District of Massachusetts

BOSTON – A Cape Cod woman pleaded guilty today in federal court in Boston in connection with a drug and money laundering ring.   

Diane Johnson, 50, of Mashpee, pleaded guilty before U.S. District Court Judge Indira Talwani to one count of money laundering conspiracy and is scheduled to be sentenced on August 23, 2017.

From 2010 to 2015, Johnson and her son David Landry conspired to launder drug proceeds in order to disguise the nature of the funds and continue their drug trafficking activity.  From May 2014 to January 2015, two of Johnson’s co-defendants, Landry and Justin Groom, conspired to manufacture and distribute marijuana and possessed marijuana with the intent to distribute it. Landry, a convicted felon, was also found in possession of a .40 caliber semi-automatic pistol. He continued participating in the criminal offense while in jail on state charges.  Groom was also charged with eight counts of money laundering in connection with using the proceeds of the illegal activities to pay the rent of the home where he grew marijuana, at Landry’s direction.  A third co-defendant, Evan Lopes, aided by Landry, possessed methylone.

David Landry and Justin Groom were sentenced in March 2017 to 78 months in prison and two years of probation, respectively. Evan Lopes is scheduled to plead guilty on May 23, 2017.

The charge of money laundering conspiracy provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000.  Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors. 

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

BOSTON – A Worcester man pleaded guilty today in federal court in Worcester to attempting to solicit a minor, who was actually an undercover federal agent, to engage in illicit sexual conduct.

Timothy Biddy, 38, pleaded guilty to one count of attempted interstate travel to engage in illicit sexual conduct and attempted transfer of obscene images to a minor.  U.S. District Court Judge Timothy S. Hillman scheduled sentencing for September 11, 2017.

From October 2016 to November 2016, an undercover federal agent posing as a 13-year-old girl began chatting with Biddy through an online text messaging service. During the communications, Biddy proposed to meet the minor to engage in illicit sexual conduct in Sioux Falls, S.D., and graphically described sexual acts he wished to perform with her. He also sent her a video of himself masturbating. Biddy was arrested in November 2016.

The charge of attempted interstate travel to engage in illicit sexual conduct 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; the charge of attempted transfer of obscene images to a minor provides for a sentence of 10 years in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based on the United States Sentencing Guidelines and other statutory factors.

Acting United States Attorney William D. Weinreb and Mathew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Mark J. Grady of Weinreb’s Worcester Branch Office is prosecuting the case.

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

           

BOSTON – A Medford man, and co-defendant of former NHL player Kevin Stevens, was sentenced in federal court in Boston today in connection with an oxycodone conspiracy.

 

Christopher Alonardo, 36, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to 18 months in prison, three years of supervised release and a fine of $10,000. In December 2016, Alonardo pleaded guilty to conspiracy to possess with intent to distribute and to distribute oxycodone and possession with intent to distribute oxycodone. On May 4, 2017, co-defendant and former NHL player Kevin Stevens was sentenced to three years of probation and ordered to pay a fine of $10,000.

 

From approximately August 2015 through March 2016, Stevens and Alonardo conspired to distribute oxycodone in southeastern Massachusetts and the Boston area. Stevens supplied wholesale quantities of oxycodone to Alonardo who resold the drugs. On Nov. 5, 2015, Stevens was stopped by police and found in possession of 175 30mg pills of oxycodone that were intended for redistribution by Alonardo.

 

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 Investigation, the Massachusetts Department of Correction, and the Boston, Medford and Quincy Police Departments provided assistance with the investigation. Assistant U.S. Attorney Timothy E. Moran of Weinreb’s Organized Crime and Gang Unit prosecuted the case.

BOSTON – A former Whitman, Mass., police sergeant pleaded guilty today in connection with misappropriating funds from the accounts of disabled veterans while he was a fiduciary appointed by the U.S. Department of Veterans Affairs, and for preparing false income tax returns for clients of his tax preparation business.

 

Glenn P. Pearson, 60, pleaded guilty today to wire fraud, misappropriation by a federal fiduciary, preparation of fraudulent tax returns and obstruction of the Internal Revenue Service. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for Sept. 19, 2017.

 

“Mr. Pearson abused his position as a fiduciary and took advantage of vulnerable members of our society,” said Acting U.S. Attorney Weinreb. “Our veterans deserve the best care, and we will hold accountable those who seek to profit at their expense.”

 

“Glenn Pearson took advantage of disabled military veterans who could not manage their own financial affairs, by diverting hundreds of thousands of dollars in VA payments to his personal benefit,” said Acting Deputy Assistant Attorney General Goldberg. “He then used his tax preparation business to generate more than $1.5 million in bogus refunds and obstructed IRS audits looking into the fraudulent returns he prepared. Today Pearson is held fully accountable for his abuse of trust and fraudulent conduct.”

 

“Mr. Pearson now finds himself on the opposite end of the very laws he was once sworn to uphold,” said Special Agent in Charge Harold H. Shaw of the FBI’s Boston Field Division. “He took advantage of his position as a fiduciary to steal thousands of dollars from disabled veterans. The FBI will do everything we can to protect citizens against fraud and stop those who steal from them.”

 

“The American tax system is designed to provide vital government services to our citizens, especially disabled veterans, who have paid the highest price for our freedom,” said Acting Special Agent in Charge Kristina O’Connell of the IRS Criminal Investigation (CI). “Mr. Pearson took advantage of both, motivated by greed and his desired lifestyle. The IRS will use all lawful means to identify and prosecute those, like Pearson, who prepare false tax returns.”

 

“Pearson deliberately targeted our most vulnerable veterans – those who were unable to handle their own financial affairs,” said Donna L. Neves, Special Agent in Charge of the Department of Veterans Affairs, Office of Inspector General, Northeast Field Office. “Fiduciary fraud, especially in this case of multiple victims, is considered a high priority and aggressively investigated by the VA Office of Inspector General because those veterans deserve protection, not deceit.”

 

From 2007 to 2012, Pearson was a U.S. Department of Veterans Affairs-appointed fiduciary for eight disabled veterans. Pearson took advantage of that position by misappropriating and embezzling VA-issued benefit money out of the accounts of several veterans for whom he served.

 

Beginning in 2012, Pearson operated a tax preparation business called FTS Tax Services, through which he prepared false tax returns for clients for a fee. From 2012 through 2015, Pearson prepared numerous tax returns that included false credits and fictitious deductions in an effort to get his clients larger refunds than they were entitled to receive. When Pearson’s clients were audited by the IRS, Pearson took steps to obstruct the audits by making false statements to the IRS and preparing false documents for his clients to submit to the IRS during the audits.

 

The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000, or twice the gain or loss to the victims; the charge of misappropriation of funds by a fiduciary 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 gain or loss to the victims; preparing false tax returns provides for a sentence of three years in prison, one year of supervised release and a fine of $250,000; attempting to interfere with the administration of internal revenue laws provides for a sentence of no greater than three years in prison, one year of supervised release and a fine of $250,000. According to the terms of the plea agreement, Pearson will pay restitution to the victims, the VA and the IRS. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting U.S. Attorney Weinreb, Acting Assistant Attorney General Goldberg, FBI SAC Shaw, IRS-CI Acting SAC O’Connell and VA-OIG SAC Neves made the announcement today. Assistant U.S. Attorney Vassili Thomadakis, of Weinreb’s Criminal Division, and Karen Kelly, Assistant Chief of the Justice Department’s Tax Division, are prosecuting the case.

A former Whitman, Massachusetts police sergeant pleaded guilty today to wire fraud, preparing false income tax returns for clients of his tax preparation business, obstructing the internal revenue laws and misappropriating funds from the accounts of disabled veterans while he was a fiduciary appointed by the U.S. Department of Veterans ffairs (VA), announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney William D. Weinreb for the District of Massachusetts.

 

According to documents filed with the Court, from 2007 to 2012, Glenn P. Pearson, 61, was appointed a VA fiduciary for eight disabled veterans of the U.S. armed forces. A veteran, who has been awarded VA benefits but is unable to manage his or her funds due to injury, disease, mental incompetence or infirmities of advanced age, can have another individual, referred to as a fiduciary, appointed by the VA to receive funds on the veteran’s behalf and to manage those funds for the benefit of the veteran. Pearson used his position as a fiduciary to misappropriate and embezzle more than $250,000 in VA-issued benefit money from the accounts of several veterans.

 

Moreover, beginning in 2012, Pearson operated FTS Tax Services, a tax preparation business through which he prepared false tax returns for clients for a fee. From 2012 through 2015, Pearson prepared numerous tax returns that included false credits and fictitious deductions in an effort to get his clients bigger refunds than they were entitled to receive. When Pearson’s clients were audited by the Internal Revenue Service (IRS), Pearson took steps to obstruct the IRS—including making false statements to the IRS and preparing false documents for his clients to submit to the IRS during the audits. Pearson admitted to causing a tax loss of more than $1.5 million.

 

“Glenn Pearson took advantage of disabled military veterans who could not manage their own financial affairs, by diverting hundreds of thousands of dollars in VA payments to his personal benefit,” said Acting Deputy Assistant Attorney General Goldberg. “He then used his tax preparation business to generate more than $1.5 million in bogus refunds and obstructed IRS audits looking into the fraudulent returns he prepared. Today, Pearson is held fully accountable for his abuse of trust and fraudulent conduct.”

 

“Mr. Pearson abused his position as a fiduciary and took advantage of vulnerable members of our society,” said Acting U.S. Attorney Weinreb. “Our veterans deserve the best care, and we will hold accountable those who seek to profit at their expense.”

 

“Mr. Pearson now finds himself on the opposite end of the very laws he was once sworn to uphold,” said Special Agent in Charge Harold H. Shaw of the FBI’s Boston Field Division. “He took advantage of his position as a fiduciary to steal hundreds of thousands of dollars from disabled veterans. The FBI will do everything we can to protect citizens against fraud, and stop those who steal from them.”

 

“The American tax system is designed to provide vital government services to our citizens, especially disabled veterans, who have paid the highest price for our freedom,” said Acting Special Agent in Charge Kristina O’Connell of the IRS Criminal Investigation (CI). “Mr. Pearson took advantage of both, motivated by greed and his desired lifestyle. The IRS will use all lawful means to identify and prosecute those, like Pearson, who prepare false tax returns.”

 

“Pearson deliberately targeted our most vulnerable veterans – those who were unable to handle their own financial affairs,” said Special Agent in Charge Donna L. Neves of the VA Office of Inspector General (OIG), Northeast Field Office. “Fiduciary fraud, especially in this case of multiple victims, is considered a high priority and aggressively investigated by the VA Office of Inspector General because those veterans deserve protection, not deceit.”

