District of Massachusetts
Press releases recorded for this federal judicial district.
Saugus Man Sentenced for Role in Lawrence-Based Heroin/Fentanyl Trafficking SchemeRead the Press Release
BOSTON – A Saugus man was sentenced today in federal court in Boston for his role in a heroin trafficking scheme operating in and around Lawrence.
Edwin Soto, 46, was sentenced by U.S. District Court Judge Indira Talwani to four years in prison, six years of supervised release, and ordered to pay $99,200 in forfeiture. In October 2017, Soto pleaded guilty to one count of conspiracy to possess with intent to distribute and distribution of a controlled substance – heroin and fentanyl.
From about April 2015 to March 2016, law enforcement investigated the drug distribution activities of Ramon Baez and his associates in and around the City of Lawrence. Baez obtained kilograms of heroin and cocaine from local suppliers and suppliers based in Mexico. Baez’s co-conspirator, Jose A. Rosario, supplied Baez with heroin, which Baez then repackaged for distribution.
Soto and co-defendant Waner Manuel Lara purchased heroin and fentanyl from Baez. On Dec. 29, 2015, law enforcement officers seized $99,200 in drug proceeds from Soto, intended for Baez. On March 19, 2016, agents seized from Lara 140 grams of heroin and fentanyl supplied to him by Baez.
Baez was sentenced in June 2017 to 121 months in prison, and Rosario was sentenced in September 2017 to 22 months in prison. Lara pleaded guilty in October 2017 and is awaiting a sentencing date.
United States Attorney Andrew E. Lelling and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. Assistant U.S. Attorney Katherine Ferguson of Lelling’s Narcotics and Money Laundering Unit is prosecuting the cases.
Salvadoran National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON - A Salvadoran national was sentenced yesterday in federal court in Boston for an immigration crime.
Salvador Portillo-Diaz, 30, was sentenced by U.S. District Court Judge Indira Talwani to time served and three years of supervised release. Portillo-Diaz will be subject to deportation. In October 2017, Portillo-Diaz pleaded guilty to one count of unlawful reentry of a deported alien.
On March 18, 2006, and May 24, 2011, Portillo-Diaz was deported from the United States. On June 2017, federal agents encountered Portillo-Diaz at the Suffolk County House of Correction and determined him to be illegally present in the United States.
United States Attorney Andrew E. Lelling and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.
Rhode Island Man Sentenced to 10 Years for Cocaine DistributionRead the Press Release
BOSTON – A Rhode Island man was sentenced today in federal court in Boston for his role in a wide-ranging operation that distributed cocaine and heroin throughout Bristol County, Mass., and Providence, R.I.
Jorge Luis Sanchez-Lopez, 43, of Pawtucket, R.I., was sentenced by U.S. District Court Judge Rya W. Zobel to 10 years in prison and five years of supervised release. In September 2017, Sanchez-Lopez pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute five kilograms of cocaine.
Sanchez-Lopez was one of 10 individuals involved in a drug trafficking operation led by co-defendant Luis Lopez that imported hundreds of kilograms of cocaine from Puerto Rico to New Bedford and Fall River, as well as distributed heroin, fentanyl, and acetyl fentanyl in Bristol County. Sanchez-Lopez coordinated shipments of cocaine through the U.S. mail with the assistance of co-defendant Chindy Diaz, who received cocaine-filled packages on Luis Lopez’s behalf and delivered it to Luis Lopez at his Fall River residence. Co-conspirator Israel Santiago also helped coordinate the receipt of cocaine on behalf of Luis Lopez, who then sold the cocaine to other drug dealers, including Nuno Fonseca and Tyson Britto.
In June 2016, the 10 defendants were charged for their individual roles in the operation. All of the conspirators have pleaded guilty and been sentenced. In January 2017, Luis Lopez was sentenced to 15 years in prison and Sharik Mendes was sentenced to 30 months in prison. In April 2017, Tyson Britto and Israel Santiago were sentenced to 78 months in prison and two years in prison, respectively. In June 2017, Fonseca was sentenced to 130 months in prison. In July 2017, Tyson Depina and Eric Desousa were sentenced to six years in prison and three years in prison, respectively; and in September 2017, Diaz was sentenced to three years in prison.
United States Attorney Andrew E. Lelling; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement. Assistant U.S. Attorney Eric Rosen of Lelling’s Criminal Division prosecuted the cases.
Rhode Island Man Charged with Bank RobberyRead the Press Release
BOSTON - A Rhode Island man was charged in federal court in Boston with bank robbery.
Stephen A. Davidow, 55, of Pawtucket, R.I., was charged with one count of bank robbery. Davidow appeared before U.S. District Court Magistrate Judge Donald L. Cabell yesterday and was ordered detained.
According to court documents, between Dec. 6 and Dec. 11, 2017, an individual, later identified as Davidow, robbed four banks in the Greater Boston area. Based on the physical location of the banks, bank surveillance footage, the bank tellers’ descriptions of the robber, and other similarities, law enforcement determined that the same individual was involved in each robbery. On Dec. 15, 2017, having distributed images of the alleged perpetrator on the local news, law enforcement received a tip that the suspect was Davidow. Photos of Davidow were shown to one of the tellers who then positively identified Davidow as the man who robbed the bank. The investigation also revealed that Davidow has a 2007 bank robbery conviction in federal court in Rhode Island and had an active warrant for a violation of his supervised release.
The charge 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 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; John Gibbons, U.S. Marshal for the District of Massachusetts; Boston Police Commissioner William Evans; and Boston University Police Chief Kelly A. Nee made the announcement. Assistant U.S. Attorney Kenneth G. Shine 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.
Lawrence Man Sentenced for Illegally Possessing a FirearmRead the Press Release
BOSTON – A Lawrence man was sentenced yesterday in federal court in Boston for unlawfully possessing a firearm and ammunition.
Benito Rivera, 45, was sentenced by U.S. District Court Judge William G. Young to 67 months in prison and three years of supervised release. In September 2017, a federal jury convicted Rivera of one count of being a felon in possession of a firearm and ammunition. Rivera’s federal sentence will begin when he is released from state custody, where he is currently serving a two-year sentence for violating state probation.
On Aug. 7, 2016, a law enforcement officer stopped Rivera in Lynnfield for operating a motor vehicle with a revoked registration. After being ordered to exit the vehicle, Rivera fled the scene on foot. The foot chase ended when the officer tackled Rivera and the two men rolled onto Route 1. Two civilian witnesses saw Rivera throw an object into a nearby backyard as he was fleeing the scene. A search of the yard resulted in the seizure of a Hi-Point, Model C9, 9mm pistol loaded with seven rounds of 9mm ammunition. Previously, Rivera had been convicted in Massachusetts State Court of two counts of armed robbery and cocaine trafficking and in federal court of conspiracy to distribute cocaine.
United States Attorney Andrew E. Lelling; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement. Assistant U.S. Attorneys Anne Paruti, David G. Tobin, and Nicholas Soivilien of Lelling’s Major Crimes Unit prosecuted the case.
Honduran National Pleads Guilty to Illegal Reentry After DeportationRead the Press Release
BOSTON – A Honduran national pleaded guilty today in federal court in Boston to an immigration charge.
William Maradiaga-Oseguera, 32, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for April 4, 2018.
On Aug. 29, 2017, law enforcement officers in Boston encountered Maradiaga-Oseguera and determined him to be illegally present in the United States. Maradiaga-Oseguera was previously deported on March 27, 2009; March 17, 2012; July 9, 2012; and Nov. 13, 2013.
Maradiaga-Oseguera faces a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $250,000, and will be subject to deportation proceedings upon completion of his sentence. 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 Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.
Guatemalan National Pleads Guilty to Illegal ReentryRead the Press Release
BOSTON – Gilberto Ramirez-Ramirez, 27, pleaded guilty today in federal court in Boston to one count of unlawful reentry of a deported alien. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for April 5, 2018.
In April 2017, law enforcement in Lynn encountered Ramirez-Ramirez and determined him to be illegally present in the United States. Ramirez-Ramirez had previously been deported on March 3, 2016.
The charge provides for a sentence of no greater than 10 years in prison, three years of supervised released, and a fine of up to $250,000. Ramirez-Ramirez will be subject to deportation upon completion of his sentence. 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 Michael S. Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit is prosecuting the case.
Georgia Man Sentenced for Defrauding Staples Inc.Read the Press Release
BOSTON – A Georgia man was sentenced today in federal court in Boston in connection with a scheme to defraud Framingham-based Staples Inc. of more than $1.4 million.
Layne Michael Gosnell, 46, was sentenced by U.S. District Court Judge Leo T. Sorokin to 21 months in prison, three years of supervised release, and ordered to pay $443,913 in restitution and $443,913 in forfeiture. In October 2017, Gosnell pleaded guilty to one count of conspiracy to commit wire fraud and mail fraud. Gosnell pleaded guilty on Sept. 26, 2017, but the Court conducted a second plea hearing due to the fact that immediately after the first plea hearing it was determined that Gosnell tested positive for alcohol above the legal limit in Massachusetts.
Gosnell and co-conspirator John Douglas, among others, engaged in a complex scheme to defraud Staples of more than $1.4 million worth of customer loyalty rewards and product rebates by creating more than 1,100 Staples rewards accounts, often using fictitious names, addresses and contact information. Douglas created a computer script to query a Staples website and seek unclaimed customer loyalty rewards for purchases that neither he nor Gosnell made. The computer script made thousands of queries a day, amassing more than $889,000 worth of rewards in small increments, often less than one dollar at a time. Gosnell and Douglas then used the rewards like cash to buy merchandise at Staples retail locations throughout the southern United States and along the eastern seaboard, as far north as Massachusetts. Gosnell sold his share of the fraudulently obtained Staples merchandise on eBay.
Gosnell and Douglas used a similar method to claim more than $527,000 in cash rebates from Staples for products that they did not purchase.
Staples discovered the fraud and referred the matter to federal authorities.
Douglas was sentenced on Sept. 6, 2017, to 30 months in prison and ordered to pay $691,327 in restitution and $553,061 in forfeiture.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. Assistant U.S. Attorney David J. D’Addio of Lelling’s Cybercrime Unit prosecuted the case.
Dominican National Sentenced for Passport FraudRead the Press Release
BOSTON - A Dominican national was sentenced yesterday in federal court in Worcester for passport fraud.
Adolfo Santana Gonzalez, 31, was sentenced by U.S. District Court Judge Timothy S. Hillman to 366 days in prison. Santana Gonzalez will be subject to deportation upon completion of his sentence. In October 2017, Santana Gonzalez pleaded guilty to one count of misuse of a Social Security number and one count of making a false statement in an application for a United States passport.
In November 2016, Santana Gonzalez, using the identification and Social Security number assigned to another individual, submitted an application for a U.S. passport at a U.S. Post Office in Worcester in that individual’s name.
United States Attorney Andrew E. Lelling and William B. Gannon, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office, made the announcement today. U.S. Customs and Border Protection provided assistance with the investigation. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.
