District of Massachusetts
Press releases recorded for this federal judicial district.
Boston Cab Dispatcher and Wife Sentenced for Marriage Fraud SchemeRead the Press Release
BOSTON – A Boston Cab dispatcher and his wife were sentenced today in U.S. District Court in Boston in connection with arranging a sham marriage for an Ethiopian relative so he could obtain legal status in the United States.
Girma Tilahun, 61, a dispatcher for EJT Management, Inc., which operates Boston Cab, and his wife, Wudnesh Wolde, 54, both of Cambridge, were sentenced by U.S. District Judge Denise J. Casper to two years of probation and ordered to perform 100 hours of community service. They were also ordered to pay $234,987 in unpaid federal income taxes, interest and penalties, and $62,340 to the U.S. Department of Housing and Urban Development (HUD) for Section 8 housing subsidies that they received but were not entitled to. In August 2016, both defendants pleaded guilty to one count of aiding and abetting marriage fraud.
Tilahun and Wolde are Ethiopian nationals who have been married since 1985 and are permanent resident aliens who have lived in the United States since 1999. In 2011, Tilahun recruited a former neighbor, who was a U.S. citizen, to enter into a sham marriage with a relative in Ethiopia and then to apply for the relative to obtain permanent resident status in the United States. The relative was an Ethiopian national who was born in 1977 and, as of 2011, had never lived in the United States and was not lawfully entitled to become a permanent resident alien of the United States. Tilahun informed Wolde of the arrangement and the plan to pay $25,000 to the U.S. citizen. Wolde agreed and assisted Tilahun in convincing the citizen to participate in the sham marriage arrangement.
The “marriage” of the U.S. citizen and Tilahun’s relative took place in Ethiopia in April 2011 and, on the basis of that sham marriage and a series of fraudulent submissions to the United States government, the relative was admitted to the United States in April 2012 and received permanent resident status. But, as Tilahun and Wolde knew, the relative and the citizen never intended to actually live as a married couple and never did live together. When the relative arrived in the United States in April 2012, he went to live with Tilahun and Wolde, not with his purported “wife.”
In addition, for approximately 15 years, Tilahun worked for EJT Management, Inc., which operated under the name Boston Cab and is the largest owner and operator of medallion taxi cabs in Boston. Tilahun was among those responsible for assigning cabs to drivers. Tilahun accepted “tips” from drivers who wished to promptly get a taxi for lease, amounting to several hundreds of thousands of dollars in income which Tilahun did not report on his tax returns. Tilahun received most of his wages from EJT off-the-books in cash, which he also did not report to the IRS. The tax loss totaled $234,987. In addition, Tilahun and Wolde lived in federally-subsidized housing in Cambridge and lied about their income in order to receive tens of thousands of dollars in HUD Section 8 housing subsidies to which they were not entitled. Among other things, Tilahun and Wolde certified that Tilahun’s income from EJT was the amount Tilahun was paid on-the-books but did not report the off-the-books wages. The subsidies for the period 2009 to 2013 amounted to $62,340. According to the terms of the plea agreement, Tilahun and Wolde are required to pay the IRS back taxes, interest and penalties, and to reimburse HUD for housing subsidies they had fraudulently received.
On Dec. 13, 2016, Edward Tutunjian, the owner and operator of Boston Cab, through his company EJT Management, Inc., was sentenced to 20 months of probation –18 months of which must be spent in a halfway house. Tutunjian and EJT also paid more than $2.3 million in restitution and Tutunjian was fined at least $28,999 up to a quarter of his income. Tutunjian pleaded guilty to several counts of tax evasion, employing illegal aliens and violating the Fair Labor Standards Act. EJT Management, Inc. pleaded guilty to aiding and abetting the theft of public money in connection with the HUD subsidies.
United States Attorney Carmen M. Ortiz; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development; Office of Inspector General, Northeast Regional Office; Nikitas Splagounias, Assistant Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Boston Police Commissioner William Evans; and Cambridge Police Acting Commissioner Christopher Burke, made the announcement today. The Wage and Hour Division and the Employee Benefits Security Administration of the Department of Labor also assisted with the investigation. Assistant U.S. Attorney Sandra S. Bower of Ortiz’s Economic Crimes Division prosecuted the case.
General Electric to Pay $2.5 Million to Resolve Claims Concerning Military Aircraft Engine ComponentsRead the Press Release
BOSTON – General Electric Corporation (GE), headquartered in Boston, has entered into an agreement to resolve violations concerning Department of Defense (DOD) contractual requirements.
GE will pay $2,550,180 to resolve claims that from July 1, 2010, through April 30, 2014, GE’s subsidiary, Avio Aero, in Italy, failed to consistently perform interim pressure tests on gearboxes used in T700 and F110 engines in DOD helicopters and fighter jets, respectively. The government alleges that Avio’s failure to conduct the pressure tests violated provisions of contracts GE entered into with the Army, Navy and Air Force. The United States further alleges that Avio did not provide notice of the skipped tests, but rather stamped documents to indicate that such testing had been conducted.
“By failing to conduct these pressure tests consistently, and representing that the tests had been completed, Avio deprived the United States military of the necessary information to evaluate whether or not to accept Avio’s parts for use in important military equipment,” said United States Attorney Carmen M. Ortiz. “We commend GE for bringing this issue to the government’s attention and for working proactively with us to resolve it.”
U.S. Attorney Ortiz; Michael Connor, Resident Agent in Charge of the U.S. Army Criminal Investigation Command; Leo Lamont, Special Agent in Charge of the U.S. Naval Criminal Investigative Service, Northeast Field Division; David Priest, Special Agent in Charge of the U.S. Air Force Office of Special Investigations; and Craig Rupert, Special Agent in Charge of the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office. The case was handled by Assistant U.S. Attorney Sonya A. Rao of Ortiz’s Civil Division.
Former Bank Teller Sentenced for EmbezzlementRead the Press Release
BOSTON – A former teller at Lenox National Bank in Lenox, Mass. was sentenced today in U.S. District Court in Springfield in connection with embezzling almost $300,000 from the bank.
Bernadine M. Powers, 41, of Becket, Mass., was sentenced by U.S. District Court Judge Mark G. Mastroianni to 18 months in prison, three years of supervised release, and ordered to pay $299,793 in restitution. In September 2016, Powers pleaded guilty to one count of conspiracy to embezzle funds from a bank.
Powers, a bank teller at Lenox National Bank, conspired with another bank teller, Melissa Scolforo, to embezzle money from the teller drawers and make false entries in bank records to hide the thefts. In January 2009, Scolforo began stealing the money, and Powers joined the scheme about a year later. The two tellers stole a total of $378,000 before the embezzlement was brought to light during a bank audit in November 2013. Lenox National Bank has since been acquired by Adams Community Bank.
Scolforo previously pleaded guilty to the same charge and is scheduled to be sentenced on Jan. 30, 2017.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Karen L. Goodwin of Ortiz’s Springfield Branch Office prosecuted the case.
Canadian Man Sentenced for Drug Trafficking and Money LaunderingRead the Press Release
BOSTON – A Canadian man was sentenced today in U.S. District Court in Boston in connection with his role in 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.
David Nguyen, 40, of Toronto, Canada, was sentenced by U.S. District Court Judge Denise J. Casper to 10 years in prison and ordered to pay a fine of $10,000. In October 2016, he pleaded guilty to one count of conspiracy to distribute MDMA and marijuana and one count of money laundering conspiracy. Nguyen was indicted in January 2014 and arrested in Canada in May 2014. In July 2016, Nguyen was ordered extradited, and in October 2016, he was temporarily surrendered from Canada to the United States.
From February 2010 to about March 2012, Nguyen conspired with others to move MDMA and marijuana over the Canadian-U.S. border. Nguyen and a Canadian co-conspirator, Gurshuran Singh, recruited couriers to drive MDMA and marijuana to Joshua Rabinovitch in Salem, Mass. Rabinovitch then sold the drugs in the U.S. and returned the proceeds to Canada.
In March 2012, Singh and Nguyen recruited Shivinder Kanwal to drive 15 kilos of MDMA to Rabinovitch and, in April 2012, they 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 and in February 2015, Rabinovitch was sentenced to 24 months in prison for his role in the drug trafficking and money laundering conspiracies. In August 2016, Singh pleaded guilty to participating in the drug and money laundering conspiracies and will be sentenced on April 5, 2017. Kanwal pleaded guilty to participating in the drug conspiracy and will be sentenced on March 22, 2017.
United States Attorney Carmen M. Ortiz and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. The Department of Justice’s Office of International Affairs provided assistance in securing Nguyen’s extradition to the United States. Assistant U.S. Attorneys Seth B. Kosto of Ortiz’s Cybercrime Unit and Timothy E. Moran of Ortiz’s Organized Crime and Gang Unit prosecuted the case.
Owner of Boston Forensic Accounting Firm Charged with Tax FraudRead the Press Release
BOSTON – The owner of a Boston forensic accounting firm was arrested today and charged with tax fraud.
James Carey, 49, a certified public accountant and owner of Carey & Company, was indicted on one count of filing a false federal tax return.
As alleged in the indictment, Carey & Company administered bank accounts on behalf of insurance companies into which the insurance companies and their clients could make deposits, and from which payments could be made on behalf of and to the insurance companies. In or about November 2009, a customer of one of the insurance companies sent Carey & Company a payment of $594,217 intended for the insurance company, but during the months that followed, Carey allegedly transferred almost all of that money out of the account and used it for his own purposes. The money Carey allegedly misappropriated from the insurance company was taxable income, and Carey failed to report this income on both his U.S. Individual Income Tax, Forms 1040, and U.S. Income Tax Returns for S Corporations, Forms 1120S, for 2009 and 2010.
The charging statute provides for a sentence of no greater than three years in prison, one year of supervised release and a fine of $100,000. Actual sentences for federal crimes are typically less than maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Joel Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorney Stephen Heymann of Ortiz’s Economic Crimes Unit is prosecuting the case.
The details contained in the Indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
U.S. Postal Service Worker Charged with Importing a Controlled SubstanceRead the Press Release
BOSTON – An employee of the United States Postal Service (USPS) was charged today in U.S. District Court in Boston in connection with purchasing and importing anabolic steroids.
John A. Psehoyas, 54, was charged with one count of importation of a controlled substance. According to the terms of the plea agreement also filed today, Psehoyas has agreed to plead guilty and resign from USPS. A plea hearing has not yet been scheduled.
According to the charging document, Psehoyas was a customer service supervisor at the Lynnfield, Mass. Post Office. From August 2014 to March 2016, Psehoyas purchased anabolic steroids, a controlled substance, from online sources. He had the parcels containing steroids shipped to him from China, Poland, Turkey and Romania. The parcels were addressed to multiple addresses to avoid suspicion, but Psehoyas tracked the parcels using a USPS tracking system.
The charging statute provides for a sentence of no greater than 15 years in prison, three years of supervised release and a fine of $500,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Eileen Neff, Special Agent in Charge of the Office of Inspector General for the U.S. Postal Service, made the announcement today. Assistant U.S. Attorney Eugenia M. Carris of Ortiz’s Public Corruption Unit is prosecuting the case.
The details contained in the Information are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Three Men Sentenced for Sex Trafficking of a MinorRead the Press Release
BOSTON – Three men were sentenced yesterday in U.S. District Court in Boston in connection with the sex trafficking of a minor.
“Sex traffickers routinely target the young and most vulnerable in our communities,” said Carmen M. Ortiz, U.S. Attorney for the District of Massachusetts. “I hope that these sentences send a strong message that the federal government will use all of the tools at its disposal to investigate and prosecute these predators.”
“These individuals preyed on a child with the intent of forcing the victim into a life of prostitution,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “They sought to victimize society’s most vulnerable for their own financial gain. The FBI, together with our law enforcement partners, is committed to identifying predators like these to disrupt and dismantle sex trafficking organizations impacting our communities.”
Tyrell Gorham, a/k/a Sheek, 31, of Lewiston, Maine, was sentenced by U.S. District Judge Allison D. Burroughs to 12 years in prison for one count of sex trafficking a minor. Lee Young, a/k/a Chop, 34, of Dorchester, Mass., and Chelanjei Greene, a/k/a Young, 34, of Brockton, Mass., were sentenced to eight years and six years, respectively, for one count each of conspiring to sex traffic a minor. Each defendant was also sentenced to five years of supervised release. On Sept. 21, 2016, Gorham, Young and Greene pleaded guilty.
An undercover law enforcement operation conducted in February 2015 identified a minor woman as a victim of a sex trafficking ring. Gorham recruited the minor from the Portland, Maine area, and Gorham and Young transported her and a friend to the Greater Boston area to work as prostitutes. With assistance from Greene, the minor and her friend posted an advertisement on Backpage.com, which was used to offer the sexual services of the women for a fee. The minor victim and her friend traveled to a motel in Woburn to meet a prospective client, however, the client was actually an undercover law enforcement officer.
