District of Massachusetts
Press releases recorded for this federal judicial district.
Criminal Defense Attorney Sentenced for Role in Insider Trading ConspiracyRead the Press Release
BOSTON – A criminal defense attorney from Lowell was sentenced today for conspiring to use inside information about the business activities of American Superconductor Corporation (AMSC) to profit from trading AMSC stock.
Douglas Parigian, 56, was sentenced by U.S. District Court Judge Denise J. Casper to eight months of home confinement and three years of supervised release. Parigian is also required to cooperate if ordered to disgorge his trading profits, pay a penalty in the related civil enforcement action brought against him by the U.S. Securities & Exchange Commission, and to comply with any order issued by state licensing authorities suspending or revoking his license to practice law.
In May 2015, Parigian pleaded guilty to insider trading and conspiracy.
Beginning around July 2009, a friend of Parigian’s, Eric McPhail, began giving Parigian and others inside information about AMSC’s business activities and upcoming earnings announcements. McPhail obtained this information during golf matches, dinners, and other social outings with a senior executive at AMSC; both men were members of the Oakley Country Club in Watertown, Mass. The AMSC executive trusted McPhail to keep the information to himself and was unaware that McPhail was instead tipping Parigian and others.
Between July 2009 and April 2011, Parigian, who knew the information was confidential and that it was improper for McPhail to disclose it, nonetheless repeatedly traded on it, making approximately $275,000 in illicit gains and avoided losses. Parigian, McPhail, and others in the group are avid amateur golfers in the Boston area.
In June 2015, McPhail was convicted after trial and is scheduled to be sentenced on Sept. 17, 2015.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, 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 Andrew E. Lelling of Ortiz’s Economic Crimes Unit and Seth B. Kosto of Ortiz’s Cybercrime Unit.
Springfield Man Sentenced for Heroin DistributionRead the Press Release
BOSTON – A Springfield man was sentenced today in U.S. District Court in Springfield for selling heroin to an undercover federal agent.
Jose Vargas, 29, was sentenced by U.S. District Court Mark G. Mastroianni to one year of probation. In March 2015, Vargas pleaded guilty to conspiracy to distribute heroin and distribution of heroin in connection with his Oct. 6, 2013 sale of $400 of heroin to an undercover agent.
United States Attorney Carmen M. Ortiz and Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Deepika Bains Shukla of Ortiz’s Springfield Branch Office.
Springfield Man Indicted for Distributing Crack CocaineRead the Press Release
BOSTON – A Springfield man was indicted today in U.S. District Court in Springfield for distributing crack cocaine.
Larry Smith, Jr., 28, was indicted on two counts of distribution of crack cocaine and one count of possession with intent to distribute crack cocaine.
According to the indictment, on Feb., 18, 2015 and March 5, 2015, Smith distributed crack cocaine. On April 3, 2015, he possessed crack cocaine with the intent to distribute it.
The charging statutes provide a sentence of no greater than 30 years in prison, a minimum of six years and up to a lifetime of supervised release, and a fine of $1 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Katharine A. Wagner of Ortiz’s Springfield Office.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Four Individuals Indicted on Drug Trafficking ChargesRead the Press Release
BOSTON – Four individuals involved in a Lawrence-based fentanyl, heroin, and cocaine trafficking organization were indicted yesterday in U.S. District Court in Boston.
Jerri Martinez-Tejeda, 31, of Lawrence; Yoelly Carmenatty, 27, of Lawrence; Joel Jahamal Rougeau, 41, of Texas; and Lily Solis, 28, of Texas; were indicted on one count of conspiracy to possess with intent to distribute and to distribute fentanyl, heroin, and cocaine. In July 2015, the defendants were initially charged in a criminal complaint.
According to court documents, in March 2014, an investigation into a drug trafficking organization operating in Massachusetts led law enforcement to Martinez-Tejeda. In late May or early June 2015, Martinez-Tejeda allegedly hired Rougeau and Solis to pick up nine kilograms of narcotics in California and transport them to the Northeast. On June 4, 2015, Oklahoma Highway Patrol intercepted Rougeau and Solis transporting nine kilograms of fentanyl to Martinez-Tejeda and his wife, Carmenatty, in Lawrence for distribution.
Based on evidence gathered from court authorized wire taps, law enforcement officers executed a search warrant at the Lawrence residence of Martinez-Tejeda and Carmenatty on July 12, 2015. During the search, law enforcement officers recovered $511,370 that was in the process of being counted and packaged, two handguns, various items for the processing and packaging of narcotics, and one kilogram of “cut,” a substance used to dilute the purity of heroin or other narcotics prior to sale. Documents such as ledgers that appeared to be part of the drug trafficking operation were also recovered.
The charging statute provides a maximum sentence of lifetime in prison, a lifetime of supervised release, and a fine of $10 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 Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Thomas E. Kanwit of Ortiz’s Narcotics and Money Laundering Unit.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Alleged Pyramid Scheme Promoter Indicted on Visa Fraud ChargesRead the Press Release
BOSTON – A Florida man connected to two notable pyramid schemes was indicted on visa fraud charges today.
Sanderley Rodrigues De Vasconcelos, 43, of Davenport, Fla., was indicted on fraud and misuse of visas, permits, and other documents.
According to the indictment, Rodrigues presented his green card to U.S. Customs and Border Protection Officers on May 3, 2015, at Logan International Airport, knowing that he obtained that document based on false statements to immigration officials. Rodrigues was arrested at Newark International Airport on May 16, 2015 upon returning to the United States after a trip abroad. He was detained until July 13, 2015, but has since been released by the Court on strict conditions pending trial.
Rodrigues came to the attention of federal authorities in 2006 when the U.S. Securities and Exchange Commission (SEC) sued him in connection with his ownership of Universo Fone Club and defrauding investors of millions of dollars. More recently Rodrigues was cited by the SEC for his role in promoting TelexFree, a pyramid scheme that purported to sell a voice over Internet service. In July 2014, the owners of TelexFree were charged with conspiracy to commit wire fraud and several counts of wire fraud. In addition to the instant indictment, Brazilian authorities have obtained a warrant for Rodrigues’ arrest, charging him with leaving Brazil in violation of a court order.
The charging statute provides a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. The case is being prosecuted by Assisted U.S. Attorney Cory S. Flashner of Ortiz’s Worcester Branch Office.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
West Roxbury Man Previously Convicted for Ponzi Scheme Sentenced to Prison for Violating Court OrdersRead the Press Release
BOSTON – A West Roxbury man was sentenced today for violating an asset freeze and other court orders entered in a civil case brought by the Securities and Exchange Commission (SEC).
Steven Palladino, 57, was sentenced by U.S. District Court Judge Douglas P. Woodlock to two years in prison, which he will not begin serving until after he completes the ten to twelve-year sentence imposed by the Commonwealth of Massachusetts for his conviction in the state Ponzi scheme case. In May 2015, Palladino pleaded guilty to twenty-five counts of criminal contempt in U.S. District Court in Boston.
From May through November 2013, Palladino violated court orders which were imposed as a result of the SEC’s civil case when he incurred thousands of dollars in credit card charges and cash advances – including charges at high-end restaurants and department stores – and did not deposit the proceeds of cash advances into an escrow account established by the Court. In addition, Palladino violated the same court orders in June 2013 when he sold a truck he owned and did not deposit the proceeds into the escrow account. Furthermore, Palladino violated another court order by not undoing his transfers of luxury vehicles to his wife, and the subsequent encumbrance of those luxury vehicles with $137,000 in new loans, by November 2013.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. U.S. Attorney Ortiz also expressed appreciation for the significant assistance provided by the Securities and Exchange Commission. The case was prosecuted by Assistant U.S. Attorney Ryan M. DiSantis of Ortiz’s Public Corruption Unit.
Today’s announcement is part of the ongoing efforts of President Obama’s Financial Fraud Enforcement Task Force’s Securities and Commodities Fraud Working Group. The interagency FFETF was created to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
North Adams Woman Sentenced for Social Security FraudRead the Press Release
BOSTON – Nancy Killackey, 57, of North Adams, Mass., was sentenced yesterday by U.S. District Court Judge Mark G. Mastroianni to 18 months of probation and ordered to pay restitution of $72,635 to the Social Security Administration (SSA).
From Jan. 1, 2002 through Oct. 1, 2013, Killackey received $72,635 in fraudulently obtained Social Security disability benefits. Killackey was not entitled to receive these benefits because she was married to a man who earned substantial wages, which was information that she intentionally concealed in order to continue receiving the benefits. Specifically, on July 21, 2011, Killackey told federal agents that the man was her personal care attendant and not her spouse. When the agents asked Killackey why the man would have told the SSA that they were married, she described him as “a big, fat liar” and “an idiot off his medication.” When asked about their wedding date, Killackey said that this was the day the man had a heart attack, not the day of their wedding.
United States Attorney Carmen M. Ortiz and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz’s Springfield Branch Office.
Framingham Man Charged with Child Pornography OffensesRead the Press Release
BOSTON – A Framingham man was arrested today and charged with receipt and possession of child pornography.
Richard Allain, 54, of Framingham, was charged today in U.S. District Court in Boston with one count of receipt of child pornography and one count of possession of child pornography. Allain was detained pending a detention hearing scheduled for Friday, Aug. 14, 2015, before U.S. District Court Magistrate Judge Marianne B. Bowler.
According to court documents, in June 2015, the Framingham Police Department received a report that Allain showed a minor videos of child pornography on two separate occasions when the minor and his parent were visiting Allain’s home. The minor stated during an interview with police that, on both occasions, Allain invited him to go down into the basement to play computer games, but instead, Allain showed the minor images and videos containing child pornography for two hours. On both occasions, Allain masturbated and asked the minor to perform oral sex, which he refused. Allain threated the minor, saying “Don’t tell anybody about this or I’ll [expletive] kill you.”
During the execution of a state search warrant at Allain’s residence, several items of computer media were seized, including seven USB thumb drives that Allain kept in a plastic bag, and which contained images and videos of child pornography. Following his arrest today, Allain admitted to law enforcement officers that he possessed hundreds of images of child pornography, and that he showed videos of child pornography to the minor.
The charge of receipt of child pornography provides for a mandatory minimum term of five years and no greater than twenty years in prison. The charge of possession of child pornography provides for no greater than twenty years in prison. Both statutes provide for a mandatory minimum of five years and up to a lifetime of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation in Boston, made the announcement today. The case was investigated by the FBI’s Child Exploitation Task Force, the Boston Police Department Child Abuse Unit, the Massachusetts State Police Special Investigations Unit, the Framingham Police Department, and the Middlesex County District Attorney’s Office Child Abuse Unit. The case is being prosecuted by Assistant U.S. Attorney Eve A. Piemonte of Ortiz’s Major Crimes Unit.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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.
Five Men Charged in Heroin and Cocaine Trafficking RingRead the Press Release
BOSTON – Five men were charged in U.S. District Court in Worcester on Friday, Aug. 7, 2015, with heroin and cocaine trafficking throughout Worcester County.
