District of Massachusetts
Press releases recorded for this federal judicial district.
Former Airline Employee Sentenced in Logan Airport StingRead the Press Release
BOSTON – A former Delta Airlines employee was sentenced today for smuggling thousands of dollars of what he believed to be drug money past security checkpoints at Boston’s Logan International Airport.
Dino Dunkley, 29, of Mattapan, was sentenced today by U.S. District Court Senior Judge Rya W. Zobel to two years in prison, two years of supervised release and ordered to pay a fine of $3,000. Dunkley previously pleaded guilty to conspiracy to defraud the United States and two counts of illegally entering an airport area with intent to commit a felony.
A federal undercover operation was initiated at Logan Airport in August 2012, after federal agents discovered lapses in airport security and the potential for airline employees to smuggle contraband around the employee security system. Dunkley was one of five individuals identified as a potential smuggler.
On two occasions between October 2012 and December 2012, Dunkley used airport security credentials to evade Transportation Security Administration checkpoints and smuggled $100,000, which was represented to be drug proceeds, from a non-secure airport area to the secured passenger departure area of Logan. Dunkley was paid $3,000 as compensation from a cooperating witness. Unbeknownst to Dunkley, the cash smuggling plan was part of an undercover sting operation.
Four other airport workers, all former JetBlue Airways employees, identified in the investigation were previously sentenced for similar offenses. In January 2015, Rupert Crossley was sentenced to two years in prison and Anthony Trotman was sentenced to 14 months in prison. Eric Vick was sentenced in May 2015 to 18 months in prison. Alvin Leacock was sentenced in December 2015 to 18 months in prison.
U.S. Attorney Carmen M. Ortiz; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Bob Allison, Federal Security Director of the Transportation Security Administration; Dwain Troutt, Special Agent in Charge of the Federal Air Marshal Service; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. The U.S. Attorney’s Office would also like to acknowledge the assistance and cooperation of the Massachusetts Port Authority, JetBlue Airways Corporate Security and Delta Airlines. The case was prosecuted by Assistant U.S. Attorneys Carlos A. López, Maxim Grinberg, and Dustin Chao of Ortiz’s Criminal Division.
Springfield Felon Sentenced for Illegally Possessing FirearmRead the Press Release
BOSTON – A previously convicted felon was sentenced today in U.S. District Court in Springfield for being in possession of a firearm with an obliterated serial number.
Lavon Pemberton, 28, was sentenced by U.S. District Court Judge Michael A. Ponsor to seven years in prison and three years of supervised release after pleading guilty in September 2015.
On June 15, 2012, Pemberton possessed a Taurus .357 caliber handgun loaded with six rounds of hollow-point .380 ammunition. Law enforcement officers discovered the firearm in Pemberton’s backpack after arresting him on an outstanding warrant. Pemberton has a an extensive, violent criminal history, including a 2012 conviction for attempted second degree assault for which he was sentenced to a five-year suspended sentence just three days before being caught with the handgun and ammunition.
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 Commissioner John Barbieri of the Springfield Police Department, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Kevin O’Regan and Katharine A. Wagner of Ortiz’s Springfield Branch Office.
Jamaica Plain Man Sentenced for Stealing from Social SecurityRead the Press Release
BOSTON – A Jamaica Plain man was sentenced today in U.S. District Court in Boston for stealing $70,811 in Social Security benefits.
Brian Sandiford, 59, was sentenced by U.S. District Court Judge Douglas P. Woodlock to one year of probation, including six months of home confinement, and ordered to pay a fine of $2,000 and restitution of $70,811 to the Social Security Administration, which he paid in full today. In November 2015, Sandiford pleaded guilty to stealing public money.
Sandiford’s father died in 2010, but the father’s monthly Social Security benefits continued to be directly deposited into a bank account held jointly by Sandiford and his father. Although he was not entitled to this money, Sandiford routinely transferred the Social Security money into his own bank account and then spent it. In total, from 2010 to 2014, Sandiford took $70,811 in Social Security funds to which he was not entitled.
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.
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 Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
Chelmsford Financial Planner Convicted of Attempted Murder-For-Hire of State TrooperRead the Press Release
BOSTON – Following a five-day trial, a federal jury in Boston convicted a financial planner of attempting to hire an individual to murder a Massachusetts State Police Trooper and another individual who were witnesses in his state trial.
Andrew S. Gordon, 53, of Chelmsford, Mass., was convicted of five counts of using the mail or the telephone with the intent that a murder-for-hire be committed. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for May 20, 2016.
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 learned that the “ hit man” was an undercover officer and so he hatched a plot to have that officer 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, agreeing to pay $10,000 for the Trooper and $5,000 for the other witness. Through mail and phone calls, Gordon instructed the “gang member” that both deaths should appear as accidents. In actuality, Gordon was communicating with a second undercover law enforcement officer.
The federal charges provide for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000 on each count. 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, 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 Hemani of Ortiz’s Major Criminal Division.
Springfield Man Indicted on Federal Cocaine ChargesRead the Press Release
BOSTON – Radames Perez, 38, of Springfield, was arrested today after being indicted on Feb. 4, 2016 in U.S. District Court in Springfield for distributing cocaine and conspiring to distribute cocaine.
The indictment alleges that in January 2014, Perez conspired to distribute cocaine and between Jan.13 and Jan. 29, 2014, Perez possessed with the intent to distribute and distributed cocaine.
The charges of conspiracy and distribution of cocaine 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. 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 and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Deepika Bains Shukla of Ortiz’s Springfield Office.
Nanny Sentenced for Forging Dozens of ChecksRead the Press Release
BOSTON – A Randolph woman who was employed as a nanny was sentenced today in U.S. District Court in Boston in connection with forging 65 checks totaling over $280,000 from her employers’ bank account.
Stephanie L. Fox, 30, was sentenced by U.S. District Court Judge Richard G. Stearns to 40 months in prison, three years of supervised release and restitution of $281,917. In November 2015, she pleaded guilty to three counts of bank fraud.
Fox was employed as a nanny from February 2013 until August 2015 when her employers discovered that for more than a year she had been writing checks on one of their bank accounts and forging one of their signatures on the checks. Fox avoided detection by destroying the bank account statements when they arrived at her employers’ home. In total, Fox forged 65 checks totaling $281,917. She used the money to purchase jewelry, including a diamond pendant necklace and three Movado watches, as well as for travel to places such as the Bahamas, Aruba, Hawaii, Newport, Disney, and Cape Cod.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Commissioner William Evans of the Boston Police Department, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Mark J. Balthazard of Ortiz’s Economic Crimes Unit.
Harvard-Trained Mutual Fund Manager Convicted of Securities Fraud and Obstruction of JusticeRead the Press Release
BOSTON – A Harvard-trained mutual fund manager was convicted today in connection with a scheme to use a mutual fund’s money to issue fictitious loans.
Daniel Thibeault, 41, of Framingham, pleaded guilty to one count of securities fraud and one count of obstruction of justice. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for June 16, 2016.
Thibeault was the owner of Graduate Leverage, LLC, an asset management and financial advisory firm he founded while a student at Harvard Business School, from which he graduated in 2004. Thibeault was also the co-portfolio manager of the GL Beyond Income Fund, a mutual fund launched in March 2012 that, according to its marketing materials and securities filings, purported to invest in loans to individuals who were “less susceptible to economic downturns, such as medical doctors, dentists, veterinarians, attorneys and business owners.”
Beginning no later than February 2013, Thibeault caused the Fund to issue several dozen loans, with values of hundreds of thousands of dollars, in the names of individuals who were his personal friends or acquaintances. In fact, those individuals had never applied to borrow money from Graduate Leverage, were unaware that the loans had been issued in their names, and did not receive any money. Instead, the money was diverted from the Fund into a Graduate Leverage operating account and used, at Thibeault’s direction, to pay the operating expenses of Graduate Leverage and its affiliated entities, Thibeault’s personal expenses, and interest on loans Thibeault had previously caused the Fund to issue. Some of the money was also transferred to Thibeault’s personal bank account. This use of investor money was contrary to GL’s representations to the Fund’s actual and prospective investors, and was not disclosed to them. By the time of Thibeault’s arrest in December 2014, more than $15 million – or more than 40 percent of the total assets purportedly held by the Beyond Income Fund – had been diverted as a result of Thibeault’s scheme.
Shortly before Thibeault’s arrest, the Securities and Exchange Commission opened a formal investigation into possible fraud at the Fund, and commenced an unannounced examination at GL’s offices in Waltham. As part of the examination, the SEC interviewed Thibeault. At today’s proceeding, Thibeault admitted that numerous statements he made to the SEC during the interview were false and intended to obstruct the SEC’s examination.
The charge of securities fraud provides for a sentence of no greater than 30 years in prison, five years of supervised release and a fine of $5 million. The charge of obstruction of justice provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of 250,000 or twice the gross gain or loss, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The United States Attorney’s Office received valuable assistance from the Securities & Exchange Commission in the course of investigating this case. The case is being prosecuted by Assistant U.S. Attorneys Stephen E. Frank and Brian A. Perez -Daple of Ortiz’s Economic Crimes Unit.
U.S. Attorney’s Office Hosts Conference on Ending the School-To-Prison PipelineRead the Press Release
BOSTON – The U.S. Attorney’s Office’s Civil Rights Unit hosted “Ending the School-to-Prison Pipeline,” a conference aimed at examining and restructuring existing practices in order to reduce the number of students who take their first steps toward involvement with the criminal justice system while in school.
“The Civil Rights Unit of the U.S. Attorney’s Office is responsible for enforcing a wide range of federal civil rights statutes, and an increasingly large proportion of its work has been devoted to ensuring that youth in Massachusetts have access to equal educational opportunities,” said U.S. Attorney Ortiz. “This conference focused on connecting a diverse array of stakeholders who all share the common goal of formulating creative solutions to end the school-to-prison pipeline in different disciplinary fields, in addition to educating participants about the Civil Rights Unit’s role in disrupting the school-to-prison pipeline.”
The half-day conference, held at the Harvard Graduate School of Education, brought together a diverse audience of over 300 educators, school resource officers, advocates, lawyers, students, social workers, and community members for a series of panels and plenary sessions about broadening the dialogue around the school-to-prison pipeline. The term “school-to-prison pipeline” broadly describes the phenomenon by which youth – particularly youth of color and youth with disabilities – are pushed out of the classroom, through overly punitive discipline practices and school-based arrests, and into the juvenile justice system.
Keynote speaker Chief Judge Steven C. Teske of the Clayton County Juvenile Court in Georgia spoke about the need to avoid zero tolerance policies in schools and arrests for minor offenses. Stephen Spaloss, the Regional Vice President of City Year, hosted a plenary about how service providers should examine how they build positive and supportive relationships with the youth they serve.
