District of Massachusetts
Press releases recorded for this federal judicial district.
Owners of Peabody Pizza Shop Charged with Obstructing a Federal Criminal InvestigationRead the Press Release
BOSTON – The owners of Giovanni’s Roast Beef & Pizza in Peabody, Mass., were arrested yesterday and charged in U.S. District Court in Boston with obstruction of justice for removing items from a safe deposit box following the execution of federal search warrants.
Theodora Panousos, a/k/a Dora Panousos, 63, and Konstantinos Panousos, a/k/a Kosta Panousos, 37, were charged in a criminal complaint with two counts of corruptly concealing a record, document or other object, and attempting to do so with the intent to impair the object’s integrity or availability for use in an official proceeding. They were released on bond following an initial appearance before U.S. District Court Magistrate Judge David H. Hennessy.
According to the complaint, Dora and Kosta were under investigation for tax evasion and filing false tax returns, specifically for failing to report all of Giovanni’s gross income. On the morning of Feb. 15, 2017, investigators executed search warrants at Giovanni’s restaurant and at Dora’s residence and seized, among other things, safe deposit box keys. That same morning, both Dora and Kosta were served with grand jury subpoenas for, among other things, records and tangible objects “pertaining to the payment, receipt, transfer or storage of money or other things of value.”
After the searches, and after Dora and Kosta were served with the subpoenas, the two allegedly went to a bank and emptied a safe deposit box except for a few pieces of jewelry. Surveillance footage allegedly showed Dora entering the bank with an empty tote bag and leaving the bank with what appeared to be items from the safe deposit box in the tote bag.
Fifteen minutes later, Dora and Kosta arrived at a second bank where Dora had another safe deposit box. Dora told bank employees she had lost the keys and requested that they have the box drilled. However, before they could do so, investigators executed a search warrant for the box and discovered that it contained, among other things, approximately $415,000 in cash. Another box leased by Dora was found to contain approximately $224,220 in cash.
The charge of obstruction of justice provides for 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 and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement. Assistant U.S. Attorney Mark J. Balthazard of Weinreb’s Economic Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Owners of Massachusetts Temp Agency Indicted for Failing to Pay over Employment Taxes and Obstructing IRSRead the Press Release
Allegedly Cashed More than $11 Million in Checks to Pay Workers Under the Table
A federal grand jury sitting in the District of Massachusetts returned an indictment on March 22, which was unsealed today, charging two Massachusetts residents who operated a temporary employment agency with conspiring to defraud the government, failing to pay over employment taxes and obstructing the internal revenue laws, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to the indictment, Huong Le and Tien Chau ran an employment agency that provided temporary labor to businesses in Massachusetts and New Hampshire. The agency operated under at least four different names: Central Boston Staffing Services, Metro Boston Staffing Services, General Staffing Inc. and Kim’s Staffing Inc. Le and Chau allegedly used family members and other individuals as nominees to conceal their ownership of the business.
The indictment alleges that from 2006 through 2011, Le and Chau conspired to conceal their agency’s total number of employees from the Internal Revenue Service (IRS) to lower their employment tax liabilities. Le and Chau allegedly attempted to hide the size of their workforce from the IRS by paying most of their employees cash under the table and causing the filing of false employment tax returns that both underreported the number of their employees and did not report wages paid in cash. Le and Chau allegedly cashed over $11 million in client checks at a check cashing facility in Worcester and used their staffing agency’s site supervisors, office manager and drivers to pay their employees in cash.
The indictment further charges that Le and Chau sought to obstruct an investigation by, among other things, directing an employee, after learning of her interview with special agents, to assist them with shredding the agency’s records. Le and Chau also allegedly destroyed and removed computer disks and computers from the business’s office.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Le and Chau face a statutory maximum sentence of five years in prison for the conspiracy and employment tax counts and three years in prison for obstructing the internal revenue laws. They also face a term of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Brittney Campbell and Shawn Noud of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
California Man Pleads Guilty to Operating Bi-Coastal Marijuana Distribution RingRead the Press Release
BOSTON – A California man pleaded guilty today in U.S. District Court in Boston in connection with a large-scale marijuana distribution and money laundering ring operating between California and the East Coast.
Virayuth Chau, a/k/a David Chau, 40, of Temecula, Calif., pleaded guilty to one count of conspiracy to distribute marijuana and one count of conspiracy to launder monetary instruments. In September 2016, Chau was arrested and indicted along with co-conspirator Ratanack Oung, a/k/a Yoshi, 31, of Allentown, Penn. U.S. District Court Judge Nathaniel M. Gorton scheduled Chau’s sentencing for June 22, 2017, at 3:00 p.m.
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, co-conspirators deposited cash (typically in an amount under $10,000) into one of many “feeder” accounts in banks on the East Coast. 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 account. 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 and 3,000 kilograms of marijuana and laundered approximately $6,135,035 in drug proceeds.
Oung is scheduled to plead guilty on April 14, 2017.
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 U.S. Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement 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.
Boston Man Sentenced for Murder-For-Hire PlotRead the Press Release
BOSTON – A Boylston Street gang member was sentenced today in U.S. District Court in Boston in connection with attempting to hire a hit man to murder another gang member.
Jaime Rivera, 21, was sentenced today by U.S. District Court Judge Rya W. Zobel to nine years in prison and three years of supervised release. In November 2016, Rivera pleaded guilty to one count of using the mail or the telephone with the intent that a murder-for-hire be committed, and one count of distribution of cocaine. His co-defendant, Frandys Ortiz, 24, was previously sentenced to eight years in federal prison and three years of supervised release.
Beginning in October 2014, Rivera and Ortiz sold firearms, ammunition, heroin and cocaine to a witness cooperating with federal law enforcement agents. On July 4, 2015, the two men were involved in a shooting with another gang member. Shortly after the shooting, Ortiz told the cooperating witness that he wanted the other gang member to be murdered in retaliation for the July 4th shooting, stating that he would pay the cooperating witness, “if the [gang member] dies.” During a separate recorded meeting, Rivera told the cooperating witness “there’s bread for you … if he dies.” Ultimately, Rivera agreed to pay the cooperating witness $2,500 in exchange for murdering the gang member, cautioning the cooperating witness, “I don’t need any leg shots bro … if you gonna do leg shots, don’t even do it.”
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 today. Assistant U.S. Attorney Rachel Y. Hemani of Weinreb’s Criminal Division prosecuted the case.
Owner of New England Compounding Center Convicted of Racketeering Leading to Nationwide Fungal Meningitis OutbreakRead the Press Release
Outbreak was the largest public health crisis ever caused by a pharmaceutical product
Barry Cadden, the owner and head pharmacist of New England Compounding Center (NECC), was convicted today by a federal jury of racketeering and mail fraud in connection with the 2012 nationwide fungal meningitis outbreak, the Justice Department announced.
After a nine-week trial, the jury convicted Cadden, 50, of Wrentham, Massachusetts, of racketeering, racketeering conspiracy, mail fraud and introduction of misbranded drugs into interstate commerce with the intent to defraud and mislead. U.S. District Court Judge Richard G. Stearns scheduled sentencing for June 21, 2017.
In 2012, 753 patients in 20 states were diagnosed with a fungal infection after receiving injections of preservative-free methylprednisolone acetate (MPA) manufactured by NECC. Of those 753 patients, the U.S. Centers for Disease Control and Prevention (CDC) reported that 64 patients in nine states died. The outbreak was the largest public health crisis ever caused by a pharmaceutical product.
Specifically, Cadden directed and authorized the shipping of contaminated MPA to NECC customers nationwide. In addition, he authorized the shipping of drugs before test results confirming their sterility were returned, never notified customers of nonsterile results, and compounded drugs with expired ingredients. Furthermore, certain batches of drugs were manufactured, in part, by an unlicensed pharmacy technician at NECC. Cadden also repeatedly took steps to shield NECC’s operations from regulatory oversight by the FDA by claiming to be a pharmacy dispensing drugs pursuant to valid, patient-specific prescriptions. In fact, NECC routinely dispensed drugs in bulk without valid prescriptions. NECC even used fictional and celebrity names on fake prescriptions to dispense drugs such as “Michael Jackson,” “Freddie Mae” and “Diana Ross.”
Cadden faces a statutory maximum sentence of up to 20 years in prison on each of the mail fraud and racketeering counts. 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 William D. Weinreb; Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division; Special Agent in Charge Jeffrey Ebersole of the U.S. Food and Drug Administration, Office of Criminal Investigations’ New York Field Office; Special Agent in Charge Harold H. Shaw of the FBI, Boston Field Division; Special Agent in Charge Leigh-Alistair Barzey of the Defense Criminal Investigative Service, U.S. Department of Defense, Office of Inspector General, Northeast Field Office; Special Agent in Charge Donna Neves of the Department of Veterans Affairs, Office of Inspector General, Northeast Field Office; and Inspector in Charge Shelly Binkowski of the U.S. Postal Inspection Service, made the announcement today. Assistant U.S. Attorneys George P. Varghese and Amanda P.M. Strachan of Weinreb’s Health Care Fraud Unit and Trial Attorney John W.M. Claud of the Justice Department’s Consumer Protection Branch are prosecuting the case.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the District of Massachusetts, visit its website at https://www.justice.gov/usao-ma.
Owner of New England Compounding Center Convicted of Racketeering Leading to Nationwide Fungal Meningitis OutbreakRead the Press Release
BOSTON – Barry Cadden, the owner and head pharmacist of New England Compounding Center (NECC), was convicted today by a federal jury of racketeering and mail fraud in connection with the 2012 nationwide fungal meningitis outbreak.
After a nine-week trial, the jury convicted Cadden, 50, of Wrentham, Mass., of racketeering, racketeering conspiracy, mail fraud and introduction of misbranded drugs into interstate commerce with the intent to defraud and mislead. U.S. District Court Judge Richard G. Stearns scheduled sentencing for June 21, 2017.
In 2012, 753 patients in 20 states were diagnosed with a fungal infection after receiving injections of preservative-free methylprednisolone acetate (MPA) manufactured by NECC. Of those 753 patients, the U.S. Centers for Disease Control and Prevention (CDC) reported that 64 patients in nine states died. The outbreak was the largest public health crisis ever caused by a pharmaceutical product.
Specifically, Cadden directed and authorized the shipping of contaminated MPA to NECC customers nationwide. In addition, he authorized the shipping of drugs before test results confirming their sterility were returned, never notified customers of nonsterile results, and compounded drugs with expired ingredients. Furthermore, certain batches of drugs were manufactured, in part, by an unlicensed pharmacy technician at NECC. Cadden also repeatedly took steps to shield NECC’s operations from regulatory oversight by the FDA by claiming to be a pharmacy dispensing drugs pursuant to valid, patient-specific prescriptions. In fact, NECC routinely dispensed drugs in bulk without valid prescriptions. NECC even used fictional and celebrity names on fake prescriptions to dispense drugs such as “Michael Jackson,” “Freddie Mae” and “Diana Ross.”