 

Sentencing is scheduled for Sept. 19 before Judge Saris. Pearson faces a statutory maximum sentence of 20 years in prison for wire fraud, five years in prison for misappropriation of funds by a fiduciary, three years in prison for preparing false tax returns, and three years in prison for attempting to interfere with the administration of internal revenue laws. As part of the terms of the plea agreement, Pearson will make restitution to the veterans, the VA and the IRS. Pearson also faces a period of supervised release and monetary penalties. 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 Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Weinreb thanked special agents of IRS–CI, FBI and VA-OIG, who conducted the investigation, and Assistant U.S. Attorney Vassili Thomadakis and Assistant Chief Karen Kelly 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.

BOSTON – A Dominican national has pleaded guilty in federal court to using a stolen Social Security number in order to obtain a Massachusetts driver’s license. 

Julio Cesar Baez-Mejia, 37, a Dominican national formerly residing in Lawrence, pleaded guilty today to one count of misuse of a Social Security number. U.S. District Court Judge George A. O’Toole scheduled sentencing for Sept. 12, 2017. Mejia-Baez is currently serving an 18-month sentence in the Lawrence Correctional Alternative Center for assault with a deadly weapon, breaking and entering and malicious destruction of property.

On Nov. 19, 2012, Baez-Mejia entered a Massachusetts branch of the Registry of Motor Vehicles and applied for a Massachusetts Class D Driver’s License under the name of an American citizen from Puerto Rico.  On the application, the defendant listed the name, date of birth, and Social Security number of the American citizen as his own.  Baez-Mejia then signed the license application and was issued a driver’s license under the stolen identity. 

The charge of misuse of a Social Security number provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Baez-Mejia will be subject to deportation upon the completion of his sentence. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today.  Assistant U.S. Attorney Nicholas Soivilien of Weinreb’s Major Crimes Unit is prosecuting the case.

 

BOSTON – A Charlton woman pleaded guilty yesterday in federal court in Worcester to conspiracy to distribute oxycodone.

Jennifer Toledo, 45, pleaded guilty before U.S. District Court Judge Timothy S. Hillman, who scheduled sentencing for Sept. 12, 2017.

From August 2015 until April 2016, Toledo conspired with co-defendants John Tautenhan III and Amina Young to distribute oxycodone pills in and around Worcester County.  On April 17, 2016, federal agents followed Toledo as she drove from Massachusetts to a restaurant in Yonkers, N.Y., to acquire oxycodone from Young.  Five days later, on April 22, 2017, Toledo again drove to Yonkers to purchase additional oxycodone from Young. Investigators stopped the vehicle that Toledo was driving and seized over 500 oxycodone pills from Young and two other passengers.

Tautenhan pleaded guilty in April 2016 and is scheduled to be sentenced on July 12, 2017.  Amina Young pleaded not guilty and is awaiting trial.  

The charging statute provides for a sentence of 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 $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney William D. Weinreb and Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement. Assistant U.S. Attorney Greg A. Friedholm of Weinreb’s Worcester Branch Office is prosecuting the case. 

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

BOSTON – A Rockland couple has been arrested and charged today with engaging in a scheme to embezzle more than $2.7 million from Bank of America using fraudulent donations to non-profit organizations. A third person, who was previously charged in a criminal complaint, was also charged in the indictment unsealed today.

 

Palestine Ace, aka Pam Ace, 45, a former Senior Vice President of Bank of America’s Global Wealth & Investment Management Division; her husband, Jonathan R. Ace, 46; and Brianna Alexis Forde, 35, of Boston, were each indicted on one count of conspiracy to commit bank fraud and wire fraud. In addition, Palestine Ace was also indicted on 12 counts of bank fraud and four counts of wire fraud; Jonathan Ace was also charged with two counts of wire fraud and one engaging in an unlawful monetary transaction; and Forde was also indicted on two counts of wire fraud.

 

According to the indictment, from approximately October 2010 to April 2015, the defendants engaged in an embezzlement and kickback scheme to defraud Bank of America of approximately $2.7 million using fraudulent donations to non-profit organizations. As part of the scheme, Palestine Ace used her position as a Senior Vice President at Bank of America to misappropriate funds from a marketing budget and transfer the money to non-profit organizations. Specifically, Palestine Act allegedly authorized 75 transactions, each under $50,000, to non-profit organizations in Boston and Atlanta. Then, the defendants, either directly or indirectly, informed the non-profit organizations that a substantial portion of the donated funds must be returned in order to ensure that Bank of America would continue to fund the organization. The non-profit organizations either wrote a check to Jonathan Ace or Forde, or they returned funds to a Bank of America account, to which the defendants had access. On various occasions, Jonathan Ace pressured the recipients of the donated funds to return a higher percentage of the funds to him, by using intimidation and threats of public humiliation.

 

The indictment also alleges that Palestine and Jonathan Ace used a portion of the funds they embezzled from Bank of America to support their lifestyle and pay for personal expenses, including lavish birthday parties and the purchase of a $17,000 Kawasaki motorcycle.

 

The charges of wire fraud and bank fraud each provide for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. The charge of unlawful monetary transaction provides for a sentence of no greater than 10 years in prison, two years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

 

Acting United States Attorney William B. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Boston Police Commissioner William B. Evans; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. Assistant U.S. Attorney Neil J. Gallagher of Weinreb’s Economic Crimes Unit is prosecuting the case.

 

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

BOSTON –The nationwide leader of MS-13’s Molinos clique was charged in a fifth superseding indictment in connection with authorizing two of the six murders identified in prior superseding indictments. This indictment is part of an ongoing investigation into the criminal activities of leaders, members and associates of MS-13.

 

Oscar Duran, a/k/a Demente, 25, an El Salvadorian national residing in East Boston, allegedly authorized the murders of Wilson Martinez, 15, stabbed to death on Constitution Beach in East Boston on Sept. 7, 2015 and Christofer Perez de la Cruz 16, who was shot and stabbed to death on Jan. 10, 2016, on Falcon Street in East Boston. Duran is charged in a fifth superseding indictment with conspiracy to conduct enterprise affairs through a pattern of racketeering activity, commonly referred to as RICO conspiracy, which specifically includes both murders. Duran was previously charged in prior superseding indictments with RICO conspiracy. The new indictment alleges that Duran was the leader of the Molinos Loco Salvatrucha (MLS) clique of MS-13 for the entire United States, as well as the Boston-area clique of MLS, and in those positions authorized (i.e. “greenlighted”) the murders of Wilson Martinez and Christofer Perez de la Cruz.

 

Prior superseding indictments, and the new indictment, allege that the following members of MS-13 were also responsible for the murder of Wilson Martinez: Carlos Melara, a/k/a Chuchito, a/k/a Criminal; Henry Josue Parada Martinez, a/k/a Street Danger; Edwin Gonzalez, a/k/a Sangriento; and a juvenile known to the Grand Jury. Prior superseding indictments, and the new indictment, allege that the following members of MS-13 were also responsible for the murder of Christofer Perez de la Cruz: Edwin Gonzalez, a/k/a Sangriento; Edwin Diaz, a/k/a Demente; Rigoberto Mejia, a/k/a Ninja; and Jairo Perez, a/k/a Seco.

 

After a three-year investigation, Duran was one of 61 defendants named in prior superseding indictments targeting the criminal activities of alleged leaders, members, and associates of MS-13 in Massachusetts. According to court documents, MS-13 is a violent transnational criminal organization whose branches or “cliques” operate throughout the United States, including Massachusetts. MS-13 members are required to commit acts of violence against rival gang members to gain promotions and to maintain membership and discipline within the group. Specifically, MS-13 members are required to attack and murder rival gang members whenever possible. The fifth superseding indictment alleges that, from approximately 2014 to 2016, MS-13 cliques in Massachusetts were responsible for, among other things, six murders and approximately twenty attempted murders, as well as robberies and drug trafficking.

 

The charge of RICO conspiracy provides a maximum sentence of 20 years in prison or life, if the violation is based on racketeering activity for which the maximum penalty includes life imprisonment under state law (such as murder); three years of supervised release; and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

 

Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Commissioner Thomas Truco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief Joseph Cafarelli; and Somerville Police Chief David Fallon made the announcement.

 

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

 

BOSTON – A Brazilian man was sentenced today in federal court in Boston for illegally reentering the United States after being deported.  He was previously deported four times between 2003 and 2013. 

Waldier Desouza-Gomes, 35, a Brazilian national residing in Newton, was sentenced by U.S. District Court Judge Leo T. Sorokin to 16 months in prison, followed by one year of supervised release. Desouza-Gomes will be subject to deportation upon completion of his sentence. On Dec. 12, 2016, Desouza-Gomes pleaded guilty to one count of illegal re-entry of a deported alien.

Between 2003 and 2013, Desouza-Gomes was deported from the United States on four occasions and sometime after each deportation, Desouza-Gomes illegally re-entered the United States.  Desouza-Gomes was convicted in federal courts of illegal re-entry of a deported alien in 2010 and 2012.  After his fourth removal in March 2013, Desouza-Gomes again illegally re-entered the United States

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 Suzanne Sullivan Jacobus of Weinreb’s Major Crimes Unit prosecuted the case.

BOSTON – A Maine man was sentenced today in federal court in Boston in connection with enticing minors to engage in illicit sexual conduct.

 

Dillan Letellier, 32, of Saco, Maine, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to 14 years in prison, five years of supervised release, and ordered to pay restitution of $2,400 and forefeiture. In December 2016, Letellier pleaded guilty to two counts of coercion and enticement of a minor, one count of attempted coercion and enticement of a minor, three counts of travel with intent to engage in illicit sexual conduct and one count of possession of child pornography.

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Between May and October 2013, Letellier pretended to be a 17-year-old when he separately met two 14-year-old victims over the internet, coercing and enticing each victim to meet with him. On separate occasions, Letellier traveled from Maine to each of the victims’ Massachusetts towns, met each victim, and brought the victims to locations in Massachusetts where they engaged in sexual intercourse. Following an investigation by law enforcement officers, Letellier was charged by criminal complaint and arrested on Oct. 3, 2013. A forensic exam of the electronic devices seized from Letellier’s residence revealed thousands of images and videos of child pornography.

 

Acting United States Attorney William D. Weinreb and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. The Saco (Maine) Police Department and municipal police departments where the victims reside assisted with the investigation. Assistant U.S. Attorneys Suzanne Sullivan Jacobus and Anne Paruti of Weinreb's Major Crimes Unit prosecuted the case.

 

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

 

BOSTON – A former Worcester man who was residing in New York pleaded guilty today in federal court in Worcester for failing to register as a sex offender.

George Moriarty, 55, pleaded guilty before U.S. District Court Judge Timothy S. Hillman, who scheduled sentencing for August 3, 2017.

