District of Massachusetts
Press releases recorded for this federal judicial district.
Rhode Island Woman Sentenced for Massive Immigration ScamRead the Press Release
BOSTON – A Woonsocket, R.I. woman was sentenced yesterday in U.S. District Court in Worcester in connection with a scheme that defrauded dozens of Hispanic immigrants of over $700,000.
“Sadly, undocumented immigrants frequently fall victim to immigration scams such as this one because unscrupulous criminals believe the victims will not report the crime to authorities,” said United States Attorney Carmen M. Ortiz. “Yesterday’s sentence affirms that those who prey upon the vulnerabilities of undocumented immigrants will be prosecuted. Furthermore, it sends a message to immigrant communities that the laws in this country are in place to protect everyone regardless of immigration status.”
Patria Zuniga, 53, was sentenced by U.S. District Court Judge Timothy S. Hillman to 78 months in prison, three years of supervised release and ordered to pay restitution of $713,850. In January 2016, Zuniga pleaded guilty to eight counts of wire fraud.
From 2009 through 2012, Zuniga targeted immigrant victims presenting herself as either an immigration attorney or an employee of U.S. immigration authorities. Zuniga told her victims that she could assist them in lawfully obtaining permanent resident immigration status. The victims typically had no lawful status or temporary legal status in the United States. Zuniga’s services were offered for $8,000 to $14,000; however, after the victims made the payments, Zuniga extorted additional funds by, among other things, threatening to have them deported if they refused to pay. Victim payments were initially made in cash, but later in the scheme Zuniga accepted money via cash deposits made directly into designated bank accounts (including accounts owned by her daughters), money orders, and bank and Western Union wire transfers. In total, victims paid more $700,000 over the course of the three-year fraud scheme.
In furtherance of her scheme, Zuniga employed a variety of tools to create the appearance of legitimacy in front of the victims. For example, in order to prove that she could in fact deliver the promised immigration benefits, Zuniga showed her victims photocopies of immigration documents with their names and photographs on them, which she had forged. Zuniga also routinely arranged for victims to travel to the U.S. Citizenship and Immigration Offices in Boston purportedly to take receipt of the immigration documents. Upon arrival, victims waited for hours only to have Zuniga contact them and cancel the non-existent appointment.
During yesterday’s sentencing hearing, 17 of Zuniga’s victims addressed the Court directly – detailing the toll Zuniga’s fraud, extortion, and threats had on their lives. Many victims reported how, in the face of Zuniga’s threats of deportation, they handed over all the money they had and even borrowed money in order to make the payments to her. As he announced the sentence, Judge Hillman remarked that Zuniga had “deliberately and systematically preyed on vulnerable victims[,]” for whom she showed no remorse.
Zuniga’s daughters, Alba Peña and Indranis Rocheford, have also been charged in connection with the fraud. They are scheduled for trial in August 2016. United States Attorney Carmen M. Ortiz; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement. The case was prosecuted by Assistant U.S. Attorney Jordi de Llano of Ortiz’s Major Crimes Unit.
Chelmsford Financial Planner Sentenced to 20 Years for Attempting to Hire “Hit Man” to Kill State Trooper and Another WitnessRead the Press Release
BOSTON – A Chelmsford financial planner was sentenced today in U.S. District Court in Boston in connection with attempting to hire an individual to murder a Massachusetts State Police Trooper and another individual, both of whom were scheduled to testify against him in a separate state trial.
Andrew S. Gordon, 54, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 20 years in federal prison, three years of supervised release and a fine of $20,000. In March 2016, Gordon was convicted following a five-day trial of five counts of using the mail or the telephone with the intent that a murder-for-hire be committed.
In 2014, Gordon was incarcerated at the Middlesex County House of Correction awaiting trial on state charges for attempting to hire a “hit man” to kill his estranged wife. The “hit man” was actually an undercover Massachusetts State Police Trooper. After being arrested, Gordon hatched a plot to have the trooper and a second Massachusetts man, who was to be a second witness against him, killed. Gordon hired a man he believed to be a gang member living in New Hampshire to kill the two witnesses. Gordon agreed to pay $10,000 to have the Trooper killed and $5,000 for the murder of the second witness. Through mail, phone calls, and by passing messages through another inmate, Gordon instructed the “gang member” that both deaths should appear as accidents. Gordon instructed the “gang member” to make the Trooper’s murder appear to be a line-of-duty incident, and that the murder of the other witness should be staged as a house fire. In actuality, Gordon was communicating with an undercover federal agent posing as the “gang member.”
On April 14, 2015, federal agents posing as the “gang member” delivered a Congratulations Card to Gordon at the Middlesex House of Correction, informing Gordon, in coded language, that the second witness was dead and that the Trooper would be killed the following week. After receiving the news that one of the witnesses was allegedly dead, Gordon was recorded stating that he wanted the Trooper’s body to disappear. He then stated, “If they don’t find the body … The cop. If they don’t find his body, there’s no suspicion. He’s gone.” The following day, Gordon was charged for initiating the murder-for-hire plot.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives Boston Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Middlesex District Attorney Marian Ryan; and Middlesex Sheriff Peter J. Koutoujian, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys David G. Tobin and Rachel Y. Hemani of Ortiz’s Criminal Division.
Former LCN Member Charged in Connection with Murder of South Boston Club OwnerRead the Press Release
BOSTON – A former member of the New England Family of La Cosa Nostra (NELCN) was arrested today in Florida after being indicted in the District of Massachusetts in connection with allegations that he obstructed a federal investigation into the murder of a Boston nightclub owner in the 1990s.
Robert P. DeLuca, 70, was indicted on one count of obstruction of justice and two counts of making false statements. He is scheduled to appear in U.S. District Court in the Southern District of Florida.
According to the indictment, DeLuca is charged with lying to federal prosecutors and investigators investigating the 1993 disappearance of Stephen DiSarro who operated The Channel, a South Boston nightclub. In March 2016, the remains of DiSarro were recovered by federal authorities behind a mill in Providence, R.I. The indictment alleges that DiSarro disappeared in May 1993 after the involvement of then LCN boss Frank Salemme and Frank Salemme, Jr. with The Channel became the focus of a federal grand jury investigation.
DeLuca is also charged with lying to federal authorities about his knowledge of other organized crime murders. It is alleged that DeLuca made the false statements in connection with his cooperation with federal authorities in Rhode Island after he was charged with racketeering and arrested in 2011. Despite his cooperation, DeLuca lied about his knowledge of the disappearance of DiSarro and other LCN murders.
The charge of obstruction of justice provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. The charge of false statements provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Carmen M. Ortiz for the District of Massachusetts; U.S. Attorney Peter F. Neronha for the District of Rhode Island; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistance was provided by the Massachusetts State Police, Rhode Island State Police and Norfolk County District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney Fred M. Wyshak, Jr. of Ortiz’s Public Corruption Unit and Assistant U.S. Attorney William Ferland of Neronha’s Office.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Accountant Charged with Stealing $3.4 Million from EmployerRead the Press Release
BOSTON – A former accountant for an investment advising company was charged and arrested today in connection with embezzling nearly $3.4 million from employer.
Gary Tiffany II, 32, was arrested today and charged in a criminal complaint with bank fraud, wire fraud, and engaging in illegal monetary transactions. Tiffany had an initial appearance before U.S. District Court Magistrate Judge Donald L. Cabell this afternoon.
According to the complaint, from June 2010 to November 2015, Tiffany was employed as an accountant and office manager by an investment advisor company which has domestic offices in Boston and New York City. During that time, Tiffany obtained a total of more than $3,380,000 from the company by wiring funds from its accounts to his personal accounts and forging checks from the company’s accounts payable to himself. As alleged in the complaint, Tiffany concealed the scheme by, among other things, making false entries in the company’s electronic accounting system and by manipulating the company’s bank statements to remove references to wire transfers he had made into his personal accounts. The company allegedly discovered Tiffany’s theft of funds after he was downsized in the fall of 2015. When he was later confronted by the company’s executives, Tiffany admitted to transferring about $1 million from the company to himself and spending it.
The charge of bank fraud provides for a sentence of no greater than 30 years in prison, five years of supervised release, a fine of $1 million, and restitution. The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000, and restitution. The charge of engaging in illegal monetary transactions provides for a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $250,000, and restitution. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge 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; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, 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 criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Accountant Admits to Filing False Tax ReturnsRead the Press Release
BOSTON – A Granby, Mass. accountant pleaded guilty Friday, June 24, 2016, in U.S. District Court in Worcester in connection with filing false tax returns.
James Lowe, 53, pleaded guilty to three counts of filing false corporate tax returns for his accounting business and three counts of filing false personal income tax returns from 2011 to 2013. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Oct. 17, 2016.
Lowe was the owner of an accounting and tax return preparation business in Chicopee. Lowe under-reported his income on both his corporate and personal income tax returns by not disclosing certain checks generated from his accounting business. Lowe cashed some of these checks and he deposited some of them into his personal bank account, rather than the business bank account. The false tax returns resulted in more than $118,000 in tax loss.
The charging statutes provides a sentence of no greater than three years in prison, one year of supervised release and a fine of $100,000. Actual sentences for federal crimes are typically less than 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 Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Alex Grant of Ortiz’s Springfield Branch Unit.
South Dartmouth Man Indicted on Child Pornography OffensesRead the Press Release
BOSTON – A South Dartmouth man was indicted today on child pornography offenses.
Jack L. Bean, Jr., 29, was indicted on one count of receipt of child pornography and one count of possession of child pornography. Bean was charged in a criminal complaint and arrested in April 2016.
According to the court documents, in September 2015, a law enforcement investigation identified an Internet-based bulletin board dedicated to the advertisement, distribution and production of child pornography with over 1,500 users who actively post new content and engage in online discussions involving the sexual exploitation of minors. Bean was allegedly identified as a user on the bulletin board. During a search executed by law enforcement officers, Bean admitted that he downloaded and saved child pornography from the Internet, and that he had a sexual preference for girls approximately 14 years old. During the execution of the search warrant, agents identified 40 images and 29 videos of children engaged in sexually explicit conduct on Bean’s laptop.
