District of Massachusetts
Press releases recorded for this federal judicial district.
New York Man Sentenced to Prison for Leading Multi-State Scheme to Obtain New Cell PhonesRead the Press Release
BOSTON - A New York man was sentenced yesterday in federal court in Boston in connection with a fraudulent scheme to obtain and re-sell more than $330,000 worth of new cell phones and for resuming the scheme after being indicted and released pending trial.
Kevin Johnson, 26, of New York City, was sentenced by U.S. District Court Senior Judge Mark L. Wolf to 70 months in prison, three years of supervised release and restitution to be determined at a later date. In December 2016, Johnson pleaded guilty to one count of wire fraud conspiracy. Johnson was initially arrested and charged in December 2014; he was then re-arrested in March 2015, after an investigation revealed that he had resumed the fraud less than a week after his pre-trial release.
From at least January 2014 through October 2014, Johnson, Jimmy Phan, David Hul, Curtis Peebles, and other co-conspirators called T-Mobile customer service centers impersonating T-Mobile employees and used dealer codes that enabled them to add any name as an authorized user on T-Mobile accounts. They then recruited “runners,” including Lee Tran, to go into T-Mobile stores and impersonate the customers. Johnson, Phan, Hul, and Peebles used the dealer codes, among other methods, to add either the runners’ real names or false identities to the customer accounts, sometimes using false names that closely matched the runners’ real names to reduce the likelihood of T-Mobile detecting the fraud.
Runners then went to T-Mobile stores in Massachusetts, Nevada, New Hampshire, New York, Pennsylvania, Rhode Island, New Jersey, Florida, and elsewhere where they presented identification in the real or assumed names and acquired one or more new cell phones on accounts that were eligible for upgrades. Runners returned the new phones to Phan, Hul, and Peebles who paid them a portion of the phone’s value. Johnson, Phan, and Hul re-sold the cell phones to other co-conspirators for distribution in the United States and abroad. In total, the scheme netted at least $330,000 worth of new cell phones. In the months after he was indicted, Johnson obtained another approximately $30,000 in AT&T cell phones.
Although T-Mobile regularly alerted its customers to changes to their accounts, the affected customers frequently did not learn of the fraudulent modifications in time to prevent the distribution of the phones.
Judge Wolf previously sentenced David Hul and Curtis Peebles to 21 and 18 months in prison, respectively, for their role in the scheme. Jimmy Phan and Lee Tran will be sentenced on May 9.
Acting United States Attorney William D. Weinreb; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Stephen Marks, Special Agent in Charge of the U.S. Secret Service’s Boston Field Office, made the announcement. The U.S. Attorney’s Office acknowledges T-Mobile and AT&T for their assistance with the investigation. Assistant U.S. Attorney Seth B. Kosto of Weinreb’s Cybercrime Unit is prosecuting the case.
Gloucester Seafood Executive Pleads Guilty to Tax ChargeRead the Press Release
BOSTON – A senior sales executive at a seafood processing company in Gloucester pleaded guilty today in federal court in Boston to tax fraud.
Richard J. Pandolfo, 71, of North Andover, pleaded guilty to one count of making and subscribing a false tax return. U.S. District Court Judge Richard G. Stearns scheduled sentencing for July 13, 2017. Pandolfo was indicted by a federal grand jury in June 2016.
From 2008 to 2012, Pandolfo received substantial supplemental income for his work at a seafood processing company in Gloucester from the company’s president. Some of those payments were made directly to Pandolfo or to his spouse, but Pandolfo did not report or pay taxes on any of those payments. Other payments were made by a corporate entity controlled by the seafood processor’s president to a purported interior design company set up in the name of Pandolfo’s spouse. Pandolfo did report that income, but improperly deducted personal expenses from that income as business expenses, thereby improperly reducing the taxes he owed. In total, Pandolfo failed to pay $25,879 in taxes, which, as part of the plea, he agreed to pay in restitution to the Internal Revenue Service.
The charging statute provides a sentence of no greater than three years in prison, one year of supervised release and a fine of $100,000. Actual sentences for federal crimes are typically less than maximum penalties. 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 Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement. Assistant U.S. Attorneys Stephen E. Frank and Brian A. Pérez-Daple of Weinreb’s Economic Crimes Unit are prosecuting the case.
Connecticut Financial Advisor Sentenced for Obstructing SEC InvestigationRead the Press Release
BOSTON – A Connecticut financial advisor was sentenced today in federal court in Boston for obstructing a Securities and Exchange Commission (SEC) investigation by attempting to conceal secret and improper referral payments he made in order to secure the business of a wealthy client.
John William Rafal, 67, the former president of a financial services company in Connecticut, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to one year of probation, with four months to be served in home detention and a fine of $4,000. Rafal has also entered into a separate agreement with the SEC, which, among other sanctions and penalties, will bar him for life from working in the securities industry. As part of the agreement, Rafal must also pay nearly $600,000 to the SEC.
In 2011, Rafal struck a deal with an attorney in which Rafal’s company would pay the attorney a $50,000 referral fee in return for recommending that a wealthy client become a client of the company. Rafal knew that this undisclosed payment violated federal and state regulations. After Rafal had already paid a portion of the fee, his company discovered the payments, stopped them, and directed Rafal to have the attorney return the money that had already been paid. Unbeknownst to the company, however, Rafal then secretly paid the referral fee to the attorney from his private checking accounts.
In May 2015, at the SEC’s office in Boston, Rafal testified about the referral agreement as part of a formal SEC examination. In his testimony, Rafal repeatedly described the referral matter as “cured,” “reverse[d],” “undo[ne],” or “fix[ed]” in an effort to prevent the SEC from learning about his secret payments to the attorney. In his testimony, Rafal never mentioned the checks he had written to the attorney out of his personal accounts. At the close of his testimony, the SEC asked Rafal whether he was aware of any other information that might be helpful to the SEC’s investigation. Rafal answered, “I’m not aware of any other information.”
Acting United States Attorney William D. Weinreb and SEC Inspector General Carl W. Hoecker made the announcement today. Assistant U.S. Attorney Brian Pérez-Daple of Weinreb’s Economic Crimes Unit prosecuted the case.
Taunton Man Pleads Guilty to Multiple Child Enticement and Child Pornography ChargesRead the Press Release
BOSTON - A Taunton man pleaded guilty today in federal court in Boston to child exploitation and related offenses in connection with coercing seven minors to send sexually explicit images.
Joseph Debrum, 40, pleaded guilty to seven counts of coercion and enticement of a minor, six counts of sexual exploitation of children and two counts of distribution of child pornography. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for July 18, 2017.
Between May 2014 and March 2015, Debrum assumed fictitious online identities of either a 21-year-old woman or a 16-year-old woman to coerce and entice seven minor victims living in six states to engage in sexually explicit conduct. Debrum enticed the victims to send him pictures of the conduct over the internet, or he viewed the acts live online while taking photos on his cell phone. Debrum coerced the victims, whose ages ranged from 14 to 16-years-old, including threatening to expose the photos. Debrum also disseminated some of the photos, which constitutes distribution of child pornography. He sent photos of one victim to that victim’s parent, as well as photos of a second victim to a third victim. On April 2, 2015, Debrum was interviewed by law enforcement and admitted to assuming fictitious female identities while communicating online with the victims. He also admitted to asking them to take nude pictures and, in some cases, to do specific sexual acts.
Each charge of sexual exploitation provides for a mandatory minimum sentence of 15 years and no greater than 30 years in prison, a mandatory minimum of five years and up to a lifetime of supervised release and a fine of $250,000. The charges of coercion and enticement of a minor provides for a mandatory minimum sentence of 10 years and no greater than a lifetime in prison, a mandatory minimum of five years and up to a lifetime of supervised release and a fine of $250,000. The charges of distribution of child pornography provides for a mandatory minimum sentence of five years and no greater than 20 years in prison, a mandatory minimum of five years and up to a lifetime of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based on the United States Sentencing Guidelines and other statutory factors.
United States Attorney William D. Weinreb and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Assistance was provided by the Taunton Police Department and Loudon County, Va., Sheriff’s Office. Assistant U.S. Attorneys Suzanne Sullivan Jacobus and Anne Paruti of Weinreb’s Major Crimes Unit are prosecuting the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better 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/.
Pennsylvania Man Pleads Guilty to Operating Bi-Coastal Marijuana Distribution RingRead the Press Release
BOSTON – A Pennsylvania man pleaded guilty today in federal court in Boston in connection with a large-scale marijuana distribution and money laundering ring operating between California and the East Coast.
Ratanack Oung, a/k/a Yoshi, 32, of Allentown, Pa., pleaded guilty to one count of conspiracy to distribute marijuana and one count of conspiracy to launder monetary instruments. In September 2016, Oung was indicted on these charges and arrested with co-conspirator Virayuth Chau, 40, of Temecula, Calif., who pleaded guilty in March 2013. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for July 13, 2017.
Beginning around January 2014, Chau and Oung shipped large quantities of marijuana from California to the East Coast of the United States. When payment for the marijuana was due, Oung collected drug proceeds from co-conspirators and deposited the cash (typically in an amount under $10,000) into one of many “feeder” accounts in banks on the East Coast, including in Massachusetts. The “feeder” accounts were maintained in the names of businesses or persons associated with Chau in order to disguise the nature and ownership of the drug proceeds flowing into the accounts. Once the money was deposited, it was either withdrawn in cash in California or transferred into a “target” account, which was an account controlled by Chau and then withdrawn. In total, the operation distributed between 1,000 to 3,000 kilograms of marijuana and laundered approximately $6,135,035 in drug proceeds.
The charge of conspiracy to distribute marijuana 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. The charge of money laundering provides a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. 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; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The DEA, Los Angeles Division, Riverside County (California) Sheriff’s Department and Murrieta (California) Police Department also assisted with the investigation. Assistant U.S. Attorney Eric Rosen of Weinreb’s Narcotics & Money Laundering Unit is prosecuting the case.
Springfield Man Sentenced for Distributing Heroin and Crack CocaineRead the Press Release
BOSTON – A Springfield man was sentenced yesterday in federal court in Springfield for drug distribution.
Jovan Torres, 27, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 22 months in prison and three years of supervised release. In January 2017, he pleaded guilty to three counts of distribution and possession with intent to distribute heroin and one count of distribution of heroin and crack cocaine.
On four separate days in July and August 2013, Torres distributed heroin. Torres also pleaded guilty to distributing crack cocaine during the same timeframe.
Acting United States Attorney William D. Weinreb and Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division made the announcement. Assistant U.S. Attorney Katharine A. Wagner of Weinreb’s Springfield Branch Office is prosecuting the case.
Previously Convicted State Representative Charged with Obstruction of JusticeRead the Press Release
BOSTON – John George, Jr., 70, was indicted today on one count of obstruction of justice in connection with concealing approximately $2.5 million in cash from the U.S. District Court following his sentencing proceedings in 2015.
In July 2015, George was sentenced to 70 months in prison and ordered to pay restitution in the amount of $688,772 and forfeiture of $1.38 million for embezzling hundreds of thousands of dollars from the Southeastern Regional Transit Authority (SRTA). George, however, reported to the Court that he only possessed approximately $28,000 in cash. In late 2015 and early 2016, the U.S. Attorney’s Office, working with the U.S. Marshals Service and the Internal Revenue Service’s Criminal Investigations, recovered more than $2.5 million in cash, as well as Rolex watches and jewelry that George had concealed in safe deposit boxes in New Bedford and Fairhaven.