In October 1994, Moriarty was convicted of indecent assault and battery on a child under the age of 14. The Massachusetts Sex Offender Registry Board classified Moriarty as a level 2 offender. Sometime after April 2013, Moriarty moved to New York without notifying authorities of his residency change, as required by law. In November 2016, he was indicted and subsequently arrested in New York and returned to Massachusetts.

The charging statute provides for a sentence of no greater than 10 years in prison, a minimum of five years up to a lifetime of supervised release, and a $250,000 fine. Sentences are imposed by a federal district court judge based on the United States Sentencing Guidelines and other statutory factors.

Acting United States Attorney William D. Weinreb and John Gibbons, United States Marshal for the District of Massachusetts, made the announcement today.  Assistant U.S. Attorney Suzanne Sullivan Jacobus of Weinreb’s Major Crimes Unit is prosecuting the case.

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

 

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BOSTON – Two men were sentenced yesterday in federal court in Boston in connection with a fraudulent scheme to obtain and re-sell more than $330,000 in new cell phones.

Jimmy Phan, 30, of Boston, was sentenced yesterday by U.S. District Court Senior Judge Mark L. Wolf to 18 months in prison, three years of supervised release, and ordered to pay approximately $275,000 in restitution.  Judge Wolf also sentenced Lee Tran, 30, of Waltham, to 12 months of probation and ordered him to pay approximately $3,200 in restitution.  Phan and Tran both pleaded guilty to wire fraud conspiracy in February 2016.

Phan and Tran were part of a six-person, multi-state scheme to defraud T-Mobile. Co-defendant Kevin Johnson was sentenced in April 2017 to 70 months in prison. In May 2016, co-defendants David Hul and Curtis Peebles were sentenced to 21 and 18 months in prison, respectively. The wire fraud conspiracy charge against the sixth co-defendant, Khoa Doan, was dismissed when Judge Wolf sentenced Doan to prison on a related charge.

 

Phan, Hul, Peebles, Johnson, and co-conspirators gained access to T-Mobile customer records, including customer names, phone numbers, and information regarding those customers’ eligibility for free phone upgrades.

 

From at least January 2014 through October 17, 2014, Phan, Hul, Johnson, Peebles, and other co-conspirators called T-Mobile customer service centers and, impersonating T-Mobile employees, used dealer codes that enabled them to add any name as an authorized user on T-Mobile accounts. They then recruited “runners,” including Tran, to go into T-Mobile stores and impersonate the customers. Phan, Hul, Peebles and Johnson sometimes directed the runners to use false names that closely matched their real names to reduce the likelihood of T-Mobile detecting the fraud.

 

Runners then went to T-Mobile stores in Massachusetts, Nevada, New Hampshire, New York, Pennsylvania, Rhode Island, New Jersey, Florida, and elsewhere, presented identification in the real or assumed names, and acquired one or more new cell phones on accounts that were eligible for upgrades. Runners then returned the new phones to Phan, Hul, Peebles, and others, who paid them a portion of each phone’s value. Although T-Mobile regularly alerted its customers to changes to their accounts, the affected customers frequently did not learn of the fraudulent modifications in time to prevent the distribution of the phones. Phan, Hul, and others re-sold the cell phones to other co-conspirators for distribution in the United States and abroad. In total, the scheme netted at least $330,000 worth of new cell phones.

 

Acting United States Attorney William D. Weinreb; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service’s Boston Field Office, made the announcement. Assistant U.S. Attorney Seth B. Kosto of Weinreb’s Cybercrime Unit prosecuted the case.

BOSTON – A New Hampshire man was sentenced yesterday in federal court in Boston for trafficking in more than $350,000 in stolen retail gift cards.  

Khoa Doan, 34, of Manchester, was sentenced yesterday by U.S. District Court Senior Judge Mark L. Wolf to 12 months and one day in prison, three years of supervised release, and ordered to pay approximately $180,000 in restitution.  Doan pleaded guilty to access device fraud conspiracy in December 2016.

Between May 2013 and October 2014, Doan was part of an international scheme to defraud online retailers, including Walmart, Best Buy, Home Depot, and Apple, among others. 

Doan’s Vietnam-based co-conspirators used stolen account credentials to gain unauthorized access to customers’ online accounts at the retailers’ websites. Once in the accounts, the co-conspirators either stole the customers’ online gift cards or used their stored payment card data to purchase gift cards and consumer goods.  Doan recruited runners in the United States to take those e-gift cards and “clear” them by purchasing consumer goods that Doan would re-sell.  The scheme made approximately $368,000 in fraudulent orders and netted approximately $180,000 in proceeds.

Acting United States Attorney William D. Weinreb; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service’s Boston Field Office, made the announcement. Assistant U.S. Attorney Seth B. Kosto of Weinreb’s Cybercrime Unit prosecuted the case.

BOSTON – A Dominican national was sentenced yesterday in federal court in Boston for illegally reentering the United States after deportation. 

Luis Moreno-Tejeda, 39, a Dominican national residing in Boston, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 24 months in prison, to be served consecutively with a sentence imposed by the Suffolk Superior Court in September 2016, and three years of supervised release.  He will be subject to deportation upon completion of his sentence.

In 2002, Moreno-Tejeda was convicted of bribery, and determined to be unlawfully present in the United States.  Upon completion of his 12-month sentence, he was deported.  In 2005, Moreno-Tejeda, using the alias Ricardo Rodriguez, was convicted of cocaine distribution in Suffolk Superior Court. Moreno-Tejeda received a sentence of 48-60 months in prison, but due to altered fingerprints, law enforcement was unable to determine his legal identity at the time, which would have revealed his prior conviction and immigration status.

In September 2016, Moreno-Tejeda was convicted of heroin distribution in Suffolk Superior Court and sentenced to 30 months in prison, which will be served consecutively with his federal prison sentence.

Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement.  Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Criminal Division prosecuted the case.

BOSTON – A well-known auctioneer was sentenced today in federal court in Boston for defrauding more than 90 victims – many of whom were friends, business associates and sophisticated investors – of more than $21 million.

Acting United States Attorney William D. Weinreb said, “Mr. Flynn preyed upon friends and family, taking their hard earned money with promises of high returns. Instead, he violated their trust, and used their investments to perpetuate an elaborate Ponzi scheme, using the money for his own personal expenses including renovations to his Milton home.”

“Through sophisticated financial schemes, Mr. Flynn took advantage of a wide array of victims, cheating them out of millions of dollars,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “This case highlights the FBI's commitment to aggressively following the money, so that financial fraudsters like Flynn - who are motivated by greed - are brought to justice and do not take advantage of the hard working men and women of our communities.”

Daniel J. Flynn III, 54, of Milton, was sentenced by U.S. District Court Senior Judge Rya W. Zobel to four years in prison, three years of supervised release and ordered to pay restitution. In February 2017, Flynn pleaded guilty to nine counts of wire fraud.

Beginning around 2007, Flynn and another individual started a real estate fund called the DJF Real Estate Opportunity Fund (“the Fund”). The fund touted Flynn’s experience in real estate and boasted of an extraordinary rate of return on investments. To convince potential investors that the Fund was solid, Flynn purported to own promissory notes worth millions of dollars and an apartment complex in Quincy. In fact, Flynn fraudulently created the promissory notes and used the Quincy apartment complex to defraud investors.

Specifically, Flynn used the promissory notes to defraud investors by soliciting loans from investors to purchase or invest in a piece of distressed real estate. In return, Flynn gave the investor a promissory note guaranteeing the investor of a 12 to 15 percent return. Although Flynn did make payments to investors, as is typical in a Ponzi scheme, the money came from other victims – not real estate investment profits. In total, Flynn defrauded about 60 individuals and entities of approximately $18.4 million.

In addition, Flynn used the Quincy apartment complex to defraud investors. In 2005, Flynn purchased the property for $995,000. Despite the fact that he already owned the property, Flynn caused the Fund to purchase the apartment complex for approximately $2.2 million. Flynn then convinced some investors to loan him money to develop the units and convinced other investors to loan him money to purchase the property – despite the fact that he already owned it – and promised a 12 to 15 percent profit in return. Flynn never repaid the investors.

Lastly, acting as a real estate broker, Flynn sold two properties in Dorchester generating $451,000 in profits, but never returned the proceeds to the property owner. The property owner later died due to heart failure, but family members recalled that the victim and Flynn were involved in a heated argument about the money.

Acting U.S. Attorney Weinreb and FBI SAC Shaw made the announcement today. Assistant U.S. Attorney Neil J. Gallagher Jr. of Weinreb’s Economic Crimes Unit prosecuted the case.

BOSTON – A citizen of the Dominican Republic pleaded guilty today in federal court in Boston to passport fraud and identity theft. 

Alvaro Luis Soto-Martinez, 31, a Dominican national who was residing in Hyde Park, Mass., pleaded guilty to one count of passport fraud, one count of misuse of a social security number, and one count of aggravated identity theft.  U.S. District Court Judge Indira Talwani scheduled sentencing for August 8, 2017.

On Oct. 15, 2014, Soto-Martinez entered a Lowell post office and used the name, date of birth, and social security number of a United States citizen from Puerto Rico to apply for a United States passport. 

The charge of passport fraud provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000.  The charge of misuse of a social security number provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000.  The charge of aggravated identity theft provides for a mandatory two years in prison, which must run consecutive to any other imposed term of imprisonment. Soto-Martinez will be subject to deportation upon completion of his sentence. 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 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.  Assistant U.S. Attorney Nicholas Soivilien of Weinreb’s Major Crimes Unit is prosecuting the case.

BOSTON – A citizen of the Dominican Republic pleaded guilty today in federal court in Boston to a federal immigration charge.

 

Juan Antonio Colon, 52, a Dominican national residing in Boston, pleaded guilty to one count of re-entry of a removed alien. U.S. District Court Judge William G. Young scheduled sentencing for June 27, 2017.

 

On Nov. 9, 2016, after a motor vehicle stop in Roxbury, law enforcement officers arrested Colon for possession of Oxycodone, giving a false name, and operating with a suspended registration. Colon’s fingerprints have been altered, but federal agents were able to positively identify him using their comparative fingerprint analysis tool. Further investigation revealed that Colon was previously deported from the United States in May 2009 and July 2013.

 

The charging statute provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. Colon will be subject to deportation upon completion of his sentence. 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 Nicholas Soivilien of Weinreb’s Criminal Division is prosecuting the case.

BOSTON – The co-owner of Nick’s Famous Roast Beef in Beverly, Mass., was sentenced today in federal court in Boston for skimming nearly $6 million in cash receipts from the business over a six-year period and not reporting that cash as income on business and personal tax returns.

 

Nicholas Markos, 70, of Lynn, was sentenced by U.S. District Court Judge Patti B. Saris to one year of probation to be served in home confinement and ordered to pay $2,063,394 in restitution. In January 2017, Markos pleaded guilty to one count of conspiracy to defraud the United States by obstructing the IRS in assessing and collecting taxes and 10 counts of aiding and assisting in the filing of false corporate and personal tax returns.