Dominican National Sentenced for Passport FraudRead the Press Release
BOSTON – A Dominican national previously charged with passport fraud, pleaded guilty and was sentenced yesterday in federal court in Boston.
Luis Hidalgo-Jimenez, 45, a Dominican national formerly residing in Lawrence, pleaded guilty to one count of passport fraud before U.S. Senior District Court Judge Rya W. Zobel, who sentenced Hidalgo-Jimenez to a period of time served. Hidalgo-Jimenez was arrested on Nov. 9, 2017, and has been in federal custody since that time.
On Feb. 20, 2009, Hidalgo-Jimenez submitted an application for a United States passport at a post office in Lawrence using the name and identifying information of a United States citizen. In support of the passport application, Hidalgo-Jimenez submitted a Connecticut driver’s license with his photograph along with the name and identifying information of another person. He also submitted a copy of the other person’s birth certificate, which was issued in Puerto Rico. Federal officials noticed evidence of fraud when reviewing the passport application and supporting documents. When Hidalgo-Jimenez was interviewed by federal law enforcement, he admitted to applying for the passport using the name and identifying information of a United States citizen.
United States Attorney Andrew E. Lelling; William B. Gannon, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service; and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney David G. Tobin of Lelling’s Major Crimes Unit prosecuted the case.
Cambridge Hedge Fund Manager Pleads Guilty to Investment Fraud SchemeRead the Press Release
BOSTON – The owner of two Cambridge-based investment advisory firms pleaded guilty yesterday in federal court in Boston in connection with a scheme to defraud hedge fund investors.
Yasuna J. Murakami, 44, pleaded guilty to wire fraud and is scheduled to be sentenced on April 8, 2018 before U.S. Senior District Court Judge Douglas P. Woodlock. In May 2017, Murakami was charged and arrested.
Murakami was a managing member of MC2 Capital Management LLC and MC2 Canada Capital Management LLC – investment advisory firms through which he established and managed three hedge funds: the MC2 Capital Partners Fund, MC2 Capital Value Fund, and MC2 Capital Canadian Opportunities Fund. Between 2011 and 2016, Murakami fraudulently diverted millions of dollars of investor funds to business and personal accounts that he controlled. He used the money to pay for lavish personal expenses such as a luxury sports car, international travel, and payments to personal credit cards and high-end department stores. Murakami used new investor contributions to make Ponzi scheme-like payments to earlier investors who had made redemption requests and to place investments in his own name.
As part of the fraud, Murakami withheld material information regarding the management of the MC2 Canadian Opportunities Fund and provided investors with falsified account statements and tax documentation in an effort to lull them into believing that their investments were safe.
In a parallel action, the Securities and Exchange Commission (SEC) announced securities fraud charges against Murakami and his hedge fund advisory firms in May 2017. The SEC also filed charges against Murakami’s former business partner, Avi Chiat, in connection with the scheme. In January 2017, the Massachusetts Securities Division filed civil fraud charges against Murakami for the same conduct.
The charging statute provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss. 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 Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorney Jordi de Llano, Deputy Chief of Lelling’s Economic Crimes Unit, is prosecuting the case.
Operator of Temporary Employment Agency Sentenced for Tax Crimes and Insurance FraudRead the Press Release
BOSTON – A Providence woman was sentenced today in federal court in Boston in connection with a long-running, off-the-books payroll scheme through which her temporary employment agency evaded federal employment taxes and workers’ compensation insurance premiums.
Souleang Kane, 48, was sentenced by U.S. District Court Senior Judge Douglas P. Woodlock to two years in prison, three years of supervised release, and ordered to pay restitution. In October 2018, Kane pleaded guilty to 18 counts of willful failure to collect and pay over taxes to the Internal Revenue Service (IRS) and five counts of mail fraud.
From 2010 to 2015, Kane operated a series of temporary employment agencies under the name Expert Staffing, Affordable Staffing and M&K Temp Inc., providing labor for Massachusetts companies in agricultural industries. During that time, Kane failed to report to the IRS approximately $4.3 million that her agencies paid in employee wages. Although she withheld federal taxes from the wages of her employees, Kane failed to report the wages to the IRS. Kane thereby avoided collecting and paying to the IRS both the taxes required to be withheld from employee wages and the matching employer taxes she was required to pay. As a result, Kane evaded payment of more than $1.3 million in federal taxes. She also evaded more than $431,000 in Massachusetts state taxes.
In addition, Kane grossly understated her business’ payroll in dealings with her workers’ compensation insurance providers. As a result, her workers’ compensation insurance premiums were fraudulently reduced by approximately $165,000 between 2010 and 2015.
United States Attorney Andrew E. Lelling; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Anthony DiPaolo, Chief of Investigations of the Massachusetts Insurance Fraud Bureau, made the announcement. Assistant U.S. Attorney Victor A. Wild of Lelling’s Economic Crimes Unit prosecuted the case.
Dominican National Sentenced for Drug ConspiracyRead the Press Release
BOSTON - A Dominican national was sentenced yesterday in federal court in Boston for his role in a drug trafficking conspiracy.
Juan Manuel Serrano Tejeda, a/k/a Jose R. Narvaez-Arroyo, a/k/a “Pacha,” 40, was sentenced by U.S. District Court Judge Indira Talwani to 42 months in prison and three years of supervised release. In August 2017, Serrano Tejeda pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute controlled substances. Tejeda-Serrano previously pleaded guilty to a separate federal charge of illegally re-entering the country after being deported; he was sentenced to 21 months in prison and three years of supervised release on that charge. He will serve both sentences concurrently.
In February 2017, Serrano Tejeda and 12 others were charged in an indictment with conspiring to distribute heroin, fentanyl and cocaine. The charge stemmed from a six-month wiretap investigation into the drug activities of Jose Antonio Lugo-Guerrero, who was allegedly operating a trafficking organization first in New Bedford and later in Boston. On Jan. 3, 2017, Serrano Tejeda brokered the sale of a kilogram of cocaine to Lugo-Guerrero. On Jan. 5, 2017, Lugo-Guerrero ordered from Serrano Tejeda another two kilograms of cocaine, which Lugo-Guerrero then attempted to steal, but was unsuccessful.
United States Attorney Andrew E. Lelling and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement. Assistant U.S. Attorney Theodore Heinrich of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
Statement by U.S. Attorney Andrew E. Lelling Regarding Federal Marijuana EnforcementRead the Press Release
I understand that there are people and groups looking for additional guidance from this office about its approach to enforcing federal laws criminalizing marijuana cultivation and trafficking. I cannot, however, provide assurances that certain categories of participants in the state-level marijuana trade will be immune from federal prosecution.
This is a straightforward rule of law issue. Congress has unambiguously made it a federal crime to cultivate, distribute and/or possess marijuana. As a law enforcement officer in the Executive Branch, it is my sworn responsibility to enforce that law, guided by the Principles of Federal Prosecution. To do that, however, I must proceed on a case-by-case basis, assessing each matter according to those principles and deciding whether to use limited federal resources to pursue it.
Deciding, in advance, to immunize a certain category of actors from federal prosecution would be to effectively amend the laws Congress has already passed, and that I will not do. The kind of categorical relief sought by those engaged in state-level marijuana legalization efforts can only come from the legislative process.
Nine Charged with Committing Drug and Firearm Offenses in and Around Boston Housing Authority PropertyRead the Press Release
BOSTON – Nine men – eight of whom are alleged gang members and associates – have been charged in connection with committing drug and firearms violations around the Mildred C. Hailey Apartments in Jamaica Plain. Seven were arrested this morning and will appear in federal court in Boston this afternoon.
“Gangs are an organized, long-term threat to our neighborhoods,” said United States Attorney Andrew E. Lelling. “All of us have the right to live in safe communities – without fear of getting hurt, being subjected to drug dealing on our street corners, or our children being recruited into a life of crime. I will use the considerable resources of the Justice Department to afford every resident the right to live, work and play in a safe environment. I applaud the police officers and federal agents who spend their days identifying and building cases against the gangs in Boston’s neighborhoods.”
“ATF’s priority is keeping communities and its citizens safe by detecting and stopping the trafficking of firearms and narcotics. Today is another example of how ATF accomplishes that goal,” said Mickey Leadingham, Special Agent in Charge of the ATF Boston Field Division. “Firearms and narcotics trafficking continue to be a priority for ATF and our law enforcement partners. We are committed to identifying and disrupting the sources of trafficking illegal firearms and narcotics which endanger our communities.”
“These arrests come as a result of a two-year investigation working closely with our federal law enforcement partners,” said Boston Police Commission William Evans. “Public safety in Boston is my number one priority and I will continue to use all the resources available to target individuals driving violence in our city. I commend the work of my officers and all those involved in taking these dangerous individuals off the streets and the work they do every day to keep Boston safe.”
Following a two-year investigation, federal and local law enforcement arrested seven individuals this morning 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. The development, one of the largest owned by the Boston Housing Authority, has been severely impacted by the prevalence of drug trafficking, shootings and other crimes, much of which is instigated by gangs. According to the Boston Regional Intelligence Center, over a 10-month period in 2017, there were 36 incidents of shots fired, eight non-fatal shootings, one homicide, 20 drug-related arrests and 25 robberies in and around the development. According to court documents, the investigation and arrests aim to reduce violence and improve the quality of life for residents by removing individuals who traffic drugs and who are actively involved in violence and gang disputes.
The following individuals are alleged members of the Heath Street Gang and are charged with distribution of controlled substances within 1,000 feet of a public housing facility:
- Cerone Davis, a/k/a “Jp,” 25, of Boston;
- Joe Simmons, a/k/a “Profit,” 30, of Boston; and
- Jarrod Simmons, a/k/a “Rizz,” 21, of Boston.
The following individuals are alleged members of the Heath Street Gang and are charged with conspiracy to distribute cocaine base and distribution of cocaine base within 1000 feet of a public housing facility:
- Dominique Finch, a/k/a “Heff,” 27, of Boston;
- James Finch, 32, of Boston, remains a fugitive;
- Javonte Robinson, a/k/a “Biggie,” “Big Dog,” 21; and
- Kevin Smith, a/k/a “Works,” 27, of Boston.
Franklin Safo-Agyare, a/k/a “Frankie So So Smooth,” 25, of Worcester, is charged with being a felon in possession of a firearm and ammunition.
Kendrick Tate, a/k/a “K-Roc,” 25, of Chelsea, is an alleged member of the Health Street Gang and is charged with distribution of cocaine base and being a felon in possession of a firearm and ammunition. Tate is currently serving a three-and-a-half-to-four-year sentence for unrelated state drug and firearm convictions.