The charging statute provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum. 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; Todd A. Damiani, Special Agent in Charge of the Department of Transportation, Office of the Inspector General, Office of Investigations; Joel P. Garland, Special Agent in Charge of IRS-CI; and U.S. Marshal John Gibbons for the District of Massachusetts made the announcement today. Assistant U.S. Attorney Doreen Rachal of Weinreb’s Asset Forfeiture Unit and the U.S. Marshals Service’s Asset Forfeiture Unit handled the criminal forfeiture. Assistant U.S. Attorneys Dustin Chao and Ryan M. DiSantis of Weinreb’s Public Corruption Unit are prosecuting the criminal case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
New Hampshire Company Pleads Guilty to Trafficking Counterfeit Patriots Playoff T-ShirtsRead the Press Release
BOSTON – A New Hampshire company pleaded guilty today in federal court in Boston to trafficking counterfeit New England Patriots AFC Championship and Super Bowl t-shirts during the 2015 NFL playoffs.
CK Productions, Inc., based in Pelham, N.H., pleaded guilty to trafficking in counterfeit goods. U.S. District Court Senior Judge Mark L. Wolf scheduled sentencing for Sept. 6, 2017.
From January through February 2015, CK Productions printed and sold approximately 1,724 counterfeit t-shirts, with a total retail value of approximately $29,405. The playoff t-shirts bore the trademarked words “Patriots” and “Super Bowl” and the Patriots logo:
NEW ENGLAND PATRIOTS LLCThe penalty for trafficking in counterfeit goods against a corporation is a fine of no greater than $5 million. Actual sentences for federal crimes are typically less than the maximum penalties. 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 Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Adam Bookbinder, Chief of Weinreb’s Cyber Crime Unit, is prosecuting the case.
Nahant Man Indicted on Extortion ChargeRead the Press Release
BOSTON – A Nahant man was indicted today in connection with arranging and paying for a local business owner to be assaulted.
Gary P. DeCicco, 58, was indicted on one count of attempted extortion. DeCicco was initially arrested and charged in March 2017.
According to court documents, in approximately 2004 or 2005, DeCicco sold land to the victim for $750,000. Shortly after construction began on the land in 2013, DeCicco asked the victim to be a partner in a car dealership the victim was building. When the victim refused to give DeCicco an interest in his business, DeCicco paid other individuals to arrange to threaten and assault the victim. On Jan. 11, 2015, the victim was assaulted at his business – an incident that was captured on video surveillance – and suffered several injuries, including a broken jaw.
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. Actual sentences for federal crimes are typically less than the maximum penalties. 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; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. Assistant U.S. Attorney Kristina E. Barclay of Weinreb’s Public Corruption Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
MS-13 Member Pleads Guilty to Attempted Murder of Rival Gang MemberRead the Press Release
BOSTON – A member of MS-13’s East Boston Loco Salvatrucha (EBLS) clique pleaded guilty yesterday in connection with the assault of a rival gang member in East Boston.
Christian Alvarado, a/k/a “Catracho,” 28, of East Boston, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as racketeering or RICO conspiracy, and conspiracy to distribute 100 grams or more of heroin. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for July 6, 2017.
After a three-year investigation, Alvarado was one of 61 persons named in a January 2016 superseding indictment targeting the criminal activities of alleged leaders, members, and associates of MS-13 in Massachusetts. As alleged in court documents, MS-13 was identified as a violent transnational criminal organization whose branches or “cliques” operate throughout the United States, including in Massachusetts. MS-13 members are required to commit acts of violence to maintain membership and discipline within the group. Specifically, MS-13 members are required to attack and murder gang rivals whenever possible.
On May 11, 2008, Alvarado and other MS-13 members, including fellow EBLS member Edgar Pleitez, also known as “Cadejo,” attempted to murder a gang rival by beating him near a soccer stadium in East Boston. Alvarado also allegedly conspired with Santos Portillo-Andrade, also known as “Flaco,” the leader of the EBLS clique, and Pleitez to distribute 100 grams or more of heroin. On several occasions in August 2015, Alvarado and Pleitez were recorded selling heroin to a cooperating witness. In addition, using a court-authorized wiretap, federal agents intercepted telephone calls between Alvarado and Portillo-Andrade in which the two men allegedly discussed selling a half-kilogram of heroin for $26,000. On Oct. 26, 2015, agents followed Alvarado and Portillo-Andrade to the sale, after which, the agents stopped Alvarado and Portillo-Andrade’s car and seized $26,000 in cash as well as a loaded firearm and a machete.
The RICO conspiracy charge provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000. The charge of conspiracy to distribute 100 grams or more of heroin provides for a mandatory minimum sentence of five years and no greater than 40 years in prison, a minimum of four years and up to a lifetime of supervised release, and a fine of up to $8 million.
Alvarado is the thirteenth defendant to plead guilty in this case. Other defendants have pleaded guilty to RICO conspiracy, drug trafficking, document fraud, and immigration offenses.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Commissioner Thomas Truco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief Joseph Cafarelli; and Somerville Police Chief David Fallon made the announcement.
The details contained in the charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former UPS Employee Sentenced for Drug TraffickingRead the Press Release
BOSTON – A former United Parcel Service (UPS) employee was sentenced today in federal court in Boston in connection with his role in a cocaine trafficking organization that shipped cocaine concealed in UPS packages from Puerto Rico to Massachusetts.
Jorge Carrasquillo-Ortiz, 41, of Toa Baja, Puerto Rico, was sentenced by U.S. District Court Senior Judge Rya Zobel to three years in prison and two years of supervised release. In January 2017, Carrasquillo-Ortiz pleaded guilty to one count of attempted distribution of 500 grams of cocaine.
Carrasquillo-Ortiz, a UPS employee in Puerto Rico, worked on behalf of a drug trafficking organization that shipped cocaine laden packages from Puerto Rico to Massachusetts via UPS. Carrasquillo-Ortiz was paid $1,200 for each kilogram of cocaine that he shipped on behalf of the drug trafficking organization. In June 2016, a cooperating witness began placing recorded telephone calls to Carrasquillo-Ortiz in which they made plans for a six-kilo shipment. The telephone calls culminated in the delivery of a box containing six kilos of “sham” cocaine to Carrasquillo-Ortiz in Puerto Rico, who then snuck the package through UPS security, which was then placed on a UPS airplane and delivered to Massachusetts. Carrasquillo-Ortiz then called back the cooperating witness, expecting payment for his services; instead, Carrasquillo-Ortiz was arrested at his home in August 2016.
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; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; 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 Eric S. Rosen of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.
Adoption Counselor Convicted of Stealing Personal Information from Former EmployerRead the Press Release
BOSTON - A former employee of Tufts Health Plan was convicted yesterday by a federal jury in Boston of stealing the identifying information of over 3,000 Medicare customers.
Lynrolte Cezaire, 29, of Medford, was convicted following a seven-day jury trial of unlawfully disclosing Social Security numbers and aggravated identity theft. U.S. District Court Judge George A. O’Toole, Jr. scheduled sentencing for July 13, 2017. Cezaire currently works at Adoption Resource Associates.
From 2011 to 2014, Cezaire worked in the Medicare enrollment department at Tufts Health Plan in Watertown. During her employment, Cezaire helped a coworker, Emeline Lubin, photograph Cezaire’s computer screen while it displayed lists of Medicare customers’ names, dates of birth and Social Security numbers. Lubin then gave the information to Sniders Jean-Jacques, a Florida man, who, along with Lubin’s brother, Marvin Lubin, was involved in a scheme to use stolen identities to steal Social Security benefits and to file false tax returns to collect the refunds.
In December 2014, Jean-Jacques was sentenced to two years in prison. In October 2014, Marvin Lubin was sentenced to one year and one day in prison.
The charge of aggravated identity theft provides for a mandatory sentence of two years in prison. The charge of unlawfully disclosing Social Security numbers provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. 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; Scott Antolik, Special Agent in Charge of the Office of Inspector General, Social Security Administration, Office of Investigations – Boston Field Division; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service, Boston Field Office, made the announcement. Assistance was also provided by the Suffolk County District Attorney’s Office. Special Assistant U.S. Attorney Timothy Landry and Assistant U.S. Attorney Robert Richardson of Weinreb’s Major Crimes Unit are prosecuting the case.
Six Charged with Trafficking Counterfeit SteroidsRead the Press Release
BOSTON – Six individuals were arrested today and charged in federal court in Boston in connection with conspiracy to traffic in counterfeit steroids, including testosterone and trenbolone, which are illegally used for body building.
Tyler Bauman, a/k/a Tyler Baumann, a/k/a “musclehead 320,” 32, of Shrewsbury; Kathryn Green a/k/a Katie Green, a/k/a Katy Green, 28, of Shrewsbury; Philip Goodwin, 36, of Lynn; Robert Medeiros, 31, of Gardner; Brian Petzke, 49, of Saugus; and Melissa Sclafani, 29, of Gloucester, were charged with one count of conspiracy to traffic in counterfeit drugs and one count of conspiracy to distribute controlled substances. The defendants are scheduled to appear in U.S. District Court in Boston at 3:00 p.m.
According to the criminal complaint, the defendants engaged in a scheme to produce and market illegal steroids by purchasing raw materials and supplies, marketing the steroids on social media and selling them to customers across the country via email. It is alleged that the defendants marketed the steroids as being made by “Onyx Pharmaceuticals,” using both the Onyx name and symbols; however, Onyx, a pharmaceutical company owned by Amgen, Inc., a biopharmaceutical company based in California, does not manufacture liquid steroids. The defendants allegedly made the steroids themselves, using raw steroids imported from overseas, including from China. Bauman promoted the steroids through his social media persona, “musclehead 320,” claiming in his public posts that he was merely “sponsored” by “Onyx.” In addition, Bauman, Goodwin and Sclafani opened Wicked Tan, a tanning salon in Beverly, which allegedly served as a front to launder funds and purchase supplies for the conspiracy.
The charge of conspiracy to traffic in counterfeit drugs provides a sentence of no greater than five years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain/loss, whichever is greater. The charge of conspiracy to distribute controlled substances provides a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $500,000 or twice the gross gain or loss, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. 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 made the announcement today. Assistance was provided by the Drug Enforcement Administration, New England Field Division; Massachusetts State Police; Boston Police Department; Massachusetts Bay Transportation Authority Police Department; Customs and Border Protection; and Lynn, Shrewsbury, Gloucester, Saugus, and Gardner Police Departments. Assistant U.S. Attorneys Amy Harman Burkart and David J. D’Addio of Weinreb’s Cybercrime Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Acting U.S. Attorney Weinreb Closes Federal Investigation of Islamic Cemetery Proposal in Town of DudleyRead the Press Release
BOSTON – Acting United States Attorney William D. Weinreb announced today that, due to the recent approval of the settlement between the Town of Dudley and the Islamic Society of Greater Worcester, his office is closing the investigation into whether the Town of Dudley violated a federal civil rights law that protects against religious discrimination.