Panels explored topics including innovations in training school resource officers, juvenile court reform and restorative justice, trauma-sensitive schools, and the effect of the school-to-prison pipeline on students with disabilities. Panelists included local and national thought leaders from a variety of disciplines, including judges from the Middlesex Juvenile Court and formerly with the Supreme Judicial Court of Massachusetts, civil rights lawyers from the Lawyers’ Committee for Civil Rights and Economic Justice and the Disability Law Center, law enforcement officers from the Cambridge Police Department, and professors from the Harvard Graduate School of Education, Harvard Law School, Boston University School of Law, and the Boston College School of Social Work.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
U.S. Attorney Ortiz Launches Independent Investigation of Alleged Civil Rights Violations at Boston Latin SchoolRead the Press Release
BOSTON – United States Attorney Carmen M. Ortiz announced today that the Civil Rights Unit of the U.S. Attorney’s Office for the District of Massachusetts is launching an independent investigation of alleged civil rights violations at Boston Latin School (BLS).
On Feb. 26, 2016, eight civil rights organizations and community members, including the ACLU of Massachusetts, the Boston Branch of the NAACP, and the Lawyers Committee for Civil Rights and Economic Justice, submitted a joint written complaint to the U.S. Attorney’s Office that raised concerns about racial harassment and discrimination, among other things, at BLS.
“We will conduct a thorough investigation into the recent complaints about racism at BLS and will go where the facts lead us. Once our investigation is complete, we will share our findings at the appropriate time,” said U.S. Attorney Ortiz. “I want to thank Mayor Walsh and Superintendent Chang who have pledged their full cooperation in this independent investigation.”
The U.S. Attorney’s Office is authorized to investigate the allegations of racism at BLS under Title IV of the Civil Rights Act of 1964, which prohibits discrimination on the basis of race, color, national origin, sex, and religion in public schools and colleges/universities.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
U.S. Attorney Ortiz Conducts Review of Disability Access to Polls on Super TuesdayRead the Press Release
BOSTON – United States Attorney Carmen M. Ortiz announced today that her office’s Civil Rights Unit conducted a review of all polling locations in Lawrence and Barnstable to determine whether the polls are being operated in compliance with the Americans with Disabilities Act of 1990 (ADA).
“Our constitution gives Americans the right to vote, but that right is meaningless if there are physical barriers that prevent people from casting their ballot,” said U.S. Attorney Ortiz. “Disability rights have been a major focus of my office’s civil rights work in recent years, and my office will continue to vigorously ensure compliance with the ADA in Massachusetts.”
The U.S. Attorney’s Office selected these locations for review to ensure that they are accessible to the large numbers of residents who are expected to vote at these polling locations during the Presidential primary election on Super Tuesday. In a study following the previous Presidential election, the Government Accountability Office found that only 27% of polling places had no potential impediments to access by people with disabilities, meaning 73% of polling locations contained architectural barriers to voting. This initiative is being conducted in accordance with the Department of Justice’s statutory responsibility to review compliance with federal law and not in response to any specific complaint against any of the polling locations.
Federal law prohibits discrimination on the basis of disability by the owners and operators of places of public accommodation, including polling locations, and the right to participate in state and local government programs and services. The U.S. Attorney’s Office periodically undertakes ADA compliance reviews to ensure equal access for people with disabilities.
As part of its Super Tuesday ADA compliance review, attorneys, architects, and staff from the U.S. Attorney’s Office and the Department of Justice surveyed every polling place in Lawrence and Barnstable. If these site visits reveal that a particular polling location is not in compliance with the ADA, the U.S. Attorney’s Office will notify the appropriate state and local official of the violation and will provide a timeframe to correct the issue(s). The goal is to ensure that all polling locations are fully compliant in time for the Presidential election on Nov. 8, 2016.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
Irish Citizen Pleads Guilty to Misuse of Social Security NumberRead the Press Release
BOSTON – Francis J. Moloney, an Irish citizen living in Marlborough, pleaded guilty yesterday in U.S. District Court in Boston to one count of misuse of a social security number. U.S. District Court Judge Denise J. Casper scheduled sentencing for June 16, 2016.
On March 20, 2013, Moloney 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.
The charge 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 on 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; David W. Hall, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office; and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz’s Major Crimes Unit.
Former Stockbroker Sentenced for Fraud and Tax EvasionRead the Press Release
BOSTON – A previously convicted former stockbroker was sentenced yesterday in U.S. District Court in Springfield in connection with an investment scheme which defrauded victims of more than $600,000.
Jeffrey Eldred Gallagher, 73, of Bradenton Beach, Fla., was sentenced by U.S. District Court Judge Mark G. Mastroianni to three years in prison. In December 2015, Gallagher pleaded guilty to one count of wire fraud, three counts of engaging in a monetary transaction and two counts of tax evasion. In 1989, Gallagher was convicted of one count of mail fraud and three counts of interstate transportation of stolen property in connection with his illegal and unauthorized options trading while he was a stockbroker.
From at least 2008 through early 2012, Gallagher persuaded friends and associates to pay him money to invest on their behalf, and made promises that the investments would yield guaranteed returns of 10 to 15 percent. Gallagher then commingled investor funds with his own personal funds, and paid some investors with monies given to him by other investors. When investors asked Gallagher for the return of their investments, he provided numerous false explanations concerning his attempts to repay them, such as by falsely claiming that his mother, who is still alive, had died on several different dates. In a similar effort to stall for time, Gallagher wrote investors more than 40 bad checks totaling $1,783,375. In sum, 23 investors lost a total of approximately $617,475.
As part of the scheme, in 2009 and 2010, Gallagher used approximately $249,703 of investor monies for his personal benefit, but did not report any of this income on his federal income tax returns for those years.
During the hearing, Judge Mastroianni described Gallagher’s crimes as “very serious offenses” and stated that they involved a “betrayal of friendships and a breach of trust among friends.”
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Manny J. Muriel, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz's Springfield Branch Office.
Blackstone Woman Charged with Stealing Customers’ Personal InformationRead the Press Release
BOSTON – A Blackstone woman was charged today in U.S. District Court in Boston in connection with her role in a scheme to steal personal and bank account information from clients of her former employer.
Jasmine Banks, 29, was charged in an Information with one count of conspiracy to commit identity theft and access device fraud.
The Information alleges that, in 2014, Banks was a customer service employee for Mercer, Inc., in Norwood, and assisted customers with technical questions regarding their retirement plans that were administered by Mercer. In connection with her work, she had access to detailed account information and personally identifiable information (PII) for customers’ retirement accounts.
According to court documents, from approximately February 2014 through April 2014, Banks accessed Mercer account information at her computer and provided the names, addresses, and bank account and routing numbers of approximately 270 Mercer account holders to one of her co-conspirators via email and text message. In many cases, she also provided dates of birth and social security numbers. Banks allegedly reviewed 401(k) accounts for large balances, chose four with significant assets, and sent the co-conspirator detailed account access information for those four accounts. Based on the information Banks provided, a fraudulent withdrawal of $23,485 was made from one of the retirement accounts.
Mercer fully cooperated with law enforcement to prevent further account breaches and withdrawals.
The charge provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000 or twice the gain or loss, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Lisa A. Quinn, Special Agent in Charge of the U.S. Secret Service, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney David J. D’Addio of Ortiz’s Cybercrime Unit.
The details in the Information are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lynn Tax Preparer Sentenced for Federal Tax FraudRead the Press Release
BOSTON – A Lynn tax preparer was sentenced today in U.S. District Court in Boston for filing fraudulent personal federal tax returns and attempting to obstruct the Internal Revenue Service (IRS).
Arismendy Ramos, a/k/a Arismendi Ramos, a/k/a Aris Almonte, 42, was sentenced by U.S. District Court Judge Denise J. Casper to 18 months in prison, one year of supervised release and restitution of $171,951. In October 2015, Ramos pleaded guilty to an Information charging him with four counts of filing false tax returns and two counts of obstructing the IRS.
Ramos owned and operated Almonte Tax, a tax preparation service in Lynn, and personally prepared tax returns for numerous clients. From 2008 through 2013, Ramos filed false forms with the IRS claiming that he paid clients to work for him when in fact they had never been employed or paid by him. Ramos then claimed the bogus wages as business expenses on his own tax returns, thereby reducing his personal tax liabilities. Furthermore, Ramos instructed two clients that they should lie if they were asked about the false wages.
United States Attorney Carmen M. Ortiz and Kristina O’Connell, Acting 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 Victor A. Wild of Ortiz’s Economic Crimes Unit.
Undercover Operation Nets Owner and Bookkeeper of Major Commercial Fishing Business for Violating RegulationsRead the Press Release
BOSTON – The owner of one of the largest commercial fishing businesses in the northeastern United States and his bookkeeper were arrested today on charges of conspiracy and submitting falsified records to the federal government to evade federal fishing quotas. The charges arose out of an undercover investigation in which federal agents posed as organized crime figures interested in buying the fishing business.
Carlos A. Rafael, 64, and Debra Messier, 60, both of Dartmouth, were charged in a criminal complaint with submitting falsified records to the federal government and conspiracy. They are scheduled to appear in U.S. District Court in Boston at 3:30 p.m. today.
According to court documents, Rafael owns Carlos Seafood, Inc., in New Bedford, which is one of the largest commercial fishing businesses in the northeastern United States. The complaint alleges that for years, Rafael, with help from his bookkeeper, Messier, lied to federal authorities about the quantity and species of fish his boats caught, in order to evade federal quotas designed to guarantee the sustainability of certain fish species. After submitting false records to federal regulators to conceal the violation of quotas, Rafael sold the fish to a business in New York City in exchange for bags of cash.
According to court documents, beginning in June 2015, two undercover federal agents posing as organized crime figures had several meetings with Rafael to negotiate the purchase of his business. During those meetings, Rafael allegedly told the agents how he operated his business off-the-books by selling fish for cash. This culminated in a meeting at Rafael’s office in New Bedford in January 2016, during which Rafael and Messier allegedly explained, step by step, what they called “the dance”: the process by which Rafael and others coordinated with Rafael’s boat captains to falsify federal forms intended to track what was caught as well as forms designed to monitor the fish species purchased by Carlos Seafood. Rafael also allegedly told the undercover agents that, in his most recent dealings with the New York City buyer, he earned $668,000 in less than six months. Rafael allegedly smuggled some of the cash through Logan International Airport to Portugal.
The charge of submitting falsified records to the federal government provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000 fine. The charge of conspiracy provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Manny J. Muriel, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Rear Admiral Linda L. Fagan, Commander of the First Coast Guard District; Timothy Donovan, Acting Assistant Director of the National Oceanic and Atmospheric Administration, Office of Law Enforcement; Gregory K. Null, Special Agent in Charge of the Department of Homeland Security, Office of Inspector General, Philadelphia Field Office; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Andrew E. Lelling, of Ortiz’s Economic Crimes Unit, and David G. Tobin, 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.
To confidentially report illegal fisihing activity, contact the U.S. Coast Guard at 1 (844) 847-2431.
Four Men Plead Guilty to Multi-State Fraud Scheme to Obtain More Than $330,000 in New Cell PhonesRead the Press Release
BOSTON – Four men pleaded guilty 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.