The charge of distribution of controlled substances within 1,000 feet of a public housing development provides for a mandatory minimum sentence of one year and no greater than 40 years in prison, a minimum of six years and up to a lifetime of supervised release, and a fine of $2 million. The charge of distribution of cocaine base provides for a sentence of no greater than 20 years in prison, at least three years and up to a lifetime of supervised release, and a fine of up to $1 million. The charge of being a felon in possession of a firearm provides for a sentence of no greater than 10 years in prison, up to three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Lelling, ATF SAC Leadingham and Boston Police Commissioner Evans made the announcement today. 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 defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former U.S. Postal Service Employee Pleads Guilty to EmbezzlementRead the Press Release
BOSTON – A former postal employee pleaded guilty today to embezzling over $22,000 from the U.S. Postal Service (USPS).
Dennis Reis, 37, of Taunton, pleaded guilty to one count of embezzlement and theft of public money, property or records before U.S. District Court Judge Denise J. Casper, who scheduled sentencing for April 25, 2018.
Reis had been employed by the USPS since approximately 2000, and was the Lead Sales & Service Associate at the East Taunton Post Office since 2014. In that capacity, Reis sold stamps to customers and maintained accountability for the funds and stamp stock. From January 2015 to March 2017, Reis engaged in a scheme to embezzle funds by voiding cash transaction sales of stamps so that the system did not account for the cash paid by customers. Reis then entered a “no sale” transaction into the system, causing the cash drawer to open and taking the cash paid by customers for his own use. Through this scheme, Reis embezzled at least $22,773 from the USPS.
The charging statute provides a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Eileen Neff, Special Agent in Charge of the United States Postal Service, Office of Inspector General, Northeast Area Office, made the announcement today. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
California Man Sentenced for Operating Bi-Coastal Marijuana Distribution RingRead the Press Release
BOSTON – A California man was sentenced today in federal court in Boston in connection with a large-scale marijuana distribution and money laundering ring operating between California and the East Coast.
Vira Yuth Chao, 41, of Temecula, Calif., was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 86 months in prison and three years of supervised release. In March 2017, Chao pleaded guilty to conspiracy to distribute and possess with intent to distribute 1,000 kilograms or more of marijuana and one count of conspiracy to launder monetary instruments. In September 2016, Chao and co-conspirator Ratanack Oung, of Allentown, Penn., were charged and arrested. In December 2017, Oung was sentenced to four years in prison.
Beginning around January 2014, Chau and Oung shipped large quantities of marijuana from California to the East Coast of the United States. When payment for the marijuana was due, Oung collected drug proceeds from co-conspirators and deposited the cash (typically in an amount under $10,000) into one of many “feeder” accounts in banks along the East Coast, including in Massachusetts. The “feeder” accounts were maintained in the names of businesses or individuals associated with Chau in order to disguise the nature and ownership of the drug proceeds flowing into the accounts. Once the money was deposited, it was either withdrawn in cash in California or transferred into a “target” account, which was an account controlled by Chau and then withdrawn. In total, the operation distributed between 1,000 to 3,000 kilograms of marijuana and laundered approximately $6,135,035 in drug proceeds.
United States Attorney Andrew E. Lelling; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The DEA, Los Angeles Division, Riverside County (California) Sheriff’s Department and Murrieta (California) Police Department also assisted with the investigation. Assistant U.S. Attorney Eric Rosen of Lelling’s Criminal Division prosecuted the case.
Malden Woman Sentenced for Theft of Government BenefitsRead the Press Release
BOSTON – A Malden woman was sentenced today in federal court in Boston for collecting over $166,000 in government benefits by providing false information about her family.
Julie Mijal, 40, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to one month in prison, two years of supervised release - with the first six months to be served in home confinement - and ordered to pay approximately $166,487 in restitution. In September 2017, Mijal pleaded guilty to three counts of theft of public money and three counts of making false statements.
Mijal has lived in Malden with her children and their father since at least 2003. During that time, Mijal and her children’s father owned a house together and used the same address on their driver’s licenses, tax returns and other records.
During those same years, however, Mijal collected needs-based Supplemental Security Income (SSI) benefits on behalf of her child by telling the Social Security Administration that her child only lived with her and a sibling, and not with the child’s father. Social Security uses the household’s total income to determine whether someone is eligible for SSI benefits. As a result, Social Security did not count the father’s income when determining whether Mijal’s child was eligible for benefits. Mijal collected $87,053 in SSI benefits that she would not have received if she had reported that her children’s father was also part of the household. In a similar manner, Mijal collected $47,745 in Supplemental Nutrition Assistance Program benefits and $31,688 in MassHealth benefits by failing to disclose that her children’s father lived with them.
United States Attorney Andrew E. Lelling; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Suzanne M. Bump, State Auditor of the Commonwealth of Massachusetts, made the announcement. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit prosecuted the case.
Lawrence Man Sentenced to 22 Months in Prison for Falsifying Audio Recordings in Federal InvestigationRead the Press Release
BOSTON – A Lawrence man who was working as a paid cooperator for the Internal Revenue Service’s Criminal Investigation (IRS-CI) was sentenced today in federal court in Boston in connection with falsifying audio recordings in a federal investigation.
Erick Santiago-Then, 36, was sentenced by U.S. District Court Judge Allison D. Burroughs to 22 months in prison, three years of supervised release, and ordered to pay $10,124 in restitution to the IRS. In October 2017, Santiago-Then pleaded guilty to 10 counts of falsifying records in a federal investigation.
In February 2014, Santiago-Then was working as a paid cooperator for IRS-CI. As part of his work to uncover evidence against the perpetrators of a stolen identity refund fraud scheme, Santiago-Then was given IRS-CI funds and authorized to set up a controlled meeting with a perpetrator to purchase fraudulently-obtained tax refund checks. Instead, Santiago-Then set up a sham meeting with a cohort during which he obtained a list of personal identifying information rather than tax refund checks. Following the controlled meeting, and unbeknownst to IRS-CI, Santiago-Then split the IRS-CI funds with his cohort. Thereafter, Santiago-Then engineered several recorded phone calls during which his cohort posed as someone else and purportedly gave Santiago-Then the run around concerning the purported mix up regarding the tax refund checks.
United States Attorney Andrew E. Lelling; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Scott Antolik, Special Agent in Charge of the Social Security Administration’s Office of the Inspector General, Office of Investigations, Boston Field Division; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service, Boston Field Office; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigations, Boston Field Division, made the announcement. Assistant U.S. Attorney Ryan M. DiSantis of Lelling’s Public Corruption Unit prosecuted the case.
Boston Man Pleads Guilty to Failing to Register as a Sex OffenderRead the Press Release
BOSTON – A Boston man pleaded guilty today in federal court in Boston to failure to register as a sex offender.
Harris Taubman, 57, pleaded guilty to one count of failing to register as a sex offender before U.S. Senior District Court Judge Mark L. Wolf, who scheduled sentencing for March 28, 2018.
Taubman is required to register as a Level 2 sex offender in Massachusetts based on a 2009 federal conviction for possession and receipt of child pornography. Taubman last registered his address in September 2016; in March 2017, law enforcement discovered that Taubman had left that address in January 2017 and thereafter failed to update his registration with the Sex Offender Registry Board.
Failing to register as a sex offender carries a sentence of no greater than 10 years in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of up to $250,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and John Gibbons, United States Marshal for the District of Massachusetts, made the announcement today. Assistance was provided by the Boston Police Department. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Salvadoran National Charged with Failing to Register as a Sex OffenderRead the Press Release
BOSTON – A previously deported Salvadoran national appeared in federal court in Boston today to face the charge of failure to register as a sex offender.
Oscar Alfaro, 46, is in state custody in connection with sexual assault charges stemming from a 2016 incident in Newbury. On Dec. 21, 2017, Alfaro was indicted in federal court on one count of failure to register as a sex offender.
In 2008, Alfaro was convicted in Virginia state court for taking indecent liberties with a child. As a result, Alfaro was required to register as a sex offender in any jurisdiction where he lives or works. Following his 2008 conviction, Alfaro was deported.
In March 2016, Alfaro committed an indecent assault and battery in Massachsuetts, which qualified as a sex offense under Massachusetts state law. After the assault, Alfaro left Massachusetts. The U.S. Marshals Service located and apprehended Alfaro in Virginia in November 2017 and returned him to Massachusetts to face the state sexual assault charges.
Failing to register as a sex offender provides for a sentence of no greater than 10 years in prison, a minimum of five years and up to lifetime supervised release, and a fine of $250,000. Alfaro will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and John Gibbons, United States Marshal for the District of Massachusetts, made the announcement today. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Two Charged in Marijuana Grow OperationsRead the Press Release
BOSTON – Two central Massachusetts men have been charged in federal court in Springfield in connection with marijuana grow operations.
Peter Molle, 35, of Holland, was arrested today and charged with manufacturing marijuana and possessing marijuana with intent to distribute. On Dec. 15, 2017, Eric Vallee, 38, of Sutton was arrested and charged with manufacturing marijuana and possessing marijuana with intent to distribute.
According to court documents, Vallee was featured in a magazine article noting that he regularly harvests 10 pounds of marijuana based on a cultivation timetable that would result in his harvesting hundreds of pounds of marijuana per year. The article noted that Vallee worked with Molle. Both Valle and Molle used bank accounts that featured large amounts of cash deposits that were consistent with the proceeds of drug sales.
In February 2017, agents executed search warrants at a house in Auburn where Vallee then resided, at a house in Sutton where Vallee had previously resided, and at a house in Holland where Molle resided. At each location, agents discovered commercial-style marijuana grow operations. More than 100 marijuana plants were found at Vallee’s Auburn residence, more than 100 marijuana plants at Molle’s Holland residence, and more than 30 marijuana plants were found at the residence in Sutton.
It is alleged that Vallee and Molle continued to engage in substantial marijuana cultivation even after the execution of the search warrants. On Dec. 12, 2017, additional search warrants were executed at Vallee’s house in Sutton and at Molle’s house in Holland. At both locations, significant commercial-style marijuana grow operations were found. In addition, marijuana packaged for sale was recovered at Vallee’s residence.
Each defendant faces a sentence of no greater than five years in prison, a minimum of two years and up to a lifetime of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Office, made the announcement today. 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 defendants are each presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Dominican National Sentenced for Role in Massachusetts RMV Identity Theft SchemeRead the Press Release
BOSTON – A Dominican national illegally residing in Jamaica Plain was sentenced yesterday in federal court in Boston for his role in a scheme to produce false identification documents through the Massachusetts Registry of Motor Vehicles (RMV).
Angel Miguel Beltre Tejeda, 32, was sentenced by U.S. District Court Judge George A. O’Toole, Jr. to two years in prison and one year of supervised release. Tejeda will be deported following completion of his sentence. Tejeda was arrested in August 2017 along with five others, and pleaded guilty to aggravated identity theft in October 2017.
The RMV issues identification documents such as drivers’ licenses, learners’ permits and state identification cards. To prevent people from obtaining a fraudulent identification document, the RMV maintains systems to verify whether applicants’ identity information is accurate.
From 2016 to the spring of 2017, Tejeda participated in a scheme to issue Massachusetts identification cards and driver’s licenses to individuals who presented identification documents in identities other than their own. These identification documents included Puerto Rican birth certificates and U.S. Social Security cards that were either counterfeit, genuine but fraudulently obtained, or genuine but altered.