The charge of receipt of child pornography provides for a mandatory minimum sentence of five years and no greater than 20 years in prison, a mandatory minimum of five years and up to a lifetime of supervised release, and a fine of $250,000. The charge of possession of child pornography provides for a sentence of no greater than 20 years in prison, a mandatory minimum of five years and up to a lifetime of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Matthew Etre, Special Agent in Charge of the Homeland Security Investigations in Boston; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Dartmouth Police Chief Robert W. Szala, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz’s Major Crimes Unit.
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.
Hanson Man Indicted for Sexual ExploitationRead the Press Release
BOSTON – A Hanson man was indicted today in connection with sending sexually explicit videos of two pre-teen girls.
Mark L. Leach, 48, was indicted today on one count of sexual exploitation of a minor and coercion and enticement of a minor. In April 2016, Leach was charged in a criminal complaint.
According to court documents, law enforcement learned that Leach had used the Skype screen name “funtimehockey” to send sexually explicit messages via text, live video and audio with two pre-teen girls. One of the minor victims occasionally babysat for Leach’s daughter. The victims told law enforcement that Leach asked them to send naked and sexually explicit photos and videos of themselves. Leach also allegedly exposed himself.
Leach was arrested by law enforcement in April 2016 as he was leaving his home. During a consensual interview, Leach admitted that he had set up the Skype account to communicate with the minor girls, and requested that the girls expose themselves to him during conversations and send him sexually explicit pictures. He also admitted that he masturbated in front of them during Skype sessions.
The charge of sexual exploitation of a minor provides for a minimum mandatory sentence of 15 years and no greater than 30 years in prison, up to a lifetime of supervised release and a fine of $250,000. The charge of coercion and enticement of a minor provides for a mandatory minimum sentence of 10 years and no greater than life imprisonment, up to 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; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Hanson Police Chief Michael Miksch; and Whitman Police Chief Scott D. Benton, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit.
Members of the public who have questions, concerns or information related to this case, or any information relating to the sexual exploitation of children, should call (617) 478-3274.
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.
Former Letter Carrier Pleads Guilty to Worker’s Compensation FraudRead the Press Release
BOSTON – A former U.S. Postal Service employee pleaded guilty today in U.S. District Court in Boston to fraudulently obtaining worker’s compensation for medical travel.
Joseph Bouchard, 67, of Georgetown, pleaded guilty to one count of fraud in obtaining federal employee compensation. U.S. District Court Magistrate Judge Marianne Bowler scheduled sentencing for Sept. 14, 2016
From January 1986 to December 2009, Bouchard was employed as a letter carrier in Reading, Mass. While on medical leave from 2008 to 2014, Bouchard 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. Bouchard’s fraudulent submissions totaled approximately $50,000.
The charging statues provides a sentence of no greater than one year in prison, one year of supervised release, a fine of $100,000, or twice the gross gain/loss, whichever is greater, restitution and forfeiture. Actual sentences for federal crimes are typically less than maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Eileen Neff, Special Agent in Charge of the U.S. Postal Service, Office of the Inspector General in Boston, made the announcement today. This case is being prosecuted by Assistant U.S. Attorney Eugenia M. Carris of Ortiz’s Public Corruption and Special Crimes Unit.
Lawrence Tax Preparer and Former School Teacher Sentenced for Filing False Claims for RefundRead the Press Release
BOSTON – A Lawrence tax preparer and former teacher in the Lawrence and Boston school systems was sentenced today in U.S. District Court in Boston in connection with his role in defrauding the IRS of hundreds of thousands of dollars by filing false tax returns.
Leonidas Nunez, 61, was sentenced by U.S. District Court Judge William G. Young to 20 months in prison, two years of supervised release and ordered to pay restitution of $221,964 to the IRS. In March 2015, he pleaded guilty to one count of conspiring to defraud the IRS and six counts of submitting false claims for tax refunds.
From October 2010 through April 2011, Nunez conspired with others to defraud the IRS by presenting false income tax returns to the IRS. The returns falsely alleged income earned by more than 100 Puerto Rican residents who had not had federal income tax withheld and who were not required to file income tax returns in the United States. Nunez and his co-conspirators further directed the IRS to deposit the resulting fraudulent refunds into bank accounts controlled by Nunez and his co-conspirators. Together, they filed over 100 fraudulent returns with the IRS for tax year 2010, resulting in over $550,000 in fraudulent claims and over $220,000 in refunds.
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 William F. Bloomer of Ortiz’s Public Corruption Unit.
Springfield Man Sentenced for Illegally Possessing FirearmRead the Press Release
BOSTON – Kendall Hill, 29, was sentenced today in U.S. District Court in Springfield for possessing a firearm while being a convicted felon.
Hill was sentenced by U.S. District Court Judge Mark G. Mastroianni to 57 months in prison and three years of supervised release. He pleaded guilty in April 2016.
On Sept. 21, 2015, Hill possessed a .22 caliber Ruger pistol loaded with eight rounds of .22 caliber ammunition. It was discovered in Hill’s closet by law enforcement officers who were executing outstanding Georgia and Massachusetts warrants. Hill has a an extensive, violent criminal history, including 2004 and 2005 firearms convictions in Massachusetts state courts and 2015 Massachusetts state convictions for breaking and entering and assault and battery. Hill was on probation for the 2015 cases at the time that he committed this federal offense.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Springfield Police Commissioner John Barbieri, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Katharine A. Wagner of Ortiz’s Springfield Branch Office.
New Jersey Stock Promoter Sentenced for his Role in Pump-And-Dump SchemesRead the Press Release
BOSTON – A New Jersey stock promoter was sentenced late yesterday afternoon in federal court in Boston for his involvement in the manipulation of the stock of two separate companies, Amogear, Inc. and Greenway Technology.
Mitchell Brown, 51, of Long Branch, NJ, was sentenced by U.S. District Court Judge William G. Young to 42 months in prison and ordered to pay a fine of $1 million. Brown had previously pleaded guilty to conspiracy, securities fraud and wire fraud.
In 2013 and 2014, a federal undercover operation monitored in real-time Brown’s participation in the scheme to manipulate the stock price of Amogear, Inc. In February 2014, the Securities and Exchange Commission (SEC) suspended trading in the securities of Amogear as the attempted manipulation of its stock was underway. Prior to the suspension, Brown and his co-conspirators, who were all stock promoters, carried out a scheme to create a false appearance of an active market in the stock, including a false media campaign designed to increase the price of the stock, knowing that Amogear was a shell company without any real operations. Brown and his co-conspirators planned to sell the stock into the market at artificially inflated prices from which they would profit. What Brown did not know was that Amogear was controlled by federal agents.
Previously, in 2012 and 2013, Brown had conspired with a number of individuals to manipulate the stock price of Greenway Technology (Greenway). As part of that scheme, Brown and his co-conspirators took various steps to conceal their control over the vast majority of Greenway stock, and subsequently orchestrated a promotional campaign which included blast e-mails to many potential investors, including those in Massachusetts, containing misleading information touting Greenway’s stock. As a result of the hype created by the false and misleading promotional campaign, Brown and his co-conspirators were able to sell their Greenway stock to unwitting investors at artificially high prices. In total, the scheme caused a loss to investors of approximately $855,586.
This case arises from 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 stock 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 SEC.
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 Vassili Thomadakis of Ortiz’s Criminal Division and Eric Forni and Andrew Palid of the Securities and Exchange Commission who were appointed as Special Assistant U.S. Attorneys in this case.
Analogic Subsidiary Agrees to Pay More than $14 Million to Resolve Foreign Bribery ChargesRead the Press Release
A subsidiary of Massachusetts technology company Analogic Corporation entered into a non-prosecution agreement and agreed to pay a $3.4 million penalty today to resolve the government’s investigation into improper payments made in Russia and elsewhere in violation of the Foreign Corrupt Practices Act (FCPA), announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Carmen M. Ortiz of the District of Massachusetts.
According to admissions made in the resolution documents, BK Medical ApS, a manufacturer of ultrasound equipment headquartered in Denmark, engaged in a scheme with its distributor in Russia to make improper payments to third parties using fictitious invoices, falsely book those third-party payments and cause Analogic to falsify its books and records. BK Medical admitted that, as part of the scheme, after the terms of a sale had been agreed upon, the distributor requested that BK Medical issue invoices that falsely inflated the sales price on the equipment. The distributor then overpaid BK Medical the inflated amount and BK Medical transferred the excess funds to third parties as directed by the distributor, the company admitted. BK Medical had no legitimate business relationship with those third parties and had not conducted due diligence on them, it admitted. According to admissions in the resolution documents, at least some of these payments ultimately went to doctors employed by Russian state-owned entities. Although the scheme involving its Russian distributor was the most extensive, BK Medical also admitted that it engaged in similar schemes with distributors in five other countries. BK Medical admitted that its conduct – creating and maintaining these fictitious invoices, representing to Analogic that BK Medical was complying with all Analogic accounting policies and signing Sarbanes-Oxley subcertifications – caused Analogic to falsify its books, records and accounts in violation of the FCPA.
As part of the non-prosecution agreement, BK Medical has agreed to pay the criminal penalty, to continue to cooperate with the department and with foreign authorities in any ongoing investigations and prosecutions relating to the conduct, including of individuals, to enhance its compliance program and to periodically report to the department on the implementation of its enhanced compliance program. The department reached this resolution based on a number of factors. Among other factors, BK Medical received credit for its self-disclosure and its remediation, including terminating the officers and employees responsible for the corrupt payments. It received partial credit for cooperation because, as described in the non-prosecution agreement, it did not initially disclose certain relevant facts that it learned in the course of its internal investigation. Otherwise, by the conclusion of the investigation, BK Medical had provided to the department all relevant facts known to it, including information about individuals involved in the FCPA misconduct.
In a related matter, Analogic reached a settlement today with the U.S. Securities and Exchange Commission (SEC) under which it agreed to pay $7,672,651 in disgorgement and $3,810,311 in prejudgment interest.