 

In April 2017, co-owner Nicholas Koudanis, his wife, Eleni Koudanis, and their son, Steven Koudanis, were sentenced for their role in the scheme.

 

From 2008 to 2013, Nicholas Markos and his business partner, Nicholas Koudanis, skimmed more than $1 million in cash receipts each year from their business, which they failed to report on their corporate tax returns or personal tax returns, thereby avoiding the payment of nearly $1 million each in personal income taxes during that same period. Each week, Markos and Koudanis personally divided the cash receipts, determining how much to deposit into the business’ bank account and report on their tax returns, how much to use to pay suppliers and employees, and how much to keep for themselves. Eleni Koudanis was primarily responsible for the bookkeeping, and she provided some of the false income information to the tax preparer and recruited employees, including her son Steven Koudanis, to create false cash register receipts to be used, among other things, in connection with an IRS tax audit of the business. The actual cash register receipts were not provided to the tax preparer who prepared the business and personal tax returns.

 

Acting United States Attorney William D. Weinreb and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorney Mark J. Balthazard of Weinreb’s Economic Crimes Unit prosecuted the case.

BOSTON – A Chelsea resident was sentenced today in federal court in Boston for distributing cocaine in Massachusetts and Puerto Rico.

Jose Ramirez-Baez, 40, was sentenced by U.S. District Court Judge Allison D. Burroughs to 43 months in prison and five years of supervised release.

In October 2016, Ramirez-Baez pleaded guilty to one count of conspiracy to possess with intent to distribute 500 grams or more of cocaine, two counts of attempted possession with the intent to distribute 500 grams or more of cocaine, and three counts of money laundering. 

From June 2014 to March 2016, Ramirez-Baez shipped large quantities of cocaine from Puerto Rico to Massachusetts via both the United States Postal Service and the United Parcel Services.  In December 2015, investigators in Puerto Rico seized two packages bound for Ramirez-Baez that contained five kilograms of cocaine. These packages ultimately led to Ramirez-Baez’s arrest and conviction.  In addition, Ramirez-Baez laundered over $200,000 in cash by depositing drug proceeds into an account bearing the name J&Y Landscaping in an effort to conceal the fact that the proceeds were derived from drug trafficking.

Acting United States Attorney William D. Weinreb; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today.  Assistant U.S. Attorney Eric Rosen of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.

BOSTON – A Cape Cod man pleaded guilty in U.S. District Court in Boston today in connection with trafficking heroin and money laundering.

Christopher Wilkins, 29, of Hyannis, pleaded guilty to 15 federal charges: nine counts of possession of heroin with the intent to distribute; conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin and money laundering; conspiracy to possess a firearm in furtherance of drug trafficking charges; conspiracy to distribute and possess with the intent to distribute cocaine; possession of cocaine with the intent to distribute; and conspiracy to launder monetary instruments. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for August 16, 2017.

In October 2015, law enforcement initiated an effort to address the rising opioid epidemic in Massachusetts, particularly on Cape Cod.  As alleged in the charging documents, Wilkins, Denzel Chisholm, Christian Chapman, and other co-conspirators were responsible for a significant quantity of heroin distributed on Cape Cod.  A wiretap investigation led to their arrests and indictments. 

Wilkins was one of the most prolific heroin distributors of the group.  He distributed heroin to other drug dealers and to heroin users on nearly a daily basis. Furthermore, Wilkins distributed cocaine, which he sourced from co-defendant Aaron Mott-Frye.   

In addition to the narcotics charges, Wilkins pleaded guilty to firearms and money laundering. On March 7, 2016, Wilkins attempted to obtain a firearm from co-defendant Benjamin Roderick in exchange for 10 grams of heroin.  The firearm was recovered from Roderick before it could be passed to Wilkins.  Wilkins also laundered over $200,000 in narcotics proceeds by depositing the drug money into bank accounts set up in his wife’s name, thereby concealing the origin and source of the funds. 

Chisholm and Mott-Frye pleaded not guilty to the charges against them. Their trial is scheduled for June 5, 2017. Roderick pleaded guilty in September 2016 and was sentenced in January 2017. Chapman pleaded guilty in March 2017 and is scheduled to be sentenced on July 12, 2017. 

The charge of conspiracy to distribute and possess 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; money laundering and conspiracy to possess a firearm in furtherance of drug trafficking 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; possession of heroin and cocaine with the intent to distribute provides for a sentence of no greater than 20 years in prison, three years to life of supervised release, and a fine of up to $1 million.  Actual sentences for federal crimes are typically less than the maximum penalties.  Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

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, Boston Field Division; Cape and Islands District Attorney Michael O’Keefe; and Barnstable Police Chief Paul MacDonald, made the announcement today.  Assistant U.S. Attorneys Eric S. Rosen and Miranda Hooker of Weinreb’s Narcotics and Money Laundering Unit are prosecuting the case.

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

BOSTON – Two brothers were convicted today in connection with the attempted extortion and conspiracy to extort the co-owner of a suboxone clinic in Quincy and embezzling money from the clinic.

 

David Tkhilaishvili, 36, and Jambulat Tkhilaishvili, 46, both of Taunton, were convicted following a five-day trial of one count of conspiring to extort and one count of attempted extortion. David Tkhilaishvili was also convicted of two counts of embezzlement. U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for Aug. 14, 2017.

 

In 2014, the brothers approached the co-owner of a Quincy suboxone clinic and asked him to invest in a new suboxone clinic. The defendants claimed to have many years of experience in running medical clinics, including suboxone clinics. To convince the victim to invest, the defendants promised to repay the victim 50% of his investment in the clinic within five years if the business failed, with 5% interest per year, in the event that the victim did not recover his investment in the clinic. In December 2014, the victim agreed to invest in the clinic and, because of the size of his investment, insisted upon significant contractual protections, including that he would have full decision making authority over matters involving the clinic. The defendants agreed; however, shortly thereafter, the defendants began to demand that the victim surrender his ownership interest and, on multiple occasions, threatened him and his family with physical injury. One of the defendants told the victim that he had made nine people and their families, who had a problem with him in the past, disappear. Both defendants claimed to live the life of outlaws who associated with thieves-in-law. In addition, both of the defendants threatened physical harm to the victim and his family and to burn down the clinic if the victim did not comply with their demands. One of the defendants embezzled approximately $3,500 from the clinic.

 

The charge of conspiracy to extort and attempted extortion provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. The charge of embezzlement provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

 

Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Laura J. Kaplan of Weinreb’ s Organized Crime and Gang Unit is prosecuting the case.

 

BOSTON – A Colombian man pleaded guilty today in federal court in Worcester to a federal immigration crime.

Hernan Lopez Castaneda, aka Carlos Velasquez, aka Gustavo Velandia, 60, a Colombian national who was residing in Queens, N.Y., pleaded guilty to one count of illegal re-entry of a deported alien.  U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Aug. 2, 2017.

Lopez has illegally entered the United States on multiple occasions. He was first deported in 2006. In 2013, Lopez was convicted in federal court of illegal re-entry of a deported alien and was deported.  Lopez re-entered the United States and was again removed in September 2015.  Sometime after his removal in September 2015, Lopez again illegally re-entered the United States. 

On Dec. 28, 2016, law enforcement officers in Auburn, Mass., stopped Lopez for two traffic violations as he exited the Auburn Mall. When asked for his license and registration, Lopez was unable to produce a license, but provided the officers with a passport with a false name. The officers arrested Lopez for operating a motor vehicle without a license, and his vehicle was towed. Prior to the tow, officers inventoried the vehicle and found thousands of dollars’ worth of retail merchandise that was deemed stolen. Police learned Lopez’s legal name and immigration status when he was fingerprinted during booking.

The charging statute provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000.  Lopez will be subject to deportation upon completion of his sentence. 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.

BOSTON – An alleged member of MS-13 who had been a fugitive was arrested today in East Boston and charged with illegal re-entry.

 

Elenilson Gustavo Gonzalez-Gonzalez, aka “Siniestro,” 31, was arrested on Paris Street in East Boston. Gonzalez-Gonzalez was detained following an initial appearance before U.S. District Court Magistrate Judge M. Page Kelley during which he was identified as a member of MS-13 who had previously been deported to El Salvador in 2012.

 

After a three-year investigation, Gonzalez-Gonzalez was one of 61 persons named in a superseding indictment targeting the criminal activities of alleged leaders, members, and associates of MS-13 in Massachusetts. Gonzalez-Gonzalez was charged in the indictment with unlawful re-entry of a deported alien, and the government alleges that he is a member of MS-13.

 

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 in Massachusetts. MS-13 members are required to commit acts of violence to maintain membership and discipline within the group. Specifically, MS-13 members are required to attack and murder gang rivals whenever possible.

 

The charge of illegal re-entry provides for a sentence of no greater than two years in prison, three years of supervised release and a fine of $250,000. The defendant will also be subject to deportation upon the completion of the sentence. 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; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Commissioner Thomas Truco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief Joseph Cafarelli; and Somerville Police Chief David Fallon, made the announcement.

 

​The details contained in the indictments are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – A document broker pleaded guilty yesterday in federal court in Springfield in connection with his role in trafficking the identities of Puerto Rican citizens and corresponding identity documents.

 

Sandro Tavera Mora, aka Jose Laureano Ayala, 46, a Dominican national residing in Springfield, pleaded guilty to false personation of U.S. citizenship, fraud and misuse of visas and conspiracy to possess and transfer identification documents. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for June 22, 2017.

 

Beginning in 2011, identity document runners located in the Savarona area of Caguas, Puerto Rico, obtained Puerto Rican identities and corresponding identity documents. Other conspirators located in various cities throughout the United States, identified as identity document suppliers and brokers, solicited customers and sold social security cards and corresponding Puerto Rico birth certificates for prices ranging from $400 to $1,200 per set.

 

Tavera Mora admitted that he operated as a document broker in Springfield, buying, possessing, transferring and selling personal identifying information contained in legitimate government documents belonging to residents of Puerto Rico. Tavera Mora further admitted that the customers who purchased these documents were illegal aliens who would use this information to assume the identity of United States citizens in order to apply for other identity documents. Tavera Mora knew that these customers would use these documents to violate federal law, including Social Security fraud and the impersonation of a United States citizen.

 

Additionally, Tavera Mora admitted that upon his arrest he identified himself as “Jose Laureano Ayala” a U.S. citizen born in Puerto Rico, and possessed a fraudulent Puerto Rico drivers license and a U.S. Social Security card in the same name. Tavera Mora further admitted that he possessed a fraudulent Dominican Republic passport that contained a non-immigration U.S. Visa with fraudulent admittance record and a Customs and Border Patrol admittance stamp.