Jimmy Phan, 29 of Boston; David Hul, 34 of North Arlington, NJ; Curtis Peebles, 26 of Boston and New York, NY; and Lee Tran, 29 of Waltham, pleaded guilty to wire fraud conspiracy. U.S. District Court Senior Judge Mark L. Wolf scheduled sentencing for May 23, 2016.
At today’s hearing, the defendants admitted that they 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 co-conspirators 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.
The charging statute provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. Phan, Hul, Peebles and Tran agreed to pay restitution and to forfeit proceeds from the offense and various items seized from Phan’s house in connection with his arrest. 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.
Co-defendants Kevin Johnson, 24, of New York, NY, and Khoa Doan, 32 of Manchester, NH, are currently slated to stand trial.
United States Attorney Carmen M. Ortiz; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Lisa Quinn, 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.
Topsfield Man Sentenced to Prison for Tax Evasion and Bankruptcy FraudRead the Press Release
BOSTON – A Topsfield man was sentenced today in connection with evading nearly $400,000 in federal income taxes and making false statements in bankruptcy filings.
Robert P. Bonefant, Jr., 58, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 15 months in prison, one year of supervised release and ordered to cooperate with the IRS to assess and pay his outstanding taxes. In September 2015, Bonefant pleaded guilty to two counts of tax evasion, three counts of filing a false tax return and three counts of bankruptcy fraud.
At the sentencing hearing, Judge Saris noted the need to deter others from evading their legal obligation to pay taxes. Judge Saris also pointed out that the loss caused by tax offenses like those committed by Bonefant is not suffered by the Internal Revenue Service, but instead by everyone who pays their taxes.
In 2008, the IRS assessed Bonefant $194,430 in taxes owed for 2004 and 2005. Bonefant then began to take steps to prevent the IRS from determining his entire income and actual tax liabilities. Those steps included depositing $1 million into his father’s bank accounts, including both taxable income and non-taxable business expense reimbursements, filing tax returns that failed to report significant income, and failing to file a return for 2010 when he had income of more than $250,000. In total, including the amounts assessed for 2004 and 2005 and the amounts owed for 2009 through 2012, Bonefant failed to pay approximately $389,030 in taxes.
In 2012, Bonefant filed for bankruptcy in Massachusetts seeking to discharge various debts, including the outstanding 2004 and 2005 federal tax liability. In documents filed with the Bankruptcy Court, Bonefant made false statements concerning his income and assets, as well as his use of his father’s bank accounts.
United States Attorney Carmen M. Ortiz; Manny J. Muriel, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The U.S. Trustee’s Office in Boston also provided assistance. The case was prosecuted by Assistant U.S. Attorney Mark J. Balthazard of Ortiz’s Economic Crimes Unit.
Massachusetts Company Pleads Guilty in Connection with Disadvantaged Business Enterprise FraudRead the Press Release
BOSTON – Transit Safety Management, Inc., a Georgetown, Mass. consulting company, pleaded guilty today to making a false statement in connection with its certification for favored contracting status.
Transit Safety Management, Inc. (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). U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for May 25, 2016.
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" (DBE). As a result, 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.
As part of its plea agreement, TSM has agreed to pay a fine of $84,000 and dissolve its operations.
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 is being prosecuted by Assistant U.S. Attorney Eugenia M. Carris of Ortiz’s Public Corruption Unit.
Cape Cod Dental Practice Settles Drug Diversion AllegationsRead the Press Release
BOSTON – The U.S. Attorney’s Office reached a $25,000 civil settlement with Dr. Richard Bravman, Dr. John Langston, and their Cape Cod dental practice, Bravman, Langston, and Associates, LLC in connection with the practice’s flawed recordkeeping of controlled substances.
According to court documents, the practice allegedly failed to conduct required inventories of controlled substances, to keep inventories of drugs on hand, to maintain dispensing records and invoices for drug transfers between practice locations, and to create order forms for controlled substances. The practice also allegedly failed to report a theft of a controlled substance to the DEA as it was required to do.
Upon learning of the violations at their practice, Drs. Bravman and Langston cooperated with the investigation. In consultation with the DEA, they have implemented new recordkeeping procedures to ensure compliance with regulations aimed at avoiding diversion of controlled substances from medical offices.
Drs. Bravman and Langston agreed to pay $25,000 to settle these claims and to permit the DEA to perform administrative inspections of the practice’s offices during the next three years without a warrant.
United States Attorney Carmen M. Ortiz and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. The case was handled by Assistant U.S. Attorney Kriss Basil of Ortiz’s Civil Division.
Brewster Man Convicted by Jury of Assaulting a Park Ranger on Cape Cod BeachRead the Press Release
BOSTON – Following a three-day trial, a federal jury in U.S. District Court in Boston convicted a Brewster man for assaulting a Park Ranger on a federally-protected beach in Eastham, Mass.
Donald L. Savage, 57, was convicted of assaulting a federal officer. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for May 26, 2016.
On June 6, 2015, Savage and his wife requested permission to park in a restricted lot at the 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.
The charge of assaulting a federal officer provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Leslie Reynolds, Chief Ranger of Cape Cod National Seashore; and Eastham Police Chief Edward Kulhawik, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit.
Easthampton Man Pleads Guilty to Federal Cocaine and Marijuana ChargesRead the Press Release
BOSTON – An Easthampton man pleaded guilty today in U.S. District Court in Worcester in connection with distributing cocaine and marijuana.
David Dulchinos, 50, pleaded guilty to one count each of distribution of cocaine and distribution of marijuana. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for May 24, 2016.
On Feb. 7, 2014, Dulchinos distributed controlled substances 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.
The charge of distribution of cocaine provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release and a fine of $1 million. The charge of distribution of marijuana provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; 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 is being prosecuted by Assistant U.S. Attorney Deepika Bains Shukla of Ortiz’s Springfield Branch Office.
Nebraska Man Sentenced for Counterfeit iPad Return ScamRead the Press Release
BOSTON – A Nebraska man was sentenced yesterday for his role in a conspiracy to purchase genuine Apple iPads from large retail stores, return counterfeit iPads for a full refund, and resell the genuine iPads for cash.
Ernesto Leyva, 27, of Lincoln, Nebraska, formerly of Miami, Florida, was sentenced by District of Nebraska Senior U.S. District Court Judge Richard G. Kopf to 15 months in prison, three years of supervised release and ordered to pay $27,745.33 in restitution.
Leyva was indicted in the District of Massachusetts in July 2015, and subsequently pleaded guilty in October 2015, to one count of conspiracy to traffic in counterfeit goods and transport stolen goods. Co-defendants, Yoan Sanchez Rodriguez, 26, formerly of Hialeah, Florida and Yulaisy Dominguez, 27, formerly of Hialeah, Florida, were also charged in the same conspiracy.
Between December 2012 and December 2013, Leyva engaged in a conspiracy to purchase genuine iPads from Walmart and Target and then return counterfeit iPads to the stores, for a full refund. He would then resell the genuine iPads. The scheme began shortly after Christmas in 2012 and was concentrated on Walmart stores in the Northeast (Massachusetts, New Jersey, New Hampshire, Maine, and Connecticut) between December 2012 and February 2013 and Target stores in Florida in July 2013. The total retail losses to both store chains were over $80,000.
Leyva was arrested in Nebraska in July 2015 and in October 2015 the case was transferred for a plea and sentencing from the District of Massachusetts to the District of Nebraska. Defendants Rodriguez and Dominguez, who are married, are fugitives.
Members of the public who have questions, concerns or information regarding this case or knowledge of the whereabouts of Rodriguez and Dominguez should call 617-748-3274, and messages will be promptly returned.
United States Attorney Carmen M. Ortiz and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. The U.S. Attorney’s Office also wishes to thank the United States Attorney’s Office for the District of Nebraska for the role they played in the resolution of the case. This case is being prosecuted by Assistant United States Attorney Amy Harman Burkart of Ortiz’s Cybercrime Unit and Assistant United States Attorney William W. Mickle, II from the District of Nebraska.
Chelsea Produce Distributor Sentenced for Filing False Insurance ClaimsRead the Press Release
BOSTON – A Chelsea produce distributor was sentenced in U.S. District Court today for defrauding his insurance companies by submitting bogus claims.
John S. “Yanni” Alphas, 56, of Weston was sentenced by U.S. District Judge Douglas P. Woodlock to 15 months in prison to be followed by three years of supervised release. He was ordered to pay $160,876 in restitution and a fine of $60,000. Alphas pleaded guilty to one count of wire fraud in August 2014.
Alphas is the president of The Alphas Company, a wholesale distributor of produce that operates out of the Chelsea Produce Market in Massachusetts. Between 2007 and 2011, Alphas submitted ten fraudulent insurance claims for produce shipments that he said had been lost en route, had been stolen, or had arrived spoiled, frozen, or in otherwise unusable condition. In most instances, however, Alphas had suffered no losses at all; his produce had arrived in usable condition. On the other occasions, Alphas inflated his actual losses, sometimes by tens of thousands of dollars.
In total, the Court found Alphas sought insurance payments that exceeded his actual losses by approximately $450,000. Of that amount, his insurers paid him approximately $178,000, although he had only suffered approximately $19,000 in legitimate losses on the relevant insurance claims.
When imposing sentence, the Court also took into account a separate false statement that Alphas made during the course of the sentencing proceedings. While proceedings were underway, Alphas submitted a license application to the United States Department of Agriculture in which he falsely certified that he had never been convicted of a felony in federal court. The Court found that this misrepresentation to a government agency merited an additional three months of incarceration beyond what the Court would have imposed for the underlying insurance fraud.
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. Assistance was provided by the Massachusetts Insurance Fraud Bureau. The case is being prosecuted by Brian A. Pérez-Daple of Ortiz’s Economic Crimes Unit.
Violent Drug Trafficker’s 1990 Life Sentence UpheldRead the Press Release
Today U.S. District Court Chief Judge Patti B. Saris reaffirmed the 1990 life sentence of Darryl Whiting who was a notorious and violent drug trafficker in Boston.
Whiting was originally sentenced to life in prison 1990 after being convicted of running a 100-person drug ring that netted him millions and terrorized the Orchard Park public housing development in Boston. An undercover agent and several of Whiting’s co-conspirators testified against him at trial, explaining that he preyed upon drug-addicted mothers, and viciously beat those who defied his orders. Whiting himself also testified at trial, telling the jury that he was a legitimate business man.
Recent changes to the federal sentencing guidelines made Whiting eligible for a greatly reduced sentence – unless the court found that he would pose a significant threat to public if released.
Significantly, Whiting, recently authored and published a lengthy and graphic novel in which the main character is released from prison on a technicality, launches a scaled-up version of his former criminal empire, finds and tortures to death the cooperating witnesses who testified at his trial, and advises criminal associates who plan to kill “rats” and display their bodies with cheese or a dime. Whiting claimed that his novel, which he published in 2013, was “purely fictional.”
The government challenged Whiting’s claim, pointing out to the court that the main character in Whiting’s book is named Darryl “God” Whiting, all the people in the book have the same names as all the people in the trial, and all the key historical events recounted in the book actually took place. The government argued that Whiting’s book was compelling evidence of his state of mind and his determination to seek violent revenge and resume a life of crime if released.
