District of Massachusetts
Press releases recorded for this federal judicial district.
Dominican National Pleads Guilty to Heroin and Fentanyl ConspiracyRead the Press Release
BOSTON – A Dominican national pleaded guilty yesterday in federal court in Boston to his role in a heroin and fentanyl trafficking organization that operated in Taunton and Boston.
Ernesto Jossiel Paredes-Lugo, also known as Juan Morales-Ortiz, 28, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute heroin and fentanyl. In February 2017, Morales-Ortiz was arrested and charged along with 22 other co-defendants. U.S. District Court Judge Indira Talwani scheduled sentencing for Jan. 25, 2018.
From mid-2016 through February 2017, federal law enforcement investigated two drug trafficking organizations operating in Taunton and Boston led by Jose Antonio Lugo-Guerrero, 32, a Dominican national, and Fernando Hernandez, 42, a Dominican national residing in Providence, R.I. Hernandez allegedly ran a heroin and fentanyl trafficking organization in Taunton. The organization sold heroin and fentanyl to customers who re-distributed a portion of the drugs they obtained. It is alleged that Hernandez obtained drugs from a network of suppliers that included Lugo-Guerrero.
Lugo-Guerrero allegedly operated a drug trafficking organization in Fall River and Boston, assisted by others, including Paredes-Lugo, who sold to numerous customers. It is further alleged that Lugo-Guerrero and his associates obtained a significant quantity of illegal drugs by robbing other drug traffickers.
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 $1 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 Weinreb; Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Fall River Police Chief Daniel S. Racine; New Bedford Police Chief Joseph C. Cordeiro; Taunton Police Chief Edward James Walsh; Boston Police Commissioner William B. Evans; and Bristol Country District Attorney Thomas M. Quinn made the announcement today. Assistant U.S. Attorney Ted Heinrich of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Dominican National Charged with Illegal ReentryRead the Press Release
BOSTON – Jonathan Julian Garcia, 38, a Dominican national residing in Roxbury, was charged yesterday in federal court in Boston with one count of illegal reentry of a deported alien.
According to the indictment, Garcia was previously deported on Feb. 3, 2015. In October 2017, law enforcement encountered Garcia in Westwood and determined him to be illegally present in the United States.
Garcia faces a sentence of no greater than 20 in prison, three years of supervised release, a fine of $250,000, and will be subject to deportation upon completion of any sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney David G. Tobin of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the court documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Restaurant Owner Sentenced for Multiple Fraud SchemesRead the Press Release
BOSTON – A restaurant owner was sentenced yesterday in federal court in Boston for committing tax and insurance fraud involving 11 Boston-area restaurants and for committing visa and immigration fraud.
Hazrat Khalid Khan, 58, a Pakistani national residing in Middletown, N.Y., was sentenced to 30 months in prison, one year of supervised release, and will be subject to deportation proceedings upon completion of his sentence. Khan was also ordered to pay restitution of $2,343,155 to the Internal Revenue Service (IRS) and $27,863 to two insurance companies he defrauded.
In April 2017, Khan pleaded guilty to conspiring to defraud the IRS, failing to collect and pay over taxes, committing mail fraud, making false statements on a naturalization application and committing visa fraud. The sentence resolves two cases in the District of Massachusetts and one brought in the Southern District of New York. The whereabouts of two of Khan’s co-defendants, Khursed Iqbal and Rahman Zeb, also Pakistani nationals, remains unknown.
Khan was the partial owner of 11 fried chicken takeout restaurants in greater Boston, including Roxbury, Chelsea and Mattapan. As part of a tax fraud scheme that ran for years, Khan and his co-conspirators—generally the managers of these restaurants—defrauded the government and avoided paying payroll and income taxes owed by the stores. They paid their employees in cash and provided tax preparers with false information about the restaurants’ payroll and income, thereby causing the tax preparers to file false tax returns.
Federal law requires employers to withhold payroll taxes, which includes Social Security and Medicare taxes, and then pay them over to the IRS. To avoid paying taxes, Khan and several co-conspirators falsely reported to the IRS the number of employees at their stores, some of whom were undocumented workers, and the wages they paid them. They also failed to file W-2s showing wages paid to employees and falsely described on tax returns their sales, total income, compensation of officers, salaries and wages, and taxable income. Khan and his co-conspirators also failed to withhold payroll taxes and pay them over to the IRS, resulting in approximately $2.3 million in unpaid federal payroll and income taxes over a five-year period.
Khan also underreported payroll to the workers’ compensation insurance providers for the 11 restaurants he and his co-conspirators controlled, thereby defrauding insurers. Lastly, Khan repeatedly made false statements to obtain immigration benefits. Specifically, on two occasions – first in connection with obtaining legal permanent resident status and again when applying to naturalize as a U.S. citizen – Khan falsely denied that he had previously been arrested or convicted of a crime, when, in fact, Khan had been previously convicted in federal court of alien smuggling.
Acting United States Attorney William D. Weinreb; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; 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; and Boston Police Commissioner William Evans, made the announcement. The case was investigated with the cooperation of the Massachusetts Insurance Fraud Bureau. Assistant U.S. Attorneys John A. Capin and Brian A. Pérez-Daple of Weinreb’s Criminal Division prosecuted the case.
Dominican National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON - Francisco Siri, 48, a Dominican national, was indicted today in federal court in Springfield on one count of unlawful reentry of a deported alien.
According to court documents, Siri was deported on Nov. 9, 1992, after being convicted in Essex County Superior Court of trafficking cocaine. Law enforcement officers recently discovered Siri and determined him to be illegally present in the United States.
Siri faces a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000, and 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.
Acting United States Attorney William D. Weinreb and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Todd E. Newhouse of Weinreb’s Springfield Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Dominican National Charged with Identity TheftRead the Press Release
BOSTON – A Dominican national was charged today in federal court in Boston with misusing a Social Security number and identity theft.
Saly Romero Aquino, a/k/a Saly Nicaury Romero Aquino, a/k/a Saly Nicauri Romero Aquino, a/k/a Saly Nicauri Romero Tejada, 32, a Dominican national residing in Lawrence, was indicted on one count of misuse of a Social Security number and one count of aggravated identity theft.
According to the indictment, on Feb. 25, 2013, Romero Aquino falsely represented a Social Security number as her own.
The charge of misuse of a Social Security number provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of up to $250,000. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison, up to one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. Assistant U.S. Attorney Christine Wichers of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Cape Cod Man Pleads Guilty to Fentanyl ConspiracyRead the Press Release
BOSTON – A Yarmouth Port man pleaded guilty today in federal court in Boston for his role in a wide-ranging operation that distributed heroin and fentanyl throughout Cape Cod.
Alex Fraga, 25, of Yarmouth Port, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl and heroin. U.S. District Court Judge Nathaniel Gorton scheduled sentencing for Feb. 8, 2018.
Alex Fraga and three others were charged 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. On Aug. 16, 2017, Alex Fraga and his brother, Kevin Fraga, were arrested after federal authorities seized large quantities of fentanyl, heroin and cocaine from the home Alex and Kevin shared in Yarmouth Port.
Approximately one week later, Jose Solivan and James Ramirez, alleged drug suppliers to the Fraga brothers, were arrested, and law enforcement seized fentanyl pills and powdered fentanyl from a drug stash house in Dorchester, Ramirez’s home in Dorchester, and a safety deposit box at Santander Bank in Dorchester. Further investigation revealed Solivan’s true identity as Kelvin Chalas.
Kevin Fraga pleaded guilty on Nov. 1, 2017, to one count of conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl, 500 grams or more of cocaine and 100 grams or more of heroin. His sentencing is scheduled for Jan. 24, 2018.
The charge provides for a mandatory sentence of 10 years and up to life in prison, a minimum of five years and up to a lifetime of supervised release and a fine of up to $10 million. 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 Richard D. McKeon, 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 formerly of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Boston Man Charged with Bank RobberyRead the Press Release
BOSTON – Paul B. Landrum, dubbed the “Route 128 bandit,” 38, of Boston, was charged yesterday with bank robbery. He is scheduled to appear before U.S. Magistrate Judge Donald L. Cabell on Friday, Nov. 3, 2017, at 10:15 a.m.
According to court documents, between July 31, 2017, and Oct. 6, 2017, nine banks were robbed in the Greater Boston area, and in all of the robberies, the perpetrator was described as a 30-45-year-old light-skinned black or Hispanic male wearing a baseball hat, sunglasses and a long-sleeved collarless shirt. Based on the descriptive similarities at each bank, law enforcement suspected that the same individual was involved in each robbery.
An investigation into the robber’s get-away vehicle led law enforcement to identify Landrum as the suspect, and on Oct. 24, 2017, law enforcement arrested Landrum in Boston. It is alleged that after being advised of his rights, Landrum admitted to robbing a branch of Bank of America in Bedford on Oct. 6, 2017, and that he robbed the eight other banks in question since July 31.
Landrum faces a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
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. The Boston FBI Violent Crimes Task Force, the Massachusetts State Police, and the Boston, Brookline, Medford, Somerville, and Wellesley police departments assisted with the investigation. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the court documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Fitchburg Man Charged in Federal Drug ConspiracyRead the Press Release
BOSTON – Angel Cruz, a/k/a “Papo,” 57, was arrested today and charged in federal court in Worcester with one count of conspiracy to possess with intent to distribute cocaine.
According to the indictment, unsealed today, Cruz conspired with others in October 2016 to possess with intent to distribute 500 grams or more of cocaine.
Cruz 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 $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; Fitchburg Police Chief Ernest F. Martineau; and Lunenburg Police Chief James P. Marino made the announcement today. The Drug Enforcement Administration, Detroit Division, Columbus Office, and the Ohio State Police assisted with the investigation. Assistant U.S. Attorney Michelle L. Dineen Jerrett of Weinreb’s Worcester Branch Office is prosecuting the case.
The details contained in the court documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Cape Cod Man Pleads Guilty to Conspiracy to Distribute Fentanyl, Heroin, and CocaineRead the Press Release
BOSTON – A Yarmouth Port man pleaded guilty today in federal court in Boston for his role in a wide-ranging operation that distributed heroin and fentanyl throughout Cape Cod.
Kevin Fraga, 24, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl, 500 grams or more of cocaine and 100 grams or more of heroin. U.S. District Court Judge Allison Buroughs scheduled sentencing for Jan. 24, 2018.