Jose Lugo, 53, of Providence, R.I.; Hugo Santana-Dones, 41, and Felix Melendez, 39, of Leominster; Osvaldo Vasquez, 47, of Worcester; and Elvis Genao, 26, of Fitchburg, were charged in a complaint with conspiring to distribute in excess of 100 grams of heroin and cocaine and distribution in excess of 100 grams of heroin. Vasquez, Santana-Dones, Lugo, and Melendez, were also charged with using a telecommunication facility in furtherance of a narcotics trafficking offense. At a hearing today, Genao, Melendez and Santana-Dones were ordered detained pending trial. A detention hearing for Vasquez and Lugo is scheduled for Aug.19, 2015, at 2:00 p.m.
According to court documents, between August 2014 and August 2015, the defendants conspired to distribute heroin and cocaine throughout Worcester County. It is further alleged that controlled purchases in excess of 100 grams of heroin from each of the defendants were recorded during the course of the conspiracy.
The charges of conspiring to distribute in excess of 100 grams of heroin and cocaine, and distributing more than 100 grams of heroin, provide for a mandatory minimum sentence of five years and no more than forty years in jail, a minimum of four years and up to a lifetime of supervised release, and a fine of up to $5 million. The charge of using a telecommunications facility in furtherance of a violent felony provides for no greater than four years in prison, one year of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Worcester Police Chief Gary J. Gemme, made the announcement. The case is being prosecuted by Assistant U.S. Attorney Mark Grady of Ortiz’s Worcester Branch Office.
The details contained charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Chicopee Man Sentenced for Illegally Possessing Firearm and AmmunitionRead the Press Release
BOSTON –William Lengieza, 36, of Chicopee, was sentenced on Friday, Aug. 7, 2015 by U.S. District Court Judge Mark G. Mastroianni to 14 months in prison and three years of supervised release. Lengieza previously pleaded guilty to illegally possessing a firearm and ammunition
On May 31, 2011, Lengieza used a Smith & Wesson, Model MP40, .40 caliber pistol at the Smith & Wesson Shooting Sports Center in Springfield, Mass. Lengieza was permitted on the firing range after falsely certifying that he had never been convicted of a crime punishable by more than one year in jail, when in fact he had been convicted of numerous such crimes. On June 13, 2011, federal agents executed a consent search of Lengieza’s apartment and seized 168 rounds of .40 caliber ammunition, nights sights for a Smith & Wesson MP pistol, two holsters, a gun cleaning kit, and gun cleaning patches.
U.S. Attorney Carmen M. Ortiz and Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division, made the announcement today. Assistance was provided by the Massachusetts State Police and the Chicopee Police Department. The case was prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz's Springfield Branch Office.
Boston Man Charged with Illegal Gun TraffickingRead the Press Release
BOSTON – A Boston man was indicted today in U.S. District Court in Boston in connection with his role in a scheme to illegally transport firearms into Massachusetts.
Shayne Parker, 41, was indicted on one count of being a felon in possession of ammunition and one count of unlawful transportation of firearms in Massachusetts. In March 2015, Parker was arrested and charged in a criminal complaint. Parker has several felony convictions, including for violence and drug trafficking crimes.
According to court documents, Parker worked with a group of individuals responsible for the illegal purchase and transportation of between 20 and 25 firearms from New Hampshire to Boston. A joint investigation with New Hampshire law enforcement agencies revealed that Parker and another man traveled from Massachusetts, where they resided, to New Hampshire to illegally purchase firearms from gun dealers. After the illegal straw purchases were complete, Parker, and others under his direction, would transport the firearms to Dorchester and other areas of Massachusetts. The firearms were often traded for illegal narcotics. Numerous guns purchased and transported have been recovered at crime scenes on the streets of Boston.
Four other persons were previously charged in U.S. District Court in New Hampshire in connection with their roles in the gun trafficking scheme. During a search of Parker’s residence and another location in Boston, law enforcement officers seized a firearm, 50 rounds of ammunition, and firearm paraphernalia. Parker’s fingerprint was lifted from the box of ammunition.
The charge of being a felon in possession of ammunition provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. The charge of unlawful transportation of firearms in Massachusetts 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; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco and Firearms, and Explosives, Boston Field Division; and Boston Police Commissioner William Evans, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Glenn A. Mackinlay of Ortiz’s Organized Crime and Gang Unit.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Guilty Plea in $3.4 Million Forex Investment SchemeRead the Press Release
BOSTON – A Quincy man pleaded guilty today in U.S. District Court in Boston in connection with a scheme which defrauded $3.4 million from sixty-five individuals who sought to invest in the foreign currency exchange market.
Marcellus Lopes Lee, 47, pleaded guilty today to sixteen counts of wire fraud and six counts of money laundering. Lee was indicted on those charges in July 2014. U.S. District Court Judge Indira Talwani scheduled sentencing for Nov. 2, 2015.
Lee owned and operated Taurus Global Markets, Ltd. (TGM), an entity which Lee held out as a company that engaged in foreign currency trading (forex) on behalf of investors. Lee defrauded investors by convincing them to wire funds to TGM’s Belize bank account for the purpose of trading in the highly-risky forex market. Lee, however, did not trade the investor money and instead used it for his personal expenses. Although TGM’s website represented that it had staff, management, and a computer network “distributed all across the world,” TGM, in fact, had no employees and Lee operated it by himself, primarily from his residence in Quincy. Lee also sent investors what purported to be account documents reflecting that their money was invested in the forex market. Eventually, most investors were told that most or all of their money had been lost in forex trading when, in reality, Lee had simply spent it.
The charge of wire fraud provides for a sentence of no greater than twenty years in prison, three years of supervised release, and a fine of $250,000. The charge of money laundering provides for a sentence of ten 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; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Mark J. Balthazard of Ortiz’s Economic Crimes Unit.
New Mexico Man Pleads Guilty to Scheme to Send Stolen Social Security Benefits to NigeriaRead the Press Release
BOSTON – A New Mexico man pleaded guilty yesterday in U.S. District Court in Boston in connection with a scheme in which Social Security benefits were obtained using stolen identities, and the proceeds wired to Nigeria.
Jasper Denetclaw, 43, pleaded guilty to theft of public money. U.S. District Court Judge Rya W. Zobel scheduled sentencing for Nov. 10, 2015.
In early 2014, Denetclaw met a woman on Facebook who offered him the opportunity to earn some money. The woman put him in touch with “Simon” who was allegedly located in Nigeria. Following instructions from “Simon,” Denetclaw opened two bank accounts and provided “Simon” with the information for those accounts and for a third account he had previously opened. After funds had been placed in the accounts, Denetclaw then withdrew or wired a portion of the $205,879 that had been deposited as instructed by “Simon.”
The money in the accounts was from direct deposits of Social Security benefits, obtained illegally by filing applications for retirement benefits in the names of ten real people, including some Massachusetts residents. Each victim had reached full retirement age, and, therefore, the fraudulent applications resulted in lump-sum benefits payments of approximately $20,000 each. The government recovered about $100,000 when the fraud was detected; however, Denetclaw had succeeded in withdrawing the rest of the money, wiring over $67,000 to individuals in Nigeria, and keeping some of the money for himself. Denetclaw stated that, in the beginning, he thought it was a regular business, but, admitted that after he checked the accounts and realized the money was from the Social Security Administration, he knew it was wrong.
The charging statute provides a sentence of no greater than ten years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater, restitution, and forfeiture of assets. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. Assistance was provided by the Phoenix, Ariz. and El Paso, Texas field offices of the Social Security Administration, Office of Inspector General, Office of Investigations and the Redding, Calif. and Gallup, N.M. field offices of the Federal Bureau of Investigation. The case is being prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
More Prison Time for Former Investment AdviserRead the Press Release
BOSTON – A former Merrill Lynch and Smith Barney investment adviser previously convicted of securities fraud for defrauding a single client out of nearly a quarter of a million dollars was sentenced to additional time in prison yesterday for engaging in a nearly two-decade scheme to defraud several other clients.
Jane E. O’Brien, 62, of Needham, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 45 months in prison, two years of supervised release, and ordered to pay more than $825,000 in restitution to her victims. In imposing the sentence, the Court found that O’Brien had attempted to obstruct the government’s investigation of her additional crimes following her prior conviction for securities fraud in December 2012. The Court ordered the 45-month sentence to be served consecutively to her prior sentence of 33 months in prison, imposed in May 2013.
In April 2015, O’Brien pleaded guilty to multiple counts of mail fraud, wire fraud, and investment adviser fraud in connection with a scheme to defraud several clients for whom she provided investment advisory services from 1995 to 2013. As part of the scheme, O’Brien misappropriated funds entrusted to her through a variety of means, including persuading clients to withdraw money from their bank and brokerage accounts and give the money to her personally to invest on their behalf. After gaining control of her clients’ money, however, O’Brien made no such investments. Instead, she used the misappropriated client funds for a variety of improper purposes, including paying personal expenses, and paying purported investment returns or repaying personal loans to other clients. Finally, in order both to perpetuate her fraud and conceal it from her clients, O’Brien made false statements and misrepresentations to clients, including by making lulling payments to clients and otherwise providing them with false assurances of their financial security.
Among other things, O’Brien caused one client first to empty her Smith Barney brokerage account and give the proceeds to O’Brien, and then to borrow an additional $1 million on her home and give much of that money to O’Brien to invest. With respect to a second client, O’Brien caused the client to empty her Merrill Lynch brokerage account and give the proceeds to O’Brien, purportedly to invest in a Hollywood movie called “Crooked Arrows.” With respect to a third client, O’Brien caused the client to withdraw $190,000 from her bank account and give the proceeds to O’Brien to invest. O’Brien made none of the investments she promised.
O’Brien’s prior securities fraud conviction related to a scheme to defraud yet another client of $240,000 by selling her a security that did not, in fact, exist.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, 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 E. Frank, Deputy Chief of Ortiz’s Economic Crimes Unit.
Lynn Man Indicted on Charges of Naturalization, Passport, and Social Security FraudRead the Press Release
BOSTON – A Lynn man was arrested yesterday in connection with federal immigration and social security violations.
Princehakeem Awolesi was indicted on Tuesday, Aug. 4, 2015 on one count of illegally obtaining U.S. citizenship; two counts of making false statements in a passport application; two counts of using a passport that had been issued by reason of false statements; and one count of using a falsely obtained social security account number.
According to the indictment, Awolesi obtained United States citizenship by making false statements in connection with his application for naturalization. In so doing, Awolesi concealed his past use of different names, a prior criminal conviction, and a previous application for relief from removal. In addition, the indictment alleges that Awolesi falsely stated that he had never given false information to any government official while applying for any immigration benefit or to prevent deportation, exclusion, or removal.
According to the indictment, Awolesi also made false statements on two applications for U.S. passports, and later used those passports. The indictment also charges Awolesi with using a social security number that was obtained on the basis of false information.
The charges of illegally obtaining U.S. citizenship and passport fraud provide a sentence of no greater than ten years in prison, three years of supervised release, and a fine of $250,000. Awolesi may also be stripped of United States citizenship. The charge of using a falsely obtained social security account number 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; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; David W. Hall, Special Agent in Charge of 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. The case is being prosecuted by Assistant U.S. Attorney Brian A. Pérez-Daple of Ortiz’s Economic Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Iowa Man Pleads Guilty to Making Threats Against Boston-Based Islamic CenterRead the Press Release
BOSTON – An Iowa man pleaded guilty today on charges of threatening to shoot and kill Muslims by posting threats on the Facebook page of an Islamic organization in Boston.