Members of the community, including residents of the Orchard Park community and state leaders submitted letters opposing any reduction for Whiting, whom they explained had severely diminished the quality of life in Boston and Roxbury, and whom they said has continued to instill fear in the community while incarcerated.
The Court found that Whiting poses such a serious threat to the community and those who cooperated against him that no relief under Amendment 782 is warranted – thus, the original life sentence is undisturbed.
Somerville Man Arrested in Miami After Fleeing Massachusetts and being Found on Boat off the Coast of CubaRead the Press Release
BOSTON – A Somerville man, who was charged yesterday for his role in orchestrating a disruptive computer attack on a local hospital’s network, was arrested in Miami this morning after having fled Massachusetts and being found in a small boat off the coast of Cuba. The man and his wife made a distress call, after their boat ran into trouble. A nearby Disney Cruise Ship responded to the distress call and rescued the couple.
Martin Gottesfeld, 31, had been aware of a federal investigation since October 2014, when the FBI searched his home in relation to a computer attack on the hospital network. Last week, the Somerville Police Department conducted a wellness check at the Gottesfeld’s apartment after receiving calls from his employer and from relatives concerned about his whereabouts. It is alleged that Mr. Gottesfeld had not been to work, nor had he or his wife had any contact with family members in several weeks. The police found no one home at his apartment.
On Tuesday, February 16th, the FBI in Boston was notified by their counterparts in the Bahamas that Gottesfeld and his wife were not registered guests on the ship, but rather had been picked up by the cruise ship near Cuba, following a distress call. Mr. Gottesfeld was arrested when the cruise ship returned to its Miami port this morning.
Gottesfeld was charged in a criminal complaint unsealed today in U.S. District Court in Boston with one count of conspiracy. According to the affidavit, the computer attack, which disrupted the hospital’s network for approximately a week, was launched in the name of hacking group Anonymous in an effort to affect the hospital’s handling of a teenage patient (“Patient A”), who was the subject of a high-profile custody battle between her parents and the Commonwealth of Massachusetts.
According to the complaint affidavit, the attack on the Massachusetts hospital was one of two attacks that Gottesfeld and others orchestrated.
On March 23, 2014, Gottesfeld allegedly posted a YouTube video calling, in the name of Anonymous, for action against the local hospital in response to its treatment of Patient A. The video, which was narrated by a computer-generated voice, stated that Anonymous “will punish all those held accountable and will not relent until [Patient A] is free.” The YouTube video directed viewers to a posting on the website pastebin.com that contained the information about the hospital’s server necessary to initiate an attack against that server.
It is further alleged that on April 19, 2014, the conspirators initiated an attack against the hospital server identified in the pastebin.com posting. That attack directed hostile traffic at the hospital’s network for at least seven days, disrupted that network, and took the hospital’s website out of service. The attack also disrupted the hospital’s day-to-day operations, as well as the research being done at the hospital.
The hospital had to re-allocate its resources in a significant way to ensure that patient care was not affected during this period. In an effort to ensure the attack did not compromise patient information, the hospital decided to shut down the portions of its network that communicated with the Internet and its e-mail servers. This effort successfully prevented the attackers from accessing any patient records or other internal hospital information. Responding to, and mitigating, the damage from this attack cost the hospital more than $300,000.
The charge of conspiracy provides for a sentence of no greater than five years in prison, three years of supervised release, a fine of $250,000 and restitution. 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 and Harold Shaw, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Field Division made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Adam Bookbinder and David D’Addio of Ortiz’s Cybercrime Unit.
The details contained in the criminal complaint affidavit are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Holyoke Gang Member Sentenced for Illegally Possessing A FirearmRead the Press Release
BOSTON – A member of the La Familia Gang, a national gang with a significant presence in Holyoke and Springfield, was sentenced yesterday in U.S. District Court in Springfield for possessing a firearm with an obliterated serial number while being a convicted felon.
Joshua Marrero, 28, of Holyoke, was sentenced by U.S. District Court Judge Timothy S. Hillman to 75 months in prison to be followed by three years of supervised release, a special assessment and forfeiture of the firearm and ammunition. In October 2015, Marrero pleaded guilty to the charges.
On April 19, 2014, Marrero possessed a Lorcin Model L 380 .380 caliber firearm with an obliterated serial number and seven rounds of .380 caliber ammunition. After being spotted with the firearm by law enforcement officers, Marrero ran into an alley in South Holyoke and was caught after he tripped. Marrero has an extensive violent criminal history, including a 2010 conviction of assault and battery on a police officer.
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 Holyoke Police Chief James M. Neiswanger made the announcement today. The case was prosecuted by Assistant U.S. Attorney Deepika Bains Shukla of Ortiz’s Springfield Branch Office.
Berlin Man Sentenced for Marijuana Trafficking, Money Laundering and Tax EvasionRead the Press Release
BOSTON - A Berlin man was sentenced today in federal court for conspiring to distribute more than 100 kilograms of marijuana, money laundering and tax evasion.
Eric W. Sliwa, age 35, was sentenced by U.S. District Judge Timothy S. Hillman to 78 months in prison to be followed by four years of supervised release. On October 7, 2015, Sliwa pleaded guilty to a 34-count indictment.
The defendant and others distributed large quantities of marijuana between 2001 and 2012. In June 2006, the defendant set up a company, EWS Gem Corp., for the purpose of concealing his drug proceeds and making it appear as though he had legitimate income. While the defendant filed personal tax returns for the tax years 2008 through 2010, he failed to report all of the proceeds from his drug trafficking business. During the time period of the conspiracy, the defendant lived a lavish lifestyle and purchased several assets including his home in Berlin, Mass., a condominium in Killington, Vt. and multiple luxury vehicles. At the time of his arrest, Sliwa possessed nearly $500,000 in cash as well as a coin and precious metal collection worth approximately $370,000 in a safe deposit box. As part of his plea agreement, Sliwa agreed to forfeit over $1,000,000 in cash, gold coins and luxury vehicles.
United States Attorney Carmen M. Ortiz; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Manny J. Muriel, Acting 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 Cory Flashner of Ortiz’s Worcester Branch Office.
U.S. Attorney Ortiz Announces Creation of Civil Rights UnitRead the Press Release
BOSTON – United States Attorney Carmen M. Ortiz announced today the creation of a Civil Rights Unit whose primary focus will be the civil enforcement of federal civil rights laws in Massachusetts. The new unit, which will operate within the office’s Civil Division, will also collaborate with local community members, advocacy groups and other federal and state agencies in the area of civil rights.
“As U.S. Attorney protecting the civil rights of the residents of Massachusetts has been a top priority,” said U.S. Attorney Ortiz. “We are committed to ensuring a level playing field for all residents in the Commonwealth, advancing equal opportunity, and educating the public about their rights and responsibilities. I can think of no better way to further this mission than by creating a unit comprised of attorneys and staff who are dedicated solely to enforcing and promoting federal civil rights.”
“U.S. Attorney Ortiz has demonstrated her office's firm commitment to vigorous and robust civil rights enforcement,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department's Civil Rights Division. “Institutionalizing this Civil Rights Unit will help enhance our shared mission to ensure equal opportunity and equal justice for all of the communities we serve.”
The Civil Rights Unit (CRU) is charged with enforcing federal civil rights statutes that protect the rights of the most vulnerable and underserved members of our community. The unit will focus on enforcing those laws that prohibit discrimination and harassment on the basis of race, national origin, gender, religion and disability; prohibit police misconduct; protect the constitutional rights of institutionalized persons; protect the employment rights of servicemembers; and prohibit discrimination in housing and mortgage lending. The unit will be led by Assistant U.S. Attorney Jennifer A. Serafyn.
Today, U.S. Attorney Ortiz hosted two civil rights-focused roundtables. The first focused on fair housing issues and included key stakeholders from state and local advocacy organizations. The second roundtable discussion, which featured Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, concentrated on community-police relations with law enforcement officials and representatives from faith-based institutions and organizations serving the community.
Since 2010, the U.S. Attorney’s Office has actively investigated and resolved civil rights cases involving disability discrimination, fair housing, fair lending, and Veterans’ rights, among others. Several recent examples of the Office’s civil rights work include:
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An agreement with the City of Somerville resolving discrimination against a service member who was disadvantaged in his employment with the City’s Fire Department because of his military service;
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An agreement with Sage Bank, headquartered in Lowell, for engaging in a pattern or practice of discrimination on the basis of race and national origin in the pricing of its residential mortgage loans;
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Issued a Letter of Findings in the investigation into Massachusetts Department of Children and Families for denying opportunities, benefits, and services to a 21-year-old single mother who has a developmental disability;
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Filed Statement of Interest in private lawsuit alleging that Springfield Public Schools discriminated against hundreds of children with mental health disabilities by segregating them in a separate school;
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An agreement with edX, an online course provider, over the accessibility of its website;
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Initiated an Americans with Disabilities Act (ADA) compliance review of restaurants in the Seaport and Fort Point sections of Boston and hotels in Copley Square;
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An agreement with the Town of Ware Police Department in a case involving effective communication for a deaf person at the police station;
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An agreement with Clarendon Hill Towers, a Somerville apartment building, for violating the fair housing rights of a couple and their three children; and
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An agreement with the owners of a North Attleboro apartment complex for discriminating against families with children.
In addition to the Office’s vigorous investigation and prosecution of civil rights matters, the Civil Rights Unit also has actively been reaching out to the community and providing training on civil rights matters. For example, the Office commemorated the 25th anniversary of the ADA by hosting a roundtable discussion with disability rights advocates and celebrated the 50th anniversary of the Voting Rights Act by hosting a panel discussion on emerging voting rights issues. In honor of Veterans’ Day, the Office hosted a training for employers on the Uniformed Services Employment and Reemployment Rights Act (USERRA), and U.S. Attorney Ortiz presided at a ceremony honoring the dozens of veterans and servicemembers who work in the Moakley Federal Courthouse.
The Civil Rights Enforcement Team which U.S. Attorney Ortiz created in June 2010 will maintain responsibility for investigating and prosecuting criminal civil rights violations such as hate crimes, damage to religious property, deprivation and conspiring to deprive constitutional rights and human trafficking, including involuntary servitude, forced labor, and sex trafficking of children. Assistant U.S. Attorney Ted Merritt will continue to oversee the work of the Team.
For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights. For more information on the Department of Justice’s civil rights effort, please visit www.justice.gov/crt.
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New Jersey Stock Promoter Identified in Undercover Operation Sentenced to PrisonRead the Press Release
BOSTON – A New Jersey stock promoter was sentenced today in U.S. District Court in Boston for his involvement in a scheme to artificially manipulate the stock price of Massachusetts-based company, Amogear Inc.
Michael Affa, 36, of Toms River, NJ, was sentenced by U.S. District Court Judge William G. Young to 33 months in prison and ordered to pay a fine of $1 million. In September 2015, Affa pleaded guilty to conspiracy, securities fraud, and wire fraud.