The case was investigated by the Federal Bureau of Investigation’s Boston Child Exploitation Task Force (CETF). In addition to the FBI, significant investigative assistance was provided by; the Boston Police Department Child Abuse and Human Trafficking Units; the Arlington, Malden, Norwood, Revere, Saugus, Woburn, and Brockton Police Departments; and the Massachusetts State Police Human Trafficking Unit of the Massachusetts Attorney General’s Office.
U.S. Attorney Ortiz and FBI SAC Shaw made the announcement. Assistant U.S. Attorneys Timothy Moran and Emily Cummings of Ortiz’s Civil Rights Enforcement Team prosecuted the case.
Teamster Sentenced for Attempted Extortion of Reality Television Production CompanyRead the Press Release
BOSTON – A member of Teamsters Local 25 was sentenced today in U.S. District Court in Boston in connection with his attempted extortion of a reality television production company in June of 2014.
Mark Harrington, 62, of Andover, was sentenced by U.S. District Court Judge Douglas P. Woodlock to two years of probation with six months of home confinement, and ordered to pay a fine of $10,000 and restitution of $24,023. In November 2016, Harrington pleaded guilty to one count of attempted extortion.
In October 2015, Harrington was indicted along with John Fidler, Daniel Redmond, Robert Cafarelli, and Michael Ross for conspiring to extort and attempted extortion of money to be paid as wages for imposed, unwanted, and unnecessary and superfluous services from a reality television production company.
Beginning in spring 2014, a non-union production company began scouting locations to film a reality television show in Boston. A stage location was set up in Woburn, and a number of filming locations were chosen in and around the Boston area. In order to film in the City of Boston, permits must be approved by the City of Boston with the assistance of the Boston Film Bureau. In May 2014, with the necessary permits from the City of Boston, the company commenced filming at various locations in Boston. The company was scheduled to conduct further filming in the City of Boston, including at a hotel, a restaurant, and a college, in June 2014.
The company was not a signatory to any collective bargaining agreement with Local 25, and hired its own employees, including drivers, to produce and participate in the filming of the show.
On or about June 5, 2014, Redmond allegedly approached the production crew as they were filming at a Boston hotel and demanded that members of Local 25 be hired as drivers. Redmond insisted that one of the producers on set speak with Harrington, the secretary-treasurer of Local 25. Harrington advised the producer that he did not care about the company and that all he cared about was that some of his guys get hired on the show. The producer explained that all of the drivers had been hired and there was no work for Local 25 to perform. Redmond allegedly demanded to know where else the crew would be filming and threatened to shut the production down that night. During several subsequent telephone calls that same day, Harrington and another union official warned the producer that if the company did not make a deal with Local 25, they would start to follow them and picket.
On or about June 9, 2014, a representative from the City of Boston allegedly called a second Boston hotel to inform them that Local 25 was planning to picket the company’s filming at the hotel the following day. In turn, the hotel notified the company that, despite their prior agreement, it would no longer permit the filming because it did not want to be associated with a Local 25 picket. As a result, the company found a new location for filming outside the City of Boston. The City of Boston representative made similar calls to other locations the company planned to film at in June 2014.
In the early morning hours on June 10, 2014, a Local 25 official told a producer that Local 25 was aware that the company was preparing to film at a Milton restaurant, and Local 25 would be sending 50 men to picket. As a result of that conversation, the company hired a police detail for the filming. At 9:00 a.m. on June 10, 2014, defendants Harrington, Redmond, Fidler, Cafarelli and Ross showed up at the Milton restaurant. Two or three of the Local 25 defendants entered the production area and began walking in lockstep toward the doors of the restaurant where they chest-bumped and allegedly stomach-bumped production crew members in an attempt to forcibly enter the restaurant.
Throughout the morning, the Local 25 defendants allegedly continued to use and threaten to use physical violence against members of the crew and others; yelled profanities and racial and homophobic slurs at the crew and others; blocked vehicles from the entryway to the set and used actual physical violence and threats of physical violence to try and prevent people from entering the set. On one occasion, the Local 25 defendants prevented a food delivery truck from delivering food. The Local 25 defendants were also observed by the crew standing in close proximity to cars belonging to the crew, nine of which were later found to have had their tires slashed.
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.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Cheryl Garcia, Special Agent in Charge of the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigation, New York Regional Office; and Nikitas Splagounias, Assistant Special Agent in Charge of the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigation, made the announcement today. Assistant U.S. Attorneys Laura J. Kaplan and Kristina E. Barclay of Ortiz’s Criminal Division are prosecuting the case.
Mansfield Man Pleads Guilty to Threatening President of the United StatesRead the Press Release
BOSTON – A Mansfield man pleaded guilty today in U.S. District Court in Boston in connection with posting online threats to the President of the United States.
Andrew J. O’Keefe, 31, pleaded guilty before U.S. District Court Judge George A. O’Toole, Jr., who scheduled sentencing for March 16, 2017.
On May 13, 2015, an individual, later determined to be O’Keefe, posted a threat on an FBI website stating that he planned to kill President Barack Obama. On May 15, 2015, officers attempted to interview O’Keefe regarding the posting; however, O’Keefe refused to speak with them outside of his residence. A search warrant executed at O’Keefe’s home and vehicle resulted in the recovery of over 100 weapons including swords, double-edged knives, hatchets, spears, an air gun, and two laptop computers. O’Keefe was arrested on state charges and later charged federally.
The charging statute provides a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service; and Mansfield Police Chief Ronald A. Sellon, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crime Unit is prosecuting the case.
East Boston Woman Pleads Guilty to Defrauding Social SecurityRead the Press Release
BOSTON – An East Boston woman pleaded guilty today in U.S. District Court in Boston to fraudulently obtaining over $50,000 in Social Security benefits.
Patricia Grifoni, 53, pleaded guilty today to Social Security fraud before U.S. District Court Senior Judge Mark L. Wolf who scheduled sentencing for March 10, 2017.
In 1993, Grifoni began receiving Social Security Supplemental Security Income disability benefits on behalf of her disabled daughter. These benefits are based, in part, on the financial need of the family with whom the child lives. Beginning in 1995, Grifoni told Social Security that her husband no longer lived with her. Therefore, the Social Security Administration did not include her husband’s income when calculating her daughter’s benefits. In reality, Grifoni’s husband lived in the same household as Grifoni and their daughter since at least 2005, and his income would have made their daughter financially ineligible to receive benefits from 2005 to 2011. As a result, Grifoni illegally collected $51,530 in benefits on her daughter’s behalf.
The charge of Social Security fraud 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.
United States Attorney Carmen M. Ortiz and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Division, made the announcement today. Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit is prosecuting the case.
Washington D.C. Man Sentenced for Transporting Teenage Boy to Engage in Sexual ActivityRead the Press Release
BOSTON – A Washington D.C. man was sentenced today in U.S. District Court in Boston in connection with transporting a teenage boy from Maryland to Boston and other states to engage in sexual activity.
Jason Michael Wolf, 31, was sentenced by U.S. District Court Judge Allison D. Burroughs to 10 years in prison and 10 years of supervised release. Additionally, upon release from prison, Wolf will be required to register for life as a sex offender in any state in which he resides. In September 2016, he pleaded guilty to one count of transportation of a minor in interstate commerce to engage in illegal sexual activity.
On Aug. 17, 2015, the Massachusetts Bay Transportation Authority (MBTA) Police received information that an adult man and a minor were acting inappropriately at the South Station Bus Terminal. Law enforcement arrived on scene and interviewed the two individuals who were identified as Wolf and a 14-year-old boy from Maryland who was determined to be the subject of a missing persons report. The two admitted that they had met on a mobile dating app in July, traveled to Boston from Maryland, and engaged in sexual activity in Maryland, Washington D.C., New York and Boston.
In August 2015, Wolf was arrested by the Boston Police and charged with aggravated statutory rape of a child under state law. On Nov. 2, 2016, Wolf was convicted of statutory rape of a child and is set to be sentenced in state court on Jan. 6, 2017.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; Boston Police Commissioner William Evans; and Chief Kenneth Green of the MBTA Transit Police Department, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit prosecuted the case.
Former Internal Revenue Service Employee Sentenced for Disclosing Tax Return InformationRead the Press Release
BOSTON – A former IRS employee was sentenced today in U.S. District Court in Boston in connection with a conspiracy to abuse her position as an Internal Revenue Service customer representative to disclose tax return information to her boyfriend.
Nicole Johnson, 41, of Lawrence, was sentenced by U.S. District Court Judge Mark L. Wolf to two years of probation and termination of her employment at the IRS. In March 2016, Martin pleaded guilty to one count of conspiracy to commit unauthorized access to a government computer and one count of unauthorized disclosure of tax return information.
From January 2011 through April 2014, Johnson, an IRS customer service representative, disclosed tax return information to her boyfriend, Stephen Marshall, a debt collector. Johnson illegally used IRS systems to access tax return information belonging to her boyfriend’s former girlfriends, work colleagues and debtors from whom Marshall was assigned to collect debts, and provided the information to Marshall.
On Nov. 8, 2016, Marshall, of Lawrence, was sentenced by U.S. District Court Judge Allison D. Burroughs to two years of probation.
United States Attorney Carmen M. Ortiz and William Kalb, Special Agent in Charge of the United States Treasury Inspector General for Tax Administration, New York Field Division, made the announcement today. Assistant U.S. Attorneys Dustin Chao of Ortiz’s Public Corruption Unit and Giselle J. Joffre of Ortiz’s Major Crimes Unit prosecuted the case.
Two Boston Residents Plead Guilty to Selling Weapons Stolen from U.S. Army Facility in WorcesterRead the Press Release
BOSTON – Two individuals pleaded guilty today in U.S. District Court in Worcester in connection with the sale of machineguns and handguns stolen from the U.S. Armey Reserve Center in Worcester.
Tyrone James, 29, and Ashlee Bigsbee, 27, of Dorchester, pleaded guilty to conspiracy to possess, store and sell stolen firearms; the possession and sale of stolen firearms; and lying to federal agents. Tyrone James also pleaded guilty to being a convicted felon in possession of firearms. U.S. District Court Judge Timothy S. Hillman scheduled James’s sentencing for March 16, 2017, and Bigsbee’s sentencing for March 15, 2017.
On the night of Nov. 14, 2015, co-defendant James Morales broke into a weapons vault inside the Lincoln Stoddard United States Army Reserve Center on Lake Avenue North in Worcester and stole six M-4 Carbines and ten M-11 handguns.
On Nov. 18, 2015, Morales was located and arrested in Long Island, N.Y. Inside Morales’ vehicle, agents found four of the stolen M-4 Carbines and two of the stolen M-11 handguns. A fifth M-4 Carbine and two handguns were later turned in to the New York City Police Department by a concerned citizen. Upon Morales’s arrest he told law enforcement officers that Bigsbee and her boyfriend, who was later identified as James, had assisted him in selling the weapons.
Prior to travelling to New York, on the morning following the robbery, Morales visited Bigsbee and James at their home in Dorchester and proposed that they assist him with selling a number of the weapons he had stolen the night before. Bigsbee and James agreed to do so.
Bigsbee and James then contacted numerous individuals via text message offering to sell the firearms for well below the market and street value. Bigsbee and James’s phones were later found to contain text messages evidencing these efforts along with photographs which depicted: the stolen weapons lying on the kitchen table of their Dorchester apartment; Bigsbee holding one of the stolen M-11 handguns; and two of the stolen M-11 handguns lying on their bed. Through their efforts, Bigsbee and James arranged for Morales to sell a number of the handguns, and conducted the sales in their apartment on Nov. 15, 2015. In exchange for their assistance with selling the stolen weapons, Morales gave James and Bigsbee one of the M-4 Carbines. On the night of Nov. 15, 2015, or soon after, Bigsbee and/or James put the weapon in a duffle bag and brought it to the home of an acquaintance on Kingsdale Street in Dorchester who agreed to store the duffle bag.
During an interview on Nov. 20, 2015, Bigsbee and James lied to federal agents concerning their knowledge of the sale of the firearms. Following her arrest on Nov. 27, 2015, Bigsbee arranged to contact the acquaintance from Kingsdale Street asking him to leave the duffle bag outside on the sidewalk for police. Bigsbee then directed agents to Kingsdale Street, where the final M-4 Carbine was recovered from a duffle bag on the sidewalk.
The M-4 Carbine is a military weapon capable of firing a three bullet “burst” for each single pull of the trigger, which makes them machine guns under federal law.
