behind DNA, which was matched to Morales three days after the robbery.
Upon identifying Morales through the DNA database, law enforcement learned that Morales was on bail for child rape charges pending in Middlesex Superior Court. One of the conditions of his release required him to wear an electronic monitoring bracelet, which he wore during the robbery. In addition, surveillance video depicting a dark colored BMW X1 parked at a building adjacent to the U.S. Army facility was recovered. In the video, a man can be seen going to and from the car with duffle bags. Soon after Morales was identified, law enforcement learned that Morales was renting a BMW X1 at the time of the robbery.
After the robbery, Morales rented another vehicle, and GPS data from the vehicle showed that Morales had travelled to New York City, where he was located and arrested on Nov. 18, 2015, in Long Island. Inside his vehicle, four M-4 Carbines and two M-11 handguns were recovered with serial numbers matching those stolen from the Armory.
In a statement admitting his role in the robbery of the Army Reserve facility, Morales explained that he sold five of the handguns to two individuals in Dorchester with the help of Tyrone James and Ashley Bigsbee, who facilitated the transaction. Morales claimed to have given James and Bigsbee several hundred dollars, one of the M-4 Carbines and one of the M-11 handguns as payment for assisting with the sales. In April 2017, James was sentenced to 57 months in prison. In March 2017, Bisgbee was sentenced to 21 months in prison.
Following his arrest, Morales was detained at the Donald W. Wyatt Detention Facility in Central Falls, R.I. On Dec. 31, 2016, Morales escaped from the prison by climbing a basketball hoop, jumping onto a roof, and going through a barbed wire fence.
On Jan. 5, 2017, Morales was captured on surveillance video entering a branch of Bank of America in Cambridge and attempting to rob the bank by passing the teller a note that read, “I WANT ALL OF THE LARGE DENOMINATIONS W/BAND’S FROM THE 2ND (BOTTOM) TILL NOW BE CALM – BE COOL – NO DYE PACKS.” The teller was able to flee to the back of the bank behind a locked door, and Morales exited the bank without any money.
Later that same day, Morales, again captured on surveillance video, entered a branch of Citizen’s Bank in Somerville and attempted to rob the bank by passing the teller a note that read, “I WANT THE MONEY IN THE TILL NOW!! 100’s 50’s 20’s Be Calm, Be Cool, be Quick.” The teller stated, “I can’t,” and Morales wished the teller a nice day and exited the bank.
After a foot pursuit in Somerville, Morales was apprehended by law enforcement; he admitted to attempting to rob both banks.
United States Attorney Andrew E. Lelling; United States Attorney Stephen G. Dambruch for the District of Rhode Island; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; United States Marshal John Gibbons for the District of Massachusetts; United States Marshal Jaime A. Hainsworth for the District of Rhode Island; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Cambridge Police Commissioner Branville G. Bard; and Somerville Police Chief David Fallon made the announcement today. Assistant U.S. Attorney Mark Grady of Lelling’s Criminal Division prosecuted the case.
Two Western Massachusetts Men Charged with Armed RobberyRead the Press Release
BOSTON – Two western Massachusetts men were arrested and charged today in federal court in Springfield in connection with at least nine armed robberies throughout western Massachusetts.
Alfredo Aldeco, 32, of Holyoke, and Emilio Rivera, 30, of Springfield, were each charged by criminal complaint with one count of interference with commerce by robbery and aiding and abetting. Rivera and Aldeco were arrested today and will appear in federal court in Springfield today at 2:00 p.m.
According to court documents, between Oct. 25, 2018, and Nov. 14, 2018, there were at least nine armed robberies of convenience stores located in Holyoke, Chicopee, Florence, West Springfield, and Agawam. Investigations into the robberies led law enforcement to determine that the same two men were involved in many of the robberies. During each of the robberies, a suspect brandished a distinctive long-barreled, black firearm-type object, and during at least one of the robberies, the suspect threatened to “come back and kill” the store clerk if the clerk called the police.
The charge of interference with commerce by robbery provides for a sentence of no greater than 20 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 Lawrence Panetta, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives made the announcement. The West Springfield, Holyoke, Agawam, Chicopee, Northampton, and Springfield Police Departments 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 defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Owners of Home Healthcare Company Plead Guilty to Tax FraudRead the Press Release
BOSTON – The co-owners of a Boston-area home healthcare company pleaded guilty in federal court in Boston yesterday for underreporting income to the IRS resulting in over $1 million in losses.
Hannah Holland, 51, of Quincy, and Sheila O’Connell, 51, of North Weymouth, pleaded guilty to an Information charging them with one count of conspiracy to defraud the United States and three counts of aiding and assisting in the preparation of false tax returns. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing to Feb. 13, 2019.
