District of Massachusetts

BOSTON – A Saugus loan broker pleaded guilty yesterday in federal court in Boston to operating a scheme that defrauded small businesses from across the country in connection with their efforts to obtain business loans.

Joseph L. Angelo Jr, 59, pleaded guilty to 11 counts of wire fraud. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for Nov.29, 2017.

From November 2011 to March 2015, Angelo defrauded 10 small business owners of more than $1 million by representing that his companies – Lease One Corp. and Palmtree Finance & Funding LLC – were brokers for obtaining loans for small businesses. Angelo required the customers to deliver to him what he said were fully refundable deposits, aggregating over $1.1 million, for loans that he said had been approved and would be funded within a few days. In fact, none of the loans had been approved and there were no funds available. When the small business owners complained about delays in receiving funds, Angelo promised that their deposits would be refunded, but he did not refund any of the deposits or secure funding for any of the requested loans.

The charging statute provides for a sentence of no greater than 20 years in prison, five years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement. The case is being prosecuted by Assistant U.S. Attorney Victor A. Wild of Weinreb’s Economic Crimes Unit.

BOSTON – A Tampa, Fla., man pleaded guilty today in federal court in Springfield to distributing cocaine.

Angel Martinez, 39, pleaded guilty today to distributing cocaine in Springfield on May 19, 2015. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Nov. 30, 2017.

The charge of distribution of cocaine provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Katharine A. Wagner of Weinreb’s Springfield Branch Office is prosecuting the case.

BOSTON – A Dracut man was arrested and indicted yesterday on sex trafficking charges.

Reginald Abraham, 46, was indicted on three counts of sex trafficking by force, fraud or coercion. He was arrested yesterday and detained following an initial appearance in federal court in Boston today.

According to the indictment, at varying times between May 2015 and October 2016, Abraham trafficked three women in Massachusetts and Rhode Island, and used force and threats of force to coerce the women to engage in prostitution.

The charge of sex trafficking provides for a mandatory minimum sentence of 15 years and a maximum sentence of life in prison, five years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney William D. Weinreb; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Miranda Hooker of Weinreb’s Civil Rights Enforcement Team is prosecuting the case.

The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – A Colombian national was sentenced today in federal court in Boston for a federal immigration crime.

Dorance Serna-Bedoya, 50, was sentenced today by U.S. District Court Judge George A. O’Toole Jr. to 27 months in prison and three years of supervised release. Serna-Bedoya will be subject to deportation proceedings upon completion of his sentence. In May 2017, Serna-Bedoya pleaded guilty to unlawful reentry of a deported alien.

In 1993, Serna-Bedoya was convicted in Suffolk Superior Court of distribution of cocaine, and was sentenced to 10-11 years in jail. While serving the Suffolk Superior Court sentence, Serna-Bedoya was convicted in U.S. District Court for the Northern District of New York of drug distribution and sentenced to 30 additional months in jail. Upon completion of these sentences, Serna-Bedoya was placed into removal proceedings and on Jan. 6, 2006, he was deported to Colombia. On Oct. 25, 2016, Serna-Bedoya was arrested in Massachusetts using a forged Pennsylvania driver’s license. Officers obtained Serna-Bedoya’s fingerprints and found them to match those contained in Serna-Bedoya’s immigration file.

Acting United States Attorney William D. Weinreb; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit prosecuted the case.

BOSTON – A Winchester woman was charged today with bank fraud after allegedly using forged checks and account numbers to steal nearly a million dollars.

Sager Kopchak, a/k/a Sager Dallai, 34, was charged and has agreed to plead guilty to four counts of bank fraud.

According to court documents, in late 2009, Kopchak contacted an individual she knew, asking to stay with the individual for a few weeks while receiving cancer treatment. Kopchak stayed with the individual from late 2009 until the summer of 2010, and paid no rent or utilities. In reality, Kopchak did not have cancer and was not undergoing cancer treatment. While living with the individual, Kopchak stole a checkbook and, over the next eight years, stole nearly $1 million by forging checks and using the routing numbers from the stolen checks to make charges against the individual’s account. Kopchak allegedly used the stolen money to make high end purchases such as a pair of 2.05 karat diamond earrings ($9,700), five fur coats (totaling $21,297), Chanel purses (totaling $9,649), a Cartier watch ($3,250) and a trip to the Bahamas ($11,166), among other things.

The charging statute provides for a sentence of no greater than 30 years in prison, five years of supervised release and a fine of $250,000 per count, or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was investigated with the assistance of the Boston Police Department. Assistant U.S. Attorney Sara Miron Bloom of Weinreb’s Economic Crimes Unit is prosecuting the case.

BOSTON – A Taunton man was sentenced today in federal court in Boston for trafficking heroin and fentanyl in southeastern Massachusetts.

Oniel Rivera, 30, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to five years in prison and three years of supervised release. In May 2017, Rivera pleaded guilty to conspiracy to possess with intent to distribute heroin and fentanyl.

In October 2015, Rivera was arrested and charged along with 24 others in connection with a heroin trafficking ring operating in southeastern Massachusetts; an April 2016 superseding indictment brought the number of defendants charged in the case to 26. The charges were the result of a 15-month investigation into heroin and drug trafficking in the Taunton area.

The investigation revealed that Rivera purchased heroin from co-defendant Dedwin Cruz-Rivera, who received the drugs from three other co-defendants: Eric Matos, a former heroin and fentanyl supplier based in Lawrence; Manuel Romero-Gonsalez, a former heroin supplier based in Providence, R.I.; and Jonathan Ruiz, a former Lawrence drug supplier, among others.

On July 28, 2017, Matos was sentenced to 121 months in prison; in April 2017, Romero-Gonsalez was sentenced to 66 months in prison and will be subject to deportation upon completion of his sentence; Ruiz pleaded guilty and is scheduled to be sentenced on Sept. 28, 2017. In July 2017, Cruz-Rivera pleaded guilty to conspiracy to possess with intent to distribute and to distribute one kilogram or more of heroin and 40 grams or more of fentanyl. He will be sentenced on Oct. 12, 2017. Numerous other defendants in this case have pled guilty and been sentenced.

Acting United States Attorney William D. Weinreb and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, made the announcement today. Assistant U.S. Attorneys Thomas E. Kanwit and Karen Beausey of Weinreb’s Narcotics and Money Laundering Unit are prosecuting the cases.

BOSTON – A former New Hampshire stockbroker pleaded guilty today for his role in a market manipulation scheme which was actually part of an undercover operation.

Robert Raffa, 57, of Penacook, NH, pleaded guilty to one count of conspiracy to commit securities and wire fraud, one count of securities fraud, and three counts of wire fraud. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for Dec. 6, 2017. In April 2016, Raffa and a co-conspirator were arrested and charged in connection with their role in a scheme to manipulate the market for the publicly traded securities of Green Energy Renewable Solutions, Inc., a penny stock company that claimed to be in the business of developing and operating waste processing and recycling facilities near Detroit, MI.

In early 2012, the conspirators used four foreign entities to covertly acquire nearly all of Green Energy’s unrestricted stock without reporting their controlling interest as required by law. They then hired a promoter to send blast e-mails touting Green Energy to potential investors, all while selling shares without disclosing that they had orchestrated the campaign encouraging investors to buy.

The initial promotion enabled the conspirators to sell more than 1.5 million shares of Green Energy stock for proceeds of over $900,000. However, as the conspirators continued to control a substantial amount of Green Energy stock after the promotion ended, they used manipulative trading techniques to stabilize Green Energy’s stock price while they searched for another promoter to run a second touting campaign. Their search led them to a stock promoter who was secretly cooperating with federal agents and an undercover agent who claimed to have access to a network of corrupt stockbrokers who would buy their shares in exchange for kickbacks. Raffa and his co-conspirator executed a trade in which they sold 174,000 shares of their Green Energy stock to an account purportedly controlled a corrupt broker, which was in fact controlled by federal authorities. Following the trade, the conspirators wired a $6,000 kickback payment to an account they believed to be controlled by the corrupt broker, but which was actually controlled by federal authorities.

In a parallel action, the Securities and Exchange Commission (SEC) previously charged Raffa with securities fraud in connection with the scheme.

These charges arose out of a multi-year investigation focusing on preventing fraud in the microcap stock markets. Microcap companies are small publicly traded companies whose stock often trades at pennies per share. Fraud in the microcap markets is of increasing concern to regulators as such markets have proven to be fertile grounds for fraud and abuse. This is, in part, because accurate information about microcap stocks may be difficult for the average investor to find, since many microcap companies do not file financial reports with the SEC.

Today’s charges follow a series of cases filed by the U.S. Attorney for the District of Massachusetts and the SEC in which more than 30 individuals have been criminally charged and convicted for using kickbacks and other schemes to trigger investment in, or manipulate the stock of, thinly-traded stocks.

The charge of conspiracy provides for a sentence of no greater than 25 years in prison, five years of supervised release and a fine of $250,000, or twice the gain or loss. The charge of securities fraud provides for a sentence of no greater than 25 years in prison, five years of supervised release and a fine of $250,000, or twice the gain or loss. The charges of wire fraud provide for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000, or twice the gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. The United States Attorney’s Office received valuable assistance from the SEC. Assistant U.S. Attorney Vassili Thomadakis of Weinreb’s Criminal Division and SEC Attorney Andrew Palid, who was appointed as a Special Assistant U.S. Attorney, are prosecuting this case.

The details contained in the charging document are allegations. The remaining defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – A Rhode Island man agreed to plead guilty today in federal court in Boston for his role in a wide-ranging operation that distributed cocaine and heroin throughout Bristol County, Mass., and Providence, R.I.