The charges of being a felon in possession, possession of a machinegun, and possession of stolen weapons provide for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000 on each count. The charges of conspiracy to possess stolen weapons and making false statements provide for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000 on each count. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Richard McKeon, Superintendent of the Massachusetts State Police; Worcester Police Chief Steven M. Sargent; Boston Police Commissioner William Evans; Suffolk County Sheriff Steven W. Tompkins; and Cambridge Police Acting Commissioner Christopher Burke, made the announcement today. Assistant U.S. Attorney Mark Grady of Ortiz’s Worcester Branch Office is prosecuting the case.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
Owner of Boston Cab Sentenced for Tax and Fraud OffensesRead the Press Release
BOSTON – Edward J. Tutunjian, who has owned and operated Boston Cab through his company, EJT Management, Inc., for more than four decades, was sentenced today in U.S. District Court in Boston for payroll tax evasion, employing illegal aliens and for failing to pay overtime wages.
Tutunjian, 67, of Belmont, was sentenced by U.S. District Court Judge Douglas P. Woodlock to 20 months of probation, 18 months of which must be spent at Coolidge House, a community correctional facility in Boston. Tutunjian was also ordered to pay a fine of at least $28,999 per year to cover the cost of his confinement, or up to 25% of his income over the 18-month period, whichever is greater. Tutunjian already has paid $1,391,012 in restitution to the IRS for taxes, interest and penalties, and an additional $699,717 to the U.S. Department of Labor for distribution to employees for unpaid overtime wages. Tutunjian’s company, EJT, was also placed on 20 months of probation for aiding and abetting EJT employees in fraudulently obtaining housing subsidies for which they were not entitled. EJT has paid restitution of $219,307 to the U.S. Department of Housing and Urban Development (HUD).
In August 2016, Tutunjian pleaded guilty to five counts of tax evasion, one count of employing illegal aliens and one count of violating the Fair Labor Standards Act for failing to pay overtime wages. EJT Management, Inc. pleaded guilty to aiding and abetting the theft of public money.
Since approximately 1972, Tutunjian and EJT have operated the Boston Cab taxicab business in the greater Boston area. By 2014, Tutunjian and EJT owned approximately 372 taxi medallions – a government license permitting a car to be used to transport passengers for hire – which they leased to drivers and for which Tutunjian and EJT received millions of dollars in gross revenues each year, mostly in cash. Although the taxi drivers were self-employed, Tutunjian and EJT directly employed mechanics, dispatchers, office workers and others. A number of those employees were undocumented aliens who, because of their immigration status, were not authorized to work in the United States.
Tutunjian concealed the size of the company’s payroll from the IRS, and thereby concealed the amount of federal employment taxes he and EJT would be responsible for paying. He did this by paying employees entirely or partially in cash and keeping such cash payments off the books. By doing this, he ensured there would be no record of cash payments that could be inspected by the IRS. Employees who were illegal aliens, and therefore not authorized to work in the United States, were paid entirely in cash. EJT did not issue W-2 forms to those employees and did not withhold or pay federal income tax, Social Security tax, or Medicare tax with regard to those illegal alien employees.
Other employees who were U.S. citizens or legal permanent resident aliens received their wages partly in cash and partly by check. Tutunjian filed quarterly employment tax returns for EJT, which did not include the amounts that had been paid in cash to EJT employees. In this way, EJT evaded, and aided and abetted its employees in evading, approximately $739,204 in taxes from 2009 to 2013.
Tutunjian also did not pay the required overtime rate to employees who worked more than 40 hours a week. To conceal this, Tutunjian required certain employees to punch in 40 or fewer hours per week on an electronic time clock whose information was sent to the outside payroll company that prepared the payroll checks and W-2s, even though those employees had actually worked more than 40 hours per week, in some instances 50 or 60 hours a week. Tutunjian paid those workers in cash for their overtime hours, at the regular-time rate rather than the required time-and-a-half.
A number of EJT’s employees were living in federally subsidized housing in Cambridge and elsewhere, some of which had waiting lists for prospective tenants. The amount of the federal housing subsidy, as well as the eligibility to live in the units, depended on the tenant’s income. HUD did not rely solely on a tenant’s statement of his/her income, but also compared it to the tenant’s W-2 wages and generally required employers, such as EJT to, provide written verification. From January 2009 to about May 2013, EJT aided certain employees in receiving housing benefits to which they were not entitled, by providing payroll information, including W-2s, which did not reflect the wages paid to these employees in cash. Additionally, during the same period, EJT provided certifications to the state agency administering the housing subsidy program, which falsely reported the income of certain employees to be only the amounts paid by check, but which did not include the wages paid in cash.
United States Attorney Carmen M. Ortiz; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; Nikitas Splagounias, Assistant Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Boston Police Commissioner William Evans; and Acting Cambridge Police Commissioner Christopher Burke, made the announcement today. The Wage and Hour Division and the Employee Benefits Security Administration of the Department of Labor also assisted with the investigation. Assistant U.S. Attorney Sandra S. Bower of Ortiz’s Economic Crimes Unit prosecuted the case.
Former Framingham Housing Authority Employee Pleads Guilty to Embezzling Rent PaymentsRead the Press Release
BOSTON – A Milford woman pleaded guilty today in U.S. District Court in Boston in connection with embezzling over $70,000 in rent payments owed to the Framingham Housing Authority (FHA).
Rosa A. Famania, 33, pleaded guilty to one count of embezzling money from an agency receiving federal funds. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for March 14, 2017.
In February 2010, Famania began working for FHA as an accounting assistant. She resigned from her position in August 2015, shortly after FHA suspended her in connection with an internal investigation into missing rent payments. Famania’s responsibilities at the FHA included collecting cash rent payments from FHA tenants; recording these cash payments in the FHA electronic accounting system; securing these cash payments in a locked cash box; and depositing the cash payments into an FHA bank account.
Between February 2014 and August 2015, Famania stole approximately 181 cash rental payments totaling $70,649 from FHA and utilized an FHA accounting software program to assist in disguising the theft. When Famania came into possession of the rent payments, she did not deposit the payments into the FHA bank account. Instead, she kept the cash rent payments and adjusted the tenants’ balance downward utilizing the accounting software. Approximately $55,100 in cash was deposited into an account maintained by Famania between July 2014 and July 2015. From February 2014 to July 2014, nineteen U.S. Postal Service money orders totaling $17,900 were deposited into another bank account maintained by Famania.
The charge of embezzling money from an agency receiving federal funds provides a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000 and restitution. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Christina Scaringi, Special Agent in Charge of the United States Department of Housing and Urban Development, Office of Inspector General; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; Framingham Police Chief Kenneth Ferguson; and Executive Director of the Framingham Housing Authority Stephen G. Keane, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney William F. Bloomer of Ortiz’s Public Corruption Unit.
20 Individuals Charged with Trafficking Heroin and FentanylRead the Press Release
BOSTON – Twenty individuals were charged today in connection with trafficking heroin, Fentanyl and cocaine from Mexico and the Dominican Republic to Massachusetts and Rhode Island. In a series of arrests and searches conducted early this morning, approximately 8 kilograms of heroin, a number of firearms, and approximately $500,000 in cash, luxury vehicles, and Rolex watches were seized. One additional individual was arrested on state charges of trafficking in 220 grams or more of cocaine.
The following defendants were arrested today and charged in a federal criminal complaint with conspiring to distribute heroin, Fentanyl and cocaine:
- Deiby Victoria;
- Starling Bladmil Gonzalez, a/k/a “Bladi;”
- Domingo Depena Vega;
- Isidro Perez Montero;
- Charles Torres, a/k/a Daniel Bautista, a/k/a “Leo;”
- Ramon Arias, a/k/a “Mon;”
- Vinicio Baez;
- Julio Diaz, a/k/a “Alex Menan;”
- Jefferson Rodrigzuez;
- Jesus Sepulveda, a/k/a “Juan Carlos;”
- Santo Santana, a/k/a “El Viejo;”
- Jose Alamo, a/k/a “Necio;”
- Gilberto Torres, a/k/a “Julian;”
- Wellington Osnel Soto Aguasviva;
- Friman Gonzalez, a/k/a “Gordo;”
- Johan Montanez Pizzaro, a/k/a “Rubio;”
- Felix Salas Diaz;
- Amable Diaz, a/k/a “Nene;”
- Wilfredo Santana, a/k/a “Menor;” and
Hamlet Mendez Nova, a/k/a “Janle”
The following defendants were charged in two related indictments with conspiracy to distribute and possession with the intent to distribute heroin:
- Angela Cordero, of New York, NY (fugitive); and
- Carlos Cuevas, residence unknown (fugitive)
The following defendant was charged in a state criminal complaint with trafficking in 200 grams or more of cocaine:
- Euclides H. Lopes, of Lynn. Lopes was arraigned in Lynn District Court this afternoon and was held on $100,000 cash bail.
According to the affidavit, the investigation into Deiby Victoria and his associates began in February 2016. Victoria is alleged to be the head of a drug trafficking organization that imported large quantities of heroin, Fentanyl, and cocaine from Mexico and the Dominican Republic into the United States for distribution in the greater Boston area and in Providence, R.I. The primary purpose of Victoria’s organization was the wholesale distribution of large amounts of heroin and Fentanyl, not retail sales to users or addicts.
Victoria and his associates distributed drugs through several traditional means, such as couriers and stash houses, however they also used novel techniques, including distributing drugs at what purported to be a used car business in Dorchester. The members of the organization collected payments and then directed drug buyers to the cars in which the drugs were hidden. The business and the used cars were seized earlier today.
Victoria and his associates also used international money launderers to launder drug proceeds and pay drug suppliers. Starling Bladmil Gonzalez (Bladi) was Victoria’s partner and brother-in-law. During intercepted conversations, Victoria and Bladi were heard routinely discussing the purchase and distribution of drug shipments, as well as the collection of debts from their customer base, and payments of the drug debts they owed to their suppliers. Victoria and his associates employed a number of people to distribute drugs and collect money.
During the investigation, heroin and drug proceeds from various members of Victoria’s organization were seized. For example, on June 9, 2016, approximately one kilogram of heroin was seized from Angela Cordero, who was a courier for the New York-based organization that supplied Victoria and his associates. On Oct. 6, 2016, three kilograms of heroin which had been supplied by Montero, were seized from Victoria. In intercepted calls following this particular drug seizure, Montero warned Victoria that the drugs belonged to “people [who were] very dangerous.” Subsequent discussions revealed that the seized heroin had been supplied by Mexican drug distributors. On Nov. 7, 2016, investigators seized $300,854 in drug proceeds from a money courier immediately after he collected a drug debt from Charles Torres.
The federal charges of conspiracy to distribute and possess with intent to distribute heroin, Fentanyl, and cocaine provides a sentence of no greater than 20 years in prison, up to a lifetime of supervised release and a fine of $1 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; 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; John Gibbons, U.S. Marshal for the District of Massachusetts; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Boston Police Commissioner William B. Evans; and Natick Police Chief James G. Hicks. The U.S. Attorney’s Office would also like to acknowledge the assistance and cooperation of Attorney General Maura Healey’s Office.
Assistant U.S. Attorneys Leah B. Foley and Nathaniel R. Mendell of Ortiz’s Narcotics and Money Laundering Unit are prosecuting the cases.
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.
Chelsea Man Arrested for Multiple Bank RobberiesRead the Press Release
BOSTON – A Chelsea man, dubbed the “Spelling Bee Bandit,” was arrested and charged today in connection with four bank robberies in the Greater Boston area.
Jason S. Englen, 34, was charged with the robberies of: TD Bank in Arlington on Oct. 31, 2016; TD Bank in Reading on Nov. 5, 2016; Salem Five in Burlington on Nov. 7, 2016; and TD Bank in Peabody on Nov. 13, 2016. A probable cause and detention before U.S. District Court Magistrate Judge Marianne B. Bowler will continue tomorrow.
According to court documents, on Oct. 31, 2016, a man entered a branch of TD Bank in Arlington, approached a teller and presented a note written on a deposit slip with the word “ROBERY” written on it. The teller handed the man money from the drawer and he fled the bank. Following the robbery, the man’s image was circulated on public websites seeking information about his identity. Nearly identical incidents occurred on Nov. 5th at a branch of TD Bank in Reading, on Nov. 7th at a branch of Salem Five in Burlington, and on Nov. 13th at a branch of TD Bank in Peabody. During each robbery, the man handed the teller a note with the word “ROBERY” or “ROBERT” demanding cash. During the last robbery, the man told the teller he wanted $20 and $50 dollar bills. Following each robbery, the man’s image was circulated on public websites seeking information about his identity.
Based on the similarity of the robberies and the physical description of the robber provided by the bank tellers, a bulletin was circulated seeking the public’s help in identifying the perpetrator. As a result, law enforcement received information that the individual involved in the robberies was Englen. Englen, who was already in state custody on unrelated charges, was arrested by federal authorities today.