The scheme involved several steps. First, Tejeda would obtain identification documents belonging to United States citizens in Puerto Rico and sell them to clients who were seeking legitimate identities in Massachusetts. These clients included illegal aliens, individuals who were previously deported, and an individual who admitted to previously facing drug charges. Tejeda received hundreds of dollars when he sold an identity document as part of this scheme.
RMV clerks participating in this scheme would then accept hundreds of dollars in cash to illegally issue authentic RMV documents, including Massachusetts licenses and ID cards. The clerks also accepted bribes to use the RMV’s system to run queries, including Social Security number audits, to confirm that the identities the clients were stealing actually belonged to verifiable individuals.
United States Attorney Andrew E. Lelling; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; William B. Gannon, Special Agent in Charge of the Boston Field Office of the U.S. Department of State’s Diplomatic Security Service; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
Brockton Man Pleads Guilty to Illegal Firearm PossessionRead the Press Release
BOSTON – A Brockton man with two prior federal firearm convictions pleaded guilty yesterday in federal court in Boston to a federal firearms charge.
Darnell Upshaw, 35, pleaded guilty to being a felon in possession of a firearm and ammunition. U.S. District Court Judge Indira Talwani scheduled sentencing for March 22, 2018.
On May 10, 2017, police officers responded to a report of shots fired on Owens Avenue in Brockton. Based on information provided at the scene, law enforcement officers suspected that Upshaw was responsible for the shooting and began surveillance of his house. Subsequently, officers observed a vehicle matching the description of the shooter’s vehicle arrive and park near Upshaw’s house, where two men exited the vehicle. Minutes later, Upshaw was observed leaving his house and driving away in a black SUV.
The officers followed the SUV and when it stopped, Upshaw exited and took off running with his right arm braced tightly against his side. The officers followed Upshaw as he fled, climbed over a fence and entered his girlfriend’s mother’s house. Upshaw was apprehended inside the house and a loaded firearm was found lying on top of a pile of lawn clippings near the fence Upshaw had climbed. Subsequent lab analysis revealed that Upshaw’s shirt bore traces of gunshot primer residue.
The charge of being a felon in possession 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. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Plymouth County District Attorney Timothy Cruz; and Brockton Police Chief John Crowley made the announcement. Assistant U.S. Attorney Kelly Begg Lawrence of Lelling’s Criminal Division is prosecuting the case.
Salvadoran National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON – A Salvadoran national, who was previously charged with illegally reentering the United States after deportation, pleaded guilty and was sentenced yesterday in federal court in Boston.
Oscar Ayala-Herrera, 23, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. Senior District Court Judge Rya W. Zobel sentenced Ayala-Herrera to time served. Ayala-Herrera will be subject to deportation proceedings.
In August 2011, Ayala Herrera was encountered by the federal agents in Hidalgo, Texas, and determined to be illegally present in the United States. Ayala Herrera was released from federal custody on a deferred status. In October 2015, Ayala-Herrera was convicted in Chelsea District Court of assault and battery. Upon completion of his sentence, Ayala Herrera was placed into removal proceedings, and on April 22, 2016, he was deported to El Salvador.
On Sept. 18, 2017, police in Arlington encountered Ayala Herrera and determined that he was illegally present in the United States.
Ayala-Herrera faces a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $250,000, and will be subject to deportation proceedings upon completion of any sentence imposed. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.
Boylston Man Pleads Guilty to Distributing and Possessing Child PornographyRead the Press Release
BOSTON – A Boylston man pleaded guilty today in federal court in Worcester to two child pornography charges.
Randy Alan Chaplis, 33, pleaded guilty to one count of distributing child pornography and one count of possessing child pornography involving a prepubescent minor and a minor who had not attained 12 years of age. U.S. District Court Judge Timothy J. Hillman scheduled sentencing for March 22, 2018. Chaplis was arrested and charged by criminal complaint on March 16, 2017, and has been detained since his arrest.
On Feb. 9, 2017, Chaplis sent two emails to an undercover law enforcement officer that included dozens of images of child pornography, including prepubescent girls engaged in sex acts with adult men. In other email communications with the undercover officer, Chaplis stated that he likes three-to-10 year olds, and that he has “fun” with his girlfriend’s five-year-old daughter when her mother is not home. Chaplis emailed graphic descriptions of the sexual acts he purportedly performed on his girlfriend’s child starting when the child was two-years-old. He asked whether the undercover officer intended to have sexual intercourse with the undercover officer’s infant daughter once she turned three or four.
On March 15, 2017, federal agents executed a search warrant at Chaplis’ residence and seized an external hard drive and a desktop computer that included multiple images of child pornography.
The charging statutes provide for a sentence of no greater than 20 years in prison, a minimum of five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney William F. Abely of Weinreb’s Worcester Branch Office is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by 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/.
United Therapeutics Agrees to Pay $210 Million to Resolve Allegations that it Paid Kickbacks Through a Co-Pay Assistance FoundationRead the Press Release
BOSTON – The U.S. Attorney’s Office announced today that pharmaceutical company United Therapeutics Corporation (UT), a seller of pulmonary arterial hypertension (PAH) drugs, has agreed to pay $210 million to resolve allegations that it violated the False Claims Act by paying kickbacks to Medicare patients through a purportedly independent charitable foundation.
When a Medicare beneficiary obtains a prescription drug covered by Medicare Part B or Part D, the beneficiary may be required to make a partial payment, which may take the form of a co-payment, co-insurance, or deductible (collectively “co-pays”). These co-pay obligations may be substantial for expensive medications. Congress included co-pay requirements in these programs, in part, to encourage market forces to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. The Anti-Kickback Statute prohibits pharmaceutical companies from offering or paying, directly or indirectly, any remuneration – which includes money or any other thing of value – to induce Medicare patients to purchase the companies’ drugs.
UT sells a number of PAH drugs, including Adcirca, Remodulin, Tyvaso, and Orenitram. As part of today’s settlement, the government alleged that UT used a foundation, which claims 501(c)(3) status for tax purposes, as a conduit to pay the co-pay obligations of thousands of Medicare patients taking its PAH drugs. From February 2010 through January 2014, the government alleged, UT routinely obtained data from the foundation detailing how many patients on each UT PAH drug the foundation had assisted and how much the foundation had spent on those patients. The government alleged that UT used this data to decide the amount to donate to the foundation. At the same time, the government alleged, UT had a policy of not permitting Medicare patients to participate in its free drug program (which was open to other financially needy patients) even if those Medicare patients could not afford their co-pays for UT drugs. Instead, in order to generate revenue from Medicare and to induce purchases of its PAH drugs, UT allegedly referred Medicare patients prescribed its PAH drugs to the foundation, which resulted in claims to Medicare to cover the cost of those drugs.
“UT used a third party to do exactly what it knew it could not lawfully do itself,” said Acting United States Attorney William D. Weinreb. “According to the allegations in today’s settlement agreement, UT understood that the third-party foundation used UT’s money to cover the co-pays of patients taking UT drugs. UT’s payments to the foundation were not charity for PAH patients generally, but rather were a way to funnel money to patients taking UT drugs. The Anti-Kickback Statute exists to protect Medicare, and the taxpayers who fund it, from schemes like these that leave Medicare holding the bag for the costs of expensive drugs.”
“While we support efforts to provide patients with access to needed medications, such assistance must comply with federal law. Today’s settlement shows that the government will hold accountable drug companies that attempt to use illegal kickbacks to defeat mechanisms Congress designed to act as a check on drug pricing and healthcare costs,” said Principal Deputy Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division.
UT also has entered into a corporate integrity agreement (CIA) with the Department of Health and Human Services Office of Inspector General (HHS-OIG). The five-year CIA requires, among other things, that UT implement measures designed to ensure that arrangements and interactions with third-party patient assistance programs are compliant with the law. In addition, the CIA requires reviews by an independent review organization, compliance-related certifications from company executives and Board members, and the implementation of a risk assessment and mitigation process.
“Our corporate integrity agreement requires United Therapeutics to implement controls and monitoring designed to promote true independence from any patient assistance programs to which it donates,” said Gregory E. Demske, Chief Counsel to the Inspector General for the United States Department of Health and Human Services. “Without true independence, a drug company can use a foundation as a conduit for improper payments that expose the taxpayer-funded Medicare program to the risk of abuse.”
Acting U.S. Attorney Weinreb, Acting Assistant Attorney General Readler, and HHS- OIG Chief Counsel Demske made the announcement today. This matter was investigated by HHS-OIG, the Federal Bureau of Investigation, the United States Postal Inspection Service, and the United States Department of Veterans Affairs Office of Inspector General, and was handled by Assistant U.S. Attorneys Gregg Shapiro, Abraham George, and Deana El-Mallawany of Weinreb’s Office, and by Trial Attorneys Augustine Ripa and Sarah Arni of the Justice Department’s Civil Division.
Two Brothers Sentenced for Attempted Extortion and Embezzlement of Suboxone ClinicRead the Press Release
BOSTON – Two Taunton brothers were sentenced yesterday in connection with attempting to extort and threaten violence against the co-owner of a suboxone clinic in Quincy as well as embezzling money from the clinic.
David Tkhilaishvili, 36, and Jambulat Tkhilaishvili, 46, were sentenced by U.S. District Court Senior Judge Douglas P. Woodlock to three years and 18 months in prison, respectively. Both were sentenced to three years of supervised release. David Tkhilaishvili was also ordered to pay restitution of $3,500. In May 2017, following a five-day trial, a federal jury convicted the brothers of one count of conspiring to extort and one count of attempted extortion. David Tkhilaishvili was also convicted of two counts of embezzlement.
In 2014, the brothers approached the co-owner of a Quincy suboxone clinic and asked him to invest in a new suboxone clinic. The defendants claimed to have many years of experience in running medical clinics, including suboxone clinics. To convince the victim to invest, the defendants promised to repay the victim 50% of his investment in the clinic within five years if the business failed, with 5% interest per year in the event that the victim did not recover his investment in the clinic.
In December 2014, the victim agreed to invest in the clinic and, because of the size of his investment, insisted upon significant contractual protections, including that he would have full decision making authority over matters involving the clinic. The defendants agreed; however, shortly thereafter, the defendants began to demand that the victim surrender his ownership interest and, on multiple occasions, threatened him and his family with physical injury. One of the defendants told the victim that he had made nine people and their families, who had a problem with him in the past, disappear. Both defendants claimed to live the life of outlaws who associated with thieves. In addition, both of the defendants threatened physical harm to the victim and his family and to burn down the clinic if the victim did not comply with their demands. Furthermore, David Tkhilaishvili embezzled approximately $3,500 from the clinic.
Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement. Assistant U.S. Attorney Laura J. Kaplan of Weinreb’s Organized Crime and Gang Unit prosecuted the case.