Jorge Luis Sanchez-Lopez, 43, of Pawtucket, R.I., agreed to plead guilty to one count of conspiracy to distribute and possess with intent to distribute five kilograms of cocaine. U.S. District Court Judge Rya W. Zobel deferred accepting the plea until the sentencing hearing which is scheduled for Nov. 29, 2017.

Sanchez-Lopez was one of 10 individuals involved in a drug trafficking operation headed by Luis Lopez that imported hundreds of kilograms of cocaine from Puerto Rico to New Bedford and Fall River, as well as distributed heroin, fentanyl, and acetyl fentanyl in Bristol County. Sanchez-Lopez coordinated shipments of cocaine through the U.S. Mail with the assistance of co-defendant Chindy Diaz, who received cocaine-filled packages on Luis Lopez’s behalf and delivered it to Luis Lopez at his Fall River residence. Co-conspirator Israel Santiago also helped coordinate the receipt of cocaine on behalf of Luis Lopez, who then sold the cocaine to other drug dealers, including Nuno Fonseca and Tyson Britto.

In June 2016, the 10 defendants were charged for their individual roles in the operation. All of the conspirators have pleaded guilty and five have been sentenced. In June 2017, Fonseca was sentenced to 130 months in prison. In April 2017, Tyson Britto and Israel Santiago were sentenced to 78 months in prison and two years in prison, respectively. In January 2017, Luis Lopez was sentenced to 15 years in prison and Sharik Mendes was sentenced to 30 months in prison. Chindy Diaz pleaded guilty in October 2016 and is awaiting sentencing. In July 2017, Tyson Depina and Eric Desousa were sentenced to six years in prison and three years in prison, respectively.

The charge provides for a sentence of no greater than life in prison, five years to life of supervised release and a fine of up to $20 million. If the Court accepts the plea, Sanchez-Lopez will be sentenced to 10 years in prison. 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, Boston Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement. Assistant U.S. Attorney Eric Rosen of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the cases.

BOSTON – A Lowell man was sentenced today in federal court in Boston in connection with defrauding the Commonwealth of Massachusetts of tobacco excise taxes between 2012 and 2014.

Neetal Shah, 41, was sentenced by U.S. District Court Judge Allison D. Burroughs to three years of probation, the first six of months of which is to be served in a halfway house, and the remaining six months is to be served under home confinement. Shah is also ordered to pay restitution of more than $276,000 to the Commonwealth of Massachusetts.

In May 2017, Shah pleaded guilty to wire fraud in connection with a scheme to avoid paying excise taxes on tobacco products – including cigars, smoking tobacco and smokeless tobacco (such as snuff and chewing tobacco) – and other non-tobacco items that Shah sold to convenience stores, gas stations and other retail businesses through his Lowell wholesale business between approximately April 2012 and November 2014.

Under state law, smokeless tobacco wholesalers must file an excise tax form monthly and pay a 210% excise tax on smokeless tobacco brought into Massachusetts. Cigar wholesalers must file an excise tax form quarterly and must pay a 40% excise tax on cigars brought into Massachusetts.

In order to evade tobacco taxes, Shah made regular purchases of loose smoking tobacco and smokeless tobacco for his business from two distributors in Pennsylvania, where these tobacco products are not taxed, and either drove the tobacco products or had them shipped to Massachusetts, where he resold them through his wholesale business without paying the requisite state taxes.

Acting United States Attorney William D. Weinreb and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Valuable assistance was also provided by the Massachusetts Department of Revenue. Assistant U.S. Attorney Stephen Heymann of Weinreb’s Economic Crimes Unit is prosecuting the case.

BOSTON – A Georgia man was sentenced today in federal court in Boston for trafficking oxycodone.

Tony Berry, a/k/a Mazibrawl, 37, of College Park, Ga., was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 70 months in prison and three years of supervised release. In April 2017, Berry pleaded guilty to conspiracy to possess with intent to distribute oxycodone.

Berry, a former Massachusetts resident, was involved in the importation and distribution of close to 5,000 oxycodone pills in Massachusetts, along with other co-conspirators, including his brother Willie Berry. Tony Berry, one of 48 defendants tied to the Columbia Point Dawgs (CPD), was indicted in June 2015 for drug trafficking.

According to documents filed in court, the CPD, also known on the street as “the Point,” was Boston’s largest and most influential city-wide gang. The criminal organization started in the 1980s in the former Columbia Point Housing Development (now Harbor Point) and, over the years, gang members established drug trafficking crews throughout Boston. It is alleged that the CPD was responsible for the distribution of multiple kilo quantities of heroin, cocaine, crack cocaine, and oxycodone throughout Boston and Maine.

Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; John Gibbons, U.S. Marshal for the District of Massachusetts; Suffolk County District Attorney Daniel F. Conley; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Suffolk County Sheriff Steven W. Tompkins; Boston Police Commissioner William Evans; and Commissioner Thomas Turco of the Massachusetts Department of Correction, made the announcement.

BOSTON –A Georgia man was sentenced today in federal court in Boston for his involvement in a scheme to defraud Framingham-based Staples, Inc. of more than $1.4 million.

John Douglas, 46, of Alpharetta, Ga., was sentenced by U.S. District Court Judge Indira Talwani to 30 months in prison, two year of supervised release, and ordered to pay $691,327 in restitution and $553,061 in forfeiture. On Jan. 24, 2017, Douglas pleaded guilty to conspiracy to commit wire fraud and mail fraud.

Douglas and alleged co-conspirator Layne Michael Gosnell 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. They did this by using fictitious names, addresses, contact information, and a computer script to query a Staples website and seek unclaimed customer loyalty rewards for purchases that they did not make. 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. The conspirators then used the rewards like cash at Staples retail locations to buy merchandise that they often sold on eBay.

In addition, Douglas and, allegedly, Gosnell used a similar method to claim more than $527,000 in cash rebates from Staples for products that they did not purchase.

Staples, who has cooperated with the government, discovered the fraud and referred the matter for investigation.

On Aug. 4, 2017, Gosnell was charged in federal court in Boston with conspiracy to commit wire fraud and mail fraud, and is awaiting trial. The details contained in the charging documents are allegations and Gosnell is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

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 prosecuted the case.

BOSTON – A Dorchester man was sentenced today in federal court in Boston for knowingly selling a firearm and ammunition to a felon.

Michael Browne, 49, of Dorchester, was sentenced by U.S. District Court Judge Leo T. Sorokin to 87 months in prison and three years of supervised release. In May 2017, Browne pleaded guilty to one count of knowingly transferring a firearm to a felon.

On Oct. 4, 2010, Browne sold a .357 caliber Smith and Wesson revolver and four bullets for $700 to an individual Browne knew had been previously convicted of a felony offense.

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; and Boston Police Commissioner William Evans made the announcement today. Assistant U.S. Attorney David Tobin of Weinreb’s Major Crimes Unit prosecuted the case.

BOSTON – A Dominican national was sentenced today in federal court in Worcester for his role in a heroin and cocaine trafficking conspiracy.

Hugo Santana-Dones, a/k/a Raphael Jose Ventura, 43, a Dominican national previously residing in Leominster, was sentenced by U.S. District Court Judge Timothy S. Hillman to 80 months in prison and will face deportation upon completion of his sentence.

In May 2017, Santana-Dones pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin and 500 grams or more of cocaine; one count of distribution and possession with the intent to distribute 100 or more grams of heroin; and one count of possession with the intent to distribute 500 or more grams of cocaine and 100 or more grams of heroin.

Santana-Dones is the first of five co-defendants to be sentenced for their roles in the heroin and cocaine trafficking conspiracy which occurred primarily in Worcester County. Osvaldo Vasquez, 49, of Worcester; Jose Federico Vasquez, 55, a Dominican national residing in Providence, R.I.; Elvis Genao, 27, of Fitchburg; and Feliz Melendez, 41, of Leominster, have all pleaded guilty to their involvement in the conspiracy and will be sentenced later this month.

In the late summer of 2014, federal agents began investigating narcotics trafficking activities by Osvaldo Vasquez and his associates, Federico Vasquez, Melendez, Genao, and 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.

During a court-authorized wiretap, Vasquez and his co-defendants were heard discussing the purchase and sale of multiple kilograms of narcotics, and, demonstrated an awareness of the potential deadly consequences of the narcotics they were distributing. On May 7, 2016, Osvaldo Vasquez, Melendez, and Federico Vasquez were intercepted discussing how the high number of heroin overdose deaths occurring at the time were cutting into their sales.

In August 2015, federal agents executed a search warrant at the conspirators’ homes. At Osvaldo Vasquez’s home in Worcester, agents found 679 grams of heroin and 723 grams of cocaine, as well as a Taurus PT .380 semi-automatic handgun. The telephone that was the subject of the wiretap, cutting tools, and over $7,000 in cash was also recovered in the home. At the residence of Santana-Dones in Leominster, agents found 224 grams of heroin, 110 grams of cocaine, and 8.9 grams of cocaine base (crack cocaine), along with cutting tools, a hydraulic kilogram press, over $1,300 in cash, and two phones that had been intercepted on the wiretap. At the residence of Melendez, who was on parole for state firearm and narcotics charges at the time, 3.1 grams of cocaine, a digital scale, over $1,000 in cash, and a phone that had been intercepted on the wiretap was recovered. At the residence of Jose Federico Vasquez in Providence, agents found 3.4 grams of cocaine.

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 case.

BOSTON – A Colombian National was sentenced today in federal court in Boston for his role in a conspiracy to launder money from various international locations back to Colombia.