In 2013 and 2014, a federal undercover operation monitored in real-time, Affa’s participation in the scheme to manipulate the stock price of Amogear. In February 2014, the SEC suspended trading in the securities of Amogear as the attempted manipulation of its stock was underway. Prior to the suspension, Affa 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. Affa and his co-conspirators planned to sell the stock into the market at artificially inflated prices from which they would profit. What Affa did not know was that Amogear was controlled by the FBI and used to obtain evidence of their attempt to manipulate the market.
The 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 Special Assistant U.S. Attorneys Eric Forni and Andrew Palid of the Securities and Exchange Commission.
Disbarred Somerset Attorney Convicted of FraudRead the Press Release
BOSTON – A disbarred Somerset attorney was convicted by a federal jury yesterday on fraud charges arising out of his promotion of investments in a Fall River-based company.
John Silvia, 66, purportedly the “Managing Member” of Richardson Consulting, LLC, was convicted following an eight-day trial of eight counts of securities fraud.
Silvia purported to sell ownership interests in Advanced Space Monitor (ASM) that he was not entitled to sell. In furtherance of his fraud, Silvia created and used a fake “Subscription Agreement” that purportedly gave him the right to receive and sell shares in ASM when, in reality, he did not have the right to do so. The government presented evidence that Silvia cut and pasted the signature of ASM’s founder on the document purporting to give Silvia ownership interest in the company. Silvia defrauded multiple investors out of more than $300,000 based on false representations about his ability to sell the shares. Many of his victims were his friends and family members. Silvia, who was licensed to practice law in Massachusetts in 1975, has been disbarred since 2003.
The charge of securities fraud provides a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $5 million, or twice the gross loss to the victims, 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.
Seven additional counts of mail and wire fraud are still pending against Silvia based on fraud he is alleged to have perpetrated against additional victims. U.S. District Court Judge George A. O’Toole, Jr., who had severed the counts for a separate trial, scheduled a status conference for March 14, 2016. Silvia was acquitted at trial this week on two counts of wire fraud.
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 Massachusetts Securities Division, which filed an administrative action charging Silvia with violation of Massachusetts securities laws, referred this case to the U.S. Attorney’s Office and cooperated with the criminal investigation. The case is being prosecuted by Assistant U.S. Attorney Neil Gallagher of Ortiz’s Economic Crimes Unit and Eric Forni of the Securities and Exchange Commission who was appointed as a Special Assistant U.S. Attorney.
The City of Somerville Restores Reemployment Promotional Rights of Marine Corps ReservistRead the Press Release
BOSTON – The U.S. Attorney’s Office announced its settlement resolving claims that the City of Somerville violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) by failing to re-employ U.S. Marine Corps Reservist Sean Keane at the appropriate level of seniority following his multiple military deployments, including multiple tours in Afghanistan. USERRA protects the employment rights of service men and women returning to the civilian workforce after their military service. The law provides that returning service members must be restored to their civilian employment as if they had not been separated due to their military service. USERRA governs the reemployment process and prohibits employers from denying returning service members seniority or other employment rights or benefits due to their time away from the job while on military service.
Keane, a firefighter for the City of Somerville since 1989, was called to active duty military service from April 2, 2004 to September 25, 2013. Following his return, Keane took a lieutenant’s make-up promotional exam to replace the regular administration of the examination that he missed due to his deployment. Keane received the highest score on the test which placed him at the top of the promotional list, ahead of two firefighters who had previously been promoted in July 2013. When Keane was eventually promoted in October 2014, he requested that his promotion be effective as of July 2013, the date he would have been promoted had he not been away on military service. He was denied the July 2013 promotion date and, as a result, was deemed ineligible to take a make-up exam for a subsequent promotional opportunity, the captain’s position.
“Reservists who are called into active duty to serve their country make many sacrifices including time away from their jobs,” said United States Attorney Carmen M. Ortiz. “In applying USERRA’s protections, we seek to restore servicemembers to the promotions and pay they have rightfully earned. We are committed to ensuring that those who serve our country are not disadvantaged because of their military service, and are encouraged by the City’s swift action in fulfilling its legal obligations with respect to Mr. Keane.”
“The great sacrifice of Americans who serve in our Marine Corps should never be a detriment to their civilian careers,” said Acting Associate Attorney General Stuart Delery. “The Department of Justice is committed to protecting the rights of the men and women who serve in our Armed Forces and we will continue to hold employers who violate their rights accountable.”
“As a service member in Afghanistan, Sean Keane has served his country with admirable distinction, honor and integrity,” said Principal Deputy Assistant Attorney General Vanita Gupta for the Justice Department’s Civil Rights Division. “Courageous men and women like Lieutenant Keane, who answer America’s call to defend our freedom, deserve to reclaim their civilian jobs without undue impediment when they return home. We commend the state and local officials who worked cooperatively to resolve this claim under USERRA.”
Under the terms of the settlement agreement, the City of Somerville agree to pay more than $15,000 to Keane as back pay, and the Commonwealth will permit Keane to make-up the missed examination for promotion to captain. Based on his score, Keane will be as eligible for a promotion as others who took the examination on its initial schedule.
This case stems from a referral by the U.S. Department of Labor (DOL),following an investigation by the DOL’s Veterans’ Employment and Training Service (VETS), to the the U.S. Attorney’s Office for the District of Massachusetts and the Employment Litigation Section of the Department of Justice’s Civil Rights Division. The case was handled by Assistant U.S. Attorneys Jessica Driscoll and Jennifer Serafyn of Ortiz’s Civil Rights Unit, and Special Litigation Counsel Andrew Braniff and Trial Attorney Jeremy Monteiro of the Justice Department’s Civil Rights Division.
The protection of servicemembers’ rights is a priority for the U.S. Attorney’s Office. Additional information about USERRA can be found at www.usdoj.gov/crt/emp, www.servicemembers.gov and www.dol.gov/vets/programs/userra/main.htm.
Justice Department Settles Lawsuit Against the City of Somerville, Massachusetts, to Enforce the Employment Rights of a Marine Corps ReservistRead the Press Release
The Department of Justice today announced a settlement which is subject to District Court approval with the Commonwealth of Massachusetts and the City of Somerville, Massachusetts, resolving claims that the city violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) when it failed to re-employ U.S. Marine Corps Reservist Sean Keane at the level he should have been in following his multiple military deployments, including tours of duty to Afghanistan.
Keane, a firefighter for the city of Somerville since 1989, was called to active duty military service from April 2, 2004, to Sept. 25, 2013. Following his return from service, Keane took a lieutenant’s make-up promotional exam to replace the regular administration of the examination that he missed because of his military service. Keane received the highest score on the test, which placed him at the top of the promotional list, ahead of two firefighters who had already been promoted in July 2013. When Keane was eventually promoted in October 2014, he requested that his promotion be effective as of July 2013, the date he would have been promoted had he not been away on military service. He was denied the July 2013 promotion date and, as a result, was deemed ineligible to take a make-up exam for a captain’s position. Subject to certain limitations, USERRA requires that service members who leave their civilian jobs to serve in the military be reemployed by their civilian employers in the positions that they would have held if their employment had not been interrupted by military service. Under circumstances like those here, federal law also requires that a servicemember be reemployed in a position of comparable seniority, pay and status so that no opportunities for advancement or promotion are adversely affected by military service.
“The great sacrifice of Americans who serve in our Marine Corps should never be a detriment to their civilian careers,” said Acting Associate Attorney General Stuart Delery. “The Department of Justice is committed to protecting the rights of the men and women who serve in our Armed Forces and we will continue to hold employers who violate their rights accountable.”
“As a service member in Afghanistan, Sean Keane has served his country with admirable distinction, honor and integrity,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Courageous men and women like Lieutenant Keane, who answer America’s call to defend our freedom, deserve to reclaim their civilian jobs without undue impediment when they return home. We commend the state and local officials who worked cooperatively to resolve this claim under USERRA.”
“Reservists who are called into active duty to serve their country make many sacrifices including time away from their jobs,” said U.S. Attorney Carmen M. Ortiz of the District of Massachusetts. “In applying USERRA’s protections, we seek to restore servicemembers to the promotions and pay they have rightfully earned. We are committed to ensuring that those who serve our country are not disadvantaged because of their military service, and are encouraged by the City’s prompt action in fulfilling its legal obligations with respect to Mr. Keane.”
Under the terms of the settlement agreement, the city agreed to pay more than $15,000 as back pay. The agreement also provides that Keane will be permitted to make-up a missed examination for promotion to captain. Based on his score, Keane will be as eligible for a promotion as others who took the examination on its regular schedule.
This case stems from a referral by the U.S. Department of Labor (DOL), following an investigation by the DOL’s Veterans’ Employment and Training Service. The case is being handled by the Employment Litigation Section of the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office of the District of Massachusetts, who work collaboratively with the DOL to protect the jobs and benefits of Reserve and National Guard servicemembers upon their return to civilian life.
The case was handled by Assistant U.S. Attorneys Jessica Driscoll and Jennifer Serafyn of the District of Massachusetts, along with Special Litigation Counsel Andrew Braniff and Trial Attorneys Jeremy Monteiro and Taryn Null of the Civil Rights Division’s Employment Litigation Section.
The Justice Department’s Civil Rights Division has given a high priority to the enforcement of service members’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at www.usdoj.gov/crt/emp and www.servicemembers.gov, as well as on the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm.
Somerville Complaint
Somerville Stipulation and Settlement
Springfield Man Sentenced to Ten Years in Prison for Child Exploitation ChargeRead the Press Release
BOSTON – Daniel Lorenz, 45, was sentenced today in U.S. District Court in Springfield to 10 years in prison. In November 2015, Lorenz pleaded guilty before U.S. District Court Judge William G. Young to one count of possession of material involving the sexual exploitation of minors.
On March 13, 2014, federal agents executed a search warrant at Lorenz’s Springfield residence. Pursuant to the search warrant, agents seized Lorenz’s personal computer and found 800 videos of child pornography, including many depicting the rape, bondage, and sexual torture of girls as young as three years old.
At the time of the search, Lorenz d told agents that he had a large quantity of child pornography, including image and video files, on his computer and that most of the files depicted girls between the ages of eight and fourteen. Lorenz admitted that he had collected child pornography for at least three or four years and distributed or received child pornography three times per week using e-mail accounts. Lorenz also admitted that he created and utilized multiple social media accounts, including various Facebook and Google+ profiles in the name and image of a minor female, in order to make contact with girls to obtain child pornography and to engage in sexually explicit conversations, which he found “sexually and emotionally exciting.”
At sentencing, Judge Young told the defendant, “you were active in trying to turn this fantasy into reality,” and stated that the defendant’s misconduct “reveals to the Court a most dangerous situation.”
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. Assistance was also provided by the Springfield Police Department. The case is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz's Springfield Branch Office.
Southbridge Man Sentenced for being a Felon in Possession of Firearms and AmmunitionRead the Press Release
BOSTON – A Southbridge man was sentenced today in U.S. District court in Worcester for being a felon in possession of firearms and ammunition.
