District of Massachusetts

BOSTON – A Chelmsford man was sentenced today in U.S. District Court in Boston in connection with recruiting veterans as figurehead owners of a construction company in order to receive specialized government contracts.

“Taking advantage of set-aside programs intended to support the economic welfare and stability of veterans is appalling,” said United States Attorney Carmen M. Ortiz.  “Through his scheme, Mr. Gorski undercut the efforts of hard-working veterans to compete for valuable government contracts and, as such, defrauded federal agencies dedicated to serving veterans of our armed services.”

“Those who defraud the Federal government by abusing Service-Disabled Veteran-Owned Small Business (SDVOSB) set-asides for their own financial gain are effectively taking money out of the hands of deserving veterans,” said Michael J. Missal, Inspector General of the U.S. Department of Veterans Affairs, Office of Inspector General.  “The VA OIG will continue to expose those committing fraud and bring them to justice.  Today’s sentencing is a reminder to those who abuse set aside programs and the construction industry as a whole, that they must adhere to the laws established by Congress.  It also reflects the commitment of Federal law enforcement organizations to pursue illegal conduct within such programs.”

David Gorski, 51, of Chelmsford, was sentenced by U.S. District Court Judge F. Dennis Saylor to 30 months in prison, one year of supervised release and ordered to pay a fine of $1 million.  In June 2016, Gorski was found guilty by a jury following a 12-day trial 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.  He was also convicted of four counts of wire fraud.

In 2006, Gorski established a company, Legion Construction, Inc., after recruiting a disabled Korean War veteran to act as the company’s straw owner for the sole purpose of obtaining federal construction contracts set aside under the SDVOSB Program.  The purpose of the SDVOSB program is to provide federal contracting assistance to service-disabled veterans who own small businesses by creating set-aside and sole-source acquisitions for such businesses.  When the veteran’s deteriorated, Gorski added a second disabled veteran, Peter Ianuzzi, to serve as the figurehead owner of Legion.  Legion acquired more than $113 million in federal contracts between 2006 and November 2010, after Gorski falsely represented to federal contracting officers that the company was owned and operated by service-disabled veterans. 

In March 2010, a different SDVOSB registered a bid protest against Legion, alleging that Legion should not have been awarded a contract with the U.S. Department of Veterans Affairs at its medical center in White River Junction, VT.  The company specifically challenged Legion’s SDVOSB status, noting that it appeared that Gorski, not one of the veterans, was the person running Legion.  After retaining the services of a large Boston law firm to assist him, Gorski filed an opposition to the bid protest that contained backdated documents containing false and misleading information.  The Small Business Administration denied the bid protest based on Legion’s submission.  Gorski then began exploring ways to siphon money from Legion that would not appear as compensation exceeding the pay of the nominal veteran owner, Ianuzzi, in violation of federal regulations, including Ianuzzi “gifting” him $900,000 and establishing private bank accounts into which the company would deposit $2.5 million for Gorski’s benefit.  Before the bank accounts could be opened, however, a federal grand jury issued subpoenas to Legion and several witnesses. 

“Our nation’s veterans are the ultimate victims when individuals scheme to fraudulently obtain access to federal contracting opportunities set-aside for deserving small businesses owned and operated by service-disabled veterans,” said Inspector General Peggy E. Gustafson.  “SBA OIG is committed to protecting the integrity of SBA’s Service-Disabled Veteran-Owned Small Business Concern Procurement Program.  I want to thank the U.S. Attorney’s Office and our law enforcement partners for their leadership and dedication to serving justice.”

“We are pleased with today's sentencing and it is quite satisfying to know that people who commit these types of crimes are held accountable,” said Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit.  “There is an important purpose for the Service Disabled Veteran Owned Small Business Program and this individual attempted to exploit that program for his own personal gain while pushing those who deserve it aside.”

Special Agent in Charge, Leo Lamont of Naval Criminal Investigative Service, Northeast Field Office said: “NCIS will continue to work with our law enforcement partners to hold accountable those who would harm, rather than serve, the Department of the Navy warfighters and American taxpayers.  By conspiring to manipulate the contracting process through lies and deceit, those involved have drained significant resources from the Navy and have made it harder for legitimate companies that play by the rules, especially those owned by service-disabled veterans, to participate in programs that support the military.”

The case was prosecuted by Assistant U.S. Attorney William F. Bloomer of Ortiz’s Public Corruption Unit.

BOSTON – The wife of Joseph Yerardi, Jr., a previously convicted bookmaker, pleaded guilty and was sentenced today in U.S. District Court in Boston in connection with hiding funds in overseas accounts to evade forfeiture payments to the U.S. Government.

Rafia Feghi, 69, who was born in Iran and lives in Newton, was sentenced by U.S. District Judge Richard G. Stearns to one year and two days in prison, and all of the funds in a Liechtenstein account (now worth more than $1 million) were signed over to the United States government.  According to the terms of the plea agreement, Feghi also pleaded guilty today to conspiracy to defraud the United States and to obstruct justice.

Over a period spanning more than 25 years, Feghi hid hundreds of thousands of dollars that her husband, Joseph A. Yerardi, Jr., earned from illegal bookmaking and loansharking, to evade a $916,000 forfeiture order and a $50,000 fine that were imposed on Yerardi when he was sentenced in 1995 on a federal racketeering conviction.  Feghi was charged with using multiple accounts under various names, first in Canada, and eventually in Liechtenstein, to hide the money from the United States government.

In 2010, the government of Liechtenstein notified the United States of a suspicious account that contained more than $800,000 and was controlled by Feghi, who had been convicted in 2009 of money laundering in connection with Yerardi’s illegal businesses.  Liechtenstein froze the suspicious account, and the United States filed court papers to obtain the money to satisfy Yerardi’s longstanding forfeiture order and fine.  From 2010 to July 2016, Feghi and co-conspirators repeatedly lied to the courts in Liechtenstein and the United States in attempts to hide the true ownership and source of the funds.

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 today.  The case was prosecuted by Assistant U.S. Attorney Michael L. Tabak of Ortiz’s Organized Crime and Gang Unit.

BOSTON – United States Attorney Carmen M. Ortiz announced today that the U.S. Attorney’s Office’s independent investigation of alleged civil rights violations at Boston Latin School (BLS) has concluded.  A resolution agreement has been reached with the Boston Public School District (BPS), home of the nation’s oldest public school.  The investigation focused on alleged incidents of racial harassment of BLS students and the school’s response to those alleged incidents. 

In the resolution announced today, BPS has agreed to implement measures aimed at ensuring that complaints of racial discrimination at BLS are handled appropriately.  The resolution is the product of a months-long investigation in which BPS Superintendent Tommy Chang and other BPS and BLS personnel cooperated fully with the USAO. 

After interviewing over 200 people including BLS administrators, faculty, parents, students, and alumni, as well as BPS Central Office employees, and after reviewing thousands of pages of documents from BPS, the USAO determined that there was one violation of Title IV of the Civil Rights Act.  Title IV of the Civil Rights Act of 1964 prohibits discrimination against students based on race, among other bases, by public schools. 

The violation involved BLS’s mishandling of its review of allegations that a male student addressed a female black student during class using profanity and a racial slur and threatened to lynch her with an electrical cord. 

The investigation also raised concerns about BLS’s response to two other racially charged incidents and the overall effectiveness of its efforts to create an inclusive school climate for all of its students.  Finally, the USAO found that BLS did not consistently apply policies and procedures relating to student discipline. 

“Boston Latin School is one of the most prestigious public high schools in the nation.  Its rich history and well-deserved reputation for academic excellence make it vital that the school provide a supportive learning environment where students of all races can learn without fear of harassment or discrimination,” said U. S. Attorney Carmen M. Ortiz.  “All students should feel welcome and safe at BLS regardless of their racial background.  Today’s resolution will help ensure that Boston Latin responds thoroughly and appropriately to complaints of race-based discrimination and provides a dynamic and racially and ethnically sensitive learning space for the extraordinary students who pass through its doors.  We commend Boston Public Schools for its cooperation and we are confident that the District will continue its work to foster an inclusive climate for all students.”

On February 26, 2016, several civil rights advocacy groups and community members, including the Boston Branch of the National Association for the Advancement of Colored People, the American Civil Liberties Union Foundation of Massachusetts, and the Lawyers’ Committee for Civil Rights and Economic Justice, sent a letter to the USAO alleging a racially hostile learning environment at BLS, racially disparate discipline, and an inadequate response to these concerns by BLS administrators. 

 Under the agreement, Boston Public Schools will adopt a comprehensive strategy to address and prevent racial harassment at, or affecting students at, BLS.  Among other things, the District will:

• Develop mandatory annual trainings for students, faculty and staff at BLS covering racial harassment, retaliatory conduct, reporting procedures and policies, and cultural competence;
• Institute a system of restorative justice at BLS;
• Establish a Diversity/Non-Discrimination Officer at BLS responsible for monitoring complaints of harassment, discrimination, and retaliation; and
• Conduct an annual school-wide survey of the racial climate at BLS.

This matter was investigated by Jennifer A. Serafyn, Chief of Ortiz’s Civil Rights Unit, Assistant U.S. Attorneys Doreen M. Rachal, Deana K. El-Mallawany, Shelbey D. Wright, Annapurna Balakrishna, and Abraham R. George of Ortiz’s Civil Rights Division.

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

BOSTON – The U.S. Attorney’s Office reached a $110,000 settlement today with David Margolis, a clinical social worker with an office in Winchester, to resolve allegations that he submitted false claims to Medicare. 

“This settlement is part of the government’s ongoing efforts to fight Medicare fraud, whether on a large or small scale,” said United States Attorney Carmen M. Ortiz.  “Providers who bill for services they never rendered is fraud, plain and simple.”

“Health care providers who try to make a quick buck by billing taxpayers for services never provided will be held accountable for their greedy behavior,” said Special Agent in Charge Phillip M. Coyne of the U.S. Department of Health and Human Services Office of Inspector General. “Working with our law enforcement partners, our agency is dedicated to protecting government health care programs.”

The government’s investigation revealed evidence that Margolis billed Medicare for therapy sessions that he knew never took place, either because he never actually scheduled the sessions or because his clients cancelled or missed the appointments.  Margolis did not deny the government’s allegations of fraudulent billing and admitted that the government could prove its case at trial. 

The U.S. Attorney’s Office initiated the investigation after the U.S. Department of Health and Human Services, Office of Inspector General, received a complaint from a Medicare beneficiary who had ceased receiving treatment from Margolis but noticed that the billing continued. 

U.S. Attorney Ortiz and HHS-OIG SAC Coyne made the announcement today.  The case was handled by Assistant U.S. Attorneys Deana K. El-Mallawany and Lisa Asiaf Schlatz.

BOSTON – A United States Postal Service employee was charged today in U.S. District Court in Worcester in connection with viewing child pornography on USPS computers.

Stephen Mantha, 62, of Spencer, was charged in a complaint with possession of child pornography and accessing with intent to view child pornography.  Mantha was arrested yesterday and detained pending a detention hearing scheduled for Sept. 27, 2016. 