 

Acting U.S. Attorney William D. Weinreb, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting Director Thomas D. Homan of the U.S. Immigration and Customs Enforcement (ICE) and Chief Postal Inspector Guy J. Cottrell of the U.S. Postal Inspection Service (USPIS) made the announcement.

 

Assistant U.S. Attorney Kevin O’Regan, Chief of Weinreb’s Springfield Branch Office, and Trial Attorney Marianne Shelvey of the Justice Department’s Criminal Division are prosecuting the case.

 

Potential victims and the public may obtain information about the case at: www.justice.gov/criminal/vns/caseup/beltrerj.html. Anyone who believes their identity may have been compromised in relation to this investigation may contact the ICE toll-free hotline at 1-866-DHS-2ICE (1-866-347-2423) and its online tip form at www.ice.gov/tipline. Anyone who may have information about particular crimes in this case should also report it to the ICE tip line or website.

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

Pedro Mejia Salazar, 73, of Medellin, Colombia, was charged with one count of conspiracy to launder money. Mejia arrived in Boston from Colombia on May 3, 2017, and appeared in U.S. District Court in Boston yesterday to plead guilty to the charge against him.   Mejia’s sentencing was set for July 27, 2017.

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

Mejia controlled a series of bank accounts, which he used to launder drug proceeds and deliver them for the benefit of Colombian-based drug trafficking organizations.  Mejia’s criminal activity was uncovered with the help of a cooperating source and an undercover federal agent who posed as a money broker. The undercover agent agreed to receive bulk cash from money couriers working for Colombian-based drug trafficking organizations and then send the money through Mejia’s business accounts.  The ultimate recipients of the funds were the Colombian narco-traffickers and the money brokers that work for them.  Once the undercover agent received bulk cash from money couriers, the agent would call Mejia, who directed the agent to transfer the cash to a series of accounts Mejia controlled. After the wire transfers were completed, Mejia withdrew the money from the accounts he controlled and distributed it in Colombia to whomever originally arranged the pick-up, either drug trafficking organizations or money brokers.

The charge of conspiracy to launder money provides for a sentence of 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.

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

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

 

BOSTON – A South Boston woman pleaded guilty in federal court in Boston today to using false Social Security numbers.   

Dana Whidbee, a/k/a Dana De Alasei, 53, pleaded guilty to two counts of falsely representing a Social Security number.  U.S. District Court Judge Rya W. Zobel scheduled sentencing for June 22, 2017.  Whidbee was indicted in March 2017. 

Whidbee used two false social security numbers to apply for a job and housing in September 2013 and May 2014, respectively.

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 Karen Burzycki of Weinreb’s Major Crimes Unit is prosecuting the case

BOSTON – A Peruvian national pleaded guilty and was sentenced on April 26, 2017, for smuggling counterfeit U.S. currency into the United States.

Alejendrina Elsa Quispe Ramirez, 48, pleaded guilty on April 26, 2017, to smuggling counterfeit U.S. currency into the United States.  U.S. District Court Judge George A. O’Toole Jr. sentenced Quispe to time served.  As part of the plea agreement, Quispe agreed to leave the United States following sentencing.

In July 2016, Peruvian National Police advised the United States Secret Service (USSS) that Quispe and two of her sons would be traveling to the United States on July 11, 2016, through Boston’s Logan Airport, carrying a large amount of U.S. currency concealed in their luggage.  The family members, all Peruvian nationals, were traveling on visas that were issued, in part, for the purpose of allowing one of the sons to obtain medical treatment in the United States.  When federal agents searched Quispe’s luggage, they found spindles, used for string or yarn for industrial sewing or textile manufacturing machines, wrapped within the travelers’ clothing.  Shortly after entering the United States, Quispe was arrested and further investigation of the luggage contents revealed counterfeit $100 bills totaling $1,190,000, all concealed within 140 spindles of thread. 

Acting United States Attorney William Weinreb and Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service, Boston Field Office, made the announcement.  The case was prosecuted by Lori J. Holik, Chief of Weinreb’s Major Crimes Unit. 

BOSTON – An asbestos removal company was sentenced today in federal court in Boston in connection with a scheme to pay union members at non-union rates and without benefits by setting-up and paying union members through a separate corporate entity.

 

AQE Inc. of Windham, NH, was sentenced by U.S. District Court Judge Patti B. Saris to one year of probation and was ordered to pay restitution of $500,000 to the Massachusetts Laborers Benefit Fund (MLBF). In February 2017, AQE Inc. pleaded guilty to 18 counts of mail fraud, one count of benefit fund embezzlement and 18 counts of filing false documents with an ERISA fund.

 

AQE Inc. employed members of the Tewksbury Local 1421 of the Laborers International Union of North America. It paid members of Local 1421 for jobs that required union participation from the payroll of AQE Inc., which was a union signatory corporation. When the jobs did not require a union signatory company, union members were paid from the payroll of Air Quality Experts Inc.— an entity of AQE Inc.’s business, serving as a second corporate identity. In these instances, union members did not receive union rates, and benefits were not paid by AQE Inc. to the MLBF, which provides medical and pension benefits to 8,000 laborers and their families in Massachusetts. AQE Inc. sent “remittance reports” to the MLBF that failed to report thousands of hours worked by members of Local 1421. By significantly under reporting the hours worked by union members, AQE Inc. failed to pay hundreds of thousands of dollars to the MLBF.

 

Acting United States Attorney William D. Weinreb; Cheryl Garcia, Special Agent in Charge of the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigation, New York Region; and Susan Hensley, Regional Director of the Department of Labor, Employee Benefits and Security Administration, made the announcement today. Assistant U.S. Attorneys Fred M. Wyshak Jr. and Ryan M. DiSantis of Weinreb’s Public Corruption Unit prosecuted the case.

BOSTON – Yue Wang, 25, Shikun Zhang, 24, Leyi Huang, 21, and Xiaomeng Cheng, 21, all in the United States on F-1 non-immigrant student visas, were arrested today on charges of conspiracies to defraud the United States.

 

The conspiracies involved Wang, a current student at the Hult International Business School in Cambridge, Mass., agreeing to sit for the TOEFL exam in the place of Zhang, Huang, and Cheng. The TOEFL exam is an English language test recognized by more than 9,000 colleges, universities, and agencies in more than 130 countries. It is also used by the United States government in issuing, extending, or renewing F-1 student visas.

 

After Wang took the TOEFL exam in her co-conspirators places, her scores were allegedly used by the co-conspirators to apply for admission to various universities in the United States. Zhang used this fraudulently acquired TOEFL score to gain admission to Northeastern University in Boston, Mass.; Huang fraudulently used the TOEFL score to gain admission to Penn State University in Erie, Pa.; and Cheng used the fraudulently acquired TOEFL score to gain admission to Arizona State University. In each case, the United States Department of State issued the student an F-1 non-immigrant student visa based on their admittance to these educational institutions.

 

“Illegal schemes to circumvent the TOEFL exam jeopardize both academic integrity and our country’s student visa program,” said William B. Weinreb, Acting U.S Attorney. “The TOEFL exam ensures that international students have adequate English language skills to succeed in higher education programs in the United States. It also helps maintain the security of our borders and immigration system. By effectively purchasing passing scores, they violated the rules and regulations of the exam, taking spots at US colleges and universities that could have gone to others.”

 

“These schemes not only undermine the integrity of the academic institutions, they also undermine our nation’s immigration system,” said Matthew Etre, Special Agent in Charge of HSI in Boston. “HSI will continue to protect the nation’s immigration system by working with our federal law enforcement partners and our partners in academia to ensure that those involved in these scams are held accountable.”

 

The charge of conspiracy to defraud the United States provides for a sentence of no greater than 5 years in prison, up to three years of supervised release and a fine of $250,000. The defendants are subject to deportation after conviction and serving any sentence imposed. 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 the Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Weinreb’s Major Crimes Unit is prosecuting the case.

 

BOSTON – A former NHL player was sentenced in federal court in Boston today for an oxycodone conspiracy.

 

Kevin Stevens, 52, of Weymouth, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to three years of probation and ordered to pay a fine of $10,000. In December 2016, Stevens pleaded guilty to conspiracy to possess with intent to distribute and to distribute oxycodone. Co-defendant Christopher Alonardo pleaded guilty to the same charge as well as possession with intent to distribute oxycodone. He is scheduled to be sentenced on May 16, 2017.

 

From approximately August 2015 through March 2016 Stevens and Alonardo conspired to distribute oxycodone in southeastern Massachusetts and the Boston area. Stevens supplied wholesale quantities of oxycodone to Alonardo who resold the drugs. On Nov. 5, 2015, Stevens was stopped by the Massachusetts State Police and was found in possession of 175 30mg pills of oxycodone that were intended for redistribution.

 

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 Investigation, the Massachusetts Department of Correction, and the Boston, Medford and Quincy Police Departments provided assistance with the investigation. Assistant U.S. Attorney Timothy E. Moran of Weinreb’s Organized Crime and Gang Unit prosecuted the case.

A document broker pleaded guilty today in connection with his role in trafficking the identities of Puerto Rican U.S. citizens and corresponding identity documents.

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney William D. Weinreb of the District of Massachusetts, Acting Director Thomas D. Homan of the U.S. Immigration and Customs Enforcement (ICE) and Chief Postal Inspector Guy J. Cottrell of the U.S. Postal Inspection Service (USPIS) made the announcement.

Sandro Tavera Mora, aka Jose Laureano Ayala, 46, a Dominican citizen residing in Springfield, Massachusetts, pleaded guilty before U.S. District Court Judge Mark G. Mastroianni of the District of Massachusetts, to false personation of U.S. citizenship, fraud and misuse of visas and conspiracy to possess and transfer identification documents. Tavera Mora was charged in a superseding indictment returned by a federal grand jury in Springfield on July 23, 2015. Sentencing is set for June 22, 2017.

According to admissions made in connection with the plea, identity document runners located in the Savarona area of Caguas, Puerto Rico, obtained Puerto Rican identities and corresponding identity documents. Other conspirators located in various cities throughout the United States, identified as identity document suppliers and brokers, solicited customers and sold social security cards and corresponding Puerto Rico birth certificates for prices ranging from $400 to $1,200 per set.

As part of his plea, Tavera Mora admitted that he operated as a document broker in Springfield, Massachusetts, buying, possessing, transferring and selling personal identifying information contained in legitimate government documents belonging to residents of Puerto Rico. Tavera Mora further admitted that the customers who purchased these documents were undocumented aliens who would use this information to assume identity of U.S. citizens in order to apply for other identity documents. Tavera Mora also admitted that he knew that these customers would use these documents to violate federal law, including social security fraud and the impersonation of a U.S. citizen.