Pedro Mejia Salazar, 73, of Medellin, Colombia, was sentenced by U.S. District Court Judge Allison D. Burroughs to 50 months in prison and three years of supervised release. Mejia is subject to deportation after serving his sentence. On May 3, 2017, Mejia traveled from Colombia to the United States to plead guilty to the charges against him. The following day, Mejia appeared in federal court in Boston where he was charged with - and pleaded guilty to - one count of conspiracy to launder money.

Mejia used a family business, which he ran, to launder drug proceeds for and on behalf of the criminal syndicate La Oficina de Envigado, based in Medellin, Colombia. Between May 2009 and June 2012, Mejia laundered at least $768,586 in drug proceeds at the direction of Colombian-based money brokers working for La Oficina.

This case is part of Operation Powerplay, an international undercover investigation targeting Colombia-based money brokers who launder drug proceeds for international drug trafficking organizations. The investigation targeted drug traffickers who import drugs into the United States and money launderers who use the international financial system and the Black Market Peso Exchange to return drug proceeds collected in the United States and other countries to Colombia. To date, the investigation has resulted in the seizure of approximately $15.2 million, 3,967 kilograms of cocaine, 32,000 doses of MDMA, nine kilograms of methamphetamine, 1,183 kilograms of marijuana and 7.8 kilograms of heroin.

Acting United States Attorney William D. Weinreb; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation, Boston Field Division; and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. Assistant United States Attorneys Leah B. Foley and Nathaniel R. Mendell of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.

BOSTON – A Boston man was sentenced today in federal court in Boston for a federal firearm offense.

Troy Armstrong, 28, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to three years in prison and three years of supervised release. In May 2017, Troy pleaded guilty to one count of being a felon in possession of a firearm and ammunition.

Following an investigation into drug and firearms trafficking in the Bunker Hill Housing Authority in Charlestown, Armstrong and three others, Samuel Jean, 22, of Everett; Jeffrey Joseph, 32, of Boston; and Deon Young, 32, of Hyde Park, were arrested on Dec. 1, 2016. According to court documents, during the investigation, a cooperating witness made controlled buys of guns and drugs at the direction of law enforcement. During the controlled purchases, which, were recorded on video, Jean and Joseph sold seven firearms to the cooperating witness over a one-month period, including at least one stolen firearm. Armstrong sold the cooperating witness three firearms around the same time period, including one firearm with an obliterated serial number. It is alleged that Young conspired with Armstrong to sell firearms to the cooperating witness.

Jean pleaded guilty and was sentenced to two years in prison on March 2, 2017. Joseph pleaded guilty in August 2017 and is scheduled to be sentenced on Oct. 23, 2017. Young pleaded not guilty and is scheduled for trial on Jan. 8, 2018.

Acting U.S. Attorney William D. Weinreb; Suffolk County District Attorney Daniel F. Conley; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Commissioner William Evans made the announcement today. Assistant U.S. Attorney Lori Holik, Chief of Weinreb’s Major Crimes Unit, is prosecuting the cases.

The details contained in the charging documents are allegations and the remaining defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.

BOSTON – The U.S. Attorney’s Office and the Massachusetts Attorney General’s Office announced today that Dental Dreams, LLC, a national dental chain with locations in Massachusetts, has agreed to pay $1.375 million to resolve allegations that it improperly billed the Massachusetts Medicaid program (MassHealth) for unnecessary and unjustifiable dental procedures.

“Dental Dreams enriched itself at taxpayer expense by improperly billing Medicaid,” said Acting U.S. Attorney William D. Weinreb. “We will continue to work with our law enforcement partners to ensure that federal and state health care dollars are spent properly.”

“This dental chain’s extensive improper billing violated state regulations and cost our state’s Medicaid program more than a million dollars,” said Massachusetts Attorney General Maura Healey. “As a result of this joint investigation, today’s settlement provides restitution to MassHealth and ensures that these funds are properly used to benefit its members.”

“Medicaid is designed to provide health care services to some of the most vulnerable members of our society and it’s our agency’s mission to ensure government health funds are spent properly,” said Special Agent in Charge Phillip M. Coyne of the U.S. Department of Health and Human Services Office of Inspector General. “Working with our Federal and State partners, we will continue to hold accountable any medical professional who, just to enrich themselves, bills Medicaid for more intensive and expensive services than those actually provided.”

“The company took advantage of a vulnerable patient population when it submitted claims to MassHealth for medically unnecessary and unreasonable dental procedures,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “Today’s settlement underscores the FBI’s commitment to investigate health care providers who overbill federal and private health insurance programs to maximize profits. We urge anyone with information regarding overbilling practices to contact us.”

The settlement resolves allegations that Dental Dreams overbilled the Massachusetts Medicaid program for surgical extractions of teeth and for a specific kind of oral examination.

The settlement resolves a lawsuit filed by a former employee under the whistleblower provisions of the False Claims Act, which permits private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery.

Acting U.S. Attorney Weinreb, Massachusetts Attorney General Healey, HHS-OIG SAC Coyne and FBI SAC Shaw made the announcement today. The case was handled by Assistant U.S. Attorneys Michelle Leung, Sonya Rao, and Kriss Basil of Weinreb’s Civil Division and Assistant Attorney General Stephany Collamore of Healey’s Medicaid Fraud Division.

BOSTON – The co-owner of a trash company was sentenced today in federal court in Boston in connection with defrauding the operator of the Fall River Landfill out of approximately $463,000 in disposal fees.

Stephen P. Aguiar Jr, 47, of Westport, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to one year and one day in prison, two years of supervised release and ordered to pay restitution in the amount of $463,407. In April 2017, Aguiar pleaded guilty to three counts of mail fraud.

Aguiar was one of the owners and operators of Cleanway Disposal & Recycling, Inc., a trash removal and recycling company, and JS Aguiar Enterprises, Inc., a construction and equipment rental company, which were both located in Westport. Aguiar contracted with the company operating the Fall River Landfill to dispose of trash collected from his private clients in Fall River for one rate, and to dispose of trash collected from his private clients outside of Fall River for a higher rate. Aguiar also contracted with the City of Fall River to collect trash from the Fall River Housing Authority (FRHA) and dispose of the trash at the landfill. The company operating the landfill allowed the City of Fall River to dispose of trash collected from FRHA properties at no charge. Between 2009 and 2014, Aguiar misrepresented the origin of a significant portion of the trash he disposed at the landfill. In some instances, Aguiar claimed he was disposing trash from the FRHA, when in fact he was disposing trash collected from his private clients. In other instances, Aguiar claimed he was disposing trash collected from private clients inside of Fall River, when in fact he was disposing trash collected from private clients outside of Fall River. Aguiar thereby defrauded the operator of the Fall River Landfill of approximately $463,000 in revenue.

Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Massachusetts Inspector General Glenn A. Cunha; 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. Assistant U.S. Attorney Kristina E. Barclay of Weinreb’s Public Corruption Unit prosecuted the case.

The United States Attorney’s Office will implement an online messaging campaign in September during National Suicide Prevention Awareness Month to highlight the importance of law enforcement wellness and suicide prevention. According to Badge of Life, more officers die of suicide than from gunfire and traffic accidents combined. The Police Suicide Study estimates that an average of 130 law enforcement suicides occur per year, which is more than ten per month.

Acting United States Attorney William D. Weinreb said, “Law enforcement officers and first responders routinely encounter life-threatening situations, horrific violence, disturbing crime scenes, motor vehicle accidents, child abuse, and other stressful situations that take a psychological toll. We should reward their courage and selflessness by encouraging them to prioritize their psychological wellness and helping them to achieve it.”

Over the course of the month, the U.S. Attorney’s Office will disseminate specific messages via social media using the hashtag #OfficerWellness.

BOSTON – A Southbridge man was sentenced today in federal court in Worcester for distributing oxycodone.

John Tautenhan III, 50, was sentenced by U.S. District Court Judge Timothy S. Hillman to two years in prison and two years of supervised release. In April 2017, Tautenhan pleaded guilty to two counts of conspiracy to possess with intent to distribute and to distribute oxycodone and one count of distribution of oxycodone.

In June 2016, Tautenhan was arrested and charged along with three others for distributing oxycodone in Worcester County. Tautenhan sold oxycodone pills to an undercover officer on nine occasions. In addition, a Court authorized wiretap evidenced that Tautenhan actively distributed oxycodone in and around Southbridge.

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.

BOSTON - A Mexican national was sentenced today in federal court in Boston for a federal immigration crime.

Felipe Bautista-Guerrero, 46, pleaded guilty to one count of unlawful reentry of a deported alien before U.S. District Court Judge F. Dennis Saylor IV, who sentenced Bautista-Guerrero to 21 months in prison. Bautista-Guerrero will be subject to deportation proceedings upon completion of his sentence.  

On Dec. 28, 2015, law enforcement officers encountered Bautista-Guerrero - who was already on supervised release out of Texas for an illegal reentry conviction - in Boston and determined that he was again unlawfully present in the United States. Bautista-Guerrero had been deported on two previous occasions, on March 22, 2011, and Nov. 24, 2012.  

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 prosecuted the case.

BOSTON – A dual citizen of Canada and China was arrested and charged today in connection with attempting to steal trade secrets and computer information from a Raynham-based medical technology company.

Dong Liu, a/k/a Kevin, 44, was charged in a criminal complaint with one count of attempted theft of trade secrets and one count of attempted access to a computer without authorization and in excess of authorized access with the intent to obtain information from a protected computer. Liu was detained following an initial appearance in federal court in Boston this afternoon.

According to the charging documents, Medrobotics Corporation, which is headquartered in Raynham, Mass., manufactures and markets a unique robot-assisted device that provides surgeons with access to, and visualization of, hard-to-reach places in the human body for minimally invasive surgery. The company has invested millions of dollars in next-generation robotics technology that is not yet patented.