“We are pleased that the town of Dudley and the Islamic Society of Greater Worcester reached an agreement,” said Acting U.S. Attorney Weinreb. “Our role is to ensure that cities and towns do not discriminate on the basis of religion, and the agreement affirms the commitment by both parties to abide by federal law.”
In August 2016, the U.S. Attorney’s Office launched an investigation to determine whether the Town of Dudley had infringed on the Islamic Society of Greater Worcester’s right to religious exercise, by placing unreasonable barriers to, and previously denying, their request for a permit to establish an Islamic cemetery. Although the parties signed a settlement agreement in December 2016, the U.S. Attorney’s Office kept its investigation open, pending final approvals from the Town of Dudley.
The U.S. Attorney’s Office is authorized to investigate allegations of discriminatory treatment under the Religious Land Use and Institutionalized Persons Act, which, among other things, prohibits discrimination against any assembly or institution on the basis of religion.
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.
Owner of Trash Company Pleads Guilty to FraudRead the Press Release
BOSTON – The owner of a trash company pleaded guilty today in federal court in Boston in connection with defrauding the operator of the Fall River Landfill out of approximately $473,000 in disposal fees.
Stephen P. Aguiar, Jr., 47, of Westport, pleaded guilty to three counts of mail fraud. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for July 17, 2017.
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. Aguiar claimed he was disposing trash from the FRHA, when in fact he was disposing trash collected from his private clients, thereby defrauding Fall River Landfill of approximately $473,000 in revenue.
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, restitution and forfeiture. Actual sentences for federal crimes are typically less than the maximum penalties. 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; 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 is prosecuting the case.
Hingham Man Pleads Guilty to Defrauding InvestorsRead the Press Release
BOSTON – A Hingham man pleaded guilty today in U.S. District Court in Boston in connection with defrauding neighbors and other acquaintances by agreeing to invest their money which he then stole for his own use or to pay off earlier investors.
Stephen S. Eubanks, 48, pleaded guilty today to one count of wire fraud after being charged and arrested in November 2016. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for July 11, 2017.
In February 2010, Eubanks opened Eubiquity Capital LLC, a hedge fund that, by 2016, took in approximately $529,000 in investor funds. Eubanks was previously a registered broker with several large brokerage firms, but was terminated in the wake of customer complaints and other disciplinary issues. In 2013 and 2014, Eubanks nonetheless told two acquaintances that he was a registered financial advisor running a hedge fund affiliated with Goldman Sachs, TD Ameritrade, UBS Bank and Fidelity Investments. One of the acquaintances invested $125,000 with Eubanks, while the other invested $20,000. A third person, living in Florida, invested $50,000 with Eubanks in 2013.
Eubanks invested some of his clients’ funds, but used a significant portion for personal expenses. Moreover, when asked for account statements summarizing the fund’s performance, Eubanks fabricated account statements or used account statements from unrelated accounts to deceive his clients into believing that their money had earned a healthy return. In some instances, Eubanks ran the fund as a Ponzi scheme, using money deposited with him by newer investors to pay returns to earlier investors. Eubanks defrauded 32 people of approximately $435,000.
The charging statute provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. 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; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The Massachusetts Securities Division, which conducted an earlier civil investigation of Eubanks, provided significant assistance to the U.S. Attorney’s Office.
Assistant U.S. Attorney Andrew E. Lelling of Weinreb’s Economic Crimes Unit is prosecuting the case.
Georgetown Woman Pleads Guilty to Embezzling over $60,000 Dollars from EmployerRead the Press Release
BOSTON – A Georgetown woman pleaded guilty today in federal court in Boston to embezzling over $60,000 from her former employer.
Michelle Higson, 41, pleaded guilty to one count of bank fraud and two counts of uttering a forged security. U.S. District Court Judge Denise J. Casper scheduled sentencing for July 26, 2017.
Higson worked as a part-time bookkeeper at a Rowley-based company where she was responsible for handling the company’s accounts payable, and used the company’s accounting software program to do so. From December 2013 through January 2015, Higson stole a series of the company’s checks and made them payable to cash. Higson then forged her employer’s signatures on the stolen checks, endorsed them herself, and deposited them for cash, which she used for personal expenses.
To conceal her criminal conduct and avoid detection by company officials, Higson falsified entries in the company’s general ledger to make it appear as if the stolen checks had been issued to satisfy payment to bona fide vendors. In total, Higson embezzled over $60,000.
The charge of bank fraud provides for a sentence of no greater than 30 years in prison, five years of supervised release and a fine of $1 million. The charge of uttering a forged security provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. 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 Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. Assistant U.S. Attorney Anne Paruti of Weinreb’s Major Crimes Unit is prosecuting the case.
Federal Felon Pleads Guilty to New Drug and Firearm OffensesRead the Press Release
BOSTON – A Haverhill man, with prior criminal convictions in New York, pleaded guilty recently in U.S. District Court in Boston to drug and firearm offenses.
Gamal Jones, 37, pleaded guilty on Friday, April 7, 2017, to one count of being a felon in possession of a firearm and three counts of distribution of a controlled substance. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for July 6, 2017.
On Jan. 14, 2016, Jones was arrested following an investigation into cocaine distribution in Haverhill. Jones was found in possession of over 80 grams of crack cocaine, a Taurus .45 caliber handgun and a box of .45 caliber ammunition. Jones was previously convicted in federal court in Brooklyn, N.Y., for being a felon in possession of a firearm, in addition to prior convictions for criminal possession of a controlled substance, criminal possession of a loaded firearm, and assault in the third degree.
The charge of being a felon in possession of a firearm and ammunition provides for a sentence of no greater than 10 years in prison, up to three years of supervised release and a fine of $250,000. The charge of distribution of a controlled substance 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. Actual sentences for federal crimes are typically less than the maximum penalties. 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 Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives made the announcement today. Assistant U.S. Attorneys Nicholas Soivilien and John T. McNeil of Weinreb’s Criminal Division are prosecuting the case.
Fugitive Sought in $1.5 Million Quincy Real Estate Scheme Arrested in FloridaRead the Press Release
BOSTON – A man accused of a fraudulent $1.5 million real estate investment scheme in Quincy, Mass., and who had been a fugitive for 20 years in connection with an unrelated New York grand theft and larceny indictment, was arrested today in Delray Beach, Fla., on federal charges in connection with the Quincy scheme.
Scott J. Wolas, 67, who, according to court documents, also used the names Eugene J. Grathwohl, Allen L. Hengst, Drew Prescott, Frank Amolsch, Endicott Asquith, and Cameron Sturge, was charged by criminal complaint with wire fraud and aggravated identity theft in connection with the proposed development of the former Beachcomber Bar property and the adjoining lot in Quincy. He appeared in the U.S. District Court in the Southern District of Florida (West Palm Beach Division) at 10:00 a.m. on Friday, April 7, 2017, for his initial appearance. Wolas is expected to return to Massachusetts at a later date to appear in federal court in Boston.
According to court documents, from at least 2009 through 2016, Wolas, using the name Eugene Grathwohl, operated a real estate business known as Increasing Fortune, Inc. and worked as a licensed real estate agent for Century 21 in Quincy. From 2014 through 2016, he solicited investments for the development of the Beachcomber Bar property located at 797 Quincy Shore Drive and for the construction of a single-family home on the adjacent property. He collected more than $1.5 million from at least 19 investors and promised each of them a significant return on their investments. He allegedly promised to pay out at least 125% of the profits related to the single-family home construction.
Wolas was scheduled to close on the Beachcomber property on Sept. 15, 2016. A week before, however, he left Quincy and ceased all contact with his then-girlfriend, his co-workers, and his investors. Law enforcement then discovered that Grathwohl was actually Wolas, a former lawyer who had been a fugitive since 1997 after being charged with fraud and grand larceny in New York. The real Eugene Grathwohl resides in Florida and is a friend of Wolas’ ex-wife.
The court documents also indicate that the bank account into which Wolas deposited investor funds has been drained, and that Wolas used the money mostly for his personal expenses unrelated to development of the real estate projects.
The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss. Aggravated identity theft carries a minimum term of two years’ imprisonment, which must be served consecutively to any term for the wire fraud, one year of supervised release and a fine of up to $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the US 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; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Quincy Police Chief Paul Keenan made the announcement today. Assistant U.S. Attorney Sandra S. Bower of Weinreb’s Economic Crimes Unit is prosecuting the case.
U.S. Postal Service Worker Sentenced for Importing Anabolic SteroidsRead the Press Release
BOSTON - An employee of the United States Postal Service (USPS) was sentenced today on one count of importing a controlled substance.
John A. Psehoyas, 54, of Methuen, was sentenced by U.S. District Court Senior Judge Douglas P. Woodlock to six months in prison, to be followed by two years of supervised release and 200 hours of community service to be completed during supervised release. On Jan. 4, 2017, Psehoyas pleaded guilty to importation of a controlled substance.
Psehoyas was a customer service supervisor at the Lynnfield, Mass. Post Office. From August 2014 to March 2016, Psehoyas purchased anabolic steroids, a controlled substance, from online sources and had them shipped to him from China, Poland, Turkey and Romania. The parcels were addressed to multiple addressees at various locations to avoid suspicion. Psehoyas retrieved the parcels by tracking them with a USPS tracking system.
Acting United States Attorney William D. Weinreb and Eileen Neff, Special Agent in Charge of the U.S. Postal Service, Office of Inspector General, Boston Field Office, made the announcement today. Eugenia M. Carris of Weinreb’s Public Corruption Unit prosecuted the case.
Restaurant Owners Charged in Tax Fraud SchemeRead the Press Release
BOSTON – Three restaurant owners were charged yesterday in a superseding indictment with tax fraud in connection with the operation of three Boston-area restaurants.
Hazrat Khan, 57, of Middletown, NY; Khurshed Iqbal, 57; and Rahman Zeb, 60, all Pakistani nationals, were charged in an 18-count superseding indictment with conspiracy and willful failure to pay over taxes. Khan and Iqbal were initially indicted in April 2016. Khan remains on pretrial release; Iqbal and Zeb’s whereabouts are unknown.
According to court documents, the defendants defrauded the government and avoided paying payroll and income taxes owed by two Crown Fried Chicken restaurants located in Boston and Chelsea and the New York Fried Chicken restaurant in Mattapan. Khan and Iqbal allegedly took steps to conceal their ownership interests in two of the stores and another conspirator, acting at their direction, provided the tax preparers for those stores with false information about the restaurants’ payroll and income, causing the tax preparers to file false tax returns. The indictment alleges a similar scheme at the Mattapan store, where Khan and Zeb conspired to provide tax preparers with false payroll and income information, resulting in the filing of false tax returns for that store as well.
Federal law requires employers to withhold payroll taxes and then pay them over to the IRS. To avoid paying taxes, Khan, Iqbal and Zeb are alleged to have falsely reported the number of employees—some of whom were undocumented workers—and wages paid to the IRS. They are also alleged to have paid employees under the table and filed income-tax returns that falsely described their sales, total income, compensation of officers, salaries and wages, and taxable income.