Gerald Wayne Ledford, 57, of Clinton, Iowa, pleaded guilty to one count of transmitting in interstate commerce a communication containing a threat to injure. Ledford was charged in the District of Massachusetts. In June 2015, Ledford was arrested in Iowa and he pleaded guilty in a federal court in the Southern District of Iowa. He is scheduled to be sentenced on Nov. 13, 2015 in Iowa.
Ledford admitted that on or about Oct. 19, 2014, he threatened the Islamic Society of Boston Cultural Center (ISBCC), a cultural center that offers a mosque and a variety of educational, spiritual, and social services to Muslims in New England. Ledford posted two threats on the ISBCC’s Facebook page. One post threatened, “Mohamed was a child rapist .a murderer and molester.you all will go to hell with you’re father satan..we will destroy you here and in your’re s**t hole countrys.” The second post consisted of a photograph of a man bearing a long gun with the caption, “This is for you.followers of the piece of s**t Mohamed …” At the plea hearing, Ledford admitted that he knew that these messages would be viewed as threats.
The charging statute provides a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; United States Attorney for the Southern District of Iowa Nicholas A. Klinefeldt; and Vincent B. Lisi, 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 S. Theodore Merritt and Scott L. Garland of Ortiz’s Civil Rights Enforcement Team and Richard D. Westphal of the U.S. Attorney’s Office for the Southern District of Iowa.
Historic Footage Connected to Gardner Museum Burglary Released - Public Assistance SoughtRead the Press Release
BOSTON – Twenty-five years after the notorious burglary of the Isabella Stewart Gardner Museum in Boston, law enforcement officials are seeking the public’s assistance in identifying an unauthorized visitor to the museum the night before the theft. That person entered the museum through the same door as the thieves in the middle of the night, 24 hours before the theft.
“Over many months we have engaged in an exhaustive re-examination of the original evidence in this case. Our aim has been to ensure that all avenues have been explored in the continuing quest to recover these artworks,” said United States Attorney Carmen Ortiz. “Today we are releasing video images from the night before the theft -- images which have not previously been seen by the public -- with the hope of identifying an unauthorized visitor to the museum. With the public’s help, we may be able to develop new information that could lead to the recovery of these invaluable works of art.”
The video footage released today, captured by Museum security cameras 24 hours before the Gardner heist, shows an automobile pull up next to a rear entrance of the Museum. The car matches the general description of a vehicle that was reported to have been parked outside the Museum moments prior to the theft on March 18, 1990.
The video also shows an unidentified man exiting the automobile and then being allowed inside the Museum, against Museum policy, by a security guard. That event occurred at 12:49 a.m. on March 17, 1990, almost exactly 24 hours before the thieves entered the museum through the same door.
While the images of both the vehicle and the unidentified man are low resolution, law enforcement officials hope that releasing the footage will assist with identifying the man or the vehicle in the video.
Anyone with information regarding the video should call the FBI at 617-742-5533 or the Isabella Gardner Museum at 617-278-5114.
Vincent Lisi, Special Agent in Charge of the FBI in Boston said, “This latest request for the public’s assistance illustrates the FBI’s continued commitment to the Gardner investigation. By releasing this video, we hope to generate meaningful leads and ultimately recover the stolen artwork.”
A $5 million reward has been offered by the Museum for information that leads directly to the recovery of all of the stolen items in good condition. The recovery of an individual object will result in a portion of the reward, based upon the object’s market value relative to the other stolen objects.
“We remain committed to one goal: the return of all 13 works to their rightful place, which is here at the Isabella Stewart Gardner Museum. To that end, we support the efforts that the United States Attorney and the Federal Bureau of Investigation are making to uncover any and all information related to the theft of our artwork. We believe that no stone should be left unturned,” said Anthony Amore, Director of Security at the Gardner Museum.
In the early morning hours of March 18, 1990, two white males dressed in Boston Police uniforms gained entrance to the Gardner Museum by advising the security guard at the watch desk that they were responding to a report of a disturbance within the compound. Against Museum policy, the guard allowed the thieves into the facility. Upon entry the two thieves subdued the on-duty security personnel, handcuffed them, and secured both guards in separate remote areas of the Museum’s basement. The suspects did not brandish weapons, nor were any weapons seen during the heist. No panic button was activated and no Boston Police notification was made during the robbery. The video surveillance film from the evening of the robbery was seized by the thieves prior to departure. They did not take the video footage from the night before.
The combined value of the 13 works of art stolen during the Gardner theft is at least $500 million, though they are considered priceless within the art community. The following objects were stolen during the burglary and have been missing for the past 25 years:
1) Vermeer's "The Concert"
2) Rembrandt's "A Lady and Gentleman in Black"
3) Rembrandt's "The Storm on the Sea of Galilee"
4) Rembrandt's "Self Portrait"
5) Govaert Flinck's "Landscape with an Obelisk"
6) A Shang Dynasty Chinese Bronze Beaker from 1200-1100 BC
7) Degas's "La Sortie du Pelage"
8) Degas's "Cortege Aux Environs de Florence"
9) Degas's "Three Mounted Jockeys"
10) Degas's "Program for an Artistic Soiree" charcoal on white paper
11) Degas's "Program for an Artistic Soiree" less finished charcoal on buff paper
12) Manet's "Chez Tortoni"
13) Napoleonic Eagle Finial
The video is available at: http://www.justice.gov/usao-ma/gardner-museum-theft
Colombian Crime Syndicate Leader Sentenced to Prison for Role in Mediating Drug Money DisputesRead the Press Release
BOSTON – A leader of a criminal syndicate based in Medellín, Colombia, was sentenced today in U.S. District Court in Boston in connection with his role in a conspiracy to invest the proceeds from the sale of hundreds of kilograms of cocaine.
Fredy Alonzo Mira Perez, a/k/a Fredy Colas 49, of Medellín, Colombia, was sentenced by U.S. District Court Judge Douglas P. Woodlock to seven years in prison, three years of supervised release, a $25,000 fine, and forfeiture of $4 million. Mira Perez surrendered to U.S. law enforcement officials in Bogotá, Colombia in March 2015, and pleaded guilty to conspiracy to invest illicit drug profits in April 2015.
From approximately 2001 to September 2014, Mira Perez was a high-ranking member of La Oficina de Envigado (Oficina) a Colombia-based organized crime syndicate involved in the distribution of thousands of kilograms of cocaine from Colombia to locations worldwide, including the United States. Among other things, the organization served as a debt-collection agency for narcotics traffickers; controlled the flow of narcotics through Medellín and its surroundings; and invested in shipments of narcotics to the United States and elsewhere around the world. Members of Oficina have been known to employ kidnapping, violence, and extortion to achieve these ends.
As one of the leaders of Oficina, Mira Perez conspired with others to import cocaine into the United States and to invest the proceeds from those sales. For years, including from 2012 to 2014, Mira Perez’s served as Oficina’s principal debt collector. Mira Perez also was responsible for the collection of debts on behalf of other drug-trafficking organizations in Mexico and Colombia. These organizations contracted with Oficina to recoup missing drugs and drug proceeds. Among other things, Mira Perez adjudicated disputes regarding any drugs or drug money that was lost, stolen, or seized by law enforcement, and he conducted investigations to determine which parties would bear responsibility for the missing drugs and drug money. Mira Perez then set a repayment schedule. Mira Perez typically charged a forty-percent commission on behalf of Oficina for all recovered drug money, and he invested the commissions to fund the ongoing operations of Oficina.
This case is the result of an international undercover operation that was launched in Boston in 2011. The U.S. Drug Enforcement Administration (DEA) ultimately coordinated numerous undercover operations across the world and transferred millions of dollars, sometimes using the Black Market Peso Exchange in Colombia, in order to identify and prosecute criminal organizations like those led by Mira Perez.
According to the DEA, the larger investigation has led to seizure of approximately $15.2 million in illicit drug proceeds and the seizure in the United States and Colombia of approximately 3,970 kilograms of cocaine, 32,000 doses of MDMA (i.e., ecstasy), nine kilograms of methamphetamine, and 1,180 kilograms of marijuana, and the arrest of more than 60 Colombian nationals by Colombian law enforcement.
The investigation also resulted in the designation of multiple individuals and entities to the Specially Designated Nationals (SDN) list maintained by the Office of Foreign Assets Control (OFAC) within the U.S. Treasury Department. OFAC administers and enforces economic and trade sanctions against international narcotics traffickers. Many of the sanctions are based on United Nations and other international mandates, are multilateral in scope, and involve close cooperation with allied governments.
United States Attorney Carmen M. Ortiz; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and John Smith, Director of the U.S. Treasury Department, Office of Foreign Assets Control, made the announcement today. The case was prosecuted by Assistant U.S. Attorney David J. D’Addio of Ortiz’s Narcotics and Money Laundering Unit.
Clinical Director of Home Care Agency Convicted of Health Care Fraud SchemeRead the Press Release
BOSTON – The clinical director of a home nursing agency was convicted today in U.S. District Court in Boston following a four-day trial in connection with her role in a multi-million dollar scheme to defraud Medicare.
Janice Troisi, 66, of Revere, was convicted of conspiracy to commit health care fraud and 10 counts of health care fraud. U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for Nov. 10, 2015.
Troisi, a registered nurse, was the Clinical Director of At Home VNA (AHVNA), a home health agency located in Waltham, which was owned and operated by her co-conspirator, Michael Galatis, also a registered nurse. From 2006 to 2012, Galatis submitted more than $27 million in fraudulent home health care claims to Medicare, and Medicare paid more than $20 million of those fraudulent claims that, by and large, were not medically necessary. Troisi joined AHVNA in fall 2009, and by Jan. 1, 2010, she had joined the conspiracy.
The Medicare program pays for home health services only under specified conditions, including that a physician has certified that the patient is homebound and needs certain skilled services, such as nursing or physical therapy. Troisi and Galatis trained AHVNA nurses to recruit Medicare beneficiaries who lived in senior housing developments or group homes for the disabled. They held “wellness clinics” at these developments, where nurses convinced senior citizens to enroll with AHVNA and have a nurse visit them in their home. Troisi and Galatis trained AHVNA nurses to manipulate the patients’ Medicare assessment forms to make it appear as though the patients qualified for Medicare home health services, when that was often not the case. The home health orders were signed by AHVNA’s paid medical director, Dr. Spencer Wilking. Dr. Wilking falsely certified to Medicare that these individuals were homebound and needed skilled services, when he never treated or even met the vast majority of AHVNA’s approximately 1,400 patients. In fact, the overwhelming majority of AHVNA’s patients were not homebound and did not need home health services, but many worked, took out-of-state vacations, and lived independent lives.
Many of the patients’ primary care physicians were unaware that AHVNA was sending nurses to see their patients in their homes. A number of primary care physicians who learned of AHVNA’s services complained to Troisi and Galatis and asked them to stop seeing their patients, but Troisi and Galatis ignored these requests. Similarly, AHVNA’s nurses frequently asked Troisi and Galatis if they could stop seeing the patients, because they did not need home health services, but Troisi and Galatis refused these requests as well in order to ensure a steady billing stream.