As alleged in court documents, beginning in August 2015, USPS Office of Inspector General investigators were alerted to suspicious Internet searches being conducted by Mantha on a computer at the Shrewsbury processing and distribution center where he worked as an electronic technician.  A subsequent investigation revealed that Mantha was utilizing the USPS computer to search for, and view, images of child pornography on the Internet. 

On Sept. 21, 2016, a search warrant executed at Mantha’s residence recovered computers, DVDs/CDs, an external hard drive, and over a dozen thumb drives.  A preliminary, on-scene, forensic review of three of the thumb drives revealed images of child pornography. 

The charging statutes provide 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; Eileen Neff, Special Agent in Charge of the United States Postal Service, Office of Inspector General; 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; David Darrin, Chief of the Spencer Police Department, and James Hester, Jr., Chief of the Shrewsbury Police Department, made the announcement today.  The case is being prosecuted by Mark Grady of Ortiz’s Worcester Branch Office.

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

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

BOSTON – Nicholas Rovinski pleaded guilty today in U.S. District Court in Boston in connection with providing material support to the Islamic State of Iraq and the Levant (ISIL).

Nicholas Alexander Rovinski a/k/a Nuh Amriki a/k/a Nuh Andalusi, 25, of Warwick, R.I., pleaded guilty to conspiring with David Daoud Wright and Usaamah Abdullah Rahim (now deceased) to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization and conspiracy to commit acts of terrorism transcending national boundaries.  U.S. District Court Judge William G. Young scheduled sentencing for March 23, 2016.      

Rovinski and Wright were charged with conspiring with each other, known and unknown conspirators, and Rahim, Wright’s uncle, to provide material support to ISIL and commit acts of terrorism that transcended national boundaries.  On June 2, 2015, Rahim was shot and killed after he confronted and threatened law enforcement officers in Roslindale, Mass.  Wright remains in custody pending trial.

At today’s hearing, Rovinski admitted among other things, that beginning in December 2014, he began talking with Wright about their mutual desire to support ISIL and how they could provide assistance to that terrorist organization.  By April 2015, Rovinski, Wright, and Rahim had agreed to commit attacks and kill persons inside the United States – acts which they believed would support ISIL’s objectives.  Their attack plans included the beheading of a New York woman whom ISIL had identified for murder through a “fatwah” or religious decree, to its supporters.  In May 2015, Junaid Hussain, an ISIL member in Syria, had directly communicated instructions to Rahim regarding the murder of the New York victim, in which the three men were to play a critical role.  On June 2, 2015, Rahim confided in Wright that he could not wait until July 4, 2015, as originally planned, to go after their target, and instead wanted to go operational that day.  Rahim told Wright that he wanted to go after the “boys in blue” (a slang term used to describe police officers) in Massachusetts and Wright encouraged Rahim to attack police and become a martyr.  Less than two hours after this call, Rahim was shot and killed after confronting law enforcement officers.      

On June 11, 2015, Rovinski was arrested for conspiring to provide material support to ISIL but his arrest did not deter his commitment to ISIL.  Even after being arrested, Rovinski sought to continue the attacks he had planned with Wright and Rahim, writing letters to Wright from prison discussing ways to take down the United States government and decapitate non-believers.   

The charge of conspiracy to provide material support to a designated foreign terrorist organization provides for a sentence of no greater than 20 years in prison, a lifetime of supervised release and a fine of $250,000.  The charge of conspiracy to commit acts of terrorism transcending national boundaries (in which the defendants intended to kill or maim persons in the United States) provides for a maximum sentence of a life in prison, a lifetime 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; John P. Carlin, Assistant Attorney General for the Justice Department’s National Security Division; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation made the announcement today.  This case is being prosecuted by Assistant U.S. Attorney B. Stephanie Siegmann of Ortiz’s National Security Unit and Trial Attorney Gregory R. Gonzalez of the National Security Division’s Counterterrorism Section.

This investigation was conducted by the Boston Joint Terrorism Task Force and the Rhode Island Joint Terrorism Task Force with critical assistance from the Boston Police Department, the Boston Regional Intelligence Center, the Massachusetts State Police, the Commonwealth Fusion Center, the Everett Police Department, Homeland Security Investigations, Rhode Island State Police, the Warwick R.I. Police Department, the Rhode Island Fusion Center,  the Naval Criminal Investigative Service and member agencies of the JTTF.

BOSTON – A Washington D.C. man pleaded guilty yesterday 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, 30, pleaded guilty today to one count of transportation of a minor in interstate commerce to engage in illegal sexual activity.  U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Dec. 14, 2016. 

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 warrant.  The two admitted that they had met on a mobile dating app in July, had traveled to Boston from Maryland, and had 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.  That case is pending in Suffolk Superior Court.

The charge of transportation of a minor in interstate commerce to engage in illegal sexual activity provides for a minimum mandatory term 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 up to $250,000.  Actual sentences for federal crimes are typically less than the maximum penalties.  Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors. 

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.  The case is being prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit. 

BOSTON – U.S. Attorney Carmen M. Ortiz hosted a roundtable discussion on Monday, Sept. 21, 2016, with local Lesbian, Gay, Bisexual, Transgender and Intersex (LGBTI) advocates to discuss civil rights issues affecting the community in anticipation of National Coming Out Day on October 11th and LGBTI History Month, also in October. 

“Though we should be proud of the historic progress that has been achieved to ensure that LGBTI individuals can finally receive the equal protection and treatment that they deserve, we cannot become complacent and think that our work is complete,” said U.S. Attorney Ortiz.  “The Civil Rights Unit is committed to ensuring that LGBTI individuals have access and equal opportunities in all areas – schools, places of employment and places of public accommodation.”

The two-hour roundtable opened with welcoming remarks from U.S. Attorney Ortiz, and featured an overview of the Justice Department’s work protecting the rights of LGBTI individuals by Civil Rights Unit Chief Jennifer Serafyn.  During the roundtable discussion, advocates had the opportunity to voice their views and identify the most pressing issues facing the LGBTI community.

Many local advocates were invited to attend, including the Boston Alliance of Gay, Lesbian, Bisexual and Transgender Youth, the Massachusetts Transgender Political Coalition, MassEquality, Fenway Community Health Center, GLAD, the AIDS Action Committee of Massachusetts, and Speak OUT. 

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

BOSTON – Three men pleaded guilty today in U.S. District Court in Boston in connection with the sex trafficking of a minor. 

Tyrell Gorham, a/k/a Sheek, 31, of Lewiston, Maine pleaded guilty to an indictment charging him with one count of sex trafficking a minor.  Lee Young, a/k/a Chop, 34, of Brockton, and Chelanjei Greene, a/k/a Young, 34, waived indictment and pleaded guilty to conspiring to commit sex trafficking of a minor.  U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Dec. 14, 2016.  If the Court accepts the guilty pleas, Gorham will be sentenced to 12 years in prison, Young to between 84 and 121 months in prison and Greene to between 72 and 100 months in prison.

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, who was actually an undercover law enforcement officer. 

The charge of sex trafficking of a minor provides for a minimum mandatory 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 conspiracy to commit sex trafficking of a minor provides for a sentence of no greater than life 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 judge based upon the U.S. Sentencing Guidelines and other statutory factors.

The case was investigated by the Federal Bureau of Investigation’s Boston Child Exploitation Task Force (CETF).  Significant investigative assistance was provided by the FBI; the Boston Police Department Child Abuse and Human Trafficking Units; the Arlington, Malden, Norwood, Revere, Saugus, Woburn, and Brockton Police Departments; the Massachusetts State Police; and the Massachusetts State Police Human Trafficking Unit of the Massachusetts Attorney General’s Office. 

United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, made the announcement today.  The case is being prosecuted by Assistant U.S. Attorneys Emily Cummings and Timothy Moran of Ortiz’s Civil Rights Enforcement Team.

BOSTON – A Worcester man pleaded guilty and was sentenced yesterday in U.S. District Court in Worcester on child pornography charges.  

Jared Bissell, 24, pleaded guilty to receipt and possession of child pornography.  U.S. District Court Judge Timothy S. Hillman sentenced Bissell to five years in prison and five years of supervised release.     

On July 28, 2014, law enforcement officers executed a federal search warrant at Bissell’s residence in Worcester.  Bissell immediately told law enforcement officers that he knew why they were present and that they would find what they were looking for on a computer in his bedroom.  An initial forensic review of the computer revealed hundreds of videos and images containing child pornography, some of which involved children as young as three years old.  Bissell also gave authorities a recorded confession during which he admitted to seeking out and downloading child pornography from the internet.  

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; and Worcester Police Chief Steven M. Sargent, made the announcement.  The case was prosecuted by Assistant U.S. Attorney Mark Grady of Ortiz’s Worcester 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.   

BOSTON – In concurrence with National Prescription Opioid and Heroin Epidemic Awareness Week, the U.S. Attorney’s Office has reached separate civil settlements with Tufts Medical Center and Eaton Apothecary to resolve allegations of violations of the Controlled Substances Act. 

Today, the U.S. Attorney’s Office reached a $100,000 civil settlement with Tufts Medical Center in connection with the hospital’s negligent recordkeeping of its controlled substances.

“We are committed to using all the tools at our disposal to combat the opioid crisis in Massachusetts,” said United States Attorney Carmen M. Ortiz.  “Tufts Medical Center’s willingness to work with the DEA to strengthen controlled substances recordkeeping and security has brought this investigation to a successful conclusion.”

“DEA registrants are responsible for handling controlled substances and ensuring that complete and accurate records are being properly kept and accounted for in compliance with the Controlled Substances Act.  When these responsibilities are not adhered to, it allows for the diversion of prescription pain medication, which contributes to the widespread abuse of opiates, is the gateway to heroin addiction, and is devastating our communities,” said Special Agent in Charge Michael J. Ferguson.  “In response to the ongoing opioid epidemic, DEA’s obligation is to improve public safety and public health, and we are committed to working with our law enforcement and regulatory partners to ensure that these rules and regulations are followed.”

According to the settlement agreement, the hospital failed to maintain accurate inventories of controlled substances and associated records, to keep tight control of prescription pads, and to make required reports to the DEA about thefts or significant losses of controlled substances associated with three former nurses.  Tufts Medical Center agreed to pay $100,000 to settle these claims and to permit the DEA to perform administrative inspections of the hospital for the next three years without a warrant.

Upon learning of the violations of the Controlled Substances Act at the hospital, Tufts Medical Center cooperated fully with the federal investigation.  It also initiated the implementation of new recordkeeping procedures and security measures, including the installation of cameras and lockboxes, to ensure compliance with regulations and to avoid diversion of controlled substances from medical offices.

On September 2, 2016, the U.S. Attorney’s Office reached a $100,000 civil settlement with Eaton Apothecary in connection with its improper distribution of addictive narcotics.

“Controlled substances that are handled by pharmacies are subject to strict requirements because of their potential for harm and abuse, which fuels the opioid epidemic,” stated U.S. Attorney Ortiz. “For the sake of patient safety, and to ensure that medications are not stolen or sold on the street, we will continue to monitor pharmacies to ensure that they comply with all legal requirements related to the handling, dispensing, and recordkeeping of controlled substances.”

“Pharmacies put patients at risk when they dispense Schedule II narcotics, which have a high potential for abuse and are extremely addictive, without a valid prescription from a physician,” said DEA SAC Ferguson. “This settlement demonstrates DEA’s pledge to work with our law enforcement and regulatory partners in Massachusetts to ensure that these rules and regulations are followed.” 