The FBI’s Boston Field Office investigated the case. Trial Attorney Aisling O’Shea of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Ryan DiSantis of the District of Massachusetts’ Public Corruption Unit prosecuted the case. The SEC provided valuable assistance to the prosecution. The Criminal Division’s Office of International Affairs also provided assistance.
Analogic Subsidiary Agrees to Pay More than $14 Million to Resolve Foreign Bribery ChargesRead the Press Release
BOSTON – A subsidiary of Massachusetts technology company Analogic Corporation entered into a non-prosecution agreement and agreed to pay a $3.4 million penalty today to resolve the government’s investigation into improper payments made in Russia and elsewhere in violation of the Foreign Corrupt Practices Act (FCPA), announced U.S. Attorney Carmen M. Ortiz and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
According to admissions made in the resolution documents, BK Medical ApS, a manufacturer of ultrasound equipment headquartered in Denmark, engaged in a scheme with its distributor in Russia to make improper payments to third parties using fictitious invoices, falsely book those third-party payments and cause Analogic to falsify its books and records. BK Medical admitted that, as part of the scheme, after the terms of a sale had been agreed upon, the distributor requested that BK Medical issue invoices that falsely inflated the sales price on the equipment. The distributor then overpaid BK Medical the inflated amount and BK Medical transferred the excess funds to third parties as directed by the distributor, the company admitted. BK Medical had no legitimate business relationship with those third parties and had not conducted due diligence on them, it admitted. According to admissions in the resolution documents, at least some of these payments ultimately went to doctors employed by Russian state-owned entities. Although the scheme involving its Russian distributor was the most extensive, BK Medical also admitted that it engaged in similar schemes with distributors in five other countries. BK Medical admitted that its conduct – creating and maintaining these fictitious invoices, representing to Analogic that BK Medical was complying with all Analogic accounting policies and signing Sarbanes-Oxley subcertifications – caused Analogic to falsify its books, records and accounts in violation of the FCPA.
As part of the non-prosecution agreement, BK Medical has agreed to pay the criminal penalty, to continue to cooperate with the department and with foreign authorities in any ongoing investigations and prosecutions relating to the conduct, including of individuals, to enhance its compliance program and to periodically report to the department on the implementation of its enhanced compliance program. The department reached this resolution based on a number of factors. Among other factors, BK Medical received credit for its self-disclosure and its remediation, including terminating the officers and employees responsible for the corrupt payments. It received partial credit for cooperation because, as described in the non-prosecution agreement, it did not initially disclose certain relevant facts that it learned in the course of its internal investigation. Otherwise, by the conclusion of the investigation, BK Medical had provided to the department all relevant facts known to it, including information about individuals involved in the FCPA misconduct.
In a related matter, Analogic reached a settlement today with the U.S. Securities and Exchange Commission (SEC) under which it agreed to pay $7,672,651 in disgorgement and $3,810,311 in prejudgment interest.
The FBI’s Boston Field Office investigated the case. Assistant U.S. Attorney Ryan DiSanitis of Ortiz’s Public Corruption unit and Trial Attorney Aisling O’Shea of the Criminal Division’s Fraud Section prosecuted the case. The SEC and the Criminal Division’s Office of International Affairs provided assistance.
Springfield Woman Pleads Guilty to Cashing Fraudulent Tax Refund ChecksRead the Press Release
BOSTON – A Springfield woman pleaded guilty on Friday, June 20, 2016, in connection with cashing more than $1.3 million in fraudulent income tax refund checks.
Evelyn A. Manzueta, 52, pleaded guilty to theft of government property. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Sep.12, 2016.
From January 2012 to May 2013, Manzueta orchestrated the cashing of 236 fraudulent tax refund checks. She cashed nearly $500,000 through her own accounts and enlisted friends and family members to cash the remaining checks through their accounts. The scheme cashed checks totaling $1,377,376.
The U.S. Department of Treasury issued the checks based on tax returns, submitted by unknown individuals, which were later determined to be fraudulent. Although the tax returns used the names and Social Security numbers of real people living in Puerto Rico, their addresses were falsely listed as Massachusetts and New York. The tax returns also contained false employment information. Manzueta, knowing the tax return checks were fraudulent, cashed them through her bank accounts and the accounts of friends and family.
Robert Evans, of Wallkill, New York, Manzueta’s brother-in-law, previously pleaded guilty to cashing $517,714 in the fraudulent checks. He is scheduled to be sentenced on Oct. 12, 2016.
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 Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement. The case is being prosecuted by Assistant U.S. Attorney Karen L. Goodwin of Ortiz’s Springfield Branch Office.
Former Suffolk University Employee Pleads Guilty to Stealing over $40,000 in Student Loans by Changing GradesRead the Press Release
BOSTON – A Suffolk University employee pleaded guilty today in U.S. District Court in Boston in connection with fraudulently obtaining over $40,000 in federal student loan funds by falsifying her own records to make it appear that she was a Suffolk University graduate student when in fact she was not.
Ashley Ciampa, 28, of Medford, pleaded guilty today to student loan fraud. U.S. District Court Judge F. Dennis Saylor, IV scheduled sentencing for Oct. 5, 2016.
In 2009, Ciampa began working in the Registrar’s Office at Suffolk University. In 2013, she enrolled in Suffolk’s MBA program free of charge as an employee. In a first-semester business ethics class, Ciampa failed to attend class or complete the required coursework, but instead used her computer access in the Registrar’s Office to assign herself an “A” for the course. In subsequent semesters, she repeatedly assigned herself passing grades for classes she never attended. By maintaining the appearance that she was a graduate student, she was able to borrow $47,453 in federal student loans beginning in 2014, which she spent for vacations and other personal expenses.
The charge of student loan fraud provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $20,000. 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 Brian Hickey, Special Agent in Charge of the U.S. Department of Education, Office of Inspector General, Region I and II, made the announcement today. The case is being prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
Springfield Man Pleads Guilty to Federal Cocaine and Heroin ChargesRead the Press Release
BOSTON – A Springfield man pleaded guilty today in U.S. District Court in Worcester in connection with distributing cocaine and heroin.
Rafael Dominguez, 42, pleaded guilty to four counts of distribution of cocaine, one count of distribution of heroin and one count of possession with intent to distribute at least 500 grams of cocaine. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for September 12, 2016.
On five occasions from June to December in 2013, Dominguez distributed cocaine or heroin to an individual cooperating with federal agents. Dominguez’s distribution was caught on video and audio tape. Dominguez was then found with nearly 3 kilograms of cocaine. At his plea hearing, Dominguez admitted that he was responsible for distributing between 50 and 150 kilograms of cocaine and between 40 and 60 grams of heroin.
The charges of distribution of cocaine and heroin each provide for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release and a fine of $1 million. The charge of possession with intent to distribute at least 500 grams of cocaine provides for a sentence of at least five years and no greater than 40 years in prison, a minimum of four years and up to a lifetime of supervised release and a fine of $5 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed 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 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 Deepika Bains Shukla of Ortiz’s Springfield Branch Office.
Irish Citizen Sentenced on Misuse of Social Security NumberRead the Press Release
BOSTON – Francis J. Moloney, 43, of Marlborough, was sentenced yesterday by U.S. District Court Denise J. Casper to 12 months probation, with the first three months of that period in home confinement, as well as 80 hours of community service. In February, 2016, Moloney pleaded guilty to misuse of a social security number.
On March 20, 2013, Moloney, an Irish citizen living in Massachusetts, fraudulently obtained a driver’s license using the identity and social security number of an Irish national and former permanent legal resident, after that person renounced his legal status in the United States and returned to Ireland.
United States Attorney Carmen M. Ortiz; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; David Hall, Special Agent in Charge of the Department of State Diplomatic Security Service; and Scott Antolik, Special Agent in Charge, Social Security Administration, of the Office of Inspector General, Office of Investigations – Boston Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz’s Major Crimes Unit.Medway Man Sentenced for Extortion ActivitiesRead the Press Release
BOSTON – A Medway man was sentenced today in U.S. District Court in Worcester in connection with his role in an extortion scheme.
Baljit Singh Rehal, a/k/a Joel Rehal, 32, was sentenced by U.S. District Court Judge Timothy S. Hillman to 33 months in prison, three years of supervised release and ordered to pay $180,000 in restitution to the victim, and to forfeit an additional $180,000 to the government. In October 2014, Rehal and Nicholas D. Valorie, III, of Milford, were charged with collection of extension of credit by extortionate means. Rehal pleaded guilty to the charges in August 2015.
Between December 2012 and January 2014, Rehal, Valorie and others perpetrated a scheme in which they convinced a man that he owed money to the FBI for an alleged whistleblower investigation. They proceeded to collect payments on the $180,000 debt from the man. When the man could not make the payments, Rehal and others would purportedly loan him money and have him sign promissory notes to repay the money to them. Rehal used extortionate means to collect an extension of credit made to the victim, or to punish him for the non-repayment.
Valorie was released on pretrial diversion. If he completes the conditions of pretrial diversion, including repaying the victim, the case against him will be dismissed.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Milford Police Chief Thomas O’Loughlin; and Medway Police Chief Allen M. Tingley made the announcement. The case was prosecuted by Assistant U.S. Attorney Michelle L. Dineen Jerrett of Ortiz’s Worcester Branch Office.
Chelmsford Man Convicted of Defrauding Disabled Veterans Program of More Than $100 MillionRead the Press Release
BOSTON – Yesterday, a federal jury found David E. Gorski, of Chelmsford, guilty of conspiracy to defraud the United States and wire fraud.
The jury found that Gorski conspired 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.
Gorski established a company, Legion Construction, Inc., in 2006 after recruiting a disabled veteran of the Korean War 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 absence from the business became too conspicuous, Gorski hired a second disabled veteran, Peter Ianuzzi, to serve as the figurehead owner of Legion. Legion acquired more than $110 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 SDVOBS registered a bid protest against Legion, alleging that Legion should not have been awarded a contract with the VA 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 really 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 false 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.