In 2011, Medicare passed a new regulation requiring that the physician certify that she or he had a face-to-face encounter with the patient about the need for home health care. Even after this regulation was enacted, Troisi continued to prepare certifications and orders for home health care for a doctor to sign despite knowing that the doctor had not examined any of the patients. This allowed Galatis to bill Medicare for millions of dollars of home health care despite the new regulation.
Galatis was convicted of conspiracy to commit health care fraud, ten counts of health care fraud, and seven counts of money laundering, and sentenced in February 2015 to 92 months in prison.
The charging statutes each provide a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $250,000 or the greater of twice the gross gain or loss resulting from the offense, and restitution to the Medicare program. 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; Philip Coyne, Special Agent in Charge of the Department of Health and Human Services, Office of Inspector General, Office of Investigations; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistance was also provided by the New England Benefit Integrity Support Center, a fraud contractor for the Medicare program. The case was prosecuted by Assistant U.S. Attorneys Lisa A. Schlatz and David S. Schumacher of Ortiz’s Health Care Fraud Unit.
Two Men Charged with Illegal Gambling BusinessRead the Press Release
BOSTON – Two men, one from Middleborough and the other from Winthrop, were charged today in the U.S. District Court in Boston with conducting an illegal gambling business.
John Evans, 68, of Middleborough, and Joseph Petrucelli, 24, of Winthrop, were charged in connection with a five-year gambling operation being conducted, in part, from a condominium on Seal Harbor Road in Winthrop, Mass. According to the indictment, the gambling business started by at least 2009 and operated through 2014. The indictment alleges that at least five people were involved in conducting the business. Only Evans and Petrucelli have been charged.
The charging statute provides a sentence of no greater than five years in prison, three years of supervised release, and 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; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Colonel Richard D. McKeon, Jr., Superintendent of the Massachusetts State Police, made the announcement today. Assistance with the investigation was also provided by the Internal Revenue Service’s Criminal Investigation, the Massachusetts Department of Correction, and the Boston, Medford, Middleborough, Quincy, and Whitman Police Departments. The case is being prosecuted by Assistant U.S. Attorney Timothy E. Moran of Ortiz’s Organized Crime and Gang Unit.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Holyoke Man Charged with Possessing Child PornographyRead the Press Release
BOSTON – A Holyoke man was charged today in U.S. District Court in Springfield with possessing child pornography.
Edward F. Dupont, 73, was charged in a criminal complaint with one count of possession of material involving the sexual exploitation of children.
According to court documents, it is alleged that on June 23, 2015, federal law enforcement agents executed a search warrant at Dupont’s residence. Dupont waived his Miranda rights and stated during the interview that: he has a sexual interest in young children; he has used his computer to access child pornography sites on the Internet and to download child pornography images and videos; and he possessed child pornography on his home computer.
Dupont denied ever having sexual contact with children, although he admitted that neighborhood children came over to play in his backyard and in his basement. It is also alleged that, he had given copies of his house keys to the neighbors so that their children could come over any time they wanted, and he maintained a cupboard with games for the children to play.
During the search, federal agents seized a personal computer that contained over 16,000 images and 35 videos of child pornography. These included four video files that depicted the rape of girls as young as five years old. The computer also contained a 170-page manual entitled “How to practice child love”. The manual is a professionally designed document that presents itself as “an education and a step-by-step guide for adults to engage and practice sexual relationships with underage children.” The manual also stated, “You do not even need to leave your own house or lot to meet new children and child love candidates. If you are bound to stay at your house, and preferably living alone, you can actually get the kids all the way to your front door – and even inside. This might even be a very safe option too – since as soon as you get the kids inside, no one can watch your activities from outside.”
Dupont faces a maximum sentence of twenty years in prison, to be followed by a minimum of five years and a maximum lifetime term of supervised release, and a maximum fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, 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 Steven H. Breslow of Ortiz’s Springfield Branch Office.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Members of the public who have questions, concerns or information related to this case, or any information relating to the sexual exploitation of children, should call (617) 748-3274.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Fall River Man Sentenced for Child Pornography OffensesRead the Press Release
BOSTON – A Fall River man was sentenced today in U.S. District Court in Boston for distribution and possession of child pornography.
Frank D. Almeida, 51, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 63 months in prison and five years of supervised release. Following the completion of his sentence, Almeida will be required to register as a sex offender with the Sex Offender Registration Board. In April 2015, Almeida pleaded guilty to distribution and possession of child pornography.
In June 2014, law enforcement discovered that Almeida was using a public file sharing program to post pictures and videos of minors between the ages of five and 12 years old engaged in sexually explicit conduct with adults. In December 2014, federal agents executed a search warrant on Almeida’s Fall River residence, and an on-site forensic team determined that a computer, various digital devices, hard drives and other media storage devices contained multiple images and videos of child pornography. Almeida was arrested following the execution of the search warrant and has been held in federal custody since that time.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, and Fall River Police Chief Daniel S. Racine, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crime Unit.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Pembroke Man Pleads Guilty to Tax Evasion ChargesRead the Press Release
BOSTON – A Pembroke, Mass., man pleaded guilty today in U.S. District Court to tax charges related to his failure to pay taxes on more than $1.1 million he earned as a carpenter from 1998 through 2006.
Theodore Hammond, Jr., 61, pleaded guilty to two counts of tax evasion and seven counts of filing false tax returns. U.S. District Judge F. Dennis Saylor IV scheduled sentencing for Oct. 21, 2015.
Hammond was a self-employed carpenter for many years and, between 1998 and 2006, earned $1.1 million. During that same period, Hammond failed to timely file federal income tax returns and, when he did file, he reported zero income. As a result, Hammond owes taxes of $406,458, not including interest and penalties.
The charge of tax evasion provides a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of filing false tax returns provides a sentence of no greater than three years in prison, one year 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; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Robert E. O’Malley, Special Agent in Charge of the Treasury Inspector General for Tax Administration, New York Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Sandra S. Bower of Ortiz’s Economic Crimes Unit and Christine Wichers of Ortiz’s Civil Division.
Former EPA Agent Sentenced for Making a False Statement in Connection with Pyramid SchemeRead the Press Release
BOSTON – A Waterford, Conn. woman was sentenced in U.S. District Court in Connecticut yesterday in connection with her role in a pyramid scheme.
Annette Campe, 50, was sentenced by U.S. District Court Judge Alvin W. Thompson in the District of Connecticut to one year of probation, a fine of $500, and ordered to pay $7,500 in restitution.
Campe was an 18-year veteran Special Agent with the U.S. Environmental Protection Agency (EPA) in New Haven, Conn. In December 2009, Campe joined the “Gifting Tables,” which was a four-level pyramid scheme. Each level was named according to the courses of a dinner, starting with the “Appetizer” and progressing through the “Soup and Salad,” “Entree,” and “Dessert” levels. A new participant would join the scheme at the bottom “Appetizer” row by paying $5,000 in cash to the participant in the top “Dessert” level. Participants then moved up the pyramid as additional women were recruited to join. Ultimately, after eight new participants had joined and paid a $5,000 “gift” to the woman occupying the “Dessert” level at the top of the pyramid, the so-called “Dessert” then left that Gifting Table, keeping the amassed $40,000. By October 2011, Campe had reached the “Dessert” level when she received about $2,500 in cash from an individual who had recently joined at the bottom level.
As an EPA Special Agent, Campe was required each year to complete a financial disclosure report to disclose any gifts she received that totaled more than $350 from any one source or any income greater than $200 earned during that calendar year. Despite receiving a $2,500 in cash (which she repaid at a later date), Campe intentionally concealed from the EPA the fact that she had received cash from the Gifting Table when she filed her annual financial disclosure report in January 2012.
United States Attorney Carmen M. Ortiz and Christopher Gaffney, Special Agent in Charge of the U.S. Environmental Protection Agency, Office of the Inspector General, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Dustin Chao of Ortiz’s Public Corruption Unit.
Twelve Individuals Charged in Taunton Heroin RingRead the Press Release
BOSTON – A dozen individuals were charged yesterday following a lengthy law enforcement investigation into a Taunton-based heroin distribution ring.
Four Taunton residents were arrested and charged with conspiracy to distribute heroin in connection with the heroin distribution ring: Eddyberto Mejia Ramos, 22, aka “Chi Chi”; Luis Iraola, 21; Maria Ramos, 43; and Edwin Montalvo, 26, aka “Poncho.” Also arrested and charged with conspiracy to distribute heroin were Saul Sanchez Rolon, aka “Fino,” and Kerem Mendez Luz, 35, of Providence, R.I.; Antwuun Jones, 23, of Fall River; Shakur Russell, 22, of Bridgewater; Darius Jones, 23, of Taunton; and Anthony Burt, 23, and Kayla Wentworth, 24, both of Wareham, Fall River and Taunton. The twelfth defendant, Jean Wharf, 40, of Carver, was arrested and charged in a related complaint with using a telephone to facilitate a drug transaction. Yesterday’s arrests follow the July 6-7, 2015, arrests of Luis Guzman, 22; Mercedes Cabral, 24; and Oristel Soto-Peguero, 22, all of Norwood; and the March 16, 2015, arrest of Manuel Luis Sanquintin, 33, aka Alex, of Boston, all in connection with the same heroin distribution ring.
The charges came as a result of a lengthy investigation, during which law enforcement officers observed Mejia Ramos sell heroin to a cooperating witness on several occasions in fall 2014, and uncovered the organizational makeup of Mejia Ramos’ organization through court authorized wiretaps from January through July of this year.
The charging documents allege that Mejia Ramos operated a retail heroin trafficking organization out of his mother’s house at 187 Winthrop Street in Taunton. The charging documents further allege that Mejia Ramos’ mother, Maria Ramos, periodically assisted her son in distributing heroin. According to court documents, Mejia Ramos purchased large quantities of heroin from several wholesale suppliers, including Soto-Peguero and Sanquintin, along with Sanchez Rolon and Mendez Luz. After receiving these large heroin packages, Mejia Ramos and his mid-level associates, including Jones, Iraola, and Montalvo, then allegedly distributed the heroin to lower level distributors and customers, including Burt, Wentworth, Russell, and Wharf.
The charge of conspiracy to distribute heroin provides for a sentence of no greater than 20 years in prison, supervised release of three years and up to a lifetime, and a fine of $1 million. The charge against Wharf, of using a telephone to facilitate a drug transaction, provides for a sentence of no greater than four years in prison, two 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; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Taunton Police Chief Edward J. Walsh; and Bristol County District Attorney Thomas M. Quinn, made the announcement. The case is being prosecuted by Assistant U.S. Attorney Ted Heinrich of Ortiz’s Narcotics and Money Laundering Unit.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Former RMV Clerk Pleads Guilty to Participating in False RMV Document ConspiracyRead the Press Release
BOSTON – A Boston man, who had worked as a Massachusetts Registry of Motor Vehicles (RMV) clerk, pleaded guilty today in U.S. District Court in Boston to conspiring to produce false RMV identification documents.