Eaton Apothecary operates 13 retail pharmacies in eastern Massachusetts.  According to the settlement, from January 2012 to January 2016, Eaton Apothecary in Canton dispensed Schedule II medications without a signed prescription on more than 2,000 occasions to Boston-area nursing homes, assisted living facilities, and adult day care centers.  On each occasion, the pharmacy received a faxed request from a facility operated by Upham’s Elder Service Plan/PACE, and delivered the drugs to the facility.  Then the pharmacy prepared and printed a computer-generated prescription for each order and delivered the printed prescriptions in bulk to Upham’s Medical Director, who signed them after the drugs had already been dispensed.  In addition, on two occasions, the pharmacy accepted partly opened blister packs containing unused controlled substances, in violation of DEA regulations.  DEA regulations allow unused controlled substances to be returned to a pharmacy only in tamper-proof envelopes that the pharmacy accepts by mail and destroys without opening, or through a locked collection receptacle located in the pharmacy.

These matters were 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, sale, distribution and misuse of prescription pain medication.  As a result, federal, state and local law enforcement and public health authorities are collaborating to support safe prescribing and dispensing of opioid medications.   

For more information on National Prescription Opioid and Heroin Epidemic Awareness Week, visit the Department of Justice’s website.

U.S. Attorney Ortiz and DEA SAC Ferguson made the announcements today.  The Tufts Medical Center case was handled by Assistant U.S. Attorneys Kriss Basil and Jessica Driscoll, and the Eaton Apothecary case was handled by Assistant U.S. Attorney Christine Wichers, of Ortiz’s Civil Division.

###

BOSTON – Three Cape Cod men have pleaded guilty in U.S. District Court in Boston in connection with trafficking heroin and conspiring to possess a firearm in furtherance of heroin trafficking.

Sean Pratt, 28, of Marstons Mills, pleaded guilty on Friday, Sept. 16, 2016 to conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin and possession of heroin with the intent to distribute.  U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for Dec. 16, 2016.  Benjamin Roderick, 20, of Hyannis, pleaded guilty yesterday to conspiracy to possess a firearm in furtherance of drug trafficking.  Judge Saris scheduled sentencing for Jan. 10, 2017.    

In October 2015, law enforcement initiated an effort to address the rising opiate epidemic in Massachusetts and on Cape Cod in particular.  As alleged in a criminal complaint, Denzel Chisholm, Christopher Wilkins and other co-conspirators are responsible for a significant quantity of the heroin that has been distributed on Cape Cod.  Pratt purchased large quantities of heroin from Chisholm and sold it to other distributors.  During a search of Pratt’s home, law enforcement officers recovered heroin and a firearm.  Roderick regularly purchased heroin from Wilkins for distribution and personal use.  On March 7, 2016, Roderick attempted to trade Wilkins a firearm for 10 grams of heroin, however, Roderick was arrested prior to exchanging the gun with Wilkins. 

Richard Serriello, 30, of West Dennis, pleaded guilty on Friday, Sept. 16, 2016 to possession of heroin with the intent to distribute.  U.S. District Court Senior Judge Mark L. Wolf scheduled sentencing for Dec. 20, 2016.

On May 21, 2015, law enforcement officers recovered approximately 400 grams of heroin from Serriello that he had stowed in his motorcycle.  Earlier that day, investigators observed Serreillo engage in a drug transaction.  When police attempted to stop Serriello, he took off on his motorcycle, swerved into oncoming traffic and evaded law enforcement.  Later that day, Serriello’s motorcycle was found in parked in Dennis and the concealed heroin was discovered.

Chisholm and Wilkins have pleaded not guilty to the charges against them.

The charge of conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin provides for a mandatory minimum sentence of five years and no greater than 40 years in prison, a minimum of four years and up to a lifetime of supervised release, and a fine of $5 million.  The charge of conspiracy to possess a firearm in furtherance of drug trafficking provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000.  The charge of possession of heroin with the intent to distribute provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release and a fine of $1 million.  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; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Cape and Islands District Attorney Michael O’Keefe; and Barnstable Police Chief Paul MacDonald, made the announcement today.  These cases are being prosecuted by Assistant U.S. Attorney Eric S. Rosen of Ortiz’s Narcotics and Money Laundering Unit. 

###

BOSTON – U.S. Attorney Carmen M. Ortiz announced that William Weinreb has been appointed to serve as First Assistant United States Attorney for the District of Massachusetts.  Weinreb previously served as Counsel to the U.S. Attorney for two years, and was Deputy Chief of the National Security Unit and Coordinator of the Anti-Terrorism Advisory Council.

“Bill has served as a trusted advisor to me, sharing his expertise and legal acumen cultivated by years as a litigator, on numerous sensitive legal and law enforcement matters handled by the Office,” said U.S. Attorney Ortiz. “Bill’s longstanding commitment to public service, combined with his experience, will serve the District of Massachusetts well, and I look forward to working closely with him in his new role.”

Mr. Weinreb has been the lead prosecutor in a number of high-profile and challenging cases, most notably, the 2015 conviction of Boston Marathon bomber Dzhokhar Tsarnaev.  He received the Attorney General’s Distinguished Service Award for his prosecution of Aftab Ali, a Boston resident who helped fund the attempted car bombing of Times Square.  He also successfully prosecuted Massachusetts’s first case of foreign economic espionage; its first case involving use of a laser to interfere with the operation of an aircraft; and its first case involving the threatened use of a biological weapon (ricin).   

In addition to prosecuting cases, Mr. Weinreb has been a leader in the Office’s outreach efforts to vulnerable communities.  He also helped launch the office’s new Civil Rights Unit and has been a strong advocate for the protection of civil rights and civil liberties in the Commonwealth.

Ms. Weinreb joined the U.S. Attorney’s Office in 2000 after serving for five years as an Assistant U.S. Attorney in the District of Columbia.  Over the course of his career, he has prosecuted numerous violent crime and white collar cases, including rape, attempted murder, child sexual abuse, narcotics trafficking, money laundering, public corruption, insurance fraud and health care fraud.  In additional to his trial work, Mr. Weinreb has argued over 20 cases before the First Circuit, D.C. Circuit and D.C. Court of Appeals.

Before becoming an Assistant U.S. Attorney, Mr. Weinreb was a litigation associate at Shea & Gardner in Washington, D.C. from 1990 to 1995.  Prior to that, he was a law clerk for then-Chief Judge Stephen Breyer of the U.S. Court of Appeals for the First Circuit.   

Mr. Weinreb graduated cum laude from Harvard Law School in 1989, and received his Bachelor of Arts in English Literature from Wesleyan University in 1984.

BOSTON – The former assistant property manager of Roxse Homes, a subsidized housing development in Boston, was sentenced today in U.S. District Court in Boston for his role in a scheme to rent apartments at the housing development to individuals who were not qualified in exchange for cash bribes.

Mathis Lemons, 42, of Brockton, was sentenced by U.S. District Court Chief Judge Patti B. Saris to two years in prison, one year of supervised release and ordered to pay forfeiture of $18,300.  In May 2016, Lemons pleaded guilty to one count of conspiracy and seven counts each of corrupt receipt of payments by a federally funded organization.  His co-defendant, Ismael Morales, pleaded guilty to the same charges and was sentenced in August 2016 to two years in prison.

Lemons was the assistant property manager and Morales worked as a maintenance technician for Roxse Homes, a subsidized housing development on Tremont Street in Roxbury.  At Roxse Homes, eligible low-income families and individuals can obtain rental housing for a subsidized rate with Section 8 housing benefits from the U.S. Department of Housing and Urban Development.  In 2014, there was a shortage of federally subsidized Section 8 housing in Massachusetts, and Roxse Homes maintained a long waitlist of applicants desiring apartments in the complex.  The Roxse Homes waitlist had been closed to external applicants since 2009. 

From September 2014 to February 2015, Lemons and Morales conspired to rent apartments to individuals who were not eligible for subsidized Roxse Homes apartments because they were not on the waitlist.  Morales solicited and accepted money from individuals, and provided those individuals with blank rental applications.  Morales also instructed some of the individuals not to date their applications, or to date their applications in 2006 or 2009, when in fact the applications were completed in 2014.  Lemons then added the unqualified individuals to the Roxse Homes computerized waitlist, and falsely inputted their application dates as 2006 or 2009. 

United States Attorney Carmen M. Ortiz; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of the Inspector General, New York Regional Office; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Glenn A. Cunha, Inspector General of Massachusetts; and Boston Police Commissioner William B. Evans, made the announcement today.  The case was prosecuted by Assistant U.S. Attorneys Kristina E. Barclay and Eugenia M. Carris of Ortiz’s Public Corruption Unit. 

BOSTON – A former Massachusetts-resident pleaded guilty on Friday, Sept. 16, 2016, in U.S. District Court in Boston in connection with running a $10 million Ponzi scheme.

Mark Anderson Jones, 64, pleaded guilty to one count of wire fraud and one count of engaging in monetary transactions in proceeds of unlawful activity.  U.S. District Court Senior Judge Mark L. Wolf scheduled sentencing for Dec. 21, 2016. 

Between 2008 and 2015, Jones obtained approximately $10 million in investments from over 20 individuals by leading them to believe that they would be providing financing to Jamaican businesses.  Jamaican banks can take time to close loans to businesses and Jones claimed that he was offering these businesses “bridge loans” as an interim measure (i.e., to “bridge” the gap between the date a loan was sought from Jamaican banks and the distribution of funds by those banks).  However, Jones made misrepresentations to investors about the purported bridge loan investments and how their money would be used.  Specifically, rather than investing in bridge loans and paying returns based on investments, Jones paid a significant amount of investment returns, or repaid investment principal, to investors from new capital provided by other investors. 

For example, in January 2015, a Massachusetts-based investor invested approximately $200,000 with Jones.  Later that month, Jones used approximately $180,000 of that investor’s money to pay four other investors. 

U.S. Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement.  Valuable assistance was also provided by the U.S. Postal Inspection Service and the Internal Revenue Service’s Criminal Investigations in Boston.  The case is being prosecuted by Assistant United States Attorney Sarah E. Walters, Chief of Ortiz’s Economic Crimes Unit, and Special Assistant U.S. Attorney Eric A. Forni from the SEC.

BOSTON – Two men were charged in an indictment unsealed yesterday in connection with a large-scale marijuana distribution and money laundering ring operating between California and the East Coast. 

Virayuth Chau, a/k/a David Chau, 40, of Temecula, Calif., was indicted on one count of conspiracy to distribute over 1,000 kilograms of marijuana and two counts of conspiracy to launder money.  Chau was arrested yesterday in Temecula, Calif.  Ratanack Oung, a/k/a Yoshi, 31, of Allentown, Penn., was indicted on one count of conspiracy to distribute and possess with intent to distribute marijuana and two counts of conspiracy to launder money.  Oung is a fugitive from justice.