Gorski faces up to five years in prison, to be followed by up to three years of supervised release and a maximum fine of $250,000 on the count of conspiracy to defraud the United States. On the wire fraud counts, Gorski faces up to 20 years in prison, to be followed by up to three years of supervised release and a maximum 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; Jeffrey Hughes, Special Agent in Charge, Department of Veterans Affairs, Office of the Inspector General, Northeast Field Office; Luis A. Hernandez, Special Agent in Charge, General Services Administration, Office of the Inspector General; Kevin Kupperbusch, Special Agent in Charge, Small Business Administration, Office of the Inspector General; Michael D. Conner, Regional Agent in Charge, U.S. Army Criminal Investigation Command, Boston Fraud Office; and Leo Lamont, Special Agent in Charge, Naval Criminal Investigative Service, Northeast Field Office. The case was prosecuted by William F. Bloomer of Ortiz’s Public Corruption Unit and Carlos A. Lopez of Ortiz’s Narcotics and Money Laundering Unit.A Fitchburg Woman Pleads Guilty to Embezzling over $1.3 Million Dollars from EmployerRead the Press Release
BOSTON – A former Fitchburg office manager pleaded guilty today in U.S. District Court in Boston to embezzling over $1.3 million dollars from her employer over a ten year period.
Dawnmarie Prince, 47, pleaded guilty to eight counts of bank fraud and one count of aggravated identity theft. U.S. District Court Senior Judge Rya W. Zobel scheduled sentencing for Sept. 14, 2016.
Prince worked as an office manager at a Woburn-based life science technology firm where she was responsible for handling the firm’s accounts payable. Since at least 2005 through May 2015, Prince used her position as office manager to 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 removed copies of the negotiated checks when sent back by the bank, and she falsified entries into the bookkeeping software program to make it appear as if the stolen checks had been used to pay legitimate vendors. In total, Prince embezzled over $1.3 million which she spent on personal expenses.
In 2001, Prince was convicted 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.
Prince faces a maximum sentence of 30 years in prison, three years of supervised release, and a $1,000,000 fine on each of the bank fraud counts, as well as a mandatory consecutive term of two years in prison, one year of supervised release, and a fine of $250,000 for the aggravated identity theft charge. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
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 is being prosecuted by Assistant United States Attorney Jordi de Llano of Ortiz’s Major Crimes Unit.
Boston Man Convicted in Illegal Gun Running SchemeRead the Press Release
BOSTON – A Boston man was sentenced today in connection with his role in a scheme to illegally transport firearms into Massachusetts.
Shayne Parker, 41, of Dorchester, was sentenced by U.S. District Court Judge F. Dennis Saylor, IV to five years in prison and three years of supervised release. In March 2016, Parker was convicted following a five-day trial of interstate transportation of firearms and being a felon in possession of 50 rounds of ammunition. Parker has several felony convictions, including for violence and drug trafficking crimes.
In the spring of2014, a joint law enforcement investigation uncovered a scheme in which firearms were bought in gun stores in New Hampshire and transported to Massachusetts for sale on the streets of Boston. The New Hampshire purchasers of the firearms were paid with drugs for their help.
During the course of the scheme, 16 guns were trafficked into Boston within three-weeks using three different straw purchasers. Ronald Scott, who was convicted in New Hampshire, purchased the guns and ammunition while Parker drove Scott to and from each of the five purchase locations in New Hampshire and handled the weapons and ammunition.
One of the guns – a 9mm semi-automatic firearm – was recovered on April 2, 2014, after Boston Police officers pursued and arrested a suspect. The firearm had been purchased 11 days before by Parker and his associates. In addition, during a search of a residence in Mattapan, law enforcement officers seized a .380 caliber semi-automatic weapon and a box containing 50 rounds of ammunition. The ammunition had been purchased just 22 days prior at Dick’s Sporting Goods in New Hampshire and transported to Massachusetts by Parker.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Commissioner William B. Evans, made the announcement. The case was prosecuted by Assistant U.S. Attorney Glenn MacKinlay of Ortiz's Organized Crime and Gang Unit.
Sixty-Six Gang Members Facing Federal Rico, Firearm and Drug Trafficking ChargesRead the Press Release
BOSTON – Sixty-six alleged gang members from the Greater Boston area have been charged with federal and state firearm and drug charges, including federal RICO conspiracy charges related to an attempted murder. It is alleged that these individuals were responsible for fueling a gun and drug pipeline across a number of cities and towns in eastern Massachusetts. During the course of the investigation, over 70 firearms were seized.
This morning, more than 400 federal, state and local law enforcement officers carried out the arrests of numerous leaders, members, and associates of the 18th Street Gang, the East Side Money Gang and the Boylston Gang. These individuals operated primarily in East Boston, Chelsea, Brockton, Malden, Revere and Everett. Additional individuals were taken into custody on federal immigration violations.
In 2014, a federal investigation identified a network of street gangs which had created alliances resulting in the trafficking of weapons and drugs throughout the state, and generated violence against rival gang members. The investigation also revealed significant cocaine, crack, and heroin dealing committed by gang members, many of which were supplied though a Brockton-based drug network.
According to court documents, the 18th Street Gang is a multi-national gang that operates throughout the United States and Central America, and whose members in the Boston area have had significant access to firearms in Boston and Chelsea. Over a one year period, investigators seized approximately 37 firearms from 18th Street Gang members alone, including 29 hand guns, three assault rifles, and five sawed-off shotguns, many of which had the serial numbers obliterated.
In total, 53 defendants have been charged in federal court, three of whom were previously arrested. Thirteen defendants have been charged by the Massachusetts Attorney General’s Office in state court. Over two dozen individuals have been detained for administrative deportations.
The charge of RICO conspiracy provides a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Depending on the drug quantity, the drug trafficking conspiracy and distribution charges provide a sentence of 20 years, 40 years or a lifetime in prison; a minimum of three, four or five years of supervised release; and a fine of $1 million, $5 million or $10 million. The charge of conspiracy to engage in the business of dealing in firearms without a license provides a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of being a felon in possession of a firearm or an alien in possession of a firearm and ammunition provides a sentence of up to 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; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Matthew Etre, Special Agent in Charge of the Homeland Security Investigations in Boston; John Gibbons, U.S. Marshal of the District of Massachusetts; Maura Healey, Attorney General of Massachusetts; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Boston Police Commissioner William Evans; Chelsea Police Chief Brian Kyes; and Brockton Police Chief John Crowley, made the announcement today.The U.S. Attorney’s Office also acknowledges the assistance of the Suffolk and Middlesex County Sheriff Departments and the Malden, Revere and Everett Police Departments.
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.
Sex Offender Charged for Failing to Register in MassachusettsRead the Press Release
BOSTON – A Brockton man was charged today in U.S. District Court in Boston for failing to register as a sex offender.
Charles Towers, 52, was indicted on one count of failing to register as a sex offender. In May 2016, Towers was arrested and charged in a criminal complaint.
According to court documents, in October 2009, Towers was convicted in San Diego Superior Court of attempted forcible oral copulation and sentenced to 18 months in jail and ordered to register as a sex offender for life.
Upon release from jail, Towers registered as a sex offender in California. In April 2014, Towers moved from San Diego to Brockton and failed to both notify the San Diego Police Department’s Sex Offender Unit of his change of address and to register as a sex offender with the Massachusetts Sex Offender Registry Board, as he was legally required to do.
The charging statute provides a sentence of no greater than 10 years in prison, a minimum of five years and no longer than 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 and U.S. Marshal John Gibbons of the District of Massachusetts made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Nicholas Soivilien 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/.
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.
Framingham Man Sentenced for Child Pornography OffensesRead the Press Release
BOSTON – A Framingham man was sentenced yesterday in the U.S. District Court in Boston in connection with child pornography offenses.
Stephen John Hallissey, 38, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 11 years in prison and 10 years of supervised release. In November 2015, Hallissey pleaded guilty to possession and receipt of child pornography.
Hallissey was arrested and charged in March 2015 after federal agents executed a search warrant at his home and found over 450,000 images of child pornography on his computer. Many of the images depicted very young children being raped and sexually assaulted. Hallissey also admitted to repeatedly sexually assaulting two young girls, aged two and four, in California a number of years ago. In email messages Hallissey sent to other child pornography collectors, Hallissey said: “I LOVE hurting kids with sex (rape).” In another message, Hallissey wrote that his favorite age for a victim was two years old.
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 investigated by the FBI's Boston Child Exploitation Task Force (CETF), which is comprised of members from the FBI, the Boston Police Department’s Child Abuse and Human Trafficking Units, the Massachusetts State Police, the Massachusetts Department of Correction, the Arlington, Malden and Norwood Police Departments, and the U.S. Postal Inspection Service. The case was prosecuted by Assistant U.S. Attorney David Tobin 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 U.S. Attorneys’ Offices and the Department of Justice’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/
Fall River Man Indicted for EscapeRead the Press Release
BOSTON – A federal inmate was charged today in U.S. District Court in Boston in connection with escaping from Coolidge House, a federal halfway house in Boston.
Jason Barreto, 30, was indicted today on one count of escape from federal custody. In May 2016, Barreto was charged in a criminal complaint.
According to a previously filed complaint, 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, it is alleged that 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.
The charging statute provides a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and U.S. Marshal John Gibbons of the District of Massachusetts made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Nicholas Soivilien of Ortiz’s Major Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Gloucester Seafood Executive Indicted on Tax ChargesRead the Press Release
BOSTON – A senior sales executive at a seafood processing company in Gloucester was indicted yesterday on federal tax charges.
Richard J. Pandolfo, 70, of North Andover, was indicted on four counts of making and subscribing false tax returns. He is scheduled to be arraigned before U.S. District Court Magistrate Judge Kelley on June 16, 2016. He was initially charged in a criminal complaint and arrested on April 7, 2016.
According to the indictment, from 2009 to 2012, Pandolfo received substantial supplemental income for his work at the seafood processing company in Gloucester from the company’s president. Some of those payments were allegedly made directly to Pandolfo or his wife, but Pandolfo did not report or pay taxes on any of those payments. The indictment also alleges that other payments were made to a shell company set up in the name of Pandolfo’s wife, and were directed through a shell company controlled by the company’s president. Pandolfo allegedly did report that income, but claimed personal expenses as business expenses and deducted them, thereby improperly lowering the taxes he owed.