Rommer Valdez, 38, pleaded guilty to one count of conspiring to produce a false identification document affecting interstate and foreign commerce. Valdez, who was charged in May 2015, is scheduled to be sentenced by U.S. District Court Judge William G. Young on Oct. 27, 2015.
The RMV, among other responsibilities, issues identification documents such as drivers’ licenses, learners’ permits, and state identification cards. To prevent people from obtaining a fraudulent identification document, the RMV has systems to verify whether applicants’ identity information is accurate. Valdez, who worked as a clerk at the RMV office in Watertown, was responsible for verifying that applicants’ identity documents were accurate, valid, and sufficient.
From approximately December 2010 through December 2012, Valdez participated in a conspiracy to help the conspiracy’s customers obtain authentic RMV-issued identification documents that bore their own pictures but other people’s identity information. Other co-conspirators obtained real identification documents for customers to give the RMV as proof of (false) identity. Before sending certain customers to the RMV with this proof, the co-conspirators sent Valdez the names, Social Security numbers, and dates of birth for these identities and asked him to verify whether this information would pass the RMV’s checks. Valdez checked the information and told the co-conspirators whether it passed or not. If the information passed, the co-conspirators provided the documents to a customer who presented them to the RMV (although not necessarily at Valdez’s station) to obtain an identification document in that false identity.
On other occasions, the co-conspirators sent customers with false identification documents directly to Valdez at the RMV. When Valdez spotted such a customer, he signaled the customer to approach and submit his application and proof of (false) identity. Valdez then processed the application, knowing that the proof was fraudulent. He also let the customer or someone else helping the customer take whatever tests the RMV required, all using the false identity. Valdez knew that all these actions were illegal.
Valdez checked identity information for the conspiracy and knowingly accepted false proof of identity from customers multiple times, for multiple bribes.
The charging statute provides a sentence of no greater than five years in prison, three years of supervised release, a fine of $250,000 or twice the gain or loss, whichever is greatest, and forfeiture. 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 Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; 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 Scott L. Garland, formerly of Ortiz’s Cybercrime Unit and currently with Ortiz’s Anti-Terrorism and National Security Unit.
Former Dartmouth Selectman Sentenced to 70 Months in Prison for EmbezzlementRead the Press Release
BOSTON – A former Dartmouth Selectman and former State Representative was sentenced today to 70 months in prison for embezzling funds from his bus company, which was subsidized with taxpayer funds, to bankroll his personal farm.
John George, Jr., 68, was sentenced by U.S. District Court Judge Denise J. Casper to 70 months in prison and three years of supervised release, and ordered to pay $688,772 in restitution to the Southeastern Regional Transit Authority. In April 16, 2015, George was convicted after a jury trial of one count of conspiracy and one count of embezzlement.
The defendant owned Union Street Bus Company (USBC), a New Bedford-based company that operated public buses. During the same period, George operated John George Farms (JG Farm), a large produce farm based in Dartmouth. From approximately 1991 to 2011, USBC was awarded the Southeastern Regional Transit Authority (SRTA) contract to operate the SRTA public bus system that served a region that included New Bedford, Fall River, and several other neighboring towns.
The evidence at trial showed that, while USBC had the SRTA contract, George conspired with certain individuals to have various USBC employees work at JG Farm during their assigned USBC work hours. Such farm work included plowing, loading produce, and operating a produce stand at JG Farm, all during USBC business hours. As part of the conspiracy to commit an offense against the United States, George deployed USBC workers to JG Farm to repair George’s farm equipment, used USBC equipment and labor to provide personal out-of-state roadside assistance, and inflated his final yearly salary from $75,000 to $275,000 in an attempt to fraudulently boost his SRTA pension.
United States Attorney Carmen M. Ortiz and Theodore L. Doherty, Special Agent in Charge of the U.S. Department of Transportation, Office of Inspector General, Office of Investigations, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Dustin Chao and Ryan M. DiSantis of Ortiz’s Public Corruption Unit.
New York Man Sentenced for Million Dollar Mortgage Fraud SchemeRead the Press Release
BOSTON – A Skaneateles, N.Y. man was sentenced today in connection with a mortgage fraud scheme which resulted in losses of more than $1 million to lenders.
Michael St. Claire, 36, was sentenced by U.S. District Judge William G. Young to six months in prison, an additional four months of home confinement, and ordered to pay $1,257,945 in restitution. St. Claire previously pleaded guilty to conspiracy to commit wire fraud.
In early to mid-2007, St. Claire and co-defendant Monique Boucher recruited so-called investors to purchase 12 condominium units in a South Boston building that St. Claire had purchased. The recruits were told they would not have to bring any money to the table, even though the HUD-1 Settlement Statements falsely stated that each of them paid substantial down payments. Instead, those down payments came from funds supposedly due to St. Claire’s real estate company for liens that in fact, did not exist. Each recruit also was promised, and received, a significant payment after closing—in the tens of thousands of dollars—that they could use however they saw fit. These fees were paid to the buyers by both St. Claire and Boucher. Together, St. Claire and Boucher pocketed about $975,000 in profits from the loan proceeds. Eleven of the twelve properties went into foreclosure and sold at significant loss to the lenders.
Boucher, 51, of Florida, also pleaded guilty to conspiracy to commit wire fraud. In November 2014, she was sentenced to 10 months in prison and ordered to pay restitution.
United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Vincent B. Lisi, 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 Sandra S. Bower of Ortiz’s Economic Crimes Unit.
Former Department of Defense Contractor Charged with Making a False Statement and Damaging Army ComputersRead the Press Release
BOSTON – Charges were unsealed today in federal court against a former Department of Defense (DOD) contractor for the U.S. Army in Kuwait for making a false statement on his security clearance form and for damaging Army computers.
Wei Chen, 61, of Westfield, Mass., was charged with one count of making a false statement and one count of damaging computers. The indictment, which was filed on July 23, 2015, was unsealed today after Chen’s arrest.
According to the indictment, Chen, a computer system administrator, applied for a job as a DOD contractor – a job that required him to have a Secret-level security clearance. To obtain that clearance, he needed to complete a questionnaire called the SF86, on which he acknowledged that he knew that a false statement on the form could be punished by imprisonment. Nonetheless, in response to the form’s question about whether he had ever served in a foreign country’s military, Chen falsely answered, “no.” In fact, Chen, who is a naturalized U.S. citizen, served from approximately 1971 to 1976 in an anti-aircraft unit in China’s People’s Liberation Army.
After making this false statement on the SF86, the indictment charges, Chen was hired as a DOD contractor and worked as a system administrator at Camp Buehring, a large U.S. Army base in Kuwait. Chen knew that Army policy prohibited personnel from connecting personally-owned thumb drives to Army computer systems. Chen also knew that personnel were prohibited from connecting even government-owned thumb drives to Army computer systems unless they had received a specific exemption from this policy. Chen had not received such an exemption.
The indictment charges, on approximately June 15 and 16, 2013, in violation of Army computer security policy, Chen connected one or more personally-owned thumb drives to computers at Camp Buehring that were connected to the Army’s unclassified network and the classified Secret-level network. After connecting his personally-owned thumb drive to the Secret-level network server, Chen made an effort to cover his tracks and hide his security violation. Specifically, he deleted network logs on the server that would have documented his connection of the personally-owned thumb drive to the network server. Chen also copied a computer file, containing saved e-mail and documents, from his Secret-level workstation onto his personally-owned thumb drive, in violation of Army computer security policy.
“National events over the past several years have highlighted the critical role that cyber security plays in protecting our national security,” said United States Attorney Carmen M. Ortiz. “Military employees and DOD contractors must understand that, if they lie to obtain a security clearance or intentionally violate computer security policies and then destroy evidence of that violation, they are committing crimes and we will prosecute them.”
“As charged, Mr. Chen lied about his background, violated Army security policies, and attempted to destroy the evidence,” said Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Field Division. “Being granted and appropriately maintaining a Secret or Top Secret security clearance by the U.S. Government to safeguard information on our military bases is a tremendous privilege and responsibility. Failure to uphold that responsibility threatens our national security.”
"Mr. Chen allegedly abused his position as a system administrator to circumvent U.S. Army cybersecurity controls, improperly access classified information, and delete evidence of his wrongdoing," said Daniel Andrews, Director of the Computer Crime Investigative Unit of the U.S. Army Criminal Investigation Command. "Insider threats pose a serious risk to national security and military operations, and we will continue to work closely with our partners to prosecute those who engage in this type of criminal activity."
On the charge of damaging a computer, Chen faces a maximum sentence of 10 years in prison to be followed by three years of supervised release, a fine of $250,000 and forfeiture. On the false statement charge, the maximum sentence is five years in prison to be followed by three years of supervised release, a fine of $250,000 and forfeiture. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ortiz, Special Agent in Charge Lisi and Director Andrews made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Adam Bookbinder, of Ortiz’s Cybercrime Unit, and Stephanie Siegmann, of Ortiz’s Anti-Terrorism and National Security Unit.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Civil Penalty Settlement Reached with CVS Pharmacy in CarverRead the Press Release
BOSTON – The United States has reached a civil settlement with CVS Health in connection with allegations that the CVS pharmacy in Carver violated federal regulations related to the sale of prescription drugs.
Twice in the spring of 2014 armed robbers stole large quantities of Schedule II prescription drugs from the CVS pharmacy in Carver. Federal law required CVS to report the thefts immediately to the Drug Enforcement Administration (DEA). CVS reported one of the thefts immediately but waited three weeks to report the other one.
After the robberies, DEA investigators visited the pharmacy to audit its controlled substances, using inventory, purchase, and sale records unaffected by the robberies. The investigators found recordkeeping discrepancies affecting hundreds of Schedule II pills. The government contended that CVS had failed to keep complete and accurate records of its controlled substances, in violation of the Controlled Substances Act.
“Prescription drugs handled by pharmacies are subject to strict requirements because of the potential for harm and abuse,” said U.S. Attorney Carmen M. Ortiz. “This office will continue to ensure that pharmacies meet federal recordkeeping requirements, which are the primary way that the government regulates controlled substances.”
U.S. Attorney Ortiz and Michael J. Ferguson, Special Agent in Charge of the DEA, New England Field Division, made the announcement today. The investigation was conducted by Diversion Investigators with the DEA’s New England Division. The case was handled by Assistant U.S. Attorney Christine Wichers of Ortiz’s Civil Division.
Hull Resident Arrested and Charged with Theft of Government FundsRead the Press Release
BOSTON – A Hull resident accused of stealing from the Department of Veterans Affairs (VA) was charged with Theft of Government Funds in U.S. District Court in Boston this morning.
Bradley Swartz, 60, is accused of stealing approximately $40,000 from the VA over the course of an estimated three year period. Swartz was arrested this morning after being indicted by a federal grand jury yesterday.
The charging statute provides a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Jeffrey Hughes, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz’s Major Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Hull Resident Arrested and Charged with Theft of Government FundsRead the Press Release
BOSTON – A Hull resident accused of stealing from the Department of Veterans Affairs (VA) was charged with Theft of Government Funds in U.S. District Court in Boston this morning.
