District of Massachusetts
Press releases recorded for this federal judicial district.
Two Springfield Police Officers Indicted for Unreasonable Force Against Two JuvenilesRead the Press Release
BOSTON – Two Springfield Police Officers – one current and one former - were arrested today and charged in federal court in Springfield, Mass., in connection with using unreasonable force against two Latino juveniles during an arrest in 2016. One of the officers is also charged with threatening two juveniles during an interrogation and falsifying subsequent reports regarding the incident.
Gregg A. Bigda, 48, of Wilbraham, was charged in an indictment unsealed today with one count of deprivation of rights under color of law – excessive force, two counts of deprivation of rights under color of law – abusive interrogation, and one count of obstructing justice by writing a false report.
Steven M. Vigneault, 48, of East Longmeadow, was charged in the same indictment with one count of deprivation of rights under color of law – excessive force. Bigda and Vigneault will appear in federal court in Springfield later today.
“Even in the face of adversity, law enforcement officers are expected to conduct themselves professionally, respectfully, and with integrity,” said U.S. Attorney Andrew E. Lelling. “They are ambassadors for the rule of law, and when they themselves break those laws, they violate not just the rights of their victims, but compromise the public’s trust in law enforcement. My office is committed to holding our public servants accountable under the law and prosecuting those who abuse their positions of power.”
“Most law enforcement officers are dedicated, honest, and fully committed to building trust within their communities, but those who break the law stain the reputation of the law enforcement profession,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “Badges and guns do not come with the authority to ignore the Constitution or the rights of others, and those who violate it will be held accountable.”
It is alleged that on Feb. 27, 2016, Bigda used unreasonable force against a juvenile, spat on him, and said, “Welcome to the white man’s world,” and that Vigneault used unreasonable force against a second juvenile. According to the indictment, both officers’ use of unreasonable force involved a dangerous weapon, resulting in bodily injury.
After the arrests, Bigda allegedly interrogated two juveniles without their parents present, without reading them their Miranda rights, and by issuing various threats. For example, Bigda made the following threats against one juvenile: to “crush [the juvenile’s] skull and “fu----- get away with it;” “fu----- bring the dog back [and] let him go after” the juvenile; “fu----- kill [the juvenile] in the parking lot;” “charge [the juvenile] with killing Kennedy and fu----- make it stick;” “stick a fu----- kilo of coke in [the juvenile’s] pocket and put [the juvenile] away for fu----- 15 years;” and “kick [the juvenile] right in the fu----- face as soon as [they] cross the Springfield line.” Bigda made the following threats against a second juvenile: to “beat the fu-- out of [the juvenile]..;” “tune [the juvenile] the fu—up;” and “bloody [the juvenile’s] body.”
The indictment further alleges that Bigda subsequently attempted to obstruct the investigation into the assaults of the juveniles by falsifying his reports to the Springfield Police Department Internal Investigations Unit, writing that he did not kick anyone or see any officer kick anyone during the course of the arrests of the juveniles. Bigda filed a second report in which he denied spitting on anyone or yelling “welcome to the white man’s world” during the arrest of the juveniles.
The charges of deprivation of civil rights under color of law resulting in injury or using or threatening to use a dangerous weapon 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. The charge of deprivation of civil rights under color of law provides for a sentence of no greater than one year in prison, one year of supervised release, and a fine of up to $100,000. The charge of falsifying a police report 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; Acting Assistant Attorney General John M. Gore of the Justice Department’s Civil Rights Division; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorneys Deepika Bains Shukla and Katharine Wagner of Lelling’s Springfield Branch Office and Trial Attorney Christopher J. Perras of the Department of Justice’s Civil Rights Division are prosecuting the case.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
UPDATE: Gregg Bigda was acquitted by a federal jury in December 2022.
Romanian National Sentenced and Two Others Plead Guilty in Connection with ATM Skimming SchemeRead the Press Release
BOSTON – One Romanian national was sentenced and two Romanian nationals pleaded guilty yesterday in federal court in Boston in connection with an ATM skimming scheme operating throughout Massachusetts and other states including Connecticut, New York and South Carolina.
Nicusor Bonculescu, 24, was sentenced by U.S. District Court Judge William G. Young to three years in prison and three years of supervised release. Judge Young also ordered Bonculescu to pay restitution of $72,922. In March 2018, Bonculescu pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, conspiracy to use counterfeit access devices and aggravated identity theft.
During separate hearings, Suedin Chiciu, 28, and Florinel Vaduv, 22, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity and conspiracy to use counterfeit access devices. Vaduva also pleaded guilty to aggravated identity theft. Judge Young scheduled sentencing hearings for Jan. 19, 2019. In May 2017, Bonculescu, Vaduva, and twelve others were indicted in connection with the ATM skimming scheme. In August 2018, Chiciu was added to the case by superseding indictment.
The defendants, except for one, were members of the Hornea Crew (“the Crew”), led by Constantin Denis Hornea and Ludemis Hornea, and engaged in ATM skimming – obtaining debit card numbers and PINs from unsuspecting bank customers, creating counterfeit cards, and making unauthorized withdrawals from the victims’ bank accounts.
Over a period of 18 months, the Crew installed skimming devices and made unauthorized withdrawals in seven states, including Massachusetts. In particular, members of the Crew installed skimming devices in the following locations: Amherst, Bellingham, Billerica, Braintree, Chicopee, Quincy, Southwick, Waltham, Weymouth, and Whately, Mass.; Enfield, Conn.; Columbia, Greenville, Greenwood, Mauldin, and Saluda, S.C.; Savannah, Ga.; and Yadkinville, N.C. The Crew made unauthorized withdrawals at ATMs in approximately 29 Massachusetts towns; seven Connecticut towns; six New York towns; Salem, N.H.; and Sumter, S.C.
Members of the Crew transferred money throughout the United States and to Romania and the People’s Republic of China. Some of those transfers were for the purchase of skimming devices and related components from abroad.
In May 2018, the leaders of the conspiracies, Constantin Denis Hornea, 23, and his brother Ludemis Hornea, 21, were sentenced by Judge Young. Constantin Hornea was sentenced to 65 months in prison, three years of supervised release and ordered to pay $242,141 in restitution and a money judgment of $54,260. Ludemis Hornea was sentenced to 42 months in prison, three years of supervised release and ordered to pay $57,422 in restitution and a money judgment of $11,124. Of the 15 defendants charged in the case, seven have been convicted and sentenced, three have pleaded guilty and are awaiting sentencing, three are awaiting trial and two have not been arrested.
The charge of conspiracy to conduct enterprise affairs through a pattern of racketeering conspiracy provides for a sentence of no greater than 20 years in prison, three years of supervised release and fine of $250,000. The charge of conspiracy to use counterfeit access devices provides for a sentence of no greater than five years in prison, three years of supervised release and fine of $250,000. The charge of aggravated identity theft provides for a mandatory, consecutive sentence of two years in prison, one year 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; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement today. Assistance with the investigation was also provided by the Internal Revenue Service’s Criminal Investigations in Boston; U.S. Secret Service; U.S. Postal Service; Massachusetts Department of Correction; U.S. Customs and Border Protection; the Amherst, Billerica, Braintree, Boston, Quincy, Southwick, Waltham, Whately, and Westwood Police Departments; Connecticut State Police; Greenwich Police Department; the New York City Police Department; Houston Police Department; South Carolina Law Enforcement Division; Richland County (South Carolina) Sheriff’s Department; Florence and Saluda (South Carolina) Police Departments; and the Solicitor’s Offices of Greenville and Saluda Counties. Assistant U.S. Attorney Timothy E. Moran of Lelling’s Organized Crime and Gang Unit is prosecuting the case.
Businessman Indicted for Conspiring to Bribe Senior Officials of the Republic of HaitiRead the Press Release
BOSTON – A businessman was charged in a superseding indictment filed yesterday in federal court in Boston for conspiring to bribe senior officials of the Republic of Haiti, and to launder funds for that purpose, in connection with a planned $84 million port development project in that country.
Roger Richard Boncy, 74, a dual U.S. and Haitian citizen who resides in Madrid, Spain, was charged in a superseding indictment with one count each of conspiracy to violate the Travel Act and the Foreign Corrupt Practices Act, one count of violating the Travel Act, and one count of money laundering conspiracy. In October 2017, Boncy’s co-conspirator, Dr. Joseph Baptiste of Fulton, Md., was originally charged by indictment in this case, and is scheduled to stand trial on Dec. 3, 2018, in federal court in Boston.
According to the indictment, Boncy and Baptiste solicited bribes from undercover agents in Boston who posed as potential investors in infrastructure projects in Haiti, in connection with a proposed project to develop a port in the Mole-Saint-Nicolas area of Haiti. The proposed project was expected to cost approximately $84 million and was to involve the construction of multiple cement factories, a shipping-vessel recycling station, an international transshipment station with numerous slips for shipping vessels, a power plant, a petroleum depot and tourist facilities. During a recorded meeting at a Boston-area hotel, Boncy and Baptiste allegedly told the agents that they would funnel the payments to Haitian officials through a non-profit entity that Baptiste controls – which is based in Maryland and purports to help impoverished residents of Haiti – in order to secure government approval of the project.
The charges of conspiracy to violate the Travel Act and the Foreign Corrupt Practices Act 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. The charges of violating the Travel Act and the Foreign Corrupt Practices Act 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. 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 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 of the District of Massachusetts; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office, and Assistant Director Christopher Hacker of the FBI’s Criminal Investigative Division made the announcement. Assistant U.S. Attorney Kriss Basil of Lelling’s Securities and Financial Fraud Unit and Trial Attorney Elina A. Rubin-Smith of the Criminal Division’s Fraud Section are prosecuting the case.
The charges contained in the charging document are accusations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
UPDATE: Criminal charges against the defendants, Joseph Baptiste and Roger Boncy, were dismissed in June 2022.
Wakefield Man Pleads Guilty in Connection with Decade-Long Mortgage Fraud SchemeRead the Press Release
BOSTON – A Wakefield man pleaded guilty today in federal court in Boston in connection with a decade-long mortgage fraud scheme involving at least two dozen fraudulent loan transactions and $4.3 million in losses to lenders.