It is alleged that around 7:30 p.m. on Aug. 28, 2017, Medrobotics’ CEO spotted a man, later identified as Liu, sitting in a conference room inside the company’s secured space with what appeared to be three open laptop computers. He was not a company employee or contractor, so the CEO asked Liu whom he was there to visit. Liu named one company employee whom the CEO knew was out of the country for a few weeks; Liu then identified another employee whom the CEO knew had not scheduled such a meeting; Liu then named the CEO himself, which the CEO knew was not to be true.

Liu allegedly claimed to be working with a Chinese patent law firm. He showed the CEO his LinkedIn biography, in which Liu claimed to lead his firm’s intellectual property practice in medical devices, among other things. When police responded to the CEO’s call and talked with Liu, Liu gave conflicting explanations about how he had entered the building. A check of Medrobotics’ visitor log book revealed that neither Liu nor any other visitor had signed into the building that day, despite a company policy that requires visitors to log in.

According to charging documents, Liu told the CEO that he had entered Medrobotics just before 5:00 p.m. Further investigation revealed that Liu had been seen in the company’s lobby taking a video of a monitor displaying public corporate information around 5:00 p.m. and again around 6:00, well before he was discovered in the conference room. The investigation also revealed that Liu had been contacting Medrobotics employees via LinkedIn.

When Liu was arrested by the local police for trespassing, he possessed two laptop computers, an iPad, two portable hard drives, 10 cellphone SIM cards, two digital camcorders, at least two flash drives, and other data equipment. Some of these types of equipment can be used to obtain data from computer networks and to video record otherwise-secret physical documents and products. Further investigation will be required to reveal whether Liu’s attempts to obtain computer information or trade secrets were successful.

The charge of attempted theft of trade secrets provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000, or twice the financial gain or loss, restitution, and forfeiture. The charge of attempted access to a computer to obtain information unlawfully provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000, or twice the financial gain or loss, restitution, and forfeiture. 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; Raynham Police Chief James W. Donovan; and Bristol County District Attorney Thomas M. Quinn made the announcement today. Medrobotics cooperated with authorities during the investigation. Assistant U.S. Attorney Scott L. Garland of Weinreb’s National Security Unit is prosecuting the case.

The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – Geovane Jose Ferreira, 34, a Brazilian national, was charged today in federal court in Boston with one count of unlawful reentry of a deported alien.

According to the indictment, Ferreira was previously deported on Dec. 17, 2003. On Aug. 2, 2017, law enforcement officers in Essex encountered Ferreira and determined him to be unlawfully present in the United States.

Ferreira 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 David G. Tobin 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.

BOSTON – A Mississippi man was charged today in federal court in Boston for sexually assaulting a minor during a cruise from Boston to Bermuda.

Adam Christopher Boyd, 30, of Bay Springs, Miss., was charged with one count of sexual abuse of a minor. He is currently in Bermuda, awaiting extradition to the United States.  

According to court documents, Boyd was a passenger on a seven-day cruise from Boston to Bermuda.  While the ship was docked in Bermuda, Boyd allegedly raped a minor passenger while the two were onboard the ship.  The child subsequently reported the rape to ship security, who notified Bermudian authorities.  In the course of the Bermuda Police Service’s initial investigation, they arrested Boyd and notified authorities in the United States.   

Sexual abuse of a minor carries a sentence of no greater than 15 years in prison, a minimum of five years and up to a lifetime of supervised release and a fine of up to $250,000.  Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office, made the announcement today.  Valuable assistance was also provided by U.S. Customs and Border Protection, the Bermuda Police Service, Massachusetts Port Authority and FBI Legat Bridgetown, Barbados, Sub Office Nassau. Assistant U.S. Attorney Anne Paruti, Weinreb’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, is prosecuting the case.

The case is brought as part of Project Safe Childhood.  In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse.  Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims.  For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.

The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON - A Liberian national was charged today in federal court in Boston with assaulting a deportation officer at Logan International Airport during removal.

Mohammed Kenneh, 35, was charged with assault on a federal officer and is scheduled to appear before Magistrate Judge M. Page Kelley today at 2:45 PM.

On July 16, 2016, Kenneh was ordered removed from the United States back to Liberia. On Aug. 29, 2017, Kenneh was transported to Logan International Airport for removal. Once at the airport, Kenneh was met by two deportation officers who asked him to exit the van in which he arrived.  Kenneh refused to exit the van; therefore, one of the officers entered the van and attempted to remove Kenneh from the vehicle. Kenneh resisted the officer and struck the officer on the head and shoulders multiple times, eventually knocking the officer onto the floor of the van. Kenneh then wrapped his handcuffed hands around the officer’s wrist and hands and refused to release the officer. Another officer then entered the van and, together, the two officers were able to remove Kenneh from the van onto the sidewalk. A decision was then made to abort the removal proceedings and return Kenneh to Immigration and Customs Enforcement custody.

Kenneh 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 Christopher Cronen, Field Office Director, Enforcement and Removal Operations Boston Field Office, U.S. Immigration and Customs Enforcement, 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 charging document are allegations.  The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Boston – A 16-year veteran officer of the Lawrence Police Department agreed to plead guilty today in connection with attempting to use his position as a police officer to extort cocaine from a drug trafficker.

John R. Desantis Jr., 45, of Methuen, agreed to plead guilty today to one count of extortion and attempted extortion under color of official right and through the use of threatened force and fear. U.S. District Court Judge F. Dennis Saylor IV deferred acceptance of the plea until the sentencing hearing, which is scheduled for Nov. 17, 2017.

Desantis had been purchasing small amounts of cocaine once or twice a week from a drug trafficker for 10-12 months without identifying himself as a police officer. On May 16, 2016, during a drug transaction at his home, Desantis displayed his gun and badge, seized the cocaine and threatened to arrest the drug trafficker if he did not continue to supply him with drugs. Desantis thereafter continued to communicate with the drug trafficker through text messages, telling him, “you will not be arrested at all if you do as I tell you to.”

The charging statute provides a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. If the court accepts the plea, Desantis will be sentenced to no less than 12 months and no greater than 18 months in prison. 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 Lawrence Police Chief James X. Fitzpatrick made the announcement today. Assistant U.S. Attorney Kristina Barclay of Weinreb’s Public Corruption Unit is prosecuting the case.

BOSTON - A Dominican national pleaded guilty today in federal court in Boston to his role in a drug trafficking conspiracy.

Juan Manuel Tejeda-Serrano, 30, a/k/a Jose R. Narvaez-Arroyo, pleaded guilty today to one count of conspiracy to distribute and possess with intent to distribute controlled substances, including cocaine, before U.S. District Court Judge Indira Talwani. Tejeda-Serrano previously pleaded guilty to a separate federal charge of illegally re-entering the country after having been deported.  Sentencing for today’s plea will occur after Tejeda-Serrano is sentenced on Nov. 16, 2017, for his immigration offense.

In February 2017, Tejeda-Serrano and 12 others were charged in an indictment with conspiring to distribute heroin, fentanyl and cocaine.  The charge stemmed from a six-month wiretap investigation into the drug activities of Jose Antonio Lugo-Guerrero, who was allegedly operating a trafficking organization first in New Bedford, and later in Boston.  On Jan. 3, 2017, Tejeda-Serrano arranged for Lugo-Guerrero to obtain a kilogram of cocaine. And on Jan. 5, 2017, Lugo-Guerrero ordered another two kilograms of cocaine from Tejeda-Serrano, which he attempted to steal, but was unsuccessful.

The charging statute 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. Tejeda-Serrano is also subject to deportation after serving any sentence that is 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 J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. Assistant U.S. Attorney Theodore Heinrich of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.

BOSTON - A Chinese national pleaded guilty and was sentenced today in federal court in Boston for defrauding the Department of Homeland Security (DHS) in its administration of the Student and Exchange Visitor Program.

Xiaomeng Cheng, 21, pleaded guilty to one count of conspiracy to defraud the United States. U.S. District Court Judge Denise J. Casper sentenced Cheng to time-served and ordered Cheng to be immediately removed from the United States to the People’s Republic of China.

In March 2016, Cheng registered to take the Test of English as a Foreign Language (TOEFL) exam, which is an exam required by American universities that participate in DHS’s Student and Exchange Visitor Program. On prior occasions, Cheng had failed to achieve a high enough score on the TOEFL exam to be admitted to one of the participating universities. When Cheng registered to take the exam again in March 2016, she provided her passport and exam registration information to a co-conspirator who used the materials to take the exam for Cheng. The co-conspirator scored high on the exam, and Cheng fraudulently submitted the co-conspirator’s test results as her own and was subsequently admitted into a university in the United States.  Once admitted, Cheng was issued DHS’s Form I-20, which made her eligible to receive an F-1 non-immigrant student visa to enter and remain in the United States for the duration of her studies.

Acting United States Attorney William D. Weinreb; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and William B. Gannon, Special Agent in Charge of the Boston Field Office of the U.S. State Department's Diplomatic Security Service, made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Weinreb’s Major Crimes Unit prosecuted the case

BOSTON – A Captain with the Bristol County Sheriff’s Office was arrested and charged today 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 charged with one count each of bulk cash smuggling, structuring and conspiracy. He was released on a $10,000 unsecured bond following his appearance in federal court in Boston late this afternoon.

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. 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.”

On Nov. 10, 2015, agents conducting surveillance as Logan Airport saw Melo and Rafael arrive in a white car, 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 $27,000, for which he completed a financial affidavit. 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 $76,000 in U.S. currency was deposited into a Banif Bank account in Rafael’s name.

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.

BOSTON – A retired United States Army colonel was arrested and charged today for conspiring to bribe senior officials of the Republic of Haiti, and to launder funds for that purpose, in connection with a planned $84 million port development project in that country.