Bradley Swartz, 60, is accused of stealing approximately $40,000 from the VA over the course of an estimated three year period. Swartz was arrested this morning after being indicted by a federal grand jury yesterday.
The charging statute provide a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Jeffrey Hughes, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz’s Major Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Dominican National Charged with Conspiracy and Aggravated Identity FraudRead the Press Release
BOSTON - A Dominican national was charged in District Court in Springfield yesterday with conspiracy and aggravated identity fraud.
Sandro Tavera Mora, 45, formerly of Springfield, was charged in a superseding indictment with one count of conspiracy to possess and transfer fraudulent identification documents and one count of aggravated identity theft, in addition to the charges in the original indictment: one count of false personation of a U.S. Citizen and one count of fraud and misuse of visas. Tavera Mora was initially charged in March.
As alleged in the superseding indictment, Tavera Mora falsely and willfully represented himself to be a citizen of the United States. It is also alleged that he possessed an altered United States non-immigrant visa and numerous identification documents not belonging to him. Tavera Mora is alleged to have obtained numerous false Puerto Rican identification documents to commit identity fraud and misuse of a visa. It is alleged that between April and June 2014, he engaged in a conspiracy to distribute false identification documents to others.
The maximum sentence for false personation of a U.S. Citizen is three years in prison to be followed by one year of supervised release and a $250,000 fine. The maximum sentence for theft and misuse of a visa is five years in prison to be followed by three years of supervised release and a $250,000 fine. The maximum sentence for conspiracy count is 15 years in prison to be followed by five years of supervised release and a $250,000 fine. If convicted of identity theft, Tavera Mora faces a mandatory sentence of two years in prison consecutive to any other sentence he receives. 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 Michael Shea, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston, made the announcement today. The case is being prosecuted by Kevin O’Regan, Chief of Ortiz’s Springfield branch office and Marianne Shelvey, Trial Attorney with the United States Department of Justice, Criminal Division, Organized Crime and Gang Section.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Southbridge Man Convicted of Being a Felon in Possession of Firearms and AmmunitionRead the Press Release
BOSTON - A Southbridge man was convicted of being a felon in possession of firearms and ammunition yesterday in United States District Court in Worcester.
Mark McForbes, aka “S-Dot,” 33, was convicted of being a felon in possession of firearms and ammunition after an eight-day jury trial. McForbes is scheduled to be sentenced on Oct. 14, 2015.
On Aug. 29, 2014, McForbes and a cooperating witness negotiated the sale of firearms and ammunition in Southbridge. Later that evening, McForbes sold two loaded 9mm firearms to the cooperating witness at a Worcester residence. The jury convicted the defendant of possession of the two firearms and the ammunition contained therein. The jury acquitted McForbes of possession of a firearm with an obliterated serial number. McForbes qualifies under federal law as an armed career criminal based upon prior criminal convictions.
The charging statute provides a sentence of up to life in prison, with a mandatory minimum sentence of 15 years. 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 (ATF); and Southbridge Police Chief Daniel Charette made the announcement today. The case was tried by Assistant United States Attorneys Greg A. Friedholm and Michelle L. Dineen Jerrett of United States Attorney Ortiz’s Worcester Branch Office. The investigation was initiated by the ATF and the Southbridge Police Department with assistance by the Federal Bureau of Investigation, the United States Marshals Service, and the Worcester Police Department.
Former East Longmeadow Woman Pleads Guilty to Fraud on Retirement Community and Tax ChargesRead the Press Release
BOSTON – A former East Longmeadow woman pleaded guilty yesterday in District Court in Springfield to wire fraud, money laundering and tax charges.
Alice Lacroix, 53, pleaded guilty to eight counts of wire fraud, eight counts of money laundering and two counts of filing false tax returns. Lacroix, who was charged in November 2014, is scheduled to be sentenced on October 27, 2015.
In a fraud scheme that lasted from 2011 through February 2013, Lacroix embezzled funds from her employer, Bluebird Estates which is a retirement living community in East Longmeadow. Lacroix, as manager of Bluebird Estates, took rent checks paid by tenants as well as other checks and property belonging to her employer. Additionally, Lacroix established a bank account without authorization in the name of Bluebird Estates into which she deposited the embezzled funds. During the course of the scheme, Lacroix deposited $325,000 into this fake Bluebird Estates bank account and engaged in financial transactions designed to disguise the proceeds of the fraudulent scheme. Lacroix would deceive her employer through emails that provided false information about the rent payments she took. Lacroix also submitted false income tax returns for the years 2011 and 2012.
The maximum sentence under the statute for each count of wire fraud is 20 years in prison to be followed by three years of supervised release and a $250,000 fine. The maximum sentence for each count of money laundering is 20 years in prison to be followed by three years of supervised release and a $500,000 fine. The maximum sentence under the statute for each count of filing false tax returns is three years in prison to be followed by one year of supervised release. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and East Longmeadow Police Chief Douglas Mellis made the announcement today. The case is being prosecuted by Alex J. Grant of Ortiz’s Springfield Branch Unit.
Adams Man Charged in Connection with Plot to Engage in Terrorism PlotRead the Press Release
BOSTON – An Adams man has been charged in an Indictment in connection with a plot to engage in terrorism on behalf of ISIL. A grand jury in U.S. District Court in Springfield indicted Alexander Ciccolo, a/k/a Ali Al Amriki, 23, on one count of being a convicted felon in possession of firearms and one count of assault with a deadly weapon and causing bodily injury to a person assisting an officer of the United States in the performance of official duties. The latter charge stems from Ciccolo’s alleged attack of a nurse during a jail intake process after his arrest.
According to evidence presented at a previous detention hearing, on July 4, 2015 Ciccolo took delivery of four firearms which he had ordered from a person who was cooperating with members of the Western Massachusetts Joint Terrorism Task Force, and who had been communicating with Ciccolo about Ciccolo’s plans to engage in a terrorist act. Ciccolo was arrested immediately after taking delivery of the firearms, which included a Colt AR-15 .223 caliber rifle, a SigArms Model SG550-1 556 rifle, a Glock 17-9 mm pistol, and a Glock 20-10 mm pistol. Ciccolo had previously been convicted of a crime punishable by more than a year in jail and therefore was prohibited from possessing firearms.
The government alleged that Ciccolo is a supporter of the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. Ciccolo had spoken with a cooperating witness in recorded conversations about his plans to commit acts of terrorism inspired by ISIL, including setting off improvised explosive devices, such as pressure cookers filled with black powder, nails, ball bearings and glass, in places where large numbers of people congregate, like college cafeterias. Prior to his arrest, agents had observed Ciccolo purchase a pressure cooker similar to that used in the Boston Marathon bombings.
During a search of Ciccolo’s apartment after he was arrested, agents found several partially constructed “Molotov cocktails.” These incendiary devices contained what appeared to be shredded Styrofoam soaking in motor oil. Ciccolo had previously stated that this mixture would cause the fire from the exploded devices to stick to people’s skin and make it harder to put the fire out.
Shortly after his arrest, while he was being processed at the Franklin County Correctional Center, Ciccolo stabbed a nurse with a pen, leaving a bloody gash on the top of the nurse’s head.
Based on these alleged facts and evidence presented at Ciccolo’s detention hearing on July 14, 2015, Magistrate Judge Katherine A. Robertson ordered that Ciccolo be detained until trial.
The charge of being a felon in possession of firearms provides a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. The charge of assault with a dangerous weapon causing bodily injury provides a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz, Assistant Attorney General John P. Carlin and Vincent Lisi, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Field Division, made the announcement today. This investigation is being conducted by the Western Massachusetts Joint Terrorism Task Force, and member agencies of the JTTF including the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Springfield Police Department, the Ludlow Police Department, the Holyoke Police Department, the West Springfield Police Department, the Easthampton Police Department, the Pittsfield Police Department, the Massachusetts State Police and Homeland Security Investigations, with critical assistance from the Adams Police Department and the Massachusetts State Regional Hazardous Materials Response Team.
The case is being prosecuted by Assistant U.S. Attorneys Kevin O’Regan and Deepika Shukla of the District of Massachusetts and the National Security Division's Counterterrorism Section.
The details contained in the Indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Fugitive Arrested in Multi-Million Dollar Investment Fraud SchemeRead the Press Release
BOSTON – A Brazilian national charged with defrauding investors in Massachusetts and elsewhere of more than $12 million was arrested yesterday in Boca Raton, Florida, after evading arrest for more than two weeks.
Daniel Fernandes Rojo Filho, 58, of Orlando, Fla., was charged in a criminal complaint with one count of wire fraud on June 30, 2015. Filho, who did business in Massachusetts and Florida, was arrested coming out of a restaurant in Boca Raton. He had his initial appearance today in U.S. District Court in the Southern District of Florida, and is scheduled to appear again for a bail hearing on July 24.
As alleged in court documents, Filho owns a company called DFRF Enterprises, LLC, which is incorporated in Massachusetts and Florida. Beginning in 2014, Filho and others acting at his direction allegedly began offering people the chance to invest in, and therefore become “members” of DFRF. In solicitations posted in Internet videos, as well as pitches made in person, including a meeting aboard a boat in Boston Harbor, Filho is alleged to have falsely told potential investors that DFRF was engaged in a lucrative, international gold-mining business. Additionally, it is alleged that he misrepresented DFRF’s ties to a consulting company in Brazil and a private bank in Switzerland. It is further alleged that he told potential investors that their principal investments would be 100% insured against losses by a company based in the United Kingdom and Barbados – all of which was untrue.
As further alleged, relying on Filho’s alleged misrepresentations, investors gave Filho and DFRF more than $12 million. Instead of investing the money as promised, however, Filho allegedly took more than $3.5 million himself, spending it on travel, restaurants, and consumer goods -- including approximately $2 million spent on multiple Lamborghinis, a Rolls Royce, a Mercedes, and multiple Cadillacs.
The charging statute provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss from the fraud, 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.
The United States Attorney’s Office received valuable assistance from the Securities & Exchange Commission, which recently filed a separate civil action against Filho in federal court. The United States Attorney’s Office for the Middle District of Florida also assisted in the investigation.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, 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 Eric P. Christofferson of Ortiz’s Economic Crimes Unit.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Springfield Man Sentenced to 84 Months in Prison for Heroin and Cocaine DistributionRead the Press Release
BOSTON – A Springfield man was sentenced yesterday in U.S. District Court in Worcester for selling heroin and cocaine to a cooperating witness and an undercover federal agent.
Alberto Correa-Martinez, 27, was sentenced by U.S. District Court Judge Timothy S. Hillman to 84 months in prison, five years of supervised release, and a special assessment of $500. In February 2015, Correa-Martinez pleaded guilty to conspiracy to distribute cocaine, distribution of cocaine and distribution of heroin.
According to court documents, on three occasions between July 23 and Aug. 6, 2013, Correa-Martinez sold heroin and cocaine to an undercover federal agent. The last of these exchanges took place only yards from the state courthouse on Main Street in Springfield. All three of the aforementioned drug purchases were captured on video.
United States Attorney Carmen M. Ortiz and Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. The case was prosecuted by Assistant United States Attorney Deepika Bains Shukla of Ortiz’s Springfield Branch Office.