Rhode Island Man Sentenced for Conspiring to Commit Acts of Terrorism to Support ISISRead the Press Release
BOSTON – Nicholas Rovinski was sentenced today in federal court in Boston for providing material support to the Islamic State of Iraq and Syria (ISIS).
Nicholas Alexander Rovinski, a/k/a Nuh Amriki, a/k/a Nuh Andalusi, 27, of Warwick, R.I., was sentenced by U.S. District Court Judge William G. Young to 15 years in prison and a lifetime of supervised release. In September 2016, Rovinski pleaded guilty to conspiring with David Daoud Wright, 28, and Usaamah Abdullah Rahim (now deceased) to provide material support to the Islamic State of Iraq and Syria (ISIS) - a designated foreign terrorist organization - and conspiracy to commit acts of terrorism transcending national boundaries.
Wright was sentenced yesterday to 28 years in prison after being convicted by a federal jury of conspiracy to provide material support to ISIS, conspiracy to commit acts of terrorism transcending national boundaries, conspiracy to obstruct justice and obstruction of justice.
In December 2014, Rovinski began talking with Wright about their mutual desire to support ISIS and how they could provide assistance to that terrorist organization. By April 2015, Rovinski, Wright, and Rahim had agreed to commit attacks and kill people inside the United States – acts which they believed would support ISIS’s objectives. Their attack plans included the beheading of a New York woman whom ISIS had identified to its supporters for murder through a “fatwah” or religious decree. In May 2015, Junaid Hussain, an ISIS recruiter in Syria, had directly communicated instructions to Rahim regarding the murder of the intended New York victim, in which the three men each agreed to play a critical role.
During the early morning hours of June 2, 2015, Rahim sought Wright’s guidance and advice, as Rahim could not wait until July 4, 2015, as originally planned, to go after their target, and instead wanted to go operational that day. Rahim mentioned the possibility of going after an “easier” target -- the “boys in blue” in Massachusetts. In response, Wright instructed and directed Rahim to “pursue martyrdom” and attack the police officers. Less than two hours after this call, Rahim was shot and killed after he lunged towards law enforcement officers with a large fighting knife.
On June 11, 2015, Rovinski was arrested for conspiring to provide material support to ISIS, but his arrest did not deter his commitment to ISIS. Even after being arrested, Rovinski sought to continue the attacks he had planned with Wright and Rahim, writing letters to Wright from prison discussing ways to take down the United States government and decapitate non-believers.
Pursuant to a cooperation agreement with the government, Rovinski testified against his co-defendant Wright at his trial. In addition, as the government told the court, Rovinski was a follower in this ISIS attack plan, while Wright was the mastermind.
Acting United States Attorney William D. Weinreb; Dana J. Boente, Acting Assistant Attorney General for the Justice Department’s National Security Division; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. This investigation was conducted by the Boston Joint Terrorism Task Force and the Rhode Island Joint Terrorism Task Force with assistance from the Boston Police Department, Boston Regional Intelligence Center, Massachusetts State Police, Commonwealth Fusion Center, Everett Police Department, Homeland Security Investigations, Rhode Island State Police, Warwick (R.I.) Police Department, Rhode Island Fusion Center, and the Naval Criminal Investigative Service. This case was prosecuted by Assistant U.S. Attorney B. Stephanie Siegmann of Weinreb’s National Security Unit and Trial Attorney Gregory R. Gonzalez of the National Security Division’s Counterterrorism Section.
Randolph Man Charged with Fentanyl-Related CrimesRead the Press Release
BOSTON – A Randolph man was indicted today in federal court in Boston on charges relating to the distribution of fentanyl on Cape Cod.
Jorge Barros a/k/a “Joey,” 24, was charged with conspiracy to distribute 40 grams or more of fentanyl and possession of fentanyl with the intent to distribute.
According to court documents, in September 2017, investigators identified Barros as a fentanyl distributor on Cape Cod. A cooperating defendant then made a series of recorded calls to Barros arranging for a fentanyl delivery. On Nov. 13, 2017, Barros attempted to deliver approximately 40 grams of fentanyl to the cooperator; however, before Barros could do so, he was arrested in Harwich, at which time law enforcement seized approximately 38 grams of fentanyl from him.
The charges provide for a mandatory minimum sentence of five years and no greater than 40 years in prison, a minimum of four years and up to a lifetime of supervised release, and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Cape and Islands District Attorney Michael O’Keefe made the announcement today. The investigation was led by the DEA Cape Cod Resident Office and the Massachusetts State Police - Cape & Islands District Attorney’s Office in conjunction with the Brewster, Harwich, Sandwich, Mashpee, Chatham, Yarmouth, and Barnstable Police Departments and the Barnstable County Sheriff’s Department. Assistant U.S. Attorney Eric Rosen of Weinreb’s Criminal Division 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.
Lawrence Woman Sentenced for Role in Heroin and Fentanyl RingRead the Press Release
BOSTON – A Lawrence woman was sentenced yesterday in federal court in Boston for her role in a heroin and fentanyl trafficking ring operating in southeastern Massachusetts.
Miguelina Mejia Ruiz, a/k/a Doris, 43, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to two years in prison and three years of supervised release. In June 2017, Mejia Ruiz pleaded guilty to conspiracy to possess with intent to distribute and to distribute heroin and fentanyl.
Mejia Ruiz was the wife of Eric Matos, who was charged with supplying heroin and fentanyl to a drug trafficking organization led by Dedwin Cruz-Rivera. The investigation revealed that Cruz-Rivera obtained large quantities of heroin and fentanyl from drug suppliers, including co-defendant Matos, which he then resold in the Fall River, New Bedford and Providence, R.I., communities. Mejia Ruiz delivered drugs and collected money on behalf of Matos. Mejia Ruiz was caught delivering almost 300 grams of fentanyl and 200 grams of heroin in separate incidents.
The investigation culminated with the arrests and charges of Mejia Ruiz and 24 others in connection with Cruz-Rivera’s heroin and fentanyl trafficking operation; an April 2016 superseding indictment brought the number of defendants charged in the case to 26.
On July 27, 2017, Mejia Ruiz’s husband, Matos, from whom she is separated, was sentenced to 121 months in prison. Cruz-Rivera pleaded guilty and is scheduled to be sentenced on Jan. 16, 2018.
Acting United States Attorney William D. Weinreb and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement. Assistant U.S. Attorney Thomas E. Kanwit, formerly of Weinreb’s Narcotics and Money Laundering Unit, prosecuted the case, along with Assistant U.S. Attorneys Karen Beausey, Katherine Ferguson and Ann Taylor.
Harwich Man Pleads Guilty to Fentanyl ConspiracyRead the Press Release
BOSTON – A Harwich man pleaded guilty today in federal court in Boston to fentanyl conspiracy.
Dean Viprino, 45, pleaded guilty to one count of conspiracy to possess with intent to distribute 40 grams or more of fentanyl. U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for March 20, 2018.
Viprino was a customer of Alex Fraga, one of four people arrested as part of a drug ring that shipped large quantities of fentanyl, cocaine and heroin from Boston to Cape Cod, where it was then redistributed. In mid-August 2017, Alex Fraga and his brother Kevin Fraga were arrested by federal investigators after large quantities of fentanyl, heroin and cocaine were seized from them. Wiretap interceptions and surveillance indicated that Viprino had been purchasing fentanyl from Alex Fraga for personal use and distribution.
The charge provides for a mandatory minimum sentence of five years and up to 40 years in prison, a minimum of four years and up to a lifetime of supervised release, and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. Assistant U.S. Attorney Eric Rosen of Weinreb’s Criminal Division is prosecuting the case.
Fitchburg Woman Pleads Guilty to Role in Counterfeit Steroid ConspiracyRead the Press Release
BOSTON – A Fitchburg woman pleaded guilty today in federal court in Boston to trafficking steroids.
Elizabeth Green, 29, pleaded guilty to one count of conspiracy to distribute controlled substances before U.S. District Court Judge Allison D. Burroughs, who scheduled sentencing for March 15, 2018. Green and six others were charged in April 2017 for their roles in the conspiracy.
According to court documents, from approximately November 2015 until April 12, 2017, the conspirators manufactured steroid products made from raw materials that they purchased overseas and marketed as “Onyx” steroids using “Onyx” labels that were also ordered from overseas suppliers. Onyx, now owned by Amgen Inc., is a legitimate pharmaceutical company that does not manufacture steroids.
The defendants allegedly sold the steroids to customers across the United States using email and social media platforms, collected payment through money remitters, such as Western Union and MoneyGram, and used false identifications and multiple remitter locations to pick up the proceeds. Some of the defendants laundered proceeds from the steroid sales through Wicked Tan LLC, a tanning business in Beverly, which they owned and operated specifically to launder the proceeds of the steroid operation.
Green’s role in the conspiracy was to collect customer payments from money remitters using false identifications and provide those proceeds to another member of the organization. Green retrieved more than $220,000 in customer payments for steroid purchases.
The charge of conspiracy to distribute controlled substances provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of up to $250,000 or twice the gross gain or loss of the conspiracy. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Jeffrey Ebersole, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office, made the announcement. Assistant U.S. Attorneys Amy Harman Burkart and David J. D’Addio of Weinreb’s Cybercrime Unit are prosecuting the case.
Drug Maker United Therapeutics Agrees to Pay $210 Million to Resolve False Claims Act Liability for Paying KickbacksRead the Press Release
Pharmaceutical company United Therapeutics Corporation (UT), based in Silver Spring, Maryland, has agreed to pay $210 million to resolve claims that it used a foundation as a conduit to pay the copays of Medicare patients taking UT’s pulmonary arterial hypertension drugs, in violation of the False Claims Act, the Justice Department announced today.
When a Medicare beneficiary obtains a prescription drug covered by Medicare Part B or Part D, the beneficiary may be required to make a partial payment, which may take the form of a copayment, coinsurance, or deductible (collectively “copays”). These copay obligations may be substantial for expensive medications. Congress included copay requirements in these programs, in part, to encourage market forces to serve as a check on health care costs—including the prices that pharmaceutical manufacturers can demand for their drugs. Under the Anti-Kickback Statute, a pharmaceutical company is prohibited from offering or paying, directly or indirectly, any remuneration—which includes money or any other thing of value— to induce Medicare patients to purchase the company’s product.
UT sells a number of pulmonary arterial hypertension drugs, including Adcirca, Remodulin, Tyvaso, and Orenitram (the “Subject Dugs”). The government alleged that UT used a foundation, which claims 501(c)(3) status for tax purposes, as a conduit to pay the copay obligations of thousands of Medicare patients taking the Subject Drugs. In particular, from 2010 to 2014, UT allegedly made donations to the foundation, which, in turn, used those donations to pay copays for the Subject Drugs to induce patients to purchase these drugs. The government alleged that UT routinely obtained data from the foundation detailing how much the foundation had spent for patients on each Subject Drug and that this data was used by UT to decide how much to donate to the foundation. The Government also alleged that UT had a policy of not permitting needy Medicare patients to participate in its free drug program, which was open to other financially needy patients, and instead referred Medicare patients to the foundation, which allowed claims to be submitted to Medicare.