Joseph Baptiste, 64, of Fulton, Md., was charged in the District of Massachusetts with one count of conspiracy to violate the Foreign Corrupt Practices Act and to commit money laundering. Baptiste will make an initial appearance in federal court in Maryland this afternoon.

According to court documents, in or about August 2014, an investigation began into certain Haitian-American businessmen who were offering to facilitate bribes to high-level officials in the Haitian government, in exchange for the ability to obtain or retain business in that country.

It is alleged that Baptiste solicited bribes from undercover agents in Boston who posed as potential investors in infrastructure projects in Haiti, in connection with a proposed project to develop a port in the Mole-Saint-Nicolas area of Haiti. The proposed project was expected to cost approximately $84 million and was to involve the construction of multiple cement factories, a shipping-vessel recycling station, an international transshipment station with numerous slips for shipping vessels, a power plant, a petroleum depot and tourist facilities. During a recorded meeting at a Boston-area hotel, Baptiste allegedly told the agents that he would funnel the payments to Haitian officials through a non-profit entity that he controls – which is based in Maryland and purports to help impoverished residents of Haiti - in order to secure government approval of the project. The complaint also alleges that, in a subsequent recorded phone call, Baptiste had the following exchange with one of the undercover agents:

     AGENT: OK, and would all the money that I . . . that I wire to you . . . would it all go to [Foreign Official 1] or only part of it?

     BAPTISTE: I would say all of it.

     AGENT: OK, so all the . . . so if [I] wire you 20 . . . if I wire 25,000 to [Maryland Non-Profit 1] it will all go to [Foreign Official 1]?

     BAPTISTE: All going to be . . . yes, uh-huh.

     AGENT: OK, and then, uh . . . you’re not . . . it . . . will he do those letters [committing to support the project] without the money? He . . . or does he have to have that money?

     BAPTISTE: I think he has to have it.

In intercepted telephone calls, Baptiste also allegedly discussed bribing an aide to a senior Haitian official with a job on the port development project. It is alleged that after undercover agents wired approximately $50,000 to the non-profit controlled by Baptiste for the purpose of bribing Haitian officials, Baptiste used the $50,000 for personal purposes, though he intended to seek additional money from the agents to use for future bribe payments in connection with the port project.

The charging statute provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss. 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 of the District of Massachusetts; Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office, made the announcement. The FBI is investigating the case. Assistant U.S. Attorney Stephen E. Frank, Chief of Weinreb’s Economic Crimes Unit, and Trial Attorney Aisling O’Shea of the Criminal Division’s Fraud Section are prosecuting the case.

The charges contained in the charging document are merely accusations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

UPDATE: Criminal charges against the defendant, Joseph Baptiste, and his co-defendant, Roger Boncy, were dismissed in June 2022.

A retired U.S. Army colonel was charged in a complaint unsealed today for his alleged role in a foreign bribery and money laundering scheme in connection with a planned $84 million port development project in Haiti.           

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney William D. Weinreb of the District of Massachusetts, Assistant Director Stephen Richardson of the FBI’s Criminal Investigative Division and Special Agent in Charge Harold M. Shaw of the FBI’s Boston Field Office made the announcement. 

Joseph Baptiste, 64, of Fulton, Md., was arrested this morning on a criminal complaint filed in the District of Massachusetts.  He was charged with one count of conspiracy to violate the Foreign Corrupt Practices Act and to launder money. 

The complaint alleges that Baptiste solicited bribes from undercover agents in Boston who posed as potential investors in infrastructure projects in Haiti, in connection with a proposed project to develop a port in the Moles Saint Nicolas area of Haiti.  According to the complaint, the proposed project was expected to cost approximately $84 million, and was to involve the construction of multiple cement factories, a shipping-vessel recycling station, an international transshipment station with numerous slips for shipping vessels, a power plant, a petroleum depot and tourist facilities.  The complaint alleges that Baptiste told the agents, in a recorded meeting at a Boston-area hotel, that he would funnel the payments to Haitian officials through a non-profit entity that he controlled — which was based in Maryland and purported to help impoverished residents of Haiti — in order to secure government approval of the project. 

The complaint further alleges that in telephone calls intercepted by agents pursuant to court authorization, Baptiste discussed bribing an aide to a senior Haitian official by giving him a job on the port development project after he left his position.  It further alleges that although Baptiste ultimately used for personal purposes approximately $50,000 that he received from undercover agents for the payment of bribes to Haitian officials — money that was wired at Baptiste’s direction to a non-profit organization he controls — he intended to seek additional money from the undercover agents to use for future bribe payments in connection with the port project.

The charges contained in the complaint are merely accusations.  The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.    

The FBI is investigating the case.  The case is being prosecuted by Trial Attorney Aisling O’Shea of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Stephen E. Frank of the District of Massachusetts.

The Fraud Section is responsible for investigating and prosecuting all FCPA matters.  Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.

BOSTON – A Shrewsbury man pleaded guilty today in federal court in Boston for his role in a conspiracy to traffic counterfeit steroids, including testosterone and trenbolone, to bodybuilders.

Tyler Bauman, a/k/a “musclehead320,” 32, pleaded guilty to conspiracy to distribute counterfeit testosterone, trenbolone, and other steroid compounds; conspiracy to traffic in counterfeit drugs; conspiracy to launder money; possession with intent to distribute controlled substances (steroids); and trafficking in counterfeit drugs. U.S. District Court Senior Judge Douglas P. Woodlock scheduled sentencing for Nov. 29, 2017.

In April 2017, Bauman and five others were arrested and charged with various offenses related to the steroid operation. According to court documents, from approximately May 2015 until April 12, 2017, the defendants manufactured steroid products - made from raw materials purchased overseas - and marketed them as “Onyx” steroids using “Onyx” labels that were also ordered from overseas suppliers. Onyx, now a wholly owned subsidiary of Amgen Inc., was a global biopharmaceutical company that did not manufacture steroids.

Bauman had a robust social media following on Instagram and other social media platforms under the moniker “musclehead320” and derivations of that name. Baumann used the “musclehead 320” persona to promote Onyx by claiming to be an “Onyx Sponsored Athlete.” As “musclehead 320,” he publicly denied any suggestion that he was directly involved with making or selling Onyx; however, at the same time, he was in fact marketing Onyx injectable steroids through other social media accounts, including Instagram accounts in the name of “onyx_roid” and “onyxpharma.” Through these accounts, Bauman provided customers with email addresses to place orders, received steroid orders, and then communicated with customers via these email addresses.

Baumann directed other members of the conspiracy to ship steroids to customers using the U.S. Postal Service. Customers paid for the steroids via money remitters, such as Western Union and MoneyGram. Baumann then directed other members of the conspiracy to pick up payments at multiple remitter locations using false identifications to attempt to avoid suspicion while picking up the significant proceeds.

Bauman purchased both the oral steroids (tablets) and the raw materials to manufacture the injectable steroids from overseas suppliers. He also ordered the counterfeit Onyx labeling and packaging from overseas suppliers. The injectable steroids advertised and sold by the members of this conspiracy bore trademarks of Onyx Pharmaceuticals.

Further, Bauman also laundered proceeds from the steroid sales through Wicked Tan LLC, a tanning salon located in Beverly, which he and a co-conspirator owned and operated specifically to launder the proceeds of the steroid operation.

The charges of conspiracy to traffic in counterfeit drugs and conspiracy to distribute controlled substances provide for a sentence of no greater than five years in prison, three years of supervised release, and a fine of up to $250,000 or twice the gross gain or loss of the conspiracy. The charge of possession of a controlled substance provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000 or twice the gross gain or loss of the conspiracy. The charge of trafficking in counterfeit drugs provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $5 million. The charge of money laundering conspiracy provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $500,000 or twice the gross gain or loss of the conspiracy. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney William D. Weinreb; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Jeffrey Ebersole, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office, made the announcement today. Assistant U.S. Attorneys Amy Harman Burkart and David J. D’Addio of Weinreb’s Cybercrime Unit are prosecuting the case.

BOSTON – A Dorchester man was sentenced today in federal court in Boston for being a felon in possession of three firearms.

Byron Newberry, 44, was sentenced by U.S. District Court Senior Judge Mark L. Wolf to three concurrent terms of 30 months in prison and three years of supervised release. In November 2014, Newberry pleaded guilty to three counts of being a felon in possession of a firearm.

During an investigation into gun sales in Boston’s Dorchester neighborhood from March to April 2012, investigators learned that Newberry and two other co-conspirators possessed illegal firearms and ammunition for sale. During a six-week period, undercover law enforcement officers purchased a shotgun, a semi-automatic rifle with ammunition, and a .38 pistol from Newberry and his co-conspirators.

One of Newberry’s co-conspirators, Michael Collins, was sentenced to 15 years in prison in January 2014.

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 Dustin Chao of Weinreb’s Criminal Division prosecuted the case.

BOSTON – Two Yarmouthport brothers, a Dominican national, and a Boston man were charged with running a large-scale heroin and fentanyl trafficking operation in Boston and on Cape Cod.  Hundreds of fentanyl pills designed to look like oxycodone pills were allegedly trafficked by the defendants.

Alex Fraga, 25, the proprietor of Scottie’s Pizza in Hyannis, was charged with one count of possession of fentanyl/heroin with intent to distribute and two counts of attempted possession of fentanyl/heroin with intent to distribute. Kevin Fraga, 24, was charged with one count of possession of fentanyl/heroin and cocaine with intent to distribute and two counts of attempted possession of fentanyl/heroin and cocaine with intent to distribute. They were both arrested on Aug. 17, 2017. 