The charging statute provides a sentence of no greater than three years in prison, one year of supervised release and a fine of $100,000. Actual sentences for federal crimes are typically less than maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement. This case is being prosecuted by Assistant U.S. Attorneys Stephen E. Frank and Brian A. Pérez-Daple of Ortiz’s Economic Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
“Your Future, Your Decision” Program Offered to 7th Grade Students in TauntonRead the Press Release
TAUNTON – United States Attorney Carmen Ortiz, in partnership with Taunton Public Schools and the Bristol County District Attorney’s Office, will present a powerful youth violence prevention event for approximately 650 middle school students at 9:00 a.m. on Wednesday, June 8, 2016, at Taunton High and Parker Middle Schools.
U.S. Attorney Ortiz will offer remarks, along with District Attorney Thomas Quinn, Taunton Mayor Thomas Hoye, Taunton Police Chief Edward Walsh, and other special guests.
“Your Future, Your Decision,” is a half-day in-school program which has been presented to nearly 6,000 middle school students statewide. The program emphasizes the importance of making good decisions, especially when young people face choices that could lead to gang activity, guns, drugs and bullying, and more. Following the speaking presentations, students will attend a resource fair featuring local organizations offering after school and summer programming.
“It is extremely important that we get the message to young people that it is not too early to start thinking about the decisions they make and how their choices can impact the rest of their lives,” said United States Attorney Carmen M. Ortiz. “Many outside factors influence youth, and it is critical that we arm them with the tools to confront difficult decisions as early as possible. It is our hope that the ‘Your Future, Your Decision’ program will give young people the skills and confidence they need to make good choices throughout their teenage years.”
Defense Lawyer Pleads Guilty to Disrupting State Court ProceedingRead the Press Release
BOSTON – A Boston lawyer pleaded guilty today to disrupting a state court proceeding by repeatedly encouraging the victim of a hate crime to ignore calls from state and federal law enforcement officials.
Timothy R. Flaherty, 51, of Cambridge, was indicted in May 2015 on federal witness tampering charges. Today, he pleaded guilty to related state charges in Middlesex Superior Court in order to resolve the federal charges. According to the plea agreement, Flaherty will be placed on probation for one year, must refrain from practicing law during that period, and submit to professional discipline by the Massachusetts Board of Bar Overseers.
Flaherty is a criminal defense attorney and was retained to represent a defendant in Cambridge District Court who was facing state civil rights charges. Shortly after Flaherty’s client was arraigned in state court, Flaherty contacted the victim of the case and offered him cash in exchange for informing state authorities that the victim was too busy to pursue the case and no longer wanted to assist in the prosecution of Flaherty’s client. On Dec. 24, 2014, Flaherty met the victim and provided him with an envelope that contained $2,500 in cash. He instructed the victim to ignore contact from law enforcement authorities and in the event he received a subpoena to appear, he was to immediately call Flaherty. On March 12, 2015, during a hearing at Cambridge District Court, Flaherty pressed for a trial date and then asked the Assistant District Attorney whether the Middlesex District Attorney’s Office had been able to contact the victim.
On May 6, 2015, the victim informed Flaherty that he had received a letter from the District Attorney’s Office. Flaherty instructed the victim to tell the District Attorney’s Office, “I have no interest in this. I’d have to come to court, I really don’t want anything to do with it. Um, you know the guy had a bad day and I’m just not going to testify ….” Flaherty also told the victim, “…they won’t press you, they won’t subpoena you, if they try to, just duck it….”
The victim then informed Flaherty that he had received a voice message from an employee of the United States Attorney’s Office who wanted him to call her back regarding the alleged indictment. Flaherty told the victim to, “blow her off.” The victim stated to Flaherty that this U.S. Attorney’s Office employee said she was from “civil rights.” Flaherty continued to advise the victim not to call her back.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney William Bloomer of Ortiz’s Public Corruption Unit who was sworn in as a Special Assistant Attorney General to handle this matter in Middlesex Superior Court.
Massachusetts Company Sentenced in Connection with Disadvantaged Business FraudRead the Press Release
BOSTON – Transit Safety Management, Inc., a Georgetown, Mass. consulting company, was sentenced today to making a false statement in connection with its certification for favored contracting status.
Transit Safety Management, Inc. (TSM) was sentenced by U.S. District Court Judge Nathaniel M. Gorton to five years of probation and a fine of $84,000 In February 2016, TSM pleaded guilty to one count of making a false statement to a state agency in order to maintain its status as a "disadvantaged business enterprise" (DBE).
In order to qualify as a DBE, a company’s management must be controlled by a socially or economically disadvantaged individual such as a woman or minority. The purpose of the program is to give an economic advantage to minorities and women who run their own companies. However, the manager of the DBE cannot also engage in employment that would prevent him or her from devoting sufficient attention to the affairs of the DBE. In this case, investigators discovered that TSM’s purported owner was a full-time employee of a federal agency and the business was really operated by her husband making it ineligible for certification as a DBE.
TSM provided consulting services to the railroad industry, focusing on safety and operations management. Shortly after it was founded in 1999, TSM's owner certified the company as a "disadvantaged business enterprise". As such, TSM was able to take advantage of federal regulations aimed at promoting the participation of minority and disadvantaged businesses in federally-funded public construction contracts. Under the DBE regulations, a contractor to transportation projects must either subcontract a percentage of its work to a DBE or show that it made a good faith effort to subcontract work to a DBE but was unable to do so. This requirement makes the DBE status a valuable and potentially lucrative designation.
In order to maintain its DBE certification, TSM had to make yearly affirmations that it was still eligible and that nothing had changed that would affect its eligibility for the favored DBE status. Despite this, TSM lied about whether it met the criteria for DBE status. According to court documents, TSM’s owner was hired as a full-time employee with a federal agency in 2005. As a full time federal employee, TSM’s purported manager could not control TSM under the regulations. Nevertheless, TSM failed to disclose this change and continued to make its yearly affirmations to maintain is DBE status. TSM admitted to making approximately $160,000 in profits.
United States Attorney Carmen M. Ortiz; Todd Damiani, Special Agent in Charge of the U.S. Department of Transportation, Office of Inspector General, Office of Investigations; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Eugenia M. Carris of Ortiz’s Public Corruption Unit.
Federal Jury Convicts Dorchester Man for Attempting to Kill Suspected Federal WitnessRead the Press Release
BOSTON – A federal jury convicted a Dorchester man with witness tampering by attempting to kill a man, and for his role in a multi-state sex trafficking ring.
Jaquan Casanova a/k/a “Cass,” “Joffe,” “Joffy,” and “Joffy Joe,” 24, of Dorchester, was convicted following a seven-day trial of tampering with a witness by attempting to kill him and lying to a federal agent about his involvement in the sex trafficking ring. U.S. District Court Judge Denise J. Casper scheduled sentencing for Sept.14, 2016.
On April 30, 2013, Casanova shot Darian Thomson (“Bo”) in the head to prevent him from communicating with federal law enforcement. Casanova was a member of a multi-state criminal organization involved in sex trafficking, drug trafficking, and fraudulent check cashing headed by Raymond Jeffreys. In March 2013, Thomson was indicted on federal sex trafficking charges while in custody in New Jersey on unrelated charges. In April 2013, Thomson was released and returned to Boston, where Casanova attempted to kill him. Jeffreys and other members of the criminal organization erroneously believed that Thomson had been released as a result of his cooperation with federal law enforcement, and that he would continue to provide information about their criminal activities.
On May 19, 2016, Jeffreys was sentenced to 30 years in prison after pleading guilty to sex trafficking, tampering with a witness by attempting to kill him, and making a false statement to a federal agent.
The charge of tampering with a witness by attempting to kill him or conspiring to do so provides a sentence of no greater than 30 years in prison, five years of supervised release, a fine of $250,000, and restitution. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Boston Police Commissioner William Evans, made the announcement today. The case was investigated by Homeland Security Investigations, the Boston Police Department’s Human Trafficking and Homicide Units, and the Federal Bureau of Investigation.
The U.S. Attorney’s Office also wishes to recognize and thank Shawn Meehan, Resident Agent in Charge of the Homeland Security Investigations’ Portland, Maine Office; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Aaron Steps, Supervisory Senior Resident Agent in Charge of the FBI Maine Office; the Suffolk County District Attorney’s Office; Cumberland County (Maine) District Attorney’s Office; the United States Attorney’s Office for the District of Maine; the Massachusetts State Police; the Portland (Maine), Old Town (Maine), Braintree, and South Portland (Maine) Police Departments; the Maine Drug Enforcement Agency; and the Cumberland County Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorneys Amy Harman Burkart and David D’Addio of Ortiz’s Civil Rights Enforcement Team and Special Assistant U.S. Attorney David S. Bradley from the Suffolk County D.A.’s Office.
Private Equity Fund Manager Indicted in $54 Million Embezzlement SchemeRead the Press Release
BOSTON – A Greenwich, Conn. man was indicted today in U.S. District Court in Boston in connection embezzling $54 million from the private equity firm for which he worked.
Iftikar Ali Ahmed, aka Ifty, 44, was indicted on four counts of wire fraud and three counts of making false statements on income tax returns. Ahmed is currently a fugitive from justice. He was charged in a separate scheme in April 2015, and fled the county while on pre-trial release.
The indictment alleges that between 2004 and April 2015, Ahmed embezzled more than $54 million from the private equity firm for which he worked as a general partner and fund manager. Ahmed embezzled the money through an elaborate scheme to defraud in which he submitted false invoices, substantially overstated the prices of international business deals he orchestrated on behalf of his employer, and by setting up fraudulent bank accounts in the name of the private equity firm for which he worked and the companies in which his employer invested. The indictment further alleges that Ahmed used the proceeds of his fraud to purchase a $9.6 million residence in Greenwich, Conn. and a luxury condominium in New York for approximately $8.6 million.