According to court documents, Holland and O’Connell co-owned and operated Erin’s Own Home Healthcare Inc. (“Erin’s Own”), a home healthcare business. Between 2010 and 2014, Holland and O’Connell cashed over $3.5 million of Erin’s Own business checks through nominee bank accounts controlled by an unnamed individual. During this time period, Holland also personally cashed over $77,000 of Erin’s Own business receipts. None of these funds were ever reported to the IRS or accounted for in the company’s tax filings. Instead, Holland and O’Connell provided their tax preparer with a limited set of the financial records that did not cover the substantial amounts of business funds Holland and O’Connell diverted. As a result of the underreporting, Erin’s Own caused a loss of $1,126,112 to the IRS.
The conspiracy charge provides for a sentence of no greater than five years in prison, three years supervised release, and a fine $250,000. The charge of aiding and assisting in the preparation of false tax returns provides for a sentence of no greater than three years in prison, one year 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 Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorney Jordi de Llano, Deputy Chief of Lelling’s Securities and Financial Fraud Unit, and Trial Attorney Brittney Campbell of the Department of Justice’s Tax Division are prosecuting the case.
Owners of Home Healthcare Company Plead Guilty to Tax FraudRead the Press Release
The co-owners of a Boston-area home healthcare company pleaded guilty in federal court yesterday for tax crimes resulting in over $1 million in losses, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Andrew E. Lelling for the District of Massachusetts.
Hannah Holland, 51, of Quincy, Massachusetts, and Sheila O’Connell, 51, of North Weymouth, Massachusetts, each pleaded guilty to one count of conspiracy to defraud the United States and three counts of aiding and assisting in the preparation of false tax returns.
According to court documents, Holland and O’Connell co-owned and operated Erin’s Own Home Healthcare Inc. (Erin’s Own), a home healthcare business. Between 2010 and 2014, Holland and O’Connell directed another individual to cash over $3.5 million of Erin’s Own business checks through nominee bank accounts. During this time, Holland also personally deposited or cashed over $77,000 of Erin’s Own business checks. None of these funds were reported to the Internal Revenue Service (IRS) or accounted for in the company’s tax filings. Instead, Holland and O’Connell provided their tax preparer with a limited set of financial records that did not cover the substantial amounts of business funds Holland and O’Connell diverted. As a result of the underreporting, Erin’s Own caused a loss of $1,126,112 to the United States.
Sentencing is scheduled for February 13, 2019. Holland and O’Connell each face a maximum sentence of five years in prison on the conspiracy count and three years in prison on each count of aiding and assisting in the preparation of false tax returns, as well as a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Lelling commended special agents from IRS-Criminal Investigation, who are investigating the case, and Assistant U.S. Attorney Jordi de Llano, Deputy Chief of the United States Attorney’s Securities and Financial Fraud Unit, and Tax Division Trial Attorney Brittney Campbell, who are prosecuting the case. Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Amesbury Man and Salisbury Woman Arrested for Child Pornography Offenses, Including ProductionRead the Press Release
BOSTON – An Amesbury man and a Salisbury woman were arrested and charged separately in federal court in Boston in connection with various child pornography offenses, including the sexual exploitation of an infant.
Thomas Cross, 28, of Amesbury, and Desiree Daigle, 23, of Salisbury, were arrested on Nov. 15, 2018, in the course of two separate search warrant executions. Cross was charged with possession, receipt, and distribution of child pornography and Daigle was charged with sexually exploiting a child. On Nov. 19, 2018, Daigle appeared in federal court and was ordered detained pending trial. Cross appeared in federal court on Nov. 20, 2018, and after a hearing, U.S. District Court Magistrate Judge Marianne Bowler took the matter of detention under advisement.
According to the charging documents, on Nov. 15, 2018, law enforcement executed a search warrant at Cross’s home and seized several electronic devices. Upon reviewing the devices on scene, law enforcement observed files containing child pornography, as well as chats between Cross and a person he identified as Daigle, in which they exchange various child pornography files. Some of the images depict an infant known to Daigle, apparently taken in Daigle’s home. In the course of the chat, the two discuss plans for Cross to meet the child in person so that they can sexually abuse the child together. Both Cross and Daigle admitted to exchanging child pornography with each other. Forensic analysis of devices seized from both defendants is ongoing.
The charge of sexual exploitation of children provides for a mandatory minimum sentence of 15 years and up to 30 years in prison. The charges of distribution and receipt of child pornography each provide for a mandatory minimum sentence of five years and up to 20 years in prison. The charge of possession of child pornography provides for a sentence of no greater than 20 years in prison. All of the charges provide for 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 Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Valuable assistance was provided by the Amesbury, North Andover, Salisbury, Arlington, Billerica, Methuen, and Haverhill Police Departments. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, is prosecuting the case.