Fraga and three others were arrested in August 2017 as part of a drug ring that shipped large quantities of fentanyl, cocaine and heroin from Boston to Cape Cod, where it was redistributed. Fraga and his brother, Alex Fraga, were arrested on Aug. 16, 2017, after law enforcement officers seized large quantities of fentanyl, heroin and cocaine from Kevin Fraga’s Jeep and Winnebago, and the home that Alex and Kevin shared in Yarmouth Port. Approximately one week later, Kelvin Chales and James Ramirez, alleged drug suppliers to the Fraga brothers, were arrested, and law enforcement seized fentanyl pills and powdered fentanyl from a drug stash house in Dorchester, Ramirez’s home in Dorchester, and a safety deposit box at Santander Bank in Dorchester.
The charge provides for a mandatory minimum sentence of 10 years and up to life in prison, five years and up to a lifetime of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based 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 Richard D. McKeon, 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
Webster Man Charged with Government TheftRead the Press Release
BOSTON – David Brunell, 55, of Webster was arrested today and charged in federal court in Worcester with one count of theft of government money. Brunell was released on conditions following his appearance before U.S. Magistrate Judge David H. Hennessy.
According to the indictment, Brunell embezzled more than $1,000 in funds from the Social Security Administration between January 2004 and May 2017.
Brunell faces 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 and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. Assistant U.S. Attorney William F. Abely of Weinreb’s Worcester Branch Office is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Springfield Landlord Found Liable of Housing DiscriminationRead the Press Release
BOSTON – A Springfield landlord was found liable by a federal jury on Friday, Oct. 24, 2017, of discriminating against a family in violation of the Fair Housing Act (“Act”).
John DeRaffele, of New Rochelle, N.Y., was found liable following a five-day jury trial of discrimination based on familial status under the Fair Housing Act. The Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. DeRaffele violated the Act by including an addendum to leases that prospective renters could not rent apartments if they had minor children, were pregnant, or became pregnant. Furthermore, in 2015, DeRaffele refused to rent an apartment to a Springfield family because they had a child under six years of age and because the wife was pregnant. When the couple filed a complaint with state authorities, DeRaffele retaliated by suing the couple in federal court alleging $1 million in damages.
The jury found that DeRaffele interfered with the family’s fair housing rights by discriminating based on familial status and engaged in a pattern or practice of discrimination against prospective tenants based on their familial status. The jury awarded $8,500 in damages to the family, and imposed a $35,000 civil penalty for the pattern and practice discrimination.
Acting U.S. Attorney William D. Weinreb and Susan Forward, Regional Director of the U.S. Department of Housing and Urban Development, Fair Housing and Equal Opportunity, New England Office made the announcement. Assistant U.S. Attorney Jennifer A. Serafyn, Chief of Weinreb’s Civil Rights Unit, and Special Assistant U.S. Attorney Gregory J. Dorchak, also of the Civil Rights Unit, handled the case.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
Hyannis Woman Charged with Smuggling CocaineRead the Press Release
BOSTON – A Hyannis woman was arraigned today in federal court in Springfield for her role in a scheme to traffic cocaine into the United States.
Cristina M. Delle Femine, 27, was indicted on Sept. 28, 2017, on one count of conspiracy to import cocaine and one count of conspiracy to possess with intent to distribute cocaine. Delle Femine was arrested in Maine on Oct. 23, 2017, and appeared in federal court in Springfield today.
According to the indictment Delle Femine conspired in May 2017 to import cocaine from Jamaica into the United States and conspired to possess cocaine with the intent to distribute.
The charges of conspiracy to import and conspiracy to possess with intent to distribute each provide 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 $1 million. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorney Deepika Bains Shukla of Weinreb’s Springfield Branch Office is prosecuting the case.
Guatemalan National Pleads Guilty to Illegal ReentryRead the Press Release
BOSTON – A Guatemalan national pleaded guilty today in federal court in Boston to a federal immigration charge.
Selvin Danilo Herrera-Arana, 33, pleaded guilty to one count of unlawful reentry of a deported alien before U.S. District Court Judge Leo T. Sorokin. Sentencing is scheduled for Jan. 25, 2018.
In July 2017, Herrera-Arana was arrested in Lynn and determined to be illegally present in the United States, having previously been deported on three different occasions: April 7, 2009, Sept. 4, 2012, and Sept. 9, 2014.
Herrera-Arana faces a sentence of no greater than 10 years in prison, up to 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.
Acting United States Attorney William D. Weinreb and Matthew Etre, 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.
District Court Enters Permanent Injunction Against Philips North America and Two Executives to Limit Distribution of Adulterated External DefibrillatorsRead the Press Release
A federal court enjoined Philips North America LLC (Philips) and two of the company’s executives from distributing certain medical devices, including some of the company’s external defibrillators, until the company takes remedial steps, the Department of Justice announced today.
The U.S. District Court for the District of Massachusetts entered a consent decree of permanent injunction against Philips, headquartered in Andover, Massachusetts, and two of the company’s executives, Carla Kriwet and Ojas Buch. Ms. Kriwet is the business group leader for the Patient Care and Monitoring Solutions (PCMS) business group within Philips. Mr. Buch is Vice President, Head of Quality and Regulatory for the PCMS business group. With limited exceptions, the consent decree permanently enjoins the defendants from distributing certain medical devices until remedial steps are undertaken.
“The Department of Justice is committed to protecting consumers and patients by ensuring that medical device manufacturers comply with the law,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “When a company fails to comply with legally required manufacturing standards, patients may be put at risk. The Department of Justice is committed to working with FDA to prevent these violations.”
The Department filed a complaint in the District of Massachusetts on Oct. 11, at the request of the U.S. Food and Drug Administration (FDA). As alleged in the complaint, FDA inspected Philips’ Bothell, Washington, facility in 2015. The inspection revealed that company had failed to establish and maintain adequate procedures for implementing corrective and preventive action as required by federal regulation. Specifically, the complaint alleged that while Philips initiated corrective and preventive action in response to complaints involving certain resistor failures during the use of the HeartStart HS1 and FRx defibrillators, Philips’ corrective actions did not fully address the problem with the devices in the field and Philips continued to receive complaints about the failure.
The complaint also alleged that another 2015 inspection by FDA at Philips’ Andover, Massachusetts, facility revealed the company’s failure to establish and maintain adequate procedures for implementing corrective and preventive action in connection with the company’s Q-CPR meter (a device that provides feedback on chest compressions during cardiopulmonary resuscitation), and for design verification in connection with a change to a battery used in the Heartstart MRx defibrillator.
The permanent injunction enjoins defendants, with limited exceptions, from manufacturing or distributing certain Emergency Care & Resuscitation devices until it can demonstrate that it has undertaken required remedial measures. The injunction also orders Philips to issue notifications with respect to its Q-CPR meters, and external defibrillators manufactured with a specific resistor. For the external defibrillators covered by the notice and still under warranty, Philips will provide a refurbished exchange unit at no cost; if the device is no longer under warranty, customers may be eligible for a trade-in rebate. Furthermore, the injunction requires Philips to take specific steps with respect to the company’s other PCMS business units at its Andover and Bothell facilities. Those steps include hiring an expert consultant to inspect these business units to ensure, among other things, that the methods and controls used to manufacture and distribute Philips’ PCMS devices comply with the federal Food, Drug, and Cosmetic Act and its implementing regulations.
“Manufacturing medical devices in violation of current good manufacturing practice is conduct that cannot be tolerated. This decree ensures that Philips will reform its practices and comply with the law,” said Acting U.S. Attorney William D. Weinreb, District of Massachusetts.
“AEDs are life-saving tools and are designed to be used by the general public or professionals in an emergency,” said Melinda Plaisier, FDA Associate Commissioner for Regulatory Affairs. “People rely on these devices to work when needed. By not adequately addressing corrective and preventative actions with their AEDs in a timely manner, Philips distributed adulterated products that put people at risk.”
The government is represented by Trial Attorney Alexander Sverdlov of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney George Henderson of the U.S. Attorney’s Office for the District of Massachusetts, with the assistance of Associate Chief Counsel Jennifer Kang of the Department of Health and Human Services’ Office of General Counsel’s Food and Drug Division.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the District of Massachusetts, visit its website at https://www.justice.gov/usao-ma.
Cape Cod Woman Pleads Guilty to Role in Heroin SchemeRead the Press Release
BOSTON – A Hyannis woman pleaded guilty today in federal court in Boston to her role in a widespread Cape Cod heroin scheme run by the Nauti-Block Gang.
Bethanne Hutchings, 51, pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute heroin - aiding and abetting and one count of maintaining a place for drug purposes. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for Jan. 30, 2018.
On April 5, 2016, following a nearly eight-month investigation, 13 members of the Cape Cod-based Nauti-Block gang, led by Denzel Chisholm, were arrested on federal drug trafficking and firearms charges. Two subsequent superseding indictments brought the total number of defendants charged in the case to 19.
Hutchings is the 19th and final defendant to be convicted of, or plead guilty to, the various drug distribution and conspiracy charges related to the investigation. 17 defendants pleaded guilty while two – Molly London and Denzel Chisholm – were convicted by a federal jury. Hutchings, like London, allowed members of the conspiracy, including Christopher Wilkins and Chisholm, to store large quantities of heroin at her home for further distribution.
In September 2017, Chisholm, Wilkins, and London were sentenced to 28.5 years in prison, nine years in prison, and 20 months in prison, respectively.
The charge of aiding and abetting the conspiracy to possess heroin with the intent to distribute 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 charge of maintaining a premises for drug purposes provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of up to $500,000. Sentences are imposed by a federal district court judge based 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 & Explosives, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Cape and Islands District Attorney Michael O’Keefe; and Barnstable Police Chief Paul MacDonald, made the announcement. Assistant U.S. Attorneys Eric S. Rosen and Miranda Hooker of Weinreb’s Criminal Division are prosecuting the case.
South Sudanese National Charged with Resisting Federal OfficerRead the Press Release
BOSTON – Charles Samuel Ali, 31, was charged yesterday in federal court in Boston with one count of resisting and assaulting a federal officer.