Joseph Bates III, 38, of Wakefield, pleaded guilty before U.S. Senior District Court Judge Douglas P. Woodlock to an Information charging him with one count of conspiracy, three counts of wire fraud affecting a financial institution, and two counts of bank fraud. A sentencing date has not yet been scheduled. One of Bates’ alleged co-conspirators, George Kritopoulos, 46, of Salem, was indicted on related charges in September 2018, and another participant, David Plunkett, 52, of Lynn, was charged by Information.
According to the charging documents, from 2006 through 2015, Bates and others engaged in a scheme to defraud banks and other financial institutions by causing false information to be submitted to those institutions on behalf of borrowers – people recruited to purchase properties – located primarily in Salem. The properties were usually multi-family buildings with two-to-four units, which the co-conspirators then converted into condominiums. The co-conspirators recruited other borrowers to purchase the individual condominium units, which were also financed by fraudulent mortgage loans.
The false information submitted to lenders included, among other things, representations concerning the borrowers’ employment, income, assets, and intent to occupy the property. Specifically, the false employment information included representations that borrowers were employed by entities that were, in fact, shell companies used to advance the fraudulent scheme. The employment information included false representations about the income that the borrowers received from the entities, when, in fact, the borrowers received little or no income from them. Furthermore, the income asserted on the borrowers’ loan applications substantially overstated their true income. The false information also included representations that the recruited borrowers intended to live in the properties that they were purchasing, when the borrowers, in fact, did not intend to do so. Plunkett allegedly assisted the scheme by preparing tax returns for some of the borrowers that contained false and inflated income. Some of those tax returns were submitted to lenders in support of the fraudulent loan applications.
Because the borrowers did not have the financial ability to repay the loans, in many instances, they defaulted on their loan payments, resulting in foreclosures and losses to the financial institutions of more than $4.3 million.
The charges of bank fraud and wire fraud affecting a financial institution each provide for sentences of no greater than 30 years in prison, five years of supervised release, and a fine of $1 million. The charge of conspiracy provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss, whichever is greater. 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; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorneys Mark J. Balthazard and Sara Miron Bloom of Lelling’s Securities and Financial Fraud Unit are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Men Charged with Distributing Heroin in NorthamptonRead the Press Release
BOSTON – Two men were charged today in federal court in Springfield with distributing heroin in Northampton.
Quincy Wilmington, 58, and Eugene Bond, 64, were each charged in separate indictments with distribution and possession with intent to distribute heroin.
According to one indictment, Wilmington distributed heroin on May 21 and June 13, 2018. The second indictment alleges that Bond distributed heroin on May 15, May 30, and Aug. 2, 2018.
The charge provides for a sentence of no greater than 20 years in prison, up to a lifetime of supervised release and a fine of up to $2 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Sean Smith, Special Agent in Charge of the Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division, Northeast Field Division; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement today. Assistant U.S. Attorney Todd E. Newhouse of Lelling’s Springfield Branch Office is prosecuting the case.
The details contained in the indictments are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Three Men Indicted for Illegal ReentryRead the Press Release
BOSTON – Three men were charged yesterday in federal court in Boston with illegally reentering the United States after being deported.
Octaviano Boche, 48, a Guatemalan national, was charged with one count of illegal reentry of a deported alien. On Sept. 7, 2018, Boche was encountered by law enforcement in Billerica and determined to be unlawfully present in the United States. Boche was previously deported on April 27, 2016. He is currently in state custody awaiting trial on unrelated charges.
Daniel Brandes-Muniz, 35, a Brazilian national previously residing in Lowell, was charged with one count of illegal reentry of a deported alien. On April 28, 2018, Brandes-Muniz was encountered by law enforcement in Billerica and determined to be unlawfully present in the United States. Brandes-Muniz was previously deported on March 22, 2004. He is currently in state custody serving a sentence on unrelated charges.
Jose Urena Vasquez, 42, a Dominican national previously residing in Lawrence, was charged with one count of illegal reentry of a deported alien. On Sept. 13, 2018, law enforcement in Middleton encountered Urena Vasquez and determined him to be illegally present in the United States. Urena Vasquez was previously deported on March 25, 2009. He is currently in state custody awaiting trial on unrelated charges.
Boche faces a sentence of up to two years in prison, one year of supervised release, and a fine of $250,000. Brandes-Muniz faces a sentence of up to 10 years in prison, three years of supervised release, and a fine of up to $250,000. Urena Vasquez faces a sentence of up to 20 years in prison, three years of supervised release, and a fine of up to $250,000. All three defendants will be subject to deportation upon completion of any sentences imposed. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling 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.
The details contained in the indictments are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lynn Man Arrested in Multi-Million Dollar Lottery ScamRead the Press Release
BOSTON - A Lynn man was arrested today on tax fraud charges in connection with a “ten-percenting” scheme, in which he purchased millions of dollars’ worth of winning Massachusetts state lottery tickets at a discount in order to help the ticket holders avoid taxes on the winnings. In addition, two store owners have pleaded guilty in connection with the scheme.
Clarance Jones, 80, was arrested and charged in a criminal complaint unsealed today with conspiring to commit tax fraud and filing false tax returns. He was released on conditions following an initial appearance today in federal court in Boston.
Two conspirators previously charged by information have pleaded guilty. George Kinslieh, 68, was charged with one count of filing false tax returns. Kinslieh pleaded guilty on Oct. 10, 2018, before U.S. District Court Judge Leo T. Sorokin, who scheduled sentencing for Feb. 4, 2019. Bhavna Patel, 44, was charged with one count of conspiring to defraud the Internal Revenue Service. Patel pleaded guilty on Oct. 16, 2018, before U.S. Senior District Court Judge Douglas P. Woodlock, who scheduled sentencing for Feb. 7, 2019.
The charging documents allege that from at least 2013 through 2015, Kinslieh and Patel, who were store owners, and others, purchased winning lottery tickets from the ticket holders for cash, at a discount to the value of the tickets, thereby allowing the ticket holders to avoid reporting the winnings on their tax returns – a scheme known as “ten-percenting.” Kinslieh and Patel gave the winning tickets to Jones, who presented them to the Massachusetts State Lottery Commission as his own, and collected the full winnings. Jones reported the winnings on his tax returns, but offset them with purported gambling losses. Jones and the store owners then shared the excess winnings.
It is alleged that for the tax years 2011 through 2017, Jones paid less than $16,000 in federal tax on a total of approximately $52,000 of reported income. During this period, Jones claimed that he was a professional gambler and that all of his winnings were offset by alleged gambling losses. Patel and Kinslieh did not report to the Internal Revenue Service or pay taxes on the income that they received from the ticket scheme.
The charge of conspiracy to commit tax fraud 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 loss or gain, whichever is greater. The charge of filing a false tax return provides for a sentence of no greater than three years in prison, one year of supervised release, a fine of $100,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement today. The Massachusetts State Lottery Commission provided assistance with the investigation. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Securities and Financial Fraud Unit is prosecuting the cases.
The details contained in the criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Securities Attorney Sentenced to Prison for Two Market Manipulation SchemesRead the Press Release
BOSTON – A California securities attorney was sentenced today for his role in schemes to manipulate the stock of two publicly traded companies, Greenway Technology and Crown Marketing.
Jehu Hand, 62, was sentenced by U.S. District Court Judge William G. Young to 66 months in prison and three years of supervised release. Restitution will be determined at a later date. In May 2018, Hand was convicted following a 13-day trial of conspiracy, securities fraud and wire fraud. Following the verdict, Hand was remanded to the custody of the U.S. Marshals.
In the scheme involving the stock of Greenway Technology, Hand and his co-conspirators used front companies to conceal their control over the vast majority of Greenway’s stock, which then became available for sale to the public after Hand authored and sent several false opinion letters to the transfer agent and brokerage firms. With millions of shares at their disposal, the conspirators proceeded to hire stock promoters to send blast e-mails to potential investors touting Greenway as a company on the verge of acquiring hotels which would cater to gay and lesbian travelers, when in fact the company lacked the requisite funds to acquire any such properties. As a result of the hype created by the false and misleading promotional campaign, Hand and his co-conspirators were able to sell millions of shares of Greenway stock to ordinary investors at artificially high prices.
The scheme involving Crown Marketing stock followed a similar pattern. Hand and his co-conspirators once again used front companies to hide their control over most of Crown’s stock, which could be sold to the public as a result of a false filing that Hand had made with the U.S. Securities and Exchange Commission. The conspirators then put out misleading press releases about the company and hired stock promoters to send blast e-mails touting Crown’s stock. In this case, Crown was billed as having revolutionary drug-delivery technology, when in actuality there was no real commercial interest in Crown’s product. As with Greenway, once Crown’s stock price and trading volume spiked, Hand and his co-conspirators dumped their stock in the market at inflated prices.
In total, between the Greenway and Crown schemes, Hand and his co-conspirators caused losses of more than $1.5 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. The United States Attorney’s Office received valuable assistance from the Securities & Exchange Commission and the Financial Industry Regulatory Authority during the investigation of this matter. Assistant U.S. Attorney James Herbert and Special Assistant U.S. Attorney Andrew Palid prosecuted the case.
Norwell Man Indicted for Sexual Exploitation of ChildrenRead the Press Release
BOSTON – A federal grand jury indicted a Norwell man today for sexually exploiting children.
Derek Sheehan, 48, was indicted on three counts of sexual exploitation of children. Sheehan was previously charged by criminal complaint with one count of the same offense. He is currently in state custody on related charges pending in the Hingham District Court. According to court documents, Sheehan is also charged - in connection with another victim - in a separate docket in Hingham District Court.
According to the charging documents, on Aug. 17, 2018, law enforcement executed a search warrant at Sheehan’s home and seized several electronic devices that allegedly revealed evidence of child pornography, including video of Sheehan abusing children in his home. Given the number of devices seized, the high storage capacity of many of the devices, and the fact that some devices appear to be encrypted, the investigation and forensic review is ongoing.
Members of the public who have questions, concerns, or information about this case should contact the U.S. Attorney’s Office at 617-748-3274. Anyone with questions about how to talk to their child about sexual abuse should visit the Plymouth County Child Advocacy Center website at https://cac.plymouthda.com/.
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 to a lifetime 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; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Plymouth County District Attorney Timothy Cruz; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Norwell Police Chief Theodore Ross made the announcement today. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood coordinator and a member of Lelling’s Major Crimes Unit, is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
MS-13 Member Pleads Guilty to Illegal Possession of Firearms and AmmunitionRead the Press Release
BOSTON – An MS-13 member pleaded guilty today in federal court in Boston to illegal possession of firearms and ammunition.