Mark McForbes, aka “S-Dot,” 33, was sentenced to 15 years in prison and three years of supervised release. In July 2015, McForbes was convicted of being a felon in possession of firearms and ammunition following an eight-day jury trial.
On Aug. 29, 2014, McForbes negotiated the sale of firearms and ammunition in Southbridge to a cooperating witness. McForbes told the cooperating witness that the firearms and ammunition were located in Worcester, where they arranged to meet for the sale. Later that day, McForbes sold two loaded 9mm firearms to the cooperating witness in the basement of a Worcester residence. One of the firearms had been stolen, and the other had an obliterated serial number. McForbes qualifies under federal law as an armed career criminal based upon his prior criminal convictions.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and Southbridge Police Chief Shane Woodson, made the announcement today. The Federal Bureau of Investigation, the U.S. Marshals Service and the Worcester Police Department also assisted with the investigation. The case was prosecuted by Assistant U.S. Attorneys Greg A. Friedholm and Michelle L. Dineen Jerrett of Ortiz’s Worcester Branch Office.
Former Holyoke Man Sentenced for Benefit FraudRead the Press Release
BOSTON – A former Holyoke man was sentenced yesterday in U.S. District Court in Springfield for fraudulently using another person’s identity to obtain governmental benefits.
Eddie Saez, 56, was sentenced by U.S. District Court Judge Mark G. Mastroianni to two years in prison, three years of supervised release and ordered to pay restitution of $76,288 to the Social Security Administration, $83,865 to the Commonwealth of Massachusetts, Executive Office of Health and Human Services, and $20,573 to the Commonwealth of Massachusetts, Department of Unemployment Assistance. In November 2015, Saez pleaded guilty to three counts of false use of a social security number.
Saez used another individual’s name and Social Security number to obtain Social Security benefits, payments under the MassHealth Personal Care Attendant (PCA) program, and unemployment compensation. In addition to receiving Social Security benefits under a false identity, Saez manipulated the PCA program by paying himself under his real name, and by claiming to perform services to himself under his false identity. When the PCA services where terminated, Saez obtained unemployment benefits in his real name.
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; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General, Office of Investigations; and Cheryl Garcia, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, New York Region, made the announcement. The case was prosecuted by Assistant U.S. Attorney Karen L. Goodwin of Ortiz’s Springfield Office.
Federal Judge Finds Ironworkers’ Pension Plan Violates Rights of Returning VeteransRead the Press Release
BOSTON – A federal judge in Boston ruled on Monday, Feb. 1, 2016, that the Iron Workers violate the rights of servicemembers by failing to give them credit for time serving on active duty oversees.
In October 2013, U.S. Attorney Carmen M. Ortiz’s Office filed a civil rights complaint alleging that the Iron Workers violated USERRA (Uniformed Services Employment and Reemployment Rights Act of 1994) by failing to credit U.S. Navy Reserve Member Thomas Shea, a member of the International Association of Bridge, Structural, Ornamental and Reinforcing Iron Workers, Local 7, with service time while he was serving multiple tours of duty in the armed forces in Iraq, Afghanistan (twice), Bahrain, and Kuwait. On Monday, U.S. District Court Judge Nathaniel M. Gorton denied the Iron Worker’s motion for summary judgment, which essentially sought to have the case dismissed, and granted portions of the government’s summary judgment motion.
The Court issued a 28-page decision finding that the Iron Workers’ Pension Plan violates USERRA because it places requirements on servicemembers that are not placed on non-servicemembers. The Court also scheduled several issues related to Shea’s specific claims for trial, including whether Shea properly applied for reemployment following each of his five deployments to Iraq, Afghanistan (twice), Bahrain, and Kuwait. The trial is scheduled for April 25, 2016. Shea remains on active military duty and is currently deployed overseas.
USERRA requires that servicemembers who leave their civilian jobs to serve in the military be treated as not having incurred a break in service with regard to their pension plans and other employment benefits. USERRA further provides that each period served by a servicemember shall, upon reemployment, be deemed to constitute service with the employer maintaining the plan for the purpose of determining the non-forfeitability of the person's accrued benefits and the accrual of benefits under the plan.
The government has alleged that the Iron Workers violated USERRA by refusing to grant Shea pension credits that he earned while on military duty unless and until he (1) worked at least 300 hours in the one-year period following his discharge from the military; and (2) accrued 2.5 pension credits, which is equal to 3,000 hours, in the subsequent five-year period following his release from active duty. Both of these requirements exceed the requirements placed on other members of the pension fund who do not take military leave. The Court found that these requirements violate USERRA. The complaint seeks to have the Iron Workers credit Shea with pension credits he earned while on active military duty and back payment of annuity contributions that were not made while Shea was on active duty.
United States Attorney Carmen M. Ortiz and Delora Kennebrew, Chief of the Employment Litigation Section of the Justice Department’s Civil Rights Division, made the announcement today. The case was investigated by the U.S. Department of Labor’s Veterans Employment and Training Service with the assistance of the Department of Labor’s Office of Regional Solicitor. This case is being handled by Assistant U.S. Attorney Jennifer Serafyn of Ortiz’s Civil Rights Unit and Andrew Braniff, Assistant Director of the Servicemembers and Veterans Initiative of the Justice Department’s Civil Rights Division and Attorney Nadia Said of the Justice Department’s Civil Rights Division, Employment Section.
The protection of servicemembers’ rights is a priority for the U.S. Attorney’s Office. Additional information about USERRA can be found at www.usdoj.gov/crt/emp, www.servicemembers.gov and www.dol.gov/vets/programs/userra/main.htm.
New York Man Charged with Selling Luxury Counterfeit Goods at the Marshfield FairRead the Press Release
BOSTON – A New York City man was charged today in U.S. District Court in Boston for selling counterfeit goods bearing luxury trademarks at the Marshfield Fair.
Xian Chen Chen, 39, was charged in an Information with introducing imported merchandise by means of false statements and practices. The Information alleges that in summer 2013, Chen Chen sold goods fraudulently bearing the trademarks of Armani, Beats by Dr. Dre, Burberry, Bvlgari, Chanel, Christian Dior, Coach, Dolce Gabbana, Dooney & Bourke, Ed Hardy, Fendi, Gucci, Hello Kitty, Jimmy Choo, Juicy Couture, Louis Vuitton, Marc Jacobs, Michael Kors, Oakley, Prada, Ray Ban, The North Face, Tiffany & Co., Tory Burch, and Versace.
The charge provides for a sentence of no greater than two years in prison, three years of supervised release and a fine of $250,000 or twice the gain or loss, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Amy Harman Burkart of Ortiz’s Cybercrime Unit.
The details in the Information are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Connecticut Man Pleads Guilty to Drug Possession After High-Speed PursuitRead the Press Release
BOSTON – Tyvonne Gooden, 25, of Manchester, Conn. pleaded guilty today to possession with intent to distribute heroin and cocaine. U.S. District Judge Mark G. Mastroianni scheduled sentencing for Aug. 17 2016.
On March 20, 2014, Gooden was in possession of 190 bags of heroin and two bags of cocaine after he was caught in Greenfield, Mass. by law enforcement officers following an hours-long chase. The chase began when Gooden sped away from a Massachusetts State Trooper after being pulled over on the highway for a traffic violation.
The charges of possession with intent to distribute heroin and cocaine each provide a sentence of no greater than 20 years in prison, three to five years of supervised release and a fine of $1 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz 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 Deepika Bains Shukla of Ortiz’s Springfield Branch Office.
Bulger Companion Pleads Guilty to Criminal Contempt ChargeRead the Press Release
BOSTON – Catherine Greig, the longtime companion of convicted killer James “Whitey” Bulger, pleaded guilty today in U.S. District Court in Boston in connection with her refusal to testify before a federal grand jury. The investigation centered on whether others assisted her and Bulger during the 16 years they were fugitives from justice.
Ms. Greig, 64, pleaded guilty to one count of criminal contempt. U.S. District Court Judge F. Dennis Saylor, IV scheduled sentencing for April 28, 2016.
Greig is currently serving an eight year sentence for her 2012 conviction of identity fraud and harboring James J. Bulger.
The charge of criminal contempt provides for a sentence or no greater than life in prison to be served subsequent to her current eight-year prison sentence and a fine. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Mary B. Murrane of Ortiz’s Major Crimes Unit.
Worcester Nurse Sentenced for Stealing Oxycodone from PatientsRead the Press Release
BOSTON – A nurse was sentenced on Friday, Jan. 29, 2016, in U.S. District Court in Worcester for stealing pain medication from patients in a nursing care facility in Worcester.
Joanna Dacri, 34, of Auburn, Mass., was sentenced by U.S. District Court Judge Timothy S. Hillman to three years of probation, the first six months of which is to be served in home detention. In Novebmer 2015, Dacri pleaded guilty to one count of acquiring and obtaining Oxycodone by deception.
“Healthcare professionals stealing opioids to feed an addiction pose a compound threat to patients,” said United States Attorney Carmen M. Ortiz. “Not only are they denying patients of necessary pain management, but they are often ‘caring’ for patients while under the influence of narcotics.”
From February to June 2014, Dacri was a nurse at a Worcester nursing care facility. During that period, she stole numerous Oxycodone tablets prescribed to three patients, and surreptitiously substituted other, similar-looking tablets, specifically Loratadine (antihistamine) tablets and Mirtazapine (antidepressant) tablets, in place of the Oxycodone tablets.
This case is being prosecuted as part of the federal response to the growing opioid epidemic in Massachusetts. National health data reveals that two-thirds of heroin addicts start their opioid addition with the unlawful use of prescription painkillers such as oxycodone.
United States Attorney Carmen M. Ortiz; Spencer Morrison, Acting Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Commissioner Monica Bharel, M.D., M.P.H, of Massachusetts Department of Health, made the announcement. The case was prosecuted by Assistant U.S. Attorney Young Paik of Ortiz’s Health Care Fraud Unit.
Springfield Man Pleads Guilty to Illegally Operating Unsafe Interstate Van ServiceRead the Press Release
BOSTON –Wilking A. Mateo Santana, 36, of Springfield, pleaded guilty on Friday, Jan. 29, 2016, to 12 counts of illegally operating a transportation service in violation of federal motor carrier safety laws. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for May 4, 2016.
Santana operated a van service between Springfield and New York City under the names of Santana Xpress, Inc. and Santana Busline. The Federal Motor Carrier Safety Administration ordered Santana to stop operating the transportation service after inspections uncovered numerous safety violations; however, Santana continued to operate the van service.
The charge provides a sentence of no greater than one year in prison, one year of supervised release and a fine of $25,000 on each count. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Todd A. Damiani, Special Agent in Charge of the New England Region of the Department of Transportation Office of Inspector General, made the announcement today. The case is being prosecution by Assistant U.S. Attorney Karen L. Goodwin of Ortiz’s Springfield Branch Office.
Peabody Man Sentenced for Trafficking Heroin and FentanylRead the Press Release
BOSTON – Jorge Delgado, a/k/a Antonio Martinez, a/k/a Elisaul Martinez Santana, 28, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 33 months in prison and three years of supervised release. In October 2015, Delgado pleaded guilty to one count of conspiracy to distribute heroin and fentanyl and three counts of distribution of heroin.