The case 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 defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Virginia Couple Pleads Guilty to Operating Interstate Prostitution RingRead the Press Release
BOSTON – A Virginia husband and wife pleaded guilty today in federal court in Boston to their roles in operating a long-running interstate prostitution ring.
Yoon I. Kim, 36, and Taehee Kim, a/k/a “Hyunsook Kim,” 46, both of Haymarket, Va., each pleaded guilty in separate hearings to one count of conspiracy to persuade, induce, entice, or coerce individuals to travel in interstate commerce to engage in prostitution, and one count of conspiracy to engage in money laundering. U.S. District Court Judge William G. Young scheduled Yoon Kim’s sentencing for Feb. 12, 2019, and U.S. Senior District Court Judge Douglas P. Woodlock also scheduled Taehee Kim’s sentencing for Feb. 12, 2019.
Co-conspirators Jineok Kim, 38, of Watertown, Mass., and Susan Bashir, a/k/a “Susan Redmon,” a/k/a “Susan Redmond,” 41, of Stone Mountain, Ga., previously pleaded guilty to the same charges. Kyung Song, 52, of Lexington, Mass., pleaded guilty to conspiracy to engage in money laundering. Bashir is scheduled to be sentenced on Dec. 11, 2018; Jineok Kim on Jan. 9, 2019; and Song on Jan. 29, 2019.
From at least 2013 until March 2018 when they were arrested, the defendants operated an interstate prostitution network with multiple brothels in high-end apartments in Cambridge, Mass.; Atlanta, Ga.; and eastern Virginia. They advertised appointments with Asian women primarily on three websites: www.bostonasiandolls.com, www.exoticasiansatlanta.com, and www.redhotflowers69.com. The women advertised on the websites were moved from city to city within the network, at Taehee Kim’s direction, working as prostitutes for the organization. Co-conspirators collected the cash earnings from the women working at the brothels and funneled the money into accounts controlled by Yoon and Taehee Kim. Co-conspirators also used U.S. Postal money orders and the U.S. Mail to transport proceeds around the prostitution network. Yoon Kim rented several of the brothel locations, including multiple apartments in and around Cambridge.
The charge of conspiracy to persuade, induce, entice, or coerce women to travel in interstate commerce to engage in prostitution 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/loss, whichever is greater. The charge of conspiracy to engage in money laundering provides for a sentence of no greater than 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 transactions, 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 Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Joseph W. Cronin, Postal Inspector in Charge of the U.S. Postal Inspection Service, Boston Field Division; and Cambridge Police Commissioner Branville G. Bard Jr. made the announcement today. Assistant U.S. Attorneys David J. D’Addio and Amy Harman Burkart of Lelling’s Civil Rights Enforcement Team are prosecuting the case.
Salvadoran National Pleads Guilty to Failure to Register as a Sex OffenderRead the Press Release
BOSTON - A Salvadoran national pleaded guilty today in federal court in Boston to failure to register as a sex offender as required under the Sex Offender Registration and Notification Act (SORNA).
Melvin Velasquez, 34, pleaded guilty to one count of failure to register as a sex offender. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for Feb. 28, 2019. Velasquez was charged by complaint in August 2018 and has been in custody since.
In 2007, Velasquez was convicted in New York of one count of rape in the third degree and sentenced to eight months in jail. Velasquez was subsequently required to register as a sex offender in any jurisdiction where he resided or worked. Velasquez, who was determined to be illegally present in the United States, was sentenced on the rape charge, and, upon completion of his sentence in 2008, deported to El Salvador.
Sometime thereafter, Velasquez returned to the United States and assumed a false identity. In May 2018, Velasquez, using his alias, was arrested and charged with various motor vehicle violations. Velasquez’s fingerprints were obtained and found to match the prints in his A-file and from his 2007 New York rape conviction. Law enforcement then queried the Massachusetts Sex Offender Registry Board and determined that Velasquez had not registered, as required by law, in Massachusetts.
The charge of failure to register 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 fine. Velasquez will be subject to deportation proceedings. 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; United States Marshal John Gibbons of the District of Massachusetts; and Todd M. Lyons, Acting Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.
Orleans Investment Adviser Pleads Guilty to Multi-Million Dollar Fraud and Identity TheftRead the Press Release
BOSTON – An Orleans investment adviser pleaded guilty yesterday in federal court in Boston to defrauding her clients of more than $3 million and using those funds for her own expenses.
Kimberly Kitts, 51, 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. U.S. District Court Judge Denise J. Casper scheduled sentencing for March 20, 2019.
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.
The charge of investment adviser fraud provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $10,000. The charge of 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, whichever is greater. The charge of aggravated identity theft provides for a mandatory consecutive term of two years in prison, which must be served consecutive to any other sentence imposed by the court. 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 Harold H. Shaw, 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 is prosecuting the case.