On one occasion in November 2014, it is alleged that Ahmed recommended to his private equity firm that it invest $20 million in an international company and justified the price by submitting fraudulent financial documents. At the same time, Ahmed informed the international company that his employer had agreed to purchase shares for $2 million. The indictment alleges that Ahmed then directed the private equity firm to wire $2 million to another company and the remaining $18 million to an account that Ahmed falsely claimed was the company’s account, but actually belonged to Ahmed. The indictment further alleges that on Jan. 12, 2015, Ahmed transferred the $18 million in fraud proceeds to his spouse and a portion of these funds was used to purchase a luxury condominium in New York City.
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 on each count. The charge of making false statements in income tax returns provides for a sentence of no greater than three years in prison, one year 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.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation Division in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Neil J. Gallagher, Jr. of Ortiz’s Economic Crimes Unit.
The details contained in the Indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Peabody Man Pleads Guilty to Child Pornography ChargesRead the Press Release
BOSTON – A Peabody man pleaded guilty today in U.S. District Court in Boston to receipt and possession of child pornography.
Patrick Lynch, 24, pleaded guilty to one count of receipt of child pornography and one count of possession of child pornography. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Sept. 14, 2016.
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.
The charge of receipt of child pornography provides for a mandatory minimum term of five years and no greater than 20 years in prison. The charge of possession of child pornography provides for no greater than 20 years in prison. Both statutes provide for a mandatory minimum of five years and up to a lifetime of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
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 is being prosecuted by Assistant U.S. Attorney Suzanne Sullivan 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/.
Department of Justice Recognizes District of Massachusetts Employees for Superior PerformanceRead the Press Release
BOSTON – Four members of the U.S. Attorney’s Office were recognized today by Deputy Attorney General Sally Yates and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 32nd Annual Director’s Awards Ceremony in Washington D.C.
Assistant United States Attorneys Fred Wyshak and Karen Bell, former AUSA Robert Fisher, and Asset Forfeiture Paralegal Specialist Lisa Talbot were among the 160 members of the Department of Justice recognized during a ceremony at the Robert F. Kennedy Department of Justice Building.
In her remarks, Deputy Attorney General Yates said, “The achievements being recognized today reflect the breadth of the department’s responsibilities, and some of our most significant challenges. From dismantling dangerous gangs, drug cartels and human trafficking operations to tackling political corruption, white collar crimes, and international terrorism, these awardees have taken on our toughest cases. And the citizens of our country are safer because of their work.”
“Each and every day, the employees of the U.S. Attorney’s Office demonstrate exceptional dedication to advancing the cause of justice,” said United States Attorney Carmen M. Ortiz. “Their work is not solely motivated by winning cases, but by protecting our fellow citizens from crime and upholding the rule of law. I am honored to work alongside these committed public servants whose collective accomplishments are nothing short of exceptional.”
In the category of Superior Performance by a Litigative Team, Fred Wyshak, Karen Bell and Robert Fisher were recognized for the exceptional investigation and prosecution of the Commissioner of the Massachusetts Department of Probation, John O’Brien, and his two deputies, Elizabeth Tavares and William Burke.
After a 30 month investigation and 12 week trial, in which 75 witnesses testified, including numerous state court judges and members of the state legislature, the three defendants were convicted of racketeering, mail fraud and gratuity charges. The investigation and trial revealed that almost every Massachusetts Probation Department hire and promotion was predicated on political sponsorship rather than merit. In return, the defendants benefited from political favors, including insulating their agency from budget cuts and increasing their political clout. The trial and convictions in this case illustrated how federal efforts to combat political corruption can have a substantive impact on the manner in which state government functions.
Lisa Talbot received the Superior Performance in Litigative Support Role. Ms. Talbot has been a paralegal with the Asset Forfeiture Unit of the U.S. Attorney’s Office for 16 years, and has developed an encyclopedic knowledge of asset forfeiture law and procedure over that period of time. She has handled some of the District’s highest-profile cases, including Boston Marathon Bomber Dzhokhar Tsarnaev, organized crime boss James “Whitey” Bulger, and former Speaker of the Massachusetts House of Representatives Sal DiMasi. She also has handled numerous international forfeiture cases, communicating with foreign law enforcement officials and coordinating complex legal requirements. Ms. Talbot’s work ethic, professionalism, dedication and leadership are extraordinary.
EOUSA Director Wilkinson said, “We honor the truly talented and dedicated legal and administrative personnel in the 94 U.S. Attorneys’ offices and our law enforcement partners who everyday touch lives in our communities, protect the American people, and work to ensure the fair and impartial administration of justice.”
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Worcester Nurse Indicted on Federal Drug Tampering ChargesRead the Press Release
BOSTON – A Worcester nurse was indicted by a federal grand jury in connection with stealing painkillers from the nursing home where she worked, and then attempting to conceal her crime by replacing the medication with saline.
Lea Roberge, 32, was indicted on two counts of tampering with a consumer product, specifically the Schedule II controlled substance morphine, which is used for pain relief. In November 2015, Roberge was initially charged with the offense in a criminal complaint.
The indictment alleges that on two separate occasions in March 2015, while working as a registered nurse at Holy Trinity Eastern Orthodox Nursing and Rehabilitation Center, Roberge tampered with morphine sulfate contained in emergency narcotic kits. The kits are available for use at the nursing home in case of an emergency when there is not enough time to obtain medication from the pharmacy. Roberge, who had access to these emergency narcotic kits, used a syringe to extract morphine from six vials and one bottle. In an attempt to avoid detection, she replaced the extracted medication with saline, thereby decreasing the potency of the drug.
The charging statute provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Russell Hermann, Acting Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office; and Commissioner Monica Bharel, MD, MPH, of the Massachusetts Department of Public Health, made the announcement today. The case is being prosecuted by Michelle Lauren Dineen Jerrett of Ortiz’s Worcester Branch Office.
The details contained in the Indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Marion Man Sentenced for Weapons ChargesRead the Press Release
BOSTON – A Marion man was sentenced today in connection with illegally possessing a revolver, a sawed-off shotgun and ammunition.
Jeffrey E. Tosca, Jr., 32, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 10 years in prison and three years of supervised release. In March 2016, on the second day of trial, Tosca pleaded guilty to being a felon in possession of a firearm and ammunition and possession of an unregistered firearm.
On Sept. 14, 2013, Tosca made threats over the phone from his home in Marion to shoot members of law enforcement, his father and others. Law enforcement, including a SWAT team, quickly responded and took steps to secure the area. Several hours later, law enforcement officers arrested Tosca without incident and seized a fully loaded revolver and a 12 gauge sawed-off shot gun, and over 100 pieces of assorted ammunition discovered in a storage container buried on the grounds of his residence.
Tosca had previously been convicted on multiple criminal charges, including 2012 and 2010 convictions on state weapons charges, a 2010 conviction for possession of narcotics, knowingly receiving stolen property and resisting arrest, and convictions in 2005 and 2006 for possession with intent to distribute controlled substances.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. The Marion Police Department and the Plymouth County Sheriff’s Department also assisted with the investigation. The case was prosecuted by Assistant U.S. Attorneys Suzanne Sullivan Jacobus and Mary B. Murrane of Ortiz’s Major Crimes Unit.
Former Bank Manager Sentenced to Prison for Role in Massive Mortgage FraudRead the Press Release
BOSTON – A former bank manager was sentenced on Friday, May 27, 2016 in connection with a multi-year, multi-property mortgage fraud scheme in Dorchester.
Arthur Samuels, 41, of Mattapan, was sentenced by U.S. District Court Senior Judge Mark L. Wolf to one year and one day in prison, two years of supervised release, and was ordered to pay restitution of $2,229,492. In 2012, Samuels pleaded guilty to four counts of wire fraud and one count of bank fraud.
From 2007 to 2008, Samuels engaged in a scheme with Michael David Scott, and others, to purchase multi-family residences and then sell individual condominium units in the buildings to straw buyers. Scott, a former realtor and developer, arranged to purchase multi-family residences and then sold individual condominium units to straw buyers recruited as investors by him, Samuels, and co-conspirators, Jerold Fowler and Thursa Raetz. Scott and his co-conspirators recruited straw buyers with promises that they would not have to make down payments, pay any funds at closing, or be responsible for mortgage payments, and would share in profits when the units were resold. In order to obtain mortgage loans for some of the straw buyers, Samuels created bogus bank deposits falsely representing that the straw buyers’ accounts had large balances with his bank. Scott then submitted mortgage loan applications that falsely represented key information, such as the buyers’ income, personal assets, down payment, and intention to reside in the condominiums. The mortgage lenders, (nine national mortgage companies and one local bank) were led to believe that the straw buyers had made substantial down payments and paid substantial sums at closing. In addition, Samuels also recruited a straw buyer for the purchase of two condominiums, and acted as a straw buyer himself on three properties.
In November 2015, Scott was sentenced to 135 months in prison, and Fowler and Raetz were sentenced to two years in prison.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Victor A. Wild and Ryan M. DiSantis of Ortiz’s Criminal Division.
Fall River Woman Arrested for Identity Theft and Theft of Social Security BenefitsRead the Press Release
BOSTON – A Jamaican woman living in Fall River was arrested today for using her sister’s identity to enter the United States and collect over $100,000 in Social Security benefits.
Sandra McDonald, 51, was charged in a criminal complaint with aggravated identity theft, theft of public money, passport fraud, and falsely representing a Social Security number. She is scheduled to appear in U.S. District Court in Boston today at 2:30 p.m.
According to the criminal complaint, 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. It is also alleged that in 1996, McDonald applied for Social Security Supplemental Security Income benefits under her sister’s identity, and to date she has received more than $134,000 in benefits illegally.
McDonald also obtained a Massachusetts driver’s license in her sister’s name, but with her own photo on it. In 2008, McDonald used her sister’s identity to apply for a passport for her own son. In 2012, McDonald obtained a Massachusetts state ID card in the name of a third woman.