Delgado was the leader of a drug ring responsible for distributing heroin and fentanyl in the Salem and Peabody area. Delgado received orders for heroin from customers via cellphone and often sent couriers, two of whom were charged as co-defendants, to distribute drugs for him. Delgado’s drug ring not only distributed heroin but also distributed fentanyl in place of heroin on numerous occasions.
Delgado’s co-defendants, Juanel Pena and Thomas Martinez-Ortiz, pleaded guilty and were sentenced to 21 months and time served of 53 days in prison, respectively.
This case was brought as part of the federal response to the growing opioid abuse epidemic in Massachusetts and other New England states. A recent surge in overdose deaths has been attributed in part to the addition of fentanyl to heroin, creating a toxic mixture substantially more potent, and more dangerous, than heroin alone.
United States Attorney Carmen M. Ortiz; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Salem Police Chief Mary Butler; and Peabody Police Chief Thomas M. Griffin, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Young Paik of Ortiz’s Criminal Division.
Postal Worker Pleads Guilty to Stealing $68,000 in Sports Trading CardsRead the Press Release
BOSTON – A Dorchester woman pleaded guilty today in U.S. District Court in Boston to stealing 23 sports trading cards valued at $68,668 from the U.S. Mail while working as a clerk at the U.S. Post Office in Jamaica Plain.
Venecia McLaren, 30, pleaded guilty to one count of theft of mail by a postal service employee. U.S. District Court Senior Judge Mark L. Wolf scheduled sentencing for April 25, 2016.
On Jan. 21, 2015, McLaren stole a Priority Express Mail package containing sports trading cards from the Post Office in Roxbury. McLaren then gave her sister, Ophelia McLaren, from Queens, N.Y., a portion of the stolen cards to sell with the understanding that the two would share the proceeds. McLaren and her sister then posted some of the stolen cards for sale online. In late March and early April 2015, McLaren sold nine of the cards to a good faith purchaser. Around that same time, federal agents established undercover web-based accounts to communicate with Venecia McLaren and her sister. On April 9, 2015, after communicating with agents, McLaren sold three of the cards to an undercover agent in Boston and offered to sell a fourth. She was placed under arrest. On that same date, McLaren’s sister and brother, Lennica McLaren, were arrested after they attempted to sell four of the stolen trading cards to an undercover agent in New York.
Ophelia and Lennica McLaren have since pleaded guilty to larceny charges in Queens County Criminal Court, New York.
The charge of mail theft by a postal employee provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000 and restitution.Actual sentences for federal crimes are typically less than the maximum penalties.Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Eileen Neff, Special Agent in Charge of the U.S. Postal Service, Office of the Inspector General, Northeast Area Field Office; and Boston Police Commissioner William Evans, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney William F. Bloomer of Ortiz’s Major Crimes Unit.
Nashua Felon Arrested in New Fraud SchemeRead the Press Release
BOSTON – A Nashua man was arrested yesterday in connection with defrauding investors in a purported water resource company and laundering money obtained through various online fraud schemes.
Edmond P. LaFrance, 70, was charged in a complaint with wire fraud and money laundering. LaFrance was convicted in federal court in 1990 of structuring currency transactions, making false statements and conspiracy to defraud the United States and a second time in 2007 of wire fraud and making false statements.
The criminal complaint alleges that from 2012 to 2013, LaFrance solicited investments and loans for a shell company he created – Natural Waters – that fraudulently claimed to buy and sell mineral water in bulk. In fact, there were no mineral water sales and a large portion of the investor money LaFrance received for Natural Waters was directed to his own uses or transferred to co-conspirators. The complaint further alleges that around 2015, LaFrance laundered money for various online fraud schemes being perpetrated by individuals located primarily outside of the United States. LaFrance allegedly accepted hundreds of thousands of dollars from victims he did not know, and with whom he had no business relationship, and wired the money to third parties whose true identities were concealed from the victims.
The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 and restitution. The charge of money laundering provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $500,000 and restitution. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Stephen P. Heymann of Ortiz’s Economic 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.
Former Owner of Malden Chiropractic Practice Sentenced for Federal Tax FraudRead the Press Release
BOSTON – A former owner of a Malden chiropractic practice was sentenced in U.S. District Court in Boston today to filing fraudulent personal federal tax returns and attempting to obstruct the IRS.
Paul E. Jondle, 61, of Salem, N.H., was sentenced by U.S. District Court Judge Nathaniel M. Gorton to one year and one day in prison, two years of supervised release, and ordered to pay $202,270 in restitution. In October 2015, Jondle pleaded guilty to three counts of tax evasion and one count of obstructing the IRS.
Jondle operated a Malden chiropractic practice called Future Health. Jondle, who was barred from working as a chiropractor, used the names and tax identification numbers of licensed chiropractors working at Future Health for billing purposes, causing the insurance company payors to report the payments to the Internal Revenue Service as income to Jondle’s subcontractors. In fact, the payments, mailed to Jondle and deposited into bank accounts that he controlled, were income to Jondle. From 2003 through 2007, Jondle deposited approximately $3 million into his bank accounts, yet he reported no taxable income for those years, and paid no federal income taxes. During those years, Jondle spent hundreds of thousands of dollars on personal expenses including mortgage payments on his home, landscaping, tuition payments and pet spas.
United States Attorney Carmen M. Ortiz and Kristina O’Connell, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistance was provided by the Massachusetts Insurance Fraud Bureau, U.S. Postal Inspection Service and the U.S. Social Security Administration, Office of the Inspector General. The case is being prosecuted by Assistant U.S. Attorneys Lori J. Holik and Rachel Y. Hemani of Ortiz’s Major Crimes Unit and Trial Attorney Jason M. Scheff of the Department of Justice’s Tax Division.
Fifty-Six Ms-13 Members IndictedRead the Press Release
BOSTON – Fifty-six alleged leaders, members, and associates of the criminal organization “La Mara Salvatrucha,” or “MS-13,” have been indicted on federal racketeering conspiracy charges, including charges related to murder, conspiracy to commit murder, attempted murder, and drug trafficking. Various defendants are also charged with drug trafficking, firearm violations, immigration offenses, and fraudulent document charges.
This morning, over 400 federal, state and local law enforcement officers carried out the arrests of the numerous MS-13 leaders, members, and associates in the Boston area, including in the cities of Chelsea, East Boston, Everett, Lynn, Revere and Somerville. Fifteen of the indicted defendants were already in custody on federal, state or immigration charges.
According to court documents, in 2012, MS-13 became the first, and remains the only, street gang to be designated by the United States government as a “transnational criminal organization.” Today, MS-13 is one of the largest criminal organizations in the United States, and is an international criminal organization with over 6,000 members in the United States, with a presence in at least forty-six states and the District of Columbia, as well as over 30,000 members internationally, mostly in El Salvador, Mexico, Honduras, and Guatemala. In Massachusetts, MS-13 is largely composed of immigrants and descendants of immigrants from El Salvador and has members operating throughout the Commonwealth, with higher concentrations in Chelsea, East Boston, Everett, Lynn, Revere, and Somerville.
Violence is a central tenet of MS-13, as evidenced by its core motto -- “mata, viola, controla,” translated as, “kill, rape, control.” During the course of this investigation, this violence was directed against rival gangs, particularly the 18th Street gang, and anyone who was perceived to have disrespected MS-13. The 18th Street gang, another criminal organization in Central America with members living in the United States, has been a longstanding rival of MS-13. MS-13 members and associates often commit murders and attempted murders using machetes, knives, and chains in order to intimidate rival gang members.
During the course of this investigation, it is alleged that MS-13 actively recruited prospective members, known as “paros,” inside local high schools from communities with significant immigrant populations from Central America, including Chelsea High School, East Boston High School and Everett High School. Prospective members were typically 14 or 15 years old. Under the strict rules of MS-13, as communicated to the local “cliques” by the leaders of MS-13 in El Salvador, these prospective members must engage in significant violent criminal activity on behalf of the criminal organization, usually the killing of a rival gang member, in order to become a full-fledged member of MS-13, known as a “homeboy.” The indictment alleges that several of the defendants are responsible for the murders of at least five people since 2014, in Chelsea and East Boston, as well as the attempted murder of at least 14 people.
The indictment further alleges that members of the MS-13 organization in Massachusetts sell cocaine, heroin, and marijuana, and commit robberies, in order to generate income to pay monthly dues to the incarcerated leadership of MS-13 in El Salvador. This money is allegedly used to pay for weapons, cell phones, shoes, food, and other supplies for MS-13 members in and out of jail in El Salvador.
The RICO conspiracy charge provides a maximum sentence of 20 years, or life if the violation is based on racketeering activity for which the maximum penalty includes life imprisonment; three years of supervised release; and a fine of $250,000. Depending on the drug quantity, the drug trafficking conspiracy and distribution charges provide a maximum sentence of 20 years, 40 years, or life; a minimum of three, four or five years of supervised release; and fines of $1 million, $5 million and $10 million. The charge of possession of a firearm in furtherance of a drug trafficking crime provides a maximum sentence of five or seven years on and after any other sentence depending on how the firearm was used. The charge of being an alien in possession of a firearm and ammunition provides a maximum sentence of 10 years, three years of supervised release, and a fine of $250,000. The charge of illegal re-entry of a deported alien provides a maximum sentence of 10 years, three years of supervised release, and a $250,000 fine. The transfer of false identification document charge provides a maximum sentence of 15 years, three years of supervised release, and a fine of $250,000. The purchase of a fraudulent social security card charge provides a maximum sentence of five years, three years of supervised release, and a fine of $250,000.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police made the announcement today.
The U.S. Attorney’s Office would also like to acknowledge the FBI’s North Shore Gang Task Force and the assistance and cooperation of Daniel F. Conley, Suffolk County District Attorney; Marian T. Ryan, Middlesex County District Attorney; Jonathan Blodgett, Essex County District Attorney; Boston Police Commissioner William Evans; Chief Brian A. Kyes of the Chelsea Police Department; Chief Steven A. Mazzie of the Everett Police Department; Chief Kevin Coppinger of the Lynn Police Department; Chief Joseph Cafarelli of the Revere Police Department; Chief James Fitzpatrick of the Lawrence Police Department; Chief David Fallon of the Somerville Police Department; Commissioner Carol Higgins O’Brien of the Massachusetts Department of Corrections; Sheriff Frank G. Cousins, Jr. of the Essex County Sheriff’s Department; and Sheriff Steven W. Tompkins of the Suffolk County Sheriff’s Department.