According to the indictment, on Feb. 16, 2011, an Immigration Judge in New York ordered Ali removed from the United States to be returned to the Republic of South Sudan. On Sept. 11, 2017, Deportation Officers arrived at the facility where Ali was being held to transport Ali to Logan International Airport and then accompany him to the Republic of South Sudan. During the process, Ali became disruptive, questioning the removal documents authenticity and would not cooperate with the officers’ efforts. As the officers attempted to escort Ali to the airport, he assaulted the officers resulting in one of the officers sustaining a broken ankle. The officers then decided to abort the removal, and Ali was returned to custody.
Ali faces a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000, and will be subject to deportation upon completion of any sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
MS-13 Member Pleads Guilty to RICO Conspiracy Involving Attempted Murder and Conspiracy to MurderRead the Press Release
BOSTON – An MS-13 member pleaded guilty today in federal court in Boston in connection with a 2014 shooting in Chelsea and a 2015 conspiracy to kill a suspected cooperating witness.
David Lopez, a/k/a “Cilindro,” a/k/a “Villano,” 22, a Salvadoran national, 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 Jan. 30, 2018.
Lopez was a member of MS-13’s Enfermos Criminales Salvatrucha (ECS) clique, which operated in Chelsea and other parts of Massachusetts. On May 29, 2014, Lopez and co-defendant Daniel Menjivar, a/k/a “Roca,” approached a victim near the Washington Avenue bus stop in Chelsea. Menjivar repeatedly stabbed the victim, and as he was struggling for his life, Lopez approached and shot at the victim. The victim suffered significant life threatening injuries, but survived following emergency surgery. Menjivar pleaded guilty in September 2017.
The investigation revealed that in March 2015, members of the ECS clique decided to kill a fellow MS-13 member who they incorrectly believed was cooperating with law enforcement at the time. Law enforcement intervened and convinced the individual to become a cooperating witness. A subsequent investigation uncovered evidence that the ECS clique sent someone to New Jersey to pick up Lopez, who had fled Massachusetts after the May 2014 attack, so that he could come back to Massachusetts to help kill the suspected cooperating witness.
Lopez is the 23rd defendant to plead guilty in this case.
Lopez faces no greater than 20 years in prison and three years of supervised release. Lopez 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; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Richard D. McKeon, 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 Joseph Cafarelli; Somerville Police Chief David Fallon; and Herndon (VA) Police Chief Maggie A. DeBoard made the announcement.
The details contained in the charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Dominican National Charged with Illegal ReentryRead the Press Release
BOSTON – Jose Mejia Ruiz, 40, was charged yesterday in federal court in Boston with one count of unlawful reentry of a deported alien.
According to the indictment, on Oct. 3, 2017, law enforcement in Boston encountered Jose Mejia Ruiz and determined that he was unlawfully present in the United States having previously been deported on Jan. 12, 2011.
Ruiz 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 upon completion of any sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Dominican National Charged with Fentanyl-Related CrimesRead the Press Release
BOSTON – A Dominican national was charged on Wed., Oct. 25, 2017, with drug crimes related to his role in a wide-ranging operation that distributed cocaine and fentanyl throughout Boston and Cape Cod.
Kelvin Chalas, a/k/a Jose Solivan, a/k/a “Keco,” 40, a Dominican national residing in Dorchester, was indicted on one count of conspiracy to distribute cocaine and 40 grams or more of fentanyl and one count of possession of 40 grams or more of fentanyl with the intent to distribute. Chalas was arrested on Aug. 22, 2017, and charged by criminal complaint along with three co-conspirators.
Chalas and his co-conspirators, James Ramirez and Alex and Kevin Fraga, shipped large quantities of fentanyl, cocaine and heroin from Boston to Cape Cod, where it was redistributed. It is alleged that Chalas helped run a drug stash house for Ramirez, who would collect the narcotics and take them to Cape Cod for distribution.
The conspiracy charge provides for a mandatory minimum sentence of five years and up to 40 years in prison, four years and up to a lifetime of supervised release and a fine of up to $5 million. The possession charge provides for a mandatory minimum sentence of 10 years and up to life in prison, five years to life of supervised release, and a fine of up to $10 million. Chalas will be subject to deportation upon completion of any sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Richard D. McKeon, 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.
Chelsea Gang Member Sentenced to 10 Years in PrisonRead the Press Release
BOSTON – An East Side Money Gang (ESMG) member, known as “Superbad,” was sentenced yesterday in federal court in Boston for racketeering and drug trafficking charges.
Josue Rodriguez, a/k/a “SB,” a/k/a “Superbad,” 20, of Chelsea, was sentenced by U.S. District Court Judge Richard G. Stearns to 10 years in prison and five years of supervised release. In June 2017, Rodriguez pleaded guilty to one count of conspiracy to conduct enterprise affairs through a pattern of racketeering activity, commonly known as RICO, and one count of conspiracy to distribute cocaine and cocaine base.
Rodriguez is a member of the ESMG, a Chelsea-based street gang, which uses violence to further its criminal activities and enforce its internal rules. Specifically, ESMG uses violence to protect its members/associates, target rival gang members/associates and intimidate potential witnesses.
Rodriguez admitted that on July 5, 2015, he ambushed a rival gang member who was walking down the street, shooting at him with a semi-automatic pistol, but did not hit him. On March 29, 2016, Rodriguez and another ESMG member agreed to provide a .22 caliber revolver to a third ESMG member so he could “spank” with it – meaning that he could use it against rivals of ESMG. On April 3, 2016, the third gang member used the revolver to attempt to murder two men believed to be members/associates of a rival gang. One of the targets was shot but not killed.
On May 26, 2016, Rodriguez attempted to hide the .38 caliber Smith and Wesson revolver used in a shooting, as well as spent and live shells, after another ESMG member/associate attempted to shoot a rival gang member.
The East Side Money gang was also involved in drug trafficking, including cocaine, cocaine base (crack) and heroin. Rodriguez conspired with other gang members and associates to distribute at least one kilogram of cocaine base. Rodriguez further admitted that he stored drugs at, and distributed drugs from, his home in Chelsea, and that the gang maintained at least one firearm at the location.
Rodriguez is one of 53 defendants indicted in June 2016 on federal firearms and drug charges following an investigation into a network of street gangs that had created alliances to traffic weapons and drugs throughout Massachusetts and to generate violence against rival gang members. According to court documents, the defendants, who are leaders, members, and associates of the 18th Street Gang, East Side Money Gang and the Boylston Gang, were responsible for fueling a gun and drug pipeline across a number of cities and towns in eastern Massachusetts. During the course of the investigation, over 70 firearms were seized.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; John Gibbons, U.S. Marshal for the District of Massachusetts; Maura Healey, Attorney General of Massachusetts; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Boston Police Commissioner William Evans; Chelsea Police Chief Brian Kyes; and Brockton Police Chief John Crowley made the announcement today. The U.S. Attorney’s Office also acknowledges the assistance of the Suffolk and Middlesex County Sheriff Departments and the Malden, Revere and Everett Police Departments. Weinreb’s Organized Crime and Gang Unit is prosecuting the case.
Brockton Man Sentenced for Distributing FentanylRead the Press Release
BOSTON – A Brockton man was sentenced today in federal court in Boston for trafficking fentanyl.
Gilvan Monteiro, 26, a/k/a “G,” was sentenced by U.S. District Court Judge William G. Young to 66 months in prison and three years of supervised release. During the period of supervised release, Monteiro is prohibited from associating with his co-conspirators and certain Brockton gang members. He is also prohibited from being in the City of Brockton.
In January 2017, Monteiro pleaded guilty to conspiracy to possess with intent to distribute fentanyl. In April 2016, Monteiro was arrested and charged in a criminal complaint along with Luis DaCosta and Edson Gomes. In May 2016, they and four others were indicted on drug and firearm-related charges.
On numerous occasions between December 2015 to March 2016, Monteiro and his co-defendants sold fentanyl in the Brockton area, and shared several of the same customers. In instances where Monteiro was out of fentanyl, he would direct his customers to purchase from Gomes.
According to court records, Monteiro has a criminal record that includes narcotics and firearms offenses and assault and battery with a dangerous weapon.
DaCosta was sentenced to 106 months in federal prison in May 2017, and Gomes was sentenced to 71 months in prison in June 2017.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Plymouth County District Attorney Timothy Cruz; and Brockton Police Chief John Crowley made the announcement today. Assistant U.S. Attorney Glenn A. MacKinlay, Chief of Weinreb’s Organized Crime and Gang Unit, and Assistant U.S. Attorney Timothy Moran, also of the Organized Crime and Gang Unit, prosecuted the case.
Two Superseding Indictments Charge Six in Lawrence Federal Drug Sweep with Additional OffensesRead the Press Release
BOSTON – Six defendants involved in a May 2017 federal drug sweep in Lawrence were charged yesterday in federal court in Boston with additional drug and firearms offenses.
The individuals were arrested in May 2017 along with approximately 25 co-defendants. 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 conducted a drug sweep to dismantle two Lawrence-based drug trafficking organizations; one allegedly run by Juan Anibal Patrone, and another allegedly led by Santo Ramon Gonzalez-Nival, who was also a source of supply for Patrone. The separate superseding indictments pertain to the two drug trafficking organizations.
Two members of the Patrone organization were charged with additional offenses. Juan Anibal Patrone, 27, and Josuel Moises Patrone Gonzalez, 22, both dual Dominican and Italian citizens, were each charged with one count of conspiracy to possess with intent to distribute heroin, cocaine, and 400 grams or greater of fentanyl. Juan Anibal Patrone was also charged with one count of being an alien in possession of a firearm. During a search of Juan Anibal Patrone’s home, agents found a 10mm Auto-Ordnance Corp, loaded with a magazine containing six 10mm rounds of ammunition.
Four members of the Gonzalez-Nival organization were charged with additional offenses. Ramon Gonzalez Nival, 40, and Julio Baez Gonzalez, 34, both Dominican nationals, were each charged with one count of conspiracy to possess with intent to distribute heroin, cocaine, and 400 grams or greater of fentanyl. Baez Gonzalez, who was previously charged with being an alien in possession of a firearm, is charged with an additional count of possession of a firearm in furtherance of drug trafficking. Bernaldo Rosario Santiago, 25, of Lowell, and Diosmary Burgos, 39, a Dominican national, were each charged with one count of conspiracy to possess with intent to distribute heroin, cocaine, and 40 grams or greater of fentanyl.