Elmer Alfaro Hercules, 20, a Salvadoran national, pleaded guilty to one count of being an illegal alien in possession of firearms and ammunition. Hercules was indicted in June 2018. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for Jan. 17, 2019.
On May 22, 2018, Hercules was arrested in possession of a loaded firearm in an East Boston park, a location where numerous MS-13 gang members have been observed and where gang-on-gang violence frequently occurs. Hercules unlawfully entered the United States in 2014 as an unaccompanied minor. In April 2015, an immigration judge ordered him deported in absentia.
The charge of being an alien in possession of a firearm and ammunition provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Hercules will also face deportation proceedings upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; 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.
Dominican National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON - A Dominican national was sentenced yesterday in federal court in Boston for illegally reentering the United States after being deported.
Herminio Polanco-Huma, 26, a Dominican national formerly residing in Lawrence, was sentenced by U.S. District Court Judge Nathaniel Gorton to six months in prison and one year of supervised release, to be served consecutive to a three year and one day state sentence he is currently serving for fentanyl distribution. In June 2018, Polanco-Huma pleaded guilty to one count of illegal reentry of a deported alien. Upon completion of his sentences, he will be subject to deportation.
In February 2017, federal law enforcement encountered Polanco-Huma in Florida and determined that he was illegally present in the United States. Polanco-Huma was placed into removal proceedings, and on Feb. 21, 2017, he was deported to the Dominican Republic.
In November 2017, Polanco-Huma was encountered while awaiting trial at the Essex County House of Corrections. Polanco-Huma’s prints were obtained and found to be a positive match to prints contained in his Alien File. In May 2018, Polanco-Huma was convicted in Essex Superior Court of distribution of fentanyl and sentenced to three years and one day in prison.
United States Attorney Andrew E. Lelling 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 prosecuted the case.
Thirty-Two Kilos of Fentanyl Worth $28.8 Million Seized and Two Dominican Nationals Arrested for TraffickingRead the Press Release
BOSTON – Two Dominican nationals were arrested yesterday and charged in federal court in Boston with fentanyl trafficking in connection with the seizure of approximately 32 kilos of fentanyl with an alleged street value of $28.8 million. A firearm and $20,000 were also recovered.
Angel Javier Morell-Oneill, 33, a Dominican national residing in Methuen, was charged with one count of possession with intent to distribute 400 grams or more of fentanyl, and Jose A. Rodriguez, 41, was charged with one count of conspiracy to possess with intent to distribute and to distribute fentanyl.
According to the charging documents, law enforcement began investigating Morell-Oneill in June 2018. The investigation culminated with a traffic stop on Pleasant Valley Street in Methuen on Oct. 22, 2018, during which officers seized two kilos of fentanyl from the front passenger seat of the vehicle Morell-Oneill was driving.
After seizing the drugs, law enforcement executed a search warrant at Morell-Oneill’s residence in Methuen where they allegedly seized approximately 30 kilos of fentanyl, drug distribution paraphernalia, and a loaded firearm.
Rodriguez was arrested when he arrived at Morell-Oneill’s residence to deliver $20,000, which was to be used to pay for half of the transportation costs of a narcotics shipment recently delivered to Morell-Oneill. The money was seized from a hidden compartment in a car driven by Rodriguez.
Rodriguez faces a sentence of no greater than 20 years in prison, a mandatory minimum of three years and up to a lifetime of supervised release and a fine of up to $1 million. Morell-Oneill faces a mandatory minimum of 10 years and up to life in prison, a mandatory minimum of five years and up to a lifetime of supervised release, and a fine of up to $10 million. 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; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement today. Valuable assistance was provided by the Somerville, Medford, Boston, Ipswich, and Arlington Police Departments. Assistant U.S. Attorney Katherine Ferguson of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Springfield Man Sentenced for Illegally Possessing Firearms and AmmunitionRead the Press Release
BOSTON – A Springfield man was sentenced today in federal court in Springfield for being a felon in possession of firearms and ammunition.
Hector Navarro, 29, was sentenced by U.S. District Court Judge Mark G. Mastroianni to eight years in prison and three years of supervised release. In June 2018, Navarro pleaded guilty to two counts of being a felon in possession of a firearm and ammunition.
In September 2016, Navarro possessed a Mossberg, model 500, 12 gauge shotgun. In October 2016, he possessed a Stoeger, model Cougar 8000, 9mm pistol; an Irwindale Arms Inc., model Automag III, .30 caliber pistol; a Coast to Coast, model CC660, 12 gauge shotgun; 12 rounds of 9mm ammunition; one round of .380 ammunition; and three rounds of .30 caliber ammunition.
Due to a prior conviction of a crime punishable by imprisonment for more than one year, Navarro is prohibited from possessing firearms.
United States Attorney Andrew E. Lelling; Lawrence Panetta, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Springfield Police Commissioner John Barbieri made the announcement. Assistant U.S. Attorney Todd E. Newhouse of Lelling’s Springfield Branch Office prosecuted the case.
Founder of Swiss Brokerage Firm Indicted in Connection with Global Securities Fraud SchemeRead the Press Release
BOSTON – The founder and operator of a Swiss asset management firm has been indicted by a federal grand jury on charges of engaging in a massive global securities fraud scheme that netted trading proceeds of approximately $164 million.
Roger Knox, 47, a citizen of the United Kingdom who resides in Switzerland, was indicted on one count of securities fraud and one count of conspiracy to commit securities fraud. On Oct. 3, 2018, Knox was arrested and charged by criminal complaint.
Knox, together with others, operated a purported asset management firm based in Switzerland called Silverton, and later renamed Wintercap. Knox allegedly helped facilitate pump-and-dump, and other market manipulation schemes, by selling massive quantities of microcap securities on behalf of “control groups” who secretly owned the stock through nominee shareholders and who simultaneously orchestrated promotional campaigns and other efforts to artificially inflate the price and trading volume of those shares.
It is further alleged that Knox then funneled the proceeds of the securities fraud—totaling an estimated $164 million over the last three years—to co-conspirators in the United States and elsewhere through a complex money transfer system that disguised the source and nature of the funds.
The charge of securities fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $5 million. The charge of conspiracy to commit securities fraud provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or gross loss. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
U.S. 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 Securities and Exchange Commission’s Boston Regional Office provided assistance with the investigation. Assistant U.S. Attorney Eric Rosen of Lelling’s Securities and Financial Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Dominican National Sentenced for Illegal ReentryRead the Press Release
BOSTON - A Dominican national was sentenced today in federal court in Boston for illegally reentering the United States after being deported.
Casimiro Zapata-Martinez, 50, was sentenced to three months in prison and two years of supervised release. Zapata-Martinez will be subject to deportation proceedings upon completion of his sentence. In 2018, Zapata-Martinez pleaded guilty to one count of illegal reentry of a deported alien.
Zapata-Martinez was previously deported on April 8, 2002. Law enforcement officers encountered Zapata-Martinez on April 11, 2018, and determined him to be illegally present in the United States.
United States Attorney Andrew E. Lelling and Todd M. Lyons, Acting Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement. Assistant U.S. Attorney Nicholas Soivilien of Lelling’s Criminal Division prosecuted the case.
Two Massachusetts State Troopers Agree to Plead Guilty in Overtime Abuse InvestigationRead the Press Release
BOSTON – One suspended Massachusetts State Police Trooper and one retired Trooper have agreed to plead guilty today in connection with the ongoing investigation of overtime abuse at the Massachusetts State Police (MSP).
Eric Chin, 46, of Hanover, a suspended Trooper, and Paul Cesan, 50, of Southwick, a retired Trooper, were each charged in an Information with one count of embezzlement from an agency receiving federal funds. Both have agreed to plead guilty pursuant to a plea agreement, but dates have not yet been scheduled for the hearing.
Chin and Cesan were MSP Troopers 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. In 2016, Cesan earned $163,533, which included approximately $50,866 in overtime pay.
According to the charging documents, Chin and Cesan were paid for overtime shifts that they did not work at all or from which they left early. Each is alleged to have concealed their scheme by submitting fraudulent citations designed to create the appearance that they had worked overtime hours that they had not, and, falsely claimed in MSP paperwork and payroll entries that they had worked the entirety of their overtime shifts.
Chin has agreed to plead guilty to collecting $7,125 for overtime hours that he did not work, and Cesan has agreed to plead guilty to 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.
Chin and Cesan are the fourth and fifth Troopers to plead guilty as a result of the ongoing investigation. On Oct. 11, 2018, suspended Trooper Gary Herman, 45, of Chester, pleaded guilty; on July 2, 2018, former Trooper Gregory Raftery, 47, of Westwood pleaded guilty; and on Sept. 14, 2018, suspended Trooper Kevin Sweeney, 40, of Braintree pleaded guilty. On June 27, 2018, former Lieutenant David Wilson, 57, of Charlton was arrested and charged with the same crime, and on July 25, 2018, retired Trooper Daren DeJong, 56, of Uxbridge, was also charged.
Pursuant to the plea agreement with Chin, the government will recommend a sentence of between six and 12 months of incarceration. Pursuant to the plea agreement with Cesan, the government will recommend a sentence of between 10 and 16 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, Mark Grady, and Neil Gallagher 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.
Twin Brothers Charged in Superseding Indictment with Additional Drug and Gun OffensesRead the Press Release
BOSTON – Twin brothers from Hyannis were charged in federal court in Boston yesterday with additional gun and drug offenses.
Di’lon Smith, a/k/a Dilon Smith, and Denzel Smith, both 26, were each charged in a superseding indictment with one count of being a felon in possession of firearms and ammunition, one count of possession with intent to distribute 100 grams or more of a controlled substance analogue - cyclopropyl fentanyl, one count of possession with intent to distribute fentanyl, and two counts of possession of a firearm in furtherance of a drug trafficking crime. The Smiths were each initially indicted in April 2018 on one count of being a felon in possession of firearms and ammunition.