Massachusetts Man Arrested for Obstructing Investigation into Mishandling of National Defense InformationRead the Press Release
BOSTON – A Sharon, Mass., man was arrested today and charged with trying to obstruct an investigation involving time-card fraud and the potential mishandling of classified information.
Ahmedelhadi Yassin Serageldin, 65, an Egyptian-born nationalized U.S. citizen, was arrested this morning and charged with one count of misleading conduct with intent to hinder, delay, or prevent communications to a law enforcement officer relating to the commission or possible commission of a federal offense. Serageldin was detained following an initial appearance this afternoon in federal court in Boston. A detention hearing is scheduled for Nov. 21, 2018 at 1:00 p.m.
The indictment alleges that Serageldin was a systems engineer at Raytheon Company in Massachusetts from August 1997 until he was terminated in May 2017. Serageldin had a secret-level security clearance in order to complete his assignments on several defense contracts for the U.S. government involving military radar technology.
According to court documents, in 2017, Raytheon investigated Serageldin for time-card fraud, as he was suspected of taking off every Friday from January to the end of March 2017, yet claiming on his time card that he worked on those dates. By doing so, Serageldin caused Raytheon to overcharge the federal government on the contracts he was assigned to.
The time-card fraud investigation allegedly led Raytheon to uncover evidence that Serageldin had downloaded a substantial number of files from Raytheon’s computer network and had connected removable electronic storage devices to the network in violation of Raytheon’s security policy. During the company’s internal investigation, the indictment alleges that Serageldin engaged in misleading conduct to hinder, delay, or prevent Raytheon employees from communicating with law enforcement about his time-card fraud and his potential mishandling and retention of classified information and national defense information. The indictment alleges that Serageldin did this by:
- Claiming that he was working on company business at home and that he was authorized to do so;
- Misrepresenting why and when he had downloaded files from Raytheon’s network;
- Falsely denying that he possessed an external hard drive or thumb drive and then later, making fraudulent and misleading statements about how he had used an external hard drive (a Western Digital external hard drive);
- Falsely denying that he possessed any Raytheon records or classified documents at his residence;
- Delaying the production of his Western Digital external hard drive and a personal laptop computer to Raytheon investigators, which both contained information pertaining to his work at Raytheon on U.S. military programs;
- Accessing the files on, and changing the content of, his Maxell thumb drive despite having been instructed not to do so; and
- Delaying delivery of his personal laptop computer to Raytheon so he could conduct research on how to wipe his personal laptop clean.
The charge of misleading conduct with intent to hinder, delay, and prevent the communication to a law enforcement officer relating to the commission and possible commission of a federal offense provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gain or loss, whichever is greatest, restitution, and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Leo Lamont, Special Agent in Charge of the Naval Criminal Investigative Service, Northeast Field Office, made the announcement today. Assistance with the investigation was provided by Defense Criminal Investigative Service, Air Force Office of Special Investigations, and Internal Revenue Service’s Criminal Investigations in Boston. Raytheon Company has cooperated with the investigation, which was launched after they notified federal authorities about the suspicious conduct. Assistant U.S. Attorney Scott L. Garland, Deputy Chief of Lelling’s National Security Unit, is prosecuting this case with assistance of Trial Attorney Scott Claffee of the Justice Department’s Counterintelligence and Export Control Section of the National Security Division.
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.
Fugitive in Stock Manipulation Conspiracy Charged with Bail JumpingRead the Press Release
BOSTON – A convicted fraudster who was apprehended last week after repeatedly failing to appear for his sentencing hearing was indicted today for bail jumping.
David J. Aubel, 60, of Matthews, N.C., was indicted today on one count of failure to appear.
In November 2017, Aubel pleaded guilty to one count of conspiracy to commit securities and wire fraud, one count of securities fraud, and three counts of wire fraud in connection with his role in a stock manipulation scheme. Aubel had been released by the Court pending sentencing.
According to court documents, in September and October 2018, Aubel repeatedly failed to appear for scheduled, and repeatedly re-scheduled, sentencing hearings. Each time, Aubel informed the Court by phone or through counsel that his father was in poor health and that he was at his bedside. U.S. District Court Chief Judge Patti B. Saris rescheduled Aubel’s sentencing hearing for Oct. 18, 2018; however, Aubel once again failed to appear at that hearing – informing the Court through counsel that he had been hospitalized the night before. Aubel’s sentencing was then rescheduled for Nov. 5, 2018. Again, Aubel failed to appear for his sentencing on that day. Subsequently, the Court issued a warrant for his arrest and on Nov. 16, 2018, Aubel was arrested as he exited a hotel in Charlotte, NC.
The charge of failure to appear provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; John Gibbons, U.S. Marshal for the District of Massachusetts; Gregory Allyn Forest, U.S. Marshal of the Western District of North Carolina; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Jordi de Llano, Deputy Chief of Lelling’s Securities & Financial Fraud Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.