As alleged in the indictment, beginning around January 2014, Chau and Oung shipped large quantities of marijuana from California to the East Coast of the United States.  When payment for the marijuana was due, co-conspirators deposited cash (typically in an amount under $10,000) into one of many “feeder” accounts in banks on the East Coast.  The “feeder” accounts were maintained in the names of businesses or persons associated with Chau in order to disguise the nature and ownership of the drug proceeds flowing into the account.  Once the money was deposited, it was either withdrawn in cash in California or transferred into a “target” account, which was an account controlled by Chau and then withdrawn.  In total, the operation is alleged to have laundered approximately $6,135,035 in drug proceeds.

On Sept.14, 2016, law enforcement officers executed a series of federal and state search warrants of marijuana grow houses allegedly operated by Chau in Riverside County, Calif.  During these operations, more than 5,000 marijuana plants were seized and destroyed.

The charge of conspiracy to distribute over 1,000 kilograms of marijuana provides a mandatory minimum sentence of 10 years and up to a lifetime in prison, a minimum of five years of supervised release, and a fine of $10 million.  The charge of conspiracy to distribute and possess with intent to distribute marijuana provides a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of $1 million.  The charge of money laundering provides a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000.  Actual sentences for federal crimes are typically less than the maximum penalties.  Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

U.S. Attorney Carmen M. Ortiz; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today.  The DEA, Los Angeles Division, Riverside County (California) Sheriff’s Department and Murrieta (California) Police Department also assisted with the investigation.  This case is being prosecuted by Assistant U.S. Attorney Eric Rosen of Ortiz’s Narcotics & Money Laundering Unit.

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

BOSTON – A Hingham woman was sentenced today in U.S. District Court in Boston for defrauding mortgage companies in connection with multiple mortgages she obtained on a single residence. 

Denise Bruce, 56, was sentenced by U.S. District Court Senior Judge Douglas P. Woodlock to two years in prison, five years of supervised release and restitution of $2,810,497.  In May 2016, Bruce pleaded guilty to five counts of bank fraud. 

Between 2004 and 2008, Bruce fraudulently obtained five mortgage loans from different banks in amounts ranging from $325,000 to $487,500 on her Hingham property by submitting false information regarding her employment history, income, assets, and debt.  Bruce also filed fraudulent discharges of mortgages with the Plymouth County Registry of Deeds to create the appearance that earlier loans had been paid in full, when in fact, none of the loans had been paid.  In total, Bruce obtained $2,129,000 in proceeds from her fraudulent loans. 

United States Attorney Carmen M. Ortiz; Steven Perez, Special Agent in Charge of the Federal Housing Finance Agency, Office of Inspector General, Northeast Region; and Christy Goldsmith Romero, Special Inspector General for the Office of the Special Inspector General for the Troubled Asset Relief Program, made the announcement today.  The case was prosecuted by Assistant U.S. Attorney Victor A. Wild of Ortiz’s Economic Crimes Unit. 

BOSTON – A former U.S. Postal Service employee was sentenced yesterday for fraudulently obtaining worker’s compensation for medical travel.

Joseph Bouchard, 67, of Georgetown, Mass. was sentenced by U.S. District Court Magistrate Judge Marianne B. Bowler to six months’ probation and ordered to pay a fine of $5,000 and restitution of $50,000.  In June 2016, Bouchard pleaded guilty to one count of fraud in obtaining federal employee compensation. 

From January 1986 to December 2009, Bouchard was employed as a letter carrier in Reading, Mass.  As a civilian employee of the federal government, Bouchard was entitled to obtain reimbursement for medical travel after sustaining an injury while working in his official capacity.  From 2008 to 2014, while Bouchard was on medical leave, he submitted dozens of travel vouchers to fitness centers in Lexington, Lynnfield and Bedford for dates when he did not actually use those gyms or used a different gym of closer proximity.  During an interview with federal agents in April 2016, Bouchard admitted that he submitted the false claims intentionally and that he was upset with the Postal Service because of the hassles he encountered while seeking accommodations for his injury.  Bouchard’s fraudulent submissions totaled approximately $50,000. 

United States Attorney Carmen M. Ortiz and Eileen Neff, Special Agent in Charge of the U.S. Postal Service, Office of the Inspector General in Boston, made the announcement.  This case was prosecuted by Assistant U.S. Attorney Eugenia M. Carris of Ortiz’s Public Corruption Unit.

BOSTON – A former officer of a Woburn company was sentenced today in U.S. District Court in Boston for embezzling over $1.3 million dollars from her employer over a ten-year period.

Dawnmarie Prince, 47, of Fitchburg, was sentenced by U.S. District Court Senior Judge Rya W. Zobel to four years in prison, three years of supervised release and ordered to pay restitution of $1,381,664.  In June 2016, Prince pleaded guilty to eight counts of bank fraud and one count of aggravated identity theft.  

Between 2000 and 2015, Prince worked as an office manager of a small, life science technology firm.  As office manager, Prince had access to the firm’s electronic accounting program, which the company relied on to track purchase orders and vendor invoices, as well as to print company checks.  From at least 2005 to May 2015, Prince used her position as office manager to create and steal hundreds of the company’s checks, which she made payable to herself or to her son.  Prince then forged her boss’s signature on the stolen checks, and deposited them into her personal bank accounts. 

To conceal her criminal conduct and avoid detection, Prince intercepted bank statements and removed all copies of the negotiated checks.  She also falsified entries into the accounting program to make it appear as if the checks had been used to satisfy legitimate vendors payments, when in fact, no such invoices were due and Prince had deposited the checks into her personal bank accounts.  Over the course of the fraud, Prince embezzled over $1.3 million dollars, which she used to fund trips to casinos, annual vacations, car purchases, and other personal and entertainment expenses such as trips to car shows across the country. 

In 2001, Prince was convicted in federal court in Boston of mail fraud for defrauding a previous employer and sentenced to three years of probation and ordered to pay restitution.  Prince was employed as a claims analyst for a subsidiary company of a Boston-based health plan.  Shortly after starting that job, Prince created and submitted numerous false medical provider claims to the health plan.  As a result, Prince received almost $50,000 in claims checks, which she endorsed and deposited into her personal bank account.  Prince’s recent fraud came to light after Prince provided false and incomplete financial information to the U.S. Attorney’s Office’s Financial Litigation Unit, which was responsible for collecting the outstanding restitution payments on the 2001 case.  

United States Attorney Carmen M. Ortiz and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division, made the announcement today.  The case was prosecuted by Assistant United States Attorney Jordi de Llano of Ortiz’s Economic Crimes Unit.

BOSTON – A Peabody man was sentenced today in U.S. District Court in Boston for receipt and possession of child pornography.

Patrick Lynch, 24, was sentenced by U.S. District Court Judge Richard G. Stearns to six years in prison and 10 years of supervised release.  Upon release, Lynch must register as a sex offender.  In June 2016, Lynch pleaded guilty to one count of receipt of child pornography and one count of possession of child pornography. 

Beginning in May 2013, Lynch began receiving emails containing images and videos of children as young as one-year-old being sexually exploited.  On Dec. 12, 2014, during the execution of a search warrant at his residence, Lynch admitted to law enforcement officers that he received emails containing pictures of elementary school-aged children naked, posing, and engaging in sexual acts.  He admitted to viewing images of child pornography on a website and to viewing child pornography on his laptop while at a Boy Scout camp in New Mexico.  Lynch also communicated online with children and exchanged sexually explicit images.  Prior to law enforcement executing the search warrant, Lynch deleted the application and cleared his phone’s Internet history. 

A further investigation revealed that Lynch had been employed at the Greater Beverly YMCA, and had recently begun employment with Beanstalk Adventure Ropes Course in Reading, Mass. 

United States Attorney Carmen M. Ortiz and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today.  Assistance was also provided by the Massachusetts State Police and the Peabody Police Department.  The case was prosecuted by Assistant U.S. Attorney Suzanne Jacobus of Ortiz’s Major Crimes Unit.

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

BOSTON – A Jamaican citizen living in Fall River pleaded guilty today in U.S. District Court in Boston in connection with using her sister’s identity to enter the United States and collect over $140,000 in Social Security benefits.

Sandra McDonald, 51, a Jamaican citizen living in Fall River, pleaded guilty to passport fraud, two counts of theft of public money and misrepresenting a Social Security number.  U.S. District Court Judge Denise J. Casper scheduled sentencing for Dec. 20, 2016.  McDonald has been held in custody since her arrest in May 2016. 

McDonald was born in Jamaica.  In 1990, McDonald obtained a U.S. resident alien card under her sister’s name, but with her own photograph and fingerprint on the card.  Shortly after entering the United States under her sister’s identity, McDonald obtained a Social Security card, also in her sister’s name.  In 1996, McDonald applied for Social Security Supplemental Security Income benefits under her sister’s identity, and to date she has received more than $140,000 in benefits illegally.  McDonald also illegally received nearly $30,000 in MassHealth benefits under her sister’s identity.

In addition, McDonald used a second woman’s identity to apply for a passport in 2008, and a third woman’s identity to obtain a driver’s license in 2012.   

The charges of passport fraud and theft of public money each provide for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater.  The charge of misrepresenting a Social Security number provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater.  Actual sentences for federal crimes are typically less than the maximum penalties.  Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.            

United States Attorney Carmen M. Ortiz; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; David W. Hall, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General, Office of Investigations; Suzanne M. Bump, State Auditor of the Commonwealth of Massachusetts; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today.  The case is being prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.

BOSTON – A Boston man pleaded guilty today in U.S. District Court in Boston to sex trafficking charges.

Akil J. DeCoteau, 28, pleaded guilty to one count of transportation of an individual with intent to engage in prostitution and one count of conspiracy to transport an individual for prostitution.  U.S. District Court Judge Denise J. Casper scheduled sentencing for Nov. 30 2016. 

In January 2014, DeCoteau met a woman at a friend’s apartment in Maine.  DeCoteau asked the woman to work for him as a prostitute and that, in exchange, he would take care of her and provide her with food and shelter.  The woman, who had no place to live at the time, agreed.  DeCoteau took the woman to a hotel in Westbrook, Maine, rented a room, and posted advertisement online offering sex with the woman for a fee.  DeCoteau charged men between $100 to $200 to have sex with the woman, and kept all of the money.

Over the course of two weeks, 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 that woman received in exchange for the sexual services.

Last week, DeCoteau’s co-defendant, Kwamaine Wells pleaded guilty to related charges and is scheduled to be sentenced on Dec. 1, 2016.     

United States Attorney Carmen M. Ortiz; Matthew Etre, Special Agent in Charge of the 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.  The case is being prosecuted by Assistant U.S. Attorneys Miranda Hooker and Leah Foley of Ortiz’s Civil Rights Enforcement Team.

BOSTON – Frank “Cadillac” Salemme, a former boss of the New England Family of La Cosa Nostra (NELCN), and former NELCN associate Paul Weadick, were charged in an indictment unsealed today in connection with the 1993 murder of Steven A. DiSarro.

Francis P. Salemme, 83, and Paul Weadick, 61, of Burlington, were indicted on one count of murder of a federal witness.  On Aug. 10, 2016, Salemme was arrested pursuant to a criminal complaint.  Weadick was arrested this morning and will appear before U.S. District Court Magistrate Judge Donald. L. Cabell in Boston at 12:45 p.m.