Jose Solivan, 40, a/k/a Kevin Nunez, a Dominican national residing in Boston, and James Ramirez, 55, of Boston, were each charged with one count of conspiracy to distribute and possess with intent to distribute heroin, fentanyl, and cocaine. Both men were arrested on Aug. 22, 2017.  At his initial appearance, Solivan told the court that his real name was Kevin Nunez. 

According to court documents, law enforcement conducted a long-term wiretap investigation into narcotics trafficking on Cape Cod.  Through these wiretaps, investigators learned that Ramirez, together with others, including Solivan, was supplying the Fraga brothers with large quantities of fentanyl, heroin and cocaine for further distribution. Ramirez delivered the drugs to the Fraga brothers in Hyannis using vehicles specially outfitted with “hides” to conceal the drugs from law enforcement.

“Large-scale narcotics trafficking in Massachusetts is destroying lives and entire communities,” said Acting United States Attorney William D. Weinreb." This was an important investigation that led investigators from Boston to Cape Cod and removed suspected deadly fentanyl-laced pills from the streets. Those pills would have put lives at risk. My office remains committed to working with our local, state and federal law enforcement partners to stem the tide of drugs that is flooding our neighborhoods.”

“DEA is committed to investigating and dismantling large-scale drug trafficking organizations like this one,” said Special Agent in Charge Michael J. Ferguson.  “It is alleged that this organization was responsible for distributing kilogram quantities of fentanyl and heroin throughout the Cape Cod area of Massachusetts.  As we all know, fentanyl and heroin are causing deaths across the Commonwealth in record numbers and DEA is committed to aggressively pursue those who distribute these poisons in order to profit and destroy people’s lives and wreak havoc in our communities.  This investigation demonstrates the strength of collaborative local, state and federal law enforcement efforts in the Bay State and our strong partnership with the U.S. Attorney’s Office to seek and bring to justice anyone who engages in these crimes.”

“I commend our state troopers and members of our partner agencies who worked diligently to collect evidence that led to these charges,” said Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police. “This outcome will have a positive impact on the flow of dangerous opioids and opiates on the Cape.”

It is alleged that in June and July 2017, investigators made three controlled purchases from Ramirez. Each transaction included the purchase of 100 fentanyl pills designed to look like oxycodone pills. Each 100 pack of pills contained approximately 10 grams of fentanyl. It is further alleged that wiretaps from early July through Aug. 22, 2017, show consistent drug trafficking activity by Ramirez, who worked with Solivan to distribute narcotics. Specifically, on July 8, 2017, Ramirez delivered a kilogram of narcotics and fentanyl pills to Kevin Fraga on Cape Cod.

It is alleged that Ramirez and Kevin Fraga met in Hyannis on Aug. 16, 2017. After their meeting, investigators stopped Kevin Fraga’s vehicle for a traffic violation.  Investigators then obtained federal search warrants for Fraga’s vehicle, a hotel room at the Best Western in Hyannis, the Fragas’ residence in Yarmouthport, and a Winnebago owned by Kevin Fraga. During a search of the Winnebago, investigators seized three kilograms of heroin, fentanyl pills, and a firearm; during the search of the hotel room, investigators seized approximately 59 grams of cocaine, approximately 87 grams of a fentanyl/heroin mixture, and a digital scale; during the search of the Fragas’ home, investigators seized approximately 30 grams of a heroin/fentanyl mixture as well as another digital scale; and during the search of Kevin Fraga’s vehicle, investigators seized approximately 165 grams of a heroin/fentanyl mixture, 136 grams of fentanyl, 200 fentanyl pills packaged to look like oxycodone, another 25-gram bag of a heroin/fentanyl mixture, and a stack of U.S. dollars.  Investigators further recovered more than 1,200 fentanyl pills from Ramirez’s residence and over 50 grams of heroin from Solivan. The drug contents are suspected pending final laboratory analysis.

All of the charges against the Fraga brothers, Ramirez and Solivan carry a potential sentence of no greater than 20 years in prison, three years to life 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; 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 Narcotics and Money Laundering Unit is prosecuting the case.

The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – An East Wareham man was sentenced yesterday in federal court in Boston for drug charges.

Evan Lopes, 28, was sentenced by U.S. District Court Judge Indira Talwani to three years of probation.  On May 23, 2017, Lopes pleaded guilty to possession of Methylone with intent to distribute. Lopes was the last of four Cape Cod co-defendants to plead guilty to drug and money laundering charges and the third to be sentenced.

On Jan. 15, 2015, law enforcement officers executed a search warrant at Lopes’ residence where they recovered two kilograms of Methylone from a woodpile on the property. Lopes stashed the drugs for co-defendant David Landry, who, from 2010 to 2014, led a drug and money laundering ring on Cape Cod. Landry was arrested by state authorities in September 2014, but continued to communicate with and direct his drug associates from prison. Landry asked Lopes to store the Methylone at his house in preparation for transferring it to another associate who would sell it for $40,000. 

From May 2014 to January 2015, Landry and another co-defendant, Justin Groom, conspired to manufacture and distribute marijuana. Landry, along with his mother, Diane Johnson, and Groom conspired to launder the drug proceeds in order to disguise the nature of the funds and continue their drug trafficking activities. Landry, a convicted felon, was also found guilty of the constructive possession of a .40 caliber semi-automatic pistol.  

Landry and Groom were sentenced in March 2017 to 78 months in prison and two years of probation, respectively. Johnson pleaded guilty to money laundering conspiracy on May 17, 2017, and is scheduled to be sentenced on Oct. 2, 2017.

Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Barnstable Police Chief Paul MacDonald; Barnstable County Sheriff James M. Cummings; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Cape & Islands District Attorney Michael O’Keefe made the announcement. Assistant U.S. Attorney Ted Heinrich of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.

BOSTON – A Haverhill man pleaded guilty today in U.S. District Court in Boston to robbing a branch of Santander Bank in Boston.  At the time of his arrest, the defendant was on probation for a prior bank robbery conviction in federal court.

Gregory Carter, 58, pleaded guilty to one count of unarmed bank robbery. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Nov. 16, 2017.  Carter was arrested and charged in May 2017. 

On the morning of March 25, 2017, an individual entered a branch of the Santander Bank on Commonwealth Avenue in Boston and handed a teller a note indicating a robbery.  The perpetrator stated that he had a gun and repeatedly gestured to his pocket.  During the robbery, the perpetrator pulled down a facemask he was wearing and exposed his skin and a thin moustache.  The teller handed the man $6,000 in cash, and the robber exited the bank.

Following the robbery, the teller gave the police a description of the robber, and officers reviewed images from exterior surveillance cameras, which revealed that the robber drove through the area in a black Ford Fusion sedan. Bank surveillance also recorded the robber returning to the sedan and driving away. 

On March 28, 2017, an officer aware of the recent bank robbery observed a black Ford Fusion on Dudley Street in Boston.  The driver, who matched the description of the robber, exited the vehicle and approached a branch of Bank of America.  When a police cruiser stopped in front of the bank, the individual turned around and returned to his vehicle.  The officer queried the vehicle’s registration number and learned that it belonged to Carter, and a criminal record check revealed that Carter was currently on probation for a prior bank robbery conviction in U.S. District Court. 

The charging statute provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 and restitution.  Sentences are imposed by a federal district court judge bases 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; Somerville Police Chief David Fallon; Haverhill Police Chief Alan DeNaro; and Boston Police Commissioner William Evans, made the announcement today.  The investigation was conducted with the assistance of the FBI’s Violent Crimes Task Force.  Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.

BOSTON – A Lawrence gang member was indicted today in federal court in Boston on federal firearms and drug charges.

Esmarin Santiago, 39, was charged with one count each of being a felon in possession of firearms and ammunition, possessing fentanyl with the intent to distribute, and possessing firearms during and in relation to a drug trafficking crime. Santiago was previously charged in a criminal complaint and arrested in July 2017.

According to court documents, Santiago is associated with the Latin Gangster Disciple street gang and has a lengthy criminal history including prior convictions for possession of firearms, assault and battery with a dangerous weapon, armed robbery, armed assault, and possession with intent to distribute a controlled substance.

On April 10, 2017, Santiago was allegedly found in possession of a Smith & Wesson 9 mm firearm, a Smith & Wesson .40 caliber firearm, 10 rounds of 9 mm ammunition, and 14 rounds of .40 caliber ammunition. He was also found in possession of over 40 grams of fentanyl.

The charge of being a felon in possession of a firearm provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of up to $250,000. The charge of possession with intent to distribute over 40 grams of fentanyl provides for a minimum sentence of five years and a maximum of 40 years in prison, a minimum of four years and a maximum of a lifetime of supervised release, and a fine of up to $5 million. The charge of possessing a firearm during and in relation to a drug trafficking crime provides for a mandatory minimum of five years and a maximum of life in prison to be served consecutively to any other sentence, five years of supervised release, and a fine up to $250,000. Sentences are imposed by a federal judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Middlesex District Attorney Marian T. Ryan made the announcement today. Assistant United States Attorney Kunal Pasricha of Weinreb’s Organized Crime & Gang Unit is prosecuting the case.

The details contained in the indictments are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – After deliberating for less than an hour, a federal jury in Boston convicted the leader of a kidnapping crew whose organization was involved in violent abductions including burning victims with hot irons.

Danny Veloz, a/k/a “Maestro,” 40, of Lawrence, was convicted of conspiracy to commit kidnapping following a two-week trial. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Nov. 17, 2017.

Veloz the leader of a violent, sophisticated kidnapping crew in Lawrence, was arrested on Sept. 28, 2012, following a wide-ranging investigation that targeted kidnapping and home invasion crews operating in Lawrence.  The majority of these kidnappings were carried out by organized, armed, violent crews often referred to as Joloperros (loosely translated as “Stick-up Guys”).