The charging statute provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 and restitution. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge bases upon the US Sentencing guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Suffolk County Sheriff Steven Tompkins; Arlington Police Chief Frederick Ryan; Reading Police Chief Mark D. Segalla; Burlington Police Chief Michael Kent; and Peabody Police Chief Thomas Griffin, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit is prosecuting the case.
Two Men Agree to Plead Guilty to Oxycodone ConspiracyRead the Press Release
BOSTON – A Medford man and a Pembroke man pleaded guilty yesterday in U.S. District Court in Boston to an oxycodone conspiracy.
Christopher Alonardo, 36, of Medford, agreed to plead guilty to conspiracy to possess with intent to distribute and to distribute oxycodone, and possession with intent to distribute oxycodone. U.S. District Judge George A. O’Toole, Jr., deferred accepting Alonardo’s plea until sentencing on March 16, 2017. Kevin Stevens, 51, of Pembroke, pleaded guilty in a separate hearing to conspiracy to possess with intent to distribute and to distribute oxycodone. Judge O’Toole scheduled Stevens’s sentencing for March 28, 2017.
Alonardo and Stevens admitted to conspiring with each other from approximately August 2015 through March 2016. Stevens was stopped by the Massachusetts State Police on Nov. 5, 2015, and was found in possession of 175 30mg pills of oxycodone that were intended for redistribution.
The charge of conspiring to and possessing with intent to distribute oxycodone provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release and a fine of $1 million. Actual sentences for federal crimes are typically less than the maximum penalty. Sentences are imposed by a federal district judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; 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. Assistance with the investigation was also provided by the Internal Revenue Service’s Criminal Investigation, the Massachusetts Department of Correction, and the Boston, Medford and Quincy Police Departments. Assistant U.S. Attorney Timothy E. Moran of Ortiz’s Organized Crime and Gang Unit is prosecuting the case.
Pharmaceutical Executives Charged in Racketeering SchemeRead the Press Release
BOSTON – Several pharmaceutical executives and managers, formerly employed by Insys Therapeutics, Inc., were arrested today on charges that they led a nationwide conspiracy to bribe medical practitioners to unnecessarily prescribe a fentanyl-based pain medication and defraud healthcare insurers.
The indictment alleges that Michael L. Babich, 40, of Scottsdale, Ariz., the former CEO and President of the company; Alec Burlakoff, 42, of Charlotte, N.C., former Vice President of Sales; Richard M. Simon, 46, of Seal Beach, Calif., former National Director of Sales; former Regional Sales Directors, Sunrise Lee, 36, of Bryant City, Mich. and Joseph A. Rowan, 43, of Panama City, Fla.; and former Vice President of Managed Markets, Michael J. Gurry, 53, of Scottsdale, Ariz., conspired to bribe practitioners in various states, many of whom operated pain clinics, in order to get them to prescribe a fentanyl-based pain medication. The medication, called “Subsys,” is a powerful narcotic intended to treat cancer patients suffering intense episodes of breakthrough pain. In exchange for bribes and kickbacks, the practitioners wrote large numbers of prescriptions for the patients, most of whom were not diagnosed with cancer.
The indictment also alleges that the now former corporate executives charged in the case conspired to mislead and defraud health insurance providers who were reluctant to approve payment for the drug when it was prescribed for non-cancer patients. They achieved this goal by setting up the “reimbursement unit” which was dedicated to obtaining prior authorization directly from insurers and pharmacy benefit managers.
“Patient safety is paramount and prescriptions for these highly addictive drugs, especially Fentanyl, which is among the most potent and addictive opioids, should be prescribed without the influence of corporate money,” said United States Attorney Carmen M. Ortiz. “I hope that today’s charges send a clear message that we will continue to attack the opioid epidemic from all angles, whether it is corporate greed or street level dealing.”
“As alleged, top executives of Insys Therapeutics, Inc. paid kickbacks and committed fraud to sell a highly potent and addictive opioid that can lead to abuse and life threatening respiratory depression,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “In doing so, they contributed to the growing opioid epidemic and placed profit before patient safety. These indictments reflect the steadfast commitment of the FBI and our law enforcement partners to confront the opioid epidemic impacting our communities, while bringing to justice those who seek to profit from fraud or other criminal acts.”
“We take allegations of paying kickbacks to physicians in exchange for prescribing medically unnecessary painkillers extremely seriously,” said Special Agent in Charge Phillip Coyne of the U.S. Department of Health and Human Services, Office of the Inspector General. “Working closely with our law enforcement partners, we will continue to protect the health of Medicare beneficiaries and the integrity of the nation’s healthcare system.”
The defendants were arrested this morning in their respective states and will appear in U.S. District Court in Boston at a later date. Babich is charged with conspiracy to commit racketeering, conspiracy to commit wire and mail fraud and conspiracy to violate the Anti-Kickback Law; Burlakoff, Simon, Lee and Rowan are charged with RICO conspiracy, mail fraud conspiracy and conspiracy to violate the Anti-Kickback Law; Gurry is charged with RICO conspiracy and wire fraud conspiracy.
The indictment also alleges that the conspiracy to bribe practitioners and to defraud insurers generated substantial profits for the defendants, their company, and for the co-conspirator practitioners.
“Causing the unnecessary use of opioids by current and retired U.S. military service members shows disregard for their health and disrespect for their service to our country,” said Special Agent in Charge Craig Rupert of the Defense Criminal Investigative Service (DCIS), Northeast Field Office. “DCIS will continue to partner with the DOJ and our fellow law enforcement agencies to address conduct such as this and protect America's Warfighters.”
“EBSA is very pleased to had the opportunity work collaboratively with our law enforcement partners in this important investigation,” said Susan A. Hensley, Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office.
“I commend the exceptional work performed by our criminal investigators and their law enforcement partners,” said Scott Rezendes, Special Agent in Charge of the U.S. Office of Personnel Management, Office of Inspector General, Office of Investigations. “It is utterly unacceptable to risk the safety and well-being of patients in order to increase profits. This office will continue to vigorously pursue any and all cases that may jeopardize the health of Federal employees, annuitants, and their families.”
“U.S. Postal Inspection Service is committed to protecting the nation’s mail system from criminal misuse,” said Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service. “This investigation is an excellent example of a partnership between government agencies working together to dismantle prescription drug practices that directly contribute to the ongoing opioid abuse epidemic.”
“The United States Postal Service, Office of Inspector General will continue to vigorously investigate companies that engage in improper relationships with medical providers for the purpose of increasing market share as alleged in this case,” said Eileen Neff, Special Agent in Charge of the U.S. Postal Service Office of Inspector General. “We thank our law enforcement partners for their help in preventing this type of fraud against the healthcare programs of the American public and the Postal Service.”
“Misrepresenting a patient's diagnoses and using kickbacks to prescribing doctors to inflate drug sales is fraudulent activity,” said Donna L. Neves, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office. “Targeting veterans’ dependents using CHAMPVA with these type techniques is unacceptable. We are pleased to have contributed to this outstanding multi-agency criminal investigation and will continue to pursue allegations of health care fraud that put our veterans and their families at risk.”
On the charges of conspiracy to commit RICO and conspiracy to commit mail and wire fraud, the charging statute provides a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000, or twice the amount of pecuniary gain or loss. On the counts of conspiracy to violate the Anti-Kickback Law, the charging statute provides a sentence of up to five years in prison, three years of supervised release and a $25,000 fine. 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.
The investigation was conducted by a team that included the FBI; HHS-OIG; FDA Office of Criminal Investigations; the Defense Criminal Investigative Service; the Drug Enforcement Administration; the Department of Labor, Employee Benefits Security Administration; the Office of Personnel Management; the U.S. Postal Inspection Service; the U.S. Postal Service Office of Inspector General; and the Department of Veterans Affairs. The U.S. Attorney would like to acknowledge the outstanding cooperation and assistance of the U.S. Attorney’s Offices around the country engaged in parallel investigations, including the District of Connecticut; the Eastern District of Michigan; the Southern District of New York; and the Southern District of Alabama. The efforts of the Central District of California and the Civil Fraud Section of the Department of Justice are also greatly appreciated.
Assistant U.S. Attorneys K. Nathaniel Yeager, Chief of Ortiz’s Health Care Fraud Unit, and Susan M. Poswistilo, of Ortiz’ Civil Division, are 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.
Four Boston-Area Men Detained on Firearm OffensesRead the Press Release
BOSTON – Four Boston-area men appeared in U.S. District Court in Boston on Tuesday, Dec. 6, 2016, in connection with gun trafficking in Boston’s Charlestown neighborhood.
“Every illegal firearm on the street poses a danger to the community,” said United States Attorney Carmen M. Ortiz. “We will continue to pursue those who circumvent the legal process to sell firearms on our streets thereby endangering the children and families who call these neighborhoods home.”
“This investigation targeted the intersection of illegal guns and illicit drugs,” said Suffolk County District Attorney Daniel F. Conley. “The violence and despair associated with the drug trade have claimed too many lives. In Charlestown and across Suffolk County, we will continue to work with our local and federal partners to protect the rights of good and decent people to live, work, and go to school free of fear and intimidation from drug dealers and armed offenders.”
“Thursday’s arrests demonstrate the effective law enforcement partnerships ATF has with the Boston Police Department Violent Youth Strike Force and the Boston Housing Authority Police, in identifying and investigating armed narcotic trafficking criminal street gangs in the City of Boston” said Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division. “We will continue our efforts to dismantle these violent criminal street gangs and their illegal possession, use and trafficking of firearms.”
Samuel Jean, 22, of Everett, and Deon Young, 32, of Hyde Park, were charged with conspiracy and dealing in firearms without a federal license. Jeffrey Joseph, 31, of Boston, was charged with dealing in firearms and ammunition without a federal license and being a prohibited person in possession of firearms. Troy Armstrong, 27, of Boston, was charged with being a felon in possession of firearms. The defendants were arrested on Thursday, Dec. 1, 2016.
In a series of probable cause and detention hearings held on Dec. 5 and 6, 2016, before U.S. District Court Magistrate Judge Donald L. Cabell, the Court found probable cause that Jean, Young and Armstrong committed the offenses as charged in their respective criminal complaints. All three men have been ordered detained pending trial. The probable cause and detention hearing for Joseph is scheduled for December 12 at 2:00pm.
According to court documents and testimony at the hearings, in April 2016, law enforcement officers commenced an investigation of drug and firearm trafficking in the Bunker Hill Housing Authority neighborhood of Charlestown with the use of a cooperating witness (CW) who made controlled buys of guns and drugs at the direction of law enforcement. During the controlled purchases, which were recorded on video, Jean and Joseph sold seven firearms to the CW over a one-month period, including at least one stolen firearm. Young and Armstrong sold two firearms to the CW during approximately the same period, including one firearm with an obliterated serial number. Joseph and Armstrong are both also charged with being prohibited persons in possession of a firearm as a result of their criminal histories, and Joseph is the subject of an outstanding civil restraining order.
The charges of conspiracy and dealing in firearms without a federal license each provide 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 being a felon in possession of a firearm provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $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.
U.S. Attorney Ortiz; Suffolk County DA Conley; ATF SAC Leadingham; and Boston Police Commissioner William Evans, made the announcement today. Assistant U.S. Attorney Lori Holik, Chief of Ortiz’s Major Crimes Unit, is prosecuting the cases.
The details contained in the charging document are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Stoughton Man Sentenced for Serial Bomb ThreatsRead the Press Release
BOSTON – A Stoughton man was sentenced today in U.S. District Court in Boston for emailing bomb threats to multiple schools and universities in three different states.
Anthony Rae, 25, was sentenced by U.S. District Court Judge Indira Talwani to time served, approximately 17 months, in prison and three years of supervised release. In October 2016, he pleaded guilty to five counts of sending bomb threats.
Over the course of nine months, Rae used several different email accounts to send bomb threats to educational institutions in three different states. In October 2014 Rae sent two emails from a Gmail account he created threatening to bomb an elementary school in Chicago, Ill., and several public schools in Norwood, Mass. Subsequently, Rae hacked his mother’s Hotmail account and used it to send two separate bomb threats to his own school – ITT Technical Institute in Norwood.
In June 2015, law enforcement officers obtained a search warrant for Rae’s residence and seized numerous electronic devices. The following day, Rae used a computer available to tenants in his apartment complex to send a bomb threat to Rhode Island College in Providence. On June 19, 2015, he was arrested and charged in state court for the Massachusetts’ threats and in October 2015, Rae was charged federally.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. This case was also investigated by the Chicago Police Department’s Arson Section, Norwood and Stoughton Police Departments, Rhode Island State Police Computer Crimes Unit, and the Rhode Island College and North Carolina State University Campus Police Departments. Significant assistance was also provided by the Massachusetts Metropolitan Law Enforcement Council’s Cyber Crimes Unit and the Norfolk District Attorney’s Office. Assistant United States Attorney Jordi de Llano of Ortiz’s Criminal Division prosecuted the case.