Cadden faces a maximum sentence of 20 years in prison on each of the mail fraud and racketeering counts. 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 William D. Weinreb; Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division; Jeffrey Ebersole, Special Agent in Charge of the U.S. Food and Drug Administration, Office of Criminal Investigations’ New York Field Office; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Leigh-Alistair Barzey, Special Agent in Charge of the Defense Criminal Investigative Service, U.S. Department of Defense, Office of Inspector General, Northeast Field Office; Donna Neves, Special Agent in Charge of the Department of Veterans Affairs, Office of Inspector General, Northeast Field Office; and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. Assistant U.S. Attorneys George P. Varghese and Amanda P.M. Strachan of Weinreb’s Health Care Fraud Unit and Trial Attorney John W.M. Claud of the Justice Department’s Consumer Protection Branch are prosecuting the case.
Lawrence Man Pleads Guilty to Money Laundering and Theft of Public FundsRead the Press Release
BOSTON – Leonardo Lara, 36, pleaded guilty yesterday to concealment money laundering, transacting in criminally-derived property, and theft of public funds. U.S. District Court Judge Rya W. Zobel scheduled sentencing for June 28, 2017.
On at least 10 occasions between January and March 2012, Lara converted fraudulent United States Treasury tax refund checks for his own use. Specifically, Lara deposited into his personal checking account at least 10 fraudulent tax refund checks payable in the names of taxpayers in Puerto Rico and elsewhere that resulted from the filing of fraudulent tax returns in tax years 2010 and 2011. Each of the tax refund checks was endorsed with the purported signature of the payee taxpayer and the notation “pay to the order of Leonardo Lara” along with the defendant’s signature. The payees of the tax refund checks did not earn the wages reported in the tax returns and were unaware that the tax returns had been filed in their names. Shortly after the tax refund checks cleared, Lara made cash withdrawals from the account. In total, he converted at least $67,871 in government funds for his own use.
In addition, Lara engaged in money laundering activity relating to the purchase of property. Specifically, on Feb. 12, 2012, Lara purchased a cashier’s check in the amount of $56,574 with funds withdrawn from an account controlled by him held in the name of JZE LLC. The bank account was funded, at least in part, by structured cash deposits, and the funds withdrawn from the bank had been derived, at least in part, from Lara’s theft of public funds. Lara used the cashier’s check to purchase property on Riverside Drive in Lawrence, Mass. Lara conducted a similar activity on March 16, 2012 – purchasing a cashier’s check for $60,657 and using it to purchase property on Florence Street in Lawrence. These transactions were designed to conceal the nature and source of the proceeds.
The charge of concealment money laundering provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $500,000 and forfeiture. The charges of transacting in criminally-derived property and theft of public funds provides for a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $250,000, forfeiture and restitution. 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; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation Division in Boston; and Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, made the announcement today. Assistant U.S. Attorney Linda M. Ricci of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
Former President of Telexfree Sentenced for Billion Dollar Pyramid SchemeRead the Press Release
BOSTON – The former President of Telexfree, Inc., a global pyramid scheme disguised as an internet telecom company, was sentenced today in U.S. District Court in Worcester.
James Merrill, 55, of Ashland, was sentenced by U.S. District Court Judge Timothy S. Hillman to six years in prison and three years of supervised release. In October 2016, Merrill pleaded guilty to one count of wire fraud conspiracy and eight counts of wire fraud. He also agreed to forfeit approximately $140 million and other assets.
“Despite knowing that Telexfree was a pyramid scheme, Mr. Merrill profited for years at the expense of the hard-working individuals who invested in the fraudulent company,” said Acting U.S. Attorney William D. Weinreb. “For the hundreds of thousands of investors, here and around the world, who were taken in by the lies promoted by Mr. Merrill and Telexfree, today’s sentence provides a measure of justice. Mr. Merrill’s greed damaged the livelihoods of thousands of people who were simply struggling to make ends meet.”
“While the harm and damage James Merrill caused by stealing more than $3 billion from innocent investors can never be repaired, his victims in more than 240 countries around the world can take some small measure of satisfaction that he is now looking at six years in federal prison and a substantial forfeiture as repayment for his crimes.” said Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston. “HSI special agents will continue to aggressively investigate those who seek to profit by taking advantage of others.”
Between February 2012 and April 2014, Merrill was the President of TelexFree, Inc., which sold a “voice-over-internet-protocol” (VOIP) telephone service, similar to Skype, for which customers could sign up on a website maintained by TelexFree. TelexFree, however, was a pyramid scheme; all of the money TelexFree paid out came, not from sales of its product, but from new participants paying TelexFree to sign up as “promoters” for the company.
TelexFree’s website prominently featured Merrill as the leader of the company and as an experienced businessman in the telecom field. As the website advertised at various times, participants paid $1,425 or $339 to sign up with TelexFree, after which they would be paid $100 per week or $20 per week to post classified ads every day on the internet. The company couched those payments in terms of “buying back” unused VOIP packages the participants were unable to sell, but the reality was that participants were guaranteed an annual return of over 200% on their money without having to sell anything. Among other things, emails showed Merrill’s awareness that the ad-posting was intended only to ensure that people visited TelexFree’s web site as opposed to generating actual retail sale of the VOIP product. Participants spent minutes a day cutting and pasting ads into various classified ad sites provided by TelexFree, which were already saturated with thousands of ads posted by earlier participants.
Participants were also given substantial financial incentives to recruit others to join the scheme. To receive bonuses for recruiting others, in theory each participant needed to have one VOIP customer. But in reality, participants met this requirement simply by buying the product themselves and, in 97% of instances, never using it. In this way, TelexFree created the illusion that it had hundreds of thousands of legitimate VOIP customers. On paper the company sold about 12.4 million VOIP plans, but in reality it had a tiny number of legitimate customers, an even smaller number of which had actually paid money to TelexFree for the service. Overall, the nearly 2 million who participated in TelexFree made 96% of their compensation, not from selling the company’s VOIP service, but from ad-posting and recruiting others to join.
TelexFree derived only a fraction of its total revenue in a two-year period from sales of VOIP service – approximately 2%. The remaining 98% came from new people buying into the scheme. TelexFree could only pay the returns it had promised to its existing promoters by bringing in money from newly-recruited promoters.
Beginning in late 2012, involvement in TelexFree spread rapidly, and by April 2014, well over a million people worldwide had signed up with the company. This included over 20,000 people in Worcester, Mass. alone, and thousands more in Boston, Framingham, Chelsea and other communities statewide. Meanwhile, beginning in 2013, Merrill received increasingly frequent warnings that the company was a pyramid scheme. Beginning in August 2013, Merrill began to take steps to change how the company did business, but Merrill never alerted the public, even though over a million people signed up for TelexFree between that month and TelexFree’s collapse.
In December 2013, Merrill wired himself and two co-conspirators a total of $10 million from TelexFree accounts. On April 14, 2014, Telexfree filed for bankruptcy, at which point it owed approximately $6 billion to its participants, while having only about $120 million on hand (about 2% of what it owed). At that point, approximately 1,855,000 participants worldwide lost money in the scheme, with total losses of about $3,045,000,000. Overall, these victims came primarily from the United States (all 50 states), Brazil, China, Portugal, Peru, other Central and South American nations, Italy, and Russia, with smaller victim populations in dozens of other countries.
Acting U.S. Attorney Weinreb and HSI SAC Etre made the announcement today. The U.S. Attorney’s Office also received valuable assistance from the Federal Bureau of Investigation, the Brazilian Federal Police based in Vitoria, Brazil, the Securities & Exchange Commission, and the Massachusetts Securities Division of the Office of the Secretary of the Commonwealth of Massachusetts. Assistant U.S. Attorneys Andrew E. Lelling and Neil J. Gallagher, Jr., of Weinreb’s Economic Crimes Unit are prosecuting the case.
Dominican National Sentenced for Being an Alien in Possession of a FirearmRead the Press Release
BOSTON – A Dominican national was sentenced in U.S. District Court in Boston yesterday in connection with being an alien in possession of a firearm and ammunition.
Felix Renaldo Nunez-Guerrero, 43, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 37 months in prison and three years of supervised release. Following the completion of his sentence, Nunez-Guerrero will be placed into removal proceedings and deported to the Dominican Republic.
On April 23, 2016, Lawrence police officers were dispatched to the area near Poplar Street and Alder Street in response to a report of shots fired. Upon arrival, they received information that the individual involved in the shooting had fled in a white Mercedes SUV. At the scene, law enforcement officers recovered eight .45 caliber shell casings.
Shortly thereafter, officers stopped a white Mercedes SUV containing three occupants and removed them for questioning. Additionally, the officers recovered a silver Para Ordinance .45 caliber semi-automatic firearm from under the front passenger’s seat. While being questioned at the police station, the front seat passenger provided a false name, but his fingerprints were found to match those of Nunez-Guerrero. According to law enforcement records, Nunez-Guerrero was a citizen of the Dominican Republic and had been deported on two previous occasions, March 25, 2009 and July 21, 2015. Nunez-Guerrero was interviewed and admitted to being an alien, to previously being deported, and to firing the .45 caliber firearm. Nunez-Guerrero’s hands were swabbed and later tested positive for gunshot residue.
Acting United States Attorney William D. Weinreb; Matthew Etre, Special Agent in Charge of Homeland Security Investigation in Boston; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Lawrence Police Chief James X. Fitzpatrick made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crime Unit prosecuted the case.
Chelsea Produce Distributor Sentenced for Perjury and Obstruction of JusticeRead the Press Release
BOSTON – A Chelsea produce distributor was sentenced yesterday in U.S. District Court in Boston after pleading guilty to filing fraudulent documents in federal court and then committing perjury in an attempt to conceal his crime.
John S. Alphas, 57, was sentenced by U.S. District Court Judge Leo T. Sorokin to one year and one day in prison, to be served consecutively with a 15-month federal sentence he is currently serving for an unrelated insurance fraud scheme, and a fine of $5,000. In January 2017, Alphas was charged with tampering with documents and making false declarations before a court.
From 2010 to 2012, Alphas was a participant in at least 14 lawsuits filed in federal court in Boston. In a number of the lawsuits, Alphas filed fraudulent appeal bonds, usually created by purchasing less expensive bonds that were easier to obtain, altering them, and then filing the forgeries with the court. When one of Alphas’s counterparties discovered his fraud in 2013, Alphas filed a false declaration about the bond with the court, and then testified falsely in a court hearing disclaiming any role in the creation or filing of any fraudulent bond. Despite having been responsible for filing the forged bond, Alphas falsely testified that he “had nothing to do with” obtaining, altering, or filing the bond with the court.
Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement. Assistant U.S. Attorney Brian Pérez-Daple of Weinreb’s Criminal Division prosecuted the case.
Cape Cod Man Pleads Guilty to Heroin Trafficking and Money LaunderingRead the Press Release
BOSTON – A Hyannis man pleaded guilty today in U.S. District Court in Boston in connection with trafficking heroin and money laundering.
Christian Chapman, 27, pleaded guilty to conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin and money laundering. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for July 12, 2017.
In October 2015, law enforcement initiated an effort to address the rising opiate epidemic in Massachusetts and on Cape Cod in particular. According to court documents, Chapman 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 indictment. Chapman obtained heroin from New Bedford, amongst other suppliers, and distributed the heroin to numerous drug dealers on Cape Cod. In total, Chapman agreed to accept responsibility for between 400 and 700 grams of heroin. In addition, Chapman rented a home in Hyannis at which he stored his narcotics. In order to pay the rent, Chapman wired money to the individual whose name was on the lease.