The charge of conspiracy to distribute 400 grams or greater of fentanyl provides for a mandatory minimum sentence of 10 years and up to life in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of up to $20 million. The charge of conspiracy to distribute 40 grams or greater of fentanyl 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 $5 million. The charge of being an alien 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. The charge of using a firearm in furtherance of a drug trafficking crime provides for a minimum sentence of five years in prison to be served consecutive to any sentence imposed for additional charges.
Acting United States Attorney William D. Weinreb; Michal J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Division; and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. The DEA Cross Border Initiative comprised of the DEA and the Andover, Haverhill, Lawrence, Lowell, and Wilmington Police Departments, conducted the investigation jointly with the Massachusetts State Police. Assistant U.S. Attorney Susan Winkler of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the cases.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
MS-13 Member Pleads Guilty to RICO Conspiracy Involving MurderRead the Press Release
BOSTON – An MS-13 member pleaded guilty today in federal court in Boston to racketeering conspiracy involving murder, attempted murder, and armed robbery. Defendant admitted responsibility for murdering an innocent bystander, attempted murder of rival gang member and armed robbery.
Hector Ramires, a/k/a “Cuervo,” 24, a Honduran national formerly of Chelsea, 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 Jan. 19, 2018. According to the terms of the plea agreement, the parties will jointly recommend a sentence of 27 years in prison.
Ramires was a member of MS-13’s Enfermos Criminales Salvatrucha (ECS) clique, which operated in Chelsea and other parts of Massachusetts. On Oct. 18, 2014, Ramires and Bryan Galicia Barillas a/k/a “Chucky,” a fellow member of MS-13’s ECS clique, were walking the streets of Chelsea when they encountered a group of rival gang members. Ramires, who was armed, shot at one of the gang rivals and missed, killing a woman who was an innocent bystander who was looking out a nearby window of a room she shared with her three children. Barillas was also charged and previously pleaded guilty to, among other things, providing Ramires with the gun.
Ramires also accepted responsibility for his role in a March 28, 2014, attempted murder of a rival gang member in Chelsea, and an April 9, 2014, armed robbery in Chelsea.
After a three-year investigation, Ramires was one of 61 persons named in a superseding indictment targeting the criminal activities of alleged leaders, members, and associates of MS-13 in Massachusetts. MS-13 is a violent transnational criminal organization whose branches or “cliques” operate throughout the United States, including in Massachusetts.
Ramires is the 22nd defendant to plead guilty in this case and will 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; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Richard D. McKeon, 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 Joseph Cafarelli; Somerville Police Chief David Fallon; and Herndon (Va.) Police Chief Maggie A. DeBoard made the announcement.
The details contained in the charging documents are allegations. All remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Guatemalan National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON - A Guatemalan national charged with an immigration crime pleaded guilty and was sentenced today in federal court in Boston.
Gilberto Chavez-Mendez, 24, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. District Court Judge Richard G. Stearns sentenced Chavez-Mendez to time served. Chavez-Mendez will be subject to deportation.
Chavez-Mendez was previously deported on May 23, 2012. On Aug. 28, 2017, law enforcement encountered Chavez-Mendez in Lynn and determined him to be illegally present in the United States.
Chavez-Mendez faces a sentence of no greater than two years in prison, one year of supervised release, a fine of $250,000, and 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.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Weinreb’s Major Crimes Unit prosecuted the case.
Guatemalan National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON – A Guatemalan national was indicted today in Worcester on a federal immigration charge.
Enri Nemias Vega, 31, was indicted on one count of unlawful reentry of a deported alien. Vega was previously deported in 2012. On May 20, 2017, Vega was encountered by law enforcement in Sutton and determined to be illegally present in the United States.
Vega faces a sentence of no greater than 10 years in prison, three years of supervised release, a fine of up to $250,000 and 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.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Greg A. Friedholm of Weinreb’s Worcester Branch Office is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Founder and Owner of Pharmaceutical Company Insys Arrested and Charged with RacketeeringRead the Press Release
BOSTON – The founder and majority owner of Insys Therapeutics Inc., was arrested today and charged with leading a nationwide conspiracy to profit by using bribes and fraud to cause the illegal distribution of a Fentanyl spray intended for cancer patients experiencing breakthrough pain.
John N. Kapoor, 74, of Phoenix, Ariz., a current member of the Board of Directors of Insys, was arrested this morning in Arizona and charged with RICO conspiracy, as well as other felonies, including conspiracy to commit mail and wire fraud and conspiracy to violate the Anti-Kickback Law. Kapoor, the former Executive Chairman of the Board and CEO of Insys, will appear in federal court in Phoenix today. He will appear in U.S. District Court in Boston at a later date.
The superseding indictment, unsealed today in Boston, also includes additional allegations against several former Insys executives and managers who were initially indicted in December 2016.
The superseding indictment charges that Kapoor; Michael L. Babich, 40, of Scottsdale, Ariz., former CEO and President of the company; Alec Burlakoff, 42, of Charlotte, N.C., former Vice President of Sales; Richard M. Simon, 46, of Seal Beach, Calif., former National Director of Sales; former Regional Sales Directors Sunrise Lee, 36, of Bryant City, Mich., and Joseph A. Rowan, 43, of Panama City, Fla.; and former Vice President of Managed Markets, Michael J. Gurry, 53, of Scottsdale, Ariz., conspired to bribe practitioners in various states, many of whom operated pain clinics, in order to get them to prescribe a fentanyl-based pain medication. The medication, called “Subsys,” is a powerful narcotic intended to treat cancer patients suffering intense breakthrough pain. In exchange for bribes and kickbacks, the practitioners wrote large numbers of prescriptions for the patients, most of whom were not diagnosed with cancer.
The indictment also alleges that Kapoor and the six former executives conspired to mislead and defraud health insurance providers who were reluctant to approve payment for the drug when it was prescribed for non-cancer patients. They achieved this goal by setting up the “reimbursement unit,” which was dedicated to obtaining prior authorization directly from insurers and pharmacy benefit managers.
“In the midst of a nationwide opioid epidemic that has reached crisis proportions, Mr. Kapoor and his company stand accused of bribing doctors to overprescribe a potent opioid and committing fraud on insurance companies solely for profit,” said Acting United States Attorney William D. Weinreb. “Today's arrest and charges reflect our ongoing efforts to attack the opioid crisis from all angles. We must hold the industry and its leadership accountable - just as we would the cartels or a street-level drug dealer.”
“As alleged, these executives created a corporate culture at Insys that utilized deception and bribery as an acceptable business practice, deceiving patients, and conspiring with doctors and insurers,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “The allegations of selling a highly addictive opioid cancer pain drug to patients who did not have cancer, make them no better than street-level drug dealers. Today's charges mark an important step in holding pharmaceutical executives responsible for their part in the opioid crisis. The FBI will vigorously investigate corrupt organizations with business practices that promote fraud with a total disregard for patient safety.”
“These Insys executives allegedly fueled the opioid epidemic by paying doctors to needlessly prescribe an extremely dangerous and addictive form of fentanyl,” said Phillip Coyne, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Corporate executives intent on illegally driving up profits need to be aware they are now squarely in the sights of law enforcement.”
“As alleged, Insys executives improperly influenced health care providers to prescribe a powerful opioid for patients who did not need it, and without complying with FDA requirements, thus putting patients at risk and contributing to the current opioid crisis,” said Mark A. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations’ Metro Washington Field Office. “Our office will continue to work with our law enforcement partners to pursue and bring to justice those who threaten the public health.”
“Pharmaceutical companies whose products include controlled medications that can lead to addiction and overdose have a special obligation to operate in a trustworthy, transparent manner, because their customers’ health and safety and, indeed, very lives depend on it,” said DEA Special Agent in Charge Michael J. Ferguson. “DEA pledges to work with our law enforcement and regulatory partners nationwide to ensure that rules and regulations under the Controlled Substances Act are followed.”
“Today’s arrest is the result of a joint effort to identify, investigate and prosecute individuals who engage in fraudulent activity and endanger patient health,” stated Special Agent in Charge Leigh-Alistair Barzey, Defense Criminal Investigative Service (DCIS) Northeast Field Office. “DCIS will continue to work with the U.S. Attorney’s Office, District of Massachusetts, and our law enforcement partners, to protect U.S. military members, retirees and their dependents and the integrity of TRICARE, the Defense Department’s healthcare system.”
“As alleged, John Kapoor and other top executives committed fraud, placing profit before patient safety, to sell a highly potent and addictive opioid. EBSA will take every opportunity to work collaboratively with our law enforcement partners in these important investigations to protect participants in private sector health plans and contribute in fighting the opioid epidemic,” said Susan A. Hensley, Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office.
“Once again, the United States Postal Inspection Service is fully committed to protecting our nation’s mail system from criminal misuse,” said Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service. “We are proud to work alongside our law enforcement partners to dismantle high level prescription drug practices which directly contribute to the opioid abuse epidemic. This investigation highlights our commitment to defending our mail system from illegal misuse and ensuring public trust in the mail.”
"We are gratified to have contributed to this investigation and applaud the exceptional work of this investigative team for both protecting patient safety and program costs," said Eileen Neff, Special Agent in Charge of the U.S. Postal Service, Office of Inspector General, Northeast Area Field Office. "Along with our law enforcement partners, the USPSOIG will continue to aggressively investigate those who engage in fraudulent activities intended to defraud federal benefit programs and the Postal Service."
“The U.S. Department of Veterans Affairs, Office of Inspector General will continue to aggressively investigate those that attempt to fraudulently impact programs designed to benefit our veterans and their families,” said Donna L. Neves, Special Agent in Charge of the VA OIG Northeast Field Office.
The charges of conspiracy to commit RICO and conspiracy to commit mail and wire fraud each provide for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000, or twice the amount of pecuniary gain or loss. The charges of conspiracy to violate the Anti-Kickback Law provide for a sentence of no greater than five years in prison, three years of supervised release and a $25,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The investigation was conducted by a team that included the FBI; HHS-OIG; FDA Office of Criminal Investigations; the Defense Criminal Investigative Service; the Drug Enforcement Administration; the Department of Labor, Employee Benefits Security Administration; the Office of Personnel Management; the U.S. Postal Inspection Service; the U.S. Postal Service Office of Inspector General; and the Department of Veterans Affairs. The U.S. Attorney’s Office would like to acknowledge the cooperation and assistance of the U.S. Attorney’s Offices around the country engaged in parallel investigations, including the District of Connecticut, Eastern District of Michigan, Southern District of Alabama, Southern District of New York, District of Rhode Island, and the District of New Hampshire. The efforts of the Central District of California and the Justice Department’s Civil Fraud Section of the Department of Justice are also greatly appreciated.