Boston Man Pleads Guilty to Multi-Million Dollar Scheme to Defraud Brokerage FirmsRead the Press Release
BOSTON – A Boston man pleaded guilty today in U.S. District Court in Boston in connection with a three-year, multi-million-dollar fraud scheme.
Nathanial Ponn, 28, pleaded guilty to three counts of wire fraud. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for March 1, 2017.
From 2012 to April 2015, Ponn opened more than 400 brokerage accounts at nine investment firms throughout the United States, using false names, Social Security numbers, assets and income to open many of them. These firms allowed customers to transfer funds from one financial institution into the customer’s brokerage account through an Automated Clearing House (ACH) transfer, by providing the account number and financial institution where the account was held and the amount to be transferred. Between February 2014 to April 2015, Ponn provided ACH transfer information to brokerage firms for accounts he opened on more than 350 occasions, totaling more than $8.5 million in attempted transfers. In each instance, the bank account Ponn provided did not have the amount of funds requested or, in some circumstances, did not even exist. Although the ACH transfers were rejected, the fraudulent transfers created the false appearance that the brokerage accounts had cash available to purchase securities.
Through this scheme, Ponn was able to purchase securities totaling more than $2.7 million in accounts at eight investment firms. When the firms discovered that the ACH transfers were rejected, they liquidated the securities in Ponn’s accounts. As part of the scheme, Ponn also attempted, unsuccessfully, to get the brokerage firms to send him checks totaling about $250,000, based on the same false ACH information.
The 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 $1 million on each count. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Attorney’s Office received valuable assistance from the Securities and Exchange Commission, which filed a civil action against Ponn in March 2016 arising out of the scheme to defraud investment firms.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Mark J. Balthazard of Ortiz’s Economic Crimes Unit is prosecuting the case.
Maine Man Pleads Guilty to Child Pornography ChargesRead the Press Release
BOSTON – A Maine man pleaded guilty yesterday in U.S. District Court in Boston in connection with enticing minors to engage in illicit sexual conduct.
Dillan Letellier, 32, of Saco, Maine, 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. U.S. District Court Judge George A. O’Toole, Jr., scheduled sentencing for March 27, 2017.
Letellier admitted to pretending to be a seventeen-year-old when he met two fourteen-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 minor 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 defendant’s residence revealed thousands of child pornographic images and videos.
The charges of coercion and enticement and attempted coercion and enticement each provide for a mandatory minimum of 10 years in prison and no greater than life, a mandatory minimum of five years and up to a lifetime of supervised release and a fine of $250,000. The charge of traveling with intent to engage in illicit sexual conduct provides for a sentence of no greater than 30 years in prison, a mandatory minimum of five years and up to a lifetime of supervised release and a fine of $250,000. The charge of possession of child pornography provides for a sentence of no greater than 20 years in prison; a mandatory minimum of five years and up to a lifetime of supervised release and a fine of $250,000. He will also be required to register as a sex offender. 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 Carmen M. Ortiz and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement. The Saco 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 Ortiz's Major Crimes Unit are prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Lynn Man Sentenced for Stealing Veteran BenefitsRead the Press Release
BOSTON – A Lynn man was sentenced today in U.S. District Court in Boston in connection with stealing nearly $80,000 in veteran benefits.
John Ladd, 73, was sentenced by U.S. District Court Judge Douglas P. Woodlock to one year of probation with the first six months to be served in home confinement, and ordered to pay $79,958 in restitution to the U.S. Department of Veterans Affairs. In August 2016, Ladd pleaded guilty to stealing public money.
In 2009, Ladd’s neighbor was receiving monthly veteran benefits when she died; however, the U.S. Department of Veterans Affairs was not properly notified of the death therefore, her benefits each month continued to be deposited into her bank account. Ladd had been assisting his neighbor before her death, and this enabled him to access her checkbook. Although Ladd was not entitled to his neighbor’s veteran benefits, he routinely wrote checks to himself from his neighbor’s account after her death, forging her signature on each check. Ladd then deposited the checks into his own bank accounts. Ladd ultimately wrote himself 70 checks totaling $79,958.
United States Attorney Carmen M. Ortiz and Donna Neves, Special Agent in Charge of the Department of Veterans Affairs, Office of the Inspector General, Northeast Field Office, made the announcement today. Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit prosecuted the case.
Two Men Sentenced for Sex TraffickingRead the Press Release
BOSTON – A Brockton man and a Boston man were sentenced in U.S. District Court in Boston for sex trafficking.
Kwamaine J. Wells, 27, of Brockton, was sentenced today by U.S. District Court Judge Denise J. Casper to 135 months in prison and five years of supervised release. Akil J. DeCoteau, 28, of Boston, was sentenced yesterday by Judge Casper to 18 months in prison and five years of supervised release. In September 2016, Wells and DeCoteau pleaded guilty to conspiracy and transportation of an individual with intent to engage in prostitution.
Between April 2013 and February 2014, Wells transported four women between Maine, Massachusetts and New York with the intent that they engage in prostitution, and used force and threats to coerce two of the women to work around the clock as prostitutes for him. Wells sought out women who were specifically vulnerable, due to either estrangement from family or drug addiction, and recruited them to work as prostitutes for his sole financial benefit by promising them a lavish lifestyle or access to drugs. Wells rented hotel rooms and posted advertisements online offering sex with the women for a fee. Wells charged men between $100 and $200 to have sex with the women, and kept all of the money. Wells also withheld drugs from the women if they did not earn enough money from prostitution.
Wells also conspired with DeCoteau to transport women between Massachusetts, New Jersey and New York with the intent that they engage in prostitution. In January 2014, DeCoteau recruited a woman he knew to be addicted to drugs to work for him as a prostitute, offering her food, shelter and drugs in exchange. Over a two-week period, DeCoteau prostituted the woman in hotels in Maine, Massachusetts and New York. In each location, DeCoteau posted advertisements online offering sex with the woman for a fee, and then kept the money she received.
United States Attorney Carmen M. Ortiz; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorneys Miranda Hooker and Leah Foley of Ortiz’s Civil Rights Enforcement Team prosecuted the case.
Former Town Administrator for Nahant and Saugus Pleads Guilty to Filing False Tax ReturnsRead the Press Release
BOSTON – A Nahant man pleaded guilty today in U.S. District Court in Boston in connection with failing to report over $375,000 of his income on his federal tax returns from 2010 to 2013.
Andrew R. Bisignani, 70, pleaded guilty to four counts of filing false tax returns. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Feb. 14, 2017.
Bisignani, the former town administrator of Nahant and Saugus, admitted that from 2010 to 2013, he collected rental income from three real properties in Revere, Mass. During the same years, Bisignani collected interest and loan income by making multiple, private, short-term loans that were secured by Massachusetts real estate. Bisignani underreported his total rental real estate income when submitting his individual tax returns to the IRS in 2010, 2011, 2012 and 2013. He also underreported the interest income he received in connection with his private loans for 2010, 2011 and 2012.
The charging statute provides for a sentence of no greater than three years in prison, one year of supervised release and a fine of $100,000. Actual sentences for federal crimes are typically less than maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Kristina E. Barclay of Ortiz’s Public Corruption Unit is prosecuting the case.
Cape Man Pleads Guilty to Killing Protected Red Tailed HawkRead the Press Release
BOSTON – A Brewster man pleaded guilty and was sentenced yesterday in U.S. District Court in Boston in connection with killing a red tailed hawk, a protected migratory bird.
Richard Warburton, 75, pleaded guilty to one count of killing a red tailed hawk and was sentenced by U.S. District Court Magistrate Judge Marianne B. Bowler to pay a fine of $200 and restitution of $266.
Warburton admitted that on Feb.17, 2016, he shot a red tailed hawk near Airline Road in Brewster, Mass. The bird, a protected species under the Migratory Bird Treaty Act, had to be euthanized following the shooting. Warburton also admitted that the shooting was not an isolated incident.
“One of our many responsibilities is to enforce laws that protect New England’s unique wildlife,” said United States Attorney Carmen M. Ortiz. “We will continue to collaborate with our law enforcement partners to safeguard the precious wildlife and ecosystems of our state for future generations.”
“This case is yet another example of the cooperative investigative efforts of the Massachusetts Environmental Police and the U.S. Fish & Wildlife Service,” said David Sykes, New England Resident Agent in Charge of the U.S. Fish and Wildlife Service, Office of Law Enforcement. “These majestic birds of prey are an important link in our ecosystem and today’s plea is a success in our collective efforts to conserve and protect them.”
United States Attorney Carmen M. Ortiz and David Sykes, Resident Agent in Charge of U.S. Fish and Wildlife Service, Office of Law Enforcement, New England Field Office, made the announcement. Assistant U.S. Attorney Lori J. Holik, Chief of Ortiz’s Major Crimes Unit, prosecuted the case.
Rehoboth Woman Convicted of Social Security FraudRead the Press Release
BOSTON – A Rehoboth woman was convicted today by a federal jury in U.S. District Court in Boston in connection with illegally collecting more than $29,000 in Social Security benefits.
Joanna Boyer, 44, was convicted following a three-day jury trial of one count of Social Security Fraud, two counts of making false statements and one count of theft of public money. U.S. District Judge Denise J. Casper scheduled sentencing for March 8, 2017.
From 2010 to 2015, Boyer collected Supplemental Security Income (SSI) benefits, which are only available to people with limited financial means. While collecting these need-based benefits, Boyer concealed the fact that she owned a condominium in Fall River, Mass. On two occasions, when directly asked by Social Security personnel about her property ownership, she denied owning any real estate other than her house in Rehoboth. As a result, she collected more than $29,000 in benefits that she was ineligible to receive.
The charges of Social Security fraud and making false statements each provide for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of theft of public money provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. 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 Carmen M. Ortiz and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Division made the announcement today. Special Assistant U.S. Attorney Timothy Landry and Assistant U.S. Attorney Anne Paruti of Ortiz’s Major Crimes Unit are prosecuting the case.
MS-13 Member Pleads Guilty in Connection with Assaulting Gang Rival and Selling CocaineRead the Press Release
BOSTON – A member of La Mara Salvatrucha, or “MS-13,” pleaded guilty on Monday, Nov. 28, 2016, in connection with attempting to murder a gang rival in Chelsea in 2015 and distributing cocaine.
Jose Hernandez-Miguel, aka “Muerto,” 31, of Chelsea, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity (a/k/a racketeering conspiracy), conspiracy to distribute five kilograms or more of cocaine, and conspiracy to distribute cocaine and cocaine base. U.S. District Court Judge F. Dennis Saylor, IV scheduled sentencing for Feb. 21, 2017.
After a three-year investigation, Hernandez-Miguel was one of 56 people 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, Hernandez-Miguel was identified as a member of MS-13’s Eastside Loco Salvatrucha (ESLS) clique. As an ESLS member, Hernandez-Miguel participated in violent ceremonies inducting new gang members, known as “jumping in,” and paid dues to fund MS-13 activities in Massachusetts and in El Salvador. As part of his plea agreement, Hernandez-Miguel admitted that he and other MS-13 members attempted to murder a gang rival by stabbing him near Highland Park in Chelsea on May 12, 2015. Hernandez-Miguel also admitted that he conspired to distribute five kilograms or more of cocaine, and conspired with other Chelsea-based drug traffickers to distribute cocaine and cocaine base to a cooperating witness.
An August 2016 superseding indictment brings the total number of defendants in the case to 61. Hernandez-Miguel is the seventh defendant to plead guilty.
The RICO conspiracy charge provides 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 five kilograms or more of cocaine charge provides for a mandatory minimum sentence of 10 years and no greater than life in prison, a minimum of five years of supervised release and a fine of $10 million. The conspiracy to distribute cocaine and cocaine base charge provides for a sentence of no greater than 20 years in prison; 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.
United States Attorney Carmen M. Ortiz; 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; Thomas Turco, Commissioner of the Massachusetts Department of Corrections; Essex County Sheriff Frank G. Cousins, Jr.; Suffolk County Sheriff Steven W. Tompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; Chief Brian A. Kyes of the Chelsea Police Department; Chief Steven A. Mazzie of the Everett Police Department; Chief Kevin F. Coppinger of the Lynn Police Department; Chief Joseph Cafarelli of the Revere Police Department; and Chief David R. Fallon of the Somerville Police Department, made the announcement today.
Former Middle School Teacher Pleads Guilty to Attempting to Purchase Live Video Sex Shows Involving Filipino ChildrenRead the Press Release
BOSTON – A former Southbridge Middle School teacher pleaded guilty today in U.S. District Court in Worcester in connection with attempting to purchase live video sex shows involving Filipino children and to possessing child pornography.