Veloz’s crew consisted of four other Lawrence men, Jose Guzman, a/k/a “Cano”; Gadiel Romero, a/k/a “TC”; Jose Matos, a/k/a “Boyca”; and Luis Reynoso, a/k/a “Prieto”; as well as Henry Maldonado, of Manchester, N.H.; and Thomas Wallace of Raynham, N.H.

On July 23, 2012, armed with firearms and wearing t-shirts with the word “police” on them, the crew kidnapped two men at gunpoint on Allston Street in Lawrence. The victims were transported to Manchester, N.H., and held overnight – during which time one was burned with a hot iron – before being rescued by law enforcement.  The July 23, 2012, kidnapping was one of several kidnappings or attempted kidnappings committed by Veloz’s crew in 2012.

A search of Veloz’s home resulted in the seizure of two laptop computers containing information about GPS tracking devices used to commit kidnappings, as well as cell phones used by Veloz to communicate with his associates. During trial, several individuals testified that in addition to the July 23, 2012, kidnapping, Veloz and his crew also attempted kidnappings on May 8, 2012, and July 8, 2012.

Since the investigation began in 2012, more than 20 people have been convicted of either kidnapping-related offenses or being associated with members of Lawrence-based kidnapping or home invasion crews.

Romero and Matos were sentenced to 23 years and 12 years in prison, respectively, and Guzman, Maldonado, Wallace and Reynoso are scheduled to be sentenced in October 2017.

The charge of conspiracy to commit kidnapping provides for a sentence of up to life in prison, five years of supervised release, and a fine of $250,000. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael 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; Essex County District Attorney Jonathan Blodgett; Lawrence Police Chief James X. Fitzpatrick; Manchester (N.H.) Police Chief Nick Willard; and Essex County Sheriff Kevin F. Coppinger made the announcement today. Assistant U.S. Attorney Christopher Pohl of Weinreb’s Organized Crime and Gang Task Force prosecuted the case.

BOSTON – The U.S. Attorney’s Office announced today that pharmaceutical companies Mylan Inc. and Mylan Specialty L.P. have agreed to pay $465 million to resolve allegations that they violated the False Claims Act by knowingly misclassifying EpiPen, a branded epinephrine auto-injector drug, as a generic drug to avoid paying rebates owed to Medicaid.  Mylan Inc. and Mylan Specialty L.P. are both wholly owned subsidiaries of Mylan N.V., a Dutch-registered entity headquartered in Canonsburg, Penn.

Congress enacted the Medicaid Drug Rebate Program to ensure that state Medicaid programs were not susceptible to price gouging by manufacturers of drugs that were available from only a single source.  It therefore subjected such single-source, or brand name drugs, to a higher rebate that includes any difference between the drug’s current price and the price the drug would have had if its price had increased only at the general rate of inflation.  In contrast, generic drugs originating from multiple manufacturers are subject to lower rebates that, at least until recently, did not include an inflationary component. 

The government contends that Mylan improperly avoided paying state Medicaid programs the higher rebates for branded drugs by misclassifying EpiPen as a generic drug, even though EpiPen had no FDA-approved therapeutic equivalents and even though Mylan marketed and priced EpiPen as a brand name drug.  Mylan raised the price of EpiPen by approximately 400% between 2010 and 2016.

“Mylan misclassified its brand name drug, EpiPen, to profit at the expense of the Medicaid program,” said Acting United States Attorney William D. Weinreb.  “Taxpayers rightly expect companies like Mylan that receive payments from taxpayer-funded programs to scrupulously follow the rules.  We will continue to root out fraud and abuse to protect the integrity of Medicaid and ensure a level playing field for pharmaceutical companies. We commend Sanofi for bringing this matter to our attention.”

“This settlement demonstrates the Department of Justice’s unwavering commitment to hold pharmaceutical companies accountable for schemes to overbill Medicaid, a taxpayer-funded program whose purpose is to help the poor and disabled,” said Acting Assistant Attorney General Chad A. Readler of the Department of Justice’s Civil Division.  “Drug manufacturers must abide by their legal obligations to pay appropriate rebates to state Medicaid programs.”  

As part of this settlement, Mylan has also entered into a corporate integrity agreement with the Department of Health and Human Services Office of Inspector General (HHS-OIG) that requires, among other things, an independent review organization to annually review multiple aspects of Mylan’s practices relating to the Medicaid drug rebate program.

“Our five-year corporate integrity agreement requires intensive outside scrutiny to assess whether Mylan is complying with the rules of the Medicaid Drug Rebate Program,” said Gregory E. Demske, Chief Counsel to the Inspector General for the U.S. Department of Health and Human Services. “In addition, the CIA requires individual accountability by Mylan board members and executives.”

A competing pharmaceutical manufacturer, Sanofi, raised this matter with the United States Attorney’s Office in 2014.  At the time, Sanofi was selling another epinephrine auto-injector drug called AUVI-Q and was reporting it to the Medicaid Drug Rebate Program as a brand name drug.  In 2016, Sanofi filed a complaint against Mylan under the qui tam provisions of the False Claims Act, which permits private parties to sue on behalf of the government and to receive a share of any recovery.  See United States ex rel. sanofi-aventis US LLC v. Mylan Inc., et al., No. 16cv11572 (D. Mass.).  As a result of today’s settlement, Sanofi will receive $38.7 million as its share of the federal recovery, plus a share of the states’ recovery.   

Acting U.S. Attorney Weinreb, Acting Deputy Assistant Attorney General Raab, and HHS OIG Chief Counsel Demske made the announcement today.  The matter was handled by Assistant U.S. Attorneys Gregg Shapiro and Kriss Basil of Weinreb’s Office, and by Trial Attorneys Augustine Ripa and Nicholas Perros of the Justice Department’s Civil Division.

BOSTON – A Dominican national was sentenced today in federal court in Boston for distributing heroin.

Luis Humberto Arias Lara, 41, was sentenced by U.S. District Court Judge Allison D. Burroughs to five months in prison, three years of supervised release, and will face deportation proceedings upon completion of his sentence. In July 2017, Arias Lara pleaded guilty to two counts of possession with intent to distribute and distribution of heroin.

On two occasions in September 2016 and January 2017, Arias Lara distributed heroin to an undercover officer in Waltham.

United States Attorney William D. Weinreb and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement. Valuable assistance was provided by the Suburban Middlesex County Drug Task Force. Assistant U.S. Attorneys Miranda Hooker and Susan Winkler of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.

BOSTON – A Brazilian national was indicted today in federal court in Boston in connection with using gift cards to withdraw over $6,000 from bank accounts that did not belong to him.

Hellison Benazi de Souza, 37, was indicted on one count of using counterfeit access devices (debit cards); one count of possessing fifteen or more counterfeit access devices (debit cards); three counts of possessing device-making equipment (skimming devices installed on ATMs in Malden and Saugus); one count of illegal transactions with an access device (other persons’ debit cards); and two counts of aggravated identity theft.

According to the complaint affidavit, on May 25, 2017, Benazi de Souza used ATMs at three banks in Lynn to withdraw over $6,000 from various accounts that did not belong to him. Law enforcement officers immediately apprehended Benazi de Souza, arrested him, and impounded his rental car.

While executing a search warrant for the car, officers found thousands of dollars in cash, all in $20 bills. Officers also found over 200 gift cards with small stickers on them. Agents learned that 15 of the cards matched debit cards associated with valid JPMorgan Chase bank accounts from which unauthorized withdrawals had been made at the three banks in Lynn on May 25, 2017. When questioned, Benazi de Souza admitted using the cards to withdraw money from ATMs and admitted that the stickers on the cards contained the cardholders’ PINs.

The charging statute for aggravated identity theft provides for a mandatory sentence of two years in prison, one year of supervised release, and a fine of up to $250,000. The charges of using counterfeit access devices and possessing fifteen or more counterfeit access devices provide for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. The charges of possessing device-making equipment and illegal transactions with an access device provide for a sentence of no greater than 15 years in prison, three years of supervised release, and a fine of $250,000. Benazi de Souza will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney William D. Weinreb and Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service, Boston Field Office, 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 charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – Peter Pan Bus Lines has entered into a settlement agreement with the United States Attorney’s Office to resolve allegations that the Springfield-based company violated Title III of the Americans with Disabilities Act (ADA) by discriminating against customers with disabilities.

Peter Pan is a major operator of fixed-route bus lines throughout the Northeast Corridor, carrying over four million passengers a year. Peter Pan allegedly failed to ensure that its motor coaches were accessible to individuals with disabilities. Although all coaches were equipped with wheelchair lifts as required by the law, lifts were not properly maintained and allegedly malfunctioned frequently, causing delays and disruptions for travelers using wheelchairs. Peter Pan drivers also allegedly failed to properly secure wheelchairs. Federal regulations under Title III of the ADA require that lifts and other accessibility equipment be properly and regularly maintained and prohibit private carriers from operating coaches with faulty equipment.

“Passengers with disabilities should be able to travel with the same convenience and dignity as other riders; they should not be subjected to delays and cancellations because of inoperable equipment,” said Acting United States Attorney William D. Weinreb. “We appreciate Peter Pan’s cooperation throughout this investigation and its commitment to ensuring that individuals with disabilities receive the same service as other passengers.”

Under the terms of the settlement agreement, Peter Pan will:

• train customer service agents, ticket agents, and bus operators on the requirements of the ADA;

• train drivers and other personnel on the use of wheelchair lifts and other accessibility equipment and institute testing of drivers’ knowledge of accessibility features; and,

• test all fixed-route coaches on a weekly basis to ensure accessibility features are operable and will remove faulty coaches from service until they are fully repaired.