The charge of conspiracy provides for a sentence of no greater than five years in prison, a maximum of three years of supervised release, a fine of $250,000 and restitution. The charge of willful failure to pay over taxes provides for a sentence of no greater than five years in prison, a maximum of three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater, and restitution. Actual sentences for federal crimes are typically less than maximum penalties. 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; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner William Evans made the announcement. The case was investigated with the cooperation of the Massachusetts Insurance Fraud Bureau. Assistant U.S. Attorneys John A. Capin and Brian A. Pérez-Daple of Weinreb’s Criminal Division are prosecuting the case.
The details contained in the Indictment are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Mattapan Man Indicted on Cocaine Distribution and Conspiracy ChargesRead the Press Release
BOSTON – A Mattapan man was indicted today in U.S. District Court in Boston in connection with distributing cocaine and conspiring with others to distribute cocaine.
Francisco Torres, 37, was indicted today on two counts of distributing cocaine and one count of conspiring with others to distribute cocaine. On Feb. 16, 2017, Torres was arrested in the South End neighborhood of Boston following a sting operation where he was caught allegedly exchanging 850 grams of cocaine for a paper bag containing more than $33,000 in cash. Immediately after the exchange, officers approached Torres, who subsequently threw the bag of cash over a fence. Officers arrested Torres and recovered the money. Torres was initially detained, but released on bond after appearing before U.S. Magistrate Judge M. Page Kelley.
The two charges of cocaine distribution each provide for a minimum 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 third charge of conspiracy 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. Actual sentences for federal crimes are typically less than the maximum penalties. 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 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 Christine Wichers and John T. McNeil of Weinreb’s Criminal Division are 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.
Worcester Nurse Sentenced for Drug TamperingRead the Press Release
BOSTON – A Worcester nurse was sentenced today in connection with stealing painkillers from the nursing home where she worked, and then attempting to conceal her crime by replacing the medication with saline.
Lea Roberge, 33, was sentenced by U.S. District Court Judge Timothy S. Hillman to 20 months in prison and three years of supervised release. In January 2017, Roberge pleaded guilty to two counts of tampering with a consumer product, specifically the Schedule II controlled substance morphine, which is used for pain relief.
On two separate occasions in March 2015, while working as a registered nurse at Holy Trinity Eastern Orthodox Nursing and Rehabilitation Center, Roberge tampered with morphine sulfate contained in emergency narcotic kits. The kits are available for use at the nursing home in case of an emergency when there is not enough time to obtain medication from the pharmacy. Roberge, who had access to these emergency narcotic kits, used a syringe to extract morphine from six vials and one bottle. In an attempt to avoid detection, she replaced the extracted medication with saline, thereby decreasing the potency of the drug.
Acting United States Attorney William D. Weinreb; Jeffrey Ebersole, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office; and Commissioner Monica Bharel, MD, MPH, of the Massachusetts Department of Public Health, made the announcement today. Assistant U.S. Attorney Michelle Lauren Dineen Jerrett of Weinreb’s Worcester Branch Office prosecuted the case.
Two New Bedford Residents Plead Guilty to Heroin TraffickingRead the Press Release
BOSTON – Two New Bedford residents pleaded guilty today in U.S. District Court in Boston in connection with a wide-ranging conspiracy that distributed heroin throughout Bristol County, Mass., and Providence, Rhode Island.
Eric Desousa, 26, of New Bedford, pleaded guilty today in U.S. District Court in Boston to conspiracy to distribute and possess with intent to distribute heroin and three counts of possession of heroin with the intent to distribute. Tyson Depina, 40, of New Bedford, pleaded guilty to conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin and three counts of possession of heroin with the intent to distribute. U.S. District Court Senior Judge Douglas P. Woodlock scheduled sentencing for July 13, 2017, for both Depina and Desousa.
According to court documents, Depina had been receiving heroin from Sharik Mendes, who was sentenced in federal court for heroin trafficking in January. In the spring of 2016, Depina began receiving heroin from Eric Desousa. On April 14, 2016, investigators watched Desousa distribute heroin to Depina. Depina was then arrested in possession of this heroin. During the arrest process, however, Depina fled and attempted to destroy the heroin. An officer in pursuit was covered in the heroin that Depina attempted to destroy. As a result, the officer had to be taken to the hospital. A subsequent lab test confirmed that the heroin seized from Depina was a mixture of heroin and the deadly drug fentanyl, which has been responsible for hundreds of overdose deaths in Massachusetts.
On June 6, 2016, investigators watched as Desousa attempted to deliver heroin to a customer in New Bedford. Desousa was arrested and law enforcement obtained a search warrant for Desousa’s residence in New Bedford, where they found nearly 300 grams of a mixture of heroin and fentanyl and more than $8,000 in cash.
The charges against Desousa for conspiracy to distribute heroin and possession of heroin with the intent to distribute provide for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of $1 million. The charges against Depina for conspiracy to distribute heroin and possession of heroin with the intent to distribute provide for a sentence of no less than five years and up to 40 years in prison, a minimum of four years and up to a lifetime of supervised release, and a fine of up to $5 million. Actual sentences for federal crimes are typically less than the maximum penalties. 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; Fall River Police Chief Daniel S. Racine; and New Bedford Police Chief Joseph C. Cordeiro, made the announcement today. Assistant U.S. Attorney Eric S. Rosen of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
Springfield Man Sentenced for Cocaine DistributionRead the Press Release
SPRINGFIELD – A Springfield man was sentenced today in U.S. District Court in Springfield for conspiring to distribute cocaine.
Radames Perez, 39, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 41 months in prison and three years of supervised release. In January 2017, Perez pleaded guilty to two counts of conspiracy to distribute cocaine.
On January 29, 2014, Perez conspired to distribute cocaine with an individual cooperating with federal agents. The transaction was captured on video and audio recordings. Perez pleaded guilty to conspiring to distribute more than one kilogram of cocaine in connection with that transaction.
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 Neil L. Desroches and Deepika Bains Shukla of Weinreb’s Springfield Branch Office prosecuted the case.
Cape Cod Man Pleads Guilty to Heroin and Suboxone TraffickingRead the Press Release
BOSTON – A Hyannis man pleaded guilty today in U.S. District Court in Boston in connection with trafficking heroin and suboxone with Denzel Chisholm and the “Nauti-Block” gang.
Tyrone Gomes, 31, pleaded guilty to conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin, possession of heroin with the intent to distribute, and conspiracy to distribute suboxone. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for July 25, 2017.
Chisholm’s arraignment is set for April 13, 2017, in U.S. District Court in Boston. Both Gomes and Chisholm are also facing charges in Massachusetts state court related to the September 2015 murder of Christine Ferreira at a rest stop on Route 6 on Cape Cod.
In October 2015, spurred by the murder of Ferreira, law enforcement initiated an effort to address the rising opioid epidemic and its subsequent violence in Massachusetts and on Cape Cod in particular. According to court documents, Chisholm, Gomes, and other co-conspirators were responsible for a significant quantity of the heroin distributed on Cape Cod. A wiretap investigation led to their arrests and indictments. Gomes received large quantities of heroin from Chisholm, which he sold to other drug dealers and individual users. On March 6, 2016, Chisholm arranged to sell Gomes 12 grams of heroin in exchange for cash and 10 suboxone strips. The suboxone was ultimately destined for Browning Mejia, an inmate at MCI-Norfolk and an associate of Chisholm. As a result of the investigation, agents were able to stop Gomes’ vehicle and recover 12 grams of heroin from Gomes.
Because Gomes has a prior felony drug conviction from 2010, the charge of conspiracy to distribute and possession with the intent to distribute 100 grams or more of heroin provides for a mandatory minimum sentence of 10 years and up to a lifetime in prison, a minimum of eight years and up to a lifetime of supervised release, and a fine of up to $8 million. The charge of conspiracy to distribute suboxone, a Schedule III controlled substance, provides for a term of imprisonment of up to 30 years, a minimum of four years of supervised release, and a fine of up to $1 million. The charge of possession of heroin with the intent to distribute provides for a sentence of up to 30 years in prison, a minimum of six years of supervised release, and a fine of up to $2 million. Actual sentences for federal crimes are typically less than the maximum penalties. 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; 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. Attorney Eric S. Rosen of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in indictments are allegations. Defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Honduran National Pleads Guilty to Illegal ReentryRead the Press Release
BOSTON – A Honduran man pleaded guilty yesterday in U.S. District Court in Boston to being a previously deported alien present in the United States.
Rumeni D. Romero, 32, a Honduran citizen, pleaded guilty to a one-count indictment of being a previously deported alien present in the United States. U.S. District Court Senior Judge Douglas P. Woodlock scheduled sentencing for July 11, 2017.
In January 2017, Romero was encountered by agents in Chelsea and determined to be illegally present in the United States. During an interview, Romero admitted to being an alien who had multiple prior deportations and that he had not received permission to reenter the United States.
According to court documents, between 2006 and 2013, Romero was deported four times. In 2004, he was determined to be illegally present in the United States and was placed into removal proceedings. On Feb. 23, 2006, he was deported to Honduras. In January 2010, while serving a sentence at the Suffolk County House of Corrections, Romero was again determined to be illegally present in the United States. Following the completion of his sentence, Romero was placed into removal proceedings, and on April 5, 2010, he was deported to Honduras. Later that same year, in December 2010, Romero was encountered by agents in Texas, determined to be illegally present in the U.S. and charged with illegal reentry. He pleaded guilty and was again deported in June 2011 following the completion of his sentence. In December 2012, Romero was arrested in Somerville, Mass., and deported for the fourth time on Dec. 12, 2013.
The charging statute provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of up to $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. 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 Etre, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit.
Cape Cod Woman Pleads Guilty to Heroin TraffickingRead the Press Release
BOSTON – A Hyannis woman pleaded guilty today in U.S. District Court in Boston in connection with trafficking heroin on behalf of Denzel Chisholm and the “Nauti-Block” gang.
Eelyese Mateo, 20, pleaded guilty to conspiracy to distribute and possess with the intent to distribute heroin and money laundering on behalf of Denzel Chisholm and the “Nauti-Block” gang. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for July 18, 2017.
In October 2015, law enforcement initiated an effort to address the rising opioid epidemic in Massachusetts and on Cape Cod in particular. According to court documents, Mateo and other co-conspirators were responsible for a significant quantity of the heroin distributed on Cape Cod. A wiretap investigation led to their arrests and indictments. Mateo, who was in a personal relationship with Chisholm, stored heroin at her home and delivered it on Chisholm’s behalf to Chisholm and other co-conspirators. Chisholm would frequently call Mateo and tell her to either deliver heroin or pick up heroin at a known stash house. In total, Mateo agreed to accept responsibility for between 400 and 700 grams of heroin. Chisholm's arraignment is set for April 13, 2017.
The charge of conspiracy to distribute and possession with the intent to distribute heroin provides for a maximum sentence of 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of $1 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Cape and Islands District Attorney Michael O’Keefe; and Barnstable Police Chief Paul MacDonald, made the announcement today. Assistant U.S. Attorney Eric S. 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 to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Cambridge Man Sentenced to Five Years for Extortion and GamblingRead the Press Release
BOSTON – A Cambridge man was sentenced yesterday in U.S. District Court in Boston to five years in prison for extortion and conducting an illegal gambling business.