Scott Peeler, 54, who previously resided in Worcester, pleaded guilty to three counts of attempting to entice a minor to engage in unlawful sexual conduct and one count of possession of child pornography. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Feb. 28, 2017. Pursuant to a plea agreement, Peeler will be sentenced to a minimum of 10 years and no greater than 15 years in prison. Peeler remains in custody pending sentencing.
Between April 2013 and July 2014, Peeler used internet-based instant messaging services with video streaming capabilities to communicate with individuals in the Philippines engaged in child sex trafficking and the sale of live streaming sex shows involving children. Peeler admitted to attempting on at least three occasions to arrange the purchase of live video sex shows involving children who ranged in age from four years old to fourteen years old.
At the time of his arrest in June 2015, Peeler admitted that he was the user of the email and instant messaging account that had been used to solicit the streaming videos, but claimed that he had never actually purchased any videos. A preliminary forensic review revealed the presence of child pornography on Peeler’s computer.
The charge of attempting to entice a minor to engage in unlawful sexual conduct provides for a mandatory minimum sentence of 10 years and up to a lifetime in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of $250,000. The charge of possession of child pornography provides for a sentence of no greater than 20 years in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Worcester County District Attorney Joseph D. Early, Jr.; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Worcester Police Chief Steven M. Sargent, made the announcement today. Assistant U.S. Attorney Mark Grady of Ortiz’s Worcester Branch Office is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
Owner of Sham ‘Veteran-Owned’ Company Ordered to Forfeit $6.7 MillionRead the Press Release
BOSTON – A previously convicted Chelmsford man has been ordered to forfeit more than $6.7 million in connection with his June 2016 conviction for recruiting veterans as figurehead owners of a construction company in order to receive specialized government contracts.
On Wednesday, Nov. 23, 2016, David Gorski, 51, was order by U.S. District Court Judge F. Dennis Saylor to forfeit $6,756,205 following a forfeiture trial. In June 2016 a federal jury convicted Gorski of conspiring to defraud the United States by impairing the lawful governmental function of the Department of Veterans Affairs, the General Services Administration, the Army, and the Navy in the implementation and administration of the Service Disabled Veteran Owned Small Business (SDVOSB) Program, and four counts of wire fraud. In September 2016, he was sentenced to 30 months in prison, one year of supervised release and ordered to pay a $1 million fine.
Following Gorski’s conviction, the government sought forfeiture of $6.4 million, representing the gross proceeds Gorski received as a result of his fraud scheme, which Gorski contested. During the forfeiture trial, the government proved that it was entitled to the gross proceeds resulting from Gorski’s criminal conduct, including compensation he received from Legion Construction Inc., (“Legion”) from 2006 to 2015. The forfeiture included compensation Kimberly Gorski, Gorski’s wife, received from Legion from 2007 to 2009. The Court found that Kimberly Gorski did not work at Legion during that time period and the compensation she received was merely a mechanism Gorski used to increase his own income.
United States Attorney Carmen M. Ortiz; Donna Neves, Special Agent in Charge of the Department of Veterans Affairs, Office of the Inspector General, Northeast Field Office; Luis A. Hernandez, Special Agent in Charge of the General Services Administration, Office of the Inspector General, Office of Investigations; Kevin Kupperbusch, Special Agent in Charge of the Small Business Administration, Office of the Inspector General, Investigations Division; Michael D. Conner, Regional Agent in Charge of the U.S. Army Criminal Investigation Command; and Leo Lamont, Special Agent in Charge of the Naval Criminal Investigative Service, Northeast Field Office. The case was prosecuted by Assistant U.S. Attorney William F. Bloomer of Ortiz’s Public Corruption Unit and Doreen M. Rachal, Chief of Ortiz’s Asset Forfeiture Unit.
Former Attorney Sentenced for Veterans’ Benefits FraudRead the Press Release
BOSTON – A former attorney was sentenced yesterday in U.S. District Court in Boston in connection with a scheme to defraud a veteran.
Matthew J. McCarthy, 48, of Lowell, Mass., was sentenced by U.S. District Court Judge F. Dennis Saylor, IV, to six months in prison, six months of home confinement, and ordered to pay restitution of $36,105. In August 2016, McCarthy pleaded guilty to one count of theft of public money.
In early 2000, McCarthy, an attorney at the time, was appointed as a guardian for a 64-year old veteran. Between October 2009 and March 2011, McCarthy appropriated the benefits deposited into the veteran’s bank account by the Department of Veterans’ Affairs. McCarthy wrote checks to himself and third parties from the veterans’ bank account, endorsed and cased the checks, appropriating approximately $36,000.
United States Attorney Carmen M. Ortiz and Donna Neves, Special Agent in Charge of the Department of Veterans Affairs, Office of the Inspector General, Northeast Field Office, made the announcement. Assistant U.S. Attorney Giselle J. Joffre of Ortiz’s Major Crimes Unit prosecuted the case.
Fairhaven Man Sentenced for Making Hoax Distress Calls to U.S. Coast GuardRead the Press Release
BOSTON – A Fairhaven man was sentenced yesterday in U.S. District Court in Boston in connection with sending three false distress messages to the U.S. Coast Guard over the radio.
Roger Martin, 47, was sentenced by U.S. District Court Judge Richard G. Stearns to one year of probation and ordered him to pay $7,182 in restitution to the U.S. Coast Guard. In August 2016, Martin pleaded guilty to three counts of sending false distress messages to the U.S. Coast Guard and one count of identity fraud.
Martin, in three separate calls, claimed that he was on a boat in the Cape Cod Canal that was sinking. During the calls he impersonated a resident of Fairhaven, providing a name, street address and, on one occasion, date of birth. Martin had obtained the date of birth through the improper use of a law enforcement database through his former employment as a Bristol Country Sheriff’s dispatcher. In response to the calls, the U.S. Coast Guard and local law enforcement expended resources ascertaining that there was no true emergency and attempting to track down the hoax caller.
United States Attorney Carmen M. Ortiz, Richard Cox, Special Agent in Charge of the U.S. Coast Guard Investigative Service and Chief Michael Myers of the Fairhaven Police Department, made the announcement. The case was prosecuted by Assistant U.S. Attorney Giselle J. Joffre of Ortiz’s Major Crimes Unit.
Ex- Network Engineer Sentenced for Cyber Attack on Former Employer and ClientsRead the Press Release
BOSTON – A Massachusetts man was sentenced yesterday in U.S. District Court in Boston for hacking into and damaging the computer networks of his former employer and three of his former clients.
Kamlesh Patel, 39, of Lowell, was sentenced by U.S. District Court Judge Leo T. Sorokin to 24 days in jail, one year of home detention and five years of probation and ordered him to pay $137,896. In July 2016, Patel pleaded guilty to causing damage without authorization to internet-connected computers and using means of identification to commit the offenses.
Patel worked as a senior network engineer at Northborough-based Baesis Inc., a company that offered network maintenance and security services. In October 2010, after Baesis terminated Patel, he used a colleague’s network credentials to access Baesis’ computer network and delete the company’s image server, a computer that stored copies of clients’ network configurations.
Beginning in late January 2011, Patel again used his former colleague’s credentials to access Baesis’ network and access the networks of three former clients. Patel used specialized software to delete data from all four companies’ networks. Following Patel’s actions, the victim companies temporarily lost use of their networks, including internet and e-mail access. One company lost access to its internet telephone system for several weeks.
United States Attorney Carmen M. Ortiz and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. The U.S. Attorney’s Office acknowledges Baesis, Inc. for its assistance with the investigation. Assistant U.S. Attorney Seth B. Kosto of Ortiz’s Cybercrime Unit prosecuted the case.
Nahant Man Charged with Filing False Tax ReturnsRead the Press Release
BOSTON – A Nahant man was charged yesterday in U.S. District Court in connection with failing to report a significant portion of his income on his federal tax returns from 2010 to 2013.
Andrew R. Bisignani, 70, was charged in an Information with four counts of filing false tax returns.
The Information alleges that, between 2010, 2011, 2012 and 2013, Bisignani collected rental income from three real properties in Revere, Mass. During the same years, Bisignani allegedly collected interest and loan income by making multiple, private, short-term loans which were secured by Massachusetts real estate. Bisignani allegedly underreported his total rental real estate income when submitting his individual tax returns to the IRS. He also underreported the interest income he received in connection with his private loans for 2010, 2011 and 2012.
The charging statute provides for a sentence of no greater than three years in prison, one year of supervised release and a fine of $100,000. Actual sentences for federal crimes are typically less than maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorney Kristina E. Barclay of Ortiz’s Public Corruption Unit is prosecuting the case.
The details contained in the Information are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Hingham Man Charged with Defrauding InvestorsRead the Press Release
BOSTON – A Hingham man was arrested today and charged in U.S. District Court in Boston with defrauding neighbors and other acquaintances in a Ponzi scheme.
Stephen S. Eubanks, 47, of Hingham, Mass., was arrested on a complaint charging him with one count of wire fraud. Beginning in February 2010, Eubanks allegedly ran a hedge fund under the name Eubiquity Capital LLC, taking in approximately $529,000 in investor funds. Eubanks had previously worked as a registered broker with several large brokerage firms, but was terminated in the wake of customer complaints and other disciplinary issues. According to the complaint, in 2013 and 2014, Eubanks told two acquaintances that he was a registered financial advisor running a hedge fund affiliated with Goldman Sachs, TD Ameritrade, UBS Bank and Fidelity Investments. One client invested a total of $125,000 with Eubanks, while the other invested $20,000. A third person, living in Florida, invested $50,000 with Eubanks in 2013.
It is alleged that Eubanks invested some of his clients’ funds, but used a significant portion for personal expenses. Moreover, when asked for account statements summarizing the funds’ performance, Eubanks fabricated account statements, or used account statements from unrelated accounts, to deceive his clients into believing that their money had earned a healthy return. In some instances, Eubanks allegedly ran the fund as a Ponzi scheme, using money deposited with him by newer investors to pay “returns” due to earlier investors.
The charging statute provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
The Massachusetts Securities Division, which conducted an earlier civil investigation of Eubanks, provided significant assistance to the U.S. Attorney’s Office.
United States Attorney Carmen M. Ortiz; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Andrew E. Lelling of Ortiz’s Economic Crimes Unit is prosecuting the case.
The details contained in the complaint are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former College Patrol Officer Pleads Guilty to Sending Sexually Explicit Images to MinorRead the Press Release
BOSTON – A former Massasoit Community College patrol officer and Somerset Police Department reserve officer pleaded guilty today in U.S. District Court in Boston in connection with attempting to send sexually explicit images and videos of himself to an underage girl.
Cliff Oliveira, 28, of Somerset, pleaded guilty today to one count of attempted transfer of obscene material to a minor. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Feb. 28, 2017.
In November 2015, law enforcement officers discovered that an unknown adult male (later identified as Oliveira) was using the screen name “samuricop” on Kik Messenger to engage in sexually explicit chats and send sexually explicit images to a 13-year-old girl in South Carolina. Undercover officers subsequently engaged samuricop on Kik Messenger using the persona of an underage girl named “Gabbi.”
For approximately a month and half, undercover officers communicated with samuricop – informing him that Gabbi was a 14-year-old, middle school classmate of the 13-year old minor victim. Samuricop asked Gabbi to call him “daddy” and went on to engage in sexually explicit conversations with her. On Jan. 13, 2016, samuricop used Kik Messenger to send several images and a video of himself masturbating to “Gabbi.”
During the course of the communications with the 13-year old victim and with the undercover officers (Gabbi) samuricop informed them that he worked as a police officer. He also repeatedly sent images of a police cruiser and a firearm. Investigators subsequently used those images as well as IP login information provided by Kik to identify Oliveira as the user of the samuricop account. At the time, Oliveira was working as a patrol officer for the Massasoit Community College Police Department and reserve officer for the Somerset Police Department.
The charge of attempted transfer of obscene material to a minor provides for a sentence of no greater than 10 years in prison, three years 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.
United States Attorney Carmen M. Ortiz; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Greenville Country (South Carolina) Sheriff Steve Loftis, made the announcement today. Assistance with the investigation was also provided by the Somerset, Brockton, and Massasoit Community College Police Departments. Assistant U.S. Attorney Jordi de Llano of Ortiz’s Criminal Division is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
CleanSlate Addiction Treatment Centers Settle Allegations of Unlicensed Prescribing and Improper BillingRead the Press Release
BOSTON – The U.S. Attorney’s Office reached a $750,000 civil settlement yesterday with CleanSlate Centers, Inc. and Total Wellness Centers, LLC d/b/a CleanSlate, to resolve allegations that the two companies, which together operate opioid addiction treatment centers in Massachusetts and other states, improperly prescribed buprenorphine (Suboxone®) for opioid addiction treatment and improperly billed Medicare.