It is alleged that on Nov. 29, 2017, the brothers, each having previously been convicted of a felony, possessed a Smith & Wesson .22 caliber revolver, a Heckler & Koch .9 caliber pistol, six rounds of .22 caliber ammunition, and 18 rounds of .9 caliber ammunition. It is further alleged that the brothers also possessed fentanyl, as well as more than 100 grams of cyclopropyl fentanyl, with intent to distribute those substances.
The charging statute for being a felon in possession of a firearm and ammunition provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. The charge of possession with intent to distribute 100 grams or more of a controlled substance analogue provides for a mandatory minimum sentence of 10 years and up to life in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of up to $10 million. The charging statute for possession with intent to distribute fentanyl provides for sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a $1 million fine. The charging statute for possessing a firearm in furtherance of a drug trafficking crime provides for a sentence of at least five years and up to life in prison, up to five 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; Lawrence Panetta, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division; and Barnstable Police Chief Paul MacDonald 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 charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Mexican National Pleads Guilty to Being an Illegal Alien in Possession of a Firearm and Possessing Fraudulent Immigration DocumentsRead the Press Release
BOSTON - A Mexican national illegally residing in Springfield pleaded guilty yesterday to firearms and immigration crimes.
Manreal Altamirano-Navarro, whose true age is unknown, pleaded guilty to one count of possession of a firearm by a person unlawfully in the United States and two counts of possession of fraudulent immigration documents. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Jan. 18, 2019.
On Dec. 20, 2017, Altamirano-Navarro possessed a firearm while he was unlawfully in the United States and possessed two fraudulent immigration documents. Specifically, Altamirano-Navarro possessed a Ruger .22 caliber pistol, and, while walking on Calhoun Street in Springfield, he fired the pistol into the air. A law enforcement officer observed Altamirano-Navarro as he fired his weapon and informed nearby officers who then arrested the defendant. After arresting Altamirano-Navarro, law enforcement seized from him a fraudulent permanent resident card and a fraudulent resident alien card, both of which displayed Altamirano-Navarro’s photo.
The charge of possession of a firearm by a person unlawfully in the United States provides for a sentence of no greater than 10 years in prison, a minimum of three years of supervised release, and a fine of between $20,000 and $200,000. The charges of possession of fraudulent immigration documents each provide 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; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Springfield Police Commissioner John Barbieri made the announcement today. Assistant U.S. Attorney Neil L. Desroches of Lelling’s Springfield Branch Office is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
East Bridgewater Man Indicted on Child Pornography ChargesRead the Press Release
BOSTON – A federal grand jury indicted an East Bridgewater man yesterday on charges of producing, distributing and possessing child pornography.
Daniel O’Connor Jr., 56, was indicted on one count of sexual exploitation of children, one count of distribution of child pornography, and one count of possession of child pornography. In September 2018, O’Connor Jr. was arrested and charged by criminal complaint. He was released on conditions.
According to the charging documents, on June 7, 2018, law enforcement executed a federal search warrant at the home of O’Connor Jr., where they located two iPhones belonging to the defendant. An onsite forensic review of one of the phones revealed images of child pornography.
It is alleged that further review of the phone revealed approximately 137 images and approximately 20 videos of child pornography. In addition, the phone contained multiple apps popular with minors, such as Kik Messenger. A review of O’Connor Jr.’s Kik app revealed chats between O’Connor Jr. and an 11-year-old girl during which he solicited and received a number of images and videos depicting child pornography.
The charge of production of child pornography/sexual exploitation of a child provides for a mandatory minimum sentence of 15 years and up to 30 years in prison. The charge of distribution of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison. The charge of possession of child pornography provides for a sentence of no greater than 20 years in prison. Each count provides for a mandatory minimum of five years and up to a lifetime of supervised release and a $250,000 fine. Sentences are imposed by a federal district court judge based on the United States 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; Plymouth County District Attorney Timothy Cruz; and East Bridgewater Police Chief Scott Allen made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Canadian National Sentenced to 15 Years in Prison for Sexually Exploiting Two ChildrenRead the Press Release
BOSTON – A Canadian national was sentenced today in federal court in Springfield for enticing children over the internet to produce child pornography and to send the sexually explicit content to him.
Justin Carl Wong, 35, of Ontario, Canada, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 15 years in prison and 10 years of supervised release. In July 2018, Wong pleaded guilty to 10 counts of sexual exploitation of a minor. Wong was indicted in August 2014 and has been in custody since his arraignment on Aug. 10, 2017, after being extradited from Canada.
In December 2012, Wong used a Voxer account to communicate with two girls, aged eight and 10, in Hampshire County. Wong first sent text and voice messages to the 10-year-old girl, knowing that she was a minor, offering to be her “pretend boyfriend” and to help her “get a boyfriend in” her “real life.” Wong asked the girl to send him sexually explicit pictures of herself, and, initially, the child refused. Wong used psychological pressure to persuade and then to bully the girl to send him sexually explicit pictures by threatening to never speak to her again and telling her she would live a “lonely life” and to “have a nice life being alone.” He repeatedly referred to her as a “bitch” and said she was a “loser” because she refused to send him the pictures.
On Dec. 19, 2012, the 10-year-old girl succumbed to Wong’s repeated demands and sent three sexually explicit pictures of herself, as well as two sexually explicit photographs with the eight-year-old girl. Later that day, Wong engaged in a series of online communications with the eight-year-old girl in which Wong demanded specific kinds of sexually explicit pictures. The girl responded by sending to Wong five such photographs.
United States Attorney Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; U.S. Marshal John Gibbons for the District of Massachusetts; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Granby Police Chief Alan Wishart made the announcement. Assistant U.S. Attorney Alex Grant of Lelling’s Springfield Branch Office prosecuted the case.
This 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 U.S. Attorneys’ Offices and DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Boston Man Sentenced for Failing to Register as a Sex OffenderRead the Press Release
BOSTON – A Boston man was sentenced today in federal court in Boston for failure to register as a sex offender.
Lance Pona, 27, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to one year and one day in prison and five years of supervised release. In June 2018, Pona pleaded guilty to one count of failure to register as a sex offender. Pona has been in custody since he was arrested and charged in April 2018.
Pona is required to register as a sex offender in Massachusetts based on a Colorado state court conviction for unlawful sexual contact in 2009. Following his imprisonment for that conviction, Pona left Colorado for Massachusetts. Despite living in the Boston area for approximately five years, Pona failed to report his presence to the authorities.
United States Attorney Andrew E. Lelling and John Gibbons, United States Marshal for the District of Massachusetts, made the announcement today. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, prosecuted 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/.
Abington Man Sentenced for Robbing Three BanksRead the Press Release
BOSTON – An Abington man was sentenced today in federal court in Boston for robbing three Greater Boston-area banks.
John Soule, 53, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 42 months in prison, three years of supervised release, and ordered to pay approximately $58,551 in restitution. In July 2018, Soule pleaded guilty to three counts of bank robbery. Soule was arrested and charged in September 2017 and has been detained since.
On July 12, 2017, Soule entered a branch of the Eastern Bank in Cambridge, where he jumped over the teller’s counter, stated that he had a knife, and demanded the bank’s money. The tellers gave Soule money from their drawers, and Soule exited the bank with $12,940.
On Aug. 9, 2017, Soule entered a branch of the Webster Bank on Franklin Street in Boston and announced a robbery. He jumped over the tellers’ counter and demanded the bank’s money. The tellers gave Soule money from their drawers, and he exited the bank with $3,137.
One month later, on Sep. 8, 2017, Soule entered a branch of the Rockland Trust on Quincy Street in Quincy, where he approached a teller demanding money and then jumped over the counter and entered the bank’s vault. A post-robbery audit determined that Soule stole over $42,000 during the robbery.
Video surveillance cameras outside of all three banks captured images of Soule on a mountain bike moments before and immediately after the robberies.
Throughout the investigation, law enforcement received various tips and information that Soule was the person responsible. On Sept. 29, 2017, Soule was located and arrested with over $8,000 in his possession. Soule later admitted his involvement in the robberies.
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 Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.
Worcester Man Sentenced for Being a Felon in PossessionRead the Press Release
BOSTON – A Worcester man was sentenced yesterday in federal court in Boston for being a felon in possession of a firearm and ammunition.
Franklin Safo-Agyare, a/k/a “Frankie So Smooth,” 25, was sentenced by U.S. District Court Judge Patti B. Saris to 30 months in prison and three years of supervised release, the first year of which he is prohibited from residing in or visiting the City of Worcester. In June, Safo-Agyare pleaded guilty to one count of being a felon in possession of a firearm and ammunition.
Following a two-year investigation, Safo-Agyare and eight others were charged in January 2018 in connection with illegal drug distribution and firearm possession within and near the Mildred C. Hailey Apartments in Jamaica Plain, formerly known as the Bromley Heath Housing Development.
On June 6, 2016, Safo-Agyare sold a firearm to a cooperating witness in the parking lot of a grocery store which is adjacent to the development. According to court documents, Safo-Agyare has multiple convictions for assault with a dangerous weapon, resisting arrest, carrying a firearm and ammunition, and possession of a Class A substance. Due to these convictions, Safo-Agyare was prohibited from possessing firearms during the time of the offense.
The investigation and arrests sought to reduce violence and improve the quality of life in and around the Mildred C. Hailey Apartments for residents by removing individuals who distributed drugs and/or were actively involved in violence and gang disputes.
United States Attorney Andrew E. Lelling; Lawrence J. Panetta, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Boston Police Commissioner William Gross made the announcement. Assistance was also provided by the Boston Housing Authority’s Department of Police and Public Safety.
The details contained in the charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Leominster Man Pleads Guilty to Passport FraudRead the Press Release
BOSTON – A Leominster man pleaded guilty yesterday in federal court in Boston to passport fraud.
“John Doe,” whose true identity and age are presently unknown, and whose last known address was in Leominster, pleaded guilty to one count of making false statements in a passport application. U.S. District Court Judge Denise J. Casper scheduled sentencing for Jan. 17, 2019.
At the plea hearing, Doe admitted that in December 2011, he entered a Jamaica Plain post office and used the name, date of birth, and Social Security number of a United States citizen from Puerto Rico to apply for a United States passport.
The charge of passport fraud 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 U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and William B. Gannon, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service, Boston Field Office, made the announcement today. Assistant U.S. Attorneys Sandra S. Bower and Lauren A. Graber of Lelling’s Criminal Division are prosecuting this case.