Anthony Corso, 52, was sentenced by U.S. District Court Judge Denise J. Casper to five years in prison, to be followed by three years of supervised release. Judge Casper also issued an order forfeiting over $68,000 in cash recovered in searches or from bank accounts, as well as 30 fake luxury watches also recovered in searches, and a forfeiture money judgment order against Corso for $60,000.
On Dec. 20, 2016, Corso pleaded guilty to conducting an illegal gambling business, conspiring to make and making extortionate extensions of credit, and conspiring to collect and collecting extensions of credit by extortionate means. Judge Casper deferred acceptance of Corso’s plea agreement until yesterday.
Corso was the last of three men to be sentenced as part of an illegal bookmaking business. Co-defendant Joseph Yerardi was sentenced March 17, 2017, to seven years in prison for extortion and conducting an illegal gambling business. On March 21, 2017, co-defendant Michael Burke, 45, of Winthrop, Mass., was sentenced to two years in prison, to be followed by two years of supervised release.
In 1995, Corso was convicted in U.S. District Court in Boston of racketeering and was sentenced to 151 months in prison.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Colonel Richard D. McKeon, Jr., Superintendent of the Massachusetts State Police, made the announcement today. Assistance with the investigation was also provided by the Internal Revenue Service’s Criminal Investigation, the Massachusetts Department of Correction, and the Boston, Cambridge, Medford, and Quincy Police Departments. Assistant U.S. Attorney Timothy E. Moran of Weinreb’s Organized Crime and Gang Unit prosecuted the case.
Notice to Potential Victims Regarding Former Pain Management Physician Fathalla MashaliRead the Press Release
BOSTON – Fathalla Mashali, 62, of Dover, Mass., pleaded guilty on March 15, 2017, in U.S. District Court in Boston to 27 counts of health care fraud, one count of conspiracy to commit mail fraud, and 16 counts of money laundering. Sentencing is scheduled for June 21, 2017.
Insurance companies and patients who believe they may be potential victims of Mashali’s scheme to defraud Medicare and other health care insurers, will find additional information about this case on the U.S. Attorney’s Office website https://www.justice.gov/usao-ma and the U.S. Department of Justice website https://www.justice.gov/largecases. Potential victims who can document direct and proximate harm, including financial loss suffered as a result of the charged conduct, may complete the potential victim identification form and return it to the United States Attorney’s Office for determination of their crime victims’ rights status. Victims of this crime may be entitled to restitution.
Mashali was a licensed physician in Massachusetts and Rhode Island and operated New England Wellness & Pain Management, P.C., a/k/a New England Pain Associates, P.C., of Massachusetts and Rhode Island, a/k/a Greystone Pain Management, Inc., a/k/a New England Pain Institute, P.C. (NEPA). He also employed Egyptian doctors in Cairo, Egypt, who entered false information into U.S. patients’ medical records. Many of the patients at NEPA were Medicare beneficiaries.
From approximately October 2010 through March 2013, Mashali falsely billed Medicare and commercial insurers for extensive medical services that he did not provide. Mashali also routinely billed Medicare and private insurers for urine drug test results that were false and fraudulent. When Medicare began to inquire about Mashali’s unlawful billing practices and initiated an audit of Mashali’s medical services, requesting 40 patient medical files, Mashali caused his staff both in the United States and in Egypt to falsely alter patient records. This included falsifying patient encounters which had taken place sometimes one or more years earlier, and faking and backdating the results of patients’ urine drug tests. Mashali knew that his patient records would not pass muster with Medicare’s auditors and thus ordered his staff to make these changes.
Mashali used the proceeds derived from his fraudulent billing to fund a lavish lifestyle, spending money on his extravagant Dover, Mass., residence and a condominium in Florida.
Notice to Potential Victims Regarding Former Employee of Massachusetts and Rhode Island Pain Clinic Charged in Fraudulent Billing SchemeRead the Press Release
BOSTON – Moustafa Moataz Aboshady, 35, an Egyptian national residing in Lake Forest, Calif., was indicted in September 2016, in U.S. District Court in Boston, on one count of conspiracy and two counts of making false statements in connection with health care benefit programs. A trial date is not scheduled at this time.
Insurance companies and patients who believe they may be potential victims of this fraudulent billing case, will find additional information about this case on the U.S. Attorney’s Office website https://www.justice.gov/usao-ma and the U.S. Department of Justice website https://www.justice.gov/largecases. Potential victims who can document direct and proximate harm, including financial loss suffered as a result of the alleged conduct in the indictment, may complete the potential victim identification form and return it to the United States Attorney’s Office for determination of their crime victims’ rights status.
As alleged in the indictment, Aboshady was a medical resident in Massachusetts and Rhode Island, employed at New England Wellness & Pain Management, P.C., which was also known as New England Pain Associates, P.C., Greystone Pain Management, Inc., and New England Pain Institute, P.C., or NEPA.
NEPA had locations in Massachusetts and Rhode Island. The indictment alleges that Aboshady was part of a conspiracy involving other members of NEPA, including its owner and members of a satellite office in Cairo, Egypt, in connection with a scheme to falsify patient medical records in order to obtain payments from the Medicare program and commercial health insurance companies. The alleged conduct included submitting claims for payment to Medicare and commercial health insurance companies for services not rendered.
As part of the alleged scheme, Aboshady falsified, and instructed others to falsify, patient encounter notes. Such false information included, but was not limited to, detailed descriptions of extensive physical examinations and treatment plans and durations of face-to-face interactions with patients to create the appearance of lengthy and involved patient appointments, when in fact these services did not take place.
Aboshady is allegedly responsible, in conjunction with the NEPA owner and the Cairo office, for fabricating the dates of urine drug test results so that the tests appeared to have been performed within days of specimen collection rather than weeks or months thereafter. This information was necessary to support billing codes submitted to Medicare and private insurers. The indictment alleges that NEPA tested patients’ urine weeks and sometimes three months after the specimens had been collected and stored the specimens in unrefrigerated large plastic bags and containers.
The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Owner of Trash Company Charged with FraudRead the Press Release
BOSTON – The owner of a trash company was charged today in federal court in Boston in connection with defrauding the operator of the Fall River Landfill out of approximately $473,000 in disposal fees.
Stephen P. Aguiar, Jr., 47, of Westport, was charged with 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.
It is alleged that 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 allegedly misrepresented the origin of a significant portion of the trash he disposed at the landfill. Aguiar claimed he was disposing trash from the FRHA, when in fact he was disposing trash collected from his private clients, thereby defrauding Fall River Landfill of approximately $473,000 in revenue.
The maximum sentence under the statute is 20 years in prison, three years of supervised release, a fine of $250,000, restitution and forfeiture. Actual sentences for federal crimes are typically less than the maximum penalties. 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; 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 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.
West Springfield Man Charged with Child Pornography OffensesRead the Press Release
BOSTON – A West Springfield man was charged today in federal court in Springfield in connection with sexually exploiting a five-year-old girl.
Justin Germaine was indicted on five counts of sexual exploitation of children, eight counts of distribution of child pornography, five counts of receipt of child pornography and one count of possession of child pornography. Germaine has been in custody since he was arrested and charged in July 2016.
According to court documents, on five occasions between November 2015 and June 2016, Germaine used a five-year-old girl to engage in sexually explicit conduct for the purposes of creating child pornography. In at least one of the videos found on his cellphone, Germaine appears to be the individual sexually abusing the girl. Between March 2016 and July 2016, Germaine allegedly distributed and received electronic child pornography files. Furthermore, Germaine exchanged emails with another individual in which the two allegedly discussed having sex with children and trading child pornography. Attached to these emails were sexually provocative pictures of minor girls.
The charge of sexual exploitation of children provides for a sentence of no greater than 30 years in prison, a lifetime of supervised release and a fine of $250,000. The charges of receipt and distribution of child pornography each provide for a sentence of no greater than 20 years in prison, a lifetime of supervised release and a fine of $250,000. The charge of possession of child pornography provides for a sentence of no greater than 10 years in prison, a lifetime of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. 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; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and West Springfield Police Chief Ronald Campurciani, made the announcement today. Assistant U.S. Attorney Alex J. Grant of Weinreb’s Springfield Branch Office is prosecuting the case.
This 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 better 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/.
Owner of One of the Largest Commercial Fishing Businesses in U.S. Pleads to Falsifying Records & Smuggling Proceeds AbroadRead the Press Release
BOSTON – The owner of one of the largest commercial fishing businesses in the United States pleaded guilty today in U.S. District Court in Boston to operating a long-running scheme through which he submitted falsified records to the federal government to evade federal fishing quotas. He then smuggled a portion of the proceeds to Portugal.
Carlos Rafael, 65, of Dartmouth, pleaded guilty today to one count of conspiring to commit offenses against the United States, 23 counts of false labeling and fish identification, two counts of falsifying federal records, one count of bulk cash smuggling, and one count of tax evasion.
Rafael, owner of Carlos Seafood, Inc. based in New Bedford, Mass., owned 32 fishing vessels through independent corporate shells and 44 permits, which amounted to one of the largest commercial fishing businesses in the United States. He was initially arrested and charged in February 2016. U.S. District Court Judge William G. Young scheduled sentencing for June 27, 2017.
“Mr. Rafael’s scheme not only compromised delicate fish populations, but also profited on the backs of his hard-working crews,” said Acting United States Attorney William D. Weinreb. “Mr. Rafael knew he was breaking the law by falsifying records, evading taxes and smuggling ill-gotten profits to Portugal. Without Mr. Rafael and his scheme, New England fishermen who work hard for honest pay can now enjoy a more level playing field.”
“The fraud perpetrated by Mr. Rafael was motivated by greed, at the expense of the delicate ecosystem of the North Atlantic ocean,” said Special Agent in Charge Joel Garland, IRS Criminal Investigation. “Mr. Rafael not only evaded federal income taxes on bags of cash, but smuggled some of the cash to Portugal. IRS-Criminal Investigation is proud of our undercover program and the unique perspectives, skill set and resources we can bring to a case of this magnitude. I commend the entire investigative team for their incredibly hard work in exposing this massive financial and natural resource fraud.”
“As the Nation’s federal maritime law enforcement agency, the Coast Guard has a critical role in enforcing federal fisheries regulations to protect our precious marine resources, promote sustainable fish stocks, and ensure a level playing field for all the honest fishermen,” said Rear Admiral Steven D. Poulin, Commander, First Coast Guard District. “I am proud of the Coast Guard’s partnership with the NOAA Office of Law Enforcement, the IRS Criminal Investigation Division, and the U.S. Attorney's Office to help bring these illegal operations to a halt.”
“NOAA is committed to ensuring a level playing field for honest fishermen,” said Samuel Rauch, Acting Assistant Administrator for NOAA Fisheries. “Those who cheat the American taxpayers and their fellow fishermen will be found out, investigated, and brought to justice.”
The charges arose out of an undercover investigation in which federal agents posed as organized crime figures interested in buying Carlos Seafood. From 2012 to January 2016, Rafael routinely lied to the National Oceanic and Atmospheric Administration (NOAA) about the quantity and species of fish his boats caught, in order to evade federal quotas designed to guarantee the sustainability of certain fish species.