The charge of aggravated identity theft provides for a mandatory term of two years in prison. 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.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lawrence Police Officer Arrested on Attempted Extortion ChargesRead the Press Release
Boston – A 16-year veteran officer of the Lawrence Police Department was arrested last night 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 charged in a complaint with unlawfully obtaining property by extortion under color of official right and threatened force and fear. Desantis last worked for Lawrence Police Department in February 2015 and has been on medical leave. Desantis was detained pending a detention hearing scheduled for May 31, 2016.
According to the complaint, Desantis had been purchasing small amounts of cocaine once or twice a week from the 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.
Springfield Man Indicted for Distributing Heroin and Crack CocaineRead the Press Release
BOSTON – Jovan Torres, 26, of Springfield, Mass., was arraigned today on three counts of distribution and possession with intent to distribute heroin and one count of distribution of heroin and crack cocaine.
According to the indictment, on four separate days in July and August 2013, Jovan Torres distributed heroin. On one of those days, he also distributed crack cocaine. Torres was detained pending a detention hearing scheduled for June 1, 2016 before U.S. District Court Magistrate Judge Katherine Robertson.
The charging statutes provides a sentence of no greater than 20 years in prison, at least 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.
United States Attorney Carmen M. Ortiz and Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Katharine A. Wagner of Ortiz=s Springfield Office.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Haydenville Woman Sentenced for Stealing Social Security BenefitsRead the Press Release
BOSTON – A Haydenville, Mass. woman was sentenced today in U.S. District Court in Springfield to stealing more than $45,000 of her deceased mother’s Social Security benefits.
Shirley Warner, 52, was sentenced by U.S. District Court Judge Mark G. Mastroianni to three years of probation and was ordered to pay $45,491 in restitution to the Social Security Administration and a fine of $1,000.
In July 2010, Warner’s mother died, but her monthly Social Security benefits continued to be directly deposited into a joint bank account in her and Warner’s names. From August 2010 to March 2014, Warner continued to receive her deceased mother’s benefits totaling $45,491.
This case was brought as part of an ongoing effort by the U.S. Attorney’s Office, in partnership with the Social Security Administration, to investigate and prosecute the posthumous fraud of Social Security benefits. In many of these cases, family members, knowing they are not entitled to government benefits, continue to withdraw and spend the funds after a relative has died. In the past year, the U.S. Attorney’s Office has prosecuted several similar cases involving a total of more than $1 million in stolen government money.
Last month, Lynn Medeiros, of New Bedford, was sentenced to four months in prison and ordered to pay restitution for stealing over $60,000 in Social Security benefits by continuing to collect her disabled son’s benefits after he left her custody.
Also last month, Mark Gardner, of Abington, was sentenced to three years of probation and ordered to pay restitution and a fine for stealing $65,311 in Social Security benefits.
United States Attorney Carmen M. Ortiz and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Deepika Bains Shukla of Ortiz’s Springfield Branch Office.
Connecticut Man Sentenced for Possessing Marijuana & $1 Million in Drug MoneyRead the Press Release
BOSTON – A Connecticut man was sentenced today in U.S. District Court in Springfield in connection with distributing marijuana.
Connor Cipolla, 31, of Granby, Conn., was sentenced by U.S. District Court Judge Mark G. Mastroianni to one year and one day in prison, three years of supervised release, and a fine of $15,000. In February 2016, Cipolla pleaded guilty to one count of possession with intent to distribute marijuana involving between 100 and 400 kilograms of marijuana.
In October 2014, Cipolla drove to his storage locker at Uncle Bob’s Storage in Agawam. While there, he saw federal agents conducting a search of another locker. Mistakenly believing that agents were searching his locker, Cipolla immediately fled by car, eventually abandoning his car in an effort to evade police. Agents later obtained a search warrant for Cipolla’s storage locker and discovered over $1 million in cash and 111 pounds of marijuana.
United States Attorney Carmen M. Ortiz; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Agawam Police Chief Eric Gillis; and Southwick Police Chief David A. Ricardi, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Deepika Bains Shukla of Ortiz’s Springfield Branch Office.
Brewster Man Sentenced for Assaulting a Park Ranger on Cape Cod BeachRead the Press Release
BOSTON – A Brewster man was sentenced today in U.S. District Court in Boston for assaulting a Park Ranger on a Cape Cod National Seashore beach in Eastham, Mass.
Donald L. Savage, 57, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 27 months in prison and three years of supervised release. In February 2016, Savage was convicted by a federal jury of assaulting a federal officer.
On June 6, 2015, Savage and his wife requested permission to park in a restricted lot at Coast Guard Beach, which is part of the Cape Cod National Seashore in Eastham. Park attendants granted Savage permission to park for 10 minutes, and instructed him not to go on the protected beach. After 30 minutes, Savage had not left the beach and the gate attendants requested assistance from a Park Ranger. When the Ranger arrived and spoke with Savage, he refused to provide identification despite repeated requests. Savage became hostile and the Ranger requested that he sit on the ground. Eventually, Savage provided a driver’s license, but after a few minutes of sitting he got up and began a physical altercation with the Ranger. During the altercation, which was captured on the Ranger’s body camera, Savage bit the Ranger’s right ring finger causing a significant injury. The Ranger drew his Taser and ordered Savage to the ground. After sitting on the ground for five minutes, Savage got up and again physically confronted the Ranger at which point the Ranger tased Savage. Within minutes, additional law enforcement officers arrived.
United States Attorney Carmen M. Ortiz; Leslie Reynolds, Chief Ranger of Cape Cod National Seashore; and Eastham Police Chief Edward Kulhawik, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit.
Hingham Woman Pleads Guilty to Mortgage FraudRead the Press Release
BOSTON – A Hingham woman pleaded guilty today in U.S. District Court in Boston to defrauding mortgage companies in connection with multiple mortgages she obtained on a single residence.
Denise Bruce, 56, pleaded guilty to five counts of bank fraud. U.S. District Court Senior Judge Douglas P. Woodlock scheduled sentencing for Aug. 18, 2016.
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 is being prosecuted by Assistant U.S. Attorney Victor A. Wild of Ortiz’s Economic Crimes Unit.
Andover Attorney Sentenced to Prison for $1.6 Million IRS ScamRead the Press Release
BOSTON –An Andover attorney was sentenced today in U.S. District Court in Boston in connection with his role in converting and laundering more than $1.6 million in fraudulently-obtained IRS refund checks through several different bank accounts, including several of his attorney trust accounts.
R. David Cohen, 64, was sentenced by U.S. District Court Judge Leo T. Sorokin to 54 months in prison and three years of supervised release during which time he is not permitted to practice law or act as a notary. The Court also ordered Cohen to pay over $1.6 million in restitution as well as forfeiture. In January 2016, Cohen was convicted by a federal jury in of one count of conspiracy to covert government funds, 14 counts of conversion and receipt of stolen United States property, and one count conspiracy to commit money laundering.
Cohen engaged in a scheme in which individuals filed fraudulent tax returns with fictitious W-2 information, usually a name and social security number of a resident of Puerto Rico, whose residents are not required to file federal income tax returns. Once the fraudulent returns were accepted by the IRS, refund checks were sent to designated addresses in Lawrence, East Boston, and New York controlled by Cohen’s co-conspirators.
Beginning in October 2011, Cohen and his co-conspirators deposited over 100 fraudulently-obtained tax refund checks totaling over $1 million into banks to launder them through Cohen’s “Interest On Lawyer’s Trust Accounts” (IOLTA), as well as through bank accounts in the name of AD Professional Association, Inc. When questioned by bank officials about the large amount of U.S. Treasury checks Cohen was depositing and negotiating through his IOLTA and personal accounts, Cohen falsely claimed that the payees were his clients. When one bank requested proof concerning one of the IRS refund checks, Cohen provided a fake participation agreement and affidavit purporting to state that he had the client’s authority to deposit her IRS refund check into his IOLTA account.
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. Attorneys S. Theodore Merritt and Ryan M. DiSantis of Ortiz’s Public Corruption Unit.
Tobacco Distributors Plead Guilty to Multi-Million Dollar Tax Evasion SchemeRead the Press Release
BOSTON – Two men pleaded guilty today in U.S. District Court in Boston to evading federal income taxes and defrauding the Commonwealth of Massachusetts of millions of dollars in connection with the sale of cigarettes and other tobacco products.
Raza Ali, 56, of Hopkinton, and Kaleem Ahmad, 47, of Sharon, both pleaded guilty to one count of conspiring to commit wire fraud and launder money and one count of making a false statement on a federal income tax return. Ali and Ahmad were arrested and charged in a criminal complaint in December 2015. A third co-conspirator, Muhammad Saleem Iqbal, 54, of Sharon, also pleaded guilty for his role in the same conspiracy in May 2016. Ali is scheduled to be sentenced on Sept.14; Ahmad on Sept. 9; and Iqbal on Sept. 7, 2016.
Ali, Iqbal and Ahmad operated a wholesale business in Norwood, Mass. that sold tobacco products, including cigars, smoking tobacco and smokeless tobacco (such as snuff and chewing tobacco), to convenience stores, gas stations and other retail businesses. The business was conducted in Massachusetts under the names “Pick N Dip” and, later, “MSI Distributors.”
Wholesale businesses that distribute smoking tobacco, smokeless tobacco and cigars in the Commonwealth of Massachusetts must be licensed by the Massachusetts Department of Revenue. Wholesalers of smokeless tobacco must file an excise tax form monthly and pay excise tax on smokeless tobacco brought into and sold in Massachusetts. Cigar and smoking tobacco wholesalers must file an excise tax form quarterly and pay excise tax on cigars and smoking tobacco brought into and sold in Massachusetts.
To supply their business, Ali and Iqbal repeatedly purchased tens, and sometimes hundreds of thousands, of dollars at a time of smoking tobacco, smokeless tobacco and cigars in Pennsylvania, where no taxes are imposed on these products. Ali then arranged to have the products covertly transported to Massachusetts for resale. Ali and Iqbal did not file reports and records required by state and federal law, and did not pay excise taxes.