CleanSlate operates 17 clinics, offering treatment to individuals addicted to opioids, including heroin and prescription painkillers, through medication and counseling. The medication, buprenorphine, is a Schedule III controlled substance that also can be used to treat pain.
Until recently, only a physician could prescribe buprenorphine for addiction treatment. Congress modified the law in July 2016, allowing nurse practitioners and physician assistants to prescribe buprenorphine for addiction treatment, provided they meet certain training and state-law licensing requirements. In Massachusetts, those requirements have not yet been established.
United States Attorney Carmen M. Ortiz said, “Buprenorphine is an important drug used in the treatment of substance abuse, and until recently, only physicians were allowed to prescribe it. We will continue to closely monitor clinics that use buprenorphine for addiction treatment to ensure that they comply with strict prescribing requirements.”
“The DEA is committed to enforcing the Controlled Substances Act (CSA) by ensuring that all registrants abide by DEA’s prescribing regulations,” said Special Agent in Charge of the Drug Enforcement Administration Michael J. Ferguson. “Ensuring safe prescribing and dispensing of opioid medications and addiction treatment medications is a critical part of our ongoing efforts to protect patient safety and prevent drug diversion. In response to the ongoing opioid epidemic, DEA is committed to working with our law enforcement and regulatory partners to ensure these rules and regulations are followed.”
“We are committed to investigating healthcare providers engaged in improper billing and prescribing,” said Special Agent in Charge Phillip Coyne of the U.S. Department of Health and Human Services – Office of Inspector General (HHS-OIG). “Working closely with the DEA, the Office of Inspector General will continue the fight against the deadly and destructive opiate epidemic to protect public safety as well as the federal health care programs intended to care for vulnerable Americans.”
The settlement resolves two sets of allegations. First, the government alleged that, from March 2012 to February 2014, CleanSlate clinics routinely contacted pharmacies representing that physicians had prescribed buprenorphine for patients when, in fact, only midlevel practitioners had seen the patients. Days later, after patients had already picked up their medication from the pharmacies, part-time physicians employed by CleanSlate for as little as six hours per month accessed the patients’ electronic medical records. After reviewing the patient visit information, the part-time physicians signed the prescriptions, backdating them to the visit dates. These actions violated the Controlled Substances Act and regulations issued by the DEA.
Second, the government alleged that, from June 2010 to April 2016, CleanSlate repeatedly billed Medicare for patient visits using physicians’ identification numbers when, in fact, the patients saw midlevel practitioners and no physicians were on clinic premises to supervise those practitioners. Had CleanSlate properly billed under the midlevel practitioners’ identification numbers, Medicare would have paid less. These actions violated HHS’s rules for billing Medicare and violated the False Claims Act.
Upon learning of the prescribing and billing violations, CleanSlate cooperated fully with the federal investigation. It has appointed a new management team and has begun the process of hiring at least one full-time physician at each of its clinics. In addition, CleanSlate has implemented a new system under which only doctors can prescribe buprenorphine, and they do so electronically, thereby ensuring that no prescription is issued until after a doctor has reviewed the patient visit information.
This matter was brought as part of the federal response to the growing opioid abuse epidemic in Massachusetts and other New England states. The addictive quality of opioids has contributed to a recent surge in the theft and misuse of prescription pain medications. As a result, federal, state, and local law enforcement and public health authorities are collaborating to support safe prescribing and dispensing of opioid medications.
U.S. Attorney Ortiz, DEA SAC Ferguson and HHS-OIG SAC Coyne made the announcement today. Assistant U.S. Attorney Christine Wichers of Ortiz’s Civil Division handled the matter.
Former NFL Player and Former Bank Executive Plead Guilty to Ponzi Scheme and Money LaunderingRead the Press Release
BOSTON – A former bank vice president pleaded guilty today in U.S. District Court in Boston in connection with an investment scheme involving fraudulent loans to professional athletes. Her co-defendant, a former New England Patriots player, pleaded guilty to similar charges last week.
Susan Daub, 56, of Coral Spring, Fla., pleaded guilty to two counts of wire fraud, one count of conspiracy and one count of money laundering. U.S. District Court Judge William G. Young scheduled Daub’s sentencing for Feb. 13, 2017. Will D. Allen, 38, of Davie, Fla., pleaded guilty on Monday, Nov. 14, 2016, to two counts of wire fraud, one count of conspiracy and one count of money laundering. He is scheduled to be sentenced on Feb. 9, 2017.
In June 2015, Allen and Daub were arrested on criminal charges after being sued by the Securities and Exchange Commission in April 2015. Between 2012 and April 2015, Allen and Daub defrauded investors out of millions of dollars by claiming that the funds would be used to back high-interest, short-term loans to professional athletes through Capital Financial Partners (CFP), Allen and Daub’s Massachusetts-based company. While CFP did make some loans to athletes, Allen and Daub also diverted millions of investor dollars to themselves and other business ventures. In total, Allen and Daub took in over $35 million in investments. To date, they have repaid less than $22 million.
As part of the fraud, Allen and Daub collected money from investors to fund fictitious loans, then used the money, in part, to pay themselves. Other times, Allen and Daub told some investors that the loans CFP made to professional athletes were larger than they actually were, allowing Allen and Daub to collect more money from investors than they were lending out to athletes. To keep investors from discovering their fraud, Allen and Daub used newly invested money to make payments to existing investors, which they falsely characterized as interest and principal payments from athlete borrowers.
The charges of wire fraud and conspiracy each provides a sentence of no greater than 20 years in prison, three years of supervised release, a fine of up to $250,000 (or twice the gross gain or loss), and restitution. The charge of money laundering provides a sentence of no greater than 10 years in prison, three years of supervised release, a fine of up to $250,000 (or twice the gross gain or loss), 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.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. The U.S. Attorney’s Office received valuable assistance from the Securities and Exchange Commission, which previously charged Allen and Daub in a civil complaint. Assistant U.S. Attorneys Seth B. Kosto and Brian A. Pérez-Daple of Ortiz’s Economic Crimes Unit are prosecuting the case.
Randolph Man Convicted by Jury of Defrauding DreamWorks by Falsely Claiming he Created Kung Fu PandaRead the Press Release
BOSTON – A Randolph man was convicted late today of wire fraud and perjury charges 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 convicted today by a federal juryon four counts of wire fraud and three counts of perjury. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for March 30, 2017.
Gordon filed a lawsuit as part of a fraud scheme designed to obtain a multi-million-dollar settlement from DreamWorks. To further his fraud and persuade DreamWorks to agree to a settlement, Gordon fabricated and backdated drawings of characters similar to those in Kung Fu Panda, lied repeatedly during his deposition and destroyed computer evidence.
Beyond the superficial similarities, the panda characters (pictured below) and story that Gordon created during the 1990s has very little in common with DreamWorks’ movie, Kung Fu Panda.
Gordon's Characters
DreamWorks' Po and Master Shifu
In early 2008, several months before the movie’s June 2008 release, Gordon saw a trailer for Kung Fu Panda. After seeing that trailer, Gordon revised his “Panda Power” drawings and story, which he renamed “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 trailer. In February 2011, Gordon filed a copyright infringement suit against DreamWorks in U.S. District Court inMassachusetts, 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 (shown below).
1996 Disney Coloring Book
Gordon's 2000 Registration
Gordon’s other 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 had copied his drawings and appeared to have based the character Timon, from the Lion King, on Gordon’s drawings.
The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 and restitution. The charge of perjury 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.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Adam Bookbinder and Amy Harman Burkart of Ortiz’s Cybercrime Unit. The U.S. Attorney’s Office and FBI would like to thank DreamWorks for its assistance during the investigation of this case.
Eleven Indicted in Trans-National Methamphetamine Trafficking RingRead the Press Release
BOSTON – Eleven men have been indicted in connection with a large-scale methamphetamine trafficking and money laundering ring operating between Massachusetts and California.
Eleven men from Massachusetts and California were indicted on offenses including conspiracy to distribute and to possess with intent to distribute methamphetamine; distribution of methamphetamine; possession of methamphetamine with intent to distribute; and conspiracy to launder monetary instruments:
- Jesse Gillis, 31, of Boston;
- James Giannetta, 61, of Quincy;
- Christopher Halfond, 35, of Carlsbad, Calif.;
- Matthew Metz, 41, of Boston;
- Steven Beadles, 58, of Chelsea;
- Russell Ormiston, 50, of Chelsea;
- Jorge Grandon, 47, of Boston;
- Mario Castro, 48, of Boston;
- Jeffrey Carlo, 28, of Dorchester;
- Bruce Reisman, 57, of Boston; and
- Daniel Ponce, 38, of Boston.
The indictment alleges that beginning in at least 2013 and continuing to November 2016, Gillis, Giannetta, and their co-defendants participated in a conspiracy to transport significant quantities of methamphetamine from San Diego, Calif., to Massachusetts, where it was distributed in the greater Boston area. Proceeds from the sale of that methamphetamine were then transported and/or transferred back to California and laundered in various ways.
The charges of distribution, possession with intent to distribute, and conspiracy to distribute and possess with the intent to distribute 50 grams or more of methamphetamine each provide for a minimum mandatory sentence of 10 years and up to a lifetime in prison, a lifetime of supervised release, and a fine of $10 million. The charges of distribution, possession with intent to distribute, and conspiracy to distribute and possess with the intent to distribute a quantity of methamphetamine provides for a sentence of no greater than 20 years in prison, a lifetime of supervised release, and a fine of $1 million. The charge of conspiracy to launder monetary instruments provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $500,000 or twice the value of the funds involved, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; William Ferrara, Director of Field Operations of the U.S. Customs and Border Protection; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Boston Police Commissioner William Evans, made the announcement today. The Massachusetts Department of Correction; Norfolk County Sherriff’s Office; Suffolk County Sheriff’s Office; Reading, Watertown, Quincy, Chelsea, Braintree, Peabody, Waltham, and Woburn Police Departments; and Connecticut State Police assisted with the investigation. Karen Beausey of Ortiz’s Narcotics & Money Laundering 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.
Meisum Bakery, Inc. and Owner Plead Guilty to Food Stamp FraudRead the Press Release
BOSTON – Meisum Bakery, Inc. and its owner, Xi Xian Lei, pleaded guilty today in U.S. District Court in Boston in connection with a $740,000 food stamp fraud scheme that Lei and his employees operated out of a Chinatown bakery.
Both Meisum Bakery, Inc. and Lei pleaded guilty to one count of conspiracy to commit SNAP (Supplemental Nutritional Assistance Program) benefits fraud and two counts of SNAP fraud. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Feb. 22, 2017.
SNAP, formerly known as the Food Stamp Program, administered by the U.S. Department of Agriculture (USDA), provides eligible households with government subsidies for food and allows holders to exchange their SNAP benefits for food at authorized retail food stores.
From about October 2010 through April 2012, Lei and bakery employees purchased SNAP benefits from legitimate SNAP beneficiaries for cash at a discounted value of approximately fifty cents for every SNAP dollar; however, neither Meisum Bakery, Inc. nor Lei was authorized to accept SNAP benefits as payment for goods at the bakery. Then, bakery employees and Lei redeemed the SNAP benefits by using the beneficiaries’ Electronic Benefit Transfer (EBT) cards to buy goods and earn credit at stores that were authorized to accept SNAP benefits.
During the course of the conspiracy, Meisum Bakery, Inc. and Lei defrauded the USDA of approximately $740,000 in SNAP funds.
The charge of conspiracy provides for a sentence of no greater than five years in prison and three years of supervised release, and for a corporation, no greater than five years of probation and a fine of $500,000. The charge of SNAP fraud provides for a sentence of no greater than five years in prison and three years of supervised release, and for a corporation, no greater than five years of probation and a fine of $10,000. 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.
United States Attorney Carmen M. Ortiz; William G. Squires, Special Agent in Charge of the U.S. Department of Agriculture, Office of Inspector General, Office of Investigations, Northeast Region; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Boston Police Commissioner William Evans, made the announcement today. Assistant U.S. Attorney Giselle J. Joffre of Ortiz’s Major Crimes Unit is prosecuting the case.
Former Bank Vice President Sentenced for EmbezzlingRead the Press Release
BOSTON – A former vice president of Lenox National Bank was sentenced yesterday in U.S. District Court in Springfield for embezzling more than $150,000 from the bank.
Joseph E. Leskovitz, 53, of Lenox, Mass., was sentenced by U.S. District Court Judge Mark G. Mastroianni to 22 months in prison, three years of supervised release and ordered to pay $154,783 in restitution. In July 2016, he pleaded guilty to three counts of embezzlement of bank funds and one count of money laundering.