“While we support efforts to provide patients with access to needed medications, such assistance must comply with federal law. Today’s settlement shows that the government will hold accountable drug companies that attempt to use illegal kickbacks to defeat mechanisms Congress designed to act as a check on drug pricing and healthcare costs,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division.
UT has also entered into a corporate integrity agreement (CIA) with the Department of Health and Human Services Office of Inspector General (HHS-OIG). The five-year CIA requires, among other things, that UT implement measures designed to ensure that arrangements and interactions with third-party patient assistance programs are compliant with the law. In addition, the CIA requires reviews by an independent review organization, compliance-related certifications from company executives and Board members, and the implementation of a risk assessment and mitigation process.
“Our corporate integrity agreement requires United Therapeutics to implement controls and monitoring designed to promote true independence from any patient assistance programs to which it donates,” said Gregory E. Demske, Chief Counsel to the Inspector General for the U.S. Department of Health and Human Services. “Without true independence, a drug company can use a foundation as a conduit for improper payments that expose the taxpayer-funded Medicare program to the risk of abuse.”
“UT used a third party to do exactly what it knew it could not lawfully do itself,” said Acting United States Attorney William D. Weinreb. “According to the allegations in today’s settlement agreement, UT understood that the third-party foundation used UT’s money to cover the co-pays of patients taking UT drugs. UT’s payments to the foundation were not charity for PAH patients generally, but rather were a way to funnel money to patients taking UT drugs. The Anti-Kickback Statute exists to protect Medicare, and the taxpayers who fund it, from schemes like these that leave Medicare holding the bag for the costs of expensive drugs.”
The government’s resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The investigation was conducted by the Justice Department’s Civil Division and the U.S. Attorney’s Office for the District of Massachusetts, in conjunction with the Department of Health and Human Services, Office of Inspector General; the Federal Bureau of Investigation: the Department of Veterans Affairs, Office of Inspector General; and the United States Postal Inspection Service.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Dominican National Arrested and Charged with Fentanyl Conspiracy Including the Distribution of Counterfeit Pain PillsRead the Press Release
BOSTON – A Dominican national was arrested and charged today in federal court in Boston with crimes relating to his role in a wide-ranging narcotics trafficking operation that included distributing counterfeit prescription pain pills containing fentanyl throughout Boston and Cape Cod.
Santiago Pena, 49, a Dominican national residing in Roxbury, was charged by indictment with conspiracy to distribute 40 grams or more of fentanyl. The charge stems from Pena’s participation in a large-scale fentanyl and heroin trafficking ring that was dismantled in August 2017. Pena is the seventh defendant related to the drug trafficking operation to be charged in federal court; approximately 10 other defendants have been charged in state court.
According to court documents, a lengthy wiretap investigation revealed that James Ramirez, an individual charged separately, supplied large-quantities of fentanyl and heroin to Kevin and Alex Fraga, drug dealers on Cape Cod. Ramirez also sold fentanyl pills designed to look like legitimate prescription oxycodone pills. Wiretap intercepts revealed that Ramirez was distributing fentanyl pills in batches of 100 to numerous other drug dealers, and over 2,500 fentanyl pills were recovered as a result of Ramirez’s arrest in late August.
According to the indictment, Pena brokered fentanyl pill deals on Ramirez’s behalf, helping to connect Ramirez with a fentanyl pill supplier. On multiple occasions, Ramirez traded used cars for a combination of cash and fentanyl pills in deals that Pena helped arrange.
Alex Fraga, Kevin Fraga, and Ramirez each pleaded guilty in November. Their sentencings are scheduled for Feb. 8, 2018, Jan 24, 2018, and March 8, 2018, respectively
Pena faces a mandatory minimum sentence of five years and up to 40 years in prison, a minimum of four years and up to a lifetime of supervised release, and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Cape and Islands District Attorney Michael O’Keefe made the announcement today. The investigation was led by the DEA Cape Cod Resident Office and the Massachusetts State Police - Cape & Islands District Attorney’s Office in conjunction with the Brewster, Harwich, Sandwich, Mashpee, Chatham, Yarmouth, and Barnstable Police Departments and the Barnstable County Sheriff’s Department. Assistant U.S. Attorney Eric Rosen of Weinreb’s Criminal Division is prosecuting the case.
Citizen of the Dominican Republic Sentenced to 11 Years in Prison for Stolen Identity Refund FraudRead the Press Release
A Dominican citizen who resided in Lawrence, Massachusetts, was sentenced to 11 years in prison today after pleading guilty mid-trial to conspiring to defraud the Internal Revenue Service (IRS), access device fraud, theft of government property, aggravated identity theft and money laundering, announced Principal Deputy Assistant Attorney General Richard Zuckerman of the Justice Department’s Tax Division and U.S. Attorney William D. Weinreb for the District of Massachusetts.
According to evidence presented at trial, from 2008 through 2015, Furvio Flete-Garcia, 45, obtained the personal identification information of Puerto Rico residents and, without their knowledge or consent, paid others to prepare and file tax returns with the IRS in their names. These returns listed fake income and tax withholdings and sought fraudulent refunds. Flete-Garcia would pick up the tax refund checks from addresses he controlled and cashed them with co-conspirators for a percentage of their face value. In total, he negotiated over $7 million in fraudulent refund checks at two different check cashing businesses in Lawrence. An additional $5 million of refunds were claimed on fraudulent income tax returns presented to the IRS from 2011 to 2015 using the identities of Puerto Rican residents whose identities were on lists obtained from Flete-Garcia and presented at trial.
In addition to the term of prison imposed, United States District Court Judge Leo T. Sorokin ordered Flete-Garcia to pay $7,737,486 in restitution to the IRS. Flete-Garcia was previously sentenced in April 2016 to 28 months in prison for illegal re-entry into the United States, misuse of a social security number and aggravated identity theft.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Weinreb commended special agents of IRS Criminal Investigation, who conducted the investigation, and Senior Litigation Counsel Corey Smith and Trial Attorney Sean Green of the Tax Division, who prosecuted the case. Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Weinreb also thanked the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Secret Service, the Social Security Administration Office of Inspector General, the U.S. Postal Inspection Service and the U.S. Attorney’s Office for the District of Massachusetts for assisting in the investigation and prosecution.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
New Bedford Seafood Wholesaler Pleads Guilty to Tax EvasionRead the Press Release
BOSTON – A former New Bedford seafood wholesaler pleaded guilty yesterday in federal court in Boston to failing to file tax returns and filing a false tax return for his business’ income.
George F. Estudante, 57, formerly of Marion, Mass., pleaded guilty to two counts of failing to file tax returns and one count of filing a false income tax return. U.S. District Court Judge William G. Young scheduled sentencing for March 13, 2018.
Estudante failed to file an income tax return for 2010, even though his business, Basic Fisheries, received approximately $1,418,629 in payments. He also failed to file a tax return for 2011, although his business received approximately $1,607,726 in payments that year. Furthermore, Estudante falsely swore on his 2012 tax return that he had received approximately $533,078 in gross receipts when his bank account reflected that he had received over $740,000.
The charge of failing to file an income tax return provides for a sentence of no greater than one year in prison, one year of supervised release and a fine of $25,000. The charge of filing a false income tax return provides for a sentence of no greater than three years in prison, one year of supervised release and a fine of $100,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States William D. Weinreb and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. Assistant U.S. Attorney Stephen P. Heymann of Weinreb’s Economic Crimes Unit is prosecuting the case.
Massachusetts Man Sentenced for Supporting ISIS and Conspiring to Murder U.S. CitizensRead the Press Release
Boston – An Everett man was sentenced today to 28 years in prison for conspiring with others to provide material support to the Islamic State of Iraq and al-Sham (ISIS) and kill persons in the United States.
David Daoud Wright, a/k/a Dawud Sharif Abdul Khaliq, a/k/a Dawud Sharif Abdul Khaliq, 28, of Everett, Mass., was sentenced by U.S. District Court Judge William G. Young to 28 years in prison and a lifetime of supervised release. In October 2017, Wright was convicted by a federal jury of conspiracy to provide material support to ISIS, conspiracy to commit acts of terrorism transcending national boundaries, conspiracy to obstruct justice, and obstruction of justice.
“Mr. Wright plotted to kill innocent Americans on behalf of ISIS,” said Acting United States Attorney William D. Weinreb. “Despite the fact that he was born in Massachusetts, Mr. Wright turned against his country and joined a radical terrorist organization. He became a soldier of ISIS and recruited U.S citizens to commit attacks within the United States aimed at killing civilians and police officers. Today’s sentence affirms our commitment to protecting the public and prosecuting those who pledge alliance to our enemies.”
“David Wright conspired with others to commit violent attacks here in the United States at the direction of ISIS,” said Acting Attorney General Boente. “This successful prosecution demonstrates that the Department of Justice will not waver in its commitment to bring justice to those who provide support and encourage violence on behalf of ruthless terrorist organizations.”
“Today's sentencing of David Wright finally holds him accountable for betraying his country, obstructing justice, and conspiring to support a brutally violent terrorist organization,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “The spread of the ISIS ideology and it’s savagery against innocents around the world, was found right here at home, by an extremely unpredictable and dangerous person who radicalized to support an imprudent call to jihad. Through the dogged efforts of the FBI and our partners within the Massachusetts and Rhode Island Joint Terrorism Task Forces, who tirelessly work day-in and day-out to identify and thwart those who pose a serious threat, we clearly showed Mr. Wright was a soldier of ISIS, and a very real threat to national security and public safety. This case truly highlights the importance of law enforcement collaboration here and around the world, and I'm grateful for the dedication of those committed to keeping the Commonwealth safe.”
Beginning in at least February 2015, Wright began discussing ISIS’ call to kill non-believers in the United States with his uncle, Usaamah Abdullah Rahim, and co-defendant Nicholas Alexander Rovinski. Specifically, Wright created a “martyrdom” operation cell in Massachusetts. In April 2015, he created a Twitter page for the “Lions of America” and published a document entitled, Internal Conquest, on the internet in which Wright called on the “Lions of Allah” to kill Americans. Wright also plotted with Rahim and Rovinski to behead U.S. citizens at the direction of ISIS, and identified a New York woman as the first beheading target. Rahim purchased three knives for this plot. In addition, Wright knew Rahim was communicating with an ISIS member in Syria, Junaid Hussain, who provided Rahim with an encrypted document containing details about the intended victim. In August 2015, Hussain was killed in an airstrike in Raqqah, Syria.
In preparation for their attack, Wright conducted extensive research on weapons, knives, machetes, bombing making components, and methods to subdue their victims. Wright also conducted research on “how to start a secret militia in the United States.”
On June 2, 2015, Rahim was shot and killed after he attacked law enforcement officers in a Roslindale, Mass., parking lot. Two hours before Rahim attacked the police, Wright had encouraged and motivated Rahim to pursue martyrdom by attacking the “boys in blue.” Within minutes of learning of his uncle’s death from a family member, Wright deleted data from his laptop computer by restoring it to factory settings and deleted call logs on his cellphone that showed that he had spoken to Rahim that morning.