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 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 charge of money laundering provides for 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; 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.
Worcester Business Owner Indicted for Fentanyl Distribution and Money LaunderingRead the Press Release
BOSTON – A Worcester business owner was arrested yesterday and charged in connection with using the proceeds of drug sales to purchase and renovate nine properties in Worcester County.
Kevin A. Perry, 43, of Worcester, was indicted on nine counts of money laundering, three counts of aggravated cash structuring, one count of making a false statement on a loan application and one count of distribution of fentanyl. Perry was held pending a detention hearing following his arraignment before U.S. District Court Magistrate Judge David H. Hennessy.
According to the indictment, in January 2005, Perry was convicted in federal court in Massachusetts of conspiracy to manufacture and distribute MDMA, commonly referred to as Ecstasy. Despite filing an affidavit claiming he possessed nothing of monetary value to satisfy the court’s forfeiture order, Perry asserted to an individual that he successfully concealed “millions of dollars” in profits from his illegal drug operation from the government. Following his release from prison in 2008, Perry allegedly returned to manufacturing and/or distributing controlled substances, including anabolic steroids, cocaine and fentanyl. It is alleged that from April 2012 to October 2016, Perry used over $1 million in drug sale proceeds to purchase and renovate nine properties in Worcester County.
Perry also allegedly used the proceeds from his drug sales to purchase more than 230 money orders totaling over $150,000 from the United States Postal Service and Western Union to make structured cash payments on real estate loans and to finance his wedding in August 2015.
The charge of money laundering provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $500,000 or twice the value of the property involved in the transaction, whichever is greater. The charge of aggravated cash structuring provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $500,000. The charge of making a false statement on a loan application provides for a sentence of no greater than 30 years in prison, five years of supervised release and fine of $1 million. The charge of distribution of fentanyl provides a mandatory minimum sentence of 10 years and no greater than life in prison, and five years of supervised release. 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; and Shelly Binkowski, Inspector in Charge of the United States Postal Inspection Service, made the announcement today. Assistant U.S. Attorney Greg A. Friedholm of Weinreb’s Worcester Branch Office is prosecuting the case.
The details contained in the 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.
Springfield Man Sentenced for Firearm ChargeRead the Press Release
BOSTON – A Springfield man was sentenced today in U.S. District Court in Springfield for unlawfully possessing a firearm.
Mark Alexander, 26, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 18 months in prison and three years of supervised release. In December 2016, Alexander pleaded guilty to one count of possession of a firearm and ammunition by a felon.
On Sept. 2, 2015, Alexander possessed a .22 caliber pistol. As a result of a prior felony offense, Alexander was prohibited from possessing a firearm and ammunition. Alexander and his co-defendant, Hector Nieves, worked together to sell the pistol and ammunition to a cooperating witness.
In July 2016, Nieves was sentenced to five years in prison for the same charge.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division, made the announcement today. The case was investigated by the FBI’s Western Massachusetts Gang Task Force and the ATF. Assistant U.S. Attorney Alex J. Grant of Weinreb’s Springfield Branch Office prosecuted the case.
South Boston Woman Indicted for Identity TheftRead the Press Release
BOSTON - A South Boston woman was arrested today for using false Social Security numbers on a job application and an apartment rental application after she completed a prison sentence in a previous fraud case.
Dana Whidbee, a/k/a Dana De Alasei, 53, was charged with two counts of falsely representing a Social Security number. She is scheduled to appear before U.S. District Court Magistrate Judge Donald L. Cabell at 3:00 p.m.
According to court documents, in 2006, Whidbee was sentenced to two years in prison after pleading guilty to wire fraud charges. Whidbee had posed as an agent for non-existent homebuyers and fraudulently obtained funds from various not-for-profit companies that were in the business of providing down-payment money to eligible buyers.
According to the indictment that was unsealed today, after her release from prison, Whidbee applied for a job on Sept. 16, 2013, using a false Social Security number. On May 17, 2014, she applied for an apartment using a false Social Security number.
The charge of falsely representing a Social Security number provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $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 Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and David W. Hall, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office made the announcement today. Special Assistant U.S. Attorney Timothy Landry of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Newton Man Sentenced to Prison for Extortion and GamblingRead the Press Release
BOSTON – A Newton man was sentenced today in U.S. District Court in Boston to seven years in prison for extortion and conducting an illegal gambling business.
Joseph Yerardi, 62, of Newton, was sentenced by U.S. District Court Judge Denise J. Casper to seven years in prison and three years of supervised release. Judge Casper also issued an order forfeiting over $68,000 in cash recovered in searches or from bank accounts in Yerardi’s name, as well as 30 fake luxury watches also recovered in searches, and a forfeiture money judgment order against Yerardi for $300,000.
In December 2016, Yerardi 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.
Yerardi was the head of a large bookmaking business that made hundreds of thousands of dollars and used threats or other extortionate means to collect debts. Among other things, a debtor reported that Yerardi threatened to stab the debtor “twenty times” for not paying a gambling debt.
In 2009, Yerardi was convicted in federal court in Boston of racketeering, conducting an illegal gambling business, money laundering, and collection of credit by extortionate means, and sentenced to 100 months in prison. In 1995, Yerardi was convicted in federal court in Boston of racketeering, extortionate extensions of credit, collection of credit by extortionate means, money laundering, conducting an illegal gambling business and witness intimidation, and sentenced to 135 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, Superintendent of the Massachusetts State Police, made the announcement today. The Internal Revenue Service’s Criminal Investigations in Boston, the Massachusetts Department of Correction, and the Boston, Cambridge, Medford, and Quincy Police Departments assisted with the investigation. Assistant U.S. Attorney Timothy E. Moran of Weinreb’s Organized Crime and Gang Unit prosecuted the case.
Nahant Man Arrested on Extortion ChargeRead the Press Release
BOSTON – A Nahant man was arrested today and charged with extortion in connection with arranging and paying for a local business owner to be assaulted.
Gary P. DeCicco, 58, was charged by complaint with attempted extortion. DeCicco was detained following an initial appearance in U.S. District Court in Boston this afternoon.
According to the criminal complaint, 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 the 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 complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Boylston Man Charged with Distributing Child PornographyRead the Press Release
BOSTON – A Boylston man was arrested and charged yesterday in U.S. District Court in Worcester for distributing child pornography.
Randy Alan Chaplis, 32, was charged in a criminal complaint with distributing child pornography. Chaplis was arrested on Thursday, March 16, 2017, and was detained pending a hearing scheduled for March 20, 2017.
According to the complaint, on Feb. 9, 2017, Chaplis sent an email to an undercover law enforcement officer that included multiple images of child pornography. During other email communications with this undercover officer, Chaplis stated that he likes 3-to-10 year olds and that he has “fun” with his girlfriend’s five-year-old daughter when her mother is not home. Chaplis emailed graphic descriptions of sexual acts he had purportedly performed with this child and asked whether the undercover officer intended to have sexual intercourse with an infant daughter once she turned three or four. The complaint also alleges that Chaplis bragged to another internet user about having sexual intercourse with a four-year-old-girl.
On March 15, 2017, law enforcement agents executed a search warrant at Chaplis’s residence and located an external hard drive and a desktop computer that included multiple images of child pornography.
The charging statute provides a mandatory minimum sentence of five years and no greater than 20 years in prison, a 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 and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney William F. Abely of Weinreb’s Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to 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/.
Worcester Sex Offender Sentenced to 17 Years on Child Pornography ChargesRead the Press Release
BOSTON – Neil Sweeney, 51, was sentenced on Monday, March 13, 2017, by U.S. District Court Judge Timothy S. Hillman to 17 years in prison and 10 years of supervised release. In October 2016, Sweeney was convicted by a federal jury of possessing and distributing child pornography.
The charges arose from a federal online operation. In April 2015, an individual, later determined to be Sweeney, used Gigatribe, an internet file sharing program, to distribute dozens of videos and images of minors engaging in sexually explicit conduct to an undercover federal agent in Newark, NJ. The investigators established through subscriber records, email records and other internet social networking activity that Sweeney was the user of the Gigatribe account. The investigation further revealed that Sweeney resided in Worcester, and in May 2015, law enforcement agents arrested Sweeney.
In 1995, Sweeney was convicted in Worcester Superior Court for the indecent assault and battery on two boys, both under the age of 14. As a result of those convictions, Sweeney was required to register as a Level 3 sex offender.
Acting United States Attorney William D. Weinreb; Harold Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Worcester Police Chief Steven Sargent, made the announcement today. Homeland Security Investigations and the Massachusetts State Police assisted with the investigation. Assistant U.S. Attorneys Greg A. Friedholm and Karin M. Bell of Weinreb’s Worcester Branch Office prosecuted the case.
Ten Arrested in Multi-State Oxycodone and Heroin Trafficking RingRead the Press Release
BOSTON –Ten men were arrested today in connection with an oxycodone, heroin, and fentanyl trafficking and money laundering operation operating between Massachusetts, Maine and Florida.
Each of the ten men were charged in a superseding indictment unsealed today, with offenses including conspiracy to distribute and to possess with intent to distribute heroin, fentanyl, and oxycodone, and conspiracy to launder monetary instruments:
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Jesus Gonzalez, 22, of Haverhill, Mass.;
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Jenssi Astacio, 30, of Miami, Fla.;
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Gorky Gonzalez, 24, of Biddeford, Maine;
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Craig Drummond, 25, of Miami, Fla.;
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Darren Infante, 26, of Miami, Fla.;
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Moses Rodriguez, 29, of Lawrence, Mass.;
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George Noukas, 27, of Manchester, NH;
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Juan Reyes, 29, of Lawrence, Mass.;
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Johnny Urena, 29, of Lawrence, Mass.; and
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Jeffrey Brathwaite, 32, of Lawrence, Mass.
The superseding indictment, which was the result of a three-year investigation, alleges that beginning in at least 2014, Jesus Gonzalez, Astacio, Gorky Gonzalez, Drummond, Infante, Reyes, Urena, and others, participated in a conspiracy to transport sizeable quantities of oxycodone from Miami, Fla., to Massachusetts, where it was distributed in the greater Boston area. Proceeds from the sale of the drug were then transported and/or transferred back to Florida and laundered in various ways. It is further alleged that beginning in at least 2014, Jesus Gonzalez, Rodriguez, Noukas, Urena, and Brathwaite participated in a conspiracy to distribute sizeable quantities of heroin and fentanyl in the greater Boston area.
The charges of conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin or 40 grams or more of fentanyl provide for a minimum mandatory sentence of five years and up to 40 years in prison, a lifetime of supervised release and a fine of $5 million. The charges of conspiracy to distribute and possess with the intent to distribute oxycodone provides for a sentence of no greater than 20 years in prison, a lifetime of supervised release, and a fine of $1 million. The charge of conspiracy to launder monetary instruments provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $500,000 or twice the 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 U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; John Gibbons, U.S. Marshal of the District of Massachusetts; and Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. The Massachusetts State Police; Lawrence, Methuen, Natick, Stoughton, Millis, Manchester (New Hampshire), Biddeford (Maine), Haverhill, Framingham, and Waltham Police Departments assisted with the investigation. Assistant U.S. Attorney Karen Beausey of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the superseding indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Quincy Man Pleads Guilty to Multiple Bank RobberiesRead the Press Release
BOSTON – A Quincy man pleaded guilty today in U.S. District Court in Boston to multiple bank robberies throughout the Boston area.