Everett Man Pleads Guilty to Scheme to Defraud the Massachusetts Department of Unemployment AssistanceRead the Press Release
BOSTON – An Everett man pleaded guilty yesterday in federal court in Boston in connection with a scheme to defraud the Massachusetts Department of Unemployment Assistance of more than $1.8 million.
Edison Delarosa, 53, pleaded guilty to one count of mail fraud and one count of wire fraud. U.S. Senior District Court Judge George A. O’Toole Jr. scheduled sentencing for Jan. 24, 2019. In February 2017, Delarosa was arrested and charged and subsequently released on conditions.
From approximately January 5 through November 24, 2016, Delarosa engaged in a scheme to defraud the Commonwealth of Massachusetts by exploiting the Department of Unemployment Assistance’s (DUA) online system, which allows claimants to manage their unemployment insurance accounts over the internet. On multiple occasions, Delarosa, who did not actually owe DUA any money, submitted bogus “repayments” online, which triggered the release of “refund” checks payable to him in varying amounts. During the course of the scheme, Delarosa submitted a total of 136 fraudulent “repayments,” amounting to $1,813,170, for which DUA issued him 15 paper “refund” checks, totaling $1,251,283. DUA uncovered the scheme after six of those checks, totaling $27,227, were mailed to Delarosa and deposited into his account.
The charges of wire fraud and mail fraud provide for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations, New York Region; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. The Commonwealth of Massachusetts’ Department of Unemployment Assistance cooperated with the investigation. Assistant U.S. Attorney Anne Paruti of Lelling’s Major Crimes Unit is prosecuting the case.
Massachusetts Man Pleads Guilty to Sending Threatening Letters, Some Containing Suspicious White PowderRead the Press Release
BOSTON – A Beverly man pleaded guilty today in connection with mailing threatening letters containing suspicious white powder to high-profile individuals, law enforcement officials and others.
Daniel Frisiello, 25, pleaded guilty to 13 counts of mailing a threat to injure the person of another and six counts of false information and hoaxes. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Jan. 16, 2019. Frisiello was arrested and charged on March 1, 2018, and has been in home detention since.
Frisiello mailed five high-profile individuals around the country an envelope that contained suspicious white powder and a note indicating that the powder was dangerous and intended to cause harm. There were notable commonalities among the envelopes, including a Boston postmark. Further investigation revealed that one victim had also received a “glitter bomb,” that is, an envelope containing glitter sent to an unsuspecting individual that, when opened, spills out onto the recipient. Law enforcement traced financial records to Frisiello, who had ordered and paid for the glitter bomb to be delivered to the victim. Furthermore, trash recovered from Frisiello’s residence contained remnants of the cut-out computer-printed messages that Frisiello sent to some victims.
More specifically, in 2015, Frisiello sent two letters that threatened the manager of a Massachusetts company that had recently terminated one of Frisiello’s family members. During the 2016 presidential campaign, Frisiello sent a white-powder letter to family members of then-presidential candidate Donald Trump, which caused a significant hazardous material response by law enforcement. The letter promised that if Trump did not drop out of the race, the next letter would not be a fake. In 2016, Frisiello also sent letters to the heads of four law enforcement agencies in Connecticut and Rhode Island, warning them to drop an investigation into Nathan Carman, who allegedly killed his mother and grandfather, threatening that one police chief would join Carman’s mother “at the bottom of the sea” and that a state police colonel would not only drown, but also receive “a bullet in [his] brain.” In 2017, Frisiello sent a letter threatening to shoot the assistant district attorney who was prosecuting Michelle Carter for involuntary manslaughter and to also shoot the judge who was hearing the case. In 2018, Frisiello sent white powder letters to another member of the First Family, a United States Attorney, United States Senator Deborah Stabenow, a Stanford law professor, and a candidate for the United States House of Representatives.
Frisiello was tied to the threatening letters through fingerprints and further investigation.
The charge of mailing a threat to injure the person of another provides for a sentence of no greater than five years in prison, or 10 years in prison for threats addressed to a federal official, three years of supervised release and a fine of $250,000. The charge of false information and hoaxes 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; 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; Stephen Marks, Special Agent in Charge of the U.S. Secret Service Boston Field Office; and Beverly Police Chief John G. LeLacheur made the announcement today. The investigation was led by the FBI Boston Division’s Joint Terrorism Task Force. Assistant U.S. Attorney Scott L. Garland, Deputy Chief of Lelling’s National Security Unit, is prosecuting the case.
Hedge Fund Manager Pleads Guilty to Operating Multi-Million Dollar Ponzi SchemeRead the Press Release
BOSTON – A Boston-area hedge fund manager pleaded guilty today in federal court in Boston to running a multi-million dollar Ponzi scheme.
Raymond K. Montoya, 70, of Allston, pleaded guilty to three counts of wire fraud, five counts of mail fraud, and two counts of conducting an unlawful monetary transaction. U.S. Senior District Court Judge George A. O’Toole Jr. scheduled sentencing for Jan. 22, 2019. Montoya was charged by a criminal complaint and arrested in August 2017.
Between 2009 and June 2017, Montoya ran a pooled investment hedge fund in Boston called RMA Strategic Opportunity Fund, LLC. Montoya falsely told his investors—including his family, friends, and acquaintances who resided in Massachusetts, Ohio, and California—that the fund was earning substantial returns, when in fact, by 2014, the RMA Fund was sustaining substantial losses. The investors transferred millions of dollars of their personal savings and 401(k) retirement plans to Montoya and the RMA Fund. Montoya told the investors that he would invest their money in stocks and bonds, but he actually invested only a portion of their money, while diverting the rest—totaling millions of dollars—to business and personal bank accounts. Montoya used the diverted money for personal expenses such as luxury vehicles and the mortgage on his son’s residence.
Montoya was previously charged with securities fraud in a civil complaint by the Massachusetts Securities Division.
The charges of mail fraud and wire fraud 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 gross loss from the offense, restitution and forfeiture. The charge of conducting unlawful monetary transactions provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000, or twice the value of the criminally derived property. Sentences are imposed by a federal district court judge based 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. The Massachusetts Securities Division provided valuable assistance. Assistant U.S. Attorney Neil J. Gallagher Jr. of Lelling’s Securities and Financial Fraud Unit is prosecuting the case.
Dorchester Man Pleads Guilty to Kidnapping, Loansharking and Illegal GamblingRead the Press Release
BOSTON – A Dorchester man pleaded guilty today in federal court in Boston to kidnapping, loansharking and illegal gambling.
Kim Nguyen, 25, pleaded guilty to kidnapping, conspiracy to collect extensions of credit by extortionate means, and operating an illegal gambling business. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Jan. 10, 2019. In August 2017, Nguyen was indicted along with co-defendants Vinh Huynh, 35; Quang PT Le, 27; and Ban Tran, a/k/a “Bo,” 26, all of Dorchester.
On Nov. 14, 2016, Nguyen, Le, who was armed with a knife, and their co-conspirators kidnapped a victim from the front of the victim’s residence, drove the victim to Dorchester, and beat the victim in an attempt to collect a gambling debt of $40,000. Nguyen, Le, and their co-conspirators released the victim and demanded a payment of $10,000 the next day. That day, the victim went to law enforcement and, under the direction of law enforcement officers, made a series of controlled, recorded payments to Le. Over the course of eight months, the victim made payments totaling $22,350. In August 2017, Nguyen, Le, and others were arrested before the last payment was due.
In May 2018, Le was sentenced to six years in prison and three years of supervised release. Huynh pleaded guilty in December 2017 and is awaiting sentencing. The remaining defendant, Tran, was charged only with operating an illegal gambling business, and is scheduled to plead guilty on Oct. 31, 2018.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Boston Police Commissioner William Gross; and Quincy Police Chief Paul Keenan made the announcement today. The Internal Revenue Service’s Criminal Investigations in Boston and the Massachusetts Department of Correction assisted with the investigation. Assistant U.S. Attorney Timothy E. Moran of Lelling’s Organized Crime and Gang Unit is prosecuting the case.
The remaining defendant charged in this case is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former State Street Executive Sentenced for Scheme to Defraud Clients Through Secret Trading CommissionsRead the Press Release
BOSTON – A former executive vice president of State Street Corporation was sentenced today in federal court in Boston in connection with engaging in a scheme to defraud at least six of the bank’s clients through secret commissions applied to billions of dollars of securities trades.
Ross McLellan, 47, of Hingham, was sentenced by U.S. District Court Judge Leo T. Sorokin to 18 months in prison and two years of supervised release. In June 2018, McLellan was convicted by a federal jury of one count of conspiring to commit securities fraud and wire fraud, two counts of securities fraud and two counts of wire fraud.
In April 2016, McLellan, a former executive vice president of State Street who served as global head of its Portfolio Solutions Group and president of its U.S. broker-dealer unit, and Edward Pennings, 47, of Surrey, England, a former senior managing director of State Street and the head of its Portfolio Solutions Group for Europe, the Middle East and Africa, were indicted. In June 2017, Pennings pleaded guilty and is scheduled to be sentenced on Nov. 6, 2018. Also in June 2017, Richard Boomgaardt, 44, of Sevenoaks, England, a former managing director of State Street, was charged separately and pleaded guilty in July 2017 to one count of conspiracy to commit securities fraud and wire fraud. Boomgaardt was sentenced in July 2018 to one year of probation.
Between February 2010 and September 2011, McLellan, Pennings, and Boomgaardt conspired to add secret commissions to fixed income and equity trades performed for at least six clients of the bank’s “transition management” business, which helps institutional clients move their investments between and among asset managers or liquidate large investment portfolios. The commissions were charged on top of fees that the clients had agreed to pay to the bank, and despite written instructions to the bank’s traders that generally reflected that the clients were not to be charged trading commissions. McLellan, Pennings, and Boomgaardt took steps to hide the commissions from the clients and others within the bank, including by directing that the commissions not be broken out in post-trade reports.
For example,
- In a telephone call in March 2010, Pennings instructed Boomgaardt not to talk about the plans to charge hidden commissions on one transaction “with anyone . . . because it’s not going to help our story. Don’t even share it with the rest of the team, to be honest.”
- In June 2010, McLellan and Boomgaardt requested that the bank’s traders provide them with the reported daily high and low prices of securities that the bank had traded for the client so that they could determine the amount of the commissions to be applied to each security without attracting the client’s attention.