Ali, Iqbal and Ahmad accepted payments primarily in cash. They made and directed multiple bank deposits of cash from the business in amounts less than $10,000 to create the false appearance that the total amount being deposited fell below the amount they knew the banks were required to report to the U.S. Treasury Department. Ahmad and others repeatedly transported cash in excess of $50,000 at a time generated by the sale of untaxed cigars, smoking tobacco and smokeless tobacco products in Massachusetts to Pennsylvania, where the money was used to purchase additional untaxed tobacco products.
The charge of conspiracy provides for a sentence of no greater than five years in prison, three years of supervised release, restitution to the Commonwealth, and a fine of twice the tax loss to the Commonwealth. The charge of subscribing to a false income tax return provides for a sentence of no greater than three years in prison, one year of supervised release, restitution to the federal government and a fine of $100,000. Actual sentences for federal crimes are typically less than maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and David W. Hall, Special Agent in Charge of the Department of State, Diplomatic Security Service, Boston Field Office, made the announcement today. The Norwood Police Department provided valuable assistance in the investigation. The case is being prosecuted by Assistant U.S. Attorney Stephen P. Heymann of Ortiz’s Economic Crimes Unit.
Easthampton Man Sentenced for Cocaine and Marijuana DistributionRead the Press Release
BOSTON – An Easthampton man was sentenced today in U.S. District Court in Worcester for distributing cocaine and marijuana.
David Dulchinos, 51, of Easthampton, was sentenced by U.S. District Court Judge Timothy S. Hillman to 18 months in prison and three years of supervised release. In February 2016, Dulchinos pleaded guilty to one count each of distribution of cocaine and distribution of marijuana.
On Feb. 7, 2014, Dulchinos distributed cocaine and marijuana to an individual cooperating with federal agents. The transaction was captured on video and audio recordings. Dulchinos pleaded guilty to distributing nearly 400 grams of cocaine and 27 grams of marijuana in connection with that transaction.
United States Attorney Carmen M. Ortiz; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Easthampton Police Chief Bruce McMahon, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Deepika Bains Shukla of Ortiz’s Springfield Branch Office.
Two Men Sentenced to Prison for Multi-State Scheme to Obtain New Cell Phones through FraudRead the Press Release
BOSTON – Two men were sentenced today in U.S. District Court in Boston in connection with a fraudulent scheme to obtain and re-sell more than $330,000 in new cell phones.
David Hul, 34 of North Arlington, NJ, was sentenced by U.S. District Court Senior Judge Mark L. Wolf to 21 months in prison. Judge Wolf also sentenced Curtis Peebles, 26 of Boston and New York, NY to 18 months in prison. In February 2016, they pleaded guilty to wire fraud conspiracy. Co-defendants Jimmy Phan and Lee Tran previously pleaded guilty. Tran is scheduled to be sentenced on Sept. 12, 2016, and Phen’s hearing has yet to be scheduled.
Hul, Peebles and their co-conspirators gained access to T-Mobile customer records, including customer names, phone numbers, and information regarding those customers’ eligibility for free phone upgrades.
From at least January 2014 through October 17, 2014, Phan, Hul, Peebles, and other co-conspirators called T-Mobile customer service centers and, impersonating T-Mobile employees, used dealer codes that enabled them to add any name as an authorized user on T-Mobile accounts. They then recruited “runners”, including Tran and others, to go into T-Mobile stores and impersonate the customers. Phan, Hul, and Peebles used the dealer codes, among other methods, to cause either the runners’ real names or false identities to be added the customer accounts, sometimes using false names that closely matched the runners’ real names to reduce the likelihood of T-Mobile detecting the fraud.
Runners then went to T-Mobile stores in Massachusetts, Nevada, New Hampshire, New York, Pennsylvania, Rhode Island, New Jersey, Florida, and elsewhere, presented identification in the real or assumed names, and acquired one or more new cell phones on accounts that were eligible for upgrades. Runners then returned the new phones to Phan, Hul, Peebles, and others, who paid them a portion of the phone’s value. Although T-Mobile regularly alerted its customers to changes to their accounts, the affected customers frequently did not learn of the fraudulent modifications in time to prevent the distribution of the phones.
Phan, Hul, and others re-sold the cell phones to other coconspirators for distribution in the United States and abroad. In total, Phan, Hul, Peebles, Tran, and other co-conspirators obtained at least $330,000 worth of new cell phones by defrauding T-Mobile.
Co-defendants Kevin Johnson, 24, of New York, NY, and Khoa Doan, 32 of Manchester, NH, are currently scheduled to stand trial on a date to be set by the Court.
United States Attorney Carmen M. Ortiz; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service’s Boston Field Office, made the announcement today. The U.S. Attorney’s Office acknowledges T-Mobile for its assistance with the investigation. The case is being prosecuted by Assistant U.S. Attorney Seth B. Kosto of Ortiz’s Cybercrime Unit.
Inmate Charged with Plotting to Kill PresidentRead the Press Release
BOSTON – An inmate at Old Colony Correctional Center in Bridgewater, Mass. was charged today with threatening to kill the President of the United States.
Alex Hernandez, 31, of Worcester, was charged in U.S. District Court in Boston with two counts of threatening to kill and inflict bodily harm upon the President of the United States.
According to the complaint, in March 2015, agents learned that Hernandez told another inmate who was working as a cooperating witness in the investigation, that he was upset about the way his people were being treated, wanted to become a mujahedeen, had the ability to obtain weapons upon release from prison, and wanted to kill the President in a lone-wolf style attack. Hernandez also allegedly expressed an interest in obtaining false travel documents so he could flee the country after his attack.
Based on these allegations, agents decided to introduce Hernandez to an undercover agent posing as an embassy contact who could assist Hernandez with obtaining false travel documents. In November 2015, at the direction of federal agents, the cooperating witness provided Hernandez with a mailing address for his purported embassy contact. In actuality, the mailing address was that of an undercover law enforcement post office box. From that point on, Hernandez allegedly wrote two letters to the embassy contact. In the second letter, Hernandez stated, “I am writing to you now to ask that you come see me. I am a brother in faith, a martyr; and as a martyr I wish to fulfill Allah’s wishes and not to live among infidels. The mujahedeen movement is hard but pure. I need your help and I hope to meet you in person.”
According to the complaint, on Dec. 22 2015 and Feb. 12, 2016, the undercover agent posing as the embassy contact met with Hernandez at Old Colony Correctional Center. During the first meeting, Hernandez allegedly stated he wanted to attack, “the house with the big people there.” The agent inquired whether Hernandez meant the White House and Hernandez said he did. When asked for additional details about his plan, Hernandez explained, “there is always a head. He’s the one who’s always in charge. So if you attack the head, everything will go down a little bit.” Hernandez went on to say that he wanted to learn how to shoot “like a sniper,” and that he had a contact in Florida that had a firearm ready for him. He also stated that he was studying how to make explosives that could be placed around government buildings to “create chaos.” During the second meeting with the undercover agent, Hernandez allegedly discussed the motivation for his planned attacks – telling the agent that his brothers are “fighting to uphold the laws and structure of the caliphate in the Middle East” and that “this government . . . is painting it like they are the bad guys[.]” Hernandez also allegedly explained that he wanted to target the President because “he’s the one that gives the orders[.]”
Court documents also allege that over the course of the investigation, searches of Hernandez’s jail cell revealed several items of concern such as a document listing the former U.S. Presidents and containing the handwritten notation “kill” underneath all the U.S. Presidents that have been assassinated while in office, and images of the September 11, 2001 attacks, Osama Bin Laden, and members of the Islamic State of Iraq and the Levant (ISIL) holding assault weapons and the ISIL flag.
The charging statute provides a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service; and Thomas Turco, Commissioner of the Massachusetts Department of Correction, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Jordi de Llano of Ortiz’s Major Crimes Unit.
Arizona Executive Sentenced for $500,000 Investment SchemeRead the Press Release
BOSTON – An Arizona man was sentenced today in U.S. District Court in Boston in connection with defrauding four people who invested in his foreign currency trading company.
David Prescott, 45, formerly of Boston, was sentenced by U.S. District Judge Allison D. Burroughs to 18 months in prison, three years of supervised release and restitution of $505,619. In November 2016, Prescott pleaded guilty to four counts of wire fraud. Prescott, who previously went by the name of David Weeks, was indicted on those charges in February 2015.
Prescott was the owner and President of Cambridge Currency Partners, LLC (CCP), which was purportedly engaged in the business of buying and selling foreign currency. Prescott falsely represented to investors that their funds would be invested in CCP and used for business purposes, and that the investors would receive a monthly return. In fact, Prescott used the majority of the $500,000 he obtained from four individual investors, one of whom was located in Massachusetts, on his own personal expenses.
As part of the scheme, Prescott solicited investors by promising monthly returns, and made payments to them that purported to be interest, but, in fact, simply consisted of money from other investors. Prescott promised investors guaranteed monthly returns in amounts ranging from three to nine percent with little to no risk to the underlying principal. Prescott made false representations to the investors regarding the balances in their accounts. As a result, Prescott was able to secure multiple investments from the same investors. On one occasion, Prescott allegedly emailed an investor and promised to increase the interest paid on her previous investments if she were willing to invest additional funds, even though Prescott had already spent the majority of her previous investments on personal expenses and repayments to other investors.
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 Mark J. Balthazard of Ortiz’s Economic Crimes Unit.
Springfield Man Indicted on Federal Firearm ChargeRead the Press Release
BOSTON – Kenneth Finch, Jr., 29, of Springfield, was indicted by a federal grand jury in Springfield on one count of being a convicted felon in possession of a firearm.
According to court documents, in June 2015, law enforcement received information that Finch was a source for firearms in the Springfield area. On June 3, 2015, Finch sold a Ruger Model P-90 .45 caliber pistol and six rounds of .45 caliber ammunition to two undercover officers in exchange for $1,200. Finch had prior felony convictions in North Carolina for possession of a firearm by a convicted felon, breaking and entering, attempted burglary in the second degree, and possession with intent to distribute marijuana.
The charge 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 Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Katharine A. Wagner of Ortiz’s Springfield Branch Office.
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.