Assistant U.S. Attorneys K. Nathaniel Yeager, Chief of Weinreb’s Health Care Fraud Unit, and Susan M. Poswistilo, of Weinreb’s Civil Division, are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Former CFO Indicted in Multi-Million Dollar Embezzlement and Laundering SchemeRead the Press Release
BOSTON – The former chief financial officer of two Boston-area companies was indicted yesterday with embezzling over $3 million from his former employers.
Edward J. Abell III, 44, of Gloucester, was indicted on five counts of wire fraud and three counts of money laundering. In October 2017, Abell was charged in a criminal complaint with wire fraud and money laundering.
According to court documents, Abell served as Vice President of Finance and later Chief Financial Officer of a global integrated marketing agency based in Boston. In that capacity, Abell oversaw all aspects of the company’s finances and controlled all corporate bank accounts. It is alleged that between 2006 and his departure in 2016, Abell embezzled over $3.7 million from his employer by writing company checks to Pinehurst Tax Associates – a firm Abell owned. However, Pinehurst allegedly did not provide any services to Abell’s employer. Rather, it is alleged that Abell used Pinehurst as a shell company through which he channeled embezzled funds to personal bank accounts.
In order to avoid detection, Abell allegedly created fake profiles for Pinehurst within his employer’s internal vendor database and attributed all the fraudulent payments to Pinehurst as “Professional Services” in the financial accounting system. Abell also allegedly filed false personal tax returns with the IRS, which failed to report the millions he obtained through Pinehurst.
According to court documents, in late 2016, after he was terminated from the marketing and public relations firm, Abell was hired as CFO of a Boston-based consulting and investment banking firm, where he continued his scheme and embezzled over $140,000.
It is further alleged that Abell laundered the proceeds of his crimes by moving the funds through different personal accounts and by purchasing property and other luxury assets. Previously, the United States obtained seizure warrants for several of Abell’s assets allegedly acquired with fraudulent proceeds. As part of the operation, federal agents seized a 2015 Porsche Macan S, a 2015 Ford F-350 Super Duty, and an E*TRADE brokerage account all owned by Abell or held in his name.
The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss. The maximum sentence of one of the money laundering charges is 20 years in prison, three years supervised release, and a fine of $500,000, or twice the value of the property involved in the transaction. The remaining money laundering charges provide for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000, or twice the value of the criminally derived property. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Field Division; 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. Attorney Jordi de Llano, Deputy Chief of Weinreb’s Economic Crimes Unit, is prosecuting the case.
Captain with Bristol County Sheriff’s Office Indicted for Smuggling Profits to PortugalRead the Press Release
BOSTON – A Captain with the Bristol County Sheriff’s Office was indicted yesterday by a federal grand jury in connection with helping Carlos Rafael, the owner of one of the largest commercial fishing businesses in the U.S., smuggle the profits of his illegal overfishing scheme to Portugal.
Jamie Melo, 45, of North Dartmouth, Mass., was indicted on one count each of bulk cash smuggling, structuring and conspiracy. In August 2017, Melo was arrested and charged in a criminal complaint.
In May 2015, federal agents began an undercover operation targeting Carlos Rafael, the owner of one of the largest commercial fishing businesses in the U.S. In the fall of 2015, undercover agents, posing as potential buyers of Rafael’s business, met with Rafael to negotiate buying his fishing business. Rafael told the agents that he hid the cash proceeds of his illegal fishing sales, in part, by smuggling the money to Portugal. As alleged in court documents, Rafael said that he sometimes took the money himself, but also used the services of others, and referred to knowing several members of the Bristol County Sheriff’s Office, including Melo, whom he described as, “the captain at the prison.”
As alleged, on Nov. 10, 2015, agents conducting surveillance at Logan Airport saw Melo and Rafael arrive in a van, marked as belonging to the Bristol County Sheriff’s Office, for a flight to Portugal. Melo completed TSA screening without incident, but Rafael was found in possession of $26,400, for which he completed a federal reporting form. Several other acquaintances of Rafael and Melo were also on the flight and, allegedly coordinated by Melo, helped Rafael smuggle an additional $50,000 in cash to Portugal. It is further alleged that before the flight, Melo distributed envelopes of cash to these acquaintances, each of whom took an envelope on the flight and returned it to Melo or Rafael after landing in Portugal. Two days later, on Nov. 13, 2015, Portuguese bank records indicate that Carlos Rafael deposited $76,000 in U.S. currency into a Banif Bank account.
The charge of conspiracy provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. The charge of bulk cash smuggling provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. The charge of structuring carries a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $500,000. 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; Gregory K. Null, Special Agent in Charge of the Department of Homeland Security, Office of Inspector General, Office of Investigations, Philadelphia Field Office; 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. Attorney Andrew E. Lelling of Weinreb’s Economic Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Brockton Gang Member Sentenced for Firearms PossessionRead the Press Release
BOSTON – A member of the Flameville Legend Boys gang was sentenced yesterday in federal court in Boston for illegal possession of a firearm.
Caetano Oliveira, 26, of Brockton, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 86 months in prison and three years of supervised release, during which time he is prohibited from affiliating with gang associates. In June 2017, Oliveira pleaded guilty to being a felon in possession of a firearm and ammunition.
In July 2016, law enforcement launched an investigation into a suspected Brockton drug dealer, with whom Oliveira lived. On Aug. 5, 2016, during a search of the suspect’s apartment, law enforcement seized drug trafficking paraphernalia and heroin as well as two loaded handguns – a Sig Sauer 9mm Magnum and a Taurus .40 caliber pistol – and ammunition, which were recovered in Oliveira’s bedroom. Oliveira admitted to law enforcement officers that the firearms were his.
According to court documents, Oliveira was previously convicted of several firearm and drug offenses. In 2010, Oliveira was sentenced to two 18-month jail sentences after being convicted in state court of illegal gun possession and possession with intent to distribute cocaine. In 2013, Oliveira pleaded guilty to assault with a dangerous weapon for ordering an associate to open fire on a car in which two undercover police officers were meeting with a witness, who was one of Oliveira’s rivals.
Acting United States Attorney William D. Weinreb and Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division made the announcement. Assistant U.S. Glenn MacKinlay, Chief of Weinreb’s Organized Crime and Gang Unit, prosecuted the case.
Brazilian National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON - A Brazilian national charged with an immigration crime pleaded guilty and was sentenced today in federal court in Boston.
Henrique Ortmayer, 23, a Brazilian national residing in Boston, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. District Court Judge Indira Talwani sentenced Ortmayer to time served (approximately five months) and three years of supervised release, with the first six months to be spent in a community residential reentry program. Ortmayer will be subject to deportation upon completion of the sentence imposed.
In 2014, Ortmayer was convicted of heroin distribution in Salem District Court. Upon completion of his sentence, Ortmayer was placed into removal proceedings, and on Nov. 16, 2015, he was deported to Brazil.
In April 2017, Ortmayer was encountered by police and arrested on open state warrants. Ortmayer’s fingerprints revealed he was in the United States illegally having been previously deported in November 2015.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. The Danvers Police Department assisted with the investigation. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit prosecuted the case.
Supervisory Pharmacist of New England Compounding Center Convicted of Racketeering Leading to Nationwide Fungal Meningitis OutbreakRead the Press Release
BOSTON – Glenn Chin, the supervisory pharmacist of New England Compounding Center (NECC) was convicted today by a federal jury of racketeering, racketeering conspiracy, mail fraud, and false labeling in connection with the 2012 nationwide fungal meningitis outbreak.
After a five-week trial, the jury convicted Glenn Chin, 49, of Canton, Mass., of racketeering, racketeering conspiracy, mail fraud and introduction of misbranded drugs into interstate commerce with the intent to defraud and mislead. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Jan. 30, 2018.
“Mr. Chin ran NECC’s clean room operations with depraved disregard for human lives,” said Acting U.S. Attorney William D. Weinreb. “As a licensed pharmacist, Mr. Chin took an oath to protect patients, but instead deliberately violated safety regulations, causing the largest public health crisis caused by a pharmaceutical drug in U.S. history. Time and time again, Mr. Chin made dangerous decisions: he decided to cut corners, to improperly sterilize and test drugs, to mislabel drugs, to skip cleanings and ignore contamination in the clean rooms, and to endanger patients’ lives. Now, the jury has found that Mr. Chin must be held accountable for the consequences of his decisions. I want to express my profound gratitude to the victims and survivors for supporting the five-year investigation and prosecution of this case. I also want to acknowledge the tireless commitment of the trial team, whose perseverance has brought us one step closer to a just conclusion.”
“We’ve seen the tragic impact poorly compounded drugs can have on patients. Above all else, we must continue to make protecting the public health a top priority by doing all we can to ensure that the compounded drugs that patients rely on are of high quality,” said FDA Commissioner Scott Gottlieb, M.D. “No patient should suffer harm or be put at risk because of poorly compounded drugs. The FDA will continue to prioritize implementing the Drug Quality and Security Act in a way that encourages compounders to adhere to new safeguards, and the agency will take aggressive action against those who put patients at risk by violating the law.”
“Today’s verdict holds Glenn Chin responsible for his role in one of the largest public health crises in this country’s history. Mr. Chin gambled with patients’ lives by cutting corners and ignoring the warning signs that his production methods were unsafe. Hundreds of patients were unnecessarily harmed from his reckless disregard for health and safety regulations,” said Harold H. Shaw, Special Agent in Charge, FBI Boston Division. “We’ll continue to keep the victims and families of this deadly outbreak in our prayers, and the FBI, along with our law enforcement partners, will do everything in our power to combat fraudulent and abusive health care practices.”
In 2012, 753 patients in 20 states were diagnosed with a fungal infection after receiving injections of preservative-free methylprednisolone acetate (MPA) manufactured by NECC. Of those 753 patients, the U.S. Centers for Disease Control and Prevention (CDC) reported that 64 patients in nine states died.