Kyle P. Nathan, 28, pleaded guilty to four counts of bank robbery. U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for July 12, 2017.
According to court documents, on various dates in February and March 2016, a number of banks were robbed in the Greater Boston area. Due to the similarity of how the banks were robbed, and the physical description of the robber, law enforcement suspected that the same individual was involved in each of the robberies.
Law enforcement identified Nathan as the individual responsible for the robberies of a branch of the East Boston Savings Bank in South Boston on February 27, 2016; a branch of the East Boston Savings Bank in Dorchester on March 8, 2016; a branch of the Santander bank in Chelmsford on March 10, 2016; and a branch of the Citizens Bank in Chelmsford on March 18, 2016.
On March 18, 2016, following the robbery of the Citizens Bank in Chelmsford, law enforcement officers arrested Nathan. At the time of his arrest, Nathan was wearing the same clothing he had been wearing during the prior robberies.
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 count. 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; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Chelmsford Police Chief James Spinney, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.
Mansfield Man Sentenced for Threatening President of the United StatesRead the Press Release
BOSTON – A Mansfield man was sentenced today in U.S. District Court in Boston in connection with posting online threats to the President of the United States.
Andrew J. O’Keefe, 31, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to time served, which was approximately six months, and two years of supervised release.
On May 13, 2015, an individual, later determined to be O’Keefe, posted a threat on a FBI website stating that he planned to kill President Barack Obama. On May 15, 2015, law enforcement officers attempted to interview O’Keefe regarding the posting; however, O’Keefe refused to speak with them outside of his residence. A search warrant executed at O’Keefe’s home and vehicle resulted in the recovery of over 100 weapons including swords, double-edged knives, hatchets, spears, an air gun and two laptop computers. O’Keefe was initially arrested on state charges and later charged federally.
Acting United States Attorney William D. Weinreb; Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service; and Mansfield Police Chief Ronald A. Sellon, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.
Pain Management Physician Pleads Guilty to Health Care Fraud and Money LaunderingRead the Press Release
BOSTON – A Dover, Mass., pain management physician pleaded guilty today in U.S. District Court in Boston in connection with his scheme to defraud Medicare and other health care insurers, and then using the proceeds of his illegal activity to support his extravagant lifestyle.
Fathallah Mashali, 62, pleaded guilty to 27 counts of health care fraud, one count of conspiracy to commit mail fraud, and 16 counts of money laundering. U.S. District Court Senior Judge Rya W. Zobel scheduled sentencing for June 21, 2017. Judge Zobel ordered Mashali released on GPS monitoring pending sentencing.
Mashali was a licensed physician in Massachusetts and Rhode Island. Mashali 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 for extensive medical services that he did not provide. He treated patients with chronic pain conditions and frequently gave his patients large doses of prescription medications, including powerful opiates. Mashali falsely stated in patients’ medical records and representations to Medicare and private insurance companies that he had seen patients for twenty-five minutes per appointment or longer, when in fact, Mashali often saw his patients for less than five minutes. In his brief interactions with his patients, Mashali did not perform any physical examinations and barely inquired into the patient’s medical status or history. In addition, he overbooked his patient appointments and arrived to work sometimes as late as four hours after his first scheduled appointment. His scheduling practices caused significant overcrowding at his offices and left him with no meaningful ability to assess each individual patient. Mashali then falsely documented that he conducted extensive physical exams, when he most often did not even touch his patients. As a result of his false statements, he obtained substantial reimbursement from Medicare and private insurance companies.
Mashali also routinely billed Medicare and private insurers for urine drug test results that were false and fraudulent. He caused patients’ urine samples to be stored for weeks and up to three months unrefrigerated in a heated, sunlit space in his laboratory in Holbrook, Mass., which left them degraded and worthless. The decomposition caused a significant stench of stale urine throughout the lab. Mashali nevertheless made his lab technicians test all the old urine, while well aware that his practice of urine sample storage was wrong. When inspectors showed up at his lab, he directed his staff to move the unrefrigerated urine out of sight.
Mashali mandated that his staff run every patients’ urine sample on two machines, each of which used the same scientific testing methodology, which Mashali knew was contrary to Medicare billing rules. He caused every patients’ urine specimen to be chemically confirmed, despite the fact that he did not even know the result of the initial urine drug screening test, knowing that this was also contrary to Medicare billing rules. Moreover, Mashali ran tests on chemical analyzers that had not been properly calibrated and validated.
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 residence and a condominium in Florida. For example, he ordered the construction of a carriage house, outfitted with a squash court and movie theater, at his Dover home.
“Dr. Mashali failed his patients and deceived Medicare,” said Acting U.S. Attorney William D. Weinreb. “He billed Medicare for patient visits and urine drug testing that he did not perform. He exposed his vulnerable patient population to significant medical risks, by refusing to properly examine them and by paying no attention to the results of their drug tests. A physician who knowingly defrauds Medicare and other health care insurers compromises patient care and squanders precious health care resources.”
“The FBI will continue to target those providers in the medical community who operate under the cover of legitimacy to commit criminal acts,” said Harold Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “Today’s plea highlights the ongoing work the FBI is doing to investigate providers who exploit patients by submitting fraudulent medical claims for services they never provided.”
“Dr. Mashali violated the fundamental trust that taxpayers and patients have in medical professionals. Such health care fraud scams increase health care costs, threaten patient health and well-being, and undermine the public’s trust in the health care profession,” said Special Agent in Charge Phillip Coyne of the U.S. Department of Health and Human Services, Office of Inspector General. “Working together with our law enforcement partners to stop fraud, as we did today, will ensure that Americans’ hard-earned dollars are used to provide quality care for patients — not to line the pockets of criminals.”
“This matter illustrates the commitment of all agencies to combat medical billing fraud which affects all citizens,” said Anthony M. DiPaolo, Chief of Investigations for the Insurance Fraud Bureau. “The Insurance Fraud Bureau of Massachusetts places a high priority on fighting this type of insurance fraud. The collaboration in this matter is unprecedented.”
“Fraud schemes of this magnitude undermine the integrity of our health care system and contribute to its rising cost,” said Special Agent in Charge Joel P. Garland, of the Internal Revenue Service’s Criminal Investigation. “Ultimately, Dr. Mashali’s patients were deprived of quality health care while he was unjustly enriched. We are proud of our law enforcement partnership in this important investigation, and IRS will continue to offer our forensic accounting skills to combat health care fraud in all forms.”
Acting U.S. Attorney Weinreb; FBI SAC Shaw; HHS-OIG SAC Coyne; Massachusetts IFB Chief DiPaolo; IRS-CI SAC Garland; and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. Assistant U.S. Attorneys Maxim Grinberg and Abraham R. George of Weinreb’s Office are prosecuting the case.
National Youth Violence Prevention Week Events AnnouncedRead the Press Release
BOSTON – The Boston Interagency Committee on Violence Prevention announced its annual anti-violence creative contests and a call for all Boston Public school students to participate. Winners will be announced during the City’s National Youth Violence Prevention Week festivities, April 3 – 7.
Students in grades K-8 are invited to submit posters, middle school students can submit poetry, and high school students can enter their own music videos – all must reflect this year’s theme, “Youth Standing Strong Against Violence.” Prizes include gift cards, tickets to Red Sox and Celtics games, and an interview on JAM’N 94.5. Contest winners will be revealed at the annual city-wide Peace Rally at the Reggie Lewis Track & Athletic Center at Roxbury Community College on April 6, 2017 from 5:30 to 7:30 pm.
Information on the contests and Peace Rally is available at https://www.boston.gov/calendar/youth-peace-rally or by emailing [email protected].
Other National Youth Violence Prevention Week events include a program at the J.W. Hennigan School in Jamaica Plain, merging the U.S. Attorney’s “Your Future, Your Decision” presentation with the Suffolk County District Attorney’s “Overcoming Violence” graduation, as well as a Flashlight Walk with the Boston Police Department.
National Youth Violence Prevention Week aims to raise awareness and educate young people, parents, and communities as a whole, about effective ways to prevent and reduce youth violence. The campaign, which is held in cities across the country, features activities, competitions and events that bring young people together to make their schools and communities safer using peaceful forms of self-expression.
The Boston Interagency Committee on Violence Prevention consists of representatives from the U.S. Attorney’s Office, Office of the Governor, Massachusetts Attorney General’s Office, MassHousing, Suffolk County District Attorney’s Office, Suffolk County Sheriff’s Department, City of Boston Mayor’s Office, Boston Police Department and the Boston Centers for Youth & Families.
JAM’N 94.5 Radio, Roxbury Community College, Crystal Rock Beverages and the Boston Police Athletic/Activities League are sponsoring the contests and Peace Rally.
Boston Woman Sentenced for Conspiracy to Sell Weapons Stolen from U.S. Army Facility in WorcesterRead the Press Release
BOSTON – A Boston woman 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.
Ashley Bigsbee, 27, of Dorchester, was sentenced by U.S. District Court Judge Timothy S. Hillman to 21 months in prison and 36 months of supervised release. In January 2016, Bigsbee and two co-defendants, Tyrone James 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. In December 2016, Bigsbee 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 handguns.
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.
During an interview on Nov. 20, 2015, Bigsbee lied to federal agents concerning her knowledge of the sale of the firearms. Following her arrest on Nov. 27, 2015, Bigsbee arranged to contact the acquaintance from Kingsdale Street asking him to leave the duffle bag outside on the sidewalk for police. Bigsbee then directed agents to Kingsdale Street, where the final M-4 Carbine was recovered from a duffle bag on the sidewalk. 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.
During the sentencing hearing, the government argued that Bigsbee, while a person with a limited criminal record who had not previously been incarcerated, deserved a significant prison sentence in light of her efforts to assist with sale of the stolen firearms, including the machineguns.
Co-defendant Tyrone James is scheduled to be sentenced on March 24, 2017 and James Morales is scheduled for trial on April 10, 2017.
Acting 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.
Billerica Man Pleads Guilty to Child Pornography OffensesRead the Press Release
BOSTON – Brian Ashley, 38, pleaded guilty to one count of distribution and one count of possession of child pornography. U.S. District Court Judge George A. O’Toole, Jr. scheduled sentencing for June 19, 2017.
In February 2016, federal agents in Montana executed a search warrant at the home of an individual who had been sending and receiving images of child pornography. During the search, the individual was interviewed and agreed to allow agents to assume his online identities – including his Kik Messenger account. Kik Messenger is an online service that allows users to send messages, pictures and videos.
On Feb. 23, 2016, law enforcement initiated an undercover operation on Kik by sending out a message to the Montana individual’s contact list. An individual using the Kik username “orcusvox,” with the display name Brian Ashley, responded and a conversation ensued during which orcusvox asked whether the Montana individual had “anything new?” The undercover agent told orcusvox that he had lost everything and had to start over. The Kik user orcusvox then sent the undercover agent several images of child erotica and child pornography. On March 1, 2016, the Kik user orcusvox sent the undercover agent three video files also containing child pornography.