Peter Pan has also agreed to pay damages to an individual identified during the investigation who encountered repeated delays due to defective accessibility equipment. On one occasion, the individual spent nearly eight hours trapped on a bus without access to essential medications due to a malfunctioning lift.

This matter was handled by Special Assistant U.S. Attorney Gregory J. Dorchak of the Civil Rights Unit.

The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.

BOSTON – A member of the Latin Kings street gang pleaded guilty today to distributing drugs in New Bedford.

Virgilio Adorno a/k/a “Trigga” a/k/a “Goyo,” 30, of New Bedford, pleaded guilty to one count of distribution of cocaine base, also known as crack cocaine. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Nov. 2, 2017.

In March 2017, federal authorities charged Adorno along with Rafael Reyes, Jonathan Garcia, and Avimael Ortiz in a series of cases brought following a long-term investigation into drug trafficking in the New Bedford area. Among other things, the investigation revealed that the Bonneau Court area of New Bedford had been overwhelmed by drug dealing and violent crime. Latin Kings gang members and associates were observed regularly using a section of Bonneau Court known as “The Pit” as a site for drug trafficking and other illegal activity. As part of the investigation, Adorno was caught selling crack cocaine to a cooperating witness in the Bonneau Court area. A subsequent search warrant executed at Adorno’s residence resulted in the seizure of additional crack cocaine.

Garcia and Ortiz previously pleaded guilty and are awaiting sentencing. Reyes has pleaded not guilty and is awaiting trial. He is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The charge of distribution of cocaine base 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. 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; New Bedford Police Chief Joseph C. Cordeiro; and Bristol County District Attorney Thomas Quinn made the announcement today. Assistant U.S. Attorneys Kunal Pasricha and Glenn A. MacKinlay of Weinreb’s Organized Crime & Gang Unit are prosecuting the case.

BOSTON – A Hyannis man was sentenced today in federal court in Boston for conspiring to possess a firearm in furtherance of a drug trafficking crime.

Benjamin Roderick, 21, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 14 months in prison and two years of supervised release.  In September 2016, Roderick pleaded guilty to conspiracy to possess a firearm in furtherance of a drug trafficking crime.

Roderick was one of 19 members and associates of the Cape Cod-based Nauti Block gang named in an October 2016 superseding indictment with various drug trafficking, money laundering and firearms offenses.  

On March 7, 2016, during an investigation into the gang’s operations, federal investigators intercepted telephone calls and text messages in which Roderick was planning to supply co-defendant Christopher Wilkins with a .38 caliber firearm in exchange for approximately 10 grams of heroin. Law enforcement officers followed Roderick and stopped his vehicle as he went to meet Wilkins to conduct the trade. The officers arrested Roderick and seized the firearm loaded with five rounds of ammunition.

In May 2017, Wilkins pleaded guilty to 15 counts of drug, money laundering, and firearm offenses and is scheduled to be sentenced on Sept. 18, 2017.

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 today. Assistant U.S. Attorneys Eric S. Rosen and Miranda Hooker of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.

BOSTON – Three Boston-area residents, including a former Gillette employee, pleaded guilty in federal court in Boston in connection with the online sales of stolen Gillette razor blades.

Joseph Evangelista, 63, of Lowell, pleaded guilty to one count of causing the interstate transportation of stolen property. Robert A. Liberatore, 52, of Wakefield, and Mark S. Girardin, 44, of Randolph, each pleaded guilty to two counts of filing false tax returns. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for all three defendants for Nov. 6, 2017.

Evangelista, a former employee of Gillette, stole razor blades from the Gillette manufacturing plant in South Boston and delivered the stolen goods to Liberatore and Girardin, who operated an online business called Cambridge Dedicated Services, through which they sold various items on eBay, including Gillette razor blades. Liberatore and Girardin failed to report income generated through Cambridge Dedicated Services on their annual federal tax returns.

The charge of causing the interstate transportation of stolen property provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Evangelista has also agreed to pay Gillette $56,023 in restitution.

The charge of filing false tax returns provides for a sentence of no greater than three years in prison, one year of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. In addition, Girardin and Liberatore will each be required to pay the IRS more than $100,000 in taxes that they owe plus penalties and interest. Sentences are imposed by a federal district judge based on the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney William D. Weinreb; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. Assistant U.S. Attorneys Sandra S. Bower and Christine Wichers of Weinreb’s Criminal Division are prosecuting the case.

We are disappointed in today’s verdict. The government believed, and continues to believe, that the conduct in this case crossed the line and constituted a violation of federal law. The defendants’ conduct was an affront to all of the hard-working and law-abiding members of organized labor. We will continue to aggressively prosecute extortion in all its forms to ensure that Boston remains a safe and welcoming place to do business. I would like to thank the Federal Bureau of Investigation and the Department of Labor’s Office of Inspector General for their work investigating this case.

BOSTON – A Springfield man pleaded guilty yesterday in federal court in Springfield to federal firearm offenses.

Martin Fernandez, 24, pleaded guilty to one count of possession of a firearm by a convicted felon and one count of possession of an unregistered firearm. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Nov. 14, 2017.

On Jan. 8, 2014, federal, state, and local law enforcement authorities in Springfield found Fernandez in possession of a sawed-off 16-gauge shotgun.

The charge of being a felon in possession of a firearm provides for a sentence of no greater than 10 years in prison, a minimum of one year but no greater than three years of supervised release, and a fine of up to $150,000. The charge of possession of an unregistered firearm provides for a sentence of no greater than 10 years in prison, a minimum of one year but no greater than three years of supervised release, and a fine of up to $10,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Hampden County District Attorney Anthony Gulluni; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Springfield Police Commissioner John Barbieri; and Holyoke Police Chief James Neiswanger made the announcement today.  Assistant U.S. Attorney Neil L. Desroches of Weinreb’s Springfield Branch Office is prosecuting the case.

BOSTON – A Mattapan man agreed to plead guilty yesterday in federal court in Boston to distributing cocaine and conspiring with others to distribute cocaine.

Francisco Torres, 37, a former employee at Logan International Airport who held a “Customs Seal,” a badge that permits entry to Federal Inspection Service areas to individuals who require access in order to perform their job duties, agreed to plead guilty to two counts of distributing cocaine and one count of conspiring with others to distribute cocaine. Judge Indira Talwani deferred acceptance of the plea until sentencing, which is scheduled for Nov. 8, 2017.

On Feb. 16, 2017, Torres was arrested in the South End neighborhood of Boston following a sting operation where he was caught exchanging 850 grams of cocaine for a paper bag containing more than $33,000 in cash. Immediately after the exchange, officers approached Torres, who threw the bag of cash over a fence. Officers arrested Torres and recovered the money.

The conspiracy charge and one count of the cocaine distribution charge provide for a mandatory minimum sentence of five years and no greater than 40 years in prison, a minimum of four years and up to a lifetime of supervised release, and a fine of $5 million. The remaining cocaine distribution charge provides for a maximum of 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 D. Weinreb; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in New England; Colonel Christopher Wagner, Director of the New Hampshire State Police; and Boston Police Commissioner William Evans made the announcement today. Assistant U.S. Attorneys John T. McNeil and Christine Wichers of Weinreb’s Criminal Division are prosecuting the case.

BOSTON – A Marstons Mills man was sentenced yesterday in federal court in Boston for his role in a heroin trafficking operation on Cape Cod.

Sean Pratt, 29, was sentenced by U.S. District Court Chief Judge Patti B. Saris to two years in prison and four years of supervised release.  On Sept. 16, 2016, Pratt pleaded guilty to conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin and possession of heroin with the intent to distribute.

Pratt purchased large quantities of heroin from Denzel Chisholm, a former Cape Cod gang leader and drug trafficker, and co-conspirator Brooke Cotell. Pratt then sold this heroin to other distributors and users. During a search of Pratt’s home, law enforcement officers recovered approximately 50 grams of heroin and a firearm.

In June 2017, Chisholm was convicted by a federal jury of multiple counts of federal drug charges, and on Aug. 7, 2017, Cotell was sentenced to 20 months in prison for distributing heroin on Cape Cod.

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 today. Assistant U.S. Attorneys Eric S. Rosen and Miranda Hooker of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.

BOSTON – A New Hampshire man was sentenced Friday, Aug. 11, 2017, in federal court in Boston for laundering the proceeds from illegal marijuana sales.

Douglas Mercier, 49, of Pelham, N.H., was sentenced by U.S. Senior District Court Judge Mark L. Wolf to four months in prison, three years of supervised release, and ordered to pay a fine of $25,000.  In February 2017, Mercier pleaded guilty to one count of conspiracy to launder monetary instruments.

On approximately 15 occasions between June and October 2015, Mercier made cash deposits - derived from the illegal sale of marijuana - of just under $10,000 to banks in Massachusetts and New Hampshire.

Acting U.S. Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement.  Assistant U.S. Attorney Eric Rosen of Weinreb’s Narcotics & Money Laundering Unit is prosecuting the case.

BOSTON – A Colombian national was sentenced on Friday, Aug. 11, 2017, in federal court in Boston for illegally reentering the United States after deportation.

Elkin Dario Macias Villa, 47, pleaded guilty to one count of unlawful reentry of a deported alien before U.S. District Court Judge Indira Talwani, who immediately sentenced Macias Villa to time served and one year of supervised release. Macias Villa will be subject to deportation upon completion of state court proceedings for a drug trafficking charge.

Macias Elkin was encountered in Boston on May 17, 2017, after having been previously deported from the United States in March 2004.

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 Christine J. Wichers of Weinreb’s Major Crimes Unit prosecuted the case.