Chin manufactured the three lots of the contaminated MPA, which comprised more than 17,000 vials of medication. In doing so, Chin ignored NECC’s own drug formulation worksheets and standard operating procedures. Specifically, he sterilized the MPA substantially less than what the recipe required and failed to validate or verify the sterilization process at all. Despite knowing these deficiencies, Chin directed the MPA to be filled into thousands of vials and shipped to NECC customers nationwide. Further, as the supervising pharmacist who oversaw all of NECC’s drug compounding operations, Chin directed the shipping of drugs prior to receiving test results confirming their sterility and directed pharmacy technicians to mislabel drugs to conceal this practice. He also directed the compounding of drugs with expired ingredients, including chemotherapy drugs that had expired several years prior. Chin prioritized drug production over cleaning, directed the forging of cleaning logs, and routinely ignored mold and bacteria found inside the clean rooms. Lastly, for more than three years, Chin, along with co-conspirators, utilized a pharmacy technician whose license had been revoked by the Massachusetts Board of Pharmacy to compound highly sensitive cardiac drug solutions, and took steps to conceal the technician’s presence inside the clean room from state regulators.
“The health and safety of U.S. military members, retirees and their dependents is a top priority for the Defense Criminal Investigative Service (DCIS),” stated Special Agent-in-Charge Leigh-Alistair Barzey, DCIS Northeast Field Office. “Today’s verdict demonstrates DCIS’ ongoing commitment to work with the USAO-MA and its law enforcement partners to identify, investigate and prosecute individuals who endanger the public by disregarding pharmaceutical regulations and safety protocols.”
“Today’s conviction is another important step in holding those accountable who put public health at risk.” said Special Agent in Charge Donna L. Neves, U.S. Department of Veterans Affairs, Office of Inspector General. “The VA Office of Inspector General will continue to work diligently with our law enforcement partners to ensure veterans receiving care at VA medical centers receive safe and unadulterated medications.”
“Today’s verdict in Glenn Chin's trial reflects the hard work of law enforcement agencies and the Department of Justice who are committed to keeping the American public safe,” said Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division. “Chin’s conviction cannot undo the harm that was caused in the nation's largest public health crisis resulting from a pharmaceutical product but it can show that those responsible will be held accountable for their actions.”
Chin faces a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 and restitution on each count of the racketeering, racketeering conspiracy and mail fraud charges. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney William D. Weinreb; Jeffrey Ebersole, Special Agent in Charge of the U.S. Food and Drug Administration, Office of Criminal Investigations’ New York Field Office; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Leigh-Alistair Barzey, Special Agent in Charge of the Defense Criminal Investigative Service, U.S. Department of Defense, Office of Inspector General, Northeast Field Office; Donna Neves, Special Agent in Charge of the Department of Veterans Affairs, Office of Inspector General, Northeast Field Office; and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. Assistant U.S. Attorneys George P. Varghese and Amanda P.M. Strachan of Weinreb’s Health Care Fraud Unit are prosecuting the case.
Peabody Man Pleads Guilty to Possessing Child PornographyRead the Press Release
BOSTON – A Peabody man pleaded guilty today in federal court in Boston to possessing child pornography, including images and videos of infants and toddlers being sexually abused.
Daniel Baldwin, 26, pleaded guilty to one count of possession of child pornography. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Jan. 25, 2018.
Following an investigation into the online trade of child pornography through peer to peer networks, federal agents executed a search warrant at Baldwin’s home in Peabody on April 4, 2017, where they seized digital devices containing approximately 1500 videos containing child pornography. Baldwin is a Level 2 sex offender based on a 2013 Massachusetts state conviction for possession of child pornography.
The charge provides for a mandatory minimum sentence of 10 years and up to 20 years in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
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 was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and 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/.
Leominster Man Sentenced for Dealing Heroin and CocaineRead the Press Release
BOSTON – A Leominster man was sentenced today in federal court in Worcester for his role in a drug trafficking conspiracy.
Felix Melendez, 41, was sentenced by U.S. District Court Judge Timothy S. Hillman to 70 months in prison and four years of supervised release. In May 2017, Melendez and four co-defendants pleaded guilty to conspiracy to distribute heroin and cocaine in Worcester County.
In the late summer of 2014, federal agents began investigating the narcotics trafficking activities of Osvaldo Vasquez and his associates, Melendez, Jose Federico Vasquez, Elvis Genao, and Hugo Santana-Dones. Between November 2014 and July 2015, with the help of a cooperating witness, agents made numerous recorded purchases of heroin - sometimes laced with fentanyl - from members of the conspiracy, seizing over 400 grams of heroin as a result. Search warrants executed at the various defendants’ residences led to the seizure of over a kilogram of heroin and cocaine along with a loaded firearm.
During the controlled purchases, Melendez was recorded distributing well over 100 grams of heroin to a government cooperator in July 2015. Intercepted wiretaps between April and July 2015 also captured Melendez discussing the delivery and sale of over two kilograms of narcotics.
Santana-Dones was sentenced on Sept. 6, 2017, to 80 months in prison and will be subject to deportation hearings upon completion of his sentence; Federico Vasquez was sentenced on Sept. 18, 2017, to five years in prison and will be subject to deportation hearings upon completion of his sentence; Genao was sentenced on Sept. 19, 2017, to 37 months in prison; and Osvaldo Vasquez is scheduled to be sentenced on Nov. 3, 2017.
Acting United States Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Worcester Police Chief Steven M. Sargent; Fitchburg Police Chief Ernest F. Martineau; and Leominster Interim Police Chief Michael Goldman made the announcement today. Assistant U.S. Attorney Mark J. Grady of Weinreb’s Worcester Branch Office is prosecuting the cases.
Lawrence Man Pleads Guilty to Cocaine ConspiracyRead the Press Release
BOSTON – A Lawrence man pleaded guilty today in federal court in Boston to his role in a cocaine conspiracy.
Juan Ulfany Mateo Soto, 38, pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine and one count of conspiracy to attempt to possess with intent to distribute cocaine. In December 2016, Mateo Soto was arrested and charged along with five co-defendants. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Jan. 31, 2018.
On Oct. 27, 2016, Mateo Soto arranged to obtain six kilograms of cocaine from another defendant. Officers observed the transaction, and subsequently stopped Mateo Soto as he drove away. Mateo Soto did not have a valid driver’s license, so officers towed the vehicle. After the vehicle was towed, Mateo Soto and other defendants attempted to retrieve the drugs from the car, first as it was being towed, and later at the tow yard.
Mateo Soto is the third defendant to plead guilty. Angel Torres Leon pleaded guilty in June and is scheduled to be sentenced on Nov. 9, 2017. Angel Figueras pleaded guilty in July 2017 and is scheduled to be sentenced on Nov. 8, 2017.
Each of the conspiracy and attempt charges provides for a sentence of no greater than 20 years in prison, a minimum of three years and a maximum of lifetime of supervised release and a fine of up to $1 million . Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William Weinreb; Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Susan Winkler of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Air Force Member Sentenced for Child Pornography OffensesRead the Press Release
BOSTON – A former Air Force staff sergeant was sentenced yesterday in federal court in Boston for receiving and possessing child pornography depicting prepubescent girls engaged in sex acts with men.
John Tran, 30, of Waltham, was sentenced by U.S. District Court Chief Judge Patti B. Saris to five years in prison and five years of supervised release. On March 23, 2017, Tran pleaded guilty to one count of possession of child pornography and one count of receipt of child pornography.
Tran was arrested on Nov. 16, 2015, at his home in Waltham after law enforcement officers executed a federal search warrant at his residence and found child pornography on his computer. Tran used his computer to access child pornography websites known by federal authorities. Investigators became aware of Tran’s illegal activities while monitoring the specific website used by Tran. In their search, investigators found 11 videos containing child pornography and a number of still images of child pornography on Tran’s computer.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Waltham Police Chief Keith MacPherson made the announcement today. Assistant U.S. Attorney David G. Tobin of Weinreb’s Major Crimes Unit prosecuted the case.
U.S. Attorney’s Office Hosts Conference Addressing Hate Speech in K-12 SchoolsRead the Press Release
BOSTON – The U.S. Attorney’s Office hosted a conference yesterday aimed at bringing together educators, school administrators, advocates, and community members to learn and share ideas about preventing and effectively responding to hate speech in K-12 schools in Massachusetts.
“Preventing and responding to hate speech in our schools is essential to ensuring equal educational opportunities for youth in Massachusetts,” said Acting U.S. Attorney William D. Weinreb. “All young people have a right to learn in a safe and welcoming environment that fosters respect for diversity and nurtures healthy development.”
The full day conference, “Hate Speech in K-12 Schools: Prevention and Response,” was organized by Weinreb’s Civil Rights Unit and held at the College of the Holy Cross in Worcester. The conference brought together a diverse audience of over 200 educators, school resource officers, school administrators, advocates, and community members from across Massachusetts for a series of panels and plenary sessions about addressing hate speech in Massachusetts schools.
Keynote speaker Maureen Costello, the Director of Teaching Tolerance at the Southern Poverty Law Center, spoke about the importance of addressing bias in schools. “Thanks to media coverage of hate speech incidents and the use of modern technology to bully or harass, we are more aware than ever of what vulnerable children face in school, and we have a profound responsibility to ensure that our schools are inclusive and free from bias,” she said. According to keynote speaker Steve Wessler, a Human Rights Educator & Advocate, “The impact [of hate speech] on students includes damage to their physical and mental health as well as to their ability to succeed in school. Additionally, degrading language can escalate from words to violence when no one speaks up for civility and respect.”
The sessions covered a variety of topics including how to address the needs of vulnerable populations who are disproportionately victimized by hate speech and how to prevent hate speech and harassment online and through social media. One panel shared best practices in prevention programs and how to create and maintain positive and welcoming school environments. A panel of legal experts also discussed the legal obligations of schools with respect to harassment and hate speech, including First Amendment protections that apply to students in schools, and when hate speech becomes a hate crime.
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.
Operators of Millbury Plumbing Business Charged with Drug ConspiracyRead the Press Release
BOSTON – The operators of a family-owned business in Millbury were arrested and charged in federal court in Worcester with using their business to cover up a drug conspiracy.
Thomas Laverty, 37, of Clinton; Charles Laverty, 60, of Millbury; and Andrea Laverty, 61, of Millbury, were charged yesterday by federal criminal complaint with one count of conspiring to manufacture and distribute marijuana. Charles Laverty and Andrea Laverty were arrested today, and Thomas Laverty is currently in state custody.