In September 2016, Rovinski pleaded guilty to conspiring to provide material support to ISIS and conspiring to commit acts of terrorism transcending national boundaries, and will be sentenced tomorrow.
Acting U.S. Attorney Weinreb, Acting AAG Boente and FBI SAC Shaw made the announcement today. This investigation was conducted by the Boston Joint Terrorism Task Force (JTTF); Boston Police Department; Massachusetts State Police; Everett Police Department; and Customs and Border Protection. The Suffolk District Attorney’s Office; Rhode Island State Police; Warwick, R.I. Police Department; and police in the United Kingdom also provided valuable assistance. The case was prosecuted by Assistant U.S. Attorney B. Stephanie Siegmann of the District of Massachusetts’s National Security Unit and Trial Attorney Gregory R. Gonzalez of the National Security Division’s Counterterrorism Section.
Former Owner of Boston Forensic Accounting Firm Sentenced for Tax EvasionRead the Press Release
BOSTON – The former owner of a Boston forensic accounting firm was sentenced yesterday in federal court in Boston for understating his income by hundreds of thousands of dollars on his personal income tax returns.
James Carey, 50, was sentenced by U.S. District Court Judge Allison D. Burroughs to 18 months in prison, one year of supervised release and ordered to pay restitution of $355,535. In September 2017, Carey pleaded guilty to two counts of making material misstatements on his 2009 and 2010 personal income tax returns.
Carey, a certified public accountant, owned Carey & Company, a forensic accounting firm in Boston. Carey & Company administered bank accounts on behalf of insurance companies into which the insurance companies and their clients could make deposits, and from which payments could be made on behalf of and to the insurance companies. In November 2009, a customer of one of the insurance companies sent Carey & Company a payment of $594,217 intended for the insurance company, but during the months that followed, Carey transferred almost all of that money out of the account and used it for his own purposes. The money Carey misappropriated from the insurance company was taxable income, which Carey failed to report on his personal income tax return. In addition, in 2010, Carey reported less than one-third of his business’s actual income on his personal income tax return.
Acting United States Attorney William D. Weinreb and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorneys Stephen Heymann and Sara Bloom of Weinreb’s Economic Crimes Unit prosecuted the case.
Dominican National Charged with Fentanyl Distribution and Social Security FraudRead the Press Release
BOSTON – A Dominican national was arrested yesterday and charged with fentanyl distribution and Social Security fraud.
Domingo Garcia Suero, 53, a Dominican national residing in Haverhill, was charged in a criminal complaint unsealed today with one count of possession with intent to distribute and distribution of a controlled substance, specifically fentanyl, and one count of Social Security fraud. Garcia Suero will appear today before U.S. District Court Magistrate Judge Donald L. Cabell.
The criminal complaint alleges that in the fall of 2017, Garcia Suero sold fentanyl on four occasions. Garcia Suero also allegedly filed an application with the Registry of Motor Vehicles to renew his driver’s license in which he provided a name and a social security account number belonging to an individual in Puerto Rico.
The charge of possession with intent to distribute and distribution of a controlled substance provides for a sentence of no greater than 30 years in prison, at least six years of supervised release and a fine of $2 million. The charge of Social Security fraud provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Garica Suero will also face deportation proceedings upon completion of any sentence imposed. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations; and Scott Antolik, Special Agent in Charge of the U.S. Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Office made the announcement today. The case was also investigated by the DEA Cross Borders Initiative Task Force 4; U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; Homeland Security Investigations in Boston; and the Boston Field Office of the U.S. Department of State's Diplomatic Security Service. Valuable assistance was also provided by the Haverhill Police Department, Lowell Housing Authority Police, Lowell Police Department, Massachusetts State Police, and the State Auditor of the Commonwealth of Massachusetts. Assistant U.S. Attorney Maxim Grinberg of Weinreb’s Criminal Division is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Boston Man Pleads Guilty to Two Bank RobberiesRead the Press Release
BOSTON – A Boston man pleaded guilty today in federal court in Boston to robbing a branch of the RTN Federal Credit Union in Brookline and a branch of the Mansfield Bank in West Bridgewater in November 2016.
Stephen D. Williams, 55, pleaded guilty to two counts of bank robbery. U.S. Senior District Court Judge Mark. L. Wolf scheduled sentencing for March 13, 2018.
On Nov. 15, 2016, two individuals, one later identified as Stephen Williams, and the other later identified as Joseph Morris, entered a branch of the RTN Federal Credit Union in Brookline. Williams approached a teller and demanded cash. The teller handed Williams cash from her drawer and the two exited the bank and fled the area in a dark colored Volkswagen.
On Nov. 22, 2016, an individual, later identified as Williams, entered a branch of the Mansfield Bank in West Bridgewater. Brandishing a black semi-automatic firearm, Williams approached a teller and demanded money. The teller handed Williams cash, and Williams fled the area again in a dark-colored Volkswagen. Bank surveillance cameras recorded images of Williams during the robbery.
On Nov. 23, 2016, law enforcement officers familiar with both Williams and Morris and the dark-colored Volkswagen located and arrested the two men at an apartment complex in Brockton. Morris was charged in state court, and Williams was charged in federal court.
Williams faces a sentence of no greater than 25 years in prison, five years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; U.S. Marshal John Gibbons of the District of Massachusetts; Norfolk County District Attorney Michael Morrissey; West Bridgewater Police Chief Victor R. Flaherty Jr.; Brookline Police Chief Daniel C. O’Leary; and Brockton Police Chief John Crowley made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.
Boston Man Pleads Guilty to Failure to Register as a Sex OffenderRead the Press Release
BOSTON – A Boston man pleaded guilty today in federal court in Boston to failing to register as a sex offender.
Rodney Anderson, 46, pleaded guilty to one count of failure to register as a sex offender. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for April 19, 2018.
Anderson is required to register as a sex offender in Massachusetts based on a North Carolina state court conviction for second degree rape in 1986. According to court documents, shortly following his release from custody in 2014 for his 1986 conviction, Anderson left North Carolina for Massachusetts. When he arrived, he failed to report to authorities, but was tracked to a residence in Boston.
The charge provides for a sentence of no greater than 10 years in prison, a minimum of five years and up to a lifetime of supervised release, and up to a $250,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; U.S. Marshal John Gibbons of the District of Massachusetts; and Boston Police Commissioner William B. Evans made the announcement. Assistant U.S. Attorney Anne Paruti, Weinreb’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by 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/.
U.S. Attorney’s Office Settles Disability Discrimination Allegations at Young Shakespeare Players EastRead the Press Release
BOSTON – The U. S. Attorney’s Office reached a settlement agreement today with Young Shakespeare Players East (YSPE) resolving allegations that the theater company violated Title III of the Americans with Disabilities Act (ADA) by failing to provide reasonable modifications to a child enrolled in the program and retaliating against another child for her advocacy.
“Children with disabilities should be able to pursue their interests and participate in a full range of programs and activities,” said Acting United States Attorney William D. Weinreb. “Whenever necessary, reasonable modifications under the ADA must be provided to ensure that all children can take advantage of educational opportunities. Enforcement of the ADA is an important priority of this office, and we applaud children and young adults who advocate for disability rights.”
YSPE is a private, non-profit, theater company for children ages 7-18 that performs full-length works of Shakespeare. The U.S. Attorney’s Office determined that YSPE discriminated against a child with a disability as a result of a peanut allergy, by failing to make reasonable modifications to its policies, practices or procedures to permit the child to safely participate in the theater company’s programs. When a second child advocated on behalf of the child with a disability, that child was excluded from participating at YSPE.
Under the terms of the settlement agreement, YSPE will implement a disability non-discrimination policy; implement a process by which reasonable modifications will be considered and provided to participants with disabilities; and conduct appropriate training.
This matter was handled by Special Assistant U.S. Attorney Gregory Dorchak and Assistant U.S. Attorney Stephen Heymann of Weinreb’s Civil Rights Unit.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
MS-13 Member Admits Responsibility for Murder of 15-Year Old BoyRead the Press Release
BOSTON – An MS-13 member pleaded guilty on Thursday, Dec. 14, 2017, in federal court in Boston to racketeering conspiracy involving the murder of a 15-year-old boy in East Boston.
Joel Martinez, a/k/a “Animal,” 23, a Salvadoran national formerly residing in East Boston, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for March 22, 2018.
Martinez was identified as a member of MS-13’s Eastside Loco Salvatrucha (ESLS) clique, which operated in Chelsea, Everett, and elsewhere in greater Boston. Martinez admitted that on Sept. 20, 2015, he murdered a 15-year-old boy on Trenton Street in East Boston.
In recorded conversations between Martinez and a cooperating witness, Martinez acknowledged being a member of MS-13 and admitted that he stabbed the victim to death. Specifically, Martinez said, “I stabbed the asshole three times, and it was a beautiful thing! Just beautiful!” As a result of the murder, Martinez was “jumped in” and made a “homeboy,” or full member of MS-13, during a ceremony that was surreptitiously recorded by federal agents. When a prospective member is “jumped in,” members of the MS-13 clique beat the new member with their hands and feet while one of the leaders of the clique counts aloud slowly to thirteen.
After a three-year investigation, Martinez was one of 61 individuals named in a superseding indictment targeting the criminal activities of alleged leaders, members, and associates of MS-13 in Massachusetts. Martinez is the 27th defendant to plead guilty in this case.
Martinez faces up to life in prison, five years of supervised release, and will be subject to deportation upon the completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael Shea, Acting 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 Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief James Guido; Somerville Police Chief David Fallon; and Herndon (VA) Police Chief Maggie A. DeBoard made the announcement.
Associate of La Cosa Nostra Found Guilty of Extortion-Related ChargesRead the Press Release
An associate of the Genovese La Cosa Nostra (LCN) crime family was found guilty today in federal court in Springfield, Massachusetts of extortion-related charges.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney William D. Weinreb for the District of Massachusetts, Special Agent in Charge Harold H. Shaw of the FBI Boston Field Office, Hampden County District Attorney Anthony Gulluni and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement today.
Richard Valentini, 53, of East Longmeadow, Massachusetts was found guilty today by a jury following a one-week trial of one count of conspiracy to interfere with commerce by threats or violence and one count of interference with commerce by threats or violence.
U.S. District Court Judge Timothy S. Hillman scheduled Valentini’s sentencing on March 12, 2018.
According to the evidence presented at trial, Valentini and co-defendants, Francisco “Frank” Depergola, Ralph Santaniello, and Giovani “Johnny Cal” Calabrese, were associates of the New York-based Genovese LCN crime family and engaged in various criminal activities in Springfield, Massachusetts, including extortion from legitimate businesses. The prosecutors established that Valentini and his co-defendants used violence, exploited their relationship with the Genovese LCN crime family, and implied threats of murder and physical violence to instill fear in their victims.