- In March 2011, McLellan instructed a U.S. fixed income trader to charge a commission of one basis point (0.01%) of yield to each trade conducted for another client – notwithstanding that the written trading instructions for the transaction said to charge zero commissions – and subsequently instructed the trader to delete any reference to the commissions from the trading results he sent to the transition manager assigned to the project.
In June 2011, when one of the affected clients inquired about whether it had, in fact, been charged commissions in breach of its agreement with the bank, Pennings initially denied that any commissions had been charged. Later, at McLellan’s direction, Pennings acknowledged only that “inadvertent commissions” had been applied to securities traded in the United States, but did not disclose that they had, in fact, been intentionally charged in both the United States and in Europe. McLellan and Pennings sought to mislead the bank’s compliance staff into believing that the commissions had been charged in error and that the amount of the overcharges was limited to the commissions applied on U.S. securities.
United States Attorney Andrew E. Lelling; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office, made the announcement today. Valuable assistance was provided by the Securities & Exchange Commission and the Justice Department’s Office of International Affairs. Assistant U.S. Attorney Stephen E. Frank, Chief of Lelling’s Securities and Financial Fraud Unit, and Trial Attorney William Johnston of the Criminal Division’s Fraud Section prosecuted the case.
Boston Auto Body Shop Pleads Guilty to Tax FraudRead the Press Release
BOSTON – The owner of a Hyde Park auto body shop pleaded guilty yesterday in federal court in Boston in connection with preparing false tax returns for his company, Automotive Specialties Inc.
Richard Poillucci, 62, of Easton, pleaded guilty to three counts of aiding the preparation of false tax returns. U.S. Senior District Court Judge George A. O’Toole Jr. scheduled sentencing for Jan. 22, 2019. In July 2018, Poillucci was charged by an Information.
Poillucci was the owner of Automotive Specialties Inc. (ASI), an auto body shop specializing in repairing high-end vehicles. Between Sept. 30, 2012 and Sept. 30, 2015, Poillucci cashed millions of dollars of checks from the business at check cashing establishments in Massachusetts and Rhode Island and willfully failed to report that income, or expenses that he paid for in cash with the proceeds from those checks, on ASI’s tax returns. As a result, Poillucci failed to report approximately $569,367 to the IRS, thereby avoiding the payment of approximately $215,552 in federal income taxes.
Each of the counts of aiding the preparation of false tax returns provides for a sentence of no greater than three 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 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 Sara Miron Bloom of Lelling’s Economic Crimes Unit is prosecuting the case.
Restaurant Owner Sentenced for Failing to Report Nearly $1.5 Million in Business ReceiptsRead the Press Release
BOSTON – The owner of a well-known Salem restaurant, King’s Roast Beef Inc., was sentenced today for failing to report or pay taxes on nearly $1.5 million in income from the business.
John Kalantzis, 52, of Lynn, was sentenced by U.S. District Court Judge William G. Young to one year and one day in prison, one year of supervised release, and ordered to pay a fine of $25,000. Prior to the sentencing hearing, Kalantzis paid restitution of $383,238 to the IRS. In July 2018, Kalantzis pleaded guilty to two counts of aiding and assisting in filing a false tax return.
During tax years 2011 through 2015, Kalantzis underreported the gross receipts and expenses of King’s Roast Beef in order to improperly reduce the federal income taxes owed by the restaurant. Kalantzis did so by diverting some of the restaurant’s cash receipts to himself, paying for some of the restaurant supplies with cash, and paying a portion of his employees’ wages in cash. Kalantzis then failed to report this conduct to his tax preparer. As such, during each of the tax years 2011 through 2015, Kalantzis failed to report cash receipts of about $300,000 and cash expenses of approximately $120,000 on King’s Roast Beef’s tax returns. As a result, Kalantzis failed to report a total of $855,000 in business income to the IRS during those years, thereby avoiding paying corporate and personal taxes of $383,000.
United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement. Assistant U.S. Attorney Mark J. Balthazard of Lelling’s Securities and Financial Fraud Unit prosecuted the case.
Three Florida Men Sentenced for Roles in Interstate Opioid Trafficking ConspiracyRead the Press Release
BOSTON – Three Florida men were sentenced in federal court in Boston for their roles in an opioid trafficking conspiracy across Massachusetts and Florida.
Craig Drummond, 27, of Sunny Isles Beach, Fla., was sentenced today by U.S. District Court Judge Denise J. Casper to 10 months in prison and two years of supervised release. In March 2018, Drummond pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute oxycodone and one count of conspiracy to launder monetary instruments.
Darren Infante, 27, of Miami, Fla., was sentenced today by Judge Casper to time served and two years of supervised release, including seven months of home detention. In August 2017, Infante pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute oxycodone.
Jenssi Astacio, 32, of Sunny Isles Beach, Fla., was sentenced yesterday by Judge Casper to 70 months in prison and three years of supervised release. In April 2018, Astacio pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute oxycodone and one count of conspiracy to launder monetary instruments.
In March 2017, Astacio, Drummond, Infante, and seven others were arrested and charged. The arrests were the result of a three-year investigation that began in 2014. The defendants conspired to transport sizeable quantities of oxycodone from Miami, Fla., to Massachusetts, where it was distributed in the greater Boston area. Proceeds from the sales were then transported and/or transferred back to Florida and laundered in various ways.
Astacio shipped - and directed other co-conspirators to ship - large quantities of oxycodone pills from Florida to Massachusetts, negotiated with other co-conspirators the sale of oxycodone pills for redistribution, and directed co-conspirators to use bank accounts to launder the cash proceeds of their illicit sale of drugs. Drummond shipped sizeable quantities of oxycodone from Miami to Massachusetts, where it was distributed in the greater Boston area, and Infante shipped eight packages containing oxycodone from Miami to various addresses in Massachusetts for distribution.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, 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; John Gibbons, U.S. Marshal for the District of Massachusetts; and Mickey D. Leadingham, 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 Massachusetts State Police and the Biddeford (Maine), Framingham, Haverhill, Lawrence, Manchester (N.H.), Methuen, Millis, Natick, Stoughton and Waltham Police Departments. Assistant U.S. Attorneys Nadine Pellegrini and Craig Estes of Lelling’s Narcotics and Money Laundering Unit are prosecuting the cases.
Guatemalan National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON - A Guatemalan national pleaded guilty and was sentenced today in federal court in Boston for illegally reentering the United States after being deported.
Cesar Humberto Perez-Diaz, 48, pleaded guilty to one count of illegal reentry of a deported alien before U.S. District Court Judge Leo T. Sorokin, who sentenced Perez-Diaz to six months in prison and one year of supervised release. Perez-Diaz will be subject to deportation proceedings upon completion his sentence.
On July 31, 2018, the Lynn Police Department arrested Perez-Diaz and charged him with enticement of a child under 16 years old. Perez-Diaz was arraigned in the Lynn District court and ordered detained without bail. Immigration officials encountered Perez-Diaz at the Essex House of Corrections and determined that he was illegally present in the United States having been deported on two previous occasions.
United States Attorney Andrew E. Lelling and Todd M. Lyons, Acting Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.
Dominican National Sentenced for Identity TheftRead the Press Release
BOSTON – A Dominican national, who is illegally in the United States, was sentenced today in federal court in Boston in connection with identity theft.
Kelny Andujar, a/k/a Kelny Alberto Andujar Pinales, 36, a Dominican national residing in Lawrence, was sentenced by U.S. District Court Judge Allison D. Burroughs to 27 months in prison and two years of supervised release. In June 2018, Andujar pleaded guilty to one count of passport fraud, one count of misusing a Social Security number, and two counts of aggravated identity theft. Andujar has been in custody since his arrest in March 2018.
In March 2016, Andujar went to a post office in Lawrence and applied for a U.S. passport in the name of a U.S. citizen who lives in Puerto Rico and listed that citizen’s date of birth, place of birth and Social Security number. Andujar supported his application with a certified copy of the victim’s birth certificate, a Social Security card bearing the victim’s name and Social Security number, and a Massachusetts ID card bearing Andujar’s photo but the victim’s name. The passport application was denied.
In November 2016, Andujar went to the Registry of Motor Vehicles in Wilmington and applied for a duplicate Massachusetts ID card in the victim’s name. Andujar represented that the victim’s name, date of birth, and Social Security number were his own. The application was granted, and Andujar was issued a replacement ID card bearing his photo with the victim’s name.
United States Attorney Andrew E. Lelling and William B. Gannon, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office, made the announcement. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit prosecuted the case.
Chicopee Man Pleads Guilty to Selling HeroinRead the Press Release
BOSTON - A Chicopee man pleaded guilty today in federal court in Springfield to distributing heroin.
Steven Brown, 27, pleaded guilty to one count of distribution and possession with intent to distribute heroin. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Jan. 15, 2019.
On June 30, 2016, Brown sold 300 bags of heroin to a cooperating witness. Brown has previously been convicted in state court of drug distribution offenses six times between 2008 and 2013 and he was facing state drug charges at the time of this offense.
The charge provides for a sentence of no greater than 30 years in prison, a minimum of three years of supervised release, and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Springfield Police Commissioner John Barbieri; and Holyoke Police Chief James M. Neiswanger made the announcement. Assistant U.S. Attorney Todd E. Newhouse of Lelling’s Springfield Branch Office is prosecuting the case.
Brockton Man Charged with Computer IntrusionRead the Press Release
BOSTON – A Brockton man was charged yesterday in connection with the August 2018 computer intrusion of a Massachusetts company.
Colby Anderson, 25, of Brockton, was charged in a criminal complaint with one count of intentionally causing damage to a protected computer without authorization. Anderson was arrested yesterday and released on conditions following an initial appearance in federal court in Boston.
According to court documents, in July 2018, Anderson was terminated from his position as a Network Operations Center Technician at Blueport Wireless, a high speed internet access provider. Following his termination, Anderson subsequently used his former colleagues’ account login information to delete approximately 100-120 customer configuration profiles, causing widespread internet service issues at customer facilities.
The charging statute provides for a sentence of no greater than 10 years in prison, up to three years of supervised release, and a fine of $250,000 or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorneys Mackenzie Queenin and David D’Addio of Lelling’s Cybercrime Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Revere Man Charged with Distributing FentanylRead the Press Release
BOSTON – A Revere man was arrested today and charged in federal court in Boston with distributing fentanyl.