It is alleged that Andrea, Charles, and their son, Thomas, used their business, Chuck Laverty & Son Inc., as a front for a large-scale, commercial marijuana cultivation and distribution operation. Laverty & Son vehicles, bank accounts, and locations were used to facilitate drug manufacturing, storage, and distribution.
On Oct. 17, 2017, law enforcement officers executed two search warrants: one at Laverty and Sons’ business warehouse in Clinton, which is attached to Thomas Laverty’s residence, where agents found a commercial-style marijuana grow operation, including more than 1,000 plants; and another at the residence of Charles and Andrea Laverty in Millbury, where agents found a large quantity of marijuana being dried and processed, as well as another marijuana grow operation.
It is further alleged that significant cash deposits were made into bank accounts controlled by Thomas Laverty and Andrea Laverty. For example, during one week in January 2017, approximately $12,100 in cash was deposited into Thomas Laverty’s bank account; these funds were then used to pay private school tuition and to make payments on multiple cars. In addition, in May 2017, Andrea Laverty used $28,000 derived from cash deposits as a down payment on an $80,000 2017 Chevrolet Corvette.
Thomas Laverty faces a sentence of no greater than 10 years in prison, a minimum of four years and up to a lifetime of supervised release, and a fine of $500,000. Charles Laverty and Andrea Laverty each face 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.
Acting United States Attorney William D. Weinreb; Michael 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. Assistant U.S. Attorney William F. Abely of Weinreb’s Worcester Branch Office is prosecuting the case.
The details contained in the complaint are allegations. The defendants are each presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Leominster Man Sentenced for Distributing OxycodoneRead the Press Release
BOSTON – A Leominster man was sentenced yesterday in federal court in Worcester for distributing Oxycodone pills and possessing two loaded guns.
Alexander Dufault, 23, was sentenced by U.S. District Court Judge Timothy S. Hillman to 30 months in prison and three years of supervised release. On Dec. 6, 2016, Dufault pleaded guilty to one count of conspiring to distribute Oxycodone and one count of attempt to possess with intent to distribute Oxycodone.
For roughly 18 months in 2015 and 2016, Dufault participated in a conspiracy to buy and sell Oxycodone pills in the Leominster area. This conspiracy was responsible for the distribution of more than 12,000 Oxycodone 30 mg. pills. Dufault was arrested in April 2016 while en route to meet a cooperating defendant, whom Dufault believed was going to sell him 800 Oxycodone 30 mg. pills. At the time of his arrest, Dufault had in his possession $19,200, which was the agreed-upon purchase price for the pills. After Dufault’s arrest, officers executed a search warrant at Dufault’s residence where they seized $66,320 in cash from a safe in Dufault’s bedroom, a loaded .40 caliber firearm that was also inside the safe and a loaded .22 caliber long rifle from Dufault’s bedroom.
Two other individuals were previously convicted and sentenced in connection with this investigation. On Aug. 24, 2016, Joseph Waterhouse, 75, of Pepperell, was sentenced to time-served and three years of supervised release, with the first year to be served in home confinement. On Dec. 19, 2016, Curtis Boisseau, 31, of Ayer, was sentenced to a year and a day in prison and three years of supervised release.
Acting United States Attorney William D. Weinreb; Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Townsend Police Chief Richard B. Bailey; and Arlington Police Chief Frederick Ryan made the announcement today. Assistant U.S. Attorney James E. Arnold of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.
Former Attorney Sentenced for Mortgage FraudRead the Press Release
BOSTON – A disbarred Massachusetts attorney was sentenced today in federal court in Boston for defrauding mortgage companies in connection with multiple mortgages she obtained on a single residence.
Margaret Connolly, 62, of Scituate, was sentenced by U.S. District Court Judge Leo T. Sorokin to two years in prison, three years of supervised and ordered to pay $1,267,000 in restitution. In June 2016, Connolly pleaded guilty to three counts of bank fraud.
From May 2005 to May 2008, Connolly fraudulently obtained multiple mortgage loans on her Scituate residence from different banks in amounts ranging from $465,000 to $648,000 by submitting false information regarding her employment history, income, assets, and debt. Connolly also submitted false title reports, prepared by her own company, to fraudulently represent to the lenders that the property was free and clear of liens from pre-existing, unpaid mortgage loans. In fact, Connolly successively placed mortgage loans aggregating $2,025,000 on the same property without paying off the existing mortgages as she fraudulently represented to lenders. In 2007, Connolly was disbarred.
Acting United States Attorney William D. Weinreb; Steven Perez, Special Agent in Charge of the Federal Housing Finance Agency, Office of Inspector General, Northeast Region; and Christy Goldsmith Romero, Special Inspector General for the Office of the Special Inspector General for the Troubled Asset Relief Program, made the announcement today. Assistant U.S. Attorney Victor A. Wild of Weinreb’s Economic Crimes Unit prosecuted the case.
Fall River Man Pleads Guilty to Distributing Heroin and FentanylRead the Press Release
BOSTON – A Fall River man pleaded guilty today in federal court in Boston to his role in a heroin and fentanyl trafficking organization that operated in Taunton and Boston.
Malvin Berrios, 35, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute heroin and fentanyl. In February 2017, Berrios was arrested and charged along with 22 other co-defendants. U.S. District Court Judge Indira Talwani scheduled sentencing for Dec. 22, 2017.
From mid-2016 through February 2017, federal law enforcement investigated two drug trafficking organizations operating in Taunton and Boston led by Jose Antonio Lugo-Guerrero, 32, a Dominican national, and Fernando Hernandez, 42, a Dominican national residing in Providence, R.I. Hernandez allegedly ran a heroin and fentanyl trafficking organization in Taunton. The organization sold heroin and fentanyl to customers who re-distributed a portion of the drugs they obtained. It is alleged that Hernandez obtained drugs from a network of suppliers that included Lugo-Guerrero.
Lugo-Guerrero allegedly operated a drug trafficking organization in Fall River and Boston and sold to numerous customers, including Berrios. It is further alleged that Lugo-Guerrero and his associates obtained a significant quantity of illegal drugs by robbing other drug traffickers.
Berrios is the sixth defendant to plead guilty. Hernandez and Lugo-Guerrero each pleaded not guilty and are awaiting trial.
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 $1 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 Weinreb; Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Fall River Police Chief Daniel S. Racine; New Bedford Police Chief Joseph C. Cordeiro; Taunton Police Chief Edward James Walsh; Boston Police Commissioner William B. Evans; and Bristol Country District Attorney Thomas M. Quinn made the announcement today. Assistant U.S. Attorney Ted Heinrich of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Men Plead Guilty to Fentanyl Trafficking ChargesRead the Press Release
BOSTON – Two men pleaded guilty today in federal court in Boston to their roles in a widespread heroin and fentanyl trafficking conspiracy operating in Lawrence.
Victor Alexander Gonzalez-Gonzalez, 24, a Dominican national residing in Lawrence, and Carlos Hernandez, a/k/a Gordo, 34, of Manchester, N.H., each pleaded guilty to one count of conspiracy to possess with intent to distribute heroin, cocaine and fentanyl. U.S. Senior District Court Judge Douglas P. Woodlock scheduled sentencing for Gonzalez-Gonzalez for Jan. 25, 2018, and U.S. District Court Judge Denise L. Casper scheduled Hernandez’ sentencing for Jan. 23, 2018.
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 conducted a drug sweep in order to dismantle two Lawrence-based drug trafficking organizations, one allegedly run by Juan Anibal Patrone, and another allegedly led by Santo Ramon Gonzalez-Nival, who was also a source of supply for Patrone. Gonzalez-Gonzalez and Hernandez were arrested and charged along with Patrone, Gonzalez-Nival, and approximately 30 co-conspirators.
Gonzalez-Gonzalez was a courier for the Patrone organization. When search warrants were executed at his residence, law enforcement officers seized over 400 grams of fentanyl. In addition, law enforcement intercepted thousands of calls between Gonzalez-Gonzalez and Patrone, where Patrone directed him to deliver drugs to customers, and Gonzalez-Gonzalez delivered back to Patrone the money he received from customers.
Hernandez was a redistributor in New Hampshire for the Gonzalez-Nival organization. He was arrested on Feb. 25, 2017, after picking up 12 10-gram units from Gonzalez-Nival’s courier. During a traffic stop shortly thereafter, approximately 120 grams of suspected fentanyl was seized from Hernandez and his passenger, co-defendant Rory Connolly.
Thus far, seven defendants associated with the conspiracy, including Gonzalez-Gonzalez and Hernandez, have pleaded guilty. Patrone, Gonzalez-Nival, and Connolly have pleaded not guilty and are awaiting trial.
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. Gonzalez-Gonzalez will be subject to deportation proceedings upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Michal J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Essex County District Attorney Jonathan W. Blodgett; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Lawrence Police Chief James Fitzpatrick made the announcement today. The DEA Cross Border Initiative comprised of the DEA and the Andover, Haverhill, Lawrence, Lowell, and Wilmington Police Departments, conducted the investigation jointly with the Massachusetts State Police. Assistant U.S. Attorney Susan Winkler of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the cases.
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.
Southbridge Man Sentenced for Distributing OxycodoneRead the Press Release
BOSTON – A Southbridge man was sentenced today in federal court in Worcester for dealing prescription opioids.
Hector Espola, 30, was sentenced by U.S. District Court Judge Timothy S. Hillman to four years in prison and three years of supervised release. In June 2017, Espola pleaded guilty to one count of possession with intent to distribute oxycodone.
On two occasions in July and August 2016, Espola sold 300 oxycodone pills to an individual cooperating with investigators. Espola was arrested on Feb. 17, 2017, in Massachusetts on a federal arrest warrant as he returned from New York City. Upon his arrest, agents found Espola in possession of another 300 oxycodone pills.
Acting United States Attorney William D. Weinreb; Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Southbridge Police Chief Shane Woodson made the announcement today. Assistant U.S. Attorney Greg A. Friedholm of Weinreb’s Worcester Branch Office prosecuted the case.
New Bedford Man Pleads Guilty to Distributing FentanylRead the Press Release
BOSTON – A New Bedford man pleaded guilty today in federal court in Boston to distributing fentanyl, a deadly synthetic opioid.
Willy Baez, 24, pleaded guilty to one count of possession with intent to distribute fentanyl. U.S. Senior District Court Judge Douglas P. Woodlock deferred acceptance of the plea until the sentencing hearing, which he scheduled for Feb. 1, 2018.