The indictment alleges that, on or about May 10, 1993, Salemme and Weadick murdered DiSarro to prevent DiSarro from communicating with federal law enforcement officials about violations of federal laws by Salemme and others.  Shortly after the murder, Salemme transported DiSarro’s body to Providence, R.I., where his associates arranged to have it buried in the vicinity of 715 Branch Avenue.  In March 2016, DiSarro’s remains were recovered by federal authorities behind a mill in Providence, R.I.

DiSarro was murdered after his relationship with Salemme and Salemme’s son, Francis P. Salemme, Jr., became the subject of federal investigation.  Part of that investigation revolved around the operation of a South Boston night club known as “The Channel.”  Weadick was a close associate of Salemme, Jr.

Salemme was the boss of the New England La Cosa Nostra during the early 1990’s until his indictment for racketeering in 1995 and conviction in 1999.  He was subsequently convicted of obstruction of justice in 2008 for lying to federal authorities about the murder of DiSarro.

The charge of murder of a federal witness provides for a sentence of death or life in prison, five 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 for the District of Massachusetts; United States Attorney Peter F. Neronha for the District of Rhode Island; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Richard D. McKeon, Superintendent of the Massachusetts State Police; Steven G. O’Donnell, Superintendent of the Rhode Island State Police; and Chief Michael Kent of the Burlington Police Department, made the announcement today.  Assistance was provided by the Norfolk County District Attorney’s Office.  The case is being prosecuted by Assistant U.S. Attorneys Fred M. Wyshak, Jr. of Ortiz’s Office and William J. Ferland of Neronha’s Office.

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

BOSTON – A Brockton man pleaded guilty today in U.S. District Court in Boston to sex trafficking charges.

Kwamaine J. Wells, 27, pleaded guilty to four counts of transportation of an individual with intent to engage in prostitution and one count of conspiracy to transport an individual for prostitution.  U.S. District Court Judge Denise J. Casper scheduled sentencing for Dec. 1, 2016. 

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 engage in prostitution.  Wells also allegedly conspired with a co-defendant to transport women between Massachusetts, New Jersey and New York with the intent that they engage in prostitution. 

United States Attorney Carmen M. Ortiz; Matthew Etre, Special Agent in Charge of the Homeland Security Investigations in Boston; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Divison, made the announcement today.  The case is being prosecuted by Assistant U.S. Attorneys Miranda Hooker and Leah Foley of Ortiz’s Civil Rights Enforcement Team.

BOSTON – A former Massachusetts attorney pleaded guilty today in U.S. District Court in Boston in connection with a scheme to defraud a veteran.  

Matthew J. McCarthy, 48, of Lowell, Mass., pleaded guilty to an Information charging him with one count of theft of public money.  U.S. District Court Judge Dennis F. Saylor  IV scheduled sentencing for Nov. 22, 2016. 

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 by writing checks to himself from the veteran’s bank account and to third parties, endorsing those checks, cashing them, and appropriating the money.  In total, McCarthy appropriated about $36,000.

The charging statute provides 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.

United States Attorney Carmen M. Ortiz and Jeffrey Hughes, Special Agent in Charge of the U.S.  Department of Veterans Affairs, Office of the Inspector General, Northeast Field Office, made the announcement today.  The case is being prosecuted by Assistant U.S. Attorney Giselle J. Joffre of Ortiz’s Major Crimes Unit.

BOSTON – A Canadian man pleaded guilty today in U.S. District Court in Boston in connection with his role in a drug trafficking and money laundering organization that imported marijuana and MDMA, the club drug also known as “ecstasy” or “mollie”, from Canada into the United States.

Gurshuran Singh, 33, of Brampton, Ontario, Canada, pleaded guilty to one count of conspiracy to distribute MDMA and marijuana and one count of money laundering conspiracy.  Singh was arrested in Canada in May 2014.  In July 2016, he was temporarily surrendered from Canada to the United States to plead guilty to the charges in the indictment and unrelated drug charges in the U.S. District Court in the Western District of New York.  U.S. District Court Judge Denise J. Casper scheduled sentencing for Dec. 7, 2016.

From the summer 2011 to approximately March 2012, Singh agreed with a co-conspirator to transport MDMA and marijuana over the Canadian-U.S. border in Michigan.  Singh then recruited a courier to drive the MDMA and marijuana on at least three occasions to Joshua Rabinovitch, a Salem, Mass. man, who sold the drugs and returned the proceeds to Canada.  In April 2012, Singh separately recruited another co-defendant, Adeel Bhutta, to pick up what Singh and Bhutta believed to be $240,000 in drug proceeds from Rabinovitch’s sale of MDMA in Massachusetts. 

In July 2014, Judge Casper sentenced Bhutta to 28 months in prison for his role in the money laundering conspiracy.  In February 2015, U.S. District Court Judge Richard G. Stearns sentenced Rabinovitch to 24 month in prison for his role in the drug trafficking and money laundering conspiracies.  David Nguyen, a third co-defendant charged in the indictment, is the subject of an extradition request to Canada and faces charges for both the drug and money laundering conspiracies. 

The narcotics charge provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release and a fine of $1 million.  The money laundering charge 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 money involved in the laundering transactions.  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 J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today.  The U.S. Attorney acknowledges the Department of Justice’s Office of International Affairs for its assistance in securing Singh’s temporary surrender to the United States.  The case is being prosecuted by Assistant U.S. Attorneys Seth B. Kosto and Timothy E. Moran of Ortiz’s Criminal Division. 

BOSTON – As part of an ongoing investigation into the criminal activities of leaders, members, and associates of the criminal organization “La Mara Salvatrucha,” or “MS-13,” a federal grand jury has handed down a fourth superseding indictment adding allegations that six members of MS-13 murdered a 16-year-old in July 2015.

Oscar Noe Recinos-Garcia, a/k/a “Psycho;” German Hernandez-Escobar, a/k/a “Terible;” Noe Salvador Perez-Vasquez, a/k/a “Crazy;” Jose Rene Andrade, a/k/a “Triste,” a/k/a “Inocente;” Josue Alexis De Paz, a/k/a “Gato;” and Manuel Diaz-Granados, a/k/a “Perverso,” are charged with federal racketeering conspiracy, the object of which included the murder of Jose Aguilar-Villanueva, a/k/a “Fantasma”, age 16, who was stabbed to death in O’Connell Park in Lawrence on July 5, 2015. Four of these six individuals -- Recinos-Garcia, Hernandez-Escobar,  Perez-Vasquez, and Andrade -- were previously charged with racketeering conspiracy. De Paz and Diaz-Granados are newly charged. In documents previously filed with the Court, Hernandez-Escobar and Perez-Vasquez are identified as leaders of MS-13’s Everett Loco Salvatrucha (ELS) clique.

The superseding indictment alleges that on July 5, 2015, the defendants stabbed Aguilar-Villanueva to death in O’Connell Park in Lawrence.  Including the murder of Aguilar-Villanueva, the fourth superseding indictment now alleges that a total of 17 members of MS-13 are responsible for six murders from October 2014 to January 2016 in Chelsea, East Boston, and Lawrence, as well as the attempted murders of at least 15 people. Two MS-13 members -- Edwin Gonzalez, a/k/a “Sangriento;” and Noe Perez-Vasquez, a/k/a “Crazy,” are named as participants in two of the RICO murders. The fourth superseding indictment re-alleges that more than fifty leaders, members, and associates of MS-13 conspired to commit murder, attempted murder, and drug trafficking. Various other defendants are also charged with drug trafficking, firearm violations, immigration offenses, and fraudulent document charges.

The charge of RICO conspiracy provides a maximum sentence of 20 years in prison, or life if the violation is based on racketeering activity for which the maximum penalty includes life imprisonment; three years of supervised release; and a fine of $250,000. 

United States Attorney Carmen M. Ortiz; Jonathan Blodgett, Essex County District Attorney; 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; Chief James X. Fitzpatrick of the Lawrence Police Department; Commissioner  Thomas Turco of the Massachusetts Department of Corrections; Sheriff Frank G. Cousins, Jr. of the Essex County Sheriff Department; Sheriff Steven W. Tompkins of the Suffolk County Sheriff’s Department; Daniel F. Conley, Suffolk County District Attorney; Marian T. Ryan, Middlesex County District Attorney; 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 Coppinger of the Lynn Police Department; Chief Joseph Cafarelli of the Revere Police Department; and Chief David Fallon of the Somerville Police Department, made the announcement today.

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

**********

The following defendants are charged with racketeering influenced corrupt organization (RICO) conspiracy, the object of which included the murder of Jose Aguilar-Villanueva:

Previously charged:

1.  Oscar Noe Recinos-Garcia, a/k/a “Psycho,” 22, of Somerville

3.  German Hernandez-Escobar, a/k/a “Terible,” 28, of Medford

4.  Noe Salvador Perez-Vasquez, a/k/a “Crazy,” 25, of Somerville

19. Jose Rene Andrade, a/k/a “Triste, a/k/a “Innocente,” 24, of Somerville

Newly added:

60. Jose Alexis De Paz, a/k/a “Gato,” age 19, of Lawrence

61. Manuel Diaz-Granados, a/k/a “Perverso,” age 19, of Somerville (deported)

BOSTON – A federal inmate pleaded guilty yesterday in U.S. District Court in Boston in connection with escaping from Coolidge House Residential Reentry Center in Boston.

Jason Barreto, 30, pleaded guilty to one count of escape from federal custody.  U.S. District Court Judge Richard G. Stearns scheduled sentencing for Nov. 22, 2016.

In September 2011, Barreto was convicted in the U.S. District Court in Rhode Island of one count of conspiracy to distribute oxycodone and was sentenced to 70 months in prison.  On May 21, 2015, Barreto was transferred from the U.S. Penitentiary Big Sandy in Kentucky, to Coolidge House Residential Reentry Center in Boston to serve the remainder of his sentence.  Barreto was scheduled to be released on Nov. 1, 2015.

On Sept. 17, 2015, following an incident at Coolidge House, Barreto walked out of the facility without authorization and did not return.  On April 8, 2016, after receiving information regarding Barreto’s location, the U.S. Marshals Service arrested Barreto at Harrah’s Hotel and Casino in Atlantic City, New Jersey.   

United States Attorney Carmen M. Ortiz and U.S. Marshal John Gibbons of the District of Massachusetts made the announcement.  The case is being prosecuted by Assistant U.S. Attorney Nicholas Soivilien of Ortiz’s Major Crimes Unit.

BOSTON – A Lieutenant with the Quincy Police Department was charged in an indictment unsealed today in connection with collecting double pay while working for the Quincy Police Department in 2015.

Thomas Corliss, 51, was indicted on 12 counts of mail fraud and one count of fraud involving federal funds.  Corliss was released on conditions following an appearance before U.S. District Court Magistrate Judge Jennifer C. Boal.

As alleged in the indictment, an internal investigation by the Quincy Police Department revealed that Lieutenant Corliss had fraudulently collected double pay for working multiple details and/or police shifts that overlapped on multiple occasions in 2015.  It is also alleged that Corliss collected his regular pay while on vacation in the Bahamas and on Cape Cod in 2015.  In total, Corliss’s defrauded the QPD of more than $10,000. 