The details contained in the indictments are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Addendum A
The following defendants are charged with one count of racketeering influenced corrupt organization (RICO) conspiracy:
1. Oscar Noe Recinos-Garcia, a/k/a “Psycho,” 22, of Somerville
2. Juilo Esau Avalos-Alvarado, a/k/a “Violento,” 23, of Chelsea
3. German Hernandez-Escobar, a/k/a “Terible,” 28, of Medford
4. Noe Salvador Perez-Vasquez, a/k/a “Crazy,” 25, of Somerville
5. Santos Portillo-Andrade, a/k/a “Flaco,” 31, of Everett
6. Herzzon Sandoval, a/k/a “Casper,” 34, of Cambridge
7. Edwin Guzman, a/k/a “Playa,” 30, of East Boston
8. Jose Hernandez-Miguel, a/k/a “Muerto,” 27, of East Boston
9. Edgar Pleitez, a/k/a “Cadejo,” 26, of East Boston
10. Christian Alvarado, a/k/a “Catracho,” 26, of Everett
11. Cesar Martinez, a/k/a “Cheche,” 35, of East Boston
13. Fnu Lnu, a/k/a “Caballo,” of Everett
14. Erick Argueta Larios, a/k/a “Lobo,” 31, of Cambridge
15. Luis Solis-Vasquez, a/k/a “Brujo,” 25, of Everett
16. Jose Miguel-Hernandez, a/k/a “Smiley,” a/k/a ”Danger,” 20, of Somerville (Deported)
17. Carlos Melara, a/k/a “Chuchito,” a/k/a “Criminal,”19, of East Boston
18. Joel Martinez, a/k/a “Animal,” 20, of East Boston
19. Jose Rene Andrade, a/k/a “Triste, a/k/a “Innocente,” 24, of Somerville
20. Hector Enamorado, a/k/a “Vida Loca,” 37, of Chelsea
21. Henry Santos-Gomez, a/k/a “Renegado,” a/k/a ”Pino,” 30, of Revere
22. Rafael Leoner-Aguirre, a/k/a “Tremendo,” 20, of Chelsea
23. Hector Ramires, a/k/a “Cuervo,” 22, of Chelsea
24. Daniel Menjivar, a/k/a “Rocoa,” a/k/a ”Sitiko,” 19, of Chelsea
25. Angel Pineda, a/k/a “Bravo,” a/k/a “Jose Lopez,” 20, of Chelsea
26. Jose Vasquez, a/k/a “Little Crazy,” 22, of Somerville
27. David Lopez, a/k/a “Cilindro,” a/k/a ”Villano,” of New Jersey
28. Bryan Galicia-Barillas, a/k/a “Chucky,” 18, of Chelsea
29. Domingo Tizol, a/k/a “Chapin,” 21, of Chelsea
30. Fnu Lnu, a/k/a “Violento,” of Arizona
31. Oscar Duran, a/k/a “Demente,” 24, of East Boston
32. Edwin Gonzalez, a/k/a “Sangriento,” 20, of East Boston
33. Henry Josue Parada Martinez, a/k/a “Street Danger,” 20, of East Boston
34. Josue Morales, a/k/a “Gallito,” 20, of Chelsea
35. Kevin Ayala, a/k/a “Blancito,” 22, of Chelsea
36. Mario Aguilar Ramos, 19, of Somerville
37. Rutilio Portillo, a/k/a “Pantera,” 32, of Everett
38. Edwin Diaz, a/k/a “Demente,” 18, of East Boston
39. Marvin Melgar, a/k/a “Ninja” 21, of Chelsea
40. Jairo Perez, a/k/a “Seco”, 24, of Chelsea
56. Jose Adan Martinez Castro, a/k/a “Chucky”, 26, of Richmond, VA
Addendum B
The following defendants are charged with drug trafficking conspiracy:
41. Ramiro Guerra, a/k/a “Camello,” 42, of East Boston
42. Manuel Martinez, a/k/a “Gordo,” 44, East Boston or Stoneham
43. Alex Alvarenga, 42, of Saugus
44. Manuel Flores, a/k/a “Manny”, 41, of East Boston
45. Heiner Yovani Gomez, a/k/a “Fiero,” 31, of Chelsea
46. FNU LNU, a/k/a “The Columbian”
47. Carlos Lovato, 32, of Chelsea
48. FNU LNU, a/k/a “Migue”
49. Luis Lnu
Addendum C
The following defendants have been charged with immigration violations and/or fraudulent document charges;
50. Jose Nelsin Reyes-Velasquez, a/k/a “Diablito”, 22, of Malden
51. Oscar Rivera, a/k/a “Jose”, 27, of Chelsea
52. Roberto A. Lopez, of Chelsea
53. Franklin Rodriguez, a/k/a “Hollywood”, 35, of Chelsea
54. Oscar Ramirez-Cornejo, a/k/a “Vago”,
55. Mauricio Sanchez, a/k/a “Tigre”
57. Elenilson Gustavo Gonzalez-Gonzalez, a/k/a “Siniestro”
Boston Police Detective Sentenced for Conspiracy to Obstruct a Gang InvestigationRead the Press Release
BOSTON – A Boston Police detective was sentenced today in connection with a conspiracy to obstruct an FBI investigation related to the Academy Homes Street Gang (AHSG), a violent narcotics trafficking gang that operated out of the Academy Homes housing development in Roxbury.
Brian Smigielski, 43, of Norton, was sentenced by U.S. District Court Judge Denise J. Casper to one year of probation and a fine of $5,000. In September 2015, Smigielski pleaded guilty to one count of conspiracy to defraud the United States during the course of a federal investigation.
From early 2009 to 2011, the FBI and Boston Police Department (BPD) were conducting a joint investigation into AHSG. During the initial stages of that investigation Smigielski was the lead investigator. In late 2009, Smigielski, became upset after being ordered to turn over the investigation to the FBI and other BPD units, and thereafter, in 2010 and 2011, conspired with a fellow BPD officer and AHSG gang members to impede the FBI in its investigation of AHSG. Smigielski assisted the AHSG gang members by, among other things, informing the gang members of the FBI’s pending investigation and warning them that their arrests were imminent.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Superintendent Frank Mancini of the Boston Police Department’s Anti-Corruption Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Dustin Chao of Ortiz’s Public Corruption and Special Prosecutions Unit.
Rhode Island Woman Pleads Guilty to $800,000 Immigration ScamRead the Press Release
BOSTON – A Woonsocket woman pleaded guilty today in U.S. District Court in Worcester to federal wire fraud charges in connection with a scheme to defraud immigrants that netted over $800,000.
Patria Zuniga, 53, of Woonsocket, R.I., pleaded guilty to eight counts of wire fraud. U.S. District Judge Timothy S. Hillman scheduled sentencing for May 24, 2016.
From 2009 through 2012, Zuniga targeted immigrant victims telling them that she worked for US immigration authorities and 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 initially 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 $800,000 over the course of the fraud.
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 United States Citizenship and Immigration Offices in Boston purportedly to take receipt of the of the immigration documents. Upon arrival, victims waited for hours only to have Zuniga contact and cancel the non-existent appointment.
Zuniga’s daughters, Alba Peña and Indranis Rocheford, have also been charged in connection with the fraud. They are scheduled for trial in April 2016.
Zuniga faces a maximum sentence of 20 years in prison to be followed by three years of supervised release and a fine of $250,000 per count of wire fraud. 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; and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service in Boston, made the announcement today. The case is being prosecuted by Jordi de Llano of Ortiz’s Major Crimes Unit.
Former Real Estate Broker Pleads Guilty to Second Federal Fraud SchemeRead the Press Release
BOSTON – A former real estate broker pleaded guilty on Tuesday, Jan. 26, 2016, in U.S. District Court in Boston, in connection a scheme to defraud a couple of the deposit they paid to purchase three properties in Randolph, Roxbury and Jamaica Plain.
Michael David Scott, 51, of Mansfield, pleaded guilty to one count of wire fraud. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for March 25, 2016.
From February 2011 to October 2013, Scott fraudulently persuaded a couple to sign three Purchase & Sale Agreements to buy properties in Randolph, Roxbury and Jamaica Plain. The couple deposited $199,000 with Scott under the false promise that their funds would be held in escrow. However, Scott immediately spent the funds for his own use. Furthermore, Scott knew that the first property was taken off the market by the sellers, that the bank holding the mortgage had refused to approve the sale of the second property, and that he had sold the third property to someone else. Scott never informed the couple about the status of the properties, and when they tried to get a refund of their deposits, he falsely assured them their deals were still pending and refused to return their deposits.
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.
In a separate federal case, Scott was sentenced on November 12, 2015 to 135 months in prison in connection with a multi-year, multi-property mortgage fraud scheme in Boston. Scott was on pre-trial release in this earlier fraud case when he committed the aforementioned crimes.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Acting 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. Attorneys Victor A. Wild and Ryan M. DiSantis of Ortiz’s Criminal Division.
Cocktail Napkin Insider Tip Leads to Federal ConvictionRead the Press Release
BOSTON – Following a three-day trial, a Boston-area real estate developer was convicted today of engaging in insider trading for buying – and later selling – shares of Wainwright Bank & Trust Company (“Wainwright”) based on a tip that Wainwright would be acquired. Prior to the acquisition, shares of Wainwright traded on the Nasdaq Stock Market.
Robert H. Bray, 78, of Watertown, was convicted by a jury of one count of securities fraud. He was acquitted of a separate count of conspiracy. U.S. District Court Judge William G. Young scheduled sentencing for May 4, 2016.
Bray is the owner of R&B Construction, a construction and real-estate development company that operates in the Cambridge and Watertown area. As the government proved at trial, in June 2010, Bray was tipped by a friend who was an executive at Boston-based Eastern Bank Corp. (“Eastern Bank”) that Wainwright would be acquired. The tip – more than two weeks before the acquisition was publicly announced – was passed on a napkin slipped to Bray over drinks at a country club bar in Watertown where both men are members. On Monday, June 14, 2010, Bray called his broker to ask how he could buy 25,000 shares of Wainwright stock, which he acknowledged “kinda sounds crazy,” given how thinly the stock traded. Bray ultimately purchased a total of 31,000 Wainwright shares over the next two weeks, at prices between $8.85 and $9.90 per share, single-handedly accounting for some 56 percent of the total trading volume in Wainwright shares during that period. On June 29, 2010, Eastern Bank announced its agreement to acquire Wainwright for $19 per share in cash, a premium of nearly 100% over the stock’s prior closing price. Bray ultimately sold his shares for a profit of approximately $300,000.
United States Attorney Carmen M. Ortiz and Harold Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today.
“Today’s conviction underscores our commitment to making sure that there is a level playing field for all securities investors – and that those who would pass on confidential corporate information on napkins at bars, in whispered conversations on golf courses or in any other way, are held accountable for their actions,” said U.S. Attorney Ortiz.
“Mr. Bray thought he could engage in a back-door deal to get rich quick. By capitalizing on insider information, he cheated the system established to protect hard-working investors. Financial fraud is not a victimless crime and the FBI will do everything it can to identify those individuals who are trying to undermine the integrity of the financial market,” said Special Agent in Charge Shaw.
The maximum sentence under the statute is 20 years in prison to be followed by three years of supervised release and a fine of up to five million dollars. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The United States Attorney’s Office received valuable assistance from the U.S. Securities and Exchange Commission in the course of investigating this case. The case was prosecuted by Stephen E. Frank and Eric P. Christofferson of Ortiz’s Economic Crimes Unit.