During that period, Rafael misreported to NOAA approximately 782,812 pounds of fish, telling NOAA that the fish was haddock, or some other abundant species subject to high quotas, when in fact the fish was cod, sole, or other species subject to strict quotas. After submitting false records to federal regulators, Rafael sold much of the fish to a wholesale business in New York City in exchange for bags of cash. During meetings with the undercover agents, Rafael said that in his most recent dealings with the New York buyer he received $668,000 in cash. Rafael smuggled at least some of that cash out of the United States to his native Portugal, hiding it there to evade federal taxation on that revenue.
The charges of conspiracy and tax evasion provide for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Twenty-three of the charges of falsifying records submitted to the federal government carry the same potential sentence, while two counts, brought under a different statute, provide for a sentence of no greater than 20 years in prison and a fine of $250,000. The charge of bulk cash smuggling provides a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Weinreb; IRS-CI SAC Garland; Rear Admiral Poulin; and Acting Assistant Administrator Rauch made the announcement today. Assistant U.S. Attorney Andrew E. Lelling of Weinreb’s Economic Crimes Unit is prosecuting the case.
Fugitive Wanted on Federal Child Exploitation Charges Captured in DenverRead the Press Release
BOSTON – A federal defendant, who fled in 2015 while on pre-trial release, was captured yesterday in Denver, Colo.
In May 2015, Scot Letourneau, 44, formerly of Quincy and Maine, was arrested and charged in U.S. District Court in Massachusetts with receipt and possession of child pornography. Although the government sought Letourneau’s pretrial detention on the grounds of his prior convictions, the Court released him on Aug. 5, 2015, on an electronic bracelet and home confinement in Maine. On Nov. 3, 2015, Letourneau fled and a warrant for his arrest was immediately issued. Letourneau was apprehended in Denver yesterday and was detained following an appearance in U.S. District Court in Denver this afternoon. He will appear in federal court in Massachusetts at a later date.
As alleged in the original charging documents, in early 2015, law enforcement officers learned that an individual was trading images of child pornography on Kik Messenger, an instant messaging app, with an individual in Connecticut. After further investigation, it was determined that an Internet IP address used in transmitting the images was associated with Letourneau. On May 21, 2015, a search warrant was executed at Letourneau’s home, and a preliminary review of his cellphone revealed that he exchanged images of child pornography with others. Investigators also learned that Letourneau had previously been convicted of distribution of child pornography in 2002 in Cheshire County Superior Court.
On June 18, 2015, a two-count federal indictment was returned against Letourneau charging him with distribution and possession of child pornography.
In light of Letourneau’s prior conviction, the charge of distribution of child pornography provides for a mandatory minimum sentence of 15 years and no greater than 40 years in prison, and the charge of possession of child pornography provides for a mandatory minimum term of 10 years and no greater than 20 years in prison. Both statutes provide for a mandatory minimum of five years and up to a lifetime of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; U.S. Marshal John Gibbons for the District of Massachusetts; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Kenneth Deal, Acting U.S. Marshal for the District of Colorado, made the announcement today. Assistance was also provided by the Adams County (Colo.) Sheriff’s Department; Connecticut State Police; Quincy Police Department; and U.S. Coast Guard. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Weinreb’s Major Crimes Unit is prosecuting the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better 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.
Four Arrested for Heroin TraffickingRead the Press Release
BOSTON – Four men were arrested this morning on charges of heroin distribution and possession with intent to distribute heroin.
Richard R. Fernandez, 26, believed to reside in Lawrence; Jose C. Torres, 27, believed to reside in Haverhill; Angel G. Rivera Serrano, 36, believed to reside in Haverhill; and Luis Humberto Arias Lara, 41, believed to reside in Lowell, were charged with heroin distribution and possession with intent to distribute heroin.
According to court documents, the men distributed heroin in and around Waltham over the course of several months. Each of the defendants allegedly sold drugs to an undercover investigator. Court-authorized searches were conducted this morning at two residences and two alleged stash houses where investigators seized approximately $200,000 in cash and approximately 1.5 kilograms of narcotics.
The charges of distribution and possession with intent to distribute heroin each provide for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of $1 million, or twice the value of the funds involved, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the United States 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; John Gibbons, U.S. Marshal of the District of Massachusetts; and members of the Suburban Middlesex County Drug Task Force, which is composed of the Waltham, Watertown, Newton, Arlington, Belmont, Weston and Lexington Police Departments, made the announcement today. Assistant U.S. Attorney Susan Winkler of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
The information 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.
Dedham Man Sentenced for Bank RobberyRead the Press Release
BOSTON – A Dedham man was sentenced yesterday in U.S. District Court in Boston for armed bank robbery.
Lawrence J. Costello, 54, was sentenced by U.S. District Court Judge Nathan M. Gorton to seven years in prison, five years of supervised release and ordered to pay $17,687 in restitution. In March 2016, Costello pleaded guilty to one count of armed bank robbery.
On May 12, 2014, Costello and another individual, armed with what appeared to be semi-automatic weapons, entered a branch of Bank of America in Attleboro. Once inside, Costello jumped over the teller’s counter, and took $17,687 in cash while holding the tellers at gunpoint. The men fled in a green Ford pickup truck, which was recovered a short time later and determined to have been stolen. During the investigation, law enforcement recovered a pair of red and black gloves which testing revealed contained Costello’s DNA. Costello was arrested a few weeks later in Bourne, Mass.
Acting U.S. Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Attleboro Police Chief Kyle Heagney; and Bourne Police Chief Dennis Woodside made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit prosecuted the case.
Connecticut Woman Pleads Guilty to Stealing over $250,000 from Her EmployerRead the Press Release
BOSTON – A Windsor, Conn. woman pleaded guilty today in U.S. District Court in Springfield, Mass. in connection with her theft of over $250,000 from her employer.
Angela M. Craig, 55, pleaded guilty to one count of wire fraud and is set to be sentenced on June 22, 2017 by U.S. District Court Judge Mark G. Mastroianni.
From July 2012 through May 2014, Craig stole more than $250,000 from her Massachusetts employer by writing company checks to herself, forging her employer’s signature and then cashing or depositing the checks. Craig concealed her theft by entering false invoices in her employer’s accounting system and by failing to pay company bills and taxes.
The charge of wire fraud provides for a sentence of no greater than 20 years in prison, a maximum of three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. 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 Deepika Bains Shukla of Weinreb’s Springfield Branch Office is prosecuting the case.
Rehoboth Woman Sentenced for Social Security FraudRead the Press Release
BOSTON – A Rehoboth woman was sentenced today in federal court in Boston in connection with illegally collecting more than $29,000 in Social Security benefits.
Joanna Boyer, 44, was sentenced by U.S. District Judge Denise J. Casper to two years of probation, with the first nine months to be served in home detention, restitution of $29,927 and a fine of $5,000. Following a three-day trial in November 2016, Boyer was convicted of one count of Social Security fraud, two counts of making false statements and one count of theft of public money.
From 2010 to 2015, Boyer collected Supplemental Security Income (SSI) benefits, which are only available to people with limited financial means. While collecting these need-based benefits, Boyer concealed the fact that she owned a condominium in Fall River, Mass. On two occasions, when directly asked by Social Security personnel about her property ownership, she denied owning any real estate other than her house in Rehoboth. As a result, she collected more than $29,000 in benefits that she was ineligible to receive.
Acting United States Attorney William D. Weinreb and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Division, made the announcement today. Special Assistant U.S. Attorney Timothy Landry and Assistant U.S. Attorney Anne Paruti of Weinreb’s Major Crimes Unit prosecuted the case.
Framingham Man Pleads Guilty to Multiple Bank RobberiesRead the Press Release
BOSTON – A Framingham man pleaded guilty today in U.S. District Court in Boston to robbing two banks in Framingham.
Jalonni Tucker a/k/a Jalonni Shabazz, 36, pleaded guilty to two counts of unarmed bank robbery and is scheduled to be sentenced on July 5, 2017.
On June 21, 2016, an individual entered a branch of TD Bank in Framingham and placed a demand note on the teller’s counter indicating a robbery. The teller handed the robber cash, and the individual exited the bank. The bank’s surveillance cameras captured images of the individual, and surveillance cameras on neighboring businesses captured images of the individual driving away in a white/silver Chrysler SUV with distinctive chrome wheels.
On July 13, 2016, an individual entered a branch of Citizens Bank in Framingham and committed a similar robbery. The bank’s exterior surveillance cameras captured images of the individual driving away in a white/silver Chrysler SUV with distinctive chrome wheels.
During the course of the investigation, law enforcement determined that the Chrysler SUV belonged to a Framingham resident and that Tucker was married to the registered owner of the vehicle. Tucker’s picture matched the surveillance camera images of the robbery suspect. On July 15, 2016, Tucker was arrested at his Framingham home.
The charging statue provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of up to $250,000 on each robbery charge. Actual sentences for federal crimes are typically less than the maximum penalties. 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 Framingham Police Chief Kenneth Ferguson made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit.
Convicted Felon Sentenced on Drug and Firearm ChargesRead the Press Release
BOSTON – A Southbridge man was sentenced today in U.S. District Court in Worcester in connection with being a felon in possession of a firearm, distributing drugs and attempted money laundering.
Alehandros Medina, 25, was sentenced by U.S. District Court Judge Timothy S. Hillman to five years in prison and three years of supervised release. In October 2016, Medina pleaded guilty to distribution of cocaine, ketamine, MDMA (commonly referred to as ecstasy) and Methylone; being a felon in possession of a firearm; and attempted money laundering.
On several occasions between November 2014 and October 2015, Medina sold cocaine, MDMA, Methylone, and ketamine to an undercover federal agent, while on state probation for multiple charges of possession with intent to distribute controlled substances.
In August 2015, Medina traveled to Oregon and was stopped by police who confiscated approximately $22,000 from Medina that he intended to use to purchase marijuana. In October 2015, federal agents arrested Medina in Southbridge as he was delivering cocaine to an undercover agent. Later that day, agents seized cocaine and a loaded .38 caliber revolver from Medina’s residence.
Acting United States Attorney William D. Weinreb; Michal J. 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.
Burlington Man Pleads Guilty to Sex TraffickingRead the Press Release
BOSTON – A Burlington man pleaded guilty yesterday in U.S. District Court in Boston to trafficking three women for sex and threatening them with violence.
“Sex trafficking is a deplorable crime which steals the dignity of young, vulnerable victims,” said Acting U.S. Attorney William D. Weinreb. “Individuals who seek to profit from the trafficking and abuse of others, and to enforce their will with violence, have no place walking the streets and preying on victims.”
“Barry Davis’ victims can never regain what was taken from them when they were forced into a life of sexual slavery,” said Special Agent in Charge Matthew Etre of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Boston. “But they can perhaps take some small comfort in knowing Davis is facing a significant sentence for his crimes. HSI has a long history of victim-centric support and will continue to provide victim assistance to these women. Further, HSI is proud of the work we’ve jointly accomplished in this matter with our law enforcement partners across New England.”
“I want to commend the work of the Boston Police Human Trafficking Unit and all the law enforcement agencies involved with this case,” said Boston Police Commissioner William Evans. “Together we are committed to ending the sexual exploitation of vulnerable young women who are victimized by predators like this defendant. Prostitution is not a victimless crime. We will continue to target those who engage in this type of criminal behavior.”