Between approximately 2009 and February 2014, Leskovitz was the vice president of Lenox National Bank, which was acquired in 2015 by Adams Community Bank. Leskovitz stole money from certificates of deposits he was entrusted to manage for family members and clients. In addition, Leskovitz opened a loan in the name of a family member without the family member’s knowledge and stole the loan proceeds.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement. Assistant U.S. Attorney Karen L. Goodwin of Ortiz’s Springfield Branch Office prosecuted the case.
Dracut Attorney Pleads Guilty to Filing False Tax ReturnsRead the Press Release
BOSTON – A Dracut attorney pleaded guilty in U.S. District Court in Boston yesterday to filing false federal tax returns.
John F. Paczkowski, 73, pleaded guilty to two counts of filing false personal tax returns for 2009 and 2010. U.S. District Judge George A. O’Toole scheduled sentencing for Feb. 16, 2017.
Paczkowski operated a legal office in Dracut as a sole practitioner. In this capacity, he was required by the Massachusetts Board of Bar Overseers and the Rules of Professional Conduct to hold client funds in a trust separate from his own funds. However, Paczkowski embezzled and misappropriated funds from the trust account and used clients’ funds for his own uses. Paczkowski failed to report to the IRS more than $630,000 he took from clients and failed to pay more than $192,000 in federal taxes.
The charging statute provides for a sentence of no greater than three 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 the federal district judge based on the U.S. Sentencing Guidelines and other sentencing factors.
United States Attorney Carmen M. Ortiz and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement. Assistant U.S. Attorney Victor A. Wild of Ortiz’s Economic Crimes Unit prosecuted the case.
Palmer Man Pleads Guilty to Child PornographyRead the Press Release
BOSTON – A Palmer man pleaded guilty today in U.S. District Court in Springfield to possessing child pornography.
Charles Benoit, 65, pleaded guilty to one count of conspiring to possess child pornography before U.S. District Court Judge Mark G. Mastroianni who scheduled sentencing for Feb. 14, 2017.
From 2009 to 2010, Benoit used Limewire, an online peer-to-peer file sharing program, to search for and download child pornography. Benoit used search terms such as “preteen hard core” and “PTHC.”
The charging statute provides a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. The case is being prosecuted by Alex Grant of Ortiz’s Springfield Branch Office.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Topsfield Attorney Sentenced for Filing False Tax ReturnsRead the Press Release
BOSTON – A Topsfield man was sentenced in U.S. District Court in Boston late yesterday for filing false tax returns with the Internal Revenue Service (IRS) over the course of four years.
John H. Molloy, Jr., 53, was sentenced by U.S. District Court Judge George A. O’Toole, Jr., to one year of probation and ordered to pay restitution of $332,019 to the IRS, a fine of $5,000, and complete 100 hours of community service. In August 2016, Molloy pleaded guilty to four counts of filing false tax returns.
Molloy, an attorney, maintains offices in Jamaica Plain and Revere. A substantial portion of Molloy’s law practice involved representing victims of automobile accidents. From 2006 to 2009, Molloy deposited settlement checks from automobile insurers into his business accounts, but used these business accounts to pay personal expenses. All of these funds were income to Molloy and should have been reported to the IRS; however, Molloy actively concealed almost
$1 million of income from the IRS over a four-year period. When accountants asked Molloy which funds in his business accounts should be reported to the IRS, Molloy told them that substantial chunks of money were not income and did not need to reported—even though he knew this was untrue. From 2006 to 2009, Molloy failed to report $979,341 of income to the IRS, failing to pay $332,019 in taxes.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Anthony DiPaolo, Chief of Investigations of the Massachusetts Insurance Fraud Bureau, made the announcement. Assistant U.S. Attorney David S. Schumacher of Ortiz’s Criminal Division prosecuted the case.
Investigation and Prosecution Team in Dzhokhar Tsarnaev Case Receive Department of Justice’s Highest AwardRead the Press Release
BOSTON – Seven members of the U.S. Attorney’s Office received the Attorney General’s David Margolis Award for Exceptional Service – the highest honor in the Department of Justice – during a ceremony today at the Justice Department for their role in investigating and prosecuting Boston Marathon bomber Dzhokhar Tsarnaev.
“As the world watched, this extraordinary team worked countless hours, under tremendous pressure, to ensure the successful prosecution of Dzhokhar Tsarnaev,” said United States Attorney Carmen M. Ortiz. “Their efforts went well beyond the normal scope of preparing for a trial, combing through warehouses full of evidence, working closely with the families of the deceased and the many severely injured victims, all in the face of intense media scrutiny and security challenges. I am honored to work alongside these committed public servants whose collective accomplishments, compassion, and dedication are nothing short of remarkable.”
In prepared remarks, Attorney General Loretta E. Lynch said, “We also express our gratitude to the team that successfully investigated and prosecuted the case against the surviving perpetrator of the Boston Marathon terrorist attacks. You undertook this emotional, complex, and high-stakes case with quiet dedication. You forged a tightly knit team from a wide array of law enforcement agencies, and together, you built an incredible body of evidence. When you tried the case in court, you spoke not simply for this department – you spoke for the people of Boston and this great nation who sought justice for this cold-blooded and cowardly attack.”
The following individuals from the United States Attorney’s Office were honored at the 64th Annual Attorney General’s Award for Exceptional Service for their role in the investigation and prosecution of Dzhokhar Tsarnaev: Assistant U.S. Attorneys William Weinreb, Aloke Chakravarty and James Farmer; Christina DiIorio-Sterling, Chief of Public Affairs; Cara Henderson, Community Outreach Program Manager; and Victim/Witness Specialists Kathleen Griffin and Jessica Pooler. The trial team also included former AUSA Nadine Pellegrini, who was ineligible for the nomination as she has departed from the USAO. The USAO and her colleagues would like to acknowledge Ms. Pellegrini’s outstanding contribution to the Tsarnaev case.
On April 15, 2013, Dzhokhar and Tamerlan Tsarnaev detonated two powerful IEDs near the Boston Marathon finish line, killing two young women and an eight-year-old boy, maiming 17, and injuring hundreds more in the largest mass-casualty terrorist attack on U.S. soil since 9/11. Following a manhunt during which the brothers killed an MIT police officer, Tamerlan Tsarnaev was killed in a shoot-out with police and Dzhokhar Tsarnaev was arrested. The worldwide investigation involved more than 6,000 items of physical and digital evidence, over 100,000 photographs and videos, and more than 1,000 witness interviews.
The high-profile trial commenced less than two years after the bombings. Over the course of 10 weeks, the prosecution team introduced over 1,000 exhibits and called more than 100 witnesses to the stand, including 14 victims who lost limbs in the bombings, family members of those killed, other survivors and eye witnesses, experts in the areas of fingerprints, DNA, bombs, and ballistics, law enforcement officers and terrorism experts. The prosecutors also cross-examined nearly 50 defense witnesses. A jury found Tsarnaev guilty on all 30 counts in the indictment charging terrorism and other violent offenses. The same jury later sentenced Tsarnaev to death following an approximately three-week sentencing trial. He was sentenced to death on six counts and consecutive life sentences on seven others, and ordered to pay $101 million in restitution to the victims.
In addition to the U.S. Attorney’s Office employees, 29 investigators, legal professionals and operational support personnel from the Federal Bureau of Investigation, U.S. Marshals Service and National Security Division, among other agencies, were also being recognized for exceptional service.
Majority Owner of NECC and Husband Sentenced for Illegal Cash Withdrawals Following OutbreakRead the Press Release
BOSTON – The majority owner of New England Compounding Center (NECC) and her husband were sentenced today in U.S. District Court in Boston in connection with illegally withdrawing cash following the 2012 fungal meningitis outbreak.
Carla Conigliaro, 53, of Dedham, Mass., the majority owner of NECC was sentenced by U.S. District Court Judge Richard G. Stearns to one year of probation and ordered to forfeit $4,600 and to pay a fine of $4,500. Her husband, Douglas Conigliaro, 55, also of Dedham, Mass., was sentenced by Judge Stearns to two years of probation and ordered to forfeit $119,647 and to pay a fine of $55,000. In July 2016, they each pleaded guilty to withdrawing cash from their bank accounts in a manner intended to defeat financial reporting requirements.
In September 2012, a nationwide outbreak of fungal meningitis was traced back to contaminated vials of preservative-free methylprednisolone acetate (MPA) manufactured by NECC, a compounding pharmacy located in Framingham, Mass. Beginning on Oct. 31, 2012, the day a search warrant was executed at NECC, Carla and Douglas Conigliaro began withdrawing unusual sums of cash from their personal bank accounts. The cash transactions were structured by the Conigliaros in a manner so as to evade the $10,000 reporting requirement for the filing of a currency transaction report. The Conigliaros admitted to withdrawing $124,000 in cash in this manner.
In December 2014, following a two-year investigation, the Conigliaros and 12 other employees and associates of NECC were charged in a federal indictment. The indictment did not charge the Conigliaros with having an active role in the operations or management of NECC, but did charge them with transferring assets following the fungal meningitis outbreak.
NECC’s owner and head pharmacist Barry J. Cadden and supervisory pharmacist Glenn A. Chin were charged with 25 racketeering acts of second-degree murder in seven states. Ten other defendants, including six pharmacists, the director of operations, the national sales director, an unlicensed pharmacy technician, and another owner, were charged with additional crimes including racketeering, mail fraud, conspiracy, and violations of the Food, Drug and Cosmetic Act. Cadden and Chin are scheduled to stand trial on Jan. 5, 2017.
United States Attorney Carmen M. Ortiz; Jeffrey J. Ebersole, Special Agent in Charge of the U.S. Food and Drug Administration, Office of Criminal Investigations, New York Field Office; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Donna Nieves, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office; Craig Rupert, Special Agent in Charge of the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office; and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys George P. Varghese and Amanda P.M. Strachan of Ortiz’s Health Care Fraud Unit and John W.M. Claud of the Justice Department’s Consumer Protection Branch.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Former Boston Police Officer Sentenced for Access Device FraudRead the Press Release
BOSTON – A former Boston Police Officer was sentenced yesterday in connection with purchasing and using gift cards obtained from the return of stolen merchandise.
Eddie Odney, 38, was sentenced by U.S. District Court Senior Judge Mark L. Wolf to 36 months of probation, a fine of $10,000 and forfeiture of $1,600.
In August 2016, Odney pleaded guilty to one count of access device fraud and, as part of his plea agreement, resigned as a Boston Police Officer.
Over the course of over a year and a half, including all of 2015, Odney purchased approximately $5,000 worth of gift cards that he knew were obtained from the return of stolen merchandise at stores including T.J. Maxx, Macy’s, and HomeGoods. Odney paid cash for the cards and used them to make over $1,600 in purchases in 2015.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation; and Superintendent Frank Mancini of the Boston Police Department’s Anti-Corruption Division; made the announcement. The case was prosecuted by Assistant U.S. Attorney Eugenia M. Carris of Ortiz’s Public Corruption Unit.
Waltham Man Pleads Guilty to Defrauding Customers of Former Newton Travel AgencyRead the Press Release
BOSTON – A Waltham man pleaded guilty today in U.S. District Court in Boston in connection with a scheme in which he defrauded hundreds of customers of the now-defunct Tom Harper Cruises, of more than $2 million in cruise trip deposits.
Bret A. Gordon, 43, pleaded guilty to six counts of wire fraud and two counts of filing a false personal tax return. U.S. District Court Judge Denise J. Casper scheduled sentencing for Feb. 8, 2017.
In 2013, Gordon established and owned a 65% interest in Tom Harper Cruises, a business selling overseas river cruise vacations. As the company’s manger, Gordon had exclusive control of its bank accounts and finances. Soon after Tom Harper Cruises began operating, Gordon started to take money from its bank account for his own use, primarily for casino gambling. The funds received by the company were customer payments for trips, which were operated by independent cruise companies, so Tom Harper Cruises needed to retain sufficient funds to pay those independent companies.
As a result of Gordon’s actions, Tom Harper Cruises became unable to pay some of its regular business expenses and, inevitably, to pay the independent cruise companies for the trips ordered by customers. In June 2015, Tom Harper Cruises closed its doors and filed for bankruptcy. Between September 2013 and June 2015, Gordon took about $2,258,500 from Tom Harper Cruise’s accounts for his own use. About 400 customers were left without the trips they planned for, after paying Tom Harper Cruises a total of approximately $3,167,128.
Gordon also failed to report the money he had taken as income on his personal income tax returns. He failed to report about $165,000 that he received in tax year 2013, and about $900,000 that he had taken in tax year 2014.
The mail fraud statute provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 and restitution. The tax statute provides for a sentence of no greater than three 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.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorney Mark J. Balthazard of Ortiz’s Economic Crimes Unit is prosecuting the case.