Agents obtained customer account and IP login information for the Kik user orcusvox and confirmed that the account was registered to Brian Ashley. It was also determined that the account had been accessed on the dates of the transfers from Ashley’s Billerica home as well as from his place of employment. Investigators subsequently obtained a search warrant for Ashley’s home, which resulted in seizure of his cell phone. Forensic review of phone revealed that Ashely had exchanged child pornography with other Kik users as well. In total, 246 images and 77 videos containing child pornography were found on Ashely’s cell phone.
The charge of distribution of child pornography provides for a mandatory minimum sentence of five years and no greater than 20 years in prison, a minimum of five years and up to 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 20 years in prison, a 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 and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorneys Jordi de Llano and Anne Paruti of Weinreb’s Criminal Division are prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to 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/.
Cape Cod Man Sentenced for Drug and Money Laundering RingRead the Press Release
Boston - A Cape Cod man was sentenced today in U.S. District Court in Boston in connection with running a large-scale marijuana operation and then laundering the proceeds.
David Landry, 29, of Mashpee, was sentenced by U.S. District Court Judge Indira Talwani to 78 months in prison and three years of supervised release. Landry is currently serving a four-year state sentence for heroin distribution. The federal sentence will run concurrently with the remainder of his state sentence. In December 2015, Landry, his mother, Diane Johnson, Justin Groom and Evan Lopes, were indicted with possession with intent to distribute marijuana, conspiracy to manufacture marijuana, money laundering, possession with intent to distribute methylone (also known as “molly”), being a felon in possession of a firearm and money laundering conspiracy.
From May 2014 to January 2015, Landry and Groom conspired to manufacture and distribute marijuana, and possessed marijuana with the intent to distribute it. Landry, who was arrested and has been in state custody since Sept. 12, 2014, continued participating in the criminal offense while in jail on the state charges. On Jan. 6, 2015, law enforcement authorities executed a search warrant at a residence on Cheryl Lane in Pocasset, Mass., and seized numerous marijuana plants and extensive growing equipment. Groom is alleged to have used the proceeds of the illegal activities to pay the rent on the Cheryl Lane house.
It is alleged that Lopes, aided by Landry, possessed with intent to distribute methylone, a Schedule I controlled substance similar to MDMA. On Jan. 15, 2015, law enforcement authorities executed a search warrant at a residence on Point Pleasant Circle in East Wareham, Mass., and seized two kilograms of methylone and several letters Landry sent to Lopes while Landry was in jail.
Landry, a convicted felon, was in constructive possession of a loaded .40 caliber semi-automatic pistol on Jan. 21, 2015, when law enforcement officers recovered the pistol during a search of a residence on Acapesket Road in Falmouth, Mass. Landry pleaded guilty to constructively possessing the gun and directing an associate to its whereabouts. Finally, from 2010 to 2015, it is alleged that Landry and his mother, Diane Johnson, conspired to launder drug proceeds in order to disguise the nature of the funds and promote continued drug trafficking.
During the sentencing hearing, the government argued that Landry is a dangerous offender whose criminal conduct lasted from at least 2010 to 2015, and continued while he was in state custody. Moreover, it involved significant, wholesale quantities of heroin, methylone, and marijuana. The marijuana grow operation involved sophisticated, expensive equipment for which Landry paid over $40,000, and from which Landry expected to produce substantial illegal revenue for years. The money laundering involved multiple bank accounts and hundreds of thousands of dollars. The loaded firearm, hidden at an associate’s residence, apparently reflected Landry’s intention to continue to use threats and violence in furtherance of his drug trafficking and money laundering activity.
On March 2, 2017, Groom was sentenced to two years of probation after pleading guilty to marijuana and money laundering offenses. Lopes and Johnson are awaiting trial.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Cape and Islands District Attorney Michael D. O’Keefe; Colonel Richard D. McKeon, Superintendent of the Massachusetts States Police; Barnstable County Sheriff James M. Cummings; Barnstable Police Chief Paul MacDonald; Falmouth Police Chief Edward A. Dunne; Mashpee Police Chief Scott Carline; Bourne Police Chief Dennis Woodside; and Wareham Police Chief Kevin D. Walsh, made the announcement today. Assistant U.S. Attorney Ted Heinrich of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.
The details contained in the charging documents are allegations. defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Two Corrections Officers Sentenced for Smuggling Drugs into Middleton JailRead the Press Release
BOSTON – Two former corrections officers at the Essex County Correctional Facility were sentenced recently in U.S. District Court in Boston for their involvement with smuggling Suboxone into the Essex County House of Corrections – Middleton for inmates.
Katherine Sullivan, 32, of Londonderry, N.H., was sentenced yesterday by U.S. District Court Judge Allison D. Burroughs to 36 months of probation, 120 hours of community service, and ordered to pay a fine of $5,000. In November 2016, Sullivan pleaded guilty to one count of conspiring with inmates to distribute Suboxone, a drug used to treat opioid addiction, between October and December 2015.
In January 2017, U.S. District Court Judge Richard G. Stearns sentenced John S. Weir, 34, of Danvers, Mass., to the same sentence after Weir pleaded guilty to conspiring with inmates to distribute Suboxone between September and November 2014. Both Sullivan and Weir have resigned from their positions as corrections officers.
The investigations revealed that Weir and Sullivan obtained Suboxone strips from sources outside the jail and smuggled the contraband into the facility when reporting for their shifts. Inmates receiving the Suboxone from Weir and Sullivan then sold the drug to other prisoners inside the correctional facility.
Essex County Sheriff Kevin F. Coppinger said, “We have a zero tolerance policy for this type of behavior and we will take swift and decisive action in all cases.”
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Essex County Sheriff Coppinger, made the announcement. Assistant U.S. Attorney William F. Bloomer of Weinreb’s Public Corruption and Special Prosecutions Unit prosecuted the cases.
Southampton Man Charged with Child Pornography OffensesRead the Press Release
BOSTON – A Southampton man was charged in U.S. District Court in Springfield today with child pornography offenses.
Bruce Singer, 70, was indicted on five counts of distribution of child pornography, one count of receipt of child pornography, and one count of possession of child pornography.
It is alleged that from April 30, 2013, to June 25, 2015, Singer engaged in several acts of distributing and receiving electronic child pornography files and possessed more than a dozen child pornography files.
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; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Northampton Police Chief Jody Kasper; Easthampton Police Chief Robert Alberti; and Westfield Police Chief John Camerota, made the announcement today. Assistant U.S. Attorney Alex J. Grant of Weinreb’s Springfield Branch Office and Trial Attorney Leslie Fisher of the Justice Department’s Child Exploitation and Obscenity Section are prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to 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/.
Salem Man Sentenced for Scam Defrauding Home DepotRead the Press Release
BOSTON – A Salem man was sentenced today in U.S. District Court in Boston in connection with a scheme to defraud Home Depot of over $45,000.
Robert Dooley, 56, was sentenced by U.S. District Court Judge Douglas P. Woodlock to 18 months in prison, three years of supervised release, and ordered to pay restitution of $46,798. Dooley was also ordered to stay away from all Home Depot and Lowes stores during his period of supervised release. In August 2016, Dooley pleaded guilty to 10 counts of wire fraud.
Between January 2016 and February 2016, Dooley engaged in a scheme to defraud Home Depot by “returning” items he never purchased from the store, in order to receive store credit. On each occasion, Dooley entered Home Depot stores empty handed and gathered merchandise totaling $500 to $900. At the returns desk, Dooley falsely claimed that he previously purchased the items, but did not have a receipt. When he provided this driver’s license number to the clerk, Dooley often varied the number so the “return” would not immediately be detected as fraudulent. Dooley was then issued a Home Depot gift card for the fraudulent return. Dooley perpetrated the scam over forty times at Home Depot stores in Massachusetts, New Hampshire, Rhode Island and Maine, resulting in over $45,000 in fraudulent returns.
In 2007, Dooley was convicted of federal wire fraud charges arising out of a nearly identical scheme in which he defrauded Home Depot in excess of $330,000 from July 2004 through October 2005. In that case, he was sentenced to five years in federal prison.
Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. The case was prosecuted by Assistant U.S. Attorney Eugenia M. Carris of Weinreb’s Public Corruption Unit.
Nashua Felon Pleads Guilty to Fraud SchemeRead the Press Release
BOSTON – A Nashua man pleaded guilty today in U.S. District Court in Boston in connection with defrauding investors in a purported water resource company and laundering money obtained through various online fraud schemes.
Edmond P. LaFrance, 70, pleaded guilty to an indictment charging him with two counts of wire fraud and three counts of money laundering. A sentencing date has not yet been scheduled.
From 2012 to 2013, LaFrance solicited investments and loans for a shell company he created, Natural Waters, that fraudulently claimed to buy and sell mineral water in bulk. In fact, there were no mineral water sales and a large portion of the investor money LaFrance received was directed to his own uses or transferred to co-conspirators. The indictment further charged that around 2015, LaFrance laundered money for various online fraud schemes being perpetrated by individuals located primarily outside of the United States. LaFrance allegedly accepted hundreds of thousands of dollars from victims he did not know, and with whom he had no business relationship, and wired the money to third parties whose true identities were concealed from the victims.
In 1990, LaFrance was convicted in federal court of structuring currency transactions, making false statements and conspiring to defraud the United States. In 2007, he was convicted a second time of wire fraud and making false statements.
The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 and restitution. The charge of money laundering provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $500,000 and restitution. 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 Stephen P. Heymann of Weinreb’s Economic Crimes Unit is prosecuting the case.
Massachusetts Man Charged with Child Pornography OffensesRead the Press Release
A Massachusetts man was charged today in a U.S. District Court in Springfield, Massachusetts, for the possession, receipt and distribution of digital images of child pornography.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Acting United States Attorney William D. Weinreb of the District of Massachusetts; Special Agent in Charge Harold H. Shaw of the FBI’s Boston Division; Chief Jody Kasper of the Northampton, Massachusetts, Police Department; Chief Robert Alberti of the Easthampton, Massachusetts, Police Department; Superintendent Colonel Richard D. McKeon of the Massachusetts State Police; and Chief John Camerota of the Westfield, Massachusetts, Police Department made the announcement today.
Bruce Singer, 70, of Southampton, Massachusetts, was charged in an indictment with five counts of distribution of child pornography, one count of receipt of child pornography and one count of possession of child.
According to the indictment, between April 30, 2013 and June 25, 2015, Singer engaged in several acts of distributing and receiving electronic child pornography files. The indictment further alleges that Singer possessed more than a dozen child pornography files.
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Assistant U.S. Attorney Alex J. Grant of the District of Massachusetts, Springfield Branch Office, and Trial Attorney Leslie Fisher of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) are investigating the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
South Carolina Staffing Company Owner Sentenced for Temporary Worker FraudRead the Press Release
BOSTON – The owner of a South Carolina temporary staffing company was sentenced yesterday in U.S. District Court in Boston in connection with a multi-year visa fraud conspiracy that placed unauthorized foreign workers at multiple Cape Cod businesses.