“The United States Marshals Service is dedicated to assisting our law enforcement partners with bringing violent offenders like Barry Davis to justice,” said U.S. Marshal John Gibbons for the District of Massachusetts. “We remain committed to doing our part to support victims of these heinous crimes.”
Barry Davis, 38, pleaded guilty to three counts of sex trafficking by force, fraud, and coercion and three counts of interstate transportation with intent to engage in prostitution. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for August 8, 2017.
In April 2015, Davis met a young woman at a driving instructing class and enticed her to leave with him by promising to take care of her and provide a steady supply of heroin. Davis drove her to New Jersey, rented a hotel room, posted an advertisement for sex with her online, and took the money she made having sex with men who responded to the ad. Davis used heroin to coerce the woman, and punched her in the head and threatened her with further harm if she did not follow his rules and prostitute for him.
In August 2015, Davis perpetrated a similar scheme after he picked up two young women from a heroin detox center and drove them to Connecticut. There, he rented a hotel room, posted online advertisements for sex with the women, and took the money they made having sex with men who responded to the ads. Davis used heroin to coerce the women to prostitute for him. Davis also hit one of the women for breaking one of his prostitution rules and threatened to beat the other woman if she did not make enough money prostituting for him.
Each charge of sex trafficking by force, fraud, and coercion provides for a mandatory minimum sentence of 15 years and up to a lifetime in prison, five years of supervised release, and a fine of $250,000. Each charge of interstate transportation of an individual with the intent to engage in prostitution provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. If the Court accepts the plea agreement, Davis will be sentenced to between 15 and 20 years in prison. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Weinreb, HSI SAC Etre, Boston Police Commissioner Evans, and U.S. Marshal Gibbons, made the announcement today. Assistance was provided by the Boston Police Department’s Human Trafficking Unit and the Lawrence, Salem, Burlington, Milford (Conn.), and Franklin Township (NJ) Police Departments. Assistant U.S. Attorneys Leah Foley and Kelly Lawrence of Weinreb’s Civil Rights Enforcement Team are prosecuting the case.
Former Middle School Teacher Sentenced to More Than 11 Years in Prison for Attempting to Purchase Live Video Sex Shows Involving Filipino ChildrenRead the Press Release
BOSTON – A former Southbridge Middle School teacher was sentenced today in U.S. District Court in Worcester in connection with attempting to purchase live video sex shows involving Filipino children and to possessing child pornography.
Scott Peeler, 54, who previously resided in Worcester, was sentenced by U.S. District Court Judge Timothy S. Hillman to 138 months in prison and 10 years of supervised release. In November 2016, he pleaded guilty to three counts of attempting to entice a minor to engage in unlawful sexual conduct and one count of possession of child pornography. Peeler has been in custody since his arrest in June 2015.
Between April 2013 and July 2014, Peeler used internet-based instant messaging with video streaming capabilities to communicate with individuals in the Philippines engaged in child sex trafficking and the sale of live streaming sex shows involving children. Peeler admitted to attempting on at least three occasions to arrange the purchase of live video sex shows involving children who ranged in age from four to fourteen years old.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Worcester County District Attorney Joseph D. Early, Jr.; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Worcester Police Chief Steven M. Sargent, made the announcement today. Assistant U.S. Attorney Mark Grady of Weinreb’s Worcester Branch Office prosecuted the case.
This 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 better 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/.
“Incognito Bandit” Arrested this Evening at Dulles International AirportRead the Press Release
BOSTON – A man dubbed the “Incognito Bandit” was arrested this evening at Dulles International Airport in Virginia as he attempted to board an outbound flight to South Africa and charged with armed bank robbery.
Albert Taderera, 36, of Brighton, was charged by criminal complaint with the Oct. 7, 2016, robbery of a branch of the TD Bank in Wayland, Mass. Taderera is scheduled to appear in the U.S. District Court for the District of Eastern Virginia on Monday, March 27, 2017, for his initial appearance.
According to court documents, between February 2015 and March 2017, 16 banks were robbed in the Metro-West and Greater Boston areas. In most of the robberies, the robber was disguised in a dark hooded sweatshirt, dark face mask/sunglasses covering his face, dark gloves and dark clothing. In each of the banks, the robber entered the bank and made verbal demands for the banks’ money. In most of the robberies, the robber displayed what tellers described as a black semi-automatic handgun.
All of the robberies occurred in suburban settings where banks were freestanding and featured adjacent wooded areas or foliage. In many of these robberies, witnesses observed the robber leaving the bank following the robbery, and entering the wooded areas. Witnesses also observed the robber run toward, enter into, and then leave the area in a black BMW sedan. Based on these similarities, the FBI believed that the individual driving the black BMW was responsible for the robberies.
On March 16, 2017, the Concord Police observed a black BMW sedan sitting outside a local bank. They also noted that Taderera fit the general description of the individual responsible for the 16 robberies. Police determined that the registration of the BMW was revoked and per Department policy, the vehicle was towed and inventoried.
On Wednesday, March 22, 2017, an individual identifying himself as Taderera, called the tow company and inquired about the status of his BMW. The tow company informed Taderera that the vehicle was in police custody.
On Thursday March 23, 2017, at approximately 10:15 pm, the FBI learned that Taderera had booked a flight, scheduled to leave on Friday, March 24, 2017, at 11:00 a.m., from Dulles International Airport to Addis Ababe, Ethiopia. During the morning of Friday, March 24, 2017, Taderera was en route to Dulles having taken a flight out of Boston. It was later learned that Taderera had rebooked his flight and was now planning to leave on March 24, 2017, at 5:45 p.m. from Dulles to Johannesburg, South Africa. Taderera was arrested prior to boarding the flight.
The charging statute provides for a sentence of no greater than 25 years in prison, five years of supervised release and a fine of up to $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the US sentencing guidelines and other statutory factors.
Acting United States Attorney William Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; William Ferrara, Director of Field Operations, U.S. Customs and Border Protection; Concord Police Chief Joseph F. O’Connor, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.
Owner of Asbestos Abatement Company Sentenced for Defrauding Union Benefit FundsRead the Press Release
BOSTON – The owner of an asbestos abatement and demolition services company was sentenced today in U.S. District Court in Boston for paying employees in cash in order to avoid paying union benefits and employment taxes.
Ronald P. Mulcahey, 53, of Andover, was sentenced by U.S. District Court Judge Richard G. Stearns to one year and one day in prison, one year of supervised release and ordered to pay $266,983 in restitution. In October 2016, Mulcahey pleaded guilty to making false statements in documents submitted to benefit plans subject to the provisions of Title I of the Employee Retirement Income Security Act of 1974 (ERISA) and tax evasion.
Mulcahey was the owner and sole corporate officer of Wing Inc. Specialty Trades, EWT-Fireproofing, Inc., and Wing Environmental, Inc. Wing Environmental provided asbestos abatement and demolition services. The company had a collective bargaining agreement with Laborer’s International Union of North America, Local 1421. As a union employer, Wing Environmental was required to accurately report to the union benefit funds the number of hours worked by its union employees and to make the corresponding contributions to the funds. Between January 2008 and June 2011, Mulcahey engaged in a scheme through Wing Environmental to defraud the union benefit funds by paying some of the union employees in cash. By keeping the cash payments off-the-books, Mulcahey and Wing Environmental falsely underreported the union workers’ hours in order to avoid making the required hourly payments to the benefit funds. Union benefit funds are used to provide healthcare, pensions and other services to union members.
Wing Specialty Trades and EWT-Fireproofing were non-union companies that provided asbestos abatement, demolition and fireproofing services. All of Mulcahey’s companies were required by federal tax law to accurately report their total payments to employees and to withhold and pay the IRS the applicable employment and income taxes. Between January 2008 and June 2011, Mulcahey defrauded the IRS by paying certain employees of all three of his companies in cash. By keeping the cash payments off-the-books, Mulcahey falsely underreported his workers’ wages to the IRS and avoided paying employment taxes on the unreported wages.
Acting United States Attorney William D. Weinreb; Michael C. Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, New York Regional Office; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Boston Field Office; and Susan A. Hensley, Regional Director of the Employee Benefits Security Administration, made the announcement today. Assistant U.S. Attorneys Kristina E. Barclay and Ryan DiSantis of Weinreb’s Public Corruption Unit prosecuted the case.
Multiple Individuals Charged in Sweeping Mortgage Fraud ConspiracyRead the Press Release
BOSTON – A Methuen attorney and a Methuen loan officer pleaded guilty yesterday in connection with a sweeping conspiracy to defraud banks and mortgage companies by engaging in sham “short” sales of residential properties in Merrimack Valley. Separately, a Methuen real estate broker was arrested on Wednesday, March 22, 2017, on related charges, and a Dunstable attorney was sentenced after pleading guilty to participating in the same conspiracy.
Jasmin Polanco, 37, a real estate closing attorney, and Vanessa Ricci, 40, a mortgage loan officer, each pleaded guilty yesterday to one count of conspiracy to commit bank fraud. U.S. District Court Senior Judge Douglas P. Woodlock scheduled Ricci’s sentencing for June 22, 2017. Polanco’s sentencing hearing has not yet been scheduled.
Separately, a real estate broker from Methuen, Greisy Jimenez, 49, was indicted this week on two counts of bank fraud and one count of conspiracy to commit bank fraud in connection with the same alleged scheme. In addition, on March 22, 2017, U.S. District Court Judge Rya W. Zobel sentenced Hyacinth Bellerose, 51, a real estate closing attorney from Dunstable, to time served and one year of supervised release to be served in home detention.
The charges arise out of an alleged scheme to defraud various banks via bogus short sales of homes in Haverhill, Lawrence and Methuen in which the purported sellers remained in their homes, with their debt substantially reduced. A short sale is a sale of real estate for less than the value of any mortgage debt on the property. Short sales are an alternative to foreclosure that typically occur only with the consent of the mortgage lender. Generally, the lender absorbs a loss on the loan and releases the borrower from the unpaid balance. By their very nature, short sales are intended to be arms-length transactions in which the buyers and sellers are unrelated, and in which the sellers cede their control of the subject properties in exchange for the short-selling bank’s agreement to release them from their unpaid debt.
The alleged conspiracy began in approximately August 2007 and continued through June 2010, a period that included the height of the financial crisis and its aftermath. Home values in Massachusetts and across the nation declined precipitously, and many homeowners found themselves suddenly “underwater” with homes worth less than the mortgage debt they owed. As part of the alleged scheme, Jimenez, Polanco, Ricci, Bellerose and others submitted materially false and misleading documents to numerous banks in an effort to induce them to permit the short-sales, thereby releasing the purported sellers from their unpaid mortgage debts, while simultaneously inducing the purported buyers’ banks to provide financing for the deals. In fact, the purported sellers simply stayed in their homes, with their debt substantially reduced.
The charging documents allege that as part of the conspiracy:
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The conspirators falsely led banks to believe that the sales were arms-length transactions between unrelated parties, when in fact, the transactions were not arms-length; the buyers and sellers were frequently related, and the sellers retained control of (and frequently continued to live in) the properties after the sale;
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The conspirators submitted phony earnings statements in support of loan applications that they submitted to banks in order to obtain financing for the purported sales; and
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The conspirators submitted phony “HUD-1 Settlement Statements” to banks that did not accurately reflect the disbursement of funds in the transactions. (HUD-1 Settlement Statements are standard forms that are used to document the flow of funds in real estate transactions. They are required for all transactions involving federally related mortgage loans, including all mortgages insured by the Federal Housing Administration.)