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

United States Attorney Carmen M. Ortiz; Ronald G. Gardella, Special Agent in Charge of the Department of Justice Office of the Inspector General, New York Field Office; 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 Dustin Chao and Ryan DiSantis of Ortiz’s Public Corruption Unit.

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

BOSTON – A Holliston man was arrested in connection with his possession of a trove of weapons, ammunition and incendiary material, and his threats to use them.  

Joseph Garguilo, 40, was charged in a criminal complaint with being a prohibited person in possession of ammunition.  Garguilo is scheduled to appear before U.S. District Court Magistrate Judge Jennifer C. Boal in Boston today at 2:30 p.m.                                                                       

According to the charging documents, on July 27, 2016, the FBI received information Garguilo had recently acquired parts to make an AR-15 rifle, and he was stockpiling other weapons including tasers, mace guns, hunting knives and thermite (an incendiary).  Around the same time Garguilo allegedly stated that “he will plant a bomb in police station…and kill as many homeland security officers as he can before they kill him.”  The FBI then initiated an investigation.  In recent days, the FBI learned that Garguilo had stated that he wanted to attack a mosque and/or kill President Obama.  Garguilo also allegedly said he wanted to, “chain a mosque closed and burn it down.”  Garguilo did not mention any specific mosque or time for this attack. The FBI also learned that Garguilo was stockpiling food and water as part of his plan, and that an acquaintance of Garguilo’s believed he was “about to snap.” 

On Aug. 26, 2017, federal agents conducted a search of Garguilo’s residence and seized parts to assemble an AR-15 rifle, ammunition for the AR-15 rifle, nine millimeter ammunition, chemicals that could be combined to create incendiary or explosive compounds, and hand written notes threatening violent attacks against members of the Islamic faith.

As alleged in court documents, Garguilo is the subject of an active restraining order which prohibits him from possessing firearms and ammunition based upon a finding that “there is substantial likelihood of immediate danger of abuse…”

The charging statute provides 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.

United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge Federal Bureau of Investigation, Boston Field Division; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Holliston Police Chief John J. Moore; and Medway Police Chief Allen M. Tingley, made the announcement today.  The case is being prosecuted by Assistant U.S. Attorneys Lori Holik and Mark Grady of Ortiz’s Criminal Division.

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

BOSTON – A real estate developer and a former City of Worcester housing official were charged in U.S. District Court in Worcester this week in connection with a $2.3 million fraud scheme relating to the redevelopment of a multi-family property in Worcester.

James E. Levin, 57, of Natick, a real estate developer and attorney, and Jacklyn M. Sutcivni, 43, of Dracut, a former employee of the City of Worcester’s Housing Development Office and Executive Office of Economic Development, were indicted for conspiracy to commit wire fraud, wire fraud, conspiracy to defraud the United States and false claims.  Levin was arrested yesterday and released on conditions.  Sutcivni appeared in court today and was also released on conditions.

As alleged in court documents, from July 2010 to September 2011, Levin submitted fraudulent payment requests to the City of Worcester for funding from the U.S. Department of Housing and Urban Development (HUD) to purportedly rehabilitate a multi-unit apartment building at 5 May Street in Worcester.  Specifically, Levin, as the manager of 5 May Street Apartments, LLC, applied for and obtained federal funds from HUD, through the City of Worcester, to rehabilitate the building.  Since the City of Worcester distributes grant funds on behalf of HUD and Massachusetts Department of Housing and Community Development (DHCD), Levin submitted seven payment requests to the City for work he fraudulently claimed he completed on the building and associated costs.  Sutcivni, in her job in the City of Worcester’s Housing Development Office, approved the payment requests submitted by Levin although she knew the requests were fraudulent.  It is alleged that this caused the City of Worcester to pay approximately $2,365,050 to Levin.  After the City issued the payment, Sutcivni or other City officials submitted reimbursement requests to HUD or DHCD for HUD funds.

The charges of conspiracy to commit wire fraud and wire fraud each provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $1 million, or twice the gross gain or loss, whichever is greater.  The charge of conspiracy to defraud the United States provides for a sentence of no greater than10 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 submission of false claims 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.  The indictment also seeks monetary forfeiture in the amount of $2,365,050.  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 U.S. Department of Housing and Urban Development, Office of the Inspector General, Northeast Regional Office; 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. Attorney Michelle L. Dineen Jerrett of Ortiz’s Worcester Branch Office.

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

Boston – A Southbridge, Mass., man was sentenced yesterday in U.S. District Court in Worcester in connection with illegally shipping hundreds of firearm parts to people in 20 countries, including France, Finland, Indonesia, New Zealand, Thailand, Spain, Australia, and Germany. 

David L. Maricola, 60, was sentenced by U.S. District Court Judge Timothy S. Hillman to 33 months in prison, three years of supervised release and ordered to forfeit 30 firearms and more than 1,000 firearm components.  In April 2016, Maricola pleaded guilty to a 32-count indictment charging him with conspiracy, illegally exporting defense articles, making false statements on customs forms, and money laundering.

In 2015, Maricola and Arto Laatikanien, a 32-year old Finnish citizen, were indicted in connection with illegally exporting hundreds of assault rifle and firearm components, including parts for M16, M4, AR-15 assault rifles, Glock pistols, and UZI submachine guns.Between November 2010 and March 2012, Maricola shipped more than $100,000 worth of firearm components to Laatikainen in Finland though the U.S. Postal Service.After receiving the parts, Laatikainen sold them to criminal organizations in Finland, including the Cannonballs Outlaw Motorcycle Gang.Numerous firearm parts Maricola illegally exported to Laatikanien were used in two gang shootings in Finland.During one of the shootings that occurred on December 31, 2012, one person was killed and another seriously wounded.

At the plea hearing, Maricola admitted to illegally exporting and conspiring to illegally export hundreds of firearm parts overseas using the Postal Service, lying on customs declaration forms about the contents and value of the articles he was sending, and money laundering.   Maricola acknowledged that he had obtained many of the parts he illegally exported overseas from Gunbroker.com, and instructed his customers to send money to him using Paypal.  Additionally, Maricola admitted that he repeatedly falsely described gun parts on customs forms as merely being “AIRSOFT” or replica firearms rather than being for actual, lethal guns.  On numerous occasions, Maricola also falsely described AR-15 assault rifles parts as “aluminum sculptures.”  

Laatikanien remains in Finland as Finland does not extradite its own nationals. 

United States Attorney Carmen M. Ortiz; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Craig Rupert, Special Agent in Charge of the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office; and Michael S. Imbrogna, Special Agent in Charge of the Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, Boston Field Office, made the announcement today.  The Bureau of Alcohol, Tobacco, Firearms, and Explosives and U.S. Postal Inspection Service provided substantial assistance during the investigation.  The case is being prosecuted by Assistant U.S. Attorney B. Stephanie Siegmann of Ortiz’s National Security Unit.

BOSTON – A Lynn man pleaded guilty today in U.S. District Court in Boston to stealing nearly $80,000 in veterans benefits.

John Ladd, 73, pleaded guilty today to theft of public money.  U.S. District Court Senior Judge Douglas P. Woodlock scheduled sentencing for Dec. 5, 2016.

In 2009, Ladd’s neighbor was receiving monthly veterans benefits when she died; however, the U.S. Department of Veterans Affairs was not properly notified of the death, so it continued to deposit her benefits each month 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 veterans 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. 

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 Jeffrey Hughes, Special Agent in Charge, Department of Veterans Affairs, Office of the Inspector General, Northeast Field Office made the announcement today.  The case is being prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.

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

John R. Desantis, Jr., 44, of Methuen, was indicted on one count of extortion and attempted extortion under color of official right and through the use of threatened force and fear.

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

The charging statute provides a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000.  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; and Lawrence Police Chief James Fitzpatrick, made the announcement today.  The case is being prosecuted by Assistant U.S. Attorney S. Theodore Merritt of Ortiz’s Public Corruption Unit.

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

BOSTON – A Fair Haven man pleaded guilty 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, of Fair Haven, Mass., pleaded guilty to an Information charging him with three counts of sending false distress messages to the U.S. Coast Guard and one count of identity fraud.  U.S. District Court Judge Richard G. Stearns scheduled sentencing for Nov. 22, 2016. 

In April and May 2015, Martin made three calls to the U.S. Coast Guard claiming that he was on a boat on Cape Cod Canal that was sinking.  During each call, Martin impersonated another resident of Fair Haven and provided that resident’s name, street address and, on one occasion, date of birth.  Martin obtained the date of birth by improperly using a law enforcement database when he was previously employed as a Bristol Sheriff’s County 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 the hoax caller.

The charge of sending false distress messages provides for a sentence of no greater than six years in prison, three years of supervised release, restitution and a civil penalty of $10,000 on each count.The charge of identity fraud provides for a sentence of no greater than five years in prison, one year of supervised release, forfeiture 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 Rear Admiral Steven D. Poulin, Commander, First Coast Guard District, U.S. Coast Guard, made the announcement.  The case is being prosecuted by Assistant U.S. Attorney Giselle J. Joffre of Ortiz’s Major Crimes Unit.

BOSTON – A Boston man was indicted today in connection with a three-year, multi-million dollar fraud scheme.

Nathaniel Ponn, 28, was indicted on two counts of wire fraud.  Ponn has been held in custody since March 2016 when he was arrested and charged in a related criminal complaint.

According to court documents, it is alleged that from 2012 to April 2015, Ponn opened more than 400 brokerage accounts at nine investment firms throughout the United States, and used false names, Social Security Numbers, assets and income to open many of them.  The 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. 

According to court documents, from 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 allegedly 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 allegedly 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. 

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 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.  The case is being prosecuted by Assistant U.S. Attorney Mark J. Balthazard of Ortiz’s Economic Crimes Unit.

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

BOSTON – Richard Alan Hersey, 64, of Winthrop, was sentenced today in U.S. District Court in Boston for stealing over $400,000 in Social Security and federal pension benefits.

U.S. District Court Judge Leo T. Sorokin sentenced Hersey to five years of probation, including five months of home confinement,  and ordered him to pay restitution of $227,476 to the Social Security Administration and $216,811 to the U.S. Office of Personnel Management, and a fine of $4,000.  Prior to today’s hearing, Hersey repaid approximately $240,000 of the money he stole.  Hersey pleaded guilty in November 2015.

In 1991, Hersey’s mother passed away; however, Hersey did not notify the Social Security Administration and the Civil Service Retirement System of her death, so her Social Security and pension funds continued to be directly deposited into a bank account held jointly by her and Hersey.  Although he was not entitled to the funds, Hersey routinely withdrew them from the account after his mother’s death and spent them for his own use.  For example, he spent a portion of the stolen money on a cruise to the Bahamas.  In total, from 1991 to 2015, Hersey took $444,287 in Social Security and pension funds to which he was not entitled.  When Hersey was first confronted by investigators in 2015, he falsely stated that he thought his mother was still alive.  He later admitted that she was deceased.   

United States Attorney Carmen M. Ortiz; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Scott Rezendes, Special Agent in Charge of the Office of Personnel Management, Office of Inspector General, Field Operations, made the announcement today.  The Hersey case is being prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.

BOSTON – A California-based securities attorney was sentenced yesterday in U.S. District Court in Boston in connection with his role in manipulating the stock of a series of publicly traded companies, including CitySide Tickets, Inc., a Boston-based ticket reseller. 