Mavadene Thomas, 42, of Myrtle Beach, S.C., was sentenced by U.S. District Court Chief Judge Patti B. Sarris to three years of probation, the first year to be served in home confinement, forfeiture of $37,000 and a fine of $4,000. In June 2016, Thomas pleaded guilty to one count of conspiracy to commit visa fraud and one count of encouraging and inducing illegal immigration for private financial gain.
“By securing H-2B visas for foreign workers through fraud, Thomas created a permanent labor pool of unauthorized immigrants, who took jobs that should have gone to American citizens or authorized immigrants,” said Acting U.S. Attorney William D. Weinreb.
“This joint investigation with our law enforcement partners uncovered a fraudulent scheme that manipulated the H2B visa process and took advantage of visa beneficiaries and U.S. businesses,” said David W. Hall, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security Service, Boston Field Office. “The Diplomatic Security Service is committed to protecting the integrity of the visa process, the security of the homeland, and protecting the American work force.”
Thomas owned and operated Zippi Help LLC – a labor staffing company located in Myrtle Beach, S.C. Zippi Help had staffing contracts with businesses – primarily in the service and hospitality industry – for which it provided temporary and seasonal workers. From 2011 through 2014, secured H-2B visas for numerous foreign workers by submitting fraudulent visa petitions on behalf of several Cape Cod area businesses. The petitioning businesses often times were unaware that had applied for H-2B visas on their behalf. As part of the fraud, even created fake companies solely to be able to petition for the foreign worker visas.
Among the false statements Thomas included in her H-2B filings were misrepresentations about the details of the petitioning business, the efforts made by the business to recruit American workers, the number of employment vacancies available, and the type of work to be completed. Thomas also created and submitted false tax returns and other business documentation in support of the H-2B petitions.
The H-2B visa program allows U.S. companies to hire foreign nationals to fill employee vacancies that the company is unable to fill with U.S. citizens or others legally authorized to work in the country. The visa program is not intended for permanent work, and is designed to help U.S. businesses that have temporary, seasonal, peak load, or intermittent needs. As part of the application process, petitioning businesses must demonstrate that (i) the need for the foreign worker’s services is only temporary, (ii) that there is not a sufficient number of U.S. citizen workers who are willing, able, and qualified to perform the temporary work, and (iii) that the employment of the foreign workers will not adversely affect the wages or working conditions of similarly situated U.S. citizen workers.
Through Thomas’s false filings, she represented to multiple federal agencies involved in the approval process that the foreign nationals were going to work temporarily at the Cape Cod area businesses. However, once the workers entered the U.S., they were sent to work for other businesses with which Thomas and Zippi Help had staffing contracts. After the H-2B workers’ authorized stay expired, Thomas frequently filed false documentation on their behalf to convert their immigration status to that of a visitor, which specifically forbade them from working. Thomas knew these workers were not allowed to work at her company, but nevertheless continued to employ them.
Acting U.S. Attorney Weinreb and DSS SAC Hall made the announcement. Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Jonathan Mellone, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigation, New York Regional Office; and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service assisted with the investigation. Assistance was also provided by U.S. Citizenship and Immigration Services, Fraud Detection and National Security Unit, Vermont Service Center. Assistant U.S. Attorney Jordi de Llano of Weinreb’s Economic Crimes Unit prosecuted the case.
Hanson Man Pleads Guilty to Child Sexual Exploitation ChargesRead the Press Release
BOSTON – A Hanson man pleaded guilty today in U.S. District Court in Boston in connection with sending sexually explicit messages to two pre-teen girls.
Mark L. Leach, 49, pleaded guilty to one count of coercion and enticement of a minor child. U.S. District Court Judge F. Dennis Saylor scheduled sentencing for May 25, 2017. Leach was arrested and charged in April 2016.
In 2016, law enforcement officers learned that Leach, using the Skype screen name “funtimehockey,” had sent sexually explicit messages via text, live video and audio to two pre-teen girls. One of the girls occasionally babysat for Leach’s daughter. The victims told law enforcement officers that Leach asked them to send him naked and sexually explicit pictures of themselves. The victims also stated that during these sessions, Leach also sent naked and sexually explicit pictures of himself to the victims.
Leach admitted during an interview with law enforcement that he had set up the Skype account to communicate with these minor victims and others, and frequently requested that they expose themselves to him during the conversations. Leach also admitted that when the minor victims babysat for his daughter, he would expose himself and masturbate in front of them.
The charging statute provides for a minimum mandatory sentence of 10 years and no greater than lifetime in prison, a mandatory minimum of 10 years and up to life 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 William D. Weinreb; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; Colonel Richard D. McKeon Superintendent of the Massachusetts State Police; Hanson Police Chief Michael Miksch; and Whitman Police Chief Scott D. Benton, made the announcement today. The Waltham Police Department also assisted with the investigation. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit prosecuted the case.
Former NFL Player and Former Bank Executive Sentenced for Ponzi Scheme and Money LaunderingRead the Press Release
BOSTON – A former New England Patriots player and a former bank vice president were sentenced today in U.S. District Court in Boston in connection with an investment scheme that took in over $35 million by making fraudulent loans to professional athletes.
Will D. Allen, 38, of Davie, Fla., and Susan Daub, 56, of Coral Spring, Fla., were each sentenced by U.S. District Court Judge William G. Young to six years in prison, three years of supervised release and ordered to pay restitution in the amount of approximately $16.8 million. Judge Young remanded both defendants to the custody of the United States Marshal Service.
“The defendants’ elaborate Ponzi scheme robbed many of the investors of a stable financial future,” said Acting United States Attorney William D. Weinreb. “The significant sentences the Court imposed today should remind investment professionals to handle their clients’ money with the transparency and integrity that the law requires.”
“Mr. Allen and Ms. Daub lied, cheated and swindled investors out of millions of dollars for their own personal enrichment,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “This behavior destroys the financial security of hard-working individuals in our community and the FBI will do everything in its power to bring to justice individuals who take advantage of unwitting victims.”
“The sentences imposed by the court today send a strong message – those who defraud investors to unjustly enrich themselves will pay a hefty price,” said Special Agent in Charge Joel P. Garland, IRS Criminal Investigation. “As a former professional football player, Mr. Allen’s conduct is especially egregious. He used his status as an NFL athlete to legitimize his dealings with investors. We are proud to bring our financial expertise to joint investigations of this magnitude, and help prevent future victims of such schemes.”
In November 2016, Allen and Daub each pleaded guilty to two counts of wire fraud, one count of conspiracy and one count of money laundering. In June 2015, Allen and Daub were arrested on criminal charges after being sued by the Securities and Exchange Commission in April 2015.
Between 2012 and April 2015, Allen and Daub defrauded investors out of millions of dollars by claiming that the funds would be used to back high-interest, short-term loans to professional athletes through Capital Financial Partners (CFP), Allen and Daub’s Massachusetts-based company. While CFP did make some loans to athletes, Allen and Daub also diverted millions of investor dollars to themselves and other business ventures. In total, Allen and Daub took in over $35 million in investments. To date, they have repaid less than $22 million.
As part of the fraud, Allen and Daub collected money from investors to fund fictitious loans, then used the money, in part, to pay themselves. Other times, Allen and Daub told some investors that the loans CFP made to professional athletes were larger than they actually were, allowing Allen and Daub to collect more money from investors than they were lending out to athletes. To keep investors from discovering their fraud, Allen and Daub used newly invested money to make payments to existing investors, which they falsely characterized as interest and principal payments from athlete borrowers.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. The U.S. Attorney’s Office received valuable assistance from the Securities and Exchange Commission, which previously charged Allen and Daub in a civil complaint. Assistant U.S. Attorneys Seth B. Kosto and Brian A. Pérez-Daple of Weinreb’s Economic Crimes Unit prosecuted the case.
Chelsea Store Owner Charged with Trafficking Counterfeit Apple Cell Phone ComponentsRead the Press Release
BOSTON –A Chelsea man was charged today in U.S. District Court in Boston with trafficking in counterfeit Apple, Inc. iPhone components at three retail locations in the Boston area.
Arif Ali Shah, 66, was charged with trafficking in counterfeit iPhone components that bore Apple trademarks – the Apple icon and the iPhone word mark – but were not genuine Apple products.
It is alleged that between approximately 2005 and February 2015, Shah sold counterfeit Apple merchandise at his three retail locations: Nadia’s in Dorchester, East Boston Wireless in East Boston and Todo Wireless in Chelsea. Shah also repaired genuine iPhones at his stores using counterfeit components. Shah purchased the counterfeit merchandise from sources both outside the United States and from a domestic supplier. Shah knew that the goods were counterfeit, but nonetheless sold and attempted to sell thousands of pieces of counterfeit merchandise.
The trafficking statute provides for a sentence of no greater than 10 years in prison, three 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 upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William Weinreb and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Amy Harman Burkart of Weinreb’s Cybercrime Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Boston Man Sentenced to Prison for Scheme to Defraud Brokerage FirmsRead the Press Release
BOSTON – A Boston man was sentenced today in U.S. District Court in Boston in connection with a three-year, multi-million-dollar fraud scheme.
Nathanial Ponn, 28, was sentenced by U.S. District Court Judge Allison D. Burroughs to 15 months in prison and ordered to pay restitution of $20,738, after pleading guilty in December 2016 to three counts of wire fraud.
From 2012 to April 2015, Ponn opened more than 400 brokerage accounts at nine investment firms throughout the United States, using false names, Social Security numbers, assets and income. These firms allowed customers to transfer funds from one financial institution into the customer’s brokerage account through an Automated Clearing House (ACH) transfer, by providing the account number and financial institution where the account was held and the amount to be transferred. Between February 2014 to April 2015, Ponn provided ACH transfer information to brokerage firms for accounts he opened on more than 350 occasions, totaling more than $8.5 million in attempted transfers. In each instance, the bank account Ponn provided did not have the amount of funds requested or, in some circumstances, did not even exist. Although the ACH transfers were rejected, the fraudulent transfers created the false appearance that the brokerage accounts had cash available to purchase securities.
Through this scheme, Ponn was able to purchase securities totaling more than $2.7 million in accounts at eight investment firms. When the firms discovered that the ACH transfers were rejected, they liquidated the securities in Ponn’s accounts. As part of the scheme, Ponn also attempted, unsuccessfully, to get the brokerage firms to send him checks totaling about $250,000, based on the same false ACH information.
The U.S. Attorney’s Office received valuable assistance from the Securities and Exchange Commission, which filed a civil action against Ponn in March 2016 arising out of the scheme to defraud investment firms.
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 Mark J. Balthazard of Weinreb’s Economic Crimes Unit prosecuted the case.
New Bedford Woman Sentenced to Prison for Operating Drug Stash HouseRead the Press Release
BOSTON – A New Bedford woman was sentenced yesterday in U.S. District Court in Boston for stashing drugs in her home for a drug trafficking ring that operated in Bristol County, Mass., and Providence, R.I.
Shirley Vargas, 45, was sentenced by U.S. District Court Judge Nathaniel Gorton to 18 months in prison and one year of supervised release. Shortly before sentencing, Vargas pleaded guilty to maintaining a place for drug purposes.