The charge of bank fraud and conspiracy to commit bank fraud provides for a sentence of no greater than 30 years in prison and a fine of $1 million. Actual sentences for federal crimes are typically less than the maximum penalties. 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; Christina Scaringi, Special Agent in Charge of the Department of Housing and Urban Development, Office of Inspector General, New York Field Office; and Christy Goldsmith Romero, Special Inspector General of the Troubled Asset Relief Program, made the announcement. Assistant U.S. Attorney Stephen E. Frank, Deputy Chief of Weinreb’s Economic Crimes Unit is prosecuting the cases.
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East Boston Woman Sentenced for Defrauding Social SecurityRead the Press Release
BOSTON – An East Boston woman was sentenced today in U.S. District Court in Boston for fraudulently obtaining over $50,000 in Social Security benefits.
Patricia Grifoni, 53, was sentenced by U.S. District Court Senior Judge Mark L. Wolf to one year of probation and ordered to pay $95,515 in restitution. In December 2016, she pleaded guilty to Social Security fraud.
In 1993, Grifoni began receiving Social Security Supplemental Security Income disability benefits on behalf of her disabled daughter. These benefits are based, in part, on the financial need of the family with whom the child lives. Beginning in 1995, Grifoni told Social Security that her husband no longer lived with her. Therefore, the Social Security Administration did not include her husband’s income when calculating her daughter’s benefits. In reality, Grifoni’s husband lived in the same household as Grifoni and their daughter since at least 2005, and his income would have made their daughter financially ineligible to receive benefits from 2005 to 2011. As a result, Grifoni illegally collected $51,530 in benefits on her daughter’s behalf.
Acting United States Attorney William D. Weinreb and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Division, made the announcement today. Special Assistant U.S. Attorney Timothy Landry of Weinreb’s Major Crimes Unit prosecuted the case.
Boston Man Sentenced for Conspiracy to Sell Weapons Stolen from U.S. Army Facility in WorcesterRead the Press Release
BOSTON – A Boston man was sentenced today in U.S. District Court in Worcester in connection with the sale of machine guns and handguns stolen from the U.S. Army Reserve Center in Worcester.
Tyrone James, 29, of Dorchester, was sentenced by U.S. District Court Judge Timothy S. Hillman to 57 months in prison and 36 months of supervised release. In January 2016, James and two co-defendants, Ashley Bigsbee and James Morales, were indicted for conspiracy to possess, store and sell stolen firearms; possession and sale of stolen firearms; and lying to federal agents. James was also charged with being a felon in possession of firearms. In December 2016, James pleaded guilty to all charges.
On the night of Nov. 14, 2015, co-defendant James Morales allegedly broke into a weapons vault inside the Lincoln Stoddard United States Army Reserve Center in Worcester and stole six M-4 Carbines and ten M-11 semi-automatic handguns. The M-4 Carbine is a military weapon capable of firing a three bullet “burst” for each single pull of the trigger, which classifies it as a machine gun under federal law.
The following morning, Morales visited Bigsbee and James at their home in Dorchester and proposed that they assist him with selling a number of the weapons he had stolen and they agreed to do so.
Bigsbee and James then contacted numerous individuals via text message offering to sell the firearms for well below the market and street value. and James’s phones were later found to contain text messages evidencing these efforts along with photographs which depicted: the stolen weapons lying on the kitchen table of their Dorchester apartment; Bigsbee holding one of the stolen M-11 handguns; and two of the stolen M-11 handguns lying on their bed. Through their efforts, and James arranged for Morales to sell a number of the handguns, and conducted the sales in their apartment on Nov. 15, 2015. In exchange for their assistance with selling the stolen weapons, Morales gave James and one of the M-4 Carbines. On the night of Nov. 15, 2015, or soon after, and/or James put the weapon in a duffle bag and brought it to the home of an acquaintance on Kingsdale Street in Dorchester who agreed to store the duffle bag. That weapon was later recovered by federal agents on Nov. 27, 2015 outside of the acquaintance’s residence in connection with the arrest of .
During an interview on Nov. 20, 2015, James repeatedly lied to federal agents concerning his knowledge of the sale of the firearms. Further, at the time of this offense, James had been previously convicted of three counts of armed robbery and one count of armed assault in a dwelling making him a felon in possession of those weapons.
On March 15, 2017, co-defendant Ashley Bigsbee was sentenced to 21 months in prison. James Morales is scheduled for trial on April 18, 2017.
United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Worcester Police Chief Steven M. Sargent; Boston Police Commissioner William Evans; Suffolk County Sheriff Steven W. Tompkins; and Cambridge Police Commissioner Brent Larrabee, made the announcement today. Assistant U.S. Attorney Mark Grady of Weinreb’s Worcester Branch Office prosecuted the case.
The charges against Morales are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Alleged Latin Kings Gang Members Charged with Federal Drug TraffickingRead the Press Release
BOSTON – Four men who are alleged to be members and significant criminal associates of the Latin Kings street gang operating in New Bedford, Mass., were charged yesterday on federal drug offenses. The charges stem from a long-term investigation into narcotics sales in the New Bedford area.
In 2006, an investigation into the Latin Kings resulted in the state and federal prosecution of 37 members and associates in the New Bedford area, significantly disrupting the gang for several years. 2012, law enforcement began to see a resurgence of street-level drug sales and violence in areas of the city that the Latin Kings were known to occupy. An investigation resulted in the arrest and prosecution in state and federal courts of 46 Latin Kings gang members.
According to court documents, over the past eight months, the defendants sold narcotics in New Bedford to cooperating witnesses and undercover officers in the Bonneau Court section of the city. “The Pit” was identified as a section of Bonneau Court plagued by drug dealing and violent crime that is controlled by the Latin Kings. Many of these charges result from drug sales in, around that area, and from residents’ complaints of violence.
The following individuals were indicted, arrested and detained following initial appearances yesterday in U.S. District Court in Boston:
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Rafael Reyes, 30, charged with possession of cocaine, cocaine base, and fentanyl with intent to distribute;
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Virgilio Adorno, 29, charged with distribution of cocaine base; and
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Avimael Ortiz, 23, charged with distribution of cocaine base.
The following individual remains a fugitive:
- Jonathan Garcia, 28, charged with distribution of cocaine base.
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 $1 million. The charge of possession with intent to distribute fentanyl provides for a mandatory minimum sentence of 10 years and up to life in prison, eight years of supervised release and a fine of $8 million. Actual sentences for federal crimes are typically less than the maximum penalties. 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 and 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 Glenn A. MacKinlay and Kunal Pasricha of Weinreb’s Organized Crime & Gang Unit are prosecuting the case.
The details contained in the indictments are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Western Massachusetts Power Plant Owner and Management Companies Sentenced for Tampering and False ReportingRead the Press Release
BOSTON – Berkshire Power Company (BPC) and Power Plant Management Services, Inc. (PPMS) were sentenced yesterday in U.S. District Court in Springfield for tampering with air pollution emissions equipment, and PPMS was also sentenced for submitting false information to both environmental and energy regulators relating to the Berkshire Power Plant (“the Plant”) in Agawam, Mass.
United States District Court Judge Mark G. Mastrioanni sentenced BPC to pay $2.75 million in criminal fines for violations of the Clean Air Act and to make a $750,000 community service payment to the American Lung Association to fund a program for the replacement of polluting wood burning stoves in western Massachusetts. Judge Mastrioanni sentenced PPMS to pay $500,000 in criminal fines for violations of the Clean Air Act and Federal Power Act and to make a $250,000 community service payment to the American Lung Association’s wood stove change-out program.
In addition to the criminal fines outlined above, BPC and PPMS have agreed to pay $3,042,563 plus interest to the Federal Energy Regulatory Commission in civil penalties and disgorgement for their misrepresentations to ISO-New England regarding the Plant’s availability to produce power.
In May 2016, BPC (owner of Berkshire Power Plant) and PPMS (the Plant manager) pleaded guilty to felony charges that they violated and conspired to violate the federal Clean Air Act. These charges arose from air pollution monitoring equipment tampering and related false emissions reporting between 2009 and 2011. PPMS also pleaded guilty to violating the Federal Power Act, the first-ever criminal charges under this statute, for making false statements to the regional power grid administrator, ISO-New England, regarding the Plant’s availability to produce power.
According to documents filed in federal court, between January 2009 and March 2011, BPC engaged PPMS to manage the Plant, including overseeing day-to-day operations and maintenance and to act as the owner’s representative for the Plant. A PPMS employee served as the Plant General Manager and as BPC’s on-site representative.
PPMS and BPC caused staff at the Plant to tamper with the Plant’s air pollution monitoring equipment to conceal the fact that the Plant was emitting air pollutants in excess of permitted levels. This tampering was accomplished by intentionally biasing the Plant’s Continuous Emissions Monitoring System so it would show lower emissions levels than were actually being produced by the Plant. BPC and PPMS then used this inaccurate data in filing required emissions reports with the U.S. Environmental Protection Agency (USEPA) and the Massachusetts Department of Environmental Protection (MassDEP). The purpose of the tampering was to avoid lost revenues that would have resulted from reducing power production to stay within the Plant’s air pollution emissions limits, or by taking the Plant out of service to implement needed repairs of the Plant’s pollution control and other equipment.
Excess nitrogen oxide (NOx) emitted from fossil-fuel-burning power plants and mobile sources, like cars and trucks, combines in the atmosphere with volatile organic compounds emitted from industrial and residential sources to form ground-level ozone. At ground level, ozone is a respiratory pollutant that can cause many human respiratory effects, and even premature mortality, especially in vulnerable elderly persons and young children. NOx emissions also cause environmental damage to coastal waters, aquatic life, and other property, and contribute to the formation in the atmosphere of fine particulates that also harm humans, aquatic life, and vegetation.
During the course of the tampering investigation, criminal investigators also learned that PPMS made and caused staff at the Plant to make false statements to the ISO-New England, about the Plant’s availability to produce power for the New England grid. They also caused staff at the Plant to falsely claim to the ISO that the Plant was available to produce power when it was not. PPMS did this to maximize the Plant’s revenues and to minimize repair expenditures.
Acting United States Attorney William Weinreb and Massachusetts Attorney General Maura Healey made the announcement following a joint federal and state investigation into allegations that Berkshire Power Plant in Agawam, Mass., tampered with its air pollution monitoring equipment and falsely reported data to environmental and energy regulators regarding its emissions levels and its availability to produce power.
Tyler Amon, Special Agent in Charge of the U.S. Environmental Protection Agency’s Criminal Investigation Division in Boston and Commissioner Martin Suuberg of the Massachusetts Department of Environmental Protection, also joined in the announcement today. Assistance with the investigation was provided by the Massachusetts Environmental Crimes Strike Force (an interagency investigative team dedicated to developing the most significant environmental enforcement cases) and the Massachusetts Environmental Police. Assistant U.S. Attorney Sara Miron Bloom of Weinreb’s Economic Crimes Unit is prosecuting the federal case with the assistance of Dianne Chabot, USEPA Criminal Enforcement Counsel.