On Dec. 21, 2015, law enforcement officers executed a search warrant at the apartment Baez shared with his girlfriend. The search resulted in the seizure of 49 grams of fentanyl and acetyl fentanyl, as well as various drug packaging paraphernalia.
Baez faces 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. 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 New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Assistant U.S. Attorney Katharine Ferguson of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
MS-13 Member Pleads Guilty to RICO ConspiracyRead the Press Release
BOSTON – An MS-13 member pleaded guilty on Friday, Oct. 20, 2017, in federal court in Boston to racketeering conspiracy.
Henry Santos Gomez, a/k/a “Renegado,” 32, a Salvadoran national who resided in Revere, 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 Jan. 16, 2018.
Santos Gomez was identified as a “homeboy,” or full member of MS-13’s Hollywood Loco Salvatrucha (HLS) clique. During the investigation, agents encountered Santos Gomez wearing MS-13 paraphernalia, secretly recorded conversations with Santos Gomez where he offered to provide protection to a cooperating witness who he believed was a drug dealer, and stopped Santos Gomez in the company of other MS-13 gang members.
After a three-year investigation, Santos Gomez was one of 61 persons named in a superseding indictment targeting the criminal activities of alleged leaders, members, and associates of MS-13 in Massachusetts. According to court documents, MS-13 was identified as a violent transnational criminal organization whose branches or “cliques” operate throughout the United States, including in Massachusetts. MS-13 members are required to commit acts of violence to maintain membership and discipline within the group. Specifically, MS-13 members are required to attack and murder gang rivals whenever possible.
Santos Gomez is the 21st defendant to plead guilty in this case.
According to the terms of the plea agreement, the parties agreed to recommend a sentence of six years in prison. Santos Gomez will be subject to deportation at the conclusion of his sentence.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Richard D. McKeon, 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 Joseph Cafarelli; and Somerville Police Chief David Fallon made the announcement.
The details contained in the charging documents are allegations. All remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Guatemalan National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON – A Guatemalan national charged with a federal immigration crime pleaded guilty and was sentenced today in federal court in Boston.
Enrique Gonzalez-Francisco, 47, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. District Court Judge F. Dennis Saylor IV sentenced Gonzalez-Francisco to four months in prison and two years of supervised release. Gonzalez-Francisco will face deportation proceedings after serving his sentence.
On April 21, 2017, law enforcement officers in Boston encountered Gonzalez-Francisco and determined him to be illegally present in the United States. Gonzalez-Francisco was previously deported on Dec. 19, 2008, and July 25, 1998.
Acting United States Attorney William D. Weinreb and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney David G. Tobin of Weinreb’s Major Crimes Unit prosecuted the case.
Taunton Woman Sentenced for Social Security and Housing Assistance FraudRead the Press Release
BOSTON – A Taunton woman was sentenced today in federal court in Boston for concealing information and making false statements in order to receive Social Security disability benefits and Section 8 housing assistance to which she was not entitled.
Marisha Ebanks, 41, was sentenced by U.S. District Court Judge Allison D. Burroughs to four months in prison, three years of supervised release, with the first three months to be served in home confinement, and ordered to pay restitution of $178,722. In June 2017, Ebanks pleaded guilty to one count of Supplemental Security Income fraud and one count of making false statements.
In 1999, Ebanks began receiving housing assistance payments from the United States Department of Housing and Urban Development’s Section 8 Housing Choice Voucher Program; and in January 2003, she began receiving Supplemental Security Income (SSI) disability benefits from the Social Security Administration (SSA). Eligibility for both Section 8 housing and SSI is based, in part, on the applicant having limited income and resources. In assessing a married individual’s eligibility for these benefits, the income of the applicant’s spouse is considered if they live together.
When Ebanks applied for SSI benefits in September 2002, she truthfully reported that she was married, but falsely stated that she and her husband did not live together, when, in fact, she and her husband were living together with their two children. SSA sent Ebanks annual reminders of her obligation to report any changes in her household composition, including any change in income of any household member, but Ebanks concealed her husband’s true residence. During an eligibility redetermination with SSA in October 2010, Ebanks continued to report that she was married, but falsely stated her husband was not a member of her household.
Similarly, in May 2002, in order to continue receiving Section 8 housing, Ebanks falsely reported that her husband had moved out of her residence. She repeatedly omitted her husband from the list of household members on recertification questionnaires in subsequent years, and she falsely stated that no member of her family received income from any employment, even though her husband was working.
Ebanks fraudulently received approximately $70,655 in disability benefits and $108,067 in Section 8 housing assistance benefits.
Acting United States Attorney William D. Weinreb; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of the Inspector General, Northeast Regional Office, made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Weinreb’s Major Crimes Unit prosecuted the case.
Springfield Man Pleads Guilty to Federal Firearms ChargesRead the Press Release
BOSTON – A Springfield man pleaded guilty today in federal court in Springfield to unlawfully possessing firearms.
Kenneth Finch Jr., 30, pleaded guilty to two counts of being a convicted felon in possession of a firearm before U.S. District Court Judge Mark G. Mastroianni. Sentencing is scheduled for Jan. 18, 2018. Finch has a prior felony conviction in North Carolina for being a felon in possession of a firearm.
In June 2015, law enforcement received information that Finch was a source for firearms in the Springfield area. On June 3, 2015, Finch sold a Ruger Model P-90 .45 caliber pistol and six rounds of .45 caliber ammunition to two undercover officers in exchange for $1,200. Finch was later arrested on May 12, 2016, and charged. The following day, Finch called his girlfriend from jail and directed her to a firearm that he had concealed in her apartment. Law enforcement later recovered a Duetsche Werke 7.65 mm caliber pistol from Finch’s girlfriend at her apartment in Springfield. On Nov. 10, 2016, Finch was charged with an additional count of being a felon in possession of a firearm.
Acting United States Attorney William D. Weinreb and Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. Assistant U.S. Attorney Katharine A. Wagner of Weinreb’s Springfield Branch Office is prosecuting the case.
MS-13 Member Pleads Guilty to RICO Conspiracy Involving Murder & Attempted MurderRead the Press Release
BOSTON – An MS-13 member pleaded guilty yesterday in federal court in Boston to racketeering conspiracy involving murder, attempted murder and conspiracy to commit murder.
Bryan Galicia Barillas, a/k/a “Chucky,” 20, a Guatemalan national who resided in Chelsea, 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 Jan. 12, 2018.
On Oct. 18, 2014, Galicia Barillas, a member of MS-13’s Enfermos Criminales Salvatrucha (ECS) clique in Chelsea, and another alleged MS-13 co-conspirator encountered a group of individuals suspected of belonging to a rival gang. The co-conspirator, who was allegedly armed with a weapon that Galicia Barillas provided to him, shot at one of the gang rivals and missed, killing an innocent bystander who was looking out a nearby window of a room she shared with her three children.
Galicia Barillas, a juvenile at the time of the murder, acknowledged that he provided the gun to the co-conspirator before the shooting and was present during the shooting. The co-conspirator previously pleaded not guilty and is scheduled to go to trial on Nov. 6, 2017.
Galicia Barillas also accepted responsibility for his role in the following: an April 2015 conspiracy to kill a MS-13 member that the gang believed was cooperating with law enforcement authorities; a May 26, 2015 stabbing and attempted murder of a rival gang member in Chelsea in which the victim survived the attack; and a September 8, 2014 stabbing and attempted murder of an individual in Chelsea.
After a three-year investigation, Galicia Barillas was one of 61 persons named in a superseding indictment targeting the criminal activities of alleged leaders, members, and associates of MS-13 in Massachusetts. According to court documents, MS-13 was identified as a violent transnational criminal organization whose branches or “cliques” operate throughout the United States, including in Massachusetts. MS-13 members are required to commit acts of violence to maintain membership and discipline within the group. Specifically, MS-13 members are required to attack and murder gang rivals whenever possible.
Galicia Barillas is the 20th defendant to plead guilty in this case.
If the Court accepts the terms of the plea agreement at the time of sentencing, Galicia Barillas will be sentenced to 22 years in prison. Galicia Barillas will also 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; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Richard D. McKeon, 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 Joseph Cafarelli; and Somerville Police Chief David Fallon made the announcement.
The details contained in the charging documents are allegations. All remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Georgia Man Pleads Guilty to Defrauding Staples Inc.Read the Press Release
BOSTON – A Georgia man pleaded guilty 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, pleaded guilty to one count of conspiracy to commit wire fraud and mail fraud. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Jan. 10, 2018.
Gosnell previously pleaded guilty on Sept. 26, 2017, but the Court conducted a second plea hearing today, 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.
The charge of conspiracy to commit wire and mail fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss from the offense, whichever is greater. 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; 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 Weinreb’s Cybercrime Unit is prosecuting the case.
Former Principals of Vehicle Financing Company Sentenced for Fraud ChargesRead the Press Release
BOSTON – The founders and principals of Inofin Inc., a shuttered motor vehicle finance company based in Rockland, Mass., were sentenced today on fraud charges in connection with soliciting investments that resulted in losses of over $11 million to investors.
Michael J. Cuomo, 55, of Plymouth, and Kevin J. Mann Sr, 67, of Marshfield, were sentenced by U.S. District Court Judge Indira Talwani to 48 months in prison and 42 months in prison, respectively, and three years of supervised release. In May 2017, they pleaded guilty to one count of conspiracy to commit mail and wire fraud, three counts of mail fraud, and one count of wire fraud.
From 1994 through February 2011, Cuomo and Mann owned and operated Inofin, which funded loans to used car buyers who could not qualify for traditional financing. In order to fund Inofin’s operations, Cuomo and Mann raised capital by securing investments from dozens of individuals. They falsely represented that the investors could rollover money held in retirement plans to Inofin, and that Inofin, as an authorized custodian of retirement money, would invest and then return the principle with interest. In fact, at no point was Inofin an authorized custodian, or trustee, of retirement funds. As a result of these misrepresentations by Cuomo and Mann, Inofin investors suffered a loss of more than $10 million in retirement savings transferred to Inofin. Inofin ultimately entered into involuntary bankruptcy proceedings.
Acting United States Attorney William D. Weinreb; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The U.S. Securities and Exchange Commission also provided assistance with the investigation. Assistant U.S. Attorneys Vassili Thomadakis and Victor A. Wild of Weinreb’s Criminal Division prosecuted the case.