Vargas admitted that she stored large quantities of narcotics on behalf of Luis Lopez, a Tiverton, R.I.-based drug dealer. During a number of federal searches and arrests in June 2016, federal agents searched Vargas’ New Bedford residence and discovered approximately one kilogram of a fentanyl and acetylfentanyl mix hidden under her bed. In addition, in Vargas’ kitchen pantry, investigators found drug packaging materials, which included a drug press and baggies. Acetylfentanyl is a highly dangerous fentanyl analogue that is generally manufactured in China and imported into the United States.
In imposing the sentence, Judge Gorton acknowledged that although Vargas had no role in distributing the narcotics found in her home, she could be sure that her conduct “contributed” to the “pain and suffering” of drug addicts and their families.
In January 2017, Lopez was sentenced to 15 years in prison.
Acting United States Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; New Bedford Police Chief Joseph C. Cordeiro; and Fall River Police Chief Daniel S. Racine made the announcement. Assistant U.S. Attorney Eric S. Rosen of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.
MS-13 Member Pleads Guilty to Assaulting 18th Street Gang MembersRead the Press Release
BOSTON – A Chelsea man pleaded guilty today in U.S. District Court in Boston in connection with assaulting members of a rival gang.
Kevin Ayala, a/k/a “Gallito,” 23, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as a RICO conspiracy. Judge F. Dennis Saylor IV scheduled sentencing for May 25, 2017.
After a three-year, multi-agency investigation, Ayala was one of 61 individuals charged in a superseding indictment targeting the criminal activities of alleged leaders, members, and associates of MS-13 in Massachusetts. In documents previously filed with the Court, MS-13 was identified as a violent transnational criminal organization whose branches or “cliques” operate throughout the United States, including Massachusetts, as well as in Central America. MS-13 members are required to commit acts of violence to maintain membership and discipline within the group, such as attacking and murdering gang rivals and individuals believed to be cooperating with law enforcement.
Ayala was identified as a member of MS-13’s Enfermos Criminales Salvatrucha clique operating in Chelsea, Mass. Ayala admitted that in April 2014, he engaged in an aggravated assault upon two members of the rival 18th Street gang in Chelsea.
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; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police made the announcement. Assistance was provided by Thomas Turco, Commissioner of the Massachusetts Department of Corrections; Essex County Sheriff and Lynn Police Chief Kevin F. Coppinger; Suffolk County Sheriff Steven W. Tompkins; 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; Revere Police Chief Joseph Cafarelli; and Somerville Police Chief David Fallon.
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.
Former Mendon Ballroom Owner Sentenced for False Tax ReturnsRead the Press Release
BOSTON – The former owner of the Myriad Ballroom in Mendon, Mass., was sentenced yesterday in U.S. District Court in Worcester for tax fraud.
Jon “Eddie” Rouleau, 63, was sentenced by U.S. District Court Judge Timothy S. Hillman to one year of probation and ordered to pay a fine of $3,000. In October 2016, Rouleau pleaded guilty to one count of intentionally aiding in the preparation of a false tax return. Rouleau also paid $103,107 in restitution to the IRS and a civil fraud penalty of $59,494.
Rouleau and his father owned and operated the Myriad Ballroom for decades until he sold the business and property in 2014. The investigation was initiated in 2013 when Rouleau advertised the Myriad Ballroom for sale. Rouleau told the agents, who posed as potential buyers, that the annual gross receipts and profits of the ballroom were significantly greater than reported on the ballroom’s tax returns, including the gross receipts and profit reported in 2012.
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 announcement. Assistant U.S. Attorney Greg A. Friedholm of Weinreb’s Worcester Branch Office prosecuted the case.
Former College Patrol Officer Sentenced for Sending Sexually Explicit Images to MinorRead the Press Release
BOSTON – A former Massasoit Community College patrol officer, who was also a Somerset Police Department reserve officer, was sentenced today in U.S. District Court in Boston in connection with attempting to send sexually explicit images and videos of himself to an underage girl.
Cliff Oliveira, 28, of Somerset, was sentenced by U.S. District Court Judge Allison D. Burroughs to 14 months in prison and three years of supervised release, after pleading guilty in November 2016 to one count of attempted transfer of obscene material to a minor.
In November 2015, law enforcement officers discovered that an unknown adult male (later identified as Oliveira) was using the screen name “samuricop” on Kik Messenger to engage in sexually explicit chats and send sexually explicit images to a 13-year-old girl in South Carolina. Undercover officers subsequently engaged samuricop on Kik Messenger using the persona of an underage girl named “Gabbi.”
For approximately six weeks, undercover officers communicated with samuricop – informing him that Gabbi was a 14-year-old, middle school classmate of the 13-year-old minor victim. Samuricop asked Gabbi to call him “daddy” and went on to engage in sexually explicit conversations with her. On Jan. 13, 2016, samuricop used Kik Messenger to send several images and a video of himself masturbating to “Gabbi.”
During the course of the communications with the 13-year-old victim and with the undercover officers, samuricop informed them that he worked as a police officer. He also repeatedly sent images of a police cruiser and a firearm. Investigators subsequently used those images as well as IP login information provided by Kik to identify Oliveira as the user of the samuricop account. At the time, Oliveira was working as a patrol officer for the Massasoit Community College Police Department and reserve officer for the Somerset Police Department.
Acting United States Attorney William D. Weinreb; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Greenville County (South Carolina) Sheriff Steve Loftis made the announcement today. Assistance with the investigation was also provided by the Somerset, Brockton, and Massasoit Community College Police Departments. Assistant U.S. Attorney Jordi de Llano of Weinreb’s Criminal Division is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to 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/.
Boston Man Pleads Guilty to Identity Theft in Scheme to Defraud Retirement AccountsRead the Press Release
BOSTON – A Boston man pleaded guilty today in connection with his role in a scheme to steal personal information and bank account numbers to withdraw money from retirement accounts.
Kevin Marseille, 26, pleaded guilty to identity theft, access device fraud, and conspiracy to commit those offenses. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for May 31, 2017.
In 2014, Marseille approached Jasmine Banks, who, at the time, worked as a customer service employee at Mercer, Inc., in Norwood, Mass. Marseille used Banks to obtain personally identifiable information and bank account information for individuals whose retirement accounts were administered by Mercer, a New York-based company, which provides consulting and related services for employers, including administration of retirement benefit plans.
From approximately February 2014 to April 2014, Banks accessed customer account information from her computer and provided this information to Marseille via email. Marseille obtained the names, addresses, and bank account and routing numbers for approximately 270 Mercer account holders. In many cases, he also obtained account holders’ dates of birth and social security numbers. He further sought and obtained detailed account access information, including usernames, answers to password-reset questions, and detailed instructions about how to access and withdraw funds from four retirement accounts with substantial balances.
The retirement account information was used to load a prepaid card with nearly $20,000 in fraudulently obtained funds. Marseille then used the prepaid card to purchase electronic goods and other products at retailers, including Target and Best Buy. Intervention by Mercer and law enforcement prevented further account access and withdrawals. Mercer has cooperated fully with the government’s investigation.
In March 2016, Banks pleaded guilty to conspiracy to commit access device fraud and identity theft and is scheduled to be sentenced on March 27, 2017.
The charge of identity theft provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charges of access device fraud and conspiracy each provide for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000 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 and Stephen A. Marks, Special Agent in Charge of the United States Secret Service made the announcement today. Assistant U.S. Attorney David J. D’Addio of Weinreb’s Cybercrime Unit is prosecuting the case.
Waltham Man Pleads Guilty to Child PornographyRead the Press Release
BOSTON – A Waltham man pleaded guilty today in U.S. District Court in Boston to possession of child pornography.
Christopher J. Sullivan, 20, pleaded guilty to one count of possession of child pornography after being arrested and charged in May 2016. U.S. District Court Senior Judge Mark L. Wolf scheduled sentencing for May 23, 2017.
In January 2016, federal agents in Portland, Ore., received information that a minor boy had been engaging in online sexually explicit conversation with an adult man living in Waltham, Mass. Following an investigation, a federal search warrant was issued for a residence in Waltham in May 2016. During the execution of the search warrant, law enforcement officers recovered a number of devices, later determined to belong to Sullivan. These devices, which Sullivan later admitted to possessing, contained multiple images and videos depicting children engaging in sexually explicit conduct. A forensic analysis revealed that the majority of the children depicted in the pictures and videos were between the ages of 7 and 12 years old.
The charging statute provides for 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 upon the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The Waltham Police Department assisted with the investigation. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit prosecuted the case.
Former Bank Teller Sentenced for EmbezzlementRead the Press Release
Boston – A former bank teller at the former Lenox National Bank was sentenced today in U.S. District Court in Springfield in connection with embezzling more than $378,000 from the bank and concealing the theft with false bank records.
Melissa K. Scolforo, 48, of Lee, Mass., was sentenced by U.S. District Court Judge Mark G. Mastroianni to 10 months in prison, three years of supervised release and ordered to pay $378,000 in restitution. In May 2016, Scolforo pleaded guilty to one count of conspiracy to embezzle funds from a bank.
Scolforo, a teller at Lenox National Bank for 24 years, conspired with another bank teller, Bernadine Powers, to embezzle money from the teller drawers and make false entries in bank records to hide the thefts. Scolforo began stealing money in January 2009, and Powers joined the scheme about a year later. The two tellers stole a total of $378,000 which they used to pay personal expenses – including shopping, dining at restaurants, and paying household bills –before the embezzlement was brought to light during a bank audit in November 2013.
In December 2016, Powers was sentenced to 18 months in prison, three years of supervised release and ordered to pay restitution of $299,793.
Lenox National Bank has since been acquired by Adams Community Bank.
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 Karen L. Goodwin of Weinreb’s Springfield Branch Office prosecuted the case.
Boston Man Charged for West Bridgewater Bank RobberyRead the Press Release
BOSTON - A Boston man was charged yesterday in U.S. District Court in Boston in connection with robbing a branch of the Mansfield Bank in West Bridgewater on Nov. 22, 2016.
Stephen D. Williams, 54, was charged by criminal complaint with one count of bank robbery, and was detained following an initial appearance before U.S. District Court Chief Magistrate Judge Jennifer C. Boal. A probable cause and detention hearing is scheduled for Feb. 28, 2017.
According to court documents, on Nov. 22, 2016, an individual, later determined to be Williams, entered a branch of the Mansfield Bank in West Bridgewater. Brandishing a black semi-automatic firearm, Williams approached a teller and demanded money. The teller handed Williams cash, and Williams fled the area in a dark-colored Volkswagen. Bank surveillance cameras recorded images of Williams during the robbery.
On Nov. 23, 2016, law enforcement officers who were familiar with Williams, and the dark-colored Volkswagen, located and arrested Williams at an apartment complex in Brockton. Articles of clothing consistent with the clothing Williams had worn during the robbery were also recovered.
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 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; West Bridgewater Police Chief Victor R. Flaherty, Jr.; Brockton Police Chief John Crowley; and U.S. Marshal John Gibbons of the District of Massachusetts, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Springfield Man Sentenced for Distributing Crack CocaineRead the Press Release
BOSTON – A Springfield man was sentenced today in U.S. District Court in Springfield for possessing and distributing crack cocaine.