Rhode Island Family Charged with Defrauding ImmigrantsRead the Press Release
BOSTON – A Rhode Island woman and her two daughters have been charged with federal wire fraud charges in connection with a scheme to defraud immigrants of hundreds of thousands of dollars over several years.
The indictment, which was unsealed this morning, charges Patria Zuniga, 53, Alba Peña, 24, and Indranis Rocheford, 27, all of Woonsocket, Rhode Island, with eight separate counts of wire fraud. Zuniga was initially charged with one count of wire fraud in May, and has been in custody since May 13, 2015. Peña and Rocheford were arrested at their homes in Rhode Island this morning. They are scheduled to appear before U.S. Magistrate Judge David H. Hennessy today at 2 p.m.
According to court documents, it is alleged that from 2010 through 2012, Zuniga, Peña, and Rocheford targeted immigrant victims with either no lawful status or temporary legal status in the United States. Victims were told that Zuniga worked for immigration authorities and could assist them in obtaining lawful immigration status documents. Zuniga’s services were initially offered to immigrant victims for $8,000 to $14,000; however, after the victims made the payments, Zuniga demanded additional funds, and threatened to have them deported if they refused to pay. Payments were initially made in cash, but later Zuniga, Peña, and Rocheford accepted money via cash deposits made directly into designated bank accounts (including accounts owned by Peña and Rocheford), money orders, and bank and Western Union wire transfers. It is alleged that Zuniga, Peña, and Rocheford received more $800,000 from immigrant victims over the course of the fraud.
“Dreams of a better life and a way out of the shadows make the immigrant community particularly susceptible to abusive immigration services scams like this one,” said U.S. Attorney Carmen M. Ortiz. “The defendants are alleged to have illegally enriched themselves by exploiting the vulnerability of immigrants and their families. This indictment should serve as a stern warning to other fraudsters that preying on the most vulnerable among us is illegal and will be prosecuted.”
The charging statutes provide for a maximum sentence of no greater than 20 years in prison, three years of supervised release, 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 Shea, Acting Special Agent in Charge of Homeland Security Investigation in Boston and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service made the announcement today. The case is being prosecuted by Jordi de Llano of Ortiz’s Major Crimes Unit.
The details contained in charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Revere Man Charged with Stealing from the Postal ServiceRead the Press Release
BOSTON – A mail theft charge against a longtime United States Postal Service employee was unsealed yesterday in U.S. District Court.
Carmelo J. Santisi, 47, was arrested yesterday after being charged with stealing cash and gift cards from the mail.
Santisi faces a maximum sentence of five years in prison, three years of supervised release, a fine of up to $250,000 and a special assessment of $100. 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 for the District of Massachusetts Carmen M. Ortiz and Eileen Neff, Special Agent in Charge of the Northeast Area Field Office of the United States Postal Service Office of Inspector General, made the announcement today. The Revere Police Department assisted with the case.
The case is being prosecuted by Assistant United States Attorney David G. Tobin of Ortiz’s Major Crimes Unit.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Middleton Mortgage Broker Convicted of Bank FraudRead the Press Release
BOSTON – A mortgage broker from Middleton was convicted today of attempted bank fraud in federal court.
Michael P. O’Donnell, 53, was convicted of one count of bank fraud after a three-day bench trial before the Honorable Douglas P. Woodlock, United States District Judge. Judge Woodlock scheduled sentencing for Oct. 20, 2015.
O’Donnell, through his company AMEX Home Mortgage, knowingly engaged in a scheme to submit false loan applications to lenders to obtain mortgage loans on behalf of borrowers seeking to purchase or refinance real estate. The trial focused on O’Donnell’s submission of fraudulent information and documents on behalf of a Salem homeowner for two loans totaling nearly $400,000 to re-finance existing loans. O’Donnell represented to lenders that the Salem homeowner had income of $10,000 a month, when in fact the homeowner earned only about $1,200 a month. O’Donnell prepared and submitted to the lenders bogus bank account statements which reflected the homeowner as having more than $50,000 in savings. In reality, no such account actually existed, and she had far less in actual savings. Additionally, O’Donnell submitted bogus letters from an accountant representing that he had prepared tax returns for the Salem homeowner’s business for the prior two years; however, the homeowner did not even know the accountant and had no business.
Judge Woodlock found O’Donnell guilty of attempting to fraudulently obtain a $44,000 loan on behalf of the Salem homeowner from the now-defunct Countrywide Bank, FSB. O’Donnell collected fees totaling more than $15,000 from the two loans.
O’Donnell faces a sentence of no greater than 30 years in prison, five years of supervised release and a fine of $1,000,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Veronica M. Lei of Ortiz’s Asset Forfeiture Unit and Mark J. Balthazard of Ortiz’s Economic Crimes Unit.
Mashpee Resident, Former New York Pediatrician Sentenced for Distribution and Possession of Child PornographyRead the Press Release
BOSTON - A former New York pediatrician and resident of Mashpee was sentenced today for distribution and possession of child pornography.
Daniel J. O’Hern, 65, was sentenced today by U.S. District Court Denise J. Casper to 63 months in prison to be followed by five years of supervised release and a fine of $12,500. O’Hern pleaded guilty in April to distribution and possession of child pornography. Following the completion of his sentence, O’Hern will be required to register as a sex offender with the Sex Offender Registration Board.
In May 2014, law enforcement discovered that O’Hern was distributing child pornography when he utilized a public file sharing program to post pictures and videos of minors, between the ages of five and 12 years old, engaged in sexually explicit conduct with adults. In June 2014, federal agents executed a search warrant at O’Hern’s residence and seized multiple computers, external hard drives, hundreds of DVDs and other media storage devices which contained an extensive collection of images and videos depicting children being sexually assaulted by adults. O’Hern was arrested following the execution of the search warrant and has been held in federal custody since that time.
United States Attorney Carmen M. Ortiz; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; Masphee Police Chief Rodney Collins; and Barnstable Police Chief Paul MacDonald made the announcement today. The case is being prosecuted by Kenneth G. Shine of Ortiz’s Major Crime Unit.
This case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys Offices and the Criminal Divisions CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Medford Man Arrested for Impersonating a U.S. MarshalRead the Press Release
BOSTON - A Medford man was arrested today for impersonating a United States Marshal.
Gordon Malyerck, 68, was arrested and appeared in court today in connection with an incident in which he allegedly impersonated a United States Marshal on July 7, 2015, at Middlesex Fells Reservation. Charges were filed on July 15, and unsealed today after Malyerck’s arrest.
According to court documents, Malyerck, wearing a shirt with the USMS badge on the pocket, approached a Park Ranger and falsely identified himself as a Deputy U.S. Marshal. Without further inquiry from the Park Ranger, Malyerck produced his “USMS credentials” and claimed that he had recently been deputized as a U.S. Marshal at a ceremony in Washington, D.C. Malyerck, who carried an exposed .38 caliber handgun on his waistband at the time of the incident, suggested that Park Rangers be armed and deputized. Additionally, Malyerck noted that he had seen young women running around in the park and that he would take action if he observed an attack.
When approached by federal agents on July 14, Malyerck admitted to possessing credentials and advised law enforcement officials that he had been deputized by a Deputy U.S. Marshal in Baltimore. Law enforcement learned that the Baltimore agent had not “deputized” Malyerck, but had sent him an item with the U.S. Marshal insignia.
Malyerck was released with conditions and is set to appear in federal court on July 27 for a probable cause hearing.
United States Attorney Carmen M. Ortiz and United States Marshal John Gibbons made the announcement today.
The case is being prosecuted by Assistant United States Attorney David G. Tobin of Ortiz’s Major Crimes Unit.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Russian National Sentenced to 24 Months in Prison for Online Wire Fraud SchemeRead the Press Release
BOSTON – A Russian man known by the online nickname “Joga” was sentenced today for his role in an online fraud scheme that used stolen credit and debit card information to acquire more than $650,000 in consumer goods.
Alexey Svetlichnyy, 32, a Russian citizen living in Tewksbury, Mass., was sentenced by U.S. District Judge Allison D. Burroughs to 24 months in prison. Additionally, Svetlichnyy was ordered to forfeit more than $425,000 in United States currency, along with a Lexus and other high-end consumer goods he obtained through the scheme. In March 2015, Svetlichnyy pleaded guilty to conspiring to commit wire fraud
According to court documents, Svetlichnyy and others obtained stolen credit and debit card data and related accountholder information using online forums dedicated to the trafficking of stolen information.
Svetlichnyy and his co-conspirators used the stolen data to make online purchases of numerous goods, including Apple iPads, Samsung cell phones, laptop computers, servers, computer processors, scuba diving equipment, high-end camera lenses, and water filtration equipment. They also used the stolen data to make online purchases of stored value cards issued by or on behalf of American Express, Visa, Budget Rental Car, Frontier Airlines, Macy’s and other retailers.
When making these online purchases, Svetlichnyy, along with his co-conspirators, frequently used the names and billing addresses associated with the stolen data, but then shipped the goods and stored value cards to addresses that Svetlichnyy controlled.
To avoid detection, Svetlichnyy and his co-conspirators utilized Russian language social networks to recruit accomplices, who were paid to receive these stolen consumer goods and re-ship the items to addresses controlled by Svetlichnyy in Chelmsford and North Reading, Mass., among other places. These addresses were primarily private commercial mailboxes that Svetlichnyy opened in the name of a Delaware company, Micaxr, LLC (Micaxr).
From March 2010 to October 2013, Svetlichnyy sold the stolen consumer goods and stored value cards for more than $427,000 on eBay. Svetlichnyy and his co-conspirators then wired a portion of the criminal proceeds overseas, including to Russian bank accounts.
United States Attorney Carmen M. Ortiz; Lisa Quinn, Special Agent in Charge of the U.S. Secret Service, Boston Field Office; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston, made the announcement today. Ortiz also thanked the U.S. Secret Service’s Cyber Investigative Section and the Tewksbury Police Department for their involvement in the investigation that led to today’s sentencing.
The case was prosecuted by Seth B. Kosto of Ortiz’s Cybercrime Unit and Eric Christofferson of Ortiz’s Economic Crimes Unit.
Lawrence Heroin Ring ChargedRead the Press Release
BOSTON – Ten individuals in three states were charged in federal court yesterday with conspiracy to distribute heroin, in connection with a Lawrence-based heroin operation. The ten were charged in two related criminal complaints.
In the late night hours on Sunday, July 12, 2015, Juan Gonzalez-Arias, 31, Jerri Martinez-Tejeda, 31, Yoelly Carmenatty, 27, Michael Bate, 33, and Gilberto Alicea, 32, were arrested for conspiracy to distribute heroin. Another charged defendant, Lily Y. Solis, 28, is in custody in Oklahoma. One defendant, Alejandro Mendez, 31, is in state custody in Massachusetts. Three other defendants, Joel Jahamal Rougeau, 41, Saul Torres, and Hillsaydee Guzman, 31, remain fugitives.
These charges came after a lengthy investigation that culminated in the execution of two search warrants, one for the residence of Gonzalez-Arias, and another for the residence of Martinez-Tejeda and his wife, Carmenatty, in the late evening and early morning hours of July 12-13.