Additionally, Tavera Mora admitted that upon his arrest he identified himself as “Lareano Ayala,” stated he was born in Puerto Rico and possessed a fraudulent Puerto Rico Driver's License and a U.S. social security card in the same name. Tavera Mora further admitted that he possessed a fraudulent Dominican Republic passport that contained a non-immigration U.S. Visa with fraudulent admittance record and a Customs and Border Patrol (CBP) admittance stamp.

The Chicago offices of ICE-HSI, USPIS, DSS and IRS-CI led the investigation, dubbed Operation Island Express II, with assistance from HSI Springfield, Massachusetts, and USPIS in Hartford, Connecticut. The ICE-HSI Attaché office in the Dominican Republic, International Organized Crime Intelligence and Operations Center (IOC-2) and Illinois Secretary of State Police provided invaluable assistance, as well as various ICE, USPIS, DSS and IRS CI offices around the country.

Trial Attorney Marianne Shelvey of the Justice Department Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Kevin O’Regan of the District of Massachusetts are prosecuting the case

Potential victims and the public may obtain information about the case at: www.justice.gov/criminal/vns/caseup/beltrerj.html. Anyone who believes their identity may have been compromised in relation to this investigation may contact the ICE toll-free hotline at 1-866-DHS-2ICE (1-866-347-2423) and its online tip form at www.ice.gov/tipline. Anyone who may have information about particular crimes in this case should also report it to the ICE tip line or website.

BOSTON – A Colombian man pleaded guilty today in federal court in Worcester to drug and immigration charges.

Leonardo Franco, 45, a Colombian national who resided in Worcester, pleaded guilty to one count of possession of cocaine with intent to distribute and one count of illegal re-entry of a deported alien.  U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Aug. 4, 2017.

On Nov. 3, 2016, Franco was traveling to Oxford, Mass., with the intent of selling cocaine to another individual - an individual to whom Franco had previously sold cocaine.  Law enforcement confronted Franco and found him in possession of more than a half-pound of cocaine contained in several clear baggies. 

Franco was convicted of illegal re-entry of a deported alien in 2011 and was subsequently deported from the United States.  Franco had previously been removed from the United States on three other occasions, including twice in 2010.  Sometime after his removal in 2011, Franco illegally re-entered the United States again. 

The charging statute for possession of cocaine with intent to distribute provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release and a fine of $1 million. The charging statute for illegal re-entry provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000.  Franco will be subject to deportation upon completion of his sentence. 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 Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; 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.

BOSTON – A Boston man was arrested today and charged in federal court in Boston in connection with making threats to a Federal Bureau of Investigation (FBI) Task Force Officer.

Carmen J. Polito, 35, was charged in a criminal complaint with knowingly transmitting in interstate communications containing a threat to kidnap or injure an FBI Task Force Officer in Miami, Fla.  At his initial appearance today, U.S. District Court Magistrate Judge M. Page Kelley ordered a competency evaluation.

According to court documents, on May 3, 2017, Polito, an individual known to the FBI Miami Division, left threatening voice mails and sent threatening text messages to an FBI Task Force Officer assigned to the Miami Field Division. In those voice messages, Polito threatened to stab the officer and made statements such as, “an officer is going to die.”  Polito also sent threatening texts with accompanying photographs including, various weapons, Boston City Hall, and police vehicles.

Federal agents were able to locate Polito by tracking the location of the cell phone used to place the calls and send the texts. On May 3, 2017, Polito was located in Brookline, Mass., and arrested.

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

Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Brookline Police Chief Daniel C. O’Leary made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.

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

BOSTON – A Randolph man was sentenced today in federal court in Boston for wire fraud and perjury in connection with a scheme to defraud DreamWorks Animation SKG Inc. by falsely claiming that the company stole from him the characters and story for its animated movie Kung Fu Panda.

Jayme Gordon, 51, was sentenced by U.S. District Court Chief Judge Patti B. Saris to two years in prison, three years of supervised release and ordered to pay more than $3 million in restitution.  On Nov. 18, 2016, a federal jury found Gordon guilty on four counts of wire fraud and three counts of perjury. 

In early 2008, several months before the movie’s June 2008 release, Gordon saw a trailer for Kung Fu Panda.  Gordon had previously created some drawings and a story about Pandas, which he called “Panda Power,” that bore little resemblance to the characters in the movie.  But after seeing that trailer, Gordon revised his “Panda Power” drawings and story and renamed it “Kung Fu Panda Power.”  He made these revisions as part of his scheme so that his work would appear to be more similar to the DreamWorks pandas he had seen in the movie trailer.  In February 2011, Gordon filed a copyright infringement suit against DreamWorks in U.S. District Court in Massachusetts, and later that year, he proposed that DreamWorks agree to settle the suit by paying him $12 million.  DreamWorks rejected that proposal, and the litigation continued for another two years.

During the course of the civil litigation, Gordon intentionally deleted relevant evidence on his computer that he was required to produce in discovery and lied during his civil deposition.  Furthermore, Gordon fabricated and backdated sketches that served as support for his suit.  The full nature of Gordon’s scheme came to light when DreamWorks discovered that Gordon had traced some of his panda drawings from a Disney Lion King coloring book. 

 

Gordon’s sketches, which were dated 1992 or 1993, were copied from this coloring book, which was not published until 1996, therefore demonstrating that Gordon drew these sketches after 1996 and backdated them.  After DreamWorks discovered the tracing from the coloring book, Gordon agreed to dismiss his suit.  By this point, however, DreamWorks had spent more than two years defending the fraudulent suit, at a cost of approximately $3 million.

At trial, Gordon testified that he had not traced his drawings from the coloring book.  Instead, he claimed, Disney, like DreamWorks, had apparently copied his drawings and based characters in the Lion King on his work.  He also claimed that DreamWorks and Disney had copied characters in other movies from his work, including characters in The Incredibles, A Bug’s Life, MegaMind and Flushed Away.

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. Attorneys Adam Bookbinder and Amy Harman Burkart of Weinreb’s Cybercrime Unit prosecuted the case. 

BOSTON – Three Cape Cod men pleaded guilty yesterday in federal court in Boston in connection with trafficking heroin and suboxone. 

Oliver Hamilton, 26, pleaded guilty to conspiracy to distribute and possess with the intent to distribute heroin and possession of heroin with the intent to distribute.  U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for Sept. 13, 2017.

Browning Mejia, 26, pleaded guilty to use of a communications facility in furtherance of a felony drug offense and is scheduled to be sentenced on Sept. 14, 2017.

Jason Mello, 29, pleaded guilty to conspiracy to distribute and possess with the intent to distribute heroin and possession of heroin with the intent to distribute.  Mello’s sentencing is scheduled for Sept. 15, 2017.

All three individuals had been charged as part of the federal investigation into the “Nauti-Block” gang that led to the indictment of 19 individuals.  In October 2015, law enforcement initiated an effort to address the rising opioid epidemic in Massachusetts and on Cape Cod in particular.  Law enforcement focused on the “Nauti-Block” gang led by Denzel Chisholm, Christian Chapman and Christopher Wilkins.  Chapman previously pleaded guilty to heroin trafficking, while Chisholm and Wilkins are scheduled to stand trial on June 5, 2017.

According to court documents, Chisholm, 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 indictments.  These gang leaders obtained heroin from New Bedford, amongst other suppliers, and distributed the heroin to numerous drug dealers on Cape Cod, including Mello and Hamilton.  Hamilton agreed to accept responsibility for between 100 and 400 grams of heroin.  In addition, it was stated at Mejia’s plea hearing that Chisholm obtained suboxone from his heroin customers and then supplied that suboxone to Mejia, who distributed it at MCI-Norfolk prison, where he was an inmate.    

The charge of conspiracy to distribute and possession with the intent to distribute heroin and possession of heroin with the intent to distribute provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release and a fine of $1 million.  The charge of use of a communications facility in furtherance of a felony drug offense provides for a sentence of no greater than four years in prison, one year 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. Attorneys Eric S. Rosen and Miranda Hooker of Weinreb’s Narcotics and Money Laundering Unit are prosecuting the case. 

BOSTON – A Brockton man was sentenced yesterday in federal court in Boston for trafficking fentanyl and possession of a firearm.

 

Luis DaCosta, 23, aka “Jesse” and “Slu,” a Legal Permanent Resident, was sentenced by U.S. District Court Judge William G. Young to 106 months in prison and five years of supervised release, during which time he will be prohibited from associating with his co-conspirators and certain other Brockton gang members. DaCosta is subject to immigration proceedings, including deportation, after serving his sentence.

 

In January 2017, DaCosta pleaded guilty to conspiracy to possess with intent to distribute fentanyl and possession of a firearm during and in relation to a drug trafficking crime. In April 2016, DaCosta was arrested and charged in a criminal complaint, and in May 2016, he and six others were indicted on drug and firearm-related charges.

 

On numerous occasions from December 2015 to March 2016, DaCosta sold fentanyl in the Brockton area. On April 5, 2016, law enforcement seized a loaded Smith and Wesson 9mm handgun and more than 30 grams of fentanyl from the hotel room in which DaCosta and co-defendant Seidica Monteiro were staying. According to court documents, DaCosta has a violent history and gang associations. Specifically, DaCosta had been released on bail from Rhode Island state court after he allegedly shot a person on March 19, 2016. In addition, in February 2016, DaCosta sold fentanyl to a person that overdosed, but later recovered.

 

Monteiro pleaded guilty in January 20127 and is scheduled to be sentenced on July 10, 2017.

 

This case was brought as part of the federal response to the opioid abuse epidemic in Massachusetts. Fentanyl is a powerful synthetic opiate that is 50 to 100 times more potent than morphine, and is responsible for the increased number of overdose deaths in Massachusetts. In 2016, 75 percent of those who unintentionally overdosed had fentanyl in their systems, an increase of nearly 25 percent from the prior year.

 

Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Plymouth County District Attorney Timothy Cruz; and Brockton Police Chief John Crowley, made the announcement today. The case was investigated by the Federal Bureau of Investigation, the Massachusetts State Police assigned to the Plymouth Country District Attorney’s Office, MSP CAT Team, the Southeastern Massachusetts Gang Task Force, the New England High Intensity Drug Trafficking Area (HIDTA), and Brockton Police Department. Assistant U.S. Attorneys Glenn A. MacKinlay and Timothy Moran of Weinreb’s Organized Crime and Gang Unit prosecuted the case.

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

Neetal Shah, 41, pleaded guilty to one count of wire fraud.  U.S. District Court Judge Allison D. Burroughs scheduled sentencing for July 21, 2017. 

Between approximately April 2012 and November 2014, Shah operated a wholesale business in Lowell that sold tobacco products, including cigars, smoking tobacco and smokeless tobacco (such as snuff and chewing tobacco), as well as other non-tobacco items, to convenience stores, gas stations and other retail businesses.