Richard Weed, 53, of Newport Beach, Calif., was sentenced by Senior U.S. District Court Judge Douglas P. Woodlock to four years in prison, three years of supervised release, forfeiture of $90,000 and a fine of $100,000.  In May 2016, Weed was convicted following a 10 day trial of conspiracy, securities fraud and wire fraud. 

Weed, along with at least two others, conspired to create the appearance that CitySide was a growing company when, in fact, it was in dire financial straits.  Weed, who served as CitySide’s Secretary and as one of two members of CitySide’s Board, was responsible for drafting false and misleading legal opinion letters so that his co-conspirators could obtain free trading stock.  Weed also helped his co-conspirators to conceal their control and ownership of CitySide by directing the stock to be distributed to different entities that they controlled.  This allowed the conspirators to manipulate CitySide’s stock and sell their shares at artificially high prices.  In addition to assisting with the manipulation itself, Weed was also responsible for responding to any inquiries from investors or securities regulators.

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

The Securities and Exchange Commission, which conducted a parallel civil investigation, cooperated with criminal authorities in bringing this case. 

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.  The case was prosecuted by Assistant U.S. Attorney Sarah E. Walters, Chief of Ortiz’s Economic Crimes Unit and SEC Attorney Eric A. Forni, who was appointed as a Special Assistant U.S. Attorney. 

BOSTON – The City of Haverhill entered into a Consent Decree today with federal and state enforcement authorities agreeing to pay a $125,000 civil penalty and to take critical remedial measures to address pollution the City discharged into the Merrimack and Little Rivers.      

The Consent Decree is the result of an enforcement action brought by the U.S. Department of Justice, on behalf of the U.S. Environmental Protection Agency (EPA), and the Massachusetts Attorney General’s Office, on behalf of the Massachusetts Department of Environmental Protection (MassDEP).  The complaints filed simultaneously with the Consent Decree allege that Haverhill discharged pollutants into its storm water drainage system in violation of its permits and failed to properly operate and maintain its sewer system and treatment plant.  

“By entering into this Consent Decree, Haverhill will take the steps necessary to prevent pollutants from entering the Merrimack River and its tributaries,” said United States Attorney Carmen M. Ortiz.  “Haverhill is required to eliminate the flow of pollutants which will result in cleaner discharges and a healthier environmental for all.” 

“We are pleased that, through this settlement, steps will be taken to better protect to the Merrimack and Little Rivers,” said Massachusetts Attorney General Maura Healey. “We will continue to work together at all levels of government to protect our natural resources and our residents.”

“This settlement ensures that Haverhill will continue the important work to eliminate unauthorized discharges of pollutants to the Merrimack River. This is a necessary step toward opening this valuable resource to more recreational use by people who live in the area,” said Curt Spalding, Regional Administrator of EPA’s New England office.

“The commitments made in this consent decree will result in significant water quality improvements in the Merrimack River watershed,” said MassDEP Commissioner Martin Suuberg. “Massachusetts is committed to improving water quality and will continue to work with cities and towns on this important issue.”

The complaints allege that from as early as 2008, Haverhill discharged pollutants from its combined sewer system on 190 occasions during dry and wet weather.  The City continues to discharge untreated storm water containing sewage and other pollutants from its storm water and its combined sewer systems into these waters. 

The Consent Decree requires the City to undertake a comprehensive inspection of its outfalls during the dry and wet weather and submit a report to the EPA of its combined sewer system and storm water outfalls.  It requires the City to continue with electronic monitoring of its combined sewer outfalls for a one year, as well as to maintain electronic monitoring permanently on some of the more problematic outfalls.  When pollutants are found, the City must eliminate the flows conveying the pollutants.  In addition, the City must take action to control runoff from land redevelopment projects. 

The Consent Decree also assesses a $125,000 civil penalty against the City for its Clean Water Act violations.  Haverhill is subject to vigorous reporting requirements to ensure compliance with the terms of the Consent Decree.  If it fails to comply, it may be subject to additional penalties as high as $2,500 per each day of violation. 

Preventing pollutants from contaminating surface waters of the United States is one of the EPA’s National Enforcement Initiatives.  Municipal wastewater presents significant health threats to those using contaminated waters for recreational use. 

The Consent Decree is subject to a 30-day public comment period and approval by the federal court.  Once it is published in the Federal Register, a copy of the Consent Decree will be available on the Justice Department website at http://www.justice.gov/enrd/Consent_Decrees.html. 

U.S. Attorney Ortiz, Attorney General Healey, EPA Regional Administrator Spalding, and Department of Environmental Protection Commissioner Suuberg, made the announcement today.  The case is being handled by Assistant U.S. Attorney Susan M. Poswistilo of Ortiz’s Civil Division and Assistant Attorney General Andrew Goldberg of Healey’s Environmental Protection Division.  

BOSTON – A Hyannis man who has been a fugitive since he was indicted in April 2016 was arrested yesterday in connection with drug trafficking charges.

Shaun Miller, 31, of Hyannis, Mass., was arrested yesterday in South Yarmouth, Mass.  Miller was detained pending a detention hearing in U.S. District Court in Boston scheduled for Aug. 31, 2016.  In April 2016, Miller was charged in an indictment with Denzel Chisholm, Brooke Cottel and others with possession of heroin with intent to distribute.

As alleged during the arraignment today, on Thursday, Aug. 18, 2016, law enforcement officers surrounded a residence in South Yarmouth where Miller was believed to be staying.  Officers ordered Miller out of the residence and Miller, disguised as an elderly man, walked outside.  Upon further investigation, officers determined that the “elderly man” was in fact Miller, and at that point, officers pulled off Miller’s realistic disguise and placed him under arrest.  A subsequent search of the residence revealed two loaded weapons hidden in a laundry basket and nearly $30,000 in cash. 

United States Attorney Carmen M. Ortiz; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Barnstable Police Chief Paul MacDonald; and Yarmouth Police Chief Frank Frederickson, made the announcement today.  The federal case against Miller is being prosecuted by Assistant U.S. Attorney Eric Rosen of Ortiz’s Narcotics and Money Laundering Unit. 

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

BOSTON – A Wilmington man was indicted today in connection with making threats over Facebook to burn a local mosque and with unlawfully possessing  ammunition.

Patrick Keogan, 44, of Wilmington, was indicted on two counts of making a threat over Facebook to injure or intimidate another individual or to unlawfully damage or destroy a building by means of fire and one count of being a convicted felon in possession of ammunition.  Keogan was previously charged in a criminal complaint and arrested in July 2016.                                                                                    

According to charging documents, on or about Nov. 14, 2015, Keogan threatened the Islamic Society of Boston Cultural Center (ISBCC), a Roxbury-based cultural center that offers a mosque and educational, spiritual, and social services to the New England Muslim community.  Keogan posted on the ISBCC’s Facebook page an image depicting a mosque in flames with lettering superimposed that stated “Burn your local mosque,” along with the statement “Hello scumbags,” next to a smiley face emoji.  Keogan allegedly posted the same threatening image on the Facebook page of the Islamic Society of Northeastern University (ISNU).  

Through a warrant authorizing a search of Keogan’s Facebook account, law enforcement investigators found posts that approved burning mosques as early as 2013.  For example, in 2013 Keogan shared a post with the following summary: “On July 4th, Joplin, Missouri's Islamic Center — the city's only mosque — suffered roof damage after an unidentified man set it on fire by tossing a burning object onto the building.”  Keogan wrote in response:  “Somewhere out there is an unknown hero. The people’s champion. A true God amongst mortal men. May your days be many & troubles be few my good man.”  On or about Nov. 17, 2015, Keogan posted a status update saying, “Canada enters the Mosque Burning Winter Olympics of 2016 early! Who will take the Gold? Who will take the Silver? and WHO will take the Bronze??? We'll have to wait til the snow clears to find out folks but lets keep our fingers crossed for some fierce competition! And remember- you (yes you) are a qualified competitor of your own nation- so get out there and help your Country be number one in this winter’s Mosque Burning Olympics!”

According to court documents, Keogan’s Facebook account also showed that, despite his statutory prohibition as a convicted felon from possessing firearms and ammunition, Keogan continued to buy, sell, trade, build, modify, possess and shoot firearms and ammunition.   After obtaining a warrant to place a GPS tracking device on Keogan’s car, federal agents tracked Keogan to a gun store in New Hampshire on or about May 1, 2016.  Keogan allegedly purchased two boxes of 8mm rifle ammunition and two bags of loose 8mm rifle ammunition, and then drove the ammunition directly back to his residence in Wilmington. 

The charging statutes each provide 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.

United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge Federal Bureau of Investigation, Boston Field Division; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Wilmington Police Chief Michael Begonis, made the announcement today.  The case is being prosecuted by Assistant U.S. Attorney Scott Garland of Ortiz’s Civil Rights Enforcement Team.

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

BOSTON – United States Attorney Carmen M. Ortiz announced today that the Civil Rights Unit of the U.S. Attorney’s Office for the District of Massachusetts has opened an investigation into whether there have been violations of a federal civil rights law by the town of Dudley, Mass.

The U.S. Attorney’s Office is seeking to determine whether the Town has infringed on the Islamic Society of Greater Worcester’s right to religious exercise by placing unreasonable barriers to, and ultimately denying, their request for a conditional use permit to establish an Islamic cemetery in the Town.

“We are committed to protecting the rights of Americans of all faiths,” said U.S. Attorney Ortiz. “All Americans have the right to worship and to bury their loved ones in accordance with their religious beliefs, free from discrimination.  We are opening this investigation to assess whether there have been violations of federal civil rights laws in connection with the request to establish an Islamic cemetery in Dudley.” 

The U.S. Attorney’s Office is authorized to investigate allegations of discriminatory treatment under the Religious Land Use and Institutionalized Persons Act (RLUIPA), which, among other things, prohibits discrimination against any assembly or institution on the basis of religion.  The U.S. Attorney’s Office has not made any determination whether RLUIPA has been violated.

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

BOSTON – The former “enforcer” of the Massachusetts Latin Kings gang was sentenced today in U.S. District Court in Springfield for distributing cocaine and illegally possessing a firearm.

Bienvenido Nuñez, 38, of Springfield, Mass., was sentenced by U.S. District Court Judge Mark G. Mastroianni to 18 months in prison and three years of supervised release.  In May 2016, he pleaded guilty to being a felon in possession of a firearm and distributing cocaine. 

In October 2014, an investigation was initiated in an effort to disrupt and dismantle the Latin Kings’ criminal activity in Springfield and Holyoke.  Members and associates of the Latin Kings were engaged in the distribution of narcotics.  In addition, disputes with rival gangs over criminal activity and drug turf were on the rise and resulted in serious crimes of violence, including armed assaults with firearms and murder.  The investigation led to the arrest of 12 alleged Latin Kings members, including Nuñez, in connection with drug and firearms offenses in November 2015. 

As alleged in court documents, Nuñez held the position of “enforzador,” or “enforcer,” of the Massachusetts chapter of the Latin Kings gang at the time of his arrest on Nov. 9, 2015.  Nuñez pleaded guilty today to distributing seven grams of cocaine in Chicopee on Aug. 4, 2015, and to possessing a .40 caliber Beretta pistol on the day of his arrest.