In the Martinez-Tejeda/Carmenatty residence, agents found over $500,000 in cash that was in the process of being counted and packaged. Federal agents also recovered two handguns, various items for the processing and packaging of narcotics, and approximately one kilogram of what is believed to be “cut,” a substance used to dilute the purity of heroin prior to sale. Additionally, agents recovered ledgers appearing to be part of the drug trafficking operation.
In the Gonzalez-Arias residence, agents recovered a firearm, 1.5 kilograms of suspected heroin and an additional $30,088 in cash.
The maximum sentence under the statute is life in prison, followed by supervised release for up to life, a $10,000,000 fine, and a $100 special assessment. Depending on the total amount of drugs recovered and whether a defendant is held responsible for all or a portion of those drugs, the applicable statute also provides a ten year mandatory minimum period of incarceration as well as a mandatory five year period of supervised release. 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 Michael J. Ferguson, DEA Special Agent in Charge, made the announcement today. The case is being prosecuted by Thomas E. Kanwit of Ortiz’s Narcotics and Money Laundering Unit.
The details contained in the criminal complaints are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Boston Police Officer Pleads Guilty to Making False StatementsRead the Press Release
BOSTON – A former Boston Police officer and former treasurer of the Boston Police Patrolmen’s Association pleaded guilty today in U.S. District Court in Boston to making a false statement to the FBI in connection with his cash loans to a known criminal.
David Michael Fitzgerald, 49, who resides in Milton, pleaded guilty to a one count Information of making a false statement to the FBI. Fitzgerald was a Boston Police officer from 1996 until this June when he resigned as part of his plea agreement. He was the treasurer of the Boston Police Patrolmen’s Association (BPAA) from 2012 to 2014.
According to court documents, Fitzgerald developed a relationship with an individual who was a known street-level drug dealer and bookmaker. During the course of this relationship, Fitzgerald made cash loans to the individual, which were paid back in weekly installments. On April 27, 2015, Fitzgerald met the individual in Watertown in order to collect a $500 cash installment for one of the outstanding loans. Later that same day, when federal agents who were investigating the matter questioned Fitzgerald, he falsely stated that the purpose of his meeting with the individual was simply social in nature and that he had never loaned money to the individual. Not only were these statements untrue, but they were intended to interfere with an ongoing federal investigation.
The charging statute provides a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. In addition to his resignation, the plea agreement also contemplates a joint, non-binding recommendation to the Court for a sentence of one year probation. 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. Judge Nathaniel Gorton set sentencing for Oct. 20, 2015.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner William Evans, made the announcement today. The U.S. Attorney’s Office also wishes to acknowledge the cooperation of the Boston Police Department’s Anti-Corruption Division. The case is being prosecuted by Assistant U.S. Attorney Eugenia M. Carris and Robert A. Fisher of Ortiz’s Public Corruption & Special Prosecutions Unit.
Seaport and Fort Point the Focus of U.S. Attorney Review of Disability AccessRead the Press Release
BOSTON – The U.S. Attorney’s Office announced today that it has launched a review of restaurants in Boston to determine whether they are being operated in compliance with the Americans with Disabilities Act of 1990 (ADA).
The U.S. Attorney’s Office has selected for review restaurants in Boston’s Seaport and Fort Point neighborhoods. With the ongoing construction and development in this area of the city, the review is intended to ensure that these neighborhoods are accessible to the increasing numbers of residents and tourists who will be visiting.
“This year marks the 25th anniversary of the Americans with Disabilities Act, and reminds us that all individuals with disabilities deserve to have full access to public places,” said United States Attorney Carmen M. Ortiz. “We look forward to partnering with restaurants to make sure that they are accessible to every resident and visitor to our City.”
Federal law prohibits discrimination on the basis of disability by the owners and operators of places of public accommodation, which includes restaurants. The ADA authorizes the U.S. Department of Justice to undertake periodic reviews of covered establishments. 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 restaurants.
To facilitate its compliance review, the U.S. Attorney’s Office has been conducting site visits of the restaurants to assess accessibility and to evaluate compliance with federal ADA regulations. If the site visits reveal that a particular restaurant is not in compliance with the law, the U.S. Attorney’s Office intends to notify the owners and operators to secure voluntary compliance. The Department of Justice is also authorized to commence a civil lawsuit in federal court in any case that involves a pattern or practice of discrimination or raises issues of general public importance.
In 2010, to coordinate the efforts of the U.S. Attorney’s Office in enforcing federal civil rights laws, U.S. Attorney Carmen Ortiz formed the Civil Rights Enforcement Team (CRET), which is composed of Assistant U.S. Attorneys and professional staff from the criminal and civil divisions of the office. The primary goals of the CRET are to uphold the constitutional rights of all residents, particularly the most vulnerable members of society and to enforce federal statutes prohibiting discrimination on the basis of race, color, sex, disability, religion, familial status, and national origin.
Additional information about the ADA is available at www.ADA.gov or through contacting the U.S. Attorney’s Office at (617) 748-3100.
Massachusetts Man Charged with Being a Felon in Possession of FirearmsRead the Press Release
BOSTON – An Adams man has been arrested and charged in connection with a plot to engage in terrorism on behalf of ISIL. A criminal complaint, charging Alexander Ciccolo, a/k/a Ali Al Amriki, 23, with being a felon in possession of firearms was unsealed today. Additional information regarding Ciccolo’s plans was filed this morning in advance of a detention hearing to be held tomorrow afternoon in Springfield.
According to the complaint affidavit, on July 4, 2015, Ciccolo took delivery of four firearms which he had ordered from a person who was cooperating with members of the Western Massachusetts Joint Terrorism Task Force, and who had been communicating with Ciccolo about Ciccolo’s plans to engage in a terrorist act. Ciccolo was arrested immediately after taking delivery of the firearms, which included a Colt AR-15 .223 caliber rifle, a SigArms Model SG550-1, 556 caliber rifle, a Glock 17- 9mm pistol, and a Glock 20-10 mm pistol. Ciccolo had previously been convicted of a crime punishable by more than a year in jail and therefore was prohibited from possessing firearms.
In an affidavit filed in support of the government’s detention motion, it is alleged that Ciccolo is a supporter of the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. According to the affidavit, Ciccolo had spoken with a cooperating witness in recorded conversations about his plans to commit acts of terrorism inspired by ISIL, including setting off improvised explosive devices, such as pressure cookers filled with black powder, nails, ball bearings and glass, in places where large numbers of people congregate, like college cafeterias. Prior to his arrest, agents had observed Ciccolo purchase a pressure cooker similar to that used in the Boston Marathon bombings.
It is also alleged that during a search of Ciccolo’s apartment after he was arrested, agents found several partially constructed “Molotov cocktails.” These incendiary devices contained what appeared to be shredded Styrofoam soaking in motor oil. Ciccolo had previously stated that this mixture would cause the fire from the exploded devices to stick to people’s skin and make it harder to put the fire out.
A detention hearing has been scheduled for July 14 at 3:30 p.m. in U.S. District Court in Springfield.
The charge of being a felon in possession of firearms provides a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Vincent Lisi, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Field Division, made the announcement today. This investigation is being conducted by the Western Massachusetts Joint Terrorism Task Force, and member agencies of the JTTF including the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Springfield Police Department, the Ludlow Police Department, the Holyoke Police Department, the West Springfield Police Department, the Easthampton Police Department, the Pittsfield Police Department, the Massachusetts State Police and Homeland Security Investigations, with critical assistance from the Adams Police Department and the Massachusetts State Regional Hazardous Materials Response Team.
The case is being prosecuted by Assistant U.S. Attorneys Kevin O’Regan and Deepika Shukla of Ortiz’s Springfield Branch Office in coordination with Department of Justice’s National Security Division.
The details contained in the charges are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Patriots Player and Former Bank Executive Indicted on Fraud ChargesRead the Press Release
BOSTON – A former New England Patriots player and a former bank executive were indicted yesterday in connection with an investment scheme involving fraudulent loans to professional athletes.
Will Allen, 36, of Davie, Fla., and Susan Daub, 55, of Coral Springs, Fla., were indicted on twelve counts of wire fraud, one count of conspiracy to commit wire fraud, six counts of identity theft and several counts of money laundering (four counts for Allen and one count for Daub). Both were arrested and charged in a criminal complaint in June 2015. Allen played in the National Football League from 2001 to 2012. In 2012, he signed a one-year contract with the New England Patriots.
The indictment alleges that Allen and Daub ran their company, Capital Financial Partners (CFP) as a Ponzi scheme, using money raised from new investors to pay back investments made by earlier investors. Allen and Daub allegedly defrauded investors out of millions of dollars by claiming that the funds would be used to back high-interest, short-term loans to professional athletes through CFP, Allen and Daub’s Massachusetts-based company. While CFP did make some loans to athletes, the indictment alleges that Allen and Daub also diverted millions of investor dollars to themselves and other business ventures.
Allen and Daub allegedly told some investors that the loans CFP made to professional athletes were larger than they actually were, allowing Allen and Daub to collect more money from investors than they were lending out to athletes. In other instances, Allen and Daub are accused of collecting money from investors to fund fictitious loans. To keep investors from discovering their fraud, Allen and Daub allegedly used newly invested money to make payments to existing investors, which they falsely characterized as interest and principal payments from athlete borrowers.
The charges of wire fraud and conspiracy to commit wire fraud provides for sentences of no greater than 20 years in prison and up to three years of supervised release. The charge of identity theft provides for a sentence of two years in prison and up to one year of supervised release. The charge of money laundering provides for a sentence of no greater than 10 years in prison and up to three years of supervised release. Allen and Daub also may be fined of up to $250,000 or twice the gross gain or loss caused by offense, whichever is greater, on each of the counts. Actual sentences for federal crimes are typically less than maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. This case is being prosecuted by Assistant U.S. Attorney Brian A. Pérez-Daple of Ortiz’s Economic Crimes Unit. The U.S. Attorney’s Office received valuable assistance from the Securities and Exchange Commission, which previously charged Allen and Daub in a civil complaint.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Acton Man Indicted on Child Pornography ChargesRead the Press Release
BOSTON – Kenneth Howell, 49, was indicted today on one count of receipt of child pornography and one count of possession of child pornography. Howell was arrested and charged in a criminal complaint in May 2015.
In April 2015, Howell first came to the attention of federal agents when chat messages exchanged between another individual and he revealed that Howell was paying to view sex acts performed by minors in the Philippines over the Internet. In May 2015, law enforcement executed a search warrant at Howell’s home during which time Howell admitted that he downloaded, saved and distributed child pornography, and that he had been trading images of child pornography for four to five years. A preliminary review of Howell’s computer revealed over 100 videos of child pornography.
The charge of receipt of child pornography provides for a mandatory minimum term of five years and no greater than 20 years in prison. The charge of possession of child pornography provides for no greater than 20 years in prison. Both statutes provide for a mandatory minimum of five years and up to a lifetime of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Michael Shea, Deputy Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistance was also provided by the Massachusetts State Police and the Acton Police Department. The case is being prosecuted by Assistant U.S. Attorney Eve A. Piemonte of Ortiz’s Major Crimes Unit.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.