Larry Smith, Jr., 30, was sentenced by U.S. District Court Judge Mark G. Mastroianni to seven years in prison and three years of supervised release. In November 2016, Smith pleaded guilty to two counts of distributing and one count of possessing with intent to distribute cocaine in the form of crack cocaine.
On Feb. 18, 2015 and March 5, 2015, Smith sold crack cocaine to a cooperating witness. On April 3, 2015, he possessed an additional ten grams of crack cocaine with the intent to distribute it. Smith has an extensive, violent criminal history in Massachusetts state courts, including a 2010 conviction for carrying a firearm without a license and carrying a loaded firearm without a license; 2009 convictions for assault and battery with a dangerous weapon and assault and battery of a police officer; 2007 convictions for assault with a dangerous weapon, assault and battery of a police officer (four counts), and resisting arrest; and 2004 convictions for assault with a dangerous weapon (two counts) and possession with intent to distribute cocaine.
Acting U.S. 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 today. Assistant U.S. Attorney Katharine A. Wagner of Weinreb’s Springfield Office is prosecuting the case.
Former Owner of Boston Area Jewelry Chain Arrested in Multi-Million Dollar Fraud SchemeRead the Press Release
BOSTON – The former owner of a well-known Boston-area jewelry chain, Alpha Omega Jewelers, was arrested yesterday in Los Angeles after living abroad for almost 10 years following a scheme to defraud the company’s former lenders.
Raman Handa, 67, formerly of Lexington, Mass., was arrested on Tuesday, Feb 21, 2017, at Los Angeles International Airport as he returned to the United States from India where he had been living for almost 10 years. A 2011 indictment unsealed yesterday charges Handa with 12 counts of wire fraud. Handa is scheduled to appear in U.S. District Court in Los Angeles on Friday, Feb. 24, 2017. His first court date in the U.S. District Court in Boston, where charges were filed, has not yet been scheduled.
According to the indictment, Handa was the owner of Alpha Omega Jewelers, a fine watch and jewelry retailer in the Boston-area. From May 2007 to December 2007, Alpha Omega experienced severe financial troubles, and had difficulty keeping current with loans it had with several banks. As part of the scheme to defraud Alpha Omega’s lenders and in order to obtain additional loans, Handa allegedly fabricated inventory on reports that were submitted to the banks. These reports were used by the banks to calculate the credit limit for Alpha Omega, and included inventory such as luxury watches and high-end items from Indian jewelry vendors, that Alpha Omega never in fact possessed.
On Dec. 15, 2007, Handa and his family abruptly left the United States. After discovering Handa’s departure, Alpha Omega’s lender took control of the company and conducted a detailed review of Alpha Omega’s inventory. According to the indictment, the review revealed over $7 million dollars in missing or unaccounted for inventory.
The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years supervised release and a fine of $250,000 on each count. 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 Jordi de Llano of Weinreb’s Economic Crimes Unit is prosecuting the case.
South Dartmouth Man Pleads Guilty to Child Pornography OffensesRead the Press Release
BOSTON – A South Dartmouth man pleaded guilty today in U.S. District Court in Boston to child pornography offenses.
Jack L. Bean, Jr., 29, pleaded guilty to one count of receipt of child pornography and one count of possession of child pornography. Bean was charged in a criminal complaint and arrested in April 2016. U.S. District Court Judge Dennis Saylor IV scheduled sentencing for May 22, 2017.
In September 2015, a law enforcement investigation identified an internet-based bulletin board dedicated to the advertisement, distribution and production of child pornography with over 1,500 users who actively post new content and engage in online discussions involving the sexual exploitation of minors. Bean was identified as a user on the bulletin board. During a search executed by law enforcement, Bean admitted that he downloaded and saved child pornography from the internet, and that he had a sexual preference for girls approximately 14 years old. Agents identified 40 images and 29 videos of children engaged in sexually explicit conduct on Bean’s laptop and forensic analysis later revealed that the majority of the children depicted in the sexually explicit images and videos were between the ages of one and eight years old.
The charge of receipt 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. The charge of possession of child pornography provides for a sentence of 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 upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Matthew Etre, Special Agent in Charge of the Homeland Security Investigations in Boston; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Dartmouth Police Chief Robert W. Szala, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Weinreb’s Major Crimes Unit is prosecuting the case.
JetBlue Employee Arrested on Cocaine Distribution ChargesRead the Press Release
BOSTON – A Mattapan man was arrested last evening and charged in U.S. District Court in Boston today in connection with cocaine distribution.
Francisco Torres, 36, was charged in a criminal complaint with possessing cocaine with intent to distribute and distributing cocaine. According to the complaint affidavit, authorities were concerned about the fact that Torres had ready access to secure locations at Logan International Airport, access to aircraft and loading ramps at the airport through his employment at JetBlue Airways. Last evening, Torres was arrested in the South End of Boston following a sting operation, where he was caught allegedly exchanging 850 grams of cocaine for more than $33,000 in cash which was in a paper bag. Immediately after the exchange, officers approached Torres who threw the bag of money over a fence. Officers arrested Torres and recovered the money. Torres was detained following an initial appearance before U.S. District Court Magistrate Judge Page Kelley.
The charging statute provides 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. 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; and William Ferrara, Director of Field Operations of U.S. Customs and Border Protection, made the announcement today. The New Hampshire State Police also assisted with the investigation. Assistant U.S. Attorneys John T. McNeil and Christine Wichers of Weinreb’s Criminal Division are prosecuting the case.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Everett Man Charged with Scheme to Defraud the Massachusetts Department of Unemployment AssistanceRead the Press Release
BOSTON – An Everett man was charged today in U.S. District Court in Boston in connection with a scheme to defraud the Department of Unemployment Assistance of more than $1.8 million.
Edison Delarosa, 52, was arrested and charged by complaint with one count of mail fraud and one count of wire fraud. He was released on conditions following an appearance before U.S. District Court Magistrate Judge Page M. Kelley.
From approximately January 5 through November 24, 2016, Delarosa engaged in a scheme to defraud the Commonwealth of Massachusetts by exploiting the Department of Unemployment Assistance’s (DUA) online system, which allows claimants to manage their unemployment insurance accounts over the internet. On multiple occasions, Delarosa, who did not actually owe DUA any money, submitted bogus “repayments” online, which triggered the release of “refund” checks payable to him in varying amounts. During the course of the scheme, Delarosa submitted a total of 136 fraudulent “repayments,” amounting to $1,813,170, for which DUA issued him 15 paper “refund” checks, totaling $1,251,283. DUA uncovered the scheme after six of those checks, totaling $27,227, were mailed to Delarosa and deposited into his account.
The charges of wire fraud and mail fraud provide for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000. 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 Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations, New York Region; Mattew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. The Commonwealth of Massachusetts’ Department of Unemployment Assistance cooperated with the investigation. Assistant United States Attorney Anne Paruti of Weinreb’s Major Crimes Unit is prosecuting the case.
Israeli National Indicted and Extradited to Boston on Cocaine Conspiracy and International Money Laundering ChargesRead the Press Release
BOSTON – An Israeli national and a co-conspirator were indicted in U.S. District Court in Boston in connection with a conspiracy to transfer $2.5 million of cocaine from Colombia to Israel via Boston as well as money laundering.
Jalal Altarabeen, a/k/a Glal El Tarbin, a/k/a Jalal Salamah, a/k/a Abu Rasheed, 33, and a co-conspirator were indicted on one count of conspiring to possess with intent to distribute and to distribute more than five kilograms of cocaine and six counts of international money laundering. Altarabeen, who was extradited from Poland and arrived at Boston’s Logan Airport this afternoon, was detained following an initial appearance before U.S. District Court Magistrate Judge M. Page Kelley. Altarabeen and his co-conspirator were previously charged in a federal criminal complaint which was partially unsealed today.
“This case exemplifies the importance of disrupting large-scale, international drug trafficking before the drugs can be distributed. I cannot overstate how important it is that we interdict these large drug shipments, where and when we can,” said Acting United States Attorney William D. Weinreb. “Working with some of the finest undercover agents in the country, the U.S. Attorney’s Office will continue to attack the growing menace of transnational drug organizations.”
“DEA is addressing the threat, both internationally and domestically. We prioritize our resources by identifying and targeting the world’s biggest and most powerful drug traffickers and their organizations,” said Special Agent in Charge of the DEA Michael J. Ferguson. “We are relentlessly pursuing these criminal groups responsible for international money laundering and violations of the Controlled Substance Act and their facilitators at every level and we value and appreciate the work of our Polish counterparts. This investigation demonstrates the fortitude and continued commitment of our federal, state and international law enforcement partners and our strong partnership with the U.S. Attorney’s Office to seek and bring to justice anyone who engages in these crimes.”
“IRS Criminal Investigation is committed to unraveling complex international financial transactions and money laundering schemes. IRS Criminal Investigation is also committed to following the money, wherever it leads,” stated Special Agent in Charge Joel P. Garland of the Internal Revenue Service Criminal Investigation’s Boston Field Office.
According to court documents, from October 2015 to April 20, 2016, Altarabeen and his co-conspirator conspired in Boston, Colombia, Poland, and elsewhere to distribute 50 kilograms of cocaine and launder money internationally. Altarabeen and his co-conspirator allegedly negotiated to buy 50 kilograms of cocaine from an undercover officer posing as a drug trafficker. Altarabeen and his co-conspirator agreed to pay $50,000 per kilogram for a total purchase price of $2.5 million to have the cocaine delivered in Israel. The undercover officer told the defendants that the cocaine would be transported from Colombia to Boston and from Boston to Beersheba, Israel, where the defendants expected to take delivery of the cocaine. Altarabeen agreed to make an advance payment of nearly $1 million to cover transportation costs and sent wire transfers from Turkey totaling $999,972 to an undercover bank account in Boston. The undercover officer and Altarabeen agreed that Altarabeen would pay the balance of $1.5 million after the receipt and sale of the 50 kilograms of cocaine.
The undercover officer’s relationship with the co-conspirator began in 2008 and included a meeting in Nicosia, Cyprus. In October 2015, the co-conspirator told the undercover officer about an associate who was interested in purchasing large quantities of cocaine. Eventually, the co-conspirator facilitated an introduction of the undercover officer to Altarabeen.
Over several months, the undercover officer and the defendants spoke to one another by telephone, WhatsApp, video Skype call and in person. The defendants contacted the undercover officer using telephone numbers from Cyprus, Jordan, Israel, Palestine and Colombia. The defendants also discussed the drug transaction with the undercover officer while in Bogota, Colombia, on October 14, 2015 and February 9, 2016.
Altarabeen allegedly arranged six wire transfer deposits in February 2016 into a Boston-based undercover bank account totaling $999,972. The co-conspirator sent the undercover officer a copy of the deposit receipt for each wire transfer via WhatsApp. All of the wire transfers originated from a Turkish bank.
The drug trafficking statute provides for a minimum mandatory sentence of 10 years and up to life in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of up to $10 million on the drug counts. The money laundering statute provides for up to 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of up to $500,000 or twice the value of the property involved in the offense. 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 U.S. Attorney Weinreb, DEA SAC Ferguson and IRS-CI SAC Garland made the announcement today. Assistant U.S. Attorney Linda M. Ricci of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
The details 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.