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 was prosecuted by Assistant U.S. Attorney Katharine A. Wagner of Ortiz’s Springfield Branch Office.

BOSTON – A man who operated a Boston-area fried chicken restaurant has been charged with conspiring to file false tax returns as part of a long-running scheme to avoid paying payroll and income taxes.  

Hazrat Khan, 56, of Middletown, NY, was indicted on one count of conspiracy to defraud the United States and 11 counts of willful failure to account for and pay taxes.   Khan was previously indicted in April 2016 on similar charges relating to two other Boston-area fried chicken restaurants that he operated.

According to the indictment, Khan used a variety of means to avoid paying payroll and income taxes owed by his restaurant, New York Fried Chicken, located on River Street in Hyde Park.  As part of the conspiracy, Khan directed a co-conspirator to manage the restaurant and took steps to conceal his ownership interest.  Khan provided tax preparers with false information about the restaurant’s payroll and income.  Federal law requires employers to withhold payroll taxes and pay them to the IRS.  As part of the scheme, Khan falsely reported the number of employees, some of whom were undocumented, and wages paid to the IRS.  He also paid employees under the table and filed income tax returns under penalties of perjury that falsely described their sales, total income, compensation of officers, salaries, wages, and taxable income.

The charge of conspiracy provides for a sentence of no greater than five years in prison, three years of supervised release, a fine of $250,000 and restitution.  The charge of failure to account for and pay taxes provides for a sentence of no greater than five years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater, and the costs of prosecution 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; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner William Evans, made the announcement today.  The case was investigated with the cooperation of the Massachusetts Insurance Fraud Bureau.   The case is being prosecuted by Assistant U.S. Attorneys John A. Capin and Eric P. Christofferson of Ortiz’s Criminal Division.

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

BOSTON – The president and founder of a Falmouth mortgage company was charged in U.S. District Court in Boston in connection with defrauding the Government National Mortgage Association (Ginnie Mae) out of nearly $3 million.

Robert Pena, 67, the president and founder of the now-defunct mortgage company, Mortgage Security, Inc. (MSI), was indicted on conspiracy and wire fraud charges.  Pena was arrested today and will appear in before U.S. District Court Magistrate Judge Marianne B. Bowler this afternoon.   

The charges arise out of Pena’s alleged scheme to defraud Ginnie Mae, the government-run corporation which makes housing more affordable by injecting capital into the U.S. housing market.  Ginnie Mae guarantees the timely payment of principal and interest to investors in bonds backed by government-sponsored mortgage loans, such as those offered by the Federal Housing Administration (FHA), the U.S. Department of Veterans Affairs (VA), and the U.S. Department of Agriculture (USDA). 

According to court documents, MSI was contracted with Ginnie Mae to pool eligible residential mortgage loans and then sell Ginnie Mae-backed mortgage bonds to investors.  MSI was responsible for servicing the loans in the pools it created, including collecting principal and interest payments from borrowers, as well as loan payoffs, and placing those funds into accounts held in trust by Ginnie Mae, which would ultimately pass them along to investors.  Among other things, Ginnie Mae required issuers like MSI to provide regular reports to Ginnie Mae concerning the status of the loans in the pools.

According to the indictment, beginning in 2011, Pena began diverting money that borrowers were sending to MSI.  Specifically, he is alleged to have deposited large-dollar, loan-payoff checks into secret accounts unknown to Ginnie Mae and then using those funds for his own personal and business uses.  Pena also diverted borrowers’ escrow funds and mortgage-insurance premiums for his own use.  In total, Pena took nearly $3 million, which Ginnie Mae then had to pay the investors whose investments it had guaranteed.  Pena also attempted to cover up his scheme by providing false reports to Ginnie Mae about the status of the loans MSI was servicing. 

The charge of conspiracy 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.  The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss.  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 U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today.  The U.S. Attorney’s Office wishes to acknowledge the invaluable assistance of the U.S. Department of Veterans Affairs, Office of Inspector General, the U.S. Department of Agriculture, Office of Inspector General and the Falmouth Police Department.  The case is being prosecuted by Assistant U.S. Attorneys Eric P. Christofferson and Brian LaMacchia of Ortiz’s Economic Crimes Unit and Civil Division, respectively.

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

BOSTON – A Salem man pleaded guilty today in U.S. District Court in Boston in connection with a scheme to defraud Home Depot of over $45,000.

Robert Dooley, 56, of Salem, Mass., pleaded guilty to an Information charging him with 10 counts of wire fraud.  U.S. District Court Senior Judge Douglas P. Woodlock scheduled sentencing for Nov. 15, 2016. 

Between January 2016 and February 2016, Dooley engaged in a scheme to defraud Home Depot by “returning” items he never purchased from the store to receive store credit.  On each occasion, Dooley, entered Home Depot stores empty handed and gathered merchandise totaling $500 to $900.  At the returns desk, Dooley falsely claimed that he previously purchased the items, but did not have a receipt.  When he provided this driver’s license number to the clerk, Dooley often varied the number so the “return” would not immediately be detected as fraudulent.  Dooley was then issued a Home Depot gift card for the fraudulent return.  Dooley perpetrated the scam over forty times at Home Depot stores in Massachusetts, New Hampshire, Rhode Island, and Maine, resulting in over $35,000 in fraudulent returns.

In 2007, Dooley was convicted of federal wire fraud charges arising out of a nearly identical scheme in which he defrauded Home Depot in excess of $330,000 from July 2004 through October 2005.  In that case, he was sentenced to five years in federal prison. 

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

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. Attorney Eugenia M. Carris of Ortiz’s Public Corruption Unit.

BOSTON – The owner of the West End Diner in Leominster was sentenced today in U.S. District Court in Worcester in connection with setting fire to his restaurant in order to collect the insurance proceeds. 

Jeffrey Cordio, 51, of Leominster, Mass. was sentenced by U.S. District Court Judge Timothy S. Hillman to four years in prison and three years of supervised release.  In March 2016, Cordio pleaded guilty to an Information charging him with one count of conspiracy to use fire to commit mail fraud.  

In January 2006, Cordio and his wife purchased the West End Diner at 270 West Street in Leominster.  Due to significant financial distress and a desire to relocate to Florida, Cordio and an accomplice set fire to the diner and fled the scene during the afternoon of Nov. 13, 2013.  The Leominster Fire Department responded to the alarm and was able to largely contain the blaze to the basement of the building.  The following day, Cordio initiated an insurance claim with Norfolk & Dedham Mutual Fire Insurance Company; however, the claim was ultimately denied after investigators determined that the fire was intentionally set. 

Cordio’s accomplice previously pleaded guilty in state court to accessory before the fact.

United States Attorney Carmen M. Ortiz; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Leominster Police Chief Michael Goldman, made the announcement today.  The Massachusetts State Police Fire and Explosive Investigation Section, the Leominster Fire Department and the Worcester County District Attorney’s Office also assisted with the investigation.  The case was prosecuted by Assistant U.S. Attorney Greg A. Friedholm of Ortiz’s Worcester Branch Office. 

BOSTON – A 4th grade classroom assistant at a Lawrence public school was indicted today in connection with an undercover operation involving the distribution of kilogram-quantities of cocaine and thousands of oxycodone pills.

Reynaldo Sanchez, 26, of Lawrence, was indicted on attempted possession with intent to distribute oxycodone and possession with intent to distribute cocaine.  In March 2016, Sanchez was arrested and charged in a criminal complaint.

According to court documents, in August 2015, federal agents began investigating Sanchez for his involvement in a narcotics and money laundering organization operating in the Boston area.  During the investigation, Sanchez arranged to purchase from undercover federal agents 10 – 15 kilograms of cocaine for a price of $33,000 per kilogram.  The complaint further alleges that between March 29, 2016, and March 31, 2016, Sanchez sought to purchase what he believed were 11,000 oxycodone pills for $13 per pill from an undercover agent posing as a drug courier.  At the time of his arrest, Sanchez was carrying a duffle bag containing $48,000.  After executing a search warrant at Sanchez’s residence, agents recovered approximately 2.6 kilograms of cocaine. 

The charge of attempted possession with intent to distribute oxycodone provides for a sentence of no greater than 20 years in prison, a lifetime of supervised release and a fine of $1 million.  The charge of possession with intent to distribute cocaine provides for a sentence of no greater than 40 years in prison, a lifetime of supervised release and a fine of $5 million. Actual sentences for federal crimes are typically less than the maximum penalties.  Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Carmen M. Ortiz; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations, Boston Field Office; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today.  Assistance was also provided by the Middlesex County District Attorney’s Office, Massachusetts Bay Transportation Authority Police and the Lawrence, Franklin, Wareham and Dartmouth Police Departments.  The case is being prosecuted by Assistant U.S. Attorney Carlos A. López of Ortiz’s Narcotics and Money Laundering Unit. 

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

BOSTON – A Dominican man residing in Lawrence pleaded guilty yesterday in U.S. District Court in Boston in connection with a heroin, cocaine and fentanyl trafficking organization with ties to Mexico.

Gilberto Alicea, 31, of Bani, Dominican Republic and Lawrence, pleaded guilty to one count of conspiracy to distribute heroin, cocaine and fentanyl and one count of conspiracy to launder monetary instruments.  In July 2015, Alicea was arrested and charged.

At the time of Alicea’s arrest, he was helping to count over $500,000 in cash that was going to be transported by a co-conspirator to the Mexican border for payment of nine kilograms of fentanyl .  The fentanyl was seized while en route from California to Lawrence, where it was destined for the drug trafficking organization led by Alicea’s co-defendant, Jerri Martinez-Tejeda.  On at least five occasions, Alicea deposited $8,000 in proceeds from the drug trafficking operations to help launder the profits.  Alicea was also involved in the preparation, packaging and delivery of drugs.

In June 2016, Martinez-Tejeda pleaded guilty to the same charges.  Co-defendants Yoelly Carmenatty, Lily Solis and Michael Bate have also pleaded guilty and are scheduled to be sentenced in the fall of 2016 with the exception of Solis, who was previously sentenced to 33 months in prison. 

The narcotics charge provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release and a fine of $1 million.  The money laundering charge 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 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; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Lawrence Police Chief James X. Fitzpatrick, made the announcement.  The case is being prosecuted by Assistant U.S. Attorney Thomas E. Kanwit of Ortiz’s Narcotics and Money Laundering Unit. 

BOSTON – A Connecticut man was sentenced today in U.S. District Court in Springfield in connection with heroin and cocaine distribution. 

Tyvonne Gooden, 25, of Manchester, Conn. was sentenced today by U.S. District Judge Mark G. Mastroianni to 46 months in prison and three years of supervised release.  In February 2016, he pleaded guilty to possession with intent to distribute heroin and cocaine. 

On March 20, 2014, Gooden was in possession of 190 bags of heroin and two bags of cocaine after he was caught in Greenfield, Mass. by law enforcement officers following an hours-long chase.  The chase began when Gooden sped away from a Massachusetts State Trooper after being pulled over on the highway for a traffic violation.

United States Attorney Carmen M. Ortiz and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today.  The case was prosecuted by Assistant U.S. Attorney Deepika Bains Shukla of Ortiz’s Springfield Branch Office.