Jassiel Ramirez, 23, was charged with one count of distribution of 40 grams or more of fentanyl. Ramirez will appear in federal court today at 4:00 p.m.
According to court documents, Ramirez distributed fentanyl in and around the Princeton Crossing apartment complex in Salem on Sept. 18 and 21, 2018.
The charge of distribution of 40 grams or more of fentanyl carries a minimum mandatory sentence of five years and up to 40 years in prison, at least four years of supervised release, and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division, made the announcement. Assistance was provided by the Salem Police Department. Assistant U.S. Attorney Alathea E. Porter of Lelling’s Narcotics and Money Laundering 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.
New York Man Pleads Guilty to Failing to Register as a Sex OffenderRead the Press Release
BOSTON – A New York man pleaded guilty today in federal court in Springfield to failure to register as a sex offender.
Jose Dones, 43, of Schenectady, N.Y., pleaded guilty to one count of failure to register as a sex offender. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Jan. 22, 2019. Dones was charged in February 2018 in federal court, and has been in custody since Jan. 10, 2018, when he was arrested for violating his conditions of supervised release stemming from a 2016 conviction for failing to register as a sex offender.
In 1994, Dones was convicted of second degree rape, and in 2008, he was convicted of forcible touching. As a result, Dones is required to register as a sex offender and has received many notices informing him of his obligation. He has been convicted four times in New York state court of failure to register as a sex offender, and in 2016, he was convicted in federal court in Massachusetts of failing to register as a sex offender.
In November 2017, Dones was released from a halfway house in Boston, and, while on supervised release in connection with his 2016 federal conviction, he lived in Boston without registering as a sex offender. In December 2017, he moved to Schenectady, N.Y., where he again failed to register.
Dones faces a sentence of no greater than 10 years in prison, 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 Andrew E. Lelling and John Gibbons, United States Marshal for the District of Massachusetts, made the announcement today. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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).
Gary Herman, 45, of Chester, pleaded guilty to one count of embezzlement from an agency receiving federal funds. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Jan. 17, 2018. Pursuant to the plea agreement, the government will recommend a sentence of between six and 12 months in prison. Herman was arrested on June 27, 2019, and subsequently released on conditions.
Herman 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, Herman earned $227,826, which included approximately $63,053 in overtime pay.
Herman was paid for overtime shifts that he did not work at all or from which he left early. Herman concealed his abuse 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. On multiple occasions Herman fabricated bogus citations, copying the driver information from citations that he had issued months earlier, in order to be paid for overtime that he did not work at all. In total, Herman collected $12,468 for overtime 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.
Herman is the third Trooper to plead guilty as a result of the ongoing investigation. On July 2, 2018, former Trooper Gregory Raftery, 47, of Westwood, pleaded guilty, and on Sept. 14, 2018, suspended Trooper Kevin Sweeney, 40, of Braintree, pleaded guilty. Three other Troopers have been charged: on June 27, 2018, former Lieutenant David Wilson, 57, of Charlton; and former Trooper Paul Cesan, 50, of Southwick, were arrested and charged with the same crime. On July 25, 2018, retired Trooper Daren DeJong, 56, of Uxbridge, was charged.
Pursuant to the plea agreement, the government will recommend a sentence of between six and 12 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, Mark Grady, and Neil Gallagher of Lelling’s Criminal Division 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 Office Manager of Boston Dental Practice Charged with Bank and Tax FraudRead the Press Release
BOSTON – The former office manager of a Boston-based dental practice was charged in an indictment unsealed today in connection with embezzling funds from her former employer.
Yuliya Vaysglus, a/k/a Julia Vaysglus, 35, of Cary, N.C., was charged with eight counts of bank fraud, one count of aggravated identity theft and three counts of filing false tax returns. Vaysglus will appear today in federal court in Boston.
The indictment alleges that from 2009 until she was terminated in February 2015, Vaysglus was the office manager of a Boston-area dental practice. Her responsibilities involved tracking client invoices, depositing insurance payments into the practice’s bank account, and recording those deposits for accounting purposes. Between 2009 and December 2014, it is alleged that Vaysglus misappropriated more than $348,000 from the dental practice by diverting to herself at least 276 checks from various insurance companies for services rendered to patients. As part of the scheme, Vaysglus made the checks payable to herself, forged the owner’s signature on the checks, and deposited them into her bank account. In order to conceal the scheme, Vaysglus did not record the insurance payments in the bookkeeping system. The indictment further alleges that Vaysglus failed to report the embezzled funds on her federal tax returns.
The charge of bank fraud provides for a sentence of no greater than 30 years in prison, five years of supervised release, and a fine of $1 million. The charge of filing a false tax return provides for a sentence of no greater than three years in prison, one year of supervised release and a fine of $250,000. Aggravated identity theft carries a mandatory two-year sentence that must run consecutively to any other sentence, one year of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service in Boston; 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 Victor A. Wild of Lelling’s Economic Crimes Unit 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.
Fall River Mayor Arrested for Scheme to Defraud InvestorsRead the Press Release
BOSTON – Jasiel F. Correia II, the Mayor of Fall River, was arrested this morning and charged with wire and tax fraud in connection with a multi-year investment fraud scheme.
Correia, 26, was indicted on nine counts of wire fraud and four counts of filing false tax returns. Correia was arrested this morning and will appear in federal court in Boston this afternoon.
As alleged in the indictment, in 2012, Correia founded SnoOwl, an app designed to connect local businesses with their target consumer market. In approximately January 2013, Correia began seeking investors who were willing to provide investment money for SnoOwl in return for equity in the company. In order to incentivize potential investors, Correia falsely represented that he was a successful tech entrepreneur who previously sold another app for a large profit, that investment funds would be used to develop the app, and that he would not take a salary or otherwise draw compensation from SnoOwl.
According to the indictment, seven individuals invested a total of $363,690 in SnoOwl. However, rather than using the investment funds to develop the app as Corria certified in signed agreements with investors, it is alleged that Correia used at least $231,447 – approximately 64% of the money invested – to fund his own lavish lifestyle, burgeoning political career and other business ventures. Specifically, the indictment alleges that Correia used the investment funds to purchase tens of thousands of dollars of luxury items, including a Mercedes, jewelry and designer clothing; to pay for personal travel and entertainment, including tens of thousands of dollars on airfare, hotels, restaurants, casinos, and adult entertainment; to pay down personal student loan debt; to fund his political campaign; and to make charitable donations in his own name.
As alleged in the indictment, Correia concealed the theft of funds from investors by providing false positive updates on SnoOwl’s status and refusing to provide the company’s financial records, which would have revealed his fraud. In addition, Correia concealed his ill-gotten gains from the IRS when filing his 2013 and 2014 individual tax returns.
In the spring/summer of 2015, Correia announced his candidacy for mayor of Fall River. Notwithstanding the facts that he had fraudulently taken hundreds of thousands of dollars of investor money and that SnoOwl was floundering, Correia touted his stewardship of SnoOwl to Fall River voters as one of his primary qualifications for mayor.
By May 2017, Correia was aware that SnoOwl was the subject of a federal investigation, and instructed an accountant to file amended 2013 and 2014 personal tax returns. Because the accountant relied on false information from Correia, the amended returns classified SnowOwl as a sole proprietorship, instead of a partnership, a critical distinction for tax purposes. As a result, Correia was not assessed any tax liability for any of the investor money that he took for himself, and he actually received a refund from the IRS in June 2017.
The charge of wire fraud provides for a sentence of no greater than 20 years in prison, up to three years of supervised release, a fine of up to twice the loss involved and restitution. The charge of filing false tax returns provides for a sentence of no greater than three years in prison, one year 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; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; and Glenn A. Cunha, Massachusetts Inspector General, made the announcement. Assistant U.S. Attorneys Zachary Hafer, Chief of Lelling’s Criminal Division, and David Tobin, of Lelling’s Major Crimes Unit, are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Stoughton Man Charged with Distributing FentanylRead the Press Release
BOSTON – A Stoughton man was indicted today in federal court in Boston for distributing fentanyl and crack cocaine.
Matthew Pizarro, 30, was indicted on one count of distribution of fentanyl, one count of distribution of 40 grams or more of fentanyl, and one count of possession with intent to distribute 28 grams or more of crack cocaine. Pizarro was arrested in August 2018 on a criminal complaint and has been in custody since.
According to court documents, on July 30, 2018, Pizarro sold an undercover agent approximately 20 grams of fentanyl in exchange for $940. A few days later, Pizarro followed up with the undercover agent about purchasing more drugs. On Aug. 7, 2018, Pizarro sold the undercover agent 70 grams of fentanyl for $2,500. After the exchange, law enforcement arrested Pizarro.
The charges of distribution of 40 grams or more of fentanyl and possession with intent to distribute 28 grams or more of crack cocaine provide 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. According to court documents, Pizarro has a prior drug conviction; therefore, he faces a mandatory minimum sentence of 10 years and up to life in prison, at least eight years and up to a lifetime of supervised release, and a fine of up to $8 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Sean Smith, Special Agent in Charge of the U.S. Department of Veterans Affairs Office of Inspector General, Northeast Field Office; and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division, made the announcement today. Assistant U.S. Attorney Katherine Ferguson of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Controller of Small Business Sentenced for Stealing over $229,000Read the Press Release
BOSTON – A Boston woman was sentenced yesterday in federal court in Boston for embezzling over $229,000 from a small business that employed her.
Kelly A. Lynch, 40, was sentenced by U.S. District Court Judge Indira Talwani to 18 months in prison, five years of supervised released and ordered to pay $229,088 in restitution. In July 2018, Lynch pleaded guilty to one count of bank fraud. In February 2018, Lynch was arrested and charged by criminal complaint and subsequently released on conditions.
Lynch was hired in April 2017 as the controller of a small company in a Boston suburb. Her duties included managing incoming invoices, paying bills by check and wire transfer, bookkeeping and financial account maintenance. As a result, Lynch had access to the company’s checkbook, bookkeeping/accounting software (QuickBooks), and online bank accounts.