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

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

The charging statute provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000.  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 Investigation in Boston, made the announcement today.  Valuable assistance was also provided by the Massachusetts Department of Revenue. Assistant U.S. Attorney Stephen Heymann of Weinreb’s Economic Crimes Unit is prosecuting the case.

BOSTON – A former Boston Police Officer was arrested today and charged in connection with illegally purchasing two firearms on behalf of acquaintances.

 

Adarbaad Karani, 37, of West Roxbury, was charged in an indictment unsealed today with two counts of making false statement during the purchase of firearms and two counts of making a false statement in a record. Karani was released on conditions following an initial appearance before U.S. District Court Magistrate Judge Judith G. Dein. In November 2016, Karani resigned from the Boston Police Department.

 

According to the Indictment, in November 2014 and September 2015, Karani acted as the “straw purchaser” of two firearms, a Glock, model 27, .40 caliber pistol and a Glock, model 30S, .45 caliber pistol, by purchasing them on behalf of acquaintances while falsely claiming the guns were for his official police use and not for resale. One of the weapons, however, was found in possession of Desmond Crawford, an alleged member of the Columbia Point Dawgs, at the time of his arrest in November 2015. Karani allegedly used his police identification to acquire the weapons, which may not be purchased by civilians, and certified on federal forms that the guns were for official police use. Straw purchases interfere with firearm regulation and recordkeeping, and federal law makes it a crime to knowingly make false statements to a firearms dealer in connection with the sale of a firearm.

 

The charging statutes each provide for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

 

Acting United States Attorney William Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Boston Police Commissioner William B. Evans, made the announcement today. Assistant U.S. Attorney Eugenia M. Carris of Weinreb’s Public Corruption & Special Prosecutions Unit is prosecuting the case.

 

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

BOSTON – A Brighton man was sentenced Thursday, April 27, 2017, in federal court in Boston for possession and receipt of child pornography.

Vincent C. Anzalone, 44, was sentenced by U.S. District Court Chief Judge Patti B. Saris to eight years in prison and five years of supervised release.  In January 2017, Anzalone pleaded guilty to one count of possession and one count of receipt of child pornography.

In October 2015, federal agents executed a search warrant at Anzalone’s residence and found hundreds of images of child pornography on his computer.  Anzalone was arrested and later admitted that he downloaded child pornography from the internet three to four times each week, and that he had been downloading child pornography for five or six years.  Anzalone also admitted to touching multiple children in a sexualized manner over a span of approximately 16 years, but stated that he had not done so in the past 10 years.

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. Assistance was also provided by the Boston Police Department. Assistant U.S. Attorney David G. Tobin of Weinreb’s Major Crimes Unit prosecuted the case.

 

BOSTON – Two Rhode Island sisters were sentenced today in federal court in Worcester for their roles in an immigration services fraud that netted over $700,000.

 

Indranis Rocheford, 28, a dual national of the Dominican Republic and St. Kitts living in Woonsocket, RI, and Alba Peña, 26, of Woonsocket, RI, were sentenced today by U.S. District Court Judge Timothy S. Hillman to 33 months and 35 months in prison, respectively, three years of supervised release, and ordered to pay $739,850 in restitution. Rocheford will be subject to deportation proceedings after serving her sentence. Following a 15-day trial in February 2017, Peña and Rocheford were convicted of wire fraud.

 

From 2009 through 2013, Peña, Rocheford, and their mother, Patria Zuniga, operated a fraud scheme that targeted undocumented immigrants seeking to legalize their status. As part of the scheme, Peña, Rocheford, and Zuniga told victims that Zuniga was either a lawyer or employee of U.S. immigration authorities who could help them become lawful permanent residents. They charged the victims between $8,000 and $14,000 for Zuniga’s services. After the victims made the initial payments, Zuniga extorted thousands of dollars more by threatening to have them deported if they refused to pay.

 

As part of the fraud, Peña and Rocheford recruited clients, assisted in sales pitch presentations, prepared fake immigration paperwork, and took receipt of victim payments, which were initially made in cash and later accepted via bank account deposits, money orders and wire transfers. In total, victims paid Peña, Rocheford, and Zuniga more than $700,000 for fraudulent immigration services.

 

In June 2016, Zuniga was sentenced to 78 months in prison and ordered to pay restitution in the amount of $713,850 after she pleaded guilty for her role in the scheme.

 

Acting United States Attorney William D. Weinreb; Matthew Etre, Special Agent in Charge of Homeland Security Investigations; and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service in Boston made the announcement today. Assistant U.S. Attorneys Jordi de Llano and John Capin of Weinreb’s Criminal Division prosecuted the case.

 

BOSTON – An Everett man was convicted by a federal jury yesterday of armed bank robbery, using a firearm during the commission of a crime of violence, and being a previously convicted felon in possession of a firearm and ammunition.

 

Joseph G. Rachal, 65, was convicted following a four-day trial and is scheduled to be sentenced by U.S. District Court Judge Nathaniel M. Gorton on July 27, 2017.

 

On Nov. 19, 2015, an individual wearing a blue hat, brown facemask, tan jacket, tan pants, and carrying a black nylon bag, entered a branch of the TD Bank in Brighton. As the individual entered the bank, he removed a black semi-automatic handgun, pointed it at the tellers, and ordered them to turn over cash from the drawers. The individual took the money and exited the bank. A post-robbery audit revealed that the individual took $2,397.

 

The Boston Police arrived within minutes of the robbery and observed an individual hiding behind a parked SUV one block from the bank. When the officers approached the vehicle and identified themselves as police, the individual got up and began running away while carrying a black nylon bag.

 

The officers caught the individual, later identified as Rachal. An active scanner, which was tuned to a Boston Police radio frequency, was found on Rachal. The bag Rachal was carrying was searched and found to contain a 9mm Glock semi-automatic pistol with one chambered round and a magazine containing 14 additional rounds, along with an additional magazine containing 15 rounds of 9mm ammunition, a brown facemask, gloves, a tan jacket, blue baseball hat and $2,397.

 

Bank surveillance cameras captured images of the robbery, and the items recovered from the bag Rachal was carrying were consistent with the items observed on the video.

 

The charge of armed bank robbery 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. The charge of being a felon in possession provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000. The charge of carrying a firearm during the commission of a crime of violence provides for a mandatory sentence of seven years to be served consecutive to the other charges. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing guidelines and other statutory factors.

 

Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner William Evans made the announcement today. The investigation was conducted with the assistance of the FBI’s Violent Crime Task Force. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.

BOSTON – The U.S. Attorney’s Office announced today that Partners HealthCare System and one of its hospitals, Brigham and Women’s Hospital (collectively, BWH), have agreed to pay $10 million to resolve allegations that a BWH stem cell research laboratory run by Dr. Piero Anversa fraudulently obtained grant funding from the National Institutes of Health (NIH). BWH disclosed these allegations to the government.

 

The settlement resolves allegations that Dr. Anversa, along with Dr. Annarosa Leri and Dr. Jan Kajstura, knew or should have known that their laboratory promulgated and relied upon manipulated and falsified information, including confocal microscope images and carbon-14 age data for cells, in applications submitted for NIH research grant awards concerning the purported ability of stem cells to repair damage to the heart. The government alleges that problems with the work of the laboratory included improper protocols, invalid and inaccurately characterized cardiac stem cells, reckless or deliberately misleading record-keeping, and discrepancies and/or fabrication of data and images included in applications and publications. The government contends that, at the direction of these BWH scientists, the Anversa laboratory included false scientific information in claims to NIH in order to obtain and use funds from NIH grants. Drs. Anversa, Leri, and Kajstura are no longer affiliated with BWH.

 

“Individuals and institutions that receive research funding from NIH have an obligation to conduct their research honestly and not to alter results to conform with unproven hypotheses,” said Acting U.S. Attorney William D. Weinreb. “Medical research fraud not only wastes scarce government resources but also undermines the scientific process and the search for better treatments for serious diseases. We commend Brigham and Women’s for self-disclosing the allegations of fraudulent research at the Anversa laboratory, and for taking steps to prevent future recurrences of such conduct.”

 

“Resolution of this self-disclosure underscores the Inspector General’s commitment to promoting data integrity and scientific principles in HHS-sponsored grants and in addressing fraud affecting any HHS program,” said Gregory E. Demske, HHS OIG Chief Counsel to the Inspector General. “We commend the institution’s efforts to self-examine and disclose in this case.”

 

“Today, Partners Healthcare and Brigham and Women’s Hospital resolved allegations of fraud perpetuated by several scientists who worked for them,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “This settlement demonstrates the FBI’s commitment to ensuring that taxpayer dollars are not wasted, and that organizations that receive these funds are truthful in their dealings with federal agencies like the NIH and in the research findings they present to the scientific community, and the public, as a whole.”

 

After learning of the allegations of research misconduct in the Anversa laboratory, BWH investigated the allegations, disclosed its concerns to the U.S. Department of Health and Human Services, Office of the Inspector General (OIG) and Office of Research Integrity, and then worked cooperatively with OIG and the Department of Justice to explain the bases for the allegations.

 

Acting U.S. Attorney Weinreb, HHS OIG Chief Counsel Demske and FBI SAC Shaw, made the announcement today. The matter was handled by Assistant U.S. Attorneys Gregg Shapiro and Vassili Thomadakis of Weinreb’s Office and OIG Attorney Kristen Schwendinger.

 

BOSTON – A Marshfield man was sentenced on Tuesday, April 25, 2017, in federal court in Boston in connection with trafficking heroin and fentanyl in Marshfield, Taunton and surrounding communities.

 

John A. Gray, Jr., 41, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to 77 months in prison and three years of supervised release. In January 2017, Gray pleaded guilty to a superseding indictment charging him with conspiracy to possess with the intent to distribute and distribution of heroin and fentanyl.

 

In October 2015, Gray was arrested and charged along with 24 others in connection with a heroin trafficking ring operating in southeastern Massachusetts. One additional defendant was added in a superseding indictment filed on April 20, 2016. These charges are the result of a 15-month investigation into heroin and fentanyl trafficking in Marshfield, Fall River, Taunton, and surrounding communities, which have seen an increase in opioid overdoses and related deaths since 2013.

 

Of the 26 defendants charged in the superseding indictment, 18 have pleaded guilty and seven, including Gray, have been sentenced.

 

Acting United States Attorney William D. Weinreb and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, made the announcement. Assistant U.S. Attorneys Thomas E. Kanwit, Katherine Ferguson and Ann Taylor of Weinreb’s narcotics and money laundering unit are prosecuting the case.

BOSTON – A member of MS-13’s Eastside Loco Salvatrucha (ESLS) clique in the metro Boston area, pleaded guilty today in federal court in Boston to RICO conspiracy and conspiracy to distribute cocaine.