The evidence established that in 2013, Valentini, Depergola, Santaniello and Calabrese attempted to extort money from a Springfield businessman. Santaniello and Calabrese assaulted the businessman and threatened to cut off his head and bury his body if he did not comply. Prosecutors established that over a period of seven weeks, the businessman paid $20,000 to Valentini, Santaniello, Calabrese, and Depergola to protect himself and his business.
Each charge provides for a sentence of no greater than 20 years in prison, five years of supervised release, a fine of $250,000, and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Santaniello, Calabrese and Deperola previously pleaded guilty; their sentencings are scheduled for Jan. 29, 2018, Jan. 30, 2018, and March 9, 2018, respectively.
The case was investigated by the FBI Boston Field Office and the Massachusetts State Police. Trial Attorney Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section; Assistant U.S. Attorney Kevin O’Regan, Chief of Weinreb’s Springfield Branch Office; and Assistant U.S. Attorney Katherine Wagner, also of the Springfield Branch Office are prosecuting the case.
Two Men Involved in Federal Fentanyl Sweep Plead GuiltyRead the Press Release
BOSTON - A Dominican national and a Lowell man each pleaded guilty today in federal court in Boston to their roles in a widespread Lawrence-based heroin and fentanyl trafficking conspiracy.
Caonablo Mayobanex Pol Montero, a/k/a Cesar Eliel Echavarria Navarez; a/k/a Ely Manzano; a/k/a Mayo Baney Pol; a/k/a Mayo Pol; a/k/a Eddie Soto; a/k/a Jorge Mercado; a/k/a Israel Cortes; a/k/a Israel Cortez; a/k/a Ismael Guerra Cortez; a/k/a Ismael Cortez; a/k/a Israel P. Cortez; a/k/a Ismael Guerra; a/k/a Jorge L. Santiago; a/k/a Albertoz Vasquez; a/k/a Mayo Baney Montero; a/k/a Mayo Bane Montero; a/k/a Bani, 45, a Dominican national residing in Lawrence; and Shawn Keefe, 27, of Lowell, each pleaded guilty to one count of conspiracy to possess with intent to distribute heroin, cocaine and fentanyl. Pol Montero also pleaded guilty to one count of illegal reentry of a deported alien. U.S. District Court Judge Leo T. Sorokin scheduled their sentencings for March 22, 2018, and Dec. 17, 2018, respectively. Keefe has been accepted to the Court’s RISE program, therefore his sentencing is delayed one year while he is enrolled in the program.
On May 30, 2017, after a year-long investigation aimed at attacking the fentanyl and heroin crisis in Lawrence and surrounding areas, more than 200 federal, state and local law enforcement officers executed a federal drug sweep to dismantle a Lawrence-based drug trafficking organization allegedly run by Juan Anibal Patrone. Pol Montero and Keefe were arrested and charged along with Patrone and approximately 30 co-conspirators.
Pol Montero supplied drugs to Patrone as well as to other customers, including Keefe, who redistributed drugs for Pol Montero and sold drugs to support his own habit. When search warrants were executed on May 30, 2017, over 350 grams of heroin, 22 grams of fentanyl, and drug paraphernalia were found at Pol Montero’s home. Pol Montero has previously been deported three times.
The conspiracy charge provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of up to $1 million. The illegal re-entry charge provides for a sentence of no greater than two years in prison, up to three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Michal J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Essex County District Attorney Jonathan W. Blodgett; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Lawrence Police Chief James Fitzpatrick made the announcement today. Assistant U.S. Attorney Susan Winkler of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
This case is the result of a joint investigation conducted by the DEA Cross Border Initiative - comprised of the DEA, the Massachusetts State Police, and the Andover, Haverhill, Lawrence, Lowell, and Wilmington Police Departments - and the ongoing effort of the Organized Crime Drug Enforcement Task Forces (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Senate Confirms United States AttorneyRead the Press Release
BOSTON – Andrew E. Lelling has been confirmed by the U.S. Senate as the United States Attorney for the District of Massachusetts.
“I am honored to be confirmed as the United States Attorney and I look forward to serving the residents of Massachusetts,” said Mr. Lelling. “As a federal prosecutor I have had the privilege of working with some of the best federal and state law enforcement officers in the country. As U.S. Attorney, I will continue to collaborate with these distinguished public servants to fulfill the mission of the Department of Justice.”
Mr. Lelling has worked for the U.S. Department of Justice for 16 years, serving first in the Civil Rights Division at Main Justice and then as an Assistant U.S. Attorney in the Eastern District of Virginia and the District of Massachusetts. In September 2017, President Donald J. Trump nominated Mr. Lelling to serve as U.S. Attorney for the District of Massachusetts; he was confirmed by the U.S. Senate late yesterday.
As an Assistant U.S. Attorney, Mr. Lelling has prosecuted complex frauds, international drug trafficking, immigration offenses and other matters. Most recently, he led the successful prosecution of one of the largest pyramid schemes ever prosecuted by the Justice Department, TelexFree, Inc., which involved nearly two million victims worldwide who lost over $3 billion. Mr. Lelling has also prosecuted major drug trafficking organizations, including the Hells Angels, domestic branches of Mexican drug cartels, and global drug traffickers based in Eastern Europe. In his role as the Senior Litigation Counsel for the office, Mr. Lelling developed enforcement policy for criminal prosecutions and trained prosecutors and law enforcement officers on criminal practice.
Before serving as a federal prosecutor, Mr. Lelling was Counsel to the Assistant Attorney General for the Civil Rights Division, focusing on voting rights enforcement and civil rights-related criminal prosecutions. Before joining the Justice Department in 2001, Mr. Lelling was a senior litigation associate at Goodwin LLP in Boston and, before that, a litigation associate at LeBoeuf, Lamb, Greene & MacRae LLP in New York. In 1994-1995, he clerked for Chief Judge B. Avant Edenfield in the United States District Court for the Southern District of Georgia.
Mr. Lelling graduated cum laude from University of Pennsylvania Law School in 1994 and received his Bachelor of Arts in Literature & Rhetoric from Binghamton University in 1991. Until recently, Mr. Lelling taught an upper-level seminar on securities regulation and enforcement at New England Law Boston. He is a member of the Federalist Society and a former member of the Boston Bar Journal’s Board of Editors.
Randolph Pair Convicted of Trafficking Marijuana and Money LaunderingRead the Press Release
BOSTON – Two Randolph residents were convicted yesterday by a federal jury of distributing thousands of pounds of marijuana and laundering the proceeds.
Following a nine-day trial, Michael Gordon, 48, and Daphne Jean, 31, were convicted by a federal jury of conspiracy to distribute and possession with intent to distribute marijuana, and conspiring to launder drug money through real estate transactions. Gordon was also convicted of conspiracy to distribute and possession with intent to distribute more than 1000 kilograms (2200 pounds) of marijuana and various counts of money laundering involving the purchase of real estate in Florida and Randolph. U.S. District Court Judge Douglas P. Woodlock scheduled their sentencings for March 26, 2018.
From at least July 2011 to November 2014, Gordon shipped large amounts of marijuana from sources in California to Boston through the U.S. Postal Service and Federal Express, and then distributed the marijuana in the Boston area. Jean assisted Gordon by renting apartments that were used to receive the shipments of marijuana, and helping to launder drug proceeds. The operation produced millions of dollars in profits, and Gordon and Jean laundered the drug proceeds by participating in various financial transactions in Massachusetts and elsewhere.
Gordon faces a mandatory minimum sentence of 10 years and up to life in prison, a minimum of five years of supervised release, a $10 million fine, and forfeiture of the real estate and other assets involved in the offense. Jean faces a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $1 million fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Raymond Moss, Acting Inspector in Charge of the U.S. Postal Inspection Service; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement. Substantial assistance was also provided by Homeland Security Investigations in San Francisco; the Boston, Norwood, Randolph and Needham Police Departments; the Sonoma County (Calif.) Sheriff’s Department; and the Irwindale (Calif.) Police Department. Assistant U.S. Attorneys Karen Beausey and David G. Lazarus are prosecuting the case.
Randolph Man Charged with Child Pornography OffensesRead the Press Release
BOSTON – A Randolph man was arrested and charged yesterday in federal court in Boston with distribution, receipt, and possession of child pornography.
Michael Lee, 51, was charged with two counts of distribution of child pornography, two counts of receipt of child pornography, and one count of possession of child pornography. Lee appeared before Magistrate Judge Donald L. Cabell, who ordered Lee detained pending a probable cause and detention hearing scheduled for Dec. 18, 2017.
According to court records, law enforcement executed a search warrant at Lee’s Randolph home as part of an ongoing investigation into the online trade of child pornography through the use of Kik messenger. During the search, Lee admitted to trading images and videos of child pornography with other Kik users, including a New Hampshire man who provided Lee with images and videos documenting the sexual abuse of the man’s eight-year-old daughter. Preliminary on-scene forensic analysis of Lee’s cell phone confirmed his admissions.
Possession of child pornography carries a sentence of no greater than 10 years in prison; the charges of distribution and receipt of child pornography carry a mandatory minimum sentence of five years and up to 20 years in prison. All three charges provide for a mandatory minimum sentence of five years and up to a lifetime of supervised release and a fine of up to $250,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office, made the announcement today. Assistant U.S. Attorney Anne Paruti, Weinreb’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Quincy Woman Charged with Stealing Nearly $600,000 from EmployerRead the Press Release
BOSTON – An accountant/bookkeeper at a Boston-based company was arrested yesterday and charged in federal court in Boston with stealing approximately $588,000 of her employer’s funds.
Thanh Tam Thao Huynh, a/k/a Tiffany Huynh, 30, a Canadian national residing in Quincy, was arrested yesterday and charged with three counts of wire fraud. Huynh will appear before U.S. District Court Magistrate Judge Donald L. Cabell for a detention and probable cause hearing today.
It is alleged that from March 2016 to December 2017, Huynh was employed by a Boston-based company as an accountant/bookkeeper. Between February and October 2017, Huynh caused at least 30 unauthorized wire transfers, totaling at least $400,000, from the company’s account at Royal Bank of Canada (RBC) to unknown accounts. Huynh allegedly provided her supervisor with false information concerning the RBC’s account balance and gave him an incorrect password so that he could not check the balance himself. The complaint also alleges that from September 2016 to November 2017, Huynh caused dozens of unauthorized charges, totaling more than $160,000, to be made on the company’s business credit card for her own expenses, including her rent, car payments, and to purchase thousands of dollars’ worth of gift cards. Huynh, who was responsible for managing the company’s credit card statements, concealed her actions by deleting the details of her personal charges before providing the statements to her supervisor for review. When Huynh’s company discovered Huynh’s theft and unauthorized use of the credit card, they confronted her and Huynh admitted to both.
The charge provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000, or twice to gross gain or loss, whichever is greater, and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement. Assistant U.S. Attorney Mark J. Balthazard of Weinreb’s Economic Crimes Unit is prosecuting the case.
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.