From April 2017 until her termination in January 2018, Lynch stole funds from the business for her personal use. Specifically, Lynch wrote unauthorized checks to herself using the company checkbook. Some of the checks were pre-signed, blank checks that one of the founders had signed with the intention that Lynch would later use them for business purposes. After she used those checks, Lynch began signing the company checks herself, forging the founder’s signature. At times, Lynch also added an entry to the memo line to indicate that the funds were for “Consulting Fees,” but as a salaried employee, Lynch was not entitled to consulting fees. Lynch then endorsed the checks she wrote to herself and – without authorization and for no business purpose – deposited them in her personal bank account. In total, Lynch stole approximately $141,845 from the company’s bank account in this manner.
During approximately the same time period, Lynch repeatedly logged onto the company’s online bank account and directed that payments be made via transfer to her personal credit cards. As a result, Lynch stole another $87,243 from the company’s bank account.
United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office, made the announcement. Assistant U.S. Attorney Amy Harman Burkart, Chief of Lelling’s Cybercrimes Unit, prosecuted the case.
Dominican National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON - A Dominican national was sentenced yesterday in federal court in Boston for illegally reentering the United States after being deported.
Juan Confesor Lara Carmona, 29, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to six months in prison and one year of supervised release. Lara Carmona will be subject to deportation proceedings upon completion his sentence. In May 2018, Lara Carmona pleaded guilty to one count of illegal reentry of a deported alien. Lara Carmona is currently in state custody and awaiting trial in Essex Superior Court on drug distribution charges.
On Oct. 20, 2017, law enforcement in Lawrence arrested Lara Carmona and charged him with distribution of cocaine and fentanyl. At the time of his arrest, Lara Carmona’s fingerprints were obtained, and he was determined to be illegally present in the United States having been previously deported on Jan. 16, 2016.
United States Attorney Andrew E. Lelling and Todd Lyons, Acting Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.
Owners of Home Healthcare Company Charged with Tax FraudRead the Press Release
BOSTON – The co-owners of a Boston-area home healthcare company were charged in federal court in Boston today for underreporting income to the IRS resulting in over $1 million in losses.
Hannah Holland, 51, of Quincy, and Sheila O’Connell, 33, of North Weymouth, were charged in an Information with 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 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 Economic Crimes Unit, and Trial Attorney Brittney Campbell of the Department of Justice’s Tax Division are prosecuting the case.
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.
Newburyport Man Pleads Guilty to Dealing FirearmsRead the Press Release
BOSTON – A man with alleged ties to the Latin Gangsta’ Disciples street gang pleaded guilty today in federal court in Boston in connection with the sale of numerous firearms in and around Lawrence.
Jose Ilarraza, a/k/a “Kae-Kae,” 26, of Newburyport, pleaded guilty to dealing firearms without a license and conspiracy to deal firearms without a license. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Jan. 23, 2019. In February 2018, Ilarraza was charged along with Bryan Torres-Almanzar, a/k/a “Flex,” 19, and Eric Valentin, a/k/a “Jefe,” 22, both of whom previously pleaded guilty.
In September 2017, an individual who was working as a cooperating witness for federal investigators was approached by Ilarraza after Ilarraza heard that the cooperating witness was interested in obtaining firearms to send to the Dominican Republic. Ilarraza, who was incarcerated at the time on state charges of breaking and entering and resisting arrest, instructed the cooperating witness to contact Torres-Almanzar, who, according to Ilarraza, was heavily involved in firearms trafficking.
On six occasions between Sept. 12, 2017, and Oct. 19, 2017, another cooperating witness used Ilarraza’s tip to purchase firearms from Torres-Almanzar and Valentin. The cooperating witness was directed to put the proceeds of the first such sale into Ilarraza’s canteen account at the Middleton House of Corrections.
The charges of dealing in firearms without a license and conspiracy each provide 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; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Lawrence Police Chief Roy P. Vasque; Essex County Sheriff Kevin F. Coppinger; Essex County District Attorney Jonathan W. Blodgett; Lowell Superintendent of Police Kelly Richardson; and Nashua (N.H.) Police Chief Andrew J. Lavoie made the announcement today.
Methuen Physician Convicted of Insider Trading in Shares of Ariad PharmaceuticalsRead the Press Release
BOSTON – A Methuen physician was convicted today by a federal jury of insider trading in the shares of Ariad Pharmaceuticals based on information gleaned from his spouse, who worked at the company.
Harold Altvater, 57, was convicted following a one-week jury trial of three counts of securities fraud. U.S. District Court Judge Denise J. Casper scheduled sentencing for Jan. 16, 2019.
The charges related to three occasions in late 2013 when Dr. Altvater misappropriated nonpublic information from his spouse about the safety of Ariad’s only marketed product, the leukemia drug Iclusig, as well as about the company’s negotiations with the U.S. Food and Drug Administration (FDA) concerning whether the drug would be permitted to remain on the market in the wake of serious adverse events that occurred during the drug’s clinical trials. At the time, Altvater’s spouse was the director of drug safety for Ariad. Without his spouse’s knowledge, Altvater then traded in Ariad shares in his personal accounts ahead of several critical announcements, avoiding losses and notching gains totaling approximately $115,000. In 2017, Ariad was acquired by Takeda Pharmaceutical Co., Ltd.
Today’s verdict marks the second time in three months that a Boston jury has convicted defendants of insider trading in the shares of local pharmaceutical companies. In July, two defendants, Schultz “Jason” Chan, 54, of Newton, and Songjiang Wang, 54, of Westford, were convicted of securities fraud and conspiracy to commit securities fraud in connection with a scheme to trade on inside information concerning their employers, Akebia Pharmaceuticals and Merrimack Pharmaceuticals, respectively. Chan and Wang are scheduled to be sentenced on Oct. 22 and Nov. 5, 2018.
In June 2018, a fourth pharmaceutical executive, Robert Gadimian, of California-based Puma Technology, Ltd., was sentenced to 27 months in prison after pleading guilty to seven counts of securities fraud in connection with trading on inside information in that company, earning profits of nearly $1 million.
The charging statute provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $5 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Harold Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Economic Crimes Unit and Special Assistant U.S. Attorney Michael Joseph Vito are prosecuting the case.
MS-13 Leader Sentenced for RICO ConspiracyRead the Press Release
BOSTON – The leader of MS-13’s Eastside Loco Salvatrucha (ESLS) clique was sentenced today in federal court in Boston for RICO conspiracy.
Herzzon Sandoval, a/k/a “Casper,” 36, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 20 years in prison and two years of supervised release. In February 2018, Sandoval and two other MS-13 members, Edwin Guzman, a/k/a “Playa,” 32, and Erick Argueta Larios, a/k/a “Lobo,” 33, both Salvadoran nationals residing in the U.S. illegally, were convicted by a federal jury of conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. A fourth MS-13 member, Cesar Martinez, a/k/a “Cheche,” 37, also a Salvadoran national illegally residing in the U.S., was convicted at the same trial of conspiracy to possess with intent to distribute 500 grams or more of cocaine.
According to court documents, MS-13 was identified as a violent transnational criminal organization whose branches, or “cliques,” operate throughout the United States, including in Massachusetts. MS-13 members are required to commit acts of violence, specifically against rival gang members, to gain membership in and be promoted within the gang. Sandoval and Guzman were the leaders, also known as the “first word,” and “second word,” of the ESLS clique in Massachusetts.
On Sept. 20, 2015, Joel Martinez, a/k/a “Animal,” murdered a 15-year-old boy in East Boston. On Jan. 8, 2016, as a reward for the 2015 murder, Joel Martinez was promoted by the gang to “homeboy” status with a 13-second beat-in by other MS-13 members at an ESLS meeting that Sandoval, Guzman, Martinez and Argueta Larios attended.
In May 2018, Joel Martinez was sentenced to 40 years in prison and two years of supervised release after pleading guilty to RICO conspiracy involving murder. Cesar Martinez, Guzman, and Argueta Larios are scheduled to be sentenced on Nov. 6, Nov. 15, and Nov. 19, 2018, respectively.
Sandoval was one of 49 defendants convicted as part of this case. All nine defendants who went to trial were convicted and 40 others pleaded guilty. In all, 16 defendants, including Joel Martinez, 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.
Worcester Man Pleads Guilty to Methamphetamine ChargesRead the Press Release
BOSTON – A Worcester man pleaded guilty today in federal court in Worcester for his role in a methamphetamine conspiracy.
Adam Germano, 37, pleaded guilty to conspiring to distribute and to distributing methamphetamine from Las Vegas to Worcester. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Jan. 4, 2019. Germano was arrested in March 2017, and has been in custody since that time.
Germano admitted to shipping large quantities of methamphetamine into Massachusetts, New Hampshire, and Florida, and to distributing methamphetamine to dealers and others in Massachusetts and New Hampshire in exchange for cash. In January 2017, Germano arranged for a package to be shipped via U.S. mail from Las Vegas to Worcester. The package was intercepted and found to contain more than two kilograms of approximately 97% pure methamphetamine. In March 2017, during a traffic stop in Concord, N.H., police located methamphetamine and a handgun hidden in the engine of the car that Germano was driving.
Germano faces a sentence of between 10 years and life in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. Valuable assistance was provided by the Police Departments in Merrimack and Concord, N.H. Assistant U.S. Attorney Bill Abely of Lelling’s Worcester Branch Office is prosecuting the case.
Sturbridge Woman Indicted for Government Theft and False StatementRead the Press Release
BOSTON – A Sturbridge woman was indicted by a federal grand jury in Worcester yesterday in connection with receiving government funds for a disabled child who was no longer in her custody.
Tanya Chobot, 32, was indicted on one count of government theft and one count of making a false statement to the Social Security Administration. She was charged by criminal complaint and arrested on Sept. 7, 2018, and has been detained since that time.
According to the charging documents, Chobot accepted more than $23,000 in Social Security disability payments on behalf of her biological child, but did not have custody or provide care to the child. On multiple occasions between 2011 and 2017, Chobot made materially false and fraudulent statements to Social Security to facilitate her continued receipt of the funds. For example, in October 2013, Chobot submitted a report to Social Security that falsely indicated that the child lived with her and that she had used money from Social Security for the support of the child. Chobot did not, in fact, use the Social Security payments made on behalf of the child for that child’s benefit.
The charge of theft of government funds provides for a sentence of no greater than 10 years in prison and the charge of making a false statement provides for a sentence of no greater than five years in prison. Each charge provides for up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement. Assistant U.S. Attorney Bill Abely 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.