 

Efrain Yanes-Vasquez, a/k/a “Caballo,” 35, an El Salvadorian national living in Chelsea and Pittsfield, Mass., pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy, and conspiracy to distribute cocaine. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for July 27, 2017. Under the terms of the plea agreement, parties both recommend that Yanes-Vasquesz be sentenced to 87 months in prison. He will also be subject to deportation upon completion of his sentence.

 

After a three-year investigation, Yanes-Vasquez was one of 61 defendants named in a superseding indictment targeting the criminal activities of alleged leaders, members, and associates of MS-13 in Massachusetts. According to court documents, MS-13 is a violent transnational criminal organization whose branches or “cliques” operate throughout the United States, including Massachusetts. MS-13 members are required to commit acts of violence against rival gang members to gain promotions and to maintain membership and discipline within the group. Specifically, MS-13 members are required to attack and murder rival gang members whenever possible. During the investigation, Yanes-Vasquez was identified as a member of the ESLS clique in the metro Boston area. In furtherance of the MS-13 RICO conspiracy, Yanes-Vasquez and several other MS-13 members conspired to transport and distribute kilogram-sized quantities of cocaine in Massachusetts and New Hampshire. When Yanes-Vasquez was arrested in Pittsfield, Mass. on Sept. 15, 2016, federal agents seized a loaded firearm from his residence.

 

The RICO conspiracy charge provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. The conspiracy to distribute cocaine charge provides for a sentence of no greater than 20 years in prison, at least three years of supervised release and a fine of $1 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

 

Yanes-Vasquez is the fifteenth defendant to plead guilty in this case.

 

Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Commissioner Thomas Truco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief Joseph Cafarelli; and Somerville Police Chief David Fallon made the announcement.

 

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

 

BOSTON – The former Postmaster of the U.S. Postal Service Post Offices in Blackstone and Jefferson, Mass., pleaded guilty yesterday in federal court in Worcester to stealing approximately $31,000 from the U.S. Postal Service.

 

Carlitos Molina, 36, pleaded guilty to one count of misappropriating postal funds. U.S. District Court Judge Timothy H. Hillman scheduled sentencing for July 20, 2017.

 

While he served as Postmaster, Molina stole 65 Postal money orders and used them to obtain cash for personal use, to pay for personal services and to pay personal debts. Specifically, Molina used stolen money orders to pay his home mortgage, water, cable, and electricity bills, back taxes, a collections agency to which he owed money, and for car repairs. In total, Molina embezzled approximately $31,000. In addition, when confronted by Postal management, Molina lied and stated that he had used certain money orders to pay for repairs to the post office facility.

 

The charging statute provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum 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 Eileen Neff, Special Agent in Charge for the U.S. Postal Service, Office of Inspector General, made the announcement. Assistant U.S. Attorney William F. Abely of Weinreb’s Worcester Branch Office is prosecuting the case.

 

BOSTON – A Canadian man was sentenced today in federal court in Boston in connection with a drug trafficking and money laundering organization that imported Canadian marijuana and MDMA, the club drug also known as “ecstasy” or “mollie,” into the United States.

 

Gursharan Singh, 33, of Toronto, Canada, was sentenced by U.S. District Court Judge Denise J. Casper to 70 months in prison, three years of supervised release and ordered to forfeit $240,000. In May 2014, Singh was arrested in Canada and, in July 2016, he was temporarily surrendered from Canada to the United States to plead guilty to the charges in the indictment and unrelated drug charges in U.S. District Court for the Western District of New York. In August 2016, he pleaded guilty to one count of conspiracy to distribute MDMA and marijuana and one count of money laundering conspiracy.

 

Beginning in the summer of 2011 to approximately March 2012, Singh agreed with co-conspirators to move MDMA and marijuana over the Canadian-U.S. border. Singh and a Canadian co-conspirator, David Nguyen, recruited couriers to drive MDMA and marijuana to Joshua Rabinovitch, a Salem, Mass., man, who sold the drugs and returned the proceeds to Canada. In March 2012, Singh and Nguyen recruited Shivinder Kanwal to drive 15 kilograms of MDMA to Rabinovitch in Boston. In April 2012, Singh and Nguyen separately recruited co-defendant, Adeel Bhutta, to pick up $240,000 in drug proceeds from Rabinovitch.

 

In July 2014, Bhutta was sentenced to 28 months in prison for his role in the money laundering conspiracy. In February 2015, Rabinovitch was sentenced to 24 months in prison for his role in the drug trafficking and money laundering conspiracies. In December 2016, Nguyen was sentenced to 120 months in prison for his role in the drug trafficking and money laundering conspiracies. Kanwal was sentenced to 24 months of probation for his role in the drug trafficking conspiracy.

 

Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. The U.S. Attorney acknowledges the Department of Justice’s Office of International Affairs for its assistance in securing Singh’s temporary surrender to the United States. Assistant U.S. Attorneys Seth B. Kosto and Timothy E. Moran of Weinreb’s Criminal Division prosecuted the case.

BOSTON – A Wellesley High School assistant track coach, who is also a former Harvard University track coach, was arrested and charged today with distribution and possession of child pornography.

 

Walter Johnson, 69, of Framingham, was arrested and charged by criminal complaint with one count of distribution of child pornography and one count of possession of child pornography. Johnson was detained following an initial appearance in federal court in Boston late this afternoon. U.S. District Court Magistrate Judge Marianne B. Bowler scheduled a detention and probable cause hearing for May 1, 2017.

 

According to the charging document, in January 2017, federal agents began an investigation into child pornography being traded by a Craigslist user. The investigation led to Johnson, a track coach at Wellesley High School and a former Harvard University track coach. Earlier this morning, federal agents executed a search warrant at Johnson’s home in Framingham. Johnson allegedly admitted to sending and receiving child pornography with various individuals he met on Craigslist. A preliminary on-scene forensic analysis confirmed child pornography on devices in his home.

 

Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.

 

The charge of distribution of child pornography provides for a mandatory minimum sentence of five years and no greater than 20 years in prison, five years to life of supervised release and a fine $250,000. The charge of possession of child pornography provides for a sentence of 10 years in prison, three years of supervised release and a fine $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

 

Acting United States Attorney William D. Weinreb and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. The case was investigated by HSI Boston’s Cyber Crimes and Child Exploitation Group, with the assistance of the Internet Crimes Against Children (ICAC) task forces from Massachusetts and Rhode Island, and the Framingham Police Department. The case is being prosecuted by Assistant United States Attorney Anne Paruti, Weinreb’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit.

 

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

 

BOSTON – A restaurant owner pleaded guilty today in federal court in Boston to tax and insurance fraud at 11 Boston-area restaurants and to committing visa and immigration fraud in an effort to remain in the United States unlawfully.

 

Hazrat Khalid Khan, 57, of Middletown, N.Y., a Pakistani national, pleaded guilty to a five-count Information charging him with conspiring to defraud the Internal Revenue Service, failing to collect and pay over taxes, committing mail fraud, making false statements on a naturalization application, and committing visa fraud. U.S. District Court Judge Rya W. Zobel scheduled sentencing for August 16, 2017.

 

Khan’s plea will resolve two open cases in the District of Massachusetts and one in the Southern District of New York. The whereabouts of two of his co-defendants, Khursed Iqbal, 57, and Rahman Zeb, 61, both Pakistani nationals, remains unknown.

 

According to the Superseding Information, Khan was the partial owner of 11 fried chicken takeout restaurants in the Boston-area, including Boston proper, Roxbury, Chelsea, and Mattapan. As part of a tax fraud scheme that ran for years, Khan and his co-conspirators - generally the managers of these restaurants - defrauded the government and avoided paying payroll and income taxes owed by the stores. They paid their employees in cash and provided tax preparers with false information about the restaurants’ payroll and income, thereby causing the tax preparers to file false tax returns.

 

Federal law requires employers to withhold payroll taxes, which includes Social Security and Medicare taxes, and then pay them over to the IRS. To avoid paying taxes, Khan and several co-conspirators falsely reported to the IRS the number of employees at their stores - some of whom were undocumented workers - and the wages they paid them. They also failed to file W-2s showing wages paid to employees and falsely described on tax returns their sales, total income, compensation of officers, salaries and wages, and taxable income. Khan and his co-conspirators also failed to withhold payroll taxes and pay them over to the IRS.

 

The charges of conspiracy and failure to collect or pay over taxes provide for a sentence of no greater than five years in prison; the charge of mail fraud provides for no greater than 20 years in prison; and the charges of naturalization and visa fraud provide for no greater than ten years’ imprisonment. Each of the charges also provides for supervised release for a maximum of three years, a fine, and restitution. Actual sentences for federal crimes are typically less than maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.

 

Acting United States Attorney William D. Weinreb; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; 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 Boston Police Commissioner William Evans, made the announcement. The case was investigated with the cooperation of the Massachusetts Insurance Fraud Bureau. Assistant U.S. Attorneys John A. Capin and Brian A. Pérez-Daple of Weinreb’s Criminal Division are prosecuting the case.

 

BOSTON – A member of MS-13’s Enfermos Criminales Salvatrucha clique in Chelsea, Mass., pleaded guilty today in federal court in Boston to RICO conspiracy involving the attempted murder of a rival gang member.

 

Angel Pineda, a/k/a “Bravo,” 21, a Honduran national who resided in Revere, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy, and admitted responsibility for the attempted murder of a rival 18th Street gang member in Chelsea in September 2014. U.S. District Court Judge F. Dennis Saylor IV Judge deferred accepting the defendant’s plea agreement until sentencing, and scheduled sentencing for July 26, 2017. If the court accepts the plea agreement, Pineda will be sentenced to 10 years in prison and will be subject to deportation after completion of his sentence.

 

After a three-year investigation, Pineda was one of 61 defendants named in a January 2016 superseding indictment targeting the criminal activities of alleged leaders, members, and associates of MS-13 in Massachusetts. According to court documents, MS-13 is a violent transnational criminal organization whose branches or “cliques” operate throughout the United States, including Massachusetts. MS-13 members are required to commit acts of violence against rival gang members to gain promotions and to maintain membership and discipline within the group. Specifically, MS-13 members are required to attack and murder rival gang members whenever possible. Pineda was a member of the Enfermos Criminales Salvatrucha clique in Chelsea. In furtherance of the MS-13 RICO conspiracy, on Sept. 8, 2014, Pineda and another MS-13 member, Jose Vasquez, a/k/a “Little Crazy,” attempted to murder a rival 18th Street gang member by stabbing him in Chelsea.

 

The RICO conspiracy charge provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000. 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.

 

Pineda is the fourteenth defendant to plead guilty in this case.

 

Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Commissioner Thomas Truco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief Joseph Cafarelli; and Somerville Police Chief David Fallon, made the announcement.

 

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